Analysis of Key Considerations for Evaluating Growth Opportunities - Oak

TASK 1

P1 Analyse key consideration for evaluating growth opportunities

In a economy, each and every organisations is established with a specific strategy to getting desired growth and success in effective manner. For a small scale organisation, it is hard to create their own image and goodwill in competitive market easily. Therefore, management of Oak cash and carry needs to create impact plan and strategy that assist in getting desirable growth easily. It is not an easy procedure because it require creation of proper framework that consider planning, creating, monitoring, controlling and implementing to managing all business approaches easily (Brinckmann and Grichnik, 2010). The main aim of organisation is to provide new product in existing market. Through this, Oak cash and carry can easily grab several opportunities from target market. There are several key consideration for evaluating growth possibility are determine below as -

Competitive advantages

For a small scale organisation, it is hard to get higher competitive advantages from target market in which number of competitions are already exists. Oak cash and carry is a small scale firm which is wants to boost their organisational activities in order to getting higher growth and success easily. For this, management of firm needs to make impactful strategy to accomplish their objectives on the basis of organisational requirement and need. To attain higher growth, Oak cash and carry needs to implement such competitive strategy in their business procedure as -

Porters generic strategies:

Oak cash and carry is a small scale business firm and for them it is hard to get maximum opportunities from target market easily. For this, firm needs to create a strategic plan that assist to manage business approaches for desired growth. Porter's generic model aid to make impactful strategy for firm to getting higher opportunities easily as -

• Cost leadership:According to this process, management of a business firm needs to analyse customer's requirement and capacity to pay for it (Burton, 2010)). They are are required to charge least price for their products to attain competitive advantage. Through this they needs to make positive changes in their business approaches to getting competitive advantages. Cost leadership is a specific tool that helps a small scale organisation as oak cash and carry to capture customer's eyes toward their products and its cost in order to getting maximum opportunities.
• Differentiation leadership: For a small scale organisation, it is required to create unique image of their firm in competitive market. Hence, they can choose a most specific method by differentiate their services from others by implementing strategic ideas in their products as well as services.
• Cost focus: For Oak cash and carry, it is required to target a niche market by offering degraded cost services with impactful strategies. This is a most specific approach that uses to create a positive and competitive image in target market.
• Differentiation focus: According to this strategy, management of Oak cash and carry needs to analyse target market in order to represent their unique feature services easily. Main objective of this process is to create a different image in competitive market for getting higher advantages easily (Chapin, 2012).

One of the best which helps the organisation to attain competitive advantage and grab the trust of customers is cost leadership. Providence of quality products at low price helps to cater their needs and requirements.

PESTEL Analysis:

• Political: These factors are all based on governmental policies and approaches. For Oak cash and carry, it is required to analyse effectiveness and influence of these factors in order to manage their business approaches easily (Christofakis and Papadaskalopoulos, 2011). For a small scale organisation, it is required to implement all rules and policy in their business firm to create a positive position in a target economy.
• Economic: This is a most specific factors that influence in business development and growth procedure. For Oak cash and carry, it is required to maximise opportunity for economy development in order to getting higher competitive advantages in target country.
• Social: Oak cash and carry is small scale wholesaler that provide several products to their customer's at a specific place. For them it is required to identify customer's desire and need to cater quality services to them easily. Through this they can create their own image in target market positively.
• Technology: Now a days, technological factors has vast impact on individual's life as well on business procedure. These activities assist in maximise productivity and others production approaches in effective manner (Eddleston And et. al., 2013). By implementing advance technology in firm, Oak cash and carry can build direct connection with target customers.
• Environmental: In a country, government bodies create strict rules and regulations for different business firms for environmental safety. For this, Oak cash and carry needs to follow them and produce eco-friendly product for environment's healthy and safety. Through this, they can capture customer's attention toward their service and business approaches.
• Legal: For a small scale organisation, it is required to implement all rule and regulation of their market country. These are more beneficial approaches that assist in expanding business in that country easily. So through this, Oak cash and carry can implement legal terms to getting higher competitive advantages easily.

New products and services

Oak cash and carry is small scale organisation that requires to get maximum growth and opportunities from target market. For this, they needs to introduce new products and services in target market in order to create a unique image easily (Grover and Bokalo, 2014). Main objective of this procedure is to identify customer's requirement and need properly in order to cater higher satisfaction to them on the basis of organisational products and services.

Innovation

For a small business organisation, it is required to implement creative ideas and thoughts on the basis of innovation and advancement of technology. This is a key consideration that assist to evaluating growth opportunities easily. These are the most strategic approach that helps to make changes and modification in products as well as services on the basis of customer's demand.

