Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Key concepts which provide options of business growth......................................................4
P2. Opportunities for growth by applying Ansoff's growth vector matrix.................................6
M1. Options for growth and achieving competitive advantage .................................................8
D1. Critical evaluation of various growth options for expansions..............................................8
TASK 2............................................................................................................................................8
P3. Potential sources of funding with their advantages and disadvantage..................................8
M2. Potential sources of funding and adoption of an appropriate source of fund....................10
D2. Potential sources of funds .................................................................................................10
TASK 3..........................................................................................................................................10
P4. Business plan for growth of organisation...........................................................................10
M3. Develop an appropriate and detailed business plan for growth.........................................13
D3. Business plan to achieve organisational objective.............................................................14
TASK 4..........................................................................................................................................14
P5 Succession and exit plan for small business with its advantage and disadvantage.............14
M4 Exit and succession option for small businesses ...............................................................15
D4 Critical evaluation of succession and exit strategy used by small business........................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Planning refers to the process of deciding in advance related to different approaches that
help in expansion and growth of company. It helps in achieving the sustainability for long term
and also assist in increasing the market share (Allmendinger, and Haughton, 2012). The main
purpose of planning is to provide direction to an enterprise which will eventually help them in
achieving organisational goals and objectives. Hampshire Tile Warehouse Ltd is a small
business enterprise situated in United Kingdom, which distributes building products such as
ancillary products, glass tiles, natural stones, porcelain and ceramic. Now company want to
expand its business in Australia as it is a developed country and provide better growth
opportunities. This report contains a detail analysis of Porter's Generic strategy and pestle
analysis which help in achieving competitive advantage along with various growth options that
help in business expansion. It further assess various sources of funds available for business
development. For the growth of a business, it is very essential to create a business plan which
help in deciding future course of action and succession plan to deal with future uncertainty.
TASK 1
P1 Key concepts which provide options of business growth
Planning is an act of deciding in advance, the future course of action which addresses
how, when, why and what activity should be performed in particular situation. Planning is very
essential for effective performance and success of an organisation. Business growth refers to a
stage where company seeks for expansion and some additional options to generate more revenue.
The Hampshire Tile Warehouse Ltd is a distributor of building products such as porcelain,
natural stones, glass tiles, ceramic and ancillary products. Company supplies their product and
services in UK and now they wants to expand their business in Australia.
Porter's Generic strategy
Michael Porter's generic strategy explains how a company can achieve competitive
advantage over its competitors within a chosen market scope (Berger and Berger, 2011). Porter
defines four strategies that can be used by companies in order to achieve profitability and
competitive edge over rivalry within its market place. Cost leadership:- This strategy puts emphases on capturing larger market by making
available product and services at relatively low price. This strategy involves two possible

options either company can keep their price at minimum or can opt for larger market
share while keeping price of product average. For using this strategy Hampshire Tile
Warehouse Ltd must have substantial investment capital and low cost labour at their
disposal. This require more focus on internal process of the company. Differentiation:- Under this strategy an organisation targets a broader market with the
product that have unique features which are harder to copy and doesn't get substituted
easily (Blackburn, Hart and Wainwright, 2013). For getting success in this strategy
company have to be more focused toward research & development and ability to provide
high quality as well as innovative products. Cost focus:- In this strategy firm target a niche market with lower possible priced product
and services and with the proper understanding of market dynamics as well as as demand
of customers, company focuses on satisfying the need of their clients. Hampshire Tile
Warehouse Ltd by adopting cost focused strategy can achieve better customer satisfaction
in its new marketplace, which help company to survive and being profitable
 Differentiation focus:- Under this strategy company focuses over niche market with
product and services having unique features. It is very essential to ensures that product
remains unique so that firm can remain competitive in market.
Among all of the above explained strategies, cost focus strategy is more appropriate for
Hampshire Tile Warehouse Ltd as it want to expand its operations in new market i.e. Australia
which provides better expansion and growth options to company. In this firm can provide their
building products at price which is lower than the other competitors present in market which
assist in attracting large number of customers and in establishing business effectively that
provides higher growth opportunities.
PESTLE Analysis:
PESTLE is a tool which help in analysing macro factors which are present in external
environment of a company. This help in determining various threats and opportunities present in
Australia that can affects the business operation of Hampshire Tile Warehouse Ltd. So, before
starting their operations in Australia, company must analyse the external factors of its market in
which it want to expand its operations. Political factor:- this factor includes government policies, changes in legislations and
governmental stability. Australia having stable regulatory system and provide investors