Growth is a significant part of decision-making of management as it assists SMEs to achieve long term sustainability into market and compete with its rivals in more effective manner. This unit aims to develop ways for SME to achieve growth and success. You are required to prepare a report for chosen organisation by including the following:
- Evaluate the key aspects SMEs must consider while examining growth opportunities.
- Demonstrate the methods through which SME can easily access funds and how it can be utilized to get maximum return.
- Construct a business plan and how it supports SME in growing a business.
- Examine exit or succession options for SME to explain benefits and drawbacks of each method.
In order to make business growth, it can be stated that planning is an important element that assists to make desired results at workplace. Furthermore, it is known as a key to success for existence of any enterprise that helps to meet with current performances and growth. There are several resources included in business to make its high growth. For instance, allocate resources, business objectives, regular business planning, etc. Plan must be consider aims, objectives, operational information, etc. (Esmaeeli, Kazemi and Haghifam, 2015).
In this context, present report is based on Oak Cash & Carry, which is a small sector business of grocery whole sellers. It is retail Sector Company that considers cash and carry services with different range of products and services.
For gaining insight information of the present report, it covers key considerations to evaluate growth opportunities. Furthermore, Ansoff matrix also involved to focus on opportunities available in the market. Business plan discusses for growth with company's financial information and strategic benefits. At last, exit and succession option with benefits and drawbacks.
P1 Key consideration for evaluating growth opportunities
In order to increase profitability and revenue, Oak Cash & Carry have several options to make a real plan. Growing small businesses create more opportunities to build core business. It also assists to make plan for small business growth.
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Following are certain key consideration that helps to evaluate growth opportunities:
- Market segmentation: Market segmentation is the most important consideration that creates sub set of the entire marketplace. In this regard, sales efforts could be organised for all people around the world (DeMartino, Sriramachandramurthy and Angelis, 2015). Most of the big businesses are very good in market. As a result, Oak Cash & Carry must carry their effective market segmentation that helps to focus on increase customer base. As per retail products and services the chosen business need to gain successive results to clear path to growth.
- Leveraging partnership: Small business owners consider their operations and functions to maintain relationship with other people. They determine production and distribution system with partner to increase profitability and revenue to manage more functions and operations. Mainstream production and distribution without paying huge cost, plan must be included to negotiate for partnership as per pay sale (Haaland and van den Bosch, 2015).
- Acquisitions: Primary way to grow business is acquisition so that it helps to suggest more effective results with massive profitability and key moves. On the basis of specific list of characteristics assists to improve more successful business results in creative manner. An acquisition is important element that helps Oak Cash & Carry their successful growth opportunities in business. Small business needs to make their operations and functions with large enterprise as acquisitions so that they are able to communicate several benefits easily. Furthermore, it is essential consideration for improve desired results in enterprise. On the basis of major purchase, profitability also develops to key moves and growth (Esmaeeli, Kazemi and Haghifam, 2015).
- Become famous leader in industry: Another consideration for growth and opportunity in small business is that they need to become leader in industry. This is because big business name as leading other enterprise in same industry. Therefore, Oak Cash & Carry must carry their functions and operations with large distribution system. Distribution channels are also produced more successful advantages at workplace with reliable network (DeMartino, Sriramachandramurthy and Angelis, 2015). As results, become leader of the industry assists to make more effective growth at workplace.
- Going digital: In Oak Cash & Carry, it is important to make their operations and functions digitally. Therefore, they are able to communicate successful results with the greatest growth. In recent years, potential growth produces opportunities with services for infrastructure, information and digital outcomes. In the world, several things are changing increasingly as fast pace (MacLachlan, Biggs and Boruff, 2017). Technology and societal needs create series of challenges and opportunities that prepared to take several advantages.
- Implement right strategy for business: In order to gain growth opportunities, it is important for Oak Cash & Carry to focus on right tools and techniques. On the basis of effective information, they must consider Facebook, Twitter, Instagram, etc to consider right strategy for business. Hence, chosen business will easily attain growth opportunities at workplace (Hess and Sorensen, 2015).