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.