Rowlinson Knitwear's Growth Plan: A Comprehensive Unit 42 Report

This report provides a comprehensive analysis of growth opportunities for Rowlinson Knitwear, a manufacturer of corporate and school garments. It begins by identifying key considerations for assessing growth, including competitive advantages like cost leadership and differentiation, and utilizes PESTEL analysis to evaluate external market factors. The report then examines various frameworks, such as the BCG matrix and product life cycle, to determine the best strategic approaches for expansion. It explores different sources of funding, including bank loans, crowd funding, and angel and venture finance, and assesses their advantages and disadvantages. Furthermore, the report outlines the essential elements of a business plan, encompassing the company's mission, vision, and objectives, and examines growth options using the Ansoff growth matrix. The report ultimately aims to provide a strategic roadmap for Rowlinson Knitwear's expansion into new markets, specifically focusing on the Moroccan market. Finally, the report briefly touches on exit or succession strategies for small businesses. This assignment is a practical guide for business development, offering insights into strategic planning, financial management, and market analysis, all of which are crucial for sustainable growth.

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Unit 42– Planning for
Growth
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key considerations for assessing growth opportunities in an organisation......................3
P2 Evaluate growth opportunities for organisation by implementing required framework...6
TASK 2............................................................................................................................................7
P3 Assess different sources of funding that are available in the market for a firm...............7
TASK 3............................................................................................................................................8
P4 Design an appropriate business plan for an organisation..................................................8
TASK 4..........................................................................................................................................10
P5 Assess different exit or succession decisions for a small business.................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Planning for growth define as a crucial activity that aid to business owner to plan by
finding opportunities of growth from the market place to gain possible results. These activities
help to adopt changes as well as build distinctive image from their competitors who proved
valuable for gaining sustainability in marketplace. Respective report is based on the Rowlinson
knitwear which is a manufacturer of durable garments best suitable for the corporate branding
and personalisation for schools and clubs. Respective assignment is based on opportunities of
growth that justify in respect of organisation to gain possible results by using various theories
and practices. Further it includes the potential sources to gain funds by elaborating their
advantages and disadvantages. While an organisation planned for growth business plan
coordinate each and every event for attaining business goals. At last it includes the exit or
succession options for a small business with their benefits and drawbacks.
Investing in future:
TASK 1
P1 Key considerations for assessing growth opportunities in an organisation.
For an organisation it is essential to find out gaps and plan to enlarge business
opportunities in positive manner (Rondinelli, 2019). For enlarge business opportunities it is very
much crucial to build plans and policies in context of Rowlinson knitwear before enlarge
business opportunities it is very much crucial for them to identify their growth opportunities that
are as follows:
Competitive advantage:
It is most significant attribute for a firm to evaluate their areas of strength and
weaknesses accordingly build strategies and tactics (Robertson, 2019). The major areas of
strength in context of Rowlinson knitwear that they are very much popular within the people as
they only work in specific area of clothes that are corporate and school wears. They work on
specialisation of products and services that enhance demand of their products.
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Competitive advantage foundation for growth:
for an organisation it is very crucial to acknowledge their level of competency,
capabilities and resources that contribute in their economic growth. In context of Rowlinson
knitwear by using the Porter's generic model they evaluate various factors that are as follows:
Cost leadership:
This is one of most crucial part for an organisation and consider one of most unique
strategy for organisation to provide products to the ultimate consumers at lower prices in
comparison to their competitors. In context of Rowlinson knitwear they offer products
comparatively lower then their competitors by purchasing raw material in bulk and by using
advance tools and techniques to reap important outcomes.
Differentiation strategy:
Respective strategy states about the organisational products and services that are distinct
from their competitors products that helps to consumers in decision making process (Perloff and
Wingo, 2019) . In context of Rowlinson knitwear they only deals in specific segment that is
corporate, club and school wears so they possess the special group of people who demand their
products and services.
Cost focus:
By using respective strategy organisation offer products and services in most innovative
manner with low cost (Perloff and Wingo, 2019). The major focus of respective organisation is
to charge low cost from their consumer base to gain larger market share. They build their
products by specifying their pricing for a special group of people so that they can enlarge
business opportunities positively.
