Planning For Growth

This business report examines the growth strategies for Green Nursery, a small nursery in the UK. It analyzes the company's competitive position using Porter's generic strategies and PEST analysis. The report then applies Ansoff's matrix to evaluate growth opportunities and assesses potential funding sources. It also includes a business plan for growth and explores exit or succession options for the company.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 KAnalyse key considerations for evaluating growth opportunities..................................1
P2 Apply Ansoff's matrix to evaluate opportunities for growth............................................4
TASK 2............................................................................................................................................6
P3 Assess potential sources funding available to business....................................................6
TASK 3............................................................................................................................................7
P4 Design a business plan for growth ...................................................................................7
TASK 4............................................................................................................................................9
P5 Assess exit or succession options for small businesses.....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth is strategic business process which consists essential part in small
organisation. For this, it is businessperson's responsibility to identify growth options to make
changes in system utilising business opportunities and threats (Wu, 2011). Present report is based
on Green Nursery which is small company that sell plants, shrubs and trees to people. Company
is making bid of £200,000 in government contract that is “Provision of plants, shrubs and trees”.
This assignment specifies key considerations that are porter's generic, Ansoff's model and other
for evaluating growth opportunities.. For this, potential sources of funding are assessed by
management to arrange money for their firm. Business plan for growth, exit and succession
options are assessed by small business which is mentioned in report.
TASK 1
P1 Key considerations for evaluating growth opportunities
Small and medium firms require to increase their customer base to enhance sales and
profitability. For this, top personnel conduct market survey to gain knowledge about different
growth opportunities. Along this, they even execute analysis in respect to competitive position
and external market conditions. Executive of Green Nursery uses porter's generic strategy to gain
knowledge about competitiveness of company. Besides this, PEST analysis technique can be
optimised to help them in formulation of strategies and design system in according to outside
factors.
Competitive analysis: This is an important element of corporate strategy which help top
authorities to analyse strengths and weaknesses of potential and present rival firms. It is essential
that opportunities and threats are acknowledged by top personnel (Keough, 2015). Green
Nursery is a small firm so entrepreneur require to have information about its competitive position
in marketplace. For this, Porter's generic strategy is used which is stated as below:
Porter's generic strategy: This model was developed by Michael Porter which define
competitive advantage to position higher in market. In order to understand distinct resources and
analyse competitive edge of organisation, this is more appropriate techniques that can be used by
company. Lower cost, differentiation and focus are key strategies which every enterprise have to
enhance their sales and revenue. Thus, here are applied different strategies in organisation so
executive can choose to enlarge business are stated below:
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 Cost leadership: This tactic is used by companies to enhance their market share by
becoming price sensitive, thereby deliver products and services at low rates. For this,
superiors require to design system for execution of production process effectively.
Business person has good botanical knowledge which help them to formulate pesticides
from waste material. This helps them to utilise money and produce quality plants and
shrubs. Thus, Green Nursery can sell products at reasonable rates to grab attention of
large number of people, thereby enhance sales and revenue. Differentiation: It is another strategy which firms uses to provide products and services
vary from competitor. This tactic define that buyers are not price conscious, while they
require to complete their needs. For this, execution responsibility is to use unique
resources and techniques which another brand is not able to copy (Grover, Bokalo and
Greenway, 2014). Owner of Green Nursery has Botanical knowledge which help them to
make invention in trees, plant and shrubs by using hybridisation process. Company
provide hybrid products which help executive to attract customers easily. Along this,
organic plants are provided which benefits firm to differentiate from rivals.
 Focus: It is appropriate tactic for small firms which require to confront from competition
with big enterprises. It is a tactic which is used by executive which are conducting
business in niche market which consists narrow competitive scope. For this, particular
segment or group of section in their sector is selected to provide items and services at
different of rivals. Thus, these are two types of focus tactics which are:
Cost Focus: This strategy is used by firm to establish cost advantage in selected target
segment. For this, products at affordable price are provided by executive of Green Nursery which
help them to attract and convince customers easily.
Differentiation Focus: It is another strategy which is adopted by companies to provide
products and services vary than rival firms. For this, business person of Green Nursery uses
different techniques for producing hybrid plants. Thus, this help them to provide products in
according to needs of buyers.
