Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key considerations to evaluate growth opportunities............................................................1
P2. Evaluation of growth opportunities by applying Ansoff's Growth Vector Matrix................5
TASK 2............................................................................................................................................6
P3. Potential funding sources with benefits and drawbacks........................................................6
TASK 3............................................................................................................................................8
P4. Business Plan comprising strategic objectives addition to financial information.................8
TASK 4..........................................................................................................................................10
P5. Options of exit or succession including benefits and drawbacks........................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth enables organisational owners to plan addition to track revenue
growth (Banks, 2013). It helps in allotment of restricted resources in context to centralised
efforts so that pertaining changes within industry are adopted in effective manner. Effective
growth plan allows to become efficient in generating more revenues through emphasising
towards customers values and distinguishing business from rivals. Growth plan helps in
analysing market situations and framing strategies so to build more profit margins. To gain
knowledge about the concept of planning for growth, Trading Scents is hand-picked which is
situated at Iver, England, United Kingdom. The company mainly deals in cosmetics, perfumes
addition to skincare products. The report includes essential considerations considered by SMEs
while evaluating growth opportunities. It further discusses potential funding sources that are
available with business. In addition, it involves business plan that constitutes financial
information together with strategic objectives. It also describes various ways through which
business owners exits business.
TASK 1
P1. Key considerations to evaluate growth opportunities.
Planning is done to create blue print so to attain business growth in the competing
scenario. It is an activity which is performed to build various options or alternatives to face
uncertainties that can arise in future. Small businesses needs to frame strategies so that
opportunities are grabbed for business expansion (Baran, 2019). In context to Trading Scents,
grabbing opportunities through proper planning can determine success with growth in
competitive marketplace.
Competitive Advantage:
Situations or circumstances that allows business to generate more sales as compared with
market rivals are termed to competitive advantages. In such conditions, entities manufactures
goods having balanced values at lower rates in desirable manner. This is crucial for Trading
Scents to formulate plans, strategies, programmes addition to strategies to gain competitive
advantages. Following are the strategies opted by management of Trading Scents:
Competitive advantage as Growth Foundation
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Competitive advantages in context to growth includes resources, capabilities as well as
core competences. Analysis of considerations through Porters Generic Model as used at selected
firm is as elaborated:
Porter Generic model: The model assist the ways that can help in following competitive
advantages across selected market scope. It helps managers to analyse market conditions and its
position as to make alterations in policies or programmes (Porters generic model. 2019). Its
strategies are as elaborated:
Cost leadership: Organisations goes with the strategy with the objective to produce
products at lower costs and become famous with the name of lowest cost producer within the
industry. Gaining competitive advantages by Trading Scents requires to enhance profitability by
reducing prices of perfumes or cosmetic products. The organisation by adopting such strategy
can supply unique services with innovative commodities at affordable prices in the market. The
company has resources such as efficient logistics with cheap labour addition to monetary funds
to make technological investments which can lower costs of key products and supplying same
below competitors prices.
Differentiation: It comprises producing goods which are attractive and different from
those of rivals. Trading Scents has capability to perform research, innovation development and
delivering high quality commodities. Attaining competitive advantages through differentiation
strategy can help in producing innovate perfume products for targetted audiences. It will help in
manufacturing products that are different from competitors and attracting larger customer base to
achieve competitive advantages (Brooks, Donaghy and Knaap, 2012).
Cost Focus: It emphasis on consumers addition to niche market to offer goods at lowest
manageable prices. The strategy will help management of Trading Scents to prefers to point clear
niche market through properly understanding market dynamics together with consumer wishes in
order to ensure that they delivers products at low costs. The organisation posses skilled and
qualifies human resources who analyses market situations to understand consumer requirements
so that products are produces accordingly.
Differentiation Focus: It concentrates on manufacturing unique featured product with
proper analysis of specified market. It includes powerful brand loyalty and faithfulness between
consumers. Trading Scents can gain competitive advantages by producing unique commodities
that are different from competitors. The company has core competence of high skilled human
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