Planning for Growth: Evaluating Opportunities, Funding Sources, and Business Plan Design

Planning for growth

Table of Contents
PART 1.........................................................................................................................................................3
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities ......................................................3
P2 Evaluate the opportunities for growth applying Ansoff growth vector material................................5
TASK 2..........................................................................................................................................................7
P3 Assess the potential sources of funding available to businesses .......................................................7
Based on all of the available sources of funding, it is clear that bank loans are the best option for ZAGAS
since banks can supply them with fixed-interest loans for both long and short periods of time, making
them more secure. As a result, the company can take bank loans as needed (Rijal, et. al., 2018)..............9
TASK 3..........................................................................................................................................................9
P4 Design a business plan for growth that includes financial information and strategic objectives for
scaling up a business................................................................................................................................9
PART 2.......................................................................................................................................................11
TASK 4........................................................................................................................................................11
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks of
each option............................................................................................................................................11
CONCLUSION ............................................................................................................................................12
REFERENCES ..............................................................................................................................................14

PART 1
INTRODUCTION
Every organization seeks to boost their efficiency by improving their operations, and
planning is believed to be the most successful technique for achieving increased profitability and
growth. Small, medium, and large-scale businesses are all operating, and they are all
concentrating on m Strategic planning assists the organization in meeting its innovation needs
while also assisting in enhancing the company's growth rate. Zoe Allen has opened the ZAGAS
Gallery and Art Studio in the location of central London, where she creates handcrafted products
such as beeswax candles, greeting cards. They are now seeking to expand their business to
larger premises in a less expensive area where they may enhance production capacity by adding
full-time employees asking strategic decisions in order to achieve greater profitability and
success.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities
Planning is the practice of thinking ahead of time so that all of the operations may be
completed in a timely and efficient manner to achieve the greatest possible results in the
business. Every business must assess the numerous potential markets in order to assess the
various chances for expansion. ZAGAS is a small-scale business in London, and they are
currently planning to expand into larger premises in different market of London .
Porter's generic strategy
It is a strategic model that is used to evaluate a huge market's competitive advantage.
Porter provides four parts of this framework for organizations to adopt in order to better
comprehend the market environment and build their business successfully.
 Cost leadership: - It is a strategy that is focused with product costs, and it is
recommended to businesses that they offer low-cost products so that they may easily target a
big range of clients. This approach is being used by ZAGAS in order to attract a big group of
customers by giving cheaper product prices in order to gain a competitive advantage in the
market

 .Differentiation: . Such strategy concentrates on researching high market growth and
evaluating creative items with distinctive features in order to provide high-quality products to
potential clients. It necessitates thorough market research in order to match the shifting
demands of clients. ZAGAS is employing this method in order to attract a big number of
clients and so grow sales and profits. Cost focus: - It is considered as strategy which focuses on understanding the market
requirement and the diverse wants of the customers, and it is concerned with the niche
market and offers low-priced items. ZAGAS is attempting to capture a wide market by
delivering items at lower pricing (Butler, 2019).
 Differentiation focus: - It is a strategy that focuses on providing high-quality items with
distinct features in order to attract loyal customers and get a competitive advantage in a vast
market. The corporation can offer innovative products in the industry with the help of this
technique.
PEST Analysis
It is a framework for studying the external environment in order to cope with the macro
elements of the business environment and accomplish market expansion goals. The PEST
analysis is defined by a number of factors, which are as follows:
 Political Factor –These are the factors, related to legislation, government
stability, corporation intervention, legislations. As ZAGAS is a tiny firm operating in
market of London , it is vital for them to observe all of the country's rules as well
as regulations in order to make the most use of their resources (Cleberg, 2019).
 Economical Factor - These are the variables, which include the rate of inflation, the rate
of foreign exchange, the economy's recession, and the rate of unemployment. The United
Kingdom is a financially robust country, but the massive impact of Brexit has had a negative
influence on businesses and the country's economic growth rate has slowed. Social Factor –These are the aspects that encompass societal social attitudes and
customs, as well as cross-cultural activities. ZAGAS is focusing on diverse religious
groups, as well as education standards and literacy rates, in order to reach out to
individuals of all ages in society.