Planning for Growth

PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1: Evaluation of Growth Opportunities.....................................................................................3
P2: Ansoff Vector Matrix............................................................................................................8
LO2................................................................................................................................................10
P3: Potential Funding Sources...................................................................................................10
LO3................................................................................................................................................11
P4: Business Plan.......................................................................................................................11
LO4................................................................................................................................................14
P5: Exit and Succession Options...............................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Growth planning refers as a strategic organization activity which helps business owners
to develop plan and track sustain growth in the revenue. Growth planning permits companies to
assign their fewer resources that helps organization to adapt change which is executed by digital
media and differentiate business from other competitors (Marques, 2017). Planning plays
significant role in the business because it supports organization to recognize markets which can
promote business. Business growth generates high revenue in company. Planning also assist
organization to understand competitors weakness and develop strategies for taking advantage of
their weakness. There is an example of small medium enterprise which helps to understand
significant of planning for growth. Oak cash & carry Ltd is a SME type business which offers
groceries to customer in small scale. There are overall 85 employees who offer their service in
company. It is wholesaler type company and established in Banbury, UK. This report covers
Boston consultancy group matrix and McKinsey Matrix for understanding competitive
advantage. It covers Ansoff's matrix for evaluating growth opportunities in business.
LO1
P1: Evaluation of Growth Opportunities
Boston Consultancy Matrix (BCG)
It is a framework which is used to examine the strategic position of the organization
brand portfolio and its capabilities. Matrix supports organization for classifying business
portfolio into four categorize which is based on the growth rate of organization and competitive
position in business market (Knop and Mikulová, 2019). It helps to develop sustainable strategic
planning ultimately generates high profit in company. Oak cash & carry Ltd. Uses this matrix to
promote product portfolio in business market. BCG matrix is divided into four concepts which is
based on market growth and market share.
Dogs: Dog sign refers as a product which has low growth rate along with low market
share. Oak cash & carry Ltd doesn't have good product growth in business market ultimately gets
impact on market share (Mohajan, 2017). The main reason of weak market share is that product

cost is expensive and marketing is ineffective. Even low market share leads cost disadvantage in
company.
Question marks: it represents that products has high growth markets but market share is
low. Oak cash & carry has new product or services which can help company to achieve
commercial perspective but it requires high attention (Chiu and Lin, 2019). Therefore, it can lead
growth in business but can reduce market share if doesn't get commercial perspectives.
Stars: Stars refers as high market share along with high market share. Oak cash & carry
Ltd. Have such kind products which helps organization to promote their business and generate
high revenue (Du and Yu, 2017). For example, organization sells groceries which is beneficial
opportunity for the organization because they can access each customer in UK.
Cash cows: it represents that product has low growth market but market share of
company is high. Oak cash & carry have such products which generates high revenue but
consumer demand is less due to high cost (Grooms and Frimpong Boamah, 2018). For example,
organization keeps organic groceries which is highly demanded in market by potential customers
but product growth is minimized due to high cost. So, each type customer can't prefer to buy
these products.
Justification
Organization can use question mark products or services by improving their quality and
converts them into cash cow as result market share can improve of company. Second if
organization provides products on affordable price and uses strategy to lead change in marketing
(Moro Visconti, 2019). It can improve product growth in business market. Thus, organization
can transform dogs into stars and leads growth in company.