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P1 Key considerations for evaluating growth opportunities and competitive advantages

   

Added on  2021-02-20

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Planning for growth
P1 Key considerations for evaluating growth opportunities and competitive advantages_1
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1 ................................................................................................................................................1P1 Key considerations for evaluating growth opportunities and competitive advantages..........1P2 Evaluation the opportunities for growth by applying Ansoff growth vector matrix..............3LO 2.................................................................................................................................................4P3 Potential source of funding available to businesses by discussing benefits and drawbacks. .4LO 3.................................................................................................................................................6P4 Business plan for growth that includes financial informations and strategic objectives........6LO 4.................................................................................................................................................7P5 Assessment of succession or exit options for a small business explaining benefits anddrawbacks....................................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONGrowth planning is a strategic business activity that make managers of the company ableto plan and track organic growth. This present study is based on change Please coffee cafe thatis a social enterprise and get an award for the best social enterprises. This report is going to showdifferent evaluation of external factors for small and medium size businesses. The main aim ofthe company to use all strategies and models is to reduce negative impacts of factors and increasepositive impacts for being in a competition (Wu, 2015). There are different sources of fundingand finance by which this cafe can get various opportunities and make financial and investmentdecisions. Further it will also discuss about business plan for growth which includes financialinformations and strategic objectives.PART 1P1 Key considerations for evaluating growth opportunities and competitive advantagesThere are several factors that can affect small and medium size businesses, so it isimportant for them to consider all factors in order to become in a competition and for becomingthe market leader. There are various external and competitive factors that is essential for smalland medium size organization and Change Please Coffee cafe. With the help of Porter's genericstrategy it can evaluate all factors:Cost leadership: This is the strategy of taking competitive advantages by becoming thelowest cost producer in the same industry. The main aim of becoming a low cost leaders is toincrease sales and profitability. By focusing on this strategy, Change Please coffee companycan increase its market shares.Cost focus: In this type of strategy there is a requirement to focus on a narrow segmentand in that segment try to achieve a cost advantages and differentiation. By focusing on a narrowmarket, Change Please company can get competitive advantages by offering the lowest possibleprice (Wynn, 2017).Differentiation focus: In this strategy, companies require to more focus on developmentof products and services. For making this strategy successful, the company requires involvingunique features in their products and services in order to make their products different from theircompetitors. Change Please company can easily attract and increase a wider range of customerstowards their products.1
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Differentiation leadership: In this strategy, the company requires targeting largermarkets with the main aim of achieving competitive advantages. In this strategy, the companyrequires to target a broad market with having high demand. It is also required to include someunique features in products and services for making products more attractive than comparableproducts which are being offered by competitors.With the help of PEST analysis also Change Please coffee can identify all externalfactors:Political: It includes several factorssuch as tax rates, employment laws that can hevimpacts on the operations of the company in positive and in a negative manner. Political stabilityand unsuitability of the country in which the company wants to operate also can impact onperformance level of this company. Instability can create riots and conflicts which can decreasecustomers demands (Barba and et.al., 2016).Economic: It includes local currency exchange rates, taxation levels and economicenvironment in different markets. Rising labour and operational cost can increase the overall costof the company which can have impact on its profitability. So it is important for Change pleasecoffee company to consider this factor.Social: It includes consumer preferences, changes in lifestyle of population and changingvalues among population. People are getting more aware and health conscious, so they want onlyhealthy food products and drinks. So it is also important for the company to focus on satisfyingcustomers needs.Technological: Technological factors also have great impacts on the companies in thisindustry. There are several companies who are more focusing in technologies and invest intechnologies in order to get competitive advantages. By more focusing in technologies, Changeplease company can attract wider range of customers (Wicker and et.al., 2015).GE McKinsey MatrixIt is an effective tool that can help small and medium size businesses by offering asystematic approach for the multi business corporation to prioritize investments among itsfunctional business unit. It has some factors that can affect market attractiveness and need to beconsidered by Change please coffee cafe like market size, competition level, demandvariability, pricing trends, market profitability trends etc.2
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