Planning for Growth in Enterprise Rent-A-Car: Evaluation of Growth Opportunities, Ansoff Growth Matrix, Funding Sources, Business Plan and Exit Options

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Evaluation of growth opportunities by analysing key considerations...............................1
P2 Evaluating Ansoff growth matrix......................................................................................4
M1 Discussing growth options for having understanding of competitive advantage...........5
P3 Evaluating sources of funding with its benefits and drawbacks.......................................5
M2 Evaluation of potential sources of funding .....................................................................6
P4 Designing business plan for growth..................................................................................6
M3 Detailed business plan is developed for growth and securing investment, setting out
strategic objectives, ...............................................................................................................9
P5 Assessing exit or succession options for a small business with benefits and drawbacks 9
M4 Evaluating exit or succession options for a small business by comparison and contrasting
the options ...........................................................................................................................10
CONCLUSION..............................................................................................................................10
References:.....................................................................................................................................12

INTRODUCTION
The growth for planning helps in assessing the organization performance and key areas of
opportunity are known which helps in future expansion. The growth planning is an strategic
activity of business that enables owners to plan and tracks their growth in revenue. The
organisation has the opportunity to allocate resources in the effective way for adopting changes.
The current state of business is known with the help of growth plan also assist in setting targets,
business goals. The strategic planning is important for the economy growth as the business
vision is prepared for future and leads to achievement of business growth (Amr, A.A., 2020 ).
The tactics and strategies are involved in growth plan for generating revenue and customers
which also shows the customers value. The selected organisation is Enterprise Rent-A-Car which
is established by Jack Taylor in 1957 in Missouri,USA. The report covers key considerations of
business such as porters generic, Ansoff matrix and PESTEL for examination of growth
opportunities. Moreover, it discusses the funding sources and business plan is made which
elaborates the exit or succession planning.
MAIN BODY
P1 Evaluation of growth opportunities by analysing key considerations
With the emerging of new technology the small organisation wants expansion so that
several opportunities can be gain and competitive advantage can be achieved. In the context to
Enterprise Rent-A-Car several models are used for having expansion of business and market
growth of business can be enhanced.
Competitive advantage- In marketplace competition assists organisation to have growth
by conducting business in innovative manner. By focusing on local rentals in large number it
developed several tools and assets. The Enterprise Rent-A-Car identifies the needs and
requirements of consumer and having more than 6000 rental locations. It also provides solutions
to families and customers. To attain competitive advantage it focuses on resources, capabilities
and competencies with the application of several models (Armaghani, S and et.al., 2020).
Porter's Generic strategy
In 1980 this model was developed which enhances competitive benefit of organisation by
selecting appropriate strategies from cost leadership, differentiation and focus.
1

 Cost leadership strategy- To have competitive benefit the cost is down in consumer
market. To expand the market share the Enterprise Rent-A-Car targets middle class
which creates large market mix of consumers. To increase brand awareness and sales
growth the company focuses on low-priced and easy approachable of produce. The
strategy offers advantage of expanded customer base, brand recognition.
 Differentiation strategy- The growth objectives are attain by using this strategy as the
Enterprise Rent-A-Car focus on exclusive product feature for expanding customer base.
In the consumer mind strong brand image is created by using of brand logo. With the
help of innovation the Enterprise Rent-A-Car can differentiate services (Bekun, F.V and
et.al., 2019).
 Focus strategy- By serving to particular market segment the company is encouraged to
focus on resources. This strategy is adopt by Enterprise Rent-A-Car which offers best
vale and in terms of low cost. The requirements of niche market segment is function at
lower price. The company also focusing on product attributes by making alternation in
product for satisfying customer expectations.
PESTEL Analysis
The external forces of environment is identified by Enterprise Rent-A-Car which is used
by management tool and strategic planning for having support in decision making and leveraging
core capabilities & competencies.
 Political factor- The Enterprise Rent-A-Car is a affected by several factors such as tax
policy, change in policies, trade restrictions, government system etc. With the increase in
taxation the company expenses are increased. The Enterprise Rent-A-Car gets
government support and its success & failure is observed by commercial restrictions and
political stability.
 Economic factor- It involves the factors of labour market conditions, inflation, interest
rate which affects the growth of Enterprise Rent-A-Car. The inflation changes the
purchasing power of consumer which impacts on cost of raw material and inputs. The
company has high sales with high GDP which increases disposable income (Calvo, N and
et.al., 2018).
 Social factor- It is related to the factors of consumer spending pattern, power structure,
demographic trends etc. the buyer structure is influence and social pattern is linked with
2

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