Planning For Growth

This document provides insights on planning for growth in SMEs, including key considerations, evaluation of growth opportunities, options for growth, potential sources of funding, designing a business plan, and assessment of exit & succession options. The case study focuses on Knights and Dukes, a real estate agency in London.

Planning For Growth

Table of Contents
INTRODUCTION .........................................................................................................................3
TASK 1...........................................................................................................................................3
Key considerations for growth within SME's............................................................................3
Evaluation of the opportunities for advantage within an organisational growth applying
Ansoff’s growth vector matrix...................................................................................................6
Options for growth.....................................................................................................................6
Options and pathways for growth..............................................................................................7
TASK 2...........................................................................................................................................7
Assessment of the potential sources of funding available to businesses ..................................7
TASK 3...........................................................................................................................................9
Designing a business plan for growth........................................................................................9
TASK 4.........................................................................................................................................12
Assessment of Exit & Succession Options for Small Business...............................................12
CONCLUSION ...........................................................................................................................14
REFERENCES.............................................................................................................................15

INTRODUCTION
Growth planning is defined as the intensity of strategic plan of business which is helpful
in tracking business expansion and growth so that to meet their ultimate objective of earning
high profits and sustainability. This is helpful for the company in prioritising their resources on
the basis of requirements which h is helpful for the business in attaining competitive advantage
and acquire high customers (Biddle and Taylor, 2018) The growth planning is vital as it uses
strategic approaches in which assistance is provided to the business for enhancing sales and
utilisation of resources in proper manner. The major objective of business is to earn profit and
establish proper working so that high sustainability can be achieved. In order to understand
these concepts which are associated with planning for growth, Knights and Dukes is taken
which is a real estate agency in London. This report is emphasising on various concepts such as
growth opportunities, business plan and success or exit options. Similarly various pathways are
associated with this report those can help the business in acquiring their future options through
which growth options can be ascertained.
TASK 1
Key considerations for growth within SME's
For a business organisation there are various dimensions which are to be undertaken by
business in which growth options can be inculcated and sustainability can be attained as well
(Baschat, 2018). On the other side it is required by Knights and Dukes that they analyse external
environment in prominent manner so that growth opportunities can be inhaled by them. External
analysis of Knights and Dukes is elaborated as under:
PESTLE analysis
PESTLE analysis is a framework which is used to examine external factors of the
business which are having high impact over business. For Knights and Dukes this framework is
elaborated as under:
Political factors: These factors are defined as political stability of the country through
which governmental intervention is acknowledged by businesses. In UK political instability is
seen due to implications of Brexit and this is impacting UK businesses in negative manner.
Brexit is associated with separation of UK form European union and this is creating high
complexity in business running in UK. In the background of Knights and Dukes the company is

operating their business in providing real estate services and this factor is highly impacting their
business as the due to uncertainty about Brexit decision the company is not able to manage their
company in optimum manner.
Economic factors: These factors are related with economic condition of country such as
inflation rate, employment rate, foreign exchange are and many more. UK is a stable country
and this factor is positivity impacting their businesses (Cleberg, 2019). UK is having high
employment ratio due to which per capita income is average and this is having positive
implications on business of Knights and Dukes. Being a real estate agency huge clientele is
prepared by the company due to high per capita income. Knights and Dukes is benefited from
this factor as they can place their services within marketplace in prominent manner which lead
them to earn high profit and prominence as well.
Social factor: This factor is related with taste and preferences of customer, as the
customers are driver for any business and any new offerings are inculcated in order to meet
wants and demands of customers. In UK customer are emerged with their choices and they are
prone to use new feature or offerings. In order to upkeep this factor Knights and Dukes is
updating their offerings so that to meet customer wants and demands of priority basis. This is
giving the company additional advantage which is providing them opportunities to sustain and
acquire growth opportunities as well.
Technological factor: This aspect is associated with usage of technological
advancement in business so that to remain technological update and boost up sales and
profitability as well. Population of UK are prone to use new technology and this provides
additional edge to Knights and Dukes in updating their technology so that they can acquire
more customer and enhance their customer base. This factor is essential for the company as with
the help of using new technology in business they can deal with their rivals due to which
competitive edge can be attained by them.
Legal factor: This factor is related with applicability of various laws and legal
obligations which are required to be undertaken in the business so that to avoid any legal
complications and interruptions which may provide negative effect to the business. In UK
government is very rigid in law applicability such as employment act, safety act. For Knights
and Dukes this factor is having high implications as they enforce employment act and safety

