Planning for growth of Pavestone UK limited with ansoff's growth matrix

[pic] Cost leadership: To be more competitive among the external market and the rivalries of the firm, there are requirements of having adequate policies and plans, which in turn will be useful and appropriate as per making suitable plans for operations(Gurcaylilar-Yenidogan and Aksoy, 2018). [pic] Cost leadership: To be more competitive among the external market and the rivalries of the firm, there are requirements of having adequate policies and plans, which in turn will be useful

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Key Elements for growth opportunities to Pavestone UK limited....................................1
P2 Ascertainment of growth opportunities by implicating Ansoff's growth matrix..............5
LO2..................................................................................................................................................8
P3 Determining the potential sources of funding for Pavestone UK limited with pros and cons
................................................................................................................................................8
LO3................................................................................................................................................10
P4 Identifying a business plan along with its financials.......................................................10
LO4................................................................................................................................................18
P5 Discussing exit strategies available to business along with advantages and disadvantages
..............................................................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Strategic plans and operational management of an entity seeks for suitable decision-
making, which improve the operational quality. Pavestone UK limited is approaching towards a
successive plan in relation with improving efficiency, productivity, market coverage as well as
improving the capital structure by attracting large numbers of investors.
This report will suggest satisfactory techniques to be implicated by professionals of
Pavestone UK limited in relation with improving the operational plans and policies. Suggesting a
suitable technique will be helpful in bringing the adequate control costs and develops a strong
capital structure.
LO 1
P1 Key Elements for growth opportunities to Pavestone UK limited
To develop organisational structure as well as operational framework is required to have
accurate decisions in relation with retaining satisfactory profitability on which professionals. An
internal audit is required as per analysing strengths and mechanism of business operations, which
will lead it to have appropriate revenue generation (Campbell, 2017). However, to analyse t
strengths and operational viabilities if Pavestone UK Limited, there will be use of various
techniques such as:
Porter's generic strategies:
As per ascertaining the operational structure as well as management of various
operations, there are various strategic techniques, which will approach towards funnelling
professionals in making adequate analysis over market and organisational strategies.
To be more competitive among the competitors stated in the market, there will be
requirements of appropriate strategies and plans which brings the effective challenges to them.
1

Illustration 1: Porter's generic strategies
Source: (Porter’s Generic Strategies, 2014)
Cost leadership: To be more competitive among the external market and the rivalries of
the firm, there are requirements of having adequate policies and plans, which in turn will be
useful and appropriate as per making suitable plans for operations (Gurcaylilar-Yenidogan and
Aksoy, 2018). Process over each products and services needed to be efficient for consumers as
well as challenging for competitors. It comprised with adequate execution and control expenses,
managing quality as well as analysing market competition.
Cost Focus: It ascertains that the business must have appropriate analysis over market
and internal operational scenario. A proper determination of all facts will be helpful in analysing
costs advantages and appropriate management of operations. Pavestone UK Limited generally,
deals concrete and stone manufacturing products which is required to have appropriate pricing
structure as well as professionals are required to be more price focused (Ahmed and Ahmed,
2018).
Differentiation: there is needed to have appropriate leadership strategies such as products
are needed to be unique, best in quality, appropriate branding as well as implication of suitable
promotional plans (Pahl, 2018). Thus, these are the unique features which are to be
acknowledged by the professionals of Pavestone UK Limited in context with creating an identity
in the market.
2

Differentiation Focus: Analysing buyer's needs and wants are the prime requirements
and wants of the professionals which will be adequate effective in terms of generating the
suitable amount of revenue in the market (Campbell, 2017). It can be said that there will be
requirements of appropriate revenue generation and plans for future developments in Pavestone
UK Limited.
PESTLE analysis of Pavestone UK Limited
PESTLE is an abbreviated form for political, economic, social, technological, legal and
environmental factors that may affect the organization (Demir, Wennberg and McKelvie, 2017).
It is used for Pavestone Company and its objectives are to identify how the external surroundings
affect the industry.
Following PESTLE factors of Pave Stone are as under-
Factors Description
1- Political Factors The political factors, which can impact the
Pavestone construction company, are regarding
taking the permission for documentation,
which are mandatory for various levels of
construction. For instance- change in tax or
duty, which may result in a change of the
revenue structure of the organization. The
government may inflict these rules on every
industry.
2- Economic Factors- Economic factors include the form of
economic function and the impact it has on the
working of the organization. An increase in
rate of inflation may affect the economy of set
price of the company. Economic factors
includes inflation rate, growth rate, foreign
exchange rate, patterns, etc.
3- Social Factors- Social factors include all the events that may
impact on market nearby the residential areas
3

