Planning for Growth: Strategies and Funding Options for Monzo Bank

Planning for growth

Contents
INTRODUCTION.......................................................................................................................................2
TASK 1.......................................................................................................................................................3
P1 Contemplations for assessing growth.................................................................................................3
P2 Opportunities for growth by using Ansoff’s matrix............................................................................4
M1 Range of analytical frameworks to understand competitive advantage.............................................5
D1 Evaluate specific options and pathways for growth...........................................................................6
TASK 2.......................................................................................................................................................6
P3 Sources of finance with advantages and disadvantages......................................................................6
M2 Evaluate sourcing of funding and its justification for the appropriate source....................................8
D2 Critically evaluate sources of funding with justified argument..........................................................8
TASK 3.......................................................................................................................................................8
P4 Design a business plan........................................................................................................................8
M3 Examine sources of funding and justification for correct source of fund........................................11
TASK 4.....................................................................................................................................................11
P5 Exit or succession options for a small business................................................................................11
M4 Analyze succession or exit options for a small business comparing and contrasting the options....13
D3 Present a coherent and in depth business plan that determines knowledge......................................13
D4 Critical evaluation of the exit and succession options for a small business......................................13
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Planning is measured as the system that involves a positive approach of an individual in
order to achieve all the goals and objectives in an efficient way. It mainly describes the security
of the future by carrying out different tasks and activities. In current situation it is the advanced
philosophy of a person that has been developed and enhance in accordance with achieving
success and expansion for the future period of time (Fu and et.al,2021). It also helps to extent the
influence on different policies that are applied to achieve growth. The report is based on Monzo
bank. It is an online bank which is headquartered in London. It is one of the earliest among other
challenger banks. The organization was founded in the year 2015 by Tom Blomfield. The below
report involves considerations for evaluating growth, Ansoff’s growth matrix, sources of
funding, business plan for growth and exit or succession options for small business.
TASK 1
P1 Contemplations for assessing growth
Planning is the practice of analyzing different variations as per the requirement and
achieves all goals and intentions. It is the procedure of the business enterprise to balance their
gap concerning where they company is and from where the organization want to attain after a
certain period of time. In context with Monzo it is the small and medium term enterprise and
wants to enhance the growth level with the expansion in America.
Porter generic strategy: -
It is described as a strategy that outlines a path and delivers better modest advantage to
the enterprise in this marketplace. It involves four different approaches which are used by the
banking in order to achieve benefits from their competitors. It also helps to implement different
strategies that help in doing business expansion.
 Cost leadership: - In accordance with this strategy it is used when company provides a
product reserves with least price that provides the provision and achieve highest market
share. Monzo uses this cost leadership theory to fascinate maximum number of customers
and provide them services in better way as compared to the competition.
 Differentiation: - It is the strategy in which organization initiates creativity and
innovation with respect to all productive services and achieve high sales and large market
share. Through this strategy business organization can develop their products and
services which is complete new in the marketplace (Divakara, 2021). Monzo also uses
this method in order to receive effective competitive advantage by gathering the attention
of large number of customers.
 Cost focus: - It is described as a strategy that is used by an organization in order to cover
niche market and offer different products and services at low cost. It has been
implemented by the company by knowing the completed evaluation of market and

satisfies the demands of their customers. Monzo gathers maximum number of customer
base by offering these services at minimum cost.
 Differentiation focus: - It is described as a plan which is used by the enterprise while
providing diverse goods and services. It brings a faithful brand image in front of all the
consumers and achieves long term accomplishment and growth in the arcade. Monzo
uses this plan while providing new services in the business location and through this they
gather maximum amount of revenue by developing overall profit and sales.
There are diverse levels of strategies which are implemented by the enterprise that helps to gain
large level of competitive advantage. The chosen company uses cost focused strategy in order to
enhance the level of productivity and overall profit. While measuring the expansion in the
business enterprise with the help of this company provides services at minimum level to grab the
attention of large customer base and achieve better profits.
BCG MATRIX: -
 Cash cows: - The products which come under this category have low level of market
growth but high market share (Dadashova and et.al, 2021). In context with Monzo bank
their earned revenue is used for all the operational expenses and the institutional banking
is considered as a cash cow for their bank.
 Stars: - On the basis of this there is high market growth rate and high market share. In
terms of Monzo bank their business banking is a star for them and it needs investment
because of enhancing growth.
 Question marks: - It defines high growth rate but low market share. As high growth
needs high level of investment in order to achieve objectives. For Monzo their retail
banking is considered as a question mark.
 Dogs: - It has both low market share and low growth rate. So, there are certain products
and services which need to be removed if they are facing constant failure.
Difference between BCG matrix and McKinsey matrix: -
Basis BCG Matrix McKinsey matrix
Visual differences It has only four cells matrix It has nine dimensions.
Comprehensiveness On the basis of this their
competitive strength is equal
to their market share.
In context with this matrix
they have more composite
portfolio.
From the above table it has been evaluated that nine cells matrix is more effective because they
provide better visual portrait and also separate their cells which are much closer to each other.
P2 Opportunities for growth by using Ansoff’s matrix
In accordance with Ansoff’s matrix it is used to enhance and develop diverse strategies
and methods which help in developing and implementing different plans by which an