Examining Growth Opportunities for Business Organization
VerifiedAdded on 2023/01/16
|19
|6022
|59
AI Summary
This report discusses the key considerations for examining growth opportunities for a business organization. It includes an analysis of competitive advantage, Ansoff growth matrix, feasible sources of funding, appropriate business plan, and exit options for a small-scale company.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Planning For Growth
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Contents
INTRODUCTION...........................................................................................................................4
TASK 1 .........................................................................................................................................4
P1 Assess key consideration for examining growth opportunities for the business
organisation.................................................................................................................................4
P2 Ansoff growth Matrix............................................................................................................8
M1 Discuss the options for growth by using range of analytical frameworks in order to
develop an understanding of competitive advantage in context of an organisation. ..................9
D1 Critically examine specific options as well as pathways for the growth & considered every
risk options and how they can be mitigated. ..............................................................................9
TASK 2 .......................................................................................................................................10
P3 Feasible sources of funding for small businesses................................................................10
M2 Examine potential sources of funding and justify the application of an effective funding
sources in the context of an organisation..................................................................................11
D2 Critically analyse the potential sources of funding with the help of justified arguments in
order to adopt the best and most suitable source of funding as per the needs and demand of
organisation. .............................................................................................................................11
TASK 3 ........................................................................................................................................12
P4 Appropriate business plan for company .............................................................................12
M3 Develop an effective business plan for the growth as well as secure investment, setting of
objectives, strategies and suitable frameworks in order to accomplish the objectives and goals.
...................................................................................................................................................14
D3 Present an effective and detailed business plan that helps in developing understanding of
how to formulate, apply as well as attain business objectives & goals in a successful manner.
...................................................................................................................................................14
TASK 4..........................................................................................................................................14
P5 Determine exit or succession options for small scale company..........................................14
M4 Examine the exit and succession options for a small scale business comparing &
contrasting the options and then develop valid recommendations. ..........................................15
INTRODUCTION...........................................................................................................................4
TASK 1 .........................................................................................................................................4
P1 Assess key consideration for examining growth opportunities for the business
organisation.................................................................................................................................4
P2 Ansoff growth Matrix............................................................................................................8
M1 Discuss the options for growth by using range of analytical frameworks in order to
develop an understanding of competitive advantage in context of an organisation. ..................9
D1 Critically examine specific options as well as pathways for the growth & considered every
risk options and how they can be mitigated. ..............................................................................9
TASK 2 .......................................................................................................................................10
P3 Feasible sources of funding for small businesses................................................................10
M2 Examine potential sources of funding and justify the application of an effective funding
sources in the context of an organisation..................................................................................11
D2 Critically analyse the potential sources of funding with the help of justified arguments in
order to adopt the best and most suitable source of funding as per the needs and demand of
organisation. .............................................................................................................................11
TASK 3 ........................................................................................................................................12
P4 Appropriate business plan for company .............................................................................12
M3 Develop an effective business plan for the growth as well as secure investment, setting of
objectives, strategies and suitable frameworks in order to accomplish the objectives and goals.
...................................................................................................................................................14
D3 Present an effective and detailed business plan that helps in developing understanding of
how to formulate, apply as well as attain business objectives & goals in a successful manner.
...................................................................................................................................................14
TASK 4..........................................................................................................................................14
P5 Determine exit or succession options for small scale company..........................................14
M4 Examine the exit and succession options for a small scale business comparing &
contrasting the options and then develop valid recommendations. ..........................................15
D4 Critical evaluation of the options for a small business organisation and decide an effective
course of action with the help of justified recommendations in order to support the
implementation. ........................................................................................................................15
Conclusion.....................................................................................................................................16
REFERENCES .............................................................................................................................17
course of action with the help of justified recommendations in order to support the
implementation. ........................................................................................................................15
Conclusion.....................................................................................................................................16
REFERENCES .............................................................................................................................17
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
INTRODUCTION
Every business organisation performed their business functions and operations at the
marketplace in order to generate huge amount of profitability and grow the business in an
appropriate manner. For this, managers of an organisation adopt different types of strategies and
actions plans as well as conduct ample number of market analysis so that they can develop
products and services accordingly to maintain their sustainability at the competitive marketplace
for a longer period of time. Along with this, management team of an organisation provide
guidance to the managers in order to perform their task in an effective manner and produce
positive outcomes for the business (Barbour and Deakin, 2012). Gekko Partners is chosen as the
base organisation in order to complete the whole report. It is an organisation which is based in
UK based is a small level marketing services company which highly offers their services among
the marketplace of UK. This is the report which consist of information on the significant
consideration which is concerned by the organisation in order to examine their growth.
