Assignment on Planning for Growth (Doc)
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Added on 2020-10-05
Assignment on Planning for Growth (Doc)
Added on 2020-10-05
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Planning for Growth
Table of ContentsINTRODUCTION...........................................................................................................................1P1. Analyse key considerations for evaluating growth opportunities and justify theseconsiderations within an organisational context.....................................................................1P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.............5TASK 2............................................................................................................................................7P3. Assess the potential sources of funding available to businesses and discuss benefits anddrawbacks of each source.......................................................................................................7TASK 3............................................................................................................................................9P4. Design a business plan for growth that includes financial information and strategicobjectives for scaling up a business........................................................................................9TASK 4..........................................................................................................................................11P5. Assess exit or succession options for a small business explaining the benefits anddrawbacks of each option.....................................................................................................11CONCLUSION .............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONGrowth is the process of development or increment in size, wealth or reputation. Agrowth plan helps business to track the expansion in their revenue. NM advance protectionlimited is a small private company of Stafford, England. The company is involved in the Burglarand fire alarm industry (Chapin,2012). The respective company is bidding a contract of £200k ofStaffordshire county council for maintenance of fire alarm system and installation of newsystem. In this report there is a discussion of the various growth opportunities such as Porter'sgeneric model, pestle analysis and Ansoff growth vector matrix which business can use in orderto expand. It also informs about the various sources of finance which business need in order togrow. Moreover, business plan is prepared to get the estimation of the organisation activities fortheir target. Lastly, there is a presentation of various succession plan which firm can use in orderto reach desired position.TASK 1P1. Analyze key considerations for evaluating growth opportunities and justify theseconsiderations within an organizational contextGrowth planning is the first step towards the achievement of the goal. By the existence ofthis organization is able to allocate their limited resources towards a thing which create a need toadopt change in the organization. The company making a growth plan in their organization inorder to gain some additional benefit over their competitor (Todes,2012). NM advance protectionlimited want to expand their business for which they are developing a product which is wirelessand easily place able at any place. In this section, there is a description of growth opportunitieswhich help business their size such as porter generic model and pestle analysis. Porter generic model : Porter present the generic strategies in order to earn acompetitive advantage. The firm position in the market depends upon the firm profitability aboveor below the industry. The above average profitability shows a situation of competitiveadvantage. According to Michael porter firm strength lies in one of the two heads which is costadvantage and differentiation. 1However, fails to develop an appropriate detailedbusiness plan for achieving a given organisation’splan f or growth and securing investment.
Cost leadership : It is a strategy in which company reduce the cost of product withoutcompromising on the quality. This was done by the business in order to increase their marketshare and to enhance their profit margin (ZHANG ZHAO and CHEN, 2013). NM advanceprotection limited can use this strategy in their business to attract large number of customer. Bythe help of this theory concerned organization able to get fulfill their contract effectively.Differentiation : In differentiation strategy firm develop some unique feature in theirproduct and services so that their product is valued by the buyer. . NM advance protectionlimited can use differentiation strategy in order to satisfy the changing need and wants of thecustomer. By adopting this method the respective company able to get appreciation from theircontract provider and attract large number of customer.Focus : The generic strategy focus on the area which is less concentrated by theircompetitive firm. Basically, in this focus is on the niche market which have contain differentneeds of customer (Hollander,2011). NM advance protection limited can satisfied customerunique need by providing low cost or specific product to the market.Cost focus : It is strategy of lower cost advantages which firm adopt for only for a one orsmall number of market segments. NM advance protection limited can apply in their business inwhich are similar to the high price product but have low cost to satisfy particular market.Differentiation focus : In this strategy business differentiate their product and servicesfor one or small number of target segments. The respective organization can use this method inorder to provide product to some different customer base.Cost focus strategy is best for the respective company to increase their market share. Bythe help of this they are able to attract the large number of clients and lack behind theircompetitors. As the competitors also try to provide different service but at the high cost. Theycan earn competitive advantage by providing unique services at the low cost. .2However, fails to develop an appropriate detailedbusiness plan for achieving a given organisation’splan f or growth and securing investment.
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