Planning for Growth: Analysis, Ansoff's Matrix, Funding Sources, Business Plan, Exit Options

This report covers various considerations taken by SMEs for evaluating growth opportunities, ways of funding, and exiting ideas for business. It includes analysis for evaluating opportunities for growth, Ansoff's growth matrix analysis, funding sources with pros and cons, business plan for growth, and exit and succession options for Rent-A-Car. The report also discusses the subject of management planning, course code: Unit 42, and college/university: unknown.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Analysis for evaluating opportunities for growth..................................................................3
P2 Ansoffs growth matrix analysis.............................................................................................4
P3 Funding sources with pros and cons......................................................................................5
P4 Business plan for growth.......................................................................................................6
P5 Exit and succession options for the business with its benefits and drawback.......................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management planning refers to what to do and how to do activities of business for
achieving goals and objectives. It is the main function of management. Executives must form a
opinion before doing any specific job. Planning is related with the creativity and discovery. But
for this goals must be set first. It is one of the important steps that managers can take for
effective management. It provides direction to the management,decreases the risk and wasting of
activities. It encourages the innovation in business and aids in decision making. It is a
continuous process and leads to efficiency. For this report the company is Rent-A-Car which was
established in 1957 by Jack Taylor in Missouri,United States of America and operates in many
countries like Canada,UK. The project covers various considerations which are taken
consideration by SMEs for evaluating growth opportunities. ways of funding and exiting ideas
for business. It also includes the plan for business which will help the business for scaling up.
MAIN BODY
P1 Analysis for evaluating opportunities for growth
For making place in the industry ,it is very important for the company to make plan for
growth and models and framework of activities. Management of Rent-A-Car has formulated
various models for scaling their business for increasing growth opportunities.(Eghbali, Abdollahi
and Ghobeyshavi, 2020).
Competitive advantage- Rivalry makes the company to do business in innovative manner
which is best model for growth. Consumers have benefit of buying products at cheap price of
high quality. The organization knows the consumers needs and wants. For achieving the cost
benefit the resources based opinion describes the framework for decision making which controls
the resources planned. Main focus is on the possessions,capableness and competences of the
organization for getting competitory edge. For this the company uses Porters generic strategy-
Porter’s generic strategy
Formed in 1980 for increasing the welfare of the company by analysing the 3 strategies
for gaining competitive advantage.
 Cost leadership- In this strategy the cost is decreased which will help in getting
competitive edge. The company Rent-A- Car main target is the middle class for
increasing the market share which form large customer market mix. The company

focuses on affordable and easy access to the products for brand awareness and growth of
sales. It gives the benefit of customer base expansion,brand recognition and increased
revenue of the company(Fajriah, 2021) .
 Differentiation- With aggregation to expenditure leading the company Rent-A-Car uses
this strategy for attaining the verifiable of the growth. The company mainly focuses on
unique products to grow the consumers base. For creating the brand image in between
consumers the logo of the brand is used. Innovation is used for differentiating the
services by the company.
 Focus- Companies are encouraged to mainly focus on resources by serving peculiar
market segment. The company Rent-A-Cars uses this for offering the better value and
low cost. Niche marketplace section is served at very low prices. The company Rent-A-
Car mainly focal point on product attribute by changing the commodity for satisfying
consumers expectations(Ghura and Abhishek, 2021).
PESTEL Analysis
It is the tool utilized by the administration for strategical preparation. The company
Rent- A-Car analyze the outer environment forces to aid in determination devising process and
leverage the competencies and capabilities(Kepczynski and et, al., 2018).
.
Political factor- The success of the company Rent A Car is determined by commercial
restrictions and political stability. The organization is also affected by the taxation policy
as it will increase the expenses of the company. The company Rent A Car also gets support
from the government and gets affected with the changes in regulations and rules.
Economic factor- Many factor affect the company Rent A Cars development. GDP also has
affected the profitability of the company Rent A Car. Company can get sales high with
higher GDP as it means more disposable income. Increasing inflation rate affects the raw
materials cost and inputs and purchasing power of consumers is also changed. Economies of
scale maintain the economic stability.(Lee and Jung, 2020).
Social factor- The company Rent A Car can understand the factors of customer spending
shape ,powerfulness artifact,sociology tendency by designing effective messages. Social
form are related to to client behavior which impact the tendency of work and influences the

