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P 1 Key Considerations for Evaluating Growth Opportunities

   

Added on  2020-10-22

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PLANNING FORGROWTH

Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1 ...........................................................................................................................................1P 1 Key considerations for evaluating growth opportunities.................................................1P 2 Possibility for growth by applying Ansoff’s growth vector matrix.................................4TASK 2............................................................................................................................................5P 3 Possible sources of funding available to businesses and its benefits and limitations......5TASK 3............................................................................................................................................7P 4 Business plan for growth that includes financial information and strategic objectives...7TASK 4............................................................................................................................................9P 5 Exit or succession options for a small business along with its advantages anddisadvantages..........................................................................................................................9CONCLUSION .............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTION Planning is the act of thinking and deciding about specific task in order to accomplishtarget and reach determined goals. This is similar to making strategies for achieving goals andambitions associated with any business. It has noticed that around all the enterprises used tomake proper plan before starting their commerce at a new place or existing one. This report isdesigned to depict the importance of planning for growth. In this regard, a small health-carehome named 'Positive Aura' is considered which is going to work under the agreement offered by'Psychotherapist Services'. This association wants to develop itself so that it can earn name aswell as fame along with huge sum of profitability (Barbour and Deakin, 2012). Thus, hereinevaluation regarding growth opportunities is highlighted by using different methods such ascompetitive analysis and Pestle analysis. In addition to this, for understanding aboutopportunities for development, Ansoff's matrix is being applied. TASK 1P 1 Key considerations for evaluating growth opportunitiesPsychotherapist Services has launched a contract and looking for potential suppliers whocan provide treatments affiliated with psychology. By examining opportunity of growth, Ownerof ‘Positive Aura' had accepted this bid and become ready to deliver similar services. This is tobe noted that it is a small heath care organisation which is offering treatment to those people whoare mentally disturbed and suffering from the phase of depression. For acquiring effectivechances of development, it is vital to consider the way of running a successful business. This canbe interpreted by observing below listed methodologies:Competitive advantages: This is the technique of defeating competitors by applyingcertain strategies and aggregating more income in compared to them. One of the effectual meansof gaining competitive benefits is Porter's Generic strategies. Porter has recommended fourgeneric commercial schemes which can be adopted by 'Positive Aura' in order to overcome theirrivals (Beatley, 2014). These are discussed below:Cost Leadership: By executing this strategy, company can become lowest- costproducer in particular sector. This is thought as the appropriate way of acquiring rivalriesadvantages since herein the price of deliverables is made low in order to attractcustomers. All people wish to purchase cheap & best products. For instance, by offering1

facilities at cheapest prices, 'Positive Aura' can seek attention of huge crowds in relationto their challengers. Thereby they can easily enjoy the benefits of competition. Differentiation Leadership: This plan is completely opposite of above one sinceaccording to this scheme, services is being delivered at high costing or premium pricesfor creating differentiation amongst rivals. 'Positive Aura' can implement this by servingdepressed people at higher prices (Chen and et. al., 2014). But they have to givejustification regarding doing the same. In this context, entrepreneur should show the bestquality of therapies which is being provided by them in competitive market. After this,they are having the ability to give expensive treatments. Cost Focus: This can be applied by 'Positive Aura' for focussing on niche market (i.e.little competition but focussed market) by delivering facilities related to health at lowerpossible cost. They should select a clear niche marketplace for targeting. Afterwards,they have to understand the dynamics affiliated with that market and demands of patients. By thisway, they can successfully attain the competitive profits (Leigh and Blakely, 2016). Differentiation Focus: By using this plan of action, an organisation can reach its aim ofbeing different or unique in existing marketplace. This will also help in attainingcompetitive advantages. For accomplishing the mission of becoming differentiated,'Positive Aura' has to concentrate on niche marketing strategy. This is done by focussingon particular targeted segment within market location and satisfying civilians by givinggood quality services at premium rates. By examining above mentioned strategies, 'Positive Aura' is suggested to follow costleadership scheme as this will help them in attaining more competitive advantages. This is moresuitable and appropriate in context of the organisation as cost effective and value added servicescan assist in PESTLE Analysis: This is considered as a fantastic tool in the arena of business since ithelps in underpinning the impacts of various external factors upon the performance oforganisation (Eddleston and et. al., 2013). These factors sometimes resist the rate of growth orsometimes assist in acquiring achievements in particular industry. 'Positive Aura' shouldconcentrate on the implications of these exterior factors since they are going to start a new2

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