Planning for Growth

The evidence towards this assignment should include a business report . LO1 analyse the key considerations SMEs should consider when evaluating growth opportunities. LO2 asses the various methods through which organisations access funding and when to use different types of funding . LO3 develop a business plan (including financials and communicate how you intend scaling up a business. LO4 asses the various ways a small business owner can exit the business and the implications of each option

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Task 1.........................................................................................................................................3
Growth options for company.................................................................................................3
Assessing several methods by which organizations use the funding and the time when such
sources must be used..............................................................................................................6
Task 2.........................................................................................................................................7
Business plan..........................................................................................................................7
Task 3.......................................................................................................................................12
Exit strategy.........................................................................................................................12
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................15

INTRODUCTION
Planning for growth is basically refers to the formation of the strategies which
provides support to the companies in their growth and development. This report is based
upon the Eagle Eye Solution company, which is one of the most emerging small and medium
enterprise (SME) which is based in UK. It is the SaaS marketing technology enterprise which
provides assistance to the business in creating a real time connection in order to retain and
attract more customers with the help of digital promotion and other loyalty based services. In
this report, the different growth options being available to the SME will be projected. The
Ansoff growth matrix is also applied to assess the growth options which are available to the
company that will assist in boosting the business of the Eagle Eye company. It also covers the
different sources of funding that company can access will also be analysed. In addition to
this, the report will focus on the development of the business plan that will assist the
company in channelizing the various options available for growth as stated in the earlier part.
At last, the different types of exit and succession strategies are discussed.
Task 1
Growth options for company
Growth is indicated as upgrading the capability of the organization in regard to raising
its business turnover. It becomes important for the organization to investigate distinctive
growth alternatives that can bolster the sales target of organization. Eagle Eye Solutions deals
in IT products and this sector is among the key leading business sector all across the globe.
McKinsey matrix
This matrix is a diversified tool which is designed to access the growth choices
accessible for the organization (Pessima and Dietz, 2019). IT area developing as a leading
segment of the business condition which itself permits organization to improve the business
possibilities and abilities. This model spreads various viewpoints and aspects that can be
anticipated in the points given below. all of these components give a reasonable overview
about the development opportunities organization can carry in market.
Long run growth rate
IT sector is developing as among the main business environment division. The
tremendous item demand in industry permits organization to engage in the long run growth
rate prevailing in the market. As of now the segment is rising at a growth pace of IT sector in

UK is around over 5% in existing time which will additionally grow over the period as the
business create more items in demand.
Industry Size
The sector has risen in the past 2 decades because of improvement of data innovation
all over the globe. The industry has created the income worth 2.302 billion Pound. This can
be determined as a compelling market value of any industry in United Kingdom. The
segment will develop at progressively aggressive rate according to the different perspectives
of all the distinctive market analytics.
Product life cycle
This business is among the most rising business environment segment which permits it to be
a part of start category in item life cycle (Vartsaba, Sivitska and Filonych, 2018). The
classification signifies that organizations part of the market sector has a great potential of
developing in the market at present as well as in the future. The future of businesses has been
sharp towards the data innovation technology and products. This will additionally enhance
the growth potential of the Eagle Eye Solution in future.
Other than the factors which are stated above, there are various other factors as well
such as increase in demand, changing market trends, increasing dependency on the IT
solutions and so on have a huge impact over the growth opportunities of the company in the
future.
Ansoff Growth Matrix
Growth basically is a strategic position of the business entity in the market which is
achieved by exercising and implementing various business strategies that can result into
attracting the potential customers for the purpose of buying the product and services of the
company (Amelung, Himmler and Stein, 2017). The Ansoff growth matrix provides various
options to the businesses for the achieving growth. This matrix determines the best strategy
for the purpose of increasing the revenue of the company. There are four strategies that can
be implemented by the Eagle Eye Solution as per the business requirement and other
variables.
Market Penetration

