Assignment on Evaluating Growth Opportunities

Added on - 22 Jul 2020

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Planning for Growth
TABLE OF CONTENTSINTRODUCTION......................................................................................................................1TASK 1......................................................................................................................................1P1 Analyzing key factors that business entity needs to consider while evaluating growthopportunities...........................................................................................................................1P2 Assessing growth opportunities by applying Ansoff vector matrix..................................2TASK 2......................................................................................................................................3P3 Assessing the potential sources of funding which are available to SME.........................3TASK 3......................................................................................................................................5P4 Designing a business plan for growth that contains financial information and strategicobjectives................................................................................................................................5TASK 4......................................................................................................................................7Assessing exit or succession options which are available to SME along with the benefitsand drawbacks........................................................................................................................7CONCLUSION..........................................................................................................................9REFERENCES.........................................................................................................................10
INTRODUCTIONIn the present era, strategic plan is the essential requirement for attaining success inthe competitive business environment. Further, now use of digital technology is increasedsignificantly in each and every sector. Such technology enables firm to persuade customersabout their offerings on a wide level and thereby maximizes both productivity as well asprofitability. The present report is based on Qbic which is small sized hotel unit of UK thatoffers luxurious accommodation services to the customers at affordable prices. On the basisof cited case situation, now company is planning for growth with the motive gain competitiveedge over others. In this, report will describe the aspects that manager of Qbic needs to keepin mind while assessing growth opportunities. Besides this, report will shed light on themanner in which Ansoff matrix helps in identifying opportunities for growth. It also depictsthe sources by accessing the same Qbic can meet its monetary requirements. Report will alsodevelop understanding about the options related to exit or success that SME can employ.TASK 1P1 Analyzing key factors that business entity needs to consider while evaluating growthopportunitiesThere are several factors which business entity needs to consider while makingassessment of opportunities pertaining to growth includes potential, price, competitiveadvantage etc. Now, business unit can attain success only when it offers something unique tothe customers. In this context, role of digital technology is highly significant which providesinput to the business organization for decision making. As compared to before, nowcustomers or people are highly active on social networking sites such as Facebook, Twitteretc. Thus, by using social sites owner of Qbic hotel can get information about the needs,wants as well as preference of customers and thereby would become able to offer suitableservices. In this way, by assessing market gap and offering innovative s products or servicesto the customer’s manager of Qbic hotel can build and sustain competitive edge others. Byconsidering this, it can be said that aspects of digital technologies support business growth toa great extent. Along with this, hotel unit should consider following aspects while identifyinggrowth opportunities such as:Legal consideration: Business unit should consider all the laws and legislation at thetime of making evaluation of growth opportunities. For instance: Qbic wants to open
luxurious hotel unit in Birmingham of London. In this regard, business entity shouldassess whether its project is appropriate as per the legal aspects or not.Financial viability: It is another main aspect which closely influences the selection ofgrowth opportunities. Moreover, earning high return on investment is one of the mainobjectives of firm (Hollander, 2017). Thus, by doing cash flow projections and breakeven analysis business entity of Qbic can assess whether expansion project isfinancially viable or notPotential for growth: In competitive business situation firm can attain success onlywhen it has potential for growth or ability to explore business operations (Kumar,2016). For instance: In the small business segment, Qbic has developed its effectualimage in the mind of customers. Thus, by establishing new unit and doing promotionof innovative services firm can attract large number of customers.Competition: At the time of evaluating growth opportunities business entity shouldassess the extent of competition. By assessing such aspect company can getinformation whether it is capable to meet or beat the level of competition or not(Factors to consider when evaluating viable business opportunities, 2017).Infrastructural aspects: Availability of services such as transportation and others alsohave significant impact on the level of operating expenditure. Thus, by makingassessment of all the facilities Qbic can determine that expansion plan of hotel unit isprofitable or not.Hence, by making assessment of all the above depicted aspects firm would become ableto develop strategic and competent framework for future.P2 Assessing growth opportunities by applying Ansoff vector matrixFrom assessment, it has been identified that Ansoff matrix is the most effectual toolwhich in turn helps in assessing the opportunities for growth and success. Such matrix mainlyincludes two quadrants such as product and market. In this, both product and market can bedistinguished further in the form of existing and new. Hence, such four quadrants mainlyinclude four aspects such as market penetration diversification, product and marketdevelopment (Ansoff Growth Matrix – Four Ways To Grow A Business, 2017). Thus, byevaluating all such aspect manager of Qbic can determine most profitable strategy.For assessing suitable opportunities digital technology has been used by the managersuch as social media websites. By taking views from the customers or people through the
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