Planning for Growth

Planning for growth
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Table of Contents
Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Key considerations for evaluating growth opportunities.................................................3
P2. Opportunities for growth using Ansoff's growth vector matrix.......................................5
TASK 2............................................................................................................................................7
P3. Sources of funding with their benefits and drawbacks....................................................7
TASK 3............................................................................................................................................8
P4. Business plan for growth of business...............................................................................8
TASK 4..........................................................................................................................................11
P5. Succession and exit plan for small business with its advantage and disadvantage........11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Planning is the process that inserts the positive approach of an individual to achieve its goals in
an effective manner. It is basically defines the security the future by performing certain task and
activities in present scenario. It is the advance thinking of an individual that has been developed
in order to gain success and development in future period of time (Denton, G and et. al., 2017) .
It also helps to measure the impacts on different strategies that are implied to achieve success
and growth. This report is about the Higher Rhythm Ltd is the music and media organisation that
is based in Yorkshire, UK founded in 2001 and provides their services on locally, regionally and
on international level as well. Company wants to expand their business in Australia by
introducing their own music and some fundamentals as well that supports the work of music
industry. This report includes a detail brief about the Porter’s generic strategy and Ansoff matrix
to analyse the growth opportunities. Furthermore, includes the different source of fund and
succession options that is available for growth.
TASK 1
P1. Key considerations for evaluating growth opportunities
Planning is the process of defining and evaluating the changes as per the requirement to
achieve the required goals and objectives. It is the process of the company to balance up the gap
in between the where the company is and from where company wants to achieve after a periods
of time. Higher Rhythm Ltd is the SME and wants to achieve growth with their expended
business that will be operated in Australia.
Porter's generic strategy
It is the strategy that defines the pathway and provides the competitive advantage to the company
in this competitive marketplace (Haaland, C. and van den Bosch, C. K., 2015). It includes four
different strategies that are used by the company in order to achieve advantage from their rivals.
It helps to formulate different strategies that help while expanding the business.
 Cost leadership: It is the strategy that is used when company offers the product and
services with minimum prices that provides the support to attain highest market share.
Higher Rhythm uses cost leadership theory to attract the large number of customers and
provides their services with comparatively low cost as per their competitors.
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 Differentiation: It is the strategy in which company presents implements innovation and
creativity in their product and services in order to achieve higher sales and large market
share. With the help of this strategy company develop that products that is completely
new in the market. Higher Rhythm uses this strategy in order to gain competitive
advantage by grabbing the attention of large customer base.
Cost focus: It is the strategy that is used by the company in order to covers the niche market and
provides the different product and services with minimum cost (Mason, P., 2015)
 . This has been introduced by the company by knowing the complete analysis of market
and to satisfy the needs and demand of the customers. Higher Rhythm collects the large
number of customer by providing the services on lower cost.
 Differentiation focus: It is the strategy that is used by the company while providing the
diversified products and services. It brings the loyal brand image in front of the
customers and gain long term success in the market. Higher Rhythm uses this strategy
while offering new services in the business environment and with this company collect
maximum revenue by enhancing the sales and profit.
There are some different strategies that are driven by the Porter’s that helps to gain the higher
competitive advantage. Higher Rhythm Ltd muses cost focus strategy in order to achieve great
productivity and profit while measuring expansion in their business. With the help of this
strategy company provides the services with minimise cost to grab the attention of large
customer base and to enhance the profitability of the company.
PESTLE analysis
It is an analysis that defines the macro-environmental factor that affects the performance
of Higher Rhythm that helps to gain the advantage while serving growth with the expansion.
There are some different factors that is measured by this analysis and that is as defined below as:
 Political: It includes the interventions of the government as UK has more stability thus
they provides the larger opportunity to the new business to measure more development.
Thus Higher Rhythm gets the advantage of it as Australia has wider acceptability and
provides a level of certainness.
 Economical: It includes different factors as like inflation, foreign exchange and
economical condition of the country (Unit, E. P., 2015). The economic value of Australia
is more stable and quite much higher as compared to UK and US. It acts as the good
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