Planning for Growth Opportunities : PDF
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Added on 2020-12-09
Planning for Growth Opportunities : PDF
Added on 2020-12-09
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PLANNING FORGROWTH1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3LO 1.................................................................................................................................................3P1.................................................................................................................................................3P2.................................................................................................................................................4LO.2.................................................................................................................................................7P.3................................................................................................................................................7LO.3.................................................................................................................................................9P4.................................................................................................................................................9LO.4...............................................................................................................................................13P.5..............................................................................................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................162
INTRODUCTIONSmall or medium sized enterprise defined by European Union as that company orbusiness which has: (1) less than 250 employees (2) whose annual balance sheet does not exceed£34 million (3) those business whose voting rights or capital of 25% is not own by single firm orjointly by other several organisations. This report will discuss about the key considerations thatSME should consider while seeking growth opportunities as well as various sources throughwhich organisation collect funds and the way of applying them in business. Assessing aboutvarious ways through which organisation can exit from business will also be explained. Qbichotel is a budget friendly hotel located in the city of London that is chosen for the present study.It is an urban hotel with all the basic amenities.LO 1P1. It is important to analyse the key considerations in relation to growth opportunities.Company should make detailed research of potential and pitfalls of business. Review about theirown potential, of making a business a successful enterprise. Thus, it is essential to look for thekey considerations while evaluating growth opportunities. The following factors are:Financial Components: Financial components refers to those resources that are beingneeded by a business unit for smooth functioning of overall business operations. Qbichotel should properly evaluate various sources of finance through which it can borrowmoney. Further, it should check its personal resources i.e. their savings and assets ownedby company. Evaluation of financial components help organisation to know from whereit can get money on cheaper rates. Also, banks and other lending institutions are satisfiedwhen an entrepreneur bring in business their own resources. Competitive Advantage: Competitive advantage refers to those advantages that can begained by a company through effective development of various strategies and plans incontext to improve the efficiency of facing competition in the market. This helps the Qbichotel to be in a superior position in relation to its competitors or other companies.Company is able to know about its strength and then, it will generate profit to the firm.The small business suffers from lack of proper resources; this made even more importantfor entrepreneur to effectively and efficiently utilise them. Qbic hotel has a competitive3
advantage of prime location with easy access to all public transports which enable hotelto become a successful enterprise (Love and Roper, 2015).New products and Service innovations: Development of new products and services helpQbic hotel to generate more growth opportunities and expand its business. Innovation inproducts/ services help it to gain high market share and customers. Further, this helps inutilising less resources and cost-effective techniques to produce the product. When acompany uses product innovation; this opens up a way for growth opportunities. Qbichotel’s innovation technique of making rooms on futuristic concept helps it to generate ahuge amount of revenue (Desai, 2013).Growth options: Evaluate growth options which are available in a hotel business. It canbe achieved through Ansoff Growth matrix, various growth opportunities like, marketpenetration, product/service development, market development, diversification. Thenacquiring of market, calculating risk involved in. Making products/services according tothe market demands and formulating plans for expansion of business. It helps Qbic hotelto make policies and objectives i.e. to be achieved by them for growing and sustainingtheir business.Risk Assessment: It is essential to evaluate about the risk in a business. Company shouldassess both; internal and external risk i.e. the state of economy, competitors in market,credit worthiness of available loan or money, etc. Further, it should see whether it will bebenefited to organisation to take the particular risk, because it has negative impact onQbic hotel's growth if it is not properly evaluated.Digital Technology: The SME can be benefited with growing technologies. digitaltechnology refers to latest technological instruments that can be used by the business forimproving efficiency of working. It helps Qbic hotel to increase its profit margin in abetter way. Use of Digital Technology helps to increase the productivity of workforce orprocess as well as enable to get innovative ideas to reach to customers. Technology helpsto reduce the errors in operations as most of the work is supported by electronic machinesand software which reduce the risk of mistakes which occur while manual working.Also, it helps in reducing the wastage of resources through innovation of paperlesstechnology. Customer dissatisfaction is reduced with the digital technology and helporganisation to improve its performance (Blackburn, Hart and Wainwright, 2013).4
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