Planning for Growth Report

This report examines the growth opportunities for Clearly Drinks Limited, a UK-based soft drink company. It analyzes key considerations for growth, evaluates opportunities using Ansoff's growth matrix, assesses potential funding sources, and formulates a business plan for scaling up. The report also explores exit and succession options for the business, including their benefits and drawbacks. This report is available on Desklib, a website that provides past papers and solved assignments for students.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION .........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key consideration for growth opportunities in organisation context..................1
P2 Evaluate the opportunities for growth apply Ansoff's growth vector matrix.........................2
TASK 2............................................................................................................................................4
P3 Assess the potential sources of funding available to businesses and give benefit.................4
TASK 3............................................................................................................................................6
P4 Formulation of business plan for growth with financial and strategic objectives of scaling
up.................................................................................................................................................6
TASK 4............................................................................................................................................8
P5 Exit and succession option for business with its benefits and drawbacks.............................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
.........................................................................................................................................................1

INTRODUCTION
Planning is identify as an important tool which plays vital role in the development and
success of business operations. It support in finding of the useful factors and preparation of an
effective policies as per market situation (Brinckmann, Grichnik and Kapsa, 2010). Adoption of
these policies or plans contributes in the windup of entire tasks and accomplishment of desired
objectives within predetermined period of time. Utilisation of advanced technology in the
business operations and activities, it is needed to maximise their sales and revenues in limited
time period. There are different advantages gained via planning which run the company
functions smoothly towards growth and success. In this assignment, chosen organisation is
Clearly Drinks Limited, it is SMEs in United Kingdom which sells and produce a large range of
soft drinks brands. They offers bottled spring and flavoured water to the clients. This report
divided into different parts including growth opportunities for enterprise due to development of
digital or advanced technology. Potential source of funding and its advantages and disadvantage
also shown in this study. Application of Ansoff's growth matrix and development of business
plan or strategy for the success of company is also determined in this projects. Along with this
succession and exit options for small business is also determined in this project.
TASK 1
P1 Analysis of key consideration for growth opportunities in organisation context
Clearly Drinks Limited is a SMEs which deals in different variety of soft drinks in the
market of UK. Main motive of such organisation is to enlarge their business operations and
activities through digitalisation and innovation. In this company develop their new drinks in
marketplace as per the preferences and needs of clients. In support in capturing large amount of
market share and gain competitive advantages in limited time period. This will also support to
attract different number of clients and maximising their profitability towards drinks. Maximised
profitability render more capitals that serve opportunities of planning for the development and
success of company (Bryson, 2011 ). With the assist of planning company can achieved their
long term objectives easily. Therefore, planning renders chances about preparation of effective
procedures and policies which direct workforce towards the windup of entire tasks easily. Thus,
implementation and development of digitalisation has more effects in the progress of SMEs as it
gives opportunities of new product development in accordance the needs and wants of clients

and utilisation of innovative strategy of marketing which help them to expand their business. In
the Clearly Drink Limited, there are different opportunities of growth are existing due to
formulation of advanced technology, these are explained as below:
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Competitive Advantage: Administration of business plans regarding implementation and
development of advanced technology and innovation on the effectiveness of business functions.
Adoption of new technology support the company to maximise their turnover and sales within
predetermined period (Burns, 2010). In this production department has better chance in order to
enhance the quality of drinks and add new flavours in this which attract various customers for it.
On the other hand, marketing department also have various opportunity to follow effective
marketing techniques including internet and other sites of social media. Similarly, many other
departments including Human resources, operations and entire workforce also achieve the
advantages of technology.
New service and products: Implementation and development of advanced technology
assist in enhancing the communication among workers and to create an effective connection with
their target and potential audience. This support in knowing the market trends which exist in
beverages industry and individual taste of nation about drink selection. It supports in the
determination of flavour and tastes which is in need and creation of innovative drinks as per
clients preferences (Burton, 2010). Development on innovation between workers supports in the
improvement of their knowledge and plans which determine unique ways to serve their quality
products and establish new services. It is identify as an innovative platform for the company to
sell out their products, in this they offer online ordering facility via their own or official websites.
It is important in the expansion and development of company internationally through online
platform.
Collaboration: There are various opportunities of growth and development for the
company in the way of joint venture, merger, strategic alliance, acquisition and many other. All
these support in merging with another organisation which assist them to maximise their revenues
and turnover.
