Planning for Growth

This report discusses the planning for growth in business organizations, focusing on competitive advantage, opportunities, growth options, funding sources, and exit strategies. It explores the use of Ansoff's growth matrix and provides insights on market penetration, product development, market development, and diversification. The report also discusses the benefits and drawbacks of funding sources such as bank loans and angel investors. Additionally, it covers exit strategies like liquidation and sale to stakeholders. The case study is based on Speedboard Assembly Services, a company in the Electrical and Electric Manufacturing Industry.

Planning for
growth

INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
An explanation of the basis of competitive advantage for the business.................................1
An assessment of the opportunities available to the business................................................2
An assessment of the options for growth, applying Ansoff’s growth vector matrix with an
assessment of the risk of each option.....................................................................................4
Potential sources of funding available to businesses and discuss benefits and drawbacks of
each source.............................................................................................................................1
Exit or succession options for a small business explaining the benefits and drawbacks of each
option......................................................................................................................................1
A recommendation for the business.......................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Planning acts as a strategic activity with the help of which business organisation can
effectively enable their business towards growth and further increase organisation revenue ratios.
With the help of proper and well framed planning business organisation can allocate organisation
limited resources into a centred effort that effectively lead industry to adopt changes that are
mainly driven by technological advancements and competitors (Ward, 2016). Thus, it becomes
essential for business organisations to take advantage of formative strategies and draft a well
defined business plan in order to gain high growth opportunities. Present report has been
conducted on, Speedboard Assembly Services. Company was founded in the year 1983 while
having headquartered in Windsor, South East England, ( UK). Organisation offer their services
in Electrical and Electric Manufacturing Industry. Speedboard Assembly Services offer their
services in market sector of Industrial & Instrumentation, Communications & Broadcast,
Transport, Aerospace & Defence and Medical. In this report formative discussions has been
made on, Ansoff Matrix along with numerous form of growth strategies. In addition with this
sources of finance are also covered in this report with, business plan.
PART 1
An explanation of the basis of competitive advantage for the business
Competitive analysis
Competitive advantage termed as a initiative with the help of which organisation can
effectively able to frame strategies in best effectively form as to gain more competitive
advancements as compared to their competitors (Barbour and Deakin, 2012). In context with,
Speedboard Assembly Services organisation manager facilitates external evaluation as to
effectively improve their organisational services as to offer best effective services to customers.
As per the evaluation, it has been determined that Speedboard Assembly Services main
resources is their skilled and potential employees those who effectively provide their services
and to stimulate organisational growth along with satisfying customers with best. Organisation
holds their capability in terms of offering their services in IT sector as to offer best marketing
services.
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An assessment of the opportunities available to the business
It is essential for each and every business organisation to have best effective form of
strategies as to conduct their operations in well defined manner. For this it become important for
them to evaluate overall market conditions as frame organisational strategies as per accordance
to them in order to extract advancements in well defined manner (Beatley, 2014). . In context
with this, Speedboard Assembly Services manager take advantage of PESTLE analysis and
Porter's generic strategy with the help of which organisation can gain better advantages:
Porter’s Generic Strategies: With the help of these strategies organisation can effectively able
to gain competitive advancements in best effective manner. This mainly consist different types of
strategies which is defined below:
Cost leadership:
As per accordance with this strategy, Speedboard Assembly Services can take numerous
form of advantages by providing their services at cost effective manner in order to attract
customers as to gain attraction of large base of customers.
Differentiation:
According to this strategy, Speedboard Assembly Services is required to consider that
they offer their service in a unique manner as to influence customers interests towards them.
Focus:
This strategy is devised for particular customer segment (Mitchelmore and Rowley,
2013).. In addition with this it, further segregates into two factors that include, differentiation
focus and cost focus. In context with Speedboard Assembly Services, organization by
considering their strategy towards cost effective strategy can effectively focus their interest
towards providing their services in cost efficient manner. This will simultaneously help them to
increase their market scope and gain more advancements.
As per the basis of above mentioned strategies, it has been defined that cost leadership
will prove to be one of the most effective and best strategy for Speedboard Assembly Services as
with the help of this they can easily able to attract attention of large base of customers.
PESTLE Analysis:
Pestle analysis's is done for identifying the factors which directly effect external analysis
on the organization in both positive and negative aspects. In the context of, speedboard assembly
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services, manager has conducted PESTLE analysis for evaluating the threats of external
environment on business. The external factors of pestle analysis are stated below in detailed
manner.
Political: if political condition of UK changes, it might directly effect the business of
speed board assembly services, this may lead in rising of services which are offered by the
company. New taxation schemes introduced by government may change the policy of company
which will lead high price of product and services (Ziari, 2012).
