Planning for Growth: Key Considerations, Opportunities, Funding Sources, and Strategies

This report evaluates the growth opportunities of a business and provides information about the sources of funds. It also analyzes key considerations for evaluating growth opportunities and justifies these considerations within an organizational context. The report discusses potential sources of funding available to businesses and their benefits and drawbacks. It also explores different growth strategies, including market penetration, market development, product development, and diversification.

Planning
for
growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1- Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.........................................................................3
P2- Evaluation of the opportunities for growth..........................................................................7
P3- Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................8
P4- Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business..........................................................................................10
P5- Explain exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is the process which helps an organization to accomplish goals and objectives. It
involves future planning for growth and creative thinking to make business aims and objectives.
Planning helps the enterprises to identify the goals clearly so that the managers can find methods
and solutions to complete them. It helps businesses to identify the strengths and weaknesses,
planning also helps in overcoming the weaknesses. This report is on Haven holidays, and is
operating 41 sites in the UK (Di Tommaso and et. al., 2019). The company provides self catering
services and also include touring facilities and camping facilities. This report evaluates the
growth opportunities of a business and also provides information about the sources of funds.
Business growth planning is important for all types of businesses. In most of the developing
economies, SMEs improve the employment rate. Because when big industries reduce jobs small
industries keep creating more jobs.
MAIN BODY
P1- Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
SMEs are important for an economy as they generate extra revenue and employment
opportunities. They create job opportunities for both the skilled and semi-skilled labourers and
provide stability to the economy. SMEs are important for UK's economy as they support the
future of industries and also allows business expansion in the country. They also generate
competition amongst the businesses and also encourage innovation. It is important for a business
to grow, which helps the business to acquire more assets and talent.
Competitive advantage- Competitive advantage allows a company to manufacture goods and
services with better quality at lower costs. These are the factors through which a company can
gain advantage over its competitors. Competitive advantage allows greater profit margins as well
as provide growth opportunities to the businesses.

PESTLE analysis
It is the study of external factors which allows a business to analyse its position in the
marketplace. These factors influence an organization through different scenarios, and also guide
managers in decision making. It involves various factors like political, economical, social,
technological and environmental. These factors helps in analysing the overall growth of the
business through external factors.
 Political factors- These factors influence a business in the areas of taxes and policies.
Haven holidays is a chain of holiday parks and provides self catering and camping
facilities to customers. It is a UK based company thus the tax rates and economy of UK is
affecting the company (Dodds, Dimanche and Sadowski, 2018). It is a subdivision of
hospitality industry, thus if UK government will impose travelling taxes then it will
decrease the sales of haven holidays. But UK is a politically stable country so there is a
growth in the sales.
 Economic factors- These factors include unemployment rate, interest rates and exchange
rates which effects the operations of businesses. These factors influence the buying
power of consumers which will directly effect the sales of businesses. Haven holidays is
providing accommodation services, thus if the individuals are not employed they will not
spend on luxury products. So the Haven holidays have to change its pricing strategies to
retain customers.
 Social factors- These are the factors which influence a business through changing
preferences of the customers. There are many hotels and holiday resorts in UK, thus the
customer base is dispersed which has increased the competition. So Haven holidays have
to pay attention to social factors like buying habits and education level of customer base.
 Technological factors- These are the factors which include the innovations in
technologies in business operations. It is important for Haven holidays to have latest
technologies like mobile door keys, Al virtual trainings and online review monitoring.
These latest technologies will give a grand experience to the customers and thus the
customers will prefer Haven holidays over other hotels and resorts.
 Legal factors- Legal factors affects a business in every aspect from starting a business to
hiring employees and selling products. In hotel industry it is important for them to choose
a spot with low crime rates, so that the customers will feel safe. Haven holidays is

