Planning for growth
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Planning for Growth
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Table of Contents
INTRODUCTION...........................................................................................................................1
Section A..........................................................................................................................................1
TASK 1............................................................................................................................................1
Key considerations for growth.....................................................................................................1
Identification of opportunities for growth....................................................................................3
Options for growth.......................................................................................................................5
Options and pathways for growth................................................................................................5
TASK 2............................................................................................................................................1
Develop coherent and in-depth business plan that helps in demonstration knowledge and
understanding how to formulate for achieving business objectives ..........................................1
TASK 3............................................................................................................................................4
Assessing various exit or succession options for small business along with benefits and
drawbacks of each option.............................................................................................................4
Evaluation of exit or succession options addition to making valid recommendations................6
Critical evaluation of succession or exit options for the company and justified
recommendations for supporting implementation.......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION...........................................................................................................................1
Section A..........................................................................................................................................1
TASK 1............................................................................................................................................1
Key considerations for growth.....................................................................................................1
Identification of opportunities for growth....................................................................................3
Options for growth.......................................................................................................................5
Options and pathways for growth................................................................................................5
TASK 2............................................................................................................................................1
Develop coherent and in-depth business plan that helps in demonstration knowledge and
understanding how to formulate for achieving business objectives ..........................................1
TASK 3............................................................................................................................................4
Assessing various exit or succession options for small business along with benefits and
drawbacks of each option.............................................................................................................4
Evaluation of exit or succession options addition to making valid recommendations................6
Critical evaluation of succession or exit options for the company and justified
recommendations for supporting implementation.......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION
Planning for growth refers to a strategic activity which is done by the management of the
organizations in order to ensure that the firm is able to achieve sustainable growth in the future
time period with the use of correct techniques and methods (Abolhasani and et.al., 2016). Thus
there should be right short-term and long-term plans developed by the management so that they
can ensure and plan for growth. There is a requirement for the organizations to make sure that
they are able to apply them accurately for achieving higher-level of growth in the future time
period. For this report, Knights and Dukes Homes has been considered. It is a real-estate agency
operating in London, United Kingdom. In this report the different techniques for the achievement
of growth will be discussed. It will cover analysis of the considerations which the SMEs are
required to consider for the evaluation of growth opportunities, development of business plan .
Also, the exit or succession options which are available for a particular business will be
discussed as a part of this assignment.
Section A
TASK 1
Key considerations for growth
There are different types of considerations which are required to be considered by the
organization so that higher-level of growth can be achieved in the future time period. For
identifying them McKinsey's 7s framework can be used. The analysis of this framework is as
follows-
McKinsey's 7s framework-
This framework can be used by the organizations so that they are able to determine the
various factors within their processes which put an influence on its growth in the future
(Colantoni and et.al., 2016). These factors are discussed as follows-
Strategy- There is a requirement for the organizations to make sure that they are able to
use the correct strategies for the future. They must look forward to their competitors and
make sure that they make use of the right strategy. In the context of Knights and Dukes
Homes it is crucial to frame a right strategy for achieving growth. In this way it can be
ensured that the correct approach will be used.
1
Planning for growth refers to a strategic activity which is done by the management of the
organizations in order to ensure that the firm is able to achieve sustainable growth in the future
time period with the use of correct techniques and methods (Abolhasani and et.al., 2016). Thus
there should be right short-term and long-term plans developed by the management so that they
can ensure and plan for growth. There is a requirement for the organizations to make sure that
they are able to apply them accurately for achieving higher-level of growth in the future time
period. For this report, Knights and Dukes Homes has been considered. It is a real-estate agency
operating in London, United Kingdom. In this report the different techniques for the achievement
of growth will be discussed. It will cover analysis of the considerations which the SMEs are
required to consider for the evaluation of growth opportunities, development of business plan .
Also, the exit or succession options which are available for a particular business will be
discussed as a part of this assignment.
Section A
TASK 1
Key considerations for growth
There are different types of considerations which are required to be considered by the
organization so that higher-level of growth can be achieved in the future time period. For
identifying them McKinsey's 7s framework can be used. The analysis of this framework is as
follows-
McKinsey's 7s framework-
This framework can be used by the organizations so that they are able to determine the
various factors within their processes which put an influence on its growth in the future
(Colantoni and et.al., 2016). These factors are discussed as follows-
Strategy- There is a requirement for the organizations to make sure that they are able to
use the correct strategies for the future. They must look forward to their competitors and
make sure that they make use of the right strategy. In the context of Knights and Dukes
Homes it is crucial to frame a right strategy for achieving growth. In this way it can be
ensured that the correct approach will be used.
1
Structure- An organization is required to make sure that it selects the right structure. In
the context of Knights and Dukes Homes there is a requirement to select the correct
structure so that the right level of efficiency and effectiveness can be maintained.
Systems- A company should make sure that correct systems must be used so that the
level of efficiency and effectiveness can be maintained easily without issues and
problems. For Knights and Dukes Homes, it is essential that the correct systems can be
used by it so that it can consider the right path for achieving growth.
Shared values- In a firm there are different types of shared values which form a part of
its processes. In the context of Knights and Dukes Homes, it is crucial to ensure that these
values are considered in the right manner by the organization. This is so because by using
them it will be able to achieve growth.
Skills- It means the types of competencies which are displayed by the companies so that
they are able to achieve the desired level of growth (DODDS, DIMANCHE and
SADOWSKI, 2018). In Knights and Dukes Homes it is required that these skills should
be considered so that growth plans can be made.
