OFFERS Buy 4 assignments and get 1 absolutely FREE!
Search

Planning For Growth Of a Company

University : UKCBC College

  • Unit No : 42
  • Level : Undergraduate/College
  • Pages 19 / Words 4000
  • Paper Type : Assignment
  • Course Code :

    J/508/0601

  • Downloads : 203
Question :

Planning for growth implicates the strategies that help out to increase the growth prospects in all the associations. Pulleyn covers the small business that is running in England and it deals in all the storage and the transporting services. Kindly do answer all the learning outcomes mentioned below: -

  • Explain the key considerations that helps in evaluating all opportunities in growth.
  • Explain various Types of funding with all the ways through which company use to raise funds.
  • Elaborate the Business plan development
  • Explain exit methods in the business.
Answer :
Organization Selected : Pulleyn

INTRODUCTION

Planning for growth means to make strategies which help to increase growth prospects of association. These days managers of business are making policies as per market trends. It helps in growth of association. There is use of some techniques which is effective for enhancement of association. Growth of business enterprise means to come with approaches which helps in improving production and profits. There is requirement of proper planning which help to perform business operations in effective and significant way. To overcome this situation, managers has to motivate their subordinates (Barbour and Deakin, 2012). In small scale business, there is more scope of growth hence manager has to plan business operations in effective way. This report is based on Pulleyn which is small business running in England which deals in storage and transporting services. In this report there is discussion about key considerations of SME for growth opportunities, various methods of funding, business plan for growth of enterprise, various approaches for exit and succession of business in

TASK 1

P1 Key considerations for evaluating growth opportunities

Business include commercial activities which aims at earning good profits and create good image in society. This can be possible with the help of analysing market and take decisions which are essential for growth. It is important to take actions as per market situation to run business in society positively. As there are many changes which has to be taken to make business operations at growth. There are any factors which are associated with growth of business, so it is important to take actions in effective and significant manner. There are some capabilities in every firm, it is essential to polish them and use to run business in effective way. There is requirement of various resources through which managers of Pulleyn is able to deliver good quality services. As there is need of transportation services at exact time. This gives satisfaction to customer. But this can be possible when manager take actions in effective and efficient manner. There are many changes which are required to be taken place for providing growth to business (Brinckmann,Grichnik and Kapsa, 2010).

Managers of Pulleyn has to analyse market and take actions which is effective for market growth and business. There are some capabilities which are present in services of Pulleyn that have to be analysed and polished. So, this help in performing business operations in more specific way. Pulleyn can grow its business operations with the help of developing good image in market.

Resources- Pulleyn deals in service sector. They provide services related to truck facilities and storage facilities as per requirement of customers. There is use of various temperature which is fruitful for market trends. It is important to frame services that helps to satisfy need of society. There is need of tricks, warehouse, employees, etc. which are basic resources to accomplish task (Burton, 2010).

Capabilities- Capabilities are strengths which provides edge over competitors. As there is need of storage facilities with various temperature. This is effective for satisfaction of customers. It is essential to analyse capabilities are make them use to satisfy customer. These are points which is significant for growth of business.

Core competencies- Core competencies are important for making changes in roles and responsibilities of managers. These are the policies which are not present in other companies. These is effective for market growth and take actions according to market trends.

Porter Generic Strategy Model

Porter generic model is one of the important element which is significant for growth of business. To plan business activities, it is essential to work according to capabilities of association. This approach creates link between competencies and capabilities of Pulleyn. There are four elements considered under this which are discussed as under-

Cost leadership- Cost leadership is one of the important component which is essential for growth of business. It is essential to know what can be done through which managers can provide transportation and storage services at lowest price in market. This helps to create good customer strength and Pulleyn's image can be improved.

Differentiation- As there are many change taking place in business environment, so it is essential to work according to make trends. This can be done when managers of Pulleyn accept changes. There are various customer having differ in their demand. For e.g. there is requirement of different temperature, so it must be kept in mind by managers so satisfaction can be provide to customers (Chapin, 2012).

Cost focus- There is requirement of various resources which is significant for market trends. It is essential to select sources through which best quality services can be provided at minimum cost.

Differentiation focus- As per this element, there are possibilities of use of techniques which helps to provide some innovative service. There is use of technique which is significant for market and take actions as per requirement of market. There is requirement of analysing market and take to innovate something new.

Cost focus is the best technique which has to be used by Pulleyn to launch inter state services. There is requirement of changes in working style which is effective for growth and provide satisfaction to customers. Lowest price helps to increase sales and promote brand in California (Christofakis and Papadaskalopoulos, 2011).

PESTLE of Pulleyn

PESTLE analysis is one of the best technique to know about external factors which are not present in market. There must be use of strategies which helps to come up with approach which reduces negative effect of external factors.

