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Planning for Growth Assignment - R Robson (Guinot)

   

Added on  2020-10-23

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Planning for Growth

Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1...........................................................................................................................................3P1 Analysis of key considerations for evaluating growth opportunities & justify these inorganisational context.................................................................................................................3P2 Evaluation of growth opportunities by applying Ansoff's growth matrix.............................8TASK 2............................................................................................................................................9P3 Different sources of funding along with it key advantages and disadvantages.....................9TASK 3..........................................................................................................................................12P4 Designing business plan for growth of organisation............................................................12TASK 4..........................................................................................................................................16P5: Succession and exit plan for small business with its advantages and disadvantages.........16CONCLUSION..............................................................................................................................19REFERENCES..............................................................................................................................20

INTRODUCTION Planning is a central activity that assist firm in achieving high growth and development aswell as attain pre-defined goals within specified time frame. The process of planning starts withmeasuring existing operation of company and determine what needs to be improvedoperationally in the upcoming time period. With the help of growth planning, business ownercan track revenue and market growth while formulating effective business strategy. The chosenorganization for this report is R Robson (Guinot) which is UK based company primarily deals inbeauty treatment products (Barbour and Deakin, 2012) The given report covers keyconsideration needed for massive expansion and future growth, developing business plan,assessing different source of funding along with its key benefits and lastly ways top existbusiness. TASK 1P1 Analysis of key considerations for evaluating growth opportunities & justify these inorganisational contextGrowth in business forms critical factor for an organization to attain in order to maintainsustainability and profits of the organisation. For this company together with its managementand workforce undertake planning for its long term growth objectives. This assists firm tomaximize its work efficiency, enhance its performance and to attain goals before or withintimelines. R Robson is a small enterprise in UK that deals in beauty and skin care products thusit has wide scope to diversify its business by introducing innovative and distinctive concepts.Therefore to launch a new product firm is required to thoroughly identify and analyse its bothexternal and internal market environment factors that are likeable to posses threats and to provideopportunities to the firm (Brinckmann, Grichnik and Kapsa, 2010). Mentioned below are certainanalysis that is requisite for firm to undertake:Competitive advantage Resources In order to develop a new product company make use of many materials. Incase of cosmetics on of the most important factor that induces brand image is the quality ofproducts and services. Thus, it is requisite for R Robson to identify and select sources thatbesides been of high quality are readily available to the firm.

Capabilities: Capabilities being the potential of firm and its workforce that is to provideit an edge over is competitors. With emergence trends in people of all age group to lookpresentable there is wide scope and high level of competition in beauty and cosmetic industry.Thus, it is essential for R Robson to continuously launch innovative and unique cosmeticsproducts that fulfil needs and desires of its target audience. Core Competencies: It forms the unique selling proportion of a firm that differentiaefirms products with that of various other substitutes available in market. Core competenciesshould involve factors that are significant and of utmost importance to attract its customers andto satisfy their needs. Thus, it is critical for managers of R Robson to evaluate and introduceinnovative and improved cosmetics that could provide firm with an advantage over its rivals.Porters-five-forces ModelFor identifying and analysing factors that could prove to enhance core competencies of RRobson company make use of Porter generic Strategy Model that is based on three components:Cost Leadership:The major objective of this strategy is to get an edge over competitorsby providing quality products and services at competitive or lower prices (Porter’s Five Forcesof Competitive Position Analysis, 2018). Thus, R Robson tries to reduce some costs from each ofits functional areas or operations like getting raw material at lower price, increasing efficiency ofits distribution channels by maintaining smaller and efficient logistics and supply chainmanagement. Also it is important for managers to set size of production batch in such a way thatit is helpful for firm to reduce its manufacturing costs and to get customer satisfaction. Differentiation: This strategy involves offering product or service that is quietdistinctive and unique and is not provided by any competitor in the industry. In case of cosmeticand beauty industry there is change in customers needs and demands on regular basis thereforethis serves as a great opportunity for R Robson to identify, analyse its clients aspirations andlaunch products and services as per their needs to gain their loyalty.Cost Focus: It involves firm to ficus their strategies on the target market which is lessvulnerable to availability of substitutes or where there is less competition so that firm couldattain above average ROI. Thus, managers of R Robson try to identify those segments that canhelp firm to gain advantage over its competitors (Burton, 2010). Differentiation Focus: Applying this strategy firm concentrate its focus on providingunique products to niche market. Thus , R Robson ensures that it launches beauty products that is