P2 Evaluate the opportunities for growth apply Ansoff's growth vector matrix
Digitalisation is more important and essential part for the development and success of
company in limited time period. It also help them to maximise their sales and profitability within
predetermined time period. Ansoff's growth matrix is identify as an effective and important
method which support the company to expand their business operations and activities easily. In
this they have various chances of implementation of beverages, market, diversification in its
drinks (Chapin, 2012). Such tools has four parts including market penetration, market
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development, diversification and product development. All these are beneficial in the entire
growth and development of enterprise activities and functions in various places (Ansoff Matrix –
The growth share Matrix of Ansoff, 2017). All these points are determined as below:
Illustration 1: Ansoff Matrix
(Source: Growth share of Ansoff, 2017)
Market penetration: It is important and essential part for the growth opportunities which
help the company to expand their operations at international level. In this fir sell their present
products in available marketplace. Main focus of this strategy is to maximise market share and
enhance customer value by adoption of useful market stargate (Chen and et. al., 2014). Clearly
Drinks Limited follow market penetration in order to sell out their existing drinks in the existing
market and to the available clients. In this they apply different promotional techniques including
advertisement, sales promotion of drinks in order to enlarge their business operations and gain
competitive advantages easily.
Product development: It is another strategy which support in enlargement of business
operations and functions in creation of their existing goods. It can be accomplished by enterprise
with supports in better planning and utilisation of new technology in their manufacturing activity
and maintenance of strong connection with their clients in order to keep trueness towards their
brand. Clearly Drinks Limited administration play essential role in order to interpret the taste and
performance of audience and develop their innovative drinks products which appropriate to their
pocket and demand.
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Market development: It is another important strategy which consist regarding the
determination of new marketplace. Here large number of chances for company to develop their
business operations and activities at internationally. Thus, it support in capturing maximum
number of market share and gain competitive edge easily (Deakin, 2013). In this Clearly Drinks
Limited find out the chances of growth for the creation of new place where they are come up
with new idea and give their drinks to the customers. Adoption of online and advanced
technology assist in incoming into new market segments which has broad range to attract
different peoples of various regions. In order to expanding business in new market administration
require to emphasis on different points which are shown as below:
 Establishment of innovative channels of distribution. It consists regarding appointing
provider which renders their drinks products to the end use in effective manner.
 Adoption of accurate policies of pricing and give discount to customers or students. Classified marketplace into demographic and geographic segment. It will support in
determination of the needs and taste of clients of these marketplace and satisfy its various
demands.
Diversification: It is one of the main and essential strategy which support in developing the
business operations and activities with motive to achieve competitive edge (Duany and et. al.,
2011). Clearly Drinks Limited apply these strategy in order to classified their drinks with various
flavours which support to fulfil basis needs and demands of the customers. It is important for
them to maximise their growth and success in marketplace. Thus it is beneficial and important
for the company to increase their sales and revenues as well as maximise productivity ratio.
TASK 2
P3 Assess the potential sources of funding available to businesses and give benefit
Clearly Drinks Limited is a small business which renders different types of drink
products to the customers. Main motive of the enterprise is to enlarge their business operations
and activities internationally and maximise their effectiveness. This can be accomplished by the
organisation only if advanced technology is applied in marketing, production, operational
promotion and many other activities. In this business needed sufficient amount of the capital in
order to do their all functions and activities in an effective and efficient manner. In the
marketplace, there are different source of the funding are available including peer to peer
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landing, crowd funding, bank loan, venture finance etc. All these sources has own advantages
and disadvantage in the funding activity (Durand and et. al., 2011). Thus, it is the role of
manager is to select best and useful resources for its activities and operations. Large number of
funding sources and its advantages and disadvantage are determined as below:
Bank loan: It is identify as an effective and useful approach of sourcing the funding
needs of business. This method consists regarding taking the bank loan at appropriate and fixed
rate. It is the simple and beneficial aspects of arranging accurate amount of capital for the
operations and function of company. In this government play vital role by giving different
advantages to the small business including subsidy, interest free loan and many other.
Advantages Disadvantage
 Bank loan is the most easier and simple
sources of finance which is essential for
the business operations and activities.
 Different benefits and advantages are
given by the bank on taking the long or
short team loan by enterprise from
enlargement of their business activities
and operations (Eddleston and et. al.,
2013).
 Interest rate of the loans are not high as
compared to other funding resources.
 Bank loan is a secure approach which
renders guarantee of interest rate of
loan and no variance in between
providence.
 Bank loan needed to apply strict rules
and have security interest their
properties.
 There re maximum worry of repayment
amount on real time period otherwise
their security interest or mortgaged
property is disposed.
 This process is not easy for the business
to apply such restriction or regulation
and if they lost have to face legal
actions as well as penalties also.
Crowd Funding: It is another essential source of funding through which company raise fund for
their effective operations and activities of company. This type of source consist regarding taking
the capitals from different population of nations (Fainstein and DeFilippis, 2015). This approach
assist in accomplishing the emphasis of the people on the operations activities and perform as
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marketing technique also. There are some advantages and disadvantage of such sources which
are explained as below:
Advantages Disadvantage
 This is the essential approach to
achieve the public reaction on the
enlargement of business activities and
operations.
