Planning for Growth in Rent-A-Car: Evaluating Growth Opportunities, Ansoff's Matrix, Funding Sources, and Business Plan

PLANNING FOR GROWTH
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Table of Contents.
INTRODUCTION...........................................................................................................................3
P1: Evaluating of growth opportunities:......................................................................................3
P2: Growth opportunities applying Ansoff's matrix:...................................................................5
P3: Sources of funding:................................................................................................................7
P4: Business plan:........................................................................................................................9
P5: Succession options:..............................................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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INTRODUCTION
Small and medium enterprise (SME's) are independent businesses who employ a fewer
number of employees with a specific investment (Nurjaman, 2020). Planning for growth is
important to SME's as it provides an overview of how the business is performing as a whole and
helps to set up the priorities and growth targets for the future. In the given case study, Rent-A-
Car is business dealing in car hire founded by Jack Taylor over more than 55 years ago. It is the
largest car rental company with 68000 employees and a turnover of $14.1 billion.
This report will discuss the key considerations, various growth opportunities and their
evaluation that Rent-A-Car can consider by using Ansoff matrix. The various potential resources
which the company can use to access funding, the methods of the successions and
recommendations for the company will also be discussed. A business plan for the same will also
be prepared.
P1: Evaluating of growth opportunities:
The considerations for growth opportunities which Rent-A-Car can adapt to enhance its
market share can be evaluated as following:
Competitive advantage:
A competitive advantage is an approach used by the companies to outperform its
competitors and gain a competitive edge over them. It is considered a basis for the growth for
every company (Anwar, 2018). The given company can gain competitive advantage through the
use of its resources such as business's assets, capabilities it is the ability to utilize the resources
and its competencies which are integration and coordination of those capabilities.
Innovations:
Innovation refers to the procedure of creating or improving new products, processes,
attributes and services (Silvestre and Ţîrcă, 2019). The given a use various types of innovations
as a means for opportunity to grow: Incremental innovations: The company can either upgrade or introduce small
improvements in its existing products or services which can bring it the effectiveness and
competitive differentiation.
 Diffusion innovations: The company can introduce changes in its communication
channels, time, social systems and the innovations itself which will influence its
adaptation of new ideas and technologies (Dearing and Cox, 2018).
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Portfolio Strategies:
Through portfolio strategies the given company can use its assets to attain its financial
objectives. The company can use following portfolio strategies: Boston Consultancy Group Matrix: The company can use this matrix to plan its assets
through graphical representations of its products and services and decide what it should
keep and what should be invested or sold out (Bonaccolto and Paterlini, 2020).
 GE McKinsey matrix: The company can adopt this strategy through which it can use the
systemic approach to prioritize its investments among all the business units.
Growth options for Rent A Car:
The company can also use following emerging options for growth: Digital platforms: The company can use the digital platforms which are the combinations
of technologies which can enable it to deliver the digital business capital. The company
can offer its customers the business, financial and other services through online or mobile
channels. They are faster to launch and also involves low setup costs. However, data
security and privacy of the company can be at risk. Partnerships: Partnerships are the formal arrangements between two or more parties to
manage and share its management and profits (Gray and Purdy, 2018). The company
partner with the similar business and grow its market share in the industry. It will provide
better borrowing capabilities to the company and will provide more capital for business.
However, the company can face various issues like lack of stability and loss of autonomy. Franchising: Franchising is a technique for distribution of services and products by
involving a franchisor who implies trademark or trade name of a business of the
franchisee, who pays fee for operating the same business. Rent-A-Car can use the
technique of franchising through a popular brand in the similar business and increase its
customer base. Collaborations: Collaborations are the techniques of business where two or more
business entities work together to achieve a defined common objective of generating
revenue (Patania, Petri and Vaccarino, 2017). The given company can use collaborations
as it will help it in improving the flexibility, engaging employees and also to acc3elerate
business velocity. However, it can cause conflicts in working styles for the employees
and can cost more than the actual worth of the business.
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