Planning for Growth: Evaluation of Growth Opportunities, Ansoff Growth Matrix, Funding Sources, Business Plan and Exit Options

This report evaluates the growth opportunities for Enterprise Rent-A-Car by analyzing key considerations, Ansoff growth matrix, and funding sources. It also discusses the design of a business plan for growth and exit or succession options for a small business. The report covers Porter's Generic strategy, PESTEL analysis, and Boston Consultancy group Matrix. The sources of funding evaluated are retained earnings, trade credit, and public deposits. Subject: Business, Course Code: N/A, College/University: N/A

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Evaluation of growth opportunities by analysing key considerations...............................1
P2 Evaluating Ansoff growth matrix......................................................................................4
M1 Discussing growth options for having understanding of competitive advantage...........5
P3 Evaluating sources of funding with its benefits and drawbacks.......................................5
M2 Evaluation of potential sources of funding .....................................................................6
P4 Designing business plan for growth..................................................................................6
M3 Detailed business plan is developed for growth and securing investment, setting out
strategic objectives, ...............................................................................................................9
P5 Assessing exit or succession options for a small business with benefits and drawbacks 9
M4 Evaluating exit or succession options for a small business by comparison and contrasting
the options ...........................................................................................................................10
CONCLUSION..............................................................................................................................10
References:.....................................................................................................................................12

INTRODUCTION
The growth for planning helps in assessing the organization performance and key areas of
opportunity are known which helps in future expansion. The growth planning is an strategic
activity of business that enables owners to plan and tracks their growth in revenue. The
organisation has the opportunity to allocate resources in the effective way for adopting changes.
The current state of business is known with the help of growth plan also assist in setting targets,
business goals. The strategic planning is important for the economy growth as the business
vision is prepared for future and leads to achievement of business growth (Amr, A.A., 2020 ).
The tactics and strategies are involved in growth plan for generating revenue and customers
which also shows the customers value. The selected organisation is Enterprise Rent-A-Car which
is established by Jack Taylor in 1957 in Missouri,USA. The report covers key considerations of
business such as porters generic, Ansoff matrix and PESTEL for examination of growth
opportunities. Moreover, it discusses the funding sources and business plan is made which
elaborates the exit or succession planning.
MAIN BODY
P1 Evaluation of growth opportunities by analysing key considerations
With the emerging of new technology the small organisation wants expansion so that
several opportunities can be gain and competitive advantage can be achieved. In the context to
Enterprise Rent-A-Car several models are used for having expansion of business and market
growth of business can be enhanced.
Competitive advantage- In marketplace competition assists organisation to have growth
by conducting business in innovative manner. By focusing on local rentals in large number it
developed several tools and assets. The Enterprise Rent-A-Car identifies the needs and
requirements of consumer and having more than 6000 rental locations. It also provides solutions
to families and customers. To attain competitive advantage it focuses on resources, capabilities
and competencies with the application of several models (Armaghani, S and et.al., 2020).
Porter's Generic strategy
In 1980 this model was developed which enhances competitive benefit of organisation by
selecting appropriate strategies from cost leadership, differentiation and focus.
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 Cost leadership strategy- To have competitive benefit the cost is down in consumer
market. To expand the market share the Enterprise Rent-A-Car targets middle class
which creates large market mix of consumers. To increase brand awareness and sales
growth the company focuses on low-priced and easy approachable of produce. The
strategy offers advantage of expanded customer base, brand recognition.
 Differentiation strategy- The growth objectives are attain by using this strategy as the
Enterprise Rent-A-Car focus on exclusive product feature for expanding customer base.
In the consumer mind strong brand image is created by using of brand logo. With the
help of innovation the Enterprise Rent-A-Car can differentiate services (Bekun, F.V and
et.al., 2019).
