Business Growth Strategies for Trading Scents: A Comprehensive Analysis

PLANNING AND GROWTH

TABLE OF CONTENTS
Introduction................................................................................................................................1
LO1............................................................................................................................................2
P1 analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context....................................................................2
P2 evaluate the opportunities for growth applying Ansoff’s growth vector matrix..............4
LO2............................................................................................................................................7
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................7
LO3..........................................................................................................................................11
P4 design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.....................................................................................11
LO 4.........................................................................................................................................15
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................15
Conclusion................................................................................................................................18
References................................................................................................................................19

LIST OF TABLES
Table 1: SWOT Analysis of Trading scents............................................................................12

LIST OF FIGURES
Figure 1: Factors affecting growth.............................................................................................4
Figure 2: Ansoff's Matrix...........................................................................................................5
Figure 3: Main sources of funding.............................................................................................7
Figure 4: Products at trading scents.........................................................................................11
Figure 5: Exit strategy..............................................................................................................15
Figure 6: Succession Plan........................................................................................................17

Introduction
The report will discuss about Trading scent, an SME dealing in perfumes, scents, cosmetic
and other beauty products based in UK. The various growth opportunities that must be
considered for expansion by trading scents will be discussed. Also, opportunities will be
identified using Ansoff’s Growth Matrix. Finance which is the most essential resource of an
organization will also be discussed. The various sources of funding will be identified with the
advantages and drawbacks associated to it. Ansoff’s matrix will also be discussed in the
report to evaluate the various growth opportunities. The various methods of Succession and
exit will also be discussed if an organization wants to leave in the long run due to the effect
of some future uncertain event.
1

LO1
P1 analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
Trading scents is a leading organization providing cosmetics, perfumes, and skin products.
The managers of the enterprise need to formulate a systematic growth plan that helps in
expansion of Trading Scents. It is essential to utilize resources for the achievement of goals
and objectives of the organization. The employees and stakeholders of the organization need
to set up goals that help in competing with other enterprise and making research so that
innovation can be done in these products. There are various flavors that have emerged
recently and are being adopted by enterprises (Bryman and Bell, 2015). Trading scents need
to adopt the new flavors available in the market so as to increase customer base.
Business environment comprises of external and internal factors like political, social,
economical and legal that affects the working of business. The managers need to plan
strategies during the time of change in business environment so that quick decision making
can be done and negative impact of such changes be removed efficiently. Business
environment must be carefully researched so as to find out the opportunities within the
business environment. The factors that can be considered for evaluating growth opportunities
are as follows:
Competition:
These days there has been a tremendous increase in the level of competition and only the best
running SME survives. Increase in the level of competitors has pressurized the managers to
adopt methods and skills that help in making strategies during critical situation. The
organization is responsible to take tactical decisions leading to innovation, creativity and new
methods of production so as to stand out of crowd. The new flavors have changed customer
mind and demand for new scents have increased. There has been a significant increase in
population with different skin types and hence there has been change in the demand pattern
which has put the research department of trading scents under the pressure of opting new
flavors and methods to launch in the market so that customers do not shift to other traders
(Crane and Mattern, 2016).
Collaborations:
2