Planning for Growth

This document discusses the planning for growth in business and explores topics such as evaluation of growth opportunities, sources of funding, business plan for growth, and exit strategies. It provides insights into the GE/McKinsey matrix and the Boston Consultancy Group matrix for evaluating growth opportunities. The document also discusses various sources of funding, including bootstrapping, friends and family, bank loans, angel investors, and partnerships. It is a valuable resource for understanding the strategies and planning involved in business growth.

PLANNING FOR GROWTH

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Evaluation of growth opportunities.......................................................................................3
P 2 Ansoff Growth Matrix...........................................................................................................6
LO2..................................................................................................................................................7
P3. Sources of funding ................................................................................................................7
LO3..................................................................................................................................................9
P4. Business plan for growth......................................................................................................9
LO4................................................................................................................................................14
P5 Exit Strategies......................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth refer to the planning a business does to get the growth in business and
increase the business in expansion and more profit. It is important for every business to plan a
proper structure to get the business goals and expand the business further. It can help in business
development with proper planning and structured way so that they can achieve all the objective
which they have made when working on business to growth and success (Ferm and Tomaney,
2018). Eagle Eye Solutions was founded in 2012 by Dean Drako founder and former CEO of the
company. The company announced it first data centre in 2014 in Austin, Texas. The report will
explain the ways in which company can find their growth in market, further in file the methods
of the funding will be discussed in report. Business plan and the exit strategies will be explained
in the report.
LO1
P1. Evaluation of growth opportunities
Growth is defined as enhancement of the overall outcome of business. This is a business
term which use to form a plan that can support better operational outcomes in favor of the
organization. Eagle Eye Solution is one of the emerging small scale enterprises based in United
Kingdom. Following are the growth model denoted as GE/ McKinsey Metrix and Boston
consultancy group matrix that can be utilize to expand the growth potential of organization. Both
these growth model denote different approaches to support the overall growth of organization.
GE/ McKinney matrix
GE/ McKinsey matrix model of growth operate on different elements that can support the
growth of company. On the basis of industry attractiveness and strength of a business unit or a
product certain strategies and planning is conducted to improve the overall growth rate of Eagle
Eye Solution Company. This model was introduced by General Electric commissioned Mckinsey
& Company in the year 1970.
Industry Attractiveness
Industry attractiveness is a key element involve in enhancement of overall growth
opportunities for business organization. Following are the elements denote the various elements
associated with the industry attractiveness.

Growth rate: IT Sector is growing rapidly across the globe. Government in United Kingdom
has also supported the advancement and development of the information technology sector
which has also resulted positively the overall growth of the sector. In the previous few years the
growth rate of IT sector has seen an increasing trend. The last year growth rate was
approximately 6 % in United Kingdom which will further go up to 8% to 10% in the next few
years (Sudharshan, 2019). On the basis of the growth rate Eagle Eye Solution carry a strong
growth opportunity in term of increasing the overall business revenue and profitability of
company. The increasing demand of the sector also create opportunities for organization to
improve its existing market share.
Industry size: On the basis of the records of sales the recent development in the market share
denote that the size of the IT Industry is approximately 2.565 Billion Pound (Lupi, Myint and
Tsomocos, 2017). The size of the sector is increasing rapidly every year due to the attractive
growth rate. This huge industry size of the IT sector denote that the sector contains an effective
demand which can be utilized by the Eagle Eye Solution by serving the best level of IT solutions
such as software, application and other such resources.
Industry profitability: Profitability is the ultimate objective behind channelizing business
operations. Due to the heavy demand of the industry the profit margins are also heavy in the
sector. On the basis of the financial records of the Eagle Eye Solution Company it can be
denoted that company contain an increasing trend of approximately 8% in its profit margins
(Chopra and et.al., 2017). This is an effective rate that indicate about the dominance of the Eagle
Eye Solution Company even after containing a tag of small scale enterprises.
Industry structure: Information technology industry is growing very rapidly. The overall
development of sector has created diversification in the structure. The recent structure of the
industry denote that the entire industry is segregated into different organizations both big
multinational companies and small scale enterprises. Eagle Eye Solution Company need to
compete against all big and small companies in order to achieve the overall objectives behind the
business operations.
Macro environment factors: Macro environment factor are the dominating elements influence
the business operations of Eagle Eye Solution Company. Factors such as political, economic,
social, technological, environment and legal factors of business environment influence directly

