Planning for Growth

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Analysis of main consideration of development opportunities in company's perspective....1
P2. Evaluation of opportunities of growth..................................................................................4
LO2..................................................................................................................................................6
P3 Assessing financial resources available to business along with their Benefits and
Drawbacks...................................................................................................................................6
LO 3.................................................................................................................................................8
P4. Designing a business plan for growth...................................................................................8
LO4................................................................................................................................................11
P5 Exiting strategies for a small business enterprises and their benefits and drawbacks.........11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for Growth is an appropriate area of practice for an organisation which requires
the organisation to appropriately and effectively ensure a sustainable growth for the company. It
is an important aspect for a firm that is related towards enhancement of its sustainability, as well
as its competitive advantages within the marketplace (Wey, 2015). Hence, in this relation, the
report below is based on Ella's Kitchen, that is one of the most recognised organic food
organisations within the United Kingdom. The company currently deals in organic toddler food
items and looking to enhance its business practices to further grow within the market it operates
in. Therefore, the assignment covers an in depth analysis of key considerations that the firm must
consider when evaluating its growth opportunities, along with assessment of various methods
through which funding could be accessed by the firm. In addition to this, the report also covers
development of a business plan, along with communication of how best the business could be
scaled up. Moreover, the report also includes assessment of various ways in which the firm could
exit the business and implications of several options.
LO1
P1 Analysis of main consideration of development opportunities in company's perspective
In order to identify growth opportunities, a person can apply two basic model name
PESTLE analysis and BCG matrix (Wu, 2015). PESTLE analysis is used for identifying impact
of external factors on operations of an organisation. PESTLE stands for Political, Economical,
Social, Technological, Legal and Environmental. BCG matrix is a product portfolio which
classifies goods on the basis of their growth rate and market share. It is used to determine
product category in which company should do further investment . BCG matrix has four
quadrants star, cash cow, question mark and Dogs.
PESTLE Analysis:-
 Political Factors:
Political factors are impact of government policies, regulations bills,taxation system,
fiscal policy on the functioning of the company. In terms of political power , UK has a good
stand. UK has constitutional monarchy form of government in which sovereign authority is king
or queen. UK is politically stable therefore there is abundance of growth opportunities for Ella' s
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kitchen . Less fluctuation in political system enable streamlined operations of the company
however Brexit create cognitive state in trading world to some extent but soon it will recover.
 Economical Factors:
Economical factors includes inflation rate, foreign exchange rate, interest rates which
have a significant impact on the growth of company. In the indices of nominal GDP, UK possess
5th rank in the world. UK is a rich nation where people have very high purchasing power. There
is no price sensitivity among consumer hence Ella' s kitchen has wide scope of growth. High
GDP is favourable conditions for a company. Company should focus on quality rather than cost
cutting. Company should spend in effective marketing in order to increase brand equity which
would helps in increasing conversion rate.
 Social Factors:
Social factors refers to the culture, belief and lifestyle of citizens of the country.
Company have to take into account that whether culture and belief of people allow them to
purchase their product or not. Populations of UK are increasing day by day. Birth rate is
exceeding death rate. Death rate decreased due to advanced health remedy available in the
hospitals. There are huge opportunities for Ella' s kitchen to expand their business. UK' s
citizens like to wear suit and uniforms. They often wears suit in parties and offices. Hence
cultural factors acts as catalyst for firm's growth.
 Technological factors:
Technological factors defines how new innovation, invention, research and development
affect the operations of a company. UK possess highly advanced technology. Ella' s kitchen can
take the advantage of advanced technology in their operations. Company should devote money
and time in research and development in order create superior technology which would helps in
creating good brand equity. Company can use advanced technology machines to make good
quality product. Country have large number of sharp mind who can create high end technology.
Firm must utilise their expertise. Company have to continuously improve their technology and
procedures to survive in the market.
 Legal Factors:
Legal factors somehow collide with political factors because laws are made by
government. Legal factors comprise of labour laws, safety standards, consumer protection and so
on. Laws of UK promote the welfare of employees. Ella' s kitchen cannot make workers more
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