Planning for Growth

Planning for Growth

Table of content
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Key considerations for evaluating growth opportunities.................................................3
P2. Evaluate opportunities for growth by using Ansoff's growth vector matrix....................5
M1. Discuss the options for growth using a range of analytical framework..........................7
D1. Evaluate specific options and pathways for growth........................................................7
TASK 2............................................................................................................................................8
P3. Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks...............................................................................................................................8
M2. Evaluation of potential sources of funding and justification for adoption of an effective
source....................................................................................................................................10
D2. Critically evaluate potential sources of funding with justified argument for the adoption
of a particular source............................................................................................................10
TASK 3 & 4...................................................................................................................................11
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Planning refers to an activity and procedure of making plans and strategies to accomplish
desired aims and goals of an organisation. This act is important for each kind of company
because it assist in attain success and to fulfil consumers needs in effective manner (Akram and
et. al.,2016). In context of this written document, it consider Ella's Kitchen which makes organic
baby and toddler food and sold in supermarkets internationally. However they need to make
expansion in their market department by introducing new product like superfoods as a healthier
food product for baby. This assignment will discuss about various tools like PESTEL analysis
that could be utilise by the firm in context of find out the components that influence the
determination and plan of action of organisation to run its business in to marketplace. Moreover,
the report will define different sources of funds that can be utilise by firm to generate finance.
Finally, diverse ways will discuss through which company can accomplish growth in market.
TASK 1
P1. Key considerations for evaluating growth opportunities
The GE McKinsey Matrix is know as nine box matrix which is used as a strategic tool for
making business growth plan for the organisation. A business portfolio is set of business that
make up a company and these small business refers as a strategic business units ( SBUs). The
business plan are complex in nature and required deep knowledge of growing market and
appropriate strategies to enhance and grow its business from time to time (Sreedhar and et.
al.,2015). With the reference of Ella Kitchen, the top-levels management make business plan to
grow in present as well as coming years in market.
The GE McKinsey is used to analyse the small business units so that they make sound
investment decision-making. In this matrix, the attractiveness of market are presented on the y-
axis and small business units on X-axis. The results of the matrix is stated as that there are three
options available for grow of organisation (Smiley and et. al.,2015).
GROW OPTION: Here, company should invest in small business units as there are in
the grow stage. In the context of Ella kitchen, if company falls in the grow options them they
should invest in such business for further growth in the target marketplace. All the organisation
who are within this category, attract investment by organisation as the results they will bring

more returns on investment in the future. Here company can invest in the research and
development to study the market and capture the most profitable segment in the marketplace.
HOLD option: Under this option, business of the organisation is a unclear whether their
will grow in future or not (Qadri and et. al., 2015). Here further investment can be done after the
results of grow investment is seen in the business units by the companies. Under this stages ,
investment is done after putting the growth investment.
HARVEST option: Here investment is made to continue the business operation and
expanded its business in the different marketplace. Any poor performance of any business units
are eliminated and exist the market so that new entry of another business can be possible in the
marketplace (Pamuk and et. al.,2017). Company wants to invest into its business then it needs to
harvest by providing little investment and if it wants to expand its operation then it expand it
business by investing more in the activities.
PESTEL Analysis : A PESTLE analysis is used as a tool for identifying, analysing
macro-environment factor and see their impact performance and growth of organisation in
current as well as in future conditions. In context of Ella's kitchen, company uses this
framework as analytical tool to evaluate key element which can impact strategies for growth of
company in long run.
Political factors: Under this factor, it include tax policies, trade tariffs and fiscal policy
and etc, which influence the business decision of the company (Myronycheva and et. al., 2018).
As Ella kitchen operates at global levels and have to follow different government influence its
activities. For example, government can impose new tax which will generates new structure for
collecting revenues for the country.
Economic factor: Under this conditions, it include changes like exchange rate, interest
rates, inflation rate which have a huge impact on the purchasing power of the consumers and
change the demand and supply of the market conditions.
Social factor: here general environment represents the geographical characteristics,
culture and value which can impact on the growth of the company (Mize and et. al., 2015). As
Ella Kitchen, operates main-ling for baby product and services so it attract more child business
instead of capturing overall business unit present in the organisation.
Technological factors: It is important factor at present as new technologies keeps
approaches to the market. Ella Company make best use of advance technology to produce