Furthermore, it includes an explanation on various growth strategies consist in Ansoff’s matrix
which help in the growth of business organisation. In addition to this, there are various sources of
funding, succession and exist strategies and effective business plan are going to be discussed in
this report.
TASK 1
P1 Assess key consideration for examining growth opportunities for the business organisation.
It is said that every business organisation performs their business functions at the market in
order to attain grow and develop at the competitive marketplace. With the help of this,
organisation will be able to perform their all business functions in an effective manner and
maintain their sustainability at the market for a longer duration of time period (Beatley, 2014). In
the present context of Gekko Partners, this is the business entity which decides to do a business
expansion within the new marketplace with the help of offering unique and high quality services
to the customers related with the marketing & satisfy their needs and wants in an appropriate
manner. For this, a competitive analysis is going to be done by the management team which are
going to be discussed as follows:
Competitive analysis:
5
Every business organisation performed their business functions and operations at the
marketplace in order to generate huge amount of profitability and grow the business in an
appropriate manner. For this, managers of an organisation adopt different types of strategies and
actions plans as well as conduct ample number of market analysis so that they can develop
products and services accordingly to maintain their sustainability at the competitive marketplace
for a longer period of time. Along with this, management team of an organisation provide
guidance to the managers in order to perform their task in an effective manner and produce
positive outcomes for the business (Barbour and Deakin, 2012). Gekko Partners is chosen as the
base organisation in order to complete the whole report. It is an organisation which is based in
UK based is a small level marketing services company which highly offers their services among
the marketplace of UK. This is the report which consist of information on the significant
consideration which is concerned by the organisation in order to examine their growth.
Furthermore, it includes an explanation on various growth strategies consist in Ansoff’s matrix
which help in the growth of business organisation. In addition to this, there are various sources of
funding, succession and exist strategies and effective business plan are going to be discussed in
this report.
TASK 1
P1 Assess key consideration for examining growth opportunities for the business organisation.
It is said that every business organisation performs their business functions at the market in
order to attain grow and develop at the competitive marketplace. With the help of this,
organisation will be able to perform their all business functions in an effective manner and
maintain their sustainability at the market for a longer duration of time period (Beatley, 2014). In
the present context of Gekko Partners, this is the business entity which decides to do a business
expansion within the new marketplace with the help of offering unique and high quality services
to the customers related with the marketing & satisfy their needs and wants in an appropriate
manner. For this, a competitive analysis is going to be done by the management team which are
going to be discussed as follows:
Competitive analysis:
5
It refers to a framework adopted by the business entity in order to examine their strategies
and policies used by the competitors available at the marketplace. In reference to the chosen
organisation, management team of Gekko Partners are going to be ascertained the capability,
resource & competency of the organisation which are going to be explained as follows:
Resource: It has been analysed that the main and prime resources of the chosen
organisation is their skilled, competent & knowledgeable staff members which are highly
capable of doing their wok as per the needs and requirements of people, customers and the
company.
Capabilities: In reference to the Gekko Partners it has been said that the company is
enough capable of developing and providing unique and high quality marketing services to their
customers and clients & gaining gratification from their potential and regular customers (Chapin,
2012).
Competencies: It is said that the competency of Gekko Partners is that it provide
effective and high quality marketing services to their customers in order to create positive brand
image and expand its market position at the marketplace.
It has been analysed that the present company is effectively doing their business
functions within the market place of England, therefore they decide to expand their functions at
new market in order to enhance their sales and profitability. Before doing any kind of business
expansion and planning is required so that all the business functions will be carry out in an
appropriate manner. In this context, it has been said that there are ample number considerations
which need to be focused by the management team of SMEs such as Gekko Partners before
doing business expansion or entering into the new marketplace. All these essential elements are
going to be identified with the help of Porter’s Generic Strategies. This is the framework which
are going to be discussed as below in an appropriate and effective manner.
