Planning for Growth

This document discusses the planning for growth process and the key considerations for evaluating growth opportunities. It also explores the Ansoff matrix for evaluating growth opportunities. The document further discusses sources of funding and their advantages and disadvantages. It also provides guidance on building a business plan for growth and scaling up a business. Finally, it covers exit and succession options for small businesses. The document is based on the case of AZIO, a UK-based SME that manufactures keyboards.

PLANNING FOR GROWTH
INTRODUCTION 4
LO1..................................................................................................................................................4
P1 Analyze key consideration for evaluating of growth opportunities.......................................4
P2 Evaluate the growth opportunities by Ansoff matrix.............................................................6
LO2..................................................................................................................................................7
P3 Sources of funding and its advantages and disadvantages.....................................................7
LO3..................................................................................................................................................9
P4 Build a business plan of an organization for growth and scaling up a business....................9
LO4................................................................................................................................................12
P5 Exit and succession option for small business with its benefits and drawbacks..................12
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Planning for growth is that kind of process in which financial progress is planned through
keeping in mind all business activities that are going within an organization. Also resources used
for these purpose are being managed as per the market. Analysis is done for making an
organization growth its business at faster rate. Strategies are formed by an SME as per this
planning only. Scope of these planning is very wide as they deal with business and its major
activities. Nature is very dynamic due to its ability of impacting an working process of within an
organization. This file is based upon AZIO which manufactures keyboard and is an UK based
SME. Things to be covered in this file are analysis of growth opportunities that is required to be
followed by them and also risk involved in it. Further funding, dealing related to planning of
growth and its scaling is going to be covered. Lastly cause of action is going to be covered.
LO1
P1 Analyze key consideration for evaluating of growth opportunities
As in today’s world business environment is required to earn profit and grow itself by
selling of products and services to its customers. It is very important to perform evaluation of
growth opportunities for an SME company. In AZIO manager is needed to evaluate growth
opportunities in order to become successful in market. To gain this objective that organization is
required to innovate its products and explore the market in new or local area. Bosatn consultancy
mode is used for this purpose and it has been explained as follows
Bostan consultancy group matrix
BGC matrix has been given by Bruce Henderson in the year 1970. This matrix has
helped in planning for long-term and gives information regarding product and services upon the
basis of its performance in market. Such matrix helps in knowing potential of the product. It is
based in product (Pennock, Poland and Hancock, 2016).
 Stars product- These are that goods and services that has been related from high growth
with hike in shares. Position is maintained through earning ample amount of money
through product selling. In relation to AIZIO star product is key board which provides it

more profit and large market. The very first priority of the organization should be its
keyboards for maintaining of star quadrant to increase its sales.
 Cash Cows- This has been related to product matrix and the product contains less growth
in the market with higher market share. Organization should divert profit from cash cows
in order to help in defending of market share. In relation to AZIO electric keyboard is
considered to be its quadrant. As it is providing less growth and higher share. Question mark- Another name of this is problem child in which goods in high market
growth is there with low shares. In this quadrant is in weak position within the market
due to low shares. In relation to AZIO product like electric key board and wooden
keyboard comes under this category. Manager should put more innovation in the products
to make a star product.
 Dogs- These are the products which are having low growth and low share in market.
Such product is waste for company and manger divest in product. In relation to AZIO
typewriter style keyboard is a waste product for organization. Manager has decided over
controlling of production of this product and divests it from range of keyboard. Then
growth opportunities can be evaluate by removing the product (Liu and et. al. , 2017)
(Park and LaFrombois, 2019).
GE Matrix It has been developed by McKinsey and company consultancy group since 1970.
Another name of this is nine grids that is based on industry attractiveness and business units.
This is an improved version of BGC matrix. This used by manger of AZIO to analyze industrial
attractiveness and has been explained as follows:
 Invest/ grow- This cell has been considered as the high industry attractiveness and high
business unit. This includes star category product that has been covering high market
growth. Regarding AZIO more investment is required to be done upon keyboards design
and technology this is going to help in share and profit. This is helpful in maintaining
growth. Hold/ selective- This cell GE matrix is included under mark product that is helps in
maintaining of growth rate at higher level. Both attractiveness and strength is medium in
grid cell industry. As per AZIO manager has suggest the market for selecting of the best
feature and become a offering star product. Innovation is required in product.

