Business Growth Plan: Strategies and Funding for Milton Sandford Wines

Desklib provides past papers and solved assignments. This project analyzes growth strategies and funding for Milton Sandford Wines.

Planning for Growth
1

Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context..........................................................................5
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................7
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organizational context.................................8
D1 Critically evaluate specific options and pathways for growth, taking into account the risks
of each option and how they can be mitigated............................................................................9
Task 2.............................................................................................................................................10
P3 Assess the potential sources of funding available to businesses and discuss the benefits and
drawbacks of each source..........................................................................................................10
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organizational context................................................................12
D2 Critically evaluate potential sources of funding with a justified argument for the adoption
of a particular source or combination of sources, based on organizational needs.....................13
Task 3.............................................................................................................................................14
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business...........................................................................................14
M3 Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving objectives
...................................................................................................................................................16
D3 Present a coherent and detailed business plan that demonstrates knowledge and
understanding of how to formulate, apply and achieve business objectives successfully.........17
Task 4.............................................................................................................................................18
2

P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................18
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations.............................................................................20
D4 Provide critical evaluation of the exit or succession options for small business and decide
an appropriate course of action with justified recommendations to support the implementation
...................................................................................................................................................21
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
3

Introduction
Planning is considered as the most significant aspect for every business firm because it allows
improving the growth opportunities. Through effective planning of activities, the businesses can
focus on long term development and leads business to impressive success (Wu, 2015). Planning
helps in designing strategies to deal with conflict situations so that growth objectives can be met.
The present study is focused towards working of Milton Sandford Wines and it will help in
understanding the impact of planning on growth prospects. The study will also cover information
regarding potential sources of funding available to businesses. Succession options for a small
business will also be evaluated in the learning.
4

Task 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context
In order to have better opportunities the businesses have to consider effective development of
standards. Proper analysis regarding diverse values is essential so that growth opportunities can
be evaluated. The hypothesis is a factor that needs to be referred adequately so that a significant
impact on the metrics can be understood. Designing of the hypothesis is essential to ensure the
growth prospects (Hollander, 2018). The manager of Milton Sandford Wines must review
opportunity size so that hypothesis can be designed accurately. It has been witnessed that various
hypotheses are being failed due to improper application. Increasing intent is also a factor that
must be referred properly to meet outcomes.
Other than this, investment is also a component that needs to be analyzed so that growth
opportunities can also be promoted. It means the decision regarding investment in activities must
be accurate. It has been witnessed that many time the growth is being influenced due to improper
consideration of investment (Kim, 2017). For example, Milton Sandford Wines has decided to
expand business in the UK market and decided to open new stores. However, the investment and
fund allocation for expansion activities is not according to standards. It will affect the growth of
the company because improper consideration of investment has not allowed accomplishing
objectives. It has negatively impacted the overall outcome and created an issue for business. In
addition to this, it can be said that infrastructure availability is also a factor that creates an issue
in terms of growth (Li, et. al., 2016). If a business firm like Milton Sandford Wines is not having
adequate consideration of infrastructure values then issues might be faced by the business entity.
It means the resource allocation must be accurate so that growth can be attained. For example,
the company has decided to expand opportunities by setting out a new store. However, issues are
being faced by the company regarding land allocation that will increase the expense factor. It
means the growth will be affected in a negative manner. Investors must be rewarded properly so
that they can feel valued to get associated with the business firm (Zhou, 2016). It means the cost-
benefit consideration needs to be promoted by an entity so that expected returns can be offered.
If investors of Milton Sandford Wines are attaining returns as per their expectations that means
the growth opportunity is proper. It will allow the business firm to gain a competitive edge and
leads the company to an impressive level of success.
5

Legal consideration and financial viability are two essential factors that must be well maintained
for evaluating growth opportunities. It has been witnessed that if capital investment requirements
are not according to the needs then operations can be influenced (Bridge and Dodds, 2018). In
this situation, Milton Sandford Wines can face issues regarding growth prospects so support
from the substance of market mix is essential.
6

