Planning for Growth: Strategies and Funding Options for Davison Canner SME

Planning for Growth
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
TASK 2..........................................................................................................................................10
Business plan.............................................................................................................................10
TASK 3..........................................................................................................................................15
Discuss about the exit or succession options for Davison Canner SME, Also describing the
advantage and disadvantages of each option.............................................................................15
CONCLUSION..............................................................................................................................19
REFERNECES..............................................................................................................................21
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INTRODUCTION
Planning for growth is a process in which company undertakes various activities through
which it can develop suitable and effective planning for the growth of organisation. This
involves identifying and understanding impact of several internal and external environmental
factors and analysing various considerations while planning the growth for the organisation. this
planning is very important for the company as this guide and provide direction to the company
regarding what next step they need to take in order to achieve the objectives for the growth.
Concerned with planning for growth company can also utilise the developed theories and
strategies for the purpose of growth of the organisation. This report is based on planning for
growth for Davison Canner. The organisation and company is leading producers and innovators
of the fruits. Company started their business as fruit producers but later on their product range
kept increasing and now the company also provide jams, curds, sauces and several other
processed products. This report will discuss about company and their planning for growth
including different strategies available for growth, and potential sources of funding that can be
utilised for growth and later exit and succession options will also be discussed.
TASK 1
Key Considerations for
Evaluating Growth
Opportunities
Ansoff’s growth vector matrix
Sources of Funding With Its Benefits
and Drawbacks
Resource and capabilities
and Core Competencies
This is one of the key factor
for the success of the
company in their growth.
While evaluating growth it is
important to consider
resource and capabilities
Growth matrix of Ansoff provides
some of the strategies that can be
utilised by the organisations to
implement while they are planning
for growth. The growth matrix
involve four different types of
strategies that are based on new
and existing product and market
that company will consider in their
Banks
This aspect of raising
or collecting funds
will help the sources
that are major so that
whenever they need
or require money for
coping up with the
level of expansion or
Benefits
Davison Canner can
easily avail the benefit
of getting the loan in a
personalized manner.
Also it is helpful and
reasonable to the
business because the
rate of interest can be
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required for implementing
the opportunities. Along
with this core competencies
and their evaluation is also
important as they allow for
strategic benefits and
competitive advantage to
Davison Canner.
growth. start up their plan
they can consider it.
It is considered as
one of the safest
method that is why
everyone trusts this
aspect. Davison
Canner can engage in
a meeting with bank
so that they can
decide the form of
repayment with the
rate of interest
charged on it.
bared by them.
The schedule that is
fixed for payment is
done with a mutual
understanding
Market Penetration
Company when intends to
expand their sell and profit without
developing product and market in
such case company utilise and
implement this strategy for growth.
This means that company without
developing new market and
product, focuses on existing
product and market. This means
company undertake practices
through which organisation can
increase its sell and profit through
existing market. In order to do this,
Drawback
The aspect of
foreclosure for loan
turns out to be a bit
expensive for the
company.
EMI that is charged is
not fixed it varies on
the power of the
economy if the
economy of the
country is strong then
it will be difficult for
them to cope up with
it.
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companies often utilise effective
marketing planning. This is also
suitable to increase product cycle
of the organisation. This means
with help of effective marketing
company increases its sell and
profit and also extend product
cycle.
Innovation
This is another important
element and factor to
consider while implementing
and evaluating growth
opportunities. Innovation
plays key role in success of
the organisation and this is
why innovation capabilities
of the organisation is very
important to be considered
by the Davison Canner.
Financial Institution
Many of the
companies such as
Davison Canner
considers this method
also when they want
to collect funds so
that they can cope up
with the changing
needs of market.
Financial institution
are also trustworthy
as many of them such
as Barclays have
been successful in
establishing their
base so that they can
earn the trust of
people and cater to
the needs of business.
It is believed that
they provide better
schemes and
packages of loan in
comparison with
bank. This can be
helpful to the
business.
Benefits
Better schemes are
provided if compared
with bank.
People also trusts on
this aspect to collect
funds for their
development needs.
The processing of
finance is faster in
comparison with the
bank.
Drawbacks
Sources of finance are
turned out to be
expensive.
Various types of
documents and
formalities are
collected in the form
of collection of loan.
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