Growth Opportunities for R Robson (Guinot): An Analysis

This report analyzes the growth opportunities for R Robson (Guinot), a UK-based small-scale company that offers beauty treatment services. It covers key considerations for evaluating growth opportunities, Porter's Generic strategies, PESTLE analysis, Ansoff Model, merits and demerits of potential resources, and a business plan for growth. The report includes strategic objectives and financial information to scale up the business.

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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key considerations for evaluating growth opportunities........................................................3
Ansoff Model..........................................................................................................................5
Merits and Demerits of Potential Resources..........................................................................7
Business Plan..........................................................................................................................8
Exit and Succession Option for small business....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning is thinking about all the tasks and activities that are needed to be fulfilled in
order to achieve organisational goals and objectives (Sarin, 2019). Each enterprise whether
small, medium or large want to have growth and development which can be achieved through
appropriate planning and its implementation. For this, it is very essential for an organisation to
formulate an adequate plan and includes all activities that are beneficial for the success of an
organisation.
R Robson (Guinot) is a UK based small-scale company that offers products and services
for beauty treatment for both men and women. It provides beauty services like hair removal,
facial beauty, sun burn and other effective beauty treatments. This report covers specific
considerations for evaluating growth opportunities for this enterprise and Ansoff model is
applied for this purpose. It also covers benefits and demerits of sources of funding available to
business and a business plan is generated for growth which includes strategic objectives and
financial information to scale up a business. At last, exit and succession options for R Robson
(Guinot) is assessed that explains benefits and drawbacks of each option.
MAIN BODY
Key considerations for evaluating growth opportunities
Growth is the key aspect of each business entity as all activities and tasks are formulated
towards overall growth of an organisation which includes growth in productivity, profitability
and overall success (Hunt and DeVries, 2019). In respect of R Robson (Guinot), it is very
important for this enterprise to grow in order to expand its beauty treatment services and enhance
its market share. The overall growth of this company lies in the hands of quality of services
provided by it.
R Robson (Guinot) aims at achieving growth and for this purpose it requires many
resources that are human, financial, and technical resources that will help in attaining objectives
of this enterprise. It aims at expanding its market share for the purpose of maximising its
profitability and productivity. This will result in achieving competitive advantage of this firm
which is beneficial for its growth. There are various other considerations that should taken by R
Robson (Guinot) which can be briefly explained with the help of Porter's Generic strategies
model and PESTLE analysis.

Porter's Generic strategies
These generic strategies given by Porter is used for describing the way in which
organisation attain competitive advantage in its selected scope of market. There are four
strategies in this model which are cost leadership, differentiation, cost focus and differentiation
focus which can be utilised by R Robson (Guinot) in order to determine its competitive
advantage.
Cost Leadership- It is a strategy that focuses upon achieving competitive advantage and
for this purpose R Robson (Guinot) can utilise this cost leadership strategy. This will help this
organisation to achieve competitive advantage by increasing profits with the help of cost
reduction. It also plays a vital role in enhancing market share by charging its beauty treatment
services at low level (Krumholz and Hexter, 2019). This enterprise can also increase customer
satisfaction by providing services of good quality.
Differentiation Strategy- This strategy focus upon producing unique and innovative
products that are different from its competitors. It can enhance growth of R Robson (Guinot) by
developing such services that are different and innovative in terms of features, support,
durability, and brand image. This will results in enhancing market share and increasing
competitive advantage of a firm.
Cost Focus- This strategy pays more attention upon niche market and develop unique
products and services according to that market. By utilising this strategy, R Robson (Guinot) can
cater needs and demand of its customers.
Differentiation Focus- Under this strategy, company focuses upon developing an
environment which produce products that are unique and creative. This strategy can be utilised
by R Robson (Guinot) by paying attention on provision of latest types of beauty treatment
services to its customers in order to achieve contentment from them.
From all strategies of Porter's generic strategies, the most beneficial strategy for the
growth and success of R Robson (Guinot) is differentiation strategy. This will help this
organisation to gain competitive advantage by producing different and innovative beauty
treatment services which are not provided by its competitors. This will help in attract large
number of customer and enhance market share (McLean, 2019).
PESTLE Analysis

