Planning for Growth: Assessment and Strategies for Small Businesses

This document discusses the important considerations for assessing growth opportunities, financing options, and creating a detailed business plan for small businesses. It covers topics such as Porter's Generic Strategies, PESTLE analysis, Ansoff's matrix, and potential sources of financing. The document provides valuable insights and guidance for small business owners looking to plan for growth.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Important deliberation for assessment of growth opportunities........................................3
P2 Assessment of development chance with Ansoff's matrix................................................5
TASK 2............................................................................................................................................6
P3 Potential source of financing.............................................................................................6
TASK 3............................................................................................................................................9
P4 Detailed business plan.......................................................................................................9
TASK 4..........................................................................................................................................13
P5 Critical evaluation of exit or succession options for small business and making a decision
of appropriate courses of action...........................................................................................13
CONCLUSION..............................................................................................................................14
REFERNCE...................................................................................................................................15
Books & Journal...................................................................................................................15

INTRODUCTION
Planning for growth is considered as an activity or function in which the manager of
organisation focuses on making effective planning for growth of organisation. They also focus
on appropriate utilisation of resources within business organisation. In this assignment the small
organisation is taken which is named as Knight and Duke Homes they provide renting as well as
selling house services to its customer for satisfying them. In the assignment they also make
discussion regarding the opportunity for growth as well as source of finance. In addition to this
the planning for business is prepared in order to improve the growth of success of business
organisation and lastly they give discussion regarding the exit options in regards to small
organisation. It is necessary to detailed assessment of internal as well as external environment for
increasing the profit margin. For detailed assessment it is necessary for organisation to use Porter
generic strategy. The Ansoff matrix is also adopted for future growth and development of
organisation. It has also been analysed that it is necessary to adopt appropriate to suitable
business plan for increasing or achieving the objective for goal of Organisation in a stipulated
period of time (Kleeberg, Neyen and Kalettka, 2016).
TASK 1
P1 Important deliberation for assessment of growth opportunities
It is the duty of organisation to grab the opportunity so that they make appropriate
strategy and also implement it. It is necessary for business organisation to assess the internal
environment resources as well as core competency. They also focus on assessing the external
environmental factor that imposes direct effect on business. Porter generic strategy model that is
going to be mentioned below:
Porter's Generic Strategies: It is very useful for business organisation to adopt
appropriate strategy for achieving sustainable benefits. The business organisation focuses on
taking the benefit related to cost by reducing cost as well as producing products. There are
various strategies that are going to be mentioned below:

Cost leadership: Here in these strategies adopted by business organisation for increasing or
boosting the market share and also focuses on reducing the price of products for their user. This
is used for increasing sales and also implementation advanced technology. It also assists in
eliminating the cost. Therefore the Knight and Dukes Homes Company adopt this strategy for
providing goods as well as services at low price in order to gain market share.
For instance the main purpose of this company is to provide innovative and quality products
and services to its customer at relative fewer prices. They offer renting as well as selling house
services to its customer at affordable price.
Differentiation Leadership: This is considered as a strategy that offer a unique or specific
product and services to its user by launching different features related to differentiation in goods.
It is important to satisfy the need of the customer of Knight and Dukes Company and also it
helped them in boosting the cost of the product. Here in the main purpose is to provide
differentiate product with customer. The company focuses on providing discount less interest

rate while providing loan renting as well as selling house services to its customers during the
particular phase of time period
Focus: Focus strategy is adopted by organisation and here in the main focus of company is
on cost or differentiation. The cost focus strategy emphasised on eliminating the price for
increasing market share. And the differentiation focus strategy emphasized on satisfying the
requirement of user during the particular phase of time. Here in the main purpose is to provide
differentiate products customer at relative less price.
On the basis of above mentioned this strategy it has been analysed that Knight Duke Home
Company adopt differentiation strategy in order to provide the unique as well as different
product as well as services to its customers for gaining competitive edge. It assists them in
boosting the cost and also boosting the whole percentage of profit margin (Holl and Rama,
2019).
PESTLE Analysis:
PESTEL analysis is a Framework that is adopted by business organisation for assessing
the different environmental factor. This assessment is useful for improving and understanding
regarding the favourable or adverse effect of these element and also they used for strategy
planning that help in implementing a procedure for innovative business. The PESTEL analysis
for Knight and Duke Homes Company that is given below:
Political factor: Due to intervention of the government it imposes negative impact on
company. There are various political factors such as trade policy as well as is political stability
that it must be considered by various organisations for survival and maintenance of company.
Due to the minimum regulation of government on small business organisation that is very useful
for whole development or improvement of the company. On the other hand the Brexit imposes
adverse impact on the flow of money or liquidation with individual person. This imposes adverse
effect on current sales level of knight and Duke home.
Economic factor: Economic factor plays a very important role for implementing for
increasing profit margin in order to reduce the adverse economic situation. There are various
economic factors like inflation and deflation exchange rate as well as many more. Due to the
taxation structure that help the company in targeting customer in order to increase sales. On the
other hand due to increase rate of interest the purchasing power of individual person reducing
and it decreases or erode the sales of company.

