Proper planning and management is very important for any organization to work properly, whether it is a small or big business. Planning is a tool which is used to formulate detailed planning and strategies to achieve the targeted aim or objective for business. It can help the organization to grow in their targeted market. It is essential for company to do a lot of planning and research work before applying any new ideas in management system for expanding their business. These processes help them to achieve their targets and objectives of the enterprise. Proper planning will help them to manage the risk factor and uncertainty in the business. It will also ensure to build a strong team in the firm and create a competitive environment for them. This report will focus on different factors that are needed to be considered by SMEs when evaluating their growth opportunities in the market. It will also discuss about the various methods of funding available to them as well as their benefits and drawbacks along with developing a business plan which can help the organization to increase its sales and services in target industry.
P1. Key considerations for evaluating growth opportunities for the organization
It is very important for company to identify whether their business idea is feasible or not. In order to examine viability of enterprise, it is essential for them to consider various elements which can support them in identifying opportunities of growth in industry. Crocus Limited is a private company. It operates business online. It is a nursery shop which provides variety of flowers, plants, gardening tools and stuff related to nursery like pots, soil, etc. It is located in Windlesham, Surrey in the United Kingdom. It is a small business having approx. 80 employees working with them. Now, company is planning to expand business and wants to introduce an offline retail shop for their customers (Emodi and et.al., 2017). For this, they have to ensure that it can work better in new location and make sure that it has numerous growth options in target market. Key consideration for analyzing growth opportunities in the firm can be done by various methods such as PESTLE analysis which can help to evaluate impact of different elements i.e. political, economic, social, technological, legal and environmental and by Porter's Five Force model they can be use it for studying the power of suppliers and their customers with analyzing competition in the business.
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PESTLE Analysis of Crocus Limited
PESTLE analysis helps company to understand various factors which can affect them while opening a new offline store in the market. These factors have a huge impact on organizational structure and its behavior. These factors are explained as below:
|Political Factor||Economic Factor|
|Social Factor||Technological Factor|
|Legal Factor||Environmental Factor|
Porter's Five Forces Model of Crocus Limited
Porter’s five forces model helps in identifying the influence of macro elements present the company and understanding the extent to which it is being affected by these components.
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