Word count - 1502Seminar LeaderExecutive SummaryThe aim of this report is to analyze the possible implications of the proposed growth for each of the functional areas of the business. The report also tries to find out the biggest problem the business is likely to face. It explores production, marketing, organizational and structural changes that will be needed for its growth. It finds out that with a proper planning of all the expansion plans and arrangement of financial and human resources, it can reach its target. It will need to be careful about regular business review and must adopt a shift in attitude.
Shared vision and efficient leadership has been its strength so far and that must be maintained for its growth. IntroductionThis report will study the growth plans of Gower Ltd. This Business has some special features. This is not very old as it was started in 2005. It does not have a large work force. It started with two staff, and now has six. The production is done on Gower’s own farms that are three in number. The marketing is done to special outlets as a premium product.
The product range is three flavours of hand fried potato crisps in one pack size. In first year Gower’s Ltd. achieved a turnover of GBP 300,000 and profits of GBP 30,000. They have won a business award for entrepreneurship also. Their target is to reach a turnover of GBP 10m by 2012 and have staff of 60 by then. Its current turnover is nearly GBP 1m. MethodologyThe method will be to break down the implications of growth on various aspects of the business and find out the necessary steps that will have to be taken to make the growth possible and then to sustain the growth.
The structure will be: -Review different aspectsDraw conclusion from these aspectsIdentify problem areasConclusionProductionFor reaching a turnover of 10m which is 10 times the current turnover the first and foremost requirement will be increase in production. Currently it is utilizing the maximum capacity of its three farms. It is evident that to increase its production, it will have to acquire more farms. It may have to explore agro-technology to increase its yield per hectare.
The production can also be increased by improving the processing methods like better storage and faster transportation. Marketing actionsThe other most important aspect, may be more important than increased production, is improved marketing strategies (Mullins et al, 2005). It will have to increase its sale per outlet and have more outlets. Since it is averse to go to supermarkets, and has positioned its product as a premium product, it will have to think in that direction only. It can reach out to neighbouring cities and states and may be international.
Locally it can find more suitable outlets like the five star hotels or other luxury places. To increase its sales per outlet, it will have to give them incentives on increased turnover. It can give them specific targets and announce rewards on reaching those figures. It can also have a variation in its packing size. A smaller packing can get the on-the-move customer and a bigger packing can be positioned as the family pack. There could be combo packs with all the three in one pack with an added fourth item of the smallest pack as free gift.
Gower Ltd can also add more flavours to its range. This will get new customers and also give another option to the existing customer.