the business operations of company. Macro-economic factors directly influence the business
operations of company.
Availability of human resources: Availability of human resources is another crucial element
influence the business operations. Human resources are among the key resources associated with
the Eagle Eye Solution company. They play role in converting the planning into a successful
implementation process. IT sector require skilled human resources that can take part in
innovation and all other functional activities of company.
The above mentioned factors are the key elements involve in GR/ Mckinsey matrix.
Competitive strength of business unit
This is another key dimension involve in this model. Eagle Eye Solution Company
contain a market share of approximately .6% that can be improved with the support of proper
strategies related to product development, branding and all different strategies (Abbasi, Kaviani
and Boostani, 2018). This market share of company is competitive enough for other small scale
enterprises but in case of big companies associated with the UK IT sector this growth is
minimum. Company carry a strength of delivering the best level of IT solutions such as
equipment’s, software and other tools in the most affordable price possible. This strength of
company allows the organization to gain the interest of potential buyers associated with the
market. Company also channelizes strategies related to constantly develop its products with the
support of innovation and product improvement campaigning. All these elements allow the
organization provide a growth opportunity in target market. Company has also developed a
supply system by establishing contract with small suppliers in UK associated with the IT sector
in a very affordable price structure that also improved the growth opportunity for company.
Boston Consultancy group matrix
Boston Consultancy Group Matrix is another model to evaluate the growth opportunity.
This model segregate brands into different types such as dog, question mark, star and cash cow.
This model was developed in the year 1968.
Dog: Dog is a product that contain low growth rate and low market share. All such brands that
offer less demand of product are a part of this category as they would carry low market share and
growth rate.

Question mark: All such product that carry huge market demand but the brand contain less
market share are a part of this category. These brands require immediate solution to boost the
market share in respect to product development or marketing or any other respective strategy.
Star: Star is a category that carry high market share and high growth rate. All such products that
contain a heavy demand in market are a part of this category. Star are such brands that also
entertain heavy profitability in against of doing business operations.
Cash cows: All such companies that contain high market share in low growth market. Due to
effective presence in market company generate effective demand.
On the basis of the performance of Eagle Eye Solution Company the category denoted as
question mark as company contain a low market share in high growth market. The IT sector
contains huge market share but the company’s share is small as compare to the overall market of
IT in UK.
P 2 Ansoff Growth Matrix
Ansoff Growth Matrix denote different growth options that can be utilized by Eagle Eye
Solution Company.
Market Penetration: Market Penetration is about to increase sale of company in the existing
dealing market. Eagle Eye Solution Company can utilize strategies such as discount, coupons
and other such strategies to attract the buying decision of customers in the existing dealing
market. This is an effective strategic choice that drive the company to boost its sales growth in
the existing dealing market without investing much to boost the growth of company. Companies
like Eagle Eye Solution this is a crucial growth opportunity as the organization contain limited
resources.
Product Development: Product development is another key growth option available with the
company. This is about to develop new products with the support of innovation and different
product development strategy in the existing dealing market. Company do not seek to enter in
new market but try to increase its market share in the existing dealing market (Al-Gamrh and
et.al., 2020). This opportunity can boost growth rate of company. Company already involve in
innovation and product development campaign that support the organization to channelize this
growth options.

Market Development: Market development is another growth option that involve entertaining
into a new market with the support of existing products of company. In this growth option
company use tactics like business expansion and other such strategies. Eagle Eye Solution
Company is among the fastest growing small scale enterprises bases in United Kingdom. This is
an effective option available with the company as it carries a brand image also. This option seeks
heavy investment of company’s resources for expanding the business of company. Currently
company is operating its services across the UK after this more ventures will be established of
organization in different other business locations out of United Kingdom.
Diversification: Diversification is another crucial growth option available with the Eagle eye
Solution. In this growth option company enter in new market with the support of new products.
This is very expensive and time consuming growth option as heavy resources are needed in or
der to expand business at other locations and also financial resources required to innovate in
product development of company (Shahzad and et.al., 2020). Eagle Eye Solution Company
engaged in information technology sector which also needed company to in novate and focuses
on product development activity on a constant basis in order to engaged with the market demand.
The above mentioned options are the key options associated with the Ansoff Growth
Matrix. Company can access of market penetration and product development option associated
with this model in order to improve the growth of company.
LO2
P3. Sources of funding
Sources of funding:
It refers to all the ways by which the company can get funds and can apply for funding to
run the business and its objective.
1. Bootstrapping: Bootstrapping refer to all the funding by self from saving and which is
always preferred. This is one of the best ways to get funds as the saving helps in getting
fund and saves time which required when going to bank and other loans. Bootstrapping
advantages are that it saves time and no need to wait d for the investors and no
relinquish control of any investor in company. Disadvantages are that if the company
does not have saving in their account than it will be an issue for them in getting the

