P1. Analysing key considerations for evaluating growth opportunities
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Added on 2020-12-09
P1. Analysing key considerations for evaluating growth opportunities
Added on 2020-12-09
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PLANNING FOR GROWTH
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1. Analysing key considerations for evaluating growth opportunities and justifying them.1P2. Evaluating the opportunities for growth applying Ansoff’s growth vector matrix..........4M1: Options for growth using a range of analytical frameworks..........................................5D1: Critically evaluating specific options and pathways for growth.....................................5LO 2.................................................................................................................................................5P3.Assessing the potential sources of funding available to businesses and discussing itsbenefits and drawbacks...........................................................................................................5M2: Potential sources of funding and justification.................................................................7D2: Evaluating potential sources of funding with justified argument....................................7LO 3.................................................................................................................................................8P4. Designing a business plan for growth including financial information and strategicobjectives................................................................................................................................8LO 4...............................................................................................................................................10P5. Assessing exit or succession options for a small business with explaining their benefitsand drawbacks......................................................................................................................10M4: Evaluating exit or succession options for a small business comparing and contrasting theoptions and making valid recommendations........................................................................12D4: Critical evaluation of the exit or succession options for a small business and appropriatejustified recommendations to support implementation........................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONPlanning plays an important role for an organization in order to manage their workeffectively and properly. Planning includes all the factors which can affect their system, such as,managing their employees, products and services, etc. Without proper planning it becomesdifficult for the company to improve their overall performance. Planning for growth in businessis a strategic activity which helps the firm to make innovative ideas through which they canincrease their revenue.Present report will study about R Robson (Guinot) which is a cosmetic company situatedin Ascot, Berkshire, United Kingdom. It will also assist in evaluating the overall growth of firmthrough Ansoff’s growth vector matrix. This study will discuss about different sources offunding which is available in market with their advantages and disadvantages. It will also designa business plan which will include their financial data and strategic objectives of the firm andexplains exit or succession options for small business. LO 1P1. Analysing key considerations for evaluating growth opportunities and justifying themR Robson (Guinot) is a cosmetic company which provides beauty treatments products totheir customers. It is a business to business (B2B) organization that is running its companysuccessfully in beauty industry. Now this company is planning to introduce some herbal productrange for the treatment of skin related issues, such as, acne, dark circles, wrinkles, etc. For RRobson, it is very important to have a good planning so that it can help them in introducing theirproduct effectively in market. For this they can implement various analysis to analyse the growthopportunities that are present for them in market (Wu, 2015). For example, they can use Portergeneric strategic model to evaluate their competitors that are present in industry and fromPESTLE analysis they can understand the different factors which can affect their product, suchas, political, economic, technological, etc. These approaches are explained in detail below:Porter’s Generic Competitive Strategies: This is a process which is helpful inexplaining the strategic planning of their competitors that can affect their marketing andbusiness as well. This method will help in introducing their new organic range effectively(Keough, 2015). There are three elements present in this model, i.e.,1. Cost Leadership: In this method, it basically focuses on introducing their products at lower1
cost as compared to their competitors. This will help an organization to attract more customersand can earn a good profit. 2. Differentiation: In this strategy, company focuses on creating a product that is totallydifferent from other products that are available in market already. For R Robson it is veryessential to introduce their herbal product range with some uniqueness so that it will help themin attracting more customers (Grover, Bokalo and Greenway, 2014). 3. Focus: This is the factors which basically focuses on selected target market which isbeneficial for them. This will help them in increasing their sales and revenue as well. Thisstrategy is divided into two sections, i.e.,3a. Cost FocusIn this method, company tries to focus on thecost factors of their products to make itaffordable for their customers.3b. Differentiation FocusIn this process, organization seeksdifferentiation in its target segment, such as,young group, ladies, etc (Darroch, 2014).PESTLE Analysis: This process plays an important role in the identification of growthopportunities that are available in industry which can help them in introducing their newherbal treatment cosmetic products range. This analysis helps in analysing differentfactors which can have a huge impact on their products range, such as, political,economic, social, technological, environmental and legal which is explained below:Political FactorThese factors have a huge impact on any business activity as it is veryimportant to follow all the regulations that have been made for suchcompanies, such as,They have to properly register their products before launchingit in the industry (Ying, Chaolin and Xiaojiang, 2014).R Robson has to follow all the taxation policies, laws, etc. inorder to work properly. Economic FactorThese are the economic factors which can affect their business innumerous ways, for example,The most important economic factor is impact of inflation ratein market.They also have to cope up with increased interest rates which2
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