Planning for Growth: Key Considerations, Funding Methods, and Business Plan

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
Key Considerations of Growth opportunities..............................................................................3
Ansoff's growth vector matrix.....................................................................................................5
LO 2.................................................................................................................................................7
Various Methods of Funding.......................................................................................................7
LO 3.................................................................................................................................................8
Development of a Business Plan .................................................................................................8
LO 4...............................................................................................................................................10
Exit or Succession Strategies.....................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning for Growth in any business is very necessary as it brings numerous changes to
it. In order to plan for growth, various business and strategic plans are implemented to improve
the overall progress of the company or business (Mell, 2018). Creation of a strategic plan is a
main component for growth planning. It helps in preparing a realistic vision for the future of a
business and maximize its potential for growth. Davison Canners Limited is located in
Craigavon, UK which is a part of the Fruit & Vegetable Processing Industry.
The following report will analyse the key considerations of the growth opportunities using the
Ansoff's growth vector matrix. The research will further discuss various methods of funding of
organization along with its benefits and drawbacks. It will also provide a business plan including
the financials and finally it will describe the various exit or succession options along with their
benefits and drawbacks.
LO1
Key Considerations of Growth opportunities
There are numerous factors to be kept in mind when discussing the factors which affect
the growth opportunities. Every organization has its own considerations to evaluate the growth
opportunities (Colomb and Tomaney, 2016). Davison Canners considers the factors of Pestle
Analysis to describe the growth opportunities which are as follows :
Political
These factors play a major role in the growth of any business. The bakery Davidson
Canners is also affected by many political factors like Tax policy, trade restrictions, tariffs and
many more. If in case the bakery wants to shift its operations in other country due to the
elections then it disturbs its overall performance.
Economical
These factors include various aspects of economy which decides the financial stability of
the country and the company (Thompson and McLarney, 2017). These factors can include the
economic growth rates, interest and exchange rates, inflation, unemployment rates etc. The
economic factors impacted the 'My Bakers' Bakery negatively which acted as a hurdle for its
growth.

Social
These factors are related to the cultural trends of society. Consumer behaviour plays a
major role in this which affects the overall sales of the bakery (Cowell, 2017). These factors can
include the age distribution, career attitudes, health consciousness and many more.
Technological
Innovation in the industry and in the country comes under technological factors. If the
bakery is not following the updates and latest technologies in its operational and promotional
activities, then it can be harmful for it to increase the overall sales which decides its growth
(Murdoch and Abram, 2017). It includes automation, technological incentives, R&D activity etc.
The Bismillah Bakery in UK has done a very rapid growth by following the advances
technologies.
Environmental
The ecological impacts on the bakery are due to these factors. The company must be
ready for any climatic changes. It can include weather changes, temperature, pollution, natural
disasters etc. also the company must perform all its operations environment friendly whether it is
in terms of packaging or delivery.
Legal
It is necessary for any enterprise to follow the laws of the country and get permission
from government for each and every activity to be done. Legal factors include the industry
regulation, licences and permits, labour laws, intellectual property etc. bakery can be forced to
shut down if it does not meet food safety standards set out in law of state.
Along with the factors of Pestle Analysis, there are some more considerations to be laid
emphasis upon while evaluating growth opportunities. The two main methods to achieve growth
is via increasing sales and the other one is via acquiring another company. Following is given the
research on both and their impacts on the growth of the Davison Canners :
Increasing sales
This is not achieved rapidly instead it requires a lot of efforts in marketing and customer
service. The bakery has to wait for a long time to see the results of the efforts done in the overall
activities. It offers slow and steady growth and can build strong relations with customers (Hood,