Style- It means the method of operation which is used by the companies. In the context of
Knights and Dukes Homes it is required that they adopt a particular style which can help
them a lot for the framing of growth plans.
Staff- It refers to the employees of the organization. For Knights and Dukes Homes it is
essential that the workers display their effective and efficient qualities which will
certainly help the company so that it can achieve higher growth in the future time period.
Bowman's strategic clock-
Bowman's strategic clock identifies the different types of strategic positions which a
company can undertake so that it is able to use the best option for the purpose of achievement of
higher growth in the future time period (Grooms and Frimpong Boamah, 2018). The various
positions which are available under it are as follows-
Low Price and Low Value Added ( Position 1 )- In this position, the company
introduces those products which are priced at a lower price and create a low value for it. This
position is not suitable for a company like Knights and Dukes Homes as it can lead towards loss
of market share for it.
2
the context of Knights and Dukes Homes there is a requirement to select the correct
structure so that the right level of efficiency and effectiveness can be maintained.
Systems- A company should make sure that correct systems must be used so that the
level of efficiency and effectiveness can be maintained easily without issues and
problems. For Knights and Dukes Homes, it is essential that the correct systems can be
used by it so that it can consider the right path for achieving growth.
Shared values- In a firm there are different types of shared values which form a part of
its processes. In the context of Knights and Dukes Homes, it is crucial to ensure that these
values are considered in the right manner by the organization. This is so because by using
them it will be able to achieve growth.
Skills- It means the types of competencies which are displayed by the companies so that
they are able to achieve the desired level of growth (DODDS, DIMANCHE and
SADOWSKI, 2018). In Knights and Dukes Homes it is required that these skills should
be considered so that growth plans can be made.
Style- It means the method of operation which is used by the companies. In the context of
Knights and Dukes Homes it is required that they adopt a particular style which can help
them a lot for the framing of growth plans.
Staff- It refers to the employees of the organization. For Knights and Dukes Homes it is
essential that the workers display their effective and efficient qualities which will
certainly help the company so that it can achieve higher growth in the future time period.
Bowman's strategic clock-
Bowman's strategic clock identifies the different types of strategic positions which a
company can undertake so that it is able to use the best option for the purpose of achievement of
higher growth in the future time period (Grooms and Frimpong Boamah, 2018). The various
positions which are available under it are as follows-
Low Price and Low Value Added ( Position 1 )- In this position, the company
introduces those products which are priced at a lower price and create a low value for it. This
position is not suitable for a company like Knights and Dukes Homes as it can lead towards loss
of market share for it.
2
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Low Price ( Position 2 )- In this position, the companies target the customers by keeping
a low price for their products (Hu, 2016). In the context of Knights and Dukes Homes it is quite
necessary that it is able to use this position for targeting new customers. Thus this can make the
company achieve higher level of growth.
Hybrid ( Position 3 )- In this position a mix of low price as well as product
differentiation will be considered. Thus in the context of Knights and Dukes Homes this position
is quite good so that it can achieve growth.
Differentiation ( Position 4 )- This position enables the companies to make sure that the
y are able to differentiate their products. In the context of Knights and Dukes Homes this
position can be adopted.
Focused Differentiation ( Position 5 )- In this position, there is a specific focus which is
made by the companies on certain segments of the market where they can differentiate their
products. This position is good for Knights and Dukes Homes.
Risky High Margins ( Position 6 )- In this position, high prices are set by the businesses
for their products and services without offering something substantial. In the context of Knights
and Dukes Homes this position is not good as it will lead to losses for it.
Monopoly Pricing ( Position 7 )- In it, there is a monopoly which is established by the
business organizations in the market. Knights and Dukes Homes can adopt this position so that if
it is able to establish a monopoly in the market.
Loss of Market Share ( Position 8 )-In this position a standard price is set for the
different products with a low perceived value (Lê and et.al., 2016). Therefore for Knights and
Dukes Homes it is not recommended.
Justification- Knights and Dukes Homes should adopt the Hybrid Position where it can
set a low price for the products and services and can also differentiate them from the
competitors. By using this position correctly the company can plan correctly to ensure high-level
growth in the future time period as it can attract new customers and can also achieve strategic
advantage over the rivals.
Identification of opportunities for growth
Opportunities for growth are available for a firm in the business environment. These can
be identified as follows using the following frameworks-
Porter's generic strategies-
3
a low price for their products (Hu, 2016). In the context of Knights and Dukes Homes it is quite
necessary that it is able to use this position for targeting new customers. Thus this can make the
company achieve higher level of growth.
Hybrid ( Position 3 )- In this position a mix of low price as well as product
differentiation will be considered. Thus in the context of Knights and Dukes Homes this position
is quite good so that it can achieve growth.
Differentiation ( Position 4 )- This position enables the companies to make sure that the
y are able to differentiate their products. In the context of Knights and Dukes Homes this
position can be adopted.
Focused Differentiation ( Position 5 )- In this position, there is a specific focus which is
made by the companies on certain segments of the market where they can differentiate their
products. This position is good for Knights and Dukes Homes.
Risky High Margins ( Position 6 )- In this position, high prices are set by the businesses
for their products and services without offering something substantial. In the context of Knights
and Dukes Homes this position is not good as it will lead to losses for it.
Monopoly Pricing ( Position 7 )- In it, there is a monopoly which is established by the
business organizations in the market. Knights and Dukes Homes can adopt this position so that if
it is able to establish a monopoly in the market.