precautions at construction site which enhances efficacy of their employees and helps the
company to attain its high efficiency.
Environment factors: This factor is associated with protection given to environment by
used business processes. UK is very strict in laws which are related with environment and this is
impacting business of Knights and Dukes (Gurcaylilar-Yenidogan and Aksoy, 2018)). The
company is using sustainable practices in which they are minimising harm to the environment.
This is providing additional edge of growth and development to them.
Porter generic strategy
Porter generic strategy is the framework which is used in order to understand growth
opportunities which can be used by Knights and Dukes Homes in order to expand their
business. These strategies are elaborated as under:
 Cost Leadership: Within this strategy businesses are required to minimise their cost so
that they can lead market and sustain for long period. For Knights and Dukes Homes this
strategy may lead them to acquire prominent position at marketplace and by reducing
prices of their offerings additional market edge can be attained by them.
 Differentiation: Within this strategy businesses keep their focus on differentiating their
offerings so that they become identifiable in marketplace. In the background of Knights
and Dukes Homes they are making their services differentiated in market by which
additional edge can be received in comparison to rivals.
 Cost Focus: Within this strategy on a specific segment businesses are focused in order
to reduce prices (Omsa, Abdullah and Jamali, 2017). In the context of Knights and
Dukes Homes they are required to recognise those market segment in which thy can
reduce prices in order to attract large audience.
 Differentiation Focus: This strategy is consist of preparing their offerings differentiated
from their rivals within a specific market segment. For Knights and Dukes Homes this is
essential that they plan their market differentiated focus so that to attain growth.
For Knights and Dukes Homes the most profitable strategy would be cost leadership
strategy. As in this they can ensure their customer to decrease prices of their offerings so that to
enhance market capture. By acquiring high market share their competitors can be tackled in
significant manner and growth opportunities can be considered by them without facing
prominent problem.

Evaluation of the opportunities for advantage within an organisational growth applying
Ansoff’s growth vector matrix
Ansoff matrix is a strategic tool which is utilised by the managerial department in order
to recognise growth strategy for the business so that high level growth can be achieved by the
business. Numerous strategies within this matrix are elaborated as under:
Market Development: Within this strategy new market is being targeted by the
business in order to render business offerings to them. With the help of this manager of Knights
and Dukes Homes can acquire new customers from various market segments and this is going
to help them to unleash various market segments.
Diversification: In this business offerings are diverse by the company in an entirely new
market by introducing way different offerings. In the context of Knights and Dukes Homes as
by using this expansion strategy high amount or risk can be attained by them on the other side
this risk may lead them to earn immense profits as well (Rastogi, N.I.T.A.N.K. and Trivedi,
2016).
Market Penetration: Within this strategy existing products are offered within existing
market in order to enhance customer and sales as well. For Knights and Dukes Homes this
strategy can be used by them for the major purpose of building success and to expand their
market. This is helpful for them in making more profits within existing market along with
expanding their market.
Product Development: Within this strategy businesses are required to put their focus on
developing their product within marketplace. The manager of Knights and Dukes Homes may
use innovative methods in order to develop their products.
For Knights and Dukes Homes the most advantageous strategy is market development in
which they can expand their market and acquire nee customers so that high growth
opportunities can be inhaled by them. This expansion strategy is helping the company in order
to make new customers from various market segment so that new market can be unleashed by
them.
Options for growth
Various options are there which can be used by Knights and Dukes Homes in order to
inhale growth. Using PESTLE framework external market competencies can be analysed by
Knights and Dukes Homes and corrective measures can be taken in timely basis. Using Porter's

