Planning for Growth in Enterprise Rent a Car: Analysis of Opportunities, Risks, and Funding Sources

This report provides an analysis of growth opportunities, risks, and funding sources for Enterprise Rent a Car. It includes an evaluation of key considerations, Ansoff's growth matrix, risk assessment, potential sources of funding, and a detailed business plan.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of key reflection for evaluation of growth opportunities along with explanation of
those considerations within organizational context.....................................................................3
The opportunities for growth with the help of Ansoff’s growth matrix......................................6
Risk assessment...........................................................................................................................7
Assessment of potential sources of funding along with benefits and drawbacks........................8
Detailed business plan of Enterprise Rent a Car.........................................................................9
Critical evaluation of exit and succession options that are available for business....................14
Recommendation for particular exiting strategy selected by firm.............................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is strategic business activities that help the owners of various business
organizations to plan according to appropriate strategies and key actions that could be utilised for
earning maximum amount of profits within the establishment (Frenchman, 2017). With the
enhancement in competition level development in technology as well as globalisation, companies
are required to find alternative methods that could be used in order to develop and expand
business operations within the external environment. This report is based on the enterprise
namely “Rent a Car” which is a small scale enterprise and a privately owned business with three
generations involved in the business activities. This study will consists of the concepts related to
several growth opportunities that are available for the betterment of the business, source from
which it can raise their finance along with the future business plan. Moreover, the critical
evaluation of exist or succession options that are available for the growth of this particular
organization.
MAIN BODY
Analysis of key reflection for evaluation of growth opportunities along with explanation of those
considerations within organizational context
For the fulfilment of the analysis of Rent a car establishment has been selected which is a firm of
rental car company in North America with an annual revenue of about $14.1 billion. The
company is an internationally recognised brand operating within the Canada, United States, UK,
Ireland and Germany. It currently has more than 7000 rental offices within five countries and
having 68000 employees all over their offices (Phadermrod, Crowder and Wills, 2019). The
organization now wants to focus on their services according to the research about the latest
trends of the market place and thus wants to expand their business with introducing their services
on the online platform through which the firm will able to approach diversified people all across
the world. The firm is currently making investment into these activities and move ahead with this
mission. In order to proceed further on this path, Establishment Rent a Car has to take various
necessary actions in order to facilitate the business from other current commercial
establishments.

The internal evaluation of the firm has been described below:
Strengths
 Financial resources
 Effective human resources
 Technologically skilled people
 Diversified portfolio
 Location at which the offices are
situated
Weaknesses
 Name and reputation
 Market share
Opportunities
 Trend for renting cars
 Developing market place
 Increasing number of internet users
(Mondal and Haque, 2017)
 High barriers to enter the market
 Economic crisis
Threats
 Competition
 Raise if fuel prices
 Existence of substitutes
 Infrastructure
External analysis of Rent a car establishment are:
Political
 Changing policies
 Pressure groups and governance system
 Taxation and trade restrictions
 Political stability
Economical
 Business cycle stage
 Labour market conditions
 Exchange rates
 Financial markets efficiency
Social
 Demographic trends
 Societal norms and class distribution
 Online shopping
 Spending pattern and behaviour
Technological
 Social media market
 Technological innovations
 Short product life cycle
 R&D on technology
Legal Environmental