Loss of Market Share ( Position 8 )-In this position a standard price is set for the
different products with a low perceived value (Lê and et.al., 2016). Therefore for Knights and
Dukes Homes it is not recommended.
Justification- Knights and Dukes Homes should adopt the Hybrid Position where it can
set a low price for the products and services and can also differentiate them from the
competitors. By using this position correctly the company can plan correctly to ensure high-level
growth in the future time period as it can attract new customers and can also achieve strategic
advantage over the rivals.
Identification of opportunities for growth
Opportunities for growth are available for a firm in the business environment. These can
be identified as follows using the following frameworks-
Porter's generic strategies-
3
Porter's generic strategies are used specifically so that the opportunities for growth can be
identified. In the context of Knights and Dukes Homes, these strategies can be used as follows-
Cost Leadership- In this strategy, there is a requirement for the organizations to make
sure that the costs can be reduced effectively (Lin and et.al., 2016). In the context of
Knights and Dukes Homes, there is a requirement of using this strategy effectively by
reducing the overall level of costs.
Differentiation- In it, the companies make their focus on differentiating their products as
well as services. For Knights and Dukes Homes, there is a requirement of ensuring that
the products and services are differentiated from the other competitors.
Cost Focus- In this strategy, there is a specific focus which is put up by the companies on
certain segments in the market where they can reduce their costs. In the context of
Knights and Dukes Homes, the managers can identify these markets where they can
reduce their costs.
Differentiation Focus- In it, there is a focus on certain markets where the companies can
differentiate their products and services from the competitors (Medeiros, 2017). For
Knights and Dukes Homes, it is essential so that it can plan for achieving growth.
Justification- The managers of Knights and Dukes Homes should make use of Cost
Leadership strategy because using it will ensure that the company is able to reduce its costs to
increase its market share. By attaining more market share it can leave its competitors behind
easily and in this way higher-level of growth can be achieved without problems and issues.
Ansoff Matrix-
Ansoff Matrix is a tool which is used in management to identify the different types of
growth strategies which can be used by the companies so that they are able to achieve higher-
level of growth (The Ansoff Model, 2019). The various strategies under it are as follows-
Market Development- In this strategy the companies target new markets where they can
provide their products as well as services (Medeiros, 2017). Using it effectively, managers of
Knights and Dukes Homes can make sure that they are able to target higher-level growth.
4
identified. In the context of Knights and Dukes Homes, these strategies can be used as follows-
Cost Leadership- In this strategy, there is a requirement for the organizations to make
sure that the costs can be reduced effectively (Lin and et.al., 2016). In the context of
Knights and Dukes Homes, there is a requirement of using this strategy effectively by
reducing the overall level of costs.
Differentiation- In it, the companies make their focus on differentiating their products as
well as services. For Knights and Dukes Homes, there is a requirement of ensuring that
the products and services are differentiated from the other competitors.
Cost Focus- In this strategy, there is a specific focus which is put up by the companies on
certain segments in the market where they can reduce their costs. In the context of
Knights and Dukes Homes, the managers can identify these markets where they can
reduce their costs.
Differentiation Focus- In it, there is a focus on certain markets where the companies can
differentiate their products and services from the competitors (Medeiros, 2017). For
Knights and Dukes Homes, it is essential so that it can plan for achieving growth.
Justification- The managers of Knights and Dukes Homes should make use of Cost
Leadership strategy because using it will ensure that the company is able to reduce its costs to
increase its market share. By attaining more market share it can leave its competitors behind
easily and in this way higher-level of growth can be achieved without problems and issues.
Ansoff Matrix-
Ansoff Matrix is a tool which is used in management to identify the different types of
growth strategies which can be used by the companies so that they are able to achieve higher-
level of growth (The Ansoff Model, 2019). The various strategies under it are as follows-
Market Development- In this strategy the companies target new markets where they can
provide their products as well as services (Medeiros, 2017). Using it effectively, managers of
Knights and Dukes Homes can make sure that they are able to target higher-level growth.
4
Diversification- In it, the firms can diversify their products and services into the market
by introducing new products and services in an entirely new market (Perveen and et.al., 2017). If
the management of Knights and Dukes Homes use it then this will lead towards higher profits
but this strategy is also risky to implement.
Market Penetration- In it, the firms can target high growth by ensuring that they sell
more of their existing products and services in the market. In the context of Knights and Dukes
Homes this strategy can be used for the purpose of ensuring growth if its expands its range in
the market in which it is currently present.
Product Development- In it, the companies need to make sure that they develop the
right products in the market (Rahman and et.al., 2018). The managers of Knights and Dukes
Homes can use innovative techniques and methods for this purpose.
Justification- The management of Knights and Dukes Homes can make use of Market
Development Strategy so that they are able to target a new market for expanding their product
range and thus in this way they will be able to achieve high growth.
Options for growth
There are varied options which are available for Knights and Dukes Homes to growth in
the future time period. Using McKinsey's 7S framework it can identify the effect of its internal
factors on its growth. Bowman's strategic clock can be used to identify the best strategic position
which can be applied by the company. Using Porter's Generic Strategies the right strategy can be
identified. Ansoff Matrix can be used to evaluate the best option for attaining growth and
achieving strategic advantage in the market.
Options and pathways for growth
The different types of options and pathways for growth are available for a company.
Knights and Dukes Homes can evaluate the best possible option which can be used. Using
Ansoff Matrix its managers have identified that they can make use of Market Development
Strategy so that they can target a new market for maximizing their profits as well as market share
to attain a competitive advantage in the future time period.
