Planning for Growth

This report discusses the strategic approach of planning for growth in an organisation, focusing on key considerations, evaluating growth opportunities using Ansoff's growth matrix, potential sources of funds, and designing a business plan for growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Analyse the key consideration to evaluate growth opportunities of business......................1
Competitive advantage................................................................................................................1
P2) Evaluation of opportunities with implement of Ansoff's growth matrix..............................3
TASK 2............................................................................................................................................4
P3) Potential sources of funds available to business with benefits and drawbacks....................4
TASK 3............................................................................................................................................6
P4) Design of a business plan for growth including financial information and strategic
objectives to scale up the business..............................................................................................6
TASK 4............................................................................................................................................8
P5) Assess of succession and exit options for small organisation to explain benefits and
drawbacks for each option..........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The term planning for growth is defined as a strategic approach for an organisation that
leads management for accomplishing all goals and objectives in a minimum time period. With
formulate and implement of an effective plan it is easy for management to enhance and grow the
business's aspect and market area for generating more revenues from company operations. This
is an important motive of an organisation to obtain better and adequate growth for measuring
company profits from the perspective of sales and market. This report is written from perspective
of Rowlinson Knitwear which manage and operate their business in clothing industry. The
existing aim of respective organisation is to improve market area on national scale for entering
into new and untapped market area (Akram and et. al., 2017). Moreover, this report highlights on
key consideration related with opportunity and growth of business and also on the evaluation of
opportunities with Ansoff' growth matrix. In the last, business plan that includes growth and
financial information to accomplish strategic objectives will also be covered in the report.
TASK 1
P1) Analyse the key consideration to evaluate growth opportunities of business
The evaluation of growth opportunities refers to the key consideration of an organisation
that aids to generate direct sales under different constant that helps to maintain business with
balanced approach. Moreover, planning for growth include different set of action which is used
by organisation for performing there work with more efficiency through completing all activities
with decided plans.
Competitive advantage
Resource- This is one of the major source which is managed and formulated by
Rowlinson Knitwear for performing and managing their work by arranging all number of
essential resources such as financial budget, technological advancement, human resources and
many more.
Capability- With analyses of capability term it is easy for management to generate the
access which is useful for generating better market area (Andreoni and et. al., 2019). Further,
growth undertake by management by capitalising the analyses of customer demand and need
which helps to sustain for longer period in competitive market.
Porter's Generic strategy
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This defines all strategic options which are available among market and it is used by
management for generating better market place. It state that different strategy is used by
organisation for expanding business. Some aspects are described as follow: Cost leadership- With the strategy of cost leadership an organisation provides different
product and service at low price for obtaining better market area. From perspective of
Rowlinson Knitwear it is used by organisation after comparing price of another product
for increasing sales in an appropriate manner (Arzaghi and et. al., 2017). The risk related
with cost leadership relates with minimise of profits due to sale of product at low cost. Differentiation- Under this strategy an organisation is able to enhance the sales of
company products through adding unique and creative aspect within organisational
offerings. But the risk relate with differentiation option is that number of competitors are
too high due to which creative aspect not retain in product for longer period. Cost focus- Under cost focus strategy an organisation is considered towards the
reduction of prices as it is possible to make changes according to the preference of
market but if they are high in cost than management face financial problem among
organisation. The risk aspect of cost focus strategy demonstrate that it is complex to
cover high market area due to budget fluctuations among selected organisation.
 Differentiation focus- This strategy used by organisation for generating loyal customer
base through providing different services which is used to attract the individuals through
implementing differentiation focus strategy among business. Moreover, it is risky
because most of the organisation already perform their work with differentiation
strategy.
With the adoption of above strategy small organisation such as Rowlinson Knitwear enhance and
grow it market area (Bautista and et. al., 2019). This state that Porter's Generic strategy leads
management to enhance its market area through analysing overall market area. It is also
beneficial for management that by maintaining quality and ability of business products this is
easy to improve market area. This helps management to improve organisational strategy by
which authorities also accomplish competitive-edge in market.
PESTLE analysis
For enhancing the business at large management of Rowlinson Knitwear implement
PESTLE model to understand it market area. Some essential aspect of PESTLE is as follow:
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 Political- The term political factor involves government rules and regulations that are
followed by firm to operate their business in a particular region or country. From
perspective of Europe government guidelines are flexible so it is easy for organisation to
expand and enhance its market area.
 Economical- Brexit impact on overall organisation and individuals due to which it is
complex for organisation to manage and operate their business in an organised manner.
Some challenges are faced by management because of Brexit which generate complexity
to expand business operations (Casas and et. al. 2019).
 Social- This relates with living standard of the society and in context of Europe market it
is analysed that market area and surviving cost for UK individuals is too high. So
Rowlinson Knitwear manufacture or develop its products with high quality as it helps to
attract more number of customers towards company offering.
 Technological- Technology equipment’s are high in cost but with the globalisation of
business's it is analysed that by involving technical equipment’s it is easy for
organisation to perform their functions with more efficiency. Example- promotion of
new outlet and store at broad level with low cost.