 Focus strategy- By serving to particular market segment the company is encouraged to
focus on resources. This strategy is adopt by Enterprise Rent-A-Car which offers best
vale and in terms of low cost. The requirements of niche market segment is function at
lower price. The company also focusing on product attributes by making alternation in
product for satisfying customer expectations.
PESTEL Analysis
The external forces of environment is identified by Enterprise Rent-A-Car which is used
by management tool and strategic planning for having support in decision making and leveraging
core capabilities & competencies.
 Political factor- The Enterprise Rent-A-Car is a affected by several factors such as tax
policy, change in policies, trade restrictions, government system etc. With the increase in
taxation the company expenses are increased. The Enterprise Rent-A-Car gets
government support and its success & failure is observed by commercial restrictions and
political stability.
 Economic factor- It involves the factors of labour market conditions, inflation, interest
rate which affects the growth of Enterprise Rent-A-Car. The inflation changes the
purchasing power of consumer which impacts on cost of raw material and inputs. The
company has high sales with high GDP which increases disposable income (Calvo, N and
et.al., 2018).
 Social factor- It is related to the factors of consumer spending pattern, power structure,
demographic trends etc. the buyer structure is influence and social pattern is linked with
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the behaviour of consumer directly which affects on work trend. In context to Enterprise
Rent-A-Car regarding the products and services the consumers are made aware because
of highly access of talented employees with high education.
 Technological factor- It involves technological advancement which is important for
decision making for Enterprise Rent-A-Car. The innovation brings changes in
organisation which helps in communicating with consumer directly as there is expansion
of internet and online business and leads to competitive edge.
 Environmental factor- To become environmental friendly the Enterprise Rent-A-Car
deals with environmental laws. For maintaining standards resource allocation choices are
incorporated. With the changes in weather and climatic conditions the business efficiency
is influenced. The company also adopted the green business practice.
 Legal factor- The Enterprise Rent-A-Car is influenced legal aspects. The minimum
conditions are set regrading the minimum working age in labour laws as it is guidelines.
The company is required to follow several rules and regulations for ensuring safety. The
Enterprise Rent-A-Car protects data of consumer by studying data protection regulation.
The intellectual property right is designed for protecting the company valuable ideas and
patents (Cleberg, C., 2019).
Boston Consultancy group Matrix
This is a planning tool which is used in business for having growth opportunity that
comprises of four components. On the growth level of high or low and market share the matrix is
determined. This matrix is used by Enterprise Rent-A-Car for knowing status of opportunities
and growth.
 Dog- The business in the market place has slow growth because of low market growth
rate and share. The investment requirement is not needed in Enterprise Rent-A-Car as
low cash is generated.
 Question Mark- For the product the market growth is high and market share is low
which requires close considerations as losses are incurred and huge amount of money is
consumed in context to Enterprise Rent-A-Car. It considers the strategic choices of
product development and market penetration (Dadashpoor and et.al., 2018).
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 Star- It involves the markert share and market growth in the cateogry of cash generator
and cash user which is high. The positive cas flow is made that requires strategic choice
of vertical & horizonatl integration in context to Enterprise Rent-A-Car.
 Cash Cows- This helps in determing the low market growth rate and high market share
which is considered as profitable brand. The Enterprise Rent-A-Car invests in stars for
having support in future growth and Cash cow is received.
P2 Evaluating Ansoff growth matrix
It is the strategic instrument utilized for the direction in the advancement of the business
decision. It establishes a method of strategic planning for future operations. Enterprise Rent-A-
Car uses this technique to expand their commercial operations.
 Market penetration- Businesses who seek to expand their market for an established
product employ this method. Enterprise Rent-A-Car expands their customer base by
boosting manufacturing capacity, resulting in increased efficiency and effectiveness. The
corporation accesses the existing market using its existing product and market, resulting
in a higher marketing investment (Deng and et.al., 2017). The advantage of this strategy
is that it is less risky as compared to others but its disadvantage is that it narrow down the
scope of business of reach new market and enhance its sales.
