Planning is known as the process of decide future actions and activities and this play a significant role in growth of a business enterprise. One of the main benefit of this is that it help manager in identify the resources and funds require to complete business operations. This ensure completion of business activities in time. Technology is the factor that provide support to business entities to perform all functions and this also boost up the process of business. This bring creativity at workplace and help in offer featured products to customers operations (Barbour and Deakin, 2012). Clearly Drinks Limited, a soft drink firm operate in United Kingdom is taken in this report for study. Major focus of entity is to implement digital technology for get success. Major consideration for examine growth opportunities for an organisation is given in this report. Various sources of available to an enterprise for get funds with its advantages and drawback is
P1 Key consideration for analyse growth opportunities in context of an organisation
Clearly Drinks Limited is a soft drink firm and offer various types of drinks to its customers in UK. Main aim of enterprise in to expand its operations in new areas with help of innovation and different type of drinks in new areas as per the taste and needs of customers. In this way, entity can capture a large market share and at the same time can maintain a competitive position in market. With this, company can attract more customers towards its products and at the same time can increase its sales. All this directly increase profits of organisation and this is one of the main benefit of plan business activities. Final objective of entity can be achieve with help of plan various activities and with this entity can use the technology in better manner and can examine the factors in the business environment. One of the main benefit of planning is that it help manager in formulate better and effective policies for commercial activities. By implement the concept of digital technology, organisation can manufacture featured products for its customers and can satisfy their needs in better manner. Effective planning increase the success chances of entity and help in create an innovative environment at workplace. opportunities that are available for Clearly Drink Limited with implementation of digital technology is given in the following points:
- Competitive benefit: Management of Clearly Drink Limited plan to implement digital technology for carry out business operations. This will add effectiveness in whole business activity as with this all departments can perform their roles and duties in effective manner. With help of technology, manager of production department can identify the major and effective ways to carry out production process. In this way, enterprise can manufacture drinks with new flavour and can better satisfy the needs of its customers (Brinckmann, Grichnik and Kapsa, 2010). With help of technology, various tools of communication are there which can be use by manager of marketing department. Benefits of use technology can be attain by various other departments of company such as HRM, sales department and many more. With help of technology, manager can offer training to employees with new and effective channels. In this way, staff members can perform their job roles in effective manner and can serve customers in better manner. With all this entities cab perform well and can get competitive benefit.
- New goods and services: Technology provide various channels for communication which bring cooperation among various function perform by a business entity. Further this, help in create and maintain good relations with workers. Different tools support entity in carry out research and better understand the market trends and needs of customers. With this entity can produce soft drinks as per the requirements of customers and can retain them for a long time period. In addition to this firm can introduce new flavour as per the needs of customers. Innovative idea improve skills and knowledge of workers which help them in perform their job roles in effective manner (Burton, 2010). With help of technology entity can offer products to its customers with help of online platforms. All this increase success and sustainability of enterprise.
- Collaboration: Various growth opportunities are there available in front of firm in form of joint venture, acquisition, merger and many more. With this, entity can work with other firm and can serve more quality and featured products to its customers. With effective use of technology company can make new drink and can attain desired outcome.
All these are the major growth opportunities which can be utilise by Clearly Drink Limited to generate more profits and for capture larger market share.
P2 Evaluation of growth opportunities by apply Ansoff's growth vector matrix
Large number of growth opportunities before Clearly Drink Limited by implement the concept of technology for execute commercial activities. Entity can either develop products or can offer its existing products in new markets for serve more customers. In order to identify the opportunities and to utilise it there is a tool known as Ansoff’s growth matrix that can be use by firm. As per this tool there are four major areas known as product development, diversification, market development and market penetration. In this way, entity can expand its activities in new areas and can generate large amount of profit. Four options available for an entity that are cover under this matrix can be understood by the following points:
- Market penetration: This option is one of the most safer one and largely boost up the success process. In this strategy, entity sales it existing products in existing market. One of the main focus of organisation in this is to increase the number of its profits and for this entity implement effective strategies. One of the main focus of entity remain to offer more value to its customers (Chapin, 2012). Clearly Drinks Limited is a drink entity that offer various type of drinks to its customers. Penetration strategy adopted by entity to offer its existing products in markets for increase the number of profits. For increase the sale of products, entity require to use effective promotional tools. This is one of the best strategy to get competitive benefit and satisfy the needs of customers.
