Planning For Growth

This assignment focuses on the key consideration of evaluating the opportunities of growth by justification and opportunity in relation to implementing Ansoff growth vector matrix. It also includes potential sources of funding including their benefits & drawbacks which are available for business organisations.

Planing For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Analysis of key consideration of growth opportunities....................................................1
P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix..........4
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source. .....................................................................................................6
P4 Development of a Business plan.......................................................................................7
P5 Access exist or succession options for a small business explaining the benefits and
drawbacks of each option.......................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning for growth refers to a set of activities that are carried out by an individual for
improving their skills and abilities. It consist the steps of learning and training through which a
person can enhance their knowledge levels and capabilities in terms of expanding their
performance as well as productivity. However, it is necessary for people to determine their own
weakness and threats in order to overcome with them to improve skills (Pred, 2017). In context
of this report, it is based on Knights and Dukes Homes which provides desired services and
products to customers for completing their needs and demands. This assignment will focus on
the key consideration of evaluating the opportunities of growth by justification and opportunity
in relation to implementing Ansoff growth vector matrix. It will also include potential sources of
funding including their benefits & drawbacks which are available for business organisations. The
effective business plan regarding achievement of growth with financial data and strategic
objectives along with exit & success options for small business are given below.
MAIN BODY
P1 Analysis of key consideration of growth opportunities.
Growth can be described as an important factor for every company to which they are
focussed and establish different strategies regarding the same (Lewis, 2013). It is necessary for
management of organisation to apply appropriate business strategies which facilitate to enhance
productivity as well as profitability. In context of Knights and Dukes Homes, they put efforts to
improve their quality of facilities and products for achieving growth success in business.
Competitive Advantages
The term of competitive advantages can be explained as a condition of a business concern
to manufacture products at affordable prices and deliver it to desired customers. It is necessary
for Knights and Dukes Homes to establish effective strategies to gain competitive advantages in
which some of them are defined here.
Resources – This includes well experiences and talented staff who were consider as an
asset of an organisation along with other resources like funds, raw material or machinery.
Capabilities – In this context, it consist given organisation is much capable in terms of
providing appropriate and innovative products which are easily affordable and satisfy needs of
clients.

Core competencies – It includes the product and services of high quality with advanced
characteristics with reasonable price that helps customers to easily afford them top fulfil their
requirements.
Porter's Generic Strategy
This can be defined as an effective framework which composed of several strategies that
can be used by companies to achieve growth as well as competitive advantage among different
competitive firms at market place (Todes, 2012). It is helpful to Knights and Dukes Homes
enhance their overall productivity and development in respect of improving goodwill of brand in
market. Porter generic strategies consist four factors which are explained below.
Cost leadership – In context of Knights and Dukes Homes, they can be apply the strategy
of cost leadership by reducing their cost of product in such a manner to compete in a large
market among its competitors. It is favourable to gain competitive advantage by establishing
effective cost leadership strategy to grab more customers along with increasing profitability in
regular basis.
Differentiation – This strategy can be described as implementation of innovative ideas
and thoughts to make product creative and unique as compared to other brands in large market to
compete with them. It is suitable to attract new customers along with retaining the current ones
for achieving more benefits than the competitive firms. It can be applied by Knights and Dukes
Homes in order to make their product different in terms of achieving growth at market place.
Focus -
 Cost focus – The strategy of cost focus on applicable of niche market to reduce the prices
of services in respect of grabbing more market along with attaining growth. It is an
effective strategy that is suitable in niche market for making reasonable pricing strategies
so that customers can be attracted towards brand (Mason, 2015). In case of Knights and
Dukes Homes, they can utilise cost focus on survive and gain success in small market
amongst several competitive firms.
 Differentiation focus – The differentiation focus can be described as to make small
modifications of creative changes in products to grab clients in niche market gram
competitive advantage. It includes the criterion of focussing on goods & services of other
brands and make products innovative and unique to increase goodwill. The Knights and