It is an approach that determines and analyse factors of external environment that affects
the performance, profitability and productivity of an organisation (PESTLE ANALYSIS, 2019). It
consists of six factors which are political, economical, environmental, social, legal and
technological forces that has impact over an enterprise. For the purpose of growth of R Robson
(Guinot), this business entity can utilise PESTLE model to know the effectiveness of external
forces upon its growth and opportunity.
Political- These forces determines the level of influence of government upon working of
an organisation. It consists of policies of government, political stability, labour law, foreign trade
policy, tax policy, trade restrictions and environmental law. The political state of United
Kingdom is stable which provides an opportunity to R Robson (Guinot) to maintain its
sustainability for a long duration of time. Moreover, UK government has cut down corporation
tax from 30% to 28% which also increase opportunities for this business entity to enhance its
revenue.
Economical- These factors includes economic growth, customer's disposal income,
inflation, interest, unemployment and exchange rates. The average disposable income of citizens
of United Kingdom is 28,400 pounds which inflates the demand for services of R Robson
(Guinot). This will act as an opportunity for this enterprise to enhance its revenue.
Social- It consists of demographic characteristics, customs, norms and values of current
population along which an enterprise operates its activities. Increase in number of self conscious
people who want to look beautiful has created an opportunity to R Robson (Guinot) to increase
its market share and profitability.
Technological- Such factors consists of innovative and technical ideas prevailing in a
market. UK is a tech country which is influenced by growth in technology and advancements.
This creates opportunities for R Robson (Guinot) to use latest and innovative machines like laser
treatment equipments to reduce scars and marks on body parts. This will aid in achievement of
long term sustainability for entity at marketplace. (Holz-Rau and Scheiner, 2019).
Ansoff Model
Ansoff Matrix can be defined as a tool that is utilised by organisations for planning and
analysing certain strategies for development and growth (Baran, 2019). It shows four strategies
and also ascertain the risk which is associated with each strategy. R Robson (Guinot) can use this

model to identify opportunities prevailing in market for its growth and development. This
approach has four different strategies which are-
Market Penetration- This strategy focuses upon sales of current products and services in
present market which can be done by decreasing cost, increase promotion and distribution
channels, etc. R Robson (Guinot) can utilise both online and offline promotion techniques to
enhance its sales and profitability.
Product Development- This strategy means enhancing sales of a company by developing
and introducing new product in a existing market. This can be done by doing invest in research
an development, maintaining strategic partnership with other companies and by creating a brand
new product that meet customer needs. R Robson (Guinot) can introduce a new beauty treatment
service which attract large number of customers.
Market Development- It means entering into new market with existing products by
catering its products into new customer segment, entering into local market or expanding into
international market. R Robson (Guinot) can make its beauty treatment services available at
international market.
Diversification- It is the riskiest strategy among all strategies that pays attention upon
entering into new market with new product. It requires large amount of funds and resources to
enter into a new market with new set of products. R Robson (Guinot) is a small scale enterprise
with limited financial resources, so it become difficult for this enterprise to do large amount of
expense.
Among all the strategies of Ansoff Model, the most appropriate and proper strategy that
can be utilised by R Robson (Guinot) is product development. This enterprise can introduce new
beauty treatment services like introducing new laser treatment service which will attract large
customers and enhance its market share (Brinckmann and et.al., 2019). This can be proved
beneficial to this organisation as it will give this beauty organisation a touch of medical
treatment. It will help in increase sales of R Robson (Guinot) which will enhance its overall
profitability.
For growing business and increase its profitability and sales, R Robson (Guinot) can
understand its competitive advantage by using pestle analysis and porter's generic strategies. This
organisation can use differentiation focus which can help this enterprise to attain competitive
advantage by producing various innovative beauty treatment services which are not provided by

