Key Consideration for Evaluation of Growth Opportunities

\
The term planning is explained as a
formulation of an effective plan for
performing various operations that leads an
organisation to accomplish decided goal and
objectives. On the other side, planning for
growth is utilise for preparing plans to
accomplish desired position and success in
the future. According to present market
conditions most of the SME’s perform and
manage their business with small number of
individuals that provide support for the
economic growth of organisation. This report
is composed from point view of Rowlinson
Knitwear it is a small UK based company
that perform its business in clothing industry.
Now after Brexit organisation is focused to
enter into new market for expansion of
business. Moreover, this report highlights on
the analysis of key consideration to evaluate
growth opportunities and its evaluation with
implement of Ansoff’s growth matrix.
Various sources of funding to expand the
business and the business plan with pre-
determine financial strategies will also
include in this report.
Rowlinson Knitwear is a small organisation that is
performing their business within local premises of UK
only. But due to globalisation aspect it is obligatory
for each small organisation to expand and enhance
their business size as it help management to sustain in
competitive market. Some key considerations that are
implemented by Rowlinson Knitwear are mention as
follow:
Porter Generic Strategy- This strategy states way or
method that helps to accomplish competitive edge in
market. The four different ways which are formulated
by Porter to implement strategy that helps to expand
or grow the market areas for business which are
mention as follow:
Cost leadership- According to this strategy an
organisation provide good quality of product to the
buyer at low price. This leads management of
Rowlinson Knitwear to accomplish more market area
and cost leadership method is also useful for reducing
the operations of organisation.
Differentiation- With the method of differentiation
strategy an organisation provides creative and unique
products to customers or individuals by using
innovation methods. This leads organisation to
increase sale of organisational products.
Key consideration for evaluation of growth opportunities and its justification in an
organisational context
INTRODUCTION Key consideration for evaluation of
growth opportunities
Key consideration for evaluation of growth
opportunities
Cost focus- According to cost focus strategy an organisation
competes with rival organisation on the basis of price. It
refers that business which offer products at low price attract
more number of customers.
Differentiation focus- With differentiation focus strategy an
organisation provides unique products to its customers. In
context of Rowlinson Knitwear strategy differentiation focus
strategy is implemented to generate brand recognition of
organisation among customers.
Importance of Porter Generic strategy to expand business
The important of Porter Generic strategy for expansion of
business is to enter into new market for different situation.
This is also analysed by management that cost and creativity
are two aspects that are supporting business for accomplish of
competitive edge in market through improving the quality of
product.
PESTLE analysis- Pestle method is used by the organisation
for determining micro environment forces that are used for
influencing operations towards accomplishment of growth.
Political- The government of UK is stable due to its
transparent legal structure. Along with this ruling
administration also support local organisation for expansion
of business. So the probability to grow business is more
which increase company profits.

Economical- Brexit impact on all policies
that are relates with monetary aspect of
organisations. SME’s business is also
impacted due to change in money perspective
and this also refers revenue of respective
organisation is impacted. So with expansion
of business profits for business is increased.
Social- Individuals of UK are well educated
so by engaging them in operations and
functions of Rowlinson Knitwear it is easy to
expand business among different areas by
performing each task in an organised manner.
Technological- UK is a well develop country
so the technology used by organisation is
update. In context of future growth
technology help Rowlinson Knitwear to
enhance its business size properly.
Environmental- Rowlinson Knitwear
formulates all of its products by analysing
environment because from recent years it is
crucial for each company to manage
business. In the last, environment factor also
help to develop goodwill of organisation.
Legal- UK government formulate law
according as per small and medium size
business that also increases possibilities to
boost market area by formulating laws.
that support SME operations. Example- to
charge low tax on revenue which is earned
through export of business products.
Importance of PESTLE analysis- Rowlinson Knitwear
utilise PESTLE aspect to expand business by
understanding market environment size that support to
work with more efficiency because Rowlinson Knitwear
formulate its strategy according to environmental
conditions.
BCG growth matrix- The BCG growth matrix was
developed in the year 1968 by the Bruce Henderson. In
present scenario, it is a simple portfolio management
framework which help organisation to differentiate its
business from rival organisation. Step for BCG Matrix is
mention as follow:
Cash cow- Products that are related with low-growth area
but organisation undertakes high market share to manage
business that help to work as cash cow. Rowlinson
Knitwear utilise cash cow technique to sale product in
mature market.
Dogs- If an organisation performs it business in the less
market share and they also work with low rate for
growth. Rowlinson Knitwear overcome from dog method
because it block cash for longer period.
Stars- All the products which are high in growth market
and perform business operations to increase market area.
Rowlinson Knitwear focus that all of its product remain
under star strategy to work with more efficiency.
Question mark- The name suggests that this type of
product relates with each type of category. Rowlinson
Knitwear utilise the technique for leading customer to
enter into market for fulfil of specific need.
Importance of BCG matrix- In the context of
expansion for business it is identified that Boston
matrix leads Rowlinson Knitwear leads management to
overview various products and use them according to
decided portfolio. It result management is able to earn
profits for longer period by arranging products
according to BCG matrix.
Collaboration- One of the most effective techniques
that are used by all type of organisation to grow
business is to perform business through utilising
collaboration techniques. Some method for
collaborating with other organisation is mention as
follow:
Merger- The term merger exists among organisation
when two different organisation perform their business
by combining their operations with each other in order
to create a new business. Rowlinson Knitwear merges
its business through making contract with local
organisation.