Economical factors: It consist of different factors related with economy of any country
such as, inflation rate, foreign exchange rate, and gross domestic rate etc. As being a highly-
developed country, UK can help to grow the small enterprise, who are unique and innovative and
able to provide new offerings to there customers. As the end result, it will boost the growth of
speedboard assembly services.
Social: This include various trends of society such as population growth rate, lifestyle,
attitudes and cultural barriers. UK has millions of people who are socially active on social
media. This may provide various opportunities for speedboard to identify the new potential
customers.
Technological: technology provides the edge to company in order to gain advantage in
market. It includes innovations, automation, research and development in market, this factors
will help the speedboard to enter or not to enter in the industry (Lewis, 2013). By identify the
technology organization may able to save the company from spending huge amount of money
on new technology.
Environmental: This factor have become necessary because of increasing scarcity of
raw goods, carbon footprint which are set by governments. It is necessary for speedboard
assembly move towards carbon neutral policy to confront pollution. Other factor of environment
are weather, climate change etc. This has led to organization getting more involved in corporate
social responsibility.
Legal factors: It is important for every organisation to understand what is legal in
order to trade efficiently and effectively (MacLeod, 2013). Speedboard should avoid the
unethical practise, which will create wrong impression on the minds of customers.
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An assessment of the options for growth, applying Ansoff’s growth vector matrix with an
assessment of the risk of each option.
Ansoff growth matrix acts as an one of the most effective marketing tool which provide
direction in selecting right growth strategies in order to compete in the business. In the context of
Speedboard Assembly Services, manager can take advantage of Ansoff matrix as to find out the
best from of strategies with the help of which they can lead towards growth prospective in well
effective manner (Mahmoudi, P., and et. al., 2013).
Market penetration:
Organizations by taking advantage of strategies can effectively grow their business
services within existing market area as to further increase company market share. In context
with, Speedboard Assembly Services with the help of this strategy organization manager as to
increase overall sales performance of company that lead towards increase in their market share.
Product development:
As per accordance with this strategy, it is important for organization to provide their new
products and services within existing marketplace as to attract attention of large base of
customers (Schetke, Haase and Kötter, 2012). With the help of this strategy Speedboard
Assembly Services can effectively increase their marketing services. This will lead towards
increase in overall organization productivity and profitability.
Market development:
As per accordance with this, it is essential for business organization to grow their market
development area by launching organization new products and services within new market area.
In this regard, Speedboard Assembly Services is required to grow their business market area by
offering their services outside UK market as to increase their consumer range. With the help of
this organization can effectively able to increase their overall sales performance.
Diversification:
This strategy acts as an one of the most effective strategy for Speedboard Assembly
Services. As per according to this strategy it is essential of an organization to bring a complete
new product in marketplace. This will prove to be costly for small scale business enterprises. As
per the above mentioned growth strategies, it has further been evaluated that market penetration
strategies will prove to be best effective form of strategy. As with the help of this organization is
not required to invest more additional expenses. In addition with this, they only thing which is
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required by them to conduct is evaluation of new consumer base within existing marketplace.
For an example, Speedboard Assembly Services can find new consumer base in within UK by
making an approach from different technological companies. As company can make approach in
educational and health care sector as to effectively increase organization consumer base. With
the help of this organization can effectively able to increase their customer base. With the help of
this organization can effectively able to increase their sales performance which will lead towards
increase in profitability (Chapin, 2012).
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Potential sources of funding available to businesses and discuss benefits and drawbacks of each
source.
It is important for company to enhance their business at market place by making higher
profitability level (Schetke, Haase and Kötter, 2012). In this regards, Speedboard Assembly
Services is planning to expand their business at market place by offering better services to its
customers. For attaining the same, company needs to find appropriate ways of funding option
within the business organization. In this, there are various sources of funding are available for
the company to expand their business:
Bank loan: It is also an effective option of funding in which organisation take loan from
the bank in return of some interest of amount. Along with this, bank also takes some security that
help Speedboard Assembly Services in raising their fund. In this regard, the main benefit of this
option is that it includes nominal rate of interest. On the other side, it is time consuming as entire
procedures needs more time to be complete.
Angel investor: These are those who invest their fund in business organisation and takes
share and equity of the company in return (Denton, Forsyth and MacLennan, 2017). They have
good knowledge about the company which help them in improving the chances of attaining
success. With the help of Angel investor, company and easily take right decision and remain
profitable situation within the organisation. On the other side, some Angel investor are not in
favour company which negatively impact on the company image.
From both, bank loan is one of the effective source of funding for Speedboard Assembly
Services through which company raising their fund and also expand their business effectively.
