Unit 42 Planning for growth

Planning for Growth

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Justification and analysis of the key consideration to evaluate growth opportunities......3
P2 Evaluation of growth opportunities through utilising Ansoff’s growth matrix................5
TASK 2............................................................................................................................................7
P3 Potential sources of funding with their advantages and dis-advantages...........................7
TASK 3............................................................................................................................................9
P4 Formulation of business plan including financial information and objectives for enhancing
an organisation........................................................................................................................9
TASK 4..........................................................................................................................................11
P5 Exit and Succession plan for small organisation with their advantages and dis-advantages
..............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning refers to the advance analysing, monitoring and thinking that is related with
organisational operations. The main motive of business planning refers to accomplish
organisation goals and objectives by formulating effective policy and procedures. Planning is
utilised by an organisation for achieving future success and growth with the help of right policy
and procedures. There are various SME’s exists in the country which are supporting the
economy of a country (Xheneti and Bartlett, 2012). This report is written from perspective of
Pleasure food that manages its business in food industry. In present scenario, organisation
manages wide range of organic products. The existing focus of business is to increase its
business size for performing their operations at different locations. Moreover, report highlights
on growth opportunities, methods of funding and its advantages as well as disadvantages.
Business plan that undertakes objectives and financial stats of organisation will also include in
this report.
TASK 1
P1 Justification and analysis of the key consideration to evaluate growth opportunities
Pleasure food is a small organisation that offers good quality of organic products in the
market of UK. Along with this business house is also well-known for its catering services that is
used for satisfying needs or wants of large number of customers. Schools and collage are some
of the specific clients of pleasure foods. The firm also identifies different opportunities in market
that is used for fulfilling customer requirements related with organic food items. Like, in present
scenario consumer avoid junk food because it generates health issue. It works as an opportunity
for organisation to enhance business of organic products (Wynn, 2017). Moreover, pleasure food
is able to take direct benefits from customers and government by analysing growth opportunities
in business. Some of the key consideration related with business is mention as follow:
Porter’s generic strategy

With the implement of Porter generic strategy an organisation states different ways which
is used by organisation for accomplishing competitive edge in market. Some methods explained
by Porter generic strategy is mention as follow:
 Cost leadership- According to the cost leadership strategy organisation is focused for
providing good quality of products and services to the end user at minimum price. This
leads pleasure foods to gain competitive edge in market. Example- with cost leadership
strategy management of pleasure food is able to offer their products for a large segment
of customers such as to middle and lower section customers also by reducing its
operational cost to make products.
 Differentiation- According to the differentiation strategy business or an enterprise is
more focused for offering innovative and creative products to its customers (Ward,
2016). From the perspective of Pleasure food differentiation strategy leads management
to formulate products which are not exists in market. Example- Differentiation strategy
is focused in adopting growth opportunities by generating new products that
automatically enhance the market share for business through increasing in the number of
customers.
 Cost focus- With cost focus strategy it is analysed by management that according to
present market conditions most of the organisation is managing their business with the
help of cost focus strategy because it helps management to attract more number of
customers by offering products at low prices.
 Differentiation focus- Most of the organisation deliver and provide unique products to
its customers as it leads management to offer better products from the rival organisation.
Example- The term pleasure food utilise differentiation focus strategy that is used in
enhancing growth area by providing better growth area to its customers.
Pleasure foods try to enter into new market with providing better catering services to all students,
employees and organisation for satisfying customer needs and wants. Further, the management
of selected business is focused to implement differentiation focus strategy that is used in
accomplishing desired growth through providing organic products to provide better products
from the rival organisation (Vargo and Seville, 2011). Moreover, it also helps to attract more and
new customers to accomplish competitive edge in market.
PESTLE analysis