 Employee protection law
 Consumer protection law
 Intellectual property laws
 Recycling and waste management
 Weather and climatic conditions
 Attitude towards eco friendly system
Thus, this is an important aspect in order to make enough of internal as well as external
evaluation primarily before introducing any new kind of changes within the organizational
operations (Sreenan and et.al., 2019).
Another significant analysis is regarding the areas of the firm which requires huge amount of
investment and greater assistance which has been described with the help of Boston Matrix.
 Stars: The financial services strategic business unit is a star. It operates in a market that
shows potential in the future terms. Enterprise Rent a car earns a significant amount of its
income from this strategic business unit.
 Cash cows: the supplier management service strategic business unit is a cash cow for the
firm. This has been in operation for over decades and has earned a vital amount in
revenue.
 Dogs: Lower in the boom or requirements for the percentage at the market space are
comes under this category and employees are required to work towards minimizing
variety of dogs in that area covered in the portfolio of Enterprise Rent a car (Andre and
et.al., 2018).
 Query Mark: The service that are not opt by the consumers of certain area and have
weaker the role of the firm within the market place are comes under this stage. The Rent
a car have to make large funding for their newly offer services to enable them to give
competition to other rent car service firms within the high growth market place.
There are various stages that are included in the product life cycle for the business enterprise of
Enterprise Rent a car in which all certain elements are listed below:
 Introduction stage: The introduction of rent car services on the digital platform will
able to provide services to thousands of consumers and the Rent a car firm additionally
positions their services by keeping in mind about the target market place.

 The Growth stage: At this phase, the Enterprise Rent a car has to generate awareness
on the demand of their consumers and this also helps the establishment to promote their
services through digital platform.
 The saturation level: This is the last stage at which the firm have to choice about
making termination of their services from specified locations or innovations are two
aspects that are tied together with each other (JOYNER, 2018). Rent a car firm has to
decide whether or not to make certain modifications to their services for boosting their
sales volume or totally terminate the services from that specific location.
In order to make competitive advantages, Porter’s five forces has been described for the
Enterprise Rent a car and the digitization of their services has been introducing to their
consumers are:
 Aggressive benefits: this helps the firm to offer their services through new nad advanced
technology at lower cost than their competitive firms within the market place of all across
the world.
 Cost management method: Enterprise Rent a car is a firm which can also provide
numerous market place percentages with the help of decreasing the prices of their
services in different regions because of the less amount of investment in advertising the
services.
 Point of interest method: For the business Enterprise Rent a car, they target customers
from different demographics and area of interest markets before providing their services
within the competitive market (Ivan, 2017).
 Integration of fee management differentiated strategy: The establishment has to
provide their services at diversified locations with varied range of services from the mid
range to high variety of charged services and that too must be pleasurable in all means.
The opportunities for growth with the help of Ansoff’s growth matrix
The Enterprise Rent a car is one of the companies who newly introduce their services on the
digital platform will the help of implementing effectual business techniques in the form of
adopting appropriate digital market channels. These channels will help the firm to promote their
offered services at the reduced cost of investment and under the situation of pandemic where all

the consumers are become more hygiene conscious appropriately able to serve the requirements
and desires of consumers in most effectual manner (Handrian and Mansoor, 2021). Currently,
Rent a car firm has been planning to make growth in which the firm starts selling of their
services which could additionally permit the firm starts adopting their services in order to attract
high range of consumers from the domestic market place to the worldwide markets. In order to
analyse the risks that are related and moreover the firm can make the proper enhanced method
which is required for the introduction of new business that undertakes:
 Market penetration approach: It includes the selling of more of established products
and services into the existing market place, often by increased promotion and price
reduction or better routes to market such as providing online facilities to opt for services
to their customers.
 Product development: Under this stage the strategies of product development helped the
firm in the market where it was feeling low sales volume. The firm have to adopt
strategies in order to promote their services through online platform through digitisation
of their services in order to expand their business activities (Desai, 2019).
 Market development: The most important market space development techniques for the
firm can be approaches which are associated with the marketing and advertising of their
services through digital platform in the competitive world in which all other firms are
also available in order to offer similar kind of services which are offered by many other
firms as well. Moreover to that, the firm also requires assessment techniques for product
marketing in order to sustain their place within the competitive market place.
 Diversification: The principles and approaches that are protected in diversification are
associated with selling the offered services of the firm by using get involved within new
territories and this will also be an authoritative form or method for the firm. Due to this
fact, the organization requires thorough market place analysis in order to finding the
exact desires and requirements of the clients for the brand new services that has been
presented.
Risk assessment
Category Description Consequences Probability Impact Risk
Level
Risk
modification
Risk
level

