Evaluate Planning for Growth Opportunities
Added on 2020-10-05
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Planning for Growth
Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P 1 Analyse key considerations for evaluating growth opportunities.........................................1P 2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.................2LO2..................................................................................................................................................4P 3. Assess the potential sources of funding available to businesses and discuss benefits anddrawbacks of each source............................................................................................................4LO3..................................................................................................................................................6P 4. Design a business plan for growth that includes financial information and strategicobjectives for scaling up a business............................................................................................6LO4 .................................................................................................................................................9P 5. Assess exit or succession options for a small business explaining the benefits anddrawbacks of each option............................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONA strategic business activity that allow business owners to plan and stalk organic growthin their revenues is called refers to growth planning. Allocation of limited resources have beenallowed to businesses, towards a centralised effort to get adjusted to new changes in the industryoperated by digital interference. Superdry fashion retailer is a UK brand which deals in clothing of both men's andwomen's wear. Its products are the combination of vintage Americana styling with Japaneseinspired graphics. The company has seen a lift in international market due to the Brexit vote. Theaim of this report is to analyse key considerations for evaluating growth opportunities byapplying Anoff's growth matrix. Apart from this, it will cover potential sources of funding whichare available to businesses. Further, it will design a business plan for growth and assess exitoptions for a business. LO1P 1 Analyse key considerations for evaluating growth opportunities.Whether an entrepreneur is setting up a new small business or buying an active company,he need to take into consideration key factors for evaluating growth opportunities (). It isessential for him to determine whether the business project they have decided to launch isexecutable or not. Here are some factors to view while deciding whether an idea it worthadopting: Market size: This factor is considered to be the most crucial factor when assessing abusiness opportunity. Accessing potentiality of market is essential for an entrepreneur forthe products or services he wishes to sell. Market should be clearly defined byorganisation in order to evaluate opportunity. For example, Superdry should examinewhether its fashionable items are suitable for that particular market or not.Cost benefited consideration: An entrepreneur must evaluate that the opportunity shouldbe beneficial to share-owner. Company should view expected returns against theexpected cost in order to make sure that the benefits are greater than cost. For example,Superdry company must review that whether its new project is rewarding andadvantageous to the investors or not (Douay and Jayaram, 2015).1
Personnel, training and management: Before establishing a start-up, it is necessary toconsider human resource, training and management factor which are required to operate abusiness. For example; Superdry must look at the ability of labour, cost of hiring andproviding training to them. Financial viability: While a company looking at the viability of a new business project,evaluation of financial possibility is also very important. For example, Superdry mustevaluate requirement of capital investment, break even analysis and expected profitabilityof the business. Competition: This factor is considered as a threat to a business, which are operating onsame location with similar products. Hence, it is crucial for Superdry to know itscompetitors before launching its project in order to consider opportunities as this willallow them to have reasonable market (McKenzie, 2017). Legal consideration: The new thought for business must consider legal framework beforeestablishing new company. Therefore, Superdry should start its idea through licence andmust follow all regulative rules to keep itself protective. Hence, there are many ways to evaluate growth opportunities, but nothing can comparedto the efficiency of technology. It has been determined that digital technology is available for allbusinesses which help owners to address daily challenges. P 2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.Ansoff’s growth vector model is highly used for strategic marketing planning where it isimplemented to view at opportunities to expand revenue for a business by creating new productsand services or else by entering into new markets. It is one of the most important model which iswidely used as it focus on growth (The Anoff Matric, 2018). Market penetration: It is considered as the first area in this model, which is adopted bya company when they already have a product with a known market and requires a growthstrategy within the existing market. Organisations can showcase their entire productportfolio or may create new marketing strategy to encourage market. As Superdry is anewly launched company, so this strategy is not useful for it at this point, hence, they canadopt this later (Gold, Morillo and Nakamya, 2015). 2
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