Planning for Growth

PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION....................................................................................................................3
LO1............................................................................................................................................3
P1 key considerations for evaluating growth opportunities...................................................3
P2 Ansoff’s Matrix.................................................................................................................7
LO2............................................................................................................................................9
P3 Sources of funding............................................................................................................9
LO3..........................................................................................................................................10
P4 Business plan...................................................................................................................10
LO4..........................................................................................................................................13
P5 Exit or succession options for a small business..............................................................13
CONCLUSION.......................................................................................................................15
REFRENCES..........................................................................................................................16

INTRODUCTION
Planning refers as the procedure of carrying out operation that is required for
achieving desirable goal over the period. There are several benefits of planning for growth
such as it offers a scenario of business that how to perform it. Additionally, planning supports
company to identify market that it is large or growing. It becomes easier for organization for
building revenue. Planning not only support to grow business but also create clear picture of
the competitors in market. Apart from this, it assists company to develop business strategies
which is used to take competitive advantage from competitors. Growth planning can be
defined as the strategic business operations which supports business owner to create plan and
tracks growth in their income. It permits organization to allocate their fewer resources for
adapting changes in the industry. It is executed by digital disruption and helps to differentiate
from competitors. Planning is the foundation line of the business which supports to create
growth of firm in different market. There is an example of Prufrock coffee which is
established in Holborn, London, UK. It offers square mile coffee along with varieties. It also
offers tasty seasonal food to customers. It is a small-scale business in UK. This report covers
key consideration for evaluating growth opportunities.
LO1
P1 key considerations for evaluating growth opportunities
Porter Generic Strategic Model
It is strategic tool which helps company to gain competitive advantage in order to
market scope. Competitive advantage refers as an advantage which is taken by the
organization over the competitive products and business in industry market. This model is
basically interpreted three strategies such as
Cost leadership: it is beneficial strategy which helps business to enhance profit by reducing
cost while keeping product price average (Bates, 2018). As result it makes industry as low
cost producer in its industry. As low-cost producer enables to generate various source of cost
advantage. This strategy creates sustainable growth for the business and also enhance its
market share in business market. It has some drawbacks such as it requires effective use of
technology in the production process.
Differentiation leadership: it is another strategy which helps business to seek unique
dimension which is widely valued by buyers. Differentiation strategy not only leads

uniqueness in product or services but also differentiate product from others. This strategy
leads innovation in business that automatically creates sustainability in firm. It has drawbacks
as well such as changes in customer taste. Additionally, various companies look for other
strategies which can be able to get greater differentiation in market segmentation.
Focus strategy: Focus strategy keep control on narrow segment and that segment which
efforts to accomplish either cost advantage or differentiation. It helps business to build
customer loyalty on firm and their products (Mohajan, 2017). Additionally, it also helps
company to create product portfolio which automatically leads competitive advantage.
Justification
Focus strategy is the best strategy for Prufrock coffee because it keeps control on both
type strategies i.e. cost leadership and differentiation strategy. Apart from this, it helps
company to become cost leader in industry market. Differentiation leadership supports
company to differentiate product from others. This strategy is applied for narrow market
segmentation so, it is the best option for company.
Figure 1 Porter's Generic Strategies
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