Planning for Growth

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse various key considerations by justifying the growth and opportunities of suitable
frameworks..................................................................................................................................1
P2. Evaluate the growth and opportunities for business by using Ansoff growth matrix...........3
TASK 2............................................................................................................................................5
P3. Determine the potential sources of funding which are available for business......................5
TASK 3............................................................................................................................................6
P4. Develop a business plan........................................................................................................6
TASK 4............................................................................................................................................8
P5. Assessment of exit option for small businesses with its suitable benefits and drawbacks....8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning is an important aspect in order to growth for an organisation and also considered
as the strategic business activity which is useful for the owner to develop suitable plans and
policies to achieve success. While doing planning it brings many changes within the functions of
business so, to develop suitable plans and strategies, planning plays an important role (Olesen
and Carter, 2018). This function focuses on the desired business goals and objectives which
provided detailed information regarding an organisation. Here, planning refers to the
enhancement and development of strategies which is useful in analysing and addressing the risk
within the business environment. For this report, small organisations are considered who have
limited area and employees to run their business. Here, Matefile Ltd. is considered which is a
design consultant, incorporated in 2010 and situated in Slough, Berkshire, UK. This report is
going to cover the different topics and also analyse the growth and opportunities by using Ansoff
growth matrix. In addition to this, various sources of funding are described for the success and
expansion of business and business plan is developed in order to provide financial information of
business. At last, exit plan is discussed with its benefits and drawbacks in relation with business.
TASK 1
P1. Analyse various key considerations by justifying the growth and opportunities of suitable
frameworks
Companies use strategies and plans for the achievement of success and growth and these
are developed and make within the written document as it communicate the suitable goals and
objectives (Gounaridis, Chorianopoulos and Koukoulas, 2018). In order to achieve competitive
edge, Matefile should consider many strategic approaches which is useful in achieving
profitability and sustainability for company. For this, two prominent frameworks are used such
as Porter's generic and PESTLE model is used which are discussed as underneath:
Porter's Generic Model: This model is related with the business activities which are
considered as narrow or wide. To achieve competitive advantage, it offer probable benefits and
other concerned services at low cost to their respective customers. For this, three generic
strategies are discussed as underneath: Cost leadership: This strategy describes that to become a leader in the industry,
developed strategy should survive within the dynamic business environment and also
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become the low cost producer to attract customers. In relation with this, company can
target wide market area by offering low prices which helps them in becoming a good
leader (Lê and et. al., 2016). For this, company need to keep its cost low as it helps in
attracting more customers and acquiring wide market area. Here, Matefile can adopt this
strategy by eliminating its cost to make suitable designs as there are many ways such as
produce relevant and innovative goods, outsourcing of goods and so on. Differentiation: It is helpful to be unique and different to attract more and more
customers in relation with their competitors. Thus, to achieve growth company require
excellent uniqueness and creativity which allows them to charge their premium prices to
their suitable products as because of this, potential customers does not get shift from one
brand to another (Sarin, 2019). In relation with Matefile, it is good for company but also
carry suitable risk with it because business environment is dynamic in nature and in
respect of this, company need to control its production procedure and actions.
 Focus strategy: This strategy is classified under two segments which are cost and
differentiation focus. Organisations use this strategy in order to grasp large customer base
and also focus on the target market which relies under various sections. Here, Matefile
can put emphasis on the focus strategy to achieve competitive advantage and its helps in
achieving high customer base. For this, company achieve success in narrow segment and
by developing broad range of products.
PESTLE Analysis: This framework is useful in determining the external forces which
regulate the business environment and to determine it, research and investigation is conducted
for the benefit of company. Matefile, can adopt this strategy in order to determine the external
forces in new market and different factors are discussed as under: Political: This component is useful in analysing the government policies which
influences the economy as it include various policies such as taxation, trade etc. and also
describe the political stability which influences the policies and strategies of company.
For instance, if new policy is introduced within the business environment and
government of UK is not stable then the revenues of Matefile gets impacted by those
policies. Economical: This factor describe the economic performance of company which
influences the profitability of company. Thus, it is important to determine this factor
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