Aim of Unit 42 Planning for growth
Unit 42 Planning for growth speaks about the development and growth of Small medium industries. Application of various techniques could be made to understand the growth and development. This unit emphasizes to serve knowledge upon the growth and opportunities for collaboration. Small-medium enterprises attract investors by using various sources of investment. Apart from that the nature of entry and exit would also domain the unit. The focus could also be stressed on the existence of family business and making choices to grow further in the market. Understanding of the growth and risks that could be attained by small-medium enterprises is equally important and a knowledge part of the study.
Learning outcomes
LO1 Analyze the key considerations SMEs should consider when evaluating growth opportunities
LO2 Assess the various methods through which organizations access funding and when to use different types of funding
LO3 Develop a business plan (including financials) and communicate how you intend scaling up a business
LO4 Assess the various ways a small business owner can exit the business and the implications of each option
LO1 Analyze the key considerations SMEs should consider when evaluating growth opportunities
The competitive advantage could be taken as a basis for growth of small medium enterprises. Apart from that they’d porter’s generic strategies would be very helpful in determining the competitive advantage and how to handle it. PESTLE is model which helps to gain information about the entire sector upon various directions. Various other matrices like Boston, McKinsey could also help in successful understanding of competitive advantage. Apart from that options of growth could also be understood by using Ansoff matrix. Growth could also be generated by using technology and various other digital platforms. Collaboration could be understood by value chain analysis and partnerships. Lastly horizontal and vertical integration also consist within the subhead of collaboration.
LO2 Assess the various methods through which organizations access funding and when to use different types of funding
The main focus for describing funding could be stressed upon investments. Investments in decision making could be understood by the use of various methods of financial appraisals. The sources which could be taken a matter of growth mainly consists of financial sources. Moreover, the drawbacks of such finances like loans, overcrowding, finance venturing could also be used for understanding purposes. Some methods of calculations would be net present value and payback period.
LO3 Develop a business plan (including financials) and communicate how you intend scaling up a business
A business plan includes vision and mission of an organization while focusing upon the strength. Other focusing areas would be opportunities, ethics of the organization and stakeholder expectations. The strategies of entrepreneurs are also used for developing a business plan. A business plan is basically made secure investments and meet the needs of investors. In order to understand the investors’ and meet the demands of investors a plan could be presented. All these requirements would be needed to prepare a business for investment.
LO4 Assess the various ways a small business owner can exit the business and the implications of each option
The success and failure of an organization depends completely upon how the manager manages the business. Reasons for failure and prevention measures for such failure could be taken for further references. In case a failure occurs in the future than how would an organization take exit from that failure also could be considered as a mechanism for failure. The growth of family business would be determined by planning, areas of conflict and the areas that could affect in growth of business.
Learning Outcomes and Assessment Criteria
| Pass | Merit | Distinction |
| LO1 Analyse the key considerations SMEs should consider when evaluating growth opportunities | ||
| P1Analyse key considerations for evaluating growth opportunities and justify these considerations within an organisational context. P2 Evaluate the opportunities for growth applying and off’s growth vector matrix. | M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the understanding of competitive advantage within an organisational context. | D1 Critically evaluate specific options and pathways for growth, taking into account the risks of each option and how they can be mitigated. |
| LO2 Assess the various methods through which organisations access funding and when to use different types of funding | ||
| P3Assess the potential sources of funding available to businesses and discuss benefits and drawbacks of each source. | M2 Evaluate potential sources of funding and justification for the adoption of an appropriate source of funding for a given organisational context. | D2Critically evaluate potential sources of funding with justified argument for the adoption of a particular source or combination of sources, based on organisational needs. |
| LO3Develop a business plan (including financials)and communicate how you intend scaling up a business | ||
| P4 Design a business plan for growth that includes financial information and strategic objectives for calling up a business. | M3 Develop an appropriate and detailed business plan for growth and securing investment, setting out strategic objectives, strategies and appropriate frameworks for achieving objectives. | D3Present a coherent and in-depth business plan that demonstrates knowledge and understandin go how to formulate, apply and achieve business objectives successfully. |
| Pass | Merit | Distinction |
| LO4 Assess the various ways a small business owner can exit the business and the implications of each option | ||
| P5Assess exit or succession options for a small business explaining the benefits and drawbacks of each option. | M4 Evaluate exit or succession options for a small business comparing and contrasting the options and making valid recommendations. | D4 Provide critical evaluation of the exit or succession options for a small business and decide an appropriate course of action with justified recommendations to support implementation. |
Links
This unit links to the following related units:
Unit8: Innovation and Commercialisation
Unit22: Product and Service Development
Unit29: Managing and Running a Small Business
Unit43: Tapping into New and International Markets