Planning for Growth: Analyzing Considerations and Strategies for Business Expansion

This report discusses the key considerations and strategies for evaluating growth opportunities in an organization, using frameworks like McKinsey's matrix and BCG matrix. It also explores Ansoff's matrix and potential sources of funding for business growth. The case study focuses on Knight and Dukes Homes, a real estate agency in London, UK.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyzing key consideration for evaluating growth opportunities along with
justification of this consideration within organization......................................................3
P2 Ansoff’s matrix.............................................................................................................6
M1 Discuss the options for growth using analytical framework to understand the
competitive advantage with an organization.....................................................................7
D1 Evaluate a specific options and pathway for growth along with taking into account the
risk of each option and how they can be mitigated...........................................................7
P3 Potential source of funding available for business along with benefits and drawbacks7
TASK 2............................................................................................................................................9
P4 Business plan for growth which include financial information and strategic objective for
business..............................................................................................................................9
P5 Success exit for succession option for a small business along with explaining benefit
and drawback of each option...........................................................................................10
M4 Evaluate exit or succession option for a small business is comparing and contrasting
the options and making valid recommendation...............................................................12
D4 Critical evaluation of succession or exit options for company along with justified
recommendation for their implementation......................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth refers to strategy activity which is generated by the management of
an organization in relation to ensure about that organization. This should achieve the sustainable
growth in future with the help of using different techniques and methods. In relation to this, there
are many short term and long term plans which are developed by the manager. In context to this,
it need to be ensure that, they should implement the strategy in effective manner that can help to
achieve high level of growth in future. In this report, Knight and Dukes Homes has chosen as a
small medium Enterprise company. This is a real estate agency which is there in London, UK. In
this report, there are different techniques which are achieved for the growth. In relation to this,
there is a discussion about the key consideration that are evaluating growth opportunity along
with justification about consideration for the organizational contact. There is also evaluation for
the opportunity of growth by applying Ansoff’s growth vector matrix. There is also discussion
about the potential source of funding which are available for the small businesses along with
their benefits and drawbacks for each and every sources. There is also discussion about the
business plan for the growth which are able to include financial information along with strategic
objective for scaling up business. In this report, there is some information about the assess exit or
succession options for the small business for explaining the drawbacks and benefit of each and
every options (Abdallah, 2017).
TASK 1
P1 Analyzing key consideration for evaluating growth opportunities along with justification of
this consideration within organization
Key consideration for growth
There are many types of consideration that are required to be included by the
organization in order to high level of growth which can be achieved in the future. In relation to
identify search key consideration of growth there are some of the framework which should be
able to help in to find that some of these framework are McKinsey’s matrix and BCG matrix.
History of BCG matrix
BCG matrix also known as Boston consultancy group matrix that was created in 1960
and have the founder name is Bruce Anderson. This is the tool which is able to help the client for
efficient allocation of resources which are there among different business unit. This can help to

use as a Portfolio planning and able to analyse tool for marketing strategy development and
brand management (Henttonen, 2017).
History of McKinsey’s matrix
The McKinsey’s matrix which was developed jointly by General Electric and distances in
early 1970 which is as a derivation of the BCG matrix on that time. This has a proximate 150
different business unit which was appointed with the firm investment. In this, there was reason
the internal concern that is about the approach by the organization for investment decision
making. McKinsey’s matrix are able to solve many issues of the decision model and where are
able to propose a sophisticated and comprehensive approach in relation to investment decision
making.
BCG matrix
In this, there are two type of factor which are related with market share and market
growth rate. This both are able to affect the business segment there are going to be discussed
further (Turyakira, 2018).
Star- This one is represented as the high relative market share along with my market
growth rate. This one is able to represent that product are growing as the faster rate in relation to
this, they require huge investment to maintain their position in the market.
Cash cow- This one shows that, there is high relative market share and need for low
market growth rate. This is the one in which there is need to product who have low speed of
growth rate but is able to hold the high market share. This one is able to repay lot of shares for a
company and does not require high level of finance for their extension.
Question mark- This is the one which have the low market share but have high market
growth rate. In this, it indicates that the company which have their product having low market
share. In high growth, market are needed high investment to hold their share but they are not able
to generate same level of cash in comparison to investment (Liu and Yan, 2019).
Dogs- This represent low market share and low growth rate. In this, there is neither high
growth rate nor market share. These are the product which are able to generate enough cash that
can they maintain them self but are not able to survive in long term.
GE/Mckinsey matrix

