Planning for Growth: Analysis for Davison Canners Report

This report provides a comprehensive analysis of growth strategies for Davison Canners, a UK-based jam and fruit filling company. The report begins with an analysis of key considerations for evaluating growth opportunities, including resource assessment, core competencies, and the application of Porter's generic strategies and PESTLE analysis. It then evaluates growth opportunities using Ansoff's growth vector matrix, exploring market penetration, market development, product development, and diversification strategies. The report also examines various sources of funding available to businesses, discussing their benefits and drawbacks. A business plan for growth is designed, incorporating financial information and strategic objectives. Finally, the report determines exit or succession options for the small business, explaining the advantages and disadvantages of each option. The aim is to provide a strategic roadmap for Davison Canners' expansion and sustained success in the competitive market.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key consideration for evaluating growth opportunities and justify these
considerations within Davison Canners.................................................................................3
P2 Evaluate opportunities for growth applying Ansoff’s growth Vector Matrix...................6
TASK 2............................................................................................................................................7
P3 Determine the sources of funding available to businesses and discuss their benefits and
drawbacks...............................................................................................................................7
TASK 3..........................................................................................................................................10
P4 Design business plan for growth that includes financial information and strategic
objectives for scaling up business........................................................................................10
TASK 4..........................................................................................................................................12
P5 Determine the Exit or Succession option small business explaining the benefits and
drawbacks of each option.....................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for growth is a strategy through which Organisations can expand their business
opportunities and gain more profitability in market. It is an opportunity which needs a proper
plan for growing the business activities and functioning in order to generate more profit and get
successful in market (Pugalis and et. al., 2016). For business growth plan a company must
include description for expansion opportunities, financial goals, marketing plan, financial to
determine capital requirement and breakdown of staffing needs and requirements (Harrison,
2020). The project is based on planning for growth in which the analysis of key considerations
which must be consider by SME while evaluating growth opportunities, methods to be used in
order to raise the funds, business plan is also developed includes the ways through which
business can exit. The Chosen SME for accomplishing this report is Davison Canners, it is a jam
and fruit filling company in UK. The Company is run by family and they are the producer of
speciality fruit, bakery filling, jams and fruit compotes. The Organisation is also focusing on
meeting the changing needs and demands of customers in order to attract and stay ahead in food
trends.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities and justify these
considerations within Davison Canners
For an Organisation it is important to grab an opportunity through which they can increase
growth and productivity of business. Davison Canners is also looking for an opportunity that
helps in expanding business activities and makes them more profitable. To sustain in competitive
market it is necessary to take innovative and creative ideas to enhance the business growth and
attract more and more customers towards the product (Quintero-Angel and et. al., 2018). The
Company requires a proper planning for expanding the business and running it efficiently and
effectively. Davison Canners must focus on delivering bets quality product to its customers so
that they can gain loyalty of consumers. It is necessary to analyse the resources, capabilities and
core competencies of an Organisation than only a proper planning for increasing growth can be
developed.
Resources

The resource which is required by Davison Canners is different kinds of fruits, human
resource, finance, delivery facility, storage facility and warehouse. These are the resources on
which company have to focus in order to expand the business (Kimiagari and Montreuil, 2018).
It helps in attracting large number of customers if firm deliver the product on adequate time
without making wait to people. With the help of these resources, Davison Canners can run their
business effectively and efficiently and also compete in the market with its competitors.
Capabilities
Capabilities mean the strength of company which makes them different and unique from
its competitors. As Davison Canners is a homemade based company they provide products by
producing themselves without any involvement of third party. The Organisation also has
controlled atmosphere storage for fruits. The Capabilities of Company is that they can produce
home based jam without reducing the qualities and tastes of the product which attract the
customers towards the brand also make them unique from its competitors.
Core Competencies
It is necessary to identify the core competencies of the company due to which firm can
compete in competitive market. The Organisation must invest their time and resources to stay on
trend within food industry. The Core competencies of Davison Canners is that they can produce
tasty and quality home based jam which is different in taste and flavours from its competitors.
To expand the business in adequate manner a lot of planning is required and company must
identify the key consideration for growth. There are two key considerations for growth they are
as follows-
Porter’s Generic Strategy
Porter’s generic strategy is a tool through which company can gain competitive
advantage and succeed in Market. Through implementing porter’s generic strategy in business,
Davison Canners can increase its profitability and growth. There are four strategies in this model
they are outlined below:
Cost leadership
Cost leadership is the strategy which mainly focuses on offering goods at lower price in
order to attract maximum number of customers. Davison Canners can use this strategy while
expanding business in new target market as customers demand products which are of low cost
but are of good quality (Deo and Sethi, 2016).

