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Unit 42 Planning for growth Assignment Sample

   

Added on  2021-02-20

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UNIT 42Planning for growth

Table of ContentsINTRODUCTION...........................................................................................................................3Part 1................................................................................................................................................3P1. Analyse key considerations for evaluation of growth opportunities.....................................3P2 Evaluate growth opportunities through usage of Ansoff's growth vector matrix...................7P3 Assess potential sources of funding........................................................................................8P4 Business plan for growth and financial information along with strategic objectives forscaling up a business..................................................................................................................10PART 2..........................................................................................................................................15P5. Exit or succession strategies for business............................................................................15CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18

INTRODUCTIONPlanning for a growth is a strategic business activity which enables an individual toformulate plan and track growth in terms of business revenue. It allows business to distributelimited resources with an aim to make modifications within organisation through digitalevolution and offering distinguished services to their customers (Barbour and Deakin, 2012). Forgrowing and sustaining within competitive environment organisation need to build up effectualthrough which they can attain growth within market. When organisation is looking forward forexpansion then they need to carefully examine each and every resource which is available or canbe attained easily along with other factors such as cost, services, human capital, etc.Organisation need to plan their growth through expansion of their services by the use of latesttrends, techniques and equipments. To understand the concept of planning for growth, The LittleOne Coffee Shop is taken into consideration. This was found by Ben & Lisa in 2009. Theyrender their customers with muffins, coffee and crepes. This report deals with growthopportunities along with sources of funds & plan for growth of organisation. Apart from it,succession as well as exit options for small business are also discussed. Part 1P1. Analyse key considerations for evaluation of growth opportunities.It is tough for small businesses to catch or grab apt prospect in a competitive market. Withrespect to this, management must devise strategies for their business accordingly for theirsurvival as well as upholding their existent position so that benefits can be gained from market.The Little One Coffee Shop is a small shop which possesses less number of employees but theymade sure that they have proper strategies and plans for furnishing their services. For this theyhave to take some factors into consideration, they are illustrated below:Competitive AdvantagesThe conditions which allow organisation to produce services or goods of equal value atlow prices in more desired way are referred to competitive advantage.This denotes a conditionwhere organisation or other coffee shop aims at producing identical products and services at lowprices in an effectual and efficient manner (Beatley, 2014). This is a major role of managementof organisation to formulate as well as plan strategies by which The Little One Coffee Shop can

acquire competitive edge within market. For this, the organisation can use Porter’s Genericmodel which is mentioned below:Cost Leadership: This strategy will aid organisation to develop their unique position inmarket by rendering services at reasonable amount. The Little One Coffee Shop can utilise suchmethods or tricks for conducting market analysis and target audiences so that their requirementscan be acknowledged (Chapin, 2012). With respect to this, the prices of services offered by themare kept low and quality which is rendered by them is kept high in order to attract more numberof customers. Aim of this strategy is utilise the opportunities to fullest so that market shares canbe enhanced as well as its size. Thereby, leads to high competition within marketplace.(Source: Porter's Generic Strategies, 2018)Differentiation Leadership: The goods and services which are rendered by coffee shopcannot be compared with services offered by other competitors within the market. As The LittleOne Coffee Shop provides high quality services which assist them to captivate large number ofcustomers (Denton, Forsyth and MacLennan, 2017). By the usage of these strategies,Illustration 1: Porter’s Generic Strategies

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