where the construction is happening. This
includes change in environment such as
pollution, global warming, career altitudes,
norms cultural expectations etc.
4- Technological Factors- These are the factors which are considered in
innovation and latest technology, which can
affect the Pavestone working in the dynamic
scenario.
5- Legal Factors- There are certain laws, which may change the
external environment of company and also
there are a number of policies which the
company keeps for itself.
6- Environmental Factors – These are the factors, which includes an area
surroundings, atmosphere etc. it mostly
considers the business environment, it consists
but is not restricted to the weather, the climate,
the global changes in climate, the ground
conditions, environmental offset
Justification:
Ascertaining the opportunities which are being listed in the above listed analysis on
which it can be said that Pavestone UK Limited must implicate porter’s generic strategy which
will be applicable and adequate in relation with having profitable growth in the coming time.
Elements which are listed in the analysis such as cost focus, leadership, differentiation and
differentiation focus which will be helpful in uplifting the operational level of the business.
Professionals will have soothing way on which they could generate adequate information from
the market as per developing various strategies and planning for better development.
Growth strategies for Pavestone UK Limited:
4

Considering the operational framework of the Pavestone UK limited on which it can be
said that there is needed to have appropriate managements all the operations which will bring
profitable gains in the coming period. Consist of the management of various operations such as
analysing the cost requirements as well as determining the suitable sources of funds for
operations.
 Use of best technical devices which helps in bring promptness into work as well as
accuracy in designing the stone art or concrete.
 Implicating technical support will be effective in reducing the labour costs as firm will
have appropriate contribution margin per units.
 Making the proper records of transactions held in business during the period such as
income, expenses as well as various overhead costs.
 Making forecasting of accounts which will help in generating the suitable amount of
revenue.
 Improve the financial execution and governance which will be impressive and helpful as
per meeting goals.
P2 Ascertainment of growth opportunities by implicating Ansoff's growth matrix
In relation with creating identity in new market as well as generating the new consumers
there will be requirements of long term planning. Thus, such operational variations will be
required as per having control over all operational activities (Blyth, 2018). Implicating a suitable
technique will be appropriate and helpful for Pavestone UK Limited as per managing functions,
evaluating risks as well as suggesting the differentiated option for adequate development. By
considering the long-term growth and operational execution there will be use of an effective
growth strategy such as:
Ansoff's Growth vector matrix:
This is the growth strategy which was invented by Igor Ansoff in 1965 with a motive to
present structure of factors which are needed to be considered by the professionals in relation
with planning the growth opportunities for Pavestone UK Limited. It comprised with various
elements which will be executed by business personnel with the aim of improving efficiency,
profitability and liquidity of firm on long term basis (Dopfer,Potts and Pyka, 2017). To make
5

satisfactory improvements in the production as well as working efficiency of business there are
various strategies which are needed to be emphasised by business units.
Illustration 2: Ansoff's Growth vector matrix
Source :(The Ansoff Matrix. 2018)
Market Penetration: This element of the growth strategy is comprised with the concept
of making enhancement and improvements in the operational activities of firm. Managerial
professionals are approached towards making innovative changes in the previously existed
products with a motive of improving sales (Pallagst, Fleschurz and Said,2017). The improved
operational efficiency will be fruitful in leading the market share of Pavestone UK Limited. It
will be helpful in analysing the market trend and the current requirements of the business
professionals. Improving the product line and services offered by organisation which will be
suitable as per retaining the adequate amount of revenue. The unique range of products at
convenient costs will be attractive. Pavestone needed to design stone art with unique techniques
and structure which will be attractive to buyers.
6

