Reference no: EM133080092

Unit 42 Planning for Growth - Pearson BTEC Level 5 Higher National Diploma in Business

Unit Code - J/508/0601 Level 5

Assignment - Scaling Up the Business

Learning Outcome 1: Analyse the key considerations SMEs should consider when evaluating growth opportunities.

Learning Outcome 2: Assess the various methods through which organisations access funding and when to use different types of funding.

Learning Outcome 3: Develop a business plan (including financials) and communicate howyou intend scaling up a business

Learning Outcome 4: Assess the various ways a small business owner can exit the business and the implications of each option.

Purpose of this assignment

This unit provides students with an appreciation of how small and medium enterprises (SMEs) develop and grow. Students will learn about and apply techniques for identifying opportunities for growth, and appraise options for achieving growth, including via collaboration. Students will also learn about the sources of investment finance and consider how an SME attracts investors. They will gain an understanding of the options for SMEs in terms of exit or, for family businesses, succession, and be able to appreciate the importance of making informed choices when choosing routes to growth and have an understanding of the potential risks vs rewards involved with growth.

Scenario

Zoe Allen established a Gallery and Art Studio (ZAGAS) in the Baker Street area of Central London ten years ago where she makes hand craft items including greeting cards, beeswax candles, pottery and potpourri, most of which she makes herself and much of which she sells to larger gifts and souvenir shops in and around Central London. The studio is rented, and she employs two staff on a part-time basis to assist at weekends and during holiday periods. Profit over the years has been reasonable but costs in the last few years, particularly rent, have started to rise and loss of sales during the lockdown period has not helped.

Zoe Allen is now considering a move to bigger premises in a less prominent area of London where rent is cheaper, and she could increase her production capacity by offering full-time employment to her current part time staff. She has built a good reputation and therefore assumes that local customers will still find her, but she realises she could be less accessible to the tourist trade. She believes it could cost £20,000 to refurbish the new premises and for the advertising needed to alert the tourist trade to her new premises.

Task 1

Analyse the key considerations Zoe Allen must consider in evaluating the growth opportunities for her new Gallery and Art Studio (ZAGAS) and justify these considerations. Then, you must evaluate the opportunities for growth applying Ansoff's growth vector matrix.
To enhance your grade discuss the options for growth using a range of analytical frameworks to demonstrate the understanding of competitive advantage for Zoe Allen's Gallery and Art Studio. Then, critically evaluate specific options and pathways for growth, taking into account the risks of each option and how they can be mitigated.

Task 2

Assess potential sources of funding available to Zoe Allen's Gallery and Art Studio (ZAGAS) or business owners like Zoe Allen and discuss benefits and drawbacks of each source. Then, evaluate potential sources of funding and justification for the adoption of an appropriate source of funding for Zoe Allen's Gallery and Art Studio (ZAGAS).

To enhance your grade, critically evaluate potential sources of funding with justified argument for the adoption of a particular source or combination of sources, based on organisational needs.

Task 3

Design a business plan for Zoe Allen's ZAGAS' growth that includes financial information and strategic objectives for scaling up the business. For higher grades your plan should be an appropriate and detailed business plan for growth and securing investment, setting out strategic objectives, strategies and appropriate frameworks for achieving objectives.

To enhance your grade further, present a coherent and detailed business plan that demonstrates knowledge and understanding of how to formulate, apply and achieve business objectives successfully.

Task 4

Assess exit or succession options for Zoe Allen's ZAGAS explaining the benefits and drawbacks of each option. Then, evaluate these exit or succession options for ZAGAS, comparing and contrasting the options and making valid recommendations. To enhance your grade further, provide critical evaluation of the exit or succession options for Zoe Allen and ZAGAS and decide an appropriate course of action with justified recommendations to support implementation.

Attachment:- Planning for Growth.rar