Planning for Growth.

Planning for Growth

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
P1: Key considerations for evaluation the growth opportunities......................................................3
P2 Evaluation of growth opportunities by applying Ansoff's growth matrix......................................6
TASK 2....................................................................................................................................................7
P3 Potential sources of funding and their advantages and disadvantages........................................7
TASK 3....................................................................................................................................................9
P4 Designing business plan for growth of organisation.....................................................................9
TASK 4..................................................................................................................................................10
P5: Succession and exit plan for small business with its advantage and disadvantage...................10
CONCLUSION.......................................................................................................................................12
REFERENCES........................................................................................................................................13

INTRODUCTION
Planning for growth refers to a process that supports organisation in identifying current
competencies and enables management to make relevant changes in order to enhance
business operations. The growth and success of business are very much depend on the
management who reviewing the business growth and continue to make suitable changes in
their strategic plans so as to meet market needs and requirements. The present assignment is
based on new business named as Ocean Crest which is engaged in beauty and skin care
industry offering wide range of cosmetic products. The project includes the various growth
opportunities that assist firm to achieve growth by making contract with Primary care
Provider Development and Resilience in London. Sources of funds, exit and succession of
business are also briefly explained under this report.
TASK 1
P1: Key considerations for evaluation the growth opportunities
Ocean Crest is a medium sized business based on UK which deals in offering wide
range of cosmetic and skin care products. Due to engaging in cosmetic industry, the chance
of achieving growth and expansion of business are more by developing brand portfolio
through bring innovation in existing products. Nowadays, the people are more conscious
about their skin health due to which they start to prevent usage of beauty products which
contains harmful chemical products. This will increases the chances of shifting customers
towards organic or skin friendly products. This will encourage Ocean Crest to provide
something innovative for meeting the needs of targeted people which indirectly support them
in achieving growth (Barbour and Deakin, 2012).
By observing and analysing the customers’ needs and preferences, the firm called as
Ocean Crest is decided to provide a range of beauty and skin care products which contains
biota-protective actives which promotes skin’s own defence mechanisms and support
biodiversity and homeostasis and biogenetic technologies. In the UK, cosmetic industry is
worther of 11.2 million pound and saturated with any rivals brands. In addition with this,
colour cosmetics constitute over 16% and facial make up captures 42% in cosmetic and skin
care sector. Therefore, the company’s offerings supports to achieve brand name as well as
the huge profits that will make easy for company to meet the demands of contractor as well
as customers. But before deciding to enter into market with skin care products, Ocean Crest
should analyse the internal as well as external environment which can affect their pre-

determined plans and strategies either in negative or positive manner. For this, the
management is held responsible to analyse such influencing factors with the help of adoption
different models which are determined as under:
Porter Generic Model
This model will guide Ocean Crest to make relevant changes in their operating
process according to the competitive strategies of its rivals present in market. Such model
involves three interrelated concepts among which the company can choose any one according
to their reliability and objectives (Barnett, 2017).
Cost leadership: This is the strategy which directs Ocean Crest to maintain their cost
while selling its quality products and services. It makes easy for company to attract maximum
number of customers due to providing quality products at relative lower than their rivals in
market. It can be possible due to cutting down the production cost, labour cost etc.
Differentiation: Using such strategy assist company to achieve its own identity in
terms of its products than their rivals in market which can be possible through introducing
something innovative in their products. It brings their products far ahead than their rivals
substitute products. For this, Ocean Crest should conduct market research in order to identify
which innovative things they can add in their products which can easily attracts buying
behaviour of targeted people (Christofakis and Papadaskalopoulos, 2011).
Focus Strategy: This kind of strategy mainly focuses on narrowing scope of rivalry
within the selected industry through market segmentation. It is useful to identify and analyse
niche market targeted people for company’s offerings. It is classified into two parts:
Cost focus: The main motive of this strategy is to achieve cost advantage by analyse
and differences in cost behaviours in its niche targeted people. In this, the company put their
efforts in offering quality products at reasonable price to focused market.
Differentiation focus: Under this, the products have been differentiated by providing
innovative and unique products and services than their rivals’ offerings.
Ocean Crest which is going to start its new venture through entering into new contract
with Primary Care Provider Development and Resilience in London which support them for
better functioning. Due to this differentiation strategy is most suitable one for the company to
adopt and follow. As it is engaged in cosmetic industry where the possibilities of introducing