Unit 42 - Planning for Growth

Planning for Growth
1

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................6
TASK 4..........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Planning for growth is based on the strategic enterprise activity that enable for enterprise to
plan, track the data within organization. It allows for enterprise to allocate their limited resources
towards the achievement. In order to adapt for changing the industry driven by differentiate from
alternative competitors.
The report will describe about the key consideration for evaluating the business growth
opportunities in the global marketplace. It will analyse the opportunities for growth by applying
the Ansoff’s growth matrix. The documentation will discuss about the potential source that
available for identifying the business improvement, providing the better advantage, benefits as
well as drawback of multiple sources. It will be developing the business plan in term of business
enhancement while including the other financial information, strategic objective for scaling. At
last, it will be evaluating the succession and exit option for considering the enterprise benefits,
drawback of each option.
TASK 1
Discuss about the key considerations for evaluating the growth opportunities and justification
within organization.
It is important for evaluating the specific key considerations which always help for
growing the business in global marketplace. Growth has its own risk in organization that require
to select the right strategy which acquire the long-term profitability (Chuku, Oduor and
Mwanakatwe, 2019). There are different key consideration in the “Glossier” company to perform
the different actions in the business enhancement.
Competitive advantage key consideration
Porter Generic strategies : This strategies are basically used in the competitive
environment or culture that help for organization to build the competitive advantage and superior
value of consumers. The generic competitive strategies are mainly consists of broad
differentiation, low-cost provider and focused on low cost. These strategies are considerable as
plays important role in order to construct the business strategy.
“Glossier” has adopted the combination of different cost leadership, focus and
differentiation strategies to handle the competitive pressure. Sometimes, it is important for
understanding the customer base expansion and sales growth which obtained by focusing
towards the intensive growth. These strategies are used by Glossier firm to achieve the growth
3

target in term of product development, market development, diversification and other market
penetration.
Cost leadership
This type of strategy is mainly include for gaining the competitive benefits, advantage by
low price. It is important for adapting the generic strategy that “Glossier” produce the various
type of beauty product in the customer markets. The primary objective of this stratgey is to
maintain the market leadership position through effective value chain which always supports for
allows the business in expansion (Cleave and Arku, 2020). Glossier is based on the start-up
company so that it can easily target the market for people. in order to give the preference of each
group of people who will purchase the particular product as well as service.
On the other hand, Low price by reducing the production cost and also increasing the
supply chain effectively. Glossier has tried to expand the business so that they provide best deal,
offers, discount and coupons to achieve the sales target.
Differentiation Strategy
It is another important generic strategy that help for building the competitive advantage.
Glossier uses the differentiation in the combination with cost leadership and achieve the specific
growth or objective. The adoption of this strategy that allows for organization to expand the
customer base and also emphasizing the unique items. The primary objective is to use
differentiation strategy by embedding the innovation. In order to address the client’s beauty skin.
For Example- Glossier has been expanded its current product line after changing the preference
of consumers and expanding the scope of opportunities in marketplace.
Focus strategy
It is another important competitive strategy that always encourage or motivate the
Glossier firm to adapt the different resources. In this way, it help for expanding the business and
target the segments. When Glossier company use focus strategy to server the particular market
segments and gain more competitive advantage through niche marketing. Furthermore,
“Glossier” use this strategy and try to consider low price and offer the best value. Sometimes, it
emphasizing over taste, design and sixe that could be matched with the client requirements. In
this way, it has continuously bring the changes in the product designing as well as packaging to
satisfy the client needs.
4

