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Porter's Generic Competitive Strategies

   

Added on  2020-10-22

23 Pages5299 Words275 Views
GROWTH IN PLANNING

Table of Contents

Illustration IndexIllustration 1: PESTLE Analysis......................................................................................................6Illustration 2: Porter's Generic Competitive Strategies....................................................................7Illustration 3: Ansoff's Growth Matrix Model.................................................................................9Illustration 4: Different Funding Sources......................................................................................13Illustration 5: Steps in Business Plan.............................................................................................18Illustration 6: Exit or succession Strategies...................................................................................19

INTRODUCTIONPlanning is a process of various activities which is required by an organization to achievetheir desired goals. It also involves the creation and maintenance of a strategic plan whichrequires conceptual skills of their employees working there. In each field, there are differenttypes of plans which can help company to achieve their results efficiently and in the mosteffective way. It is one of the most important projects and time management techniques in thefirm. This is a technique of preparing a sequence of processes to get a specific goal. It helps as aguide for organizing, staffing, directing and controlling employees and management oforganization. Therefore, it is the basic or fundamental function of management system. Effective planning will provide support in managing risk element, instability in business andensure the development of strong team within enterprise and creation of competitive business-plan environment for managers.It is a great tool which can be used by them for expanding any business. This report willdiscuss key analysis for growth opportunities for an organization. It will also focus on variousmethods of funding available and will analyze its benefits and drawbacks with developing abusiness plan for firm which can help organization to increase its sales and services in the targetindustry.Present study is based on analysis and identification of opportunities to attain growth for abusiness enterprise. Also, emphasize upon the different methods of getting financial resources that helps theorganization to raise its sales and services in target sector. Ar last, various entry and exitsstrategies required and appropriate for business is discussed in this report.LO 1P1 Key considerations for evaluating growth opportunities for the organizationCrocus Limited analyzed as international company which is an online shop of nurserywhich deals in selling of flowers, tools of gardening and stuff in accordance with nursery such assolid pots etc. It is located in Windless, Surrey in the United Kingdom. Crocus is small businessin which approx. 80 employees are working. Now, the owner is planning to expand the businessand introduce an offline retail shop for their customers. For Crocus Limited, it is very importantto maintain a competitive environment for their employees to make them work more effectively

as it will help them in the expansion of their business in market. For growth of any business, theyshould consider the key aspects such as their resources and capabilities and core competencies oftheir organization (Bridge, and Dodds, 2018).There are so many strategies available in the market which Crocus Limited can apply toevaluate their overall strengths and opportunities that are present in the business.It provides support in their business expansion in selected industry. Porter's Five Force modelthat can be utilized for analysing the bargaining power of customers and suppliers along withrecognition of competition within business. In contrast to this, PESTLE analysis provide supportin evaluation of various external factors such as political regulation, economic conditions, socialperception, technology advancement, legal regulation and ecological influence.Both the methods are very useful for Crocus Limited in expanding their business in the market.External Environment Analysis of Crocus Limited : This method is appropriate andbenefits for company to analyze different element which can be highly critical for themand can have a great impact on their organizational functions. So, they have to followthese factors for working effectively within market. Crocus Limited Organizationdelivers services associated with plants and nursery; It is significant for enterprise torecognise the components which can affect them while introducing their offline shops inmarket (Brinckmann, and Kim, 2015).Political FactorsIt is essential for them to analyze all laws and legislationwhich are required for them to open a store in the market.For example, proper licensing of the shop.Economic FactorsEconomic inflation can posses high influence upon company'ssales revenues.Recession is also a factor which can affects them a lot.Social Factors:It involves conduct of their customers like their needs andpreferences from Crocus Limited.It will help them in providing services according to them.Technological FactorsThis is essential for enterprise to utilize the new technologyfor production of goods which helps in improvement of

quality and increasing sales in market.Legal FactorsVarious key legislation like employment act, health andsafety act and other provisions that comply needs to complyfor smooth regulation of business.For example, labor law to maintain the rights of all theiremployees.Environmental FactorsThey should maintain the safety of their environment as theyare working as in the same field.Porter's Generic Competitive Strategies : This method helps the organization toanalyze the competition in the market. It can help them to plan their strategies which canIllustration 1: PESTLE AnalysisSource : (PESTLE Analysis with Mind Map Tools, 2017)

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