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P1. Analyse key considerations for evaluating growth opportunities

   

Added on  2020-12-09

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PLANNING FORGROWTH

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1 ...........................................................................................................................................3P1. Analyse key considerations for evaluating growth opportunities....................................3P2 Evaluating opportunities for growth by applying Ansoff's growth vector matrix............6TASK 2............................................................................................................................................7P3 Assess potential sources funding available to business....................................................7TASK 3............................................................................................................................................9P4 Design a business plan for growth which also includes financial information.................9TASK 4 ...........................................................................................................................................1P5 Assess exit or succession options for small businesses.....................................................1CONCLUSION...............................................................................................................................2REFERENCES................................................................................................................................3

INTRODUCTIONPlanning for growth is important for every company as without this an organisationcannot do expansion and generate revenue. It is required by top level managers to conductsurveys or research in order to gain information as well as knowledge about various kinds ofopportunities of market and accordingly make modifications in system (Wu, 2015). Thispresent report is based on NEW Car Deals Ltd which is a family running business, based inHerbury, close to the city Yorkshire. They provides efficient, friendly as well as professionalservices to their customers and also take privilege in monitoring their customers both during andafter doing their sell of cars. In this report, analysis of key consideration of SME's is includedwhen evaluating growth opportunities. Also, various methods through which an organisationassess funding and its utilisation has been discussed. Moreover, the report also includes businessplan along with financials and ways for scaling up a business. TASK 1 P1. Analyse key considerations for evaluating growth opportunitiesPlanning for growth and expansion is a key tool which helps in expanding small andmedium enterprises (Beatley, 2014). By effectively planning for growth, small and mediumenterprises gain numerous opportunities as well as possibilities. This helps business concerns inreaching to a larger market and thereby leads to enhancement of sales volume as well as revenuegeneration. It is very essential that managers of New Car Deals Ltd. to evaluate and gathernecessary market information which further helps them in beating their competitors and utilisingall available growth and development opportunities. Various strategies and concepts have beenstudied by managers which help in dealing with competitors by involving external factors.Competitive advantage: There are various firms in every industry. It is quite necessarythat top level managers design planning process in accordance with current market conditions.Managers have decided about launching new specialised commercial vehicles and expandingtheir van business. This further leads managers to develop sustainability benefits in terms ofcompetitors and rivals. Also, they need to keep their focus on execution of business processes insuch a way that a stable position can be maintained in market. Managers of New Car Deals

should adopt strategies and policies which help them in constructing an edge for competitors.This further leads to attracting a large number of customers. Competitive advantage is generallyevaluated by porter's generic model which has been explained as under: Porter's Generic strategies: This model was proposed by Professor Michael Porter who is aneconomic researcher by profession. In this model competitive behaviour of an organisation hasbeen evaluated which helps business concerns in becoming successful in competitive market(Kim, 2017). This model lays a significant impact on various business concerns. This furtherleads managers to develop sustainability benefits in terms of competitors and rivals. Hence,there are four tactics which managers can take into consideration for improving businessperformance. These are further explained in detail as under:Cost leadership: Cost leadership is a key strategy which defines various aspects in abusiness entity. These aspects mainly include top authorities control and reduction in productionexpenses so that goods and services can be available at reasonable prices. It is needed that theirgoodwill and market is maintained in effective manner. For this, managers have decidedminimising their profit share to attract better competitive market. Thus their main aim is toprovide services and vehicles at lower price as compared to their competitors. Differentiation: This is another key strategy which is adopted or considered by businessesfor attracting more number of customers. This is usually done by providing unique and creativeproducts and services (Denton, Forsyth and MacLennan, 2017). To achieve this, managers needto bring in some major and minor changes in business activities of their business units and itsoperating cycles. By doing so, they will be able to improve technology used in their businessprocesses. Top level managers or owners of business concerns should focus on developingbrand image of their company by providing a unique feature in their products and services. Itwill also help in increasing loyal customers towards their brand.Focus: This concept is majorly used by firms when they have to focus on narrowersegment to enhance their sales as well as profitability. Main purpose of managers at this stage isto provide such goods and services that can fulfill demands of customers. Two major strategieshave been discussed under that help managers in achieving their goals and objectives:Cost focus: This strategy helps business organisations in recognising cost advantage incurrent market segment. For this managers of various business units have adopted

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