Analyse the opportunities for growth by applying Ansoff’s growth matrix.
Ansoff’s growth matrix is based on the management model that mainly consists of
different strategies. It can be determined the growth opportunities for business through an
effective strategies. It always supports for enhancing the entire business growth and development
in marketplace.
Market Penetration
When Glossier firm has developed the similar product that already exists in marketplace.
But they provide the better quality of item within affordable price in order to increase the market
share. Glossier firm has executed the concept for obtaining the leading position in market. The
logical concept behind this market penetration strategy. It is mainly contained the large number
of product with small size of packaging. In this way, it automatically reduce the price of item and
also increasing the sales (Li and et.al., 2019). The purpose of market penetration strategy is to
increase the demand towards glossier items among customers. In this way, There are large
number of existing consumer attract towards product as well as services.
Market development
Glossier has tried to sell the existing product into new market. In order to expand the
business, market share and establish the better position. Glossier has adopted the Omni channel
whereas each and every customer experience better quality of services. The organization is used
the digital concept for gathering large number of information related customers such as interest,
preference, market demand, trends. Afterwards, it become easier for handling the entire business
capabilities and abilities. By using Omni channel, Glossier firm is working on the global
expansion by using digitalization.
Product development
When Glossier has made plan to invent new product for existing consumer market in
term of growth as well as development. Glossier has revealed the beauty item and sharing the
information to the customer. In this way, people can easily comparison the item with other one.
On the other hand, it is identifying the need or requirement of business for enhancing overall
business through an efficient quality of products in marketplace.
5

Diversification
Glossier firm is completely focused on the business diversification so that they always
tried to launch a new item within unknown market. It help for increasing the market share, value
and brand reputation. Glossier company has targeted the other countries, increase the interest
among people to purchase cosmetic items.
In additional, it also considered the other model for determine competitive level of small
business in marketplace.
Porter’s five forces
It is considered the macro tool or platform which looks at the overall industry economy.
Afterwards, it is also understanding the competitive forces and underlying causes, reveals the
roots current profitability.
Competitive rivalry
This force also examined that how competition intense for Glossier in marketplace. The
rivalry competition is higher.
The bargaining power of suppliers
This force will help to analysed how much enterprise supplier and control the price/cost
of items. “Glossier” can assess the multiple supplier of raw materials and other resources.
The bargaining power of buyer
Consumers have a power when they can purchase item according to need and
requirement. The bargaining power of buyer is low.
Threat of new entrant
This force is considered that how it become easier for join with other competitors in
marketplace. Glossier also gained the competitive advantage in market to reduce the risk in the
enterprises. Threat of new entrant is higher.
Threat of substitute
Glossier consider this force to switch from one item to another. in this way, organization
can examine the large number of competitors, how their quality and price compared with other
one. Threat of substitute is high.
6

TASK 2
Identifying the potential source of funding available to business and describe about draw back
and benefits.
There are different potential sources of funding which available in the marketplace. In
this way, it become easier for Glossier enterprise to invest money in business establishment in
global world.
Small Business Loan
It is based on the government administration which dedicated to help the small
enterprises. Helping the business to obtain the capital, develop the advertisements and training. It
ensuring that 25% of contract, give a rewards to small enterprises (Nation and Modarres, 2019).
Benefits of Small business loan
 It will increase the chance of receiving the bank load
 In order to improve the relationship between borrowers as well as load lender.
Drawback of Small business loan
 It is mainly providing the strict guidelines. This SBA looks at information from 2-5 years.
It is the most commonly from worst of those years.
Angle Investors
These are individuals such as family members, friends. in recently, there are
approximately 2,50,000 investors that provide the finding for small enterprises each years.
Benefits of Investors
 Business has access to the wide range of financial solutions. Rather than depleting the
own saving and drawing funds in different areas.
Drawback of Investors
 The interest rate is higher than personal loan.
Bank loans
It is the most commonly used source of finding of small enterprises. It provide the facts
that all banks offer different benefits, advantage whether it’s become personalised service. it
provide better facilities and services so that it help for consumer to establish the business in
global marketplace.
7