Portfolio strategies – BCG Model

• Star – This element of model is determine high growth products of a business firm that assist to share a positive market position. For Oak cash and carry, it will be a better option that uses to create their own image in target market on the basis of their quality products and services.
• Cash cow – This is a most specific market condition in which product of firm does not a specific growth but organisation share a effective market share (Hough and et. al., 2010). These approaches are based on firm's goodwill and image that assist to share effective market easily. For Oak cash and carry, it can be a strategical condition that assist to build a impactful image.
• Question mark – This is a surviving condition of an organisation in which they get a effective products growth but get a low market share. For this Oak cash carry needs to analyse market condition and trend in order to create their own image positively.
• Dogs – This is a negative term for an organisation in which they has low products growth as well as market share that directly affects on their its profitability and revenue. For this term, firm needs to implement strategic tools and techniques in order to getting maximum growth easily.

Product life cycle:

• Introduction stage – This is a most basic step of product life cycle. In this management of firm introduce their new products and services in target market. At this stage, sales of goods takes a proper time because it is hard to create a effective image in customer's mind for a new product.
• Growth stage – This is the second stage of product life cycle in which products get higher growth by creating their positive image in target market (Tkeough, 2015). Hence, maximum organisations earn higher amount of profit at this stage on the basis of their products and services.
• Maturity stage – This is third stage of product life cycle in which a business firm faces maximum competition from new as well as existing organisations. At this level, position of an organisations seems to be fall down. As its result, firm faces low growth of products, sale and organisation's revenue.
• Decline stage – This is the last stage of product life cycle approach in which sales of organisational products and service are fall down rapidly. At this stage, management of firm needs to create strategic plan for their product development procedure.

P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix

For a small scale business organisation, it is required to create a impactful strategic framework that assist to create a positive image in target market. Therefore Oak cash and carry needs to implement different strategic model in their business firm to getting maximum opportunities and growth. Ansoff matrix is a most impactful strategical tool that uses to getting higher growth by proper planning (Li and Mobin, 2016). These activities provide desirable outcomes to a business firm by different strategic plans and procedure. It can be a most impactful business approach that provide effective direction to a Oak cash and carry as -

• Market penetration – This is a most specific condition in which management of firm uses different strategies in order to represent their existing product positively in existing market. For a small scale organisation as Oak cash carry, it is required to make some modification in their existing products to capture customer's attention easily towards them.
• Market development – This is a strategic procedure in which management of firm create a impactful plan in order to represent their existing products and services in new market. For this, Oak cash and carry needs to create a effective plan to analyse maximum requirement of their products to render their services in exact location or market.
• Product development – For a business organisation, it is required to introduce new products in existing marke on timely basis. Through this, they can easily create a positive image in customer's min for their services (Bokalo, 2014). For Oak cash and carry it will be a beneficial move to attain maximum opportunities from target market.
• Diversification – This is a strategic procedure, in which management of firm needs to make impactful plan in order to analyse customer's requirement and need for specific product. Through this Oak cash and carry can introduce their new products in new market effectively.

Collaborations:

This is a most effective tool for small scale organisation in which they build collaboration with large scale organisation to getting desirable growth easily. This process take a place while a business firm merge in a another organisation with mutual understanding. Main objective of this process is to get maximum profits and advantage with effective collaboration.

• Advantages of merger – Through this, both organisation can easily maximise their resources to getting higher benefits in competitive market (MacLeod, 2013). Combination of two or more organisation provide synergy impact for long term growth and benefits. This is a beneficial approach for both business firm to enhance business structure on higher level easily.
• Disadvantage of merger – This approach basically harm productivity and employees loyalty toward organisation. Through this, employees of both business firm feeling uncomforted to working with others. It can be a major disadvantage of merger procedure in order to getting desirable outcomes easily.

Acquisition

This is a strategic decision in which most stable and higher growth organisations acquire small and medium scale firm by their own understanding. Through this, major organisation acquire their resources, assets and liabilities too in order to manage its positive image in market. This is a most specific approach that helps to maximise business structure of an organisation by acquiring others.

• Advantages of Acquisition – This is a most effective as well as beneficial approach for a business firm in which they can easily minimise level of competition from target market by acquire new rivalries (Mitchelmore and Rowley, 2013). These are the most specific and strategic planning that assist to provide higher growth to a business firm.
• The disadvantage of Acquisition – This process can be risky for those organisation who acquire others because it is hard to acquire liberalities of such business firms. In this procedure, organisation needs to manage their funds in maximum level so that they can hire risk properly from such activities.

Joint venture

This a most common business process that uses to maximise business level by strategic planning. In this process, two or more individuals conduct a legal framework to build a new venture by their own understanding and desire. In this process each party classify risk, profit and liabilities on the basis of their capital amount.

