Planning for Growth

This report discusses the key considerations for evaluating growth opportunities and potential sources of funding for business growth. It explores various growth strategies and funding options, such as debt financing, crowdfunding, and equity finance. The report also highlights the importance of effective risk management and collaboration in the growth process.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Competitive Advantages.............................................................................................................3
LO2..................................................................................................................................................7
Potential sources of funding along with their advantages and disadvantages............................7
CONCLUSION..............................................................................................................................10
REFERENES.................................................................................................................................11

INTRODUCTION
Growth is defined as a process to improve the length of business scale of an organisation
in order to increase the company's profitability (Parnell, 2018). This report is based on the case
study of Eagle Eye Solution. Eagle Eye Solution is an UK based small scale enterprises.
Henceforth, this report will emphasis on various growth strategies associated with corporate
organisation. Effective funding sources will also be elaborated in this report.
LO1
P1 Key considerations for evaluating growth opportunities
Competitive advantage is specified with framing strategies like product development and
utilise other associated strategical tool in order to expand the market share of company
(Lapersonne, 2018). Following strategical tool can be utilized by the management of Eagle Eye
Solution in order to take competitive advantages.
Porter Generic Strategies
In order to take competitive advantages in the market Michael Porter has introduced this
strategical tool. This model suggests that companies can take competitive advantages.
Management of Eagle Eye Solution is planning to use low cost strategy and differentiation
strategy of this model to achieve growth.
Low Cost Strategy: This strategical tool focus over cutting the total production cost in order to
generate the same profitability even after reducing the product selling price (Lapersonne, 2018).
Management of Eagle Eye Solution can either focus over excess production so that company can
reduce the cost of production involve with each produced article or utilise better production
technique to reduce the cost of production. Company can improve its market share by offering
the same product quality in better prices to target customer's.
Differentiation Strategy: Differentiation strategy focuses over making a unique identity of
company's products in the market (Kochkina, 2019). This strategical tool focuses over product
development and advancement that entertain the better user experience. This is an effective
strategy that enable the company to improve its brand value in target market.
Growth Options for Company
Management of Eagle Eye Solution can focus on new product development and
innovation in order to expand the growth opportunities.

Portfolio Strategies
Company management can channelise Boston Consultancy Group Matrix and GE/
McKinsey Group Matrix
Boston Consultancy Group Matrix: This is a strategical tool used to analyse about brand
portfolio of the company (Sahamkhadam and Stephan, 2019). This matrix segregate brands into
four categories question mark, star, poor dogs and cows. Companies growth rate and market
presence is used in this tool to analyse about the company's brand portfolio.
Product category of Eagle Eye Solution covers under star as information technology is
among the fastest growing sector across the globe.
GE/ McKinsey Group Matrix: This is also strategical tool used assess about company's
presence in the market. This model assesses about the company's position in market based on the
growth, market share and other respective tools to evaluate either company's position is strong or
lower in the target. Eagle Eye solution is among the fastes growing SME in UK market that
depicts about company's growth and effective market share in UK market.
PLC
PLC is an analytical used to analyse about the product life cycle. This model emphasis
over different stages involved in total life cycle of product. This model guides that product needs
to go through various stages like market development, market growth, market maturity and
market decline in its entire life cycle.

Eagle Eye Solution company deals in technology products such as software which
belongs to market growth segment under product life cycle.
P2 Ansoff’s Matrix Model
Ansoff Matrix Model is a strategical tool used by organizations to improve growth
opportunities by taking competitive advantage in the market (Agbola and Otchere-Ankrah,
2018). This model emphasis over market penetration, product development, market development
and diversification strategies to achieve growth in the market.
Market Penetration: Market Penetration emphasis on improving company's sales in the existing
market by using strategies like reducing cost, increasing promotional activities and other
strategies. Company management will utlise this strategical tool by reducing prices of existing
products.
Pros: It will improve sales of all existing products of the company in the market.
Cons: This technique is a riskier approach to take competitive advantage.
Product Development: Product development involve strategies like launching of new products
in the market to achieve higher growth in existing market. Company management will also focus

