The objective of this report is to evaluate growth opportunities and strategies that a firm can implement in their business practices. All these practices will assist in attaining long term sustainability and competitive advantages by considering:
- Evaluate specific key considerations that Clearly Drinks Limited requires to consider when evaluating growth opportunities.
- Identify different ways through which Clearly Drinks Limited can access funding for their business.
- Construct a business plan that assist Clearly Drinks Limited to scaling up their business.
- Determines different methods through which a small business can exit the business.
INTRODUCTION
Planning is identify as an important tool which plays vital role in the development and success of business operations. It support in finding of the useful factors and preparation of an effective policies as per market situation (Brinckmann, Grichnik and Kapsa, 2010). Adoption of these policies or plans contributes in the windup of entire tasks and accomplishment of desired objectives within predetermined period of time. Utilisation of advanced technology in the business operations and activities, it is needed to maximise their sales and revenues in limited time period. There are different advantages gained via planning which run the company functions smoothly towards growth and success. In this assignment, chosen organisation is Clearly Drinks Limited, it is SMEs in United Kingdom which sells and produce a large range of soft drinks brands. They offers bottled spring and flavoured water to the clients. This report divided into different parts including growth opportunities for enterprise due to development of digital or advanced technology. Potential source of funding and its advantages and disadvantage also shown in this study. Application of Ansoff's growth matrix and development of business plan or strategy for the success of company is also determined in this projects. Along with this succession and exit options for small business is also determined in this project.
TASK 1
P1 Analysis of key consideration for growth opportunities in organisation context
Clearly Drinks Limited is a SMEs which deals in different variety of soft drinks in the market of UK. Main motive of such organisation is to enlarge their business operations and activities through digitalisation and innovation. In this company develop their new drinks in marketplace as per the preferences and needs of clients. In support in capturing large amount of market share and gain competitive advantages in limited time period. This will also support to attract different number of clients and maximising their profitability towards drinks. Maximised profitability render more capitals that serve opportunities of planning for the development and success of company (Bryson, 2011 ). With the assist of planning company can achieved their long term objectives easily. Therefore, planning renders chances about preparation of effective procedures and policies which direct workforce towards the windup of entire tasks easily. Thus, implementation and development of digitalisation has more effects in the progress of SMEs as it gives opportunities of new product development in accordance the needs and wants of clients and utilisation of innovative strategy of marketing which help them to expand their business. In the Clearly Drink Limited, there are different opportunities of growth are existing due to formulation of advanced technology, these are explained as below:
Competitive Advantage:
Administration of business plans regarding implementation and development of advanced technology and innovation on the effectiveness of business functions. Adoption of new technology support the company to maximise their turnover and sales within predetermined period (Burns, 2010). In this production department has better chance in order to enhance the quality of drinks and add new flavours in this which attract various customers for it. On the other hand, marketing department also have various opportunity to follow effective marketing techniques including internet and other sites of social media. Similarly, many other departments including Human resources, operations and entire workforce also achieve the advantages of technology.
New service and products:
Implementation and development of advanced technology assist in enhancing the communication among workers and to create an effective connection with their target and potential audience. This support in knowing the market trends which exist in beverages industry and individual taste of nation about drink selection. It supports in the determination of flavour and tastes which is in need and creation of innovative drinks as per clients preferences (Burton, 2010). Development on innovation between workers supports in the improvement of their knowledge and plans which determine unique ways to serve their quality products and establish new services. It is identify as an innovative platform for the company to sell out their products, in this they offer online ordering facility via their own or official websites. It is important in the expansion and development of company internationally through online platform.
Collaboration:
There are various opportunities of growth and development for the company in the way of joint venture, merger, strategic alliance, acquisition and many other. All these support in merging with another organisation which assist them to maximise their revenues and turnover.