5
by introducing new products and services in an entirely new market (Perveen and et.al., 2017). If
the management of Knights and Dukes Homes use it then this will lead towards higher profits
but this strategy is also risky to implement.
Market Penetration- In it, the firms can target high growth by ensuring that they sell
more of their existing products and services in the market. In the context of Knights and Dukes
Homes this strategy can be used for the purpose of ensuring growth if its expands its range in
the market in which it is currently present.
Product Development- In it, the companies need to make sure that they develop the
right products in the market (Rahman and et.al., 2018). The managers of Knights and Dukes
Homes can use innovative techniques and methods for this purpose.
Justification- The management of Knights and Dukes Homes can make use of Market
Development Strategy so that they are able to target a new market for expanding their product
range and thus in this way they will be able to achieve high growth.
Options for growth
There are varied options which are available for Knights and Dukes Homes to growth in
the future time period. Using McKinsey's 7S framework it can identify the effect of its internal
factors on its growth. Bowman's strategic clock can be used to identify the best strategic position
which can be applied by the company. Using Porter's Generic Strategies the right strategy can be
identified. Ansoff Matrix can be used to evaluate the best option for attaining growth and
achieving strategic advantage in the market.
Options and pathways for growth
The different types of options and pathways for growth are available for a company.
Knights and Dukes Homes can evaluate the best possible option which can be used. Using
Ansoff Matrix its managers have identified that they can make use of Market Development
Strategy so that they can target a new market for maximizing their profits as well as market share
to attain a competitive advantage in the future time period.
5
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TASK 2
Develop coherent and in-depth business plan that helps in demonstration knowledge and
understanding how to formulate for achieving business objectives
Explanation of basis of competitive advantage for the businesses
Gaining the competitive advantage is the basis for growth of the organisation. In case of
Knights and Dukes homes the major competitive advantage is related to the cost leadership style
in which they sell their products on the low price so that they can attracts the large base of
customers and due to this their business will touch the new height within a small period of time.
Due to this company can beat the rival firms and maintains a new positive position within the
marketplace(Hu, 2016).
Assessment of opportunity available for business
For Knights and Dukes homes the major opportunity is based on the various macro
factors aspects because they are linked with external environment. In this stable political
condition of UK helps in creating the more opportunity for expanding the business within or
outside the country. As people of UK are financially strong due to this they spend more on
buying the products and this helps in enhancing their living standards within the society. In this
Knights and Dukes homes can adopts the social media for promoting their offerings this helps in
attracting the large customers opportunity. At last firm may capture the opportunity by involving
in CSR term that will environmentally beneficial for the company and this will helps in growing
the company(Keough, 2015).
Critically evaluate the option of growth by using Ansoff's growth vector matrix and associated
risk with each option
Ansoff matrix
Market development- This strategy is related to entering into the new market with the
existing products. In case of Knights and dukes homes this strategy helps in expanding
their business with their existing offerings but it contains the risk that is facing the
competition in the new market for this manager of firm may research the market first
before operating their business on new market so that they can overcome the problem
easily.
Develop coherent and in-depth business plan that helps in demonstration knowledge and
understanding how to formulate for achieving business objectives
Explanation of basis of competitive advantage for the businesses
Gaining the competitive advantage is the basis for growth of the organisation. In case of
Knights and Dukes homes the major competitive advantage is related to the cost leadership style
in which they sell their products on the low price so that they can attracts the large base of
customers and due to this their business will touch the new height within a small period of time.
Due to this company can beat the rival firms and maintains a new positive position within the
marketplace(Hu, 2016).
Assessment of opportunity available for business
For Knights and Dukes homes the major opportunity is based on the various macro
factors aspects because they are linked with external environment. In this stable political
condition of UK helps in creating the more opportunity for expanding the business within or
outside the country. As people of UK are financially strong due to this they spend more on
buying the products and this helps in enhancing their living standards within the society. In this
Knights and Dukes homes can adopts the social media for promoting their offerings this helps in
attracting the large customers opportunity. At last firm may capture the opportunity by involving
in CSR term that will environmentally beneficial for the company and this will helps in growing
the company(Keough, 2015).
Critically evaluate the option of growth by using Ansoff's growth vector matrix and associated
risk with each option
Ansoff matrix
Market development- This strategy is related to entering into the new market with the
existing products. In case of Knights and dukes homes this strategy helps in expanding
their business with their existing offerings but it contains the risk that is facing the
competition in the new market for this manager of firm may research the market first
before operating their business on new market so that they can overcome the problem
easily.
Market Penetration- In Knights and Dukes Homes this strategy shows lowering the
amount of product within the existing market. This is relatively consumes less cost in
implementing but contains high risk related to decrease in image of the brand. To
overcome this issue company can lowering the price of their goods on the basis of rival
firms pricing strategy.
Diversification- In context of Knight and Dukes Homes this strategy contains the high
risk because in this firm may enter into the new market with their new offerings that
contains the major risk as it attracts the customers or not. To overcome this risk
organisation can properly research the market and create a awareness into the customer
mind(Park and LaFrombois, 2019).
Product development- In this aspect company can introduce the new product in existing
market for earning more profits. It contains the risk that the product they launched is
famous and attracts the customers or not. For this marketing manager can analyse the
customer taste and preferences after they can can make the product so that they gain more
profits.
