(Doc) Planning for Growth - Assignment
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Added on 2020-10-22
(Doc) Planning for Growth - Assignment
Added on 2020-10-22
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PLANNING FORGROWTH
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1. Assessing key considerations for evaluating growth opportunities for the firm..............1P2. Ansoff matrix for evaluating the opportunities for growth..............................................3LO 2.................................................................................................................................................5P3. Potential sources of funding available to business...........................................................5LO 3.................................................................................................................................................7P4. Business plan for growth..................................................................................................7LO 4...............................................................................................................................................10P5. Succession options for Allied Worldwide Ltd...............................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONBusiness planning can be defined as a clear plan of ongoing activities that supports entityin expansion and enhancing profit of enterprise. Present study is based on Allied Worldwide Ltdwhich is an IT firm. Company assists its corporate consumers to develop their business byproviding technological solutions. Current assignment will assess the key factors for evaluatinggrowth opportunity for small business. Furthermore, it will apply Ansoff matrix model forevaluating growth opportunities for Allied Worldwide Ltd. Report will also explain fundingsources available to business and its benefits and drawbacks as well. In addition to this, it willdesign plan for the growth of company. Study will describe succession option for small businessalong with advantages and limitations of these exit options.LO 1P1. Assessing key considerations for evaluating growth opportunities for the firmThe business starts its operational activities with the main intention to attain success bysatisfying customers up to a high extent. This is essentially required so that desired profits maybe accomplished within stipulated time (Brinckmann and et.al, 2018). Moreover, when adequateprofits are garnered, firm plans for further expansion which means to attain more growth in themarketplace and also in international market as well. Allied Worldwide Ltd which is an SMEprovides professional IT services to various business concerns so as to achieve profits quiteeffectually. It is needed that firm should accomplish desired growth and enhance its market shareby providing quality services to customers. By this, consumers will become loyal to firm andenhancement in profits will be achieved. Hence, it will contribute towards growth and profitswould be maximized (Grimmer, Miles and Grimmer, 2016). The key considerations forevaluating growth opportunities are described below-Competition It is very important for the organization that to look upon competition in the market. ITindustry is facing huge competition due to which it has become difficult for the small sizecompanies to sustain in the market for longer duration. Allied Worldwide Ltd will have to lookupon competitive environment so that it can make its strategies accordingly (Bushnell and et.al,2015). This can help the organization to sustain in the market for longer duration.Resource utilization1
Resources play significant role in success of business unit. If entity has adequateresources and if it is able to utilize it properly, then it can support in gaining success in themarket. This element needs to be taken into consideration by Allied Worldwide Ltd. Firm hasskilled employees; it has to utilize skills of these workers effectively. Furthermore, if managersuse financial resources in appropriate manner then it will help organization in minimizing costand increasing profitability of the company (Karia, Bathula and Abbott, 2015). Technologicalresources are another essential resource for the entity. If Allied Worldwide Ltd utilise itstechnical elements properly then it would help the enterprise in providing more effective ITservices to consumers that will gain attention of mass audience.Core competenciesAllied Worldwide Ltd is small size firm but it has skilled people those who have greatexperience of IT industry. They are able to provide good IT solutions to the consumers inmarket. Furthermore, company has capability to monitor market fluctuations and identify needsof consumers (Kumar, 2016). This capability of business supports the firm in identifyingimprovement areas and making changes in its strategies. Portfolio strategiesIt is another most essential part of business unit, it is very important for the company totake into consideration .Each firm has to make strategy for different products and have to decidethat in which products they need to invest more. BCG matrix is considered as most effective toolthat helps Allied Worldwide Ltd in identifying most profitable products that has good growth sothat company can invest huge amount in this products for raising profit. Dogs products of AlliedWorldwide Ltd have low market share and their growth is low (Samuelsson and et.al, 2016).Question mark is another items that has good growth but they are unable to enhance cashrevenues. Stars products have strong market share and their growth is high. Cash cows has highmarket share but low growth. Allied Worldwide Ltd implements this model in order to identifymost profitable product in company ad accordingly it makes its portfolio strategies. Entity caninvest in stars IT products because by this way it will be able to raise its market share and will beable to enhance its profitability as well (Dredge and Jamal, 2015).External factorsThere are many external factors that can influence overall performance of business togreat extent. Porter’s five force model helps in identifying impact of these components on2
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