Evaluation of Growth Opportunities - Doc
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Added on 2020-10-22
Evaluation of Growth Opportunities - Doc
Added on 2020-10-22
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PlanningforGrowth
Table of ContentsINTRODUCTION...........................................................................................................................2TASK 1............................................................................................................................................2P1.Evaluating growth opportunities and considerations within an organisational context........2P2 Evaluate the opportunities for growth applying Ansoff's growth vector matrix...................5TASK 2............................................................................................................................................6P3. Assess potential sources of funding available to businesses and discuss benefits anddrawbacks of each source............................................................................................................6TASK 3 ...........................................................................................................................................8P4. Design business plan for growth which include financial information and strategicobjectives for scaling up a business............................................................................................8TASK 4 .........................................................................................................................................10P5.Assess exit or succession options for a small business expanding the benefits anddrawback of each option...........................................................................................................10Conclusion.....................................................................................................................................12.......................................................................................................................................................12References......................................................................................................................................131
INTRODUCTIONGrowth and development are essential for every organisation to sustain in themarketplace. The management of company is responsible for implementing effective planningfor achieving goals and objectives (Barbour and Deakin, 2012). The organisation selected forconducting this report is Guildford tyre company that is a private limited company started on 29June, 1976. They offers products and services like air conditioning, batteries, brakes, vehiclesdiagnostics, exhausts, repairing of mechanical, mobile tyre fitting and wheel alignment. Thevarious topics explained in this report are evaluation of growth opportunities, methods by whichorganisation access funds and development of business plan. It also includes different waysthorough which a small business owner can exit their business. TASK 1P1.Evaluating growth opportunities and considerations within an organisational contextFor small or medium scale businesses, it is quite difficult to grab opportunities and utilisethem in an effective and efficient way (Brinckmann, Grichnik and Kapsa, 2010). Theseopportunities can be related to marketing of enterprise or expansion of business on a large scale.Management team or directors of small business need to develop creative and innovative plansfor their business. Guildford Tyre is a small scale business enterprise with approximately 250employees. To grab opportunities in a fruitful manner, it is necessary for the management teamto design innovative plan or strategies which is beneficial for their overall growth. There arevarious factors and elements which can be effective for the overall development, growth orsuccess of the organisation. Competitive advantages:-Competitive advantage refers to the situation where any organisation or company seeks apositive or favourable position, to gain more profits and market share as compared to its rivalrycompanies. In order to gain competitive advantage, it is the duty of managers of Guildford TyreCompany to prepare effective strategies and plans, for overall growth of company. There arevarious strategies which is commonly used by enterprises to get competitive advantage. 2
Competitive advantage as a foundation of growthIn the present context, Porter's Generic strategy model is used by Guildford TyreCompany in order to achieve competitive advantage. Before changing any strategies or plans, it is necessary for an organisation or enterpriseto analyse or evaluate their current position at marketplace. To examine market and its trends inan effective or efficient manner, Guildford Tyre Company uses Porter's Generic model. Cost leadership- In this model, by offering low price products and services, companycreate an effective position at marketplace. This model is used by Guildford TyreCompany to analyse market trends and their targeted audience. With the help of whichthey can evaluate demands and requirements of products and services offered by thecompany (Burton, 2010). If rival companies or firms are unable to lower their prices,company may sustain in the competitive marketplace on the basis of cost leadership. Incontext to this company, management team decides to sale their products or services inlow price but with good quality products. As a result they may attract more customersand increase their profit margins as well as market share. Differentiation leadership- In differentiation strategy, company develop unique featureor attribute in the product, which attract huge amount of customers. To attract morecustomers in new market, Guildford Tyre Company design products or services whichhave some unique technology or feature. Along with this company can charge premiumprice, because of increasing value of product which is cased by adding new feature orelement.Cost focus- Main focus of companies in this model is to focus on a particular marketalong with this customers loyalty is high in this case. It is the strategy of Guildford TyreCompany to analyse and evaluate the market condition, demands and requirements ofcustomer's and then design their products and services which is low in cost but still fulfiltheir needs and wants (Chapin, 2012). In this case, company mainly focuses on only onemarket and develop their products according to the requirements. Differentiation focus- As per this strategy, products and services are developed with adifferent or unique feature by a company and by this they are taking consideration of aspecific target market. Guildford Tyre Company innovate or design products with aspecial attribute which will attract customers in a target market. Along with this, they3
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