- Market development: Under this strategy, firm identify new markets for sale its products. This directly increase sale and market share of business organisation (Christofakis and Papadaskalopoulos, 2011). Clearly Drinks Limited can identify an d utilise growth opportunities in form of market development in which entity can offer its drinks. With technology, entity can use online platforms to expand its activities in new areas and can attract large number of customers towards its drinks. But to expand operations in new market and to manager business activities some elements that require to be consider by manager is that entity require to adopt affordable pricing policies. For expand business operations, entity require to take help of effective distribution channels so it can offer the products to final customers. Firm can divide the market on demographic and geographic basis (Eddleston And et. al., 2013). With this, entity can better identify the tastes and preferences of its customers and can fulfil their requirements in better manner.
- Product development: This is another strategy in this entity manufacture and offer new products to its customers for fulfil their specific requirements. Fro get all benefits related with this strategy, entity require to formulate and follow a plan. Technology can be use by entity for manufacture a new and featured product. in this way entity can gain trust of customers which also offer competitive benefit to firm. By identify and examine the tastes of customers entity can make drinks as per their requirements. Replacement of drink which fail to satisfy the needs of customers is also come under this. One of the main benefit of this strategy is that it help in attract the customers of rival’s firm.
- Diversification: This is one of the most effective strategy of achieve growth and success. Strategy adopt by Clearly Drinks Limited is to offer various type of drinks to its customers for enhance their loyalty. Under this entity manufacture new products and offer the same in new markets. Management of this technique is very essential for get the benefits related with this strategy.
All these are the major growth opportunities that can be utilise by Clearly Drinks Limited to achieve its set goals an objective. For attain success, entity require to carry out an situational analysis as with this firm can choose the best and effective strategy and at the same time can survive for long time period.
M1 Options for growth in order to understand competitive advantage
For identify and utilise the growth exist in market, it is very essential for business organisation to undertake an analysis of business environment. For this purpose, there is a tool called PESTLE analysis as this help in examine external factors and their impact on actions of firms. Opportunities provide by this analysis are as follows:
- Political: This help in analyse the political situations exist in a country and also indicate taxation policies. This support entity in take better decision and this help increate positive image of entity.
- Economical: with help of this element, M&S can identify and choose the best source for raise funds.
- Technological: This factor help in identify the new and effective technology exist in business environment and use of new technology help in maintain competitive position.
P3 Potential sources of funds available to business with its benefits and drawbacks
Clearly Drinks Limited is a drink company and various type of drinks are offer by entity to fulfil requirements of its customers. One of the main focus of entity is to expand its business activities in new areas with help of digital technology. But for this, it is very essential for organisation to have adequate amounts of funds. Various sources that can be use by Clearly Drinks Limited for raise funds are as follows:
- Bank loan: This is one of the most popular source which is use by large number of organisation in order to raise fund. In this firm take loans from bank on fixed rate. This is one of the easy way to get funds. One of the main advantage of this method is that it is simplest and quickest way to arrange funds. Banks provide loans to customers on low rate. Disadvantage related with this method is that firm require to follow a lengthy process and fulfil all the requirements. Further this create a burden of repayment of firm.
- Crowd funding: This is another source which can be use by Clearly Drinks Limited in order to get funds for execute business operations. In this, entity collect funds from large number of local people living in a country (Grover, Bokalo and Greenway, 2014). This tool help in get the attention of large number of people. One of the main advantage of use this method is that it help in collect the opinions of public related with expansion of business activities in new areas. In this raise funds for entity is very easy. Disadvantage of this is that it is very time consuming method and repay amount the public become more complex.
M2 Potential source of funding
Large number of sources are there which can be use by business enterprise to raise funds for carry business operations (Keough, 2015). Major method are given in the following points:
- Crowd funding: Under this funds are raise from public. Drawback of this is that it is very time consuming process and entity cannot change the objective without permission of public.
