Planning for Growth

Planning for growth
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key considerations for evaluation of growth opportunities...................................................3
P2 Evaluation of opportunities for growth using competitive advantage and Ansoff’s Matrix.. 5
TASK 2............................................................................................................................................8
P3 Evaluation of different sources of funding.............................................................................8
TASK 3..........................................................................................................................................10
P4 Business plan for strategic growth.......................................................................................10
TASK 4..........................................................................................................................................13
P5 Evaluation of exit or succession options..............................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Planning for growth is the managerial process which involves evaluation of external
business environment to determine opportunities for maximising revenue and sales by making
investments into financial and other resources for upscaling and upgrading (Mazzarol, Reboud
and Soutar, 2009). Society Café is a small business organisation which was incorporated in the
year 2011 and the company has its headquarters at Oxford, Oxfordshire (Society Café Company
Profile, 2019). In the following report, different considerations for evaluation of growth
opportunities for SMEs are being analysed along with the critical evaluation of different sources
of funds. The report also determine the business plan for product development by the
management of Society Café and highlights the important financial information. At last, the
report evaluates the different exit or succession strategy available for the owners of small and
medium business organisations.
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TASK 1
P1 Key considerations for evaluation of growth opportunities.
In the generation of today’s competitive business environment where production and
manufacturing activities at increasing exponentially, it becomes imperative for every business
organisation to constantly conduct market research and identify the opportunities for business
growth and development to maintain the competitiveness and derive sustainable business
performance in the long-term. Some of the major considerations for evaluating different
opportunities for business growth for management of Society Café are being analysed as follows:
Resources: Considering a growth opportunity for any organisation requires an essential
consideration of the existing and the required resources as well that play the role of building
blocks in the growth of a venture. Importance of considering resources for growth opportunities
intensifies in the case of small and medium business organisation such as Society Café since
these companies have limited financial and physical resources (Lockett and Wright, 2005).
Hence, the management of Society Café should determine the existing resources of the company
and the desired level of resources for growth opportunity and whether these resources are
accessible to the organisation.
Competencies: It can be termed as the strength of a business organisation which
determines its ability to deliver exceptional value to the consumers. Every company has a
unique selling proposition which provides strength to the organisation and acts as the core
competency. Evaluation of core competencies is important for the management of Society Café
to evaluate any growth opportunity and identify the manner in which core competency of the
organisation can intensify or increase the potential of growth opportunity.
PESTLE Analysis:
It is framework of strategic management that is implemented to analyse the impact and
influence of external environment changes on the internal decision-making and operations
(Perera, 2017). The management of Society Café should analyse and consider the following
external factors for evaluation of growth opportunities:
Political Factors: It includes factors such as government intervention and policies,
stability in a business territory etcetera. For considering any growth opportunity, the
management of Society Café needs to consider it with the political dimension to determine
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