plan
Employee It takes too
long to contact
a lead and
this time may
not decrease
with the new
sales program
We will not
enhance sales
revenue
High High High Map out
current
processes to
find
inefficiency
Medium
Customers Customers are
leaving the
services and
the firm do
not know the
reason
We will
unable to
reduce the
number of
customers
who are
leaving
Medium High High Create a
survey and
partner with
the firm to
deliver
effective
services to
consumers
Low
Employee The new
employee
learning
program may
not be
approved
Firm will not
be able to
provide
professional
development
to all
employees
Low Medium Medium Prepare and
preset ideas
at board
meeting next
Low
Employee There is no
documentation
of diverse
roles within
the firm
Cross training
employees
will be
inefficient
Medium Medium Medium Begin
creating
tutorials
specific to
different
roles
Low

Assessment of potential sources of funding along with benefits and drawbacks
In order to implement new task within the enterprise, Rent a car is carefully required to take the
mortgage for digitize their services for the betterment of the customers. The options are
explained below along with certain benefits and disadvantages:
 Loans from relatives and friends: This includes the loans from relatives and friends in
order to invest in the firm for the betterment of its growth and expansion of business
activities. The benefits of this includes that the business person not required to provide
any kind of security while taking loan as this is very casual form of mortgage with low
rate of interest (Berglund and Peebo, 2019). This type of loan may be repaid according to
the situation of the business. While the drawbacks includes private relations which affects
if unable to back the borrowed amount of money, higher opportunity of interference from
family and friends and they might also expect interest at the money that has been taken
from them.
 Lease Finance: The primary supply for newly start up business firms is the corporations
which supply rent to the medium and small sized groups in order to start their own
business organization. It also support in order to include tax compensation that are
supplied to the occupant for taking rent of an asset in place of shopping for it and thus
this also motivate them for obtaining rent finance. The benefits of this kind of finance are
that no guarantee is required and safety is supplied to the assets that have been purchased.
While on the other hand certain drawbacks involves that after taking finance, he legal
owners of the assets is the finance company and they can recapture the asset at any point
of time if the firm do not pay the borrowed money.
Bank overdraft loan: It provides contemporary facilities along with on call payments facility as
and when it is highly required. The drawbacks of that includes the firm have to stay aware that
the overdraft is not always related to drift the cash , instead the corporation are approved to
overdraw the money where the overdraft amount is supplied and has to pay back on demand
along with that the interest fee also may vary. The security of taking this type of mortgage is
related to the enterprise asset and personal guarantee (Fotiadis, Mombeuil and Valek, 2018).
Moreover, certain benefits includes that it is a flexible mode that additionally offers on demand
provision. This is very cheap alternative and thus the interests are primarily based on the
usability.

Detailed business plan of Enterprise Rent a Car
Business plan refers to written document that described in detail the information related to
the way in which business will operate its tactics, objectives, strategies and the ways they will be
achieved. So, it outlines the roadmap of the firm according to its marketing, operational and
financial so that it can achieve its end and final goals in the best possible manner.
Business plan of Rent a car
Executive Summary
It is a marketing plan of Enterprise Rent a car that is planning to expand their business operations
through introducing their offered goods and services on the online and digital platform for
offering their services in better and effectual way (Lourenço, 2017). The company has plan
different strategies, procedures and actions needs to be undertaken to offer services on digital
platform so that the company can grow its operations within the locations of UK and all other
functional places. Along with this, it has also contained the information related to marketing
strategies, target consumers and actual expense that will be prepared by Rent a car to achieve
business objectives.
Objectives
 To enhance the market share by 20% through launching their services on digital platform
by end of the financial year.
 To increase brand image of firm through making optimum utilisation of digital marketing
strategies to approach wide range of people.
 To make effective use of social media platform to connect and build strong relationship
with others.
 To meet customers’ expectancy through delivering maximum value to them so that
company can enjoy high profit margin and consumers’ loyalty.
Target Market
Company to achieve their set objectives has planned to segment, position and target their
potential customers in order to make their clients to select the firm rather than going towards

