Strategic Planning for Business Growth and Expansion

The assignment involves analyzing the complexity of business growth, including fluctuating internal and external factors, competitors' analysis, and capital management. It also requires drawing an impressive plan for enhancement and considering a suitable method of exit to expand business in various regions.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key considerations for evaluating growth opportunities & justify these in
organisational context.................................................................................................................1
P2 Evaluation of opportunities for growth by applying Ansoff’s growth vector matrix............3
M1 ...................................................................................................................................................5
TASK 2............................................................................................................................................5
P3 Assessment of potential sources of funding available to businesses & its benefits and
drawbacks....................................................................................................................................5
M2 ...................................................................................................................................................7
TASK 3............................................................................................................................................7
P4 Development of business plan for growth including financial information & strategic
objectives for scaling up a business............................................................................................7
M3 business plan..............................................................................................................................8
TASK 4............................................................................................................................................9
P5 Assessment of exit or succession options for a small business and benefits & drawbacks of
each option..................................................................................................................................9
M4....................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is important and play vital role in business environment for every organisation
as it helps in growth and success. Through proper planning, enterprise can gain long term
sustainability and it also help in gaining pre-determined goals and objectives. Simply, it can be
said that main motive of planning is to design what do to, how to do, when to do and for whom
to do (Barbour and Deakin, 2012). This assignment is based on ABC enterprises which is a
consultancy firm that provide services related to environmental scanning. The company is
applying for a government contract and for this the entrepreneur requires £300,000 for the
bidding process but the company is only having £20000. so, they will have to manage the rest of
the amount through other sources of funds.
Below mentioned assignment will discuss about key considerations for analysing several
opportunities and growth with the assistance of Ansoff's growth vector matrix. It also enlightens
various sources of funds with their advantages and disadvantages. In the last, business plan is
framed with the motive of growth which cover strategic objectives and information for rating
business.
TASK 1
P1 Analysis of key considerations for evaluating growth opportunities & justify these in
organisational context
Growth is required by every organisation and for remaining in business environment as
well it can be gained by efforts of overall management and employees. For achieving success
and growth there is requirement of proper planning in better manner. ABC is the business
consultancy organisation they are investing in the contract of Environmental observation firm
which is valuing £50k. Thus, in such case it is the duty of manager to do planning in appropriate
manner so that business can growth and achieve success. Components included in this are
mentioned below :-
Competitive Advantages – Business environment is wide in nature. It have several
competitive advantage for every organisation. For gaining these advantages it is important to do
planning in better manner (Brinckmann, Grichnik and Kapsa, 2010). ABC Enterprise have
provide their services in better manner to customers because through satisfied customers
enterprise can generate high amount of profit in better manner.

Resources- Company needs to arrange all the necessary assets such as; maximum
amount of workforce, sufficient funds, modern technologies and so on. All these elements
supports selected firm in accomplishing their specific project in a defined time frame by
grabbing available success opportunities.
Core competencies- As per this component an organization needs to focus on major
factors which helps in managing various business activities in order to generate maximum return
on their investment. For example; client services, resolving conflicting situations which incurred
between two employees as well as managers needs to focus on various decisional process.
Porter's Generic Strategy – This model is introduced in 1980 by Michael Porter and it
refer to competitive techniques. It involves Cost leadership, differentiation and focus as well
focus strategy is subdivided into two parts named as cost focus and differentiation focus. The
factors included in it assist in framing effective and efficient strategies for running business and
its growth. ABC Enterprise is utilising Porter Generic Strategy Method for preparing actual plan
for maintaining brand image and earning profit. Cost leadership – this is mainly focusing on cost of services provided by respective
consultancy organisation. Cost leadership states that goods and services must be provided
at reasonable price which can be affordable by everyone. Thus, ABC Enterprise can
provide their services to customers at discounting prices which attract large number of
customers and retain them for long duration as well assist in increasing profitability and
profit. Differentiation Leadership -It states that services offering by the company should be
different and unique through implementing several distinct features. With the assistance
of these it will be easy for ABC Enterprise Business to gain their distinct position in
market and in the mind of customers also. Cost Focus – This term is focusing on price of ABC Enterprise and they have to make
sure that respective firm have to apply better pricing policy compare to their competitors
(Burton, 2010). But in such cases quality of the services also must be kept in mind.
 Differentiation Focus - This ABC Enterprise have to concentrate on features of services
along with examining effectiveness of competitive offerings for enhancing their own
brand image within consumers and market.

