Planning for Growth: Key Circumstances and Strategies

This article discusses the key circumstances for analyzing growth possibility and the strategies for achieving future growth and success. It explores the Ansoff Matrix and different sources of funding for small businesses. The article also includes a PESTLE analysis and discusses the benefits and drawbacks of using different sources of funding.

Introduction
Planning is defined as the process in which it is used by the organisation for achieving the
desired goals and objectives in a particular course of action. It plans to develop the strategies for
attaining the competitive edge in the market. It involves the planning which could accomplish
the highest growth for the development of the organisational objectives. It enables the available
resources for achieving the goals in a proper time manner(Wu 2015). The main aim and
objectives of the companies is to maximize the profitability in order to gain the higher returns in
the future. In context to KPMG, it is a consulting firm which helps in providing the various
services in training, strategic planning and product verification for the growth of the company. In
addition to this, it also helps in giving the advices to SMEs in order to grow the market
efficiently. It provides the further growth opportunities to recognize the factors which are
included within the organisation. Hence, it it also involves the Ansoff Matrix which is described
in the report. However, it also includes the various types of funds along with their benefits and
drawbacks. In small enterprises several planning for the business are involved to meet the
strategies for the growth.
TASK 1
Determine key circumstances for analysing growth possibility along with respective structure
The main purpose of every organisation is to maximise profit in order to achieve high
growth within a given time period. Generally, the management team of business organisation is
to emphasised on offering innovative and new goods and services at affordable price. In present
scenario, technology plays a very importance role in order to gain profit within the organisation.
So it is essential for business organisation to use new and innovative technology in order to
achieve competitive advantage over rival firms(Keough 2015). The company must offer unique
and innovative product and services for achieving future success and growth of the company. In
discourse to KPMG, the supervisor emphasised on offering different type of services such as
training, strategic planning, auditing and product presentation for attaining future growth and
success of company. It is essential for manager to develop effectual plan of action that will help
them for the survival of business in the market for a longer period of time. In order to develop
efficacious plan of action , the company used Porter generic model that includes different
strategies such as Cost differentiation, leadership and focus. The effective strategies and plan of
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action used by organisation based on their utility and trading operations. In assistance of this, the
supervisor of KPMG used PESTLE analyses to know the impact of uncontrollable element on
the productivity and profitability of company. The Porter Generic Strategies in respect of
KPMG which is mentioned below:
Porter Generic Strategies:
The main purpose of company is to achieve a competitive advantage over their rival
firms in the market so that they can achieve a momentum in the specific industry. The company
used Porter generic strategies that assists in accomplishing competitive benefits over rival
firms(Lambert and Oatley 2017). There are various type of strategies that helps in accelerating
profit and sales of the company which is mentioned below:
Cost Leadership:This strategy helps the company to provide quality products to its
customer at affordable price. In reference to KPMG, the supervisor adopted this strategy for
offering quality products at low price. They emphasised on offering new and innovative products
to its customer at lower price.
Differentiation: Herein, the supervisor emphasised on providing innovative and unique
product to its customer in order to achieve competitive advantage over rival firms. In addition to
this, the manager of KPMG focuses on attracting customer for expanding sales and profit of the
company in suitable manner.
Cost Focus: In this strategy, the company analyses the needs and wants of consumer in
order to satisfying them. They offer a quality products and services at lower price for increasing
sales of the company. In discourse to KPMG, the supervisor used this strategy in order to attract
customer for accelerating sales and profit of the company (Wynn 2017).
Differentiation Focus: Hereby, the company emphasised on build a specific and unique
products in order to attract customer for accelerating sales and profit level. In reference to
KPMG, this strategy assists company to increase goodwill and reputation of company. The
supervisor emphasised on differentiate their product from rival firms in order to increase brand
image of company.
From the above mentioned strategies, it has been examined that KPMG adopt
Differentiation strategy which assists company in order to achieve competitive advantage over
rival firms. The main purpose is to accelerate productivity as well as profitability of the
company.
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PESTLE ANALYSIS
It is considered as the various factors which is used to identify the impact of external
factors while the organisation is continuously performing in a proper manner. This analysis
describes as the environmental scanning in order to perform the strategies of the business. Pestle
analysis includes political, economical, social, technological and legal factors of the
organisation(Plotnikov and et. al., 2015). This enables the company to make the policies and
plans which could helps them to attain the competitive advancement throughout the organisation.