Product development: These factors comprised with the strategy to make suitable
improvement in previously existed product line. Modification in products will be based on
consumer reviews, market strength and the current changes in the trend and policies of the
business. Growth of Pavestone UK Limited is only depends on bringing appropriate changes in
the production as well as development of various operational techniques (Demir, Wennberg and
McKelvie, 2017). Therefore, bringing innovative changes in products and services will be
appropriate in terms of retaining the previously existed employees as well as having risen in the
prices. Pavestone UK limited is basically, dealing in various concrete and stone manufacturing
products which are needed to be unique and satisfactory to consumers. Attaining their attention
will be helpful in making growth for products. Uniqueness in architecture will be very adequate
for developing identity in market. business must promote the products and services on the online
segmentation as well as on retails.
Market development: This strategy uses the techniques is that the existing product will
be introduced in the new markets. Thus, it can be said that there will be expansion of business
operation in a new environment. Pavestone UK Limited will have beneficial gains as if they
initiate the business and introduce them in a new marketc (Gurcaylilar-Yenidogan and Aksoy,
2018). It requires appropriate geographical study as well as determining the new market which
will be effective for the operations in new market. Implicating various market and promotional
techniques will be adequate in making favourable gains and operational profitability. Creating
identification in market will be appropriate in attracting the large numbers of consumers.
Diversification: Analysing the variation in the economic conditions. Cultural and
traditional variation will be appropriate in designing operational gaols of business. Pavestone UK
Limited is needed to have an appropriate survey and analysis over the market and consumer
which will be based on the motive of analysing their requirements (Ahmed and Ahmed, 2018).
The determination of own strength and weakness will be effective in relation with planning cost
structure, capital structure as well as operational structure of business.
Suggestions for suitable options:
To implicate a suitable strategy which will be helpful in rising the operational level of
entity on which product development will be most appropriate. it benefits in developing the
product in analysing the market requirement and designing the products according to it.
7

requirements for attracting large number of consumers on which analysing the wants and needs
will be supportive to business in developing and designing the products accordingly.
LO2
P3 Determining the potential sources of funding for Pavestone UK limited with pros and cons
To ascertain business requirements and making suitable changes in operations will be
effective as per meeting the targeted aims in right time (Pahl, 2018). For the successive
development of business operations there will be ascertainment of adequate operational activities
with consideration of various sources of funding. In relation with analysing the overdraft
capacity of business which is for 2 million pounds which will be appropriate and adequate in
meeting the initial requirements of the business. It will be suggested to the professionals of this
entity that they must consider various other sources of funding too which will charge less interest
and will be helpful in balancing the operating gains of Pavestone UK limited.
Financial sources for funding
Venture Capital- Getting venture capital is considerably different from raising debt or a
loan. Lenders have a legal right to interest on a loan and repayment of the capital irrespective of
the success or failure of a business. Venture capital is invested in exchange for an equity stake in
the business. The return of the venture capitalist as a shareholder depends on the growth and
profitability of Pavestone UK limited. This return is generally earned when the venture capitalist
"exits" by selling its shareholdings when the business is sold to another owner.
Advantages:
 These are the funds which will be generated and gathered by the firm on the basis of
revenue earned by them from operating activities.
 It does not require any interest payable on it.
Disadvantages:
 It will not be being satisfactory to the business in relation with having satisfactory
amount for funds.
 All the costs and expenses which were being paid by business which reduces the profits
of the business.
8

Loans- loans are the good sources of funding. Amount borrowed by the bank in the form
of loan increases the funds of the Pavestone UK limited. On the other side, it will have negative
influences too as there will be payments of interest over the loan amount obtained by the banks.
Advantages:
 Business can obtain the most appropriate amount for operations with the influences of
better fund generation.
 It will be payable by the professionals on the term basis
Disadvantages:
 The disadvantages of this source is that, bank charges higher interest rates on their
lending money.
 Firm has to lease their property or any fixed asset in against of loan amount
Angel investor- These are the investors to the firm which sponsored it with investing
capital in. There price may increase or decrease at the specified time and this helps to maintain
the sources of fund. Pavestone UK limited has to make simple dividend policies which will be
attractive and adequate as per giving the investors advantages of the returns on their investment.
Advantages:
 Investors are angel to the firm will be an adequate source in generating required amount
of capital from operations.
 This source will be beneficial in rising the market value of firm.
Disadvantages:
 There will be no sudden time and requirement which will require the business in having
appropriate determination of all operations.
Overdraft- Personal fund includes personal savings, credit cards, borrowings from
family and friends etc. which will be borrowed by Pavestone UK limited with not surcharge
amount of interest. Lease financing involves the use of lease to acquire access to asset. Rather
than pay for the asset outright using cash, it can often make sense for businesses to look for ways
of spreading the cost of acquiring an asset, to coincide with the timing of the revenue generated
by the Pavestone UK limited.
Advantages:
 Overdraft will be helpful in withdrawing the money which will be adequate and
appropriate in building better capital strength.
9