Porter's Generic Strategy
It refers to an analytical as well as strategic framework which includes ample number of
policies and strategies need to be focused by the management team of the company. This will
assist in gaining competitive advantages at the marketplace in an effective manner and within
limited duration of time period. all these strategies help SMEs in order to enhance their
performance and create positive brand image at the market area (Denton, Forsyth and
6
and policies used by the competitors available at the marketplace. In reference to the chosen
organisation, management team of Gekko Partners are going to be ascertained the capability,
resource & competency of the organisation which are going to be explained as follows:
Resource: It has been analysed that the main and prime resources of the chosen
organisation is their skilled, competent & knowledgeable staff members which are highly
capable of doing their wok as per the needs and requirements of people, customers and the
company.
Capabilities: In reference to the Gekko Partners it has been said that the company is
enough capable of developing and providing unique and high quality marketing services to their
customers and clients & gaining gratification from their potential and regular customers (Chapin,
2012).
Competencies: It is said that the competency of Gekko Partners is that it provide
effective and high quality marketing services to their customers in order to create positive brand
image and expand its market position at the marketplace.
It has been analysed that the present company is effectively doing their business
functions within the market place of England, therefore they decide to expand their functions at
new market in order to enhance their sales and profitability. Before doing any kind of business
expansion and planning is required so that all the business functions will be carry out in an
appropriate manner. In this context, it has been said that there are ample number considerations
which need to be focused by the management team of SMEs such as Gekko Partners before
doing business expansion or entering into the new marketplace. All these essential elements are
going to be identified with the help of Porter’s Generic Strategies. This is the framework which
are going to be discussed as below in an appropriate and effective manner.
Porter's Generic Strategy
It refers to an analytical as well as strategic framework which includes ample number of
policies and strategies need to be focused by the management team of the company. This will
assist in gaining competitive advantages at the marketplace in an effective manner and within
limited duration of time period. all these strategies help SMEs in order to enhance their
performance and create positive brand image at the market area (Denton, Forsyth and
6
MacLennan, 2017). All the strategies which are included in this model developed by Porter are
going to be discussed in a detail manner as follows:
Cost leadership: It refers to a strategy where business organisation develops high quality
goods and services within optimum cost in order to maintain positive image at the marketplace.
It is the strategy which is adopted by the organisation in order to gain competitive advantages at
the marketplace by providing low cost products and services to the customers. Therefore, it is
very essential for the managers to identify various sources for reducing the cost of the products
so that they can maintain the level of competition at the market area. In the present context of
Gekko Partners, managers of the company adopt this method so that they can reduce cost of the
services by controlling extra cost as well as develop services which are of high quality in order to
retain potential customers and to attract new clients towards the organisation.
Differentiation: It is the another strategy which is included in the Porter’s generic model.
According to this strategy it is required by the management team of the company to produce
innovative and unique commodity in order to gain competitive edge at the marketplace. This will
help them in developing trust and belief of customers and attract large number of new clients
towards the business organisation at the new market area (Eddleston and et. al., 2013). With the
help of using this strategy, managers of Gekko Partners will be able to develop loyalty among
the customers towards the company which help them in making their brand strong at the new
location. Along with this, it has also been said that by providing range of high quality, unique,
innovative and different marketing strategy company will be able to develop their reputation at
the market in an effective and appropriate manner.
Cost focus: It has been said that organisation who adopt this strategy mainly focuses on
niche market, where they enhance their understanding about the changes of market trends and
needs, wants & preferences of customers. By doing all these things, managers of the company
develop commodities which are of low cost and help them in satisfying the requirements of
clients in an effective manner. As a result, by adopting this strategy company will be able to
create their strong brand position at the market place which help them in gaining competitive
advantage. Hereby, the main emphasis of the chosen business entity is on the niche markets &
develop services which are of low cost according to the needs and wants of customers.
Therefore, by using the cost focus strategy, Gekko Partners will be able to meet the needs and
requirements of individuals in a positive manner (Galland, 2012).
