Planning for Growth Evaluate Opportunities
Added on 2020-10-22
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Planning for Growth
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1 ...........................................................................................................................................1P.1 Key considerations that SME's can consider in evaluating growth opportunities...........1P.2 Evaluate opportunities of growth by applying Ansoff's growth vector Matrix...............4TASK 2 ...........................................................................................................................................7P.3 Potential sources of funding and benefits and drawbacks of each option........................7TASK 3 ...........................................................................................................................................9P.4 Business plan for growth of business...............................................................................9TASK 4 .........................................................................................................................................12P.5 Succession and exit plan for small business with the advantages and disadvantages ...12CONSLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
INTRODUCTIONPlanning for growth is a method in which different plans and policies are developed sothat company can improve their business operations (Barbour and Deakin, 2012). It allowsbusiness to allocate their resources in different fields and firm can perform all activities inproper manner. The strategies and tactics included in growth plan focuses on important driversof revenue generation. Report explains about “Stonehouse Limited” which deals with internaland external maintenance and decoration. Assignment describes about evaluating keyreconsideration's that SME's can consider while evaluating growth opportunities. It explainsabout the methods through which company can access funds and different sources of fundswhich are available for company. This discusses about developing business plan andcommunicating the methods to scale up a business. It describes about different ways throughehich a small business owner can exit business and implications of each option. There is a Government Contract of internal and external planned maintenance,decorations and minor works to five sheltered accommodation schemes. The bid does notexceed £300,000. TASK 1 P.1 Key considerations that SME's can consider in evaluating growth opportunitiesThere are different considerations that SME's can consider so that there is growth of thecompany. This is important so that there is development and success of firm. Key considerations considered by Stonehouse Limited are described below:Resources: Stonehouse Limited has adequate resources to run the operation's andactivities in proper manner. For example: organization uses good quality of materials so that firmcan create strategies to decorate the rooms in parties. They arrange and maintain all things suchas food, decoration etc. Capabilities: Company has different and unique capabilities in which it can decoraterooms in effective manner. This helps the organization to earn huge revenues. For example:Stonehouse Limited have distinct capabilities and they arrange all things in time so that peopledo not face any problem. This helps the firm to give strong competition to other firm's. Core competencies: These are the unique selling proposition through which organizationcan increase their sales and can enhance the market share (Brinckmann, Grichnik and Kapsa,2010). For example: company have a core competency that it can decorate the rooms for parties1
and other occasions in proper manner. Firm do not perform wastage of resources and this resultsin increasing the productivity. This helps the company to earn more revenues (Burton, 2010). Porter's generic strategy is described below (Porter's Model of Generic Strategies forCompetitive Advantage, 2018):Cost leadership: Cost leadership is the part of marketing strategy which is highlyeffective in acquiring market share and also framing the customers attention. Main goal is todecrease the cost of operational and other process. This results in increasing the efficiency andeffectiveness level of firm. For example: Company creates strategies and policies to reduce thecost of all operational and other methods so that they can earn huge revenues. It directly assiststhe firm to perform activities and tasks in proper manner. Stonehouse Ltd. can decorate therooms in all parties and arrange all things in effective manner. Differentiation: This define as the development of products and services which offerunique attributes that are valued by customers. Company creates plans and policies so that theycan provide different and unique services to all people. This directly assists the form ingenerating huge revenues. For example organization has provide rotational stage and classicalmusics band in marriages. This helps in increasing the satisfaction level of all people. This helpsthe enterprise to maintain good image in minds of all people. Cost focus: This strategy require competition based on price to target narrow market andthe company are focus on target segmentation. It is an effective technique in which companyemphasis its cost and this resultant generating of huge revenues and enterprise can enhance themarket share. For example. firm has targetted on particular section of population i.e. youngpeople and adults. It decreases the cost of decoration services and maintenance services. Thisdirectly helps the company to enhance the revenues and to increase the market share. Differentiation focus: It is that strategy which target small groups or segments ofcustomers with differentiation products. Company is targetted to particular section of population.For example Stonehouse Ltd. provides unique and different decoration services to all people.This helps the firm to fulfil needs of all people (Chapin, 2012). This assists the firm to maintaingood image in minds of all people and they can enhance their reputation. PESTEL analysis of Stonehouse Limited are described below:2
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