Political Factors: These factors includes the government policies, political stability,
corruption, foreign trade and tax policy of each country. Furthermore, it provides the great
impact on the national education system and health regulations. The prime minister of UK Boris
Johnson execute the foreign tax policies which they uses the liberalisation policy that political
factors are in the indulgent condition of the KPMG company. This factor is also affected by
increasing the value added tax on the products of the company.
Economical factors: These factors refers to the impact on the economy of the overall
performance of the organisation. This factor involves the inflation rate, economic growth rate,
GDP rate etc. In UK the KPMG company could effect on the unfavourable economic condition
due to the recession in 2008 which lead to the decrease in the profitability rate. The present
inflation rate increase to 1.5 to 3%. The company is incapable to explore in the market in order to
increase in the high interest rate.
Social Factors: The social factors includes the demographic factors of the organisation.
This factor could affect the business which involves the educational level, buying habits and
religion. It would determine the customer tastes and preferences according to their demands in
the organisation. With reference to KPMG consulting company they provide the better services
to their customers which is necessary for them to set their present demand. The company have to
develop the strategies which could attract the customers that consists of the different age and
religion (Siedentop, Fina and Krehl 2016). Furthermore, it also provides the services of
travelling, auditing. In addition to this, it involves the foreign customers like from America and
Russia. This could results in the policies of the company for better impact through social factors.
Technological Factors: These factors are described as the decision regarding the origin
of the organisation. It involves the existence and the availability through the development of the
various technologies. This factor is depends on the overall performance of the business. In
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context to KPMG this company uses the technological advancement techniques for providing the
best services to its customers for enhancing the profitability and productivity level. In addition to
this, London also helps in providing the innovative technologies to its clients.
Environmental Factors: These factors determines the climate, ecological, weather and
nature of each and every country. This could affect the industries which includes the tourism,
agriculture and insurance (Sarin 2019). The KPMG company uses the products which are
environmental friendly and are not harmful that are provided for the customers. This company
makes the techniques for the healthy environment.
Legal Factors: These factors are included as the legal laws, honourable rules and
regulations. With reference to KPMG consulting company it would works for the country, In
England it is based on their laws who pays the taxes and approved by the social responsibility in
order to increase the social welfare.
The benefits and limitation of using Source of Funding.
Finance plays a very important role in order to run operations efficaciously and
smoothly. All company need money to execute its business functions in a suitable manner in
order to accomplish objective of company within a given time period. There is a need of fund
for administrating business activities such as technical and operational in an effective manner. In
reference to KPMG, it has been examined that SMEs can raise its monetary fund considering
internal and external factor in order to increase their business activities in appropriate manner.
The various sources of fund that helps SMEs to enhance fund for business operations which is
mentioned below:
Bank Loan: It is one of the most popular source of raising money for the business
organisation. Bank give both long term and short term loan to the owner of any company. In
return, they impose interest charges according to the company policies and procedure. In
assistance of this,Banks take security from the proprietor of company for providing loan to them
(Zhou and et. al., 2017). SMEs can enhance money through bank loan for executing the business
functions. SMEs can also refund principal amount with interest rate within stipulated time period
in small instalments. The benefit and drawback of using bank loan as a source of fund which is
given below:
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Benefits:It is a kind of secured loan where a bank grant loan to companies in return they
repay principal amount with interest rate within stipulated period of time in small investment. It
assists in enhancing the future success and growth of the company.
Drawbacks: The disadvantage of using bank loan is it charges high rate of interest that
reduce profit and sales of the company. It is highly risky when company fails to repay loan
within a given time period.
Venture Capital : The Venture capital provide finance to small companies as well as
new start-ups so that they can execute its business activities in appropriate manner in order to
survive for longer period of time in the marketplace. The Benefits and drawbacks of using
venture capital as a source of fund which is mentioned below:
Benefits: The Venture Capital provide finance to small companies that helps them to
operate its business function in order to achieve future success and growth in the market. They
offer fund to the new start-up to implement their business activity in suitable manner.
