Planning for Growth: Analyzing Key Considerations and Evaluating Growth Opportunities

This document discusses the planning process for business growth, including analyzing key considerations and evaluating growth opportunities using the Ansoff matrix. It also explores sources of funding and their advantages and disadvantages, as well as how to build a business plan for growth and scaling up a business. Additionally, it covers exit and succession options for small businesses. The content is based on the case of AZIO, a UK-based SME that manufactures keyboards.

PLANNING FOR GROWTH
LO1 ................................................................................................................................................2
P1 Analyze key consideration for evaluating of growth opportunities........................................2
P2 Evaluate the growth opportunities by Ansoff matrix ............................................................4
LO2 .................................................................................................................................................5
P3 Sources of funding and its advantages and disadvantages ....................................................5
LO3 .................................................................................................................................................7
P4 Build a business plan of an organization for growth and scaling up a business ....................7
LO4..................................................................................................................................................9
P5 Exit and succession option for small business with its benefits and drawbacks ...................9
CONCLUSION .............................................................................................................................10
REFRENCES.................................................................................................................................11

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 this is that kind of matrix that was introduced by Bruce Henderson in the year
1970. it is helpful in making planning to gain long term gains and provide information regarding
it. This helps in knowing of potential of 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 was given by McKinsey and organization through consultancy group since 1970.
another name given is of nine grids and makes attraction of business unit possible. It is used by
mangers of AZIO in following ways:
 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. Two quadrants are the product and market. With the product quadrant has been existing
to make penetration and diversification possible. In this four stages are there that is development,
market development, market penetration and diversification. AZIO manger is used fro incresing
profit with growth in an organization:
 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 that includes funding is based over generation of capital that on
urgent basis and this has been involving interest rate and provides flexibility with nature in an
organization (Holz-Rau and Scheiner, 2019).
Drawback- Main problem is there for holding internal source which makes funding to be
impacted in negative manner over operations budget.
External source of funding – This is considered as that kind of source which is used for fund
raising by an organization from outside business. Sources has to be efficient and relation in long
term activities of an operation. AZIO manager has to be used fro fund raising through external
sources. They are explained as follows:
 Bank loan-this is being used for an business that has been planing innovation through
new product in order to expand and explore business. Under this an band is fixed over a

period of time that is based upon repayment of amount with interest rate. This in general
time period 3, 5 or 19 years.
Pros of bank loan – main benefits of fund raising through banks is that they are being
provided with fixed rate of interest that is predictable through doing payments over monthly
basis so as there is no burden over firm.
Cons of bank loan- Bank from loan involves lengthy paper work over saving paperwork
within an organization through ignoring of using it.
 Crowd funding – this is refereed to the raising of fund that has been helping audience to
create a vast view over online network like social media, crowd funding. It has helped the
investors and businessman for expanding and increasing of circle. Some advantages and
disadvantages are explained as follows:
Advantages- Main benefits of crowd funding is related over raising fund with no fees.
Under this an person is able to share ideas and giving feedback with expert guidance for
improving it.
Disadvantages- Main risk is over crowd funding is that project failed is nresulting into
destroying image within an organization. In this an fer is there for using of ideas with no right to
use patents and trade marks (DODDS, DIMANCHE and SADOWSKI, 2018).
From the above min source is through funds AZIO to use bank loans that has mentioned
over raising of funds with new product that is there to provide best idea that is secured kind of
loan over the product. “Electro” is the new product that has to be launched by using of bank loan
product development is going to be possible.
LO3
P4 Build a business plan of an organization for growth and scaling up a business
Business plan are considered to be that kind of documents that is present in written form
and is in relation to the nature of business, financial position, strategy with sales and profit. In
this the focus is over plan that helps in achieving of goals in immediate manner and is also

helpful in attaining of external goals. In Extrinsic business plan stakeholders has to be focused.
AZIO is an SME which makes fulfilling and extension of business possible within the markets of
different types. 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 organization is there for creating over those persons
that influences communities over large. This is there for providing best services possible to its
customers. Mission of organization is to accomplish the goals and create efficiency over
services.
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: As per this an organization has to be operated in the market
of new countries like France, Germany and USA with the product existing. This is there to attarct
new customers within the market.
STP: AZIO is required to make utilization of target, segmentation and positioning
possible. This makes strategy that helps in making introduction of product possible in existing
market.
Segmenting: this makes division of place through various segments that is having
uniform characteristics to be achieved through geographical nature.

Targeting: AZIO is required to develop various strategies of market and makes
introduction to international market possible.
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
One of the major strength of AZIO is to that
unique product that it sold and makes attraction
of customer possible. (Cobetto, Aubin and
Parent, 2018).
Weakness is that AZIO lacks innovation that
makes rigidity in working that makes decline
in customers base
Opportunities Threats
AZIO have various opportunities because of
which it attracts customers from the product it
sells.
AZIO should be aware about the customers
and makes efficiency in 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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