Dukes Homes can utilise this differentiation focus strategy to attain growth in niche
market.
In context of Knights and Dukes Homes, differentiation strategy is more suitable for
achieving growth and success by gaining competitive advantage in market.
PESTLE Analysis
The PESTEL analysis refers to conduct analysis of external factors of business which
influences of business growth and brand image. It is essential for Knights and Dukes Homes to
conduct evaluation of external environment for making effective strategy of gaining growth
including desired factors which are explained here.
Political factors – This can be described as rules and regulations established by
government of specific geographical area which is required to be followed by every business
concern. It includes various government policies in relation to different operational procedures
and activities including environment, taxation, etc. which are compulsory to be consider by
organisations. In context of Knights and Dukes Homes, they should remain up to date with such
regulations and follow them appropriately while running business.
Economical factors – The economic elements consist interest rate, tax rate, growth rate,
foreign exchange rate, inflation and so on. These are responsible or influencing their entire cost
of manufacturing and finance management of an organisation (Valler, Phelps and Wood, 2012).
However, it is necessary for Knights and Dukes Homes to focus on different expenses as well as
manage them according to the economic condition of particular geographical area to achieve
growth and success.
Social factors – This consist the factors related to societal rules and norms along with
lifestyle preferences of people including latest trends liked by them. It includes the cultural and
religious values of individuals which are required to be consider while advertising about
products and make sure about not harming believes of people. The Knights and Dukes Homes
should make decision of marketing strategies very carefully so that cultural values will not harm
otherwise it will create a huge trouble for brand image.
Technological factors – The technological factors can be considered as utilisation of
advanced and innovative technical machines, software, applications and equipments to carry out
tasks of production in proper manner on daily basis (Schetke, Haase and Kötter, 2012). It is
necessary for business concern to adopt appropriate technological system for making innovative

and unique product to satisfy actual needs and demands of people along with reducing the
duration of manufacturing. In respect of Knights and Dukes Homes, they should adopt new and
advanced technology for enhancing their productivity as well as profitability for attaining
success of business.
Legal factors – The legal factor consist a set of legislations related to employment which
are established to provide fair opportunities, wages, remuneration and other facilities of them
(MacLeod, 2013). It is required for Knights and Dukes Homes to obey overall legislations in
terms of conducting business in proper legal manner for avoiding any kind of legal crisis.
Environmental factors – This includes to follow the policies of government which are
established to save the environment and natural resources while carrying out operational
activities and procedures. Chemical waste and polluted gases of firms are responsible for global
warming, ozone depletion and pollution. Knights and Dukes Homes should ensure that
operational activities should not harm the natural atmosphere.
P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix
Ansoff's matrix, also known as Product-Market expansion grid can be defined as a
strategic tool that is used by organisations to develop strategies for market and product growth.
The tool is very helpful for businesses in identifying various opportunities of growth in the
industry (Mitchelmore and Rowley, 2013). The Ansoff's matrix is presented in the form of a
grid that has two dimensions, namely- product and market. On combining the two dimensions,
the grid gives rise to four potential strategies that facilitate the growth of the organisation. The
matrix for the respective company is explained below -
 Market Penetration – It is a strategy where an organisations attempts to sell its existing
products in existing markets with the main goal of increasing its overall share in the
market. And this can be done when the company is able to increase its sales to he existing
customers or by finding new potential customers within the market the company is
already dealing without making any significant changes in the products (Mason, 2015).
Adoption of this strategy requires a huge amount of money to be put on advertising and
promoting the product. In order to sustain in the market, Knights and Dukes should opt
for aggressive campaigns and a pricing strategy in order to promote its products and
attract more number of customers and the company can also introduce various loyalty
schemes.

