Planning for Growth

This report discusses the key considerations for evaluating growth opportunities, opportunities for growth using Ansoff's growth vector matrix, sources of funding with their benefits and drawbacks, and a business plan for the growth of a business. It also includes a case study of Higher Rhythm Ltd, a music and media organization based in Yorkshire, UK, that wants to expand its business in Australia.

Planning for growth
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Table of Contents
Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Key considerations for evaluating growth opportunities.................................................3
P2. Opportunities for growth using Ansoff's growth vector matrix.......................................5
TASK 2............................................................................................................................................7
P3. Sources of funding with their benefits and drawbacks....................................................7
TASK 3............................................................................................................................................8
P4. Business plan for growth of business...............................................................................8
TASK 4..........................................................................................................................................11
P5. Succession and exit plan for small business with its advantage and disadvantage........11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Planning is the process that inserts the positive approach of an individual to achieve its goals in
an effective manner. It is basically defines the security the future by performing certain task and
activities in present scenario. It is the advance thinking of an individual that has been developed
in order to gain success and development in future period of time (Denton, G and et. al., 2017) .
It also helps to measure the impacts on different strategies that are implied to achieve success
and growth. This report is about the Higher Rhythm Ltd is the music and media organisation that
is based in Yorkshire, UK founded in 2001 and provides their services on locally, regionally and
on international level as well. Company wants to expand their business in Australia by
introducing their own music and some fundamentals as well that supports the work of music
industry. This report includes a detail brief about the Porter’s generic strategy and Ansoff matrix
to analyse the growth opportunities. Furthermore, includes the different source of fund and
succession options that is available for growth.
TASK 1
P1. Key considerations for evaluating growth opportunities
Planning is the process of defining and evaluating the changes as per the requirement to
achieve the required goals and objectives. It is the process of the company to balance up the gap
in between the where the company is and from where company wants to achieve after a periods
of time. Higher Rhythm Ltd is the SME and wants to achieve growth with their expended
business that will be operated in Australia.
Porter's generic strategy
It is the strategy that defines the pathway and provides the competitive advantage to the company
in this competitive marketplace (Haaland, C. and van den Bosch, C. K., 2015). It includes four
different strategies that are used by the company in order to achieve advantage from their rivals.
It helps to formulate different strategies that help while expanding the business.
 Cost leadership: It is the strategy that is used when company offers the product and
services with minimum prices that provides the support to attain highest market share.
Higher Rhythm uses cost leadership theory to attract the large number of customers and
provides their services with comparatively low cost as per their competitors.
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 Differentiation: It is the strategy in which company presents implements innovation and
creativity in their product and services in order to achieve higher sales and large market
share. With the help of this strategy company develop that products that is completely
new in the market. Higher Rhythm uses this strategy in order to gain competitive
advantage by grabbing the attention of large customer base.
Cost focus: It is the strategy that is used by the company in order to covers the niche market and
provides the different product and services with minimum cost (Mason, P., 2015)
 . This has been introduced by the company by knowing the complete analysis of market
and to satisfy the needs and demand of the customers. Higher Rhythm collects the large
number of customer by providing the services on lower cost.
 Differentiation focus: It is the strategy that is used by the company while providing the
diversified products and services. It brings the loyal brand image in front of the
customers and gain long term success in the market. Higher Rhythm uses this strategy
while offering new services in the business environment and with this company collect
maximum revenue by enhancing the sales and profit.
There are some different strategies that are driven by the Porter’s that helps to gain the higher
competitive advantage. Higher Rhythm Ltd muses cost focus strategy in order to achieve great
productivity and profit while measuring expansion in their business. With the help of this
strategy company provides the services with minimise cost to grab the attention of large
customer base and to enhance the profitability of the company.
PESTLE analysis
It is an analysis that defines the macro-environmental factor that affects the performance
of Higher Rhythm that helps to gain the advantage while serving growth with the expansion.
There are some different factors that is measured by this analysis and that is as defined below as:
 Political: It includes the interventions of the government as UK has more stability thus
they provides the larger opportunity to the new business to measure more development.
Thus Higher Rhythm gets the advantage of it as Australia has wider acceptability and
provides a level of certainness.
 Economical: It includes different factors as like inflation, foreign exchange and
economical condition of the country (Unit, E. P., 2015). The economic value of Australia
is more stable and quite much higher as compared to UK and US. It acts as the good
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opportunity for the company while expanding the new business and achieves higher sales
within this sector.
