Planning for Growth in Business: Key Considerations, Ansoff's Growth Matrix, Funding Sources, and Business Plan Design

This report discusses the importance of planning for growth in business and covers key topics such as evaluating growth opportunities, applying Ansoff's growth matrix, assessing potential sources of funding, and designing a business plan for growth with financial information and strategic objectives. It includes a case study of Thirdway company, which provides solutions related to interior decoration. The report also covers PESTLE analysis and the benefits and drawbacks of different funding sources.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context..........................................................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix....................3
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................5
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.............................................................................................7
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option...........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the era of stiff competition between different companies, it is essential to focus on
planning and policies development. The planning for growth is one of the major terms which
helps in increasing the chances of success of a company. All the major companies in the
international and national marketplace focus on planning and development in order to achieve
the best results. The main role of a business is to facilitate planning and development with the
help of strategies and approaches in order to gain competitive advantage. The project includes
example of Thirdway company which is considered as one of the most finest companies which
provides solutions related to interior decoration. This report will focus on major expansion
opportunities that are available to a company in order to expand business operations. This report
also covers application of Ansoff growth matrix model in order to achieve effective goals and
objectives. The project will also include major sources related to funding in order to support the
financial development of a business.
MAIN BODY
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context
In the development of a business entity, growth opportunities play a significant role. It is
one of the major roles of a business to analyse the growth opportunities and take advantage of
them in a well defined manner(Widodo and et. al., 2018) . Selection of growth opportunities also
makes a company more vivid and dynamic at the marketplace. The key factors along wit the
advancement of competition and detailed analysis of market are mentioned below:
Competitive Advancements-
In order to develop competitive edge at the marketplace, it is necessary for a company to
take help and assistance of two major models. The two major models and theories which could
be used by Thirdway company to dominate the marketplace are PESTLE analysis and Porter's
generic growth strategies.
Porter's generic growth strategies-
The application of Porter's generic strategies is essential to be implemented in an
organisation for increasing chances of success. Main focus of a business should be on
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development of this application model in order to increase chances of stability. The analysis of
Porter's generic model for Thirdway company is explained below:
 Cost leadership- The cost leadership is one of the major methods which is supportive to
company in development of prices of products and services. In order to increase the
efficiency and effectiveness of a business, it is important to take into consideration
concept of cost leadership(Smith, 2021). The cost leadership is actually referred to
providing key and major products on reasonable and affordable rates. This helps in
increasing the sales turnover ratio and revenue of a company.
 Differentiation- This is based over strategy which is based upon key approach that helps
Thirdway company over providing quality services. In this main approach is based upon
selling of products and services that has to be kept in mind by various companies. The
differentiation relates over approach that makes development of innovative ways that has
been helping in carrying out business activities in systematic manner.
 Focus- This is based over various kinds of key elements which are applied within
Porter's generic strategies and provides assistance based upon major product and service.
The main focus is upon quality of product and services that helps Thirdway for
accomplishing its goals and objectives. The main focus is based upon operating
organization helping in achieving planning and policies based upon framework for
developing organizations.
PESTEL Analysis
This is an important tool which is used in order to develop understanding about various
kinds of macro environment factors that impacts business on large scale. Further, PESTLE
analysis has been conducted in relation to Thirdway has been done as follows:
 Political factors- The political factors is based upon associating with rules and
regulations which is developed by government in order to control business organisation
The main role of business which is based upon analyzing political factors attaining scope
for performing ethical operations. United Kingdom government has their own
formulating laws which is best example for various factors.
 Economic factors- The economic factors is based over inflation, recession and
depression rates that has been prevailed within economy. This is important for business
organizations making focus developed over analysis upon economic factors which makes
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understanding developed over demand and supply of key products and services.
Economic policies and plan of UK government has been applied by Thirdway company
in order to attain growth and expansion in marketplace.
 Social factors- Social factors are based upon cultural and traditions which makes key
policies and plans developed for understanding about customer preferences(Seiwer and
Rößler, 2020). Thirdway company mainly focused on developing of culture in order to
facilitate development of workplace and its internal environment.
 Technological factors- The technological factors relates with technological development
that makes operations conducted with better efficiency. These are main elements which
leads towards making business enhancement possible in relation to production,
manufacturing and delivery process. The main role of technology is related to
management of information system, customer relationship management software and
decision support system. Thirdway uses technology to ensure that task is completed
within effective period of time.