Market penetration is a growth alternative accessible for organization. This growth
strategy offer emphasis on increasing the sales of the organization in existing business sector
with the help of existing product categories of organization. In this growth choice,
organization gives explicit discounts to its clients so they can purchase organization's items
that have become out dated in nature. Market penetration is a vital alternative accessible for
organization which makes the organization move towards rising the revenue of all its current
items available in the market. This key strategy permits organization to improve its current
market share with the help of all its current products. This possible only if the company
identifies its USP. This strategy is the least risky in nature and has the potential to yield
greater success at the lower risk. But this strategy is not suitable for small businesses s it
already has too many competitors.
Product Development
The product development is another growth alternative available to the businesses. In
this growth alternative, company get to introduce new products in its existing product market.
The product development strategy permits organization to pull in new clients alongside
supporting the current client base of the association (Tomczak, Reinecke and Kuss, 2018).
This system will permit Eagle Eye Solution to accomplish an aggressive growth rate in the IT
market of United Kingdom. Organization can support its growth rate on an instant basis.
Organization needs to put in certain amount in carrying out the market research for the
product development activity. This strategy qualifies as a risky strategy but along with risk
the gains will also be higher.
Market Development
It is another potential growth alternative accessible for the organization. This includes
going into another market with the help of existing product of organization. In this
development choice, organization get the opportunity to address new clients by opening its
new stores at new geological areas at national level and furthermore organization can open up
stores in international area as well (Bang, Joshi and Singh, 2016). This alternative allows the
business entity in increasing its market share at both national and the global markets. This is
an expensive technique to enhance the growth which likewise considers risk factor for the
organization. It is very risky as the market is unknown which makes risks to be unknown.
The risk is higher than the market penetration.
Diversification

Diversification is the last growth option under this matrix where the organization goes
into another market by introducing new product. In this growth strategy, organization needs
to put its potential and required resources in both implementing new stores of organization at
new areas alongside developing new items for organization. This likewise expands the risk
level for organization in accomplishing desired growth in the market.
The Eagle Eye Solution is the leading SME in the UK market and based on the
growth options discussed above the company should implement both market penetration as
well as market development in respect to their risk taking ability and is also useful in
balancing the risk. Both of these strategies will support the organization in terms of
increasing its growth rate in the existing market and it will get an opportunity to effectively
address the large customer base in the UK market.
Assessing several methods by which organizations use the funding and the time when such
sources must be used
Most of the entrepreneurs look for starting the business but get confused on choosing
the best funding source in order to raise large amount of funds. With several sources,
selecting ideal sources of funding could be seen as overwhelming procedures that are as
follows-
Personal savings- It is counted as most appealing source of the funding, because in
own money is been used for starting the business and no need to borrow from any other
person or source. In this an individual is having total control over business. However, In this
case if the business fails, all hard work goes into the waste.
Friends & family- This kind of business has more for doing with relationship itself
instead an analysis of feasible business related plan (Andersson, 2018). The main objective of
this funding is helping in kicking off the business to the point where it could seek & get other
kinds of funding. It is seen as fastest & flexible source. On other hand, it increases the
financial burden on the amount of loan in terms of interest payment.
Crowd funding- It include funding the business through taking small amount of the
capital from large no. of people through internet. This kind of funding source makes the use
of wide networks that an individual have of their colleagues, friends and families by way of
different online platforms in getting word out about a business with an objective of attracting
new type of investors. This tool has potential in expanding the business through getting pool

of investors who could help in raising the funds. On other state, it needs dedication & time
before the results realized.
Angel investors- Such investors are considered as wealthy person who would provide
funds in exchange of equity shares within the business. Some of the investor works in the
group & screen deals together prior to facilitating funds whereas most of them work
themselves. In this the investors offers valuable guidance & suggestions as they are having an
experience in industry. However, it forces an entity in giving up the control of business up-to
some extent.
Venture capital- Under this investors who invest considerable amount of the money
in exchange of the equity in business and getting returns at the time when business goes as
public or is been acquired by other firm. This source is all about money and invests in such
businesses that have potential in providing effective rate of return on investments made
(Imarhiagbe, 2016). They not only offer funding but also provide an expertise or mentorship
in helping for developing business. VC funding provides an enterprise with immediate
credibility & opens other type of doors to wide network of important individuals like future
plans & investors.
Bank loans- It is counted as most popular funding source for the start up as it helps in
raising large amount of funds. On other note, it increases the financial burden with regard to
payment of interest.

Task 2
Business plan
Executive Summary
Business plan covers the strategies that the Eagle Eye Solutions company is going
to implement in order to successfully introduce its new product in the market. All the
potential factors that the company needs to consider before implementing plan are
discussed. For surviving the dynamic business environment, it becomes crucial for the
company to make changes in its business strategy in order to remain competitive.
Aim
The aim of the Eagle Eye Solutions company is to achieve higher excellence in it
operational activities and expanding its product portfolio.
Objectives
 To launch the new digital service for connecting customers.
 To attain the growth rate of 30% by the end of the year 2022.
 To achieve growth in sales by 45% by the end of 2024.
 Increasing the market share of the company by 25% by the end of 2025.
Situational analysis
SWOT Analysis
Strength
 Ability to deliver best IT solutions to its clients at the best prices which is its major
strength.
 The human resources of the company are also well experienced and highly skilled
which help it in achieving the higher efficiency and productivity level (Atkinson,
2016).
 It is a large customer base having trust and loyalty towards the company which an
important strength for the company.
Weaknesses
 The company is having limited resources since it is small scale enterprise which
makes the availability of the financial resources scarce for the company.
Opportunities
 The company is having an opportunity of increasing its customer base by
introducing innovative products and services.
 Eagle Eye Solutions has the good opportunity to enhance its brand value and