Australia has strong economical growth rate which is higher than UK and US. Hence it is
a great opportunity for Higher Rhythm Ltd, as they can expand their business and achieve
higher revenue generation
 Social: It shares the belief, values and living standard of the society that has direct
impact on the Higher Rhythm Limited. Australia has a wider acceptance of music thus
company gets more positive response and peoples are also very much interested about the
music thus it helps the company to measure more success with expansion.
 Technological: Australia uses more advanced technologies and tries to satisfy the need
and demand of the customers. Higher Rhythm also gets a support as they also works with
more efficiency and new music fundamentals.
 Legal: It reflects the legal factors of the country that must be follows by every company.
It enhances the disputes associated with wages, equality and diversity, discrimination and
many others. Australia has huge restriction and that is followed by the company that
develops the brand image and more values in the market.
 Environmental: It includes the climatic conservation and environmental protection and
Australia has strict laws and act towards the safety of environment (Aganbegyan, A.G.
ed., 2019). Higher Rhythm uses the proper uses of all the resources and doesn’t generate
noise pollution and provides the discs that will be recycled.
Higher Rhythm Ltd as wants to expand their business in Australia and with these they wants
to come with the new pinch of music. As it is one of the major factors as a lot of people get
attracted towards the music thus it is the positive aspect for the company and helps to gain the
higher competitive advantage. As Australia is the country that has wider acceptability and a lot
of people get attracted towards the basics of the music and it is the whelming concern for the
Higher Rhythm Ltd.
P2. Opportunities for growth using Ansoff's growth vector matrix
Ansoff matrix is used to develop different strategies and a framework that helps while
developing certain plans by which company gains the growth in future period of time. This
model has a focus to fulfil the needs and demand of the customers and grab the opportunities of
the market that aid to more sales. This model is as explained below as:
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Market penetration: In this strategy the existing product will be sold in existing market
to shares the higher market share. It is valuable for Higher Rhythm as they are very
much aware about the different advancement of their own market and already has a
loyal brand base that takes them all of different from others.
(Source: What is Ansoff matrix?, 2020)
 Market development: It is used when company sells their product and services in new
market by targeting the particular market. It requires a lot of investments and fund as
newer market has different aspects thus to settle in completely differ market need more
research work. Thus Higher Rhythm Limited uses this by using different promotional
activities to enlarge the market share.
 Product development: It assists the induction of new products in the existing process
that is developed while attaining the confidence of the customers and achieves long
profit. It is used by Higher Rhythm Limited to develop more and more sales and profit
and to gain the advantage of competition.
 Diversification: It involves the introduction of new innovatory and creative products in
newer market. It is even more risky for the business as it involves a lot of resistance that
resist the performance of the company.
These are the different strategies formed under Ansoff matrix and Higher Rhythm
Limited uses diversification strategies. As newer market brings positive changes for the new
business and as much the risk that much the profit too. And music industry is the one that is
very much known by all the people and everyone has huge interest towards the music and
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musicians. It also helps the company to achieve its name and fame on wider platform that
supports the growth and development of the company. Higher Rhythm Ltd uses the
diversification strategy in order to connect with the large number of public. Music doesn’t
have the certified range it flows on wider level that is the positive aspect for the company and
helps to gain the higher competitive advanatage.
TASK 2
P3. Sources of funding with their benefits and drawbacks
Source of fund helps the company to raise its capital that helps the company while making
a contribution towards the achievements of goal and objectives. Higher Rhythm Limited requires
£550000 to expand its business and they have a secure fund of around £25000. Thus company
has limited number sources while requires other amount in order to raise their funds and that is
divided as follows:
Internal sources: It is the fund that is generated by the company by themselves as well
and that is gained by selling their own assets and capital and also the detainment of earning from
the market.
External sources: It is the fund that is gained by the company as from the other types of
funds and includes different factors as like debentures, crowd funding, bank loans, equity shares
and many others as well (Helin, J. and Jabri, M., 2016).
. There are some of the sources that are used by Higher Rhythm Limited that are as
followed as:
Bank loan: It is the amount that is borrowed by the company as from the bank and then that
is repaid back by them after the period of time. It is most common source of fund that is used by
the companies. It is available in both the terms as like long and short and Higher Rhythm
Limited gets that with certain interest rates.
Advantage Disadvantage
Higher Rhythm Limited gets the advantage from
bank loan as they get the huge amount from the
bank and that is being paid back after the certain
period of time with full interest.
Higher Rhythm Limited also has disadvantage too
because the loan is provided in return of some of the
asset and bank takes some security too and that is
seized if company doesn’t able to pay that amount
back.
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Overdraft: Overdrafts is the extra facilities that is gained by the bank to its special
customers and in this bank extend the excess limit of the credit by which certain amount is
withdrawal by the company.
