Effective Growth Planning for Businesses

The assignment focuses on the importance of planning in achieving effective growth and development of organizations. It covers various methods for accessing funding, managing operations and management, business plans, and communication levels. The report also discusses implications for small businesses, making each option a viable choice. References to relevant books, journals, and online resources are provided.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration for evaluating growth opportunities and justification of considerations. 1
P2: Identification of growth opportunities by the use of Ans-off's growth matrix.....................3
TASK 2............................................................................................................................................4
P3 The potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................4
TASK 3............................................................................................................................................6
P4 Business plan for growth which contains the financial information and strategic objectives
.....................................................................................................................................................6
TASK 4............................................................................................................................................8
P5 Succession options for a small business explaining the benefits and drawbacks of each
option...........................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is an essential need of every organisation irrespective of the size whether small,
medium or large in order to achieve competitive advantage in market for longer duration. For
this, it is essential for an organisation to have skilled and knowledgeable management who are
more capable to analyse market trends so that suitable policies and procedures can be developed
against them (Bryson, 2011). The present assignment report is based on RL Maynard which is
engaged in construction business. Organisation has a proposal of investment plan of bidding in
commercial project for SME growth which is also considered in this report. The project includes
the growth opportunities that brings company ahead than their rivals. Along with this, different
sources of raising funds which support an organisation in make them more financially capable
are also discussed under this report. Apart from this, all other aspects are also briefly described
under this report in the context of RL Maynard.
TASK 1
P1 Key consideration for evaluating growth opportunities and justification of considerations
Growth opportunities are the chances of an organisation to develop and grow and the
identification of these chances is the top priority for the management of a business. RL Maynard
is a small scale organisation which is engaged in construction business. This company deals in
growing industry due to which managers have to identify and grab various opportunities which
will help their operations to increase. Growth and developmental opportunities are needed to be
evaluated using various analyses techniques such as porter five force model and pestle analyses
(Burton, 2010).
Porters generic strategies: This is one of the analytical approach mainly centralised
around enhancement of product and service. This model was given by Michael Porter in 1985 in
his books. Creating support and sustainability is one of the major objective of this strategy. This
strategy is a combination of for strategies which are elaborated as follows:
Cost leadership: there are type of leaderships and differentiations are considered in this
model which helps to consolidate the overall cost of producing the services and products. RL
Maynard is a construction organisation and the cost of project and construction remains the
central part of cost in construction organisation. This organisation have been making attempts to
reduce cost of production so that profits could be enhanced.
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Cost focus: this strategy helps to find out new dynamics and ways to improve the
uniqueness of products and services. It is considered that unique ways help to emphasise the
scope of effective management and producing the products and services with in the organisation.
This strategy leads RL Maynard towards sustainability by focusing on project criteria and
primary implementation cost which is incurred at initial stage while forming construction
contracts and project plans.
Differentiation leadership: this strategy helps to bifurcate the products and services of
organisation from competitors. This strategy contains three major elements of growth as reliable
research, development and innovation, supply of high quality services, effective marking and
sales market for offering different products. Innovation, advanced research, promotional events
are the part of this strategy. The differentiation factor with this organisation is ability to deliver
high quality with ideal utilisation of its limited resources.
Differentiation focus: It is tried to focus upon improving quality and reliability of
products and series. It is mainly associated with analysing the quality required areas of
improvement and deciding the growth plans for business. This will not improve the ways and
dynamics of leadership in RL Maynard company but also explore the business tactics effective
execution.
PESTLE Analyses
 Political: Political factors are governmental influencers which effects RL Maynard by
applying laws regarding various permits and documentation. Example of these factors are
tax policies, duties etc.
 Economical: Economic factors can vary from country to country. RL Maynard operates
in United Kingdom and has registered office in England due to which managers have to
face problems occurs in UK economy including economic growth rate, foreign exchange
rates, inflation rates etc.
 Social: Social factors are the influencers which are based on community and society.
Changing choices and tastes about properties and construction techniques affects
functioning of RL Maynard. Few examples of social influencers are population, culture,
attitudes, expectations etc.
 Technological: Being in a construction business, RL Maynard has to bring new
innovative technologies to build a positive image in the market (Chen, and et. al., 2014).
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In relation to construction business, few examples of technological factors can be
obsolete machineries, sterling systems etc.
 Environmental: It is essential for an organisation to operate business operations without
affecting environment in an adverse manner. As RL Maynard is engaged in construction
business thus using non-sustaining materials in the construction of building bring
negative impact on environment. Thus, the management are required to implement safety
measures in order to protect environment.