Assessment of options form financing growth and consideration of possible risk associated with
suggested options
Company overview- Knights and Duke Homes is a prominent business in the London
that deals as a state agency. In this company the manager want to expanding their business
venture by opening two more offices in the London so that they can attrcts the larege base of
customers and earns a high amount of profits for this manager can build a business case that can
be evaluated below(Sousa and Pinho, 2015).
Vision- Knight and Duke home vision is to earn more profits with large base of
customers attraction by creating a supporting environment for them and provides a best-in class
service.
Mission- The major mission of company is to build a firm on client focused that gives the
best advisory services and capital to the people and fulfils growth by earning more financial
values.
Objectives- The main objective of the Knights and Dukes homes is that they create a
smarter market by investing more in social responsibility that gives quality results to the firm.
2
amount of product within the existing market. This is relatively consumes less cost in
implementing but contains high risk related to decrease in image of the brand. To
overcome this issue company can lowering the price of their goods on the basis of rival
firms pricing strategy.
Diversification- In context of Knight and Dukes Homes this strategy contains the high
risk because in this firm may enter into the new market with their new offerings that
contains the major risk as it attracts the customers or not. To overcome this risk
organisation can properly research the market and create a awareness into the customer
mind(Park and LaFrombois, 2019).
Product development- In this aspect company can introduce the new product in existing
market for earning more profits. It contains the risk that the product they launched is
famous and attracts the customers or not. For this marketing manager can analyse the
customer taste and preferences after they can can make the product so that they gain more
profits.
Assessment of options form financing growth and consideration of possible risk associated with
suggested options
Company overview- Knights and Duke Homes is a prominent business in the London
that deals as a state agency. In this company the manager want to expanding their business
venture by opening two more offices in the London so that they can attrcts the larege base of
customers and earns a high amount of profits for this manager can build a business case that can
be evaluated below(Sousa and Pinho, 2015).
Vision- Knight and Duke home vision is to earn more profits with large base of
customers attraction by creating a supporting environment for them and provides a best-in class
service.
Mission- The major mission of company is to build a firm on client focused that gives the
best advisory services and capital to the people and fulfils growth by earning more financial
values.
Objectives- The main objective of the Knights and Dukes homes is that they create a
smarter market by investing more in social responsibility that gives quality results to the firm.
2
One major aim of company is to increase sales by 20% and profits by 15% that is the major
growth in expanding their business in London by opening two more branches.
STP
Segmenting- In this Knight and Duke Home manager can segment the market by
according to the features and capability of spending power of customers. On the basis of
demographic feature manager can target the people on the basis of family, student and
their spending power. Such as some spend more on buying the homes and some may
prefer a normal flat that includes only basic needs. So that its easy to attracts the people
as per their perceptions(Li Mobin and Keyser, 2015).
Targeting- By operating a new branch in London manager can target the family group
according to their status, taste, habits and their age that is related to 20-40 years.
Positioning- In this manger of Knights and duke homes want to place their position on
the top priority by offering the customers top quality houses and flat on rent so that they
can attracted towards it and retain form them. In positioning the market company need to
use promotional and pricing strategy where they promote their business through social
media, billboards etc. so that its easy to create awareness in the mind of people.
Financial information
After analysing vision, mission, objectives Knights and dukes Homes can make the STP
analysis and according to that they can set their budget because it is helpful in operating the new
two branches in London so that firm may enjoy large growth by gaining competitive advantage
and earns more profits and revenues. For this financial budget and cash flow statement can be
made that can be shown below.
Budget
3
growth in expanding their business in London by opening two more branches.
STP
Segmenting- In this Knight and Duke Home manager can segment the market by
according to the features and capability of spending power of customers. On the basis of
demographic feature manager can target the people on the basis of family, student and
their spending power. Such as some spend more on buying the homes and some may
prefer a normal flat that includes only basic needs. So that its easy to attracts the people
as per their perceptions(Li Mobin and Keyser, 2015).
Targeting- By operating a new branch in London manager can target the family group
according to their status, taste, habits and their age that is related to 20-40 years.
Positioning- In this manger of Knights and duke homes want to place their position on
the top priority by offering the customers top quality houses and flat on rent so that they
can attracted towards it and retain form them. In positioning the market company need to
use promotional and pricing strategy where they promote their business through social
media, billboards etc. so that its easy to create awareness in the mind of people.
Financial information
After analysing vision, mission, objectives Knights and dukes Homes can make the STP
analysis and according to that they can set their budget because it is helpful in operating the new
two branches in London so that firm may enjoy large growth by gaining competitive advantage
and earns more profits and revenues. For this financial budget and cash flow statement can be
made that can be shown below.
Budget
3
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Cash flow statement
Recommendation for the business
By analysing the above business case it is to be recommended for the Knights and dukes
Homes that they can hire experienced person who can properly researched the market so that
growth can be faced in an appropriate way. IN this they can studied the customers taste and
preferences accurately so that deli9vering the services is effective and attracting the new
customers.
TASK 3
Assessing various exit or succession options for small business along with benefits and
drawbacks of each option
A small business have option of either exit or adopt succession aspects in case when they
are not able to make profits and perform in competition. In context to Knight and Duke Homes,
the estate agency have faced huge complications in managing business from its establishment. In
this context, the managers have decided to exit from the industry. Exit options are the things that
all capitalist in small business organization looks for (Business exit options, 2020). Following are
certain exit options with benefits and drawbacks for Knight and Duke Homes:
Liquidation: This option involves sell all assets as well as closing up businesses from real
world. Liquidation refers to bringing business to end as well as distributing its assets or other
properties to claimants. For any small business such as Knight and Dukes Homes or other which
are dependent on performances and practices of single person, liquidation is best exit option as
they have nothing else to sell. Following are benefits and drawbacks of the options:
4
Recommendation for the business
By analysing the above business case it is to be recommended for the Knights and dukes
Homes that they can hire experienced person who can properly researched the market so that
growth can be faced in an appropriate way. IN this they can studied the customers taste and
preferences accurately so that deli9vering the services is effective and attracting the new
customers.