Disadvantages:
 It reduces the reputation of firm as well as also affects in making improper determination
of all activities.
Crowd Funding: It will be the promptest way in generating the funds and rising the capital.
The amount of capital will be collected from the mass population in relation with having
appropriate determination of all operations.
Advantages:
 Funds will be gathered so quickly as company can rise their capital structure.
 Considering this technique will be appropriate in rising the market value of the firm.
Disadvantages:
 It does not reflect appropriate amount of fund which will be disadvantage to the business.
Peer to peer: This is the most adequate technique on which organisation, individual lend the
money through online borrowing system. Various applications and operations which in turn will
be useful in making best determination of operations.
Advantages:
 It operates on the valid platform as well as consist of all proper information regarding the
lenders, creditor or borrowers.
Disadvantages:
 Risk full implication of all confidential information which in turn affects in manipulation
of such activities.
LO3
P4 Identifying a business plan along with its financials
Planning the business activities will be adequate as the professionals comprised with
various requirements and management of operations accordingly (Campbell, 2017). Hoverer,
there are various stages and operations which will be based on determining various issues and
management of operational accordingly.
Business concept
Background:
Pavestone UK Limited is operating as a small business enterprise in UK which
manufacture and deals in concrete and stones. Thus, to improve the revenue and growth in sales
10

there will be suitable improvement in the operational practices as well as revenue generation of
the firm. The aim of business is creating the unique identity in the market as well as creating the
suitable operational strategy which will be helpful in improving efficiencies (Blyth, 2018).
Overview
This business plan will be fruitful which in turn will be adequate in leading the
operational practices as well as revenue generation of firm in meeting the targeted aims at the
right time. There will be access through market needs and suggestions relevant with retaining the
previously existing consumers.
Vision and Mission:
To improve operational efficiency and financial structure of business there will be
ascertainment of effective techniques (Ahmed and Ahmed, 2018). The strategy will be based on
improving operational a capacity and management of operations. Dealing the products and
services on the online segmentation will be effective in terms of marketing the concept as well as
retaining the higher consumer attraction.
Marketing plan
Marketing mix
Product:
The product which is sold by Pavestone UK Limited which will provide customers range
of stone related to the polished granites, natural stone paving, stone edging and many more
services in the best possible manner. It will provide customer satisfaction up to a high extent and
sales will be boosted quite significantly.
Price
It plays an important role so as to quote services to the customers. Price should be
charged by following suitable pricing strategy in order to attract buyers with much ease. It should
be quoted in accordance to the demand of people so that they may not attract to rivals.
Place
11

Place is regarded as process of moving goods from the producer to final customers. It is
an important point in marketing mix in order to analyse how item is bought and sold in the
market to customers involving several intermediaries in the procedure.
Promotion
It is required in order to lure customers to purchase products which they do not know. In
simple words, promotional activities are done so as to provide information regarding offers or
discounts on the products. Pavestone UK Limited will use social media channels to promote its
products.
Competitor analysis:
In relation with becoming more compatible and challenging for the other industries there
is needed to have effective and accurate analysing over the market and competitors. Therefore,
there will be suitable development of various operations which in turn helps in leading the
organisation as well as it will be suggestive to the professionals in designing the competitive
strategies. To analyse the rivalries the determination of suitable range of prices and distributional
channel will be effective for business in better industrial functioning (Demir, Wennberg and
McKelvie, 2017). Considering the competitors available in the market for Pavestone UK Limited
which are Woodside Cast Stone Ltd, Stone Worktops, Kingstone Products etc. are the
challenging organisations which are operating the in the market as per serving market with
appropriate quality and costs of the products. Rivals are crucial part of organisation and is
required to effectively assess their strategies so that Pavestone UK Limited may be able to devise
well-structured strategy to outreach them. It is needed that organisation should analyse
competitors' strategies and implement new one for attaining growth.
Target market and Consumer segmentation:
Consumers relevant this product line are mainly construction companies or buyers who
like to have innovative interior or architecture in their house, businesses and offices. However, in
relation with serving products to such consumers there will be higher revenue generation as well
as profitable gains which will be effective as per leading the market with adequate care and
operational advancement (Dopfer,Potts and Pyka, 2017). Thus, in relation with meeting the
desirable level of these buyers there will be development and designing of products with
12

