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Planning for Growth : Guildford Tyre Company

   

Added on  2021-02-21

19 Pages6155 Words42 Views
Planning for growth

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Analyse key considerations which will help an organisation in evaluating growthopportunities................................................................................................................................1P2 Apply Ansoff's matrix to evaluate opportunities for growth which available fororganisation.................................................................................................................................5TASK 2............................................................................................................................................7P3. Assess the potential sources of funding available to businesses and discuss benefits anddrawbacks of each source............................................................................................................7TASK 3............................................................................................................................................8P4 Design a business plan for growth that includes financial information and strategicobjectives for scaling up a business............................................................................................8TASK 4..........................................................................................................................................13P5 Assess exit or succession options for a small business explaining benefits and drawbacks...................................................................................................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16

INTRODUCTIONPlanning for growth for every business organisation is very essential because it is themain factor due to which firm can aim at achieving the established targets. Moreover, it is anstrategic business activity adopted under which the owners of business track and plan for organicgrowth that enable them to generate more and more revenue. This allows businesses toeffectively allocate limited resources towards a centred goal. Furthermore, business growthhelps in bringing change within small organisation because it primarily aims at making businesswell established into the marketplace. It includes elements of company where consumer are ableto see value of products. This report is based on Guildford Tyre Company which is a fullyindependent tyre distributor. The company's prime products includes tyres for all types ofvehicles which includes car, MPV, 4x4, commercial as well as motorcycle. Furthermore, thecompany also offers additional services which are four wheeler alignment, laser alignment,servicing as well as repairs etc. It is a private limited company situated in United Kingdom.Moreover, this report aims at covering growth opportunities through Ansoff's growth model.Furthermore, it will cover various methods through which organisation access funding. However,this report will cover aim covering the business plan and various exit and succession strategywhich can be used by respective company in order to understand benefits and drawbacks of each.TASK 1P1 Analyse key considerations which will help an organisation in evaluating growthopportunities.Small Business usually aim at expanding their business activities by adopting variousgrowth opportunities which are available in marketplace in order to capture a share into themarketplace(Alden, 2017).Moreover, growth opportunities helps in overall development ofoverall organisation and the turnover of the respective company trends to improve. Thisultimately results in improving quality of products and services provided by respectiveorganisation. Therefore, Guildford Tyre Company should aim at implementing the best growthopportunities in order to expand its business operations worldwide. The most common as well aseffective framework for identify business opportunities in the market includes porter's genericmodel and pestle analysis. Following are the growth opportunities available in the market:1

Porter's Generic Model: It a model that aims at describing how a company can pursuecompetitive advantage across the available market scope. Moreover, porter's generic modelbasically includes all those strategies which help organisation in finding opportunities to growbusiness. Company can pursue any of these strategies as it will help in attracting morecustomers towards organisation as well as increasing profitability (Beatley, 2014). GuildfordTyre Company will be able to capture large market share by implementing this modeleffectively. The four major sub categories of porter's generic model are: Cost Leadership: This strategies will help company to sell its products in competitivelylower rate and become cost leader of the industry.Under cost leadership companybasically aims at becoming leader in that particular industry. By adopting this strategycompany can sell its products at lowest prices as compared to its competitors by loweringmanufacturing cost and maintain quality of product. Moreover, Guildford Tyre Companycan also achieve economies of scale and preferential access of raw materials and severalother factors.Differentiation: In this strategy the company primarily aims at selling the products inunique manner. Majorly one or two attributes are selected by firm that helps to capturemany buyers. Guildford Tyre Company can also make use of differentiation strategy andprovide products to customers which are unique and never sold before. Focus: It is a generic strategy which focuses basically on narrow competitive scope.Segment of customers are selected which the company aims at targetting. Under focusgeneric strategy there are basically two variants:Cost Focus: Under cost focus company generally seeks to make cost advantage. Key tomake success of generic focus strategy is ensure adding some extra value to niche market.Guildford Tyre Company can adopt cost focus strategy as it will help organisation to target asegment of group on the basis of cost. Differentiation: Under differentiation strategy the main focus of companies is to provideexactly different products has compared to firm's competitors. However, Guildford TyreCompany can also make use of this strategy. Therefore, in order to effectively attain growth in the marketplace and successfullyacquire good market share, Guildford Tyre Company is suggested to implement cost leadershipgeneric strategy during the initial stage (Bevilacqua and et.al., 2015). Under which the company2

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