Unit 42 – Planning for Growth

Unit 42 – Planning for
Growth

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
P1 Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.........................................................................4
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................8
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organizational context................................9
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source..........................................................................................................10
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organizational context................................................................11
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up of business.........................................................................................11
M3 Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving
objectives..................................................................................................................................14
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................15
M4 Evaluate exit or succession points for a small business comparing and contrasting the
options and making valid recommendations.............................................................................16
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
The operational functioning of a business is determined through the achievement of goals
and objectives that is gained for the growth and development of the company. A business growth
plan is the authorised document that provides the details for successful development of the
company. There is an immense need of plan for plan of business growth due to various
circumstances such as loss of customer retention, decrease in sale of business which is in turn
increasing the competition in the market. The organisation aims to grow and develop its business
with the service of increased sales which in turn will help in gaining profit. The success of an
organisation is determined through the enforcement of a business plan. The organisation chosen
in this report is Merchant & Mills, which is a clothing company in United Kingdom. It
specialises in providing quality material in clothing with its exclusive packaging which makes it
stand out from the rest companies (Adebola, 2019). The price tagged is a bit high but is
reasonable in consideration of its quality and packaging. This report will cover the factors in
consideration of the growth opportunities with enforcement of Ansoff growth matrix which in
turn will help in achieving the goals and will also cover the positive and negative sides through
the sources of finance used in the company.
TASK
P1 Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context
The PESTLE analysis framework help in analyzing the growth opportunities that are
provided through the external factors that impact the growth of an organization. The operational
activities of business are affected through the PORTER strategies which helps in analyzing the
opportunities for growth in an organization (Azubuike, Songi, Irowarisima, and Chinda, .et.al
2018) . The framework of Merchant and Mills will be analyzed through the following strategies
and analysis which are mentioned below:
PESTLE Analysis:
The external factors of an organization is determined through the PESTLE framework which
may impact the growth of an organization and the operational functioning of an organization is
determined through the internal and external factors that in turn helps in analyzing the

opportunities of growth in an organization. SWOT analysis is extension of PESTLE analysis.
The external framework of organization of Merchant and Mills will be determined through the
following factors:
 Political factors – The enforcement of government regulations of the company such as
will be determined various factors such as regulation of environment, tax policy and
restrictions of trade and tariffs. In context to Merchant and Mills, the long term
profitability of the company is majorly affected and the functioning of company in major
countries helps in exploring the existence of political environment with the association of
risk. The activity of corruption could be prevented through determination of political
factors with the implementation of legal and taxation rules for the legal enforcement of
contracts.
 Economic factors – The economic growth of an organization is affected through the rate
of unemployment, exchange of interest, wage and inflation rates. In context to Merchant
and Mills, the growth rate of material of company with the expenditure through the
customers determines the performance of company (Chi, Li, Trigeorgis, and Tsekrekos,
2019). The material quality of the organization with its quality of infrastructure through
the government will be analyzed by the company in order to maintain the economic
growth of organization.
 Social factors – The social factors majorly determine the health, safety, career with
increasing rate of population in order to evaluate the cultural norms of the company. The
customers can be gained through the achievement of social factors. In context to
Merchant and Mills, the marketing strategy of the company can affect the structure of
planning of company. The marketing of material industry is able to flourish with
implementation of social factors.
 Technological factors – The operations of business is majorly affected through the
development and innovation of technology. Some of the major developments in
technology is with the enforcement of Artificial Intelligence, Machine learning and IOT.
In context to Merchant and Mills, the recent developments of the company can be
determined through the increasing competition in the field of technology and the
execution of quality service with the enforcement of technology.