considering quality work as well as effective costs implied over products. Target market is
essential so that needs of specific customers can be evaluated and met in a better way. It provides
preferential products to customers and as such, needs can be specifically cater for targeted
customers leading to maximum profits.
Operational plan
Roles and responsibilities of professionals:
Considering the operational functioning which will require the adequate talent and skills
in the professionals. Thus, to have effective work culture and operational activities there will be
requirements there are various roles and responsibilities assigned to the professionals working in
Pavestone UK Limited.
Job Role
Owner Seeking for the best sources of finance and the
operational needs of business.
Operating manager Allocating the funds in each operational
activity as well as managing workforce to
make qualitative efforts in attaining
organisational targets.
Accountants or Auditors They will record the daily transactions with
proper existence of evidences. Auditing the
books and preparing the budgets for the next
period. They will also represent the disclosure
among internal as well as external users of
such informations.
Employees They will be operating in the manufacturing
and dealing the products among end users.
Financials feasibility plan:
13

To achieve the targeted aims and making suitable plans for operational growth of
business there will be requirements of having qualitative control over financials of entity
(Pallagst, Fleschurz and Said,2017). Controlling capital structure of business there will be need
of having effective control over operations with the help of better financial forecasts such as:
Budgeted cash flow statement:
FORECASTED CASH FLOW STATEMENT
Particulars
Initial
invest
ment
Janu
ary
Febr
uary
Mar
ch
Apri
l May June July
Aug
ust
Sept
emb
er
Octo
ber
Nove
mbe
r
Dece
mbe
r
% sale per
month
0.07
%
0.06
%
0.06
%
0.06
%
0.05
%
0.05
%
0.05
%
0.05
%
0.05
%
0.04
%
0.04
%
0.04
%
Total Buyers 1500 1575
1653.
75
1736.
44
1823.
26
1914.
42
2010.
14
2110.
65
2216.
18
2326.
99
2443.
34
2565.
51
Sales Product
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Onli
ne
Selling price 84.27 84.27 84.27 84.27 84.27 84.27 84.27 84.27 84.27 84.27 84.27 84.27
Total
revenue
1264
05
1327
25.25
1393
61.51
25
1463
29.58
8125
1536
46.06
7531
25
1613
28.37
0907
813
1693
94.78
9453
203
1778
64.52
8925
863
1867
57.75
5372
156
1960
95.64
3140
764
2059
00.42
5297
802
2161
95.44
6562
693
% sale per
month
0.08
%
0.08
%
0.07
%
0.07
%
0.07
%
0.06
%
0.06
%
0.06
%
0.05
%
0.05
%
0.05
%
0.04
%
Total Buyers 1200 1272
1348.
32
1429.
22
1514.
97
1605.
87
1702.
22
1804.
36
1912.
62
2027.
37
2149.
02
2277.
96
Sales Product
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Selling price 16.04 16.04 16.04 16.04 16.04 16.04 16.04 16.04 16.04 16.04 16.04 16.04
Total
revenue
1924
8
2040
2.88
2162
7.052
8
2292
4.675
968
2430
0.156
5260
2575
8.165
9176
2730
3.655
8727
2894
1.875
2250
3067
8.387
7385
3251
9.091
0028
3447
0.236
4630
3653
8.450
6508
14

