Planning for Growth: Key Considerations, Ansoff Matrix, Funding Sources

Unit – 42
Planning
For
Growth

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK – 1.................................................................................................................................................3
P1. Determine key considerations for developing growth opportunities..........................................3
P2. Evaluate the Ansoff Growth Vector Matrix..................................................................................4
TASK – 2.................................................................................................................................................6
P3. Elaborate potential sources of funding with their advantage and disadvantage.........................6
TASK – 3.................................................................................................................................................8
P4. Generate a business plan for financial information and strategic objectives..............................8
TASK – 4...............................................................................................................................................11
P5. List exit or succession option for small business with benefits and drawbacks.........................11
CONCLUSION.......................................................................................................................................12
REFERENCES.........................................................................................................................................13

INTRODUCTION
The innovative ideas generated by entrepreneurs and directors within an organisation
for forecasting their vision and mission are termed as planning. It is essential for business
administration to improve their growth and remain steady at international marketplace with
aggressive strategies for competing with rivalries (Arler and Sperling, 2020). In this project,
Morrisons as being the fourth largest supermarket chain which comes after Tesco, ASDA and
Sainsbury. This project determines the key considerations for developing growth
opportunities. It further evaluates Ansoff’s Growth Vector Matrix for identifying various
strategies to be sustainable at global market. The project elaborates the potential sources of
funding with their advantage and disadvantage. Additionally, it generate business plan for
financial information and strategic objectives. This further lists benefit and drawback of exit
or succession option in petite enterprises.
TASK – 1
P1. Determine key considerations for developing growth opportunities
Morrisons:- This organisation is most popularly known for being the fourth largest
supermarket chain which comes after Tesco, ASDA and Sainsbury. It is headquartered in
Bradford, United Kingdom with its highly diversified products of foods and drinks, clothing,
books and magazines, CDs and DVDs. The Chairperson is Andrew Higginson and Chief
Executive Officer is David Plotts. It is retail industry with the ISIN number of
GB0006043169 that was founded in 1899 which is approx 121 years ago. The Company
consists of 110,000 numbers of employees with its visiting website of morrisons.com.
Competitive Advantage:- The ability of supervisors to gain advantage over
competitors for being stable at international marketplace through increasing customers value
by delivering qualitative services (Asaarik and Adongo, 2018). The main duty and
accountability for managers of Morrisons is to supply their products at lower cost which
provides benefits to company for increasing its sales that result in high loyalty of customers.
The Company is highly beneficial in promoting its products through high supply chain
management with print and social media for attracting large number of end-users. Managers
of Morrisons further emphasize on effective and fully utilisation of scarce resources that
builds core competence for company to compete with opponents through its capabilities.
Porter Generic Strategy for Morrisons:- It is the generic strategy being introduced
by Michael Porter in 1985 for creating and sustaining superior performance of an
organisation at global market. This strategy refers as procedure or tactics being implemented
by an organisation to gain competitive advantage through focusing on the best scheme to
succeed. Managers of Morrisons execute this strategy for analysing the reaction of varied
strategy in order to increase sales that creates opportunity for company to be stable.
 Cost Leadership:- The managers of business focus on selling their business products
at least-cost effective price which encourage customers to purchase more of their

commodities for gaining high satisfaction (Beloto, 2020). It is the process through
which managers of Morrisons aims to sell its goods and services through online media
that includes scented and unscented candles, tea-lights, diffusers, refills, etc. This
develops interest among customers for purchasing its products through online
applications at low cost that result in money and time management. The managers of
Morrisons can use this strategy for maximising revenue and profitability ratios by
developing corporate social responsibility with clients.
 Differentiation:- It refers as developing highly specialised product with unique
features and specialisation with segmented target market for satisfying their
differentiated demand. The managers of Morrisons aims to focus on new product life
cycle with the motive to develop diversified products for providing customers high
satisfaction at which they are ready to pay premium. The Company can use this
strategy for gaining loyalty of customers through delivering superior services at low
cost (Bennett, 2018).
 Cost Focus:- The process through which managers of organisation emphasize on
developing concentrated product at low cost for maximising their contentment level.
Managers of Morrisons further emphasize on developing unique products for its
segmented market in accordance to their geographical area for satisfying their
demands. This strategy can be used by managers to increase it demand for products
that enlarge customers for maximising profit-margins.
 Differentiation Focus:- The managers of organisation focus on differentiating its
products and services through being unique manufacturers at global market for
creating monopoly to meet the demands of differentiated market. This enlarges sales
and high profit-margin for meeting the requirements of customers to sustain at
competitive market. The strategy can be used by company for developing good image
and reputation among its customers for increasing brand awareness and positioning.
From the above mentioned Porter Generic Strategy, managers of Morrisons highly
adopts cost leadership as they emphasize on diminishing the price of their commodities
which may be consumed by large number of customers. This creates prospect for company to
generate growth and competitive advantage for competing with rivalries that are Tesco,
ASDA and Sainsbury.
P2. Evaluate the Ansoff Growth Vector Matrix
Ansoff Growth Vector Matrix for Morrisons:- This matrix refers as ability of
managers to plan and forecast their strategies for growth and development in order to sustain
at global market. It is most important for an organisation to determine the needs for
developing various strategies to increase their competitive advantages that improve potential
power and prospect for being stable (Cao, Sun and Chen, 2019). This strategy is named after
the Late Russian American Igor Ansoff who created the concepts for business executives to
improve their strategies. Managers of Morrisons implement this model for identifying the