Planning For Growth

Unit 42
Planning For Growth
Student Name: Georgiana Ramona Nedelea

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION................................................................................................................2
TASK 1............................................................................................................................................2
P1 Various factors which help in examining growth opportunities along with their
justification.............................................................................................................................2
P2 Growth opportunities with the application of Ansoff's growth matrix............................4
TASK 2............................................................................................................................................5
P3 Effective source of funding and discuss it’s advantages and disadvantages.....................5
TASK 3............................................................................................................................................7
P4 Business plan which includes financial information along with strategic objectives for
scaling up a business entity....................................................................................................7
TASK 4............................................................................................................................................8
P5 Examine exit or succession option for an organisation with their drawbacks and benefits8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Planning is the most important aspect of a enterprise which is required for completing the
pre-determined goals and objectives for an organisation in specified time frame (Osiyevskyy,
and et. al., 2013). This is defined as the planning and making of several strategies which are
required for maintaining a good image in market and helps in gathering value in marketplace.
The small business enterprises require to help the economy of the country effectively in order to
sustain successful in market. A pre-planned business plan will help in attaining the desired
growth and development of the company. A good planning helps a company to build a good
reputation and capturing a large market than the rivals. The following report is based on a small
business of UK i.e. Little Italian Soho. This is a small that is established in London on the year
1995. This hotel has a combination of fine dining, a good wine list, music and dancing which has
become one of the most known restaurants of UK. The topics which are discussed in this report
are crucial considerations for evaluation the growth possibilities and various ways for finding
funding of business. At last a business plan is discussed which involves ideas and objectives and
also this report will include ways of exiting or succession.
TASK 1
P1 Various factors which help in examining growth opportunities along with their justification.
Growth is termed as an essential aspect required in a business for sustaining success in a
marketplace. This helps in contribution to enhancement in market share for a business. In case of
Little Italy Soho, this is small business that is established in UK and it is earning a lot of profits.
This restaurant has an objective to expand business in different market and increasing the
customer satisfaction. This restaurant has a lot of opportunities to expand its business and it has
to do effective work in accomplishing the targets and goals of the company in less time. There
are few key considerations that are helpful in growth and success of business. These are
discussed below –
Porter's generic strategy: This is a necessary strategy utilised by the companies for
determining the competitive edge of business. This helps in knowing and analysing whether
business is earning profits or not. There are basically four types of strategies that are used in the
business and these are helpful in enhancing the performance of business and establishing a
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competency in market. This helps in expanding business in different areas and also provides
analysis of actual performance and growth of the organisation. Different strategies of Porter is
discussed in the following paragraph-
Cost leadership: according to this kind of strategy, the business is concerned about
quality products and service and selling them at an affordable price to the consumers. In this kind
of organisations, the main objective of these businesses is to ensure appropriate good and
services are delivered to the customers.
Differentiation: in such strategy company focuses on providing new innovative products
to the customers. This builds the customer’s interest and attraction towards the services of
company. In context of little Italy SoHo is advisable to the company to provide new dish Pasta
sandwich to customers and enhance company’s image and reputation. This differentiation in
products line up will be helpful in capturing a larger share of market.
Cost focus: The main focus of company is on niche market under which products and
services are sold at very low price. The Little Italy Soho restaurant can meet the demands and
needs of customers easily.
Differentiation focus: This strategy focuses on building uniqueness in the product or
service. This focuses on creating new innovations in dishes and attracting a lot of customers in
case of the Little Italy Soho.
PESTLE analysis: It is also an analysis that the Little Italy Soho can use and identify factor in
the external environment which can influence operations for a business organisation. The Pestle
of this restaurant is given below-
Political: Political factors are one of the crucial factors which can influence activities for
an organisation. The political circumstances in the country are stable hence there are no
problems in operating business activities in this country.
Economical: This is related with the factors like inflation rate, GDP, economic growth of
the country etc. In case of the Little Italy Soho restaurant the economic condition of UK is very
favourable, and business can be easily operated in such country.
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