This is the framework which is used by an organization in relation to determine the
different factors within their that can influence the growth in future. Some of the factors are
discussed further.
Strategy- This is one of the most important requirement for an organization which is able
to use the correct strategy for growth of the business. They need to look forward to their
competitors and make one of the best strategy that can help to grow their business in future. In
context to Knight and Dukes Homes, there is necessary to use one of the right strategy that can
help the company to achieve the growth (Chang, 2018).
Structure- There is need to have one of the right structure that can help the organization
to perform each and every operation in proper manner with effective result. In context to Knight
and Dukes Homes, there should need to select best structure for their business to achieve high
profit and effective market for their business.
System- To increase the level of efficiency and effectiveness company should need to
make sure about the correct system that can help to maintain easy without getting any issues or
any type of problem. In context to Knight and Dukes Homes, they should need to ensure about
the correct system that can provide correct hue to achieve growth for their business.
Shared value- In small company, there are different shared value which are form part of
their processes. In relation to Knight and Dukes Homes, it is important to get ensure that these
value should we consider in correct manner by an organization in order to achieve growth.
Skills- To achieve the growth, there is a requirement for skilled person in the
organization either work for the management. In relation to this, Knight and Dukes Homes,
should need to appoint some skills that could have to company to achieve high growth (Panda,
2017).
Style- This refers to the method of operation which is used by organization. In relation to
the Knight and Dukes Homes, there is a need to adopt a particular style that can help to framing
the growth plan.
Staff- This is the one which refers to the employee of the organization and in context to
Knight and Dukes Homes, they should lead to a point which can perform in effective and
efficient manner. This can help the company to achieve high growth in future.
Differences between BCG and GE/Mckinsey matrix

There are some of the differences between both of the matrix are going to be discussed
further.
 BCG Matrix in the one which can be understood as the group share model that is able to
reflect growth of business along with market share possessed by the organization. Whereas,
Mckinsey matrix is portfolio matrix which is used by the business. In relation to make a
strategic choice for their product line which is based on the position of grid.
 BCG matrix refers to similar in comparison to Mckinsey matrix, it is easy to draw only for
sales while the matrix consists of nine cells (Blake, 2020).
 BCG matrix of two dimension that is market growth and market share whereas Mckinsey
Matrix have the industry attractiveness along with business strength factors.
 BCG matrix generally used by the organization in relation to deploy their resources among
different business unit. Whereas Mckinsey matrix is used by the firm to prioritize investment
among different business units.
Justification
Knight and Dukes Homes need to focus on their company that can provide different
opportunity for the business for providing product and their services. This is able to differentiate
between the company and their competitor. By using such Matrix level to make some better
strategy that can help to defeat the competitor and should get high growth in future. They are
also able to attract new and old customer by using better strategy and provide advantage over the
rivals.
P2 Ansoff’s matrix
Ansoff’s matrix is a tool which is generally used by the management. In relation to
identify the different type of growth strategy which can be used in the company to achieve high
level of growth. Different strategy which are there in the Ansoff’s matrix are discussed further.
Market development- This is one of the strategy in which there is totally focus on
entering a new market by existing product. In context to this, this strategy can provide better
opportunity for growth because in real estate industry. There is always a existing product and
market should be either new or old (Sischer, 2017).
Product development- This is the strategy in which there is introduction of new product
in the existing market. In context to Knight and Dukes Homes, this strategic can't be used
because there is no any new product in the real estate and existing market is always there. So, in

relation to this, this study cannot be useful for growth of the business of Knight and Dukes
Homes.
Market penetration- This is the best strategy in which there is for increasing the sales of
existing product in the existing market. In context to Knight and Dukes Homes, this is hard to
make benefit and for growth to penetrate in market for better growth of the company.
Diversification- This is the strategy in which there is entering of new market with new
product cannot be followed by the Knight and Dukes Homes because there is no new product in
market (Sohrabi, 2020).
M1 Discuss the options for growth using analytical framework to understand the competitive
advantage with an organization
Knight and Dukes Homes have different option for their growth. In relation to this, they
should need to make a some better a strategy that can help them to achieve different opportunity.
In this, there is need to make one of the best strategy that can help and provide better opportunity
for tracking different customers and to defeat and keep away rivals. In relation to create more
business and for future growth, there are many of the company who are not able to make high
profit and use this. There is need to make better option all the strategy to attract more customers
for more business they are having the competitive advantage that they are good in choosing the
property and able to attract potential customer that can help to increase their business in present
and future both.
D1 Evaluate a specific options and pathway for growth along with taking into account the risk of
each option and how they can be mitigated
In this, organization is able to create more business by using the BCG Matrix in which category
of dog and they need to lead and create the potential to reach the star. This is the one in which
there should market share high (Brown, 2019).
P3 Potential source of funding available for business along with benefits and drawbacks
On capital or savings- This is the one which is able to announce the small business by
themselves is includes their own saving or capital. This is the one in which company is able to
invest on then self from the profit of their company for capital because all the profit are of the
owner of the company in the small business.

