Planning for Growth Assignment - Crocus Limited
Added on 2020-11-12
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PLANNING FORGROWTH
INTRODUCTIONA systematic method in which plans are made which is important for any organization isknown as Planning. Planning for growth in business is a strategic activity which helps the firm tomake innovative ideas through which they can increase their revenue. This planning is a crucialprocess which also involves strategic planning as well. It also assists in organizing andcontrolling all the management. Present report will talk about key analysis for growth opportunities for Crocus.co.ukLimited. It will also help in evaluating the overall growth of organization by applying Ansoff’sgrowth vector matrix. This study will discuss about various sources of funding which isaccessible for them along with their advantages and disadvantages as well. It will design abusiness plan also which will include financial information and strategic objectives of the firmwith the explanation of exit or succession options.LO 1P1. Analysing key considerations for evaluating growth opportunities and justifying themCrocus.co.uk limited is an online retail shop of plants and gardening tools. It is situatedon Windlesham, Surrey in the UK. This is a small enterprise which has approx. 70-80 employeesin the organization. They are expanding their business by setting offline retail shops for theircustomers. As they have a good reputation and high customer rate, it is very important forCrocus to keep a hold on competitive environment for their employees. Their planning forgrowth should be effective which includes factors like, resources and capabilities as well as corecompetencies of the organization (Boddy and Hickman, 2014). For this, Crocus Limited canapply various analysis and models into their management system which can help them inunderstanding their market and competition that are already present in the industry. Forexample:, PETLE analysis, which is useful in identifying external environmental factors whichcan affect the organization, such as, political, economic, technological, etc. Other than this, theycan also use Porter’s Generic competitive strategies, which is useful in planning these models areexplained as below:PESTLE Analysis: This is a process which is very useful for Crocus Limited to identifyall external factors which can have a huge impact on their company while establishingretail shop in the market. Analysing all the elements that are present in this analysis will1
give many benefits in the expansion of their business successfully. All these factors areexplained as below:Political FactorsEconomic FactorsThis is the most important factor which has ahuge impact on any business such as:It is crucial for them to follow all therules and regulations in order to workeffectively like for example: properregistering of shop.Other factors include tax policies,employment laws, etc.These are the factors that have a huge impacton Crocus limited due to economic factors like:Inflation rate, increase in interest rate,etc.Social FactorsTechnological FactorsThese are the factors which are related topeople or customers on the basis of severalfactors like:Population in the region,Purchasing capabilities andpreferences,Factors based on age, gender, lifestyle,etc. (Bridge and Dodds, 2018).Technology plays an important in a business inhaving all the latest trends in company. It isessential for Crocus Limited to use the besttechnology for manufacturing of their products.For example:New and developed gardening tools,Improved soil, etc.Legal FactorsEnvironmental FactorsThere are various laws and regulations that aremandatory for them to implement in theirsystem in order to work effectively such as:For example: labor law has to beimplemented in the company.It is very important for Crocus Limited to makesure that they are not harming the environmentas this firm is working as a nursery store andso, it can have a huge impact on them like:They are working in a same field ofenvironment, so it becomes very crucialfor them to maintain it effectively.Porter’s Generic Competitive Strategies: It is a process which is helpful inunderstanding competitors that are present in the market. This strategy will help Crocus2
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