Planning for Growth: Key Considerations for Evaluating Growth Opportunities

Key considerations for evaluating
growth opportunities
It is very important for all those
company which is dealing in competitive
environment to analyses as well as
evaluate each and every factor. For this
Guildford Tyre Company needs to develop
better business strategies that will lead to
evaluation of all growth opportunities that
is available in market area. Respective
company is dealing in small scale business
sector which is highly competitive. It is
essential to develop a better and strong
plan that with lead to growth and
development of organization. Guildford
Tyre Company will be able to grow its
business when it is providing high quality
products and services to customers. This
will help in gaining competitive advantage
over other rival companies.
For foundation of growth,
Guildford Tyre Company needs to
analyses as well as evaluate its position is
market area as well as values in respective
industry. This will help in determining the
actual value of company as well as identify
new and innovative way that can be used
by company in order to enhance its
performance. For this respective company
should use Porter's Generic strategy model.
This will help in understating the market
environment as well as developing better
business strategies.
Cost leadership – This strategy is
useful for company to create a strong
position in market area. By developing
cost leadership strategy Guildford Tyre
Company will be able to gain competitive
advantage over other rival companies. In
cost leadership strategy respective
company needs to offer its products and
services which is comparability lower than
rival companies. This strategy will help in
attracting more and more customers
towards business as this company will be
able to full fill their need and requirement.
Cost leadership strategy will be helpful in
growth of organization as thought this
respective company will be able to
enhance its customer base.
Differentiation leadership – By
developing differentiation strategy this
company will be able to enhance growth in
its business. This strategy will be useful in
developing new and innovative products
and services to customers. This will help in
attracting customers as well as lead to gain
competitive advantage over other
companies. In order to successful develop
as well as implement differentiation
leadership strategy this company needs to
understand the requirement of customers.
This will help in developing product and
services is lead to meet with the
requirement of customers.
Focus strategy - This strategy is
especially developed to meet with the
needs and wants of customers. Focus
strategy will be helpful when Guildford
Tyre Company is planning to offer its
products and services to specific market
area. In this respective company needs to
Planning for growth

develop strategies that is completely based
on niche market area. Focus strategy is
categories into two different parts such as
cost focus and differentiation focus. In cost
focus strategy respective company needs to
offer its product in different prices to a
particular market area. In differentiation
focus strategy Guildford Tyre business
needs to develop new and advance
products and services as per specific
market area.
After analyzing all of the above
strategies respective company will be able
to analyses as well as evaluate the most
suitable strategy. For Guildford Tyre
Company differentiation focus strategy
will be better in order to enhance and grow
in new market area. This company needs to
develop products and services as per
requirement of targeted market segment.
Competitive advantage with opportunities
for growth
For achieving growth of business in
effective manner, it is essential for
company to analyses as well as evaluate
business environment. For this Guildford
Tyre Company different factors of
PESTEL analysis is mention below in
context of Guildford Tyre organization.
 Political factor- This factor
includes all regulation and policies
that is developed by government.
Political factor consists of taxation
policies, trade restriction, stability
and instability of organization and
many other factors. Respective
company is dealing in small scale
sector of UK. Government or
political party of UK is developing
various plans for growth and
development of small scale
organization. This will help
company to conduct business
functions in better manner.
 Economical factor- This factor
refers to all those factors which are
regulated to economy of country.
There are different economic
factors such as economic rate,
GDP, inflation, disposable
incomes, interest rate and so on. It
is very important for respective
company to analyses as well as
evaluate economic factor in order
to perform business activities in
better manner. UK nation as one of
the growing economic conditions
which will help Guildford Tyre
Company to perform better as well
as increase its sales and
profitability.
 Social factor- There are many
social factors which will have
major impact on organization as
well as affect its business
operations. Social factor includes
population growth rate, attitude,
behaviors of customers,
demographics and other social
factors. This will help respective
company to analyses need and
wants of customers in order to
develop products which is as per
need of customers. Guildford Tyre
Company is developing products as
per need and wants of customers
which will have positive impact
over organization.

 Technological factor- This factor
which have major impact on
decision making as well as
development of strategies. It is very
important for respective company
to use new and innovative
technology which will help
company to perform its business
operations in correct manner. UK
market area has one of the advance
technology which will have
positive impact over organization.
This factor will directly lead to
increase in productivity of
organization as respective company
will be able to develop products in
better manner.
 Legal factor- Legal factors is
majorly related to all legislations as
well as laws that are developed to
maintain health and safety of
customers. This factor includes
discrimination law, copyright,
patent laws, health and safety as
well as consumer protection law.
This will be very helpful in
maintain health and safety of
employees. This company is
following all laws related to
employment and this will help in
motivating employees. This factor
will lead to enhance its relationship
with employees as well as staff
members.
 Environmental factor- There are
many environmental laws and
policies developed by government
of UK. It is important for Guildford
Tyre Company to follow all rules
in order to maintain safety and
security of environment. This
factor is related to weather, climate
conditions, ecological system,
pollution and many other factors.
This will help company to perform
business operations in better
manner. Changes in climate as well
as increase in climate issues can
have negative impact over
organization. So it is essential for
this company to develop business
strategies by considering
environmental factors.
By analyzing each and every factor
of business environment it can be
identified that social and technological
factor will have major impact over
organization. This will be very helpful for
company to develop strategies that will
lead to growth and development of
organization.
The opportunities for growth applying
Ansoff’s growth vector matrix
There are various opportunities
available in market area which will be very
beneficial for respective company to
enhance its business operations. In order to
conduct business activities in better and
effective manner it is essential for
Guildford Tyre Company to develop better
business strategies. This will be helpful
respective company to identify as well as
analyses all possible strategies that can be