LO1 1 Key consideration for Growth options

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
Key consideration for Growth options ........................................................................................1
LO 2.................................................................................................................................................5
Assessment of the various ways in which organizations have access to finance and when
various types of funding must be used.........................................................................................5
LO 3.................................................................................................................................................7
Design a business plan for knowledge and understanding of Growth.........................................7
LO 4.................................................................................................................................................9
Exit or succession options for a small business...........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Small business owners usually write plans that describe their business ideas. The business
plan contains information about the company's organizational structure, estimated income,
funding needs, and other relevant information. While a business plan outlines the initial process
for small businesses, the growth plan focuses on new growth opportunities or expanding
businesses. Business owners make growth plans to evaluate business expansion and new growth
opportunities. This report shows the consideration for the growth of Vectair Holdings which is a
small medium business in Basingstoke, UK and is main objective is to manufacture new hygiene
products like lotions, hand soap etc. The company has a very good credit rating and most lenders
inside and outside the UK will be happy if they need financing. At present, they have a bank
overdraft for their £ 2.0 million loan, which they never used. It also shows the various types of
fundings which can be adopted by Vectair Holdings in order to expand and grow its business
around the world. This report covers the various types of analysis which can help the
organization to give a competition in the marketplace like Porter and Pestle analysis and the risks
occuring during the each step of planning the business for growth and how to mitigate those risks
with the help of proper marketing and planning strategies for evaluating growth opportunities by
applying Ansoff's Matrix Model.
LO1
Key consideration for Growth options
Competitive advantage
The basis of competitive advantage as a basis for growth: resources and capabilities and
core competencies. At a high level, the hygiene products industry is quite mature. Five Porter's
Strengths depends on whether we see the industry or the end user market. The green industry for
hygiene products is a variation of Five of Porter's strengths because this movement is still in the
phase of growth it represents possibility to position the company as a leader in this field. From
this it will help to get to know the difference between traditional and hygiene product industries
and the gap between industrial and consumer markets. One of the main thing that gives Vectair
Holdings a competitive advantage is high quality of their products and low price but their main
focus is quality of their products. This gives them a competitive advantage over their rivals.
As per Porters Generic Strategies company will chose differentiation focus method to grow and
increase their profitability above industries average as this porters generic strategies helps in
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determining whether companies profitability is above their industry average or below their
industry average.
Porter's generic strategies
The use of these strategies helps the company to achieve competitive advantage within its target
marketplace. There are generally two types of strategies that a company can use to grow their
business all around the world which are as follows:
Cost Leadership Strategy — This type of strategy is known for the industry who are producing
at low cost with a given quality. Vectair Holdings can sell its products at higher prices to get
ahead of their competition and to gain market share. The company can maintain its profitability
while their rival suffers losses. This strategy usually targets the bigger market and the industry
who are selling cheap products can be more profitable with good quality. Vectair holdings can
sell good quality products at reasonable rates as they are operating in selling hygiene products
which are preferred by health conscious customers and can fulfil their regular needs.
Differentiation strategy — This types of strategy is generally used for development of new
products which is critically valued through customers and based on the review of customers on
products can help in comparing the products of competitors. The price covered for developing
the unique product can be managed by selling the product at higher prices in the marketplace and
customers will be willing to pay for the product as the quality of product is unique and excellent.
The company can use differentiation strategy to gain competitive advantage as the customers
will get the new tastes and substitutes products easily and its cost effective also as they need
access to the scientific research. It will help the company to gain the reputation related to quality
and innovative products and make them unique from other rivals and can pursue greater
differentiation in the marketplace.
In general, the analysis of porter generic strategies shows that it is a market for industrial
products far more profitable than the consumer market. Vectair Holdings hygiene products
department faces several major competition which are in the marketplace.
Pestle analysis
This strategical and evaluation technique analyses the external environmental factors
which influences the organisation. The structure of PESTEL is one of the best operational and
planning approach for analysing the business situation and the possibility of growth in the new
business environment. PESTEL analysis is one of the most important tool which helps
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