Planning for Growth: Evaluating Opportunities and Funding Sources for Etsy

Unit 42 Planning for Growth
Learner Name
Programme Name Pearson BTEC Higher National Diploma in Business Management
Unit Number and Title Unit 42 – Planning for Growth
Credit Value Unit Level 5
Academic Year Cohort September 20
Assessor
Project Title Investing in the Future (Part 1)
Developing an Exit Plan (Part 2)
Issue Date
Submission Deadline
IV Name
IV Date

Table of Contents
TASK ..............................................................................................................................................3
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................3
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................5
Discuss the options for growth using a range of analytical framework?...............................7
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................8
Evaluate potential sources of funding and justification for the adoption of the appropriate
source of fund?.....................................................................................................................11
Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.......................................................................................................11
Develop an appropriate business plan for growth and securing investment , setting out
strategic objectives, strategic and appropriate framework for achieving objectives ?.........15
Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.......................................................................................................................16
REFERENCES..............................................................................................................................20
INTRODUCTION

Planning is an essential factor that allows the management to use effective strategies and
policies for the achievement of organisational goal. It is the first process of management that are
required before implementing any other activities within an organisation. It helps to decide what
to do, how to do, when to deal with the desired result (Agyenim-Boateng, 2021). Planning
involves pre determined goals that guides the organisation to increase the profitability and
performance .It improves the performance of the organisation in the global market. It is directly
connected with growth of the organisation. The effective planning is the key to success of any
organisation that increases the efficiency and proficiency of their employees. The organisation
chosen in this report is Etsy, a UK based online selling company that provides variety of
handmade products.
This report will examine the various modes of growth opportunities and models that helps to
evaluate the performance of an organisation. Further, it will examine the PESTLE analysis and
other strategic model , sources of funding , exit and succession strategy to expand the business in
the competitive market.
TASK
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
The competitive advantage can be gained by using effective resources and cost reducing
methods to deal with the core competence in the market. The skills and innovative ideas are the
demand of current market scenario to diversify business in the international market. There are
various internal and external forces that are directly affects the functioning of the small scale
industry. The UK based e- commerce company Etsy, is required to consider the following
growth opportunities with the help of growth model and analysis made through PESTLE, are
discussed below:
PESTLE Analysis
 Political Factor: The current political stability in the UK, is a great opportunity for a
small scale industry to use this approach for its growth and expansion. The relation of the
government with the other countries helps the companies to diversify their business in the
international market at low rate of investment. The Etsy, e commerce company has

required to take advantage to such government policies to secure good position in the
competitive market.
 Economical Factor: The economic factors refers to interest rate, GDP, Repo rate,
employment rate etc. and other policies of the government that are directly impact the
economical position of the country. The economic factor is one of the important element
to evaluate growth such as government polices related to collective bargaining is
introduced to avoid employment turnover and increase the higher retention of employee
at workplace. So, such factor is important to enhance the business of e commerce
industry to grow in a large scale.
 Social Factor: Society plays significant role in the expansion of small scale industry as it
is important for an organization to understand their need, expectation and produce the
goods accordingly (Boschmans and Pissareva, 2018). The demand of handicrafts are
demanded by the people to give unique look to their houses and offices. So, this factor
can be affect the growth of the online selling business.
 Technological Factor: The UK is a developed country due to its advanced technology
and innovation. The use of advanced technique and medium of using online platform for
selling the goods online, will help the Etsy company to interact with the consumers of
different country to expand their business all around the world.
 Legal Factor: The legislation and government norms, ease the medium of doing
business. The registration and incorporation procedure for starting a small scale industry
is very simple and policies has been made to promote the SMEs to grow their business at
large level so that investment can be increased. The high investment shows the growth
opportunities of an organization.
 Environmental Factor: The UK global economy are facing significant change in the
environment that plays important role in providing resources to the industry to
manufacture the demanded goods. It emphasizes mainly on sustainable products and
pollution free goods and services to foster the growth of the economy . The Esty
company are required to use effective environment policy to safeguard the natural
resources and maintain ecological balance in the ecosystem.
Therefore, all the above mentioned external factors are important to ensure growth and
expansion of online business.