Role of Planning In Managing Operational & Functional Activities In Growth of Business

University: UKBC COLLEGE LONDON

  • Unit No: 42
  • Level: Undergraduate/College
  • Pages 16 / Words 4000
  • Paper Type: Assignment
  • Course Code: J/508/0601
  • Downloads: 0
Organization Selected : A to z

INTRODUCTION

In a business organisation, planning play a most important role in order to manage all the operational and functional activities in effective manner. It determine several factors for effective preparation of new strategies to getting business success and growth. All these factors assist to accomplish business targets and goals properly (Barbour and Deakin, 2012). For a small and large business organisation, these planning helps to achieve appropriate growth. This activity determine designing of future objectives, monitoring, controlling and implementation to manage all business activities properly. Through this, they can easily provide higher satisfaction to customers by their quality products as well as services. This project is based on Oak cash and carry Banbury which is a small scale grocery wholesaler. For them it is required to manage their organisational activities with proper planning to getting desirable growth and success easily. This report include key consideration for evaluating growth opportunities, opportunities for growth by applying Ansoff's growth vector matrix and Sources of funding that are available for company. At last, it determine business plan for desirable growth as well as Exit and succession option or strategy for small business growth.

TASK 1

P1 Analyse key consideration for evaluating growth opportunities

For a small scale organisation, its is hard to grab several marketing opportunities in effective manner. In this process, management of firm needs to make effective plans and strategies to analyse options of business advantage. Oak cash and carry is a small scale business organisation, so for them it is require to make proper planning for grabbing different market opportunities easily. There are some factors are determine below for organisational growth and success as -

Competitive advantages – Oak cash and carry is a small business firm. For them, it is required to get higher competitive advantages through impactful strategy and planning procedure. All these activities should have to be based on firm's future targets and goals that are requires to accomplish in proper manner (Brinckmann, Grichni and Kapsa, 2010). There are different organisational strategies are determine for getting higher competitive advantages as -

Porters generic strategies: For a business firm, it is require to analyse their industry values and market position. Through this, they can easily make positive changes in their planning and strategies. Porter's generic model helps to analyse such market activities in appropriate manner as-

  • Cost leadership: This is a most impactful marketing strategy that helps to create a effective position in target market. In this, Oak cash and carry needs to analyse customer's requirement and capacity for specific product. Through this, firm can easily make positive alteration in their products costs to capture customer's attention easily toward their services (Burton, 2010).
  • Differentiation leadership: For a business organisation, it is require to serve different and unique services to their customers to build a specific image in market easily. In this process, employee of firm need to provide quality products to customers on affordable cost to getting higher competitive advantages easily. For this, cost effective strategy of firm can be beneficial and rewarded.
  • Cost focus: This is a most effective marketing strategy in which firm needs to get cost advantages through several changes and alteration. Company needs to focus on market and customer's need to manage cost of their products easily. This is helps to manage cost of services by selling maximum products in target market.
  • Differentiation focus: According to this theory, Oak cash and carry needs to produce unique and different products for customers. Through this, they can easily capture customer's attention toward their services for maximising sales and profitability of firm.

PESTEL Analysis:

  • Political: These factors determine governmental rules and policy that needs to implement for getting political stability in an business organisation. Oak cash and carry needs to analyse benefits and drawbacks of these factors that consider tax policies and such regulations to implement them positively in business operations (Chapin, 2012).
  • Economic: For a small scale organisation, it is require to provide their contribution in economy development and growth to maximum competitive advantage easily. Oak cash and carry needs to operate their business activities properly to reduce negative impact of different economic factors that can be inflation, high interest and exchange rates as well.
  • Social: Oak cash and carry is small scale grocery wholesaler that provide quality services to their customers on affordable cost. Through this, they can easily get higher competitive advantages easily social factors determine a specific market opportunity in which firm needs to analyse customer's demand and requirement properly to provide them exact services.
  • Technology: These are the most effective and impactful business strategy that are used to implement properly for getting higher competitive advantages easily. Through this, firm can easily maximise their profitability, growth and productivity to getting desirable benefits and income as well. These are the most beneficial business approach that assist to enhance employees skills and their knowledge properly (Christofakis and Papadaskalopoulos, 2011).
  • Environmental: For a business firm, it is require to produce ecofriendly products and services to build a positive marketing image. Government of an country also regulate different legislation for environmental protection. Through this, Oak cash and carry can easily get higher competitive advantages.
  • Legal: Government of each country regulate several legislation and policies for different business organisations that are require to implement properly in firm to create a proper legal framework.