on this strategical tool by conducting researches to develop the existing products. New
technologies will be launched in this to expand company's growth.
Pros: It will expand the target customer base of company.
Cons: Competition threat will still be exist.
Market Development: Market development focuses on entering into different market by
launching existing products in the new market.
Diversification: Diversification involve entering into a new market with the launch of new
products.
Identifying and Mitigating Risk: This is a crucial process involve in growth process of
organization (Kaar and Stary, 2019). This stage involves making strategies to assess various risk
related to the growth and development plan. Based on the identified risks this process also
emphasis over suitable solutions in order to deal with such risk issues.
 Improves supply chain
 Increases entry barrier to new entrants
Disadvantages:
 Product quality may decrease.
 Legal ramifications of this process are time consuming.
Collaboration
Collaboration between two business can be very productive for both parties irrespective
of the method of collaboration. Mergers, acquisitions, joint ventures or strategic alliances all
provide certain advantages and disadvantages to companies:
Advantages:
 Cost efficiency.
 Decreased competition
 Higher productivity and profitability
 Increased in market share
Disadvantages:
 Decreases Jobs in market
 Diseconomies of scale
 Less choice for customers

LO2
P3 Potential sources of funding along with their advantages and disadvantages
There are multiple ways through which EES can assess potential capital investments such
as:
Investment Decision making is the process through which investors and managers of Eagle Eye
Solution make decisions in regard to the amount of capital is to be invested into an opportunity.
There are a variety of ways that can be adopted in order to conduct a financial decision making: Payback period calculation informs investors about the period of time it takes to recover
the costs made into an investment (Villani and et.al., 2018).
 Net Present Value calculation evaluates the profitability of a project or investment.
Positive net present value informs us that earnings made from investment will exceed the
input costs made, in long run.
After conducting prior analysis, investors can look at various different sources of funding
and make an informed decision based on their requirements. Common sources of funding are:
Debt Financing: One of the most common sources of funding for Eagle Eye Solution to use is
that of Debt Financing is done through bank loans, overdrafts, a variety of mortgagers and in this
process, required capital is borrowed from a bank or other financing institution with a legal
agreement to pay back the sum within a prescribed period along with due interest. Bank loans
guarantee capital sums for a certain period, and banks only ask for interest as payment on loan
and not business shares or percent of equity which is one of the major advantage. The major
disadvantages are that banks require a security deposit for loan and banks lack flexibility with
regard to interest rates and repay durations.
Crowdfunding: This is a funding practise in which large number of people contribute as per their
ability by raising capital to fund a desired venture or project, usually via internet (Mason and
Botelho, 2018). Business like Eagle Eye Solution can set a target for required funding and
Crowdfunding can also become valuable way of marketing project which are the major
advantages. However, the disadvantages are that if the target set by creators isn't met, the money
is returned to investors. Displaying lucrative idea on public platform increases risks of it getting
copied is also a major disadvantage.
Social lending: This is the process of cutting out the financial middleman and directly asking for
funds from an individual, whether from friends, family or relatives (Ruan and et.al., 2018).

Lower interest rates and Flexible and negotiable approach are some of the major advantages that
they face. These kinds of loans provide no legal protection or insurance of repayment. Many
borrowers have low credit score which is a major disadvantage.
Venture Funding: These are investment funds provided by investors to an SME like Eagle Eye
Solution or start up with huge potential growth in return of private equity stakes. Venture
investors usually have good connections in the business market. Ownership's loss of
management and operational control along with shared profits.
Inventory Management: Inventory management is a component of Eagle Eye Solution's supply
chain management, in which the flow of products and services from producers to storage depots
to selling facilities is supervised. One of the most important functions of inventory management
is of keeping a detailed inventory record of all the various goods and products that enter or leave
the storage depot's premises.
Materials Resource Planning: Material resource planning is the process by which Eagle Eye
Solution of purchase raw materials and strategically plan resource distribution on the basis of
total sales predicted. In essence Material resource planning is used to schedule, plan and control
inventory component of a business's manufacturing process. It is a software based solution
capable of functioning without or with quite less human interaction (Mason and Botelho, 2018).
The system is installed in supply chain management with the intent to ensure availability of raw
materials and supply, control the amount of goods and products currently in storage and to
generate a scheduling, manufacturing and purchasing plan.
Just in time: Just in time is an inventory management process used by Eagle Eye Solution whose
main emphasis in on minimising storage inventory of products in an effort to increase business
efficiency. Just in Time inventory management system coordinates the input raw materials and
supplies required from suppliers directly with the production schedules in order to decrease
wastage and contamination during product storage in inventory and to decrease inventory costs
of a business. Just in time management systems mandate manufacturers to predict the demand
accurately in advance.
Debtors Management: All individuals or businesses that owe monetary capital to an institution,
organisation or individual are known as Debtors. Effective management of such debtors by Eagle
Eye Solution is necessary in order to facilitate the early recovery of debt and to avoid bad debts.
Debtors management process includes