artifact of buyers,interest on services. The company Rent A Car can hire skilled professional
employees with the higher education social trend and makes aware the consumers of the
services and products as it is a customer centric company.
Technological factor- With the advancement in technology the importance of technological
factors in decision making process in the company Rent A Car. Innovation makes the
changes in the company. The company directly communicates with consumers by the
development of the internet and online business. It also uses the social networking for
increasing sales of e-commerce. Innovation in technology builds the competitive advantage
for the company Rent A Car(Linovski, 2019)
Environmental factor- The company Rent A Car aims to become environment friendly which
deal with Laws of environment. For this it keep the regulation to incorporated the allotment
of resources. Measures of leadership find the connection in budget and natural activities of
the company Rent A Car. It is mainly concerned with environment for improving the image
and maintain the sustainability for reflecting corporal duty with goals and scheme.
Legal factor- The company Rent A Car is also influenced by the judicial aspects of the law. The
law is basically a guideline for regulation to set minimal status which includes the minimal
working age. The HR department of the company are well trained which ensures equal
hiring, no favoritism in recruitment,administration of talent. The company Rent A Car must
defend the employees by offer safety and wellness and safety.
Boston consultancy group analysis
It is the tool which is used for the development of the enterprise by 4 elements which is
ascertained on the ground of marketplace growth of level advanced and low market share. It is
used by company Rent A Car for investigation of status of growth and possibility.
 Dog- It has the low-level marketplace growing rate and part which has the laggard
development of the business organization in the industry place. Low cash returns are
yield which do not require finance in the Enterprise Rent-A-Car

 Question mark- In such the commodity marketplace development is high and low
marketplace share which requires the close thinking as the losings incurs and huge
magnitude of financial gain is used-up in the Endeavor Rent-A-Car. It considered the
strategical choices of commodity evolution, marketplace penetration.
 Star- The marketplace part and marketplace development rate is high which comes under
the class of currency generator and cash user. It creates the positive currency flow in the
Undertaking Rent-A-Car which requires the strategic choice of perpendicular crosswise
integrating.
 Cash Cows- This plan of action is reasoned as the gainful trade name which provides the
huge financial gain by deciding the low marketplace growing rate and high marketplace
share. The Undertaking Rent-A-Car get cash from cows that are invested with in star to
have the aid for the development in future day. with level of advanced or low and
marketplace share. This array is used by the Project Rent-A-Car to make investigation of
growing position and possibility.
VRIO analysis- It is method used by marketers to analyze and measure the institution resources
to know the competitory point.
Resources
and
Capabilities
Valuable Rare Imitable Organised Competitive
implications
Financial
resources
Yes No No Yes Temporary
competitive
advantage
Awareness of
brand
Yes Yes No Yes Sustainable
competitive
advantage
Leadership Yes Yes No Yes Strong
competitive
advantage


 Financial resources-Company RENT A CAR has strong financial resources which are
valuable for the firm but other companies also have the same so it is a temporary
competitive advantage. They can copy the same strategy adopted by the company and
invest more money to attract consumers towards them , as competitors have backing of
venture capitalists.
 Awareness of brand- Its brand are quite popular but facing challenges by competitors
through marketing but RENT A CAR brand is rare so its a sustainable competitive
advantage. The competitors of the company can adopt the more effective tools for
promotions as they have more money and skilled professionals in relate to Rent A Car
and they will use more promotion tools for making their brand more effective in
consumers.
 Leadership- The leadership team is strong competitive advantage as they have the skill
and knowledge and creative thinking and they keep motivating the employees of
company to achieve objectives. The team is highly educated and can not be imitated but
the competitors may hire same skilled professionals for their work still it is very hard to
match the quality of the team of Rent A Car.