Benefit- There is no need to ask to anyone to invest for the business growth from business
savings for company capital. So, this can provide easy method to invest.
Drawback- There should be less chance to have high profit or savings to invest in the
company to make the company better for growth. In relation to this, there is very less chance to
use this method as a source of finance.
Family and friends- This can be one of the best option for the collection of fund for the
business in which due to having own company, owner is able to make some fund collection by
asking their family and friends. This can help and contribute some money that can help the
business organization to invest and help to provide better growth to the company (Edinger-
Schons, 2019).
Benefit- There is no tax or very less interest need to paid to their family or friends. There
is high chance of full support and easy process to get the money. This can provide long-term
time and sometimes there is no need to return the money to family member.
Drawback- This can create conflict in family member due to financial problem. This is
able to make distance from the family member who don't like to help for share some Finance to
the owner of the small company. This can also create some dispute in the family members or
with friends.
Bank loan- This one is the one of the best option for the small company to get fund and
this, there are different schemes which are available and help the small business owner to make
their own business for better growth by financing to the small company.
Benefit- Company can use different schemes which are there from government to an
entrepreneur or small business group for better growth or development of the company. This one
is easiest way to get the funds for the company (Helal, 2018).
Drawback- This is the one which enables to pay high interest rate on the amount. There is
also some limitation of time in which company need to return back the money to the bank. There
is also need to provide some paperwork we should provide insurance for return of money from
the company.
Justification
Bank loan is one of the best source for funding because this is the one which is able to
provide the loan as per the need. Due to this, there is some time limit and due to having

government is scheme that can also help the small business entrepreneur to get easy and large
amount for their business growth.
TASK 2
P4 Business plan for growth which include financial information and strategic objective for
business
Company overview- Night and Dukes home is a business in London which deals with
estate agency. Company manager want to expand the business to opening three more officers in
London. So, in relation to this, they can attract the large base for customers and can earn high
profit (Dolan, 2017).
Vision- Their vision is to earn more profit by large base of customers in relation to
provide better class of service.
Mission- Mission of the company is to build or form usage refers to client focused and
provide best advisory services which can able to fulfill the financial and learning value.
Objective- Main objective ofNight and Dukes homes is to create a smarter market which
is by investing more with social responsibility that can result and better quality to the firm.
Financial information
After analyzing vision, mission and objective of aNight and Dukes homes, there is need
to set budget in relation to help in operating new three branches in London. This can help to
large growth by attaining competitive advantage and to earn more profit. In relation to this, cash
flow statement and financial budget can be made which is shown further.
Budget
Cash flow statement
Budget
Particular 31/12/19 31/12/20 31/12/21
Production cost 4000 - -
Promotion cost 2000 1200 800
Advertisement cost 1000 800 1000
Technology cost 1100 1000 1600
Total Cost 8100 3000 3200

Recommendation
After analyzing the above business, it is recommended to Night and Dukes homes that
they should hire some experienced person who is able to research the market properly for better
growth of the company. In relation to this, there is need to study the test of customers along with
their difference is that can provide accurate and delivering the service with effective manner (Du
and Ouyang, 2018).
P5 Success exit for succession option for a small business along with explaining benefit and
drawback of each option
Small business which have different option of either exit or run out succession in relation
to their level to make profit and perform better in the competition. In context to Night and Dukes
home, real estate agency which is having the huge complication. In relation to manage business
for their establishment. In relation to this, manager should have to decide in relation to this
manager should have to decide to exit from the industry. Due to having the small business they
should have the higher chance to get it easily as it from the industry. Exit options are the things
which are look by each and every small business organization. There are some of the following
exit option along with their benefit and drawbacks.
Management buyout- This is the one which is complex and difficult to plan for diverse
to the method. However, it can be possible when so that make their mind to exit their business.
In relation to this, people of the stakeholders who are having the information about the
organizational situation are ready to buy the entity from the entrepreneur and contact to night and
uniforms manager are having the familiar with real estate. Agencies are able to know the
Cash Flow Statement
Particulars 3re year
Initial investments 9800 12560 18000
Borrowings 10500 6200 9500
Retained earnings 5500 8500 10000
TOTAL 25800 27260 37500
MARKET OUTLAY
Promotional expense 8800 8000 13500
Distribution expense 4000 7400 9500
Publicity 5500 12500 8500
TOTAL 18300 27900 31500
1st year 2nd year

