Planning for Growth Report: Davison Canner SME, Unit 42 Analysis

This report, prepared for Unit 42: Planning for Growth, focuses on Davison Canner, a fruit processing SME. It begins with an introduction to growth planning, emphasizing internal and external factors. Task 1 analyzes key considerations for growth, including Ansoff's matrix, core competencies, and resource evaluation, and assesses funding sources like bank loans and crowdfunding, detailing their benefits and drawbacks. Task 2 designs a business plan, incorporating financial information and strategic objectives. Task 3 explores exit and succession options for Davison Canner, outlining the advantages and disadvantages of each. The report concludes with a summary of findings and references.

Planning for Growth
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
TASK 2..........................................................................................................................................10
Business plan.............................................................................................................................10
TASK 3..........................................................................................................................................15
Discuss about the exit or succession options for Davison Canner SME, Also describing the
advantage and disadvantages of each option.............................................................................15
CONCLUSION..............................................................................................................................19
REFERNECES..............................................................................................................................21
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INTRODUCTION
Planning for growth is a process in which company undertakes various activities through
which it can develop suitable and effective planning for the growth of organisation. This
involves identifying and understanding impact of several internal and external environmental
factors and analysing various considerations while planning the growth for the organisation. this
planning is very important for the company as this guide and provide direction to the company
regarding what next step they need to take in order to achieve the objectives for the growth.
Concerned with planning for growth company can also utilise the developed theories and
strategies for the purpose of growth of the organisation. This report is based on planning for
growth for Davison Canner. The organisation and company is leading producers and innovators
of the fruits. Company started their business as fruit producers but later on their product range
kept increasing and now the company also provide jams, curds, sauces and several other
processed products. This report will discuss about company and their planning for growth
including different strategies available for growth, and potential sources of funding that can be
utilised for growth and later exit and succession options will also be discussed.
TASK 1
Key Considerations for
Evaluating Growth
Opportunities
Ansoff’s growth vector matrix
Sources of Funding With Its Benefits
and Drawbacks
Resource and capabilities
and Core Competencies
This is one of the key factor
for the success of the
company in their growth.
While evaluating growth it is
important to consider
resource and capabilities
Growth matrix of Ansoff provides
some of the strategies that can be
utilised by the organisations to
implement while they are planning
for growth. The growth matrix
involve four different types of
strategies that are based on new
and existing product and market
that company will consider in their
Banks
This aspect of raising
or collecting funds
will help the sources
that are major so that
whenever they need
or require money for
coping up with the
level of expansion or
Benefits
Davison Canner can
easily avail the benefit
of getting the loan in a
personalized manner.
Also it is helpful and
reasonable to the
business because the
rate of interest can be
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required for implementing
the opportunities. Along
with this core competencies
and their evaluation is also
important as they allow for
strategic benefits and
competitive advantage to
Davison Canner.
growth. start up their plan
they can consider it.
It is considered as
one of the safest
method that is why
everyone trusts this
aspect. Davison
Canner can engage in
a meeting with bank
so that they can
decide the form of
repayment with the
rate of interest
charged on it.
bared by them.
The schedule that is
fixed for payment is
done with a mutual
understanding
Market Penetration
Company when intends to
expand their sell and profit without
developing product and market in
such case company utilise and
implement this strategy for growth.
This means that company without
developing new market and
product, focuses on existing
product and market. This means
company undertake practices
through which organisation can
increase its sell and profit through
existing market. In order to do this,
Drawback
The aspect of
foreclosure for loan
turns out to be a bit
expensive for the
company.
EMI that is charged is
not fixed it varies on
the power of the
economy if the
economy of the
country is strong then
it will be difficult for
them to cope up with
it.
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companies often utilise effective
marketing planning. This is also
suitable to increase product cycle
of the organisation. This means
with help of effective marketing
company increases its sell and
profit and also extend product
cycle.
