Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO 1.................................................................................................................................................1
P1 Considerations for evaluation of opportunities for growth and justification of the same
with an organisational context................................................................................................1
P2 Assessment of various opportunities of growth by with the help of Ansoff's growth matrix
................................................................................................................................................3
LO 2.................................................................................................................................................4
P3 Various sources of funding, their advantages and disadvantages.....................................4
LO 3.................................................................................................................................................6
P4 Business Plan.....................................................................................................................6
LO 4...............................................................................................................................................11
P5 Options for exit or succession for ThirdWay Group, their advantages and disadvantages11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Growth Planning can be defined as a business activity which enables the owners of the
business or an organisation to plan as well as rack growth in their overall profits and revenues
(Arku, Yeboah and Nyantakyi-Frimpong, 2016). The businesses are able to allocate the
resources that are available with them to a main effort and also to adopt various changes in the
industry that are driven by competition and other factors. Planning is considered to be among the
major factors that drive growth of a business throughout its lifespan. Organisation considered for
this report is ThirdWay Group which is small company that provides services of interior
decoration for various businesses according to their needs. The report evaluates various key
considerations in order to assess the opportunities for growth by using Ansoff's matrix model. It
also assesses the various funding sources available along with a business plan which consists of
financial information in order to scale up a business.
MAIN BODY
LO 1
P1 Considerations for evaluation of opportunities for growth and justification of the same with
an organisational context
Businesses come across several opportunities fro growth and expansion but it is a
difficult task to decide which opportunity is worth grabbing. Being a small business, ThirdWay
is a small company that offers services relating to design and workspace consultancy. Thus, there
are various factors that must be taken into consideration in order to evaluate various
opportunities for growth. The factors include competitive advancement, analysis of the market
etc. which are explained below -
Competitive Advancements –
Competitive advancement is when customers of a particular organisation prefer
purchasing its products against its competitors (Colantoni and et. al., 2016). Thus, in context of
ThirdWay, the company makes use of Porter's Generic model in order to analyse the opportunity
of growth and for identifying it, the company uses PESTEL analysis. Both the models are
explained below -
Porter's Generic Strategy Model
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There are four basic strategies in this model that a company chooses to adopt to achieve a
competitive advantage in the respective industry. This can be done by either lowering the costs
or differentiating the products to attract more customers and fulfil their needs.
 Cost Leadership – Organisations that opt for this strategy have the main objective of
selling their products at lowest possible prices in order to stand out in the market
(Denton, Forsyth and MacLennan, 2017). As far as ThirdWay Group is concerned, the
company can offer its services of decorating the interiors of small companies at very
reasonable and affordable prices as compared to competitors like Andrew Martin etc.
 Differentiation – In this strategy, the company focuses on differentiating its products in a
single or small number of markets in different regions. ThirdWay can make changes and
improvements in its products and then offer the same in different markets.
 Focus – This strategy deals with the organisation selects a particular segment in the
industry and thus makes changes in its strategies and also seek differentiation in the
segment it has targetted. ThirdWay can decide costing its products and services at as
minimum rates as possible.
As far as ThirdWay is concerned, it should opt for cost leadership strategy as it will help
it in attracting more customers and thus fulfil their needs.
PESTEL Analysis
 Political Factors – These factors include political stability of the country, various
policies like tax policy etc. The politically stable environment of the United Kingdom can
help ThirdWay in operating its business more effectively (Grooms and Frimpong
Boamah, 2018).
 Economic Factors – Various economical factors like economic growth, exchange rate
and interest rate, inflation etc. should be taken into consideration by the respective
company while developing its products. Also, economic condition of the UK is strong
which can be beneficial for ThirdWay.
 Social Factors – Also known as the socio-cultural factors, these factors include attitudes,
beliefs etc. of the people in a region and should be considered while developing products.
Apart from all this, the company can consider various cultures also.
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