Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1) Key considerations for evaluating growth opportunity........................................................1
P2: Ansoff's Model .....................................................................................................................4
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage.....................................................................................5
D1 Critically evaluate specific options and pathways for growth, taking into account the risks
of each option and how they can be mitigated. ........................................................................5
TASK 2 ..........................................................................................................................................5
P3) Sources of funds...................................................................................................................5
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context..................................................................6
D2 Critically evaluate potential sources of funding with justified argument for the adoption
of a particular source or combination of sources, based on organisational needs......................7
TASK 3 ...........................................................................................................................................7
P4) Business plan........................................................................................................................7
TASK 4 ........................................................................................................................................10
D4 Provide critical evaluation of the exit or succession options for a small business and
decide an appropriate course of action with justified recommendations to support
implementation..........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is a process which includes thinking about different activities which are
required to achieve the desired goals and objectives. Planning involves developing and creating
new plans that require conceptual skills and intelligent behaviour on which the future growth and
success of an organisation depends. Every business organisation wants to grow irrespective of its
size or nature (Barbour and Deakin, 2012). This target of growth and future development can
only be achieved with appropriate and effective planning for growth. For this assignment R
Robson (Guinot) organisation is selected which is a small scale company of UK located in Ascot
town, England. It deals in beauty treatment services such as hair removal, sun burn and all other
beauty treatment for both male and female. This report includes a evaluation of growth options
by using different tools like Porter's Generic Strategy ,PESTLE Analysis and Ansoff's matrix.
Various sources of finance and a proper business plan also form a part of this report.
TASK 1
P1) Key considerations for evaluating growth opportunity
Every bushiness organisation strives or make efforts for future growth and success to
meet its desired objectives and targets. Organisational growth provide a number benefits to an
organisation like greater efficiencies from economies of scale, increased survival rates, greater
profits and also provide more competitive strength. The concept of planning for growth
encompasses adequate amount of resources like capital, labour , machines ,etc. in order to
acquire best position within competing marketplace in an innovative and productive manner.
Hence, in regard of R Robson (Guinot) they also aims at achieving better growth and for that
purpose it is conducing research on needs of customers and try to explore the adjacent
opportunities (Beatley, 2014). Moreover, company wants to expand its target market share and
for that purpose it become necessary to get ahead of its competitors to attract more customers. R
Robson is making use of Porter's generic strategies to analysis different possible factors that can
help it in achieving the target of more competitive advantage in the business environment :
It provide different ways or strategies through which an organisation can pursue or gain
more competitive advantage in its chosen market. It includes four generic strategies which are
described below:

Cost Leadership- Under this strategy, firms aim at selling its product or services at
lowest cost either at average industry prices or below average industry price to gain more market
share which provides a higher profit that that of other rivals or competitors. R Robson can make
use of cost leadership strategy through reducing its cost and by providing its beauty treatment
services at a lower price to its customer. This will increase its market share and also provide
competitive advantage through making it more cost effective.
Differentiation Strategy- This generic strategy focuses on developing new and unique
product that customers will find better and distinctive than all other products offered by
competitors. Differentiation strategy can provide a way to R Robson to distinguish itself from its
rivals and competitors. A new and innovative services with better feature will provide better
satisfaction to customers of R Robson thus, provide it more competitive power which will
ultimately attract more consumers for it and also yields higher profits (Chapin, 2012).
Cost focus – this strategy mainly focus on providing low price to a niche market within
a focused area only. Under this strategy organisation are more focused towards satisfying needs
of an specific market at lowest possible prices. R Robson (Guinot) can make use of cost focus
strategy to establish its brand name and to gain more competitive edge in a particular niche
market.
Differentiation Focus- Under this approach a company attempts to outperform its
competitors through offering products that are superior than other rivals in a narrow a market and
trying to earn goodwill in a specialised small market. R Robson can make use of this strategy
through providing latest and most creative and safe beauty treatment to enhance the satisfaction
of customers and to gain the loyalty of its customers in a niche market.
Differentiation strategy is most suitable for R Robson as it ensure uniqueness of services
trough developing and creating new features and innovation in a service which makes it superior
that other products or service of rivals or competitors. Thus, this strategy will helps R Robson in
attracting more customers and also provide more competitive strength which will yield higher
profits and provide more growth opportunities (Denton and et. al., 2017).
PESTLE Analysis
This tool is used for analysis and evaluation of external factors of an business
environment. This tool is helpful for R Robson (Guinot) in determining different growth
opportunities and threat which are prevailing in its external factors.