TASK 3
Assessing various exit or succession options for small business along with benefits and
drawbacks of each option
A small business have option of either exit or adopt succession aspects in case when they
are not able to make profits and perform in competition. In context to Knight and Duke Homes,
the estate agency have faced huge complications in managing business from its establishment. In
this context, the managers have decided to exit from the industry. Exit options are the things that
all capitalist in small business organization looks for (Business exit options, 2020). Following are
certain exit options with benefits and drawbacks for Knight and Duke Homes:
Liquidation: This option involves sell all assets as well as closing up businesses from real
world. Liquidation refers to bringing business to end as well as distributing its assets or other
properties to claimants. For any small business such as Knight and Dukes Homes or other which
are dependent on performances and practices of single person, liquidation is best exit option as
they have nothing else to sell. Following are benefits and drawbacks of the options:
4
Benefits: The option is simplest and quickest among all (Rigas and Nawar, 2016). By
using option of liquidation, Knight and Duke Homes need not to worry about the enterprise again
as it is free of chains participated in trying to preserve its legacy.
Drawbacks: The option do not provide biggest investment return. The only revenue from
liquidation sale is through disposing assets like inventory, land and other equipments. The option
will not provide another chance to Knight and Duke Homes to trade again in the pertaining
marketplace. It also restrict achieving the left payment from various people.
Management Buy-Outs: It is very difficult or complex to plan ahead for diverse of the
methods. However, it is possible when an entrepreneur is ready to exit its business. In this
options, people of stakeholders that are aware about organisation situation are ready to buy the
entity from entrepreneur (Rudolf, Kienast and Hersperger, 2018). In case with Knight and Dukes
Home, managers are familiar with the real estate agency and knows the ways to mange it, the
exit option can result towards smoother transition along with enhancing loyalty to legacy on
establishment.
Benefits: Business is handed off to the person who have huge experience in the company.
With this option, Knight and Dukes Homes will be able to make some money after the deal. The
option also maintains intact at some extent. It is simple along with easy to arrange and also
maintains confidentiality. It also have high success chances than others.
Drawbacks: The limitation of management buy for Knight and Dukes Home is that the
option creates difficulties in raising finance and monetary resources. It also involves insider
trading risks that may reduce purchasing price of shares of entity. It is critical for small business
to find a manager or employee who prefers to buy the entity.
Selling to investors or partners: By selling business to investors or partners, an
entrepreneur can exit from the market. It is possible for small business to selling the company
just for the stake of capitalist or partners. For Knight and Dukes Home, this option can be
relative with Business as usual strategy as per dependence of buyer.
Benefit: The options keeps legacy remaining intact as well as continuity of all the
business function as usual. While using the options, Knights and Dukes Homes can exit business
with hope of earning huge profit on sale of shares. The dealing and working are done with
known buyer that makes the entire process easier.
5
using option of liquidation, Knight and Duke Homes need not to worry about the enterprise again
as it is free of chains participated in trying to preserve its legacy.
Drawbacks: The option do not provide biggest investment return. The only revenue from
liquidation sale is through disposing assets like inventory, land and other equipments. The option
will not provide another chance to Knight and Duke Homes to trade again in the pertaining
marketplace. It also restrict achieving the left payment from various people.
Management Buy-Outs: It is very difficult or complex to plan ahead for diverse of the
methods. However, it is possible when an entrepreneur is ready to exit its business. In this
options, people of stakeholders that are aware about organisation situation are ready to buy the
entity from entrepreneur (Rudolf, Kienast and Hersperger, 2018). In case with Knight and Dukes
Home, managers are familiar with the real estate agency and knows the ways to mange it, the
exit option can result towards smoother transition along with enhancing loyalty to legacy on
establishment.
Benefits: Business is handed off to the person who have huge experience in the company.
With this option, Knight and Dukes Homes will be able to make some money after the deal. The
option also maintains intact at some extent. It is simple along with easy to arrange and also
maintains confidentiality. It also have high success chances than others.
Drawbacks: The limitation of management buy for Knight and Dukes Home is that the
option creates difficulties in raising finance and monetary resources. It also involves insider
trading risks that may reduce purchasing price of shares of entity. It is critical for small business
to find a manager or employee who prefers to buy the entity.
Selling to investors or partners: By selling business to investors or partners, an
entrepreneur can exit from the market. It is possible for small business to selling the company
just for the stake of capitalist or partners. For Knight and Dukes Home, this option can be
relative with Business as usual strategy as per dependence of buyer.
Benefit: The options keeps legacy remaining intact as well as continuity of all the
business function as usual. While using the options, Knights and Dukes Homes can exit business
with hope of earning huge profit on sale of shares. The dealing and working are done with
known buyer that makes the entire process easier.
5
Drawback: It is difficult for Knights and Dukes Homes to search suitable buyer that are
willing to make purchase of business shares. Moreover, it is impossible to stay engaged in entity
in any type of capacity. The process can create huge problems between the both parties (Swan
and et.al., 2018).
From the mentioned exit options, Liquidation option is suitable for Knights and Dikes
Homes as it involves easy procedures to wind up the company and also preserves legacy of it.
