Key Considerations for Measuring Growth Opportunities

This document examines the key considerations for measuring growth opportunities within an organizational context. It discusses the importance of developing effective policies and strategies, implementing Porter's generic strategy, and analyzing market position and value. It also explores the opportunities for growth through Ansoff's growth vector matrix.

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

research and development,
automation, mobiles
technologies are some of the
technological factors. It will
help respective organization to
modify their products in an
effective manner.
• Legal factor: This element
help in to ensure health and
safety of customers. It
includes factors such as law,
copyright, health and safety,
patient laws and customer
protection laws. It will be
beneficial for the respective
organization to maintain
health and safety of their
customers and employees. It is
important for the organization
to follow all legal norms and
regulations in order to bring
positive outcomes.
• Environmental factors: This
factor is majorly responsible
for influencing surrounding
environmental of the
organization. It is becoming
more essential with the
development of CSR. It
consists of several factors
such as climate, recycling
procedures, carbon footprint,
waste disposal and
sustainable. Changes in
climate may have some
negative impact on operations
of Guildford Tyre company. It
is very important for the
organization to develop some
strategies for tackling with
various environmental factors.
After analyzing all the factors, it can be
analyzed that technology and social factors
would have a major impact on the
operations of respective organization. It
will help the organization with
development of strategies a planning in
order to achieve target goals and
objectives.
P2 Measure the opportunities for growth
by implementation of Ansoff's growth
vector matrix.
There are number of opportunities
that are available in market area which
could be helpful for the organization to
enhance their business operations. A strong
business strategy is need to be created by
Guildford Tyre Company for overall

growth and development of the
organization. It is very crucial for
respective organization to identify and
analyses different business strategies
which is said to be beneficial for the
organizational growth and development.
Strategies can be referring to as an
effective plan of action in order to attain
desirable goals. Ansoff's growth vector
matrix is need to be implement in
respective organization for overall
planning and growth. This particular
model was created by Igor Ansoff and has
divide the matrix in four different sections.
Matrix of the model include product
development, market penetration, market
development and diversification. Such
different strategies are discussed as
follows:
Market Penetration- This strategy
of the model can be utilized when an
organisation is offering their services and
products into existing area of market. It
will help in to increase sales and to attract
large number of existing customers which
are already connected with them.
Guildford Tyre Company can implement
this strategy for developing a positive
image in the eyes of customers.
Product development - In order to
implement this particular strategy,
respective organization needs to bring
innovation and creativity in their products
for attracting a pool of costumes. It would
be beneficial for the organisation to fulfil
demands of their service users by offering
them a unique product. It would be helpful
for respective organisation to gain
advantage over its rivalry companies.
Market development - This
particular strategy of this model would be
beneficial for delivering products in a new
market area. It is very crucial to analyses
proper environment of the new market area
and analysis of customers’ demands. It is
very essential for the respective
organisation to expand its business in new
market areas in a better way. It is very
important to create a strong base of service
users.
Diversification - This particular
strategy would be helpful for the
organisation when it is offering its new
products in a completely new market area.
Guildford Tyre Company can use this
strategy for enhancing its business to a
completely new market area when it has
created some new product or service.
After going through all different
strategies, it could be identifying that most
appropriate strategy for respective
organisation is market development.
Implementation of this strategy will help
the organisation to evaluate and analyses
new area of market where company can
provide its recent products and services. It

is very important to properly analyses new
market area for bringing growth and
development in the organisation and to
expand its business.
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