New products and services – These are the most specific business activities which is used to getting higher competitive advantages easily. By introducing new products in target market, firm can provide higher satisfaction to customers. All these activities helps in getting maximum profits and growth from target market. For this, firm can use different strategic models as -

Innovation – This is a most specific process in which employees of firm make positive changes in their products and services on the bases of creative thoughts and ideas. These innovation consider advance approaches for positive modifications and alterations. Through this Oak cash and carry Banbury can easily get higher competitive advantages from target market by introducing quality and effective products in market (Eddleston And et. al., 2013).

Portfolio strategies – BCG Model

  • Star– This strategy determine high growth product in target market with advanced market share. Through this, Oak cash and carry can easily provide higher satisfaction to their customer by their products and services. These are the most impactful marketing strategy of an business organisation.
  • Cash cow– In this situation, organisation faces a unique marketing condition with low growth product and high market share. Through this, firm can easily get desirable profits and income by their low growth products.
  • Question mark– In this procedure, Products of firm can be high growth but they has low market share. In this situation, an organisation can not get maximum business advantage and growth (Grover, Bokalo and Greenway, 2014).
  • Dogs– This is a inappropriate business condition in which firm has low growth products with low market share. In this condition, management of an organisation needs to use impactful strategy to getting higher competitive advantages easily.

Product life cycle:

  • Introduction stage – This is the first stage of product life cycle in which an organisation introduce their products and services in target market on the bases of customer's requirement and need. At this stage, products sales starts slowly because new product take a proper time to create positive market image.
  • Growth stage– At this stage, market accept product of organisation and it gets higher growth properly. This is a most beneficial stage of firm in which Oak cash and carry can easily get desirable benefits and income.
  • Maturity stage– In this stage, firm faces various competitors of their products and services. As it results, sales growth and profit margin is getting down.
  • Decline stage– This is the last stage of a product life cycle in which sales of products fall off.

TASK 2

P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix

Ansoff matrix is a effective marketing strategy which is basically uses to getting higher growth through impactful business planning and procedure. This strategical tools helps to provide a impactful result to a business organisation for achieving target goals and objectives easily. For Oak cash and carry, it can be a most beneficial business model that provide appropriate conclusion to its employees. Segments of Ansoff matrix are given below as -

Market penetration – In this procedure, organisation uses a impactful strategy to sale their Existing product in existing market easily. For this, firm needs to make positive changes in their products and services on the bases of customer's requirement and need. According to this strategy, firm needs to have various loyal customers which believes in organisational services.

Market development – In this procedure, firm introduce their Existing product in new market with impactful strategy. For this, firm needs to create a positive market image of their existing services that helps to expand business structure in other countries. It can be a beneficial business factor for Oak cash and carry (Hough and et. al., 2010).

Product development – This strategy determine a most specific stage in which an organisation introduce New product in existing market. All these services are based on customers and market demand for specific good. In this procedure, Oak cash and carry needs to use different promotional and marketing tools to introduce their new services in existing market.

Diversification – This is a most specific strategy of firm in which they introduce New product in new market for getting maximum business advantages and growth. Oak cash and carry can implement such strategy in their business procedure to getting higher advantages and profitability. In this process, they needs to use promotional and marketing tools to represent their new services properly in market.