other competitive establishments. Segmentation, targeting and positioning has helped in effectual
planning and implementation of strategies thereby yielding maximum benefits towards the
establishment. Such as:
Segmentation: Rent a car manager has segment people on the basis of demographical,
psychological, geographical and behavioural base. Likewise it has classified on the basis of age,
gender and income of people that is company have their services for all individuals whether men,
women and people belonging to the middle income group. Further, people has been divided on
the basis of their preferences and the place where they live so that target customers can be
identified and strategies can be plan to fulfil their desires.
Targeting: For online services, Rent a car manager has targeted people that are highly concerned
about their health and well being and willing to adopt services according to their needs and
demands (Arave, 2017). Frequent office going as well as young generation is the target
customers of Rent a car as they like to take online services which thus fulfil the basic
requirement of introducing the services on digitised platform which benefits the firm.
Positioning: through digital marketing and usage of different social media platforms the firm has
decided to effectively position its brand image within the market place. Launching the services
on online platform allows the firm to deliver their services at various locations by 24*7 hours.
Thus, such kind of services helped the firm to make the people more and more happy and
satisfied in all means.
Market analysis / Competitors analysis
Company before launching their services on online platform has decided to conduct market
analysis in order to know about the recent facts and figures of original requirements of the
customers according to their preferences. It enables the firm in planning whether a particular
strategy or products and services will be beneficial for their consumers or not so that company
can proceed with the same understanding for gaining maximum benefits.
Political: Frequent changes in government policies harm business performance by enhancing
environmental uncertainty. High political stability provides friendly environment with
predictable market growth trends. High taxation also affects international trade and prevents
exports.

Economic: Growing economies offer wide range of growth opportunities to the firm Enterprise
Rent a car. The GDP growth rate determines the firm’s ability to pursue its long term growth
strategies. The demand and supply decides labour wage rate and supply of skilled people.
Social: Organizational culture derives strong influence from the societal norms, trends and
values. The power distance within any society shows the acceptance of hierarchy and income
inequality. The adventure of social media and e-commerce has encouraged online shopping
behaviour among consumers.
Technological: the development of information and communication technologies has led
towards the adoption of innovative marketing techniques to increase collaboration with
customers. The company have to consider the ongoing technological inventions to stay ahead of
the competition. Although the adoption of new technologies has shortened the lifecycle of the
new product development.
Environmental: Technological advancements have obligated the business organization to adopt
innovative recycling and waste management practices. There is growing trend of using green
products and thus the firm can take it as an opportunity and adopt green business practices to win
the trust of shareholders.
Legal: The data protection of customers has become an important issue because of customer’s
privacy and security. Thus, the Rent a car fulfils all the necessary security requirements with
adoption of proper rules and regulations within their functioning. Apart from this, the intellectual
property regulations are designed to protect that company patents and valuable ideas.
Marketing Mix
Marketing mix are the strategies that has been planned by Enterprise Rent a car to make proper
utilise in order to promote digitisation of services and approach wide range of people so that
company can able to enjoy high amount of profit margin and revenue generation (Gielata, 2017).
Therefore, the marketing mix that will be used by Rent a car firm in order to achieve its end
goals are as follows:
Products: The company has decided to offer their services on the digital platform in order to
approach varied people and huge range of customers into diversified location with adopting
proper strategies so that more and more people are getting attracted towards it.
Price: Enterprise Rent a car is a small business firm so it has plan to offer their services at