Speedboard assembly services effectively provide the services in many sectors thus; there is a
requirement for funds in order to effectively stimulate their business operations. For this best
source of funding of company can be bank loan as with the help of this they can gather fund at
any conditions and offer their services on regular basis this may be time consuming process but
can prove to be very effective for company.
Exit or succession options for a small business explaining the benefits and drawbacks of each
option
In market place, every company wants to attain success in limited time frame so that they
make their brand image more competitive. In this context, they set their goals and objectives

related with growth and development in market. For attaining the same, company undertake and
assessment and evaluation as well to determine the ways or modification that help them in
improving their overall performance level. With the assistance of this, organization can easily
make their customers base strong and also attain their satisfaction level (Beatley, 2014). . This
will contribute in establishing competitive position in market place. Furthermore, it is also
important for company to implement the exit approach through which Speedboard Assembly
Services easily attain success at market place. Along with this, company also responsible for
gaining knowledge about various type of succession and exit strategies. These can be understood
by following points
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Exit strategy:
In corporate world, every business organisations required to earn funds and profitability
to sustain in market place for longer period of time (Schetke, Haase and Kötter, 2012). When
company is not able to meet their goals and cost they they required to wide up their business and
exit from the market to save itself from any kind of losses and disadvantage as well. In this
context, there are some option that can be used by the company to exit their business from the
market place:
Liquidation: This type of strategy is related to the legal process in which owner of the
company sale all the assets for pay off debts before exiting their business. In this context, the
main aim of the business owner is to maintain their reputation and brand image after execution of
liquidation. By using this, Speedboard Assembly Services maintain their goodwill at market
place after winding up their operations. One of the main advantage of this strategy is to easily
come out of financial crisis and also improve goodwill at market. On the other side, owner of
company is also face difficulties while selling their assets which may negatively impact on the
organizational image.
Sale of business to stakeholders of family: This type of strategy is also consider as an
effective way for company to exit from market place (Mahmoudi, 2013). Under this, an existing
business in open in market. Along with this, organization carry out by manager, workers, family
and many other stakeholders. Mainly, it is most effective strategy for Speedboard Assembly
Services which will not negatively impact on the brand of the company in upcoming time. The
main benefit of using this strategy is that it take lesser time as owner is easily found in
organisation like employees, friends and family members who already have proper knowledge
about the operational activities. On the other side, if company sale to friends and family than it
reduce the valuable price of company.
Succession strategy:
Use of internet: In modern era, it is become more easy for company to expand their
business by using inter sites like social media and many more. By using this, Speedboard
Assembly Services promote their brand image at global market and also invite more and more
customers. The main benefit of using this strategy is to enhance productivity level of the
company. On the other side it create issues related with privacy of organisational information.
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Merger and acquisition: Under this strategy, company merge their business with another
organisation with the aim of expanding their operations. With the assistance of this, Speedboard
Assembly Services can improve their financial position at market place. The main advantage of
this option is that it help in raising capital of the company that put positive impact on
enhancement of its profitability. On the other side, it may create issues or complicities in front of
new business at workplace. .
A recommendation for the business.
Business plan is a formative document that includes business organisation operational as
well as financial objectives in a detailed manner along with the allocated budgets. With the help
of this business can lead towards success of growth. In simple terms it is a written document that
describes existing and future business object which is required to be accomplished by business
organisation (Mitchelmore and Rowley, 2013). Thus, it is essential for Speedboard Assembly
Services to formulate a business plan in which it is essential to include executive summary,
financial planning, products and services, budget marketing strategy and many other required
things. Business objective mainly serves two primary purpose that includes with the help of this
organisation can effectively able to accomplish their objectives in cohesive vision. It acts as a
route map with the help of which organisation can effectively analyse their marketing
manufacturing, sales designs in order to improve their business efficiency. With the help of this
strategic tool organisation can effectively able to specify the business idea which can lead them
towards achievement of short term and long term goals in a well defined manner. Business plan
include purpose Vision and Mission of organisation with the help of which organisation can
effectively able to review their assumptions and track their process in order to take advantage of
new development methods. With the help of this organisation can effectively able to perform
their roles and responsibilities that stimulates organisation productivity and profitability towards
growth perspectives. Further with the help of this organisation can grow their sustainable profit
and evaluate their business health with the help of which they can effectively able to summarise
their financial as well as operational objectives in existing and future manner.
Overview of the company: State Board assembly services situated in south east England
UK Organisation was established in the year 1983 and offer their services in Electrical and
electric manufacturing industry. Company provide number of services in communication and
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broadcast, Industrial and instrumentation, Aerospace and defence and more with the help of their
best quality of services company effectively serve their customers with best this lead them
towards increasing customers loyalty towards company and further increased their growth
prospectus (Schetke, Haase and Kötter, 2012). Along with this with the help of numerous
strategy and strategic Alliance measures company is looking towards serve more number of
customers in order to highly increased organisation revenue rates.
