Analyzing Key Considerations for Evaluating Growth Opportunities

This article analyzes the key considerations for evaluating growth opportunities in a business. It discusses Porter's Generic strategy, PESTLE analysis, and the impact of Brexit on business growth.

Planning for Growth
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. 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
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. 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. 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.

 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. So with formulating new
strategy as per market area aids management to mitigate risk for new store.
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:
 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.
 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 equipments are high in cost but with the globalisation of
business's it is analysed that by involving technical equipments 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.
Planning for Growth
P1) Analyse the key consideration for evaluating growth opportunities