Drawbacks: One of the drawback of using Venture Capital as a source of fund is that
small company is totally depend on investor to invest for growth and development of the
company. Apart from this, Small company losses its control on business functions because
venture capitalist have a right to control the activities of the business organisation (Wey 2015).
From the above mentioned source of funding help small business in providing money for
the implementation of business activities in an appropriate manner. It has been analysed that
bank loan is considered as the effectual source of financing which fulfil the need of small
business in suitable manner.
Sources of Funding with their benefits & drawbacks.
Finance plays a very important role in order to run operations efficaciously and
smoothly. All company need money to execute its business functions in a suitable manner in
order to accomplish objective of company within a given time period. There is a need of fund
for administrating business activities such as technical and operational in an effective manner. In
reference to KPMG, it has been examined that SMEs can raise its monetary fund considering
internal and external factor in order to increase their business activities in appropriate manner.
The various sources of fund that helps SMEs to enhance fund for business operations which is
mentioned below:
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Bank Loan: It is one of the most popular source of raising money for the business
organisation. Bank give both long term and short term loan to the owner of any company. In
return, they impose interest charges according to the company policies and procedure. In
assistance of this,Banks take security from the proprietor of company for providing loan to
them. SMEs can enhance money through bank loan for executing the business functions. SMEs
can also refund principal amount with interest rate within stipulated time period in small
instalments. The benefit and drawback of using bank loan as a source of fund which is given
below:
Benefits:It is a kind of secured loan where a bank grant loan to companies in return they
repay principal amount with interest rate within stipulated period of time in small investment. It
assists in enhancing the future success and growth of the company.
Drawbacks: The disadvantage of using bank loan is it charges high rate of interest that
reduce profit and sales of the company. It is highly risky when company fails to repay loan
within a given time period.
Venture Capital : The Venture capital provide finance to small companies as well as
new start-ups so that they can execute its business activities in appropriate manner in order to
survive for longer period of time in the marketplace (Birkin, Clarke and Clarke 2017). The
Benefits and drawbacks of using venture capital as a source of fund which is mentioned below:
Benefits: The Venture Capital provide finance to small companies that helps them to
operate its business function in order to achieve future success and growth in the market.
Drawbacks: One of the drawback of using Venture Capital as a source of fund is that
small company is totally depend on investor to invest for growth and development of the
company. Apart from this, Small company losses its control on business functions because
venture capitalist have a right to control the activities of the business organisation.
From the above mentioned source of funding help small business in providing money for
the implementation of business activities in an appropriate manner. It has been analysed that
bank loan is considered as the effectual source of financing which fulfil the need of small
business in suitable manner.
Ansoff Matrix
It is a tool and technique which provides the organisation to set the performed plan and
strategies for the future growth of the organisation. It is described as the market expansion and
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the product which lead to the grow the business. It includes four strategies which helps the
company to analyse the risk which is further not estimated (Crow 2015).This Ansoff matrix is
named from the Russian American Igor Ansoff who is a mathematician and also a business
manager. Various strategies are involved in the Ansoff Matrix are product development, market
development, market penetration and diversification. Further, it also helps in the business for the
innovative and productive development of the organisation. With reference to KPMG consulting
company, the SMEs companies are developing their skills and knowledge in order to estimate
the market course of action. It could achieve the highest growth for the development of the
various strategies.
The strategies are described as under:
Market Penetration: This strategy referred to as the businesses which includes the
existing product in the existing market. The main aim of this strategy is to raise sales in such a
way to increase its market share of the company. In addition to this, various companies provides
their products at low costs in order to attract more customers for their increase in the sales.
Furthermore, for reaching more customers the company could advertise and promote the
products that lead to increase in the profitability and productivity.
Market Development: This strategy describes the business which should involves the
offering of the existing product in the new market. It includes the highest risk because if the
same product is already available in the market then the verification should be done for the
differentiation of the product, that leads to increase in sales. SMEs companies could enter in the
cities of UK which enhance the customer base of the company. For promoting the product
various methods are involved such as advertising, social media which attracts the people for the
particular brand.
Product Development: This strategy refers to as the company which should offer the
new product and services within the existing(same) market. In addition to this, if the market
wants to develop the new innovative products, it should build the certain strategies and plans for
attracting more customers to buy that product (Piro 2016). SMEs could choose this strategy for
the development of the new products and services that increases the market share of the
company. However, the overall contribution of this strategy could assess to create the
competitive advancement in the market.
