Planning for Growth Report
Added on 2020-12-24
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Planning for Growth
CONTENTSOVERVIEW....................................................................................................................................1TASK 1............................................................................................................................................1Analysis to evaluate growth opportunities..................................................................................1Complete assessment for growth................................................................................................2TASK 2............................................................................................................................................3Assessment of methods of funding and their types.....................................................................3TASK 3............................................................................................................................................5Development of business plan for growth..................................................................................5TASK 4............................................................................................................................................8Assessment of succession and exit strategies of SME................................................................8CONCLUSION..............................................................................................................................10REFERENCES .............................................................................................................................12
OVERVIEWPlanning for growth refers to a strategic business plan that management creates andtracks growth of their revenue and company. It helps in allocating available resources andachieving goals and objectives of company . This is generally required for small and mediumbusiness that want to grow in the industry or large businesses that want to globally expand. This report will cover the plans for growth of Southern Business Technologies Limited, aSME which was founded in 2001 and is located in UK. It will analyse growth opportunities ofthe organisation and evaluate it by understanding the risks and advantages. Assessment ofvarious methods by which organisations access funding and their usage will be done.Development of a business plan and communication on how to scale up business will be done. Itwill also assess benefits and drawbacks of exit or succession options of SME. TASK 1Analysis to evaluate growth opportunitiesAn organisation can only grow when there are opportunities available for them(Eddleston and et.al., 2013). There are many ways to implement strategies that expand a businesswith regard to the financial situation, competition and government rules and regulations.Southern Business Technologies can take the following key considerations for growing theirbusiness.Financing: Small businesses asses their company's budget and decide how much financeis required for growth. If they have the needed amount of budget, then company can startcreating a plan and if not, loans can be taken from financial institutes. This is an importantstep for growing a SME.Cost Leadership: Organisations can aim at becoming low cost producers by finding and using all available resources. This will depend upon economies of scale, technology and access to raw materials. If this can be achieved, then company will have an advantage of commanding prices in the industry.Determination of competencies: When an organisation finds out its core competencies, it can work towards establishing themselves and increasing brand recognition. They can make proper use of available opportunities and put their skills into it (Mitchelmore andRowley, 2013).
Differentiation Focus: Opportunities for targeting a market in which company's products and services have unique features and that can help increase loyalty among consumers.This helps in being ahead in the competitive market.Use of new technology: New technologies are introduced regularly, and keep changing. This can cause delay in achievement of goals and objectives of company. Southern Business Technologies can upgrade their business facilities by using these new inventions, which will increase efficiency and help them to grow. If not used properly, it can become a threat, rather than an opportunity for company.In addition, it is important to understand that these mentioned factors would help inlaying the foundation for growth and developmental practices of the organization. There wouldbe requirements and several specifications to meet the expected project factors that wouldsupport in evaluating the business opportunities with considerable feasibility. Herein it isunderstandable that market size, management skills, persistence and overall cooperation's fromemployees would help in assessing the growth factor in effective manner.Complete assessment for growth Southern Business Technologies can evaluate its growth opportunities by applyingAnsoff's matrix. It helps company in deciding their market growth. This covers marketpenetration, market and product development and diversification. Whenever company enters intonew market, it has to face many risk. The main danger for business it that it can enhance itscosting. Another danger for the business is that it might get failed to generate revenues andprovide satisfactory product to consumers. This can spoil brand image of the firm to great extent.Market penetration is the first part of Ansoff's growth vector matrix. It occurs whenexisting products are sold in such a way to increase company's market share (Gregor andHevner, 2014). There is very little risk in this as only marketing efforts have to be increased toimprove it's market share. They have to ensure that there is leverage on current capabilities andresources that can help create a growth strategy for company. Southern Business Technologiessell and caters products that already exist, hence they have an advantage to this.Market development is the second part of Ansoff's growth vector matrix. It occurs whencompanies plan to establish into newer marketplaces in regard to the existing products. Thosewith potential capacities in terms of resources, machineries, capital etc. can expand into different
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