Key Considerations for Measuring Growth Opportunities

P1 Examine key considerations for
measuring growth opportunities and justify
such considerations within organizational
context.
Each and every business
organization increase their business
opportunities and it is very crucial for
small and medium sized organization to
grab opportunities for their business in an
effective manner. In order to enhance
business opportunities Guildford Tyre
Company needs to develop effective
policies and plan of action in order to
improve their business operations and to
run various activities of the organization in
a smooth manner. Respective organization
is a small business company that owns a
fewer number of employees that handle
their services. Competitive advance will be
beneficial for the respective organization
to sustain in a market area. Organization
needs to identify and measure their market
position a value in their industry.
Guildford Tyre requires to implement
Porter's generic strategy to develop
business strategies in an effective manner
and to understand market environment.
Cost leadership strategy - It is a most
effective technique to attain a respectful
position in overall market area.
Application of cost leadership strategy in
respective organisation will help them to
gain competitive advantage in market area
and to gain benefits over rivalry
organizations. According to this strategy,
respective organization requires to offer
their services and products at low prices as
compared to their rivalry companies as it
will help them to create a strong base for
service users. It will help the organization
to fulfil demands of the customers.
Differentiation leadership strategy -
Application of this strategy in Guildford
Tyre Company leads to development and
growth of organization as a whole. This
particular strategy will help the
organization to introduce innovation and
creativity in their products and services to
make them different from rivalry
companies. It will help in to attract large
number of customers and to attain a
competitive advantage over them. It is very
essential for the respective organization to
analyses customer demands before
implementing this strategy.
Focus strategy - The prior objective of
this strategy is to analyses and meet the
demands of the customers. It would be
helpful for perspective organization to
offer their services in a particular market
area. It is essential for the organization to
develop strategies which is established on
the basis of niche market area. In order to
implement this strategy, it is important for
Guildford Tyre company to understand
different dynamics of the market area
along with specific demands of the
customers.
Planning for Growth

After going through different
strategies that are available, it can be
analyzed that most appropriate strategy for
Guildford Tyre company is focus strategy
as it will help organization to create and
develop products according to the
customer demands.
Competitive advantage for opportunities
for growth
For achieving growth and development
of business in an effective way it is very
essential for business to analyses different
environmental factors. Respective
organization needs to apply different
factors of PESTEL analysis. It is an
effective tool for analysis of micro and
macro environmental factors.
• Political factors: This
particular factor includes
legislations and policies which
is developed by government.
It basically examines the
impact of government and its
policies on various operations
of organization. Taxation
policy, trade restrictions,
instability and stability of
organization. Political party of
UK is creating different plans
for growth and development
of small and medium sized
organization. It will help
respective organization to
perform operations in a better
way.
• Economical factor: This
particular factor has a direct
impact on economy of the
organization and its
performance that eventually
effect its overall success.
Economic factors are
consisting of employment and
unemployment rates, foreign
exchange rates, interest rates,
cost of raw materials and
many more. UK government
will help Guildford Tyre
company to enhance its
profitability and to perform
better.
• Social factors: This factors
will help in identification of
emerging trends focus on
social environment. It will
help respective organization to
anise demands of their
customers. Factors like
education levels, cultural
trends, family demographics
and changes in lifestyles are
all social factors that has a
major impact on operations of
Guildford Tyre company.
• Technological factors: Such
factors play a crucial role in
considering rate of innovation
and development that could
have impact on market or
industry. Factors such as