Planning for Growth: Analysis and Justification of Key Considerations for Evaluating Growth Opportunities

PLANNING FOR
GROWTH
1

2

INTRODUCTION
The term Planning comprises of a progressive thinking and formulating plans for
different functioning in an organisation which are meant to achieve company's goals and
objectives. Planning for growth means formulating plans and objectives for company's growth as
well as success in near future in a market (Adyana and Hanani, 2020). SME's stands for small
and medium enterprises that operate at small or medium level along with a minimum amount of
capital and employees in a firm. Such firms functions at small level but contributes at large in
development of UK's economic condition. In the present report Vectair Holdings Company has
been chosen for planning its growth which offers hygiene products to its customers. The report
will discuss about opportunities available to company for its growth, various sources of funding
from where it will raise money for expansion backed by several benefits and loopholes present in
it. Vectair Holdings business plan will be maid which includes strategic objectives, financial
statements, vision, mission, etc. Further in the report, exit plan for company will also be
discussed as in case if it wants to leave expanded market.
TASK
P1: Analysis and justification of key considerations for evaluating growth opportunities.
Vectair Holdings is a small and medium enterprise in Basingstoke, United Kingdom.
The company offers a broad range of hygiene and air-care products to its customers. Vectair
Holdings possess a great opportunity for growth and expansion via their existing offerings in the
market. Since society is always concerns about hygiene and safety at each place so company
wishes to grow and make public aware about hygienic products which are available for them.
This plan for growth and expansion surely proves a profitable decision for the company (De las
Rivas Sanz and et. al., 2020). Things to be considered while analysing growth option for Vectair
Holdings are listed below:
BUSINESS RESOURCE ANALYSIS:
Business resource refers to all those supporting assets of company that helps organisation
in fulfilling business objectives and smooth functioning of its operations. Resources such as in
form of physical, financial or human resource contributes to the success and achievement of
organisational goal in effective manner.
3

 Physical Resource: This comprises of such assets that can be touched by anyone in the
company used for accomplishment of business target. It includes plant and machinery,
furniture and fixtures, office premises, factory, etc. that contributes business in
manufacturing and selling of company's product or services to potential customers.
Vectair Holdings physical resources involves its office, equipments those are used in
manufacturing of Air care or hygine products, warehouse for storing produced items, etc.
 Financial Resource: This comprises of monetary assets or real cash that is used in
business to run daily operations of company, working capital management or used for the
purpose of making further investment which will generate revenue for the company in
return.
For Vectair Holdings its financial resources comprises of investments raised by the company,
reserves, profits made from the sale of products, etc.
 Human Resource: The human resource includes man power, employees or workers of
company who performs their job in organisation to make its plan and ideas a real
experience. This involves all those employees whether placed at top management or at
medium or low level of management in organisation structure.
Vectair Holdings comprises of its human resources such as managers, leaders, employees,
workers, and other support staff.
PESTLE ANALYSIS:
PESTLE is a short form for external environmental analysis. The acronym comprises
certain forces that come from Political, Economic, Social, Technological, Legal and
Environmental factors which effects and impacts on company's behaviour and operations. The
forces of this environment are external but hinder internal workings of a company. These factors
are uncontrollable in nature by the firms hence they need to adjust themselves according to the
impact of such factors (Keeler, Keeler and Keeler, 2020). The discussion on each element of
environment is done below:
4

PESTLE Framework
 Political Environment: This factor includes some political interference by government.
This involves restrictions on trade, tax regulations, long term survival of political party,
etc. The political stability of UK government helps Vectair Holdings to operate with less
negative effects on its performance and provides support to the company.
 Economical: This involves country's economic condition such as inflation or deflation,
Foreign Direct Investment, exchange or interest rate fluctuations, etc. After the issue of
Brexit UK's economic condition became stable which offers scope of great opportunities
for the firms to expand and grow its business.
 Social: This relates to the societal culture, people perceptions, ethics and moral principles
which society possess. People of UK are much more concern about their hygiene so
prefers hygienic products, this practice by society will help company Vectair Holdings to
expand its business and ultimately leads to growth of the firm.
 Technological: The factor discusses concepts like technological changes or innovation in
product or services which is offered to the customers. Vectair Holdings installs latest
technology in its operations and provides niche products into market. This technological
adoption helps company to grow its business.
 Environmental: This external factor analysis environmental concern such as green
environment, less pollution and chemical, ozone, etc. Vectair Holdings by providing
5

hygienic products to its buyers supports environment which helps company to expand his
business.
 Legal: This includes some legal rules and regulations which are imposed on companies
mandatory to follow them (FreireTrigo, 2020). UK supports small and medium
enterprises to expand which helps Vectair Holdings to grow its business operations by
proper adoption of legal policies and guidelines of UK.
Porter's Generic Strategy:
The strategy enlists some ways which can be adopted by companies to achieve its
competitive advantage over competitors surviving in industry. This strategy includes four
different elements which can be implemented by an organisation for its expansion and growth.
The elements of Porter’s Generic strategy are discussed below:
 Cost Focus: This element of strategy stats that company should offer its products and
services at lowest possible prices in its existing market (Hassanpour and Giti Nejad,
2020). For instance Vectair Holdings can adopt cost focus strategy to cater more buyers
by offering its products at cheaper price in market.
 Differentiation Focus: This element of strategy involves offering different product and
services to customers indicating unique feature from competitors (Irina, 2020. For
instance, Vectair Holdings can apply this concept in order to gain big market share and
high brand image in front of its loyal buyers. Cost Leadership: The next element in generic strategy is termed as cost leadership. The
component says that company should provide its products and services to its customers at
cheaper prices by enriching high quality into it for having competitive advantage over
rival firms in the market (Jian, 2021). For instance Vectair Holdings can win over its
competitors by providing their best quality products at lesser price which can be made by
reducing either labour or operational cost in production.
6