Opportunities for Planning For Growth - Assignment
Added on 2021-02-19
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PLANNING FORGROWTH
Table of ContentsINTRODUCTION...........................................................................................................................1LO1 .................................................................................................................................................1P1 Analyse key considerations for evaluating growth opportunities and justify theseconsiderations with suitable example for the organisation.........................................................1P2 Opportunities for growth applying Ansoff's growth matrix..................................................4LO 2.................................................................................................................................................6P3 sources of funding:.................................................................................................................6LO 3.................................................................................................................................................8P4 Development of business plan for growth of the organisation..............................................8LO 4 ..............................................................................................................................................11P5 Exit or Succession options for the business and its drawbacks ..........................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness Growth refers to the point where the business reaches the level of expansion andgoes for additional profit maximization through the business. In business life cycle the businessgrowth is in between the stage where the profit maximisation is at the peek point. There are fivestages in the business growth stages first stage is existence that is when business enters in themarket with new idea (Wu, 2015). Second stage is survival that is to compete with othercompanies. Third stage is success, fourth stage is point where company becomes obsolete. Laststage where the company comes at the maturity stage. Sovrin plastics company is the plasticinjection moulders which prepares moulders for injections. The company is situated in theThames valley area of Slough. Sovrin plastic company is a small scale industry of U.K. In thisreport the study will analysis the growth opportunities for the company. The study will focus onthe potential sources that required for the Sovrin plastic company to grow. Then Lights will beput on the business planning of the company. At last the study will assess the option for theexiting with its drawback and benefits. LO1 P1 Analyse key considerations for evaluating growth opportunities and justify theseconsiderations with suitable example for the organisation.Organisation growth opportunities:- this are those opportunities in which company tries to growtheir company. It is something that every company wants to acquire for development of thecompany. It has potential to provide small scale business growth by acquiring the opportunities.Sovrin plastics Ltd-It is a retail and wholesale firm of plastic items. The firm was started in 1957 in UK byVye and sons. It is subsidiary company of home and Colonial group. It has almost 30000 sq feetwarehouse facilities (Mason, 2015).This is an innovative firm always tries to find the best ways to sake the products. PESTLE analysis of the Sovrin plastics Ltd.Pestle analysis is done to check the growth of an organisation. If the pestle of anorganisation is proper and it is according to the needs of the organisation. Then it will help tocontrol all the factors which are affecting the company internally or externally. Includes thefactors- political, economical, social, technical, environment, and legal factors. Pestle provide theoverview of the factors that affect the organisations (Lambert and Oatley 2017). It helps to1
prevent those factors which will be affect the organisation. main reasons behind the selection andprocurement of these factors are written belowPolitical:- Sovrin plastics is affected by many political factors and prevention of this is veryimportant for the organisation. Political factors are those factors which are non controllablefactors. Company can not control these factors but it can be prevented, this are uncontrollablebecause this factors are controlled by the government of the ruling political parties. This factorsmay be in favour of the organisation and may not be, firm have to take a proper analysis. For thegrowth of the business and establishment of new store firm has to create an analytical study ofthis factors so that political factors can not affect the business (Wynn, 2017).Economical:- The second factor that affect the Sovrin plastics is Economic factors. This factorsare largely depends of the current economic conditions of the country and economy. It is betterto invest in those countries which has strong economic conditions and per capita income is highson that it is easy to survive that country and sale the plastic products. Few recent years UK hasdeclining economic conditions due to increase in the prices of almost all the products. Economicfactor also affect the organisation by the rate of employment of the country if the employmentrate is high than it will help to sale the large no. of product but firm will also get the employeeson high wages. And if the employment rate is low than this will impact on the sales of thecompany but it will get employment rate at the low cost and they do not have to pay high wagesto the employees. From the analytical study company tries to make coordination between bot thesituation (Daniels and Lapping, 2016).Social:- the social factors that affect the organisation by changing the consumer behaviourtowards the products of the Sovrin plastics. Social factors includes those factors which sociallyimpact the choice or the selection of the product. It can be by the culture, taste and preference,tradition and mentality of the public. Social factor also include how society thinks the product inthe market. For Sovrin plastics new platform is to sale products online this will help to getincrease sales and to reach maximum no. of peoples because it is the time where consumers don'thave so much time to spend on shopping the product like plastic item so they prefer to but itonline to save the time and to get the more choices. Now the society is changing rapidly and forthat company also have to change accordingly to them to increase the sales of the plastic itemsand make more profit. Corporate social responsibilities is a part of social factors (Daniels andLapping, 2016).2
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