P1. Key considerations for evaluating the growth opportunities (Doc)

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ..........................................................................................................................................3
P1. Key considerations for evaluating the growth opportunities...........................................3
P2. Identification of growth opportunities by the use of Ansoff's growth matrix..................5
TASK 2............................................................................................................................................7
P3 Potential sources of funding and their advantages and disadvantages..............................7
TASK 3............................................................................................................................................9
P4 Designing business plan for growth of organisation.........................................................9
TASK 4..........................................................................................................................................11
P5. Exit and succession option for small business...............................................................11
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning form the basic and foremost step for the success of anything being it a project, strategy
or business Planning out for growth helps a firm to identify various macro and micro
environmental factors and to formulate most appropriate policies and procedures in accordance
to market dynamics (Barbour and Deakin,2012). In this market scenario successful are those
ventures who have been efficient in planning out their strategies for implementing new
techniques in their business. Fresha fruit Farm is a UK based firm which deals in providing fruit
drinks and other beverages made from infusing fresh fruits and flowers in spring water. The
assignment will provide a brief about various opportunities that are presented before an
organization due to adoption of digitalization in its business operations. Further it will present
implication of Ansoff growth matrix and advantages and disadvantage of sources of funds that
are available with the firm. It will also present a business plan for the growth of firm's business.
TASK 1
P1. Key considerations for evaluating the growth opportunities
Fresha fruit farm is a producer of drinks mixers based in UK. Company basically deals
in manufacturing and preparation of fruit cordials, lemonades and other fresh fruit drinks both
alcoholic and non alcoholic. The main feature of its products is that they are prepared from fresh
fruits mixed with flower extracts, spices and various flavours that all are organic and healthy.
The increased level of health conscious people have n presented company with the opportunity
to diversify its market share by catering needs of its potential target market who prefers drinks
made with natural ingredients. For attracting its customers and to attain an advantage over its
business rivals Fresha fruit farm keeps on innovating and experimenting in its drinks flavours
(Chapin, 2012). With more returns high profits company gets more funds that assist it in
planning for its further growth and expansion in other potential market and regions. To attain this
objectives is required to analyse and make use of different factors like digital technology, various
sources of funds, different market factors etc. It is because by adopting advance technology get
opportunities of developing new products customized as per its target audience, can improve its
marketing strategies which results in expanding its reach and also will assist its employees to

develop various innovative ideas that are practically feasible. Thus, it will enhance the overall
performance, productivity and work efficiency of a firm. Some of the major growth
opportunities that are available to Fresha Fruit Farm due to implementation of digital technology
in its business operations are mentioned below:
Competitive advantage: With use of digital technology in its business operation Fresha
is expected to enhance and improve performance of al its divisions. For instance the production
department will be provided with opportunity to improve quality of its drinks and to introduce
new flavours that are demanded by its potential customers (Christofakis and Papadaskalopoulos,
2011). Marketing department on other hand can formulate various innovative strategies for
sales promotion of products and can reach out large audience in cost effective manner and less
time by making use of modern popular tools like social media, internet etc. All this contributes in
adding value to company's products, brand and in attaining competitive advantage. Along with
this company needs to apply porters five force models in its business process.
It involves analysing its market competition which in company's case involves finding
out strength of its business rivals in terms of profits earned, no of products offered and various
strategies related to marketing, finance etc. which they adopts in their operations.
Bargaining power of suppliers: This involves determining Fresha Fruit Farm's potential
suppliers, their numbers and how easy is for them to switch to its competitors.
Bargaining power of buyers: It involve determiner how easy it is for company's potential
consumers to switch to other substitutes available in market.
Threat of substitution: It involves how easy it is for Fresha Fruit Farms rivals to copy or
substitute its products. In case of this company which is low as Fresha Fruit Farm keep on
innovating new flavours to maintain its lead.
Threat of new entry: It involve how easy it is for any new business to enter into a market
or industry. In case of Fresha Fruit Farm it is hard because many regulations have been Imposed
d by government in terms of food and beverage industry in respect to quality aspects.
Automation of food process: For Fresha Fruit Farm adoption of digital technology in its
production process in form of robotics, encapsulation and automation technology in its
production and food testing is expected to reap benefit of simplifying its process, saving its cost
and time while handling large volumes. Also it will help in managing the food wastage,
maintaining control over nutrition norms and their nutrients value.

