Planning for growth

This assignment discusses key considerations for evaluating growth opportunities, evaluation of opportunities for growth using Ansoff's growth matrix, potential sources of funding available to businesses, and designing a business plan for growth.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key considerations for evaluating growth opportunities......................................................1
P2. Evaluation of the opportunities for growth applying Ansoff's growth matrix......................4
TASK 2............................................................................................................................................5
P3. The potential sources of funding available to businesses.....................................................5
TASK 3............................................................................................................................................6
P4. Design a business plan for growth that includes financial information and strategic
objective......................................................................................................................................6
TASK 4............................................................................................................................................7
P5. Assess exit or succession options for a small business explaining the benefits and
drawbacks....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Planning for growth is a business process in which administration of organisational plans
is utilised for development of business. With the changing condition of Brexit small and business
companies are influenced in favourable and unfavourable manner. The key consideration form
measuring opportunities that make contribution in development of the company. With the help of
different organisational resources, company can make success in it business and accomplish set
business goals (Arzaghi and et. al., 2017). This assignment is based on Rowlinson Knitwear Ltd
Ltd which is a manufactures appeals. This written document will discuss information about key
consideration to measure growth options and evaluation of development opportunities. Further
will explain about Possible sources of fund and a production of a business plan that consists
financial information and objectives. Exit and succession options will also define in term of
growth and development of a small business.
TASK 1
P1. Key considerations for evaluating growth opportunities
All kind of business have to find out growth options that can assist a business in planning
their activities and framing plan of action. For this, management of organisations required to
conduct internal and external analysis. In Rawlinson Knitwear, there are several kind of
challenges and completive issues which influence the business of this retail firm in term of
productivity, profitability and revenue. The manager of this firm can use utilize Quantum
technology and monitor the impact and affect which is created by external factors on the
business of this company. In context of Rowlinson Knitwear Ltd, the management of respective
firm can use Porter's Generic and PESTEL analysis which would assist in gaining growth
opportunists and the explanation of them as below:
Porter's generic model
This concept can be implement by Rowlinson Knitwear Ltd to monitor the direction and
strategy of the company. Different small and medium sized firms can use this concept to take the
advantages related to finance in term of minimising cost and providing goods. The strategies of
this model are mentioned as under:
Cost leadership- In this strategy, SMEs can make maximisation in their revenues and
market share by providing their products at low cost to its potential clients. This plan of action is
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accepted by Rowlinson Knitwear Ltd in term of developing financial situation of the company
in term of adopting new technology (Ballaro and Polk, 2017). With the help of it, SMEs can
make minimisation in per unit cost of production.
Differentiation leadership- It is another strategy which help in making development in
profit and productivity of company in term of making change in product or cost of them. In
Rowlinson Knitwear Ltd, the administration can adopt this strategy in term of launching a new
and innovative product( like male and female trendy wear (Biddle and Taylor, 2018). It can also
make changes in its pricing strategies in term of capture large market.
Focus- It is another plan of action that can be suggested to Rowlinson Knitwear Ltd in
form of making growth in its business. By adopting it, SMEs can enhance or develop business
activities and operations. The administration of respective company can make focus on cost
either differentiation. Simply, the firm can make growth by making change only in prices of
goods and services by adopting cost focus. Either they can make changes in both product and
process by accepting differentiation focus.
As per above mentioned content, it can be analyse that SMEs needed to make
concentration on utilisation of differentiation focus strategy as it includes of unique design,
shape, size of products that provided small and medium sized organisations to its customers. This
strategy will assist the firm in maximising the profit and sales of organisation.
PESTEL analysis
It is a framework that is used by companies to determine the impact of externals and
macro environment factor that create on the business of a firm. In Rowlinson Knitwear Ltd, the
management of this company can use this analysis to determine the influence of external factor
on its business and the description of it, is under:
Political- This factor consist different elements like government policy, foreign trade,
trade restrictions, taxation policy, government stability or instability etc. In Rowlinson Knitwear
Ltd. The stability of UK government create favourable impact and with the help of it, the firm
can operate its business in smooth and sustainable manner (Demir, Wennberg and McKelvie,
2017). But to Brexit, changes are occurred in taxation policy that negatively affect the company
in term of generating inflation.