Differentiation
Differentiation is another strategy of model that determines that product must be unique
and innovative from its competitors in order to gain competitive advantage in Market. Davison
Canners must focus on producing quality product rather than focusing on pricing strategy to
attract people of target market.
Cost focus
Cost focus is a strategy in which company have to divide the target market into particular
group which helps in making easy for organisation to understand the customer preferences and
produce according to their needs and demands (Harrison, 2017). The product must be sold by the
company at low cost in particular target segment.
Differentiation Focus
Differentiation focus is also a strategy that focuses on niche market and offer products to
customers with unique and innovative manner through which company can generate maximum
profit.
The Most suitable strategy which can be used by Davison Canners in order to gain
customer base in new target market is differentiation strategy as people demand product which
are unique from competitors due to which firm earns huge profit for long term. The
differentiation strategy helps in providing customers something unique, distinct and different
from other competitors in Marketplace. Davison Canners can also gain competitive advantage if
they adopt differentiation strategy in order to run the business.
Pestle analysis
Pestle analysis is one of the tool of strategic management which determines the external
factors that could create an impact on the performance and profitability of business (Whittle and
et. al., 2019). Through pestle analysis company can get the overview of current market and the
market in which firm is going to expand business.
Political factors include the interference of government, it is important for Davison
Canners to follow the government rules and regulations of the Target Market in order to run the
business smoothly.
Economical factors mainly includes the factors that affects the economy of the Country,
the Organisation must focus on the economic factors that could influence the performance of
business.

Social factors determine the elements through which the demand of customers might be
changed. Davison Canners must analyse the target market so that they can avail the information
related to the customer preferences, attitude, culture and behaviours of people towards the
product (Alharbi, Dowling and Bhatti, 2019).
Technological factors include the latest technology and trend which must be implemented
in the Organisation in order to grab the attention of customers and improve the production
process.
Legal factors involve the constitutions and laws which are set by the Country, for growing
the business in target market it is important to understand the legal laws and norms of target
market.
Environmental factors is the important element nowadays, organisation must focus on
keeping environment safe without making any difficulties for people to live in Society (Fokina
and et. al., 2016).
Through Pestle analysis it is being analysed that there are various external factors which
must be determined by Davison Canners while running business in International Market as these
forces affects the performance and productivity of business. So, it is import at to analyse the
external factors in order to sustain in the International Market for long run.
P2 Evaluate opportunities for growth applying Ansoff’s growth Vector Matrix
Ansoff Growth Vector Matrix
Ansoff growth vector matrix is a tool through which organisation can plan and analyse
the strategies for growing business in Target Market. The Ansoff growth Vector Matrix was
developed by one of the great mathematician and business manager, H. Igor Ansoff with an aim
to help marketers so that they can understand the risk while growing business. Through Ansoff
model, companies identify the opportunity through which they generate revenue by tapping into
new market (Frankenberger and Sauer, 2019). It is one of the suitable marketing models that help
in evaluating opportunities so that organisation can increase its sale. There are four strategies that
can be used by marketers in order to enhance their growth they are-
Market Penetration is a growth strategy that focuses on enhancing sale of existing
product in existing market rather than focusing on new target market. Davison Canners must
focus on selling its products and services in existing market by implementing some innovative
and unique strategy that helps in attracting old and new customers through which the sale of