New Product and services : With implementing digital technology Fresha Fruit Farm is
adopting new and improved tools and techniques like email, intranet for improving and
enhancing communication between its staff and to develop effective and better relations with
them. Also it helps in collecting data related to customers taste and preferences through various
social sites, web portals etc. which is analysed and evaluated by company to make necessary
modification in its existing product or to launch an entire new product. In case of Fresha Fruit
Farm company make use of customers related statics to ascertain flavours which are mostly
demanded by them and to develop new beverages as per their taste. Also with introduction of
company's online website where customers are provided with facility of ordering products any
time helps firm to reach larger audience ( Eddleston and et. al., 2013). This therefore in all
aspects contributes in firms growth and expansion of business through online platform.
Collaboration: Another opportunity for Fresha Fruit farm to achieve higher growth and to
capture larger market share is form of joint ventures, mergers, strategic alliances etc. with
leading competitive brands in same industry. This assists firm to reduce its market competition
and to get benefit of varied technology that are been used by other firms .
P2. Identification of growth opportunities by the use of Ansoff's growth matrix
Fresha Fruit Farm being a soul promoter of innovation have a pool of opportunities for growth
and development of its business by adopting and efficiently utilizing the digital technology in its
firms operations. Ansoff growth matrix helps a firm to identify various market opportunities and
to formulate most appropriate strategies for capturing them. The key components covered in this
matrix includes market penetration, product development , market development and
diversification(Grover, Bokalo and Greenway, 2014). By analysing each of these areas company
could attain higher outcomes in various divisions. Mentioned below is Ansoff growth matrix for
Fresha Fruit Farm:
Market Penetration: It is safest of all the four strategies which includes focusing on selling
existing products and services in existing target market of a firm in order to enhance its market
share. It is done by selling more products to existing and potential target customers in same
market by adopting competitive pricing strategy, advertising and sales promotion. Fresha Fruit
Farm being a small venture based on UK by adopting market penetration strategy can sell their
different products to their existing customers. By using various promotional strategies
comprising electronic media like TV, radio, print media such as newspaper, magazines and

online media comprising facebook, twitter and other social media apps company is aggressively
working towards diversifying its market share and to driven out its business rivals. Another
impactful strategy that is surely effective in capturing and inducing purchase from its target
audience is by providing quality products at affordable prices. This leads to increase its
customers satisfaction level thereby building company's brand value.
Product Development: This growth strategy implies alteration in business operations with
special focus to research and development function of a firm that is required to introduce new
product in existing target market. This strategy involves through market research comprising
collection of data through sources like questionnaires, feedback forms etc. that will provide firm
with opportunity to fully know about their taste and preferences an ad to make necessary
modification in their existing products. For Fresha Fruit Farm it is important to get know3ledge
about its customer base, to know what's their desires to taste, preferable ingredients or flavours
that are likely to induce them to purchase their drinks at least once. By analysing this
information company apply necessary modification in its present beverages or introduces new
drinks that is as per demand of its potential consumers both in terms of quality and price
(Keough, 2015).
Market Development: This strategy involves selling company's existing product in an entire
new market having higher growth and development opportunity for business i.e. basically it
related to expanding the product and market boundary of a firm. Fresha Fruit Farm with its
efficient sales and marketing team identifies new potential market for firm where in there is
more chances for it to expand further or to sell large volumes of its products. For entering into
new market company make use of online technology to communicate its target audience about
its products and to induce them to buy by capturing their attention. For this Fresha Fruit Farm
mainly focus on :
 Adopting new pricing policies which involves offering product at affordable price to
form a customer base and to provide various offers and discounts for consumers
 Establishing new sales channels including appointment of new suppliers which are
proficient to delivery products within specific time frame to the end user.
 Dividing market into new segments comprising demographic and geographic to identify
the taste , preference and prevailing trends that are been followed by customers of these
market.

