Planning for Growth

PLANNING FOR GROWTH

INTRODUCTION...........................................................................................................................5
LO1..................................................................................................................................................5
P1 Analyzed key consideration for growth and opportunities.....................................................5
P2 Evaluate the growth opportunities by Ansoff matrix.............................................................7
LO2..................................................................................................................................................8
P3 Sources of funding and its advantages and disadvantages.....................................................8
LO3..................................................................................................................................................8
P4 Build a business plan of an organization for growth and scaling up a business....................8
LO4................................................................................................................................................11
P5 Exit and succession option for small business with its benefits and drawbacks..................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Planning for growth is considered to be an essential element related to growth of an
organization. Such plans have an impact upon the developing phase of a business within the
market. It has also played an important role in generation of profit in an organization. Changes
are being made as per adoption of resources that has been taken care under this strategy. Oak
cash & carry is an SME company in UK it was formed in the year 2000. It deals with products
and services related to foods, tobacco and offer variety of products for retailers, caterers, offices,
news agent. This report is based upon growth of opportunities in a firm and also various methods
of sources and funding to build a business plan for increasing of growth through profit margins.
Lastly suggest they exit option for firm.
LO1
P1 Analyzed key consideration for growth and opportunities
In today’s environment every business is required to earn as much profit as possible and
growth rate should also be high. It can be done only by selling of products and providing services
to its customers. This is one of the most important terms and is responsible for generating of
growth opportunities within an SME. Inn oak cash carry managers are required to make needed
to do this evaluation as growth opportunities is going to be helpful in long run. Innovation of a
new product for expansion and exploration in market and its new areas is achieved. For examine
the opportunities in growth manager is required to use Bostan consultancy group which has been
explained as follows:
Bostan consultancy group matrix
BGC matrix has been formed by Bruce Henderson since 1970. This matrix has helped in
long term strategic planning and helpful in gaining knowledge over product and services upon
the basis of low and high performance of it. This matrix is going to be very useful for analyzing
of growth potential of an product. It is based upon products quality also (Jentoft, 2017).
 Stars product- These are the those goods and services which is related towards high
growth through high shares in market. In relation to Oak cash & carry. Star products
includes with groceries which helps in consuming of major amount of profit. In this
organization should make top listed products for the groceries that is helpful in
maintaining of their market shares of goods in star quadrant.
 Cash Cows- The product matrix is related to that kind of product which contains low
growth in market with higher shares. In oak cash & carry BBQ and is considered within

this quadrant. This leads to low growth with higher market share. Evaluation of growth
opportunities can be generated through little investment. Question mark- This is known as problem child also under these high rate of growth
market with low share is there. Regarding Oak cash & carry product like beverages is
related to this category. Evaluation of growth opportunity within the step manager is
required to invest in beverages.
 Dogs- This are those products that are low growth and low market share. In Oak cash &
carry Tobacco is the product that is waste for the firm. Manager decides to control the
production of this product and divest it from the range entirely. In this quadrant manager
can evaluate the growth opportunity by removing the tobacco from their product range
and invest more on star product so they earn more market share and market growth.
GE Matrix
The matrix has been develop by McKinsey and company consultant group since 1970s.
This is also known as nine cell grid that is based upon industry attractiveness. In oak cash &
carry, manger has been used in this matrix for analyzing the business units and has been
explained as follows:
Invest/ grow- This cell has been considered as an high industry attractiveness and high
unit of business. Under this star category product has to be included that helps in generating of
market growth. In context to Oak cash & carry, company invests more upon groceries product
because their share and growth is high. As, groceries is that product which earns more profit and
share. Difficulty is there for competitors for beating its product within market (Jafarnezhad,
Salmanmahiny and Sakieh, 2016).
Hold/ selective- This cell of the matrix involves question mark upon products whose
growth rate is high and market share is less. As per the grid cell industry attractiveness is
medium and strength is also average. In oak cash carry, manager suggested for holding
market and selecting of best features from becoming of an offering a star product.
 Divest/ harvest- This grid includes the poor performing business units and unattractive
industry. This cell is related to dog category product of BCG matrix. In context of Oak
cash & carry, manager needs to divest from the Tobacco product and harvest on groceries
and beverages. This type of product does not satisfy the consumer demand as well as
harm the environment. They generate losses and reduce the market share and market