Evaluation of Growth for Business Planning- Colourgen

INTRODUCTION

Planning means to come with various approaches which are effective for growth of company and this is effective to make changes in business operations. Through planning it is possible to plan activities in approaches in significant way. There are possibilities that while planning company there must be planning related to various resources which help them to come with activities which are significant for growth of business (Barbour and Deakin, 2012). Business has main objectives of performing activities which are significant for their growth and development. Main and primary objective of business is to earn profits. There must be use of policies which are effective for making changes in roles and responsibilities of workers. While altering policies association has to deliver changes according to business related factor. These days there is huge roles of increasing business and this helps to increase profits.

There must be services through which customer gets satisfied and this helps to increase outlet in various parts of company. There must be use of motivation to workers through which changes are significant in business. This report is based on Colourgen which is small company works to provide digital printing solution. This company was situated in Maidenhead, Berks city of England. In this report there is discussion about key components which help in growth of business, Ansoff's matrix, methods through which funds can be generated for business growth, business plan, ways through which succession option for small business.

TASK 1

P1 Key concept which provides options of business growth

Business growth is one of the important component of business which is effective with joint efforts of managers and its employees. There are possibilities that person do not like to work under category which are signifiant for business. Business growth means to increase level of working, which results in achieving targets with proper planning. As Colourgen is providing services for better printing solution, so expansion is possible when they try to come with some new concept (Brinckmann, Grichnik and Kapsa, 2010). There are various factors which affects business growth plan such as competitive analysis, innovation, collaboration, etc. concept which has to consider by managers of Colourgen are discussed as under-

COMPETITIVE ADVANTAGES

There is use of various resources which are required to perform business activities which helps to achieve targets. Colourgen has various aspects which are effective for making changes in working style. As they provide best printing solution, they have services which are their USP and this provides core competence for enterprise. Resources which are selected from external environment such as technology, labour, etc. must be used in optimal manner.

Porter five force model- This model is propounded by Professor Michael Porter in 1979, to know about competitors and scope of growth. Factors of this model are discussed as under-

Competitive Rivalry- In this there is consideration of strong points of Colourgen, which helps to provide them edge over competitors. These points must be polished so expansion of business is possible (Burton, 2010).

Supplier power- There is need of some suppliers which help to perform business operations smoothly. This helps to get product which are competent to market.

Buyer power- As there is use of printer in roles and responsibilities. This is effective for making changes in business operations. This is effective for increasing sales.

Threat of substitution- As printer has less substitute, so there must be use of factors which are significant for expanding business. Expansion of business is effective through this factor.

Threat of new entry- As printer is in use at small as well as large scale, so there are threats of competitors. This affects business growth ideas.

PESTLE analysis- PESTLE analysis of Colourgen is discussed as under-

Political- There is use of policies which is significant for growth f business and then this helps to make changes in roles and responsibilities of company. There is involvement of government while expansion of business.

Economical- Managers of Colourgen need finance to expand business, in this case there is use of source which is cheap and readily available, so this helps for smooth running of business.

Social- Colourgen must consider demand of customers as this helps to grow business effectively. This helps to know what can be done through which changes are efficient.

Technological- In case of best printing solutions, there is need of good quality printer. Hence there must be impact of change in technology too (Chapin, 2012).

Legal- Business has some norms under which company has to work, so this is effective for making business activities in ethical manner.

Environmental- Environmental factors does not affect much to expansion of Colourgen, but there is need of approaches through which negative impact of climatic changes gets reduced.

NEW PRODUCT AND SERVICE -

As in society changes are taking place so frequently, so t s essential to work according to need and segment of company. There is use of possibilities which s effective for change in business goals and responsibilities. To understand new product and services, there are some points-

Boston consultancy group matrix- There is use of this technique to know about factors which is effective for making policies through which growth prospect can be judged. This matrix shows relationship between market share and growth rate. In this matrix there are four major boxes-

Dogs- In this category there is low market share and growth rate so there will less consumption of cash (Christofakis and Papadaskalopoulos, 2011).

Question mark- Question mark is the stage where growth is more and market share is low so there is more consumption of cash.

Stars- There is huge generation of cash, this is effective for making rapid growth of business.

Cash cows- This is last block in matrix which talks about return which is more than market growth. Hence there are more profits as compared to inputs.

GE matrix- This matrix is known as General Electric Matrix, this was developed by consultancy firm, McKinsey & Company. This helps to identify profits of various business to attract market and provide strength rto business. This is 3*3 matrix which has four outcomes i.e. Invest, Protect, Harvest, Divest. This outcomes tells about use or to withdraw funds.

Product life cycle- This is one of the best technique which is frequent for development iof business and when changes are required in business. There are four major stages in Product life Cycle are- Introduction, Growth, Maturity, Decline. Through this technique there is emphasise on improvement of quality of product which is significant for business expansion.