 Making alteration in packaging or production of existing product.
Diversification: Diversification strategy is attained by developing a new product and
introducing it in an entire new market. It is the most risky strategy in all four Ansoff growth
matrix because the firm is having no experience of its new potential market. Also , to be
successful firm is required to have efficiency in both in its marketing and operational functions
which requires high investments. Fresha Fruit Farm by adopting this strategy can cater the
demands of each segments comprising children to older people by providing them variety of
drinks of different flavours and ingredients. It also involves intensive and diversify use of
production of beverages and to adopt most profitable manufacturing process ion terms of cost,
time and other factors ( PLi, Mobin and Keyser, 2016).
TASK 2
P3 Potential sources of funding and their advantages and disadvantages
Fresha Fruit Farm is a small business enterprise that deals in variety of fruit beverages. With
increase competition in the existing market, to maintain its sustainability company has set up its
objectives for diversifying its business operations and to enhance its profits. Digital technology
in this aspect can paved the way for growth and development if it is adopted effectively and
efficiently by firm in its various business operations involving production, marketing, human
resources , promotion etc. implementation of new technology with advance features however
requires huge capital investment to finance its functions and to improve and enhance capabilities
of its various divisions to deploy available resources to maximum level with minimum wastage.
Adoption of digital technology for Fresha Fruit Farm require an investment of £300,000 out of
which company has a ready availability of £2000,00. For the rest £100,000 balance amount
however company is required to analize and evaluate various available sources of funds from
the market. These sources includes raising capital from various financial institution through
bank loan,. Crowd funding , peer to peer lending and venture finance. All these sources have
attached to them certain advantages and disadvantages . Therefore it is the responsibility of
manger to evaluate effectiveness, risk involves and other criteria associated with these sources
and then to choose the most appropriative funding sources for its business operations Mentioned
below are certain sources adopted by Fresha Fruit Farm for arsing its capital:
Bank Loan : It forms an effective method of sourcing out funds for a company. Bank loan is
amount that is borrowed for set period of time from any financial institution which has to be

paid along with interest. It forms the most easy and profitable sources to generate funds for
Fresha Fruit Farm as government provides a number of benefits on loan like subsidy, certain tax
breaks, interest free loans etc. Mentioned below are certain advantage and disadvantage of bank
loan.
Advantages: There are various advantages of taking bank loan for Fresha Fruit Farm :
 It forms the most easiest, risk free and simple source of raising funds for a business
activities of small scale firm
 Interest paid on bank loan is tax deductible
 They are cost effective sources to raise funds in comparison to overdrafts or credit cards.
Disadvantage of Bank Loan
 Loan borrowed requires a periodic payment of interest to bank. Non payment of which
may lead to seizing of firms assets and resources to recover the original amount and to
face legal actions. Also, delay in payment of monthly interest add on to paying penalty
amount by borrower in certain banks .
 Taking loan from financial institution requires borrower to follow various regulations
and to mortgage their properties in case the loan amount is high.
Crowd Funding : It forms another source for acquiring funds that can be adopted by Fresha
Fruit Farm to fulfil its finance requirement. Crowd funding involves taking or borrowing funds
from large number of people to finance a new venture through the medium of internet. Crowd
funding utilizes easy accessibility of vast networks individuals via social media and provides an
entrepreneur with a pool of investors to raise funds from (MacLeod, 2013).
Advantages of Crowd Funding
 It is the fastest medium to raise funds without paying any upfront fees
 Pitching new project through online proves to be a valueless form of marketing as it helps
company to testify reaction of public and to get feedback ad expert guidance for making
necessary improvements in it for its successfully commencement.
Disadvantage of Crowd Funding\
 In case company has not protected its new business idea through patent or copyright it is
likeable to be stolen by any company or individual.

 It is a time consuming process to generate funds from larger audience
 It also involves various legal permission and process that are required to be followed by
borrower .
TASK 3
P4 Designing business plan for growth of organisation
Business plan is a written document that describes nature of business, various strategies related
to marketing , finance etc. and profit and loss statement. It provides detail information about
goals, objectives of a firm along with their deadlines to achieve them and synopsis about firms
SWOT, sources of finance and other related information (Mitchelmore and Rowley, 2013).
Business plan of Fresha Fruit Farm along with its diversification policy by implementing digital
technology is mentioned below:
Company Overview
Fresha Fruit Farm is a beverage company established in UK. It deals in variety of alcoholic and
non- alcoholic beverages that is made from fresh fruits by combining flower extracts with
different food flavours and ingredients. Company with the vision to provide best quality exotic
beverages at affordable prices strives to work aggressively towards atating its mission i.e. to
grow and develop as market leading brand in fruit beverages.
Objectives
Fresha Fruit Farm main objective is to increase sales volume of the company by 10% by
December 2019 by adopting digital technology in its business operations.
Also it aims towards diversify its option by offering online ordering facility to its customers for
induce its sales volumes.
Internal Analysis
This includes evaluating the the internal strength and weaknesses of firm in order to determine
the growth opportunities available within firms potential business market. Different strengths and
opportunities are define below:
Strengths
 Firm is well established in market and is having good brand image due to exotic flavours
of its beverages
 It has an efficient distribution channels network that helps firms to efficiently distributes
its product within limited time frames to its end consumers.