 Legal: It is related with legal laws and legislations implemented by government need to
be company by an organisation in order to make their presence more stable and strong.
For example, UK government has implemented Equality act, 2010 with an objective of
protecting rights of employees thus required to be implemented by RL Maynard in order
to strong their existence.
This organisation have been making use of cost leadership approaches in which it
attempts to keep cost of production to minimum so that more profits could be availed. The
adherence of laws and favourable economic circumstance promote this approach and ensure that
a business avails opportunities for growth.
P2: Identification of growth opportunities by the use of Ans-off's growth matrix
RL Maynard always tried to focus on achieving growth and success in competitive
market through using advanced and updated technologies in the process of different business
activities. It requires for management to prepare budget for the purpose of adopting new and
innovative techniques in business operations. This may affect the sustainability and profitability
of company in positive manner. To achieve competitive advantage, Ans-off growth matrix is
more useful for company in which there are various grwoth strategies are there that will help
company in attaining strong brand image in competitive market world. There are types of
strategies included in Ansoff matrix such as market penetration, market development, product
development and diversification. Such strategies supports RL Maynard in achieving its own
identity in competitive market. It can be further explained under the below:
Market penetration: In this, an organisation mainly focuses on increasing its current
market share with their existing products and services. It can be possible by RL Maynard through
investing money in adoption of effective marketing and promotional strategies. Introducing
existing products with some new and innovative changes can easily brings an attentions of new
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as well as loyal customers. As RL Maynard deals in construction business manufacturing plans
and building thus implementing new designs and structures can easily help company to get large
number of customers (Eddleston and et. al., 2013).
Market development: In this, the company required to acquire new and innovative
techniques in order to expand its business into new market so as to capture large market share
through selling existing products and services. RL Maynard has operated its business functions
in UK thus expanding business to other countries through getting contracts will help them in
achieving expansion and growth. For instance: This business can venture into additional market
other than London, with its existing services to avail growth. It becomes quite difficult task to
attract new customers in new market but through developing infrastructure and level and offering
instalment options help in achieving stable position in new market.
Product development: Under such strategy, the firm mainly focuses on introducing new
products and services into existing market with an objective of giving tough competition to their
large number of rivals. It can be done through taking contracts to give various amenities and
infrastructure near to their building which are to be fulfilled by this construction based
enterprise.. This will be helpful for construction for making effective and good infrastructure
plans and strategies. This will help in establishing healthy environment near to their constructed
building which easily attracts lots of clients across worldwide.
Diversification: Under this strategy, the firm decided to diversify their business to
introduce new product into new securities industry. This is one of the risk management technique
which merge type of investments with a specific portfolio. Products and services are bifurcated
on the basis of customer choice and perception.
RL Maynard is seeking to invest in SME growth which mainly depends upon product
development. This organisation is opting for market penetration approach by reducing prices of
services offered so that it emerges to be more affordable by the masses.
TASK 2
P3 The potential sources of funding available to businesses and discuss benefits and drawbacks
of each source
It is powerful piece of business which is normally incorporates two additional wages to a
business that requirement for doing their business for limited capacity to focus time. It is for the
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most part accommodating for greatest time of one accountancy year (Eddleston and et. al., 2013).
The refers to organization required assets for working the action of an undertakings in solid way
for longer time frame. UK government need to make successful approaches and also dependable
acknowledged to make arrangement of money to medium and little level of business those are
done due their business that are working for getting solid way.
RL Maynard have a existing liquid assets of £20000 and wishes to generate rest of the
funds to fulfil requirements of bids so as to commercialise the endeavour. Regarding the
investment proposal, organisation is seeking type of sources of funds to generate funds. There
are type of requirement fulfilled with the help of funds, as requirement of raw material, primary
sources, labour and manpower, basic grid requirements, tools and plant installations etc. It is
fundamental for each business person to consider significant wellsprings of capital that will help
with working whole exercises and task of big business in solid way. There are different sort of
beneficial wellsprings of fund specified as follows:
Bank loan: It is considered as one of the crucial form of fund that are available for an
organisation. This is one of the source of funding which is used to get the credit and financial
help to assist the structure and operations of business in more effective manner. A bank loan
provide medium or long term capital finance which will be helpful for the department to operate
their internal aspects in best manner. The manager of bank set limited duration for repayment of
loan with 3,5,5 and 10 year of scale. They can get loan at very low rate as well as in more easy
manner. Bank provides a loan at specific rate of interest at which organisation has to pay the
interest in terms of defining and managing the scope of business in more effective manner.
