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P1. Key consideration for evaluating growth opportunities

   

Added on  2020-12-30

21 Pages4437 Words274 Views
Planning for Growth
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Illustration IndexIllustration 1: Ansoff's Growth Vector Matrix................................................................................6Illustration 2: SWOT Analysis.......................................................................................................11Illustration 3: PESTLE Analysis....................................................................................................12Illustration 4: 4 Marketing Mix......................................................................................................14
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INTRODUCTIONTo run a business in right way both planning and growth are consider most important keyfactors and this also help for business success.Study dealing with Crocus Organization of UKwho provide online plants for their customers worldwide. This report mainly focuses on howsmall and medium businesses are developing and growing. The report helps to understand theimportance of planning in business. Crocus also wants to expand its business by introducing newequipment such as fertilizers and pesticide in their shop.It describe various factors that help toevaluate growth opportunities by applying Ansoff's growth vector matrix. Study also presentdifferent sources of funding that are used by Crocus in order to raise its financial status with theirpros and cons. Report provide a business plan that consist of financial information with theirmission and vision in order to set up new business plan. Further it describe different successionpoints that help owner to take an exit from a business with their pros and cons.P1. Key consideration for evaluating growth opportunitiesCrocus wants to expand its business by introducing new equipment such as fertilizers andpesticides. The financial stability of a business is quite strong because it offers variety ofproducts through online mode and that is why, it wants to expand its business in order to increaseits sales as well as profits. The company offers the best quality flowers, plants as compared toothers with such low and affordable prices. In order to evaluate different growth opportunitiesand measure the competitive advantages, Crocus uses below mentioned points such as :Competitive Advantages: it is an essential cause that impact the growing chance ofCrocus, as it want to develop it in further level by introducing new equipment into store. Byusing PESTLE analysis, the company can easily know about their competition in the market.Crocus is also facing competition with their rivals because the market share of company is wideand it offers low range of plants to their customers (Hollander, 2018). Crocus needs to delieverall their best products of goods with such a low price as compared to their rivals that helps toincreases their competitive advantages.Financial Viability: As Crocus add some new business in its existing company, butbefore that it is essential to know the budget, which is quite difficult to assess. As the company isfinancially strong and can be measured by using last financial status of company which help to
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determine the actual revenue generate on years that help to determine actual financial status of aCrocus.Market Coordination: to maintain a healthy relationship in market, it is necessary tohave good communication and coordination with customers as well as with suppliers. Crocus isan online shop and does all its promotional activities to increase base of their customer's. Now itwants to expand its business so it uses different modern methods in order to increase its sales.This will help to enhance communication in market (Tomczak, Reinecke and Kuss, 2018).Legal Aspects:Legal Aspect is important cause for Crocus which hinder growthopportunities. To expand a enterprise, it must follow all the rules and implement them as soon aspossible. If these laws are not followed these legal aspects somehow affect the brand image ofcompany. Crocus always takes care about new rules and regulation and implement those intobusiness as they are mostly relate with new tax policy etc.Sales marketing:Sales marketing is next cause that impact expansion of a business. Ascompany deals online with their customers, which means that it has the best selling channel.Sales and good marketing will definitely help in attracting large users and Crocus is also tryingto developing its selling market in order to grow its existing market (Channon and Jalland,2016). The company used only modern method such as social sites, websites etc. and it uses bestmethod of promotional activity method in order to increase its sales.By using Porter generic strategy, Cost leadership is an essential strategy that helpcompany to raise its competitive market. This strategy mainly focus on to set up new prices forthose products but at low cost so that it help to raise company's profitability and as a result itdetermine company's growth opportunities. Moreover, using cost differentiation strategy byCrocus will also help to provide unique offers at low and affordable rates. That help a quotedcompany to determine its growth opportunities.
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