Planning for Growth: Analyzing Considerations and Evaluating Opportunities

This document discusses the planning process for business growth, including analyzing key considerations and evaluating growth opportunities using the Ansoff growth vector matrix. It also explores potential sources of funding for business growth and discusses the benefits and drawbacks of each source. The document is relevant for students studying business management or entrepreneurship.

Planning
For Growth

Table of Contents
Introduction: ....................................................................................................................................1
LO1: ..............................................................................................................................................1
P1: Analyse key consideration for evaluating growth opportunities :...................................1
P2: Evaluate the opportunities for the growth applying Ansoff growth vector matrix..........4
M1: examine the BCG matrix...............................................................................................6
LO 2:................................................................................................................................................7
P3: Assess the potential sources of funding for the business and benefit and drawback of
each source.............................................................................................................................7
M2: Evaluate the potential source of funding: ....................................................................8
LO 3: ...............................................................................................................................................8
P4: Design a business plan for the growth that includes financial information and strategies
objectives. ........................................................................................................................8
M3: The strategies for the having business strategies. .......................................................10
LO 4...............................................................................................................................................10
P5: Assess exit and succession options for small business explaining the benefits and
drawback .............................................................................................................................10
M4: Examine the exit and succession of business ............................................................11
Conclusions: ........................................................................................................................11
Reference:......................................................................................................................................12

Introduction:
Planning is defined as a step by step process which are to be followed to attain the goals
and objective of the organisation. With the effective planning a company can lead to
development and growth of the business activities. An organisation can take competitive
advantages at the market place by following the producers set by the manager and leader in the
management team so that profits can be earned in the longer period of time. The planning is a
effective strategies which helps in increasing the market share and have a good reputation in the
marketplace. Under this report, the RGB communication, having head office in the Berkshire,
UK market. This company is offering the different product such as projectors, house-ware,
docking stations and home cinema and Audio-visual % etc, to its target marketplace. Further
Ansoff martix is used to expand the business operations. Examining various funding sources
which will help in growing their business at next level.(Wu, 2015)
LO1:
P1: Analyse key consideration for evaluating growth opportunities :
The growth in any organisation can be seen in the term of increasing in the size and
scope of the organisation in the target market and company are able to enhance their
productivity by increasing the market share. In the context of RGB communication, offers
various type of the product and service to increase their businesses activities in the worldwide.
The RGB communication have larger market share in the UK market and have a opportunities
to grow its activities at international levels.
Competitive advantages:
The RGB communication makes strategies which helps them to achieve competitive position by
having effective goods and services at the lower price rates. Some of the competing benefit are
stated as follows: (Gatukui and Katuse, 2014)
Capabilities: The companies are able to produce the unique product and service so that
they can be reach out to larger audience in the market. For example The RGB communication
uses its capabilities to reach out to larger customer.
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Resources: This company has a talented and knowledgeable employees in their team
which help in increasing the productivity at the workplaces. For example, the RGB
communication needs resources to make best use of viable resources in the market.
Core competencies: The implementation of new technologies in their business
operations lead to effectiveness in the tasks.
The company can increase their market share by rendering good quality of product
and service to its customer from time to time. RGB communication provide various variety of
goods and service which lead to expansion of business at that lager scale. The company uses
PESTLE and porter's Generic model for expanding its activities at that next level.
Porter's Generic strategies:
A company relative position within its industry influence whether a firm profitable is
above or below the industry average. The above average company have a competitive
advantage in the organisation. The porters generic have a four strategies which provide a way
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to enhance the performance at the lager audience and build positive image at the market. The
following are four strategies:(Beatley, 2014)
Cost leadership: under this strategies, the company set out to be low cost producer in
the industry. With the references of RGB communication uses this strategies to attract more
customer. The company tries to find and exploit all source of cost advantage in the industry and
make best use of available resources. They also attempt to provide a good quality of product and
services to its customer to make them loyal to company.
Differentiation leadership : under this strategies, a company try to be unique in its
industry, with the references of RGB communication,(Ying, Chaoli and Xiaojiang, 2014)
company offers various different services to become number one in the market and earn the
loyalty of the customer in the longer period of time.
Cost focus: under this strategies, the company seeks to be cost advantages in its target
segment, the manager of RGB communication tries to lower the price for the customer to attach
more number of consumer for the organisation in longer period of time.
Differentiation focus: the main focus is to provide different product to its target
segment and tries to fulfil the need of the buyers in their segment. With the references of RGB
communication uses this strategies to give special product to its customer from time to time and
enhance their productivity in the marketplace.(Wynn, 2017(
PESTLE Analysis: This framework is used to examine the macro-environment factors
which influence the production and productivity of the company.
Political factors: Under this factor, the government interference on the performance of
the business activities are taken into consideration for evaluating the productivity of the
organisation. It incudes factors such as tax laws, legal regulation and various another factors.
With the references of RGB communication have a headquarter in the UK economy, which have
to follow their country rule and regulation as theses factor have impact on the business operation.