its competitors. This company can use pestle analysis to determine the impact of external forces
upon its functioning.
R Robson (Guinot) can utilise Ansoff model to identify the strategies it can adopt to
enhance its growth. Each of these strategies has risk associated with it which a firm needed to be
consider before adopting that strategy for expanding its sales. This enterprise can use product
development strategy by introducing new beauty treatment service in target market (Fabos,
2019). This enterprise can utilise product development strategy which helps in enhancing share
of market and its demerit is that it requires a lot of cost while introducing a new product in target
market.
Merits and Demerits of Potential Resources
For achieving growth of an enterprise, R Robson (Guinot) can or can not completely
dependent upon its available resources. So, it is very important for this enterprise to ensure that it
is capable to review specific current alternatives with it at a particular duration of time. Sources
of funds referred to as specific set of alternatives that are available within an enterprise for
facilitating and fulfilling financial resources of an organisation. For the purpose of planning and
growth, it is important for R Robson (Guinot) to make analysation upon present and future needs
and identify merits and demerits of associated with it. For this purpose, R Robson (Guinot)
following given options of financial resources are appropriate for this company.
Sources of finance
(Description)
Merits Demerits
1. Bank loans and Overdrafts-
An overdraft can be defined as
a variable cost of borrowing
that is agreed with a bank up to
a limit set. A loan requires
regular repayment and is a
kind of fixed amount of
borrowing with a set term.
This source of raising financial
resources is flexible as it
provides flexibility to
individuals and it prevents
them to go through bank
restrictions. R Robson
(Guinot) currently have
overdraft facility with the bank
to the tune of £2.0 million and
It is not suitable to those
organisations where large
amount of capital has to be
borrowed.

it is not yet utilised by thus
enterprise. It can utilise it for
expanding its market share.
2. Angel Investors- These
investors helps in providing
back support and help small
enterprises financially.
This financial resource
involves less risk as compared
to other sources of funds. R
Robson (Guinot) can use this
source of finance as before
investing in this enterprise, it
takes deep study of that
business.
It can overtook complete
power of owner of R Robson
(Guinot) as sometimes angel
investors can interfere into the
activities of business.
R Robson (Guinot) can utilise both internal and external sources of raising financial
resources for the purpose of growth of an organisation. External sources of raising funds like
bank loan, bank overdraft and crowd funding is more beneficial for this organisation as
compared to other sources ( Aganbegyan, 2019). R Robson (Guinot) is a beauty treatment
business entity situated in United Kingdom that requires financial resources for the purpose of
growth and development. It can adopt bank overdraft facility that is available with it of £2.0
million which is never utilised. It can also sell few of its available business assets that will
maintain adequate liquidity of the firm.
Business Plan
Business Plan is a document that is prepared with the purpose of growth and development
of business in an appropriate manner. It contains guidelines and steps that are required to
fulfilled by an organisation for smooth functioning of business enterprise. It basically describes
the strategy which a firm is needed to adopt to ensure its overall growth and profitability. R
Robson (Guinot) is introducing new laser treatment service and for this purpose it is preparing an
effective business plan for improving its performance and enhancing its market share. This plan
includes mission, strategic objectives, and financial resources required for this business plan of
product development (Millsap, 2019). SWOT analysis is also utilised by this enterprise to

identify its competitive advantage and opportunities prevailing in market. Business plan for R
Robson (Guinot) is explained in detail as follows-
Background- R Robson (Guinot) is a small scale enterprise that is situated in United
Kingdom and deals with beauty treatment services for both men and women. This business entity
provides various beauty treatment services like permanent hair removal, sun tan removal
treatment, body spa, hair spa, deep cleansing facials, from the knowledgeable beauty therapists
of world. It uses quality products that do not provide any kind of harm to customer's skin. It
provides its services all over United Kingdom at reasonable prices.
Vision- The vision towards which R Robson (Guinot) provides its services is, “ To
become best beauty treatment service provider and well known brand in United Kingdom. ”
This organisation want that people know about its existence and build their trust upon it.
Although it is a small scale entity but it want to grow into a large enterprise by providing quality
services to its clients and enhance its market share (Cronan and et. al., 2019).
Mission- The mission of R Robson (Guinot) is, “ To provide unique and quality beauty
treatment services at reasonable prices.” Towards achieving this objective, this entity is
carrying on its activities by using technical and innovative ideas for bringing improvement in its
services.
Objectives- The objectives towards which R Robson (Guinot) is making this business
plan are-
 To enhance market share up to 5%.
 To maximise profits up to 10% in upcoming one year.
Financial Information- For the purpose of growth and development of every business
entity, it is important for it have adequate resources. R Robson (Guinot) is adding dermatology
service in its beauty treatment services, that is laser treatment for skin and hair. These machines
are very costly since they are available in hospitals only and it will also require a skin and hair
specialist doctor that can properly utilise this machine. Overall, it require large sum of money
and R Robson (Guinot) is a small scale firm. So it is needed to raise funds from financial
resource. The owner of this enterprise currently have £30000 and it requires £200000 more for
introducing new service. For this purpose, it can use £2.0 million overdraft facility which is
already available with it and moreover it can take loan from bank.
Expenses estimation:

Particular (£)
Implementing
technology cost
95000
Promotional expense 30000
Advertisement
expense
75000
Catalogues 10000
Training charges 20000
Total Cost 230000
Cash flow statement: It can be defined as an numerical detailed technique with usage of
which cash outflow or inflow can measured in an appropriate way. It comprises of 3 stages: cash
flow from financial, investing and operating activities.

