Planning for Growth Strategies

TASK 1

Evaluation of key considerations for identifying growth opportunities along with different Frameworks

One of the major objective of every businesses is to achieve higher growth and to earn higher profits within short span of time. Most of the organisation enhanced their business operations by enter into new market or by offering new and innovative products and services in market. Nowadays, technology is changing rapidly and affect on overall business performances and profitability level. So it is important for companies to adopt innovative technologies in order to compete with their rivals and to achieve growth opportunities in an effective manner. An organisation can sustain in market if they offer unique and creative products as well as service in market. In context to KPMG, it is a small enterprise that offers services such as compliance auditing, strategic services, training, product demonstration and many more (Arku, Yeboah and Nyantakyi-Frimpong, 2016). In order to grab growth opportunities, it is important for higher authorities to develop effective strategies that will assist them to remain in market fr longer time period. In order to build effective strategy, the company adopt Porters generic model that involves three strategies that is Cost leadership, differentiation and focus. This strategies is adopted by companies according to their operations and functions. All these strategies are discussed below with relation to KPMG. In addition to this, the managers of KPMG adopted PESTLE analysis in order to know the affect of uncontrollable factors on the performance and productivity of company. These analysis is also explained below in context to KPMG. Want to get Assignment Example talk to our Experts!!!

Porters Generic Strategies

The aim of every company is to gain competitive advantage at marketplace and to compete with their rivals so that they can attain leading position in that particular industry. For this, companies adopted porters generic strategies that help company to be effective and gain competitive at marketplace (Birkin, Clarke, and Clarke, 2017). The Four strategies of Porters is discuss below with relation to KPMG:

Cost Leadership: This strategy assist an organisation to offer its product at services at lower rates in market considering good quality. In context to KPMG, acquisition of cost leadership strategy help company to gain competitive advantage and become cost leaders in market.

Differentiation: This strategy emphasis on offering new and innovative product in market that is totally different from its competitors. By the assistance of this strategy, KPMG can attract large number of audiences due to which their sales and profitability increases in an effective manner.

Cost Focus:herein, companies target niche market and offer their product and services at lower rates in market. In addition to this, companies analyse the requirements of customers and then offer their product accordingly. In context to KPMG, adoption of this strategy help company to increase customer base level that positively affect on sales and profitability of company.

Differentiation Focus: Herein, companies develop unique products that helps them to attract large number of people and raise their sales level. In context to KPMG, acquisition of this strategy help company to build brand image in the market.

After analysing the above strategies, it is suggested that KPMG should acquire Differentiation strategy which help company to gain competitive advantage at marketplace and to increase their sales and profit level in a best manner.

PESTLE Analysis

It is a framework of environment scanning which uses six factors to analysis the impact of external factors on an running organisation. Managers uses this tool for monitoring external environment factors. PESTLE analysis describe political,economical,social technological,and legal factors of the organisation. Success of an company totally depends on how well organisations analysis their environment factors and then make policies and plans which help them to achieve sustainable competitive advantage in company.

Political factors:These factors includes all polices ,rules and regulations implemented by government any country. The factors are used to determined the level at which political factors influences industries profitability level. Prime minister Boris Johnson implement flexible foreign trade and tax policies they apply liberalization policy framework thus all political factors are in favourable condition to KPMG. Political factors gave advantage to the entity because they are free to expend their business in any target market area.

Economical factors: These are those factors which impact on performance level of any organisation. Economic factors include industry life cycle,inflation rate,interest rate,economic growth rate. exchange rate etc. Economical condition in UK adversely effect on profitability rate of KPMG,due to rescission in 2008,and at present inflation rate is also increase from1.5 to 3% the interest rate is high thus company unable to expend their market and their profitability rate is also goes slow down.

Social factors:These factors includes demographical factors. Company use to monitor social factors to identify customers preferences their demands,their perception regarding organisation. Atmosphere of the target market segment of the company (Grant, 2017). KPMG provides consultancy service to their clients,thus it is essential to identify current demand of their customers,regarding service. They have big target market segment. Company makes different strategies to attract their consumers because their customers belongs from different age factors they also belong from different religion. Company also provides consultancy services regarding travelling,auditing,they also have Indians,Russian, American customer in their market segment thus the manager makes those policies which positively impact on their social factors.

Technological factors: these are the factors which helps in taken outsourcing decision of the company. These factors directly impact on performance level of the entity. England is one of the most famous technological advancement country in the world and London is hub of facilitating innovative and advance technologies to their client companies. KPMG take advantages of these opportunities as they use advance technology for providing services to their clients (Gunder and Hillier, 2016).

Environmental factors: These factors includes climate and natural resources of the country. Organisations must be use those materials which are not harmful to environment. KPMG provides only service to their clients they use eco friendly products and techniques to communicate with their clients which are not harmful to the environment.