Political Factor- There is important role of government in running business,. It is essential to follow government norms which is effective for smooth running of business. When managers of Pulleyn follow government norm, they can easily expand business.

Economical Factor- There is a requirement of finance to run and expand business. It is essential to select source of fund which is available on time and is cheap. In case of shortage of funds, business growth can be halt. So availability of source of finance is one of the important opportunity for growth. Pulleyn can raise funds from venture capital and bank loans which is easily available as compared to other sources.

Social Factor- Social factor involves elements which make changes in demand of customer. Pulleyn has to analyse market and provide services as per demand of society. This is the biggest opportunity for growth of Pulleyn. When managers of Pulleyn is thinking to launch services in California, then they must promote services as per people's need and requirement.

Technological Factor- As Pulleyn works to provide storage and transportation services at specified temperature. It is essential to know what can be done and which is effective for market and perform business operations accordingly (Eddleston and et. al., 2013).

Legal- There is requirement of some legal norms which provides legal and authentication to business operations. Managers of Pulleyn use approaches which is significant for growth of business. There is requirement of legal advisor which helps to provide appropriate knowledge about legal facts, which help to create loyalty in services provided by Pulleyn.

Environmental Factor- Environment is one of the essential component which has to be considered by managers of Pulleyn. As they provide storage and transportation services as per temperature of environment. So goods of customer remain same. This is growth opportunity for Pulleyn.

TASK 2

P2 Evaluation of growth opportunities by applying Ansoff’s growth Vector Matrix

Ansoff's Matrix is effective technique which is used by managers ton know what can be done through which they can expand their business. There are some components which has to be considered and take actions in order to attain good image. As many changes are taking place in business environment, so managers of Pulleyn has to work accordingly. It is essential to know what can be done through which business growth prospects are open (Grover, Bokalo and Greenway, 2014). There are possibilities that due to use of Ansoff's matrix, managers are able to work under different environmental prospects.

Ansoff's Matrix Model was launched in 1957 by H. Ignor Ansoff. Through this, technique growth prospects are clear and this is effective for growth of association. There is use of various approaches which can help to know what can be done through which they can expand business. There are many aspects of growth which can be considered by managers of Pulleyn. There is requirement of proper planning which is significant for market growth and actions which can be taken according to market trends. There are four main components which has to be considered under Ansoff's Matrix. Here are discussed as under-

Market penetration- This is the factor which is used by managers of Pulleyn when they want to expand their market share. In this concept, existing services are being promoted in existing market. This is the block which has least risk and image of association can be increased in industry. This helps to create brand in hypes and attaining targets easily. As there are many competitors, it is essential to work according to customer demand, through which good image can be made among existing customers (Hough and et. al., 2010). There are possibilities that workers do not work according to market trends, then manager has to motivate and guide them.

Product development- In this segment, there is launching of new product among existing consumers. It is essential to come with approaches which helps to launch new services by managers of Pulleyn when managers give priority to customer demand rather that product specification. There are many changes which are taking p-lace in demand of customers, so in product development modifications are made in product after analysing market. This helps in increasing sales and profit and provide satisfaction to customers. There is high risk as product may not preferred by consumers.

Market development- This elements works when company is launching old product among new consumers. There are many changes which are taking place in market, so it is essential to work according to external factors. (Keough, 2015). Pulleyn wants to expand their business, so there must be strategies for targeting new customer range. This is effective for market changes and take business activities in appropriate way. There are many changes which are taking place in business environment, so there is use of techniques which is significant for creating good image in industry.

Product Diversification- This is the most risky approach in Ansoff's matrix. In this, new services are launched by Pulleyn. This is one of the most risky approach but most effective for earning good profits. It is essential that manger has to plan properly while launching new business in market. This is effective for market growth and perform business operations in pre- determined manner. This block is known as suicide point. This helps to know what can be done through which changes are possible in business activities.

(Source: Ansoff's Growth Vector matrix, 2017)

From the above discussion it is clear that to expand business, managers of Pulleyn has to accept market development block. This is one of the best and effective approach which helps to execute changes in working style and attain goals and objectives in appropriate way. It is important to know what changes has to be made so target consumer can get positive results (Li, Mobin and Keyser, 2016).

