Growth Opportunities for Chris Lewis Fire and Security

Workflow

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key Consideration for the Evaluation of Growth Opportunities............................................3
Applying Ansoff's Growth Vector Matrix for Evaluating the Opportunities for Growth......5
Potential Sources of Funding along with Benefits and Drawbacks.......................................7
Business Plan for The Growth and Securing Investments.....................................................9
Exit or Succession Plans for Small Businesses....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth is an activity which is related to strategic businesses. It helps the
owners of the business to plan and track the growth of revenues. A business will not fail or
succeed based on information inculcated in growth plan (Bell and Bearden, 2014). The growth
plan will only help the small medium enterprises to become more successful using a focused
planning for growth. A business plan helps the small business owners as a guide which provide
detailed step to step plan for how the company can achieve the desired goals and objectives. The
company taken under consideration for this report is “Chris Lewis Fire and Security”. Chris
Lewis Fire and Security is leader in providing fire and security solutions in an innovative way for
domestic and commercial premises in Oxford, West London and surrounding areas in UK. The
purpose of the report is to analyse the growth opportunities for the organisation using the Porter's
generic strategies, PESTLE analysis, Ansoff's growth matrix. A business plan for growth has
also been prepared for the Lewis Fire and Security system as a growth option.
MAIN BODY
Key Consideration for the Evaluation of Growth Opportunities
A competitive advantage is a favourable condition wherein an organisation can make
their products or services superior to all of the other choices available to the customers. Lewis
Fire & Security can use the Porter's Generic Strategies to attain the competitive advantage
because these strategies can be applicable to products or services in all the industries of all the
sizes. These generic strategies can create a opportunities for growth in the organisation.
Porter's Generic Competitive Strategies
These strategies states that there are two types of competitive advantage combined with
the competitive scope of activities for which the companies can aim to achieve. The
differentiation and cost leadership strategies seeks advantages in a broad range of market and
differentiation focus and cost focus strategies are adopted in narrow market (Biech, 2019). The
different generic strategies that Lewis Fire & Security can adopt to grow and gain the
competitive advantages are mentioned below:
1. Cost Leadership Strategy : In a Cost Leadership strategy, organisation aims to become
the lowest cost producer who targets the broad market. This implies supplying the
products in a more cost effective way than that of competitors and also being consistent

with the quality of their products and services. If Lewis Fire & Security adopts cost
leadership strategy then they will be able to act as an effective entry barrier for other
potential entrants who will not be able to offer the fire and security products at a much
lower price.
2. Differentiation Strategy : A differentiation strategy refers to the development of product
or service that would offer the unique set of attributes that are valued by the customers.
Under this strategy, company selects one or more attributes that many buyers in the
industry perceive as important and try to position themselves uniquely in order to meet
those needs (Burns and Dewhurst, 2016). For this differentiation company can even
charge premium price from their customers which will also help them in creating the
perception in customer's mind that their product has higher value that other competing
products. If Lewis Fire and Security aims to invest in various IT system and sophisticated
tools to integrate fire and security installations uniquely then they will be able to charge
premium prices for their IP based products from the customers.
3. Cost Focus Strategy: Companies using the focus strategy, concentrates on targeting a
niche market by carefully understanding the unique needs of customers within it. If Lewis
Fire and Security will use this strategy, then they will be able to generate more capital for
their firm for future growth and expansion.
4. Differentiation Focus Strategy : A cost differentiation strategy refers to offering of
differentiated product or a service to a particular segment. A narrow market is targeted
because it might be unattractive to outside that group. If Lewis Fire and Security system
focuses on unique offerings to outperform from its rivals in a small segment, then they
will be able to gain competitive advantage in the particular segment.
PESTEL Analysis to Analyse the External Environment
PESTEL Analysis is a framework for analysing and monitoring the macro factors which
impacts the working of the organisation. Organisations that monitor and respond to the changes
in the macro environment successfully will be able to differentiate them from the competition
and create a competitive advantage. It is a strategic tool for understanding market growth or
decline, business position, potentials and direction for operations. The elements of PESTLE
analysis includes: