Planning for growth INTRODUCTION

Planning for growth INTRODUCTION 1 TASK 11 P1 Evaluation of key undertakings for measuring the growth opportunities with justificaton1 P2 Analyse the opportunities for development and growth with applying vector and Ansoff's growth matrix 4 TASK 2 5 P3 Sources of funding acquirable to enterprise and drawbacks of each source 5 TASK 3 6 P4 Business plans for development and growth with adequate objective and scaling 6 TASK 48 P5 Effective succession for enhancement fo business growth

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluation of key undertakings for measuring the growth opportunities with justificaton1
P2 Analyse the opportunities for development and growth with applying vector and Ansoff's
growth matrix.........................................................................................................................4
TASK 2...........................................................................................................................................5
P3 Sources of funding acquirable to enterprise and drawbacks of each source.....................5
TASK 3...........................................................................................................................................6
P4 Business plans for development and growth with adequate objective and scaling...........6
TASK 4 ...........................................................................................................................................8
P5 Effective succession for enhancement fo business growth and drawbacks......................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
An effective planning is essential for a business to succeed in the market. It is very
important for a business to formulate a plan which determines the manner through which goals
and targets would be achieved. An organization's growth depends on the focused area where a
business needs to improve for the future growth by analysing the current state. The report is
based on Rebellion Developments which was incorporated in 1992 year by Jason Kingsley and
Chris Kingsley. Its headquarter is situated in Oxford, England. This organisation is known to
develop video games and comics and books for entertainment and it is renowned for Alien vs.
Predator series and Sniper Elite series. This report comprises of key consideration to evaluate
business opportunities, funding sources, business plan, and exit options of small business.
(Allmendinger and Haughton, 2012).
TASK 1
P1 Evaluation of key undertakings for measuring the growth opportunities with justificaton
There are various growth opportunities for the small and medium enterprise but essential
to plan for them in advance. Because planning is the initial process to begin a firm and take to
the peak with the strategies that support to attain the goals and objectives. An effective planning
is the backbone of growth that leads to attain the competitive advantages which maximizes the
profit of company. Rebellion Developments is a video game developer which is expanding its
business across Oxford with a new gaming sensation. In order to attain the business growth there
are the foundation should be strong with the following aspects which develops competitive
advantage in the market -
Resources – The company should have enough resources that can fulfil the target
requirements within time. For an example, to develop a video game there is a need of skilled
programmer, animator and computer systems with all required software and the most prominent
funds. The funds can are base to begin a new project and maintain the proceeding needs and all
kinds of requirement until the finance will not be available the firm may not be able to hire the
programmers who are the major workforce to accomplish the objectives (Berger and Berger,
2011).
Capabilities and core competences – Rebellion Developments needed to enhance its
capabilities such as funds which are required to enhances its operations. There is also a necessity
of impeccable programmer to code the games and animators who gives an attractive characters
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ad elements of the game along with the systems and other machinery. Because if one would
stay at a place then it will hard for a company to grow at the desired level. So it is essential to
Capabilities and core competences – Rebellion Developments needed to enhance its
capabilities such as funds which are required to enhances its operations. There is also a necessity
of impeccable programmer to code the games and animators who gives an attractive characters
ad elements of the game along with the systems and other machinery. Because if one would
stay at a place then it will hard for a company to grow at the desired level. So it is essential to
push the abilities if the company wanted to reach on the expected level. To analyse its strength
and weaknesses it needs to identify rivals in market. It will give a specific view to where the
improvements are required.
Porter Generic Strategy
Porter's generic strategy is used to identify the scope in competitive market to determine
the action plan to expand the business. With the help of this model Rebellion Developments can
get the direction to move forward in order to meet the goals and objectives. Michal Porter
developed this model to achieve the competitive advantage in market.
Cost leadership : Cost leadership is focused on gaining the superior profit by keeping
the low price of product. Rebellion Developments can sustain at lowest price of the product in a
broad marketplace because keeping the lowest price of the product bring the highest profit to the
firm. The company can reduce can attain the low cost price by research which will define that the
cost strategy of its competitors. This is concentrated on the cost reduction to target the broad
market and gains the competitive market as the customers are most attracted towards the prices.
Differentiation strategy : As its name indicates that differentiate the product from the
rivals. The product should have some unique attributes that are valued by the customers.
Because the customers expects that product should not only be different but also better than
rivals and therefore, the customer would be able to pay premium price. Customers can
differentiate the video game from others in terms of its animation , story telling, planned stages,
features, wining criteria and functions. In order to make a video game not just perfect but much
better than its rivals it requires extensive research, skilled programming and for promotion there
is a need of strong marketing. This will be helpful to achieve success in broad market area.
