Planning for Growth: Evaluating Opportunities and Funding Sources

Planning for growth

Contents
Part..............................................................................................................................................................2
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
P1 Evaluate the key consideration for determining various growth opportunities and justify with respect
to choose organization.............................................................................................................................3
P2 Determine the opportunities for growth..............................................................................................5
M1 discusses the options for growth while using a range of analytical frameworks to demonstrate the
understanding of competitive advantage..................................................................................................6
D1 Determine the specific options and pathways for growth in order to get risk of each option and how
they can be mitigated...............................................................................................................................6
P3 Different sources of funds which can be availed by the organisation. Discuss their benefits and
drawbacks................................................................................................................................................7
M2 Potential source of fund which can be adopted by the chosen organisation....................................10
D2 evaluates the potential sources which can be adopted by the chosen organisation with respect to
their needs.............................................................................................................................................11
Part 2.........................................................................................................................................................12
P4 design of business plan for growth that includes financial information and strategic objective for
scaling up a business.............................................................................................................................12
M3 develop an appropriate and detailed business plan for growth and securing investment setting out
strategic objective and appropriate Framework for achieving the objective of the chosen organisation
...............................................................................................................................................................14
D3 demonstrate the business plan knowledge and understanding of how to formulate apply and
achieve the objective successfully.........................................................................................................15
P5 access the exist aur succession options for small business organisation and explain the benefits and
drawbacks of each options....................................................................................................................15
M4 determine the exit or succession options for small companies and contrast the opinions and make
a valid recommendation........................................................................................................................17
D4 provide a critical evaluation of the exit and succession options for the small business and decide an
appropriate course of actions which justify the recommendations in order to support the
implementation.....................................................................................................................................17
Conclusion.................................................................................................................................................19
References.................................................................................................................................................20

Part 1
Introduction
Business is an organisation which is engaged in making one's life or money while buying
and selling goods and services. In other words it is any of the activities who are engaged to earn
Profit ability from the market. It is important for every organisation to develop such a plan which
helps them to earn profitability from the competitive market. Growth planning is a strategy
which can be adopted by the companies that enables them to plan and track the organic growth
of their revenue. These kinds of planning helps the organisation to allocate their resources
towards a centred effort which can be adopted by the organisation to change in the industry
which can be because of digital destruction and differentiate them from the competitors which
are present in the market (Bamisile and et. al., 2020). The report is about a small medium
Enterprise whose growth opportunities are evaluated in order to justify this consideration. With
the help of answer of growth vector matrix model it is being evaluated the opportunities for
growth which can be availed by the organisation. Further, the options which can be adopted by
the organisation in order to understand the competitive advantage and specific options and
Pathways for growth and how they can be mitigated. What are the different sources of funds
which are available for the organisation with respect to their benefits and disadvantages and out
of them which option can be adopted by the organisation wall enhancing their forms justified
within argument that it can be adopted by a particular source or combination of sources as
required by the company.
Main body
P1 Evaluate the key consideration for determining various growth opportunities and
justify with respect to choose organization.
Boston consulting group matrix is the model which was founded by BCG's founder, Bruce
Henderson in the year of 1968. The growth share matrix is simply a portfolio management
Framework which can be used by the organisation in order to decide how to privately raise their
different business. It is the model which helps businesses analyze their portfolio of Business and

brand as it is a most popular tool which is used by the companies in marketing and developing
the strategies (Blal, Singal and Templin, 2018). As when the companies providing a wide range
of products have a portfolio of products. It is the problem for the organisation to purchase a
product portfolio and the model helps them to locate the investment which can be adopted by the
organisation in order to overcome the problems. The model is discussed below:
 Stars: These are such goods and services which have high growth in the competitive
market as compared with the competitors. The stars need to have more investment in
order to sustain the growth. Eventually they grow at a lower rate as they become the cash
cows.
 Cash cows: These are low growth goods with higher market share in a company's
environment. These are mature, successful products as they require less investment
(Chen, Yu and Jin, 2019). These kinds of organisations are required to manage on a
regular basis so that they can continue profit and are helpful to generate strong cash flow
that the company is required for its Stars.
 Question marks: these are such kinds of products with low market share operations in
high growth markets. These require substantial investment to grow and expand them into
the competitive market. The management of the organisation is required to think about?
Which ones should be invest in and what will happen if they fail.
 Dogs: there refers to products which have low market share in unattractive and low
growth markets. They are developed to encourage cash to break even but they are rarely
used by the investment. Dogs are usually closed or sold.
GE Matrix model
GE Matrix mode was developed in the year of 1970 by McKinsey and company. The model
discusses nine cell grid measures which can be used by the business organisation in order to
determine their strength against the industry attractiveness. It is a tool which is used by the
organisation in order to determine the strategic business units for product lines (Del Chiappa,
Atzeni and Ghasemi, 2018). It is based upon two variables that are industry attractiveness and
competitive strength of the company.
 Industry attractiveness: it is present on the vertical axis which helps the organisation to
divide into high medium and low. It is demonstrated as how beneficial it is for the