investor and need to wait for the investors and bank loans which cost time and control on
the business (Room, 2016).
2. Friends and Family: Tapping inner circle before asking for money and financial help in
market, it is important to ask the inner circle first so that if your Known helps you in
funding than you can save time and interest rates. It will be more convenient to convince
with people. Friends and family who can help in funding and providing support to the
company in its working and help in growth. Advantages of this is that it does not require
all the lengthy process of funding and it's a direct way to get funded from those who trust
you and now you from a long period. Disadvantages are that it can affect the relation
with the friends and family if the situations went wrong (Bobáková, 2017).
3. Bank loan: Every person asks for the bank loan in the market while doing business as it
is the most legal way of getting funds and improve the business. When company need
money they can opt for bank loans so that they get money according to their civil score.
There are a lot of banks providing credit facilities on different interest rates and it is
totally on the company which ever bank they want they can go for that. Advantages of
this are that it is a legal way of getting financial and credit help. Legal working helps in
ethical business culture. Disadvantages of bank loans is the interest rates are high and
they do not provide any leverage to company and need the interest regularly on given
time.
4. Angel investors: Angel investors are those individual who provide help of credit to the
small business and start up, in exchange for debt or ownership equity. They help the
small business and start-up when no investors are interested in investment in companies.
They are like the angels for those who does not have any investor support. Advantages
of this is a support of finance and funding gives motivation when no one is trusting your
idea and business and are not investing. No need of collateral in angel funding & better
discipline due to outside scrutiny. Disadvantage of this is that it’s not suitable when the
investment is below 5000 pounds or more than the 15000 pounds.
5. Form of partnership: - Forming a partnership is one of the best ways in developing the
business and achieving of growth in market. It is one of the best way in sources of
funding as lots of established companies are ready to invest in small business and also
want to work with them and help in growth. Lots of companies are ready to form a

partnership with your companies and also ready with advance funding. Advantages of
form of partnership are the easy way of getting the fund and credit to work on business.
Flexibility and large resources. Disadvantage of partnership is the control and ownership
equity power.
6. Venture capital : - Venture capital is a mechanism where the investor are ready to help
the entrepreneur and business man in providing the funding which can help them in
getting the business run and grow. Venture capital can be used by eagle eye solution so
that they can improve and grow the market and business (Collins and et.al., 2019). The
Advantages of venture capital for eagle eye solution are that venture capital provide
business expertise and provide additional resources to the company. Venture capital are
well-known in the business community which will also help the company in making new
connection in context to business. Disadvantages of venture are that it minority the
ownership status in the company and loss the control.
The analysis of the sources of funding for the company Eagle Eye Solutions is important
in its growth, and they should look for venture capital and bank loans as venture will help them
in getting funded and also provide new connects to increase the business and growth in market
and bank because it's a legal way of getting funds to do business (Hilber, 2017).
LO3
P4. Business plan for growth
Executive summary
Eagle eye solution is planning to develop a strategic growth plan for which the company
is getting funds from the sources of bank and venture capital, and they are making the budget to
improve and growth in market. Eagle eye solution working in budget plan to make good budget
including all the necessary financial and statistical data representation. In the budget.
Strategical objective
 By the end of 2024 there is going to an increase in the profit margins of Eagle eye
solutions by 50%.
 The sales will increase by 35% by the end of 2024.
 There is going to be a market share increase by 35% by the end of 2024.