Economical- It consider different components like currency rate, exchange rate, interest
rate, unemployment rate, inflation and deflation, economic growth and labour cost etc. In UK,
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Brexit highly create impact on economic condition of the country in term of generating inflation.
Due to maximisation in interest rate, the business of Rowlinson Knitwear Ltd also negatively
influenced. Apart from it, the small and medium size business company create employment and
job options to the local people of area which positively affect nation in term of minimising
unemployment rate.
Social- It consist culture, beliefs, values, religion, needs, taste, preferences and changes
in customers desires etc. In UK fashion and trend are changed rapidly so needs and demands of
customers also change according to them (Denton, Forsyth and MacLennan, 2017). This create
unfavourable impact on Rowlinson Knitwear Ltd in term of finance because it is a small-medium
sized company so it is not easy to rapid change in easy manner due to having limited fund to
operate business. But the company consider culture and value in clothing products( like School
wears) which favourably affect the firm.
Technological- This factor consider automation, advance technology, artificial
intelligence, research & development, technological changes and awareness etc. In current era,
there are different kind of changes occur in technology that create favourable and unfavourable
impact on business organisation. For example, if Rowlinson Knitwear Ltd adopt different
promotional technologies like social media, web ads and paid advertisement then it positively
affect the company in term of creating awareness and improving brand image. But if the
management of respective firm have not information about technological change then it create
negative impact upon the development of it.
Environmental- This component consider ecological and environmental aspects like
climate, weather, environmental law, pollution act, carbon emission etc. The administration of
Rowlinson Knitwear Ltd electively follow environmental law and make consideration on
reducing carbon footprints so that it can contribute in environmental safety. But the climate
factor can negatively influence because if the company do not have sufficient space to store raw
material then due to change in weather of climate, it can be destroy which fiscally affect the firm.
Legal- It refers to those laws and legislations that are framed by national authorities of
the nation for effective running of business. This factor consist employment act, equality act,
discrimination act, health and safety act and intellectual property right (DODDS, DIMANCHE
and SADOWSKI, 2018). The management of Rowlinson Knitwear Ltd properly follow equality
and discrimination in its business which favourably affect the firm in term of running its business
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in effective manner. But if the company will not follow health and safety act and will not provide
health and safe benefits to its employees then this factor can unfavourably affect the company.
P2. Evaluation of the opportunities for growth applying Ansoff's growth matrix
To make growth and development in a business the company formulate different plans,
actions, strategies and adopt different concepts. In Rowlinson Knitwear Ltd, the administration
of the company can implement Ansoff's Growth Vector Matrix in term of making development
in its business. The explanation of this model is as under:
Market Penetration- If the management of Rowlinson Knitwear Ltd adopt this growth
strategy then the firm can enlarge its sales, maximising profit and gain attention of number of
people of a particular market. In this approach, the firm can make development by offering its
existing product in existing market (Gallent and Tewdwr-Jones, 2018). For making growth they
can make innovation in its promotional tools or channels and making changes in pricing
strategies to maximise customer base and improve economic condition. There is not risk because
existing commodities are launched in existing market.
Product development- In this approach, company launch new product in existing market
in form of increasing customer base, sales and productivity. The administration of Rowlinson
Knitwear Ltd can adopt this growth strategy and making innovation in existing products or
manufacture new clothing commodities like trendy and fashionable male & female wear. It will
help in fulfilling customers needs, developing productivity and improving brand image. It is
risky more than penbetration because product is and it is not sure that is liked by individual of
existing market.
Market development- This growth strategy can be adopt by the firm in term of capturing
large market size and share, increasing customer base and making business expansion. By
implementing this development approach, the management of Rowlinson Knitwear Ltd can
expand its business in different nations with the help of its existing products. It will help in
satisfying the needs and demands of different customers of diverse countries and improving
brand image of firm. There is high risk in comparison to product development because existing
products are launched in to new market so it is not confirm the people like these goods or not. s
Diversification- By accepting this growth and development plan of action, the
administration of Rowlinson Knitwear Ltd can make growth in its business in term of expanding
its business in new market with new products (Gounaridis, Chorianopoulos and Koukoulas,
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2018). There are two types of diversification in which company can make related and unrelated
diversification in term of expanding business by doing something new in that sector in which
operate or by expanding in another industry like food sector, tourism industry etc. This strategy
is risky because product and market both are new and it is not clear that goods are liked by new
people of new marketplace.
