Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluation of key consideration of growth opportunities......................................................1
P2 Application of Ansoff growth vector matrix.........................................................................2
TASK 2............................................................................................................................................3
P3 Assessing the potential sources of funding available to businesses along with discussing its
benefits and drawbacks in organisational context.......................................................................3
TASK 3............................................................................................................................................5
P4 Design of new business plan.................................................................................................5
TASK 4............................................................................................................................................8
P5 Discuss assessment of the different exist or succession alternative for business..................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Growth planning is an activity of business in which businesses identify growth
opportunities and formulate marketing plan and strategy for successful execution of the plan. In
this assignment structure for planning for growth of The Ledbury has been created. Ledbury is
British restaurant founded in the year 2005. In the beginning the report evaluate the key elements
and factors company have to consider when evaluating growth opportunities. Secondly report
apply Ansoff matrix to evaluate growth opportunities. Later the report do the assessment of
potential source of funding business can avail. Further the report covers the design of new
business plan. Finally the report evaluate the exit strategy available to business (Sarin, 2019) .
TASK 1
P1 Evaluation of key consideration of growth opportunities
PESTLE Analysis
It is a tool used to analyse macro environmental framework of the country. The
objectives of PESTLE Analysis are to examine the favourable and unfavourable factors which
affect the growth of business. The PESTLE Analysis of UK is given below:-
Political Factors: UK is a politically stabilized country. There is a rule constitutional
monarchy in the country. Prime Minister have supreme dominance over the country. Election is
conducted in every five years for the selection of Prime Minister. Monarch is head of the state.
UK has a goods relations with most powerful and developed country USA. Many analyst have a
debate on the effects of Brexit on the country. Some perceives it as a threat to economy while
other considered it as beneficial for the country. Political factors posed no severe threat to the
Ledbury.
Economical Factors: UK is one of the richest countries of the world. Per capita income
of citizens is very high. Poverty is very low in the country. UK is a economically powerful
nation. It comes in the list of top 10 fastest growing economy of the world. Inflation rate in UK
is also appropriate for the growth of the economy. Time value of money decreases in very slow
pace. Many investors give preference to investing in Foreign Direct Investment of United
Kingdom. Many investors around the world had been invested in various sector of the economy.
The Ledbury has a wide scope for growth in the country. Low inflation and prospering economy
will boost the growth of the company (Rahman and et al., 2018) .
1

Social factors: Despite being influenced the concept of social class United Kingdom has
a multi-cultural consumer marketplace. Population of the country are increasing day by day.
Birth rate is more than death rate in United Kingdom. Many foreigner migrate to the country for
the objective of pursuing jobs. There is large quantity of educated youth in the country.
Education and living standard is becoming expensive. Cheap labour from foreign country and
highly educated youth will catalyse the growth of The Ledbury.
Technological factors: Technological advancement is credit worthy for the status of
developed nation of the country. UK is a hub of advanced Information and financial technology.
UK has fast speed internet and employee with specialisation in Information Technology. Country
has plenty of IT specialist causative to the growth of the economy. Intense competition among IT
specialist forced them to contribute more in less compensation. Company can seek the benefits
of advanced technology and engineering to streamlined its functions and process.
Legal factors: UK has a well made legal framework. Law and order are strict enough to
maintain peace and harmony in the society. Rules are regulations does not harm the freedom of
the citizens in any form. Laws are made for welfare for the society. Everyone is equal before the
law in the country. Many legislation being made to ensure health and safety of employees.
Legislation enforced companies to provide proper work life balance to the workers. Company
cannot take out from employees more than eight hours. However legal landscape of the country
is favourable for the company (Sell and et. al., 2018) .
Environmental factors: Environment of the country plays a crucial in the growth of the
country. Climate of the country is exceptionally well. Government are taking initiative for
conservation of environment. Business enterprises in UK focuses on using clean and ecology
friendly process of production. Company has to comply with environmental norms and laws of
the country. Company is required to maintain proper disposal of waste (Gounaridis,
Chorianopoulos and Koukoulas, 2018) .
P2 Application of Ansoff growth vector matrix
Ansoff Matrix
Also known as product/market expansion grid, Ansoff matrix is a vector matrix which
determining the best growth strategy for the business. It proposed four strategies- product
development, market development, market penetration and diversification. The detail description
and application of Ansoff matrix are given below:-
2