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Planning for Growth - Guildford Tyre Company
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Added on 2021-02-22
Planning for Growth - Guildford Tyre Company
Added on 2021-02-22
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Planning for Growth
INTRODUCTION.....................................................................................................................................3TASK 1....................................................................................................................................................3P1.......................................................................................................................................................3P2 ......................................................................................................................................................6M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the understanding of competitive advantage within an organisational context......................................7D1 Critically evaluate specific options and pathways for growth, taking into account the risks of each option and how they can be mitigated......................................................................................7TASK 2....................................................................................................................................................8P3.......................................................................................................................................................8M2 Evaluate potential sources of funding and justification for the adoption of an appropriate source of funding for a given organisational context.......................................................................10D2 Critically evaluate potential sources of funding with justified argument for the adoption of a particular source or combination of sources, based on organisational needs.................................10TASK 3..................................................................................................................................................10P4 ....................................................................................................................................................10M3 Develop an appropriate and detailed business plan for growth and securing investment, setting out strategic objectives, strategies and appropriate frameworks for achieving objectives.16D3 Present a coherent and detailed business plan that demonstrates knowledge and understanding of how to formulate, apply and achieve business objectives successfully...............16TASK 4..................................................................................................................................................16P5.....................................................................................................................................................16M4 Evaluate exit or succession options for a small business comparing and contrasting the optionsand making valid recommendations................................................................................................19D4 Provide critical evaluation of the exit or succession options for a small business and decide an appropriate course of action with justified recommendations to support implementation...........19CONCLUSION.......................................................................................................................................19REFERENCES.........................................................................................................................................21
INTRODUCTIONPlanning for expansion is defined as firm activities which makes proprietor to planand track growth in terms of revenues (Bridge and Dodds, 2018). This can help organisationto adopt changes need and different from competitors. The business can get success throughproper planning and making changes accordingly. The given assignment is supported onGuildford Tyre Company that was founded in 1976. It is private organisation whichmanufactures tyres and spheres in air conditioners, batteries, reparsing and others. Thisdescription covers various considerations for evaluateincrease opportunities with help ofmodel. There are different sources of funds accessible for business along with business plan.In order to recovertrade, there are some exit and succession options which can be applied byenterprise.TASK 1P1It is very significant for commerce to grab opportunities in effective and efficientmanner. For enlargement of firm proper plan and policies should be made by organisation.Guildford Tyre Company needs to evaluate various growth opportunities in effectual manner.They are described below:Competitive AdvantageIt is defined as attributes which allows organisation for outstanding perform fromtheir competitors (Denton, Forsyth and MacLennan, 2017). This can help to achieve successand growth in economical market. The respective organisation needs to perform in bettermanner for surviving in competitive market.Competitive Advantage for Foundation of GrowthFor gaining competitive advantages, it is very important for Guildford Tyre Companyto accumulate capabilities, competences and resources. The competitive advantage forfoundation of growth can be evaluated through use of Porter’s Generic strategies which isdescribed below:Cost Leadership- This is defined as significant plan and tactics which helps inbuilding unique strategy through setting low prices for goods and services. The respective