• Advantages of Joint venture – This process basically uses to create a new venture on the basis of individuals mutual understanding. Major advantages of this process is that each and everyone get similar benefits and loss on the basis of their level of capital (Moseley, 2013). It assist to reduce onus of funds and resources from an individual.
• Disadvantage of Joint venture – In some conditions, partners of joint venture faces correspondent behaviour while organisation earn maximum level of profits and growth. These business organisations create conflicts and barriers between individuals in terms of communications and thoughts. 

Strategic alliance

This is a most specific business approach in which two or more organisations mutual collaboration with other organisation in order to accomplish a specific objective. These alliances are basically conducted to getting desirable growth and benefits to accomplish their wants as well as objective easily.

• Advantages of Strategic alliance – These type of procedure are basically conducted to accomplish a specific task or objective after this both organisations and individuals are work for their own (Pallagst, 2010). This process required a most specific plan that determine their future needs and goals to attain them easily.
• Disadvantage of Strategic alliance – Major disadvantage of this procedure is that organisation can not build long term relation with each others while if they getting maximum benefits or not. This process require a high number of funds as well as human capital to get higher business advantages easily.

TASK 2

P3 Sources of funding available for companies with its advantages and disadvantages

For a small scale organisation it is hard to create their own image and goodwill in target market easily. This is a large process that require a proper framework to develop a business firm in target market. Therefore, main element of this procedure are funds, strategies and resources. Finance and funding play a vital role in a business organisation that required to manage in effective and efficient manner. For a small scale organisation, it is hard to manage capital for organisational funding easily. The number of organisational activities and approaches are based on this term, so for this management requires to run for such activities smoothly. Oak cash and carry is small scale organisation that provide wholesale facilities in target market. For them, it is hard to manage large number of funds from different sources easily because some of the financial institutions analyse organisation's source of income to repay their amount at exact time. Hence, these procedure are take a long term of period for processing (Todes, 2012). In this, management of firm needs to manage their internal as well as external sources of funds to getting higher advantages easily. The external sources of funds can be -

Bank loan –

Now a days, government authorities provide facilities to business organisations as well as individual on the basis of their required need. Through this small scale organisation can grab maximum opportunities by getting desired funds for their business development process. Major advantage of this source is that they provide a specific amount of loan on the basis of individuals and organisation's repay capability. The process of bank loan is not so hard that helps each and every one to manage their capital requirement easily. Major disadvantage of this process is that bank provide a proper amount of loan on the basis of past records of individual or business firm. These activities required a clean and standard record in terms of repayment as well as legality. In the repayment method, banks charge a proper amount of interest that requires to pay at a specific time of period.

Crowd Funding –

In this term, organisations and business entities take financials helps from customer's, shareholders, families and friends in order to manage their organisational approaches effectively. In this process organisations pay extra amount to brokers and joint venture. This is not a simple and easy process because amount of funds are very limited and interest rate are very high to pay exact amount easily (Valler and Phelps, 2012). This is a fast and specific process that uses to generate capital for future and long term period. In this procedure, investor should be liable toward organisation to manage their sources for a proper duration. Crowd funding is basically a terms of manage funds and financial approaches in order to provide maximum opportunities through capital and funds facilities.

Read also: Role of Managers and Leaders in the Organization

Venture capitalists –

These type of financial bodies provide equity funds to different business organisation. Main objective of these institutions is to cater maximum facilities for small and large scale firms. They elaborate opportunities for new start-ups to make them scalable in a business economy. Venture capitalists assist to generating desirable growth and profitability for these business organisations.

TASK 3

P4 Business plan for growth of organisation

In a economy, each and every business organisation is established to accomplish their target goals and get maximum growth easily (Wu, 2015). These activities required proper planning and strategies to attain desired objectives. There is business plan of Oak cash and carry is determine below as -

Mission of OAK Cash and Carry: The main mission of organisation is to become leader in grocery industry.

Vision: The vision of cited organisation is to provide quality services at low cost.

Objective of OAK Cash and Carry -  Oak cash and carry is a small grocery wholesaler firm which offers wide range of products in bulk to retailers, offices, families and other local business. Main objective of firm is to provide quality products and services to each customers on the basis of their requirement and need.

Swot Analysis of OAK Cash and Carry

Strength:

• OAK Cash and Carry is known for providing quality and service of product, to the customer.
• Staff with versatile knowledge and experience is their strength due to which they are able to provide customer guidance in choosing the product according to the needs and wants.
• The OAK Cash and Carry providing the product at low prices as compare to their competitor which provide enterprise competitive edge over rival due to this large number of clients get attracted (Ziari And et. al., 2012).