P3 Potential sources of funding and their advantages and disadvantages

Capital is one of the main and essential part for the development and success of the small business. Appropriate amount of the fund assist the organisation to do their all activities and functions in an appropriate manner. There are various sources which are used by Pulleyn to perform their entire operations and functions in systematic and effective manner. Certain sources of funding and its advantages and disadvantage are shown as below:

Bank Loan: It is fundamentally an agreement between the bank and the borrower regarding a few amount of capital that the borrower will acquire and then pay back in particular increments at a limited interest rate. In simple words, it is a most common way of loan money for a company (MacLeod, 2013). This source gives long term or medium finance to the company and individual who has actual need of capital for doing their activities appropriately. There are some advantages and disadvantage of bank sourcing which are mentioned as under:

Crowd Funding: It is a type of funding resources which is used for minimum amount of fund from a different number of persons to finance an unique business venture. In simple word, it is an effective process of raising funding through online. Thus, it is essential and effective source of funding for the small organisation in order to collect appropriate amount of the capital and do their whole functions and operations in a successful manner (Mitchelmore and Rowley, 2013). There are certain benefits and drawbacks of Crowd funding which are determined as below:

P2P (Peer to peer lending): This is a way of crowd-funding which is used in order to raise loans for large number of person who need to acquire, from group and want to invest. In other word, it is the best source of leading finance to businesses or individuals via online services that similar lenders with borrowers. Since P2P lending business has taken a fee for giving the match-making level and credit checking the borrower. Thus, it is also beneficial and essential for Pulleyn to collect sufficient amount of the capital with purpose to perform their all operations and activities in a systematic manner (Moseley, 2013). Some drawbacks and benefits of the P2P lending are determined as under:

Angle and venture finance: Venture Capital is endowed by organisation or business that utilise other people's fund. They raise that amount by serving investors a possibility to take an effective part in a money that is then utilized to get shares in a private business. Thus, this type of source help Pulleyn to collect appropriate amount of the capital which help them to do entire activities and functions in an appropriate and effective way (Pallagst, 2010). There are some pros and cons on this resources which are explained as under:

Therefore, all these approaches are appropriate and suitable for the organisation to gather appropriate amount of the capital. With the help of this, they can easily do their all functions, activities and operations successfully. Bank loan and Angle and venture finance are used by the Pulleyn to achieve long term goals and objectives in specific time period. Thus, both are appropriate and essential for the development and growth of organisation within predetermined period of time.

TASK 3

P4 Business plan for growth of business

Business plan is the technique which is used to make overview of future business activities. To make future plans, some targets are set which has to achieved within specified time. This is effective techniques for approaching company in effective and efficient way (Todes, 2012). In business plans, preparation of entire design or plan is done related to achieving targets on time and in effective manner.

Business plan for launching inter country transportation services are follows as under-

Vision & Mission:

Vision – Vision of Pulleyn is to expand their brand name through providing storage and delivery services all over country.

Mission- Mission statement of Pulleyn is to provide safest storage services for hazardous and durable products.

Objectives strategies costs:

Strategic objectives: Pulleyn wants to work in business environment as per market trends. It is essential to know what can be done through which they can make changes in their business policies and take actions as per growth prospects. Managers of Pulleyn is thinking to expand their business in California, so they are setting targets of all over 50% increment of sales in next 2 years. This targets is specific and measurable. Manager has to select approaches which aims at achieving targets on time (Valler, Phelps and Wood, 2012). To launch inter state services, it is essential to work in specified manner, so there will satisfaction among customer and Pulleyn can grow.

Financial information

Expansion of business is not possible without finance. It is important to work in effective manner through which funds are available and take actions to use them in appropriate way. There are many sources to raise funds but managers of Pulleyn is using bank loan and venture capital. There is requirement of estimation of funds which helps to frame action plans. There is requirement of advertisement, promotion, etc. which is significant for market growth and take actions in specified manner.

Total forecasted budget

Particular

31/12/15 ($)

31/12/16 ($)

31/12/17 ($)

Hiring cost

20000

30000

50000

Promotional expense

9000

8000

6000

Advertisement expense

6000

5600

5800

Catalogues

2000

4000

3000

Truck Maintenance cost

7000

8000

8500

Total Cost

44000

55600

73300

From the above discussed budget, hiring cost of trucks will raise year after year. This shows that people are taking interest in inter city services. There is requirement of promotional services which is important to deliver knowledge about new services. There is requirement of maintaining trucks cost, this is increasing year by year. Manager must motivate employees to use resources in optimal way, so they can perform business operations in effective manner.

Cash flow statement is effective tool to know cash transactions happening in business. In Pulleyn deals in service sector, so it is essential ton work according to requirement. It is essential to take actions which are significant for launching inter city services. Cash in beginning is increasing in 2015, 2016, 2017. There is increment in cash flow of operating services. It is essential to take actions in appropriate way through which cash at end can be remaining which is sufficient for future. Estimated aggregated annual income for three years is 72001.