following innkeeper laws which ensures the safety and security of guests and their
properties. Also the truth-in-menu laws have to be followed which ensures that the
business is truthful about the food and drinks served to the customers.
 Environmental factors- These are the factors which create hindrances in business
operations through climatic changes, pollution and natural disasters. In hotel industries
environmental factors play a significant role as guests stay at hotels to relieve stress and
spend time with family. So it is important for Haven holidays to ensure that it chooses
right spots with low pollution and good climatic conditions for their resorts.
Porters generic strategies
This strategy focuses on the position of the firm in its industry, it is important for a
business analyse if the profitability is above average or below average (Egidi and et. al., 2020).
This tool helps a business to gain competitive advantage over other firms. The four strategies in
porters generic tool are-
 Cost leadership strategies- The cost leadership strategy focuses on managing and
organizing the business activities to produce goods and services at lowest costs within an
industry. The companies which focuses on lowering its costs will consider outsourcing,
technological advantages and accurate demand forecasting. Haven holidays can use this
strategy by keeping the prices low and attracting a larger customer base. Also the
management at the company is effective at keeping costs at a minimum.
 Differentiation strategy- In this strategy the focus of businesses is to influence
customers that there products and services are superior from other companies. In this
strategy the businesses sell there products by creating some uniqueness in there products.
Uniqueness can be done through innovating the existing products, inventing new
products or provide better services. Haven holidays can provide its customers with high
quality experiences by applying new technologies which influence the customers to come
again and again.
 Cost focus strategy- In this strategy the main aim of business is to focus on a particular
market segment. The businesses following cost focus strategy have to identify their target

market and have to meet the needs of buyers. Haven holidays is focusing on elite
customers which have discriminate tastes (Holz-Rau and Scheiner, 2019). The company
is targeting royal families and industrialists which can spend money on luxurious life.
 Differentiation focus strategy- It is the development of the differentiation strategy, in
this strategy the company focuses on the products and services and sell them in a
particular market segment. In this strategy the businesses sell innovative products and
services at lower costs to market segments.
BCG Matrix
It is a tool that is used internally by the business professionals to analyse the current value
of firms units. This matrix is used by Haven holidays to decide which services are yielding
profits and which are not. It is important for the company for managing portfolio and multiple
products. Through this the company can decide in which resorts it can invest more. This matrix
consist of 4 classifications which are-
 Stars- These are the commodities with high-growth markets and high market share.
These are the products which are highly consumed by the customers and the demand for
these products are high in the industry. Haven holidays should analyse its services and
provide with customers with the best possible services. These services will increase the
market share and also profitability for the business.
 Cash cow- The cash cows have the high market share but are having low growth rate.
These products and services require innovation so that they can be enhanced. Haven
holidays can use the resources from these businesses to reinvest in the segments with
faster growth and productivity. If the services are enhanced then it might happen that the
customers will get influence to buy these services.
 Dogs- These are the businesses which have low market share and are operating in low
growth industries. Haven holidays have to exit from those businesses which have a low
market share and reinvest these resources with the businesses which have higher
profitability.
 Question marks- These are the products with high growth markets and low market
share. These products and services lack different capabilities and skills and require

advancements in technologies. If Haven holidays hire new skilled employees and procure
new technologies then it should invest in the question mark.
P2- Evaluation of the opportunities for growth.
Ansoff matrix is a two-by-two structure and is by management teams to evaluate the
growth strategies. Ansoff is developed by H. Igor Ansoff, and is used by the business schools
and management schools worldwide. With this matrix the management team can visualize the
growth opportunities.
Strategies used in Ansoff matrix are-
 Market penetration- When using a market penetration strategy, the managers the
existing products which are familiar in the market and industry. The main focus is to
make new strategies which can be used to attract customers to buy the already existing
products and services (Hu, Huang and Li, 2019). In this strategy the marketers decrease
the prices of the products and put efforts in marketing the product.
 Market development- In market development strategy the marketers sell their existing
products and services in a different market. For haven holidays it can open its branches at
prime locations in the same city or different cities. The business can open new branches
but it needs time and funds. I this strategy the products and services offered are already
present in the market but the focus is to market them at different locations.
 Product development- In this strategy the businesses innovate new products and try to
sell them at existing markets. For Haven holidays the the new products can be refer to as
services or new room layouts. New rooms and services help the business to attract new
customers and retain existing customers. Product development strategy is used to
generate awareness in the target market.
 Diversification- This strategy holds the highest risk factor amongst all the strategies, the
businesses diversify their products and services. Haven holidays is already diversified,
because they cook their food, have cleaners and provide room services (Kim and et. al.,
2022) . If the business needs to further diversify its business then it can start planting
organic vegetables and fruits and can do animal husbandry.