8 448 035 657 696 838 569 403
Total cash
inflows
1456
53
1531
28.13
1609
88.56
53
1692
54.26
4093
1779
46.22
4057
33
1870
86.53
6825
457
1966
98.44
5325
907
2068
06.40
4150
929
2174
36.14
3110
726
2286
14.73
4143
648
2403
70.66
1760
859
2527
33.89
7213
533
CASH
OUTFLOWS
Machineries
in plant 2000 0 0 1500 0 0 1232 0 0 1456 1450 0 0
Repair and
maintenance 400 400 400 400 400 400 400 400 400 400 400 400
Equipment 450 0 0 0 350 0 0 860 0 0 842 0 900
Advertising 380 380 380 380 380 380 380 380 380 380 380 380
Staff Salaries 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050
Total cash
outflows 2450 1830 1830 3330 2180 1830 3062 2690 1830 3286 4122 1830 2730
Net cash flow -2450
1438
23
1512
98.13
1576
58.56
5
1670
74.26
4
1761
16.22
4
1840
24.53
6
1940
08.44
5
2049
76.40
4
2141
50.14
3
2244
92.73
4
2385
40.66
1
2500
03.89
72
Beginning
cash balance 45000
4255
0
1863
73
3376
71.13
4953
29.69
6624
03.95
9
8385
20.18
3
1022
544.7
2
1216
553.1
6
1421
529.5
6
1635
679.7
1
1860
172.4
4
2098
713.1
08
ENDING
CASH
BALANCE 42550
1863
73
3376
71.13
4953
29.69
6624
03.95
9
8385
20.18
3
1022
544.7
2
1216
553.1
6
1421
529.5
6
1635
679.7
1
1860
172.4
4
2098
713.1
0
2348
717.0
05
15

Forecasted Income statement:
Forecasted income statement
Particulars
Ja
nu
ary
Feb
rua
ry
Ma
rch
Apr
il
Ma
y
Jun
e July
Aug
ust
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dec
emb
er
Revenue
346
500
0
364
170
0
38
27
44
2
402
269
0.5
422
793
4.1
444
368
6.3
467
048
7.5
490
890
5.8
5159
538.
6
542
301
4.3
569
999
3.7
599
117
1.8
Less: COGS 750 900
10
80
129
6
155
5.2
186
6.24
223
9.48
8
268
7.38
56
3224
.862
7
386
9.83
53
464
3.80
23
557
2.56
28
Gross Profit
346
425
0
364
080
0
38
26
36
2
402
139
4.5
422
637
8.9
444
182
0.1
466
824
8
490
621
8.4
5156
313.
7
541
914
4.4
569
534
9.9
598
559
9.2
Operating
Expenses
Machineries 0 0
70
0 0 0
120
0 0 0 800 900 0 0
Rent 250 250
25
0 250 250 250 250 250 250 250 250 250
Equipment 0 0 0 350 0 0 860 0 0 842 0 900
Promotional
activities 420 420
42
0 420 420 420 420 420 420 420 420 420
Staff
Salaries 850 850
85
0 850 850 850 850 850 850 850 850 850
Total
operating
expenses
152
0
152
0
22
20
187
0
152
0
272
0
238
0
152
0 2320
326
2
152
0
242
0
Net
operating
Income
346
273
0
363
928
0
38
24
14
2
401
952
4.5
422
485
8.9
443
910
0.1
466
586
8
490
469
8.4
5153
993.
7
541
588
2.4
569
382
9.9
598
317
9.2
Net profit
346
273
0
363
928
0
38
24
14
2
401
952
4.5
422
485
8.9
443
910
0.1
466
586
8
490
469
8.4
5153
993.
7
541
588
2.4
569
382
9.9
598
317
9.2
16

Forecasted balance sheet:
FORECASTED BALANCE SHEET
Particulars
Ja
nu
ar
y
Feb
rua
ry
Ma
rch
Apr
il
Ma
y
Jun
e
Jul
y
Au
gus
t
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dec
emb
er
Assets
CURRENT
ASSETS
Cash
38
76
68
0
751
186
0
113
320
82
153
479
03
195
693
17
240
052
83
286
683
90
335
707
76
387
229
95
441
377
47
498
312
21
558
149
72
Inventories
10
00
150
0
200
0
180
0
190
0
175
0
160
0
178
0
186
0
190
0
200
0
220
0
Total Current
Assets
77
53
36
0
150
237
20
226
641
64
306
958
05
391
386
33
480
105
66
573
367
81
671
415
52
774
459
89
882
754
94
996
624
41
111
629
945
Fixed Assets
Machineries
20
00
0
250
00
320
00
364
00
375
00
396
00
401
00
434
00
450
00
470
00
482
00
520
00
Equipments 0 0 0 350 0 0 860 0 0 842 0 900
Total Fixed
Assets
20
00
0
250
00
320
00
367
50
375
00
396
00
409
60
434
00
450
00
478
42
482
00
529
00
Total assets
77
73
36
0
150
487
20
226
961
64
307
325
55
391
761
33
480
501
66
573
777
41
671
849
52
774
909
89
883
233
36
997
106
41
111
682
845
Liabilities
Current
liabilities
creditors
38
10
63
0
108
164
40
181
748
22
258
985
51
340
042
32
425
135
99
514
430
95
608
157
29
706
481
27
809
607
55
917
730
59
103
112
892
Capital
32
00
00
368
000
423
200
486
680
559
682
643
634.
3
740
179.
45
851
206.
36
978
887.
32
112
572
0.4
129
457
8.5
148
876
5.2
Net profit 34
62
363
928
382
414
401
952
422
485
443
910
466
586
490
469
515
399
541
588
569
382
598
317
17

