Planning for Growth - Assignment
Added on 2020-06-04
14 Pages4221 Words87 Views
Planning for growth
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Analyse key considerations to evaluate opportunities for growth in an organisationalcontext ........................................................................................................................................1P2 Assess the growth opportunities through Ansoff's growth vector matrix..............................2Task 2...............................................................................................................................................4P3 Describe the potential sources of funding available for business with benefits anddrawbacks....................................................................................................................................4Task 3 ..............................................................................................................................................6P4 Develop a business plan for growth that includes financial information and objectives .....6Task 4 ..............................................................................................................................................7P5 Assess exit or succession options for small business with benefits and drawbacks.............7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONPlanning for growth is an activity for strategic business which enables owners to make plans forgrowth and development. It is required to to increase sales, face intense competition and grow infuture. This includes components that are helpful in building customer value. Growth planningalso assists in achieving goals and objectives effectively. This report is about a small mediumenterprise Austin Fraser is which is an recruitment consultancy firm in UK. This study willfocus on strategies available for growth opportunities. Methods through which organisation canraise funds would be assessed in this research. It is necessary to design proper business plan forgrowth that consists of objectives and financial information for developing business. This reportwill include various ways in which small business can make exit strategies. . TASK 1P1. Key considerations to evaluate opportunities for growthIt is very important to evaluate the opportunities available for business. Growth includesvarious risks, but evaluating its options properly can deliver security, stability and success in thelong run (Brinckmann, Grichnik, and Kapsa, 2010). It includes identifying pros and cons ofparticular development scenario. This also shows right strategies for business and the financeoptions that will suit particular organisation. Austin Frazer is an recruitment consultancy firm inUK. It is specialist in providing recruitment for IT, engineering, and life sciences. They believein being open and transparent with its clients. This company is focussing a lot on developmentscenario and for this it is identifying options for growth. To know which opportunity is moreeffective it is required to evaluate it. Main considerations to assess growth possibility availablefor this company will be following-Importance of growth- Firstly, it is essential to understand the importance of growth inbusiness (Burns, 2010). It can be measured by looking at some statistics that includes turnover,market share, sales, profits and number of staff. This helps in knowing which factor willcontribute more in improving the business performance. In this business, sales could be the mainfactor in growth as higher sales will result in maximized profits. Combination of sales and profitcould be the best option for development of business. To develop successful growth strategy, it isrequired to know what exactly can fit in this firm.
Consolidate existing performance- Before pursuing for growth opportunities, it isessential to ensure that current business performance is efficient. It is required not to neglectexisting customers as they could be the most important in development scenario (Chapin, 2012).Timing is crucial in any growth strategy and so, it is important to get answers of the followingquestions: Can business cooperate with expansion or its is working in full capacity or not?Did firm has appropriate resources and system in existing business to deal withexpansion?It is required to include additional staff, new production process and equipment to pursuegrowth strategies in a flexible manner. Market share - To achieve growth by increasing market share, it is required to attractnew customers. It can be done by understanding the customer base and competitor firms. Forthis, existing consumers are to be identified and it is also seen whether there are any otherinterested group of buyers who are not targeted before or not. Strengths of competitors are alsorequired to be analysed as this helps in knowing why consumers are purchasing from them.Austin Frazer needs to know their unique selling points that will help in attracting more clients.Company should identify that whether there is need for bringing changes in pricing, marketingand distribution strategies or not.Diversification- Many small enterprises adopt diversification as growth opportunity butthere are various risks due to limited resources in the firm (Cron, DeCarlo, and Dalrymple,2010.). Business can be diversified by launching new commodity and services for existingcustomers, creating new market for existing services and choosing new market for new services.Before choosing this option for growth, it is essential to be clear about the costs to be occurred inthis alternative. Diversifying with similar services could be less risky for this firm rather thancreating new services for new market place. Identifying the best suitable option- Main consideration while identifying growthopportunities is to know their suitability in business. It will help in making proper strategies forthe development and choosing the best option that can be suitable as per resources and capacityof this organisation. This could lead to more success and profits in business.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
(solved) Planning for Growth Assignmentlg...
|14
|4533
|27
Planning for Growth in UK Assignmentlg...
|14
|3798
|413
Planning for Growthlg...
|17
|5405
|66
Planning for Growth Assignment - Austin Fraser Limitedlg...
|16
|4348
|36
Planning for Growthlg...
|16
|5791
|67
Planning for Growthlg...
|18
|4984
|198