generic strategy accurate strategy is recognised by the company so as to acquire growth options.
Similarly with the help of Ansoff growth vector matrix strategic advantages can be received by
Knights and Dukes Homes by evaluating best option for their expansion.
Options and pathways for growth
Knights and Dukes Homes is having various methods and pathway to attain success and
growth within marketplace. Such as by adopting market development strategy Knights and
Dukes Homes can cater their services into new market segments and their profits can be
intensified as well. On the other hand with the help of this strategy Knights and Dukes Homes is
able to provide sustainability to their business and this is helping them in maintaining market
image as well.
TASK 2
Assessment of the potential sources of funding available to businesses
Sufficient funds are required by companies when they are managing and starting their
business. Lack of funding is the major problem which is faced by the business which lead them
to face complexities in growth expansion (Amornkitvikai and Harvie, 2018). When the business
is having ample amount of funding then this lead to smooth functioning of actions. For Knights
and Dukes Homes majorly form two types funds can be raised which are elaborated as under:
Internal Sources: These type of sources are raised within organisation itself. Knights
and Dukes Homes may raise funds by selling their assets, selling stocks, using retained earnings
and collecting debts for their debtors. By using these methods fund can be arranged by the
company and smooth functions can be exhibited as well.
External Sources: Every business is having retained assets and profits and in many
situation these are not enough so the company feels need of arranging funds for outer resources
in order to render smooth working to the business. With the help of external sources funds can
be arranged by Knights and Dukes Homes from outer sources. Some of the sources are
elaborated as under:
Bank Loan: In the current bank loan is considered as one of the most trusted way in which
funds can be arranged by business in order to satisfy needs of funds in prominent manner. Bank
provides short term or long term finances to their customer which is landed for a specific time
period. In the reference of Knights and Dukes Homes they can take bank loan for attaining

requirement of funds in their function by which amount can be landed from bank in lieu of
repaying this along with pre decided interest rate. Bank loan is having various advantages and
disadvantages which are elaborated a under:
Advantages: Repayment of bank loan contains to repay the same with instalments
which is predefined by the bank and in the loan agreement. These are paid within monthly or
quarterly basis so this is easier for Knights and Dukes Homes to arrange funds to repay loan.
Disadvantages: In some cases due to high interest rate complexity to repay increases.
On the other hand for obtaining bank loan companies are required to put their asset on mortgage
which is risky for them.
Overdraft: When short term funds are required by company then overdraft facility can be used
by businesses by their respective banks (Croce Guerini and Ughetto, 2018). Overdraft facility
means the businesses can use amount exceeding their bank balance by which smooth
functioning can be executed. The advantages and disadvantages pertained to this aspect is
elaborated as under:
Advantages: These are associated with low interest rate as comparison to bank. This is
highly useful in those circumstances in which business is requisite to maintain incoming and
outgoing of funds.
Disadvantages: Similarly when money is being used for longer time frame then interest
can be proven as burden for them which could create complexities in repayment.
Crowdfunding: This is the most effective way to gather funds form different people by taking
small amount from each in order to collect large amount. In the current era this concept is
growing at a rapid speed. This is divided into two types: Equity based and reward based. In
equity based equity is to be given by the company on the other side in rewards based system
perks are given to all the investors.
Advantages: This consumes less time in order to raise funds as possibility is high that
those who are investing will convert into loyal customers. By this public interest can also b e
enumerated which may lead to perform appropriate market research.
Disadvantages: This is a complex procedure and in order to gather funds company is
required to convince lot of investors so that the project can be initiated. Risk of failure is highly
associated with this and failure may wholly deteriorate goodwill of the company in the
marketplace.