 Company is also having sufficient funds to implement latest digital technology that it
expected to reap benefit of innovative products as per customers requirements.
Opportunities
 To capture new potential market outside company's base location.
 To maintain its product quality and to innovate new flavours as per customers tastes
 With digitalization, company is to start its online website portal to facilitate its
customers to order products online (Moseley, 2013).
Target market
Fresha Fruit Farm targets to cater needs of all people belonging to every segment from children
to elder people. Also with implement digital technology firm aims to target audience through
online marketing strategies like by opening its online website for them to order. With objectie to
expand its potential product market firm is specifically focusing on local markets to identify their
needs and provide beverages as per their tastes. This helps in capture local market which will
diversifies company's business (Todes, 2012).
Financial information
Fresha Fruit Farm has good financial position in market as they are having capability to raise
finance from different sources. Company itself stocks sufficient funds that comprises retained
profits and working capital required to adopt new technology in its operations to enhance its
performance and productivity. The company will take assistance of financial institution to avail
loans to carry out its new formulated expansion strategy
TASK 4
P5. Exit and succession option for small business
There are many ways through which the directors of Fresha Fruit Farm company may dissolve or
continue business in upcoming year
Various ways to exit business:
Liquidation: in case company continues facing losses for consecutive years for long time
and it is evident from its demand forecast that there is no further chance in future for company

to earn profits then they need to inform Board of Directors of Fresha Fruit Farm company to take
decisions regarding wind up the business.
Advantages:
After liquidation the company's director is supposed to be free from stress of any legal
proceedings that could be taken against them, until company guarantees to pay back all its
debts. Thus it provides company with an opportunity and freedom to enter into new business
without bearing any credit liabilities (Valler, Phelps and Wood, 2012)
Disadvantages:
The company' directors requires to sell company's existing asset in order to make all
payment to its creditors in the form of dividend.
Sell the business in open market: When firm's director decided to quit business it have
an option to sell its in open market in certain price. It will benefit the director to at least get the
actual value of its business which further could be invested in starting new business.
Advantage:
Selling business does not lead to company to loose its goodwill. Thus its helps new
owner to retain existing customers and attract potential targeted customers.
Disadvantages:
In order to compete with competitors the purchaser may makes changes in overall
business operation due to which employability of existing employees may comes in danger. The
company's competitors may also purchase their business in order to get list of their customers
and financial information.
Various ways the business can succeed their business:
Delegating work to expertise employees and avoid micromanaging them: The company's
director to focus on major business issues can delegate less important work to his subordinates
on the basis of their areas of expertise, skills and knowledge. By adopting incentives and
development programs a company can motivate its workers to attain its goals with best of their
abilities within specific time frame. This results in giving benefit of attaining stable position by
firm in its future and to gain competitive edge over rivals.

Use the Internet: in order to reach out large audience in cost effective manner Fresha
Fruit Farm is required to adopt digital technology in its business operations. Developing
company's website and promoting its products through online marketing enables firm to capture
attention of large market share from across the world (Wu, 2015).
Advantages of Succession of business:
The employees of company gets the biggest benefit as they are confident about their job
security which helps in increasing motivation and developing their morale.
Disadvantages of succession of business:
In case of consecutive losses, to further carrying out its business operations company is
likeable to encounter an increase in its liabilities or expense which will result in decreasing its
brand image and goodwill in the market.
CONCLUSION
It has been concluded from the above report that, planning has huge impact on the growth of the
business operations. The management of Fresha Fruit Farm decided to use digital technology and
expand their business activities online also. There are large number of benefits are derived by
company in marketing and promotion. As, many modern promotional tools are used by company
like social media which helps to expand their reach and attract large number of customers
REFERENCES
Books and Journals

Barbour, E. and Deakin, E.A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Chapin, T.S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1). pp.5-15.
Christofakis, M. and Papadaskalopoulos, A., 2011. The Growth Poles Strategy in regional
planning: The recent experience of Greece. Theoretical and Empirical Researches in
Urban Management. 6(2). pp.5-20.
Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Grover, B.E., Bokalo, M. and Greenway, K.J., 2014. White spruce understory protection: From
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Keough, S.B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability growth
planning in early product-development stage. IEEE Transactions on Reliability. 65(2).
pp.769-781.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M.J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and
RegionalPlanning. Elsevier.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Wu, F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
Ziari, I. And et. al., 2012. Integrated distribution systems planning to improve reliability under
load growth. IEEE transactions on Power Delivery. 27(2). pp.757-765.
Online:
Planning for growth. 2017. [Online]. Available Through:
<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>