PESTEL analysis – It is an analytical tool used for analysing the macro environmental
factors which gives their impact on the organisation. PESTEL analysis refer to the study of
various factors such as Political, economical, social, technological, environmental and legal
factors. Impact of all these factors on ABC Enterprise is mention below :-
 Political: This involves several rules and norms which is given by the government of
particular nation. All these rules and regulations must be followed by company while
conducting their day to day operational activity (Moseley, 2013). If there is a political
stability then ABC Enterprise can easily manage all the business activities without
encountering problems regarding modified policies. This will results in better growth
and success.
 Economic: It involves several elements such as interest rate, taxation, inflation,
unemployment rate, currency exchange and so on. Thus, if there is good cash inflow and
outflow in the economy then investor will will invest their hard earned money in the
company. It will be opportunity for ABC Enterprise to expand their business.
 Social: Social factors involve people of different culture and their taste, preference and
buying habits. Their are several companies in business environment and their owner are
from different religions. Thus, respective consultancy is providing services to customers
according to their religions.
 Technological: Now a days, new technologies are coming day by day which bring
several opportunities along with them. Because with the assistance of several
technologies business ABC Enterprise can do their work in better manner within
specified time period. Emerging technologies assist respective organisation is doing their
work in better manner through advance tool and techniques.
 Environmental: This is related to several rules and regulations which must be followed
by every organisation for reducing issues related with global warming (Chapin, 2012).
Such factors assist business in providing several opportunities which distinct the same
organisation from others.
 Legal: It involves several laws and legislations which is formed by government and it
must be followed by every company because it is mandatory. There are several laws
which provide various opportunities like expanding business in another country and
many more. If legal factors are stable then their will be several opportunities such as

ABC Enterprise can work constantly on their existing policies there is no requirement of
modification.
P2 Evaluation of opportunities for growth by applying Ansoff’s growth vector matrix
ABC Enterprise is contracting with environment observation, thus in it there is
requirement of planning which is done by manager of the company in which all the tools related
to the contract should be applied (Mitchelmore and Rowley,2013). Ansoff's Growth Matrix is the
tool which is used for developing strategic options for the company as well as this is a common
tool which is applied by every organisation mostly because of their simplicity. Ansoff's Growth
Matrix is invented by Igor Ansoff in the year 1965. There are four components which is involved
in it is given below :- Market Penetration – This is the situation when company wants to attain growth in the
market with their existing services in the present market-area. In market penetration first
or foremost motive of the company is to maximise its market share. This is a less risky
phase because organisation is investing their present capabilities and resources again in
market place. There is requirement of action plan which are designed for enhancement of
business. It is a proper strategy for ABC Enterprise for market growth
Illustration 1: Ansoff's Growth Matrix

(Source: Ansoff's Growth Vector matrix, 2017) Product Development – In this, ABC Enterprise design new services for targetting their
existing market-area. However, new offering take place through same company is market
portfolio which aids their customers in comparing past and present market condition in
order to forecast future. Sometimes customers get bored with continuous using services
thus for maintaining their image in market area; it is the duty of company to bring
something new or innovative for their existing customers (Christofakis and
Papadaskalopoulos, 2011). Apart from this, there is no requirement of any promotion and
advertisement because in current market there are several loyal customers who do mouth
publicity of the business. Market Development – For expanding business, there is requirement of market
development. In this company offer their existing services in the new market-area. ABC
Enterprise is offering such type of services which is required by everyone thus they can
provide their offerings to the several new customers also.
 Diversification – In this, company move towards the growth strategy by diversifying
their new goods and services i.e., portfolio services for new market-area. Apart from this,
it is risky stage because services and market both are new (Pallagst, 2010). If latest
product is not liked by the customers then it will be failed and resulted in heavy loss.
After going through the above discussion it has been analysed that product development
is suitable for ABC Enterprise. Because through this organisation is gaining advantages of
diversifying their business in new product i.e., portfolio services. Product diversification results
in generating more and more profit as well enhancing productivity.
M1
ABC Enterprise is using product development which is beneficial from them because
through it enterprise is gaining several competitive advantages. As well as it is also assisting in
profit maximisation and enhancing productivity also. Basically, new services which is launched
by similar organisation is portfolio services through which enterprise can compare their past and
present result for assessing future (MacLeod,2013). Moreover, when an enterprise is providing
new services it will attract more customers and assist in converting existing into their loyal
customers.

