Planning for Growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Key considerations for measuring growth opportunities in context with an organisation.. .4
P2. Justify the opportunities got growth by Ansoff's growth vector matrix...............................6
TASK 2............................................................................................................................................8
P3. Potential sources of funding available to business by discussing drawbacks and benefits of
each sources................................................................................................................................8
TASK 3............................................................................................................................................9
P4. Business plan for growth......................................................................................................9
TASK 4..........................................................................................................................................12
P5. Succession and exit options for a small business by identifying benefits and drawbacks. 12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for growth refers to the strategic business activity in which business owners are
able to make unique plan as well as different strategies in order to increase sales and revenue
growth of business in an appropriate manner. It is very helpful for firms to achieve competitive
advantages and opportunities within the marketplace. Therefore, planning for growth is much
essential to gain business values at various levels of business to achieve organisational goals.
Along with this, planning is one of the essential part of a business which helps them to grow and
make effective guidelines to get better success in future. Present report is based on SME's which
involves medium and small businesses (ZHANG, ZHAO and CHEN, 2013). Along with this
report is based on MILTON SANDFORD WINES, which deals with variety of wines in various
hotels and restaurants. Furthermore, discussions will be based on key consideration SME's
should cover to evaluate growth opportunities. After this there are various methods by which
organisation access funding and uses various types of funding. At last, business plan with
financials activities and different ways a small business owner that can be exit on implications
and business from different options will get covered.
TASK 1
P1. Key considerations for measuring growth opportunities in context with an organisation.
Planning is most important functions which plays vital role within the context of an
organisation. It helps them to implements on new ideas and thoughts in order to gain better
outcomes and results in a proper way. Therefore, it is essential for Milton Sandford Wines, to
have major focus on various unique and attractive plan in order to achieve huge success with
proper growth in a proper way. In order gain profitable success respective have been used
various aspects, those are explained below:
Porter's generic strategy:
There are four strategies which comes under this model for organisations in order to
achieve competitive advantages and goals (Wey, 2015). These sorts of strategies are much
helpful to increase overall profits towards Milton Sandford Wines, which are discussed below:
Cost leadership: According to this method, most of the firms are focusing to cover large
number of market by having various sorts of goods and services with lower price. Therefore, this
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is best method for respective firm, so that they can make lower price strategies in order to sustain
for long period of time at marketplace.
Differentiation: As per this method respective firm is required to concentrates on
developing various unique products as they deal with wines so that they can beat competition
and able to achieve targeted goals. In order to differentiate firms needed to have research and
development programmes to fulfil buyers needs and then minimise the competition.
Cost focus: It is another factor which is also necessary for an organisation to focuses on
those strategies and tools by which they can reach their desired goals effectively. In relation with
Milton Sandford Wines as opted lower price strategies so that they can easily get success by
giving better quality of wine to clients and customers within hotel (Shi and et. al., 2012).
Differentiation focus: This strategy affects large number of people within the
marketplace by having unique goods and services. In order to get huge success Milton Sandford
wines needs to have strong brand loyalty so that they can give better wines an gain large profit
within the marketplace.
On the basis of this, it can be said that, respective firm should focus on their costing
prices so that they can make decision towards pricing accordingly. Together with they can
achieve large number of market share to make sustainability in a proper way at marketplace.
PESTEL analysis:
It is much essential element which is generally used to describe various growth
opportunities of firm at marketplace. Whereas, PESTLE analysis is one of the main tool to
understand overall external factors in a perfect way. In order to manage business activities in a
different way, this tool is very helpful to execute on various business strategies. PESTLE consist
6 elements in context with organisation, described below:
Political: This factor includes governmental rules, regulations, policies and various laws.
Therefore, it is important for Milton Sandford Wines they should follow all that rules in order to
provide better services in various hotel within UK. By focusing on all these type of things they
can get better opportunities with effective profits (Todes, 2012).