expanding the business globally which will help in achieving the desired objectives
in an effective manner.
Threats
 The large number of competitors available in the market gives tough fight to the
company which is its biggest threat.
 In order to gain higher growth rate, it is important for the company to have enough
resources which is a big threat to it.
Pestle Analysis
Political factors:
The government of UK is providing huge support to the IT companies. Therefore,
with the help of the government policies and other initiatives in the sector has led to the
increase in the growth rate of the industry in the UK market (Finoti and et.al, 2019). Thus,
the Eagle Eye Solutions company can take the advantage of the support being provided by
the UK government to the IT companies and also it will help the company in channelizing
the its growth strategies in an effective manner.
Economic factors:
The economic position of the IT market in UK is also in favour of the company
which will help it in attaining its desired objectives. The Eagle Eye Solutions can take the
advantage of currency flow in the country and also the inflation rate in the economy is
currently in control which leads to increase in the growth possibility of the company. The
economic factors have a big influence over the business growth and objectives. It also
denotes the purchasing power of the customers to have that product. In UK, the earnings of
the people encourage the company to make an investment in the products development in
order to increase the sale of the products at the higher prices until and unless the company
is able to meet with the demand of the market. Thus, this factor works in favour of Eagle
Eye Solutions for introducing the new product.
Social factors:
People in UK are more inclined towards using the high quality IT products. This
will help the company in gaining support from the people of the country. The citizens of
the UK are very well educated and has a complete understanding about the importance of
IT products and services. Since, the people are very open minded this makes the new
product being easily acceptable by the people. This factor again works in favour of the
Eagle Eye Solutions for introducing the new innovative product in the market.
Technological factors:

The technological upgradation in UK has open new opportunities for the IT
companies in the country in order to achieve the desired growth objectives. The focus of
the government over the It sector of the country has led to fundamental increase in the
technological development which is immense. The Eagle Eye Solutions can grab this
opportunity which help it in bringing the new product in the market.
Legal factors:
The Eagle Eye Solutions is required to comply with various types of legal
regulations such as licensing along with other rules and regulations (Liu, 2017). It becomes
essential for the company in order to meet the various regulations and laws with regard to
the IT industry which will help in carrying out the business activities effectively.
Environmental factors:
Working towards environmental sustainability is the most important factor for
analysing the influence of the business environment over the business operation. This
becomes essential for the company to follow the norms with regard to the environmental
protection and well being on account of developing the new and innovative IT products.
The Eagle Eye Solutions is already is active on corporate social responsibility which has
helped it in increasing the brand awareness and customer loyalty towards it.
Marketing strategy
Segmentation
Segmentation refers to the process which helps in determining the key customer segment
which the company wants to grab for its product and services. For the new IT product, the
Eagle Eye Solutions should consider the following segments:
 Demographic segmentation- The new product is beneficial for mainly the
corporates the individual business, irrespective of the size of the business as digital
service is the need of time. Along with that the education level of the people also
matters.
 Behavioural Segmentation- Brand loyalty, is the major focus of this segmentation
process. It involves the attracting the customers through analysing their buying
pattern and trends with the help of it high brand value.
 Geographical segmentation- This new product will be all regions in the UK in the
initial stage of implementation and later on will be made available to other nations
as well.
Targeting
Under targeting, the company will select its target market segment and the

marketing team will implement the strategies which will work on attracting the customers
towards its product.
Positioning
For positioning the product in the UK market, the Eagle Eye Solutions will follow
the discounted price strategies initially. Company will approach the customers through the
email marketing by providing the product at the best price and taking the competitive
advantage.
Marketing Mix Product
Eagle Eye Solution currently offers limited range of IT solutions products to its customers
but these products are of top quality that allows providing top services to all business class
clients and it includes other regular customers also. Price
The Eagle Eye Solutions should follow the policy to offer the best product at the best
prices (Wu and Li, 2018). Sine, the price of its new product is set to be at the affordable
prices with regard to the quality of IT products company. Therefore, the company will be
able to accomplish its growth targets in a better way. Place
The organization can make a deal of its product and services with the help of its stores in
UK. Organization will likewise channelize online medium to order to sale its products in
the market. Organization can enter into agreements with other businesses to provide its
provide on their site that will likewise bolster in accomplishing the growth targets. Promotions
Marketing department of the Eagle Eye Solution will utilize the digital medium for
promoting its products (Rathod, 2016). The company will also make use of the social
media channels for the purpose of promoting its products. SEO will also be a part of its
marketing and promotional strategy of company. Process
The company offers effective services such as free servicing for 1 year and many other
services like customer care that will help in grabbing and retaining customers in market. Physical evidence
The physical evidence of the company ensures that high quality of the products is being
offered at the best prices. It involves the quality assurance of all IT products to clients. People

