Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1............................................................................................................................................3
P2............................................................................................................................................5
TASK 2............................................................................................................................................7
P3............................................................................................................................................7
TASK 3............................................................................................................................................9
P4............................................................................................................................................9
TASK 4..........................................................................................................................................12
P5..........................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for the growth is the core function which the organisations perform in order to
succeed in the competitive market. Planning in advance will assist the business about the
creation of the business plan and what is to be achieved and how it should be achieve. It is
essential for the business to plan for their future growth and development as this provide the
business with the big picture about their long term goals and vision. SME's are the business
which are generally of small and medium size. In this report the chosen company is Oak Cash
and Carry which is one of the wholesaler deals in the Grocery items. This assignment covers four
different tasks such as the key consideration to measure the growth opportunity and several
sources of funding. Along with this the reports also covers the development of the business plans
to expand the business and also focuses on the determination of the ways through which the
owner of the business can decide whether to exit the business or to continue the organisation
with succession.
TASK1
P1
Planning refers to the ongoing process in every business organisation which assist the
association in accomplishing their goals with proper guidance and strategies. Appropriate
planning also helps the business to analyse the differences between the actual performance and
planned performance (Keough, 2015). The business of Oak Cash and Carry require to focus on
the expansion of their association in the UK market by formulation of proper plans and
strategies. Oak Cash and Carry require to adopt various measures which are mentioned below:
Porter's generic strategy:
Porter's generic model is the one which helps the business association gaining a
competitive advantage over their rivals. This model is the one which provides the business with
the directions which will lead to the enhancement of organisations performance. This structure
consists of the stages such as:
Cost Leadership strategy- This action calls for the low cost of the products. By keeping
the low cost of the products the business of Oak Cash and Carry can successfully gain a
competitive advantage which will help them in competing with the competitors available in front

of them in the market. And will also assist the business in capturing the larger share in the
market with the increased customer base (Barbour and Deakin, 2012).
Differentiation- This strategy involves the creation of the new and unique product which
will help the business in gaining the competitive advantage so that the firms can easily satisfy the
demands and needs of the customers as per their expectations. The Unique features of the
product will enable the business to capture the minds of the customers so that the large customer
base can be built.
Cost Focus- This strategy is the one which gives emphasis on the niche market or narrow
market within this markets the firms tends to gain cost advantage as well as the differentiation.
Cost focus strategy is the only strategy which is used by the businesses after identifying the
changing demands and preferences of the customers so that the business of Oak Cash and Carry
can easily capture mind of the customers.
Differentiation focus – This strategy calls for the creation of plans and strategy so that
the business can easily create their brand recognitions and recall in the brain of the customers.
With help of this, management of organisation can easily gain competitive advantage over their
rivals. Thought and policies can be made for initiating an innovative good in industry in order to
attract large customer base.
Thus, The business of Oak Cash and Carry must focus on the adoption of cost focus
strategy as this will provide the business with the competitive advantage, large customer base
through their low cost products (MacLeod, 2013).
PESTEL analysis
The business must consider all the external factors of the macro environment before the
formulation of their business plan as this will enable them in understanding which factors are
influencing their business. The management of the business Oak Cash and Carry will perform
the PESTLE analysis in business so that the firm can decrease their risks and all those
uncertainties which can directly impact the profit margin of the business. Various components of
the PESTLE analysis have been discussed below:
Political: These factors are those which are regulated by the government of the country.
This involves rules and regulations, policies etc. as the political background of the UK economy
is stable the business of Oak Cash and Carry has broad opportunity to grow their association in
the UK economy.