Economical: According to this factor there are so many changes such as inflation rate,
growth rate and so on. In relation with Milton Sandford Wines should focuses on all these types
of thinks so that they can operate their business activities accordingly. Within the UK the entire
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growth rate mainly remains high that is more beneficial for firms to gain good success in a
perfect way.
Social: This is totally based on overall desires, preferences, choices of people at
everywhere. So that firm should consider all these sorts of needs and wants of people and should
make appropriate wines for people so that they can satisfy them and achieve huge success in a
proper way.
Technological: Advancements in technologies always influence people within the
organisation as well as outside the organisation. In relation with Milton Sandford Wines, they are
using various types of techniques in order to provide better wines to its customers and make
them happy.
Environmental: These types of factors comes under the various elements such as
weather changes, cultural changes, environmental offences and so on. In order to protect
themselves from all these factors influence respective organisation should focus on their overall
CSR activities to make good image at marketplace (Ziari And et. al., 2012).
Legal factors: These types of factors involves in appropriate laws and rules which
directly impact on overall performance of business environment towards organisation. In order to
reduce influence of these factors respective firm should have general policies so that they can run
according to the government rules and regulations within the marketplace.
P2. Justify the opportunities got growth by Ansoff's growth vector matrix.
Ansoff growth matrix is one of the better model of marketing which is generally used to
describe firms values and business opportunities for future, in order to increase overall sales and
revenue in a roper way. With the help of this model products which is offered by Milton
Sandford wines, this model will help them to achieve goals, which is explained below:
Market Penetration: According to this step of this model firm used so many goods
within existing market share (Mitchelmore and Rowley, 2013). In relation with Milton Sandford
Wines, this can be said that as they are providing number one quality of wines, so that they have
change to gain better opportunities. In order to maintain this regularity they are needed to have
unique strategies and techniques to attract huge number of customers. Therefore, it would be
beneficial for them to enhance overall sales volumes by giving products at lower price to its
customers. Along with this it also increases profits and productivity of an organisation in a
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perfect way. But sometimes it can be the risk for them to develop opportunities in new market. It
will reduce profits and productivity of firm.
Market development: With the help of this strategy firm mainly focused on new market
in order to help their existing products. Therefore, firms needed to have appropriate strategies
and techniques in order to formulates new market for customers. In relation with respective
organisation it will be benefited, as they can take advantages by giving better and attractive
quality of wines in hotel, restaurants. On the basis of this they can survive in marketplace for
long period of time. Along with this, risk factor is it can be more risky for firm by developing
new markets without observing knowledge of consumers in the market condition will decrease
the value of this firm.
Product development: According to this method from Ansoff model it has been
observed that it will help firm to capture large number of market by formulating new products in
a proper way (Osiyevskyy and et. al., 2013). In reference with respective organisation they are
needed to have research and development techniques so that they can make product in a new
ways. Along with this they are required to focus on customers choice and taste in order to gain
competitive advantages in an effective manner. If talk about benefits then it will be beneficial by
increasing huge profits through fulfil consumers demand. Sometimes there are some issues
towards marketplace can minimise demand of customers and develop negative image in front of
people.
Diversification: It is helpful for firms while they launch any new product into the
marketplace. Before making it respective firm is needed to have accurate ideas and knowledge in
order to achieve organisational goals in order to develop new product within the marketplace. As
it is beneficial for them like they can make high quality of wines to gain competitive advantages.
Along with this they can focuses on research for analysing customers preferences. According to
this the major factor is, if they apply new strategies on their products and it will not referenced
by customers so that it will minimize the value of firm.
So now this can be said that Milton Sandford Wines adopts huge strategies and
technologies so that they can bring innovative things on their drinks products and make each and
every individual satisfy within the hotel or restaurants.
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TASK 2
P3. Potential sources of funding available to business by discussing drawbacks and benefits of
each sources.
