Unit 42: Planning for Growth - Desklib

Unit 42: Planning for
Growth

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluating growth opportunities by analysing the key considerations.....................1
P2. Evaluating the opportunities for growth applying Ansoff’s growth vector matrix in
the context of Chosen Company..........................................................................................4
P3 Sources of funding with its benefits and drawbacks....................................................5
TASK 2............................................................................................................................................7
P4. Design of business plan for growth along with financial information as well as
strategic objectives for scaling business.............................................................................7
TASK 3..........................................................................................................................................10
P5. Assessment of exit and succession option for small business along with explaining
benefits and limitation of each option...............................................................................10
CONCLUSION..............................................................................................................................12
References:.....................................................................................................................................13

INTRODUCTION
Planning is defined as the process of thinking about the activities which are going to be
performed in future. Planning for growth is a strategic activity for the organisation under which a
full proof plan has been developed related to the growth of organisation. The company chosen
for this report is Rent-A-Car which was founded by Jack Taylor in 1957. This organisation is
performing their operations in many countries which include UK, Germany, Canada and Ireland.
This enterprise is providing cars on rent to their customers (Afzalan, N and et.al., 2018). It is a
small enterprise and planning for expanding their business operations in order to earn high profit.
This report deals with the key considerations which are considered by SMEs while evaluating
growth opportunities, various methods of funding for business, various ways of existing from the
business. Furthermore, it also cover a business plan which helps the organisation in scaling up.
TASK 1
P1 Evaluating growth opportunities by analysing the key considerations
The internal judgment of Enterprise Rent-A-Car
In order to analyzing the several internal factors which may affect the business organiza-
tion, a tool has been used which is known as SWOT analysis Strengths: Large amount of capital is require to start a car renting business. Hence it is
the strength of enterprise Rent-A-Car because the need of high investment restrict the
companies to enter in this industry. It also leads to the availability of less competitors. Weakness: Managing the enterprise Rent-A-Car is too expansive as the cost of purchas-
ing and maintaining the fleet of vehicles are high. Along with this, they also have to keep
mechanic staff in order to provide regular services to their vehicles. Opportunities: Enterprise Rent-A-Car have opportunities to expand their business in
those countries where they are not working currently. Along with this, they can also ac-
quire high end vehicles for people to use for a day or week (Ahani, S and et.al., 2020). Threats: The availability of several ride sharing companies is the threat for enterprise
Rent-A-Car. From a research, it is found that these online ride sharing app can effect the
sales of Rent-A-Car because people can shift to other ride sharing companies such as
Uber and Lyft.
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PESTLE judgment of Rent-A-Car Political Factors: Brexit result in the increase in the administration cost which leads to
the higher costing of organization. Along with this, enterprise Rent-A-Car is performing
business operations in many countries such as Canada, Germany, UK and many more. So
they are following all the political rules and policies of specific country. This organiza-
tion is also following the global expansion strategy.
 Economic Factor: The economic development of a country influence the organisational
performance. Growth in the economy offers of wide growth opportunities to the Enter-
prise Rent-A-Car. Along with this, the GDP growth rate analyse the Enterprise Rent-A-
Car's ability for the purpose of pursuing the long-term growth strategies. If the unemploy-
ment rate is high it will give the surplus labour at a comparatively lower wages.
 Social Factors: The changes in the demographic patterns such as age of population mi-
gration Trends and social economic variable implies an effective on the international
business organisation Enterprise Rent-A-Car. It is necessary for organisation to select
right market segment which implies higher potential growth to the organization (Ali, Z
and et.al., 2019). Technological Factors: Enterprise Rent-A-Car. should carefully consider the on-going
technological innovations to stay ahead of the competition. A close eye should be kept on
analyzing the 5G and determining its potential to deliver positive business outcomes
through enhanced user experience, increased speed and expanded access. Technological
innovations like this can bring major transformations in the industry and reset the success
rules for market players. Moreover, considering the development and maturity level of
technology in the respective market is also important. Entering in markets where
technological advancement has not reached the maturity means Enterprise Rent-A-Car.
can increase the market share by focusing on emerging technological innovations. Environmental Factors: Excessive resource depletion by Enterprise Rent-A-Car. can
draw the negative response from media, environment protection groups, customers and
the general public. Enterprise Rent-A-Car. must study the specific environmental
regulations of the country under consideration to understand which resources (like water,
electricity etc.) are considered rare or which species are endangered whose excessive
consumption can cause trouble for the organization (Boden, P and et.al., 2020).
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