Advantages: bank loans provides long term benefits for organisation in term of fulfilling
the long term objective of organisation.
Disadvantages: organisation have to pay the interest on the loan due to which
profitability of organisation decreases. (Keough, 2015).
Crowdfunding: it mainly helps to defined the raising the funds through expanding the
operations and management for better and effective growth of organisation. This mainly
associated with arrangement and appropriation of funds from public. For this, the management of
Lewis Fire & Security Limited required to share company's profile along with future projects on
company's website which may grabs an attention of people to invest in such project. The
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interested people who are willing to pledge money give their confirmation after getting
information about the interest amount they received in return (MacLeod, 2013) .
Advantages: crowd funding helps to fast way to raise the requirement of finance with the
upfront fees. This also helps to provides valuable from if marketing and resulted for media
attention. It can consider as one of the effective and simple ways of raising finance with no any
additional fees. Pitching any kind of project or business through using online mode can be
considered as valuable for effective marketing.
Disadvantage: it reduce the cost and operations of business in more effective manner.
This impacts the goodwill of the organisation and decrease the loyalty in terms of getting credit
form the public. (Moseley, 2013).
Peer to peer lending: It is process which is basically used to lend money to different
individuals and businesses through use of online services that match lenders and borrowers.
Here, funds are available at more cheap rate in comparison to other financial institutions. This
will provides the opportunity to the lender to earn high amount of returns in comparison to
banks. There are many advantages and disadvantages are attached with particular source of funds
which are defined below:
Advantages: It is inexpensive in relation to other options. Organisation get advanced and
more better returns by peer to peer lending. This also helps to track the rates and changes in rate
of return.
Disadvantages: Additional locations are introduced to the WAN. If borrowers would
not be able to repay the loans and advances then borrows may lose their credit limit which is
risky. (Todes, 2012).
TASK 3
P4 Business plan for growth which contains the financial information and strategic objectives
Mission: To Provide best and satisfactory services to clients and fulfil their expectations
in a specialised manner.
Target market: There are various movements which are progressive to publicize. At
minimal level target customers are PC shops, advanced bistros, family purpose. Target market of
RL Maynard Construction has an opportunities as schools, school, business association,
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redirection sources. managers are sources which use printers routinely (Valler, Phelps and
Wood, 2012).
Niche marketing: Speciality showcasing is essentially characterized as speaking with
advertising capacities and sections. this is where no contender exist in the focused on advertise.
From this time forward the organization chose to rise in these market. This fundamentally
connected with investigating the item scope in particular market. As the RL Maynard
Construction has a focused on market of medium salary assemble clients which keep the ability
to purchase properties and terrains.
Financial information: There is need of examination before picking source. monetary
requirements which performs business objectives in ground-breaking and powerful way. This
gives finding out about contender's courses of action also. There are diverse sources to raise
saves, so it is basic to pick part which is most fitting for business purposes. Chiefs of RL
Maynard Construction use bank progresses, per people, swarm sponsoring, et etcetera which are
basic for improvement of business. Fiscal status of association must be strong, so this gets stores
from different sources. While picking stores from external sources there is use of systems which
are talented to targets and it must b e used in a perfect world (Wynn,2017).
Strengths Opportunities
 They have better cooperation with
established brands which easily attracts
lots of clients.
 Adoption of promotional toots such as
advertisement on TV, Banner,
newspapers etc. help company in
achieving growth and success for
longer period of time. It maximises the
capabilities which makes positive
impact on profitability
 This affiliation bargains in limited
market of Britain, so they should extend
their business activities.
 They should grow their business in other
division too.
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Currency in GBP.