 Market Development – Market development is the second quadrant in the Ansoff's
matrix and this strategy is adopted by organisations when they decide to sell their existing
products in the new markets which in turn helps them in identifying the new potential
markets for their current products (Denton, Forsyth and MacLennan, 2017). This strategy
is considered to be more risky as compared market penetration strategy as the company is
entering a new market altogether and does not have enough knowledge about. Knights
and Dukes can adopt two ways in order to use this strategy. It has already made slight
changes to its products like changing the packaging and dimensions which has resulted in
an increase in the sales. The company can also try pushing its products to new
geographical markets by appointing more number of people in its sales teams or through
franchising.
 Product Development – It is a strategy in which an organisation attempts to grow itself
through introduction of a new product in a market it is already established (Galland,
2012). The organisation continues operate in the existing market but increases the range
of the products that it offers for its further expansion. The assumption behind this strategy
is that if the new product gains positive response in the market, it will result in increase in
the number of sales and thus the market share of the organisation will also increase.
Knights and Dukes invests a considerable amount in the research and development of a
new product in order to appeal the present market. The company also lays emphasis on
the needs of its customers and how they change with time.
 Diversification - Diversification can be referred to as a business strategy wherein a
company enters a new market by introducing a new product. In this strategy, the
company usually acquires another business or starts one of its own that is not related to
its existing market and product line. Knights and Dukes is planning to diversify itself in a
new market. But this can prove to be the riskiest strategy it opts for as diversification
neither depends upon the position company holds in the market nor on its successful
product.
Thus, Knights and Dukes should opt for market penetration strategy as this will help it in
expanding itself first in its existing market
Possible risks: In context of given organisation, existing product may not liked by
customers as they get bored with similar packaging or style and it is quite possible that sales will

not increase. This kind of risk can be mitigated by making product attractive and promoting it
with its new look and features which encourage clients to purchase the same again and again.
Basically, it is also possible that applied innovation may develop an issue that people not
understand about new concepts implemented on product. However, this risk can be eliminated
for company by determining changed taste or choice of clients according to which appropriate
feature should add to goods for increasing sales of exiting product in existing market.
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
Many organisations often get confused while deciding on the best source for their
funding. With several options available today, the process can be a little tricky for businesses in
deciding this. Therefore, some potential sources of funding that are available to businesses are
explained below with their individual benefits and drawbacks (Moseley, 2013). Crowdfunding – This is the process wherein a business collects small amounts of capital
from a large number of people and this is usually done by using internet. The business
can collect funds from several people like family, colleagues through various social
platforms with the primary goal of attracting new investors to invest in it.
◦ Benefits : Crowdfunding has the potential of helping a business to expand by getting
various investors who can help in raising funds for it.
◦ Drawbacks : This source of funding basically requires a lot of time and dedication
before any results are observed. Venture Capital – Venture capitalists are basically the investors who put in a large
amount of money in exchange for equity in the organisation and thus gets returns when
the company goes public or in cases where it is acquired by another big company. Thus,
venture capitalists are people who invest in only those businesses that are potential
enough of generating high returns on their investment (Pred, 2017).
◦ Benefits : Venture capitalists not only provide funding but also help in mentoring and
guiding the business to expand itself. Also, this type of funding gives an immediate
boost in the credibility thereby attracting future partners and investors.
◦ Drawbacks : The can be cases wherein the business may be forced to give up a large
amount of it due to insufficient funding.

 Bank Loans - Banks loans are among popular sources of funding for many businesses.
But before applying for the same, people who own the business must be well educated
regarding various options of bank loans that are available in the market and also the
interest rates that come along with each option (Seven Types of Funding Sources for your
Startup, 2019).
◦ Benefits : Banks offer various kinds of funding options that depend on the need of the
business. Also, the process of funding is quick and the business does not have to give
up its control in any way.
◦ Drawbacks : The major drawback of opting for bank loans as a source of funding is
that they require a lot of documentation which is time consuming. The owners of the
business must be aware regarding the best option available for them. Also, the money
has to be paid back eventually whether the business succeeds or fails which can
eventually lead to a loss of assets of the business. Personal Savings – This is the most captivating source of financing for a business
because the owners of the business use their own money to start the business and do not
owe any amount to anyone else (Ward, 2016)..
◦ Benefits : The owners have full control over their business and they can use they
money in which ever way they want.
◦ Drawbacks : If in any case the business fails, all the efforts and savings that the
owners have put in go waste. Also, since owners of the business, themselves invest in
it, they miss out on valuable guidance and mentorship which they could have got
otherwise from venture capitalists and angel investors.
Thus, Kinghts and Dukes should opt for crowdfunding as a source for generating funds as
the company will be able to collect funds from several investors. Also, it can develop a network
with large number of people.
P4 Development of a Business plan
Business plan is a document which is formulated so that growth and development of a
business can be done with the help of proper planning. Below discussed is the business plan of
Knights and Dukes:
Executive summary: This is related with the new business plan which this organisation is
willing to have with regards to increasing of sales. This is a company which is having its