7
going to be discussed in a detail manner as follows:
Cost leadership: It refers to a strategy where business organisation develops high quality
goods and services within optimum cost in order to maintain positive image at the marketplace.
It is the strategy which is adopted by the organisation in order to gain competitive advantages at
the marketplace by providing low cost products and services to the customers. Therefore, it is
very essential for the managers to identify various sources for reducing the cost of the products
so that they can maintain the level of competition at the market area. In the present context of
Gekko Partners, managers of the company adopt this method so that they can reduce cost of the
services by controlling extra cost as well as develop services which are of high quality in order to
retain potential customers and to attract new clients towards the organisation.
Differentiation: It is the another strategy which is included in the Porter’s generic model.
According to this strategy it is required by the management team of the company to produce
innovative and unique commodity in order to gain competitive edge at the marketplace. This will
help them in developing trust and belief of customers and attract large number of new clients
towards the business organisation at the new market area (Eddleston and et. al., 2013). With the
help of using this strategy, managers of Gekko Partners will be able to develop loyalty among
the customers towards the company which help them in making their brand strong at the new
location. Along with this, it has also been said that by providing range of high quality, unique,
innovative and different marketing strategy company will be able to develop their reputation at
the market in an effective and appropriate manner.
Cost focus: It has been said that organisation who adopt this strategy mainly focuses on
niche market, where they enhance their understanding about the changes of market trends and
needs, wants & preferences of customers. By doing all these things, managers of the company
develop commodities which are of low cost and help them in satisfying the requirements of
clients in an effective manner. As a result, by adopting this strategy company will be able to
create their strong brand position at the market place which help them in gaining competitive
advantage. Hereby, the main emphasis of the chosen business entity is on the niche markets &
develop services which are of low cost according to the needs and wants of customers.
Therefore, by using the cost focus strategy, Gekko Partners will be able to meet the needs and
requirements of individuals in a positive manner (Galland, 2012).
7
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Differentiation focus: It refers to the strategy where company mainly focuses on
creating unique and different products and services which help them in order to accomplish their
goals and objectives in an effective manner. This strategy stresses on developing a unique and
creative environment so that company will be able to enhance their sales and ratio and profit
margin. With the help of this strategy, Gekko Partners will be able to provide new and wide
range of marketing services to the customers and satisfy their needs and wants in an effective
manner.
With the help of above mentioned report it has been said that managers of Gekko
Partners adopt differentiation strategy so that they gain competitive advantages at the market
place and beat the level of competition by producing unique marketing services.
PEST Analysis
It refers to an analytical model which helps in enhancing the understanding of the
company about the external condition. Along with this, managers of the company will be able to
analysed the effect of all the external element on the company. In the present context of Gekko
Partners, all these elements are going to be discussed in a detail manner are as follows:
Political factor: It is considered as one of the most essential as well as crucial element
of macro environment which highly influence the overall performance of the business
organisation. It is the factor which helps in analysing that about what extent government interfere
in the business operations (Grover, Bokalo and Greenway, 2014). It has been analysed that the
political condition of England is quite stable which assist Gekko Partners by creating ample
number of opportunities in order to expand their business.
Economical factor: It refers to an element which help in identifying the economic
condition of a country where business expansion is going to be conducted. It consists of various
number of aspects related with the economic condition of the country, which includes interest
rate, inflation rate, growth rate and so on. With the assistance of strong economic situation of
England, Gekko Partners produces high quality, unique as well as innovative marketing
offerings.
Social factor: Another most essential element is social factor which includes demands
and requirements of customers. It has been said that the social factor creates the newest trends
prevailing among the population of the country. In relation with the chosen organisation which is
Gekko Partners, it has been identified that the company conduct market analysis on a continuous
8
creating unique and different products and services which help them in order to accomplish their
goals and objectives in an effective manner. This strategy stresses on developing a unique and
creative environment so that company will be able to enhance their sales and ratio and profit
margin. With the help of this strategy, Gekko Partners will be able to provide new and wide
range of marketing services to the customers and satisfy their needs and wants in an effective
manner.