 It is going to make the organization have a better strategy and objectives for the
organization by the end of 2025.
Areas of strength
The area of strength of the company are the employee attitude towards the work which
promote a good working within the company and it also provides a great strength in company
profile. Company are promoting the best of the business activities and provide quality work in
the market which is helping them in getting a great capture in market. Providing services product
as well as offers to attract the market are the strength which is helping them in developing a great
audience who rely on company, the retention rate of Eagle eye solutions in customer retention is
very high due to its service quality.
Opportunities
The opportunities for Eagle eye solutions are very high as the company is growing faster
and enhancing a great business due to its service and quality of working. The opportunity of
scaling the incentives in upwards is one of the major opportunities for the company in recent
period, and they are keen to develop that in many other opportunities (Qin and et.al., 2016). The
company have great opportunities in getting support from government to enhance the business,
and they need to make that opportunity to work as getting support from government is one of the
major ways in developing the business. Opportunity of developing the cyber security in the
business and tech disruption which is known as adapting of new technologies to develop the
market.
Values and Ethics
The values and ethic are the ways in which company is working in the market and Eagle
eye solution have made a good goodwill in the market and are working in all the ethical manners,
company is following all the ethical consideration of business and developing a good value in the
market. Eagle Eye Solution has developed the brand value by working in the best quality
services and providing every work with all the legal and ethical manner. For growth in the
market company is following all the necessary criteria and proper ethical and legal working to
grow unlimited (Kawas and et.al., 2020).
Bowman's Strategic Clock

Bowman's Strategic clock is a model which explain exposure for the positioning or
strategic positioning. This explains the ways in how the product should be positioned and find
the most competitive position for the product and service. Bowman's Strategic clock explain and
illustrate that a business is having variety of options based on two of the dimensions which are –
Perceived and price value.
Low Price and low Value added (Position 1) : - This is not a competitive position for a
business to position the product and services. At this stage the product is not differentiated and
customers are not giving a good value despite the product having a low price in that. This
strategy is referred as the bargain-basement strategy which is not good for the Eagle eye solution
in growth (Iordanou, Hawley and Iordanou, 2016).
Low price (Position2) : - Business position things that the low cost leaders in market is good.
Eagle eye solution is giving their products and services for low so that the business will be able
to grow further. Strategies of cost minimization is good for successful, it depends on the quality
of service you are providing to the customers.
Hybrid (Position 3) : - Hybrid position is the position which include the low price of product
but differentiation of product from the competition. It is a combination of low prices and
different product from the competitor which is made to attract the customer.

Differentiation (Position 4) :- The aim of this position is all about providing a different product
to the customer with added of quality in product and highest level of perceived value. This focus
in providing of quality and not that much focus on price.
Focused Differentiation (Position 5): - This position aim is to provide the highest level of price
of product with the highest level of value added, this is for the customer who perceived high
value product.
Risky High Margin (Position 6) : - This is one of the high risk positioning which are argued to
doomed to failure. The business offer high price without providing additional added value.
Monopoly (Position7) : - Monopoly refer when there is only one product in market offered by
specific company and no other competitors are thereto competed. It can affect the business of
company as its not important that monopoly works everytime.
Loss of market share (Position 8): - This is the disaster for any competitive market where the
price are middle range or standard range with low in perceived value of product unlikely to win
over many consumers in market. Pricing strategies like competitive advantage and this would
make the sales of Eagle eye solution will also increase so that there is going to be higher
performance.
The analysis of the Bowman's Strategic clock it can be seen that the position Of Risky
high Margin, Monopoly and loss of market are uncompetitive and not good for the business in
position the company need to opt for other option.
Sources of finance.
The analysis of the sources of funding for the company eagle eye solutions is important in its
growth, and they should look for venture capital and bank loans as venture will help them in
getting funded and also provide new connects to increase the business and growth in market and
bank because it's a legal way of getting funds to do business.
Budget
Particulars Cost