Innovation
This is another important
element and factor to
consider while implementing
and evaluating growth
opportunities. Innovation
plays key role in success of
the organisation and this is
why innovation capabilities
of the organisation is very
important to be considered
by the Davison Canner.
Financial Institution
Many of the
companies such as
Davison Canner
considers this method
also when they want
to collect funds so
that they can cope up
with the changing
needs of market.
Financial institution
are also trustworthy
as many of them such
as Barclays have
been successful in
establishing their
base so that they can
earn the trust of
people and cater to
the needs of business.
It is believed that
they provide better
schemes and
packages of loan in
comparison with
bank. This can be
helpful to the
business.
Benefits
Better schemes are
provided if compared
with bank.
People also trusts on
this aspect to collect
funds for their
development needs.
The processing of
finance is faster in
comparison with the
bank.
Drawbacks
Sources of finance are
turned out to be
expensive.
Various types of
documents and
formalities are
collected in the form
of collection of loan.
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Risk
This is another important
factor to be considered when
company employs
opportunity. This means
identifying and evaluating
risk and associated benefits.
This is important to select
and implement an
opportunity in which risk is
comparatively lower than
benefits. This is also
important to consider that
risk associated with
opportunity can be dealt
when it comes to negative
effect for the risk.
Product Development
This is another strategy in
which Davison Canner will require
to develop new product that can be
offered to existing market. This
means that this is a growth strategy
in which company with help of
new products attempt to increase
their sell and grow the profits and
customers of the company. Market
in this strategy remains same
which was being catered by the
company earlier. This strategy is
often utilised by the companies
who are focusing on innovation
and attempt to attract customers
with help of innovation and new
product development. This is
Crowd Funding
This aspect is
believed to be a
major source when it
comes to collection
of funds. In order to
raise funds Davison
Canner needs to sell
some of their shares
so that they can get
money for it. This
way then can take the
use of the money that
they have gotten for
their shares. In order
to use this aspect
successfully they
consider the aspect of
marketing so that
Benefits
Considered as a tool
that is helpful and
effective and open up
the sources of
investment.
Companies keep a
check on these
activities so that they
can allocate the funds
in the right and useful
area.
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effective strategy when product
cycle of the company with its
earlier products ends and company
need to provide something new in
order to survive in competition.
Companies many times also bring
products with different name and
identity and Davison Canner can
bring its products in different
flavours.
more people invest in
the portfolio of the
company
Drawbacks
Because of complying
with this source of
investment it leads to
make the ownership
into pieces so that a
part of it can be sold
as their shares.
Technological use and
expansion of the network
This is another important
factor to consider when it
comes to evaluating
opportunities for the growth.
This means capabilities of
the Davison Canner. This is
because technology and
effective use of technology
and digital services is
playing key role in success
Market Development
This is a strategy in which
companies undertake development
of market as opposed to earlier
product development. Market
development strategy of the
company involves using existing
products that company sell in new
markets. This is used when
products of the company are
accepted in existing market and are
able to be presented and served in
Justification
It has been evaluated that the most viable and
beneficial source of finance for the business is
banks and financial institutions.
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of the organisations. This is
the reason that technological
and digital use along with
capabilities of the company
to expand their network is
also important to be
considered while evaluating
growth opportunities.
new markets. This is a strategy in
which companies need to identify
and understand market which are
similar to existing markets and
possess higher possibilities of
acceptance in new markets.
Strategic option available
This means what are the
strategic options that are
available when company is
willing to grow the business.
Strategic options available
involve merger and
acquisition options available
and along with this what are
their positive and negative
points and factors.
Considering these elements
can help company in
identifying and
understanding effectiveness
of opportunities.
Diversification
This is a strategy in which
companies neither use existing
markets nor existing product is
utilised for the purpose of growth.
Company develops new market as
well as product that can be used
for growth of organisation. This is
similar to starting a new business
however in this strategy company
can utilise their image and brand
goodwill.
