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Assignment- Planning for Growth

Added on - 23 Nov 2020

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Planning for Growth
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1...........................................................................................................................................1P1.Key considerations for evaluating growth opportunities..................................................1P2.Evaluate the opportunities for growth apply.....................................................................3TASK 2............................................................................................................................................4P3. Various sources of funding available to business along with advantages and disadvantages................................................................................................................................................4TASK 3............................................................................................................................................6P4. Business plan for growth..................................................................................................6TASK 4............................................................................................................................................8P5.Exit or succession options for a small business................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONPlanning for growth is a function or a process that enables business owners to plan forgrowth of the business. It is an activity of business in which business owners involve to makeplan and track organic growth. It permit businesses to allocate their limited resources to adaptand make change in business industry so that it can run properly (Barbour and Deakin, 2012).During the implementation of growth plan, the management will investigation about the currentorganisational culture. This assignment based onSANPSEconstruction company and it providedconstruction company. This company is going to work on construction of mixed tenure housing.This company have a bid of£300,00.This assignment will define the growth planning and theopportunities that the company strives to achieve mixed tenure housing.TASK 1P1.Key considerations for evaluating growth opportunitiesStarting a small business, the existing company need to take steps to evaluate thebusiness abilities and potential to make it work. With the evaluation of that factors the companyevaluate its financial, product and human resource analysis. SANPSE is a small mediumenterprise company. It is an UK company which deals in construction. For the growth planningthe company follow porter's model. If the company want growth is analyse every tool ofcompetition.Porter's generic strategiesThese generic strategies describe that how a company pursue competitive advantage in itschosen market. These strategic described an industry in multiple segments that can be targetedby a company. There are two basic types of competitive advantage with the scope of activities inan industry: cost leadership and differentiation. There are two types of scope brosd target andnarrow target.Cost leadershipThis strategy is use for increasing profits by reducing cost and increasing market share bycharging lower price. SANPSE use it in its services by offer service of low cost base such asprice, labour, materials and facilities for a given period of time and attract consumer and increaseits profit. Here small number of market segments and a business seeks a lower cost advantages. Itfocus on cost minimization and on market. If SANPSE constructed a restaurant it offer its1
customer innovation in its designs so that it can grow its market and earn profit by provide theservice con low cost.Differentiation strategyThis strategy is a process of making its product or services different from and attractivethan its competitors. SANPSE can make success of a differentiation strategy by doing goodresearch of markets and consumers needs and desires. It can show the ability to deliver highquality products or services. It is classic marketing strategy for small businesses for achievinghigher price benefits by undifferentiated products to add value for customers. SANPSE can usethis strategy and gain profit on a large scale by providing superior products such as benefits,durability and reliability.Focus StrategyCompanies use this strategy to cover a big market and understanding the dynamics of themarkets or the unique needs of the consumers. By this strategy SANPSE cover small marketsprovide advantages to its customers through services innovation such as innovation in designsand according the customers budget and time.SANPSE gain growth by cover market segments and fulfil the customers need anddemand by using Poter's generic strategies.PESTLE ANALYSISThis model is used for the analysis of political, economical, social, technological,environmental and legal function of a business. It is a strategic tool for understanding marketgrowth or business position or operation (Galland, 2012).Political FactorIt is related to politics that what policy and procedure are made by the government for thebusiness and other sector. It impact the business most.Economic factorThis factor impact the economy and the performance. It also impact the profit and thegrowth factor of the company. It include economic growth, interest rates, exchange rates,consumers and unemployment rates. Purchasing power of the customers are effected by thisfactor and this effect can make change in demand or supply in the economy.Social Factor2
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