Raw Material £100
Labour £120
Specialists Appointed £175
Training Cost £110
Marketing Expenditure £400
Overheads £95
Total £1000
The budget is made on the basis of all the expenditures which can be inccurred and which are
needed to the company on expenditure, and they need to develop all this to evaluate the working
in the best ways.
Monitoring and Evaluation
Monitoring and evaluation of budget and overall plan with the benchmarking and the
standard costing to reach the maximum profit in market and help in growth of the company. The
company needs to monitor all the task there are working in and also need to observe every single
thing which is going in the business so that if in any circumstances company stuck then they can
identify the issues. Standard costing is important to work in market and compete in business
market. Evaluation of the identified issues and working help in developing of the business in its
working and develop profit and obtaining of goals. Eagle eye solution is going to be using 360
degree technique and feedback from the employees so that the changes in the organization can

come in the organization effectively. The productivity and performance of the company is not
going to be effected as well.
LO4
P5 Exit Strategies
Exit strategies of the business in case when the business is not working good, and they want to
take the exit from business are as follows: -
1. Liquidation : - This is one of the ways in the closing strategies for any business when they
want to close their work. It is one of the ways to close the shop and selling of assets. This is done
mostly when the business is done under an individual, liquidation is something when they don't
have anything to sell. They need to spend time on the business till anyone wants to operate the
business and ready to take all the responsibility. Eagle eye solution can use this in there exit
strategies.
Advantages : It is the simplest way to close up the business and shop. The business can be
wound up very quickly in liquidation by sale of assets.
Disadvantages : Liquidation produce the lowest rate in the return on the investment which is
done by the owner and businessman. Creditors of the company have the first right on the funds
and assets.
2. Liquidation over the time: - In this exit strategy the owner extract most of all profit out of
business over the period. In this the owner does not invest the money again in the business and
take all the profit to itself and no reinvestment take place. This is done by large salary drawn
over a number of years so that all the profit can be taken out (Thompson and et.al., 2020). Eagl
eye solution can do the liquidation over time accourding to the situation.
Advantages: - Lifestyle-maximizing cash withdraws on ongoing basis for the use in personal
waiting for the company in windfall from selling of the company.
Disadvantage: - Extracting the profit of company reduces the growth in long period and also is
one of the reason of company loss. Profit increases the value of business and if cashing out the
profit of business decrease the value of business.
3.Keeping business with family : it is one of the best ways as many business people want to let
the legacy remain in the business for a longer period and this strategy keep the business going

and not letting anyone has their business. It helps in remaining the business identity and is a great
way to keep the goodwill in market.
Advantages: - It can help in making a smooth transaction by grooming of a person in the family
as a successor. It can allow in keeping a hand in the business as an advisor.
Disadvantages: - Family member may not have the skills to do the business properly and can
take a lot of time to understand the situation and working of the business.
4. Selling business in open market: - The most popular exit strategy which majority of people
choose in when they are thinking of exit in business. The selling of business in open market
when owner thing of retiring from business they can sale the business in market in particular
price they want to have for their business.
Advantages: - the profit of the business and the profitability should be attractive for both buyer
and seller. Assets and goodwill of the firs can be incorporated when valuing business sale and
maximizing return to owner.
Disadvantages: - Finding the buyer in the market is tough in open market, it's hard to find the
right buyer in market which can take a lot of time of owner (Ghamizi and et.al., 2020).
5. Sell to another business: - selling the business to a desirable acquisition as it can be very
profitable for the business. It can help in profit as giving then business to one of the best
organization can help in providing profit, and they will enhance the business and expand the
business.
Advantages: - competing business is highly profitable and it can help in getting the maximum
profit to the owner when they sell the business to another business.
Disadvantages: - if the buyer is just purchasing for the sake of competition, they can fold the
business after the purchase of business and cause a huge impact.
6.The IPO (Initial public Offering) : - it is not suitable for all type of business as it is very hard
to get the public offering for the business.
Advantages: - If any public offering take place for the business than it can help in extreme profit
for the business and owner can get a huge amount of profit (Afrahi and Blackburn, 2020).
Disadvantages: - becoming and public company needs a lot of money and a lengthy process
which take a lot of time. It is also depended on how well the IPO is structured.

The Eagle eye Solution can opt for liquidation and sell to another business and it will be best for
the company as it is easy process and it will also help the company in getting more money and
better profitability in choosing the option.
CONCLUSION
The report concluded that working on the growth need to be taken in serious ways as it is
important for the business to get the growth so that the business gets expanded. Report concluded
they key consideration of the SME's in the growth and evolution. Business need planning to
grow and need to identify the basic plan to get all the objective achieved in business. Business
plan helped in understanding need of business plan to develop the business and improve the
growth of business so that business grow and expand. Further, in report the exit strategies are
concluded which help in understanding all the exit ways in business.

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