Benefits
 It offering the start-up financing to entrepreneur in the initial phase so small business
invest money 12-months of sales.
 It also supports for monitoring and tracking the record of business.
Drawback
 It is difficult to get their loan applications approval on time. Sometimes, it is not
completely unsecure loan with high interest rate
TASK 3
Describe about the business plan for growth which include financial information and strategic
objective for scaling.
Business plan
Executive Summary
The business plan is based on the conceptual framework that mainly used for analysing
and identifying the organizational situation or condition in marketplace. It may identify the brief
idea about the objective that will provide the better direction. In order to increase the overall
business productivity as well as profitability (Schultz-Zehden, Weig and Lukic, 2019).
“Glossier” is based on the start-up cosmetic beauty company which has taken into make
profitable and strike to obtain the market share, value in global marketplace. The organization
provide the item related the cosmetic item and services. The enterprise will perform the
significant role in developing countries.
Mission
The mission of Start-up enterprise that provide the better quality of cosmetic product and
service. Therefore, it is running the business towards right direction. Glossier company always
dedicated towards the customer service while providing the online option for customers. So as
they can easily access the information of particular item and check the availability of cosmetic
items. Staff members within organization always dedicated towards the specific goal and
objective. In order to put extra efforts for maintaining the effective working environment. It will
provide fair compensation of their staff members.
Objective
 To improve the business operation and function by using modern technology.
 To evaluate the wide range of different merchandise within reasonable price/ cost.
8

 To increase the latest trend of business in context of cosmetic items in marketplace.
 To implement innovation in the enterprise for increasing the visibility of SME in global
world.
Small Scale enterprise summary
As established the start-up business that will require to considerable the combination of
short-term and investment borrowing. In this way, it may include the various expenses for
improving the current business condition or situation (Tahir and et.al., 2020).
“Glossier” Firm has been implementing the marketing approach that will support for
establishing the interaction with other members. It should include the various advertisement
channel that support for promoting the product and service information to the existing client. On
the other hand, Glossier company is based on SME which consider the legal charges for
designing the proper layout, structure, design and renovations.
Success factors
 To implement the advanced technology, increases the speed and performance of business.
 To achieve the target when using effective strategies
 To determine the competitive advantage in marketplace.
Critical risk
“Glossier” will consider the specific critical risk which directly affecting on the business
performance so as require to apply better strategies. The risks are related to financial, resources
and many more.
Market analysis
“Glossier” company will focus on the potential customer which will increase the overall
business profitability and productivity in marketplace. Sometimes, it can purchase the wide
variety of item within reasonable price. Glossier will be implementing the price strategy for
attracting a large number of consumers. There are lot of people want to purchase best quality of
item within reasonable price. In this way, organization use this concept to enhance the overall
business capabilities and abilities. It always focused to target the people who will have lower
income. In order to maintain the better relationship with consumers. Price strategy impact on the
different people such as working staff. Student, elderly. They always preferred to choose
reasonable price items.
PEST Analysis
9

It refer to the process that can be done to assess the potential of new marketplace.
Generally, it is very difficult for significantly reduce the profit margin and enterprise can simply
decide to engage with different activities.
 Political: This factor is mainly consideration of legal issues, regulation and other formal
legislation. Small enterprise such as Glossier has to bear the tax rate of 20-30% which is
considered the highest among different tax rates. In this way, it has chances to reduce the
profitability of organization in marketplace.
 Economic: In this factor, it has identified that purchasing power of consumer affected by
various economic condition. Sometimes, it may include inflation rate, interest rate which
adversely impact on the raw materials, Machineries. So as automatically increased the
price of purchasing.
 Social: This factor is mainly considered the cultural, demographic aspects which directly
affect on the need and requirement of consumers (Wey, 2019). in this way, Glossier firm
will require to consider environmental norms to establish eco-friendly environment or
culture.
 Technological: it is based on the advancement of modern technology so that Glossier
will spend a lot of time in research as well as development. By adopting the advance
technology that will increase the demand across the world. Therefore, organization will
continues to invest in research and development activities. in order to keep a company
hold in global marketplace.
Market segmentation
“Glossier” is based on the start-up enterprise that provide the better shopping experience
within affordable price. It became great shopping experience of working class families with
income under $27,000. On the other hand, it also targeting the population of student when they
have a strict on the related monthly budget. SME always looking for considering the better
enterprise opportunities for enhancing the business growth and development. The growth rate of
market increase with rate of 30-40%.
10

