Planning for Growth

Planning for Growth

INTRODUCTION
In order to expand and grow in market it is important that businesses plan for their
growth strategically so that they can continue to survived and sustain in the competitive market
environment. The resources need to be prioritized and allocated in such a manner that they help
in achieving company goals of expansion and gain a competitive edge over its rivalries. Growth
planning also help in dealing with challenges faced by businesses during their growth in a
systematic manner (Zhou and et. al., 2017). In this report New Car Deals Ltd which is a family
run small enterprise in Houbury, UK is taken. The company help in arranging for car deals at
low prices without charging extra fees and also arrange for rental cars. It now plans open small
and easily accessible agent shops and offer car deals on luxury cars so that its market can
expand. In this report the ways through which companies can grow in market, sources of
acquiring funds, evaluation of growth opportunities etc. will be discussed in detail. Further a
business plan for the company will be made along with the ways through which succeed or exit
the market.
TASK 1
P1)
There are various strategies that can be used by New Car Deals so as to assess the
opportunities to grow in the market which can help it in increasing its sales and increase its
customer base. Some of the strategies are discussed as follows:
Porter’s generic model: Cost leadership: This strategy helps a company in becoming a cost leader in market by
lowering its prices so that the customers can be drawn towards low prices which can help
in enhancing the competitiveness of company. New Car Deals can use this strategy by
getting car deals arranged at lowest prices than its rivalries through which it can attract
more customers and increase its sales (Young, 2016). Differentiation: Through this strategy company offers distinguished products and
services to its customers so that customers can be attracted and competitive edge can be
gained in market. The company can differentiate its service by adding special features
like offering free 3 services to their customers making them better than their competitors.

 Cost focus: In this small market is targeted by lowering the cost so that target customers
can be drawn in a that particular market. New Car Deals can lower the prices of car deals
in Horbury so that only the local customers can be targeted.
 Differentiation focus: In this strategy differentiated products and services are offered in
niche market so that only a segment or targeted customers can be attracted. NCD can use
this strategy to offer differentiated services like 3 free services in Horbury. This will help
in making the strategy successful in a niche market.
From the above discussion it can be said that focus strategies can help New Car Deals Ltd in
amplifying the competitive benefit in Horbury so that high revenue can be earned in a particular
target market.
PESTLE analysis: This is a strategic management tool which helps businesses to analyse their
macro environmental factors so that they can take strategic decisions to deal with negative
impacts of these factors. Political: These are the rules and regulations of ruling government of country which
determines tax rates, trade tariffs etc. As UK is a politically stabilized country which
means that the its policies remain stable which can help NCD to expand its market
without getting worried about the fluctuations in country rules (Todes, 2014). Economical: These factors are related to country economy like unemployment rate,
interest rates, GDP, purchasing power etc. UK has a strong economy with its people
having high buying ability which means that New car deals can start making deals in
luxurious cars so that the customers can get cars deals at low prices. Social: These factors are related to the society of country which is composition of
different demographics, culture, religion, age, sex etc. As the people in UK have good
standard of living it can help New Car deals in expanding its business so that its
customers can be provided with profitable car deals. Technological: This factor is related with the rate of R&D that takes place in a country
and technological advancements in the country. UK is highly technologically innovative
which can help New car deals in using technology to reduce its prices through which car
deals are made so that high revenue can be earned on each deal. Legal: These are the laws of country which affect the operations of company so that they
can exist under the legal framework of country like following employee legislations etc.