Planning for Growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analysing and justifying key considerations for evaluation of growth opportunities............3
P2. Application of Ansoff growth vector matrix for evaluating the growth opportunities..........5
TASK 2............................................................................................................................................6
P3. Advantages and disadvantages of potential sources for funding available to business.........6
TASK 3............................................................................................................................................7
P4: Development of business plan...............................................................................................7
TASK 4..........................................................................................................................................10
P5: Assessment of exit or succession options for a business.....................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth is a strategic activity which allows business owners to make plans
for the growth and sustainability of their organisation (Alattar and Furlan, 2017). It enhances
businesses to use their resources in an effective and efficient manner so that profits of the
organisation can be maximised. The company which has been selected for this report is Prufrock
Coffee which is a small coffee shop located in London, United Kingdom. The company is
looking to expand its operations in Australia. In this assignment, detailed analysis will be made
on analysis of considerations considered by SMEs in evaluation of growth opportunities. Also,
assessment of methods through which funding can be accessed by organisations, development of
a business plan will be analysed. Additionally, different ways through which a small business
owner can exit business will be discussed.
TASK 1
P1 Analysing and justifying key considerations for evaluation of growth opportunities
Growth opportunities are the ability to achieve organisation goal efficiently through its
increasing power, high economic sale, greater profits, etc. This is essential for organisation to
survive in global market with its competitive advantage and to sustain with good market revenue
and increasing shares (Cameron and et.al., 2017). This is further explained on the basis of
Porter's generic strategies and Bowman Strategic clock which are as follows:-
Porter's generic strategies:- This describes the various patterns through which an
organisation sell its product to large number of consumers for increase its consumption with
increase in satisfaction level. It focus on the need, desire and want to be satisfied through
qualitative products to compete from its rivals. These strategies are described as under:-
 Cost Leadership strategy:- This strategy focus on the least cost- effectiveness and
qualitative products with consumer satisfaction. The managers of Prufrock Coffee can
use this to capture large number of global market which results in maximisation of
revenue and profits.
 Differentiation strategy:- This is referred as the process to develop specialised product
by analysing the needs and wants of consumers at high premium prices. The managers of
Prufrock Coffee can use it as the products are unique in market and their positioning
make consumers aware with high consumption and high profit margins.
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 Cost focus:- This strategy focus on least cost advantage to its segmented market with the
capability to meet their requirements for its success. The managers of Prufrock Coffee
can use this to increase consumer loyalty with high satisfaction level leads to achieve
organisation goal.
 Differentiation focus:- This strategy concentrates on innovative specialised product for
their differentiated target market with high premium to meet their requirements with good
quality. The managers of Prufrock Coffee can use this strategy in order to maximise its
sale, profit and market share.
Bowman's strategic clock:- This is referred as the strategic decision planing to position
the product for its utmost competitive advantage of organisation to achieve success. Managers of
Prufrock Coffee implement this strategy to make consumers aware about the product through its
positioning which increase its sale. This model is further explained as under:-
 Low price and low value added:- This is not highly competitive stage as the product is
not differentiated and consumers realise little value on its adoption. Managers of Prufrock
Coffee can use this strategy to compete with its cheap prices and to remain stable in
competitory market.
 Low price:- It is the strategy to minimise cost of product from its competitors with the
ability to earn profits. Managers of Prufrock Coffee can use this strategy to maximise its
sale with least cost for good quality products which results in consumer loyalty.
 Hybrid:- In this strategy producers focus on least cost with good quality and specialised
product to meet the needs of consumers. Managers of Prufrock Coffee can use this as it
provides good value on the less price with unique product through its product positioning
in mind of consumers.
 Differentiation:- This means to produce differentiated product with high value added
through superior quality products. Managers of Prufrock Coffee can use it to increase
brand awareness to its differentiated market which increase their satisfaction level by
enlarging consumers.
 Focused differentiation:- It refers in product positioning with high pricing at high value
(Fursov, 2017). Managers of Prufrock Coffee can use this to achieve high premium prices
from segmented, targeted and positioned market which are ready to pay high amount.
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