Unit 42 Planning for growth

Unit 42 Planning for
growth

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context..........................................................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix....................3
LO2..................................................................................................................................................5
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................5
LO3..................................................................................................................................................8
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.............................................................................................8
LO4................................................................................................................................................11
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option...........................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning is defined as strategic activity which is main complement of growth and running
a business effectively. If all activities and functions are properly managed then it will be an
opportunity for organization to increase the sale and profitability (Ward, 2016). To understand
about this KTA Group LTD has been selected that is small size organisation, located in United
Kingdom. This is the part of Automotive Repair & Maintenance service industry. The
organization is operating its business in changing environment and manages the activities
effectively. The management of organisation playing an important by understanding needs and
providing the kind of services. The report covers key considerations that considers by SMEs in
evaluating the growth opportunities, different methods through which company access the
funding, a business plan involving financial informations and various ways that uses by small
business where owner can exit the business and its implications of each options.
LO1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
To run a business effectively and managing the all activities there is need to have plan
which can be uses to operate a business and develop the productivity. The aim of every
organization is to set the goals and formulate different planning which can be uses to operate a
business and increase the profitability. The management should analysis the market that helps to
defined what is going on trend and how to run a business effectively (Thapa and Murayama,
2012). In context to KTA Group LTD, management is responsible to operate the business and
grow tit continuously. The PESTLE analysis in relation to business industry are as defined:
PESTLE analysis: This can be defined as framework and tool which uses by
organization to analyse factors like political, social, economic, technological, legal and
environmental that state how these are affecting organization from outside. This can be defined
as flexible analysis which can be use in range of different scenarios that can provide the growth
opportunities for organization that are given underneath:
Political: This factor is related to some factors that affect the extent and government
impacts on country. Like as political factor involves political stability of country, taxation
policies, regulatory practices and governing body and trade regulations. In context to KTA
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Group LTD, the trade policies of UK are effective and favourable that create the growth
opportunities for chosen organisation to establish their business effectively and develop the
business activities by expansion (Valler, Phelps and Wood, 2012).
Economical: This factor is related to economy that have huge effects on organization and
its success. This involves monetary policies, inflation rates, unemployment rates, current interest
rates and others that has effects on business operation. After Brexit, inflation rate of UK has been
reduced that has developed the growth opportunities for KTA Group LTD as it can operate its
business and all functions effectively. The management of organisation understand the needs and
wants then provide the products and services accordingly which can help to increase productivity
and profitability of business.
Social: This factor is related to society that states what is going on in society affects the
organization greatly. Various elements are covered in social factor such as religious and cultural
factor, demographics of market, buying behaviour of consumers and lifestyle trends that affected
the business. In UK, people are price consciousness and they wants better quality of products at
less price. This can be growth opportunity for KTA Group LTD to increase the sales by selling
Automotive Repair & Maintenance service parts by setting affordable prices which influences
the number of customers and develop the business effectively (Phelps, 2013).
Technological: This factor showing the relation in technological environment which can
help to operate the business and increase the organisational productivity. This involves new
technology, innovation, intellectual property and others which affected business. In context to
KTA Group LTD, new technology and innovation is introduced by management which can help
to distribute the products in other country which develop the growth opportunities for business
and increase the profitability.
Legal: For growing the business it is important to follow all regulations which are made
by government. For expanding business and taking the growth opportunities KTA Group LTD is
following business laws, health and safety guidelines, international trade agreement and local
laws that helps to operate a business effectively.
Environmental: This factor is showing the relation with environmental rules that need to
follow for operation and running a business effectively. KTA Group LTD is maintaining all
environmental regulations such as safe waste disposal, dealing with hazardous material and
environmental pollution which affected the business positively.
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