organisation can use such strategy as it is deals in various tools and techniques which help infulfilling need and demand of consumers.Differentiation Strategy- It is defined as that strategy where organisation offersproducts in unique and innovative ways which assist in creating brand loyalty and createbusiness opportunities for expansion of organisation (Dimitriou, 2013). For such strategythey have to perform proper research and development in an effective and efficient manner.Guildford Tyre Company uses high quality products and services for remaining competitiveat market place by charging low prices.Cost Focus- This is defined as that strategy where products are innovative in naturealong with low cost. The respective organisation mainly focuses on quality and charging lowprices from consumers. They can do research and development in an effective and efficientmanner to know about consumer’s requirements in terms of tyres and spheres and charge costaccordingly. Differentiation Focus- Guildford Tyre Company focus on innovation, differentiationof goods and services for their clients in an effective and efficient manner for enlargingbusiness opportunities. They can add various features and uniqueness as per requirement ofconsumers which directly and indirectly helps in creating brand loyalty at market place. Withthis strategy respective organisation can compete with other competitors and gainsustainability.After analysing various strategies, it can be concluded that Guildford Tyre Companyneed to adopt differentiation strategy for their business by providing unique and innovationproducts and services to consumers. This can help to achieve success, growth andsustainability in competitive market.Competitive Advantage for Opportunities of GrowthFor gaining competitive advantage at marketplace, it is very important fororganisation to understand external surrounding with help of PESTLE analysis. They are asdescribed below:Political Factors- This is very important for organisation to evaluate each and everyfactors of environment before expanding business in market (Glock, Jaber and Zolfaghari,2012). Guildford Tyre Company has aimed for expanding business in Spain market so it
should properly evaluate plans policies, regulations, rules. This can help them to adoptmeasures to overcome barriers in proper manner. Therefore, it can help for adoptingopportunities for business.Economic Factors- This factor assist business while expanding their organisation ininternational market. The respective organisation is scheduling to enlargeindustry in foreignmarket so it should consider various factors such as inflation rates, credit rates andpurchasing power of customers. With analysis of such factors they can grab variousopportunities in an effective manner.Social Factors- This is defined as customs, values, norms and others which helps inbuilding good image in front of consumers. It is very important for respectiveorganisation toexamine need and demand of consumers prior to entering into international market. Thisfactors helping in knowing about requirements of consumers, purchasing power and other foreffective outcomes. It assists in achievement of goals and objectives of business in propermanner.Technological Factors- The organisation have to build advance goods and servicesfor remaining competitive at market place for leading good position in market. The respectiveorganisation needs to analyse market and understand use of tools and techniques adopted bycompetitors so that they can implement it in their business. This helps to make firmcompetitive and advance in market place.Environmental Factors- In order to expand trade in competitive market, it is verysignificant to know about surrounding, weather and climate and environmental factors.Guildford Tyre Company needs to evaluate factors to gain opportunities for long termgrowth, success and sustainability. This factor helps in gaining competitive advantage foradministration in an effective and efficient manner.Legal Factors- Each and every country has their own legal laws and regulation whichhas to be analysed by organisation before entering into international market (Goodfellow,2013). Here, Guildford Tyre Company is planning to enlarge business in Spain market so itneeds to evaluate legal factors. They have to analyse working conditions of labour and otherto gain competitive advantage in market.
P2 In order to grab different opportunities, it is very significant to analyse internalstrengths and weaknesses with use of model. Guildford Tyre Corporation has used Ansoff’sgrowth matrix which is mentioned here:Market Penetration- This is defined as strategy where organisation expands businessin existing market with same products by spreading awareness, lowering prices, promotionalactivities that assist in leading market (Holman and Rydin, 2013). The respective organisationuses various tools and techniques to sell existing product in that market. This strategy canhelp respective organisation to earn maximum profits as market and products both are knownto consumers. The risk associated with such strategy is that as need and demand of consumerkeeps on changing which can create problem for firm to deal in same products. Market Development- This is defined as strategy where organisation has aim toexpand new market with same existing products. It can be possible by maintaining quality ofgoods and services and packing is done in best possible manner. Guildford Tyre Companycan use different distribution channel in order to reach large number of consumers to gaincompetitive advantage. Therefore, respective organisation can get success and growththrough new market. The entering into new market can help respective organisation to earngoodwill and brand value of products in market. The risk associated with such strategy is thatit has to face problem of sale because of same existing products in new market.Product Development- This is defined as strategy where organisation expand newproducts in same existing market. Here, Guildford Tyre Company is introducing new productin existing market where they can repair vehicle at door step in order to eliminates consumersproblems and remain competitive in market place. This type of strategy is suitable fororganisation to deal with consumers and solve their issues and problems. There are variousbenefits which can be gained through this strategy as a new product is launched in marketconsidering requirements of consumers. If market analysis is not performed for consumers’requirements then it has to face problems for launching new products.Diversification- It is defined as strategy where organisation expands business in newmarket with new products and services (Keough, 2015). This is highly risky strategy asmarket and product both are new for organisation. Guildford Tyre Company has to researchproperly before entering into new market and products. With proper analysis helps businessto expand market in effective manner and achieve competitive advantages. It is the growth
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