 Market development- For Enterprise Rent-A-growth Car's in the new market, an
existing product is introduced. It is necessary to invest in research and development in
command to determine new markets and consumer segments by analyzing diverse
cultural trends. The brand's awareness has grown, resulting in higher sales and growth in
the new market. The main merit of this strategy is that it helps in reaching new customers
and market while its demerit is that it is risky if no proper market research is done before
entering the new market which can led to failure of business.
 Product development- For the company's growth, the new product is expanded in the
existing market by making essential modifications and improvements to the product in
order to provide it to new consumers. Consumer demand can be determined by investing
in Enterprise Rent-A-research Car's and development activities (Dicke, T.S., 2017). The
main benefit of this strategy is that it helps in fulfilling the market demand as new
product can be launched while its demerit is that it is costly and time consuming to
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implement as a lot of market research is required and one wrong decision can lead to
losses for the company.
 Diversification- Enterprise Rent-A-Car is investing in new goods and new markets to be
competitive and innovative in its growth and development. A new product is introduced
into an existing product line as part of vertical diversification. There is a launch of new
product development in the horizontal diversification, and the economic environment is
shared similarly. The main advantage of this is that it helps in taking competitive
advantage in new market by introducing something new in market while it is a risky
strategy to implement.
M1 Discussing growth options for having understanding of competitive advantage.
In the company various marketing strategies are developed for having expansion of
business activities and macro factors are analyzed. The company take use of Ansoff matrix to
improve productivity and increase market share by having expansion and development in new
product.
P3 Evaluating sources of funding with its benefits and drawbacks
For the startup and operation of the business, many sources of funding are sought.
Finance is the lifeblood of any firm, as money is needed to carry out operations. To fulfill the
long-term goals, monies are set aside for the organization, which aids in increasing productivity
and efficiency. The growth of Enterprise Rent-A-Car necessitates a variety of sources, including:
Retained earnings- The business keeps the portion of net earnings that is not normally
delivered to shareholders in the form of dividends and is known as retained earnings. It is a
source of the organization's own funding. Enterprise Rent-A-Car uses this source to generate
revenue in the future to meet additional requirements (Fernando, Y and et.al., 2019).
Benefits- It provides a constant source of income for the organization, providing
flexibility and operating freedom. The capacity to withstand unexpected losses is increased, and
this does not include explicit costs like as interest, dividends, or flotation costs.
Drawbacks- Profits in the business fluctuate, making it a risky source of funding.
Shareholders may be dissatisfied because they receive a reduced dividend as a result of excessive
ploughing back of undistributed profits. The company fails to understand the corresponding
opportunity cost, resulting in inefficient use of capital.
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Trade credit- Payment to the trader from whom goods and services are purchased is not
made immediately in such a source. The records show as several debtors in the buyers' accounts.
It's a type of short-term financing offered by Enterprise Rent-A-Car to customers with strong
credit and a solid reputation.
Benefits- This source of funding is convenient and ongoing since credit can be obtained
by determining the customer's credit worthiness to the vendor. Enterprise Rent-A-Car sales are
encouraged, which helps to increase inventory levels. There is no charge on the assets to give the
funding (Garnaut, C., 2020).
Drawbacks- If the trade credit facility is readily available and flexible, the company may
be at danger of over trading. A restricted number of funds is generated, which makes it more
expensive to raise funds when compared to alternative options.
Public deposits- The funds are raised directly from the general public at a high rate of
interest. This deposit benefits both the organization and the depositor. The company is accepting
public deposits for a period of up to three years. It covers Enterprise Rent-A-short- Car's and
medium-term financial needs.
Benefits- The procedure for getting the deposit is straightforward and does not entail any
restrictions. It is less expensive than borrowing money from a bank. Because depositors do not
have voting rights, the company's influence is not diluted (Macário, R. and Van de Voorde, E.,
2022).