TASK 2
P3 Assessment of potential sources of funding available to businesses & its benefits and
drawbacks
ABC Enterprise is purchasing contract of Environmental observation company. Their
contract value is £50k and for buying there is requirement of funds but ABC Enterprise is having
only £20k. However, ABC firm is going to involved in environmental contract due to which they
need to borrow £30k from Angle investor which is major investment decision. Thus, in this
situation it will borrow money and there are mainly two sources of finance. Description of them
is mention below :-
 Internal sources – In this, fund is generated through internal sources. In simple words it
can be said that finance is generated through internal sources i.e., retained earning, profit
and so on (Moseley, 2013).
 External Sources – There are several external sources through which ABC Enterprise
can borrow funds for purchasing contract. Some of them is given below :-
Sources of Funds Definition Advantages Disadvantages
Angle Investor There are various
investors in market
who invest their
money in business
which is profitable.
These are the form of
equity financing or
funding, in it investors
invest their funds for
taking equity portion
of a company.
Increment to investor's
sector knowledge &
connection.
They are friendly and
wealthy individuals
who want to invest in
business for profit
motive.
Angle Investors are
not best source for
borrowing fund
because they are not
appropriate for less
than £10,000 and more
than £50,000.
Bank Loan These are the financial
institution that can be
private and
government both.
Major advantage in
taking bank loan is
that the amount paid
by the borrower is tax
For taking loan, there
is requirement of any
security. If amount is
not paid on time then

Amount borrowed
through them is known
as loan and against of
this there is
requirement of paying
some charge which is
called interest
(Eddleston and et. al.,
2013). The amount
given is for some
specified period of
time.
deductible.
Taking bank loan for
opening or expanding
business is seem to be
cost effective. It is
cheapest options as
compare to other
financial loan or
funding.
bank will seize the
property or the
security which is given
to financial institution
against loan amount.
Sometime Bank loan
have variable interest
rate that create
difficulties for payer.
Crowd funding In this, fund is
arranged from large
number of people or
crowd and thus the
amount taken from
individual person is
small.
Through this company
can easily raise fund.
It is consider as best
way to test reactions of
public on a particular
product and services
and according to it
they can improve
plans.
If the project will
failed for which
amount is taken then
its reputation will be
damage. As well much
documentation is
required for taking
money.
Peer to peer Lending In this approach,
money is borrowed
through person who
are who take interest
in investing their
money (Li, Mobin and
Keyser, 2016). Thus,
internet most
appropriate method for
There is one major
advantage which is
gained by the
company is that they
can choose person
through whom they
want to borrow
money.
This is not part of
financial services
because I this person 2
person transaction take
place.
When a person get
peer to peer lending,
there is no insurance
and government

this framework. protection of
borrowing money.
M2
For ABC Enterprise best source of raising fund is Angle investors because amount
required by the respective organisation is only £30K. Thus, for them it is best source through
which they can raise funds for purchasing contract of environmental observation there is
requirement of sources which can be generated through the external sources (Li,Mobin and
Keyser, 2016). Some of the major sources of funding are discussed below-
 Bank Loan
 Crowd funding
 Peer to peer lending
All the above three methods are appropriate for acquiring capital in order to run an
association in a smooth manner.
TASK 3
P4 Development of business plan for growth including financial information & strategic
objectives for scaling up a business
Business plan is framed by the manager of the company because it is responsibility of top
level management. Major motive of framing this is smooth flow of business and also for
achieving their goals and objectives. Through this it will be understand by each and every
employees that what they have to do and at what time (Grover, Bokalo and Greenway, 2014).
Business plan is blue print of overall organisation working There are several resources through
which enterprise can select resources and use them, so it is necessary to plan business operations.
Business plan for expansion of ABC Enterprise is discussed as below -
Background of organisation-
ABC Enterprise is the organisation which is providing services related to environment
scanning and they diversify their products into portfolio services in new market.
Mission & Vision

ABC Enterprise mission is to provide better portfolio services to their customers and
make them satisfied. As well as vision of the company is to develop their business in new areas
and provide better services to their existing and potential customers.
Internal Analysis
Strength Weakness
 They have effective man power or
employees in their organisation.
 Their customers or clients are loyal and
satisfied.
 ABC enterprise has strong reputation in
marketplace.
 Effective research and development
department and employees.
 Promotion and advertising team of
respective company is not mush
effective.
 They didn't have much market presence
and knowledge.
Opportunities Threats
 Local government of respective
company want to work with small
enterprise.
 They are offering funds to small
business units.
 Competitors of respective company are
slow in adapting changes.
 Fast increase in competition in
marketplace of environmental scanning
business.
 Market is changing rapidly which affect
respective company operations.
Financial Information -
Respective organisation is purchasing Contract of Environment Observation enterprise
for this there is requirement of funds £ 50K. Thus, ABC Enterprise have only £ 20K so for this
there is requirement for raising fund. So, they are raising their funds from angle investors.
M3 business plan
Business plan is playing crucial role in ABC because it helps an organization in various
manner such as; specify the vision, mission, objectives, customers needs and so on. As a result, it
aids in directing staff members towards corrective path so that they can accomplish their