information about the ways to manage it. The exit option can provide smooth transition that can
enhance quality to agency (Ionescu, 2021).
Benefits- Business should be handed off to the person who are having high level of
experience in the company. By using this option, Night and Dukes homes is able to make some
money after completion of deal. This is simple and easy to make it happen and can also maintain
the confidentiality. It is also having high success chances then other exit plan.
Drawback- There is some of the limitation of this management which is for the Night and
Dukes homes. In this, there is such option which is created difficulties in raising the finance
along with monetary resources. It is able to involve the reading risk that is able to reduce the
purchasing price of industry shares. In relation to this, it can be critical for a small business to
find the people or employee who are like to prefer to buy this entity.
Challenge to investors of partners- By selling the business to partner for investor, this
can be a better plan to exit from the business to entrepreneur. It is possible for small businesses
that is to sell their company to their partner for investors. In relation to Night and Dukes homes,
this option can help the business has normal strategy that can be as per dependence of issues
(Arcand, 2017).
Benefit- This option is able to provide the Legacy remaining and can continue have the
the brand value to the business and provide better functional as usual. By using this option,Night
and Dukes homes are able to exit the business and able to earn huge profit on selling their shares
when this deal is done. This can able to provide better and easier process for exit.
Drawback- For Night and Dukes homes, it can be difficult to search suitable buyers that
are having the potential to purchase their business shares. Moreover, it seems to be impossible to
get engaged in entity or any type of capacity. This process is able to create high level of problem
between both the parties.
Liquidation- This is one of the best option which is involved to sell all the Asset as well
as closing the business from the market. Liquidation refers to selling all the entity and shares of
the market that can able to provide use profit for money for any small business like Night and
Dukes homes for any other small businesses which are dependent on the practice on performance
of single person. Liquidation can be the best exit option which can be able to sell and get some
profit (Van Laer, 2019).

Benefit- This is one of the simplest and quickest method is liquidation for Night and
Dukes homes. There should not need to worry about the company again. There is no need to
preserve the company legacy.
Drawback- This is one of the option which is not able to provide high investment return
there any chance of file only recovering the revenue from the liquidation sale like inventory,
equipment and lands. This is not able to provide another chance to company in relation to trade
again. This one is also able to restrict the achieving the left payment which was there needed to
be collected by different people (Corner, 2017).
Recommendation
Exit option liquidation is one of the best option for Night and Dukes homes that can
involve easy procedure to finish the company and that can able to preserve the Legacy. This
option is able to sell all the entity that can provide some profit or earn money that can be in better
practice with easy manner.
M4 Evaluate exit or succession option for a small business is comparing and contrasting the
options and making valid recommendation
It is evaluated that, there are different exit option for the small businesses in which Night
and Dukes homes should need to adopt liquidation option. In relation to this, they are able to get
in benefit of easy processor binding their business quickly along with preserving their legacy
during the small business goes with exit option. There are some process which are selling of
investor or partner that can be benefit in relation to earning more revenue on sale of shares. This
can provide an option to sell their company to known person who have potential to manage the
business and for better growth in future. In compared to management buyout, there is chance of
creating difficulty for complexity for raising funds along with exiting from market. So, it is
recommended that Night and Dukes homes should use the the liquidation process which can be
easy and less process to complete entire transaction (Tajvidi, 2018).
D4 Critical evaluation of succession or exit options for company along with justified
recommendation for their implementation
It is critically evaluated at the strategy that is exit option which can be adopted by an
entrepreneur or businessman for exit from their company. The best option is the liquidation
option is able to provide different benefit like easy process and quick binding up ever driver of
liquidation of some is there less return and loss of claim refund from sold assets. In relation to

this Night and Dukes homes, it is recommended to use the exit option that is liquidation in
relation to simple and transaction and company. Entrepreneur should not be worry about the
company again and this make them free from reserving legacy (Drury-Grogan, 2017).
CONCLUSION
From above report it can be concluded that planning for growth refers to a strategic
activity which should be taken by the manager each and every company is required for the other
company future. In relation to their growth, this plans would make for some specific time period
by manager which is included the short term, medium term and long term goal. In relation to
this, the manager of the organization should able to create the right a strategy for the growth can
help them to reach the peak in less time. There is also discussion about the evaluating of different
opportunity of growth by applying Ansoff growth vector matrix. There is also discussion about
the potential source of funding which is available for the business along with their benefit and
drawback. In this report, there is some of the discussion about the design of business plan for
growth which is able to include the financial information along with a strategic objective.

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