Planning For Growth.

Planning For Growth

INTRODUCTION
Planning for growth is a strategic business tool that assist in tracing growth of the
business so which plans may be prepared that will help the business in expansion in efficient way
(Aganbegyan, 2019). This assist the company to use their resources ion efficient manner and
allot them to each an d every activity so as to get competitive edge in the market and capture
huge customers in the target market. Under this report Sollatek company is taken which is a
manufacture of voltage protection products, telecom power solutions, electronic refrigerator
controllers, solar products etc. which are friendly to use by the customer and easily available in
the market. Now the company is planning to open a factory outlet in Birmingham so that to
create erase for the customers to buy their products and to capture more customers to serve. This
report explains the ways in which the company can grow in the market as in respect to the
strategies adopted and sources to acquire funds for expansion. Further a business plan is made as
along with the options to succession ion the market.
TASK 1
P1
For the purpose of determining the opportunities that are prevailing in the market in order
to grow and expand their operations. To enhance revenue, numerous strategies may be adopted
by businesses to have competitive advantage. Following strategies can be used by Sollatek so as
for their expansion:
Porter's generic model:
Cost leadership: This is the strategy by which businesses take lower prices from the
customer on product offerings as to be known as producer with lowest cost. The increase in sales
can be seen due to low prices which lead to high profit earning. Sollatek may use this approach
by supplying their power control, saving of energy, temperature control and solar energy
products on cheaper prices and providing other services which are cost efficient, this lead them
to enhance their sales (Austin, 2016).
Differentiation: By this strategy enterprise enhance their sales as by manufacturing
unique products or delivering attractive service in comparison to the rivals. For example,
Sollatek by manufacturing other solar equipment and by providing easy availability of their
products to the customer in order to get more customer satisfaction and higher sales.

Cost focus: Under this strategy a specific market is aimed and offered with lowest cost
services and product in order to attract customer from target market. With the help of this
strategy Sollatek can offer energy saving products in their target market such as in Australia so
that to attract customer in the niche market and enhance sales (Capello and Nijkamp, 2019).
Differentiation focus: With the help of this strategy lowest prices are offered for a
product or service in the niche market so as to get competitive advantage. Sollatek can use this
approach in the target market so that to differentiate them in market as unique manufacturer of
temperature control equipment’s this help them to increase their market share and goodwill.
From the above analysis this can be evaluated that Sollatek may opt for cost
differentiation so as to achieve high revenue in offering of their products and provide easy
availability to the products.
PESTLE analysis:
This is strategic tool that is helpful in examining macro environmental factors which
influence working performance of a business in order to implement strategies which assist in
handling negative impact on business situation. These factors are explained below:
Political factors: These are the factors which are related to rules and regulations of the
country such as tax policies, tariffs of trade etc. UK is a politically steady country that means any
major change in country's regulation is not recurrent. This will assist Sollatek in expansion of
their business among the current rules of the country. The company may expand their business
without any hurdle in the market by opening new factory outlets and business outlet to provide
extra convenience to the customers.
Economic factors: These factors are associated with the economical conditions of the
nation such as purchasing power of customer, international exchange rate fluctuation, GDP rates,
rate of unemployment etc. UK is having stabilised economic condition so that it has high
purchasing power of population that means tendency to but quality products is higher over there
which are offered by Sollatek (Davies, 2017). This assist the company in enhancing their sale
and profit as well.
Social factors: These factors are related to the living people in a country on the basis of
demographic area, cultures, shared values, belief, gender, income etc. In UK as living standard of
people is higher and they prefer equipments which are environment friendly so Sollatek can
supply their solar products and low voltage product over there so that to generate high value for