assigned job in proper way (Hough and et. al., 2010). An effective plan which helps in growth
and preventing investment are discussed below:-
ABC
Deals in -
Consultancy firm is offering services to other existing organization.
Company goals-
Aim to expand their business by grabbing market opportunities such as; using modern
technology for accomplishing their business objectives (MacLeod, 2013). Moreover creating
their portfolio for facilitating other businesses.
Mission-
Short term motive is to acquire the loyalty or trust of various customers.
Stakeholder-
“Investing funds for gaining maximum amount of interest'
Throughout the plan it has been understood that company can easily develop their
company by assisting all the staff members towards correct direction so that they can attain set
objectives or goals in a defined period (Keough, 2015). Along with this, company can
accomplish their business activities in a desired manner by satisfying the customer needs.
TASK 4
P5 Assessment of exit or succession options for a small business and benefits & drawbacks of
each option
It is important for organisation to analyse exist and succession options for small
organisations. This will enables them to accomplish their target. ABC Enterprise is small
business enterprises in nature. The options which are basically used for exit from the market
includes liquidation and winding up. On the other hand, which helps to get success in market
includes merger and acquisition. All these options have their own advantages and disadvantages
required to oversee to best possible outcomes.
Exit options
Liquidation: It is the method which is used by organisation to end up their business
activities by distributing their assets to claimants (Hough and et. al., 2010). Basically, this

method is used by small business enterprises when they are unable to pay off their debts and
becomes insolvent. The advantages and disadvantages of this method are defined below:
Advantages
 It is lawful procedure where all the obligations of small business enterprises are paid off.
This will helps in paying off all obligations properly.
 This will helps in arranging business activities according to necessity.
Disadvantages
 Liquidation is time consuming process and also requires high amount of cost which is not
possible to be paid by small business enterprises.
 This will bring clashes among the views of individual.
Selling- As per this element an organization can also use this strategy for exiting the
market in proper manner. However, in this scheme selected firm is going to sell their entire
business to other one in exchange of monetary terms. Some of the major benefits and drawbacks
of this element is discussed below-
Advantages-
 Generates liquidity for owner.
 Having opportunities to success.
 Maximize the large amount of funds
Disadvantages-
 Loss of businesses.
 Profit loss.
Succession planning
Acquisition – For a small business organization, Acquisition is known as a success
planning approach in which a firm is make effective strategy to expand their business with others
(Keough, 2015). It is a beneficial approach in which a large scale firm can easily maximize its
resources and productivity by acquire small scale firm easily.
Advantages
Through this a small business firm can easily maximize its business resources and it is a
beneficial term for small scale organization too (Grover,Bokalo and Greenway, 2014).
Disadvantages
This process takes a long term period in order to manage their activities in effective manner.

M4
Small business enterprises needs to make changes as per the company needs or
requirements as well as consider customer choice or preferences. Exit options means an
organization needs to sell out the business to their family members or any other person
(Mitchelmore and Rowley, 2013). Thus, number of options are given which must used by firm
for this process such as; succession planning, merger, acquisition and so on.
CONCLUSION
From the above report it has been summarized that growth of an organization is gone
through various complexity such as; fluctuation in various internal and external factors,
competitors analysis and so on. Throughout the report, it has been assessed that small business
needs to assess various relevant components while grabbing development opportunities at
marketplace. Capital are consider as backbone for selected firm as whole business is depend
upon sufficient amount of funds in order to accomplish various business activities. Along with
this, an impressive plans was also drawn on the above project for the enhancement of selected
firm. Lastly, an appropriate method of exit was also shown which helps an organization in
expanding their business in various regions.

REFERENCES
Books and Journals
Barbour, E. and Deakin, E.A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the
castle? A meta-analysis on contextual factors impacting the business planning–
performance relationship in small firms. Journal of Business Venturing. 25(1). pp.24-
40.
Burton, P., 2010. Growing pains: The challenges of planning for growth in South East
Queensland. Australian Planner. 47(3). pp.118-125.
Chapin, T.S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1). pp.5-15.
Christofakis, M. and Papadaskalopoulos, A., 2011. The Growth Poles Strategy in regional
planning: The recent experience of Greece. Theoretical and Empirical Researches in
Urban Management. 6(2). pp.5-20.
Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Grover, B.E., Bokalo, M. and Greenway, K.J., 2014. White spruce understory protection: From
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Hough, P. and et. al., 2010. The worker co-op sector in Canada: Success factors, and planning
for growth. Canadian Worker Cooperative Federation.
Keough, S.B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability growth
planning in early product-development stage. IEEE Transactions on Reliability. 65(2).
pp.769-781.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M.J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.