company increases. The main purpose of this strategy is to improve market share as it is a low
risk strategy that provide less growth opportunities. The Strategy achieves few objectives such as
increasing market shares of current products, secure dominance of growth market, restructuring
the mature market by driving out competitors and increasing usage of existing customers. The
advantage of market penetration is that the company can create a strong customer base and also
improve their brand awareness. The disadvantage of market penetration strategy is that it may
harm the image of the company as by adopting this strategy, firm’s profit margin get reduced
which affects the reputation and performance of Organisation.
Market Development is another growth strategy through which organisation can
increase its growth and productivity level. In Market development strategy, Davison Canners
must focus on selling existing products in new target market with an aim to generate profit and
improve the growth rate of Company. There are various modes which can be used by Firm in
order to enter into target market. For Organisation there are different ways for approaching this
strategy such as new geographical market, new product dimension, new distribution channel and
different pricing policies through which firm can attract different customers. Market
development is a riskiest strategy as company has to focus on targeting new market which
requires lots of investment and resources (Harrison, Galland and Tewdwr-Jones, 2020). The
benefit which can gained by Davison Canners while adopting market development strategy is
that they can gain competitive advantage as the company get access of new customers and new
market which helps in increasing the profit and growth of business. The disadvantage which
Davison Canners can face is capital investment it requires a huge investment to operate the
business in International Market.
Product development is also a strategy of growth which can be used by Davison
Canners in order to enhance its business activities. It is a strategy that focuses on launching new
product in existing market to attract more and more customers. The Organisation can modify its
products and also can develop new product by focusing on fulfilling the need and requirements
of people. It is important for an organisation to develop a unique product that helps in making
business differentiated from its competitors in order to sustain in Market for long run. The
Company must focus on research and development, innovation, detailed insight of customer’s
needs and being first to market. The advantages of product development strategy is that company
can attract more and more customers by launching new product and also it helps in increasing the

brand awareness. The disadvantage which Davison Canners can face is changing customer
preference; firm must identify the taste and preference of customers in order to sustain in Market.
Diversification Strategy determines that organisation must expand their business with new
product in new market in order to run the functioning of business in new and effective manner. It
is one the riskiest strategy to implement as company is going to expand its business in which
they have little or no experience. If the strategy get successful it helps in offering high revenue as
it provides a new revenue stream for the organisation. There are two types of diversification they
are related diversification and unrelated diversification. The benefits of diversification strategy
are that company can increase its market presence by diversifying the product and business in
International Market. The disadvantage of diversification strategy is that it reduces the quality of
the product as company focus more on increasing its presence in Global market.
The Best Strategy that must be used by Davison Canners for increasing its growth and
productivity of business is Market development strategy as it helps in expanding business in new
market by existing product. The Company can also gain various advantages through market
development strategy such as they can get access of new market and new customers through
which firm can generate high profit and enhance its growth.
TASK 2
P3 Determine the sources of funding available to businesses and discuss their benefits and
drawbacks
For expanding the business in new target market, company requires a lot investment in order
to run the functioning and activities of business smoothly and effectively. There are various
sources of funding through which Davison Canners can raise the fund for fulfilling the needs and
requirements of business they are venture capital, bank loan, Crowdfunding and raise from
investors.
Bank Loan is one of the trustworthy mode for raising the fund as it establish an agreement
between the bank and borrower for a certain amount which will be acquire by the company. The
Organisation has to pay some collateral security in respect of amount which is borrowed by
owner. The Bank offers various types of business loan on which they charge interest payment
which must be paid by the firm (Fisher, Norman and Klett, 2017). There are certain terms and
condition of bank loan which must be followed by the borrower in order to pass the loan amount.

The Bank gives loan to businesses by checking their background and financial activities so that
they might not face problem in future.
Benefits of Bank Loan
The benefits which can be gained by borrower are that the loan which firm avail is safe
and secured and even the organisation has to pay low interest on the amount taken as a loan. The
main reason why Company borrow funds form bank is that they provide loan at cheapest rate due
to which business needs and requirements get fulfilled. The amount which is borrowed by
organisation can be used for any use whether personal or professional use, bank does not indulge
in the decision making process of Owner. Even they don’t provide a set of rules by mentioning
how and where to spend money.
Drawbacks of Bank Loan
The Drawback of bank loan is that firm has to pay the interest amount on the fix time and
date if they are not able to pay the amount bank can take action against the Organisation.
Davison Canners must identify whether they are able to pay the interest amount on the due date
if not than it will be risk method to raise the fund as it affects the image of Company in Market.
For getting the loan form bank it is necessary to maintain the reputation in market and also the
organisation don’t have any backlogs.
Crowdfunding is another way through which organisation can raise the funds for expanding
business in new market. Davison Canners must focus on crowdfunding websites and other social
media platforms that help in raising the fund from investors. It is important to design the
effective project in order to attract the investors so that they can invest in the project (Peters,
Gudergan and Booth, 2019). Crowdfunding offers an opportunity to entrepreneurs and the
company that want to raise the fund in order to run the business efficiently.
Benefits of Crowdfunding
The benefit which can be gain by Davison Canners is that they can raise the amount
without paying any fees for expanding their business in new market. But it is necessary to attract
the investors so that they get ready to invest in the project of expansion. The Crowdfunding
method is one the easiest way to raise the money from investors and create a strong investors
base for future project.
Drawbacks of Crowdfunding