 Divest/ harvest- Grid has been included in the poor performance of business units and
unattractive industry. This is related to dog category product of BCG matrix. In relation
to AZIO manger is required to divest from typewriter style keyboard and has to focus
upon electric style of key board. They generate losses and reduce the market share and
market growth. Avoid manufacturing of tobacco help the company to invest in other type
of product range so they will earn more profits and revenue.
P2 Evaluate the growth opportunities by Ansoff matrix
Ansoff Matrix
It is a planning that is done through strategy tool which is helpful for manager, senior
executive and marketers. This has been proposed Russian American Igor Ansoff. Under this two
quadrants are there product and market. In product quadrant new and existing product has been
market quadrant includes old. Four stages are there that is product development, market
development, market penetration and diversification. In relation to AZIO managers is going to
use this theory for increasing profit and growth of firm:
 Market penetration- As per this quadrant, company uses product offering in existing
market. Manager has plan for increasing of market shared is by using market penetration.
In relation to AZIO manager has to sell its existing product in market by using strategy.
This is done to increase and cover large market shares within existing market condition
(Kim, Jeong and Yoon, 2016). Product development- This is the strategy that is belonging to the category in which organizations
decides to sell its product in existing market. In such company has full knowledge over
current market and according to this only innovation is done. IN relation to AZIO
managers suggest to develop their product fro existing market. In this existing market for
increasing customer base and is needed to innovate product like electronic keyboard. In
today’s world people is majorly focused upon their health and they are conscious about
technology. So a product as per the needs is required to be developed. Market development- This is that strategy which is belongs to such criteria where an
organization is to enter into new market with its existing product for earning of profit.
Also helps in revenue increasing. It is also used for expanding of market in different

locations, segments of customer and various regions etc. Manger of AZIO can expand its
business to an entire new market through operating of this technique like entering into
new domestic market, entering into foreign market, creation of different customer
segment. As per this manager of the organization adopts entering into foreign market.
 Diversification- This is related to a risk strategy in which an firm has entered into new
market with the new product. Two types of diversification is there which are related and
unrelated. Manager of AZIO is going to use the strategy for expansion and growing
business by utilizing of new product in new market. It is risky as the organization does
not know about innovation product and loyalty of customers. Under this manager is
required for appointing of a expert which is giving full information regarding innovative
things as per market.
From the above product strategy, AZIO is going to follow the product strategy which is going to
develop strategy in which new product is going to be launched related to beverages. Expansion
of business in the existing market with new product is the most appropriate technique which is to
be used by organization. in this needs and wants are being examined and accordingly new
product is develop that is electronic keyboard with the product name “electro” they highlight and
target those people who are conscious about technology. Because of this they earn more
revenues.
LO2
P3 Sources of funding and its advantages and disadvantages
Finance is one of the most important parts of a business and without this no function can
be performed in an organization. In relation to AZIO company has to examine sources of fund
like:
Internal source of funding- This is less risky for generating upon funds. It has been involve in
some advantage and disadvantage that has been explained as follows:
Benefits- Internal source of funding has been generating capital upon urgent basis or
immediate basis and this does not involve any interest rate and this is more flexible in nature for
an organization (Holz-Rau and Scheiner, 2019).

Drawback- the major problem that holds internal source of funding is that its impact
negatively on the operating budget.
External source of funding – It refers to that type of source of funds that can be raised by a firm
from outside the business. These sources are very effective and related to long term operations
activities. AZIO, manager use and raise funds from the external source. Some of this are
explained below.
 Bank loan-. It is very useful for the business when they plan to innovate new product for
expanding and exploring the business. In this bank fix the period of time on the basis of
this firm repays the amount with interest rate. It is generally for 3, 5 or 10 years.
Pros of bank loan – The major benefit to raise funds from banks is that they provided
fixed interest rate with a predictable monthly payments so there is no burden on the firm..
Cons of bank loan- Bank loan involves major or lengthy paper work from saving this
paperwork company ignores to using it.
 Crowd funding – It refers to that funds that are raise from large number of audience with
the use of vast online networks like social media, crowd funding websites. This helps the
investors and the businessman together to expand and increase their circles by using this.
It includes some advantages and disadvantages that are given below.
Advantages- Major benefits of crowd funding are that in this firm easily raise funds with
no upfront fees. In this a person can easily share ideas and give feedbacks and expert guidance to
improve it.
Disadvantages- the major risk in crowd funding is that when the project is failed than it
destroy the image of the company. In this there is a fear of creeping the idea because there is no
right of using patent and trademark right (DODDS, DIMANCHE and SADOWSKI, 2018).
From the above maintained source of funds AZIO use bank loan method to raise funds for their
new product “electro” which is electronic keyboard. Using bank loan for the product
development is the best idea because it is very secured type of loan and contains a fixed rate of
interests that does not create any burden on the firm because there is predictable monthly rate is
decided.