Angel Financing: This is associated with those personnels which are having additional
cash that is spare and they are willing to earn money on the same from non conventional
methods. These funds are invested within start-ups as they are providing high return if
successful. Equity is given by the company in lieu of their investment which gives them amount
of ownership as well.
Advantages: One of the most vital advantage of this source is that angel investor are
having option to receive returns for long duration of time and this gives the opportunities for the
company to use those funds for long time (uppuswamy and Bayus, 2017). On the other hand if
venture is a failure then these funds are not demanded back by the investors. Angel investors are
familiar with business methods and they gives advices to the business which is helpful for the
company to attain success.
Disadvantages: One of the most significant drawback associated with this aspect is that
angel investors are sharing profits with the company which decreases overall profitability of
company. Business control gets divided as angel investors are treated as owners which leads to
high interventions in business activities. Angle financing dissolves power in the business and
due to which small day to day decisions take too long time to get passed.
For Knights and Dukes Homes as they requires high amount of funds in order to run
their business and these funds are required by them for running their business activities in
smooth manner. As if company is requiring funds for short term period then the most
advantageous method of obtaining funds for Knights and Dukes Homes is overdraft facility.
On the other hand for fulfilling long term money needs bank loan is the most effective fund
raise method. These two options are helpful for the company in raising funds at appropriate
manner by meeting all their money needs in significant manner.
TASK 3
Designing a business plan for growth
Business plan is a written document which describes nature of working and culture of
the business and it is associated with marketing, financial and strategy to boost sales in
prominent manner. On the other hand this includes related projection regarding the business and
losses and profits earned by the company. This involves correct path by which goals of the
business can be attained within given time frame. It includes al the plans in detailed manner so

that continuous improvement can be enumerated and processes can be monitored in more
effective way in order to attain success. This is a essential aspect for Knights and Dukes Homes
in order to define vision, mission and objectives as well (Watson, McGowan and Cunningham,
2018). This plan is utilised by Knights and Dukes Homes in order to implement projected
strategies in significant manner so that inner standards can be improvised promptly. For Knights
and Dukes Homes business plan is prepared in order to provide clarity of objectives to their
staff so that goals can be attained within high level of flexibility and clarity.
Organisational background: Knights and Dukes Homes is a well known business in
UK that are dealing in rendering real estate services within marketplace. They are using
advanced technology in their business so as to get high end platform of innovation and to
enhance experience of customer as well. The company is planning to open up two new branches
in London and their senior management team is business plan for the same.
 Vision: Knights and Dukes Homes is having major vision to expand their business at
global periphery so that to empower their business. This has maintained their status quo
by which unlimited opportunities are inhaled by the company in order to provide
positivity in their business processes.
 Mission: The company is moving towards to make their business functions high flexible
so that changes can be inculcated in significant manner. On the other hand Knights and
Dukes Homes is having mission to enhance their customer catering ratio and sales so as
to intensify their profits.
 Strategical objectives: Knights and Dukes Homes is having objective to enhance their
profitability by 20% within 3 years. In order to attain the same the company is
competing with SMART objectives in order to maintain clarity and prominence so as to
operate business functions in optimal manner.
 Financial information: This is associated with capabilities such as procurement of
funds and for this Knights and Dukes Homes is collecting funds from external and
internal methods.

STP
 Segmenting: Within this manager of Knight and Duke Home is segmenting the market
on the basis of features and spending power of customers. Demographic segmentation is
used by the company.
 Targeting: In order to open up two new branches in London the company is targetting
on income, and habits of the people (Barrow, Barrow and Brown, 2018).
 Positioning: In this regard manager of Knight and Duke Home is taking help of social
media in order to attract and retain their customer.
For the major purpose to expand business of Knights and Dukes Homes they are
preparing a budget plan in which funds allocated to different operations are enlisted. This is
examined that by forecasting sales and profits in optimum manner probability of goal
attainability. Some of the major expense are advertisement, transportation, promotional
activities and many more, these are defined as under:
Total forecasted budget
As per the above budget analysis managerial personnel of Knights and Dukes Homes is
making relevant ideas in order to control their expenses and to expand their business in London.
Cash flow statement