With this option, the entity can freely wind up its practices in simple and ease manner.
Evaluation of exit or succession options addition to making valid recommendations
From the viewpoints of Wang (2016), it is evaluated that a small business have various
exit options. It is evaluated that when Knights and Dikes Homes adopts liquidation option they
they gain benefits of easy procedures, wounding business quickly and preserving legacy. In
contrary, while the small business goes with exit option of selling to investors or partners that it
enjoys benefits related to earning more revenues on sale of shares and making dealing with
known person who have competence to manage the business and develop it in future. As
compared, management buy-outs options can create difficulty of complexity in raising funds and
exiting from the market. From the options, its is recommended to Knights and Dukes Homes that
it can adopt liquidation options as it is easy and complete entire winding transactions quickly.
Critical evaluation of succession or exit options for the company and justified recommendations
for supporting implementation
According to Zhou and et.al., (2017), it is critically evaluated that exit options is a
strategy that it is adopted by businessman for exiting from the company. One of the option is
liquidation whose benefits includes easy process and quick winding up of entity. However,
drawbacks of liquidation option are lowest investment returns and claims of creditors on funds
from sold assets. The other option is management buy-outs that benefits the small business in
handling the entity in hands of known person and making more money after the deals. In
contrary, its drawbacks includes difficulty in searching prospective known buyer.
Knights and Dukes Homes is recommended to opt exit option of liquidation as the option
engrosses simplest and quick transactions. Moreover, the entrepreneur do not have to worry
about the company again as it involves free of chains for preserving legacy.
6
willing to make purchase of business shares. Moreover, it is impossible to stay engaged in entity
in any type of capacity. The process can create huge problems between the both parties (Swan
and et.al., 2018).
From the mentioned exit options, Liquidation option is suitable for Knights and Dikes
Homes as it involves easy procedures to wind up the company and also preserves legacy of it.
With this option, the entity can freely wind up its practices in simple and ease manner.
Evaluation of exit or succession options addition to making valid recommendations
From the viewpoints of Wang (2016), it is evaluated that a small business have various
exit options. It is evaluated that when Knights and Dikes Homes adopts liquidation option they
they gain benefits of easy procedures, wounding business quickly and preserving legacy. In
contrary, while the small business goes with exit option of selling to investors or partners that it
enjoys benefits related to earning more revenues on sale of shares and making dealing with
known person who have competence to manage the business and develop it in future. As
compared, management buy-outs options can create difficulty of complexity in raising funds and
exiting from the market. From the options, its is recommended to Knights and Dukes Homes that
it can adopt liquidation options as it is easy and complete entire winding transactions quickly.
Critical evaluation of succession or exit options for the company and justified recommendations
for supporting implementation
According to Zhou and et.al., (2017), it is critically evaluated that exit options is a
strategy that it is adopted by businessman for exiting from the company. One of the option is
liquidation whose benefits includes easy process and quick winding up of entity. However,
drawbacks of liquidation option are lowest investment returns and claims of creditors on funds
from sold assets. The other option is management buy-outs that benefits the small business in
handling the entity in hands of known person and making more money after the deals. In
contrary, its drawbacks includes difficulty in searching prospective known buyer.
Knights and Dukes Homes is recommended to opt exit option of liquidation as the option
engrosses simplest and quick transactions. Moreover, the entrepreneur do not have to worry
about the company again as it involves free of chains for preserving legacy.
6
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CONCLUSION
From the above report, it can be concluded that planning for growth is a strategic activity
which can be undertaken by the managers. Every company is required to plan for growth at some
point of time. These plans can be made for a specific period of time by the managers such as
Short-Term, Medium-Term and Long-Term. If the organization is able to frame the correct
growth strategy then it surely attain the required strategic advantage over the competitors in the
future time period. Thus their goals and objectives can be achieved. There are different
considerations which are required to be considered by the management. Ansoff Matrix can be
used to evaluate the best options for growth. A business plan is quite helpful because it can be
used as a roadmap for the purpose of guidance. Exit options can be chosen by the organizations
so that they can exit the business if they are not making the required profits.
7
From the above report, it can be concluded that planning for growth is a strategic activity
which can be undertaken by the managers. Every company is required to plan for growth at some
point of time. These plans can be made for a specific period of time by the managers such as
Short-Term, Medium-Term and Long-Term. If the organization is able to frame the correct
growth strategy then it surely attain the required strategic advantage over the competitors in the
future time period. Thus their goals and objectives can be achieved. There are different
considerations which are required to be considered by the management. Ansoff Matrix can be
used to evaluate the best options for growth. A business plan is quite helpful because it can be
used as a roadmap for the purpose of guidance. Exit options can be chosen by the organizations
so that they can exit the business if they are not making the required profits.
7
REFERENCES
Books and Journals:
Abolhasani, S. and et.al., 2016. Simulating urban growth under planning policies through parcel-
based cellular automata (ParCA) model. International Journal of Geographical
Information Science. 30(11). pp.2276-2301.
Colantoni, A. and et.al., 2016. Cities as selective land predators? A lesson on urban growth,
deregulated planning and sprawl containment. Science of the Total Environment. 545.
pp.329-339.
DODDS, R., DIMANCHE, F. and SADOWSKI, M., 2018. Planning for growth in islands: the
case of Cuba. Tourism management in warm-water island destinations: systems and
strategies. pp.95-107.
