PLANNING FOR GROWTH TABLE OF CONTENTS
Added on 2020-10-22
16 Pages3761 Words270 Views
FinanceEntrepreneurshipMarketing
|
|
|
PLANNING FOR GROWTH1
TABLE OF CONTENTSINTRODUCTION..............................................................................................................................3LO1 ....................................................................................................................................................3P1 Considerations for evaluating growth opportunities.................................................................3P2 Opportunities for growth applying Ansoff’s growth vector matrix..........................................4P3 Various sources of funding and its advantages and disadvantages..........................................6P4 Business Plan and Strategic objectives.....................................................................................7Environmental and Social Impact..................................................................................................7P5 Exit or Succession options for small business and its benefits and drawbacks........................9CONCLUSION................................................................................................................................10REFERENCES.................................................................................................................................112
INTRODUCTIONThis report shows planning and growth of small and medium scale industries. Choices areimportant and descriptive when businesses want to seek fund. Sources of investment andcollaboration attract visitors to invest more in business. In this report, various considerations, economic downturns of Blackpenny Company arediscussed. For family business, succession, exit potential risk involved in the growth Blackpennyhas been widely illustrated (Ahlers, et. at., 2015). There are different techniques to identifyopportunities of growth and appraise options for attaining this growth. To achieve this sustainable growth proper planning and decision-making is required. Anunderstanding of business plan is required which involves various options of succession, makinginformed choices of rewards and risks. These industries depend on capital investment, scale ofoperation and number of persons employed. Blackpenny is growing at a very rapid scale. Itsgrowth is much dependent on financial needs. Thus, below considerations techniques and mainevaluations are done for the planning of company.LO1 P1 Considerations for evaluating growth opportunitiesVarious factors have to be considered while starting a small business or purchasing anexisting company or organisation. There has to be self-analysis of poor management, ability tocheck financial components, risk assessment and market research. On the basis of competitiveadvantage, Blackpenny evaluates its growth opportunities. This depends on resources, capabilitiesand core competencies. Availability and capability of resources measure firm's performance. Operation resources and its capabilities, marketing resources and its capabilities, humanresources all have positive impact on Blackpenny's management (Altinay, et al., 2016). There is noeffect of physical capital resource. Resources include firm's attributes, information system, assets,knowledge, organizational process that modify and control firm to adopt and implement differentstrategies so that its effectiveness and efficiency is improved. Due to the presence of one or moreresources, a firm maintains its competitive advantages which allow differentiation in product andservices valued by customers. Various competitors effect its position in the market as well. In theperiod of globalization, different large-scale industries have affected these small-scale firms. Therehas to be an innovation of products and services in Blackpenny for its growth. 3
It follows various other strategies like Boston Consultancy Group Matrix which helps ingrowth opportunities of Blackpenny by revising its portfolio where decision of investment ismade. Here dogs represent products of minimum growth, question mark as products in highgrowth markets with minimum market share. Stars represent products with increased market sharerate and cash cows are products of low growth markets with increased market share. For growth opportunity, product life cycle is also considered where sales of products goesfrom four phases i.e. introduction, growth, maturity and decline phase. In introduction phase,quality and branding of product is considered. To build market share rapidly pricing has to be atlow penetration or high to recover development costs. Then, distribution and promotion is aimedto provide knowledge to consumers regarding the product. In growth stage, support services of thatproduct are added and its quality is maintained. Then, firms tastes competition so pricing has to be managed properly (Bryman and Bell, 2015).Distribution channels play important role as demand increases and promotion is targeted at wideaudience. In maturity stage, sales start diminishing due to strong growth. There is competition dueto same type of products. Here main goal of Blackpenny is to maximize profit ratherdifferentiating its products. It has to keep its price of products lower due to high competition. Inlast stage i.e. decline stage new features are added to maintain the product because sales decrease.In this stage also cost reduction is there but product may discontinue and inventories mayliquidate. Thus, this strategy helps in determining competitors and more opportunities in market. Other growth options include Ansoff's growth vectors which include marketpenetration, development of services and products, market development, unrelated diversification,distinguishing and justifying risk. Advancement in technology has affected firms to great extent.Creating digital platforms and exploiting technology helps in expansion of business network andits growth. By using various electronic devices and creating websites authorities can directlyconnect with customers and create strong links. On the other hand horizontal and verticalcollaboration has also affected the growth of small businesses. Mergers, acquisitions, jointventures have both negative and positive impact on small scale business.For instance, the various factors which are required to be considered while evaluating thegrowth opportunities for company include:4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
P 1 Key considerations for evaluating growth opportunities (Doc)lg...
|17
|5027
|109
Planning for Growthlg...
|13
|3612
|53
Key Considerations for Achieving Growth Opportunities in SME Companieslg...
|17
|5807
|98
Planning for Growth: Investing in the Future Part 1 - Developing an Exit Plan Part 2lg...
|16
|4993
|225
Unit 42. Table of Contents INTRODUCTION................lg...
|16
|4528
|91
Unit 42 - Planning for Growth in Nora Cafe, Londonlg...
|18
|4740
|192