(Doc) Planning for Growth Assignment Solved

Planning
for
growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1............................................................................................................................................3
P2 ...........................................................................................................................................6
TASK 2............................................................................................................................................8
P3............................................................................................................................................8
TASK 3............................................................................................................................................9
P4 ...........................................................................................................................................9
TASK4...........................................................................................................................................13
P5 .........................................................................................................................................13
CONCLUSION..............................................................................................................................15

INTRODUCTION
Every organization want to sustain in market for a long time duration for which they need
to conduct proper growth planning. That will include various factors such as market analysis,
identification of customers, designing of product, effective marketing and promotion activities
and many more. For growth an organisation can adopt various methods such as expand at new
location, introduce new product or technology and so on (Barbour and Deakin, 2012).
Organization taken for this assignment is Third-way Company they provide interior decoration
for offices services according to requirement of their customers. Their aim is to make offices best
like a commercial interior design within budget as well as time of their clients. Topics mentioned
in this report are factors which are consider by SME's while expanding business, method used
for generating funding and when these funding can be used. Along with this it will include
business plan design for growth as well as it explain about ways which can be adopt by SME's
for exiting from market.
TASK 1
P1
There are various factors which are need to evaluate when a company want to expand or
grow their business. In respect of Third-way Company they are planning to grow their business
for which they can analysis of several factors such as competitive advancement, market analysis
and so on, which are given below:-
Competitive Advantages- It refers to that situation when a customers prefer particular
company products and services in comparison to its competitors. It is generally attain when core
competencies of a business match to its opportunities (Beatley, 2014). This can be evaluate by
several method, in respect of Third-way company they adopt Porter's Generic Strategy model for
analysing foundation of growth and for identifying opportunity of growth they dopt PESTEL
analysis, which are mentioned below:-
Porter's Generic Strategy model:

 Cost Leadership- It is define as a situation when a company offer their products and
services at low prices as compare to their competitive company. It is generally used when
a firm is operating in huge market (Goodfellow, 2013). In respect of Third-way
Company, they will offer their services i.e. interior decoration to their clients at low price
in comparison to its competitive company such as Axel Vervoordt, Andrew Martin and
so on.
 Differentiation Leadership- It is define as a condition when a firm offer unique and
innovative product and services at huge market area. That will help them in attracting
customers and encouraging them to purchase their products and services. In respect of
respective company will provide attractive and latest interior options to their clients at
wide market area. By this they able to enhance their customer base who are loyal and
happy with respective company products.
 Focus- It is define as those strategy at which company develop strategies as well as plans
for niche market. At this company know their customers more effectively as compare to
their competitors (Keough, 2015). In respect of Third-way Company according to this
strategy they will decide cost their service cost at minimum rate as comparison to their
Illustration 1: Your Small Business Competitive Advantage
(Source: Your Small Business Competitive Advantage. 2019)

competitors and they also provide attractive as well as innovative designs but for the
niche market.
In respect of Third-way company most appropriate strategy for them is differentiation leadership
style. This is so because through it they can attract more customers and encourage them to
purchase their products.
PESTEL Analysis:
 Political- This factor describe about level at which government bodies intervenes on the
economy condition of country. It will various factors which impact on company such as
policies, foreign trade policy, tax policy, environmental law and many more (MacLeod,
2013). In respect of Third-way Company political stability of United Kingdom help them
in operating their business in effective manner. Along with this rules and regulation for
interior decoration companies at United Kingdom are business friendly which help them
in developing their business operations as well as functions.
 Economical- The respective factor will directly impact on the working of an organization
because it may increase as well as decrease profitability of the company. There are
several factors which are incurred with this factors such as economic growth, exchange
rate, interest rate, disposable income, inflation and many more. It is essential for
company to develop their products as well as services according to economic condition of
country, potential customers and company. In respect of respective company economic
condition of United Kingdom is strong which help Third-way in gaining high profitability
ratio and market shares.
 Social- It is also consider as socio culture factor which include attitude, belief and feel
share by population on which an organization is focusing. It will include various factors
such as age distribution, career attitude, population growth, taste and preference and so
on (Mahmoudi and et. al., 2013). In respect of respective company the need to develop
their product and services design according to latest trends and customers requirement.
Along with this they also need to consider culture while developing design so that they
attract customers in effective manner.
 Technological- The respect factor change on continuous basis and it is necessary for
company to consider this because through it they able to attract customers as well as also
able to develop products and services in effective manner. This will help them in