Social factor: Social factor involves different factors like taste, Lifestyle or preferences
of customer. It imposes direct impact on the sales of business organisation. This company
focuses on increasing the living standard of individual person and provide the innovative
services to its customer that help in increasing the profit of company on the other hand due to
increase in level of competition it is not possible for firm to change their policies for cope up
with the changing need of customer.
Technological factor: Here in the company focuses on implementing latest technology for
offering innovative product as well as services to its customer which is useful for organisation on
the other hand the cost of executing advanced technology is very high that imposes negative
impact on the organisation (Ramondetti, 2018).
Environmental factor: The Knight and Dukes Homes Company focuses on providing
environment friendly product to its customer for satisfying the need of customer. It increases the
profit margin on the other hand due to increase in pollution it decreases brand image of the
company in mind set of customer that imposes negative impact on the company.
Legal factor: Legal factor involves laws regulations as a legislation which must be
followed by the company for increasing their profit margin. On the other hand the laws as well as
regulations are changed very frequently so this is not possible for company to cope up with the
changes that imposes negative impact on the company.
P2 Assessment of development chance with Ansoff's matrix
Ansoff matrix is adopted by the organisation to assess the strategy in relation to
marketing of organisation. The growth of organisation is based upon the selling of present
product innovative product in the present or innovative market. Therefore the senior manager of
the Knight and Dukes home focuses on following this strategy that is going to be mentioned
below:

Market penetration: Market penetration focus is on selling a product as well as services
in present market. Their main target is to attract ample of customers by providing them product
or services at relatively low cost. In reference of Knight and Duke Company they provide the
loan services to the other company at relatively low cost for increasing market share with
reducing risk. Herein the main purpose of Knight and Duke Company is to sell their existing
renting as well as selling house services to its customer at fewer prices for attracting customer.
Product Development: Product development signifies the modification or alteration in
present product for satisfying the need of customer. Due to change in need of customer very
frequently it is important to essential for company to adopt new strategy for developing new
product in current market. Here in the manager focuses on developing innovative services by
providing renting as well as selling house services such as a less interest rate, discount rate to its
customers so that they attract towards company. Knight and Dukes Homes Company focuses on
providing the renting as well as selling house services to its customers for satisfying them. They
also make appropriate research for analysing the strategy which is made by the competitors and
also they focus is on extensive research for gaining competitive advantage. Therefore they offer
renting as well as selling house services for gaining competitive edge at Marketplace.

Market Development: The main purpose of business organisation is to sell the present
product in the innovative market. Therefore the knight and Duke Company focuses on
implementing advanced technology in order to attract large number of customer in new market.
It is quite risky but gives higher rate of return during the particular phase of time period. For
example here in the company focuses on providing renting as well as selling house services
services to its customer in New Market therefore it is considered as a risky stage but give higher
rate of return during the particular phase of time period.
Diversification: Here in the company focuses on increasing or boosting its level of profit
margin and expansion of its market share by selling innovative product in new market place. It is
quite risky stage but give higher rate of return to the company. In reference of Knight Duke
Home Company the senior manager focuses on bringing new idea for launching new product in
the new market (Ennis, 2017). For example the Knight and Duke Company provide innovative
renting as well as selling house services to its customer in new market during the time period.
From the above given strategy it has been analysed that Knight and Dukes Homes
Company focuses on providing the renting as well as selling house services to its customers for
satisfying them. They also make appropriate research for analysing the strategy which is made
by the competitors and also they focus is on extensive research for gaining competitive
advantage. Therefore they offer renting as well as selling house services for gaining competitive
edge at Marketplace. This organisation adopts market penetration strategy in order to provide
existing products and services to its user at relatively less price.
TASK 2
P3 Potential source of financing
Investment decision-making
Herein, the management team focuses on making a budget for investing in business
organisation for grabbing the opportunity and gaining a competitive edge. So that the top
management of Knight and Dukes home company focuses on taking appropriate decisions for
success or development of organisation which is depend upon the buying of shares, assets as well
as debts.
Methods of financial appraisal