Competitive advantages for growth opportunities:
For a firm to reap important outcomes it is very crucial to evaluate the external
marketplace by using PESTEL analysis:
Political factor:
In context of Rowlinson knitwear that expected to expand business opportunities in
marketplace of Morocco in north America. So it is crucial for them to evaluate market as
political slumps impact their business in adverse manner.
Economic factor:
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While enlarge business in international marketplace various factors such as interest rate,
inflation affect on their business so it is crucial for them to grab opportunities after evaluating
respective factors.
Social factors:
In context of Rowlinson knitwear which aimed to enlarge business it is very crucial to
evaluate taste and preferences of consumers in order to build products accordingly.
Technological factors:
While enlarge business opportunities in market of America it is needed to examine
technological up gradation in respective market so that they can build one of best products in
positive manner (Perloff and Wingo, 2019
Legal factors:
While enlarge opportunities in foreign marketplace it is essential to examine legal
regulations in context of Rowlinson knitwear in Morocco various kinds of labour laws can affect
their performance of business.
Environmental factors:
In context of Rowlinson knitwear they have to always build a image by contributing in
CSR activities by creating eco friendly products and services into market place so effective
results should be attained by analysing areas of interest of consumers.
After evaluating various factors it has been analysed that with the help of low labour
costs and proximity to Europe helps to build a diversified and market oriented economy that are
very much potential to Rowlinson knitwear to enlarge business in respective market.
New products and services:
For an organisation it is very much crucial to evaluate products and services on the basis
of the growth, in context of Rowlinson knitwear while enlarge business opportunities in market
of Morocco they use various strategies and tactics that are as follows:
Boston Consultancy Group Matrix:
BCG matrix is a tool that has been used for corporate planning that denotes the horizontal
and vertical options that are question mark, stars dogs and cash cows (Wann-Ming, 2019). In
context of Rowlinson Knitwear, by using the cash cows that products in low growth markets
with high market share. As they are deals in limited market share so they need to grow in the
market by enlarging business opportunities.
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Product life cycle:
Product life cycle is associated with marketing and decisions related to businesses and in
which product come across with development, introduction, growth, maturity and decline .
(Perloff and Wingo, 2019). In context of Rowlinson knitwear they enlarge their business
opportunities in market of Morocco in the stage of growth as they are leader of market to reap
important outcome to remain competitive in marketplace.
For a SME it is very much important to consider various areas while expanding their
market that are market size by conducting the through research and development. The another
major factor which is ability to manage the cash flows that can be possible by look out the
business plan and many more factors.
P2 Evaluate growth opportunities for organisation by implementing required framework.
Growth options:
For an organisation it is very much crucial to analyse the internal and external strength and
weaknesses by using the various models and frameworks that are as follows:
Ansoff growth matrix:
Respective model used for strategic marketing planning that used for look chances to
enhance and grow their profits through the expansion the new products and services in the
markets that are untapped. In context of Rowlinson knitwear after examine the all forms that are
market penetration, product development, market development and diversification in order to
reap important outcomes (Perloff and Wingo, 2019). . In context of Rowlinson knitwear they
after analysing the PESTEL analysis they aimed to enlarge opportunities in market of Morocco
by using market development in existing sectors by finding out potential demand in positive
manner.
The major risk associated with expansion which fail of technology and lack of funds as they
estimated each and every event in proper manner but uncertainties existed everywhere.
Joint ventures:
Joint ventures that helps the company which helps to internationalise and develops the
partnership with the local business which enables to build a strong presence in the market
and institutional relations. In context of Rowlinson Knitwear respective strategy of
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development apply for same target countries represent only way to access in the foreign
marketplace.
TASK 2
P3 Assess different sources of funding that are available in the market for a firm.
For an organisation it is very much crucial to arrange finance from the various sources as it
proved beneficial to accumulate potential knowledge regarding the pay back period and present
value of money in order to attract new potential segments of customers in an efficient way.
(Wilson, 2019). In context of Rowlinson knitwear by using the Pay back period method they can
accumulate necessary information regarding present value of money with return period of
money.
Sources of finance for growth:
Bank loans: Bank loans is one of most easiest way to raise funds from the banks for both small
and large enterprises that proved helpful to provide funds for specified time period by charging
interest rates (McLean, 2019).
 Advantage: it charges low interest rate in comparison to the other kind of sources of
raising funds.