TASK 4

P5 Succession and exit plan for small business with its advantages and disadvantages

Expansion of the business is to a easy task for the owner of the specific organisation. There is requirement of few variation in functions and activities of company, so it is essential in order to understand what can be through which modification can be developed in enterprise. It is significant that firm deal with enlargement or administrator can also plan for close business. There is more utilisation of effective policies and strategies which is useful for the growth and development of organisation. There must be an accurate planning about the succession or exist plan of business, thus this impacts on its operations and functions in a positive way. It is important to come with foremost changes in responsibilities and duties which support them to accept variation as per the trends of market (Wu, 2015). There are various ways of successions and exist which are determined as under:

EXIT WAYS

Winding Up: It is the main way via which an organisation can wind up their business operations with interventions of governments. In this concept, administrator of the specific company pays entire liabilities as well as make their liabilities and assets become nil. Thus, it is essential for making variation in its trading operations and this is valuable for studying marketplace. When company's financial consideration is bad then this impacts on business operations. Therefore manager is able to decides in order to wind up their company. There are some drawback and benefits of such options which are explained as under:

Benefits

There is interference of government is much, so it help them company to wind up their business because there is chances of fraud is minimum.

There is set of entire asset and liabilities rest money is cashed to promoters and directors.

Drawback

Such options of exist is time consuming, so administrator has to plan an actions of activity in a proper manner.

Financial image of organisation gets decreased due to closure of company.

Selling: It is another options of exist business in an effective manner. In this, business sell their business to the another company and in consideration, they provide money against it. There is accurate evaluation which assists them to perform their business activities and operations appropriately (Ziari and et. al., 2012). Beside this, manager needs some amount of the fund in order to perform their functions in an effective and efficient manner. Some drawback and benefits of selling options are available which are determined as under:

Benefits

Selling of company need minimum time period as compared to many other alternative.

There is no impact on goodwill of organisation and sales residue significant and good.

Drawback

In selling option, there are chances that asset costing are minimum as compared to actual price.

There is goodwill of past businessman, so unique promoters can not change policies and plans suddenly.

SUCCESSIONS

There are some ways of successions which is applied by almost different organisation. These are determined as under:

Merger and Acquisition: It is identified as one of the best and effective approach through which Pulleyn can manage better goodwill in marketplace (Barbour and Deakin, 2012). In this, there is better aggregation of more than two organisation which support them to perform their business activities and functions in a significant and accurate manner. Some advantages and disadvantages of this options are explained as under:

Benefits

There is utilisation of betterment in resources and product quality which is offered by the Pulleyn.

This options help the company to increase their profitability and make effective brand image in the marketplace.

Drawback

In cases, where the small business are being merged or acquired by big large organisation, the workforce of the small entity may necessitate exhaustive re-skilling. Therefore, the time during which is needed for such re-skilling, the organisation will have to see the non-productivity.

A merger decrease competition and hence can provide the acquiring business the monopoly power or authority in the market.

Integration: It is identified as a combination of two or more business activities and functions in the way of related and unrelated fields. Beside this, both the enterprise operates or run their business in a successful manner. Integration is divided into four parts including backward and forward vertical integration, horizontal and conglomerate integration (Brinckmann, Grichnik and Kapsa, 2010). There are some pro and cons of integration which are determined as under:

Benefits

This support to decrease costs and enhance the quality of inputs into the process of productions.

May benefits from maximised economics of sales.

Drawback

Maximise the size of organisation as well as problems which hinder on the business performance and profitability.

This is slow development and progress in organisation because of accurate decision making and planning is time consuming.

CONCLUSION

From the above discussion it is clear that there is requirement of proper planning which helps to expand business. There are many factors which affects business growth. Through PESTLE managers has to plan business operations and actions must be taken to get positive results. Manager has to analyse market and then take decisions which help to effective for growth of business. There are possibilities that due to use of growth in business operations, there will impact on performance of employees. Ansoff's matrix is effective as it tells about area which is effective for organisational growth. Business plan has to be framed by top level managers which set guidelines of subordinates. For small scale business, there are some techniques for succession as well as exit of business. It is responsibility of managers to select best and effective technique. There is requirement of funds which is significant for growth of business. As there is requirement of time as well as cost for expansion, it is essential to take decision properly.

Download Full Samples
Cite This Work To export references to this sample, select the desired referencing style below:
Copy to Clipboard
Copy to Clipboard
Assignment desk (2020) J/508/0601 [Online]. Retrieved from: https://www.assignmentdesk.co.uk/free-samples/j5080601-planning-for-growth-of-a-company
Copy to Clipboard
Copy to Clipboard
Assignment desk. J/508/0601 [Internet]. Assignment desk.(2020), Retrieved from: https://www.assignmentdesk.co.uk/free-samples/j5080601-planning-for-growth-of-a-company
Copy to Clipboard
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price
USD 7.03

Delivered on-time or your money back

100+ Qualified Writers

For Best Planning for Growth Assignment Help

View All Writers
FREE Tools

To Make Your Work Original

  • Plagiarism Checker

    Check your work against plagiarism & get a free Turnitin report!

    Check Plagiarism
  • Reference Generator

    Get citations & references in your document in the desired style!

    Generate References