Analyzing Planning for Growth: Strategies and Approaches
Added on 2020-10-23
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Planning for Growth
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Analyse key consideration for evaluating growth opportunities.......................................1P2 Evaluate growth opportunities by applying Ansoff matrix..............................................4TASK 2............................................................................................................................................6P3 Assess potential sources of funding available to a business.............................................6TASK 3............................................................................................................................................8P4 Design a business plan......................................................................................................8TASK 4..........................................................................................................................................11P5 Assess exit or succession options for a small business...................................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONPlanning is one of vital concept for every business association as it acts as roadmap forfuture growth and success of the company. Small businesses usually create a plan which outlinestheir business ideas, expected financial return and further pertinent information. In addition tothis, growth plan contains information about how enterprises will expand facilities and acquirenecessary economic resources in order to meet raising customers' demand. While identifyinggrowth opportunities, business owners are required to conduct a market research (Barbour andDeakin, 2012). The present assignment is based upon Fordway Solutions Ltd., which provides ITservices, like – data classification, applications, design, testing, IT governance, data security,service delivery and so on. Apart from this, the report is going to be defined key considerationswhich helps in evaluation of growth opportunities by applying planning tools and techniques.There will be a discussion on different sources of finance which helps business owners byproviding them required funds or capital for their venture. Furthermore, a business plan willdevelop that aids to deliver potential growth and success to firms in a certain time period. Byapplying succession strategies Fordway Solutions can easily expand its market or functionalareas. TASK 1P1 Analyse key consideration for evaluating growth opportunitiesIn this competitive market scenario, every company want to grow and diversifythemselves at fast pace and to obtain this they focus on determining available/potential growthopportunities that helps an association to easily survive at marketplace. Most of the firms try tocapture specific markets and some of them want to cover all markets where they will run theirall operations effectively. Selection of target market is based upon size and nature of businessorganisations. Therefore, it is essential for small businesses to develop an adequate growthstrategy which supports them to obtain high competitive edge and ensure their long term survival(Beatley, 2014). In UK, there is rapidly increasing era of SMEs so that entrepreneurs are tendtowards demonstrate growth opportunities and gain maximum returns on investment. As a ITinstallation service provider company, the growth plan of Fordway Solutions is to improve itsproduct line by developing new services and add features in existing ones. It will deliver highmarket growth and share to firm in a certain time period. The firm is having experience of 251
years and provides IT infrastructure solutions which cost effective and secure to all leadingorganisations. Fordway Solution is planning to expand its product portfolio thus it have to assure aboutnecessary resources, finance, tools etc. In this sense, management has acquired two strategies toevaluate its future growth opportunity, such asCompetitive analysis – Due to fierce market competition, firms are required to analyseits competition position and develop strategies and policies accordingly. Porters' genericstrategies are one of the effective tool that aids to assess market competitiveness. It helpscompany to plan its growth strategies in effective manner. As Fordway Solution dealing in ITsectors where as intense competition between existing companies and new entrants also come upwhich can affect profitability and market growth of firms who operates in same sector. Hence,referred company needs to analysis its competitors. Some elements of Porters' growth strategyare stated as under - (Source: Porter's Model of Generic Strategies for Competitive Advantage, 2018)Cost leadership – Business association apply that tactics to focus on standardised goodsand sell them on lower prices. It will contribute to attain and retain many customers,specially who are sensitive towards prices. Cost leadership strategy deters potential2Illustration 1: Strategies for competitive edge
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