Diffusion of innovation- This is the theory which is oldest in management science. This theory was developed by E. M. Rogers in 1962, this tells about use of techniques which provides knowledge about adoption of ideas. There are mainly five types of adopters. They are- Innovators, Early adopters, Early Majority, Late majority and laggards (Eddleston and et. al., 2013).

COLLABORATION

While managers of Colourgen wants to expand business, then thee is need of some mode through which this can be possible. There is use of techniques which is effective for approaching company and this helps to make policies which is significant for company. There are various sources of expansion of business. Some of them are-

Modes

Benefits

Drawbacks

Mergers

There is advantage of getting brand name of other company, which helps to create good image in industry.

Sometimes there are possibilities of conflicts among parties related to distribution of assets.

Acquisitions

In this one company having weak financial status acquires by others and hence position gets improved.

In this supremacy is possible which affects business operations. One company's name get disrupted and it lost its brand value.

Joint ventures

In this there is shaking hands with association which deals in similar field and hence experience increases.

This is kind of partnership, so there are possibilities of conflict among people.

Strategic alliances

This is good as there are two or more people which are working in partnership but have individual existence too.

There is difference in objectives of parties and hence this there are possibilities of difference in ideas also.

Benefits of horizontal and vertical integration

Types

Definition

Benefits

Vertical integration

In this type of integration, there is control of managers of Colourgen on performing business operations effectively. In this there is control on operations from production to distribution of printers.

In this there is smooth running of actions. Proper after sales services to customer. There is less competition as there is entry and exist barriers.

Horizontal integration

In this type of integration there is combination of activities which are at same level. There is taking care of activities which are running at same level.

Through horizontal integration economies of scale cane achieved. This is effective for expanding business . Department of Colourgen will be intelligent in single particular areas.

P2 Ansoff's Growth Vector matrix

Colourgen association can work as per change in business roles and responsibilities. There are possibilities that due to use of polices association has to alter policies which is effective in achieving their business goals and objectives (Grover, Bokalo and Greenway, 2014). While expanding business, there is need of planning which help to assist change in business operations. There are possibilities that competitive association can grab opportunity and it helps to make changes in roles and responsibilities. Planning is performed by top level management of Colour gen which helps to know what can be done through which alterations in business operations are possible. Ansoff's Growth Vector matrix is the best technique through which mangers of Colourgen can know about scope of expansion ad this helps to make changes in business policies. This matrix was developed by H. Ignor Ansoff in 1957. this matrix is also known as market expansion grid. There are four components in Ansoff's Growth Vector matrix. They are discussed as under-

Illustration 1: Ansoff's Growth Vector matrix

(Source: Ansoff's Growth Vector matrix, 2017)

Market penetration- This is the first block of matrix which deals with similar product but target consumer get changed. There is need of policies which are significant for growth of business. In this market growth is done by managers (Hough and et. al., 2010). Market penetration is best technique to develop business operations and attain set targets.

Product development- This is the second block in matrix, which talks about use of technique through which product's feature gets renovated and this helps to work under competent market. Product development is possible as with the use of techniques which are significant for business and this helps to achieve business objectives.

Market development- There is use of techniques through which company can work as per requirement of market,. When some new printer is launched in market, then it must be market so there will use of technique through which it can be communicated to society. This is effective when targeted consumer are new and it affects business objectives of association.

Product diversification- This is the last block in matrix which says that new product is launched in from of new customers. There is need of some reason behind which customer is reader to buy printer (Keough, 2015).

Identification and mitigation of risk

There is some path and gate way through which company can work according to need of market. This is effective to make changes in roles and responsibilities. There is use of techniques which helps to know what can be done through which changes are essential and this helps to alter business policies. In expansion of business there is much risk which affects business objectives. Managers must give their ideas through which are significant for performing objectives. There is use of some techniques which are effective for making alteration inn business goals and objectives. In printer techniques are changing very frequently through which there is need of policies which are effective for growth of business. Expansion can be possible when there is support from customer, so there is risk of adopting latest techniques.

Technology and digital platforms to expand business

As per Li, Mobin and Keyser, 2016best way through which goals can be achieved has to be selected. There is requirement of time as well as cost so it is essential to work according to set budget, this can be with proper planning. Managers of Colourgen must properly analyse market through use of PESTLE analysis and business activities must plan properly. There is requirement of various technologies which are effective for growth of business. Vest technique through which changes are significant and this is important to work as per change in roles and responsibilities. Techniques which helps to achieve targets of expansion of business and which is cost effective must be considered. As technology become obsolete it must be changed otherwise customer will switch to competitor.

