Sample Report on Planning for Growth - Assignment
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Added on 2021-02-19
Sample Report on Planning for Growth - Assignment
Added on 2021-02-19
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PLANNING FOR GROWTH
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Evaluate key considerations to evaluate growth opportunities along with justifying them incontext of organization................................................................................................................1P2 Mention some growth opportunities by applying Ansoff's growth matrix ...........................4TASK 2............................................................................................................................................6P3 Define the potential funding sources available for businesses along with their drawbacksand benefits.................................................................................................................................6TASK 3............................................................................................................................................7P4 Create an effective business plan which involves strategic objectives and financialinformation to scale up business.................................................................................................7TASK 4............................................................................................................................................9P5 Define succession and exit option for small business along with their drawbacks andbenefits .......................................................................................................................................9CONCLUSION ...............................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONPlanning for growth is defined as a measure in which business-owner or other any otherindividual working in an organization formulate different tactics and activities so that highprofits can be earned. Without appropriate planning, no business firm can attain desired growthand success due to lack of objectives and vision (Barnett, 2017). This assignment is based onNewbury news which is a UK based local weekly newspaper, headquartered in Newbury,Berkshire. Website of this paper is called as Newbury Today. This report will cover about thebasic considerations which are needed to evaluate growth opportunities along with Ansoff'sgrowth matrix to identify proper strategy for growth. Beside this, potential funding source arementioned along with their advantages and disadvantages. A business plan is formulated whichinvolves strategic objectives and financial information to scale up business. At last, successionand exit options from a business involving their drawbacks and benefits are mentioned. TASK 1P1 Evaluate key considerations to evaluate growth opportunities along with justifying them incontext of organizationNewbury news is a local newspaper company which provide news on daily basis to localresidents of West Berkshire and Newbury. Company is a SME which operates within a limitedregion only. Owner of business is planning to expand their business in new areas so that businesscan achieve desired success and growth without any complexities. In this context, there aredifferent frameworks which can be used by an organization to evaluate their growthopportunities in a proper manner (Colantoni and et. al., 2016). In case of Newbury news,manager of company can use Porter's Generic strategy to acknowledge the desired growthstrategy for company. Below are mentioned some aspects of porter's generic framework:Porter's generic strategies: This strategy defines the manner in which a business firmpursues competitive and other advantages within selected market. There are three kind of genericstrategies which are differentiated, lower cost and focus. A business organization can choose anyone strategy to attain high advantage over rivals. In context with Newsbury news, these strategiesare mentioned below:Cost leadership strategy: In this strategy, an organization increases their revenues andmarket shares by offering services to cost conscious customers in less amount. It is1
carried out by offering lower priced products in the targeted market. For example, themanager in Newbury news can enhance their profits and market shares by reducingproduction costs and charging average price to customers for these products. This willallow the company to achieve high revenues. Other than this, company can enhance theirmarket shares by charging less price to customers as due to lowered price, sales will beincreased (Fahlvik, Elfving and Wikström, 2014). Risk from this strategy and ways to mitigate the risk Low cost strategy can be a risk if other organizations operating in same industry will alsoreduce their costs. Due to this, Newbury news will not be able to achieve competitive advantage.Also, those organizations which targets narrow market can reduce their costs due to whichNewbury news will face high competition. Low price can also create negative attitude ofcustomers towards services of company. In this context, manager of Newbury news is requiredto advertise about their services more so that customers can trust them and prefer their services. Differentiation strategy: Under this strategy, a firm tries to offer a new and uniqueproducts or services to their customers. This benefits the organization in increasing theircustomer base and sales due to which organization is able to achieve high profit margins.In context with Newbury news, to use this strategy company is required to perform widemarket research. This strategy will help Newbury news in gaining competitive advantageover rivals due to which high revenues can be earned. Risk associated from this strategy and ways to overcome it Main risk from this strategy is imitation by competitors and potential changes in thedemands and preferences of customers. Beside this, the organisation which are using focusgeneric strategy can get more greater differentiation in market segment. Newbury news canovercome these barriers by appropriately carrying out research in market. This will helps inunderstanding the unfulfilled requirements of customers more deeply. By this, advantages overrivals can be attained as Company can offer highly differentiated service to their customers(Gallent and Tewdwr-Jones, 2018). Focus strategy: This dimension of porter's generic force is not any separate strategy andorganisations which prefer differentiation strategy can use focus strategy in conjugation.This strategy is mostly used by small business organisations which are not able tocompete with large companies. In this strategy, a company focuses on limited target2
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