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Planning for Growth Assignment - NM construction company

Added on - 23 Nov 2020

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Planning for Growth
Table of ContentsINTRODUCTION..........................................................................................................................3TASK 1...........................................................................................................................................3P1 Consideration for evaluating growth opportunities with organisational context...................3M1...............................................................................................................................................6P2 Opportunities for growth applying Ansoff’s growth vector matrix......................................6D1...............................................................................................................................................8TASK 2..........................................................................................................................................8P3 potential sources of funding available to businesses and discuss benefits and drawbacks ofeach source..................................................................................................................................8M2.............................................................................................................................................10D2..............................................................................................................................................10TASK 3.........................................................................................................................................11P4 Business plan for growth that includes financial information and strategic objectives forscaling up a business.................................................................................................................11M3.............................................................................................................................................12D3..............................................................................................................................................13TASK 4..........................................................................................................................................13P5 Exit or succession options for SME'S with their merit and demerit...................................13M4.............................................................................................................................................14D4..............................................................................................................................................14CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONPlanning is very essential part of the business. It assist the business in increasing theperformance and stability in the business. every person or firm want grow in their life to movefrom current position. Due to some business growth,society and the nation also develop.Planning for growth is a plan of action which was undertaken to increase the revenue of theconcerned company(Barbour and Deakin, 2012).NM construction is involving in the businessof developing infrastructure of roads, hotels ,dams and so on. Under this assignment, NMconstruction company is bidding a contract for British high commission for a written agreementof fence construction service.This assignment inform about the growth opportunities in the business. It provides asynopsis on ans off growth vector matrix and source of funds with its merits and drawbacks. Italso highlights the business plan through which business able to make strategies and policies.Along with this it convey about the exit or succession options for the small and medium scaleenterprises.TASK 1P1 Consideration for evaluating growth opportunities with organisational context.Planing of growth is performed by every organisation otherwise business not able toachieve its desired position. PESTLE is one of the method through organisation able tounderstand external environment. Under this there is a discussion about the porter generic modeland how it can help the business to expand its firms size.Porter generic modelGeneric strategies can be practical applied to all types of business and products. Throughthis model the business able to know what they can use as competitive advantage over its rivalryfirms. Competitive advantage can be in any form cost, differentiation, focus or in any othermode(Beatley, 2014).The aim of the company is to use this advantage to increase the revenueof the business.In focus strategy consist of two variants focus differentiation and costCost Leadership:This part indicate about the cost which should be low to increase thesale. Cost advantage can be get by using high technology, low cost raw material and by reducing
transportation cost. By following this theory construction business able to survive for longerperiod.Differentiation :This strategy says that business need to modify its product by the helpof creativity and innovation so that they can enjoy competitive advantage over its rival. Thismodification is done by adding some unique feature which was achieved by the research anddevelopment department. Differentiation should be done only on the basis of consumer needsand wants so business can earn high profit(Chen and et. al., 2014).Focus :This strategy focuses on the one or more segment of the market but not the wholemarket with one commodity. Focus is generally on the area or the market segment on which theircompetitor has less concentration. Company can adopt any of the cost leadership anddifferentiation according to preference. NM construction use this strategy for the welfare of theirorganisation. This include two strategies which are given below-Cost Focus :Under this strategy, cost is used to differ or separate particular segment.NM construction can use cost differentiation in some product segment to increase their sale andprofit.For example: NM Construction can use this strategy for segmenting cost that will berequired for operating business in an effective manner. Like funds that will be used for doingmarketing, functions of operations etc.,Differentiation Focus :This strategy is adopted to differentiate the chosen particularsegment from other in respect of product. Separation of the product is done on the basis ofcustomer need.PESTLE AnalysisThis analysis discuss about the external factors of the environment which affect thebusiness in both positive and negative way. External factors are those which make alterationaccording to the situation prevailing in the society. These factors are as follows-Political factor :This aspect include various factors like tax policies,labour law andmonetary policies which create large or big effect on company operations(Eddleston and et. al.,2013).NM construction have to follow all government rules and regulation whether by their ownwill or by pressure. These laws should be followed at the same time when it comes in the societywithout focusing on positive and negative impact.Economical factor :Inflation and recession create a big effect on the business. Wheninflation take place company suffers a huge loss because the product price get increase of same
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