Focus strategy : The focus strategy is focused on narrow segment of the target
marketplace. In this constrictive division the firm pins on to achieve one of strategies that is
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either the Rebellion Developments can achieve cost advantage or differentiation. It is completely
focused on the groups to provide them products that can make the satisfy with cost or
differentiation. As it has core focus on the groups of people which offers them a high degree of
contentment this makes the customers loyal towards he firm. The major advantage of the focus
strategy is that it has small area to focus with a low volumes and therefore the customers and
suppliers has less bargaining power. If Rebellion Developments would pursue this strategy then
it may be possible that the firm can pass high costs to the customers where substitutes are are
exist. For an example, if it provides a game which is not available by any other company then the
gamers needs to purchase the product because there is no substitute of that game.
This the key factors which can be helpful to attain the growth through expansion of a
business in across the country.
PESTEL analysis
PESTEL analysis refers to external environment which are not directly related with
Rebellion Developments but can impact on processes of the business while expansion. This
includes the political, economic, social, environmental and legal factors. The PESTEL analysis
can be define as -
Political – The political factors are the rules and laws which are defined by the
government. It consists of tax and laws which may support to the expansion or restrict a firm to
enter in the market. For an instance, Rebellion Developments needs to take the permission of the
government before launching a game in another country because it can affect on the country
economic situation like increase the specific device use for a particular game that can increase
the country growth due to some tax rate (Gleeson, Dodson and Spiller, 2012).
Economic factor -Country economy can made huge impact on the business because if
there is a high per capita income then the people will be able to enhance the purchases but in
contrast if there is low per capita income than the people has less purchasing power. That's why
the people will not be able to purchase the gaming devices and its subscription.
Social factor – The social factors are those which are depends on the pubic perceptions
and their point of views. For this video game the people will be aware about the game as this
may not affect on their children's mind. The game should not provoke them to commit
something wrong and this kind negative views made huge impact on product.
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Technological factor – Technological factors are those which enhances the accessibility
of the product. As it a gaming product then the Rebellion Developments should make assures
that is it is available for free over the internet. So that the people can easily download it on their
device then they can access it any point of time.
Environmental factor – People are aware about their environment that is why they seeks
for the company which does not harm the environment. The video game is available on internet
that transmits the rays to transfer the data but the firm should pay attention that in anyway it will
not harm the environment (Glock, Jaber and Zolfaghari, 2012).
Legal factors – The legal factors are those which establishes the rules to conduct a
business in proper manner. The company is abide to follow the rules otherwise it need to pay the
fine for it. For illustration, if it harms someone intellectual property rights then it is libel to get
punished.
These all are key considerations which are required to grow a business and all of these
may lead to growth of the company if the planning will be prepared with focus.
P2 Analyse the opportunities for development and growth with applying vector and Ansoff's
growth matrix
The Ansoff's growth is the most opulent tool strategy tool for help to determine a growth
strategy for Rebellion Developments. It displays four major options for growth with existing and
new products in the present and future expected market. It highlights the risks that can be
exposed by the particular growth strategy when a business moves from one state to another. The
strategies includes the following growth opportunities -
Market penetration – The market penetration refers to selling the existing products to
the present customers. In order to perform this Rebellion Developments needs to increase the
customer loyalty towards its products and by doing this they may achieve growth in customer
values for the lifetime. The company can improve the order process to develop the gaming
applications, easy reach to the customers, extend the working hour or through adjustments that
may amend the long term appeal of the games (Goodfellow, 2013).
Market development – Market development refers to attract the new customer towards
an existing product in the new geographical area or demographic region. For an instance, the
Rebellion Developments has an existing game which was developed for kids therefore, the
company should focus on kids as they are the major source of their profit and increasing demand.
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Kids video game can capture a huge attention in the other country and the firm can go on hike
with raising demand.
Product development – The Product development can be define as innovating a new
product for the current customers. Rebellion Developments can launch a video game for all the
aged people because now it is not focusing on one core segment. It will enhance its market range
and the product can be improved according the requirement and feedbacks (Hollenbeck, Noe and
Gerhart, 2018).
Diversification – It is considered as highest risk taking strategy because it puts effort to
sell the new products in the new market. Rebellion Developments should take a close look at its
available resources, skills and infrastructure in order to start a business across the boundaries.
Because a company should have a support that aid to increase the level of business such as
skilled programmers and other channels.
These are the four strategies of Ansoff's matrix that aid to seek for opportunities of
growth of Rebellion Developments. These strategies are helpful when a business wanted to
expand the business across the borders (Lewis, 2013).
TASK 2
P3 Sources of funding acquirable to enterprise and drawbacks of each source
Funds are the prime source to start a business to run its activities without any interruption
. At beginning stage of a business these funds are used as capital investment in order to give a
kick start to the company. Rebellion Developments is already existing firm but to expand its
business it also needs funds for prior operations. There are various sources of funding that are
mentioned below -
Angel investors
Angel investors are those who provides funds to the business against the equity position
in the company. It offers a finance for such small business which do not have sufficient cash
flow with which they can secure the loans from financial institutions.