operation in UK. This is related with various products and services which are being offered to
their customers.
Vision: “Affect their target customers in the most positive way as compared to their
competitors”
Mission: This company is having mission to expand their functioning across all parts of
world.
Values: Management of Knights and Dukes is having a value that they are willing to
provide quality products to their customers. This is related with how much satisfied their
customers are with the products which are being offered by this brand.
SMART Objectives: “To increase sales of the company in coming qaurter by 15%”
STP: This is related with segmentation, targeting & positioning while is helping un
supporting of business and their customers. This can help in achievement of business objectives
in a more effective manner (Hollenbeck, Noe and Gerhart, 2018).
Segmentation: This is done based on certain characteristics which are age, lifestyle,
opinion, geographic etc.
Targeting: In context of Knights and Dukes the target market of company is individuals
who have interest in some sports or are regular usage of shoes.
Positioning: This is related with how market development can be utilised for
development of various strategies which can help in enhancing the overall base of customers and
creating a distinguished position in the market by adoption of a cost strategy or a differentiation
strategy.
Financial information: This is very important for conducting all the activities stated in the
business plan. In reference to Knights and Dukes the organisation needs funds around £200000
which is helping in conducting of various business functions and achievement of overall
objective of business
Monitoring of activities: It is very important for a Knights & Dukes that they have to
properly monitor all their activities which can help them in smooth running of functions
formulation of plans is not enough but it is also necessary that such activity shave to be monitors
and controlled. This is the last stage of every business plan in which it is observed that whether
the laid targets have been achieved. This is basically done to understand the deviation between
desired performance and actual performance of the business plan.

P5 Access exist or succession options for a small business explaining the benefits and drawbacks
of each option.
A business environment plays a most crucial part for the overall success and profitability
of business activities. In each and every organisation a disruptive nature of environment is
consider as a strong threat in their existence with an objective to remain in such kind of
situations and improve their operations (Grover, Bokalo and Greenway, 2014). In context to
this, each organisation has usually two aspects which are accessible to them which are
succession and exist strategies. Succession strategy can be define as a analysis and development
of a new leader who is responsible for replacing existing leaders in order to enhance the
availability and experience of capable employees. Exist strategy is basically a contingency plan
which could be applied by owners of business, traders or investors, venture capitalist for
smoothing their position in financial matters when a set criteria is not set. A diverse number of
methods are related to both these options. They are as follows.
Merger & Acquisition: It is often arise when two or more organisations combine
together in order to expand their business (Lewis, 2013). Preset terms and conditions has been
consider that could be applied in a appropriate way and must be owned by a respective authority
within an organisation. There are some pros and cons of this particular situation which has been
discussed here.
 Advantage: It will result in enhancing efficiency and effectiveness of business
operations which needs to improve overall profitability (MacLeod, 2013).
 Disadvantage: Some of the experienced and knowledgeable candidates in leadership
positions could deny it.
Integration: This situation takes place when there is some sort of mash up in internal and
external factors for improvement of organisation.
 Advantage: It will cause improvement in market share as well as help in to create better
potential customers.
 Disadvantage: It has a high level of investigation which cause a negative impact on
organisational activities.
Such strategies have both advantage and disadvantages in organisational operations.
Knights and Dukes Homes can use mergers & acquisition as it will help them to expand their
business and furnish their operations. It will help the respective organisation to improve their

operations and enhance overall productivity. Integration also can leads to improve productivity
and profitability. However, it is quite time taking ad needs a wide range of investments which
could sometimes leads to arising of some risk factors.
CONCLUSION
From the above study, it can be concluded that planning is important for an organisation
as it will lead to create a pace for carrying out operations in order to achieve desirable goals and
objectives. It will also leads to growth in overall market area. Planning can lead to improvising
performance of employees that help in attaining desirable goals successfully. For analysing
externals factors by PESTLE analysis including Ansoff's matrix. Cooperation of different
sources of finance could be applied such s crowdfunding, bank loans and several others. It will
leads to furnish business operations effectively. Thus business plans has a crucial role in carrying
out business effectively.

REFERENCES
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Seven Types of Funding Sources for your Startup. 2019. [Online]. Available through:
<https://thetechpanda.com/seven-types-of-funding-sources-for-your-startup/11238/>.