Market segmentation strategies
Glossier Firm is mainly concerned about the price, cost because peoples are more
conscious about the quality of product as well as services. Generally, SME is tarheting the
specific group of people and provide the best quality of services. It continously offering the
discount, vouncher on the occasion (Wey, 2019). So as customer attracts towards product as well
service in marketplace. this will help for enhancing the business production and sales.
Furthermore, Gossier will be planned to use pricing stratgey in context of growth as well as
development. In order to focus on the business activities while achieving the significant better
result or outcome.
Operational stratgies
It is mainly referred to the method or technique used by the star-up enterprises. It always
supports for examining and implementing effective system. in order to find out the most suitable
resources, peronnel and other work process.
Customer driven stratgies
It may include this approach to meet the specific need or requirement of client. In order
to target the specific audience. Furthermore, it adopt for chnaging the environment, continously
Glossier enhance its core competencies. Afterwards, it help for developing new strength on an
ongoing basis.
Target market
It is targeting the niche market in the population of student when they have a strict on the
related monthly budget. SME always looking for considering the better enterprise opportunities
for enhancing the business growth and development.
Competitors analysis
As per analysis, Start-up enterprise will gain the competitive advantage while
implementing the fair pricing, convential location. It is to be considered the different element
that plays important role for attracting the exinsting consumers. Sometimes, it is difficult for
11

Glossier firm to establish the position in marketplace. in this way, enterprise will improve the
consumer service to provide the accurate information related the product as well as service in
marketplace (Wey, 2019). In this way, client can easily finding the best deals effectively and
efficiently. Furthermore, it is also selecting the best merchanding store for giving the better
option of their consumers. Alternative competitors such as Maybelline, these are considered the
latest brands.
Milestone
Strategy and implementation
Glossier firm is basically used the better marketing service stratgey that is always procide
the better quality of product and servicce. In this way, it become easier for attracting the client
towards organizational product and service. SME will adopting the marketing stratgey that help
for enhancing the overall business capabilities. It help for established the interaction and
coordination with exinsting consumers.
While implementing the marketing stratgey that applicable for distribution channels such
as website, smartphone application, email. These are considered the important soruce for sharing
the information or data. An effective communication will be done by online channels.
Financial information
12

13

Budget analysis
For establishing the business, it will be estimating the budget which include cost/price,
and production sales. It can be categoised int different manner.
As per estimation, the overall bduget required for business development such as $1,20,000
14

TASK 4
Evaluating exist or succession option for business explaining benefits, drawback of each option.
Exit and succession are consider two important option for business for passing into another
party. It means that participant of family member, enterprise partner, executives and other staff
member within organization.
Exit can be defined the term that help for selling the enterprise into another party where
owner of business is no more concern about the organization. There are certain drawback,
benefits of exist as well as succession. It might be transferred into another part.
Passing business to successor
When business owner is not capable to manage the entire business operation and
function. So that they can pass the enterprise ownership to another successors. It can be defined
the way in which family member, partner and other staff member that perform the specific role
within organization.
The successive option that have provide the benefits such as involvement of third party. It
is to be consider the significant advantage in term of succession option. Even transfer the
ownership business owner which involved the organizational operations. It may influence the
employee to take better decision related the business development.
Some of another drawback that consider the important option which become difficult to
identify and train the person who will handle the business complexity in proper manner. it is an
important for selecting the right successor. Another way, it has increased the conflict between
present and previous owner. It may be considered as the drawback within organization. An
effective communication between two owners that help for managing the relationship. In order to
achieve the desirable goal and objective.
Employee Buyout and management
The option related exist of enterprise management and other staff member within
organization. It can be identified the essential resources, equipment’s through which people can
purchase for organization development. Manger has performed the different function and
operation. In order to handle the business task effectively and efficiently. Manager is consider
the right option for business to interact with owner and maintain the environment or culture. In
some situation, business owner were not agreed to change the business value, morale and culture.
15