73
0 0 2 4.5 8.9 0.1 8 8.4 3.7 2.4 9.9 9.2
Total current
liabilities
75
93
36
0
148
237
20
224
221
64
304
047
56
387
887
73
475
963
33
568
491
42
665
716
34
767
810
08
875
023
58
987
614
67
110
584
836
NON-
CURRENT
LIABILITIES
Loans
10
00
00
120
000
144
000
172
800
207
360
248
832
298
598.
4
358
318.
08
429
981.
7
515
978.
04
619
173.
64
743
008.
37
Insurance
80
00
0
105
000
130
000
155
000
180
000
205
000
230
000
255
000
280
000
305
000
330
000
355
000
Total
Liabilities
77
73
36
0
150
487
20
226
961
64
307
325
56
391
761
33
480
501
65
573
777
41
671
849
52
774
909
90
883
233
36
997
106
41
111
682
845
LO4
P5 Discussing exit strategies available to business along with advantages and disadvantages
Liquidation-
The business takes this exit strategy when it is unable to perform well and assets become
less to meet over liabilities. In simple words, expenditures tend to incur more than income and
business takes liquidation to end operations.
Advantages
 Procedure of liquidation is not complex and as such, it can be used for ending up
business. Transfer of control is simpler task and can be attained quite effectually.
Disadvantages
 Main demerit comes at point, when assets are realised, lower amount is achieved often
less than market value. Thereby, loss is incurred leading to decreased value.
18

 It affects brand image when firm is liquidated by complying with process.
Selling to friends-
It is another effective exit option that is used to sell business to friends or family. This
can be used because trust issue is not in this exit strategy. Hence, it can be used to initiate for
closing of business.
Advantages
 Transparency and trust can be accomplished as friends are trustworthy. Business can be handed to them which may be more profitable than earlier one.
Disadvantages
 It is not suitable as price negotiation cannot be done due to emotional attachment. The disadvantage is related to purchase consideration which is received less in
comparison to other option.
Acquisition-
Acquisition is another strategy that could be adopted when profit is not earn by company.
It means that firm can be acquired by competitor by attaining purchase consideration.
Advantages
 It is useful as good purchase consideration is paid by acquiring firm. Valuation is properly done and more price is attained.
Disadvantages
 Roles and responsibilities are to be restructured leading to complex task. It is unsuitable as when another organisation acquires it, affecting brand image.
Employees Stock Option Scheme (ESOPs)-
It is another useful option which can be sold to company's employees who can purchase
it. This option is effective one as workers know about operational activities of company than
anybody else. ESOPs scheme in which shares are purchased by employees and then entirely sold
to them.
19

Advantages
 It is useful employees are given rights in the share of company which increases their self-
esteem. The scheme is cost-effective to implement and exit business.
Disadvantages
 Shares valuation is a tedious task and proper value is not attained as well.
 It incurs tax liabilities in more quantum and as such, ESOP is not suitable exit option.
Succession strategy:
In relation with developing various operational gains for the Pavestone UK limited which
in turn will be useful and appropriate in making successive control over operational gains and
management. It will be suggested to professionals that they must make implication of effective
financial governance, forecasting techniques, preparation of various reports which will be
adequate for enhancing operations.
Exit strategy:
Developing products with uniqueness will be helpful in bringing the existence in the market
as well as create the different segmentation of the business. Thus, such impacts in creating
favourable monopoly in the activities.
CONCLUSION
On the basis of above report it can be said that there has been discussion based on various
operational planning, strategies and control in internal business of Pavestone UK Limited.
Determination of various strategies and planning techniques which will be effective in
controlling the operations of firm. To improve the efficiency of entity there will be suitable
control over operations and revenue generation. Further, there have been forecasts of cash flow
for the following year in relation with developing the strategic plans and operations.
20

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