Planning for Growth: Strategies for Success

This report explores the importance of growth planning for small businesses and provides strategies for success. It includes market evaluation, business plan development, and succession planning for Fontain Motors, an automobile dealer in the UK. Discover how the company can expand its operations and increase its revenue and profit.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1& TASK2............................................................................................................................4
TASK 3............................................................................................................................................6
P4 Developing a business plan including financial information and strategies objectives....6
TASK 4............................................................................................................................................9
P5 Assessing exit or succession for small business along with explaining its benefits and
drawbacks...............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Growth planning is a strategic activity and action that enables organisation and owners to
develop possible future plans for growth in order to seek improvement and enhancement in their
revenue and profit units. Planning is a fundamental activity which is undertaken by all different
types of organisations either small or big, as it allows the entity to allocate their limited resources
towards a centred effort to adapt according to the changes taking place in the business
environment and the industry. For this report a small business organisation is chosen name the
and known as Fontain motors. It is an automobile dealer and its line of business includes retail
sale of new and used automobiles as well as repair and maintenance services. The Fontain
Motors limited was founded in 1991 and operates in the UK. Main industry of the company is
retail industry and some industry is automobile. It occurs specialist fault finding and diagnostic
services the vehicles of top brands such as Audi, Skoda and Volkswagen. In this report, market
evaluation is conducted for identifying growth opportunities in context with the company by
using Porter’s Generic model and PESTLE analysis. Moving further in order to gain and adopt a
particular strategy which helps the organisation to attain competitive advantage ansoff matrix is
evaluated. Moreover, a thorough business plan is developed suggesting a growth opportunity for
the business and at the end succession planning processes are also suggested.

TASK 1& TASK2

TASK 3
P4 Developing a business plan including financial information and strategies objectives
Overview of the company
Fontain Motors limited was founded in 1991 which is headquartered in Buckinghamshire,
UK. The organisation deals in automobile and retail sector there II sales in new and used
automobiles two different customers as well as look over repair and maintenance of different
superior branded vehicles such as Audi and Volkswagen. Fontain Motors limited operates in in
all over UK but do not have any operations in international markets. This business plan is
developed by looking at the growth opportunity in International marketplaces their company can
move their operations in order to increase its presence in the market of automobile sector add to
improve it growth and profits (Krueckeberg, ed., 2018).
Vision
The vision statement of the company is very clear and simple stating and highlighting its
aim of moving and growing in the market. The long term objective of the entity is to become the

best quality repair and maintenance service provider along with the best retailer of new and used
cars in the UK and in international borders.
Mission
The mission statement of Fontain Motors limited highlights that the entity wishes to
become one of the biggest seller and reseller of cars and other vehicles by increasing its presence
in domestic and international borders.
Objective
 To enhance their International presence in next 6 to 8 months.
 To improve the percentage of market share by 5% in next one year.
 To enhance sales and revenue units by 8% in next 6 months.
 To increase net profit ratio by 4% in next 6 to 8 months.
Situational market analysis
SWOT Analysis
The tool of SWOT analysis is an very beneficial and potential technique which enables
The entity to understand and determine its internal strengths and weaknesses and accordingly
seek appropriate opportunities and related threats. The SWOT analysis will enable the entity to
move ahead for attaining their objectives by exploring the most appropriate opportunity
according to their internal strengths and by taking efficient measures to mitigate threats.
Strengths Weaknesses
The strength of Fontain Motors limited is its
brand image and the associated high brands
like Audi and Volkswagen. The company
provides repair and maintenance services for
the vehicles of brands like Audi, Skoda and
Volkswagen (Liang and et. al., 2018). This is
its biggest strengths as it is associated with
such hi class vehicle manufacturers who have a
very large and potential Goodwill in the
marketplace specifically in automobile sector.
The weakness of company is it's very low
presence in the domestic market and no
presence in international market. The brand
image and Goodwill of the entity hinders by
the fact that the entity is not very much
accessible buy customers in different locations.
Along with the employee ways or the number
of employees associated with the entity are
very low which also affects the business as it
stops the company to take as much potential
orders according to it demand.