Funding means investment of proper money within the particular operational activities in
order to carry out all those operations comes under the business entities. For operating overall
activities it is much essential for Milton Sandford Wines to maintain their financial resources in
order to make new plan for unique products at marketplace (Lu and et. al., 2013). By keeping
resources safe they can execute on various strategies by which they can fulfil customers choices
and preferences as well. Now respective firm is wants to expand its business so it very
significant for them to have availability of resources in order to minimise financial problems,
mentioned below:
Internal sources of funding: According to this, sources of funding is possible, which
already available within the internal environment only. These type of sources involves
minimising working capital, assets, debt collection and so on. Along with this, it mainly refers to
those terms which has availability towards organisation.
External sources of funding: This type of resources always comes from the outside the
business firm. Some of the best examples of these type of resources are bank loan, overdraft,
equity capital and so on.
Overdraft: This is the source of external resource which directly offers huge facilities
for customers, so that they can withdrawn money from their ban account any time, if they will
not do like this they loose their overall amount in the form of zero. Therefore, a customers can
easily withdrawn amount as per their needs to their assigned limits (Li, Mobin and Keyser,
2015).
Advantage- By having this type of facility they can feel relax and able to borrow money
from other as they need. On the basis of this external resource firms can take their desirable
amount by which they can fulfil customers needs and values in a proper manner.
Disadvantage- Sometimes bank can ask anytime about repayment policy form firm so
that it can be developed issues for respective organisation so they have to repay in any situation.
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Bank loan: It is the form capital in which people borrowed loan from the appropriate
bank for a particular period of time to gain their objectives. In this if person takes money from
the bank so that they are needed to give some securities to bank.
Advantage- With the help of this customers can aware from every aspect to the bank and
able to return given amount before time. For example: the entire business of Milton Sandford
wines takes fund from the bank so that they can increase their value and able to return on time.
Disadvantage- If firm will not pay on time then extra charges can be applied from the
bank. For example if respective firm will not give amount on time so bank will sale their security
in any type of condition. It would be the huge loss for an organisation (Lambert and Oatley,
2017).
Crowdfunding: According to this it will enhance overall capital form the overall people,
investor and large number of people within the form of small amounts with the help of social
media, internet and so on.
Advantage: On the basis of this advantage all type of resources can be identify as per the
reaction of public so that they can choose services accordingly and able to take right decision in
an appropriate manner.
Disadvantage: In order to collect lots of funds or new methods within the organisation
can develop more competitive scenario. For example if Milton wines not able to keep maintain
their relationship with people so that they can face any difficulties for fulfilling their overall
requirements.
TASK 3
P4. Business plan for growth.
Planning is the most effective and essential part of an organisation that mainly consist
different types of activities and lots of actions which is played by an organisation. In order to
attain appropriate goals and objectives it is necessary for firms to manage their business activities
in a proper way (Lu and Yu, 2014). In reference with Milton Sandford Wines, they want to
expand its business at large level so that they need to have unique objectives by which they can
make them famous in so many cities. In order to achieve successful growth business plan is very
necessary to concern which is going to described below:
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Vision: The vision is to become a unique industry for clients and customers in different
cities by satisfying their needs and wants.
Mission: The mission is to dedicated production and also the art vinification in order to
provide excellent wines for customers and clients in top hotels and restaurants in UK.
Objectives: The main objective of this organisation is to make huge profits which can be
from 30% to 66% in coming 2.5 years. On the other side they are trying to gain appropriate goals
and objectives in a proper manner. In order to achieve more benefits they are trying to make
SMART objectives in a proper way (Glock, Jaber and Zolfaghari, 2012).
Financial Information: This is more essential for every firm in order gain huge success
in a profitable manner. In relation with Milton Sandford Wines, they have limited financial
resources so that they can easily operate all those things which provide them huge profits in a
perfect way. As per the above discussion bank credit option is the best way to repay loan. There
is a estimated budget for this organisation for introducing new wines with chocolates flavour,
given below:
Total estimated Budget
Particular 31/12/16 ($) 31/12/17 ($) 31/12/18 ($)
Employing technology
expenditure
10000 - 7000
Promotional cost 15000 7600 2000
Advertisement cost 1000 9000 2000
Catalogue 8000 6700 4800
Training cost 7200 5000 6000
Total Cost 41200 28300 21800
On the basis of above table it has been concluded that funds are properly allocated for
each and every functions of an organisation by which firms can reduce various financial issues
from the company (Goodfellow, 2013).
