Learning Outcome 1

Analyse the key considerations SMEs should consider when evaluating growth opportunities

Competitive advantage:

• The basis of competitive advantage as a foundation for growth: resources and capabilities and core competences.
• Generic strategies (Porter).
• Linking competitive advantage with opportunities for growth (PESTLE).

New products and services: innovation:

• The development of products and services as a basis for growth.Portfolio strategies (Boston Consultancy Group Matrix and GE/Mckinsey matrix).Product life-cycles.The diffusion of innovation.

Growth options:

• The main routes to growth (Ansoff’s growth vectors −market penetration, product/service development, market development, unrelated diversification) 
• Identifying and mitigating risk. 
• Exploiting technology and digital platforms to expand network and generate growth.

Collaboration:

• The benefits and drawbacks of collaboration,including mergers, acquisitions, joint ventures and strategic alliances and how they might be applicable growth options for small businesses. 
• The benefits of horizontal and vertical integration. 
• Partnerships in the value chain (e.g. bidding consortia).
• The potential of franchising for expanding a business.

LO1 Analyse the key considerations SMEs should consider when evaluating growth opportunities

• P1 Analyse key considerations for evaluating growth opportunities and justify these considerations within an organisational context.

• P2 Evaluate the opportunities for growth applying Ansoff’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

Learning Outcome 2

Assess the various methods through which organisations access funding and when to use different types of funding 

Investment decision-making:

• The main methods of financial appraisal to compare strategic or project options: payback period and net present value calculations.

Sources of finance for growth:

• The main sources of finance for growth and the benefits and drawbacks of each: bank loans, crowdfunding, peer to peer lending, angel and venture finance.

LO2 Assess the various methods through which organisations access funding and when to use different types of funding

• P3 Assess 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.

• D2 Critically evaluate potential sources of funding with justified argument for the adoption of a particular source or combination of sources, based on organisational needs.

Learning Outcome 3

Develop a business plan (including financials) and communicate how you intend scaling up a business

Strategic intent: vision and mission:

• Developing a vision and mission for the organisation based on areas of strength, identified opportunities, values and ethics, and the expectations of stakeholders. 
• Exploring successful entrepreneurial strategies (e.g. addressing niche markets).

Preparing a business case for investment:

• The key aspects of a business plan aimed at securing investment and what investors are looking for. 
• How to present the plan to investors.

LO3 Develop 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 scaling 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.

• D3 Present a coherent and detailed business plan that demonstrates knowledge and understanding of how to formulate, apply and achieve business objectives successfully.

Learning Outcome 4

Assess the various ways a small business owner can exit the business and the implications of each option

Exit: success and failure:

• The main ways an owner-manager might exit the business. 
• The key reasons for business failure (external and internal) and how business failure might be prevented.
• Mechanisms for exit in the event of failure. 
• Exit routes for successful businesses: selling or floating the business, valuing the company.

Growth and succession in the family business:

• How the considerations of growth affect the family business. 
• Areas of potential conflict. 
• Succession planning. 
• Cultural issues

LO4 Assess the various ways a small business owner can exit the business and the implications of each option

• P5 Assess 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.