Economical factors: it include various factors such as inflation rate, different growth
rate which have a impact on the productivity of the company. The UK economy is very stable
market which help companies to increase their profit in the long run. If there is high inflation
rate which will effect the purchasing power of the customer and product and services are get
effected by such changes in the organisation.
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Social factors: Under this factor, it include customer assumption and value, belief and
point of view of the customer, their culture. In the context of RGB communication, company
tries to make goods and services according to the needs , taste and preferences of the customer so
that they have attract more number of customer so that brand image can be created in the market.
Technology factor: It include advance technology, new method to perform the activity
in the advance level. In the context of RGB communication, company works in the dynamic
environment, so need it adopt to advance technology in the operations levels so that
productivity can be increased in the impressive ways. ( Colantoni, Grigoriadis, 2016)
Legal factor: Under this factor,every organisation operates at the legal rules of
respective counties, such laws can be stated by the government so that activities can be
performed in the smoothly in the management level. It induce the minimum wage rate, health
and safety law and equality law.
Environment factors: under this factors, it include factors like climate condition,
fluctuation in the whether and seasonal factors. In the context of RGB communication, the
manger have to look after environment factor under which it operates under various conditions
which have impact on the production of the product and services.
The RGB communication have different impact on the porters five forces so its infliuenc the
business can be seen in the productivity of the organisation. For example, the purchasing power
of the customer can have impact on the demand and supply of the company product and
services and the aviablity of substitute goods and services in the market for the product .
P2: Evaluate the opportunities for the growth applying Ansoff growth vector matrix.
The Ansoff matrix is also called as the product and market expansion grid, which act as a
tool used by the firms to analyse and makes strategies for the growth of the company in the long
run. This matrix have a four strategies which helps in making effective growth plan and analyse
the risk associated with each strategies. With the references of RGB communication, the leader
make sure that they have a effective growth plan so that they have a vast audience for their
product such as audio-visual goods give solution like image presentation.
Market penetration: under this strategy, aim of the firm is to increase the market share
in the existing market with the reducing the prices of the product and services. In the context of
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RGB communication, uses this strategies to expand the business by increasing the promotion
and distribution efforts to advertise it product.(Sharifi, Chiba, Murayama,2014)
Advantages:
Fast growth: Creating great goodwill help RGB communication to retain their existing
customer in the target and focus on attaching the new customer.
Economic scale: the company increase their sale which generate more economic scale
for the company by lowering the cost of the product.
High turnover: The company are able to increase their profits by expanding the vertical
supply chain in the market.
Disadvantage:
Low customer loyalty: customer can switch to another company if product are available
at lower process.(Adams and Watkins, 2015)
Incompetent strategies for the long run: under penetration strategies are not suitable
for the longer period of time for the RGB communication.
Damage brand image: under this strategies customer thinks that brand as a cheap in the
marketplace.
Market development: under this strategy, the company enters into new market with the
existing product and services. The expanding can be done by expanding under new geographies,
customer segments. In the context of RGB communication, this strategies can be successful if
company owns proprietary technology that have advantage into new market and by attaching
customer into new market.
Advantages:
New geographical marketplace: Get new market for the product and service.
Increase sales: The RGB communication are able to increase the sale by targeting the
new market.
Disadvantage:
High risk: company enter in to new market which is always risk for the company
lose of money : sometime it can be that company can lose lot of money for entering into
new market.(Lu and Yu, 2014)
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Product development: under this strategies, company introduce new product in the
existing market. There is vast product range introducing better understanding of their current
market and also help in providing innovative solution to existing market.
Advantages:
Grasping opportunity: company are aware about the taste and preferences of the
customer to produce new goods for them.
Providing market: as company are know their audience so it is easy for them to
introduce new product and services.
Disadvantage:
competition: there is huge competition in the existing marketplace as similarly product
are provided by the another companies.
Evolving market: The product development is active in the market and work
environment is a dynamic in nature.(Daniels and Lapping, 2016)
Diversification: under this strategies, the company enter with new product into new
market for expanding its business operation at the next level. Their are two type of
diversification such as related and unrelated. The related diversification have a potential activity
between the existing business and the new product.
Advantages:
 helps in increasing availability of new product in new environment.
 Make best use of available raw material.
Disadvantage: required new skills and knowledge to expand the business.
M1: examine the BCG matrix
The BCG matrix is designed to provide help in making long term strategies planing, help a
businesses to have a growth opportunities by reviewing its portfolio where it shows where to
invest in the market and where to discontinue the business or to develop the new product for
the customer to earn the profits in the long run.
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LO 2:
P3: Assess the potential sources of funding for the business and benefit and drawback of each
source.
Funds are required for having effective operation activities in the organisation and such
funds are collected by the company to have smooth functioning in the management level.
Bank loan: here companies take loan from the bank in lieu of collateral securities, bank
gives various schemes to provide fund for various different activities.
Advantages:
 Bank loans have a temporary nature which dissolve once paid off.
 Bank interest are tax deductive from the income tax.
