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Planning for Growth Solution Assignment

   

Added on  2021-02-19

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Planning for Growth

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Analysis and justification of key considerations for evaluating growth opportunities ........1P2: Evaluation of growth opportunities using Ansoff's growth matrix.......................................3TASK 2............................................................................................................................................3P3: Assessment of sources of funding along with advantages and disadvantages.....................3TASK 3............................................................................................................................................5P4: Business plan for growth including financial information and strategic objectives forscaling up a business...................................................................................................................5TASK 4............................................................................................................................................7P5: Succession and exit plan for small business with its advantages and disadvantages...........7CONCLUSION................................................................................................................................8

INTRODUCTIONFormulating of planning is an essential part of an organisation which drives them toachieve growth and move ahead than their competitors in the market world. For this, themanagement play an important role in framing strategies and plans which is possible throughconducting market analysis and addressing customers' requirements (Alsos, Carter, andLjunggren, eds., 2011). SME's are small and medium sized organisation which are operatingtheir business to meet the market needs and requirements by maintaining financial conditionthrough raising funds from various sources including banks, venture capital, angel financing etc.The present assignment report is based on “Impresso Espresso” which is newly coffee shopsituated in London, United Kingdom. The company looking forward to increase sales andrevenue due to which decision has been made for the purpose of growth and success. The reportdiscusses the growth opportunities with proper evaluation using Ansoff's growth matrix. Alongwith this, sources of funds has been also discuss along with their merits and demerits so as togive suitable option to “Impresso Espresso” to strong their financial condition. Business plan isalso prepare under this report with an objective of achieving growth along with exit andsuccession plan.TASK 1P1: Analysis and justification of key considerations for evaluating growth opportunities Porter's Generic Model: This is a framework that is used by the organisations forgaining competitive advantage in the business environment. This model was given by MichaelPorter for implementing successful business in market. The different kinds of strategies given bythis model are listed below - Cost leadership: According to this strategy, the Impresso Expresso coffee house is ableto provide products and services to people at an affordable rate. This is an important function forthis coffee house as this will help in providing products an a price which is agreed by all. Differentiation: This is another strategy by which Impresso Expresso will attaincompetitive advantage in market. This strategy will help the entrepreneur of the company toprovide new and innovative products to customers. Focus: This is key tactic which has been used by organisation and the main objective ofthese is to enhance the profitability and productivity of business. 1

Cost focus: This assists organisation in identifying benefits which are associated withpricing and cost of the product and service offered by the company. In context of thiscoffee house the main motive is to attract more number of customers. Differentiation focus: It is other strategy which will help Impresso Expresso inidentifying a market segment that will be helpful in providing new services. PESTLE AnalysisThe PESTEL analysis is a framework that is helpful in analysing the various externalfactors that affect the business environment of new companies is described below - Political factors – This states that there are some political factors which affects thefunctioning of company or small businesses. There are different rules followed by variouscountries and hence it is important to evaluate these rules before doing business in differentcountries. Environmental factors – The environmental factors include climate change, weatherchange and pollution that impacts the operations of business. It is advisable for Impressoexpresso coffee house to analyse these factors before starting any business. Social factors – These factors include age, gender, trends and fashion which limits thecompanies for increasing the market share (Beatley, 2014). Like and trends are keep changingand hence the entrepreneurs of small businesses have to ensure that they are providing productaccording to the new change. Technological factors- These factors include the new techniques and tools that are usedby the company in doing business processes. These must be evaluated by Impresso Expresso sothat more customers can be attracted. Ecological factors -These includes various concepts like economic growth of thecountry, inflation rate, trading rate, export import rates that are essential to know about thecountry before starting a business. Legal factors -The different legal factors includes legal rules and regulations followed bythe company so that goals and objectives can be achieved effectively without any governmentaldisputes. 2

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