Drawbacks- The difficulty of acquiring capital through public deposits is a problem for
fledgling businesses. When a corporation requires finances, the public does not recognize it,
making it an unreliable source of funding. When the number of public deposits required is
significant, collection becomes challenging.
M2 Evaluation of potential sources of funding
The company can expand its business by evaluating numerous sources of funds. In
context to Enterprise Rent-A-Car it take use of retained earnings for keeping some money in
reserve to fulfill future requirements. The use of public deposits can also be beneficial for the
company in raising funds for additional purchase of cars so that facilities of car rental can be
provided to consumers in accordance to their comfort.
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P4 Designing business plan for growth
It is defined as formal document which states the vision and strategies of company that
helps in achieving long term goals in future. To prepare business plan in context to Enterprise
Rent-A-Car various elements are involved which is shown as blue print.
Executive summary- By taking use of several models the growth opportunities is been
discussed. For the expansion of company the business plan is prepared along with the
organization mission, vision, objectives and market strategy is been stated. The business plan is
prepared in Context to Enterprise Rent-A-Car which is American rental car agency that have
focus on car replacement because of accident, theft, mechanical repair etc.
Business Description- In context to Enterprise Rent-A-Car the mission is of offering
great place of working to employees and to provide best services of transportation in global. The
company vision is to strength community and to reward handwork with opportunity by taking
care of employees. The Enterprise Rent-A-Car objective is to increase sales by having growth in
market share. The company wants to have loyal customers through enhancement of brand
strength. To manage the cost effectively for increasing the profitability (Maghfiroh, S. and
Primasari, D., 2022).
The product and services provided by the Enterprise Rent-A-Car is offering of long-term
commercial vehicles and provides rented car by focusing on home city. This also provides local
and airport rentals, exotic car hire, car sharing to customers.
Market analysis- The market trend of Enterprise Rent-A-Car involves the increase
demand of online car rental services. The STP is taken in market analysis. In accordance to
booking type, vehicle type, application type and the final consumer the market segmentation is
done. In the wide geographic area targeting is done to every age groups in accordance to the
customer requirements. In context to Enterprise Rent-A-Car the positioning is done on basis of
offering quality services and varieties is provided to have brand recognition in minds of
consumer (Rahmawati, S.E. and Gani, L., 2022).
The SWOT analysis in context to company describes strategic planning for having
growth in future market. The strength the company will have of high brand recognition,
customers services and services that are offered at airport location and in large area. The
weakness Enterprise Rent-A-Car will have of using outdated technologies, websites and facing
difficulty in navigating for international expansion. The opportunities to company is having
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expansion in car share for having long term investment, more rentals and increment in profits.
The threat is of increases in prices of fuel and fluctuations, decreases of future and repeat
customers.
Marketing and sales strategy- for the product promotion the Enterprise Rent-A-Car will
take use of diverse techniques of promotion and according to marketing mix the marketing tactic
is taken which involves product, price, place and promotion. The company will make
arrangement of funds by taking evaluation of many sources of financing such as retained
earnings, trade credit to have growth and expansion. The pricing is set in accordance to
customers affordability. The sales strategy is made by the Enterprise Rent-A-Car for
differentiating from competitors by development of value propositions (Rosewell, B. and
Hargreaves, J., 2022).
Financial Plan- The sources of income is maintained to have growth. The projected
cash flow statement, income statement is prepared by the company so that its financial position
can be known. The budget is also prepared by making record of all incomes and expenditures so
that in the efficient ways funds can be utilized and it can be known how much more funds is
required.
Company structure and management team- The flat structure is used by Enterprise
Rent-A-Car as it has decentralised power with high scope of specialization. By having clear
understanding the decisions are taken rapidly. To adapt the changes with the change in
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environment the business structures needs to be flexible. The management layers are few and
management of team is done by managers, board of directors etc.
Monitoring and controlling- The sales are made compared for knowing the progress of
company, its profitability and increase of market share. The company can take use of several
action plans for modifying plan such as benchmarking so that actual performance with projected
plan can be made compare (Singh, A.K. and Jain, A.K., 2022).
