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Unit 42 Planning for Growth - Higher National Diploma in Business

Assignment - Investing in the future & Developing an exit plan

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 how you 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.

Assignment Brief: You are to work on a simulated business or social enterprise of your choice. This need not be complex and could be a small business, such as a local service (e.g. a new coffee shop or an online product sales business). You should choose something that interests you personally or where you may have some existing knowledge or access to resources and skills through personal networks.

You will prepare a report for the growth of your simulated small business or social enterprise. This will include:
• An explanation of the basis of competitive advantage for the business.
• An assessment of the opportunities available to the business.
• An assessment of the options for growth, applying Ansoff's growth vector matrix with an assessment of the risk of each option.
• An assessment of the options for financing growth, explaining the benefits and drawbacks of each source.
• A business plan for growth that includes financial information and strategic objectives.
• An appraisal of the exit or succession options for the business, explaining the benefits and drawbacks of each option.

BH542 requires students to develop a growth plan for a local SME e.g., a local private/independent coffee shop, a restaurant, or any small business. NOT any international or global firm at all. You can simulate one if you like as it is stated in the assignment brief. But it needs to be realistic and workable in the business world.

The outline of the assignment would be stated as follows for your reference

The profile of the chosen local business: business nature, product (or signature products) and price range, the scale of the business (no. of staff, no. of tables if it is a restaurant), annual or monthly income, location, competitors, etc.

To analyze the growth opportunities in the market

To identify its competitive advantage so that it can outperform in the market to grow (some students use the SWOT analysis to help understand the internal and external of the business situation for the case. It is optional but it could help deeper to the case.)

Based the Ansoff's matrix analyze each growth opportunity that the company can have. You must analyze each option: product development, market penetration, market development, and diversification (most likely it is related to d diversification). Then you choose which option is the most appropriate for the company to grow its business.

To provide and explain several funding options and choose which one is the most appropriate for the company to adopt. (You must provide the drawbacks and benefits of each funding option)

Based on the choice from Ansoff's matrix, the funding option, and the market situation, you need to devise a business plan with a five-year (2024 - 2028) financial projection (you can use the income statement as a sample to project its financial situation for the next five year.) Please be reminded to set the strategic objective which is the expected annual growth rate of the income from 2024 - 2028 (a 5-year financial projection).

To provide a few exit or succession options for the company. Then explain the benefits and drawbacks of the exit or succession option you choose and explain the reason why.

Provide a conclusion and recommendations for the case.
Last but not least provide referencing to support the assignment as ideas or evidence for commentary wherever is necessary to help.

Of course, as usual, you need to provide academic referencing (at least 10-15 sources) to support your ideas or as evidence for your assignment.

The outline of the business plan:
Executive summary
Market analysis
Strategic objective
Management and Organization structure
A 5- year financial projection (based on the pattern of the income statement)

The marketing strategy (the implementation of the 4 Ps that is to secure the investment and strategic objective.)

Note: Use the company background which is based in Hong Kong.