Planning for Growth

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Key factors for an organization to consider for evaluating growth opportunities.................3
P2. Evaluation of opportunities for growth and also considering risks involved........................6
LO2..................................................................................................................................................7
P3. Potential sources of funding for businesses with their benefits and drawbacks....................7
LO3..................................................................................................................................................9
LO4..................................................................................................................................................9
CONCLSION...................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning for growth is the process or activity through which enterprises plan their
procedures in order to grow their organization. Also, it involves strategic analysis of factors
which an organization considers for their growth opportunities (Boulange, and et.al., 2018). This
report will be in context of Bonmarché. It was founded in 1982, and it is recognized as most
popular and successful budget fashion retailers across UK. This report analyses key
considerations for organization to evaluate growth opportunities while also justifying the same
through the use of Ansoff's growth vector matrix. This report assess options for growth for the
firm with the help of different frameworks and demonstrates the understanding of competitive
advantage for organization, while also considering risks involved (Bongaarts, 2016). The report
further provides potential sources of funding available for the organization with their benefits
and drawbacks, and assist in considering and adopting best option. The report also assesses an
appropriate business plan for the firm through financial informations and strategic objectives.
Then report further assess exit or succession options with their benefits and drawbacks for the
organization, with justifications supporting them.
LO 1
P1. Key factors for an organization to consider for evaluating growth opportunities
Organization should consider various factors for growth opportunities. This includes
considering various factors that help in gaining competitive advantage by innovating products
and services to expand its market share and profitability.
Competitive advantage: It is a condition or position through which an organization finds
themselves superior to others competitors in the market. Bonmarché should also allocate and use
differentiate technology to get competitive advantage. Company by using its capabilities offer
high quality services and products to its customers (Nainaar and Masson, 2018). Company can
also change its marketing strategies for attracting new customers as well as existing customers
which will help in gaining competitive advantageous in the industry.
Porter's generic strategies: The organization can also consider applying one of the
Porter's generic strategies for achieving competitive advantage, which includes:
Cost Leadership Strategy: Company can consider using this strategy, by reducing cost of
production and brining economic of scale thus offering product at reasonable prices that will
helps in enhancing profitability and gaining cost leadership advantageous.

Differentiation Strategy: It can consider using this strategy, by offering more unique products
as compared to their competitors.
Focus Strategy: Bonmarche can consider using this strategy, through which they will study
about demographic needs and desires of potential customers.
After analysing all the strategies, best suited strategy for the firm is cost leadership
strategy (Bongaarts, 2016). Due to rise in inflation because of Brexit, enterprise by bringing
economic of scale and using innovative technology can manufacture products at reasonable cost.
Thus, it can provide quality products and services at reasonable cost to attract large number of
customers and gaining competitive advantage.
PESTEL analysis can also help any organization to consider competitive advantages.
Political: Political environment post Brexit is very disturbed, resulted in mass unemployment.
Bonmarché can consider benefiting from this by hiring talented employees at low salaries.
Economic: Economy of UK is also fluctuating post Brexit, such as inflation or changing
procedures etc. To counter that, UK government has adopted several measures, such as lowering
interest rates (Distanont and Khongmalai, 2018). Firm can consider benefiting from it by taking
loans from government banks to grow their business.
Social: Decreases in disposable income of customers indicate that people of UK are willing to
pay less for quality products thus company by providing quality products at reasonable rates can
expands its business and profit margin.
Technological: UK is considered as a country which has innovative and advanced technologies.
Organization can consider benefiting from it, by purchasing the latest technologies easily and
using them for their business growth (Seo and et.al., 2018). Company can also sell its product
online to expands its business thus provide ease to customers by delivering products at their
doorsteps.
Environmental: There is mass awareness in UK regarding climate change. Firm can consider
benefiting from it by production of biodegradable products which would be easily accepted by
customers.
Legal: UK has implemented various laws on enterprises such as labour reforms, minimum
wages, which are not followed by companies generally (Arianty, 2018). Organization can
consider benefiting from it by encouraging and promoting such laws so that more employees and
loyal customers will attach themselves to the firm.