Legal factors: These factors include laws,and ethical rules and regulation regarding country. KPMG works according to laws of the country and pays taxes and contributes in corporate social responsibility fund to help in welfare programme in England. Take Examples of Assignments Now!

Sources of Funding with their benefits & drawbacks.

One of the most essential key in order to smoothly and effectively run business is Finance. Every organisation require funds to implement business activities in a proper manner which assist in achieving organisation objectives within stipulated time frame. There is a requirement of money in order to conduct any kind of activities such as marketing, operational and technical as well. In context to KPMG, it has analysed that there are both external as well as internal sources through which SMEs can easily acquire or take funds. These sources are mentioned below by which SMEs can raise funds in order to enhance their business operations and activities in a proper manner:

Bank Loan: It is considered as one of the most common source of funding for a company. Bank grant both short term as well as long term loans to the owners of an organisation. In return, they charge interest amount as per their policies from the companies. Along with this, banks take some kind of security from the owners in favour of the loan given to them. SMEs can raise funds via bank loans for implementing activities of the business. SMEs can also repay loan amount along with interest on time in small instalments.

Benefits: One of the benefit of taking loan from banks is security. Banks undergo with security checks as well as data check and then grant loans to an organisation. It is considered as secured form of sources of finance where a company can easily raise capital without any strain of errors and fraud.

Drawbacks: One of the drawback of bank loan is security that is given to the bank by the business owners. If an organisation fails, then banks directly trouble on their potential asset which is a major risk for an owner. Along with this, banks charge higher interest due to which companies is not able to gain higher profits.

Venture Capital: It is a type of private equity that provide funds to start-ups as well as small businesses so that they can implement work properly & sustain for longer time period in market. They render finance to small business at early and in favour they take equity part of these businesses. The benefits & drawbacks of venture capital is mentioned below:

Benefits: By taking finance from venture capital, it enables companies to have funds for their operations at all stages that in turn help businesses to achieve growth rapidly at marketplace.

Drawbacks: one of the disadvantage of adopting this source of funding is, Small businesses loses control on their activities as their equity shares has traded in favour for the money they take from venture capital. It makes an organisation dependent on investors as their shares are transferred to venture capital.

All of the sources of funding can easily help small businesses in attaining desired amount of cash and execute their operational activities in rightful manner. From all of them bank loan is determined as the effective sources of funding by which they can easily fulfil requirement of funds. The main reason behind choosing this is that SMEs can easily approach banks and bring required funds in quicker manner.

Ansoff Growth Matrix

It is a tool which is adopted by an organisation to analyse as well as plan strategies for their growth. This matrix is also termed as market and product expansion grid. It involves four strategies that helps an entity to grow as well as identify the risk which is associated with strategies. Ansoff Matrix was projected by Igor Ansoff who is a good mathematician as well as a business manager. The strategies that is involved in this matrix are product development, market development, market penetration and diversification as well. Moreover, Ansoff matrix helps an entity by providing guidelines that leads to attainment of organisational objectives within time frame. According to KPMG, by making use of Ansoff Matrix SMEs or other businesses can easily develop their knowledge about market conditions and market trends. It also assist company to develop effective strategies and achieve higher growth within short span of time. The strategies are mentioned below with relation to company:

Market Penetration: This strategy suggests businesses are required to offer existing product within the existing market. The motive to adopt this strategy is to enhance sales as well as market share of company. The companies offer product at lower rates so that they can attract large number of audiences and increase their level of sales in an effective manner. For example, If small companies wishes to acquire this strategy then they are required to find new customers within the existing area. For determining more customers in the same market with same offering the company must incorporate advertising campaign and promote their services so that they can attract more people that leads to enhancement of sales and profitability level.

Market Development: This strategy states that businesses should offer their existing product in the new market. Market development strategy involves higher risk as acceptance of existing product is totally depend on the new customers. If they did not accept, it is a failure of product and service in market that directly places impact over the performance and profitability of an organisation. For acquiring this strategy effectively small businesses can enter into other cities of UK with their existing product in order to increase customer base of company. For doing this in more appropriate manner they can use various mediums of communication like advertising, social media so that they can attract people towards the brand. In addition to this, it supports company in increasing its customer base and enhancing sales performance of company in a positive manner.

Product Development: This strategy states company should offer new and innovate product as well as services and offer it in same market. In order to effectively bring out new products and services in market, it is important for business managers to develop effective strategies and plans so that they can attract customers towards their new product and services. If it is talked about SMEs, they can adopt this strategy by developing new services so that they can increase their market presence and market share. Moreover, it also supports company in gaining competitive advantage at marketplace. This will assist company to generate higher profits and raise their market share level.