With the help of above mentioned report it has been said that managers of Gekko
Partners adopt differentiation strategy so that they gain competitive advantages at the market
place and beat the level of competition by producing unique marketing services.
PEST Analysis
It refers to an analytical model which helps in enhancing the understanding of the
company about the external condition. Along with this, managers of the company will be able to
analysed the effect of all the external element on the company. In the present context of Gekko
Partners, all these elements are going to be discussed in a detail manner are as follows:
Political factor: It is considered as one of the most essential as well as crucial element
of macro environment which highly influence the overall performance of the business
organisation. It is the factor which helps in analysing that about what extent government interfere
in the business operations (Grover, Bokalo and Greenway, 2014). It has been analysed that the
political condition of England is quite stable which assist Gekko Partners by creating ample
number of opportunities in order to expand their business.
Economical factor: It refers to an element which help in identifying the economic
condition of a country where business expansion is going to be conducted. It consists of various
number of aspects related with the economic condition of the country, which includes interest
rate, inflation rate, growth rate and so on. With the assistance of strong economic situation of
England, Gekko Partners produces high quality, unique as well as innovative marketing
offerings.
Social factor: Another most essential element is social factor which includes demands
and requirements of customers. It has been said that the social factor creates the newest trends
prevailing among the population of the country. In relation with the chosen organisation which is
Gekko Partners, it has been identified that the company conduct market analysis on a continuous
8
basis and develop various marketing services which is enough capable of satisfying the needs
and wants of customers living within the country or nation.
Technological factor: In today’s competitive environment it is very essential for the
organisation to modify their technologies on a regular basis so that they can gain competitive
advantages at the marketplace (Hollenbeck, Noe and Gerhart, 2018). Due to advancement in the
technology, expectations of customers raises that the company produces high quality goods and
services and fulfil their needs and wants. In the present context of Gekko Partners, company
takes ample number of advantage with the help of technological advancements like they attract
large number of customers with the help of new digital trends.
P2 Ansoff growth Matrix
It is a tool which is adopted by an organisation to identify & develop effective strategies
which leads to growth. Ansoff matrix is also termed as product grid or market expansion matrix.
This matrix consists of four strategies that is product development, market penetration,
diversification and market development as well. This matrix provides proper guidance to
companies and due to this they can leads to success. The higher authorities of Gekko Partners
Ltd. adopt this framework at workplace in order to gain an insight about market conditions. This
assist them to make those plans which reaches company towards growth (Levy, 2016). The four
strategies of Ansoff matrix is mentioned below with relation to company:
Market Penetration: Herein, the higher authorities of an organisation suggested to offer
the same goods and services in the existing market with an aim to enhance growth of their
business. With reference to Gekko partners Ltd., its management team uses this strategy as they
offer the same product in the market of UK. They try to approach more customers with their
same product in order to raise sales and their profitability level.
Product Development: In this strategy, firms offer new products as well as services to
the existing market in order to attract more customers and to enhance their sales level. In context
to Gekko Ltd., the managers try to add new services in its portfolio which gives customer more
options to buy their brand. With this, it assists them to create awareness about its new offering at
market in a proper manner. Due to the creation of new services, more customers get attract
towards the company which directly leads to raise in its sales performance.
Market Development: Herein, an organisation targets new market with its same services
and product. In relation to Gekko partners Ltd., the management team starts to offer its products
9
and wants of customers living within the country or nation.
Technological factor: In today’s competitive environment it is very essential for the
organisation to modify their technologies on a regular basis so that they can gain competitive
advantages at the marketplace (Hollenbeck, Noe and Gerhart, 2018). Due to advancement in the
technology, expectations of customers raises that the company produces high quality goods and
services and fulfil their needs and wants. In the present context of Gekko Partners, company
takes ample number of advantage with the help of technological advancements like they attract
large number of customers with the help of new digital trends.
P2 Ansoff growth Matrix
It is a tool which is adopted by an organisation to identify & develop effective strategies
which leads to growth. Ansoff matrix is also termed as product grid or market expansion matrix.
