Planning for Growth Sample Assignment

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Essential consideration to evaluate growth opportunity........................................................1
P2 Evaluation of growth opportunity by using Ansoff growth vector matrix............................3
TASK 2............................................................................................................................................5
P3 Different sources of funding for organisation........................................................................5
TASK 3............................................................................................................................................6
P4 Business plan for growth.......................................................................................................6
TASK 4............................................................................................................................................8
P5 Assess exit or succession options for small business.............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is the key element for every business as it helps the businessman to use the
available resources for growth purpose. It refers to the organisational activity which supports the
owner to identify available opportunities and utilise them for business growth (Albert, 2017).
Present report is based on the LPC transportation Pvt. Ltd. It is a small company which offers
transportation services in the market. This company take contract from emergency tender in
which they needs to connect with the potential suppliers. In relation to this, internal and external
business environment are analysed to identify available business opportunities. Further Ansoff
matrix is described to analyse available opportunities for growth. Different sources of funding
are described as per the need of financial bid.
TASK 1
P1 Essential consideration to evaluate growth opportunity
Business environment is dynamic in nature and its essential to analyse internal and
external environment to identify the available opportunities. For evaluating the business growth
it is necessary for the business manager to formulate appropriate strategies which helps in
analysing present strengths and weaknesses, opportunities and threats. Further this analysis will
help in making beneficial business plan with several growth options. In this, various important
consideration are used to analyse growth opportunity.
Competitive analysis: This analysis is based on identifying the strengths and weakness
of competitors and understand their strategies that helps them in dealing with it. In addition to
this competitive analysis is a kind of marketing plan to modify the internal features of product
and services to make them unique to grab targeted customers and market. In relation with LPC
transportation Pvt. Ltd, this company is focusing on grabbing customers attention by providing
innovation and modification in their existing transportation services (Allmendinger and
Haughton, 2012). For this, manager of the company formulates various plans to understand the
product and services of its competitors, their targeted customers and market share, their current
profit margins and strategies in order to defeat them.
Porters Generic Strategies: These strategies are the ways through which business can identify
the current financial situations that whether the company is earning above the average profit
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margin or below and chooses suitable competitive advantage at market place. Three different
strategies covered bin this analysis are evaluated as below:
Cost leadership: In this strategy, prices of the products and services are reduced to
increase profitability. low cost products and services are mostly preferred by vast range of
customers which will directly enhance its sales and improve the profitability (Barbour and
Deakin, 2012). LPC transportation Pvt. Ltd can grab attention of maximum number of customers
by availing their services on discount and increase its market share.
Differentiation: In this strategy major emphasis of the organisation is on providing
unique and quality services to its customers. In relation to this LPC transportation pvt Ltd.
should focus on research and development to know the wants of customers in order to modify
their existing services and make it different from its competitors.
Focus strategy: In this strategy LPC transportation Pvt. Ltd should focus on developing
their products and services according to the needs and requirement of customers. Focus strategy
emphasize on understanding the dynamic nature of the market and should offer services to the
targeted customers.
From the above mentioned strategies this company have chosen the cost leadership and
differentiation strategy to capture targeted customer segment by providing them services at
affordable prices and also offer them differentiated services.
External analysis: This emphasize on analysing external environment of the business to identify
positive and negative impact of the external factors on business and growth. Here, PEST analysis
of LPC transportation Pvt. Ltd is done in order evaluate their effect on this company. Factors
considered under PEST analysis are evaluated as below:
Political: This factors involves the influence of government over the business such as tax
policies, trade tariffs, fiscal policies etc. In context to LPC transportation Pvt. Ltd, this company
can be affected by the changes in tax policies of service sector.
Economical: Changes in the economical factors like foreign exchange rate, inflation rate,
growth pattern and interest will affect the business environment (Beatley, 2014). Increase in
inflation rate have will directly decrease the purchasing power of the customer as the prices if the
products and services will be raised.
Social: Social factors is influenced by the factors such as demographics, population,
culture trend of the market. In this context to LPC transportation Pvt. Ltd, consumer buying
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