LO3
P4 Build a business plan of an organization for growth and scaling up a business
Business plan is that kind of documents that is written in form and has been related to the
nature of business, its financial position, strategy of marketing, sales, profit and loss statement is
also included in it. This has to be focused over both internal and external factors. In strategy of
an internal nature this plan targets that goals which has to be achieved immediately and this is
going to be helpful in making achieving of external goals. An extrinsic business plan outside
stakeholders has to be focused upon. AZIO is an SME that is full fill over extending of its
business into various market that consists of existing product of it. In order to full fill this
manger of the company can make a business which is going to help in operating their business
with is services.
AZIO: This is an UK based company that is known for selling of keyboard as its main
product. This company provides one of the best keyboards and other electronic gear. This is
there to achieve goals and objectives setup for capturing of large market.
Vision and mission: Vision of the company is to create an influence over those people
and communities of larger nature. This is achieved by providing those best services to its
customers. Mission of the company is to achieve its vision this can be achieved by creating
efficiency in its services and providing better products. It has to satisfy needs of its customer.
Corporate values: As per this the value is an effective as they are going to be helpful in
creating a connection of the customers through fulfilling of preferences. For achieving of balance
is profit earning and quality of product is to be maintained.
Stakeholder’s exceptions: Stakeholder are the persons that is there to handle investment
of an company. These are for the purpose of investment and except returns in investment. This
strategy of developing a product leads towards new product that has to be brought within
existing market and this is effective for an organization in terms of profit growth (Colantoni and
et. al., 2016).

Entrepreneurial Strategies: In this an organization has to be operated within new
market of countries like France, Germany and USA that is an existing product. Operation of
these businesses is able to attract new customers in market.
STP: In this an AZIO is going to utilize targeting, segmenting and positioning because
these strategy has been going to be very helpful within consideration of new products into
existing market.
Segmenting: At this stage division takes place into various segments which are having
an uniform characteristics. AZIO is required to segment targeted market on the basis of its
characteristics and geographical nature.
Targeting: AZIO has to target various strategies in market. In order to introduce this on an
international market.
Positioning: AZIO has a position to its vintage products and opens accessible stores that is
going to be helpful in advertising its product and help in market capture.
Marketing mix: In these mangers has to play a very important role. These are to be used for
examine of product price of the new areas for setting up of market.
Financial information: Launching of a product within an existing market. AZIO has to analyze
its finances.
SWOT Analysis
Strength Weaknesses
The biggest strength of AZIO is uniqueness of
product that attracts lot of customers. This
helps in increasing sales of company which
eventually provides profit to organisation
(Cobetto, Aubin and Parent, 2018).
Biggest weakness of AZIO is that it lacks
innovation which makes it rigid towards
flexibility in market. This creates decline in
percentage of customer.
Opportunities Threats
AZIO being a new entity has an opportunity to
attract customers through its product.
AZIO should be aware of its competitors
present in the market as they can affect it sales.

Evaluation: Doing monitoring and evaluation in an business analysis is for growth and
sales of an company. Modification of customers base is also been achieved due to this.

LO4
P5 Exit and succession option for small business with its benefits and drawbacks
Acquisition: This is an outline in which a whole part of shares and assists has to be
purchased by an organization. Permits buyer within an organization to take certain decisions
upon operations that are related to sellers in an organization without taking permission of an
capital investors. Adopting of these method AZIO can face some advantages and disadvantage
Advantage : In this is that it enhances attainment of resources that is going to help in
broadening of business. New work force helps into entering of business and leads towards
generation of new ideas (Arku, Yeboah and Nyantakyi-Frimpong, 2016).
Disadvantages: Cost involved within acquisition is a very huge for AZIO and
loss can be face by them. Conflict can arise in AZIO due to difference in customs and belief’s.
Merger: It is the procedure of integration on one company into another that is going to
enhance their operational capacities and also productivity. This can take place between two
companies which is going to carry business for identical business lines. AZIO can face both
advantages and disadvantage from this that is as follows:
Advantages: It is going to encourage cost savings that is leading towards economic
scale with high amount of profit. Also creditworthiness of AZIO is increased and also its
financial resources.
Disadvantages: Merger is an effective set of mind in which an ultimate customer can be
impacted negatively, if companies are from different background or geographical area. This can
also lead to reduction of job.
AZIO should adopt acquisition as they have to introduce its product within an existing market.
This can be achieved through improvising the product.
CONCLUSION
From the above file it can be concluded that planning for growth is an very much
essential term that is used for growth of business. AZIO is required to carry evaluation of growth

through BCG or GE matrix which enhances growth opportunities of firm. Further they evaluate
their business through profit and maximises it for an organizations manager. Ansoff Matrix has
been used for identification of strategy suitable for growth of an organization. In the end exit
opinion has been given for SME when profit is not earned by them.
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