This is used by business organisation for aim of giving worth to money over a time and
different method which is adopted by Knight and Duke Company for taking appropriate
decisions in relation to investment that is going to be given below:
Pay Back Period: It is described as a procedure in which the manager focuses on recover
the investment money. In reference of Knight and Duke Homes Company the payback period is
used by business organisation for a specific project for refunding or recovering the cost or price
of investment that is determined in terms of year as well as month.
Net present value: It is the deduction of current worth or value of cash outflow from
current worth of cash inflow by considering the interval of time. In reference of Knight and
Dukes Company the senior management focuses on assessing the essential information, values of
business, innovative ideas as well as cost that is linked to the inflow or outflow of cash
(Köseoğlu and Almeany, 2020).
Source of finance
For growth organisation need the large amount of fund for performing or carry out their
day to day transactions or carry out their functions and activity for increasing profit. In reference
of Knight and Duke homes company the manager emphasized on managing or handling the
different activity and operation in effective way for fulfilling or satisfying the obligation in
relation to finance within business organisation. There are various sources of finance that is
going to be mentioned below:
Bank loan it is considered as the money that is taken by the organisation from the
financial institution as well as bank on given the security. It is a contract among the organisation
as well as Bank in which it is the duty of the organisation to give the principal amount with
interest rate. Therefore the Knight and Dukes Company focuses on taking loan from Bank in
order to increase their profit margin and paid to the bank the principal amount along with the rate
of interest within a specified period of time.
ADVANTAGES DISADVANTAGES
Bank loan assist the organisation in satisfying
the requirement of fund for future growth and
development of organisation.
The main or Primal disadvantage of adopting
this method is it charges a higher rate of
interest that is repaid by company in targeted
period of time.

Crowd Funding: It is considered as a source of funding through which company focuses
on taking finance from large institution.
ADVANTAGES DISADVANTAGES
The primary advantage of adopting the crowd
funding method by night and you company is
to improve the growth of the business in future
period of time
the Primal disadvantage for night and use
company is that day need large amount day
take too much time and contribution to operate
their business in successful manner
Evaluate potential sources of funding:
From the above-mentioned source of funding bank loan can be considered as the most
appropriate source of funding in which the organisation take loan from the financial institution or
the bank and return that amount with interest rate in pre-decided or targeted period of time (Shin,
Kim and Lee, 2019).

TASK 3
P4 Detailed business plan
Business plan is considered as a written document that is adopted by business
organisation for achieving its goal in given period of time. It is adopted for achieving objective
for completion of various projects in relation to fund that must be that is necessary for arranging
the finances of various strategy and tactics that can be assessed by adopting business plan by
company.
Executive summary: Knight and Duke Company focuses on providing variety of
products as well as real estate services to its customers for satisfying them for the business
organisation focuses on expanding the organisation by introducing innovative product and
services and also they make modification or alteration in present or given product line. For
accomplishing the requirement on necessity of customer it is necessary to provide unique
services to its customer. Therefore the company focuses on providing innovative services in
relation to real estate for attracting large number of customer at Marketplace (Anderson, 2017).
Vision & mission: The mission of business organisation is to provide its customer
effective services for satisfying them. The vision of business organisation to is to achieve a
leading position at market place.
Goals: Herein the main objective or goal of Knight and Duke home company is to
generate the Awareness of user by launching innovative product as well services for its customer
it also help in increasing the Goodwill or reputation of the organisation in front of customer at
Marketplace.
Objectives: The main objective of organisation is to boost the sales by 30% by launching
innovative product in upcoming time period. It helps in increasing the current share of market by
10% for promoting the strategy in relation to promotion of business organisation.
Company Summary: Knight and Duke Homes provide renting as well as selling house
services to its customer for satisfying them.
Products: The Company focuses on providing the renting as well as selling house
services to its customers for satisfying them. They also make appropriate research for analysing
the strategy which is made by the competitors and also they focus is on extensive research for