 Environmental factors- These are those factors which is based over creating
environmental awareness within society. Further, environmental factors deals upon issues
related to environment like pollution, waste management and carbon foot prints.
Thirdway uses such factors for suggesting solutions over environmental problems which
make customer base enhanced leading towards growth and development.
 Legal factors- The legal factors are based over rules and regulations which is used for
applicability of legislation formed by government of UK. Thirdway is required to follow
these laws in order to attain protection from any kind of legal issue that can hamper
success of business organisation
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
The most important analysis that is based upon generating growth opportunities is most
essential for business entry in order to develop key functions. The Ansoff growth materix is that
kind of matrix which is used for applying which is helpful for business in order to increase
chances with systematic growth. The Ansoff growth matrix which is that type of major growth
that has been developed by H. Igor Ansoff for developing systematic growth opportunities for a
business. The practical application of Ansoff matrix for Third Way company has been discussed
as follows:
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 Market penetration- The primary stage within Ansoff matrix is based upon penetrating
within marketplace. This approach includes increasing of sales with existing products in
current marketplace. Under it less efforts are required for managing is sales with existing
product in current marketplace helping in achieving objectives of an organization In this
main roles and responsibilities of management of an organization in order to promote
sales within existing marketplace for achieving sales target that has been set by an
organization.
 Product development- The development of products is one of the major and key
approaches which should be adopted by major companies. It is one of the major roles and
responsibilities of marketing management in order to develop precise approach in
carrying out business operations(Rauscher, 2021). This strategy includes promoting sales
of new products in existing marketplace. The main purpose of this business function is to
analyze development of products sales in order to bring innovation for key customers.
The Thirdway company is involved in increasing product development of major services
in order to implement best and suitable practices for innovative products that are set
according to demand of current business trends.
 Market development- The market has been developing which is one of the major factor
that makes impact to be formed over revenue and profitability of product and services. In
order to make domination the marketplace with market development that is an important
function of business. The market development is based upon major factors which
promotes sales activities within new marketplace of an existing product. This is key roles
and responsibility of an organization helping in achieving promotional sales activities
within new marketplace of existing product. It is key roles and responsibilities has been
made by an organization for developing major focus upon promotional activities which
requires major efforts to be taken.
 Diversification- The diversification strategy is an major part of Ansoff matrix that helps
in developing diversification. In this diversified of marketplace which is based upon key
functions that is focused with growth and development chances that is effective in
making an organization dynamic. The approach states organizations changes with its
operations by promoting sales of new product within new marketplace.
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P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
The funding is major approach that has been helping in providing proper and adequate
funds for an business to expand its operations. The approach of business is developed in
systematic operations making expansion(Perloff and Wingo, 2019). The business should
approach development in systematic operations making expansion of operations possible. The
business is required to develop systematic approach towards operations of business. Key
parameters and methods for funding to be used by Thirdway company has been explained as
follows:
Investment with the aid of using self- The non-public funding is the predominant sort of funding
that is accomplished and evolved with the aid of using commercial enterprise owners. It is a
primary technique that is utilized by many worldwide and country wide companies. The
principal function of a commercial enterprise proprietor is to increase targeted movements and
additionally boom funding ratio with the assist of systematic funding.
 Benefits- The key advantage of private funding is, it does now no longer shape any sort
of legal responsibility for the commercial enterprise proprietor. In different words, it is
miles one of the maximum dependable and bendy approach that may be utilized by a
commercial enterprise entity to increase targeted funding associated operations. As
properly as there may be no duty on proprietor to pay off commercial enterprise money
owed and it additionally gets rid of destiny risks. Drawbacks- Main disadvantage of private funding is, it enables in obtaining restrained
quantity of finances. The hazard related to the economic operations of the organization is
likewise excessive in those styles of finances. It is one of the key function of a
commercial enterprise to awareness on finances and their acquisition in a particular way
to increase key technique.
Bank loans- The financial institution loans are typically used reassets of investment which
enables a organization to increase their operations. It is one of the maximum crucial function of a
commercial enterprise to take financial institution loans with the aid of using achievement of all
predominant formalities with a view to boom probabilities of commercial enterprise
improvement and success. Most of the a hit small firms think about Banks loans with a view to
increase targeted operations.