Haven holidays can use market development strategy, as the company provides camping services
and self catering services it can open its branches in new cities and new markets. Through this
expansion the business can make new customers, but it is important for Haven holidays to do
research of the required market and the customer base. The business have to search the tastes and
preferences of the customers and then enter new markets.
P3- Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
Sources of funds- For growth and expansion of businesses the companies often require funds or
capitals. If the companies have more access to funds then they can spend more on research and
development of their products and can also invest in new projects. There are various source of
funding available to businesses which are-
 Bank loans- Bank loans can be used by small and medium sized companies to grow their
business. In bank loans the businesses are need to prove to the banks that they can pay
back the loan with interests (Li and et. al., 2020). When taking bank loans the businesses
need to give some assets as collateral.
Advantages of bank loan
 Keep control of the company- The business owners have full control over there
business, and bank personnel don't interfere in business operations. This means the
management is having full control over the business.
 Interest is tax deductible- The interest given on bank loans by the businesses is tax
deductible. So this is an advantage for the businesses as they can use that money in other
productive activities.
Disadvantages of bank loans
 Tough to qualify- This is the greatest disadvantage of bank loans, as they are very
difficult to receive. Businesses are required to provide collateral such as assets or real
estate, and the banks are very careful in lending as they make sure if they will be able to
cover the losses and interests.
 Lengthy application process- Applying for loan is a lengthy process. The businesses
need to fill the application form and need to provide a business plan. The bank analyse all
the financial forecasts, assets, liabilities, documents of the company which require some

time. If the companies are applying for a large sum of money than banks may take a long
time to process the request.
 Angel investors- These are the individuals which provide necessary funds to small and
medium sized businesses (Li and Yeh, 2020). They provide funds in exchange of equity
ownership and provide one time investment to businesses. They can be family, friends
and other individuals.
Advantages of angel investing
 No interest or repayment required- The angel investors get the ownership in the
company in exchange of investment so there is no need to pay any interest to the investor.
If the business will grow both the owner and the investor will get benefits, but if the
business fails the investors will not get their invested amount back.
 Flexibility- Business angels are flexible and negotiable, because they invest in businesses
from their own money. The angel investors are those who have already invested in past
and know the amount of risk which is involved in creating a business.
Disadvantages of angel investors
 Loss of control- Angel investors provide funds to the businesses in exchange for equity
stakes of the business. Thus the business owner have to give some part of his stake to the
angel investor, thus the power of the owner is diluted among the investor.
 Higher expectations- Angel investors have high risk tolerance, thus they need
productive outcomes. There expectations are very high on the return of investments. They
hold the ownership thus if the business is not making the profits, angel investors have the
rights to sell the business.
Haven holidays can make use of bank loans for raising capitals. Bank loans are the most reliable
source of funds for small and medium enterprises (Pinnegar, Randolph and Troy, 2020). The
business owners do not have to dilute there ownership with the banks, but they have to provide
some collateral like assets or real estate. So bank loans are reliable and timely repayment of
interests is required so that the bank will not charge any extra payment.

P4- Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
 Vision- Vision is to provide benefits of resorts and hotels to every family which will
bring a break from their hectic life.
 Mission- The mission of Haven holidays is to provide guests with a quality time, which
they can cherish for their lifetime.
 Objective- The main objective of Haven holidays is to give the warmest welcome to the
customers and provide best services which they can remember for lifetime.
 Stakeholders- There are various stakeholders, which have interests in the business
operations and are affected by the business (Sell and et. al., 2018). The stakeholders
include holiday home owners, holidaymakers, investors, employees, suppliers and
customers.
 Capital funding- The Haven holidays can raise capital through bank loans because banks
are the more reliable source for small and medium sized enterprises. Bank loans are the
best source as the business owners do not have to dilute their ownership and also the
decision making rights are with the management. Bank cannot interfere in the decisio9n
making as long as the interests are paid on time (Wang and et. al., 2019). Some sort of
risks are involved like some collateral needs to be given against bank loan and if the loan
amount is partially paid or not paid then the collateral is sold and rest of the amount will
be kept by the bank.
 Operational plans- Haven holidays can employ more expert employees and managers
which will help them provide creative ideas and thoughts to make marketing strategies.
Also the business can cut the costs by targeting on high profile customers and also the
business can recycle its waste and consume it.
 Resources plan- In resource planning the resort can allocate tasks to the employees
according to their skills and capacity. Also in hotel industry it is required to take
employees which are having a pleasing personality and are groomed well.
 Technology plans- TAAP is a software company which is helping Haven holidays
through the safety of the return of holiday makers. The company is finding a
technological solution to follow with the social distancing guidelines at check-in.

