Planning for Growth: Evaluating Opportunities, Ansoff's Matrix, Funding Sources, and Business Plan

Planning
for
Growth
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: key considerations for evaluating growth opportunities.......................................................3
P2. Assess growth opportunities by applying Ansoff's growth vector matrix.............................5
P3. Assess probable sources of funds their benefits and limitations...........................................7
P4 Development of business plan................................................................................................8
P5 Assess exit or succession options for a small business as well as their benefits and
limitations..................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Planning for growth refers to the strategic business activity that enables business owners
in order to make better plan or tack appropriate of growth within the revenue of goods and
services. On the other side it allows business to allocate their sufficient resources through
adoption of several changes to gain competitive advantages in an effective manner (Beatley,
2014). There are several forms of making plan in order to attain future growth of business. Thus,
it is important for every firm to follow effective plan or strategies to make business successful
within competitive scenario. This report is based on Stone Builder which is one of the best small
retail firm and deals with so many people in regards of “Replacement roof to listed building” is
called government contract in which firm has been developed £80,000 bid. Furthermore, this
report includes Ansoff's matrix, succession or exit plan for small business along with sources of
funding will get covered.
TASK 1
P1: key considerations for evaluating growth opportunities
Medium and small businesses have ample number of possibilities to enhance profit of
business in order to attain targeted sales and revenue of particular services. Thus, it is essential
for business to have large number of growth and opportunities to achieve competitive analysis
(Denton, Forsyth and MacLennan, 2017). In order to understand for this PEST and Porter's
generic strategies model considered as helpful aspect for Stone Builder so that they can beat
their competitors, those are as follows:
Competitive advantage: Within the competitive scenario there are large number of firms
thus, it is essential for top management to design different types of systems as well as structure to
form best ways at marketplace. Herein, executive of Stone Builders needed to use large number
of strategies by which they can construct edge over competitive firms by which they can attract
large number of customers. Porter's generic model uses by respective firm to gain competitive
scenario, those are as follows:
Cost Leadership: This strategy aids firm to develop their position in marketplace by
rendering services at minimum cost (Grover, Bokalo and Greenway, 2014). The Stone Builders
can opt for such methods or tricks through which market analysis can be conducted and target
audiences can be acknowledged. Here, prices offered will be low but quality as per desired
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standards for attracting more number of individuals toward their services. This strategy aims at
enhancing market shares.
Differentiation Leadership: The services given by Stone Builders cannot be compared
with what other delivers their customers. By making use of such kind of strategies, firm can have
innovation in services rendered (Hollenbeck, Noe and Gerhart, 2018). Like if Stone Builders
provides their customers with creative roof then it will create relevant impact.
Cost Focus: Here, emphasis is laid on niche market where they render services at low
prices. Through assistance of this strategy Stone Builders can have market analysis and identify
needs of their consumers. Like, waste will be minimised if Stone Builders renders services as per
preferences of their customers.
Differentiation Focus: In this context, firms emphasise on target group and services are
designed as per their needs. Stone Builders have to understand what is expected by their
customers at particular instance. By having differentiation, it will become easy to sustain within
market by having competitive edge (Levy, 2016).
Competitive Advantage with Opportunities for Growth
With respect to growth opportunities, Stone Builders have used external environment
analysis, i.e. Pestle. It will assist in understanding different factors which may hamper their
growth within the market. This is mentioned beneath:
Political factors: Stone Builders need to enhance their operations in market of Germany,
for this it is crucial to acknowledge their rules, policies, regulations and various other elements
which may affect their operations. By doing this, firm can identify further opportunities while
rendering their services in new market.
Economical factors: It is important for Stone Builders to evaluate the behaviour of
people in terms of whether they will make investments or not so that relevant outcome can be
achieved (Lewis, 2013). It will enable them to develop strategies as per economic rates. By
evaluating customers spending efficiency, creativity and other aspects Stone Builders can
captivate them by accomplishing their requirements.
Social factors: It involves attitude, belief and values of people along with elements like
age distribution, health, growth, etc. For expanding operations, Stone Builders needs to identify
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