Planning For Growth: Key Considerations and Opportunities

UNIT-42 Planning For
Growth

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1) Key considerations to evaluate opportunities of growth in organizational context............................3
P2) Growth opportunities by applying Ansoff growth matrix.................................................................5
TASK 2.......................................................................................................................................................7
P3) Source of funds for small business units...........................................................................................7
TASK 3.......................................................................................................................................................9
P4) Business plan....................................................................................................................................9
TASK 4.....................................................................................................................................................12
P5) Describe the exit and succession options for small business along with advantages and
disadvantages.........................................................................................................................................12
CONCLUSION.........................................................................................................................................14
REFRENCES............................................................................................................................................15

INTRODUCTION
The present world is full with competition where a lot of substitutes available for a single
product and service. For surviving in this extensive competition, it is imperative to prepare
suitable growth strategies in order to ensure success in an efficient manner. Growth opportunities
can be acquired by small as large entities for enlarging business operations in significant manner.
However, there is requirement of proper planning and strategies formulation with an aim to
ensure business growth & enlargement. Apart from this, it is also required to analyze business
performance in timely manner and then choose a suitable way to exit from market, if entity is not
able to earn adequate amount of profit. With proper planning, it is possible to maintain success in
business for longer period of time (Osiyevskyy, Costa and Madill, 2016). In present report,
Kaffeine is taken into consideration which is small café of UK and offers different verities of
coffee. They are looking forward for business expansion in more locations across the country.
The present report includes detailed analysis of external environment for which PESTLE
analysis is applied significantly along with Ansoff matrix in order to evaluate different strategies
of business expansion. Additionally, it includes various sources of funds, business plan for
further growth and different ways of exit and succession within business setting. Furthermore,
planning of growth is crucial for maintaining substantial level of sales and profit irrespective of
uncertainties.
TASK 1
P1) Key considerations to evaluate opportunities of growth in organizational context
Resources capabilities: Growth is really important for a company but resources are also
required in order to implement the growth opportunities successfully. In context of Kaffeine,
they have a lot of resources which will help in realizing growth opportunities in successful
manner. They have efficient, qualified and competent employees who are able to interact with
customers effectively. Along with this, they also use necessary equipments and tools for
implementing growth opportunities in an appropriate way.
Core competencies: Core competencies provide competitive edge to company by differentiating
it from other companies. In case of Kaffeine, efficient and qualified employees are the core

competency of organization. Employees are not only competent but also have the etiquettes to
work in service industry effectively. With competent work force, organization is able to
differentiate itself from competitors by maintain a strong & competitive image in market place.
In current challenging environment, it is important for each and every business entity to
identity necessary opportunities of growth and success. Without identifying growth potential, it
is not possible to stay in market place for longer period of time. Market research is one of the
best ways in order to identify growth potential and opportunities. For this purpose, managers also
undertake external analysis for analyzing the external market place (Mattila, 2018). By this, they
get to know about opportunities present in external environment along with the threats,
uncertainties associated with those opportunities. Growth opportunities allow a company in order
to prepare suitable strategies for earning substantial amount of profit. These opportunities are
examine by applying appropriate tools of external analysis such as PESTLE analysis which is
widely used tools for gaining detailed insights about outside environment of business. This tool
further helps companies in order to prepare appropriate strategies for bringing growth in
business. In this regard PESTLE analysis is mentioned as under:
Political Factors: It is concern with government rules and regulations, political
environment of a country which significantly affects business operations. It is analyzed that
current rules & regulations get change with change in political parties and current government
that also influence business setting (Wang and et. al., 2018). In context of Kaffeine, they are
operating within UK. Here, political environment of country is stable and favorable for startups
and small companies. Necessary subsidies, grants are provided by government for facilitating
growth & development of small entities. This practice will prove beneficial for respective
company and will help in its further enhancement. In UK, government offers grants and other
kinds of felicitation to new and small ventures so that they can grow and succeed in an efficient
manner.
Economical factors: Economical factors depict the economical condition of a country which is
made with inflation rate, interest rate, demand, supply and such other factors. Economical
conditions put a tremendous impact over business. In case of Kaffeine, it is affected with present
economic state of UK (Riggs, 2017). Due to ongoing pandemic purchasing power of individuals
has been reduced which negatively affect business & its profit margin. Impact of pandemic has