attracting customers and encourage them to purchase products. In respect of Third-way
Company, United Kingdom is developing and advance country where trends are change
on regular basis so it is essential for respective company to design interior according to
the latest trends. Through this they able to attract more and more clients and this will also
hep them in enhance their goodwill at worldwide level.
 Environmental- These are those factors which are influence factors which impact on
environment and ecological aspects. In respect of this now a day it is essential for every
company to conduct corporate social responsibilities (Mason, 2015). In which company
will adopt those process or technology which are environment friendly as well as those
are beneficial for environment. In respect of respective company they need to consider
several environment al factors which are related to United Kingdom such as climate
change, they must also use recyclable products, promote greenery through interior
decoration and many more.
 Legal- It refers to factor which include legal regulation such as health and safety act,
advertisement standard, construction law, human right, equal opportunities, production
labelling and pricing law and many more. In respect of Third-way Company they need to
follow all the legal practices which are develop by Government of United Kingdom so
that they conduct their work properly and effectively in legal manner.
By analysing these factors respective company able to identify growth opportunities that
help them in attaining their goal as well as objective in effective manner.
P2
It is necessary for an organisation to analysis its growth opportunities so that they can
expand their business in effective way (Mitchelmore and Rowley, 2013). For they can adopt
various method or models such as ansoff matrix, PESTEL analysis and so on. Through this they
able to develop strategies as well plans in effective manner. In respect of Third-way Company
they adopt Ansoff matrix, which is explain below:-

 Market Penetration: It is a situation when an organization want to expand its business
in existing market with their existing products and services. In respect of Third-way
Company they will enhance their promotion services at United Kingdom market so that
they can enhance their customers base and sustain in market for a long duration. If
respective company adopt this strategy they able to sustain or retain at potential
marketplace for long duration of time which help in gaining high market shares with
loyal customers. On the other side if they adopt this method they not able to expand their
business at international level.
 Product Development: At this method company will develop new products and services
for existing marketplace (The Ansoff Model, 2019). In context of respective company
they can enhance their services at their potential current market. For which they can
enhance their interior services for house and stores. If respective firm adopt this method
they able to enhance their customers base by attracting customers through new as well as
innovative products. On the other hand if respective company adopt respective mode they
need to conduct market analysis which is time taking as well as expensive for third-way
company.
Illustration 2: The Ansoff Model
(Source:The Ansoff Model. 2019)

 Market Development: It is define as a situation at which company will expand their
business in new marketplace. In respect of Third-way Company at this situation
respective company will develop strategies as well as plans for expanding in market
through which they can enhance their sales and profit. By adopting this mode Third-way
company able to expand their business at international level which helps in attracting
huge customers base (Beatley, 2014). On the other side if they adopt this they have to
conduct various things such as market analysis, product development, hire employees and
many more which is time taking.
 Diversification Strategy: It refers to the situation when an organization introduce new
product and services in order to expand in new market position (Rydin, 2013). In respect
of Third-way Company in this situation they will launch new services in the new market.
By this they able to retain their existing customers and also able to attract new customers.
If respective company adopt this method they able to expand at new marketplace with
new and innovative products range which leads to attracting huge rate of customers. On
the other hand of company adopt this they have to invest huge amount of money as well
as time. They also need to hire new employees according to requirement and need of
market.
By analysing all the situation it can determine that for Third- way company market
development is appropriate because through it they able to enhance their customers base. Along
with this it will also help them in gaining high profit ratio as well as market shares.
TASK 2
P3
Every organisation required proper funds or capital for conducting their business in
effective manner. For which they can adopt several method or sources of funding. Some major of
them which can adopted by Third-way Company are mentioned below:-
Love Funding: It refers to funding are provided by friends and family members of company's
owner. They provide funds or capital in form of debt, equity or in hybrid form (Schetke, Haase
and Kötter, 2012). There are effective source of generating capital because they trust as well as
easily convince to provide funding. Such as in respect of respective company, their owner can
borrow fund or amount from their family, friends and relative.

