Planning for growth

Planning for growth

Table of Contents
Introduction .........................................................................................................................................3
P1 Evaluating growth opportunities by analyzing the key considerations...........................................3
P2 Ansoff growth matrix......................................................................................................................6
M1 Discussion of the growth options to have the understanding of competitive advantage. ....6
P3 Sources of funding with its benefits and drawbacks.......................................................................7
M2 Evaluation of potential source of funding ...........................................................................8
P4 Designing a business plan for growth.............................................................................................8
M3 Developing an detailed business plan for growth and securing investment, setting out
strategic objectives, strategies and appropriate frameworks for achieving objectives. .............9
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option............................................................................................................................10
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations.............................................................................12
CONCLUSION..................................................................................................................................12
References .........................................................................................................................................13

Introduction
The planning for growth is the companies strategy activity where it helps in tracking the
progress of the business and enables for planning to employers. It helps in providing the opportunity
to the organisation where the resources are allocated in the efficient way to adopt the changes. It
involves the strategies and tactics in the growth plan. Through the growth plan it helps in knowing
the current state of business which helps in setting the targets, goals of the business. For the
economy growth the strategic planning is essential aspect as business vision is prepared for the
future and leads to achievement of business growth (Afzalan, N and et.al., 2018). The goals from
medium term to long term is planned in the strategic plan of the organisation and the ways are
described for achieving them. The chosen organisation is Enterprise Rent-A-Car is which is
founded in 1957 by the Jack Taylor in Missouri, USA. In the assignment the discussion is done on
key considerations of the business like porter's generic, Ansoff matrix, and PESTEL to examine
growth opportunities. Further, it also discusses the sources of funding and business plan is prepared
which also elaborates the exist or succession planning for the small business.
P1 Evaluating growth opportunities by analyzing the key considerations
The small organization needs to expand their business in the international market due to the
emergence of the technologies as they gain several opportunities so that they can have the
competitive advantage and grab the attention of customers. Various models is used by the Enterprise
Rent-A-Car for the business expansion and to enhance the market growth of the business.
Competitive advantage- The competition in the marketplace assists the organization to
conduct the business in innovative manner for the growth. It developed various tools and assets by
focusing on local rentals in the large number. It has more than 6000 rental locations which also
offers the solutions top the customers and families. The customer needs and requirements is
identified by the Enterprise Rent-A-Car. To have the competitive advantage the focuses is put on the
resources, capabilities and competencies by the application of various models (Ahani, S and et.al.,
2020).
Porter’s generic strategy
This model was developed in 1980 where the right strategy is chosen to gain the competitive
advantage. It focuses on the strategies of cost leadership, differentiation and focus.
 Cost leadership strategy- To gain the competitive advantage the costs is lowered which is
used in various consumer market. The market share is expanded by the Enterprise Rent-A-
Car which targets the middle class as they place high importance to pricing factor. To gain

the high brand awareness and sales growth it focuses on affordable and easily accessible of
the produce. In the expansion of customer base, brand recognition the benefit is provided
through this strategy (Alvarez, A and et.al., 2017).
 Differentiation strategy-For the attainment of the growth objectives the Enterprise Rent-A-
Car uses this strategy by focusing on unique products to have the expansion in the customer
base. It also makes the use of brand logo to create the brand image in the minds of
consumers. The innovation is used by the Enterprise Rent-A-Car to differentiate the services
from others.
 Focus strategy- To have the target segments the organizations are encouraged to focus on
resources by adopting this strategy the best value is offered and in terms of low cost by the
Enterprise Rent-A-Car. In the possible low price the need of niche market segment is served.
To satisfy the consumer expectations the Enterprise Rent-A-Car focuses on the product
attributes to make the modification in product (Amr, A.A., 2020).
PESTEL Analysis
The Enterprise Rent-A-Car identifies the external forces of environment which is used in
management tool and strategic planning to gain the support in decision making by leveraging the
core capabilities and competencies.
 Political factor- The Enterprise Rent-A-Car success and failure is determined by the
commercial restrictions and political stability. There are various factors which influence the
company such as taxation policy, change in policies, government system, trade restrictions
etc. the company expenses are increased due to the increase in the taxation. There is a
government support to the Enterprise Rent-A-Car (Armaghani, S and et.al., 2020).
 Economic factor- The growth of the Enterprise Rent-A-Car is affected with the several
factors such as labor market conditions, inflation, saving and interest rate. The purchasing
power of the consumer is change with the inflation as it impacts on the cost of raw material
and inputs. The Enterprise Rent-A-Car has affect on profitability with the companient of
GDP. There is high disposable income as the company has high sales with the high GDP.
The economies of scale is necessary to maintain to remove the economic instability (Bekun,
F.V and et.al., 2019).
 Social factor- The factors which affects the Enterprise Rent-A-Car are consumer spending
pattern, power structure, demographic trends through which an effective message can be
designed. The Enterprise Rent-A-Car makes the consumer aware regarding the products
and services as there is a access of highly talented skilled employees with the higher