organisation to enter and compete with the competitors with respect to their profit
potential. Those companies which have higher the profit potential will be more attractive
in the market. It is important for the organisation to evaluate the industry attractiveness so
that the company can change with respect to the long run rather than near future as it
requires more investment to survive for a longer period of time. The most common
factors which can be looked at are: size of the industry, long run growth, structure and
life cycle of industry, external factors and segmentation of market.
 Competitive strength: it is present on the horizontal axis as it is also divided into three
parts that are high, medium and low. It is used by the organisation to measure how strong
and Competent a particular company is against the competitors. This can be used by the
company as an indicator of its abilities which can be used by them in order to compete in
the competitive market. The most common factors to look at are: profitability, market
share of the market, growth of business, brand equity, resources of the firm, loyalty of
customers and many others.
With context to Airdri Company, the organization can adopt the BCG model in order to
determine their growth as this model is simpler for the firm to adopt (Ehsan and Yang, 2019). It
is necessary for them as in growth share marketing with the combination of Low growth and
high share, High growth and Low share, High growth low share and low growth low share.
P2 Determine the opportunities for growth
Ansoff's growth vector matrix
The Ansoff Matrix is the tool which is used by the organisation in order to analyse and plan
their Strategies for growth. It can be also used by them in order to analyse the risk which is
associated with each of the strategies that is adopted by them (Elkadeem and et. al., 2020). The
model was developed by a slide mathematician and business manager and published in the
Harvard Business Review in 1957. The four stages of Ansoff Matrix are discussed below:
 Market penetration: at this stage the organisation has to focus on increasing the same with
the existing products which are offered by them into the existing market.
 Product development: in this the company has to focus on introducing the new products
which helps existing customers to satisfy their needs and wants in an effective manner.
This helps them to motivate the customers to avail their new products.

 Market development: this strategy is focused on entering a new market by providing the
existing products to their targeted customers who are present in the new competitive
market.
 Diversification: in this the organisation has to focus on capturing the new Marketplace
while introducing the new product there so that they can attract the new customers
towards their organisation.
Airdri Company can take the market penetration as it is the least risky while diversification is
the most risky option which can be availed by the organization.
M1 discusses the options for growth while using a range of analytical frameworks to
demonstrate the understanding of competitive advantage.
It is important for the AirDri organisation to determine the several opportunities which can
be availed by them into the competitive market place. This helps them to take more competitive
advantage as it is beneficial for the company (Elliott and et. al., 2018). The difference between
the above two discussed model is:
 BCG matrix model is used by the companies in order to develop their resources among
various units of business as the GE Matrix used to prioritise the investment among the
business unit.
 BCG matrix model is the single measure model whereas the GE model is when multiple
measures are used.
 BCG is simpler as compared to GE matrix as it is easy to draw and consists of four cells
only while the GE has nine cells.
 BCG matrix is used as a growth share model which helps in reflecting the growth of the
business whereas GE matrix model is used in developing the strategies by the choice of
product line or business units which was based upon the position of grid.
D1 Determine the specific options and pathways for growth in order to get risk of each
option and how they can be mitigated
It is better for the chosen organisation to adopt boosted Consulting Group Matrix as it has
only for different areas which helps the company to determine the market share and market
growth which can be availed by the organization (Freitas, Macedo and Romero, 2019). As the
market share can be gained by investment in the market and helpful generating the cash surplus