 Creating payment terms and enforcing credit limits on debtors.
 Timely debt collection.
 Implementing and enforcing a set credit policy Keeping detailed records of debts and debtors
Equity Finance: This is the process through which sums of capitals are raised by an individual
or organisation such as Eagle Eye Solution by selling their respective shares (Villani and et.al.,
2018). Equity Finance is done by businesses, often small in scale who are in a short term need of
cash, through the sale of shares in exchange of monetary gains, the individual or organisation
sells a part of their ownership in the business to others in exchange of cash, quite like stock
financing.
Financial Decision Making: This is a process through which leadership and management of a
business like Eagle Eye Solution make decisions with regards to the organisation's liabilities,
issuing of bonds and equity of stockholders. Financial decision making process is made up of six
processes
 Evaluating current financial situation
 Identifying financial goals
 Establishing course of action
 Analysing alternatives
 Implementing financial plan
 Revise and review of financial plan
CONCLUSION
The process through which management and owners track their business's organic growth
is called Growth Planning. A growth plan for a business can help achieve operational and
economical growth by identifying first how the management or owner wants the business to
grow and then takes the necessary steps so that set goals can be met. In this report we have
analysed the main factors which SME's should consider while analysing growth opportunities for
their business. The report also evaluates the various sources of funding available to businesses
and their merits and demerits.

REFERENES
Books and Journals
Agbola, R. M. and Otchere-Ankrah, B., 2018. Strategic Management.
Buccioli, A. and Kokholm, T., 2018. Constant proportion portfolio insurance strategies in
contagious markets. Quantitative Finance.18(2). pp.311-331.
Gondek, A. T., Boessenkool, S. and Star, B., 2018. A stainless-steel mortar, pestle and sleeve
design for the efficient fragmentation of ancient bone. BioTechniques.64(6). pp.266-
269.
Kaar, C. and Stary, C., 2019. Intelligent business transformation through market‐specific value
network analysis: Structured interventions and process bootstrapping in
geomarketing. Knowledge and Process Management.26(2). pp.163-181.

Kochkina, N., 2019. DYNAMICS OF PESTLE FACTORS OF UKRAINIAN MARKET
ENVIRONMENT. Sustainable development under the conditions of European
integration. Part I. p.250.
Lapersonne, A. H., 2018. The Hybrid Competitive Strategy Framework: A Managerial Theory
for Combining Differentiation and Low-Cost Strategic Approaches Based on a Case
Study of a European Textile Manufacturer (Doctoral dissertation, The University of
Manchester (United Kingdom).
Mason, C. and Botelho, T., 2018. Early Sources of Funding (2): Business Angels.
Parnell, J. A., 2018. Nonmarket and market strategies, strategic uncertainty and strategic
capabilities. Management Research Review.
Ruan, Q.Z. and et.al., 2018. Identifying sources of funding that contribute to scholastic
productivity in academic plastic surgeons. Annals of plastic surgery. 80(4). pp.S214-
S218.
Sahamkhadam, M. and Stephan, A., 2019. Portfolio optimization based on forecasting models
using vine copulas: An empirical assessment for the financial crisis. Available at SSRN
3507936.
Villani, J. and et.al., 2018. Sources of Funding for Research in Evidence Reviews That Inform
Recommendations of the US Preventive Services Task Force. Jama. 319(20).
pp.2132-2133.