(Solution) Planning for Growth Opportunities Assignment
Added on 2021-01-01
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PLANNING FOR GROWTH
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Analysis of key considerations for evaluation of growth opportunities................................1P2 Evaluation of growth opportunities.......................................................................................2TASK 2............................................................................................................................................4P3 Assessment of funding methods and their types....................................................................4TASK 3............................................................................................................................................6P4 Development of business plan for growth.............................................................................6TASK 4..........................................................................................................................................10P5 Assessment of succession and exit strategies of SMEs.......................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONPlanning for growth is management of an organisation includes creating strategicbusiness plans for tracking their company's revenue growth which aids in the allocation ofavailable resources and achievement of their objectives and growth (Love and Roper, 2015).Small and medium businesses require this for the purpose of growing in the industry. FordwaySolutions is an IT services SME based in UK. It has 25 years of experience in this sector andemploys over 30 workers. This report is going to cover Fordway Solutions' strategic plans forgrowth. It will analyse the available opportunities and evaluate benefits and risks. Variousmethods of accessing funds and their usage will be assessed. A business plan will be developedand scaling up of the business will be communicated as well as advantages and drawbacks of exitor succession options will be examined. TASK 1P1 Analysis of key considerations for evaluation of growth opportunitiesGrowth opportunities give SMEs a chance to grow. Various strategies are available forimplementation in order to expand any business (Lee, 2014). Fordway Solutions can assessfinancial situation, government regulations and competition in order to start up and achievegrowth of their organisation. Given below are key considerations that they can opt:Determination of competencies: Fordway Solutions can work towards starting and growing their business by determiningtheir core competencies. They can increase their brand image by optimally utilizing theopportunities available with the help of innovative digital technology (Nguyen, Newby andMacaulay, 2015). This will help them to increase their skill efficiencies. Financing:The assessment of company's budget can be done in order to decide required finances forits growth. Fordway Solutions can prepare plans according to their financial requirements. Thiswill help them to implement new technology, but if their capital is low, they can apply for loansfrom banks or ask the government, which have already made plans to aid SMEs with £1 in every£3 of them. New technology:1
Technology is dynamic and new ones are introduced regularly. Fordway Solutions caninstall upgraded facilities through utilization of innovate technologies. They have to make surethat it is used in a proper manner, or else this can cause a threat instead of an opportunity. Cost leadership: Fordway Solutions can opt for production at low costs through determination andutilization of all available resources. This depends upon the scale of economy, technology andaccessibility of raw materials (Bryson, 2018). Once they are achieved, company can gainadvantage in the industry by commanding prices. They can charge low prices for products withgood quality, which will help them to attract a large number of customers which will furtherassist in growing their business. Cost is very essential, as it is required to expand business.Mergers and Acquisitions:This is one of the best growth opportunities for Fordway Solutions. This can be donethrough purchase of a company by another one or merging of companies. They already haveexisting customers and will gain more due to the merger, which will help in acquiring greatprofits. Focused differentiation: Fordway Solutions can have a head start in competitive industry by achieving theopportunities of targeting markets in which their unique products and services can help inincreasing loyalty among consumers. They can utilise digital technology to create these productsand successfully sell them. P2 Evaluation of growth opportunities Ansoff's growth vector matrix can be used by Fordway Solutions to evaluate theirgrowth opportunities and decide their market growth. When small companies enter new market,they face large amounts of risks such as high cost levels, failure in revenue generation andunsatisfactory products for customers which can ruin the reputation of organisation (Mengel andWouters, 2015). The market penetration, market and product development and diversificationevaluation for Fordway Solutions are as follows:2
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