Collaborations:

Merger – This is a most effective marketing strategy in which some small and non growth organisations collaborate with large as well as medium scale firms. In this process an organisation merge with another company with their whole assets and liabilities. Through this, these both organisation can get maximum profits and further advantages.

  • Advantages of merger – Through this an small scale organisation can easily expand their business structure on global level to getting higher competitive advantages.
  • Disadvantage of merger – These business approaches harms productivity of employees because for them it can be difficult to collaborate with other employees easily.

Acquisition – In this process, an organisation can acquire other firm by their own decisions or strategies. Through this, a business firm can easily maximise their market share and reduce competition by acquire such organisation through power and money strategy. It can be a impactful planning of organisational growth and success (Keough, 2015).

  • Advantages of Acquisition –This is a most effective process for a small scale organisation to move into new market for getting higher competitive advantages and growth.
  • Disadvantage of Acquisition – It is not important that an organisation can get desirable outcomes and returns after acquire a business firm.

Joint venture – This is a most process in which two or more individuals are come together to start a new venture by their mutual understanding. These both parties are working together with a legal agreement in which they determine all the term and policies of business, ownership and risk control.

  • Advantages of Joint ventureThese ventures reduce burden of capital, funds and risk from one individual because in it all the partners are distribute their responsibility by their own understanding.
  • Disadvantage of Joint venture – There are maximum possibilities to have grievances and conflicts due to cultural and beliefs differentiations (Li, Mobin and Keyser, 2016).

Strategic alliance – This is a organisational strategic approach in which two or more business firms show their majority to share resource, profits and objectives with each other. These activities are legal that provide higher benefits to both business organisation in effective manner.

  • Advantages of Strategic allianceThrough this management of organisation can easily distribute several responsibility to their employees on the bases of their skills and abilities. It reduce burden from a single individual and maximise developing competencies in business firm.
  • Disadvantage of Strategic alliance - Inappropriate working approaches of partners can maximise conflicts and barriers in business environment.

Horizontal integration – This is a business strategy of an organisation in which they acquire a specific organisation to reduce competition from target market. All business activities are proceed by mutual understanding of both organisation on a legal agreement. Through this, an organisation can easily get higher competitive advantages from target market.

  • Advantages of Horizontal integrationThis procedure helps to reduce cost of products and maximise productivity of firm easily. Through this firm can easily enhance their market structure in effective manner (MacLeod, 2013).
  • Disadvantage of Horizontal integration – Lack of trust and understanding between working partners.

Vertical integration – In this procedure, an organisation make proper control on production and distribution activities to maximise their profitability easily. These activities are mainly based on supply chain activity and process of firm to maximise sales and productivity.

  • Advantages of Vertical integrationThis activity helps to make proper changes and modification in business activities on the bases of customers requirements.
  • Disadvantage of Vertical integration –It can harm overall working procedure of a business form by making advance changes in supply chain methods.

TASK 3

P3 Sources of funding available for companies with its advantages and disadvantages

For a business organisation, it is require to manage finance and funds in proper manner to getting higher business advantages easily. Through this, they can easily operate business activities in appropriate manner. For a small scale organisation, it hard to manage funds and capital in properly because of low business turnover and growth. In this process different financial resources provide their appropriate contribution to provide maximum opportunities to these firm (Mitchelmore and Rowley, 2013). Through this they can easily expand their business structure in target market by operating positive business activities. For Oak cash and carry Banbury, it is require to analyse such funding institutions to maximise their business process easily as -

Bank loan – In a economy, bank is a one mots important financial body that provide effective services to their customers on the bases of their requirement and need. In this process, applicant needs to understand proper method for taking financial help from bank. Through this, they can easily choose best method of payment for their budgeted loan. Banks are the most important and beneficial source for finance and funds. There are several advantages and disadvantage of bank loans are given below as -

  • Advantages– This is a most simplest and beneficial tool that provide exact amount of funds to their customers. Banks provide several benefits and advantages to their customer on these loans. These financial institute provide proper amount to their customer on low interest rate that can be a major advantage of these bodies.
  • Disadvantages– There can be some major disadvantage of this process as firm needs to follow some specific and strict rules when taking loans from banks. Government of an country implement several law for bankers and user that require to followed by them properly. In this process, firm faces lots of burden to repay proper amount of loan at a specific time. These are the most easy method but sometimes it takes a long time in processing of loan (Moseley, 2013).