This matrix consists of four strategies that is product development, market penetration,
diversification and market development as well. This matrix provides proper guidance to
companies and due to this they can leads to success. The higher authorities of Gekko Partners
Ltd. adopt this framework at workplace in order to gain an insight about market conditions. This
assist them to make those plans which reaches company towards growth (Levy, 2016). The four
strategies of Ansoff matrix is mentioned below with relation to company:
Market Penetration: Herein, the higher authorities of an organisation suggested to offer
the same goods and services in the existing market with an aim to enhance growth of their
business. With reference to Gekko partners Ltd., its management team uses this strategy as they
offer the same product in the market of UK. They try to approach more customers with their
same product in order to raise sales and their profitability level.
Product Development: In this strategy, firms offer new products as well as services to
the existing market in order to attract more customers and to enhance their sales level. In context
to Gekko Ltd., the managers try to add new services in its portfolio which gives customer more
options to buy their brand. With this, it assists them to create awareness about its new offering at
market in a proper manner. Due to the creation of new services, more customers get attract
towards the company which directly leads to raise in its sales performance.
Market Development: Herein, an organisation targets new market with its same services
and product. In relation to Gekko partners Ltd., the management team starts to offer its products
9
in more parts of United Kingdom so that companies customer base can be increase effectively.
They adopt various medium of communication to promote their existing product in other cities
(Lewis, 2013). In addition to this, increase in the customer base of company directly raise its
sales & profit level of Gekko partners Ltd.
Diversification: At this point, companies were suggested to target new market with the
new services and product. With reference to Gekko partners Ltd., the top level management first
analyse new market then offer new product because it takes high amount of capital and contains
high risk that is not possible for small industries as Gekko partners Ltd is also a small business.
After analysing the above strategies, it has been analysed that most suitable and feasible
strategy for Gekko partners is Market penetration. The reason to adopt this strategy is to grow its
business as company is small and did not invest huge capital. In order to enhance business
activities, the management team conducts market research that identifies which existing market
can be approached and beneficial for them. By the assistance of market research, the company
can raise its customer base that directly effect on its sales and profitability level positively.
M1 Discuss the options for growth by using range of analytical frameworks in order to develop
an understanding of competitive advantage in context of an organisation.
As per the above mentioned report, it has clearly been identified that one of the best and
most effective method used by Gekko partners Ltd. Is differentiated strategy which is an element
of porters generics strategy (MacLeod, 2013). This will assist the company in order to maintain
their sustainability at the marketplace in an appropriate manner and for a long period of time.
Along with this, with the help of market penetration strategy company will be able to grow at the
competitive marketplace.
D1 Critically examine specific options as well as pathways for the growth & considered every
risk options and how they can be mitigated.
Positive aspect of differentiation strategy is that company will be able to attract large
number of customers towards their organization which leads towards the growth of the company
at the marketplace. Whereas negative impact is that in order to adopt differentiation strategy
huge amount of fund is required by the top management authorities in order to innovate new and
unique services. For reducing such negative impact, managers need to examine the whole market
situation in advance so that they can satisfy the needs and wants of the customers.
10
They adopt various medium of communication to promote their existing product in other cities
(Lewis, 2013). In addition to this, increase in the customer base of company directly raise its
sales & profit level of Gekko partners Ltd.
Diversification: At this point, companies were suggested to target new market with the
new services and product. With reference to Gekko partners Ltd., the top level management first
analyse new market then offer new product because it takes high amount of capital and contains
high risk that is not possible for small industries as Gekko partners Ltd is also a small business.
After analysing the above strategies, it has been analysed that most suitable and feasible
strategy for Gekko partners is Market penetration. The reason to adopt this strategy is to grow its
business as company is small and did not invest huge capital. In order to enhance business
activities, the management team conducts market research that identifies which existing market
can be approached and beneficial for them. By the assistance of market research, the company
can raise its customer base that directly effect on its sales and profitability level positively.
M1 Discuss the options for growth by using range of analytical frameworks in order to develop
an understanding of competitive advantage in context of an organisation.
As per the above mentioned report, it has clearly been identified that one of the best and
most effective method used by Gekko partners Ltd. Is differentiated strategy which is an element
of porters generics strategy (MacLeod, 2013). This will assist the company in order to maintain
their sustainability at the marketplace in an appropriate manner and for a long period of time.