TASK 2

P3 Potential sources of funding with their benefits and disadvantages

There are various sources through which company can raise funds. There are possibilities that selected source may not available to managers of Colourgen, so in this case there must be keep in option various sources. This is effective for making changes in roles and responsibilities. There is requirement of various approaches through which company which is significant for business growth. Crowd funding is effective for collecting funds and this helps to work according to set targets (MacLeod, 2013). There are some benefits as well as weakness points of every source, so there is need of proper analysis.

INVESTMENT DECISION

Pay back period-It is time period required to recover the initial cost of an investment or a project undertaken on basis of which a firm determines whether to accept or reject a particular project.

According to this method if the project is expected to quickly recover the initial cost or the payback period is shorter than or equals to maximum desired payback period that is estimated by management, then the project is given a green signal for further execution otherwise it is rejected (Mitchelmore and Rowley, 2013).

Net present value-Also known as discounted cash flow method it is technique of capital budgeting that take into consideration the time value of money and refers net present value as a base for accepting or rejecting a proposed project. Net present value is difference between present value of cash inflow and present value of cash outflow that emerges as resultant of undertaking a project.

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SOURCE OF FINANCE

It refers to different methods by which a company obtains funds for carrying out various activities and business operation. They are classified into two types internal and external sources of funds.

Internal sources : These are the funds that is available inside the business. For instance retained earnings, profits kept back for finance diversification etc.

External sources: External sources are those funds that is raised by a firm from outside its business from the sources like from banks, creditors etc. (Moseley, 2013)

Mentioned below are the sources of funds adopted by Colour Gen for is business investment:

Sources

Definition

Advantages

Disadvantages

Bank Loans

It is most common method of raising funds under which bank lends a sum of money for a set period of time. It has short(2-3 years), medium(3-5 years) and long term(5 + years) durations on which bank charges fixed rate of interest

Out of many advantages most prominent on is that the interest paid on bank loan is tax deductible.

In case company fails to pay there interest on the loan taken, it may result in seizing of business assets by the bank to make the recovery .

Crowd funding

It is method of raising small amount of money from crowd or large group of people through the medium of internet.

It is the fast way to raise funds that also benefits borrower to tap feedback an d guidance of experts to improve their business ideas.

In case the borrower has not patent or copyright its business ideas , the concept might get steal by anyone else.

Peer to peer lending

It is the process of borrowing and lending money between people who are interested in investing their money with individuals who requires funds through. It is lending between individual to individual through medium of internet

It gives a no of benefits like choice to select person to whom you want to lend money, interest earned is included in ' personal Savings Allowances' etc.

It is subject to a risks like money lend through P2P is not covered under Financial Services Compensation Schemes and its interest is also not taxable.

Angle and venture finance

They are private investors who works with SME's that requires limited funds to be invested in their business.

It is cheaper form of raising capital and does not requires monthly payment on capital

Most critical disadvantage is that borrower loses complete control as a part owner as angel investor receive portions of its profits and also has right to interfere in matters related to business.

TASK 3

P4 Business plan for growth of business

Business plan is the technique which is use by manager of Colourgen to know what can be done to achieve targets and how it can be performed. There are possibilities that there is confusing related to activities of business, then business plan is effective for growth. This is effective tool for expansion of Colourgen (Pallagst, 2010).

Business plan prepared by managers of Colourgen is discussed as under-

Company Description

Colourgen is a small scale company which deals with providing best printing solutions. This is effective for growth of digital graphic sector. This association was established in 19685. they manufactures latest technology printers. They have partnership with Kala, Epson, Caldera.

Mission: Mission of Colourgen is to provide best satisfaction to customers. They come with innovation and inspiration which aims at increasing profits.

Strategic objectives: He main objective of Colougen is working to perform business objectives, so they aim to increase their profits from 20% to 50% in next two years. This can be achieved with the helps of SMART objectives. This means above discussed objective is specific, measurable, achievable, realistic and time bound. This helps to get chance to work as per requirement of society and targets can be achieved on time.

Products and services

They are providing services associated with printing. They have variety of printers which are of latest technology. Inkjet printer, laminator, applicator. Cutters, heat presses, etc. are some product which gets use chances to satisfy demand of customer (Todes, 2012).

Internal analysis

Internal analysis of resources is important because it helps to know about weak as well as strong points of Colourgen. There are possibilities this occurs due to not working according to market. There is much competition in digital equipment s this affect business goals and objectives.

Strengths

  • They have collaboration with various famous brands this help[s to maintain loyalty of customers.
  • As scope of digital marketing is effective, then this is effective for growth of business. They use technology which provides edge over competitors.

Opportunities

  • This association deals in narrow market of England, so they must expand their business operations.
  • They must expand their business in other sector also.

Target market

Target market of Colourgen are schools, college, advertisement agency, entertainment sources, etc. they are sources which use printers frequently. There are many changes which are frequent to market (Valler, Phelps and Wood, 2012). At small level target customers are computer shops, cyber cafes, household purposes, etc.