Products and services of company: Company effectively provide the services in in many
industrial segments that include communication and broadcast medical Industrial and
instrumental Aerospace and defence transport and more. With the help of their services company
established their position in a markets place and further take measure of strategies in order to
increase the service areas with the help of their products and services. Company effectively offer
immense level of satisfaction to their customers that stimulate organisation towards more growth
prospectors.
Mission and vision: Speedboard assembly services provide their services in best
effective manner with a mission statement which is to effectively influence customer interest
towards company by providing them best quality of services .With the help of this organisation is
tend towards gaining maximum revenue. Vision statement of organisation is to effectively offer
best quality services so that increase growth opportunities of company. Further organisation is
looking towards to create more number of clients in order to provide the services at large stage.
With the help of mission and vision statement organisation stimulates Their employees towards
effective achievement of company main course with the help of which further development of
organisations stimulates in best effective manner.
Situational market analysis: In this it is essential for Speedboard Assembly Services
manager to effectively evaluate market and other situational analysis as to improve business
strategic edge (Barbour and Deakin, 2012). In addition with this it further stimulate organisation
towards best effective growth aspects and lead organisation towards more opportunities.
Strengths Opportunities
 Speedboard Assembly Services owes
strong relationship with its customers
 This business enterprise can expand its
business by introducing their services
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that id developed with their effective
marketing services that have been
developed in the past.
 Maximum number of marketing
services of this company is based on
advance technology that helps those
marketing products and services of
clients with maximum number of
customers (Beatley, 2014).
in other countries too (Denton, Forsyth
and MacLennan, 2017).
 Speedboard Assembly Services can
also increase its number of clients by
approaching other fields of industry
such as schools, hospitals, colleges etc.
Formulation of budget: After completion of situation analysis, another step of business
plan is to formulate an effective budget for all activities. In context of Speedboard Assembly
Services , estimated budget for this company are stated as below:
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On the basis of above represented cash flow statement, it is depicted that Speedboard
Assembly Services is paying taxes every year and its cash in hand value for all three years that is
2015, 2016 and 2017 are $102203, $200354, $238503 respectively. On the other hand, overall
income of the company was around $72001.
Identification of targeted market: The targeted market for this company is health care
sector and educational institution.
Allocation of resources: Resources will be allocated to each and every department
according to their requirement.
Implementation of plan: The overall business plan will be implemented in the company
after discussing all steps with its key persons and higher management. This discussion will help
out modifying the plan according to the requirements (Chapin, 2012).
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CONCLUSION
From the above mentioned report it has been concluded that planning is one of the
important aspect of business organization through which company can minimise the chances of
arising issues. This will help them in growing the business growth and performance as well. In
context of small business enterprises, it is crucial to analyse the market trends and environment
to evaluate the favourable condition that support them in establishing their competitive image at
market place. Along with, it also help in determine the threat for the company that exist in
market and business environment. Furthermore, Ansoff matrix is also an effective growth
strategy that used by the company to maximize the chances of accomplishing competitive
growth. Apart from this, bank loans is also consider as an effective sources of funding used by
small business organizations at the time of expanding business and increasing capital of the
company as well.
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REFERENCES
Books and Journals
Barbour, E. and Deakin, E. A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Chapin, T. S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1). pp.5-15.
Denton, G., Forsyth, M. and MacLennan, M., 2017. Economic planning and policies in Britain,
France and Germany. Routledge.
Eddleston, K. A., and et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Galland, D., 2012. Is regional planning dead or just coping? The transformation of a state
sociospatial project into growth-oriented strategies. Environment and Planning C:
Government and Policy. 30(3). pp.536-552.
Grover, B. E., Bokalo, M. and Greenway, K. J., 2014. White spruce understory protection: from
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Hollenbeck, J. R., Noe, R. A. and Gerhart, B. A., 2018. Human resource management: Gaining
a competitive advantage. McGraw-Hill Education.
Levy, J. M., 2016. Contemporary urban planning. Taylor & Francis.
Lewis, W. A., 2013. Theory of economic growth. Routledge.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mahmoudi, P., and et. al., 2013. Space matters: the importance of amenity in planning
metropolitan growth. Australian Journal of Agricultural and Resource Economics.
57(1). pp.38-59.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Pred, A., 2017. City-systems in advanced economies: past growth, present processes and future
development options. Routledge.
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
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Ziari, I., and et. al., 2012. Integrated distribution systems planning to improve reliability under
load growth. IEEE Transactions on power delivery. 27(2). pp.757-765.
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