Planning for Growth

Planning for Growth
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1) Key consideration for evaluation of growth opportunities..............................................4
P2) Evaluation of growth opportunity with Ansoff's matrix..................................................6
TASK 2............................................................................................................................................8
P3) Potential sources of funding.............................................................................................8
TASK 3............................................................................................................................................9
P4) Business plan for the growth of the organisation.............................................................9
TASK 4..........................................................................................................................................13
P5) Exit or succession options for the small business..........................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Planning for the growth is strategic activity of the business in which the management of
the organisations plans for the organic growth. For this they need to consider the effective use of
the resources which helps the organisation in taking competitive advantage (Price, 2018). While
planning for the growth the management need to identify the opportunities prevailing in the
market and strategies which they can adopt to grab such opportunities. The organisation which is
taken for report is Ella's kitchen, which is a small enterprise that manufactures organic baby and
toddlers food. They have been operating in many countries other than UK such as China,
Finland, Norway, Netherlands, US etc. In this report, various sources of funds are identified with
the help of which they can gather the funds. Along with this external and internal market will be
analysed and on the basis of which various strategies will be determined. Further a succession
plan will be formulated for the organisation.
TASK 1
P1) Key consideration for evaluation of growth opportunities
The businesses need to identify various opportunities that helps them to plan for their
actions and to formulate various strategies. For this the organisation need to analyse the internal
situation in which the resources, capabilities and core competencies are taken into consideration.
While considering the external environment the organisations have to focus upon various macro
economic factors which cannot be controlled by them. For evaluating the opportunities for Ella's
Kitchen the strategies need to be analysed that can be done with the help of Porter's Generic
model (Leick, 2018).
Porter's generic strategies facilitates the organisation in determining the suitable
strategy which can helps them in taking sustainable competitive advantage. An organisation can
take such advantage either by way of lower cost or by offering differentiated products. Some of
the strategy are given below:
 Cost Leadership: This is a strategy in which the organisation aims to enhance their
market share by providing low cost products to the customers. It can be done by
improving the economies of scale, improving the technology and many more as with
this the per unit can be reduced. Ella's Kitchen can adopt this strategy as the product
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that they offer are essential and by providing them at lower cost will enable them to
expand their market share.
 Differentiation Leadership: This strategy aims to provide unique products to the
customers by introducing differentiated attributes to the products. With this Ella's
Kitchen can create unique position in the market that will facilitate them in meeting the
specific needs of the customers. In this higher prices can be charged from the customers
on the grounds of uniqueness.
 Focus: With the focus strategy, a narrow segment is targeted by the organisation. Such
strategy can be adopted either by considering cost or differentiation. Cost focus strategy
seeks to take lower cost advantage in smaller market which will be acceptable to most
of the targeted customers. While with differentiation focus strategy specific need of the
customers can be satisfied but for this higher prices can be charged from the customers.
Ella's Kitchen can adopt both such strategy in case they target niche market (Kim,
2019).
On the basis of above analysis it is identified that Ella's Kitchen must focus upon
differentiation focus strategy as it will help them in satisfying the customers effectively by
providing the superior quality products.
In addition to this organisation need to analyse the external market as that will enable
them to identify various opportunities and threats that can have impact on the organisation. This
can be done with the help PESTLE analysis:
 Political: This factors reflects the extend to which the government can intervene in the
operations of the organisation. In UK the situation is of political stability which has
positive impact on the organisation as their will not be any frequent changes in the
policies. For Ella's Kitchen it is an opportunity as with this they can easily expand their
business.
 Economic: Economic factors includes the purchasing power, unemployment rate, GDP
rate etc. that has direct impact on the profitability of the organisation. The income of the
people in UK is high which is why they can afford goods easily which are of higher
prices but of better quality. So for Ella's Kitchen this is an opportunity to plan for the
growth.
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