- Bank loan: In this entity raise funds from banks for expand its activities in new areas. This is one of the easy method of raise funds.
P4 Business plan for growth including strategic objective and financial information
Business plan consists decide the future actions and decision taken by business entity to satisfy the needs of its customers and to generate a large amount of profit (Keough, 2015). Business plan of Clearly Drinks Limited related with expansion of commercial operations in new areas with help of digital technology is as follows:
Company description: Clearly Drinks Limited is a soft drink firm with a specialisation of offer sugar free drinks to its customers.
Mission: Mission of Clearly Drinks Limited is to attain growth and capture a larger market share. Due to this all activities of firm are directed to achieve its mission.
Strategic objective: Make and offer new drink to its customers for retain them with a long time period is one of the main objective of entity. Implementation of technology for attain its set goals is another objective of company.
Products and services: Various type of drinks are offer by Clearly Drinks Limited in order to serve its customers. Sugar free soft drink is one of the innovative product of entity. Firm design unique bottles to make its product more attractive and to increase its sales target.
Internal analysis: This analysis help manager in identify the strengths and weakness of entity which help in take better decision.
Strengths: Effective distribution channels and positive image in market. Competency to implement the technology in an effective manner.
Weakness: Due to large number of players entity face price wars and this decrease the profit of entity.
Target market: Under this entity determine its target market to serve its products. Local people are the main focus of entity to which entity offer drinks as per their needs.
Financial information: This consists information related with financial position of entity. Clearly Drinks Limited has a good financial position in market and due to this entity can raise funds from various sources.
M3 Detailed business plan for secure investment and growth
` Business plan is known as a written document that contain the future actions taken by entity for achieve its set goal. Main benefit of this is that it provide direction to managers and at the same time guide workers so they can perform their job roles in an effective manner. These plans help in utilise all resources and at the time support in expand business activities in new areas.
P5 Succession and exit options for a small business with its benefits and drawbacks
Options of success and exit are use by business enterprises as per their performance in market place. Manager is the one who remain responsible to measure the performance of business and present the same before board of directors. On basis of that top management take decision whether they want to continue the business or want to dissolve the same.
Various ways to exit business:
- Liquidation: If firm bear loss on continuous basis then manager can take the decision to wind up business. One of the main benefit of this strategy is that owner become free form any kind of legal formality. Disadvantage of this is that all assets are sold out in order to pay creditors.
- Sell the business in open market: When owner decide to wind up all activities then the business can be sell in open market at a specific amount. Feature of this is that it help owner in get value of the business. One of the advantage related with this strategy is that the goodwill remain with the firm and due to this it is very easy for attract more customers in new business (Keough, 2015). Disadvantage of this is that purchase of business by its rivals.
Various ways the business can succeed are as follows:
- Delegate work to expertise: Owner of business require to assign roles and responsibilities to employees as per their knowledge and specialisation. All this ensure effective execution of business activities and at the same time offer competitive benefit to company.
- Use of internet: In this entity use internet in order to interact with its customers and to influence them to buy company’s product. one of the main benefit of business succession is that it make the workers feel secure and safe about their employment. But when entity operate in various areas then it increase complexity of business operations.
M4 Exit and succession options for a small business
Exist and succession are various points of a business organisation that rely upon the performance of company. For achieve success, it is very important for entity to perform well. If organisation fail to satisfy the needs of its customers then they have the only option of liquidation. For survive in market for long run, it is very essential for firm to formulate and implement effective strategies.
From the given project report, it can be summarised that planning help business enterprises in attain its set goal and objective in effective manner. Planning help in utilise all available resources and funds to an optimum level and this improve efficiency of business activities. With help of proper planning, Clearly Drinks Limited can implement technology in its business operations in an effective manner and can get all benefits related with it. For examine growth opportunities various factors are there that require to consider by entity. Organisation can take help of Ansoff's growth matrix in order to examine the business opportunities available in market and can utilise the same. Further, various sources are there which can be use by entity for raise funds in order to execute business operations but benefits and drawbacks related with every source require to be examine by manager before choose a final one.
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