Planning for Growth InTRODUCTION in Organization
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Added on 2021-02-22
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PLANNING FOR GROWTH INTRODUCTION 1 TASK 11 P1 Define key considerations to evaluate growth opportunities and justify them in organizational context 1 P2 Evaluate growth opportunities with the help of Ansoff's growth vector matrix4 TASK 25 P3 Analyse potential source of funding available for businesses along with their advantages and disadvantages5 TASK 36 P4 Prepare a business plan which involves financial statementsand strategic objectives for business scale-up6 TASK 49 P5 Define succession or exit options
Planning for Growth InTRODUCTION in Organization
Added on 2021-02-22
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PLANNING FOR GROWTH
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1P1 Define key considerations to evaluate growth opportunities and justify them inorganizational context.................................................................................................................1P2 Evaluate growth opportunities with the help of Ansoff's growth vector matrix....................4TASK 2............................................................................................................................................5P3 Analyse potential source of funding available for businesses along with their advantagesand disadvantages........................................................................................................................5TASK 3............................................................................................................................................6P4 Prepare a business plan which involves financial statements and strategic objectives forbusiness scale-up.........................................................................................................................6TASK 4 ...........................................................................................................................................9P5 Define succession or exit options for small business by explaining benefits and drawbacks.....................................................................................................................................................9CONCLUSION .............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTION Planning for growth is referred to the strategic business operation and activities whichallows a businessman to plan growth in profits and revenues. With the help of planning, acompany can optimally use their existing resources so that maximum output can be attained.Tactics and strategies involving a growth plan has main emphasis on high revenue generation (Alsos, Carter and Ljunggren, 2011). This assignment is based upon Rebellion Developmentlimited which is a Britain based video game developer, situated in Oxford, England. Company isa SME and founded in 1992 by Chris Kingsley and Jason. At present, organization is employingaround 300 employees. This assignment will cover about key considerations for evaluation ofgrowth opportunities along with mentioning of Ansoff's growth matrix. Also, potential fundingsource for company and appropriate business plan that include strategic objectives is formulated.At last, succession and exit option for small business along with merits and demerits arediscussed. TASK 1P1 Define key considerations to evaluate growth opportunities and justify them in organizationalcontextThere are different framework and tools to evaluate the growth opportunities in a propermanner. With the help of these tools, market condition and external business environment can beacknowledged in a proper manner so that appropriate planning can be carried out to attain highrevenues and profits. In this context, manager in Rebellion Developments can use Porter'sgeneric strategy to identify best growth strategy in context with company. Aspects related withPorter's generic strategy are mentioned below:Porter's generic strategyPorter's generic framework defines different growth strategies which will benefits anorganisation in gaining competitive advantage over rival companies in a strategic manner.Relative position of a company in marketplace defines if a company is attaining profitability ornot (Angotti, 2018). There are two kind of competitive advantage which can be enjoyed by acompany i.e. differentiation and cost leadership. In this context, there are three generic strategiesavailable for Rebellion Development that will benefits them in achieving desired growth. Thesestrategies are discussed below: 1
Cost leadership: In this porter's generic strategy, an organisation became low costproducer within the entire industry. Sources associated with this strategy varies andhighly depends on the structure of concerned industry. With the help of this strategy,Rebellion Developments can win high market shares by appealing price sensitive andcost conscious consumers in a proper manner. It is attained by lowering prices of servicesor products in target market. Due to this, sales of the concerned company will enhanceand high returns on investment can be attained. This will results in enhanced marketshares and sales for company. Differentiation: This is another strategy which can be used by a business organisation toachieve expected profits and market shares. In this strategy, an organisation differentiateits services or products from rivals so that high advantage in marketplace can beachieved. By using this strategy, Rebellion developments can provide unique videogames and comics to customers so that advantage and high market shares can be achievedagainst rivals (Birkin, Clarke and Clarke, 2017). Focus: Organisations which use this business growth strategy focuses on a particularniche market. By acknowledging the dynamic of marketplace and innovative needs ofcustomers, a unique well specified and low cost product is formulated. This product gainscompetitive advantage over rivals due to which high profits and market shares are earnedby concerned companies. This strategy has two variants which are cost focus anddifferentiation focus. Either Rebellion developments can use differentiation focus or costfocus but to achieve success, company must have to serve niche market so that highreturn can be attained. In context with Rebellion development, company can choose differentiation strategy toachieve high returns and profits. In this strategy, firm is required to offer some unique productlike interactive video games to their customers (Denton, Forsyth and MacLennan, 2017). Asthese video games will not be already available in market, customers will readily buy them dueto which revenues and sales of company will increase and organisation will be able to gaindesired success and growth.This kind of strategy is appropriate in those situations wherecustomers are not very sensitive about price and their main preference is towards unique andinnovative products. Hence, it is recommended to the owner of Rebellion developments to chosethis option as their growth srtaregy. 2
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