Planning for Growth Solved Assignment
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Added on 2021-02-22
Planning for Growth Solved Assignment
Added on 2021-02-22
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Planning for Growth
Table of ContentsINTRPODUCTION.........................................................................................................................3LO 1.................................................................................................................................................3P1 Evaluating growth opportunities and considerations.............................................................3P2 Evaluate opportunities for growth applying Ansoff’s growth vector matrix.........................5M1 Options for growth using analytical frameworks to demonstrate competitive advantage....6D1 Critically evaluate specific options and pathways for growth, taking into account the risksof each option and how they can be mitigated............................................................................6LO 2.................................................................................................................................................7P3 Sources of funding available to businesses and discuss benefits and drawbacks..................7M2 Sources of funding and justification for adoption of an appropriate source of funding.......8D2 Critically evaluate potential sources of funding with justified argument for the adoption ofa particular source or combination of sources, based on organisational needs...........................8LO 3.................................................................................................................................................8P4 Business plan for growth that includes financial information and strategic objectives forscaling up a business...................................................................................................................8LO 4...............................................................................................................................................12P5 Exit or succession options for a small business explaining benefits and drawbacks...........12M4 Evaluate exit or succession options for a small business comparing and contrasting theoptions and making valid recommendations.............................................................................12D4 Provide critical evaluation of exit or succession options for a small business and decide anappropriate course of action with justified recommendations to support implementation.......13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14.......................................................................................................................................................15
INTRPODUCTIONPlanning for growth is outlined as a business strategy which assist manager and owner oforganisation to make plan and track growth in terms of revenues (Barbour and Deakin, 2012).This can help business to allocating limited resources for centred efforts in order to adaptchanges of industry which are through digital disruption and differentiate from competitors. It isvery important for organisation to do proper planning for growth in order to survive incompetitive market. The given report is made on Small Street Espresso which was founded in2012 at United Kingdom. It is a small organisation which serves delicious cakes, breads, pastries,sarnies to their consumers. The aim of this assignment is to highlight growth opportunities,various methods of funding and business plan. It also discusses about ways through exit andsuccession of organisation is made.LO 1P1 Evaluating growth opportunities and considerationsIt is a problem for small enterprise to adopt available opportunities from competitivemarket. In order to solve such issues, they need to make proper strategy for business for survival,growth and success. The factors considered for success and growth are as follows:Competitive AdvantagesIt is defined as conditions which allow organisation to provide products and services atlow price in effective manner. This is regarded as favourable position which seeks organisationto earn more profits then their competitors (competitive advantage, 2019). Small Street Espressohas followed different strategies for competitive advantages which are as follows:Competitive Advantages as a Foundation of GrowthFor growth of respective organisation, it has used Porter's Generic Strategy that consistsof four strategies which are described below:Cost Leadership- The objective of this strategy is to become low cost producer inmarket. Small Street Espresso can use such strategy for becoming low cost producer by doinghigh productivity, use of capacity of utilisation, using technology, lean production methods. Inthis price is low and quality is high to attract large number of consumers. Cost Focus- It is the strategy where organisation can produce similar products at highprices. In order to adopt such strategy, Small Street Espresso need to focus on particular
consumers as all cannot pay high prices for same products which is available to others industry.The wastage is low because of customisation of products. As it is focusing on their loyal andtrustworthy consumer who purchase goods from them so they can charge high prices which leadsto create profit increment. This create opportunity to sustain loyal consumers.Differentiation Focus- In this strategy, business differentiate themselves from one orsmall number of target market segments (Porter's Model of Generic Strategies for CompetitiveAdvantage, 2018). Small Street Espresso has an opportunity to grow through this strategy as theyfocus on particular consumer and different from their competitors. For adoption of such strategy,market analysis is important to know about consumers’ requirements and produce accordingly. Differentiation Leadership- This strategy helps respective organisation to target largenumber of markets and achieve competitive advantages through differentiation. This helps themto design new products that is low calorie chocolate and cookies and services for entering intonew Spain market.After analysing various strategies, it can be concluded that, Small Street Espresso shouldfollow differentiation leadership strategy for their consumers. This helps them to move as pertheir consumers and target large market segments. They can also design new goods and servicesfor their consumers in effective and efficient manner.Competitive Advantage with Opportunities for GrowthFor growth opportunities, Small Street Espresso has used PESTLE model in order toanalyse market and their competitors. There are six components of this model which aredescribed below:Political Factors- If Small Street Espresso wants to expand their business in othermarket such as Spain then they have to analyse political factors like policies, barriers, rules andother for effective decision making. It assists in conducting business activities in effectivemanner and grabbing opportunities for production (Beatley, 2014). Economic Factors- For expanding business in Spain, Small Street Espresso need toanalyse power of consumers to buy goods and services. It aids in designing proper strategiesaccording to economic rate of that place. This helps respective organisation to know about theirconsumers and make planning accordingly. Social Factors- It is defined as belief, values and attitudes of individual with variousfactors like population growth, age distribution. For expanding business, requirement of
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