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Diversification: This type of strategy should offers the new products within the new
market for the growth of the company. When the new market is entered the company could
examine the needs of the customers so that the new product is easily carry in the market for a
long period. This strategy also involves the high risk in such a way that they have no knowledge
about the new market trends. (Gunder and Hillier 2016).Some of the SMEs companies should
not adopt this strategy because it may get negative effects on the market.
TASK 2
Business Plan
Business Plan signifies all plans, strategies, ideas, policies as well as procedure in order
to accomplish goal and objectives of the organisation (Whelpton, Campbell and Patterson 2015).
In addition to this, Business plan is adopted by the supervisor of an organisation which gives
guidelines for taking a decision regarding the execution and implementation of business
activities.
Executive Summary: Companies emphasised on modifying and altering their goods and
services in order to expand the business operations. It is important for the company to provide
new and innovative products to the customer that assists them in satisfying them. In assistance to
this, it is essential to assess the need and want of consumer in order to achieve goal and objective
of the organisation. Thus organisation provide new and innovative goods and services to
customer at affordable price in the marketplace.
Vision: “To provide superior quality product and services to customer in order to
achieve competitive advantage over rival firms.”
Mission: “To provide new and innovative products to customer in order to change their
lifestyle. The company offer unique products that helps them in satisfying the customers and
retaining them for a longer period of time.”
Situational Analysis:In order to assess the opportunity, strength, weakness and threat in
marketplace in order to identify the external and internal factor of the company. In context of
KPMG, the supervisor adopt SWOT analyse to assess the external and internal environmental
factor which is given below.
SWOT technique of KPMG:
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Strength Weakness
 The manager of KPMG company
emphasised on recruiting highly
proficient and skilled person in order to
achieve competitive advantage over
rival firms.
 KPMG company offer high quality
products and services to its customer in
order to expand brand image and
reputation level.
 Herein, the company identify the need
and preferences of customer for
satisfying them as well as retaining
them for a longer period of time(Albert
2017).
 The price of products and services
charged by company is extremely high
as they offer quality product to their
customer thus it results in decreasing
profit of the company.
 KPMG cover limited market area
results in reducing market share of the
company.
 The strategy and policies followed by
KPMG company is not too much
effective that result in reducing future
success and growth of the company.
Opportunity Threat
 Due to positive economic
environment KPMG have an
opportunity to accelerate their business
organisation at global level.
 Herein, the company have highly
proficient personnel that helps them in
providing new and innovative product
to expand business all over the world.
 It is difficult for the firm to invest in
new and innovative projects due to
increase in inflation rate.
 It is simple for organisations to take
entry in a firm who provide
consultancy services to its customer
but it also increases competition over
the rival firms
STP Approach : STP refers to the Segmentation, Targeting and positioning of product that used
in marketing. The manager of KPMG adopted this theory for achieving a leading position in the
international market(Grant 2017). Most of the business used this model to develop as well as
formulate its marketing plan of action.
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Segmentation: In this approach the supervisor of company assess marketplace in which
they offers their goods and services to its customers. It is important for the company to consider
market segmentation before taking a decision regarding innovation of new products. Market
segmentation is depend upon demographical, geographical, behavioural and psycho-graphical
factor of the country(Arku, Yeboah and Nyantakyi-Frimpong 2016). KPMG company segment
their market according to the services provided by them such they offer consultancy services to
its adult customers as well as travelling services to the customer at global level.
Targeting: Herein, the company target particular area in order to attract customer for
purchasing its products. They build business strategies, policies and procedure to attract their
target customer for purchasing their product. In context of KPMG, the supervisor emphasised on
making an effective strategies and policies in order to attract their target customer. In assistance
of this, they offer new and innovative services to impress the customer.
Positioning:This is the final approach of STP model. In this stage the company
emphasised on providing a unique and specific product that build a good image in the mind of
customer. They can build different strategies, policies and procedures in order to attract customer
for buying the product. In reference to KPMG, the manager emphasised on making an effective
promotional strategies to create a brand image in the mind of customer. This company use
different promotional tools such as advertising, sales promotion and Publicity in order to
influence its customer for buying product. It assists the company to built a good brand image in
the marketplace(Suomalainen and Xu 2016). The main purpose of every business is to attract the
customer for purchasing product for maximising sales and profitability level.