Crowdfunding method also has a drawback which organisation might face as all projects
doesn’t get fund. Sometimes Organisation get fail to convince and attract the investors due to
which they might face shortage of fund. When Davison Canners fails to get amount for growing
their business it impacts the planning and strategies which is developed by the Organisation and
also reduces the morale of owner.
Venture Capital is also a mode for raising the fund it includes well-off investors,
investments banks and financial institutions which helps organisation to get the amount for
running business activities (Polancos, 2018). Venture capital is the amount which is invested by
the investors in respect of earning huge profit if business gets successful in target market.
Usually investors look out the companies in which they seek long term growth.
Benefits of Venture Capital
There are few benefits which can be avail by Davison Canners, they can get access of
strong networks and connection of investors which helps in raising the fund and make business
profitable. Through venture capital, organisation can attract a large number of investors who are
interested in investing the amount in order to gain high profit.
Drawback of Venture Capital
The One of the drawback of venture capital is that it is a long process which requires a lot of
time as investors look out various factors and make decision accordingly. The Company have to
reach on certain milestones to raising the fund and attract more and more investors towards firm.
The Best source of fund which must be used by Davison Canners is Bank loan as it is
secured and trustworthy element that involve paperwork due to which company can successfully
run business by paying the interest amount on due date.
TASK 3
P4 Design business plan for growth that includes financial information and strategic objectives
for scaling up business
Business plan is developed by the Organisation in order to get overview of future business
activities. Business plan helps in providing the direction to company so that business can run
smoothly and efficiently without facing any problem. The Business plan for expanding the
business in Target Market includes:
Executive Summary

The report highlights the elements which is necessary to assess while planning for growth
so that organisation can expand their business successfully without facing any risk. The Business
plan is developed in order to avail the information related to future activities of the business.
Vision and Mission of Company
The Vision of Davison Canners is to make business successful in Market by fulfilling the
needs and requirements of customers. The Mission of Organisation is to enable customers to
have a confidence on the capabilities of the firm to deliver with highest level of standard.
Strategic objectives
The Objective of the Firm is to diversify their business in order to increase the sale and
profitability of business. The Organisation wants to expand their business in New Zealand for
which the best strategy is market development (Kang, Diao and Zanini, 2020). Through
implementing market development strategy, Davison Canners can expand its business and gain
high profit as it allows firm to target new market with existing product through which they get
access of new customers. For growing business in International Market, organisation has to
conduct the market analysis through which they can avail the knowledge of customer,
competitors and market that helps in making effective decision related to growing business in
New Target Market.
Financial information
The Organisation requires a huge amount of finance for expanding the business in New
Zealand. The Company has to make a proper plan for using the finance and arranging the fund
for running business activities. Davison Canners can also raise the fund form different sources of
finance which helps in executing the plan related to expansion of business.
Total Forecasted Budget

From the above figure it is being cleared that hiring cost is raising year by year that
reflects that customers are getting satisfied with the delivery services of Davison Canners. The
Organisation has to focus on promotional and advertisement activities in order to provide
information of the product to audience. The delivery truck requires a maintenance which
company have to manage. The hiring cost in 2015 was 20000 $ whereas in 2016 it was increased
as company hires a new and skilled employees due to which the amount was 30000 $ and in
2017 also the hiring cost of Davison Canners increased it hits the 50000 $. The promotional
expense of company in 2015 was 9000 and in 2016 it was 8000, the amount was decreasing due
to which company expenses are reducing year by year. The advertisement expenses were get
decreased in 2016 but in 2017 it get increased as the company focuses on promoting their
product and market in order to reach more and more customers. The truck maintenance expenses
also increases in 2017 as the organisation is providing effective delivery to their customers so
that they can enjoy the product.