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Unit 42 – Planning For Growth PDF

   

Added on  2021-02-21

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Unit 42– PlanningFor Growth

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Key Considerations for the Evaluation of Growth Opportunities...............................................1P2) Application of Ansoff Matrix...............................................................................................3TASK 2............................................................................................................................................4P3) Potential Sources of Funding for Companies.......................................................................4TASK 3............................................................................................................................................5P4) Business Plan for Success.....................................................................................................5TASK 4............................................................................................................................................8P5) Assessment of Exit or Succession Options for Small Businesses........................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONGrowth Planning can be defined as the strategic business activity that enables businessowners to plan and track the organic growth in their revenues and incomes. The followingassignment will have its focus on the key consideration for growth opportunities and justificationin organizational context. Additionally, the opportunities for growth will also be identified withthe help of Ansoff Matrix, identification of potential sources of funding will also be carried outfor the business along with their benefits and drawbacks. Further, the business plan will also bedeveloped along with the strategic objectives and scaling up the business. Lastly the discussionwill be made about the exit or succession situations for small business explaining the benefitsand drawbacks for each option. The company chosen for the completion of this assignment isROWLINSON KNITWEAR LIMITED which is UK based organization. The number ofemployees working in the company are around 50. The company provides their customers withpersonalized school wear, special knitwear. TASK 1Key Considerations for the Evaluation of Growth OpportunitiesPlanning can be defined as the crucial function of an organization in which the blueprintof future activities to be carried out in an organization are decided about (Wu, 2015). It is theresponsibility of the mangers of an organisation to make continuous evaluation the opportunitiesfor the business to grow and develop. In the following organisation which is RowlinsonKnitwear which deals in the clothing industry so there are also some growth prospects for thisorganisation also. The evaluation of the growth opportunities for the company is provided asunder:Competitors Analysis:The following analysis can be defined as the analysis which is used for the purpose ofassessing the current strengths and weaknesses of the other businesses other competitors. So theManager of Rowlinson Knitwear Limited has also identified some growth opportunities for thebusiness by making an evaluation the current market situation. The strategies are made inaccordance with the motive of attracting large number of customers. Additionally, it will alsohelp in the achieving competitive advantage over their competitors and for doing this thecompany needs to focus more on their current resources, capabilities, competencies so that they1

could be made unique and could have competitive advantage over the rival firms. Thedescription of these are provided as under:Resources: in the resources, the financial and personnel resources are included as withthe help of these resources, the growth and expansion the business will be quite easier (Beatley,2014). The skilled employees will provide the company with innovative ideas which will alsofoster the rate of growth and expansion of the business. Capabilities: The company is providing their customers with personalised and specialknitwear garments for the school wear market to the independents retailers across the UK andIreland. .Core Competences: Rowlinson is providing their products and services to theircustomers at cheap and affordable prices and with good and satisfiable quality which is notprovided by any of the competitors currently working in the industry.Porter Generic Model:The following model has been propounded by Michael E. Porter and this model helps theindividual in knowing about the best direction in which the organisation could move. In thismodel, four strategies are mentioned and out of which the company is required to choose the bestone in order to react to the competition prevailing in the market. The description is provided asunder:Cost Leadership: In the following strategy, the main focus of an organisation is on achievingcost efficiency in the market by providing their customers with the products and services at thelowest prices possible (Mason, 2015). Differentiation: The following strategy has made its focus on making and providing somethingdifferent to their customers. The difference could be in the quality, taste, size, colour and manymore that makes the product different from that of others. Cost Focus: In the following strategy, the main focus of the company is on the target market, asthe company is supposed to provide the target market with the lowest price. Differentiation Focus: This strategy is meant for providing differentiated products and servicesonly to the target market of the company. From the above provided information, Rowlison Knitwear is recommended to make useof Cost Leadership Strategy, it is small company and with the help of this strategy, it will bepossible to grab large number of customers in the market. 2

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