The task must show your understanding of the market situation, trends that influence the market, and your organisation’s capabilities to deliver your new creative value proposition.
You are encouraged to be bold and develop and communicate a single main business innovation to satisfy the main opportunity. This should not be a proposal that just seeks to incrementally improve the revenue and profits from the existing base. It should be entrepreneurial and related to the capabilities it owns or has realistic access to.
Hidden Champion companies (which are more established than most of our AIM companies) will allocate 10-20% of sales revenue to funding R&D and innovation activities.
I suggest that for this task you allocate a nominal 10% of sales revenue for your new venture budget, although you may be able to justify, and therefore allocate, a higher amount for the firms with unexploited IP, if their financial reserves allow for this.
|Marking Criteria Task 2- Growth Proposal||Marks Available||Your
|Growth Strategy Opportunity|
|Your main focus should be on the scenario where shareholders have authorised the investment of 10% of sales revenue into new ventures, and so they will be seeking something more innovative than ‘pure’ Market Penetration- so explain which opportunity you think they should focus on.
You can link from the options that your team proposed in Task 1 unless you now have a new thought and wish to propose a different strategy.
Explain this in relation to whether it is a new externally- pulling opportunity or an internal innovation that you think the organisation can push to its existing customer base
|Discuss the Growth Opportunity detail|
|Explain the nature of the opportunity and the customer types it represents
Why is it different to the ongoing business of now?
Explain your target for a new business opportunity…what are the factors that have led to this opportunity arising and how have you discovered it? Is your target a new customer, a new market, or a combination of these?
Explain your business innovation/value proposition that you think will capture the attention of the customer in this opportunity – be creative and bold. What is the added benefit/gain beyond the problem your VP will solve? This is what creates the longer term relationship.
|How will the growth plan be organised|
|Explain the structural and cultural issues that will need to be established to protect the main business whilst enabling higher growth to be accomplished?
What will the process that supplies the sales growth look like?
What will be the effect upon the culture?
|How will the growth plan be financed|
|You can allocate up to 10% of revenue (as shareholders have approved this level of investment) but how will the finance be allocated?||30|
|Total Task Marks||100|
|Total Marks for Module = 100/60|