reasonable as well as low prices along with offer of various promotional discounts in order to
attract more customers towards their firm and satisfy the desires of the consumers in most
fruitful manner.
Place: Company have its limited operations and offices in offline modes so the firm has decided
to make proper utilisation of online portal in order to expand their business functions all across
the world. Online presence has provided an ease to customers in review its offered services and
make order as per their preferences and convenience thereby make them happy and satisfied.
Promotion: Social media such as Instagram, Facebook and other related social media platforms
has been utilised by the firm to promote its services to other people. Email marketing is also been
used by company to make people aware about existing offers.
Operation
The manager of Rent a car in order to offer online services has decided in advance task and
responsibilities need to be completed by particular individuals. Key actions and activities that
will be taken by the firm to expand their business and thus their growth as well. Information
technology and key performance indicators such as sales volume, profit margin and many other
will be utilised to control and monitor actual performance with appropriate standards. To plan
appropriate strategies that could be used to take correct actions for betterment of the business.
Budget Preparation
Expenses Amount in £
Wages and salaries 3000
Material 4000
Research and development 500
Marketing expense 2500
Electricity bill 600
Other miscellaneous expenses 400
Total £11000
So it is estimated that around £11000 will be required by the firm to implement the business
plan.

Funding Request
Bank Loan
Company in order to get funds for expansion of their business activities on digital platform will
make use of bank loan which is one of the best methods to collect sufficient amount of capital in
order to meet all expenses and lead smooth operations of the business.
Critical evaluation of exit and succession options that are available for business
Business exit strategy contributes their part in planning in advance related to what will
happen so that owner leave its business. Rent a car is small scale organizations that can able to
use different exit strategies to cease down its operations for future circumstances. The pros and
cons of each exiting strategies that could be used by the firm in near future explained below:
Merger: The strategy that could be used by the firm to exit their operations is merger or
acquisition of business that is related to acquiring the firm in order to grow and expand their
business (Gravitt, Landy and Schiffman, 2018). It includes long time as this process requires
agreement for doing merger or acquisition from other establishment.
Pros Cons
 The owner are able to easily negotiate
on terms and conditions related to price
and several other details in context of
merger and acquisition.
 The resources and market of the firm
can be easily expanded as this process
lead in building more assets. Therefore,
company can easily grow its business
operations.
 It is more time consuming,
unsuccessful and expensive procedure
related to exiting strategies. As
company need to involve huge amount
of money and time to merge or acquire
other firm.
 Loss of control over the business and
its various decisions.
Continuing the legacy in the family: There are various small business enterprises that want to
keep their business for long duration so that they are able to pass on future generation to handle
and take decisions for the betterment of the firm. It is an attractive strategy to exit the business as

it contributes in grooming successor over tome which results in effectively handling of stress of
business ownership.
Pros Cons
 The benefit is that the owner does not
loss full control over the business and
share their decisions within the firm.
 The owner has choice to select the
person as next owner of business.
 The family member may not have
sufficient skills and capabilities to run
business effectively.
 There are chances that investors do not
support the individual that gain
ownership.
Recommendation for particular exiting strategy selected by firm
From the above analysis, it has been suggested that Rent a car out of various exiting strategies
can make utilise merger as option because it will help the firm to continue the business for longer
period of time. Moreover, company will able to have more resources, profit margin along with
market share because of merger with other firms that also have certain resources and brand value
in market (Ermakova and Sukhovskaya, 2017). Due to this, the firm will easily able to enter into
new market and expand its operations with a motive to earn high revenue through meeting the
needs of customers in best possible manner. Additionally, the company through making best use
of time and capital can easily able to complete the process of merger and acquisition and provide
maximum benefits to the firm.
CONCLUSION
From the above report it has been concluded that market analysis helps in understanding
current situation and planning future action that could be taken by the firm. It also enables the
firm to understand the firm by making use of market development strategy that can achieve
objectives. Moreover, business plan also helped the company in planning key actions to take
competitive advantages in external environment. At last, it can be concluded that Rent a car by
making use of merger and acquisition exiting strategy they can develop and achieve higher
success in future terms.

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