 Legal- The term legal factor is depending on the legal aspect of business and as per
perspective of Rowlinson Knitwear legal aspect leads management to perform their work
in an ethical and legal manner.
 Environmental- UK government is more focused towards the control of pollution which
exists in environment. Example- there is a major change is monitored and implemented
among automotive sector. Similarly, all sector specifically manufacturing industry is also
bounded to perform work with low pollution.
With the adoption of PESTLE model it is identified by management of Rowlinson Knitwear that
there are different risk factor exists in market. It includes Brexit and Government regulations for
safety of environment which directly impacts on organisational strategy (Crow, 2015). So with
formulating new strategy as per market area aids management to mitigate risk for new store.
P2) Evaluation of opportunities with implement of Ansoff's growth matrix
Ansoff's growth matrix leads an organisation for enhancing and improving their revenue
through measuring different factors which are based on product and service of market. All steps
of Ansoff's matrix in consideration of Rowlinson Knitwear are mention as follow:
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 Market penetration- With implement of market penetration strategy management sale
its constant products among existing market. This strategy is used by Rowlinson
Knitwear for satisfying needs and wants of customer of origin country because it supports
organisation to improve their goodwill which is also beneficial for increasing their
number of loyal customers.
 Market development- According to the strategy of market development an organisation
is focused towards increasing their market area by analysing the market conditions. It
also leads management to improve the outcomes such as to generate better returns from
investment (Grooms and Frimpong Boamah, 2018). This also define Rowlinson Knitwear
manage it market by promoting their products at global level.
 Product development- It consists of different strategy for the existing market and this
also help to attract more number of customers to generate products which sustain its
market for longer period. Moreover, product development leads organisation to improve
their products as compare to competitors.
 Diversification- With diversification strategy an organisation makes modifications by
engaging innovation among products. The diversification strategy is also beneficial for
management of Rowlinson Knitwear to enhance market area by entering into untapped
market.
With the analyse of Ansoff's growth matrix it is identified by business that Rowlinson Knitwear
improve their market area by selecting business opportunities through which management face
different risk factors. Moreover, diversification strategy is more important because it helps the
organisation to improve their market area by developing their strategy with high revenue. There
is different task is managed and this also helps for generating high revenue to major funds in
managing business area.
TASK 2
P3) Potential sources of funds available to business with benefits and drawbacks
At the time of managing and starting a firm it is essential for organisation to manage and
complete work according to the management of sufficient funds (Jeong and et. al., 2018).
Moreover, the lack of funds creates problems because it is related with growth perspective of
business. Example- for managing business at large level more amount and funds are required to
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perform all operations in an appropriate manner. There are different sources of funds which is
utilised by financial department of Rowlinson Knitwear is mention as follow:
Internal sources- It refers to the sources by which an organisation arranges and manage
their business from the organisation. In the present scenario, funds are required for managing and
completing the business. This is also beneficial for business that is used to collect debts which is
beneficial for management of funds.
External sources- Every business analyses the number of fixed profits and asset that are
retained by organisation for longer period. Moreover, internal funds are not sufficient for
expanding business at a larger level (Keough, 2015). This define expansion of business is
increased through generating different sources. In the simple words, external sources also
arrange organisation for gathering funds at explain below: Bank loan- The term bank loan is defined as an objective that is used for managing and
arranging funds through generating loans from banks. There are different types of loans
exists that is used for managing business with undertaking loan aspect. In this an
organisation undertake loan which is used for retuning money in specific period of time.
Advantage- One of the most important source to raise funds is to collect amount through bank
loan. Along with this repayment option is also based on instalments that helps to manage return
of payment on monthly and quarterly basis.
Dis-advantage- With the high interest rate it is complex for organisation to reduce amount.
Moreover, by generating loans amount related security such as bank loan is only applied with the
help of mortgage. Overdraft- An organisation requires high amount of funds which is used for managing
business by certain funds of time. This is also used for managing and generating business
and it is used in to make returns with respective banks (Lambert and Oatley, 2017). The
overall demand for organisation depend on managing business's as per bank funds.
Advantages- This is important advantage for arranging funds and it generally depend on the bank
loan. It is also used to manage and maintain balance between incoming and outgoing.
Dis-advantage- If organisation arrange source for organisation with help of overdraft than it is
costly for management to arrange company funds. Crowdfunding- This is an effective approach for managing the funds with the
involvement of different funds. The methods for arranging funds and it is used in
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analysing the different funds that is also beneficial in collecting and managing funds.
This is also used for making two types as this is used “equity based” and “reward based”.
It refers to organisation which make rewards according to investor that helps in
managing perks and incentives (Li, Mobin and Keyser, 2015).
Advantages- It is as cheap method for generating and gathering large amount of funds at small
rate of interest. This is also useful for organisation to collect all essential amount within small
period of time.
Dis-advantage- If organisation use this source than the list to collect funds is also increased and
as per source it is analysed that financial department of organisation require various entry to
record the principle and interest amount of all individuals.