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 Benefits- The principal advantage of taking loans from Banks consist of small
installments which can be to be paid with the aid of using companies. Another
predominant benefit of financial institution mortgage is, it is miles one of the maximum
formal methods to consist of key awareness on commercial enterprise operations.
Another predominant advantage of Bank mortgage is the installment date will be
prolonged consistent with precedence of the commercial enterprise enterprise with the aid
of using paying a nominal charge(Monstadt and Meilinger, 2020). The financial
institution mortgage and its approval takes little or no time which makes it simpler for the
enterprise. Drawbacks- It is principal function of a commercial enterprise to awareness on thinking
about drawbacks and boundaries of Bank Loan. The principal drawback of financial
institution mortgage is burden of more fee related to them with inside the call hobby rate.
Also, there may be a strict agenda of reimbursement of the money.
Creditors- The lenders are taken into consideration as predominant reassets of finance which
may be a primary alternative to be had to commercial enterprise entities. It is principal function
of a commercial enterprise to awareness on taking finance from lenders to keep improvement of
operations.
 Benefits- The advantage of taking economic assist from lenders consists of predominant
awareness on improvement of commercial enterprise operations. Major advantage of
taking economic assist is, the reimbursement is prolonged consistent with the need of
commercial enterprise proprietor. Another predominant benefit of taking credit score
from lenders consists of number one awareness on mortgage nature and grants. Drawbacks- Main drawback of taking loans from lenders consists of that there may be
no formal settlement among the two parties. It is one of the predominant function of a
commercial enterprise to research key elements which might be effective a commercial
enterprise extra dependable on reasserts of investment.
Angel buyers- A commercial enterprise can take mortgage from angel buyers with a view to
formulate predominant practices which might be powerful for commercial enterprise
organisation The funding in a commercial enterprise is facilitated with the aid of using angel
buyers with a view to extend and develop commercial enterprise operations.
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 Benefits- The principal benefit of taking economic assist from angel buyers consist of big
quantity of investment. This enables in improvement of key commercial enterprise
operations in an powerful way. Angel buyers also are committed to offer any sort of
economic help every time organization calls for it.
 Drawbacks- Main disadvantage of choosing angel buyers as a supply of finance is
hazard related to debt reimbursement. It is one of the key roles of angel buyers to offer
help to economic help however they consist of hazard aspect on the equal time.
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
In the functioning of a commercial enterprise organization, marketing strategy is a main
file which affords making plans associated with each element of commercial enterprise entity. It
is important position of a commercial enterprise to broaden marketing strategy so that
organization can benefit improvement of important commercial enterprise operations in a fixed
duration of time(Liu and et. al., 2020). The marketing strategy consists of numerous parameters
and dimensions which are essential for growing commercial enterprise increase. In the
technology of stiff opposition among distinct groups, it is far important for a commercial
enterprise to take help of marketing strategy for growing probabilities of gaining aggressive
benefit. The marketing strategy of Thirdway organisation is referred to underneath for scaling up
commercial enterprise and its dimensions:
 Executive summary- The Thirdway decorations organisation is following key method
on the market through growing probabilities of commercial enterprise improvement. The
fundamental plan of commercial enterprise is to enlarge its operations inside the market
of United Kingdom through starting greater branches in Birmingham, Manchester and
London.
 Products and offerings- The Thirdway organisation will offer exceptional primarily
based totally indoors decorations offerings to important customers. It is one of the
important roles of Thirdway decorations to offer key and powerful merchandise
additionally for residence nicely being.
 Mission and imaginative and prescient- Main imaginative and prescient and
assignment of organisation is to be hooked up as one of the best groups in United
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Kingdom inside the area of indoors decorations(Jain and Korzhenevych, 2020). The
organisation is creating a imaginative and prescient to be the quality indoors decorations
associated answers issuer so that organizationcan attain key and aggressive edge.
 Strategic objective- The Thirdway commercial enterprise is making plans to undertake
quality strategic method on the market through competing with important competition on
the market. It is one of the important roles of organisation to broaden techniques in line
with dynamic nature of market to steer the opposition.
 Operational approach- Operational approach of organisation will encompass
specializing in greatest utilisation of assets to benefit aggressive increase. The operational
approach of Thirdway organisation may even encompass improvement of an professional
operations control branch so that organization can boom probabilities of aggressive
increase. Unique promoting preposition- In order to benefit a terrific and main location
on the market, it is far essential for commercial enterprise company to broaden
USP(Jafari, 2022). The Unique promoting preposition of Thirdway organisation is to set
quality strategies primarily based totally on facts and era so that organization can broaden
aggressive increase so that organization can benefit market improvement.
