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

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