Diversification: This strategy suggests that organisations must offers new products and services within the new market for attaining success. In order to enter in new market, it is essential for companies to analyse market trends and customer requirements so that new product and service gain success in market and sustain for longer time period. Diversification strategy involves higher risk as companies have no experience and knowledge about new market. It is suggested to SMEs to not acquire this strategy as it might work negatively for them.

By analysing the above strategies, it is determined that the most feasible and useful strategy for SMEs is Market Penetration strategy. This will help small companies in increasing their sales level and gain higher profits.

TASK 2

Business plan

It is a written document which describes all strategies,plans,policies and procedures to achieve organisational goals with optimum utilisation of resources. In other words,business plan is use by manager as roadmap of the organisation which gives ideas,suggestion and provides guanidine to take decision for operational activities.

Executive Summary: Companies plan to enhance their business operations by redesigning their products and services or by adding new products in their offerings. In order to achieve this, it is important to identify preference as well as expectations of customer. Based on this, organisation has plan to offer new product and service in market.

Vision: “To achieve the title of providing best marketing services among rival industries”.

Mission: Providing high quality services to their customers to change their lifestyle.

Situational analysis: It is a process of analysing internal and external factors of an organisation in order to identify opportunities,strength,weakness threats and current position of organisation in market place. KPMG use SWOT technique to identify internal and external environment situations.

SWOT analysis of KPMG:

STP approach: It is a strategic management approach used in modern marketing. STP means segmentation, targeting, positioning. Managers use this model for maintain strong position in global market place.

Segmentation :In thisstage the manager identify market area around which they provides their products and services to their customers. Entity innovate new products after deciding market segmentation. Market segment decided according to the demographical factors of country. KPMG choose their market segment on different basis they provides travailing services to their internation customers ,they provides consultancy services for auditing for only adult customers.

Targeting: In this stage the company decide specific are as an their target market. They make policies and business strategies to attract their target market customers to enhance their buying power. KPMG mainly focused on their adult customers ,they make policies and plans to attract them ,even they introduced new services to impress them (Wey, 2015).

Positioning: This is the last stage of STP model in this stage the organisation decided to make strong position of their product in market place. For this purpose they make various marketing strategies to attract their customers. They make various promotional strategies to built strong brand value of their product and services in the market area. KPMG use advertisement, to promote their customers (Whelpton, Campbell and Patterson, 2015). 

Worried for Online Coursework Help ? Get our experts Help Now!

TASK 3

Assessing exit and succession options for small businesses with their advantages & drawbacks.

Merger and Acquisition: Smallbusiness entities uses merger and acquisition policy for the purpose of winding up their business. Merger is a condition where two entity wind up their business and make a new entity, and acquisition is a strategy where one business entity buys another business entity in order to expand their business and increase their financial capabilities. Benefits of merger and acquisition policy: Following are the benefits of adopting these strategies:

• Due to lack of financial capital small business cannot survive in market,merger and antiquation help to increase financial capital because in this strategy two firms are combined.
• Governments provides various schemes and benefits to those organisation which use these strategies,they get relief in their tax policies.
• It helps in creating economic scale, after merging company produce their products on large scales it reduce their cost price of per unit and help in gain efficiency in their performance level.

Drawbacks of merger and acquisition:

• One of the biggest drawbacks of this strategy is that company becomes bigger and take monopoly in the market place.
• Lack of communication is biggest disadvantage as there will be conflict arise after merging of two entities.

Liquidation: It is a process of winding up of an organisation by selling all their assets. Organisation use this strategy when they suffering from high rescission period in their life cycle. Benefits of choosing liquidation strategy are as follows:

• Organisations debt are realise after liquidation process the managers enjoy no liability after this process.
• The most useful benefit of choosing this strategy is that governments legal actions are closed. There will be no boundation and extra charges pay by company.
• If organisation take lease then their lease period is end and entity is no longer libel to pay lease amount.

Drawbacks:

• Directors of organisation pays creditors liability from their personal savings.
• Goodwill of the company is goes slowdown after this process.

KPMG use merger and acquisition policy for the purpose of winding up their business because the organisation is suffering from financial problem .By adopting this strategy they can easily cover up of financial problems.

CONCLUSION

From the above study, it has been analysed that effective planning is required in order to gain success in market and to achieve higher growth opportunities. Development of effective strategies and plans enables an organisation to build brand image and increase market share of the company. PESTLE analysis assist an entity to determine the affect of external factors on performance and productivity of an organisation. Ansoff matrix is adopted by companies in order to grab growth opportunities. In addition to this, Business plan is developed by company in order to enhance operations that leads to raise in sales and profitability level of an organisation.

Related Sample :- Identifying Entrepreneurial Analysis

UPTO50%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit