Planning for Growth in Rent-A-Car Enterprise: Key Considerations, Ansoff's Growth Matrix, Funding Sources, and Business Plan

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1: Evaluating the growth considerations and justifying the same for Rent-A-Car....................1
P2; Explaining the opportunities to grow using Ansoff's Growth Vector Matrix.......................3
P3 . Potential sources of funding available to businesses-...........................................................6
P4 – Preparation of business plan- ..............................................................................................9
P5 - The exit or succession options for Rent-a-car-...................................................................13
CONCLUSION-............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
A business enterprise performs operations to earn profit and grow steadily in market. It
states the goals, strategies and methods to reach new heights in market. The present case scenario
is based on the enterprise Rent-A-Car which is the largest car renting company in North America
which is a very famous brand. Report will outline different growth opportunities that a firm can
undertake using the Ansoff's matrix and critically evaluating risk involved with each of them. It
will also throw light on various sources of funding available to enterprise with pros and cons of
each and suggesting which source will be beneficial. Further, an in-depth business plan is
developed and how to apply the same to achieve objectives to scale up the business. Lastly, the
report will present different options available with company to exit industry or grow within
industry.
MAIN BODY
P1: Evaluating the growth considerations and justifying the same for Rent-A-Car
PESTEL Analysis of Rent-A-Car
Political Factors Political factors such as consistent regulatory
framework, international treaties, taxation
policies, etc., affects enterprise (Christodoulou
and Cullinane, 2019). Rent-A-Car should study
current trends of political changes. It can also
target the low tax market and earn high profits
for eliminating adverse impacts of the factor.
Economic Factors Growing economies provide opportunities to
Rent-A-Car to grow and diversify. The
growing GDP rate indicates the capability of
consumer to spend more. The expanding
financial markets provide easy access to the
capital.
Social Factors Social factors such as demographic trends,
cultural norms, spending habits, etc. affect the
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working of the organization. Demographic
levels help in selecting the correct target
market. Rent-A-Car can focus in high end
market where consumers are ready to purchase
luxury product at premium price.
Technological Factors Studying the technological environment will
lead company to better results. Development of
IT aids the company to adopt social media
marketing tools (Nandonde, 2019). With the
help of innovative technologies, concern Rent-
a-car can increase profits.
Environmental Factors US is implementing strict norms for
environment protection and waste
management. The company should take
necessary action to comply with such norms
and regulations, it can also focus on renewable
and reusable technologies for long term
profitability.
Legal Factors There are various laws for employee
protection, consumer protection, etc. Rent-A-
Car must have compliance with such laws to
operate in the country without any legal issues.
Porter's generic Model for examining Rent-A-Car
Cost Leadership: This strategy is adopted by enterprise to facilitate production level on
larger scale which will lead to cost reduction. Here, objective is to produce at a low cost to gain a
larger market share. A low cost product means reducing the production cost by improving
production techniques (Islami, Mustafa and Latkovikj, 2020). The firm has to continuously focus
on price reduction of the entire product line. Rent-A-Car must provide quality products at lower
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