Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Evaluation of growth opportunities by applying Porter's generic and PESTLE framework. 3
P2 Applying Ansoff's growth matrix in Knights and Duke Homes............................................6
TASK 2............................................................................................................................................8
P3 Analysis of different sources of funding with their advantages and disadvantage................8
TASK 3..........................................................................................................................................10
P4 Preparation of Business plan for growth..............................................................................10
TASK 4 .........................................................................................................................................12
P5 Evaluation of exit or success options for SME's along with their advantage and
disadvantages............................................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth is a strategic business action which assist owners while making plans
for expansion and allocating available resources accordingly for earnings higher profits. Planning
is foremost step which every organisations undertakes before performing any actions. Planning
brings changes in business environment along with effectiveness which enables company to
grow and earn better profits. Planning process helps in defining the objectives and enables
managers to develop courses of action. Growth is one of the perspective for which companies
make plans, with the motive of enhancing their operational size and performances. In this
assignment, growth opportunity is explore and plan for expansions are made for Knights and
Dukes Homes(Biddle and Taylor, 2018). This is an estate agency in London from last twelve
months. Managers of company are planning for opening two new branches in London for which
various aspects are looked into and explored. At first growth opportunities are investigated and
market study is conducted with the help of Porter's Generic model. External factors are analysed
to seek knowledge about the effects they have on organisation, for which PESTLE analysis is
conducted. Then thorough evaluation is performed in relation wit the growth possibilities for
attaining competitive edge by applying Ansoff's growth matrix. After making plans and
exploitation of growth options a business plan is served with all strategies which are require by
Knights and Duke Homes for opening new branches. Also, several funding options are looked
upon from which company can raise money for performing their growth activities.
TASK 1
P1 Evaluation of growth opportunities by applying Porter's generic and PESTLE framework
Strategic plans are made by organisations in order to attain predetermined goals and
growth. These plans are made and documented in order to remove any conflicts and
misunderstandings and conveying aims to employees in an effective manner. Knights and Dukes
Homes is an estate agency situated in London and with growth prospective company is planning
to open new branches in London (Mobin, Li and Komaki, 2017). For attaining competitive
advantage the company needs to identify and consider various strategic models which will assist
Knights and Dukes Homes achieving profitability and sustain in dynamic environment. Two
frameworks are used for and applied on Knights and Dukes Homes which are Porter's Generic
model and PESTLE analysis.

Porter's Generic model
This model is introduced by Michael Porter's, stating that a firm which needs to obtain
competitive advantage over its competitors and rivals can explore two ways. One is by achieving
and using lower cost strategy and another is by standing out from other by delivering something
entirely new to customers (Wynn, 2017). Another element which companies needs to consider is
the scope, it relates with the area in which they are planning to or wishes to obtain competitive
edge. Three strategies are involved in this model which are known as generic strategies, out of
these Knights and Dukes Homes consider any one or two for their growth perspective.
(Source:The strategic planning process, 2018)
Cost leadership- This strategy is based on setting out lowest cost producer or service
provider in chosen industry. Being the lowest cost producer will help the organisation in
competing with others on the basis of price and earning highest units of profits. Knights and
Dukes Homes can use this strategy and for seeking lowest cost company can minimise its
overheads to the lowest by exploring bargaining power of customers (de Roo, 2017). Managers
can open their branches and offices in those locations of London where very less competitors are
available.
Differentiation- This strategy works when a firm produces or serves something unique
from its competitors that is valuable for customers and satisfy their needs. Differentiation can be
in done in two form either by offering a fresh and unique good to public which adds value to
Illustration 1: The strategic planning process, 2018