From the above strategies, executive of Green Nursery can use cost leadership strategy to
construct brand image in market. Company's owner has Botanical knowledge which help in
usage of waste items in creation of pesticides (Beatley, 2014). Along this, different techniques
are used for maintaining fertility of soil and delivery of quality plants, shrubs and trees to people.
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Thus, company provide products at reasonable prices which benefit executive to influence
customers easily.
PEST Analysis: This technique is used by business person to gain information about
external factors influence on business. It is necessary that executive of Green Nursery have
knowledge about government regulations, economic conditions, public requirements and
technology affecting on business. This help them to design system and conduct business
activities for sustaining its position in market in respect to competitors. Thus, these are factors
which are assesed by business person of Green Nursery are stated below:
(Source: PEST Analysis, 2018)
Political factor: This component includes policies which are formulated by government
to regulate disciplined functioning of organisations. In UK, authorities have made flexible rules
to promote small firms. Business person of Green Nursery provide plant, shrub and trees which
contribute in keeping environment clean and healthy. Thus, in this authority supports by giving
them taxation rebate to promote business.
Economic factor: It is another element which comprises interest rate, growth, inflation,
exchange rate that differ from one country to another. UK is a developed nation which has good
growth rate and inflation condition in nation (Mason, 2015). People have good income which
make them ready to avail products and services to fulfil their demands and needs.
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Illustration 1: PEST Analysis

Social- Cultural factor: This component define that organisation require to provide
products and services in respect of needs and requirements of people. It is necessary that
management identify changing demographic that is requirements, preference and lifestyle of
public. This help them to make modification in items to satisfy demands of customers. In UK,
people purchase plant, shrubs and trees for decorating their home, building and company. This
benefits business person of Green Nursery to have good customer base to enhance sales and
profitability.
Technological factor: It is element specifies benefits technology have on functioning of
company. Small firms require proper utilisation of resources, for which executive need to use
appropriate technologies. Executive of Green Nursery uses digital technology that is social
media to communicate people about their products (Ying, Chaolin and Xiaojiang, 2014). Use of
renewable solvents, waste reduction, carbon footprint minimisation are factors which are
considered while adopting technologies. This help business person to deliver organic plant to
people.
P2 Apply Ansoff's matrix to evaluate opportunities for growth
Ansoff's growth vector matrix: This model was developed by Igor Ansoff through which
they have stated different corporate growth strategies. For this, current and potential market and
products are identified by business person to expand business to enhance sales and profitability.
Green Nursery is small firm which have outlet only in United Kingdom. For this, business
person uses Ansoff's matrix to select appropriate tactic of expansion. Thus, these are four
combinations which are part of this concept are described below:
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(Source: The Ansoff Model, 2017) Market penetration: This strategy is used by companies to make growth for increasing
market share. For this, existing items and services are re-advertise in current market
segment. Green Nursery is small firm which have less market reach, so executive uses
advertisement tools that are newspaper, online media etc. This help them to inform and
regain people attention towards their products. Market development: It is another part in which enterprise expansion plan is to increase
business in new market with help of existing items and services (Leigh and Blakely,
2016). Executive of Green Nursery have outlet in United Kingdom, so they require to
enlarge business and open branches in other cities or nation. This help them to enhance
sales volume by increasing market reach and customer base. Product development: This strategy define that firms require to provide innovative and
creative items in respect to changes of people's needs and requirements. For this, top
personnel of Green Nursery is responsible to develop new plants to attract people.
 Diversification: This tactic is adopted by company to increase business into other
segments. This help them to create new items for grabbing attention of large number of
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Illustration 2: Ansoff's Matrix

people in other marketplace. In this aspect, business person of Green Nursery can offer
organic plants and shrubs to enhance sales and revenue.
Thus, from the above market penetration tactic is more suitable technique that can be
adopted by top authority of Green Nursery. It is a small firm which has very less market reach,
for this business person require to advertise and promote to people about company and its
products. With help of digital technology, firm will be able to grab attention of large number of
people to enhance sales and revenue.