TASK 3
Assessing exit and succession options for small businesses with their advantages & drawbacks.
Merger and Acquisition: Small business utilize merger and acquisition in order to wind
up the business. Merger refers to such company which involves the two entities to wind-up with
the mutual consent to form the other new company. Further, it is described as the combination of
the companies which lead to the financial transactions of the assets. In addition to this, they carry
somewhat different meanings of the companies. This could includes the two firms which are of
same size and same market share which leads to the increasing in sales tgrough effectively and
efficiently. Acquisition is a strategy which includes the company that is turned into the another
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company in such a way to explore the business and increase in their fiscal abilities. The
acquiring company does not change their name of existing firm which enables the dissolution of
the small company into the larger company. It is termed as the one company buys the other
company within its activities. Moreover, the buying of the company depends upon the
understanding and the mutually agreed of both the entities. The overall resulting in the inter
relation of the two companies vary when the merger and acquisition arises. The companies got
the partnership within the business organisations on the basis of their combination with the other
company(Rodwin 2017). It permits the venture for the growing and the decreasing level
according to the changes in the business and competitive level.
Benefits of Merger and Acquisition
The following are the benefits of this strategy which are described as:
 It helps in increasing the capital of the small scale business because it includes the
combinations of the two firms.
 It also helps in enlarge the portfolio in such a way to reduce the risks factor.
 It provides the tax advantage and various schemes from the government authority.
 It involves new abilities for the workplace which are offered within the new market.
 When the company merges within the another company it produces the products on large
scale in order to decrease in their cost price that helps to increase their efficiency level.
 It further helps in accessing the skilful workers. For instance, if the company has started
its business in Dubai that take over to another business that give the advantage of the
English speaking employees because there are many workers who spoke the good
English.(Wilson 2019).
Drawbacks of merger and acquisition:
 Company lead to large scale in the overall business and takes the advantage of the new
monopoly in the market.
 There are many conflicts which are arising due to the merging of the two companies.
 This involves the higher prices which in turn access the less competition and the largest
market share.
 When the two companies merge it increases the dis economies of scale where the cost is
increased.
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Liquidation: It is defined as the process in which the winding up of the organisation
through selling the assets. A company completely ends its activities and operations and it
becomes to the unprofitable. It is termed as the assets which is transferred into the cash. The
assets and property of the company are diversified. It refers to the technical dissolution of the
liquidation(Hassan 2017).
Benefits of liquidation strategy are described as under:
 The managers of the company has no liability after the process of the liquidation.
 Due to the liquidation, the governments are disclosed all the legal actions.
 No extra charges of the tax payable by the company.
 If the company has taken the lease then this could not be able to pay that amount of lease.
 No more debts are occurred in the liquidation process.
 The assets of the company are sold within this process.
Drawbacks:
 Managers of the organisation should have to pay the liability from their earnings.
 Companies of the goodwill would decreases after the process of the liquidation.
 Teams of the company may got lost from the productive workplace.
 Manager of the company have to pay the loan accounts.
 Some of the payments could remain pending.
 The valuable assets got lost due to the process of liquidation.
KPMG uses the strategy of merger and acquisition because of the winding up the
business in order to face the problems. After accessing this strategy it could be easily conceal
from that problems which are occurred during the wind-up of the company (Pugalis and et. al.,
2016) .This enables the market could enhance the better productivity and profitability which
achieve the growth in the near future. This company acquire the services with the combination of
the two entities. The end results shows that this strategy is the best in improving their high
performance level.
CONCLUSION
On the basis of above mentioned study, it has been examined that effectual planning is
important to achieve success and growth in the market. The company develop effectual strategies
and planning in order to enhance goodwill and reputation as well as market share of the
company. PESTLE analysis determine external elements that affect productivity and
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profitability of the company. The success of organisation based on how well they assess the
external environmental element in order to achieve competitive advantage over rival firms.
Ansoff Matrix is used by company in order to grab the opportunities and defend against threat. In
assistance of this, The company develop business plan in order to execute business activities in
appropriate manner thus it helps in enhancing profitability and sales of the company.
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