 It is also define as a useful way of
marketing which supports in increasing
the tending of media.
 This sources of raising fund is not so
invariable and essential form Clearly
Drinks Limited.
 It is not easy for the organisation in
order to handle the capital in an
effective manner and decently repay to
population.
 It is time consuming activity to raise
capital from large population.
 By applying this approach company
faced different difficulties about taking
the superior approval of their
stakeholder.
TASK 3
P4 Formulation of business plan for growth with financial and strategic objectives of scaling up
Business plan is identify as an effective process of plan and preparation in which the
mission and objectives of the business entity accomplish their goals within predetermined time
period. In this planning about production, marketing and operation assist the enterprise to attain
their desired outputs effectively (MacLeod, 2013). Clearly Drinks Limited business plan about
the enlargement of company with the development of advanced technology are explained as
below:
Executive summary: Business plan is essential part for growth and success of an organisation.
Clearly Drinks Limited is a beverage company who needs to give healthy drink to its current
and potential customers in United Kingdom market. The business is introducing drinks in
different flavour to their end users for further enlarging in the other areas of the UK.
Overview of Clearly Drinks Limited: It is a type of soft drink organisation which render
effective services and products in United Kingdom (Planning for growth - creating and using the
business plan, 2015). This enterprise is specialised in providence of new and providing sugar
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free drinks goods as per the wants and needs of clients. They also renders bottles for different
type of soft drinks to the customers at reasonable price.
Mission: To growth the business activities and operation at international level as well as capture
large amount of market share. In this administration decided in order to plan regarding the future
activities or formulate advanced technology.
Strategic objectives: It is another important part of the business plan which identify the strategic
objective of company (Sheppard, 2013). There are some gaols and motive of Clearly Drinks
Limited are explained as below:
 To formulate digital or advanced technology for future development and success.
 Development of innovation or digitalisation among the workforce.
 Creation of new drink in order to achieve competitive edge. Launch online serving facilities or services of their drink in order to maximise sales and
turnover.
Services and Products: Clearly Drinks Limited offer different products and services to the
customers at affordable prices. They mainly serve sugar free and innovative flavour drinks.
There are some various drinks including Whisper, perfectly clear kids, juicy water and many
other. They also plan their new bottles for their beverages and soft drinks (Todes, 2012). Thus,
variegation in their effec6tive services and new flavour in drinks assist in attainment of their
better outcomes.
SWOT Analysis: It is another important part of the business plan which is prepared by all
enterprise with aim to identify their strengths, weakness, threats and opportunities. Thus it is
important and important for the all enterprise to prepare it in effective manner. Thus SWOT
Analysis of Clearly Drinks Limited are determined as below:
Strengths Weaknesses
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 Different number of distribution
channels which support in better
distribution of their new flavour drinks
products.
 Established in marketplace and having
better reputation among different
customers.
 Soft drinks are not good for the health
of the customers.
 Lack of marketing and promotional
techniques.
 Number of employees are minimum
which effects on business operations.
Threats Opportunities
 Distribution cost is one of the main
threats for the company.
 Stronghold of challenges in the
marketplace.
 Perception of costlier means better.
 To capture different number of
challenges from market.
 To enhance quality in their drinks and
services.
 To establish their business operations
and activities through online in order to
maximise their turnover.
Target Market: It is another part which includes regarding determination or finding of various
market segments due to this they can increase their business activities and operations. Clearly
Drinks Limited mainly emphasis on online channels because it has more impacts on achieving
long term goals (Valler, Phelps and Wood, 2012). They also definite to emphasis on the local
place to recognise needs of the customers and render drinks with innovative. It also support in
capture large number of market share in an effective and efficient manner.
Financial information: This part of the business plan consider as essential and necessary
way to do all activities and functions in an appropriate manner. In marketplace, Clearly Drinks
Limited has better position and capability of increasing capital from different source of finding.
This assist in accurate allotment of capital to the various department and give proper training or
learning to their workforce. These are base on about effective utilisation of advanced technology
in order to achieve desired goals and objectives easily. In order to adopt advanced technology
company need accurate amount of the fund in various operations.
Total forecasted budget
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Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Manufacturing cost 2000 - -
Promotional expense 900 800 600
Advertisement
expense
600 560 580
Cost of adopting new
technology
700 800 850
Catalogues 200 400 300
Total Cost 4400 2560 2330
From above discussed budget, it could be ascertained that managers of Clearly Drinks Limited
are required to pay attention to firm's cost of manufacturing. In addition to this, there is critical
need for company to invest in its product promotion in order to capture attention of its potential
target market. Catalogues are requisite for firm as they assist in enhancing knowledge of people
about different types of drinks product.