 Disadvantages: it takes long time and formalities in order to raise funds from it.
Crowd funding: It refers to raising funds for a particular project by raising small amounts of
money from several people.
 Advantages: it is one of the fastest ways to raise funds with no kind of upfront cost.
 Disadvantages: In case if an individual doesn’t reach at funding target then any fund that
has pledged will be returned back to the investor investor and the person who had raised
the money but does not gain anything (Mabojunye, 2019).
Peer to peer lending: It is referred to as the practice of lending money to individuals or
businesses by online services that match lenders with borrowers.
 Advantages: Respective lending generally provides higher level returns relatively to the
others kind of investors.
 Disadvantages: In respective kind of raising funds factor retain high level of credit risk
which hinders self interest in order to gain potential outcomes.
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Angle and venture finance: it refers to that is one of best way to raise funds to set up new
business in order to gain new customer segments.
 Advantages: it carried less risk in comparison to the other kinds of debts.
 Disadvantages: respective kind of source of raising funds required more control in
coordinate business activities.
So from the above discussion it has been summarised that for the Rowlinson knitwear one of
the most appropriate way to raise funds by using the Angle and venture finance an organisation
can easily raise funds that are most useful for the SME. The required amount is 3,24, 439. 61£ to
enlarge business opportunities in foreign marketplace.
TASK 3
P4 Design an appropriate business plan for an organisation
For an organisation it is very crucial to find out opportunities for growth as it is very
important to build business plan that helps to coordinate each and every aspect in proper manner.
in respective activity there are no. of activities involved that are mission, vision, objectives and
strategies in order to gain new customer segments. (Holz-Rau and Scheiner, 2019). in context of
Rowlinson knitwear there are various kinds of crucial elements contributes towards increasing
their level of productivity and profitability that are as follows:
Concept of business:
In context of Rowlinson knitwear in their process of business consist of the mission, vision
and objectives and many more while enlarge business opportunities in market of Morocco that
are as follows:
Organisational products and services:
In context of Rowlinson knitwear they enlarge their products and services by using their
existing products that are clothes for corporate and schools. Respective factors are very much
well known in market due to their quality in marketplace.
Vision and mission of organisation:
The vision and mission statements of organisation is to enlarge business opportunities by
enhancing the quality of products in market place. (Felsenstein and Taylor, 2019). So they
aimed to reach the places in order to satisfy their needs and wants in proper manner.
Operational strategy:
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The operational strategy followed by Rowlinson knitwear customisation in which they
aimed to totally rely on the needs and wants of consumers in order to remain competitive.
Unique selling proposition (USP):
The USP of the respective organisation that they are one of the most well known in context
of quality of their products and specialised manufacturing the clothes for corporate and schools.
Strategic objectives:
The strategic objectives of Rowlinson knitwear are as follows:
 To provide one of most desirable products and services of high quality to the consumer.
 To introduce itself in new market with existing products by increasing profitability by
20% within a year.
Market analysis:
Before enlarge business opportunities it is very crucial to analyse the market and its
conditions in proper manner, with respect to Rowlinson knitwear by using the SWOT analyse
they evaluate market conditions that are as follows:
Strength:
The major strength of the Rowlinson knitwear that they maintain the quality of products
which work as their unique value in marketplace.
Weaknesses:
The major weaknesses of Rowlinson knitwear that they possess ineffective kind of
distribution system that hinders to reach at large no. of consumers in positive manner.
Opportunities:
The major opportunity in front of the Rowlinson knitwear that they have the team of
specialised individuals that evaluate market conditions in order to enlarge business opportunities
in market of Morocco.
Threats:
Major threat in front of respective organisation that they are deals in limited range of
product so they need to enlarge their business opportunities in other products too.
Financial plan:
For an organisation it is very much crucial to build financial projections to prepare products
and services accordingly in positive manner.
Monitoring and control:
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After preparing the budget it is very much crucial to monitor each and every activity in
proper manner (Fabos, 2019). in context of Rowlinson knitwear by using the key performance
indicators and Benchmarking in order to set standards for gaining potential outcomes in positive
manner.
From the above discussion it has been summarised that in context of Rowlinson knitwear by
using respective factors organisation can be successfully amend their level of performance in
positive manner.
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