TASK 2
P3 Assess potential sources funding available to business
Every organisation require to have sufficient capital for executing business activities
effectively. Executive of small and medium firms have large growth opportunities to increase
market reach and customer base to enhance sales and revenue (Haaland and van den Bosch,
2015). For this, different funding sources are identified by them to select best one. Thus, these
are different funding sources which are stated as below:
Bank loan: This is famous and effective source of finance for companies which help
executive to take money for execution of business activities. Bank provide funds in three forms
that are short-term, medium and long term. Benefits: It is appropriate source for firms as top personnel didn't require to share and
provide control to them.
 Drawback: For taking loan from bank, business person require to do documentation
which consumes time and efforts. Besides this, they require to repay money on time
otherwise, company assets are sized by bank.
Crowd funding: It is another funding technique in which large number of people provide
small amount of money. In this, all individuals maintain connection via internet to make decision
about investment in firm. Benefits: This funding source help business person to enlarge business with help of
group of investors that help in providing additional money (Pothukuchi, 2015).
 Drawback: It is time consuming process, as all people first interact with each other
through internet to get information about company. Than, they make decision about
investment in business.
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Angel investors: This is another technique in which funding is provided by individuals
which have money and are ready to invest in business to get equity share. Benefits: It is beneficial for executive to get support of people who have business
knowledge. They provide them advice and guidance in respect to changes that require to
be made by management in system to provide creative and innovative products and
services to people.
 Drawback: This tool have demerit which is related with loss of control, as angle
investors have right to take part in decision making.
Thus, these are different funding sources which small firms have to utilise growth
opportunities and expand business. In respect of Green Nursery which has made bid in
government contract that is “Provision of plants, shrubs and trees” of £200,000. But, executive
have only £20,000 so remaining amount £180,000, they will take from bank loan and crowd
funding.
TASK 3
P4 Design a business plan for growth
Business plan is a formal statement which includes background of firm, business
objectives, vision and mission statement, situational analysis, financial information. This is a
written document which is formulated by top personnel to direct and provide information to
management, employees and other people about organisation.
Company overview: Green Nursery is small scale nursery which has headquarter in
Yorkshire, United Kingdom. Company provides variety of organic plant, shrub and trees to
customers. (Hess and Sorensen, 2015). Business person of Green Nursery is engaging firm in bid
process in government contract that is “Provision of plants, shrubs and trees” of £200,000. But,
executive have only £20,000 so remaining amount £180,000 they will take from bank loan and
crowdfunding.
Vision and Mission statement: Vision of Green Nursery is to provide organic plant and
shrubs to people to establish brand image in market. While, mission of Green Nursery is to
expand market reach to increase customer base and profitability.
Strategic objectives: Business person follows SMART tactic while formulating
objectives. It is necessary that goals are made in criteria that are specific, measurable, achievable,
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reliable and time bound. Thus, these are objectives which are formulated by executive of Green
Nursery stated below:
 Increase revenue by 10% by providing organic plant and shrubs to people within 1year. Expand business and open branches in other nation within next two years.
Products and services: Green Nursery company provide different types of plant, shrub
and trees to people. Hybridisation technique is used by business manager to provide hybrid and
organic products to people.
Situational analysis: Executive of Green Nursery conduct SWOT analysis to have
knowledge about strengths and weakness of system. Besides this, opportunities are assess by
them to expand business and convert threats into opportunity.
SWOT analysis of Green Nursery:
Strengths:
 Executive of Green Nursery uses digital technology that is social media and mobile to
inform and maintain connection with people to purchase their products. This helps them
to have good market reach and customer base.
 Different types of plants and shrubs are available in outlet of Green Nursery which help
buyers to have large options to purchase in according to their demands. Digital technology that is social media and mobile are used by business person to take
online orders from people.
Weaknesses:
 It is a seasonal business in which weather determine plants and shrubs growing process. Expensive tools required to be used for production process.
Opportunities:
 Green Nursery has outlet in United Kingdom so business person has chance to set up
outlet in other country to increase market reach and buyers. Company have another opportunity which is to produce hybrid plants to provide different
product than competitor (Gurran, Austin and Whitehead, 2014).
