Planing for Growth Opportunities Assignment (Solution)

Planing for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse the factors which help in evaluating growth opportunities......................................3
P2 Examine the growth opportunities by applying ansoff growth vector matrix.......................5
TASK 2............................................................................................................................................7
P3 Analyse the potential source of fund with their merits and demerits available to enterprise.
.....................................................................................................................................................7
TASK 3............................................................................................................................................9
P4 Prepare a business plan for growth........................................................................................9
TASK 4..........................................................................................................................................10
P5 Analyse the exit or succession plan available for a small business.....................................10
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Growth is the process of improving enterprise's current position. A business can achieve
growth by increasing the revenue ,with the increment in the sales and many more methods.
Planning is very essential part by which organisation get the big picture of their long term goals
and the actions which need to taken for its accomplishment. (Eddleston and et. al.,2013). AB
mover and packer is a small company of London which wants to expand their business at
different locations. They provide services of moving furniture from one place to another. The
company wanted to bid for a contract of British embassy who want cleaning and furniture
moving service at their office whose minimum value is £90k. This assignment supports in
finding out growth opportunities through the ansoff growth vector matrix. Along with this it
includes the business plan which organisation use in order to achieve its desired objective. It also
discuss about the various method which organisation use in order to achieve success.
TASK 1
P1 Analyse the factors which help in evaluating growth opportunities.
Planning is the step through which organisation can achieve its desired growth and aim.
Planning for growth provide the framework through which organisation set its standard target
after knowing its current position. Business can achieve growth through providing qualitative
services by means of advance technology. AB mover and packer should do their packaging in
such a way that the person or organisation does not loose any product at the time of transferring
from one premises to other premises. The organisation AB mover and packer can earn
competitive advantage by providing services different from their competitors. They should pack
and place sensitive product carefully so that take separate place in the mind of consumer.
Business get huge benefit when they provide services according to their customer's demands and
needs (Keough,2015). It is essential that business carry effective analysis of these factors so that
growth can be achieved.
Porter's generic strategies
This model is used to increase the growth opportunities of AB mover and packer
company. The organisation can earn competitive advantage either by lowering the cost or by
differentiating services to attract customers. This model was invented by Michael porter in the
year 1980. AB mover and packer can use this method to increase their profitability and for

creating a brand image. It includes various factors which organisation should use in order to
achieve its growth and carry out its day to day operations.
Cost Leadership : In this strategy firm provide qualitative product at the low price. The
company avail this benefit by using economies of scale, technology or effective raw material.
AB mover and packer can use this strategy for their service in order to attract new clients and
retain existing customers.
Differentiation : In this strategy firm make differentiation in their product and services
which are unique for the industry and valued by the consumer (Moseley,2013). AB mover and
packer can make its services different by making changes in their packaging and adding the
features which are important according to customer. They can charge also high price for their
uniqueness.
Focus : In this strategy focus is on the niche market which was not concentrated by the
competitive firm. It can improve the performance of the AB mover and packer organisation. It is
divided into two parts such as:
Cost focus : It means that organisation focus on their pricing of the services that it will
better from their rival pricing policy. The product and services should be provide with quality.
Differentiation focus : The AB mover and packer need to focus on their service and it
effectiveness according to its competitors services so that it can boost company's image.
The company can choose cost leadership strategy entering into the existing market with
the existing services. The respective company belongs to service industry for them bringing
completely new service is not possible they can only make variation. The main motive of the
organisation is to provide the cleaning and furniture moving service at a cheap rate to achieve
growth and fulfil needs of contract.
Pestle analysis
Pestle analysis include the outside factors which create a big effect on organisation
success. These factors are political,social,economical, technological, legal and environmental
Organisation need to evaluate these external factors because it directly affect the business
productivity and profitability.
Political factors : Organisation need to understand the political environment of the
country. Every business have some rules and regulation which need to be followed in order to
carry out operation activities. If the political environment is stable than organisation able to