The executives have made a straightforward framework where all products are monitored
so that best quality of IT products the organization can deliver. Workers of organization are
well experienced and has the abilities to confront all barriers that come across.
Finance
Resources needed Cost £
Machinery and equipment 5500
Materials and supplies 3000
Office space 2000
Electricity 500
Insurance 900
Manufacturing space 2700
Service providers 3000
Salary of key personnel required 40000
Intellectual property rights 3000
Internal use software 1500
Website development 800
Total 62900
Sourcing Finance
The company can make use of bank finance, private financing or angel investors for
accumulating funds for its growth plan.
Opportunity growth
This business plan will help the company in achieving its set objectives. This plan
is very diversified and precise which will allow the company for taking long term
advantage of it.
Monitoring and controlling
It is relevant for the company to timely monito and measure the progress of the
plan. This will assist it in determining whether the strategies put in place are effective or
not in achieving the desired result. The company can also make use of google analytics and
sales review for analysing the impact of the strategies.
Recommendation
Based on the above plan, there are certain points which the company should consider are
stated below:
 It should timely review the performance of the plan so that actions can eb taken on
time in order to mitigate the risk.
 The company should properly further evaluate the sources of finance in order to

work within the budget and avoid any unnecessary financial burden.
 The implication of marketing strategy being used should be assessed with respect to
the response of the customers.
Task 3.
Exit strategy
The exit strategy means that in case the company faces failure then it must have a
second plan called back up plan for accomplishing the goals. Eagle Eye Solution is a small
business and cannot take the risk of exiting with huge loss therefore, following are the
strategies that can be considered the company in the situation of failure.
Liquidation
This is an effective strategy that the company can utilize in order to meet its business
losses which is part of its growth plan. Under this, the company’s assets and other resources
are put on sell for overcoming the financial losses incurred by it (Bose, 2017). It is the most
basic strategy option that is available to the company in the situation of failure. In this
strategy, the firm can make use of all the business assets and properties for managing the loss
incurred because of its growth plan. The company is requiring to sell all the stuff so that no
further amount is due to be bear by the owner of the business.
Keep business in the family
This is another exit method organization can channelize. In this strategic option, the
organization can keep the business among its family members. Different individuals from
family can proceed with the business (Pinkovetskaia, Schennikova and Kryukova, 2020). In
this exists methodology, business still remains in existence as the relatives or the members of
the family proceed with the business. Proprietor of the organization likewise gets the
opportunity to liberated from all the obligations brought about because of disappointment of
growth plan. In this method, relatives bear all misfortunes organization has engaged as a part
of growth plan.
Sell business to manager or employees
This is another alternative accessible for the organization in case the situation arise an
occurrence of exit of business. In this methodology, organization can sale its business to any
workers of organization or director on the off chance that they are keen on purchasing the

business of organization. Company can move all rights to the interested people with regards
to the business. This is an exceptionally helpful and convenient approach to deal the
organization's business. In this decision, all the misfortunes and the losses are likewise bear
by such purchasing party.
Based on the stated strategies, the Eagle Eye Solution can implement third strategy of
selling the business to manager or the employee. This strategy is very useful as it will create a
chance for the owner to become the advisor for the company. This strategy leads to achieving
success in the business as well as also enhancing and improving the brand image of the
company in the market.
CONCLUSION
It can be summed up from the above that there are various aspects which are required
to be covered while developing the growth plan. This report has determined the various
sources for procuring funds for the business requirements which includes angel investors,
private funding and so on. The various growth options being made available to the company
is also evaluated which helps it in achieving its growth objectives along with the assistance of
the growth plan which involves implementing the different strategies such as product
development and the market penetration in order to attain growth in the market. This will also
involves planning for the exit strategies in order to meet with the uncertain circumstances
which may arise in case the company faces failure. This will assist in overcoming those
losses. The exit strategy such as liquidation or keeping the business in the family members
along with other strategies which can be utilized for overcoming the losses caused by the
growth plan. Thus, effective planning is essential for the businesses for ensuring that it will
achieve its set objectives in the way as projected by it.

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