goods and services& they can find the new way to distributes such goods in to target market.
Technology helps in reaching out to most people and communicated to larger number of
audience in target segment. This factor also help in examining weather to enter or not in the
particular marketplace
Environment factors: This factor is very important due to ever-increasing scarcity of raw
material which has impact on the production of the Ella kitchen. this factor also include the
weather ,climates which keeps on changing the requirement of the Ella kitchen from time to time
and business ethics and every company have different code of conduct (Maghfiroh, Subchan
and Iqbal, 2017). Company is working in the complex environment which can lead to difficult in
changing and adoring new approaches in management team.
Legal factors- The are various different rule and regulation which are to be taken into
consideration while performing business activities in the organisation . It include laws like
consumer protection law, health and safety,intellectual property and domestic trade regulation
and companies have to follow such law to enhance its production in the market and take
competitive advantages (Light, Wang and Gomez-Lobo, 2017). The company should follows
such laws so that business can be performed in legal regulation and save from paying extract
money to the concern law department.
P2. Evaluate opportunities for growth by using Ansoff's growth vector matrix
Ansoff matrix
It was established by Russian American Igor Ansoff in 1957, is a tool to identify, analyse
and plan their scheme for growth and it is also called market/ product expansion grid. This
matrix help leader and administrator to understand the risk of growth and development for longer
survival in the market.(Baral, 2015). Here the manager of an Ella's kitchen develops the
opportunity to increase the sales and revenues by using various methods of ansoff strategies
which can be described below.
Market penetration strategy- This process develops the idea of selling more existing
services or products to existing customers. The main objective of this is to maintain or increase
the market share of current goods and for this firm includes various ways of advertising,
personal selling, loyalty scheme and sales publicity.

Advantage- The benefits of market penetration is that it may create a customer referral
because the product contains similar quality with cheap price which attracts the customers to
purchase that product even in the competing market.
Disadvantage- the main drawback of market penetration is that a company cannot use the
low pricing strategy for a long period because at one point it faces the loss.
Product development - It is the process where a company have a good market share in
existing market and introduce the new products for growth. This emphasis more on innovation
and research & development for being first into the market to its specific customers (Kuzmanic,
2017). Therefore, in this situation the major strength is developing new product to attract the
existing one and drawback is that contains more risk in increasing the market share.
Advantage- The benefit of product development is that it develops a tradition of
innovation.
Disadvantage- The major drawback of product development is that after many hours
spend on testing there is a risk of failing the product.
Market development stage – In this, firm create or add new geographical area or market
segments for selling the existing products. For achieving this strategy, firms includes – good
packaging, different rate policies to attract new area customers, exports goods and services,
established new distribution channel etc. This is riskier process because an organisation faces
many difficulties to understand the new markets for their current offerings (Kirshin, 2018). The
key marketing mix 'P' of this is place where company wants to promotes their product lines by
using different channels.
Advantages- The benefits of market development is increased revenue, attracts new
customers for the existing offerings.
Disadvantage- the barrier that comes in market development is entering into the new
market is always create risk a of failure.
Diversification – This is the final and last strategy of Ansoff matrix where an association
innovate new product and introduce it in new market. It is more risky since it introduce brand-
new product for the new market which is referred to 'suicide cell' for every business. There are
two types of diversification i.e. related and unrelated (Barber, Metcalfe and Porteous, 2016).
When the industry remains familiar to customers is called related and if the firms is different and
no relation with old commercial enterprise than it is called unrelated. For example- Ella's kitchen