Planning For Growth - Rose cosmetic Ltd Assignment
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Added on 2021-01-02
Planning For Growth - Rose cosmetic Ltd Assignment
Added on 2021-01-02
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Planning forGrowth
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1. Key consideration for evaluating growth opportunity.....................................................3P2. Evaluate growth opportunities using Ansoff growth vector matrix.................................6TASK 2............................................................................................................................................7P3. Potential sources of fund available to businesses along with their advantage andlimitations...............................................................................................................................7TASK 3............................................................................................................................................9P4. Business plan for scaling up a business...........................................................................9TASK 4..........................................................................................................................................10P5. Exit or succession option for small businesses..............................................................10CONCLUSION..............................................................................................................................12REFERENCES:............................................................................................................................13
INTRODUCTIONGrowth planning refers to an essential business activity that help an entrepreneur to planand track their growth in term of their market position as well as revenue. It assists a company toachieve higher growth in market by focusing over the value that customer can see (Barbour andDeakin, 2012). This project is about Rose cosmetic Ltd, which is planning to launch theirbusiness venture at UK in London. Firm is entering into a contract with 'Primary Care ProviderDevelopment and Resilience', for setting up their business in London. This assignment includesdescription about factors to be consider for evaluating growth and use of Ansoff matrix foridentifying growth opportunities. Further it discusses about sources of fund and business plan toscale up business along with succession strategy for further growth. TASK 1P1. Key consideration for evaluating growth opportunityBefore establishing a business, it is very essential for an entrepreneur to identify thegrowth opportunities in order to achieve better position in market place. This evaluation will helpin identifying the factors to be consider that contribute toward the growth of company. It alsohelp in formulating the strategies that support in establishing the business in new market place. Amodel was given by Michael Porter named as Porter's generic strategy. This model describeabout three major strategies that can be adopted by a company in order to achieve highersustainability in marketplace. These strategies are given below:Cost leadership:- This strategy state that an organisation must keep prices of its productas low as possible. This help in attracting large number of customer that further supportin achieving higher market share. Rose cosmetics Ltd can offer their beauty product atlow price that help them in capturing larger market share by attracting large number ofcustomers toward their product. Differentiation:- This strategy focuses on development of a commodity that offer uniqueproduct or services that is valued by customers and must be able to differentiate itselffrom other products in market place (Chapin, 2012). Uniqueness in product allow acompany to charge high price over their offers as they don't have any competitors inmarketplace. Rose cosmetics Ltd can offer its beauty product with some unique features
and benefits that help them in differentiating company's product from existing playerpresent in market. Focus:- This strategy generally concentrate on niche market and by determining thedynamics of market and demand of customers, try to offer a product which is either a lowcost or unique product for the market. Under focus strategy an organisation will be ableto build up a strong brand image among target market as they serve customers uniquely.By using this strategy Rose cosmetics Ltd can achieve higher brand recognition as focusstrategy generally offer product to a particular type of customer or a single product line. Itsupport in achieving higher recognition in market at minimum time. These all are the generic strategy given by Michael Porter among which differentiation isconsider as the most suitable competitive strategy for Rose cosmetic Ltd. As it is planning tolaunch its business of beauty products in London (Christofakis and Papadaskalopoulos, 2011).By offer products with extra benefits help company in differentiating its product from currentplayers in market. It also allow Rose cosmetics Ltd to charge high over their product which inturn support them in covering the cost incurred during launching, promotion and productionprocess. Apart from these strategies, there are certain factors that are present in macro economicenvironment and have a huge impact over the functioning of a business. This factors can bebetter analysis using a strategical tool known as PESTLE which identify the threats andopportunities present in market and can affect the survivability of firm. Factors in PESTLE are asfollows:Political:- It includes factors related to the political stability, change in governmentregulation etc. that can influence the organisational policies and taxes that a companypay. Political stability is considering to be the greatest strength of UK which is anopportunity for Rose cosmetics Ltd as they can formulate their business strategies andpolicies accordingly. Economical:- It involve the factors such as inflation rate, foreign exchange rate, interestrate, economical position of country (PESTEL analysis of the UK, 2018). These allfactors affect the business operations as well as decision making of an organisation. Dueto economic recession faced by UK which affected the economy of country and it leads
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