gaining competitive advantage. Therefore they offer renting as well as selling house services for
gaining competitive edge at Marketplace.
Employees: The business organisation focuses on increasing the knowledge of employee
and also grabs the opportunity. They also provide effective training to its staff for increasing the
productivity as well as level of efficiency in given time period (Lee, 2018).
Shareholders: The shareholder is the person who makes investment of large amount of
money within business organisation. For boosting the level of satisfaction they achieve a higher
rate of return.
Customers: Customer plays an important role within business organisation. In context of
Knight and Duke Company they provide a large range of goods as well as services to its
customer in order to gain a competitive edge. It also increases the satisfaction or motivation level
of user in stipulated period of time.
STP analysis: STP analysis is adopted by the marketing manager of Organisation in order to
assess the target market that is generated by organisation. Depend upon this they focus on
positioning their product as well as services in the market. The Knight and Duke Company adopt
the appropriate strategy after assessing the target market.
Segmentation: Here in the overall market is categorised in different segment with same
characteristics. There are various factors that must be determined by Knight and Duke home
company. It involves different behavioural feature as well as demographical elements of market.
There are various age groups of children as well as perception of individual person that must be
considered in this kind of strategy
Targeting: Here in the organisation focuses on targeting its customer for increasing their
sales and boosting the experience level during the particular phase of time period. The main
purpose of business organisation is to target the large number of customer or boosting brand
image or goodwill of the company in front of customer at Marketplace. It also helps in boosting
the profit margin and sales in upcoming period of time.
Positioning: In context of Knight and Duke Company there are efforts or contribution made
by the company for increasing the brand and also attracts the large number of customer at
Marketplace (Brown, 2017).
Option for funding: Bank loan it is considered as the money that is taken by the
organisation from the financial institution as well as bank on given the security. It is a contract

among the organisation as well as Bank in which it is the duty of the organisation to give the
principal amount with interest rate. Therefore the Knight and Dukes Company focuses on taking
loan from Bank in order to increase their profit margin and paid to the bank the principal amount
along with the rate of interest within a specified period of time.
Marketing Mix: Market mix is considered as a tool that is adopted for taking appropriate
decisions in relation to promotion, product, place as well as price. In context of Knight and Duke
home company they offer the innovative product as well as services in connection to real estate
for satisfying the customer Price it is necessary to provide the product which is unique and
provide at the convenient store for increasing the customer. Price they offer the innovative and
unique product in order to gain competitive and at affordable price. Promotional strategy
adopted by Knight and Duke Company is advertisement, sales promotion and many more.
Financial Projection: For every business organisation it is important to determine the
requirement or need of fund for innovative services. It is necessary to make appropriate budget
for need of funding in future period of time it help in implementing the innovative services for its
customer in order to perform the various functions of activities in improved way (Moore, 2018).
The strategy and tactics related to development of products also need the large amount of the
fund by Knight and Duke home company for performing or carry out the functions of activity in
an effective manner. The project cash flow need is given below:

From the basis of above cash flow it has been said that there is a need of 20000 for whole
growth as well as development of product. There is also the need for acquiring the material for
production process it has also been analysis that it is necessary to increase the sales in future
period of time.
Monitoring and controlling: It is important for organisation to make appropriate control
over the activity as well as function of business organisation. It is necessary to track the level of
performance. Monitoring is important for keeping that help in adopting a particular or specific
business plan. In context of Knight and Duke Company they provide the way in which there are
various functions that must be conducted by the organisation. There are various areas like
finance as well as effective utilisation of resources and many more (Moghadam and Bashiri,
2019).

Recommendation
 The company focuses on adopting innovative technology for providing innovative
services to its user in relation to renting as well as selling house services.
 It helps them in save time and efforts which is made by the organisation during the
particular phase of time period.
 It assists in providing High Quality Services to its customer for retaining them for a
longer period of time.
TASK 4
P5 Critical evaluation of exit or succession options for small business and making a decision of
appropriate courses of action
Business need large amount of fund for running their business in an appropriate manner.
Therefore the organisation is not capable to make appropriate arrangement of finance and they
get impacted and suspension of market in which they operate. Therefore there is various strategy
or tactics that is used by Knight and Duke Company are going to be mentioned below:
Merger & Acquisition: This is the strategy or tactics which is adopted by organisation
for buying another organisation. It is considered as an effective situation or condition for both
Organisations in order to conduct their functions in appropriate manner.
Benefits:
There are various benefit or advantage of merger like boosting the current market share
market is also useful in creating a benefit or advantage related to eliminating and reduction in the
cost and give higher return.
Demerits:
In some circumstances it is not possible for two organisations to adjust with one another
and it create a conflict as well as grievances among them. It is very hard for organisation to co-
ordinate with each other that is considered as a main disadvantage for company.
Liquidation: It is considered as a strategy or tactics in which the Assets of the business
are sold and business operation comes to an end. This tactic is appropriate for small organisation

