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Planning for Growth

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PLANNING FOR GROWTH:
Kelly’s Sandwich Stop

BMGT 110 (6981) – UMUC
Final Project
Professor S. Goyal

Abstract

Kelly has a well established lunch business and is ready to take the next logical step with her company, expansion. She will need to develop and implement a strategic addendum to her business plan, that will focus primarily on the growth of the company, in order to meet her range of goals. The proper business plan will entail more than just demonstrating how her revenue will grow by the numbers; Kelly’s growth strategy must attest to her capability to responsibly bring her food services to new customers and new markets, perhaps even introducing new products.

Growth Strategy
The first step that needs to be taken to in the organization and prioritization of Kelly’s growth strategy is for her to diagnose the health of her business. This preliminary step involves gathering the detailed information about each of Kelly’s four business divisions (finance, human resources, marketing, and operations), so that she is able to measure exactly how well the business is doing and pinpoint where changes will be needed. Kelly, preferably with an advisor, should scour through the business information, cash flow and income statements, balance sheets and statements of owner’s equity, analyzing her company SWOT (strengths weaknesses opportunities and threats) in order to better assess the company’s capabilities and expansion needs. The value of a SWOT analysis is two-fold, as not only does it allow Kelly to evaluate her own company, but it can also be used to explore the strengths and weaknesses of her regional competition. This is important in a free-market economic system, because it is competition which determines which products and services are sold, how they are produced, and whom they are produced for (Chapter 1, p.18).

Business Form
Given Kelly’s expansion plans,

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