Planning for Growth: Evaluating Opportunities and Strategies for Expansion

Unit 42
Planning for Growth

INTRODUCTION
Every business needs to prepare a plan which can help to maintain the performance and
help to increase the growth of the firms. Planning is considered as the most influential process
which can help to increase the productivity of the business. There are various types of business
are running like start-up, micro, small, medium and large scale business and every business nee
do focus to prepare a strategic planning so that they can improve their growth rate. A strategic
planning is essential to enhance the brand value of the firm so it is necessary for each and every
business to prepare an effective planning for growth. For this report, Newbury News Limited is
considered that is UK based SME firm and operating printing & publication for the magazines
and newspapers. Now company want to looking forward to expand their business on other
locations with new ideas and providing new services like book publication. The main motive of
this report is to discuss about the growth opportunities and applying Ansoff growth vector matrix
to analyse the growth opportunity in the market and other framework that can help to maintain
the growth of the organisation.
TASK 1
P1 key considerations for evaluating growth opportunities & justify these considerations
Every organization requires analyzing all prospect of the market and making a plan
which can help to provide the growth opportunities so that organization can sustain in market for
longer period of time. Planning is like a process that can use by each and every organization to
attain the desired objectives. Newbury is a small scale firm that is UK based company and
planning to expand their business in Australia (Beattie and Haarhoff, 2018).
Porter's generic strategy
This model is like a Strategic framework that use strategy to analyze that how a business
can obtain competitive advantages. There are four strategies that given by porter and utilities by
different kind of companies so that they can analyze the whole market situation and expand their
business successfully.
 Cost leadership: - This strategy mainly concerned about their cost and suggests the
business to offer their products and services at low cost so that they can effectively target
the market to accomplish the high market share. Newbury use this strategy so that

company can easily obtain market share and maintain all the business activities at low
cost to take competitive advantage.
 Differentiation - On the basis of this strategy, it can be analysed that business can obtain
high market growth by offering innovative products with new features. This strategy
requires high market research and addresses all the requirements of the customers and
provides Quality products and services. Newsboy used this strategy to attract massive
customers (Beunen, Meijer and De Vries, 2020).
 Cost focus - This strategy concentrate on the niche market and provide the product at the
lowest cost. Those companies contain whole knowledge about the market that can easily
understand the preference of customers. Newbury news limited can provide their
products in good effective price that can help to capture the whole market.
 Differentiation focus - This strategy refers that organization mainly offer products for the
niche market with few unique features. This strategy mainly focuses on the brand loyalty
of the customers which can help to take competitive advantages. Through this strategy,
Newbury news can provide various innovative products in the new marketplace that can
help to gain more profit so that company can easily avoid competitive situation in future.
This model proposed by the Porter which is helpful to obtain competitive advantages. From
the above discussion it is analysed that cost focus strategy is more suitable for Newbury news
that can help to gain more attention of people by low cost services and that also can help to gain
more customers at new place.
PEST Analysis
It is important to analyze the market environment which can help to maintain the current
market scenarios. Before expanding business in new market it is essential to measure the
opportunities & threats that exist in the external macro environment which will help growth of
market expansion. Macro environment analysis done with the help of PEST model which are
discuss below-
 Political Factor - This factor contain political stability, legislation, laws, government
intervention of the company. Newbury news is the famous organization and now wants to
expand their business operations in other locations so it is important to focus on the