Cash flow statement maintained above describes that R Robson (Guinot) is in good
financial position and it can easily invest in introduction of new beauty treatment service by
using inside and outside resources. It is depicted that this entity is incurring tax payment each
year and its value of cash in hand for 3 years ending 2015, 2016 and 2017 are $102203,
$200354, $238503. On the contrary, total income of company was around $72001.
n demographic ba
SWOT Analysis
SWOT Analysis can be determined as a approach and framework that is utilised to
identify the internal and external forces that affect functioning and working of an enterprise. It
includes internal forces such as strengths and weaknesses and external forces like opportunities

and threats that affect an organisation (SWOT Analysis, 2019). R Robson (Guinot) can use this
approach to identify competitive advantage of it so that it gives basis to its business plan. The
SWOT analysis of this organisation is explained in detail as follows for determining its
competitive advantage-
Strengths Weaknesses
 R Robson (Guinot) provides excellent
and quality services to its clients which
can act as a strength to this business
entity.
 It has a loyal customer base which can
be considered as a strong point for this
enterprise.
 The beauty treatment services are of
reasonable price which covers all
categories of customers.
 It provides its services to both men and
women which increases its market
share and it uses latest technologies for
conducting its services.
 The first weakness that can be
identified in case of R Robson (Guinot)
is that it has limited market share and it
is not expanded globally.
 It has limited funds and resources
because of which it is not capable
enough to expand its business at global
level. But it is launching new services
which can help in its overall growth.
Opportunities Threats
 R Robson (Guinot) can provide online
booking to its customers by which they
can easily book an appointment for
getting any service.
 It can also offer home service to its
clients.
 There are various beauty treatment
services prevailing in UK market which
is giving tough competition to R
Robson (Guinot). This can be
determined as its threat.
Exit and Succession Option for small business
Business environment plays an vital role for successfully formulating a business
organisation and to meet its overall objectives. There are two options available with R Robson

(Guinot) first is to exit its business entity ann demographic bad second is to grow its business
successfully by using appropriate measures (Felsenstein and Taylor, 2019). There are certain
options for this purpose and each of them has some merits and demerits which can be explained
as follows-
Succession Options Benefits Drawbacks
Merger and Acquisition- It is
basically a consolidation of
organisations. Merger can be
defined as a mixture if two
companies and acquisition
takes place when one business
entity is taken over by another.
If R Robson (Guinot) will
adopt this than it will increase
its overall effectiveness and
profitability.
Employees of R Robson
(Guinot) will take time to
adjust with another company
which can negatively affect
their efficiency and
performance.
Vertical Integration- It can be
determined as an combination
an enterprise of two or more
production stages which is
operated by different
organisations.
It can allow R Robson
(Guinot) in investing in assets
which are highly specialised
and it emphasizes more control
over business.
It has less scale of economy
because its production
processes are of different
levels.
Out of all strategies of succession of a business, the best thing R Robson (Guinot) can do
is to apply succession strategy as it is planning to grow its business. This organisation can invest
in vertical integration with medical sector and use latest medical technology in its beauty
treatment services. It will help in improving quality of services and will attract large number of
customers.
CONCLUSION
From the above report, it has been concluded that growth is essential for every business
organisation to increase its sales and productivity. In Differentiation Focus strategy, company
pays attention on developing an environment which helps in producing products that are unique.
Technological factors in Pestle analysis helps a firm to use innovative ideas and technology to
make its product to meet customers needs. Product Development means to introduce a new

product or service at existing market. For launching new product, a firm can take bank loan if it
has less resources and funds. For effective growth of an organisation, it is significant to
formulate a business plan by using mission, vision and objectives. SWOT Analysis helps a firm
to understand its opportunities and competitive advantage. An enterprise can adopt certain
measures and options for success of a business like it can utilise merger and acquisition strategy
which can increase its productivity and profitability.

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