Crowd Funding: It refers to a method of raising capital through the family, friends, relatives, customers and individuals. They pooled investment from social media or website, to increase the entrepreneurship by pools of investors. The crowd funding can be raised from the traditional circle of owner and venture capitalists. It includes the funding sources such as brokers, angel investors and joint ventures.

  • Advantages: Crowd funding is is a fast way to raise capital with no upfront charges such as interest paid on lending money. The investors can become most loyal customers at the time of financing process.
  • Disadvantages: In crowd funding, if a business firm did not protected the idea with patent or copyright, some other organization may see it on a crowd funding site and steal the existing firm concept (Pallagst, 2010).

Financial Institutions: It is an intermediary channel of cash flow between the lenders and borrowers. In other words, any institution that collects money and puts it into assets such as stock, bonds, bank deposits or loan is considered a financial institution.

  • Advantages: The financial institutions provide long term financing, which are not provided by commercial banks. Besides providing funds, many of these institutions provides financial and managerial advice to business organization.
  • Disadvantages: Financial institutions follows rigid pattern for grant of loans. Too many formalities make procedure expensive and time consuming for a customers. Certain restrictions such as dividend payment, imposed power of borrowing company by the financial institutions.

TASK 4

P4 Business plan for growth of organisation

For a business organisation, it is required to create their appropriate target and goals to getting higher success easily. These activities include a effective process to make proper plans and strategy to accomplish these goals properly. In a business organisation planning process include several element as designing, producing, operating, monitoring, controlling, implementing and distribution (Todes, 2012). Through this firm can easily get higher competitive advantages and profits. Business plan determine proper expansion regarding an organisation and its policies as -

Company description – Oak cash and carry Banbury is a small scale grocery wholesaler in UK. This organisation provide their quality product and services in target market on the bases of customer's demand and requirement. In this organisation, different employees provide their effective services and contribution to accomplish target goals and objectives in effective manner.

Mission and vision of firm – Oak cash and carry Banbury provide wholesale services and product to their customer. Main objective of this organisation is to build a effective market image and maximise growth of firm. Vision of firm is to provide quality products and service to target customers on the bases of their requirement and need. Through this, firm can easily get higher competitive advantages from target market (Valler, Phelps and Wood, 2012).

SWOT analysis of firm -

Strength -

  • Firm provide quality products to their customer in the bases of their requirement.
  • Cost effective method and strategy help to build positive relation with target customers.
  • Impactful marketing strategy.

Weaknesses -

  • Firm do not has proper capital and resources to maximise their business structure
  • Low popularity of products in different market.

Opportunity -

  • Quality of products and services helps to provide several opportunities to Oak cash and carry Banbury (Wu, 2015).
  • Cost leadership strategy

Threat -

  • New competitors in appropriate market
  • Low promotion activities and tools.

Marketing budget

 

Particulars

1st year

2nd year

3rd year

4th year

5th year

Initial money

40000

10000

12000

25000

10000

Investment

 

20000

12000

25000

25000

Total

40000

30000

24000

30000

35000

Marketing expenditures

         

Advertisement

9000

8000

3000

8000

5000

Sales promotion

2000

8000

3000

7000

5000

Direct marketing

9000

8000

4000

6000

7000

Total

20000

24000

10000

21000

17000

Available balance

20000

6000

14000

9000

18000

TASK 5

P5 Exit and succession option for small business

Exit & succession opportunities are fundamental for the business organisation that rely over the market position and performance of business. If a firm is not able to operate better and is facing high liabilities and debts in the previous few years, then this can close or dissolve the strategies of company as per this. Manager of business is accountable to make proper analysis of company as well as framing the strategies according to the circumstances. If company desire to create consistency in business or desire to dissolve this. Henceforth, numerous methods or ways are there by which Oak cash and carry Banbury can discontinue or dissolve their business organisation significantly.

Liquidation: This can be defined as the ending a business where organisation syp up entire operations of business as well as to the creditors. Refrained amount is managed to distribute among their shareholder.

Trade the Enterprise to managers as well as employees: if the employee or manager of organisation is interested in the trading or buying organisation, enterprise can trade their company to interested clients.

Trade the company in open-market: It is the key significant exist methods for a proper business organisation who want to trade their organisation or their available asset. When the company's manager review their business which is not more valuable, then at such times, company can be traded in business by selling it in reasonable or affordable cost that they have determined according to the firm.

Trade to another firm: Organisation can also trade their organisation to another company or can opt the technique of acquisition. It can be proven as one of the beneficial method. Through opting acquisition, organisation can determine numerous deployment methods, managing synergies from the activities of complementary business or conveniently purchasing or get rid of the rivals companies in market (Ziari And et. al., 2012).

Lacking uniqueness and value: It is essential aspect which affect business operations and is main reason of failure. Administration of each and every organisation require to make changes in system. Latest tools and techniques are implemented in system which help Oak cash and carry Banbury to provide innovative and creative things and facilities to customers. Market have large number of firms in same segment, so it is necessary that adequate services are given to clients. To sustain position and reputation in market, company need to provide adequate things to people. Along this, to establish competitive advantage and attain success by making firm stand higher in crowd. But, as these were conditions which were not followed by management of Oak cash and carry Banbury. Thus, company has to exit from market because of profitability and sales volume.

Less knowledge about need of customers: Research and development is department which are given responsibility to conduct market survey. Taste and preference of people are acknowledged by management to have complete information about demands of buyers. Oak cash and carry Banbury require to provide appropriate services and facilities to consumers in according to their requirements. For this, skilled and competent members are required which are able to satisfy needs of people. Hence, if customers are not satisfies which affect on business and sustainability for longer time (Ziari And et. al., 2012).

Leadership failure: Administration assign superior responsibility to direct and guide members by giving them appropriate instruction and information about tasks required to be performed. Along this, line manager even need to provide adequate data to employees about needs and demands of people. Oak cash and carry Banbury is service firm which need to deliver quality services and facilities to clients. Subordinates work and quality of things depend upon leader. If training and development sessions, seminars and conference are not conducted. Thus, company will not be able to survive in market.

Growth and succession in family business: This is another aspect which define organisation which are run and operated by members which have ownership to conduct activities and deliver appropriate things in market. They have voting rights and decision-making power. These forms of business are main and important tactic for economic growth and development of country. Along this, it also helps in stabilising state and conditions of nation. Hence, they are considered as backbone which specifies that family business have opportunities to expand and enhance profitability (Ziari And et. al., 2012).

Consideration that affect family business: These are various components which influence family business are stated below:

  • Generation transitions: Second generations helps business to make success.
  • Inter family disputes: Family members interest are not same which affect on business decisions; thereby produces conflict and problems between them.

CONCLUSION

From the above report has been concluded that planning is a most effective business process that helps to attain desired goals and objectives in effective manner. For a small and large business organisation, these planning helps to achieve appropriate growth. In this process, management of firm needs to make effective plans and strategies to analyse options of business advantage. These are the most impactful marketing plan of an business organisation. This strategical tools helps to provide a impactful result to a business organisation for achieving target goals and objectives easily. These are the most beneficial business approach that assist to enhance employees skills and their knowledge properly. You can also ask for the best assignment help at a highly affordable price from professionals.

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