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

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Critical assessment of opportunities available for business...................................................3
P2 Ansoff matrix.........................................................................................................................5
New products and services..........................................................................................................7
P3 Sources of funding and benefits and drawbacks of sources..................................................7
P4 Business plan.......................................................................................................................10
P5 exit and succession options of small business.....................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
The report is related to planning for growth of an organisation. Planning is done for SME and
growth for it has been discussed. The organisation taken for case study is Enterprise-Rent a Car.
Enterprise-Rent a Car is a car rental company started in USA and operates in Canada, UK,
Ireland and Germany. The considerations for evaluation of opportunities of growth and
considerations within context of organisation have been discussed. The opportunities for growth
in Ansoff matrix has been done. The methods through which organisation access funding sources
and the benefits and drawbacks of the funding have been done. Business plan has been made
which includes information and objectives for business scaling has been provided. The ways in
which a small business can exit or succeed in business and implications of each option have been
provided.
Competitive advantage
P1 Critical assessment of opportunities available for business
Car rental industry has been growing in recent years steadily. From 2015 to 2019, the market has
grown in Europe and USA from $41 billion to $49 billion which represents value of 4.6%
CAGR.
INDUSTRY TRENDS
Car rental industry has grown in steady way and the largest and markets which are developed are
Europe and USA. From a perspective on structure of car rental business, oligopoly features are
there with global operators who are limited (Busse, M., Swinkels, J. and Merkley, G., 2017).

Porter’s Generic strategies
Cost leadership
Cost leadership strategy has involvement of advantage that is competitive of cost lowering. The
target segment of Enterprise-Rent a Car is middle class. Thus, there is focus on affordability and
accessibility for them which has helped in brand awareness and competitive advantage.
Production cost being lowered and increasing efficiency of supply chain, organisation offer
coupons for achieving sale targets and handling of competitive pressure (Omsa, S., Abdullah,
I.H. and Jamali, H., 2017).
Differentiation
Apart from low-cost strategy, organisation differentiate through the core capabilities and
enterprise has fleet of vehicles of high quality which are cleanest and there are many models of
cars made according to demands of customers. The unique brand logo is also a strategy used by
company.
Focus strategy
The focus strategy is on the market segment of middle class and thus strategy is adopted of
emphasis on habits and design of product which can meet the requirements and needs of the
customers. Organisation does its branding and brings change in designing of product and
packaging for satisfying customer expectations and providing them the best value for the product
(Omsa, S., Abdullah, I.H. and Jamali, H., 2017).
PESTLE analysis
Political factors
An organisation policy of short and long-term depend on the places where the organisation is
operating. The stability of governments in countries influence the organisation. Enterprise-Rent a
Car operates in many countries and thus, there is difference of political situations and they may
help the business to prosper or limit the opportunities for the business (Perera, 2017).
Economic factors

Economic conditions prevalent like income, inflation and economic policies affect the
organisation. Providing well developed infrastructure facilitate business environment and
developed countries have this advantage for the organisation.
Social factors
There has been an increase in people taking cars at lease rather than owning them and this
preference of customers will surely help the organisation. This will be a competitive advantage
to compete against automobile selling industry.
Technological factors
With increase in technology of bookings done of car rentals online on smartphones, Enterprise
Rent a Car has to accordingly evolve and be ahead in competition. For gaining competitive
advantage, company has to give offers and discounts on the car bookings.
Environmental factors
Use of alternative fuel and running electric cars can reduce environmental pollution and can
prove to be a competitive advantage for the organisation which is taking environment-friendly
measures (Perera, 2017).
Legal factors
Following consumer protection laws and intellectual property rights registration can help the
organisation stay away from legal hassles.
P2 Ansoff matrix
The matrix involves these strategies:
a) Market penetration: This involves selling products which are established in markets that
are existing for the product. In 1957, when the concept of leasing cars was launched, it
was an altogether new concept. The company had the motto of taking care of customers
and profits shall follow. Customer service became important for the business. This helped
the markets to grow (Loredana, 2017).

In car rental, the product is the same of renting cars however, here the quality of service
is the factor which differentiates from the other competitors. The company has taken
feedback of its customers and provided quality service which helped in gaining market
share.
Product development: This has involvement of services and products and launching them
in markets that are existing. Organisation has developed service in market where there are
established and profitable business. For instance, product development includes the
‘Pick-up’ service. This has assisted in leading the market in the offering of product.
Flex-E Rent service of Enterprise which is a rental solution of long-term for meeting
growing needs of business and the Business Rental Programme offers customers a special
pricing bespoke programme being instance of product development. This has brought
improvement in customer experience and made its brand identity strong. Enterprise
allows employees for making decisions at responding quickly to the external environment
(Loredana, 2017).
Market development: It involves taking the existing services and products in new markets
for selling. Enterprise have taken their rental service to new countries and created market
for its product. For providing better customer service, the organisation has located its
branches in proximity with the customers’ residential areas which has given a
competitive advantage to the company. In response to needs of customers, company
opened its airport location too, which increased to 200 on-airport locations in 2000s.
Diversification: The strategies involving widening of the organisation’s scope across
products that are different and different market sectors is known as diversification. It gets
associated with having a new experience of a new market with requirement of additional
investment. Enterprise has made strategies of diversification including:
A) Car sales was introduced by the company. It involved selling of used cars to both
public and businesses. It is one of the largest sellers of used cars now.