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Planning for Growth INTRODUCTION 1 TASK 11 P1. Key considerations for evaluating growth opportunities

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Evaluation of growth opportunities by applying Ansoff's growth vector matrix3 TASK 25 P3 Potential sources of fund available to business 5 TASK 37 P4. Exit and succession plan for small business enterprises8 CONCLUSION 9 REFERENCES 11 INTRODUCTION Planning for growth refers to the formation of various strategies and policies as well as implication of these tactics in business operations for achieving higher growth in market place (Achtenhagen and et. This report is based on planning of an entrepreneur to establish

Planning for Growth INTRODUCTION 1 TASK 11 P1. Key considerations for evaluating growth opportunities

   Added on 2020-10-05

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Planning for Growth INTRODUCTION 1 TASK 11 P1. Key considerations for evaluating growth opportunities_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Key consideration for evaluating growth opportunities...................................................1P2. Evaluation of growth opportunities by applying Ansoff's growth vector matrix.............3TASK 2............................................................................................................................................5P3 Potential sources of fund available to business.................................................................5TASK 3............................................................................................................................................7P4. Business plan for growth..................................................................................................7TASK 4............................................................................................................................................8P5. Exit and succession plan for small business enterprises..................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
Planning for Growth INTRODUCTION 1 TASK 11 P1. Key considerations for evaluating growth opportunities_2
INTRODUCTIONPlanning for growth refers to the formation of various strategies and policies as well asimplication of these tactics in business operations for achieving higher growth in market place(Achtenhagen and et. al., 2014). This report is based on planning of an entrepreneur to establishits new venture in UK market named as “Food Supplier Ltd ”, which offers fresh and organicfood items. For establishing their business, company is bidding for a contract of £180k named as“Data collection and modelling for food business compliance indicators”. For entering into thecontract company is required to raise sufficient fund. This report explains about main keyconsideration for evaluating growth opportunities and various sources of fund that can be usedby company to raise capital . Further it provide business plan of Food Supplier Ltd andsuccession strategies that can be used by company for eliminating future uncertainty. TASK 1P1. Key consideration for evaluating growth opportunitiesFor starting a new venture, it is very essential for an entrepreneur to evaluate everypositive or negative aspects of its plan and area in which it is going to setup its business. Thissupports in finding different growth opportunities available in marketplace and threats that mightimpact business operations. Food Supplier Ltd, can make use of “Porter's generic strategymodel” introduced by Michael porter which advises four strategy which can used by organisationto achieve competitive advantage in chosen market. This model will help Food Supplier Ltd inachieving higher market share and in achieving competitive edge. As company is planning forexpanding its business by offering its food and grocery items in market of UK (Porter's GenericCompetitive Strategies, 2016). Below mentioned are strategies stated under Porter's genericcompetitive model:-Cost leadership:- In this, Porter suggested that organisation must target the larger marketby offering product at lowest possible price. Firm have two options either they sellproduct and services at moderate industry cost in order to earn high level profit or to sellbeneath industry cost to gain higher market share. By applying this strategy FoodSupplier Ltd can capture larger market share by offering products at low prices. Thelower pricing strategy tends to influence more customers towards this business. Differentiation:- It refers to the strategy where a company target a broader market with aproduct that have unique features. By applying this strategy an Food Supplier Ltd can1
Planning for Growth INTRODUCTION 1 TASK 11 P1. Key considerations for evaluating growth opportunities_3
offer their product at higher price by making them more attractive as compare tocompetitors product. Offering organic products can be referred to a differentiationstrategy which could be beneficial for business. But for achieving success in differentialpricing strategy company is require to invest more over promotional activities. This helpin communicating the importance of product to the market. Cost focus:-It suggest that organisation should target a niche market having minimumcompetition and offer their product at lower manageable cost. By using this strategy,company can achieve maximum profit by developing proper understanding of marketdynamics and needs of customer (Arzaghi and et. al., 2017). Cost focus help FoodSupplier Ltd in achieving competitive advantage offering lower priced products availedthrough economies of scale and use of technology.Differentiation focus:- Under this strategy company target a niche market with a productor service that have unique feature. Differentiation focus involve strong brand loyaltyamong customers. For getting success in this strategy, it is very essential for company toensure that product remains unique so that competition can stay ahead. By using thisstrategy Food Supplier Ltd can differentiate their product in marketplace which furtherhelp in achieving competitive edge. These all are competitive strategies given by Michael porter, among which costleadership is most appropriate for strategy for Food Suppliers Ltd. As they want to start its newventure in UK market. This strategy will help in achieving higher market share as low price willgrab the attention of large number of people. So, by using cost leadership strategy company canachieve higher market sustainability. Apart from this it is also necessary for Food Supplier Ltd toanalyse the macro environmental factor before entering into new market. Evaluation of macroenvironmental factor can be done with the help of a strategical tool named as PESTEL analysis(PESTEL analysis of the UK, 2018). This tool includes various external factors that have andirect impact over functioning of business organisation. Following points describe the externalenvironmental factors:Political:- This includes factors like governmental policies, political stability, tax policiesetc., which directly affect the business operations. UK is consider as a most powerfulcountry and enjoys greater political stability. It provide higher growth opportunities to2
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