Planning for Growth Contents INTRODUCTION 3 TASK 13 P1 Key considerations for evaluating growth opportunities 3 P2 Opportunities for growth using Ansoff's growth vector matrix 5 TASK 26 P3 Business pl
Added on 2021-02-19
17 Pages5539 Words453 Views
Planning for Growth1
ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Key considerations for evaluating growth opportunities........................................................3P2 Opportunities for growth using Ansoff's growth vector matrix.............................................5TASK 2............................................................................................................................................6P3 Sources of funds with advantages and disadvantages............................................................6TASK 3............................................................................................................................................9P4 Business plan for growth of business.....................................................................................9TASK 4..........................................................................................................................................12P5. Succession and exit plan for small business with its advantage and disadvantage.............12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................152
INTRODUCTIONIn order to ensure survival of the business for a long time period, it is necessary for thebusiness organisations to analyse the internal and external business environmental factors andtake effective decisions to properly formulate strategies and policies for the growth andexpansion of the company. Hence it is vital for the company to frame and implement growthstrategies for the firm so as to enable the companies to survive in this competitive world. Itprovides small medium enterprises to ensure smooth flow of business activities by framingproper tactics and taking effective actions. This report is based on Trading Scents Company; it isa small company and the major distributor of cosmetic, skin care and cosmetic products in Inver,Buckinghamshire, United Kingdom. Project will focus on the analysing the businessenvironmental factor so as to evaluate the key considerations of growth opportunities. It alsoanalyses Ansoff Growth Matrix so as to evaluate the effective growth strategies that can beadopted by the company. In addition to it evaluates the sources of funds that is being availableto the organisation, in context to which business plan is also been developed that states theoperational, financial and strategic objectives of the company. At last it will discuss varioussuccession and exit options for the small business enterprise. TASK 1P1 Key considerations for evaluating growth opportunitiesAs Trading Scents is a small medium enterprise which deals in providing cosmetic andskin care products to the customer and doesn't have its global presence through the world. As themanager of the business is trying to expand its business in different areas in order to catering theneeds of different customers. This would assist the company to attain higher growth and successof the firm. Further more, in order to evaluate the growth opportunities, it is necessary for theowner of the chosen company to adopt Porters Generic Strategy so as to properly determine thedesired growth options for the company (Barnett, 2017). Porters Generic Strategy- It is a effective model which assist the organisation tochoose the most effective growth strategy so as to ensure survival and growth of the business inthe competitive world. Various growth strategies are described as beneath- Cost Leadership- Adoptingconcernedstrategy allows the chosen organisation toenhance their profit margins and captures larger market share by providing product to the3
customers at a lesser price. It will assist the company to maintain growth of the businessin comparison to its competitors. Differentiation- strategy allows the organisation to provide differentiated offerings tothe customer as a way to attract them and survive in this competitive market place. Inaddition to it it will assist the company to achieve higher profitability.Cost Focus- This strategy allow Trading Scents to offer their cosmetic and skin careproducts to the specific market segment at a lower price that is been available in themarket. It is effective strategy which will help the company to maintain growth byattracting larger customer base. Differentiation Focus- In this strategy respective company can focus on providingunique products to the specific group customers according to their needs and preferences.When Trading scents will offer unique products according to the customers requirementit enhance growth of the business and will enhance their brand image in the market. Moreover from the above mentioned strategies it is crucial for the Trading Scents toadopt cost leadership strategy as a way of offering the products to the customers at a lower priceso as to gain the competitive advantage and attains maximum growth for the business. Risk associated with this strategy Cost leadership strategy carries risk as if the similar organisation dealing in cosmeticproducts also offers their products a lower price. Then this will be difficult for the company toattract larger customer and maintains growth (Chenand et. al., 2014). Moreover low price of theproducts will create negative impression on the minds of the customer and will results to reducedsales. This risk can be mitigated by providing the product with best quality according to theexisting trends and therefore properly advertises their product so as to gain trust and confidenceof the customers. Therefore in addition to this growth opportunities can be evaluated by analysing thebusiness environmental factors which is described as follows- Political Factors- As the chosen organisation operates in UK, where there is stability inthe political rules and regulations. This allow Trading scents to expand their businesswithin Uk such as in the area of Ireland, England, Scotland. This provide growthopportunities for company and assist to gain competitive advantage.As with the political4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
(Doc) Planning for Growth Solution Assignmentlg...
|17
|5149
|61
Planning for Growthlg...
|18
|5919
|96
Planning for Growthlg...
|15
|4791
|73
Growth Opportunities for Trading Scents Ltdlg...
|18
|5605
|55
Planning for Growthlg...
|14
|4483
|96
Opportunities for Growth Assignmentlg...
|14
|4216
|186