 Risk factor- The hotel industry is actively expanding, but not all the companies are
successful in it (Wann-Ming, 2019). Customers have become more health conscious and
cleanliness friendly. Customers prefer clean and sanitized restaurants and holiday inns.
Thus it is a great risk to maintain the quality of rooms and services.
 Marketing plans- Haven holidays can use social media to attract more customers as
most of the youth is using social media. Social media is becoming a new trend amongst
the companies. Most of the companies have started using social media as their marketing
strategy.
SWOT Plan- It is a strategic tool that gives the analysis of the strengths and weaknesses of the
businesses. It also provide the evaluation of various opportunities and threats which are available
to a business. It allows a business to generate new ideas and thoughts for business.
 Strengths- Haven holidays is having a loyal customer base, and the company is
providing quality services to its clients. Thus the company is focusing on royal families
and high profile clients and provide them with best services. So the clients are influenced
for coming back again and again.
 Weaknesses- Haven holidays is lacking in technological advancements, so the company
needs to give their customers with best technology. So Haven holidays have to improve
its weaknesses so that company can yield higher profits.
 Opportunities- There are various new technologies which are available for Haven
holidays like mobile check-in, artificial intelligence and internet of things. These
technologies will give Haven holidays opportunities over its competitors.
 Threats- In hotel industry there are many competitors which are having a good brand
image and reputation amongst the customers. So it is difficult for Haven holidays to
influence the customers to buy its services (Yu, Yanxu and Bojie, 2019). So the company
have to make the desired strategies to attract customers.
P5- Explain exit or succession options for a small business explaining the benefits and
drawbacks of each option.
Exit strategies- An exit strategy is a plan to dispose of the investments in a enterprise or any
fiscal asset. It is a strategic plan of the owners to sell out the business to liquidate their funds.

The exit strategies are used so that the business owners or investors can make a exit from a non-
profitable firm.
There are various exit strategies which are-
 Merger and Acquisition- Mergers and acquisitions simply means to come together with
another company which is dealing in same industry. This brings excess of resources for
both the companies as resources of both the companies are also merged. For small and
medium sized companies it is easy to merge with the bigger companies and get a good
price for there merger. Merging with bigger companies also grow their revenue and
create growth opportunities.
 Selling your stake to the partner or investor- If the business is handled by different
partners then the owner can sell the business to other partner or venture capitalists. This
will not affect the business operations and activities only the management of the business
is changed through this strategy.
 Initial public offerings (IPO)- In an IPO the owner is taking the business to the public
and sell shares to the stockholders. IPO is the first sale of the business's stocks to the
public. By making a business public, the owners can secure more funds to help pay off
debt. It is difficult for small businesses to apply for an IPO because it costs time and
money.
Succession strategies- Succession strategies are used for identifying the future growth
opportunities. It is a business strategy which is used by most of the leaders and the employees. It
ensures that the businesses are running smoothly and there is no interruption in any business
operation (Zafar and Akhtar, 2020). It is a good way used by businesses to organize to promote
and encourage advancement in their employees. For a business to be succeeded the owners or
managers have to start planning early and should select a multi- functional team of analysts and
advisors. General meetings of shareholders should be held quarterly or yearly to discuss about
the financial reports of the business. The main focus of the managers must be on the path of the
goal and not on the destination. The goals and objectives should be clear and all the employees
should know what they have to do.
Haven holidays is a developing company and is having potential to stay in the market. Thus the
company can focus on providing quality services to its customers at lower costs. Lower costs

will influence more customers and will ensure more profitability for Haven holidays. The
company can make succession plan and can make more strategies for providing best services.
CONCLUSION
From this report it is concluded that planning is a important part for every business as it
helps in determining goals and objectives. Planning allows organizations to identify the ways to
influence customers to buy their products, as planning involves building of strategies. Through
planning leaders can prepare for the future growth of the business and give the tools to achieve
them. In this report it is stated that Haven holidays provides self catering services as well as
camping facilities. The company is following market development strategy through which it can
attract more customers from different markets. Businesses require funds for growth and
expansion which it can source from angel investors, debt capital and equity capital. Haven
holidays can borrow the funds from banks, as they are the most reliable source of funds. The
business owners do not have to dilute their ownership with other individuals. Haven holidays
have to use succession strategies to develop the business. Succession strategies helps a business
in growth and increase productivity.
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