Advantage Disadvantage
It has more flexibility and comfortless by which
Higher Rhythm Limited gets more freedom to
withdraw the amount from their balance (Wellton,
L 2017).
Higher Rhythm Limited also has to pay the high
amount in return of that overdraft.
Crowd funding: In this, amount will be collected from the large number of collected
audience and that is basically performs from the digital platform.
Advantage Disadvantage
Higher Rhythm Limited gets the advantage of this
as like they use online platforms that also promote
the product and services.
Higher Rhythm Limited faces the disadvantage too
as it imparts the low brand image in the market.
Angel financing: It is the source in which some of the investors invest in the business as per
their interest and achieves both sales and profit as per the condition of business.
Advantage Disadvantage
Higher Rhythm gains more advantage as they are
able to connect the knowledge and belief of the
investors.
Higher Rhythm Limited get disadvantage from
angel financing as the shares has been divided that
divided the sales and profit of the business
(Whelpton, 2015).
These are the different sources of funds in which Higher Rhythm Limited uses bank loan as to
develop more profit and sales in the expanded business. As they have a very good position and
acceptability as well that attracts the customers and after that loan will easily manage by the
Higher Rhythm Limited.
Higher Rhythm Ltd must uses the bank loan as they have that much potential to get pay back
the amount to the bank as they are the well known business. People also have the lot of interest
and they were conducting their own concerts with different artist at different places that is the
positive norm for the business. The bank loan also supports then while expanding the business in
effective manner and to gain maximise sale and profit from the market.
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TASK 3
P4. Business plan for growth of business
Business plan has acquires a lot of information within that document that helps the
company to achieve its target within the specified period of time. It is a written document that
consist all the relative information that is requires for the business to measure more growth and
development. Higher Rhythm Limited needs the business plan that assists them to achieve the
development and large market share in an effective manner. It reflects the requirements of the
Higher Rhythm Limited that involves all the different factors as like vision, mission, objective
and many other factors too. That helps to operate different function with more sufficiency and
effectiveness and also supports the company while making different decision for the welfare of
the company. It also includes different policies that are related to the investments that are
developed in order to attain higher sales and profit while expanding new business. The major aim
behind the business plan is to develop more positivism in the business environment and to
achieve the better outcome within the certain period of time. Higher Rhythm Limited works with
musical industry launches new music video, albums that attract large number of customers (Wu,
2015). They work to provide differ guidelines about how to use release the music videos and get
paid from that in an effective manner. There are different strategies that must be follows by the
company in order to gain effectiveness in the marketplace in Australia as they are very much get
attracted towards the music. That plan includes some of the differ factors that are as defined
below as:
 Vision: Higher Rhythm Limited works with the aim to provide the widest platform to all
the peoples who are related with the music industry. They provide the broadest
technology to create fun experiences and impart more calmness in the life of the people.
 Mission: Higher Rhythm Limited has the mission to grab the attention of higher number
of sales by attracting the larger people related to the music industry.
 Strategically objectives: The core objective of Higher Rhythm Limited is to develop
more and more profit within the industry and try to enhance the profit ratio of the
company as from 20%- 30% in the next 2 years. They works to get satisfy the people
with goods and mind relaxing music that attracts the large number of workforce. They
also use SMART objective in order to gain the high competitive advantage specific,
achievable, measurable, realistic and time bound. Higher Rhythm Ltd works with the
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objective to gain the attraction of the large number of people and for this they plan to
promote their service while making the concerts or the singing programmes in the
crowded places.
 Financial information: It is the information that is related to the inflows and outflows of
the company that is the major part of the company that helps to attain the goals in
effective manner. Higher Rhythm Limited uses different source as like internal and
external funds in order to achieve its business goals in timely manner.
By getting expansion Higher Rhythm Limited performs different activities and that helps to
perform the budget in order to operate their financial abilities (McLean,2018). It includes all the
differ activities as like performing advertisement, promotional events, technological
advancement and many others factors too.
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Implementing
technology cost
15000 - -
Promotional event 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
As from the above budget, manager of Higher Rhythm Limited to get a support from the
company while expanding their business in Australia.
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As from the cash flows, it is known that company is in better state as there liabilities are much
lesser as compared to the assets. Higher Rhythm Limited pay several taxes in all the years and
have cash as in 2015 ($102203), 2016 ($200354), 2017($238503) and there estimated incomes is
$72001.
