Planning for Growth

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