Planning for Growth in Newbury News Limited: An Analysis of Growth Strategies and Funding Sources

This article discusses growth planning for Newbury News Limited, including the use of analytical frameworks such as Ansoff growth vector matrix and Porter's generic strategy. It also evaluates potential sources of funding, including bank loans, overdrafts, and angel financing. The article concludes with a discussion of the importance of growth planning for all organizations.

INTRODUCTION
Every organisation is required to prepare the appropriate plan that supports the organisation to
maintain their performance and expand their business in order to improve their productivity and
effectiveness. Planning is the activities which considered as the most influential activity that
support organisation to improve their productivity and efficiency in the Marketplace. There are
different types of business that are operating like start-up micro small medium and large scale
business in every organisation are required to concentrate on preparing an appropriate plan so that
they can get more opportunities. For the purposes of this study, Newbury News Limited is a UK-
based SME that specialises in magazine and newspaper printing and publication. Now, the
organisation wants to grow its business to other areas by coming up with new concepts and
offering additional services, such as book publishing. The major goal of this study is to explore
growth possibilities and how to use the Ansoff growth vector matrix to analyse market growth
prospects and other frameworks to assist the organisation sustain its growth.
Key considerations for evaluating growth opportunities & justify these considerations
There are various types of frameworks are considered by the organisation which can help on
to evaluate the growth of opportunities and also maintain the effectiveness of the company at the
whole market place (Beattie and Haarhoff , 2018). Newbury News Limited wants to expand their
business so that company can appropriately improve their market growth rate and also reach the
large number of customers so that company can improve their sailing process. There are various
frameworks are utilizing by the company which can useful to evaluate the growth of opportunities.
Explanation about the specific frameworks which are considering by the organization are given
below -
Porter's generic strategy
This is considered as the strategic Framework which can useful to measure that how company can
take competitive advantages and improve their position as compared to their rivals. There are four
strategies are involved in this model which are discussed below -
 Cost leadership - This is considered as the specific strategy which are mainly concerned
about the cost that manager set on the specific product and services. The main concern of
the manager is to set low-cost so that company can improve their market share and gain
more responses of the customers. With the help of this strategy company can gain
effectively competitive advantages as compared to their competitors (Dagnino, King and
Tienari, 2017).
 Differentiation - This is also considered as the most appropriate strategy which can
obtain the high growth level because company can offer innovative products and services
to their customers. This strategy need high level of market share in order to maintain the
requirement of the customers.Newbury News Limited company mainly utilize this
strategy in order to attract the large number of customers.
 Cost focus - This strategy is all about concentrate on the cost of the product and services which
are offering by the organization. The main concern of the strategy is to target niche market so that
company can provide appropriately low cost product to the local people. With the help of this
strategy, Newbury News Limited can appropriately capture the entire market through lower cost
structure.
 Differentiation focus - The prime motive of this strategy is to focus on the differentiation of the
product and services and also determine some unique features which can improve the
effectiveness of the products. Newbury News Limited can focus on brand loyalty so that
company can take a level of competitive advantages with their innovative goods and services
(Deng, Ma and Zhang, 2017).
On the basis of this model it can be determined that cost focus strategy is more convenient for the
Newbury News Limited and also helpful to gain the more attention of the customer so that company can
effectively take their competitive advantages.
PEST Analysis
This analysis is also known as the macro business environmental factor analysis which can useful to
identify the outside and external business environment and situations. There are various factors considered
which can identify the external market situation of the company. Explanation of these factors are given
below -
 Political Factor - This factor mainly concerned about the taxation policy, trade regulations,
foreign trade policies and many other factors. Newbury News Limited is wanted to expand their
business operations so it is necessary for the company to analyze the external factors impact on
the business. Company need to maintain their political stability factor in order to successful
business expansion (Di Tommaso, et. al., 2019).
Unit – 42 Planning For Growth ( Task 1and Task 2 )

