Planning for Growth - Assignment PDF

PLANNING FOR GROWTH

CONTENTS
INTRODUCTION.......................................................................................................................................1
TASK – 1....................................................................................................................................................2
P1 Investigating key considerations for evaluating growth opportunities................................................2
P2 Evaluating the opportunities of growth using Ansoff’s growth vector matrix....................................3
TASK – 2....................................................................................................................................................5
P3 Judging the potential source of funding accessible to business with its benefits and drawbacks........5
TASK – 3....................................................................................................................................................6
P4 Business plan for growth....................................................................................................................6
TASK – 4....................................................................................................................................................9
P5 Evaluating the exit or succession options with benefits and drawbacks.............................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
The small and medium enterprise industry is quite assorted and significantly incudes
numerous businesses like a small a café, coffee shop, engineering firm, agriculture products etc.
these businesses can be performed by the companies on regional, international, local and national
level. For achieving success in business, the small and medium enterprise requires competencies
growth and human skills. Researchers have performed different studies in relation with the SMEs
and all clearly reflect that almost 50 percent of the Gross Domestic Product is contributed by this
sector and it is quite huge part. At the initial start of 2017, of all the private sectors, small
business accounted for 99.3perecent. In addition to this, the total employment in United
Kingdom by the SME sector is around 16.1 million which is almost 60% of all the private sector
employment (Burns, 2011). Moreover, the annual turnover of these firms was £1.9 trillion. The
Minster of Cabinet has also announced an ambitious new target in order to get more small and
medium businesses working on central government contracts. Further, in the year 2013-14, the
central government has also spent extraordinary £11.4 billion with small and medium-sized
businesses which offer employment opportunities to 250 or less employees. The government is
also planning to increase their spending by third till 2020.
Therefore, it can be attributed that SME sector has numerous growth opportunities that is
required to be rationalized for accomplishing the growth and prosperity in business.
Consequently, the main aim of the present research report is to offer an understanding about the
ways small and medium enterprises grow and develop. The writing will also focus on different
methods and tools for identifying the opportunities for growth in the market and will gaze on
options for fulfilling the same. In this regards, Vectair Holdings Company a leading SME of UK
will be taken into account. The company deals in the manufacturing of hygiene product and air
acre all around the nation and has its head office in Hampshire, UK. From past decades the firm
is into this business and has been successfully delivering sanitary solutions such as air
freshening, hand washing, odor control, scent marketing, sanitary disposal, air care, feminine
hygiene etc. The firm is planning to launch an ambitious business project which is both
demanding as well as rewarding. The firm searches the government projects from the contracts
finder has bid for operating a new café at Millennium Gallery and Weston Park Museum
(Museums Sheffield Cafe Operator, 2018). The contract will be for the period of 5 years. Thus,
the present research report will carry out strategic planning for the firm and analyze the
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considerations that should be taken into account while adopting the expansion process. A
business plan will also be developed for the selected growth options in the later part of the report.
TASK – 1
P1 Investigating key considerations for evaluating growth opportunities
Each and every business performs to achieve growth and to expand their business
activities in the national as well as international market. This is quite necessary for organizations
to sustain in the market for longer period of time. Vectair holding is a SME and this sector has
major contribution in the economy of UK (Blanchard, Oncken and Burrows, 2011). They have
achieved growth till date but want to expand their business to reach at different level. It is quite
necessary to evaluate the opportunities for growth in the present business environment. There are
various strategies through which long term growth as well as success can be scrutinized easily.
Numerous considerations must be considered at the time of choosing the growth options for the
firm and these are as follows:
 SWOT analysis – It is quite significant for the Vectair Holding to perform SWOT
analysis so as to have complete and precise picture of their major strength and weakness.
The major strength of the firm is their large base of customers and strong brand image in
the market. Further, the financial condition of the firm is also good. The present
opportunities in the market of UK will open a door for the firm and threats like
competition, financial crisis will later them and offer the company a base for formulating
strategies to overcome the same. The turnover of Vectair Holdings is high and this will
help in reaching the new market easily (Moore, 2014).
 Competitor analysis – With the help of conducting competitor analysis, the company can
analyze their probable competitors as well as their strategies. This can be performed by
five force analysis tool by Porter’s. There are numerous firms who are giving competition
to Vectair Holdings such as Wilson, Rentokil, Liberty Hygiene limited etc. A deep
knowledge in regards with these competitors will help the in formulating their strategies
and future actions.
 PESTEL analysis – Seeking help from this tool, the external business environment of the
firm can be analyzed. There are numerous political, economic, social, technological,
environmental and legal forces that influence the working of Vectair Holdings. The
political environment of UK is quite stable plus the government is also proactive. They
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