Planning for Growth: Key Considerations, Ansoff's Growth Matrix, Funding Sources, Business Plan and Succession/Exit Plan

Unit 42 – Planning for Growth
.

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse the key consideration for evaluate the growth opportunities..............................3
P2 Evaluation of growth opportunities using Ansoff’s growth matrix..................................5
TASK 2............................................................................................................................................6
P3 Sources of funding along with advantage and dis-advantages..........................................6
TASK 3............................................................................................................................................8
P4: Business plan for growth including financial information and strategic objectives for
scaling up a business..............................................................................................................8
TASK 4..........................................................................................................................................10
P5 Succession and Exit plan related with small business with their advantages and dis-
advantages............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.

INTRODUCTION
The term planning is explained as a process of advance thinking which is used for formulating
appropriate plans to accomplish the desired objectives and goals of an organisation. In simple
terms, planning for growth explain about the preparation of plans and strategy for accomplish the
success in future. SME are the business which perform their business in a small region or market.
Along with this there is less number of individuals and a limited capital is engaged to perform
company operation and function within a SME. Pleasure food is selected as an organisation for
this report and this is a new small business that operates operations with limited amount of
capital. Organic food and beverage are the product or sector in which pleasure food performs the
operations (Yunna and et. al., 2015). Moreover, this report highlights on analyse of key
considerations for evaluate the growth opportunities with induce of Ansoff’s growth vector
matrix. In the potential sources of funding and the exit or succession option for enter in market
will also focus in the report.
TASK 1
P1 Analyse the key consideration for evaluate the growth opportunities
Pleasure food is identified as a small sized organisation and they are offering, a large
variety of the organic food products to the customers. Along with this catering services are also
offered by the organisation into educational institutions. This refers that organisation has
different opportunities to enhance their market size by offering good quality of food products.
Moreover, most of the individuals are aware about health related factors so the demand of
organic food is maximising with rapid speed. The huge demand also helps organisation for
introduce the organic products directly to customers. The key consideration for evaluate growth
opportunities are mention as below:
Porter’s Generic Strategy
The strategy states different ways which help an organisation to accomplish the
competitive-edge in the market (Ciuriak and et. al., 2015). From the perspective of Porter there
are four different strategies is used by organisation for maximise the growth and expansion of a
business.
.

COST-LEADERSHIP- The strategy of cost leadership defines that an organisation offers
effective and good quality of products to consumers at a low or affordable price. The main
motive of pleasure food to utilise the cost strategy is to maximise the market share by managing
the operational and labour cost. Like, reduce in operational cost help management to increase
their profits.
DIFFERENTIATION- According to the differentiation strategy, this is essential for organisation
for offer unique as well as innovative products to the individuals especially, those which are not
available in market (Crow, 2015). Pleasure food needs highly specialised research team and also
innovative ideas for increasing the quality of products. Moreover, differentiation strategy helps
management to increase both market share and customer base through providing products in an
unique manner.
COST-FOCUS- The organisation firm focus on all existing products which exists in same
industry. So it helps them to provide products with low cost to get the competitive-edge in
market. Also, the cost focus helps management to attract more number of customers by
providing the good quality of products that are healthy and also available at low price.
DIFFERENTIATION FOCUS- In the differentiation strategy pleasure food management offer
the unique products to end-user and this helps management for differentiating the products from
competitor organisation. Moreover, to improve the market share and also to get increase
goodwill differentiation focus strategy is used by management to improve their customer base.
The management of respective organisation is focused to formulate the contract with Birchwood
Community School and this provide better catering services to students for accomplish the
desired growth in local market of UK. The selected strategy by organisation is differentiation
focus strategy to achieve the high growth as it helps company to provide unique name and good
quality products to the rivals.
PESTLE Analysis
The PESTLE analysis model is used by Pleasure Food Management and this is used to
understand and analyse macro-environment for understand the influence of macro environment
on company growth and operations.
Political- UK is a developed country and the government structure of organisation is also
transparent so this refer country is political stable (de la Peña, 2016). So this works as political
advantage for the pleasure food to expand their business.
.