From the preceding information, it can be conducted that the management of Rowlinson
Knitwear Knitwear can adopt product development strategy and with the help of this, the firm
can manufacture different kind of trendy and fashionable clothes as per consumers needs and
offer them in market. By adopting this growth option, the management of respective company
can make development in sales and productivity as well as profitability of the business. Because
fashion and trend change day to day so when the firm will produce and manufacture fashionable
and trendy clothes, people will purchase them high base which help in maximising sales of
organisation and help in enlarging customer base as well.
TASK 2
P3. The potential sources of funding available to businesses
Source of fund
It indicates to the financial resource of a company which are effective to expand and
develop the business of a company (Grant, 2017). In context of SMEs like Rowlinson Knitwear
Ltd, there are different sources of fund that are beneficial for growth and business expansion of
respective firm. The explanation of them as below:
Bank loans- It is most common source which is basically used by companies to raise finance in
term of running the business of an organisation. The management of Rowlinson Knitwear Ltd
can utilised this term in source of funding as the firm feel safe in raising fund that means of lend
a definite amount of cost from banking institution for a specific time frame at some interest rate.
Advantages- The main benefit is that the nature of fund which is borrowing from bank is
flexible. The process of raising monetary value is easy because there is not a set of rules and
polices that how to expand fund or for what purpose. The rate of intersect is low in comparison
to other sources.
Disadvantages- The primary drawback is that bank loan is time taking and complicated
because it need many paper work and some time it is not easy to understand to a person.
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Angel capital- It is an effective source of raising fund to small and medium sized companies.
Angle investors are basically single who have spare finance accessible and are looking for a
higher rate of return if the company earn more profit margins and revenue (Heydari and Sullivan,
2018). There are expert companies who offer monetary value to the borrower.
Advantages- There is less risk because in it a borrower can not pay back the amount in
situation of failure of business (Kouba, 2017). This financial source fill in the gap among the
small scale fund offered by family and friends or venture investors.
Disadvantages- In it, the capitalist make full control over the finance they invested and
some time they behave rudely. The main disadvantage of borrowing fund from angle investors
then the loss of absolute control as a part owner.
Evaluation of potential sources of funding
On the basis of all preceding sources of finance bank loan is suggested as the most
effective alternative of funds to finance a new business venture. Rowlinson Knitwear Ltd can
raise fund in form of loan from bank and at the time of repayment the firm can pay less interest
rate on pre decided time with principle amount. It is an effective option of raising fund because
here the person should not liable to mortgage in a limited capital. The interest rate is also low
and these institutes also provide a specific time duration for the returning of fund.
TASK 3
P4. Design a business plan for growth that includes financial information and strategic objective
Business plan is a written report that is utilised by the company fro accomplishment of
business objectives that design by firm. Different financial projections can be formulated in by
agreements of monetary value. Following the business plan is produced in context of product
development in term of launching new product of “Ethnic Wear” fro all cultures like Asian,
African and others.
Executive summary- Companies can plan for their business expansion in form of manufacturing
new products in its current product line. To accomplish it, there is need to understand the needs
and demands of consumers so that the firm can appropriately fulfil their desires by offering
commodities as per their preferences.
Mission- The mission of the company is to developing profit and productivity of the company by
offing them a range of products as per their requirement.
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Vision- The vision statement of organisation is to be a good company in fashion and clothing
industry by attracting number of customer by offering quality products (Pallagst, 2017).
Objectives- The business objectives of the company is as under:
 To increase the sales of the company by 8% within 5 upcom9ing 5 months with the help
new manufactured product of “Ethnic Wear”.
 To improve the profit margins and revenues of the company in next 10 moths by 5% by
maximising customer base.
Strategy- it refers to those plan of actions and tactics that are used by the firm to resolve the
issues and effective running of the business. In context of new product development, the
administration of Rowlinson Knitwear Ltd can use STP analysis to determine the customers
regarding new product of “Ethnic Wear” in segmentation, the management of the firm can divide
market on the basis of behavioural and demographic segmentation such as culture, age, gender
and profession (Sarin, 2019). The company can target people for its new manufacturing like
people of age of 20 or more, married couple and the people who are highly related to culture. In
positioning, the firm provide a good position in the market by creating awareness about though
effective channels and tools of publicity etc. It will help in providing a place to this new product
in competitive environment. The company can use online and offline both way for the selling of
the clothing wear.
