Unit 42 – Planning for Growth

Unit 42 – Planning for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1- Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.........................................................................3

INTRODUCTION
Planning is a process needed for achieving desired goals. Planning consists use of
imagination and logic for making objectives and plans for future growth. Planning assists us for
identifying clear growth and also aids to achieve them. Planning for growth assists workforce to
encourage and grow personally for identifying to improve their weaknesses and strengths.
Planning for business growth is essential for every kind of business. In many of developing
economies, SMEs improves rate of employment. When big industry reduces jobs then small
industry makes more job. The report is on PRESS London, co founded by Georgie and Ed in
2014, headquarters in London, UK. The company works over 700 independent stockist all over
UK. The company make nutrient-dense, super fresh cold pressed juices and healthy foods.
MAIN BODY
P1- Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
SMEs boost the country's economy by creating additional jobs and income. Growth is
essential for the long-term survival of businesses. Growth helps a company acquire assets and
attract new talent. Business growth increases business performance and profit. Medium and
small companies improve the employment rate in developing countries.
Competitive Advantage – This is the company's ability to produce something more effective and
efficient than other competitors and companies, resulting in good profit margins.
PESTLE analysis
The PESTLE analysis explains the external factors (political, economic, social, technological,
legal, environmental) affecting an organization. Analysis can be used by a company to see
overall growth and helps in strategic decision making.
• Political Factors – PRESS London Company is a UK based company. Great Britain is one of
the most powerful countries in the world. The UK government performs well on fighting
corruption and government is stable. The main effect PRESS London faced was the exit of
Britain from the European Union. Profits had fallen briefly, but the exit of British companies had
created a labor shortage in the country.

• Economic Factors – The economic factors include unemployment rate, changes in interest
rates, taxes. These factors indirectly affect a company, external economic factors influence
purchasing factors of consumers and companies. PRESS London trades in cold pressed juices
and health foods. The company imports raw materials (natural fruits, vegetables) from other
countries. Changes in tax rates would therefore have a direct impact on the prices of the end
product. The price changes will make it difficult to retain customers.
• Social Factors – Customer tastes and preferences change rapidly from day to day. Social factors
are the things that influence customers' habits and spending. PRESSE London has to adjust
production according to customer preferences. The PRESS London can also start using social
media to market the products.
• Technological Factors – These factors include the technologies and innovations used by a
company. It is important to have the latest technologies that help drive down prices and generate
higher yields. These factors can be both opportunities and risks for a company. PRESS London
can use state-of-the-art technology machines in the production and manufacture, which reduce
the cost of the products. It allows to build more customers and keep new customers.
• Legal Factors – Legal factors affect a business in every aspect, from starting a business to
hiring employees and selling products. There are various food and safety laws in the UK that
must be complied with by any business selling food. PRESS London must comply with all food
safety laws and labour laws.
• Environmental Factors – Air pollution is the UK's number one environmental threat.
Environmental factors such as climate changes, natural disasters and pollution affect the supply
chain and also affect the cost of raw materials. The flow of goods was hampered by the climatic
changes in Great Britain, which meant that PRESSE London had to accept short-term losses.
Porter's generic strategies
These strategies are used to determine a company's position in its industry and whether the
company's profitability is above or below average. These strategies help a company gain
competitive advantages over other companies.
There are four generic strategies-
• Cost Leadership Strategies – With this strategy, the company targets a larger market and offers
customers the lowest possible prices. In both cases, the main goal of the company is to keep
costs as low as possible. PRESS London can use this strategy, but the company must review