Among all the strategies of the
Ansoff Matrix Davison Canner can
employ and implement market
development strategy. This means
that company has enough range of
products which can be served in
similar market and used for
nationwide growth of the
company.
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TASK 2
Business plan
Executive summary
It has to be consider as conventional wisdom, which mainly focused on planning a new
business and also give more prior to their SMEs. The renowned Brexit consulting firm will give
an advice to develop the effective business plan. It may include brief information about the
SMEs enterprise and their specific objective. In order to give right direction for establishing the
strong position in marketplace (Davern, Buckley and Bucello, 2020). Thus, it will be
investigating the impact of enterprise planning within growth of SMEs, enhance the poverty
alleviation and encourage towards innovation.
The Davison Canner is based on the small enterprise, which make a profitable and strike
to obtain the better market share in global world. This organization is providing the bakery
product as well as service to potential consumer. It must ensure the dominance in its current
operational areas which begun its innovative product development. It plays important role to
increase long term goal and objective.
Mission
The mission of Davison Canner will give the option regarding quality of goods and services.
When running the enterprise in market that require suitable right path or direction. In this way, it
help for start-up business to achieve the desirable goal and objective. Davison canner firm will
focus on the customer need or requirement so that they always tried to improve customer
services (Gunder, Madanipour and Watson, 2017. Sometimes, it also consider the online
medium to share information or data of particular item through website, application.
Furthermore, Canner will be treating their potential customer in professional way to give
effective environment or culture.
Objective
 To increase the rate of profit rate within 1-2 years.
 To achieve the demand of potential consumers in regards of bakery product and services.
 To enhance the overall business performance while implementing modern Information
technology.
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 To improve the customer service and encouraging the potential client towards product as
well as services in marketplace.
 To increase sales 5% for business expansion in global world.
Success parameters
 To encourage the consumer towards large variety of services.
 To enhance the better customer service and also resolve queries.
 To maintain the quality of product and service.
SMEs Summarise
Davison Canner firm will be considered the financial information or data through
combination of investment. In order to gain the competitive advantage. Moreover, SMEs will be
including the expenses so that it will require to consider marketing approach for purpose of
advertisement or promotions. Therefore, it can easily fulfilling the need or requirement of SMEs
in marketplace. On the other hand, Davison Canner firm will be filling the legal fees, designing
the overall structure or layout of organization.
Market analysis
As per analysis the market trends towards bakery enterprise whereas it has identified that
increase profit margin. There are large number of potential customer attract towards the product
and service. It intend to apply an appropriate pricing strategy that will motivate different
customers (Daniel, Oluyomi and Daniel, 2020). The price/ cost will attract the client because
many people want to buy the item at reasonable price, also available for everyone.
Generally, Davison Canner will target the people who will have a lower income portion.
It involved elderly, working class and student.
Market segmentation
Davison Canner is based on the small enterprise so that they will provide the better
shopping experience of lower income families, who will have annual earning approximately
$20,000. Other hand, it also including the student that always strict about their spending budget
(Rahadi, 2020). In this way, Davison Canner will consider this market segmentation and then
provide better quality of bakery item in order to increase profit rate 10% to 20%.
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Target the segment strategies
Davison Canner will target the student, working class people so that it will be
implementing the price strategy. That’s why, it always attract the people who want to more
valuable product at reasonable price. This type of pricing strategy is consider as more efficient
for providing the better discount, offers. Therefore, it will increase the production and sales in
marketplace.
Competitive analysis
The competition level is high in markets, because it has already established the enterprise
who will target more and more people towards product as well as service. in this way, it will
increase the demand of convenient location, areas and fair pricing. Nowadays, there are various
option to switch from one brand to another. In context of competition, Davison Canner is
becoming tough to maintain the position in marketplace.
SWOT analysis
Strength
 Achieve the short-term goal and objective
 Increase the profit margin in marketplace.
Weakness
 Lack of promotional and advertisement
 Ineffective use of online mode
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