Advantage-
 They easily and quickly provide funds as well as these capital are interest free or at very
low rate as compare to others (Mahmoudi and et. al., 2013). They also easily convince to provide long duration for repayment as well as they also
provide loan without security or take less security by comparing others.
Disadvantage-
 This may create chance of loss for family and friend who is providing money.
 Due to this person put their love one money on risk and if any loss occur they will be
highly responsible.
Bank loan: It is define as most common type of loan which is taken by a person when they want
to gather money for a business. In this bank fixed the duration for which loan is providing such
as 3 years, 5 years, 10 years and so on (Shi and et. al., 2012). Along with this these type of fund
gathering method incurred interest rate. Such as in order to this respective company can take loan
from which is more secure as well as trustable mode.
Advantage-
 This type of source are flexible in nature and it can be acquire without liquidity. By generating capital through this ownership will remain in favour of owner of company.
Disadvantage-
 This type of fund generating method incurred burden of extra cost of good which is
known as interest rate (MacLeod, 2013).
 It incurred strict schedule of repayment.
TASK 3
P4
Business plan is defining as a written document which provide description about future
business activities of a firm. It also includes all the necessary information that provide guidelines
to the staffs regarding their roles and responsibility (Keough, 2015). In respect of Third-way
Company business plan develop by them for expanding their business in Dubai is mentioned
below:
Stage 1- Concept of business
Executive summary Third way company deals with public policy in order

to know their opinion about public events, issues and
many more. This concept of business plan describes
about respective organisation products as well services
(Goodfellow, 2013). In addition to this, it also
explains their mission and vision that help them to
succeed at marketplace. Along with this, it also
determine their strategic objective and operational
strategy. It also elaborate its unique selling proposition
in order to meet expectation of their customers.
Organization's products and services Third-way Company provide several services such as
designing, consultation, construction, decide and
design furniture, moving products and many more.
Mission and Vision of firm The mission of respective company is to design
workplace like commercial interior within budget and
time of their clients. The vision of this company is to
become one of the best interior brand of architecture
industry and expand their business worldwide.
Strategic objective The Strategic objective of respective company is that
they want to expand their business in Dubai in
upcoming 2 years and through it they want to expand
their profit by 40%.
Operational strategy Operation strategy of Third-way Company is that they
offer quality products and services to their clients.
Along with this they also design interior according to
their client’s budget and time.
Unique selling Proposition USP of Third-way company is that they design by
taking inspiration form updated technology as well as
they also highly consider understanding and
expectation of their customers.

Stage 2- The Industry/ market analysis
According to management of Third-way Company need to conduct market analysis and
for which they adopt SWOT analysis. Through which they able to know their effectiveness
which help them in sustain as well as expand in Dubai market:
Strength Weakness
 The respective company have strong
supply chain which provide them
material on time.
 They also have experienced and skilled
architects.
 There are very limited companies in
respective industry and in this there is
high risk of entry barriers.
 There are same offer of different
products. There is limited flexibility in
price of products and services.
 Respective company has to incurred
high cost of transportation.
Opportunities Threat
 They can expand their business in
different countries as well as online
medium.
 They can also provide their facilities
for house and stores also.
 In respective sector design and trends
are changing regularly.
 Insurance cost at Interior market is
enhancing day by day.
Stage 3- Financial Plan
Pre-launch cash budget (In £)
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500 4200
Total inflows 10000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800

Variable : Direct material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250
21100 22400 24600 24750 26250 19350
Post launch cash budget (In £)
Particulars Jan Feb Mar Apr
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000
Total inflows 9200 2000 7500 3000

Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500
Variable : Direct material 350 300 250 150
Total outflows 2850 1500 1750 2650
Net cash flow 6350 500 5750 350
Opening balance 0 6350 5850 11600
closing balance 6350 5850 11600 11950
May June July August September October November December
5000 6500 1200 3200 1500 8200 1250 3210
5000 6500 1200 3200 1500 8200 1250 3210
1100 1500 1200 600 500 500 1200 700
100 500 500 250 450 250 1300 500
1200 2000 1700 850 950 750 2500 1200
3800 4500 -500 2350 550 7450 -1250 2010
11950 15750 20250 19750 22100 22650 30100 28850
15750 20250 19750 22100 22650 30100 28850 30860
Jan Feb Mar Apr May June July
1200 5000 2500 4500 1500 3500 4200
1200 5000 2500 4500 1500 3500 4200

2000 2500 1500 2000 1500 2000 200
300 300 200 250 360 250 500
2300 2800 1700 2250 1860 2250 700
-1100 2200 800 2250 -360 1250 3500
30860 32160 32360 33660 35860 36010 37510
29760 34360 33160 35910 35500 37260 41010
Stage 4- Monitor and control
It is defined as last stage of business plan at which management of respective company
will analysis that each and every activity are perform properly in order to expand business in
Dubai. At this they will also conduct analysis of issues and problems and develop strategies to
control it properly.
TASK4
P5
There are same kind of phase that occur in a business at which owner need to take
decision related to sustain or exit from the marketplace. Exit planning is described as a method at
which owner of a company decide to sell their business to another company or investors. It can
be done through several ways such as reduce ownership from company, sell out unsuccessful
firm and so on. But along with this there is also option of succession at which company continue
their business operation and try to add on new features so that they sustain at market place. In
respect of respective company, they are facing some issues due to which they are facing lose. At
this situation they decide to take succession strategy for which they can adopt various methods
which are explain below:
Joint Venture- It is defined as a method or technique in which two organizations come
together and operate their business through proper legal agreement. In this situation, Third-way
Company can conduct collaboration with another architecture or interior company such as Axel

Vervoordt, Andrew Martin and so on. At this both the companies share their resources for
developing effective design for clients.
Advantage Disadvantage
 In this both the companies share their
cost and risk.
 It will also reduce the risk of political
situations as they will able to adopt
themselves as per the changes in
political policies.
 In this conflict situation may arise.
 It is generally little bit expensive in
nature.
Merger- It refers to situation at which two companies come together under legal laws
and then form new venture. By adopting this method company able to expand their business as
well as gaining high profitability. In respect of respective company, they can come together with
another company and operate at their potential marketplace.
Advantage Disadvantage
 It provides tax and finance benefit for
the companies.
 Help in gaining competitive
advancement.
 It generates loss of jobs at both the
companies.
 Productivity of small company
employees get reduce when merger
done with large company.
Therefore, from above it can be examined that merger is best choice for respective
company as this will help them in sharing their tax benefit as well as will also be able to gain
competitive advantage through which they will able to give tough competition to their
competitors.
Along with this there are some other options available for Third-way Company in which
help them in succeed at marketplace. From which some major of them are explain below:-
 Management layout:- It is define as a method at which respective company acquire
other company some portion or acquire whole business. This situation will occur when
company is gaining high ratio of market shares. It is beneficial for Third-way Company

because through it they conduct diversification for their stakeholders as well as through it
they able to manage continuity in effective manner. On the other hand it have some
disadvantage such as when respective company adopt it their owner not able to get high
price and many more.
CONCLUSION
By analysing above discussed point it can be determine and summarised that every
company want to expand their business so that they can sustain at a marketplace for time
duration. For which they need to conduct various things such as market analysis, customers’
identification, design products and services and many more. Along with this in in order to find
opportunities a firm can adopt Ansoff matrix model. Through which they can find the method for
expanding business and then they can develop business plan accordingly. By which they can
identify proper resources, funds, aim, mission and so on which are required by them in order to
attain their objective. Moreover, there are also some ways which can adopted by a firm when
they want to exit from marketplace.