P2 Ansoffs growth matrix analysis
It is the strategical instrument used in counselling of the enterprise organization
determination for the development. It is a strategical preparation method which keep the trading
operations for the forthcoming intent. The Project Rent-A-Car uses this framework in the
enlargement of the enterprise organization function.
 Market penetration- This plan of action is used by the enterprise organization who
search development for the existent commodity in the market. The marketplace
manufacture capability accelerative which helps the Undertaking Rent-A-Car to range
more consumers and leads to skillfulness and effectivity. The commerce finance is
accrued which helps the establishment to perforate the marketplace with the existent
commodity and marketplace(Wei and et, al., 2018).
 Market development- The existent merchandise is present in the brand-new marketplace
to heighten the business organisation growth of the Undertaking Rent-A-Car. To
determine the new marketplace and user section the organization makes investing in
investigation and improvement and also makes an perceptive of various industry
civilization, trends. The enlargement of the Project Rent-A-Car is done location involving
metropolis, geographical part. It builds the trade name consciousness to addition sales,
development in new marketplace.
 Product development- The business organization grow with the new commodity in the
existent marketplace by making adjustment and change of state in the commodity for
offer to fresh consumers. The Project Rent-A-Car realize the user supply by indulgence
in the action of R&D. With the constricted fiscal finance the strategical relationship
permit to accession new commodity evolution of Project Rent-A-Car.
Diversification- The institution is occupied in the brand-new commodity and in new
marketplace for the growing & evolution which makes the Endeavour Rent-A-Car to remain
competitory, pioneer. In the perpendicular variegation it the new commodity is present in the
existent commodity line which convey the development and evolution of Endeavor Rent-A-Car.
In the crosswise variegation the new commodity evolution are launching and part related
economical surroundings (Sparkman, 2018).

P3 Funding sources with pros and cons
For running the business and start up different origin of finances are secure. They are
elevated in the form of personal finance ,bank loans ,relatives etc. Arrangement of the finances
is done early to accomplish agelong term plan of the company. Finance origin helps in improving
the efficiency and productivity of the business. Manager of the company Rent A Car can select
sources of finance to find out suitable source of funding(Shin, 2019).
Retained earnings- Companies keeps some amount of their earnings which is not given
to shareholders in dividends and used for future is known as the retained earnings. It refers to the
internal financing in which the profits of the company depends on various factors like net
profit,dividend policy. The company Rent A Car can use this source of funding to complete the
requirements in future.
Benefits- Its is the lasting origin of commercial enterprise which not includes declared
expenditure in the dividend,interest etc. It gives the flexibleness and freedom of operation as
finance is generated internally. The business capacity is increased for covering the losses.
Drawbacks- Excessive use of profits leads to shareholders dissatisfaction as they get low
dividends. It is a uncertain finance source as profits of the company are fluctuating. If the
undistributed profits have inappropriate allocation of reserves the viability and efficiency of the
company is reduced.
Trade credit- The facility of trade credit is used to make the acquisition of goods and
services from merchants where the immediate payment is not made. It appears in the bargain
account as sundry creditors. It is short term funding used by companies which have goodwill and
sound financial positions(Šebestová, 2021).
Benefits- It is the most favourable and uninterrupted funding origin which is accessible to
consumers if there credit entry history is known by the vender. Sales of the company is promoted
by the help of trade credit. Sales is promoted with this tool. For having funds they do not change
the asset of the enterprise.
Drawbacks- There is risk of over trading if they have flexibility and easy availability. It gives
constricted sum of finances and compare with different sources of economics.

Public deposits- The administration rise the finances from the open public straightly where rate
of interest is high,as it is high in bank deposits and called public deposits. The form is to be filled
to deposit money and take care of both shortened and intermediate term finance of the company
Rent A Car.
Benefits- For acquiring the deposit it is easy and expenditure is low as equivalence to the cost of
lend from banks. It do not change the asset of the company which is security.. The power of the
institution is not dilute as the investor does not have the ballot rights
Drawbacks- For raising the money from the public deposits the new institution have to face
trouble. The consequence of the public is ignored when the institution have the demand of the
money which is the undependable origin of finance. The public deposit accumulation is hard
when the needed sizing is big(Pinnegar, Randolph and Troy, 2020).