Weakness:

• The company is not rich in the technology which they need to adopt for the long run success of the organisation.
• Concerned organisation is not getting the benefit which they should actually get because of the over dependence on the retailer and customers (Barbour, and Deakin, 2012).
• OAK Cash and Carry company has very poor infrastructure at their business place which make stores overcrowded and create problem for the customer to get the right product.
• They are not involved heavily in the advertising activity due to which the enterprise not able to be in eyes of the customer and retailer.

Opportunities:

• Company is existed in only limited area,they have the scope to enter into untapped market. The market can be of another country or different geographical location.
• They would invest their money in new technology so that business can increase productivity. Technology is the thing which make work easier and efficient. It reduces burden on the employees functioning.
• They should located their stores at the place where the customer or retailer can reach easily (Moseley, 2013). They can also use online marketing method to reach globally which cost very small amount.
• OAK Cash and Carry company can increase their business size from small to medium size enterprise through merger and acquisition. Concerned company can merge with another small enterprise who is doing same trade in which they are involved.

Threats:

• The company is having fear of existing competitive firm that they does not take their share of the market.
• Firms also have the fright from big players of market who have the capacity to enter in any new market. The big players aim is to only expand for which they enter into the trade who have the great possibility of generating revenue.
• OAK Cash and Carry company have the threat of new emerging enterprise as they are providing product at very low rate which was not possible for respective company as they already offering good at very affordable or discount rate.
• Change in the technology is the biggest threat for the company because it not possible for concerned organisation to invest in the technology after some period of time (Pallagst, 2010). If they try to modify the technology than it will charge huge cost to the organisation. Business technology should be alter only in the case when old methods are not helping or become obsolete. Apart from this if cost of technology is able to recover with the revenue of the business after than it should be adopted in the business.

Marketing budget –

While expanding a business it is essential for Oak Cash and Carry that they inform target customers about their firm. So that they can reach purchase products and services of the organisation. In order to do so, they need to prepare a marketing budget that support to carry out marketing activities in an effective way.

As it is shown in above budget that in the first year organization invest for 40000 in advertisements, sales promotion, direct marketing that total costs 20000 and that total available balance was 20000. But in proceeding years it can clearly analysed that available balance is fluctuating with respect to the initial investment as in second year it is 6000, third and fourth year 14000 and 9000 respectively but in fifth year it 18000. Therefore, the organization has varied balance in every year.

TASK 4

P5 Exit and succession option for small business

For a small scale organization as Oak cash and carry, it is required to earn maximum profit and growth on the basis of their resources and manpower. Main objective of this organization is to develop new business activities and approaches that assist to attain desirable objectives and goals. In this procedure performance employees provide their own contribution to attain desired outcome of firm properly (Todes, 2012). There are different elements of business development process are determining below as –

Liquidation –

This is a most specific approach in which management of business is analyse their business requirement and need in order to accomplish them. In this term, owner create a most effective plan for their business firm to get maximum liquidation to recover from tough situations easily. Are you required essay help at an affordable price? Contact US!

• Advantage – This process is easy to adopt that assist in providing maximum facilities to operate business approaches in effective manner (Valler, 2012). In this terms, some organization sale their assets in order to generate funds for future business opportunities.
• Disadvantages – In this process, management and owner needs to measure valuation of their assets in order to sales them easily on exact amount. This is very hard evaluate amount of organizational resources.

Acquisition –

This is succession approach of a business firm in which management and owner make impactful strategy to get success from target market (Phelps, and Wood, 2012). In this process, firm needs to evaluate their assets as well as liabilities in order to manage in other firm.

• Advantages – This process assist to analyse organizations condition and position in target market. Acquisition assist to provide maximum profit to a business firm.
• Disadvantages – This is not too easy to get success from market by analysing resources and capabilities of business.

Joint venture –

Oak Cash and Carry can succeed its business with joint venture. As it is a legal contract between two parties that perform operational through combined resources in order to attain task. This task can be a new project or other activities and both parties are liable for profits and loss in business.

Advantages

• The organisation can have benefits of local partner's knowledge that can help to expand business.
• Both parties reduced costs and risks for business.

Disadvantage

• They both shares difficulties with different cultures of organization.
• Profit is equally shared between both of the parties and one cannot attain entire profit.

CONCLUSION

As per the above report it has been analysed that planning is a most specific method that uses to make effective plan for a business organisation in order to get desirable growth as well as success. Main objective of this procedure is to plan impactful approaches in order to accomplish organisational goals and targets properly. For a small scale firm, planning helps to provide direction to workforce through which quality of working is improved that results in accomplishment of desired expansion objectives. In this process, management of firm needs to make impactful strategy to accomplish their objectives on the basis of organisational requirement and need.

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