(Doc) Planning for Growth Solution Assignment
Added on 2021-02-20
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Planning for Growth
Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1............................................................................................................................................3P1 Key consideration for evaluating growth opportunities....................................................3P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..............5P3 Potential source of funding available to businesses and discuss benefits and drawbacks7TASK 3............................................................................................................................................8P4 Business plan for growth that includes financial information and strategic objectives forscaling up a business..............................................................................................................8TASK 4 .........................................................................................................................................11P5 Exit or succession options for a small business explaining the benefits and drawbacks ofeach option............................................................................................................................11CONCLUSION .............................................................................................................................12REFERENCES..............................................................................................................................14
INTRODUCTION In order to achieve high success and growth, it is necessary for every businessorganisation to develop and implement proper plans so as to attain goals and objectives in aproper manner. Therefore, Planning is an important aspect for every company to achievecompetitive advantage and effectively competes in the market place. It also assists in enhancingthe growth of the nation. In addition to this, SME's also plays an important role to plan growth oftheir business by framing proper strategies. Present report is based on Trading scents which is aleading distributor of cosmetics, perfumes, skin care products from Iver, Buckinghamshire,United Kingdom (Abolhasani and et. al., 2016). This report will throw highlights on keyconsiderations of evaluating growth opportunities and different methods of funding. Along withthis, business plan is also developed that includes financial information and strategic objectives,hence it also assess exit and succession options for small business. TASK 1P1 Key consideration for evaluating growth opportunitiesPlanning for growth is a vital component for the business organisation to develop andgrow their business and maintain its sustainability in the long run. This will assist the respectivecompany to frame effective strategies and captures larger market share. In context to Tradingscents, which is small company provides cosmetic, perfumes and skin care products, its mainfocus is to provide products to the customer according to their demands and requirements and asper the changing trends in the market. This determines the respective company to evaluate keyconsiderations for the growth opportunities. These are discussed as follows- Porters Generic StrategyIt is an effective model which assist the business to frame and develop proper strategies byanalysing the level of competition. This model consists of four strategies which can be used thesmall business in order to enhance their performance and captures larger market share. Strategieswithin the model is described as follows-Cost Leadership- It is a type of strategy in which company provides quality products tothe customer at a lower rate, as to make the products affordable to them. This will assist
them in attracting larger customer base and attains competitive advantage from its rivals.In context to Trading scents, it can provide products at a lower rate, thereby reducing theextra charges and tax on the product so as to grow their business by enhancing marketshare.Differentiation- In this strategy, company provides highly unique and differentiatedproducts so as to gain attention of larger customer and therefore maintains growth of theirbusiness. In such case, Trading scents can provide unique and differentiated products asper the customer needs to capture larger market share. Cost Focus- In this strategy, main focus of the company is to provide quality products ata lower cost to fulfil needs and requirements of niche market targeted customers.Therefore, Trading scents can target specific niche customers and provides products at anaffordable price (Ahmed and Bramley, 2015).Differentiation Focus- Under this strategy, firms seek differentiation of its product in itstarget segment. This assist the respective company to provides differentiated productsfocusing on specific market. This will assist the firm to maximize its profitability andcaptures the segmented market. As Trading scents is a small business it can adopt cost leadership strategy by providing qualityproducts at an affordable rate and can enhance the market share and develops their business. Aswith this strategy firm can acquire and sell the product to the individual customer which willover reduce the per unit price of the product and attracts large customers. PESTLE analysis PESTLE analysis This is also an effective model, through which Trading scents can analyse the externalenvironmental forces and frame proper strategies to grow and develop its business. This isdescribed as follows-Political- It is concerned with the political condition of country which has effect on theoperation of the business activities of Trading Scents. There is stability of the politicalrules and regulations which allows respective company to grab various opportunities anddevelops and grows the business to gain competitive advantage.Economic- As with the effect of Brexit, it led to open various opportunities for smallbusiness to operate effectively and provide the products without facing much issues of
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