Financial information

There is need of finance which helps to perform business objectives in effective and efficient way. There are various sources to raise funds, so it is important to select component which is most suitable for business purposes. Managers of Colourgen use bank loans, per members, crowd funding, etc. which are significant for growth of business. There is requirement of analysis before selecting source. This provides knowledge about competitor's policies too. Financial status of company must be strong, so this helps to get funds from different sources. While selecting funds from external sources there is use of techniques which are competent to targets and it must b e used optimally.

TASK 4

P5 Succession and exit plan for small business with its advantages and disadvantages

Expansion of business does not means there will positive results only. There are possibilities of negative results too. This negative results may lead to closure of business. There is us e of techniques through which company can work and get change to improve image. There must be use of techniques through which growth of business is possible. There are many changes which are taking place in business environment managers of Colourgen must consider it and plan business operations in effective way. There are some targets which is fixed by managers of Colourgen so it is effective for making strategies as per requirement. There is use of policies which is effective for business objectives (Wu, 2015). Target must be settled with specific time period and results must be judged accordingly. In case company faces financial losses then this affects business actions in significant way. Marketing is done to create awareness about product. There are possibilities of positive results out of it. Get Cheap assignment Help by Australian Experts at an affordable price.

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Various ways to exit business

There are possibilities that company do not able to cover cost. Then in this case it is through to preform business operations. In this case exist is the only factor which affects business operations (Ziari and et. al., 2012). There are possibilities of use of technologies which are not up to the mark. At last exit is the option. Following ways can be used with the help of which exit is possible.

Advantages

Disadvantages

Liquidation

Liquidation is a legal process through which all the debts are paid and hence there is no bad image in mind of customers. So there will no adverse effect on sales of other outlets.

There is proper planning which makes business actions as per requirement. There are possibilities of funding from out source to save business.

There is use of factors which is effective for growth of business. Liquidation is time a well, as cost consuming process.

There is requirement of legal signatures from concern parties which may create conflicts among members.

Sell of business in open market

In this method, image of cpmany do not get disrupted. This helps to make changes in actions of association. There is use of factors which are effective for growth of business.

This helps to get improvement in economy of country. There will rebate in taxes to parties who purchase it.

In this method financial status of company comes in front of external parties. This may cause reduction in value as compared to other companies.

There are possibilities of loosing workers which creates question to running of business.

Ways to provide succession of business

When expansion of Colourgen enterprise is able to earn appropriate profits, then this is effective for growth of business. There is use of technologies which is effective and efficient for achieving targets (Barbour and Deakin, 2012). There are some approaches which can be used by managers of Colourgen which help to provide assistance in growth of business. These are discussed as under-

Advantages

Disadvantages

Use of expertise knowledge

Through this updated and expertise knowledge can be used to business. This helps to work as per change business environment. Manager has relevant and current knowledge.

Customer gets services which are current and trendy in market.

There is cost associated with this method. Manager may gat dependent to expertise and they use information accordingly. This may sometimes proofs wrong for association.

Internet sources

Internet is fast and serving society at very fast speed. This helps to get solution of problem within seconds. This can be use within hands and as per need.

Disadvantage of this method is that every person is not able to deal with it as they don not have knowledge about it.

CONCLUSION

For Mor Visit: Corporate Social Responsibility and functions-Vodafone

From the above discussed points, it is clear that to make good image inn market, there must be use of policies which are effective and essential for improving actions. There are possibilities that due to change in roles and responsibilities, employees are not ready to work under changed environment. There must be use of policies which are significant for growth of business and hence this helps to know what can be done trough which company can know expand their business. There are possibilities that working in company does not know what has to done which helps to make strategies as per change in business environment. With business plans activities are performed in proper way and workers are aware of their roles and responsibilities. Ansoff's matrix is effective for analysing changes and this helps to know what can be done through which business growth become easy and helpful for running business.

REFERENCES

  • Barbour, E. and Deakin, E.A., 2012. Smart growth planning for climate protection: Evaluating California's Senate Bill 375.Journal of the American Planning Association. 78(1). pp.70-86.
  • Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms.Journal of Business Venturing. 25(1). pp.24-40.
  • Burton, P., 2010. Growing pains: The challenges of planning for growth in South East Queensland.Australian Planner. 47(3). pp.118-125.
  • Chapin, T.S., 2012. Introduction: from growth controls, to comprehensive planning, to smart growth: planning's emerging fourth wave.Journal of the American Planning Association. 78(1). pp.5-15.
  • Christofakis, M. and Papadaskalopoulos, A., 2011. The Growth Poles Strategy in regional planning: The recent experience of Greece.Theoretical and Empirical Researches in Urban Management. 6(2). pp.5-20.
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