Advantages : One of the big advantage of financing is that it is less risky than debt
financing. It does not need to pay off in the reverse condition such as the business failure.
Disadvantage : The disadvantage is that it is losses all the control as being a part of
ownership. As they have the right in business then they can participate in firm's activities and
receives a profit portion after selling the business (Madlener and Sunak, 2011).
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Bank loans
Bank loans are the most frequently source of finance as there are various kinds of finance
options. Bank loans are easily available due with a certain interest rates which can be credited in
the future. These interest rate may vary according to the loan size and income of a company.
These bank loans are approved for a certain period of time and after that time it has enterprise
owner need to pay off the bank.
Advantages : The core advantage of this is flexible that's why the customer do not worry
about to pay the instalments. They can pay instalments through overdraft, online transfer and so
on. Only thing which should consider is that it need to pay EMI on time. Secondly, tac benefit is
also there as the interest rate is deductible in taxation.
Disadvantage : There is a strict requirement of some assets to approve the loan
application. The borrower should pay back on time otherwise their assets can be seized even in
the late payments (Moseley, 2013).
Government and European grants
The European Unions renders funding and grants for a all kinds of projects. Funding
process is managed by strict rules to ensure that in what monetary will be going to utilise. This
assures that the funds investment are transparent and accountable.
Advantages : Grant money is not taxable and it is not counted as loan that's why the
borrower do not worry about the bad credit score.
Disadvantage : There are several competitors who are leading to get the grant. There are
various competitors who are looking for approved grant. It requires to submit the detailed
documentation about the business and its operations.
TASK 3
P4 Business plans for development and growth with adequate objective and scaling
It is essential to develop a business plan because it depicts that what a firm should do to
achieve its predetermine goals and objectives. Rebellion Developments formulated a business
which underpins all the strategies and that needed to be implement in the new emerging market
area with all of its functions and operations. The business plan of company plays vital role to
measure the growth in an effective manner. It covers budget, strategies, expected goals which are
surely need to attain by performing the operations. Rebellion Developments prepares a business
plan that in a such a way:
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Vision : Its vision is to be a one of the top gaming company in the next few years.
Mission : Rebellion Developments desires to offer a an extinguishing video games,
comic and books for everyone that can entertain the people.
Objective : The company came in inception to develop a video games to entertain and
making profit from the selling a large range of video games (Sarver, 2015).
Finance : Finance is the most crucial part of business it make a smooth flow of
operations in an effective manner. Therefore, the company needs to raise the fund for
organizational activities. There are various activities which are required to perform by the
company for its proper function such as tanning, software,testing and other expenses.
Marketing budget
Particular 31/12/15 31/12/16 31/12/17
Implementing
technology cost
20000
Promotional expense 8000 15000 5000
Advertisement
expense
8000 3000 5500
Catalogues 8000 2000 2100
Training 5000 2500 4500
Total cost 31000 22500 18000
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This is an over all estimated budget of Rebellion Development which encounters with
expenses which are needed while expansion.
According to the above cash flow it be analyse that Rebellion Developments has
sufficient money which can used to clear the debts and liabilities.
TASK 4
P5 Effective succession for enhancement fo business growth and drawbacks
When a Rebellion Developments establishes it forms a some legal rules to run the
organization successfully. Similar to that it also has a exit plans which is necessary to develop
because the intense shut down of business can leave a negative impact in the marketplace. There
are some fundamental exit and succession options which has benefits and demerits and that are
as follows -
Winding up – Winding is an option to exit the business through sell out all the assets and
resources and pay back to the liabilities. After clearing the debtors the remaining amount can be
distributed to the equity holders of the company (Wey, 2015).
Advantages: Converting the assets in liquidity the borrower can be free from all legal
pressure. It also removes the responsibility of the business owner.
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Disadvantage : The company losses the support of their skilled workforce. It needs to
follow the legal procedure which is time consuming.
Merger and acquisition – Mergers refers to establish a contract between two similar size
of organization this gives strength to the company to pursue the actions and operations. Whereas,
acquisition reefers to taking over a small firm and form a new identity in the market.
Advantages : The core advantage of merger and acquisition is captures a hug market
share by holding the company. It works in synergy to attain the benefit of growing economy.
Disadvantage : In merger the firm needs to take prior approval and share the benefits with
others (Williamson and Parolin, 2013).
There are several options which can be adopt to exit and succession of the business and
these options specify that everything should be done in a legal manner to remain the business
goodwill same.
CONCLUSION
The above report is about planning and growth that emphasizes on growth of business as
every organization wanted to grow with time and in order to attain the aims there is requirement
of an effectual planning which is a key of growth throughout the life of a firm. When a business
is running successfully then it needs to take a review for its plan that can aid to support its
performance on regularly basis. This report includes key considerations with porter's strategic
model, pestle. Moreover it also covers Ansoff's matrix which is essential to focus on growth
opportunities, funding source, business plan and exit and succession options for small
businesses.
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