Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Analyse key considerations for evaluating growth opportunities.........................................3
P2: Evaluate the opportunities for growth applying Ansoff growth matrix................................5
TASK 2............................................................................................................................................8
P3: Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................8
TASK 3..........................................................................................................................................10
P4: Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business...........................................................................................10
TASK 4..........................................................................................................................................14
P5: Assess exit or succession options for a small business.......................................................14
CONCLUSION..............................................................................................................................15
REFERNCES...................................................................................................................................1

INTRODUCTION
Planning is the crucial part of business that strengthen the existence of firm by effectively
meeting the objection of firm. It include the predetermined activities which is necessarily to
build the effective strategies that need to be followed by different departments in order to meet
the standard performance effectively (Arzaghi and et. al., 2017). To gain the best possible
growth resources are adequately allocated for the different activities of firm so that the chances
of deviation decreases and best possible output is attained successfully. For the better
understanding of report M's place has been selected which is the small coffee shop of UK that
desirably serve the needs of local residence. Although the coffee shop is not that spacious but it
effective cater the requirement of people by suitably serving them different variants and flavours
of coffee. This report cover topics like key consideration that SME needs to consider to evaluate
the growth opportunities. Along with that access the methods through which organisation can
access different type of funding to fulfil the objective. Presentation of the business plan to scale
up the operations of firm and determine various ways by which small business the exit its
operations.
TASK 1
P1: Analyse key considerations for evaluating growth opportunities
Planning is basically the foundation of an organisation that help to determine the way by
which the internal department need to carry out their task effective. This empower the role of
each and every personnel to meet out the confined objective of firm and attain the standard
effectively. This assist firm to attain the milestones so M's place need to give strong emphasis on
developing the innovative idea and plan out things with small group of employee in order to
scale up its business and maintain the base of loyal customer.
Competitive advantage refers to the situation under either small or large firm leverage
the opportunity that exist in the external environment in order to overpower the competitive
pressure (Beatley, 2014). So Porter's generic model consist of different strategies that are opted
by business in order to enhance their capabilities and gain competitive advantage over
competitors. It consist of different strategies that are explained below:

Cost leadership: Within this strategy the organisation target to the mass market or large
population group by lower downing its price. M's place can adopt this strategy in order to
penetrate the large market by which they can gain immense revenue and scale up its operation.
Differentiation leadership: This strategy is just opposite of cost leadership as within this
firm serve audience by service the premium quality of product at high price. M's Place can use
this strategy by adding the valuable attributes and target to the middle and higher income group
people to gain long term competitive advantage.
Cost focus: This strategy is used to cover niche market under which suitable product is
offered to the particular group or small segmented market in order to gain loyalty. Being small
size respected company can adopt this strategy to cater narrow demand of the customer
effectively.
Differentiation focus: In order to build the brand name and maintain image of product
M's place coffee shop can use this strategy. It help to strengthen the operation and sustain the
market share of company effectively.
Conclusion: Therefore, amongst the different type of strategies M's place can opt the Cost focus
strategy at the initial level because there it gets the opportunity to understand the taste and
preferences of local customer. Based on constructive feedback and suggestion it can enhance its
operations and bring modification to exploit the opportunity and gain competitive advantage to
expand its operations effectively.
Growth opportunity can only be exploited by firm if it effectively analyse the external
factors and build the strategies accordingly (Bridge and Dodds, 2018). So PESTLE analysis is
used to understand the surrounding where business needs to function and develop strategies
accordingly. Explanation of different factors in context to M's Place are explained below:
Political factor: It represent the attitude of government and trade relation that the
manager need to observe before carry out its operation. In case of the small coffee shops such as
M's Place cannot go through the much turbulence in terms of political instability because they do
not have much resources to come back to the normal state. Further, respected company function
in UK where the local authorities promote the small industry as it participate in the economic
growth of country.
Economical factor: It simply involving the spending habits of consumer which differ
from one geographical area to another. So with the help of market research it is vital for