Threats:
 In UK weather conditions are unpredictable which affect on sales of Green Nursery.
 Dramatic enhancement in retail standards of garden influence on functioning of Green
Nursery which require to follow for maintaining fertility of soil.
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Target market- It is one of the essential factor that describes several segmentation of market in
which they enhance their growth level at market place. Green Nursery can use online platforms
like social media, mobile application and others so that it sell its products their at affordable
prices. Now these days, people prefer online shopping and mostly use social sites so it can be a
better option for this company.
Financial information: This is cash flow statement which is formulated by business
person of Green Nursery is described below:
Cash flow statement
Particulars Jan Feb Mar Apr June Total
Cash
Inflow
Investment 6000 6000
Credit
Sales 2000 2200 3500 3000 2000 12700
Total
Inflow 8000 2200 3500 3000 2000 18700
Cash
outflow
Fixed:
Hardware 3500 2000 2500 1500 2800 12300
Variable:
Direct
Material 450 150 350 250 180 1380
Total
Outflow 3950 2150 2850 1750 2980 13680
Net cash
flow 4050 50 650 1250 -980 5020
Opening
balance 0 4050 4100 4750 6000 5020
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Closing
balance 4050 4100 4750 6000 5020 10040
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Production cost 5000 - -
Promotion cost 1000 700 500
Advertisements cost 500 550 600
Technology cost 1500 1700 1900
Catalogues 250 200 150
Total 8250 3150 315
TASK 4
P5 Assess exit or succession options for small businesses
Small firms require that business person utilise resources properly for conducting
business activities effectively and sustain firm's position in market. It is necessary that top
authorities have information about succession and exit options so that both are used according to
business functioning. Here are discussed some business exit and succession approaches that can
be opted by organisation for making future decision:
Succession options: These are different succession options which executive of Green
Nursery have are stated beneath:
Merger/ Acquisition: It is effective process which help executive to expand business by
integrating with other firm. This benefits firm to get power and control in market (Viitanen and
Kingston, 2014). Benefits: This is effective tool which is beneficial for top personnel to merge with well
known firm that help them to attract customers easily to purchase products.
 Drawback: Merger and acquisition firm's image and functioning influence on sales and
profit of purchase company.
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Exit options: These are different exit options which small firms have are described
below:
Liquidation: This is a legal process which is conducted by small business to wind up
from market. For this, top personnel sell assets to pay debts of company and gain money they
had invested in company. Benefits: It is simple activity which help executive to sell business quickly. This process
time period rely on sale of assets which determine amount received by them. Drawback: This method have certain disadvantage which is amount of return that top
personnel get is lower than they have invested in business.
Sell business in open market: It is a popular tactic which help small firms to wind up
business either due to non- realisation of cost or for retirement. For this, they can use this option
which is to put business on sale at a specified rate. This help them to invite applicants which are
ready to purchase, thereby selecting that pay higher value (Sager, 2017). Benefits: It is appropriate for companies which are in profitable situation so it will be
able to attract large number of seller.
 Drawback: This is time consuming activity as first they require to determine correct
value of business than inform public. Along this, top personnel get money lower than
they expect will be gained from sell of business in open market.
Merger is best technique for Green Nursery to make succession of business. With help of
collaboration with existing firms, executive is able to attract customers easily to purchase plants,
thereby enhance sales and revenue. Thus, existing company's goodwill and image is used to
conduct business effectively.
CONCLUSION
As per above report, it can be comprehended that planing for growth plays important role
in small and medium firms. Porter's generic strategies assessed by executive define that cost
leadership tactic help them to enhance sales volume and profitability. PEST analysis aid business
person to design system and frame strategies in respect to government policies, economic
situation, social- cultural and technological on firm. Besides this, Ansoff's matrix is used to
evaluate growth opportunities which define that market penetration is best for small firms. Bank
loan helps business person to arrange funds for expanding business by utilising market
opportunities. Background of firm, objectives and other information related with company are
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noted in business plan to direct working of subordinates. Besides this, merger is technique which
aid them to grab attention of people easily with help of existing firm's market image.
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