Planning for Growth Assignment - ABC construction Ltd
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Added on 2020-10-05
Planning for Growth Assignment - ABC construction Ltd
Added on 2020-10-05
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Planning for Growth
INTRODUCTIONPlanning is necessary for every business in order gain higher growth and success. It is astrategic business functions which enable company owners who are plan and analyse the successfor increasing income or revenue (Eddleston and et. al., 2013). Company perform variousfunctions and activities for attaining high income in the market place such as developingstrategies and plans which help in reaching with desired goals and objectives. The project isbased on ABC construction Ltd which work to reconstruct the existing buildings that is situatedin United kingdom. This business venture is planning to bid for the demolition of building andreconstruction of replacement building. The main motive of this assignment is to identifyinggrowth opportunities for the business and analyse various sources of funds. Along with this,assess the succession option which help in expanding business in other areas. TASK 1P1 Analyse the key consideration for evaluating growth opportunities and justifyEvery small business seek to enhance its growth by identifying various opportunitieswhich help them in gaining additional income or revenue. Business is required to developstrategies and plans that assist them in reach with high position in the market place. Thecompany have identified various opportunities in order to reach with their set goals and targets.Bid is very effective factor which assist in providing great opportunity for small businesses toenlarge their operations. ABC construction is the firm which demolition of an existing buildingand the construction of a replacement building with London Borough of Hillingdon. This is thesmall company which try to expand their business operations and functions by analysing variousopportunities factors that are described. Competitive advantages– It is term as the condition which allow firm to manufacturevarious buildings and houses in different areas. This situation help in generating moreprofitability as compared with their competitors (Mahmoudi and et. al., 2013). Competitiveadvantages have variety of factors which includes cost structure, the quality of raw material,design, structure, and facilities. ABC construction Ltd use best quality raw material fordeveloping building as comparison to their rivals, that will lead towards gaining high profit andcreate competitive advantage. Along with this, firm analysing their competitors bidding contract1
where they gain higher growth opportunities. After this examination, they are make properimprovement in their work and find out their weak point by which they lose certain bidding. Porters generic strategy:Every business organisation using various strategiesfor gaining competitive benefits.Such policies are related to the extent where scope of business activities and functions areconstrictive and on the other hand, business want to differentiate its goods in various segments.There are four types of porters generic strategy which are described as follows:Cost leadership – In this, company set out to become lower cost manufacturer in thissector. The sources of cost are totally depend on the varied and structure of the industry. A lowercost producer find out and exploit all the sources of cost advantages (Valler, Phelps and Wood,2012). ABC construction Ltd are offers lower cost manufactured building for gaining attentionof people in order to higher its growth level. They are lower their bid price so they can acquiremore projects for developing buildings. ABC construction can achieve cost leadership byproviding services at lower costs. Differentiation – A firm seek to provide differentiated services to their customers. Theyare selecting one or more design which differ with their competitors so they can easily reach withhigher position in the market place. Company is using quality based material while structurebuildings that is totally different from their rivals. ABC construction Ltd achieve differentiationstrategy through which they are designing different building structure. Under this contract, firmis developing unique design of building which high its growth and provide more opportunitiesfrom the other contractors.Focus – This strategy is mainly concentrate on niche market and within this are theyreach with cost advantages or differentiation. The firm are using this strategy for gaining highdegree of customer loyalty and this established loyalty demotivated other organisation fromcompeting directly (Kraaijenbrink, Ratinho and Groen, 2011). ABC construction Ltd are usingthis strategy for focus on their target customers and segmented area. Cost focus – In this, firm seek a cost advantage in their target segment. They are mainlyconcentrate on specific price value on which they are offer services to their customers.ABC Construction Ltd have emphasized to serve customers with the services which arecost effective when compared with rival businesses.2
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