Along with this, with the help of market penetration strategy company will be able to grow at the
competitive marketplace.
D1 Critically examine specific options as well as pathways for the growth & considered every
risk options and how they can be mitigated.
Positive aspect of differentiation strategy is that company will be able to attract large
number of customers towards their organization which leads towards the growth of the company
at the marketplace. Whereas negative impact is that in order to adopt differentiation strategy
huge amount of fund is required by the top management authorities in order to innovate new and
unique services. For reducing such negative impact, managers need to examine the whole market
situation in advance so that they can satisfy the needs and wants of the customers.
10
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
TASK 2
P3 Feasible sources of funding for small businesses
It has been said that for every business organisation, funds play very essential role in order
to run the business functions in an effective and appropriate manner. Sources of capital or
funding defines as various options with the help of which company can easily gather sufficient
amount of money so that they can expand their business functions in a successful manner
(Mahmoudi and et. al., 2013). In the present context of Gekko Partners Ltd., high level of
authorities and owner of the organisation decides to do business expansion. For this, managers
are required to gather enough amount of money and they analyse the most appropriate source of
funding with the help of which they can perform their business operations in an effective
manner. Some of the most appropriate and potential sources of funding are going to be discussed
as follows along with their advantages and disadvantages:
Bank Loan: It refers to the total amount of funds which is credited by the financial
institution or by bank to the individual or to the business organisation against some
specific amount of interest in return. It has been said that bank loans are generally
provided to the people who have some type of security which they kept to the bank.
Reason behind this is that if there is any kind of issue arise in order to return the amount
by the person, bank can claim the amount from the particular security given by the
person. In reference to Gekko Partners Ltd., managers of the business entity adopt this
funding source as it is one of the safest method with the help of which company can raise
enough amount of funds (Mason, 2015).
Advantage: One of the primary advantage of this source of funding is that it is highly secured
method which includes all the necessary documentation which helps in ensuring the security of
the organisation. In addition to this, bank or financial institution provides ample number of
repayment options so that business entity can easily return the borrowed amount as per their
feasibility.
Disadvantage: But on the other hand one of the biggest drawback of this factor is that it is time
consuming process as verification and loan sanctioning takes lot of time.
Personal Saving: Apart from bank loan, a business owner can also take personal saving
option as the source of funding with the help of which they can enhance their business
11
P3 Feasible sources of funding for small businesses
It has been said that for every business organisation, funds play very essential role in order
to run the business functions in an effective and appropriate manner. Sources of capital or
funding defines as various options with the help of which company can easily gather sufficient
amount of money so that they can expand their business functions in a successful manner
(Mahmoudi and et. al., 2013). In the present context of Gekko Partners Ltd., high level of
authorities and owner of the organisation decides to do business expansion. For this, managers
are required to gather enough amount of money and they analyse the most appropriate source of
funding with the help of which they can perform their business operations in an effective
manner. Some of the most appropriate and potential sources of funding are going to be discussed
as follows along with their advantages and disadvantages:
Bank Loan: It refers to the total amount of funds which is credited by the financial
institution or by bank to the individual or to the business organisation against some
specific amount of interest in return. It has been said that bank loans are generally
provided to the people who have some type of security which they kept to the bank.
Reason behind this is that if there is any kind of issue arise in order to return the amount
by the person, bank can claim the amount from the particular security given by the
person. In reference to Gekko Partners Ltd., managers of the business entity adopt this
funding source as it is one of the safest method with the help of which company can raise
enough amount of funds (Mason, 2015).
Advantage: One of the primary advantage of this source of funding is that it is highly secured
method which includes all the necessary documentation which helps in ensuring the security of
the organisation. In addition to this, bank or financial institution provides ample number of
repayment options so that business entity can easily return the borrowed amount as per their
feasibility.
Disadvantage: But on the other hand one of the biggest drawback of this factor is that it is time
consuming process as verification and loan sanctioning takes lot of time.
Personal Saving: Apart from bank loan, a business owner can also take personal saving
option as the source of funding with the help of which they can enhance their business
11
growth. This is one of the method where there is no legal verification is required and the
owner can use money as per their need in a very quick manner.