Grooms, W. and Frimpong Boamah, E., 2018. Toward a political urban planning: Learning from
growth machine and advocacy planning to “plannitize” urban politics. Planning Theory.
17(2). pp.213-233.
Hu, R., 2016. Planning for growth: Urban and regional planning in China.
Lê, M. and et.al., 2016. Personalized radiotherapy planning based on a computational tumor
growth model. IEEE transactions on medical imaging. 36(3). pp.815-825.
Lin, K. and et.al., 2016, August. Planning method for distribution networks based on load
growth characteristics of the industry. In 2016 China International Conference on
Electricity Distribution (CICED) (pp. 1-5). IEEE.
Medeiros, E., 2017. From smart growth to European spatial planning: a new paradigm for EU
cohesion policy post-2020. European Planning Studies. 25(10). pp.1856-1875.
Perveen, S. and et.al., 2017. Evaluating transport externalities of urban growth: a critical review
of scenario-based planning methods. International Journal of Environmental Science
and Technology. 14(3). pp.663-678.
Rahman, Y. A. and et.al., 2018. Distributed generation’s integration planning involving growth
load models by means of genetic algorithm. Archives of Electrical Engineering. 67(3).
pp.667-682.
Rigas, D. and Nawar, Y. S., 2016, July. Leadership and innovation growth: a strategic planning
and organizational culture perspective. In International Conference on HCI in Business,
Government, and Organizations (pp. 565-575). Springer, Cham.
Rudolf, S. C., Kienast, F. and Hersperger, A. M., 2018. Planning for compact urban forms: local
growth-management approaches and their evolution over time. Journal of
environmental planning and management. 61(3). pp.474-492.
Swan, M. and et.al., 2018. Fire planning for multispecies conservation: Integrating growth stage
and fire severity. Forest Ecology and Management. 415. pp.85-97.
Wang, W., 2016. Population aging, family planning policy adjustment and China’s economic
growth. China Economic Quarterly. 16(1). pp.67-96.
Zhou, Y. and et.al., 2017. A novel path planning algorithm based on plant growth mechanism.
Soft Computing. 21(2). pp.435-445.
(Rigas and Nawar, 2016) (Rudolf, Kienast and Hersperger, 2018) (Swan and et.al.,
2018) (Wang, 2016) (Zhou and et.al., 2017)
Online
The Ansoff Model. 2019. [Online]. Available through:
<https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-model/>
8
Books and Journals:
Abolhasani, S. and et.al., 2016. Simulating urban growth under planning policies through parcel-
based cellular automata (ParCA) model. International Journal of Geographical
Information Science. 30(11). pp.2276-2301.
Colantoni, A. and et.al., 2016. Cities as selective land predators? A lesson on urban growth,
deregulated planning and sprawl containment. Science of the Total Environment. 545.
pp.329-339.
DODDS, R., DIMANCHE, F. and SADOWSKI, M., 2018. Planning for growth in islands: the
case of Cuba. Tourism management in warm-water island destinations: systems and
strategies. pp.95-107.
Grooms, W. and Frimpong Boamah, E., 2018. Toward a political urban planning: Learning from
growth machine and advocacy planning to “plannitize” urban politics. Planning Theory.
17(2). pp.213-233.
Hu, R., 2016. Planning for growth: Urban and regional planning in China.
Lê, M. and et.al., 2016. Personalized radiotherapy planning based on a computational tumor
growth model. IEEE transactions on medical imaging. 36(3). pp.815-825.
Lin, K. and et.al., 2016, August. Planning method for distribution networks based on load
growth characteristics of the industry. In 2016 China International Conference on
Electricity Distribution (CICED) (pp. 1-5). IEEE.
Medeiros, E., 2017. From smart growth to European spatial planning: a new paradigm for EU
cohesion policy post-2020. European Planning Studies. 25(10). pp.1856-1875.
Perveen, S. and et.al., 2017. Evaluating transport externalities of urban growth: a critical review
of scenario-based planning methods. International Journal of Environmental Science
and Technology. 14(3). pp.663-678.
Rahman, Y. A. and et.al., 2018. Distributed generation’s integration planning involving growth
load models by means of genetic algorithm. Archives of Electrical Engineering. 67(3).
pp.667-682.
Rigas, D. and Nawar, Y. S., 2016, July. Leadership and innovation growth: a strategic planning
and organizational culture perspective. In International Conference on HCI in Business,
Government, and Organizations (pp. 565-575). Springer, Cham.
Rudolf, S. C., Kienast, F. and Hersperger, A. M., 2018. Planning for compact urban forms: local
growth-management approaches and their evolution over time. Journal of
environmental planning and management. 61(3). pp.474-492.
Swan, M. and et.al., 2018. Fire planning for multispecies conservation: Integrating growth stage
and fire severity. Forest Ecology and Management. 415. pp.85-97.
Wang, W., 2016. Population aging, family planning policy adjustment and China’s economic
growth. China Economic Quarterly. 16(1). pp.67-96.
Zhou, Y. and et.al., 2017. A novel path planning algorithm based on plant growth mechanism.
Soft Computing. 21(2). pp.435-445.
(Rigas and Nawar, 2016) (Rudolf, Kienast and Hersperger, 2018) (Swan and et.al.,
2018) (Wang, 2016) (Zhou and et.al., 2017)
Online
The Ansoff Model. 2019. [Online]. Available through:
<https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-model/>
8
Business exit options. 2020. [Online]. Available through: <https://www.fundera.com/blog/exit-
strategy-for-small-business>
9
strategy-for-small-business>
9
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