With understanding the essential amount of funds it is identified that management of Rowlinson
Knitwear that bank loan is an effective method for collecting the amount of funds. This refers an
organisation require different funds and this also refers that all monetary requirements are
fulfilled within legal and ethical manner. This define organisation manage their profits by testing
the situations that leads to gather funds again the security.
TASK 3
P4) Design of a business plan for growth including financial information and strategic objectives
to scale up the business
Business plan is defining as a written document which describe the work method and
nature of an organisation. It also includes marketing-models, financial budget and promotion
strategy for a business that aids management to generate an appropriate amount of profits
through generating relevant projection about losses (Malkar and Johri, 2019). This also consider
about the right and accurate method for completing work according to objectives and goals of an
organisation.
Organisation background
From the perspective of Rowlinson Knitwear it is identified by management that
organisation generates different values that is more beneficial to collect the number of payments
among business. With analysis of existing technology and advancement organisation generate
the results which is used managing the payment as per processing. This also lead the reliable and
fastest payment to make insight the about right payment methods.
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 Vision- This is used for building the finance through which management cut and reduce
cost according to complexity of organisation. With the challenges business also make
opportunities for making positive changes in world.
 Mission- The mission of organisation is to manage and generate about flexible
payments that process different options for customer's as it leads to fulfil demand and
need of customer with better values.
 Strategical objective- The main objective of organisation is to enhance and increase
the profits for business with a ratio of 20%. This is also used by organisation to manage
and complete organisational work with analyse of SMART objectives as it is used to
import more clarity and transparency among working operations of business
(Rodríguez-Rodríguez and et. al., 2016).
 Financial information- It include financial ability for business that is used for
managing and completing work according to the availability of resources. Therefore,
both perspective of financial information is useful in managing internal funds that helps
for completing work according to internal and external source of funds.
The main focus of organisation is to manage and complete work according to right budget and
this also consists about formulation of right budget. This is also utilised by organisation to
perform their work in an organised manner. Some methods to manage cost according to decided
number of budget activities.
Total forecasted budget
Particular 31/12/17 ($) 31/12/18 ($) 31/12/19 ($)
Technical cost 13000 - -
Marketing activities 6000 7000 8000
Advertisement and
promotion
5000 6500 8000
Catalogues 2000 4000 3000
Training and 5500 7000 9000
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development
Total Cost 31500 24500 28000
In the last, by undertaking the financial budget and cash flow statement an organisation
generates better and longer results with including business perspective and it is also useful for
managing work according to the limited amount of budget that helps in managing and handling
budgets for working premises of company (Sreenu, 2019).
TASK 4
P5) Assess of succession and exit options for small organisation to explain benefits and
drawbacks for each option
EXIT PLAN- Each small business keep their decisions and mind about selecting the best
strategy which is used by organisation for leaving the market for a certain period of time. With
selecting a successful exit plan it is easy to generate better and high amount of price as it is used
in completing task according to right plan. Further, exit plan are prepared in advance which
make liable for managing work according to unplanned business strategy. Some plan related with
exit of business is mention as follow:
Winding up- This is an easy method for end of a business that is used in selling all asset and
minimising the debts for business (Wu, 2018). Sometimes the only method which is left for
business is to wind up the organisation. Winding up option is adopted by the sole proprietor
because there are limited number of buyers to purchase the business.
Advantage- The major advantage to wind up the business refers to a simple process and it
is also beneficial because winding up process is completed in efficient and quick manner.
Dis-advantage- An organisation adopt the winding up business with the lowest rate and
the ROI that makes the results for organising business with low rates.
Sell in open market- Small business adopts the exit plan which is used for selling the
organisation among business in the open-market and it is related with owner option. This is also
used to manage and complete business with managing the business according to market area.
Advantage- The major advantage of organisation is to manage and attract buyers that is
used in managing business with profits.
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Dis-advantage- It is also used in managing business which helps for analysing the seller
perspective as it is possible for analysing the seller price.
Succession plan
With the change in leadership style of an organisation it is used in managing business that
leads for undertaking business perspective which is also beneficial for completing work (Yu,
Yanxu and Bojie, 2019). This also refers successful plans leads business to obtain more growth
in a competitive market.
Advantage- Business sustain and holds by the organisation for managing work according
to the original rules and regulations. This is also used for influencing a business to make
involvement of third parties for managing business in an organised manner.
Dis-advantage- To obtain more success in an organisation management leads to manage
all of their task by considering possibility aspect. But is difficult to start and manage a business
with successful aspects of business.
CONCLUSION
By the analysis of above report it is concluded that planning works as an essential factor
for business and it is leading management to generate and achieve more growth in a systematic
and organised manner. Planning aspects also helps organisation for accomplishing better
advantage in market such as increase in productivity support management to obtain competitive-
edge in market. Moreover, as an organisation is focused to enhance their market area than it is
essential for management to generate long term plans which also undertake right sources of
funds to perform operations in an organised manner. In the last, succession and exit plans for
business also leads management to ensure business for future.
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ONLINE
How to use the BCG matrix model, 2020? [Online] Available through:
<https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-
matrix/>.
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