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SWOT
Strength Weakness
Milton Sandford Wines has huge customers
base, by which they can achieve their goals
on time.
As they offered wines to people, but
sometimes they are not able to underpinning
about consumers' taste and preferences.
Opportunities Threats
As they provide wines with lower quality so
that they have a chance to expand its
business in so many countries (Colantoni and
et. al., 2016).
At current scenario there are different types
of competitors who are also selling this type
of wines in hotels.
Cash flow statement:
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According to the above statement this can be said that entire business of Milton Sandford
Wines have sufficient amount to repay values of debts. So the overall average financial estimated
can be shows as $72001 within 3 years.
TASK 4
P5. Succession and exit options for a small business by identifying benefits and drawbacks.
There are different types of plan of action which can be developed by management of an
organisation in order to develop appropriate successful plan. Along with this there are some
deviations which develop issues to fulfil and exist advanced expenditure. So the successful plan
always define a subdivision by which administration needed to turn on that person who is
managing family members and administration as well. It can be helpful for firm in the form of
controlling. In context with Milton Sandford Wines, management of this organisation can define
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different types of succession and exit plan by which they can make better plan and able to use
accurate plan of actions to achieve organisational goals and objectives. Those are explained
below:
Merger and Acquisition: It refers to the managing activity and merging 2 firms into the
one firm to attain business goals and objectives in a proper way. Along with acquisition is
beneficial for management as it helps them to increase market share without analysing necessary
evaluation (Galland, 2012).
Advantages- On the basis of this merger and acquisition, firms can develop revenue and
increment in a perfect way by expanding their size within marketplace. It is mainly based on
geographical areas and locations to gain competitive scenario. Therefore, it is more effective to
bring few changes within the monetary funds to gain appropriate values of share for long
duration.
Disadvantages- During the time of doing overall merger and acquisition, it can take
times and can create so many issues in between various goods and services in which business
operates. Therefore, its influence overall purchasing power of consumers and make negative
impact of business.
Integration: It is the administration plan which comes under the businesses in order to
make appropriate actions and plan in an effective manner. Generally it is segmented in two
sections like horizontal and vertical within those firms which is mainly used to control over the
process of an organisation. There are some benefits and drawback of it, those are following as
under:
Benefits- It is beneficial as it has good chain of value within the firms so that they can
develop effective culture and systems in order to maximise profits in a proper way.
Drawbacks- There are different types of laws and legislations which is governed by the
government (Arzaghi and et. al., 2017). All these sorts of mainly develops limitations and
barriers to enter into the marketplace. It mainly includes down stream and up stream, which is
the functional part of an organisation by minimising capacity of acceptability
Voluntary/compulsory winding up: This type of issue always developed when firm is
not able to handle all situations of business in a proper way. It is mainly divided into 2 types like
voluntary and compulsory. On the basis of those functions firms can not able to pay back in
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order to financial debts so that which is increased by it. Some of the advantages and
disadvantages are mentioned below:
Advantages- The main benefit of this, when firm has been selling of their product and
services at marketplace. As per this they can control on their services in a proper way.
Disadvantages: This is the self occupied business so that it would be the reason as it can
develop so many difficulties for firm, so that they can not achieve their overall goals and
objectives in a proper way.
CONCLUSION
On the basis of above report it has been analysed that planning is more important term for
the future growth in a perfect manner. There are several models and strategies are used such as
Porter's generic model, Ansoff's model in order to measure overall growth opportunities at
marketplace. As the business of Milton Sandford Wines they have been used so many funding
ways in order to expand business with the establishment of new product at marketplace. By
having this sorts of synergy develop more opportunities for this market, so that they can exit on
new ideas and able to achieve huge success in an effective manner.
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