Planning for Growth in Small-Scale Enterprises: Opportunities and Strategies

Unit-42
Planning for Growth

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Key considerations for evaluating growth opportunities and justify these considerations
within an organizational context..................................................................................................3
P2. The opportunities for growth to business by Ansoff’s growth matrix.................................7
TASK 2............................................................................................................................................8
P3. The potential sources of funding available to organisations and their advantages as well as
disadvantages...............................................................................................................................8
TASK 3............................................................................................................................................9
P4. Business plan for growth with financial information and strategic objectives for scaling up
an organisation.............................................................................................................................9
TASK 4..........................................................................................................................................12
P5. Reasons of failure of small business and its exit options with their advantages as well as
disadvantages. ..........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for growth is a strategic activity of businesses to plan and maintain growth as
well as success in their profitability. It provides a formed route to business to allocate resources
in a way that it increases productivity and can be unharmed by digital interruption or competition
in market (Achtenhagen, Brunninge and Melin, 2017). For this project, the chosen organisation
is Figment Coffee which was founded in 2018 and working as a small scale business with around
30 employees.
This report covers the growth opportunities and its competitive advantage for small-scale
enterprise. It studies the sources of funding available and its advantages as well as disadvantages.
It discusses the growth opportunities from VRIO framework, Porter's generic framework and the
Pestle framework. Lastly, it includes discussion about the exit options a small business have and
their benefits as well as drawbacks.
TASK 1
P1. Key considerations for evaluating growth opportunities and justify these considerations
within an organizational context
Small and medium size enterprises are independent firm with fewer number of employees
and differentiated according to their investment. SMEs plays vital role in economy growth by
providing career opportunities to large number of people. Figment Coffee is a small-scale
business commenced recently with the aim to serve the best coffee in town (Bae and Richardson,
2017). The company acquires its materials from local farmers and also treat them fairly.
Growth refers to in-depth and organized patterns of business in order to succeed in the
future. It fixes business targets and objectives and clearly defines strategies as well as plan of
actions to reach them. It views all the aspects of business such as strengths, imperfections and
opportunities in future Likewise, planning is defined as deciding before-hand what is to be done,
how, when and by whom. It describes the core activities of business, their objectives and its
ways to attain its goals. Small-scale enterprises uses business planning to establish its name in
market and to pull in investors. Growth and planning in Figment Coffee consist of stages from its
existence to its success (Demazière, 2018). It is an essential and strategic means for owners of
small-scale enterprises. It allows the owners of Figment Coffee to focus on certain ways which is