 Economical Factor - This factor is incorporated with economic growth level,
employment rate, inflation and reception. Due to the uncertainty of the covid-19
pandemic and also Brexit, the overall market situation of the company fluctuated
adversely. In order to maintain their business expansion process and get it is a growth
opportunity company need to adopt competitive pricing strategy to maintain their
market position.
 Social Factor - cross cultural activities, age, gender, income, educational background,
buying behavior of the customer, purchasing power of the customers are considered by
the organization in order to maintain their business admission process (Friedmann,
2020).
 Technological Factor - This factor is appropriately concerned about the high level of
technologies, technological error, and modification of technology. As per to improve
their market growth rate and again appropriate growth opportunity, company need to
adopt high level of technology.
Evaluate the opportunities for growth applying Ansoff growth vector material
In order to identify specific growth of opportunity, most of the companies utilize ansoff
growth model. This model incorporated with 4 growth strategies which are define in context of
Newbury News Limited which are as follows -
 Market penetration - This growth strategy is mainly concerned about the introducing
existing products in the existing market so that company can appropriately achieve the
high market growth rate and also high level of market share.
 Product development - This strategy mainly concerned about to introduce new
product into the existing market place. This is quite convenient for the company
because company is familiar with the customers and also already understands their
requirements (García, Ruiz and Sanabria, 2020).
 Market development - The prime motive of this growth strategy is to launching existing products into
the totally new market so that company can appropriately connect with the large number of customers
and improve their sales process. In context of Newbury News Limited organization, company wants
to expand their business in various locations so this growth strategy is more convenient for the
company in order to analyze their growth level.
 Diversification: - This strategy is also useful to introduce the new products to the new customers. In
this strategy product and customers totally new so this is it is very risky for the companies and it
require use investment for business expansion.
M1 Discuss the options for growth using a range of analytical frameworks
There are various options for growth is available which can determine the development of the organization. In
order to completion of this study, there are various analytical frameworks are utilized as an options for the
growth such as porter's generic model, pestle analysis and ansoff analysis. With the help of these frameworks
company can appropriately evaluate their growth opportunities and maintain their business expansion process
(Gumel, 2019).
D1 Critically evaluate specific options and pathways for growth
There are specific growth options are considered by the company which can be useful to improve the
effectiveness of the organization. With the help of small scale research, company can identify the exact
requirement of their customers and apply ansoff matrix and considered market development growth strategy in
order to maintain their business expansion plan. Without this Framework it is very difficult to identify the
market situation and determine the market growth rate of the company.
Unit – 42 Planning For Growth ( Task 1and Task 2 )

M2 Evaluate potential sources of funding
As previously said, there are a variety of funding sources that are necessary for the organization's
growth. In the context of Newbury news, it is estimated that bank loan is the primary source of funding. The
main reason for choosing this source of funding is that it provides flexibility, as organisations can take bank loans
with low interest rates and use them for both short and long-term purposes, making it the most suitable source for
the organisation.
D2Critically evaluate potential sources of funding with justified argument
Businesses require money from a variety of sources in order to maintain financial stability and function
successfully. There are a variety of finance options available, including bank loans, overdrafts, and angel
investment. All sources are advantageous to the company and give the finest services possible. Every source has
advantages and disadvantages; therefore after weighing all of these factors, it is clear that a bank loan would be
the ideal source of funding for Newbury news companies.
CONCLUSION
According to the findings of this research, growth planning is critical for all organisations, whether small or
large. The purpose of this research was to identify development prospects for the company. Marketing
environment analysis, porters force model, ansoff models, and BCG matrix are analytical frameworks that
may help to assess the overall market condition and give numerous growth possibilities. This paper also
covered several forms of funding options, such as bank loans, overdraft bands, and angel financing. This
paper also covered several forms of funding options, such as bank loans, overdraft bands, and angel
financing. This research also identified the relevant structure of a business plan and determined the
business plan. Finally, this study discovered that mergers and acquisitions are the most effective departure
options.
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during a pandemic: COVID-19 growth rates, supply chain disruptions, and governmental
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Sources of funding available to businesses & benefits and drawbacks of each source
Every firm needs a particular amount of capital in order to conduct their operations efficiently.
Funding is a type of financial agreement that can assist in the funding of business activities that
are necessary for long-term success. It has been determined that the organisation need £300,000
for commercial development, but only has £20000 on hand. As a result, Newbury News is trying
to gather funds from a variety of sources, as detailed below:
Bank loan - This is the most common method of raising funds, and it is used by the majority of
businesses. Every business can borrow a large sum of money, which must be repaid with interest
determined by the bank. Long-term and short-term bank loans are both available. The Newbury
News benefits from this type of funding since they get cash at a fixed rate of interest.
 Benefits- If finance and banks supply it with a set interest rate that the business can
repay in the future; this is one of the finest sources. Organizations can take out loans
based on their requirements.
 Drawback: The primary drawbacks of this source are that loans are usually provided
against a security or an asset that may be taken away from the borrower if payment is
not made.
Overdraft - This is a type of arrangement between customers' financial institution in which the
bank can increase their customers' credit limit, allowing them to take out their maximum amount.
 Benefits - This is regarded as a flexible source of financial resources, since anybody
may borrow as needed at any moment, which is less expensive than a loan. The source
of cash may be arranged fairly quickly.
Angel financing - This is another very significant type of funding, in which people can invest in
organisations in exchange for an equal stake. Angel investors also assist the organisation by
providing particular counsel and recommendations.
 Benefits - The major advantage of this source is that it allows organisations to have
access to particular information as well as contract with investors and funds.
 Drawback: The primary drawback is that the organisation has to give up its shares to
the investors.
All of the forms of funding are useful and necessary for the organisation, but based on the
discussion above, it is determined that a bank loan would be the most advantageous source of
funding for the Newbury News. Organizations can generate cash by taking out a bank loan, which
is both safe and easy for them because banks offer loans at low interest rates.
Unit – 42 Planning For Growth ( Task 1 and Task 2 )