Planning for Growth Assignment - Azio company
Added on 2020-10-22
15 Pages4142 Words457 Views
Planning for growth
Table of Contents
INTRODUCTIONPlanning is the process of identification various approaches that are effective forexpansion and growth of company. Company has main purpose of performing activities that areimportant for development (Allmendinger, and Haughton, 2012). This report is based on smallmanufacturing company Azio which is established in UK and produces different type ofkeyboards such as wireless, gaming keyboards, designer keyboards and also offers various kindof earphones. This report contains key elements that are helpful in growth of business and attainsthe competitive advantage. Pestle analysis help in minimizing the threats and maximizeopportunities. Porter's generic model also consist in this file which tells about competitiveadvantages over rivalry along with Ansoff's matrix i.e. utilised for determining growth options.Business plan is also discussed in project which provide the strategic objectives of firm. This filealso contains various sources of arising fund and about exit & succession plan that helps ineffective business operations.TASK 1P1. Key concept which provides options of business growthPlanning is very essential for achievement of an organisational goal. Planning processstarts with analysing current operations and identifying what is to be improved in future.Business growth is stage where business reaches to the highest level of expansion and wants toadd more option to generate maximum profit. Azio is keyboard manufacturing company, whichcan expand their business by producing other related products like mouse, monitor and manymore.Competitive advantages:This is a favourable position of an organisation that helps in becoming more profitablethan its competitors. There are different resources that are required to perform businessoperations which seeks to attain targets (Berger, and Berger, 2011). Azio has various factors thatare useful for making effective changes in business operations. For achieving competitiveadvantage, there are some elements that are as follows:Resources: This is tangible tools that are used by organisation to differentiate their product fromothers. Azio uses advance technology and exclusive design with premium materials andintuitive functions that seeks in achieving competitive advantage. 1
Capabilities: Azio has high skilled employees and experts that helps organisation in achievingobjects and it also provides edge over rivalry. Core competencies: This is mixture of multiple resources and skills which differs a firm fromits competitors. Azio uses updated technology and skilled worker that helps in productionprocess. Company has variety of keyboards by which they can satisfy demand of customers.Porters generic model:This strategy can be used for identifying the direction of an organisation. Porter givesfour strategies that company uses for achieving sustainable competitive advantage (Blackburn,Hart, and Wainwright, 2013)The four strategies are as follows:Cost leadership: This strategy focuses on the broad market and offer the lowest price totheir customers. There are two options that can be selected by firm that is to keep theprices low or assure large market share with average price. If Azio opt this strategy thanthan they must focus on large market and offer low prices of their commodities.Differentiation leadership: In this strategy of Porter, company targets the broad marketby offering unique features of their product. This strategy helps in making product moreattractive than their competitors. Azio must select this option as it helps in expansion andgrowth because it concentrate on large marketplace and provides unique features in theirproducts.Cost focus: This strategy concentrate on niche market that is focused or less competitivemarket and offers the lowest price to their ultimate customers. Under this strategy,company can understand dynamics of market and also produces product according to thedemand of customers. If firm use option than they have to offer low prices to therecustomer which helps in increase the sale of company.Differentiation focus: In this strategy, company target on focused market and offersunique features in their product and services (Crow, 2011). It is very essential to ensurethat the product remain unique to stay away from their rivalry. Azio choose this strategythan company offer product with unique feature in niche market.Azio uses 'differentiation leadership strategy' of Porter's generic model in which companyfocuses on broad market and offers unique features in their products. This helps organisation forexpansion and growth in effective manner.2
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