with the help of examining above business case this is to be recommend that for Knights
and dukes Homes their cash flow is showing appropriate cash flow which enable them to
research market and needs of customer in prominent manner.
TASK 4
Assessment of Exit & Succession Options for Small Business
Exit Plan: It is necessary to have a pre planned exit plan since its inception because it
will help in evaluating the amount of money that an entrepreneur will get after exiting a
business. The exit strategy is required for every type of business whether it is a sole
proprietorship or any partnership firm (Sudrajat and Syarif, 2016). It will help the owners of the
business to analyse that how much return they will get after exiting. The major ways of making
an exit from market are discussed below with their merits & demerits.
Winding Up: Winding up of a business is also known as liquidation where the life of
the business comes to an end (Forsythe, 2019). Generally when a business becomes insolvent in
paying its due debts, the entrepreneur of the business go for a winding up but always this is not
the reason. Many times because of other reasons also the owner of the business opt for this
method to exit the market. The various advantages and disadvantages of this exit plan are:
Advantages: The major advantage is that all the debts will be cleared which will
diminish the burden upon the owner of the business which will lead to focus on new
opportunities. The funds remained(if any) after the liquidation process can be invested in a new
business.

Disadvantages: As business is having a separate legal entity then also sometimes the
owner of small business take loans on their personal guarantee. So after liquidation they have to
pay all these loans. Also the assets will be sold so there will be no possibility to use them in
future opportunities. The productive staff will also scatter and it will create a problem for owner
in the future if the similar activities are required.
Sell in Open Market: It is also one of the most popular way of exiting the market. This
ell can be done either to the individuals or any large company which are known as strategic
buyers. The merits & Demerits of this exit plan are:
Advantages: If the business is of such a nature which is having high demand in market,
it will lead to the high price of the business. It will also help the owner to overcome the
financial difficulties.
Disadvantages: Due to negotiations while selling the business it will consume so much
of time. Also there is a possibility that the owner of the business will get the low price than
expected.
Succession Planning: It means to develop such a strategy for the business so that it can
find the new leaders in the company for running that business (Kosterlitz and Lewis,2017).
Every owner of the business has to retire one day so choosing an appropriate succession plan
will help in smooth functioning of the business. The following are different plans for
succession:
Mergers: When two businesses accepts to merge their business in one new business, it
is known as the merger of businesses. By merging two or more businesses in a new one the
main objective is to expand the capabilities of the business. The various pros & cons of this are
following:
Advantages: It will increase the capital of the new business which will lead to the
financial stability of business. Also the business who are struggling for survival can get benefit
through this.
Disadvantages: There can be monopoly after the merger which will affect the prices.
Also there will be loss of jobs of the employees of both the businesses.

Acquisitions: Acquisition is purchasing of a business by an another business. In
acquisitions both the business will remain in the existence but the acquirer will act as the parent
company for the acquired business (Carr, 2018).
Advantages: It will lead in reduction of the production cost. Also the there will be a
broadening of the customers because the customers of the acquired business will also get
connected to parent business.
Disadvantages: There will be an increase in the debt load also the working culture of
both the companies can clash.
Critical evaluation : From the above discussion the most appropriate exit strategy for Knight
and Duke Home is winding up as this helps them in repaying their pending debts and reduces
burden from the company. This lead them to face new opportunities by which profits can be
earned by them in prominent manner by exploring new and emerging opportunities.
CONCLUSION
Form the above detailed report this can be concluded that in order to have growth
planning strategic activities are required to be carried out by businesses. Growth planning is
required by every company and these plans are to be made for each term of action. By framing
appropriate plan of growth objectives of the business can be achieved in prominent manner.
With the help of Ansoff matrix most appropriate expansion plan can be selected. By choosing
exit plans exit strategy can be selected by business in case of not earning proper profits.

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