P2 Evaluate the opportunities for growth apply Ansoff's growth vector matrix
Digitalisation is more important and essential part for the development and success of company in limited time period. It also help them to maximise their sales and profitability within predetermined time period. Ansoff's growth matrix is identify as an effective and important method which support the company to expand their business operations and activities easily. In this they have various chances of implementation of beverages, market, diversification in its drinks (Chapin, 2012). Such tools has four parts including market penetration, market development, diversification and product development. All these are beneficial in the entire growth and development of enterprise activities and functions in various places (Ansoff Matrix – The growth share Matrix of Ansoff, 2017). All these points are determined as below:
(Source: Growth share of Ansoff, 2017)
Market penetration:
It is important and essential part for the growth opportunities which help the company to expand their operations at international level. In this fir sell their present products in available marketplace. Main focus of this strategy is to maximise market share and enhance customer value by adoption of useful market stargate (Chen and et. al., 2014). Clearly Drinks Limited follow market penetration in order to sell out their existing drinks in the existing market and to the available clients. In this they apply different promotional techniques including advertisement, sales promotion of drinks in order to enlarge their business operations and gain competitive advantages easily.
Product development:
It is another strategy which support in enlargement of business operations and functions in creation of their existing goods. It can be accomplished by enterprise with supports in better planning and utilisation of new technology in their manufacturing activity and maintenance of strong connection with their clients in order to keep trueness towards their brand. Clearly Drinks Limited administration play essential role in order to interpret the taste and performance of audience and develop their innovative drinks products which appropriate to their pocket and demand.
Market development:
It is another important strategy which consist regarding the determination of new marketplace. Here large number of chances for company to develop their business operations and activities at internationally. Thus, it support in capturing maximum number of market share and gain competitive edge easily (Deakin, 2013). In this Clearly Drinks Limited find out the chances of growth for the creation of new place where they are come up with new idea and give their drinks to the customers. Adoption of online and advanced technology assist in incoming into new market segments which has broad range to attract different peoples of various regions. In order to expanding business in new market administration require to emphasis on different points which are shown as below:
Establishment of innovative channels of distribution. It consists regarding appointing provider which renders their drinks products to the end use in effective manner.
Adoption of accurate policies of pricing and give discount to customers or students.
Classified marketplace into demographic and geographic segment. It will support in determination of the needs and taste of clients of these marketplace and satisfy its various demands.
Diversification:
It is one of the main and essential strategy which support in developing the business operations and activities with motive to achieve competitive edge (Duany and et. al., 2011). Clearly Drinks Limited apply these strategy in order to classified their drinks with various flavours which support to fulfil basis needs and demands of the customers. It is important for them to maximise their growth and success in marketplace. Thus it is beneficial and important for the company to increase their sales and revenues as well as maximise productivity ratio.
TASK 2
P3 Assess the potential sources of funding available to businesses and give benefit
Clearly Drinks Limited is a small business which renders different types of drink products to the customers. Main motive of the enterprise is to enlarge their business operations and activities internationally and maximise their effectiveness. This can be accomplished by the organisation only if advanced technology is applied in marketing, production, operational promotion and many other activities. In this business needed sufficient amount of the capital in order to do their all functions and activities in an effective and efficient manner. In the marketplace, there are different source of the funding are available including peer to peer landing, crowd funding, bank loan, venture finance etc. All these sources has own advantages and disadvantage in the funding activity (Durand and et. al., 2011). Thus, it is the role of manager is to select best and useful resources for its activities and operations. Large number of funding sources and its advantages and disadvantage are determined as below:
Bank loan:
It is identify as an effective and useful approach of sourcing the funding needs of business. This method consists regarding taking the bank loan at appropriate and fixed rate. It is the simple and beneficial aspects of arranging accurate amount of capital for the operations and function of company. In this government play vital role by giving different advantages to the small business including subsidy, interest free loan and many other.
Advantages
- Bank loan is the most easier and simple sources of finance which is essential for the business operations and activities.
- Different benefits and advantages are given by the bank on taking the long or short team loan by enterprise from enlargement of their business activities and operations (Eddleston and et. al., 2013).
- Interest rate of the loans are not high as compared to other funding resources.
- Bank loan is a secure approach which renders guarantee of interest rate of loan and no variance in between providence.
- Bank loan needed to apply strict rules and have security interest their properties.
- There re maximum worry of repayment amount on real time period otherwise their security interest or mortgaged property is disposed.
- This process is not easy for the business to apply such restriction or regulation and if they lost have to face legal actions as well as penalties also.
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