P4 Business plan for growth
This define the formal written documents in which the goal of a company and the
objectives to achieve in this time frame. The plan also includes different aspects which are
related to the company and this shows as blue print. The elements which were included in
business organization plan are:-
Executive summary- This institution is a American rental car agency, the main focus of
this company is on replacement of a car which collided with in an accident, have stolen,
mechanical repair, etc. the discussion is made on the basis of various models. For growth of the
business, plan is being prepared.(Park and LaFrombois, 2019).. The vision, marketing strategy,
objectives, mission, etc. of company states in this. It also province the institution mission,
vision, verifiable merchandising scheme etc.
Business description- The mission of this Business Rent-A-Car give worker best place
for employment and become best transport service provider in the world. The vision of this
enterprise is to take good care of workers, this strengthen the community and rewards hard
working opportunity. The objective of this business is to grow market share when the sale
increases. For enhancement of strength and creates loyal consumers. Through managing the cost
effectively the profit increases.
The product and service of this enterprise provides the rented car focused on the home
town. It offers to the customers of localized and airdrome property, exotic car hire, car sharing
etc along with this it provides the long-term commercialized transport.
The SWOT analysis of the Business Rent-A-Car is a strategical management tool for the
development which strengthen the consumer service. The outdated website and problem in
navigation a company can become weakness. The competitors have strong presence when it
comes to international expansion. The opportunity comes when there is expansion in care share
of profitability, long return of investment, more rentals. The treats will rise when there is
fluctuation in fuel price, hourly rate will rise, decline in consumers(Papageorgiou and et, al.,
2019).s
Market analysis- The marketplace directs to the Business Rent-A-Car includes the rising
condition for online car rental work. The bifurcation of marketplace is done in form of booking,
application, transport or by the end user. The target makes for widening geographical area which
cover all type of customers.

Marketing and sales strategy- The institution procures finances from many sources
which are banking company loan, crowd funding, national deposits etc. in context of promoting
the products and services which takes different method for promotion and the evaluation of the
commodity and service will kept reasonable for the customers(Olesen, 2022).
Financial factors- for growing the source of financial gain is being keep. The
organization maintain a currency flow rate and statement for income to know the advancement.
Controlling of plan- This program evaluates with former gross sales to know
profitableness and the increment of marketplace part. In this the act plan and alteration made in
program when it required.

P5 Exit and succession options for the business with its benefits and drawbacks
The condition of market is evolved through considering particular market options in exit
plan and idea of succession(.Mazzarol and Reboud, 2020). This will help in making effective
decisions according to business growth. The Business Rent-A-Care believe in exit plan for
succession development.
Exit plan- This is the strategy for framework which determines the factors affecting
functions of business. The success will be promoted and problem is being identified. For
identification of issue this strategy is used by the company.
 Firm sold in open market- In market instead of considering a business single, the rights
and responsibilities are transferred to some one else. The business owner will be changed
instead of stopping the business. Already existence of employees will benefit new owner
for continuing the business. The selling of valuation will be a drawback.
 Liquidation- The debts and liabilities will start liquidate in sale of the possession after
leftover amount is apportioned evenly between business workers after writing all the
indebtedness and possession right. In this the welfare is that administration will get free
easy.
 Succession plan- This is applied to growth of business and applicability which
determines replacement of leaders and employees after leaving the business. The power
is transferred to other person.
Merger and acquisition- For maintaining the succession plan this will help. For
effective functioning one company merge in another and maintains a succession plan by
doing task together. The large company take over another company is an acquisition. This
is beneficial for enhancement and aid in handling with hazard and uncertainty.
Disadvantage can be copy of trading operations which can be shortened approaching.
From this reasoning the succession plan is advantageous for the Business Rent-A-Car
which will assist in keep the coming goals.
RECOMMENDATIONS
Exit strategy – Rent A Car can choose to sell the business to someone they know if they are
facings issues in running the business as the other person who will buy the business may have
the necessary resources and expertise to run the business. In this way company will remain
working.

Succession strategy – Owners can choose to give leadership to their family member in this way
they can retain the control of the company and give guidance to the new leader,who may find
problems to run the business.

CONCLUSION
This report clearly states that the plan of business growth help enterprise in achieving
growth in future. From the pestle analysis the factors is to be considered which will affect the
business and BCG matrix helps in identifying the product and service which a company will
keep or not. The Porters generic analysis is done for knowing competitive edge on competitors.
The plan of growth in many strategies comes from Ansoff's growth company. Potential sources
for funding this a business con use for its growth. Exit and succession strategies will studied for
knowing that how Rent-A-Car can execute them

REFERENCES
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