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Planning for Growth Assignment : Ansoff

   

Added on  2021-01-01

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PLANNING FOR GROWTH

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1LO 1.................................................................................................................................................1P1 Key considerations for evaluating growth opportunities..................................................1P2 Evaluating opportunities for growth applying Ansoff’s growth vector matrix................3LO 2.................................................................................................................................................4P3 Potential sources of funding available to businesses .......................................................4LO 3.................................................................................................................................................5P4 Business plan for growth that includes financial information and strategic objectives...5LO 4.................................................................................................................................................7P5 Exit or succession options for the small business.............................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONGrowth and development play significant role in analysing the cash flow and developingplans for expanding any organization's operation. To become successful it is necessary forbusiness to remain attractive and profitable (Floyd 2015). Ansoff is software company which iscurrently operating in UK, it aims at providing valuable services to clients. Organisation has 70engineers that working on developing network of software which run on internet. Present report will talk about the planning of Ansoff company. For this it will explainvarious analysis, such as, Porter generic model, PESTLE analysis and Ansoff Matrix. This reportwill also explain about funding options that is available for the firm in planning. A business planwill also be developed for Ansoff . And in the last section of this assessment, different exit orsuccession options will be discussed. MAIN BODYLO 1P1 Key considerations for evaluating growth opportunitiesBusiness growth opportunity is defined as increase in sale or business operation in orderto get maximum benefit out of it (Wu, 2015). Some important factor to be considered whileevaluating growth opportunity for Ansoff are as follows.Potential for growth : Ansoff is required to critically evaluate the business opportunityand identify its viability. It is important to identify the present cultural trend for expandingbusiness and making it profitable. Business has detailed plan for turnover and expenses which isrequired for calculating profits and loss. For the evaluation of appropriate growth opportunities,various methods can be applied by the company, such as;Porter Generic Strategic Model: This strategy helps in gaining competitive advantagefor the organization. There are basically three different elements that is included in thisstrategy, such as,Porter Generic Strategic ModelCost LeadershipDifferentiationThis process helps in focusing on thecost of the product respectively. Focus is on becoming the lowest-costIn this, Ansoff can focus on theirproduct by making them different andunique from their competitors. 1

producer in industry. This helps in increasing their sales. Focus: This is also one of the most important factor which can be considered by them. Thereare two elements that is present in this, i.e.,Cost Focus: In which they focus on the cost of the products.Differentiation Focus: And in this, the focus on the uniqueness of the product by makingit in different style. From all the mentioned factors, cost leadership will be a very useful for the organizationif they introduce their services at a low prices in the market as this will help in increasing theircustomers rate and profitability as well. Furthermore, through cost leadership technique thecompany will be able to make profits as by applying cost leadership theory they would take theiroperations effectively. PESTLE Analysis: This process helps in identifying all teh external environmentalfactors which can affect their business. There are basically six factors that is included inthis, which is explained below:PoliticalThis is the degree a government intervenes in the business of anorganization.Ansoff has to follow all the rules and regulations that are mandatoryfor them to follow.The political stability will help the company to run their operationseffectively, on the other hand, political instability will ast as a threatfor the company as they won't be able to continue their businessoperations. EconomicalEconomic factors have a significant impact on how an organization.There are various economic factors, such as, interest rate control,taxation policy, etc. which can affect their business activity. If the country has strong ecomomic condition then it would anopportunity for the company to expand their business operations ,0on the flip side if the country is facing the economic recession thenit would a threat for the company to expand their business2

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