and it is based on individual person. It arises when the organisation realises that there is no
chances of making more profit and it is necessary to wind up the company.
Benefits:
This is strategy as well as tactics is adopted when the products are sold by organisation
and the money can easily be recovered from the market
Demerits:
Knight and Duke Company can deduct the tactics of merger as well as exit option or taking
exiting from the market.
Franchise: It is considered as an authorisation that is given by government if the
company want to exit from the market depending on situation of debt and insolvency. They can
sell their shares to other retailer or branches to run their business on their own ownership.
Therefore, the Knight and duke company focuses on exiting from market as per situations.
Advantages
The Knight and duke company can participate in decision making and other business activities of
firm.
Disadvantages
They want be able to enjoy the freedom of expression because of low intensity of ownership can
be considered as disadvantage for company.
It is considered as a good option for business organisation and it does not imposes adverse
effect on the performance level of the company and it is useful in attracting the large number of
customer by merging it into the another organisation (Chang, 2018).

CONCLUSION
On the basis of the above mentioned about it has been analysed that planning for growth
it is necessary for success of business organisation. It is necessary to detailed assessment of
internal as well as external environment for increasing the profit margin. For detailed assessment
it is necessary for organisation to use Porter generic strategy. The Ansoff matrix is also adopted
for future growth and development of organisation. It has also been analysed that it is necessary
to adopt appropriate to suitable business plan for increasing or achieving the objective for goal of
Organisation in a stipulated period of time. In the assignment they also make discussion
regarding the opportunity for growth as well as source of finance. In addition to this the planning
for business is prepared in order to improve the growth of success of business organisation and
lastly they give discussion regarding the exit options in regards to small organisation.

REFERNCE
Books & Journal
Kleeberg, A., Neyen, M. and Kalettka, T., 2016. Element-specific downward fluxes impact the
metabolism and vegetation of kettle holes. Hydrobiologia, 766(1), pp.261-274.
Holl, A. and Rama, R., 2019. Local cooperation for innovation in ICT—Domestic groups with
collaborations for innovation abroad and foreign subsidiaries. Science and Public Policy, 46(4),
pp.599-610.
Ramondetti, L., 2018. Zhengzhou. Il potenziamento della metropoli interna. TERRITORIO.
Ennis, F. ed., 2017. Infrastructure provision and the negotiating process. Routledge.
Köseoğlu, S.D. and Almeany, S.S.A., 2020. Introduction to Business Valuation. In Valuation
Challenges and Solutions in Contemporary Businesses (pp. 1-23). IGI Global.
Shin, K.J., Kim, T.W. and Lee, S.J., 2019. Changes of Volatile Compositions in Soju Wash from
Fermentation to Distillation Using Different Kinds of Fermentation Starters. In Chemistry of
Korean Foods and Beverages (pp. 57-76). American Chemical Society.
Anderson, Z., 2017. Solving America's Long-Term Care Financing Crisis: Financing Universal
Long-Term Care Insurance with a Mandatory Federal Income Tax Surcharge That Increases with
Age. Elder LJ, 25, p.473.
Lee, J.Y., 2018. Accompagnement des PME par les grandes entreprises pour intégrer la RSE: le
cas des PME coréennes. Question (s) de management, (1), pp.33-44.
Brown, J.H.U., 2017. Management In Health Care Systems (1984). CRC Press.
Moore, P.E., 2018. Give Your Heart to Jesus & Seek the Face of God. WestBow Press.
Chang, C.Y., 2018, November. Incentivizing Collaborative BIM-enabled Projects: A Synthesis
of Agency and Behavioral Approaches. Project Management Institute.
Moghadam, M.H. and Bashiri, H., 2019. Causal layered analysis of high-skilled diaspora: Case
study of Iran. Majallah-i Amuzih-i Muhandisi-i Iran, 21(82), pp.111-7.
ONLINE
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A;_ylu=X3oDMTE0OHZ2Yzk0BGNvbG8DZ3ExBHBvcwMxBHZ0aWQDQzAxNTZfMQRzZ
WMDcGl2cw--?p=PORTER+GENERIC+STRATEGY&fr2=piv-web&fr=mcafee>
Ansoff Matrrix.2018.[ Online].Available. Through
<https://search.yahoo.com/search?fr=mcafee&type=E210US0G0&p=ansoff+matrix+strategy>