The business plan of the Higher Rhythm Ltd defines the proper allocation of all the resources
that has been implemented within the business to enhance the productivity of the company. The
financial projection reflects the market position and the ability of the business that helps the
company while expanding the business on wider platform. While the cash flow projection
reflects the inflows and outflow of the Higher Rhythm Ltd and it reflects that company is in
favoured position and have gain the profit with more sufficiency. They have the adequate
amount of fund that supports the business while expanding the business to Australia.
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TASK 4
P5. Succession and exit plan for small business with its advantage and disadvantage
It is mandatory for the company to develop the succession and exit as it helps to gain the
effective outcome and it has huge impact on the performance of the company (Leick, 2018)
(Sell, 2018). It provides the support to the company while dealing with the various uncertainties
that is developed in the market as on continuous basis. There are differ succession and exit plan
that is as explained as:
Exit plan:- It refers to the inclusive analysis of certain factors that affects the performance of
Higher Rhythm Limited and also helps to measure several issues that resist the profitability of
the business. There are some plans for exit that must be taken care by the company as like:
Winding up:- It is a form in which business sale all of their assets in order to fulfil their
liabilities and provides the equal and required distribution to the shareholders.
Advantage Disadvantage
It has the benefit to the company as they didn’t have any
liability and they are completely free from the legal
disputes.
It might that Higher Rhythm Limited losses its market
share and it is the most time consuming process that
brings more burden on the company.
Selling in open market: It is the process in which company offers their products and
services on and on sale. It might that all the goods has been purchased by the third party and it
doesn’t has any negative impact as everything will be sort it out without reflects the brand image.
Advantage Disadvantage
It doesn’t affects the goodwill of the company as
business is purchased by the third party (Gallent, 2018).
Higher Rhythm Limited looses their skilled and
knowledgeable employees thus quality of the business
get vanished.
Succession plan:- It include the different opportunities that is gained by the company in order to
develop their sales and profit person (Business Exit and Succession Planning, 2018). In this the
leadership will be transferred to some other person. Higher Rhythm Limited prepares that to deal
with different issues and they use merger and acquisition.
 Merger & acquisition: It is the process in which two businesses combine together to
develop their sales and these companies has same size to enhances the growth in
marketplace. While acquisition is in which one company owns the other to enhance the
profitability.
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Advantage Disadvantage
It develops the different skills and connects the best and
knowledgeable person to gain more competition.
There are some disadvantages as well in which more
complexities will be generated as there are different
people who have different mindset.
It has been analysed that succession plan in which merger and acquisition will is opted by
the Higher Rhythm Limited to gain the advantage from the competitive market. It helps to
achieve the better growth and larger market share and gain long time success in future. Higher
Rhythm Ltd wants to expand the business thus they use or focused towards the succession plan
through which they further target to the merger and acquisition. Through this they could connect
their business with the well known business of Australia and with this collaboration they have a
huge impact on the music lovers. It diversifies the range of the Higher Rhythm Ltd and chains to
gain the more advantage from the competition
CONCLUSION
It has been concluded from the above report that planning is necessary for the company
while attaining the long term success in the business. While expanding the business it is required
that company must prepare the business plan to assist the goals and targets of the business. In
addition to this Porter's generic model and Ansoff matrix used to formulate different strategies to
gain success and development.
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REFERENCES
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Mason, P., 2015.Tourism impacts, planning and management. Routledge.
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Pencetakan Nasional Malaysia Berhad.
Aganbegyan, A.G. ed., 2019. Regional studies for planning and projecting: the Siberian
experience (Vol. 7). Walter de Gruyter GmbH & Co KG.
Helin, J. and Jabri, M., 2016. Family business succession in dialogue: The case of differing
backgrounds and views. International Small Business Journal. 34(4). pp.487-505.
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planning, knowledge and dreams. Scandinavian Journal of Hospitality and
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Whelpton, P. K., Campbell, A. A. and Patterson, J. E., 2015. Fertility and family planning in the
United States. Princeton University Press.
Wu, F., 2015.Planning for growth: Urban and regional planning in China. Routledge.
Leick, B. and Lang, T., 2018. Re-thinking non-core regions: planning st
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Planning Reliability Growth. In 2018 Annual Reliability and Maintainability Symposium
(RAMS) (pp. 1-6). IEEE.
Gallent, N. and Tewdwr-Jones, M., 2018. Rural second homes in Europe: Examining housing
supply and planning control. Routledge.
McLean, M., 2018. Understanding your economy: Using analysis to guide local strategic
planning. Routledge.
Online
What is Ansoff matrix?. 2020. [Online] Available through: <
https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>.
Business Exit and Succession Planning. 2018. [Online] Available through
<https://www.ldb.com.au/our-services/business-exit-succession-planning/>.
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