Financial projection- It is most crucial and essential for each business to analyse the entire need
of finance for launching a new product in market. Product development strategy also needs and
consumes more finance that can be needed by Small and medium sized company to undertake all
the functions that require monetary value.
PARTICULARS 6 months 6 months 6 months
Initial investment 12000 15000 18000
Borrowings(Bank loans, credits) 6000 7000 90000
Retaining earnings 7000 8000 9000
TOTAL 25000 30000 45000
MARKETING OUTLAY
Promotion activities 8000 10000 11000
Sales publicity 6000 10000 11000
Distribution and supply expenses 3000 10000 9000
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TOTAL 42000 60000 76000
Monitoring and controlling- It is most crucial to each business and business firm that they must
make sure effective control on business functions and operations that can be undertaken in
further course of business activities. It is essential to maintain a track on performance so that
company execute in appropriate manner. To monitor all business concern operations, a business
firm can determine all issue and impact that are faced by firm, can be managed and resolved in
adequate way.
TASK 4
P5. Assess exit or succession options for a small business explaining the benefits and drawbacks
Business need sufficient amount of finance to make effective and appropriate business
operations. If a firm is unable to make adequate arrangement of funds then the business of the
company impacted negatively and the company leave the market in which it is running (Sell and
et. al., 2018). Different plan of actions that must be accepted by Rowlinson Knitwear Ltd and
small- medium size company when they are facing these in kind problem. The description of
them as below:
Merger and acquisition- This strategy is utilised and implement by the business to buy other
business. It is beneficial approach because it frames an effective situation for both companies
(Tian, Ge and Li, 2017). Because by acquiring and merging business they can efficiently operate
their business function in adequate way.
Advantages-By adopting this strategy, organisations can make maximisations in market
share of the company. Mergers also assist in tax generation benefits to a firm and also make
contribution in cost minimisation that leads high returns.
Disadvantages- Due to merger and acquisition chances of arising issues and complexities
in business are high that can negatively affect the firm.
Liquidation- It is a plan of action in which all the business assets are sold out and operations of
a business come to end. This strategy is beneficial to small business and depended on
individuals. This can be adopt by those companies who realise that there are no profit can be earn
by the firm and it is the time to wind up the business.
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Advantages- it is effective because is flexible in nature and products can effectively be
sold by business. With the help of it, firm can easily recover the money form marketplace.
Disadvantages- The major drawback is that decision are taken by the firm quickly that
directs to a situation in which return is low. It also negatively affect relation of firm with
different stakeholders.
Integration- It indicates like management control strategy within which business aid its
activities and operation related to the current procedure of the firm. It is divided in to two types
vertical and horizontal under which is permit an organisation to make control over suppliers,
competitors and distributors. Some of the positive and negative impact of its areas following:
Benefits- It help the company by interpreting over the value chain of the company and
also make improvement in present corporate cultural system in term of achieve profit
maximization. It is also assist the component to admittance manufacturing inputs, distribution
resources, retail channels and process etc.
Drawbacks- In it, there are number of legal process and procedure which create
limitations to the company to enter into new market with the purpose of expansion and market
development. It consist upstream and downstream of assets in the structural regions of business
concern which minimise the acceptability ability
It can be determined that small business can adopt merger as exit option in the situation
of leaving market. It is an effective option because it does not create any unfavourable impact
upon company (Wynn, 2017). It also help in merging target audiences with that company who
acquire or merge with it. The firm can utilize merger and acquisition strategy to make growth in
the business of the company in term of increasing profit margins, market share and enhance
productivity
CONCLUSION
This has been concluded form the preceding describe content that to make growth and
development in a business, it is crucial for a company that it should make effective plan and
policies. So that is can run its business in effective and efficient manner in forma of
accomplishing its aims and objectives. By using different models, concepts and methods, a
business can make make development in term of profit and productivity. By using different
source of finance it can make innovation and with the help of different exit or succession options
a firm can also run its business or wind up it.
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REFERENCES
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