P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Management of Milton Sandford Wines can have effective consideration of Ansoff’s growth
vector matrix for better opportunities in the market. It is a matrix that allows having long term
strategic planning and employing various frameworks. It requires a collective involvement of
executives, managers and marketers so that better growth can be attained. It helps in designing of
strategies so that objectives can be accomplished (Levy, 2016). Growth opportunities for Milton
Sandford Wines can be boosted by having improved focus on factors like market development,
diversification, market penetration and product development.
A business firm like Milton Sandford Wines can consider the new market development for better
opportunities in a competitive market. In this, the company can introduce its existing product line
in a new market. It will allow improving the performance standards and ensuring that market
share has also been boosted. Other than this, differentiation is also a practice that can be referred
by Milton Sandford Wines. It is a practice that allows an entity to have new product development
in the new market (Pugalis, et. al., 2015). It is essential to make sure that unique feature is being
introduced in the product for attracting a new market audience. It means unique wine can be
introduced to attract customers from the new market. Taste, color and bottling diversification can
also assist in attracting customers and lead the business to better success.
Market penetration is also a practice that helps in understanding the key values properly so that
goals and objectives can be met. It means the existing product line will be used to increase the
customer base in the existing market (Olesen and Carter, 2018). In this, the effectiveness of
marketing strategies can be improved. For example, marketing activities can be promoted with
the help of innovation so that objective can be accomplished. In addition to this, it can be said
that the growth of Milton Sandford Wines can also be boosted by product development. It is
essential for the entity to make sure that the new product is being introduced in the existing
market. By considering the product development the growth prospects can also be promoted
within the organization. It is necessary to make sure that risk has been calculated properly and
desired activities are being framed to attain better opportunity (Gunder, et. al., 2017).
7

M1 Discuss the options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage within an organizational context
In order to have effective development of competitive advantage the business firm can focus on
the application of the different strategic framework. Classification of such a framework can be as
market development, diversification, market penetration and product development. In regard to
have effective opportunities in the market the existing product line promotion in a new market
can be attained (Tian, 2016). For example, India can be a new market for the Milton Sandford
Wines where the existing product line of wine products will be introduced. It will allow having
the development of the market and ensuring improvement in market share.
Along with this, a new wine product with orange flavour can be introduced in the Indian market.
It will also boost the customer base and sales so that objectives can be met. Diversification can
be well maintained accurately and allows for attaining sustainability. Currently a business firm is
operating in the UK market. It means the same current product line sales need to be improved in
the existing market. In this regard, aggressive marketing tools and framework can be adopted. It
will also improve sales and assist in meeting the standards of market penetration. Through
effective consideration of such values the overall practice can be advanced and leads the business
firm to an impressive level of success (Birkin et al. 2017). Product development is also a
framework that allows attaining better growth. It has been witnessed that product development is
all about introducing a new wine product in the UK market. Along with this, the application of
strategic mapping is also beneficial for Milton Sandford Wines because it improves the growth
opportunity. It means the activities must be framed according to different factors such as finance,
customers, international business values and growth. It assists in meeting standards and leads the
business to an impressive level of success.
8

D1 Critically evaluate specific options and pathways for growth, taking into account the
risks of each option and how they can be mitigated
According to the Gunder and Hillier (2016), strategic mapping is referred to as a practice that
helps in meeting primary strategic goals. It means the maximum evaluation of stakeholder values
is significant so that objectives can be attained. In addition to this, it can be said that customer
expectations and operational effectiveness also need to be analyzed. Development in terms of
quality products and services improves growth opportunities. Wear, (2016) has argued that
strategic mapping can be improved by having quality partnerships so that growth can be attained.
However, strategic mapping and Ansoff criteria have few risks. Changes in customer
expectations and demand can influence the activities in terms of market development,
diversification, market penetration and product development. Levesque, et. al., (2017) has
contended that risk regarding investment and funding is also a factor that can influence the
overall growth of the business. It is necessary for management of Milton Sandford Wines to
focus on different strategies that can resolve issues. Identification of sources is a practice that can
be employed by management so that overall practice can be improved. It helps in boosting the
performance standards.
Abolhasani, et. al., (2016) has countered that skilled workforce management is also an issue for
Milton Sandford Wines in order to employ the strategies. For better assistance in terms of the
issue the gap planning and monitoring are two standards that can be employed. It facilitates to
enhance the performance measures and leads the business firm to an impressive level of success.
Considering the strategic application the growth prospect can also be promoted and make sure
that risks are being mitigated.
9