Stage 2 – Industry/Market Analysis
In order to examine the enterprise and the scenario of market, it is far essential for
Thirdway organisation to carry out enterprise primarily based totally evaluation(Horn, 2020).
The SWOT evaluation might be the frameworks which must be implemented through Thirdway
organisation so that organizationcan benefit effectiveness on the market. The SWOT evaluation
of Thirdway organisation is referred to underneath:
Strengths Weaknesses
 The strengths are talents of a
commercial enterprise company which
allows in overcoming important
boundaries and hurdles. It is one of the
important position of control of a
commercial enterprise to recognition on
key strengths so that organizationcan
 The weaknesses are taken into
consideration as fundamental key
boundaries which might be confronted
through the organisation at market.
 Human aid control and advertising
control are important weaknesses of a
organisation that may negatively effect
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boom aggressive method.
 The fundamental strengths of Thirdway
consists of its expert team of workers
and strategic branch. These strengths
will help the commercial enterprise
entity to boom probabilities of
achievement on the market.
on operations of the organisation.
Opportunities Threats
 The key possibilities which might be to
be had to Thirdway organisation
consists of golden probabilities(Horn,
2020).
 The increase and growth on the market
are important possibilities which are to
be had to Thirdway organisation on the
market. It is fundamental roles and
obligations of pinnacle stage control of
organisation to take benefit of the to be
had possibilities.
 The threats are taken into consideration
as important worry elements for groups
which might be acting their features on
the market.
 It is fundamental position of Thirdway
organisation to examine scope of key
threats and broaden systematic
operations to steer opposition. The
competition are important threats for
Thirdway organisation which develops
probabilities of aggressive increase.
Stage 3 – Financial Plan
Pre-launch cash budget (In £)
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 9000
Credit sales 3000 4000 4000 3500 1200 3200 4500
Total inflows 11000 4000 4000 3500 1200 3200 4500
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Cash outflows
Fixed : Equipment’s 3000 2400 1500 3000 1100 1400 900
Variable : Direct material 200 200 300 400 140 600 300
Total outflows 3200 2700 1700 3400 1250 2000 1200
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100
Stage 4- Monitor and Control
The tracking and manipulate of key operations is maximum critical position and
obligation of Thirdway organization In order to screen and manipulate key operations associated
with companies, the primary position of Thirdway organization is to consciousness on
improvement of powerful supervision and manipulate on all operations.
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.
As per this various phases are faced by an organization which leads upon making
management take decisions with effectiveness for helping in sustaining of different(Hayat, Khan
and Ashraf, 2019). Exit planning is based over various kinds of decisions helping in attaining
success. There are various alternatives that has been adopted by organization which has been
discussed as follows:
 Joint Venture: Joint venture is based upon those process within which two organization
come together and operates upon proper agreements related to law. Third way should be
based over developing performing joint venture with other firms like Andrew Martin etc.
 Benefits: The organizations shares costs and risks which makes joint venture over
reducing risk with potential situation with different regions.
 Drawbacks: There are different conflicts within two firm and joint venture which has
been proven to be expensive for them.
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 Merger: This is based upon various process within which two organization has come
together by forming new venture that has been operating as single business organization.
Through applying the method both organizations has been expanding over growing
business.
 Benefits: The tax and financial benefit for firm has helped in gaining competitive
advantage.
 Drawbacks: There is a decline in the jobs available to people with reduced productivity
of the employees of the smaller organization
CONCLUSION
From the above evaluation it could be concluded that making plans for increase is one of
the foremost and powerful processes which enables a organization to broaden systematic
operations. This mission concludes that to be able to lead the competition, it is miles vital for a
organization to consciousness on making plans and improvement with the help and assist of
professionalism. This evaluation concludes that strategic making plans is taken into
consideration as one of the foremost processes which enables a enterprise to boom possibilities
of specific increase. This mission concludes that to be able to benefit competency aspect on the
marketplace, it is miles vital for the groups to take help of making plans with the assist of
personnel who're educated and experts. This mission additionally concludes that methodical
making plans is the important thing to achievement for foremost groups with inside the
international and country wide marketplace.
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