Disadvantage:
 interest rates are high on the bank loan.
 Company have to submit their securities as a collateral.
Loan from friends and relatives: under this source of funding, company take loan from
their friends and relatives. (Leick and Lang, 2018)
Advantages:
 there is no need to pay interest on such loan.
 Their can be delay in paying the amount.
Disadvantage:
 sometime it is difficult to collect full amount from the relative.
 Their can be trust issues among the friends.
Venture capital: under this type of sourcing, investor provide a fund for the small
business and medium size organisation. Investor provide fund from starting the project till its get
finished in impressive ways.
Advantages:
 It provide proper guidance and expert advice to invest in profitable manner.
 It have sound source of funding for the organisation depending on the size of the
operations activities.
Disadvantage:
 the owner looses the title of ownership as investor bear the loss and profit.
 It include high risk in return on investment for the first few years.
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Personal saving: Under this process, the owner and shareholder provide a fund from
their personal saving to the business. It is a most easier available fund to the organisation for
performing the task in the team.(Ozanne, Biggs and Kurowski, 2015)
Advantages:
 It save lot of time for the looking for the investors to give funds for the business
operations.
 Their is no need of paying interest on such type of funding.
Disadvantage:
 this will reduce the personal saving of the owner.
 Their is no interest on such loan.
The RGB communication has various source of funding which helps them to perform their
business operations in the most appropriates manner.
M2: Evaluate the potential source of funding:
The RGB communication can gets the various ways to provide the funds and capital to the
organisation which can have a positive and negative impact on the performance of the
company. The positive ways is that company have funds for their operations activates and the
negative impact is that comp0any have to repay the loan amount from time to time with the
interest
LO 3:
P4: Design a business plan for the growth that includes financial information and strategies
objectives.
Business Plan
Executive summary
Business details:
 Overall summary of business plan
are discuses as follows:
 Goals and objective of the RGB
communication.
 The company is able to provide
different range of product and
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Industry and market analysis:
Customers and value proposition:
strategies in marketing;
operations plan:
Resources:
services.
 Having business strategies such as
profits need to be increased by the
15% by the next quarter.
 it has a large size in the
marketplace.
 Growth rate is high in such
organisation.
 Company offers different types of
product and services such as
audio-visual solution,
connectively solution and various
lighting control.
 IT sector is a target market.
The RGB is know for providing good
quality of product and services in
comparison of its competitors.
 give good product and services in
the marketplace.
 Prices are accurate as compared to
market share.
 Audience is selected accurate.
 Their is proper design available
for the company.
They help in maintaining long term and
profitable relationship.( Crow, L.H.,
2015)
The RGB communication have around 35
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Functions
financial projection:
cash flow statement
management staff in their business
activities.
The company have a mix capital structure
as it is 65% of its owner contribution.
And 40% on different source of funding.
The company needs to have continue the
capital for the company to achieve the
target market.
The RGB communication needs to
maintain the proper flow of cash in or
out from the business to see what
company will be earning for the its
activities.
M3: The strategies for the having business strategies.
The RGB communication needs to have a effective plan for implementing the strategies so that
product and services can be provided to the target market. The company needs to divide the
audience in the different segment so that product can be produce according to needs and wants of
the customer and company is able to make profits in the long run.
LO 4
P5: Assess exit and succession options for small business explaining the benefits and drawback
Management buy in: under such situation the management team external of company
provide money for the organisation and that team become the new management for the firm.
Advantages:
 the RGB communication can give the new way of raising fund for the organisation.
Disadvantage:
 the new management team has a manger who will share the profits.
Management buy out: under this situation, the management team of the company buy
the assets and operation of the business.
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Advantages:
 it will increase the effective use of available resources.
Disadvantage:( Sarin, 2019)
the manager will receive the profit according to their part of investment.
closing the business: here company are willing to exist then business and want to
dissolve the operations activities.
Advantages: when the company is not making profit then company are exist the business.
Disadvantage: the money is lost by tiring to build the business activities.
Retirement: here partner decides to retire from the business, all the partner winds up
the business and share the profit as well as losses.
The company can also use the various another methods to exist the market and start with another
business, the company can use liquidation where all the business activities can be comes to end
and all the task are completed in effective ways. Another method company can use to transfer
the business to their family members so that business can be carried in the family. Company can
also sell its business to its employees and to the manager and take profits in lieu of services.
M4: Examine the exit and succession of business
The RGB communication can exit their business in the market by using various different ways
and take the share of its project from the target market . It can be positive as well as negative for
the company to sell its business to the another investor, the positive is that company can exist
the market if they are not making profits in the target market. The negative impact is that
company can needs to have bear the looses if business is not sell for good prices in the maket
place.
Conclusions:
According to above discussion, it can be stated that to get success in the business the owner
need to have a appropriate business plan which will helps in increasing the profits and expanding
their existing business to next level. The company can use various tool to examine the work
environment to expand their product and service in the existing and new marketplace. The
company also evaluate
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Reference:
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