Cash flow statement
Cash flow statement of Clearly Drinks Limited is as given below:
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From above cash flow statement, it is concluded that the organisation has accurate cash
for paying the pending debts. Clearly Drinks Limited requires to pay tax which is changing with
year. Clearly Drinks Limited has the cash in hand for year 2015, 2016 and 2017 which is
$102203, $200354, $238503 as well as average income is around as $72001 for the 3 years.
TASK 4
P5 Exit and succession option for business with its benefits and drawbacks
There are two important options such as succession and exit which are highly depends on
the business growth and performance in marketplace. In this manager of the Clearly Drinks
Limited require to evaluate the effectiveness of company and convey it to the owner of enterprise
(van Assche, Lo and Beunen, 2013). From the same they determine whether they needs to
continue business operation and windup them. For instance: if the business entity face lowering
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of finance for last four years and they awareness that there is less or no opportunity to maximise
sales in future then it is good for them to windup their business. On the other hand enterprise is
capable to get earn profit and recover its fixed cost then the administrator require to decide
continue their business operation for upcoming year. Thus, there are different ways due to this
company director break up or continue their business operations and activities in future.
Different ways to dissolve business: There are some ways to leave business which has
advantages and disadvantage are determined as below:
Liquidation: If the business entity regular facing financial loss for last four years. Thus, in this
manager of the company predict that there is less chance in upcoming year as well as maximise
sales then they require in order to inform owner of enterprise (Ward, 2016). Therefore, Board of
directors and manager of the company decide to closing their business.
Advantages Disadvantage
After liquidation the director of organisation
will escaped from any kind of legal actions
which is proceed against them inferior they did
not provide any kind of guarantee in order to
pay debts to business. Therefore they acquire
interdependence to ender into company
without aiming any obligation of creditors.
Business director and mange require to be sold
their business and asset in order to create
payment or mercantilism to their creditors
towards dividend.
Sell the business entity in open marketplace: When the director of enterprise decided to leave
their business operations they they should have different options or choice to sell their business
operations in open place at limited price (Wu, 2015). It will support director in order to acquire
real values of company which support them in establishing unique business operations. Selling
their business operations means entire assets and liabilities that connected to the company, it will
consist to purchaser.
Advantages Disadvantage
As the goodwill and image of the business
entity which support new managers in order to
acquire existing clients and attract different
In order to compete with challengers the
vendee may creates opportunities in entire
operations and activities of enterprise through
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number of new buyers in an easy manner. which employability of available workforce
may exist in danger.
Different ways the company can succeed their business operations and activities: There are
various ways which are determined as below:
Use of internet: Clients is reasoned as the lifeline and blood of the enterprise who accomplish
development in achieving clients strength will decidedly present in competitive marketplace for
minimum time period. Thus, Clearly Drinking Ltd require to select different activities via which
they highly attract different number of audience (Wynn, 2017). Developing website of company
and advertising services and products by using online channel that support enterprise in order to
attract different number of audience. The business require to establish differentiated member to
advertise their business operations in all over the globe.
Delegating work to skilfulness worker and avoid micromanaging them: In this business
director require to delegate essential activity and work to their all workforce as per its knowledge
and skills by which company can attain long term gaols and better outputs. Adopting
development programs and incentives enable their workforce in order to involve more and to
accomplish long term objectives and goals. Thus, it is important and beneficial for the company
to maximise their turnover and sales in limited time period. It is also beneficial to gain
competitive advantages within predetermined period of time.
Advantages and disadvantage of succession of company are determined as below:
Advantages Disadvantage
The workforce of enterprise acquire the more
benefits as they cognizance secure and feel
regarding their employability which impacts
on business in direct manner. This will assist in
reducing the rates of employee turnover
(Wynn, 2017).
As if the organisation facing different losses
that decide to proceed their business operations
regularly with an aim of earning more
advantages in future., the it may maximise the
expense or liabilities of business which reduce
the reputation of enterprise as well.
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CONCLUSION
From the above mentioned report, it can be concluded that , planning is more essential
and important part for the success and growth of company. In the organisation, such tool play
vital role for improving progress and development of firm at international level. In this digital
technology play significant role to expand their business operations globally and internationally.
In order to do their all activities and functions smoothly, business manager find out different
resources of funding including bank loan, crowding and many other. Company deals in different
variety of soft drinks and in order to introduced this to customers, company follow modern tools
of promotions such as social media which assist to attract large number of audience and
accomplish their long term objectives within predetermined period of time.
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