Planning for Growth: Evaluating Growth Opportunities and Funding Sources for Ades Limited

PLANNING FOR
GROWTH

CONTENTS
INTRODUCTION...................................................................................................................................1
PART – 1.................................................................................................................................................1
Brief history of Boston Consultancy Group Matrix and GE matrix....................................................1
Difference between BCG matrix and GE matrix.................................................................................2
Recommendations based on the evaluation of the two matrixes.........................................................2
Ansoff growth vector matrix for evaluating the growth opportunities for the business......................3
Benefits and drawbacks on the suggested sources of finance.............................................................4
Justification for the sources of funding by Ades limited.....................................................................5
Arguments related to source obtained by ADES limited.....................................................................5
PART – 2.................................................................................................................................................5
Development of the business plan.......................................................................................................5
Exit and succession options for the business and their benefits & its implications...........................12
Comparing and contrasting the exit strategies...................................................................................13
Justified actions with recommendations to implement by Ades limited...........................................13
CONCLUSION......................................................................................................................................14
REFERENCES......................................................................................................................................15

INTRODUCTION
Small and business enterprises are those firms which are commencing their business.
These companies have less than 250 workers and the average revenue being earned is about
50 million pounds. However, these SMEs have high growth opportunities. Considering this,
the current project also deals with assessing the growth opportunities and sources of funding
for the business in the first section of the report. The SME Company chosen for this project is
ADES limited company, which is a grocery and related product merchant of London. The
second section of the report focus on the development of business plan for growth and
effective marketing strategies are also being designed for the proposed business. The report
concludes with different exits opportunities and procedures.
PART – 1
Brief history of Boston Consultancy Group Matrix and GE matrix
Talking about the BCG matrix model it is being referred as an important planning tool
that makes use of graphical representation of the product of the company with the main effort
to support the firm in making decision regarding what should be kept and in which they
should invest more. It encompasses four categories such as cash cows, dogs, question marks
and stars.
BCG matrix model includes stars, cash cows, dogs and question marks. Focusing on the stars,
these are being referred as the product which are currently making too much cash for the
business however managing the position in the market place (Badrinath and et.al., 2017).
Cash cows are the earlier stars and also make too much cash for Ades limited as there has
been reduction in the growth in the market along with the minimum pressure from the
competition. Furthermore, if the product has low share in the market and lower rate of growth
than it is being referred as the dogs. The final one is the question marks which signifies as the
products which have high rates of growth however the product of Ades limited company has
not maintained a larger share in the market.
GE matrix on the other hand also makes use of multiple variables for determining the
two most important dimensions that is industry attractiveness and competitive strength. It
makes use of nine grids for measuring the strengths of the business unit. In regards with the
industry attractiveness of the Ades limited company, there are different dimensions that can
be utilized such as bargaining power of the suppliers, bargaining power of the customers,
threats of new entry, competitive rivalry and threat of substitutes (Moore, 2014). If the small
and medium enterprises such as Ades makes products with rare inputs than the suppliers will
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