Planning For Growth

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1Key consideration for evaluating the growth opportunity.................................................1
P2 Evaluation of growth opportunities using Ansoff's growth matrix...................................6
TASK 2............................................................................................................................................7
P3. Sources of funding with their advantages and disadvantage............................................7
TASK 3............................................................................................................................................9
P4 Business plan for growth of the business..........................................................................9
TASK 4..........................................................................................................................................13
P5.Succession or exit plan for small business with its advantages and disadvantages........13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Each and every business require plan for their development and to improve effectiveness
of organization. Planning help to analyse different ways that help organization to achieve their
objectives and works for improvement in performance of business. Planning help to get
competitive advantage over competitor in an organization and make an efficient use of all
available resources.. In this report chosen organization is Oak cash and carry. They work to
provide grocery product to their customers and their quality product help them to earn a huge
amount of market share. Company want to grow their business in new market and for that they
need to improve. In this report we will prepare a growth opportunity for company, with help of
external analysis like PESTLE, Porters five forces. Report show Ansoff's matrix and develop
different sources of fund for business. Develop a growth plan for business.
TASK1
P1Key consideration for evaluating the growth opportunity.
In an organisation, planning plays an important role to take important decision for overall
development of organization to achieve goals & objectives of company on time. Whenever a
company prepare plan it help them to analyse success for organization and develop a plan for
overall effectiveness of organization. Planning help company to know opportunities that help
them in future for their growth (Barbour and Deakin, 2012). In Oak Cash & Carry they need to
prepare plans & policies that company is able to perform within the market of a country.
Important steps that help Cash and Carry to attract customers and achieve goals of their business
are as follows :
BCG matrix
BCG matrix is basically the framework which was being created by the Boston consulting
group for evaluating strategic position of the organization as well as their potential. This matrix
is mainly based on product life span which can be used for determining the priorities that should
be placed upon the product portfolio within business unit. It is generally divided into four
categories namely
Stars
This is mainly the name given to the products or business units which have a great market
share as well as generate the high cash for business. The monopolies as well as first-to-market
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are generally termed as the stars. Although they have high growth ratio, but stars mainly
consumes high amount of the cash. Thus, stars are primarily both cash users as well as cash
generators. They are mainly primary unit within which organization should invest their money as
stars are generally expected to generate high cash flow. The main stars in oak cash and carry
company are the biodegradable water bottles (MacLeod, 2013). These cam be considered as the
most suitable segment of the company as it is generally viewed as the growing segment which
will provide positive results to the company in future due to growing awareness of people
towards environment (Barbour and Deakin, 2012). Main advantage of stars is that it has high
return on investment while biggest disadvantage is that it is highly difficult for small businesses
as it requires high investment.
Question marks
This part of the organization generally have high prospects of the growth but relatively low
share in market. These segments mainly consumes a high amount of cash but generally brings
little in exchange. These are known by the name problem children and lose money. These forms
the business units which needs a high consideration (Crow, 2015). They generally have low
market capture within fast growing markets and thus incur a high amount of loss. Although these
are less profitable but have the potential to convert into star and gain a high market share. The
best example of question mark in oak cash and carry are their biscuits. This segment was not able
to gain the widespread popularity and thus resulted in high expenses for company. The main
advantage of question mark is that they have high potential to become the stars. Biggest
disadvantage is that despite a large amount of investment, these down not provide favourable
results (Boddy and Hickman, 2013).
Dogs
These are the units as well as products which have low share ion market as well as low market
growth. They are neutral which neither consumer high amount of fund nor generates high profit
or ratio for company. The biggest advantage of dogs is that they do not consumer much of the
money of company and helps the firms to invest in other quadrants. Biggest disadvantage is that
due to having low market share they somewhat become roadblock for company to achieve
competitive advantage. The Diet coke of oak cash and carry is the best example representing
dogs which was launched for providing healthier beverage to consumers. But this brand does not
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went beyond expectations of consumers and resulted in reduced sales of company (Lambert and
Oatley, 2017).
Cash cows
This is the product of company that are leaders in market and are able to generate good
cash. Such kind of products need low investment but are able to generate more sales. Firm can
apply this tactic and generated cash can be used for reinvestment so that profitability of firm can
be raised. Such products have high market share but have low growth. This is beneficial product
because enterprise require low investment hence cash or financial resources can be managed
effectively. Each product has its particular life, after certain period sales of each product start
declining. In such condition start product of company turns into cash cows. But this kind of
products have low investment requirements hence they can help in maintaining the financial
positon of company. By generating excess cash Oak cash and carry can easily support other
products which was generating low return. This kind of products help in bringing balance in the
firm.
Oak cash and carry should focus more on question marks as these are the products as well
as business units as these are less profitable segment and does not generate much revenue for
company. As these products have the full potential to be converted into stars thus company
should invest into these and should convert them into stars.
PESTEL analysis
Each and every company need pestle analysis to know external environment that effects
growth of their business. Analysis help company to develop smooth working environment in an
organization. Company wants to develop their business in new economy for that pestle help them
to increase overall ability of their business. Pestle help Oak Cash & carry to reduce overall risk
in a new economy. Help to get advantage in new market. Different stages of PESTLE analysis
that help Oak Cash & carry for their development are given below:
 Political: Government influence have a major role in development of business in new
economy. (Lu and et. al., 2013). U.K overall economy and government intervention
become beneficial for Oak cash & carry to develop business in their territory. Political
stability of nation help company to expand business in new market. Political factors help
to know overall influence of government in success of organization at a large scale.
Company need to analyse tax policies and rules and regulations by government. Political
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