M3 Detailed business plan is developed for growth and securing investment, setting out strategic
objectives,
In preparing the business plan several steps were taken to have effective utilization of
resources for the Enterprise Rent-A-Car. With the help of business plan it offers understanding
of business objectives in detail. There is analysis of market and financial projection is taken. For
the future requirements there is also an evaluation of sources of funds. To have the expansion of
the company internal and external factors and growth strategy is considered.
P5 Assessing exit or succession options for a small business with benefits and drawbacks
The organisation is required to make exit plan or succession options by having complete
study of present market conditions. This ideas helps lot in making effective decisions regarding
the business growth. In a new market the Enterprise Rent-A-Car is planning to have expansion
of business functions. The company of Enterprise Rent-A-Car consider the exit plan of
succession planing.
Exit plan- This strategy is used for making determination of factors which puts affect on
the business functioning. The success can be promoted by identifying problems. This plan is
made with the purpose of minimizing tax burden at time of exit and maximizing business value.
In context to Enterprise Rent-A-Car this strategy is used which involves several aspects.
 Selling firm in open market- For the entrepreneurs it is found to be an good option of
purchasing business which is already established as only rights and responsibilities is
transferred to someone else and business owner is changed. The business owner is
responsible in making business attractive so that buyers take interest. The advantage is
that employees already exist which makes easy for new owner to continue business as
their know their roles. The disadvantage is selling valuation is low and time consuming
process to find interested buyer in open market (Smith, H.L. and De Silva, M.L., 2022).
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 Liquidation- In such debts and liabilities are amortise in selling of assets after leftover
amount is apportioned equally to the organization employees after writing all the debts
and liabilities accurately. The advantage is top management get free from debts and
liabilities easily. The organization has drawback of paying debts first to its creditors.
Succession plan- In this it employ to business organisation development and
applicability and ascertain the leaders to replace the present employees after they leave the
organization. There is transfer of power from one person to another. Succession planning help
the transfer of power from one individual to another. The Enterprise Rent-A-Car could make a
plan for that organization that can effectively consider all future factors & oversees the
uncertainty of any unfavorably situations.
 Merger and acquisition- This assist in keeping the succession plan of departments. The
one company is integrated with another for making the effective operative and
completion of task together. The acquisition is like to take over of same firm by large
company. The advantage is skills and abilities are increased which assist in handling with
the hazard and uncertainty. The disadvantage is there can be duplication of the business
dealings which can be short coming for the company (Teeluckdharry, G.D., 2022). .
According to analysis, the exit plan and succession plan is highly appropriate choice for
Enterprise Rent-A-Car as different advantages is offered to the company which helps in
maintaining its future goals.
M4 Evaluating exit or succession options for a small business by comparison and contrasting the
options
From the above discussion by making evaluation of all choices the succession planning is
recognized as appropriate choice for the company of Enterprise Rent-A-Car. There are various
exit strategies which involves liquidation, selling of business and many more. In the context to
Enterprise Rent-A-Car the company is looking to expand it business which can consider
succession planning as best option. Exit option may lead to closure of business which can affect
its establishment as well as goodwill while succession will help it to grow by entering new
market or may be launching new product for its sales enhancement and profitability.
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CONCLUSION
From the above it has being concluded that for the business entities planning is an
essential aspect which offers growth and success in market. For the business organisation it
becomes important to have analyses of all the factors which is related to business. The market
condition is understand with the help of growth matrix and external factors. The firm also makes
an evaluation of different funding sources to have the expansion. Along with the business plan
act as blue print for the company as it outline the complete plan which will be followed by the
company to have growth in business operations. Further there is an detail analysis of exit plan
and succession options with its limitations and advantages. The organisation has the best solution
of leaving the market by paying all debts if company is not getting success and not able to
perform its tasks in effective manner.
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