The advantage is associated with the staff members, manager within organization that can
achieve the knowledge conceptual thing in business success. In this option, company would
require to support from staff members whereas they can perform different actions. On the other
hand, it also protect the enterprise legacy and their independency.
The disadvantage of option is that might affect on the buyers and also associated with the
enterprise due to the owner. Also collecting the necessary resources, acquire the enterprise which
become difficult for staff members.
Selling the enterprise within open market
The enterprise owner has adopted the exit strategy when they will be retired. The
business has required to sell by owner within certain cost/price. After selling the enterprise
owner to walk away with the price.
The primary benefit of this strategy is to understand the overall concept of business. It
became simplest and easy to exit in the business.
Another way, it can describe the disadvantage that associated with the business who will be
achieve success by setting adequate price. In order to exchange the sale of enterprise. It is the
most extremely action performed by enterprise while identifying the different assets and sold in
the global marketplace. Enterprise use the process to take step towards exit in the business
operations.
Furthermore, it has recommendation that adopt the exit strategy when they will be retired.
The business has required to sell by owner within certain cost/price.
16

CONCLUSION
From above discussion, it concluded that Growth planning process, consider an important
aspects in term of strategic planning. It enabling for business to make an effective plan and also
monitor, track the data within organization. In this report, it has summarized about key
consideration for evaluating the business growth opportunities in the global marketplace. it has
identified the various opportunities for growth by applying the Ansoff’s growth matrix. The
documentation is described about the potential source that are available for identifying the
business development. Furthermore, it also providing the better advantage, benefits as well as
drawback of multiple sources. It can be developing the business plan in context of business
enhancement while including the other financial information, strategic objective for scaling. It
can be evaluating the succession and exit option for considering the enterprise benefits,
drawback of each option.
17

REFERENCES
Book and Journals
Chuku, C., Oduor, J. and Mwanakatwe, P., 2019. Working Paper 318-A DGE Model for Growth
and Development Planning: Malawi (No. 29117).
Cleave, E. and Arku, G., 2020. Place branding and growth machines: Implications for spatial
planning and urban development. Journal of Urban Affairs, pp.1-18.
Li, Z.S. and et.al., 2019, August. A Comparison of PM2 and CE Growth Planning Models Based
on Parameters Analysis. In 2019 International Conference on Quality, Reliability, Risk,
Maintenance, and Safety Engineering (QR2MSE) (pp. 1-7). IEEE.
Nation, P. and Modarres, M., 2019. Modelling uncertainty in reliability growth planning for
continuous-use systems. In SETE 2019: Systems Engineering Test and Evaluation
Conference 2019 (p. 30). Engineers Australia.
Schultz-Zehden, A., Weig, B. and Lukic, I., 2019. Maritime Spatial Planning and the EU’s Blue
Growth Policy: Past, present and future perspectives. Maritime Spatial Planning. p.121.
Tahir, A. and et.al., 2020, January. Height Prediction for Growth Hormone Deficiency Treatment
Planning Using Deep Learning. In Advances in Brain Inspired Cognitive Systems: 10th
International Conference, BICS 2019, Guangzhou, China, July 13–14. 2019.
Proceedings (Vol. 11691, p. 76). Springer Nature.
Wey, W.M., 2019. Constructing urban dynamic transportation planning strategies for improving
quality of life and urban sustainability under emerging growth management
principles. Sustainable Cities and Society. 44. pp.275-290.
18