Period Ending 2/25/2017 2/27/2016 2/28/2015 2/22/2014
Current Assets
Cash And Cash
Equivalents 3032 2528 1549 2021
Short Term
Investments 3011 3520 593 1016
Net Receivables 1488 1421 1785 1881
Inventory 2301 2430 2957 3576
Other Current
Assets 63 0 412 292 2567
Total Current
Assets 15417 14684 11958 15572
Long Term
Investments 1562 1863 1915 1301
Property Plant and
Equipment 18108 17900 20440 2449 0
Goodwill 1792 1827 2288 2286
Intangible Assets 925 1047 1483 624
Other Assets 2254 186 0 2224 2681
Deferred Long
Term Asset
Charges 707 49 514 73
Total Assets 45853 43904 44214 50164
Current Liabilities
Accounts Payable 8875 8293 9677 10359
Short/Current
Long Term Debt 12153 13943 12659 11365
Other Current
Liabilities 1283 841 860 2036
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Total Current
Liabilities 19405 17866 19810 21399
Long Term Debt 949 0 11029 10520 9340
Other Liabilities 8151 47 00 6641 4564
Deferred Long
Term Liability
Charges - - - 885
Minority Interest -24 -1 0 - 7
Negative Goodwill - - - -
Total Liabilities 39439 35288 37143 35442
Stockholders' Equity
Common Stock 409 407 406 405
Retained Earnings 332 3265 1985 9728
Treasury Stock 601 -141 -414 -498
Capital Surplus 5096 5095 5094 508 0
Other Stockholder
Equity 623 -134 -397 -478
Total Stockholder
Equity 6438 8626 7071 14715
Net Tangible
Assets 3721 5752 33 00 11805
TASK 4
P5 Succession options for a small business explaining the benefits and drawbacks of each option
Small business organizations are the most crucial units which contributes to the business.
now, this can be rightly said that there are negative and positive aspects of the firm. The negative
results reflect the drawbacks while on the other hand, the positive aspects would reflect worth of
the organization. There are various developments that would occurs in the organization situation
administration of the excited organization. There is an implementation via that occurred of it as
and design organizational activities in an effective manner (Hough and et. al., 2010).
Different method to leave business:
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It is essential for an organisation to make proper utilisation of various advanced in
technology that can assist company to safeguard them from going into deep loss. There is certain
negative implication would be faced by the “RL Maynard”. Some favourable results that can be
helpful for the company in order to manage their daily expenses. For this condition, which would
be followed by an organisation for leaving the business. Some of them are mentioned
underneath:
Closing their business: It is considered as one of the toughest decision that would be
made by the company for closing all their operation. It can be done in case the company is not
able to perform their operation effectively for so many years. The major benefit is that there is a
limited liability upon the entrepreneur, if the business is registered. This process involves
complex transactions and documentation which are to be fulfilled by the entrepreneur.
Selling their business: Under this condition, company need to sell their entire equity or
operation to another company. As in the form of merger and acquisition, joint venture or FDI.
This is easier and simple way to leave a business. The benefit of this approach is that all the
losses and challenges of business get transferred to other party and individual can not be hold
liable for anything. An entrepreneur have to start again to build a business prior selling which is
a major drawback.
Liquidation method: In this process, company need to follow all their legitimate process
by which all one the obligation related with the cost of debt are taken into consideration. There
will be no any bad impact that offers various benefits for the company (Planning for growth.
2017).
Advantages Disadvantages
Utilization of skill information Through this refreshed and
skill information can be
utilized to business. This
functions according to change
business condition. Director
has pertinent and current
There is fetched related
with this technique.
Director may dependent
ward to aptitude and they
utilize data as needs be.
This may here and there
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information.
Client gets administrations
which are present and in vogue
in showcase.
proofs wrong for
affiliation.
Use of digital technology Web is quick and serving
society at quick speed. This
gets arrangement of issue
inside seconds. This can be use
inside hands and according to
require.
Weakness of this strategy
is that each individual
can't manage the work
without having a proper
knowledge and guidance.
Merger This is one of the method
which contains acquisition of
existing business. This helps to
improve the sum of total funds.
Losses of existing
business faced by the new
business which is man
drawback of this option.
CONCLUSION
As per above report it is concluded that the planning is one of the essential aspect in
terms of effective growth and development of organisation. As per above defined report growth
and opportunities are considered in this report. Various methods through which organisation can
access the funding and when to use different type of funding. Business objectives achievement is
measured in terms of managing the operations and management with effective manner. Business
plan and communication level also defined in this report for effective management. Various
ways as small business for effective implications for each options are done in this subject.
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REFERENCES
Books and Journals:
Bryson, J. M., 2011. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.
Burton, P., 2010. Growing pains: The challenges of planning for growth in South East
Queensland. Australian Planner. 47(3). pp.118-125.
Chen, B., and et. al., 2014. Robust optimization for transmission expansion planning: Minimax
cost vs. minimax regret. IEEE Transactions on Power Systems. 29(6). pp.3069-3077.
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.
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.
Keough, S.B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
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.
Moseley, M.J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
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.
Wynn, M.G., 2017. Planning and urban growth in Southern Europe. Routledge.
Hough, P. and et. al., 2010. The worker co-op sector in Canada: Success factors, and planning
for growth. Canadian Worker Cooperative Federation.
Online:
Planning for growth. 2017. [Online]. Available Through:
<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>
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