Planning for Growth : Hichem Ltd
Added on 2021-01-01
13 Pages4084 Words188 Views
Leadership ManagementPolitical Science
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Planning for Growth
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Key considerations for evaluating growth opportunities.......................................................3P2 Opportunities for growth using Ansoff's growth vector matrix.............................................5TASK 2............................................................................................................................................6P3 Sources of funds with advantages and disadvantages............................................................6TASK 3...........................................................................................................................................8P4 Business plan for growth of business.....................................................................................8TASK 4..........................................................................................................................................10P5 Succession and exit plan for small business........................................................................10CONCLUSIONS............................................................................................................................11REFERENCES..............................................................................................................................13
INTRODUCTIONPlanning refers to the development of strategies, assessment of goals, assumptions ofuncertainties. It helps to set objectives and perform activities in order to reach the same..Management of an organisation plan for future risks and operations to improve the productivityof the products. Managers plan for the activities and events that has to be performed by thecompany in future (de Roo, 2017). Hichem Ltd is manufacturing company of chemical products,and it is going to be launched in London . Company enters to a contract which is “Supply anddelivery of Chemical Substances” for launch.This project report consist various topics such as Porter's five force model, PESTLEanalysis, Ansoff's growth vector matrix, sources of funding etc. Business plan with detailedinformation and options for succession and exit are also covered under this report.TASK 1P1 Key considerations for evaluating growth opportunitiesPlanning is a tool which is required to achieve goals and make strategic decisions. Ithelps to create various options to face future uncertainties. Hichem Ltd is a manufacturingcompany of chemical products, it is going to be launched in London. To make the launchsuccessfully the managers are required to make plans for this motive. There are two identifiedkey considerations that may help to attain growth objectives.Porter's generic strategy: It was introduced by Michael Porter. It can be adopted by theorganisations to reach to the level of competitive advantage, where they can get success morethan competitors by providing less costly and unique products to the customers (Dimitriou,2013). It includes four different strategies, that are explained below:Cost leadership: In this strategy an organisation set objectives to minimize cost and bethe lower cost manufacturer in its industry. It can be adopted by Hichem Ltd to be thelower cost producer in the industry so that it may help to attract customers. This strategyrelates to mass production, in which the company produces end number of products thatwill reduce the cost of production. For example Hichem Ltd can set low price for itsproducts while launching, it will attract more and more customers.Differentiation: It suggests the companies to produce different products as compare tocompetitors, it will help to attract customers who are willing to buy unique products. This3
strategy can be adopted by the managers of Hichem Ltd while launching its products inLondon, because the products with the element of uniqueness will help to attract morecustomers. It can be used by Hichem Ltd by providing different and quality products ascompare to other.Cost focus: In this strategy a company launch its products in a small market segmentwith low cost. This strategy can be adopted by Hichem Ltd to launch its product inLondon's market while launching products there. In this strategy, the price for theproducts will be comparatively lower then others. For example Hichem Ltd is going tointroduce its product in a small market segment with low price, it will help to recordcustomer's reaction toward their products.Differentiation focus: In this strategy unique products are introduced in a small marketsegment. It covers the needs of the customers while launching the products (Boserup,2017). Hichem Ltd can use this strategy while launching its products in London. This willhelp to target selected people and create various opportunities by fulfilling their needsand creating a good market image in London. Hitech Ltd is going to introduce itsproducts in London, in a small market segment with low price which will help to attractmore customers and satisfy them by providing unique products as compare to other.From the above mentioned strategies, the most relevant strategy for Hichem Ltd isdifferentiation focus. As it is going to launch its business in London so it should select a smallmarket segment to introduce its products there. It will be more beneficial rather than launching ina large market segment, because if the products are not according to the demand of customers orthey are not able to adopt those products than company can modify the products accordingly.PESTLE analysis:It is a tool that helps the managers in strategic decision making, byproviding them actual information of external environment of work place (Kerzner and Kerzner,2017). Hichem Ltd should conduct a PESTLE analysis to analyse the environment of theLondon's market. Following factors can affect the business of the organisation in London:Political: These factors are related to the government, it includes various policies such asfiscal, monetary, tax policies that are imposed by the government of the country. As UKhas constitutional autocracy, and the political environment is fair and stable hence, it is agreat opportunity for Hichem Ltd to launch its business in London.4
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