Planning for Growth: Evaluating Opportunities, Ansoff Matrix, Funding Sources, Business Plan, Exit Options

Planning for growth

Table of Contents
Introduction..........................................................................................................................................3
P1 Evaluating growth opportunities by analyzing the key considerations...........................................3
P2 Ansoff growth matrix......................................................................................................................6
P3 Sources of funding with its benefits and drawbacks.......................................................................7
P4 Designing a business plan for growth.............................................................................................8
P5 Assess exit or succession options for small business explaining the benefits and drawbacks of
each option............................................................................................................................................9
Conclusion .........................................................................................................................................10
References ..........................................................................................................................................11

Introduction
The strategic plan is the essential aspect in the growth of the economy which helps in
preparing the organization vision for the upcoming and leads to success of the business growth. The
company strategic plan defines the goals from medium term to long term and the ways to achieving
them. The planning for growth is the strategic activity of the company where the growth is tracked
in regards to returns and planning is done by the stakeholders. To generate the revenue and
customers the tactics and strategies are involved in the growth plan which also shows the customers
value. The time frame of the plan is 3-5 years (Afzalan, N and et.al., 2018). In the study the
Enterprise Rent-A-Car has chosen which is established in 1957 and founded by Jack Taylor in
Missouri, USA. It is operated in the Canada, Ireland, UK, and Germany which is the international
brand. In the study the discussion is done on the key considerations for evaluating the growth and
using the Ansoff matrix. It also states the sources of funds and for the organization business plan is
created. It also discusses the succession and exit plan for the small business.
P1 Evaluating growth opportunities by analyzing the key considerations
The small or medium enterprises requires the planning for growth which applies the specific
models and framework to have the opportunity in the competitive environment. The Enterprise
Rent-A-Car also uses various models that helps in the expansion of the business and market growth
rate is enhanced and gains the growth opportunities.
Competitive advantage- The rivalry supports the firms in the marketplace to conduct the
organization in innovative manner which is the foremost module of growth. The customers have the
great advantage in getting products of high quality at optimal price. The Enterprise Rent-A-Car
understood the customers needs and requirements. To achieve the inexpensive benefit the resource-
based opinion defines the decision-making framework of the company which controls the planned
resources (Ahani, S and et.al., 2020). It focuses on the possessions, capabilities and competencies of
the company to have competitive edge. The firm uses the porter’s generic strategy-
Porter’s generic strategy
It was established in 1980 to increase the competitive benefit of the organization by
choosing the suitable strategy from cost leadership, differentiation and focus.
 Cost leadership strategy- In this the cost is lowered which helps in gaining the competitive
advantage. The Enterprise Rent-A-Car targets the middle class to expand the market share
which makes large consumer market mix. The Enterprise Rent-A-Car focuses on the
affordable and easily accessible of the produce to have high brand awareness and sales

growth. This strategy provides the benefit in expansion of customer base, brand recognition,
and sales targets are achieved over the products.
 Differentiation strategy- In combination to the cost leadership the Enterprise Rent-A-Car
uses the differentiation strategy to attain the growth objectives. The Enterprise Rent-A-Car
focuses on the unique product feature to expand the customer base. To create the strong
brand image in the consumer minds the brand logo is used. To differentiate the services
Enterprise Rent-A-Car uses the innovation (Ali, Z and et.al., 2019).
 Focus strategy- the companies are encouraged to focus on the resources by serving the
particular market segment. The Enterprise Rent-A-Car adopts this strategy to offer the best
value and in terms of low cost. The need of niche market segment is served at possible low
price. The Enterprise Rent-A-Car focuses on the product attributes by making the changes in
the product to satisfy the customer expectations.
PESTEL Analysis
It is widely used in the management tool and strategic planning. The Enterprise Rent-A-Car
identify the external environmental forces with the application of this analysis to support the
decision making process and leverages the competencies and core capabilities.
 Political factor- The commercial restrictions and political stability determines the success
and failure of the Enterprise Rent-A-Car. The company is also influenced by the tax policy
with the increase in taxation there is an expansion of expenses. The Enterprise Rent-A-Car
gets the supports from the government and impacted with the changes in the rules and
regulations.
 Economic factor- there are several factors which influence the Enterprise Rent-A-Car
growth. The component of the GDP has the effect on profitability of the Enterprise Rent-A-
Car. The Enterprise Rent-A-Car can have high sales with the higher GDP which leads to
high disposable income. The high inflation impacts on the cost of raw material & inputs and
change the purchasing power of the customer. To remove the economic instability it
maintains the economies of scale (Boden, P and et.al., 2020).
 Social factor- The Enterprise Rent-A-Car can design effective messages by understanding
the factors of consumer spending pattern, power structure, demographic trends. The social
patterns are directly related to the consumer behavior which affects the work trend and
influence the buyer structure, interest on service. The Enterprise Rent-A-Car can access the
pool of high skilled talented employees with the social trend of higher education and makes
the consumer aware about the services and products. The Enterprise Rent-A-Car is more