Task 2
P3 Assess the potential sources of funding available to businesses and discuss the benefits
and drawbacks of each source
There are different sources of funding that can be accessed by the management of Milton
Sandford Wines so that fund allocation standards can be well maintained. Personal investment is
a factor that can be referred by a business firm. It means the owner can have their own personal
sources of funds from friends and family so that business activities can be managed accordingly.
The benefit of personal investment is that external pressure can be controlled and ensures that
sustainable funding values are being referred (Abolhasani, et. al., 2016). Risk of personal
investment is that funding in the future might be affected because of lack of financial savings.
Bank loans are also funding sources that need to be referred by a business firm like Milton
Sandford Wines because it allows having an effective allocation of finance. In this, the loan can
be taken from the bank on some specific interest and terms. Funds are being provided on interest
for some specific time period. Low-interest rate bank loans can be considered as a cost-effective
sourcing medium that allow business to perform diverse activities (Levesque, et. al., 2017).
Flexible working can be referred by business in order to attain growth. Repayment burden may
be high that can be a risk in terms of funding source so management of Milton Sandford Wines
need to ensure that repayment burden control strategy is being designed properly. Irregular
payments in bank loans can also affect the actual identification of future payments that can also
be a risk for a business entity.
Other than this, outside investors are also sources of funding to manage activities. It means the
money can be taken from the external parties with respect to some mutual benefits. Profit sharing
and share might be held by external investors. The key benefit of the outside investors is that it
decreases the risk of interest and repayment is low as compared to other mediums. It allows the
business firm to ensure financial control in an adequate manner. However, the risk with such
sourcing is that free decision making is not maintained properly. In this, the decision-making
process requires mutual permission from the investors (Wear, 2016). Profit sharing with
investors can also be a risk for the business entity so management needs to ensure about it.
Venture capital is also a fund sourcing that can provide financial support during expansion. It is
all about using assets and liquid funds of the company. The benefit of venture capital is that the
10

external burden can be reduced and make sure that ownership sharing can also be ignored. It has
been noticed that venture capital is unsecured fund so if business face failure issues then
financial condition of business might get affected in a negative manner. Proper planning is
required to manage the venture capital as funding (Gunder and Hillier 2016).
11

M2 Evaluate potential sources of funding and justification for the adoption of an
appropriate source of funding for a given organizational context
Potential sources of funding are needed to be referred by the management of Milton Sandford
Wines so that overall work standards can be improved. It has been noticed that a business firm
can consider bank loaning for the allocation of funds. In this, funds are being provided by the
bank on interest base and repayment of funds must be according to terms under the agreement.
Personal funding is a sourcing aspect that can be considered by the owner. It is all about funding
through using personal savings and ensures that ethical standards are being maintained in regard
to financial support (Birkin, et. al., 2017). The capital venture is also a practice that can be
referred by Milton Sandford Wines in order to have fund allocation. In this, management decides
to use liquid equity saved by a business entity for better management of funds. Other than this,
outside fund allocation and external investors support can also be considered for better allocation
of funds.
It has been witnessed that for effective development of growth prospect the management of
Milton Sandford Wines can select the external investors to support. It is suggested that
consideration of such values is essential so that objectives can be attained. Through external
investors the financial performance can be managed (Tian, 2016). Risk can also be shared with
the investors so that goals and objectives can be accomplished. Investors support can also
provide long term development and leads the business firm to an impressive level of success.
12