most advanced with unique features so that it can cater the demands of its clients and to build itsbrand image as most innovative and trustable company. PESTLE of R Robson (Guinot)It involves analysis of R Robson's macro business environment that assist firm to analysevarious technological and other factors that can prove to be way of gaining opportunities andavoid threats related to business:Political Factor: These factors relates to the factors like political stability, various taxpolicies, government regulations etc. that R Robson is required to be adhere by and follow inorder to successful diversify its operations in in different countries. Launching herbal productswill help firm to gain subsidies in nations like India where government promotes use of herbaland organic products.Economical Factors: It includes factors like income of people, inflation rate, etc that arerequisite for R Robson to consider prior launching its new products. It is because it will help firmto identify it target audience, to ascertain its funds requirements and to find ways to reduce itsover all costs (Chapin, 2012). R Robson to introduce new product requires huge funds that arelikeable to posses threat to its sustainability and growth in case it product did not work out. Social factor: It comprises factors like health consciousness, attitudes and beliefs ofpeople etc. R Robson being dealing in beauty and care industry requires to provide top and highquality products to its customers that are skin friendly to them. It is important factor to beconsider as it directly influences brand image and consumers loyalty and trust. Frequent changesin clients needs related to get innovative and herbal products tends to provide opportunities for RRobson to enhance its growth.Technological Factor: It involves factors like use of latest and advance techniques forthat could assist R Robson to shrink its cost of production, enhance quality of its products and togenerate higher profits. It also involves cost that is to be incur in training its employees to makethem efficient in handling new techno upgrades. This provides opportunities for R Robson to selland promote its new products and services by making use of online e-commerce websites andshopping portals. It helps firm reach out wide target audience globally in cost effective mannerand in less time .Legal Factors: In UK, there are various laws that determines the safety of beauty andskin care products , setting standards to safeguard consumers . R Robson is thus required to

adhere by these laws where in company is requisite to label their products with list of allingredients that are used in product, its expiry and manufacturing dates, warning statements andother precautionary instructions and information.Environment factors: With gaining popularity of green consumerism and ethical issuesR Robson to get an edge is shifting its strategies to introduce herbal products. This will helpfirm to get positive feedback from its consumers as today clients are concerned about probableside effects of many artificial substances that are often used in cosmetics.New product and service: With emerging trend and customers awareness about the negative effects of variousartificial materials like paraben, petrochemicals and other toxins there is sudden shift towardsusing herbal products. To gain advantage over its rivals and to expand its target business marketR Robson is to introduce herbal face creams that are made with natural ingredients and fruitsextracts (Christofakis and Papadaskalopoulos, 2011). BCG Matrix: To ascertain its growth opportunities R Robson make use of BCG matrixto review its product portfolio. It assist company to take important decision regarding whether toinvest in this project or to discontinue. Mentioned below are 4 quadrants that of BCG matrix:Dog: Cash consumption is low as there small pace of growth rate and market share.Question mark: Cash consumption is high as market share is low but growth rate is high.Star: Both market rate and growth rate is quiet high that lead to high cash generationCash Cow: It comprises returns higher than market share. Thus, in comparison to inputsprofits are high.GE Matrix: This matrix assists r Robson to analyse and measure its business portfoliosand also to set priorities as per distinct business divisions in a systematic way. Implementation ofthis matrix helps company to ascertain one of the strategy the most profitable one out of grow,hold and divest to adopt Product Life Cycle: This techniques supports R Robson to introduce new product in themarket. It determines the time period over which new product is to be developed, launched intothe market and remove eventually from market. It comprises four stages for a product i.e.introduction, growth, maturity and decline. It assists owners and top level management to takedecisions regarding various marketing strategies for each stage of product life cycle.

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