Opportunities Threats
With rapidly increasing globalisation and
competitive market place the biggest
opportunity which is present in front of the
Fontain Motors limited currently is expansion
for growth in international markets and
increasing its presence in the UK and in in
other potential global markets where the
automobile sector is very strong and improving
regularly.
The current thread which is very influential for
the business is the outbreak of covid-19 and
recent implications of BREXIT. The economy
of UK is affected with both of these factors and
it is the biggest threat for all different
industries running in the economic along with
the automobile sector. Due to covid-19
globalisation is affected people are scared and
do not trust any international business for
providers therefore it is going to be very
difficult for the phone 10 Motors limited to put
the steps in the international waters firmly.
STP Model
 Segmentation- The process of segmentation device the market and the customers into
smaller groups according to their features and similarities. The segmentation process has
four types demographic, geographic, psychological and behavioural. The Fontain Motors
limited invented the market into geographic segmentation (Pan and et. al., 2019).
 Targeting- The targeting process is the next stage of the model in which the segmented
groups of customers are then targeted. that means the entity will set the targeted audience
according to the segmented groups in which they seek similarity with their offerings and
the needs of the people. The targeted audience of Fontain Motors limited high class
people of the society maintains and attracted towards luxury cars and vehicles.
 Positioning- The positioning stage refers to the method used by entity for presenting
itself in the new market. The positioning techniques which are used and beneficial for the
entity is social media where they will be using the brand image of their partner
organisations such as Volkswagen and Skoda (Thornley, 2018).
Formulation of budget
 Budget-

Particular 31/12/19 31/12/20 31/12/21
Implementing technology
cost
15000 - 3000
Promotional expense 11000 10500 7500
Advertisement expense 8000 7500 6000
Catalogues 1500 2500 3500
Training charges 9000 7000 6500
Total Cost 46500 27500 26500
 Cashflow Statement-
Particulars 1st year 2nd year 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
TASK 4
P5 Assessing exit or succession for small business along with explaining its benefits and
drawbacks
The entity Fontain Motors limited is it planning for growth and success by making its
presence in international market there the entity can enhance its accessibility and goodwill by

making its presence in international customers (Holz-Rau and Scheiner, 2019). Therefore few
succession options are suggested which can be utilised by entity to successfully implement their
plans of growth and success.
 Mergers and Acquisition is a strategy where the entity will be merging or acquiring an
existing business in the international market who holds the similar objective as of Fontain
Motors limited. The merger and acquisition option will allow the entity to plan operations
and strategy in better manners as we can make use of advantages and resources such as
market knowledge of the existing company which will help it to develop effective plans
and strategies of operating and becoming a successful automobile retailer and maintainer.
Benefit:
The benefit of merger and acquisition is very potential and favourable for the Fontain
Motors limited because first it will help the entity to gain appropriate knowledge of the
market the preferences and desires of potential customers and targeted audience. Another
advantage of merger and acquisition which will be beneficial for the company is it allow to
have a competitive edge from other existing business in the international market.
Drawback:
The main drawback and negative factor of acquisition and mergers is the form faces a lot
of difficulties for creating collaboration and coordination between employees of different
regions and with different mentalities. As the firms are belonging to different geographical
location that means the culture and values of all the individuals are different along with their
background and experiences (Park and LaFrombois, 2019). Is a drawback because it will
create many difficulties in front of owners to develop understanding between different
employees and make them work in a team for attaining their common objectives and goals.
CONCLUSION
The above report concludes that planning is a fundamental action which is undertaken by all
different organisations in various situations for making its business potential and successful.
Planning for growth and success is also then bye the businesses where the first analyse the
market situations and macro environmental factors for seeking knowledge about the favourable
opportunities. Video over the entity always looks for different funding options which are
beneficial for them and easily provide them funds for implementation and execution of of growth
plans and strategies.

REFERENCES
Books and Journals
Holz-Rau, C. and Scheiner, J., 2019. Land-use and transport planning–A field of complex cause-
impact relationships. Thoughts on transport growth, greenhouse gas emissions and the
built environment. Transport Policy. 74. pp.127-137.
Kallis, G., 2019. Socialism without growth. Capitalism Nature Socialism. 30(2). pp.189-206.
Konvitz, J.W., 2020. Cities & the sea: port city planning in early modern Europe. JHU Press.
Krueckeberg, D.A. ed., 2018. Introduction to planning history in the United States. Routledge.
Liang, X., and et. al., 2018. Delineating multi-scenario urban growth boundaries with a CA-
based FLUS model and morphological method. Landscape and urban planning. 177.
pp.47-63.
Pan, H., and et. al., 2019. Using comparative socio-ecological modeling to support Climate
Action Planning (CAP). Journal of Cleaner Production. 232. pp.30-42.
Park, Y. and LaFrombois, M.E.H., 2019. Planning for growth in depopulating cities: An analysis
of population projections and population change in depopulating and populating US
cities. Cities. 90. pp.237-248.
Rogerson, C. M., 2018. From spatial development initiative to Blue IQ: Sub-national economic
planning in Gauteng. Local Economic Development In The Developing World: The
Experience Of Southern Africa, p.183.
Thornley, A., 2018. Urban planning under Thatcherism: the challenge of the market (Vol. 21).
Routledge.
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