Planning For Growth Assignment Solution (Doc)
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Planning For Growth
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Analyse key considerations for evaluating growth opportunities ....................................3P2 Apply Ansoff's matrix to evaluate opportunities for growth............................................7TASK 2..........................................................................................................................................12P3 Assessment of potential source of funding along with there benefits and drawbacks....12TASK 3..........................................................................................................................................13P4. Designing a business plan for growth............................................................................13P5 Various exit or succession options which are available for small business organisation.20CONCLUSION..............................................................................................................................23REFERENCES..............................................................................................................................24
INTRODUCTIONPlanning for growth has critical role within small as well as medium enterprises forexpanding their business through which they can acquire high profitability. It is essential for topmanagement to carry out market research to give information related with various marketopportunities thereby leads alterations within system (Zheng and et. al., 2013). This report isbased on Bucovina Cash and Carry which is small organisation with less than 10 employees.They were a shop then expanded into a wholesale and finally to a restaurant. This reportcomprises of porter's generic, Pestle analysis and Ansoff's matrix for examining growthopportunities. Along this, succession and exit options for small business are also assess bybusiness person which is described in the report. TASK 1P1 Analyse key considerations for evaluating growth opportunities Small and medium organisations have higher possibilities to expand their business andmarket by which they can enhance their revenue as well as sales volume. It is crucial forexecutives to possess information related with different aspects by which they can make use ofopportunities for for growth (Wasim, 2014). Porter's generic strategies as well as PESTLEanalysis has bee used by Bucovina Cash and Carry for gaining competitive edge within a market.Competitive advantage: Each sector posses large number of organisations, they can beeither small, medium or large. Therefore, it is essential for an organisation to design their systemwith respect to conditions which are prevailing within market. Apart from this, they need toimplement their business activities by the use of specific position within market. Executives ofBucovina Cash and Carry must formulate strategies to gain competitive edge over their rivalfirms through which they can attract more number of customers towards services which arebeing provided by them. For this, they have been making use of Porter's Generic model, this hasbeen elaborated beneath with respect to Bucovina Cash and Carry.Resources: They deals with wholesale of fruits and vegetables along with this at presentscenario they are opening a restaurant. Apart from this, they possess highly qualified staffwho is responsible for rendering enhanced services. Capabilities: They furnish their services at affordable prices which will aid them to havemore number of customers along with retain their employees.
Corecompetencies: They make use of fresh fruits as well as vegetables while bakingtheir dishes which enables them to provide their customers with unique taste. This acts asa strong factor which provides them competitive vantage in market. Porter's Generic Model: This describes how a organisation can attain competitivevantage across their selected market. It is given by Michael Porter who was a economicresearcher, as per them organisation need to possess competitive behaviour by which they can besuccessful within market. This concept has been utilised by Bucovina Cash and Carry forsustaining in the market as well as furnish long term benefits to their customers. The major fourtactics which have been used by executives are illustrated below:Cost leadership: Bucovina Cash and Carry store is creating an impact on buyers byoffering services at low prices, these prices are being offered by them on regular prices so thatthey can acquire more number of customers (Van Oort, 2017). The products as well as serviceswhich are being furnished by Bucovina Cash and Carry are at cheaper rate as compared to theircompetitors but they make sure that their quality is not hampered. Organisation source theirproducts from suppliers at low cost which makes them to provide goods at low prices therebythey can earn profit at low margin. Volumes which are served by them assists them to maintaincontinuous market as well as expand their market shares. Differentiation: This is the other strategy which is being used Bucovina Cash and Carryfor attracting more customers by providing creative as well as unique services and products. Inthis case, executives need to bring alteration within their existing system and execute innovativetechnologies by which they are able to furnish high quality services to buyers. Management ofBucovina Cash and Carry needs to create brand recognition for this they need to ensure that theyprovide the unique services like they can provide their customers with all vegetables throughoutthe year as well as if any customer make demand for any specific product then they can provideit at as soon as possible. They need to provide them at reasonable prices so that they can havestrong customer base. Focus: This is key tactic which has been used by organisation in which they aims atspecific segment through which they can acquire more customers for enhancing profitability aswell as sales. The goal of executives of Bucovina Cash and Carry is to render services by whichdemands of people can be accomplished. This further comprises of two strategies, they are:
Cost focus: This assists organisations to to identify advantage associated with cost withintarget market. For this, Bucovina Cash and Carry can carry out promotionaladvertisements and inform people about services and products which are being offered bythem. This assist them to captivate more number of customers to purchase there products.Differentiation focus: It is other strategy which will facilitate Bucovina Cash and Carryto chose a market segment, through which they can render unique services (Stroud,2012). This assist them to provide quality products and compete with other organisationswithin market.Bucovina Cash and Carry can make use of cost leadership strategy for gaining attentionof large number of people and influence them so that they can opt for their products. So they canfocus on customers who need to healthy diets at affordable prices. PESTLE AnalysisThis is a framework that is used by companies in order to derive wholesome knowledgeof the impact of macro environmental factors upon the functioning and procedures of business(Seto and et. al., 2014). In this regard, the management team of Bucovina Cash and Carry hasmade use of this analysis to effectively find out the influence and deal with the adversities in anoptimum manner. On the basis of this analysis, the strategic and growth choices are made by theentity to feasibly encounter growth in near future. Thus, the PESTLE framework applied toBucovina Cash and Carry is presented as follows:-POLITICAL FACTORSThis comprises of the aspects associated with the government and political systems of anation. In this regard, the political system of United Kingdom is strong and stable which presentsopportunities for entity such as Bucovina Cash and Carry to effectively carry out its operations ina feasible manner. By gaining knowledge of policies and procedures existing within the nation,the company can adopt and conduct operations that do not breach any of the regulations andthereby gain acceptance from people as well as government. However, it has also been analysedthat the occurrence of terrorist attack or political instability within the country can pose threat tothe existence and sustainability of this SME within UK.ECONOMICAL FACTORSThe strong economic conditions of UK present opportunities for entities like BucovinaCash and Carry to tap advantage of the exceptional infrastructural, communication,
transportation, logistics, supply chain and other facilities within the nation and significantlyenhance the current market share (Seltzer, 2013). However, the economy of this nation iscurrently affected by BREXIT which has caused a number of fluctuations within the corporateworld. The price of pound has fallen within the nation leading to recession and loweredpurchasing power of buyers. This tends to create threat for the entity and to deal with this, theyneed to offer products at relatively lower prices so that people can easily afford it.SOCIAL FACTORSThe increasing changes taking places within the cultures and lifestyles of people tend tocreate both opportunities as well as threats. The opportunity in this regard is that Bucovina Cashand Carry can offer products to customers in market place as per the latest trends and preferencesof people. This helps the entity in gaining satisfaction from people, thereby enhancing its profitsas well as sales. However, the identification of a consumer trend by a rival firm before BucovinaCash and Carry can create risk for the organisation and result in decline of its market share andcustomer base.TECHNOLOGICAL FACTORSA number of advancements keep on taking place in the corporate world resulting ingeneration of lucrative opportunities for companies such as Bucovina Cash and Carry. Thus, bymaking use of the latest trends and technologies, Bucovina Cash and Carry aim at gaining theattention of people and satisfying their needs and wants so as to retain them for a long durationof time in future (Ravetz, 2013). However, presence of rivals in market may create difficultiesfor the respective organisation as they also possess the resources as well as the capability tomake use of such technologies.ENVIRONMENTAL FACTORSIn today's era, it is imperative for an organisation to adopt eco-friendly techniques inorder to gain the attention of people and make the image in the eyes of customer as anenvironmental friendly entity. In this regard, Bucovina Cash and Carry fosters sustainabledevelopment and adopts the 3R's in order to give significant contribution to environment as wellas society.LEGAL FACTORSBucovina Cash and Carry abides by all the stipulated laws and regulations in order toensure avoid getting indulged in negative consequences as it hampers the image and stake of
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