Advantage: Major advantage is that it is one of the quickest method and there is no external
interference among the business functions. Apart from this, there is no requirement of any kind
of assurance about the money (Mitchelmore and Rowley, 2013).
Disadvantage: On the other hand, the major risk is that if there is any kind of loss to the
business the amount of money invested by the owner got wasted.
With the help pf above mentioned analysis, it has been concluded thar the best and most
suitable source of funding for the Gekko Partners Ltd. Is bank loan which is highly secured and
safe for the business entity.
M2 Examine potential sources of funding and justify the application of an effective funding
sources in the context of an organisation.
There are ample number of sources of funds with the help of which managers can gather
enough amount of money for performing their business functions. One of the best and most
suitable method is bank loan. By using this method in order to gather funds company will be able
to perform their business functions in a secure and safe manner (Moseley, 2013).
D2 Critically analyse the potential sources of funding with the help of justified arguments in
order to adopt the best and most suitable source of funding as per the needs and demand of
organisation.
As per the above mentioned, it has been concluded that out of various methods of
collecting funds one of the most easiest and safest method is bank loan. It has been said that
higher authority of the company can gather money as per the need and requirement of the
organization. With the help of bank loan, managers of the company securely perform their
activities at the competitive marketplace.
TASK 3
P4 Appropriate business plan for company
Business plan is developed by the higher authorities of the organisation which helps the
staff member in order to perform their business functions. It is a type of blueprint which includes
strategies and policies of the company which need to be followed by them in near future. In the
12
owner can use money as per their need in a very quick manner.
Advantage: Major advantage is that it is one of the quickest method and there is no external
interference among the business functions. Apart from this, there is no requirement of any kind
of assurance about the money (Mitchelmore and Rowley, 2013).
Disadvantage: On the other hand, the major risk is that if there is any kind of loss to the
business the amount of money invested by the owner got wasted.
With the help pf above mentioned analysis, it has been concluded thar the best and most
suitable source of funding for the Gekko Partners Ltd. Is bank loan which is highly secured and
safe for the business entity.
M2 Examine potential sources of funding and justify the application of an effective funding
sources in the context of an organisation.
There are ample number of sources of funds with the help of which managers can gather
enough amount of money for performing their business functions. One of the best and most
suitable method is bank loan. By using this method in order to gather funds company will be able
to perform their business functions in a secure and safe manner (Moseley, 2013).
D2 Critically analyse the potential sources of funding with the help of justified arguments in
order to adopt the best and most suitable source of funding as per the needs and demand of
organisation.
As per the above mentioned, it has been concluded that out of various methods of
collecting funds one of the most easiest and safest method is bank loan. It has been said that
higher authority of the company can gather money as per the need and requirement of the
organization. With the help of bank loan, managers of the company securely perform their
activities at the competitive marketplace.
TASK 3
P4 Appropriate business plan for company
Business plan is developed by the higher authorities of the organisation which helps the
staff member in order to perform their business functions. It is a type of blueprint which includes
strategies and policies of the company which need to be followed by them in near future. In the
12
present context of Gekko Partners Ltd., an effective business plan is developed by the mangers
which includes ample number of elements. Some of these elements are going to be discussed as
follows:
Overview of the company: In the present report Gekko Partners Ltd. Is chosen as the
base company which is a United Kingdom based marketing organisation works at small level. It
is an organization which emphasises on providing attractive marketing services to their
customers in order to enhance their sales and profitability (Pred, 2017). In the current
environment, company operates its business functions within the marketplace of UK where they
use social media platform for promotion so they can influence large number of clients.
Vision & Mission statement: Vision statement of the company is “To become one of the
best marketing organisation in the whole wide world”. Where as mission statement is “To offer
unique and high quality services to the clients in order to maximize their profits”.
Situational market analysis: In the present context of Gekko Partners Ltd. it has been
said that managers of the company conducted a situational analysis so that they can examine
their weaknesses and develop them into their strength (Schetke, Haase and Kötter, 2012). Below
mentioned are the strength and opportunities of the company:
Strengths Opportunities
the managers of Gekko Partners Ltd.
adopt advanced technologies which
attracts the clients as they provide high
quality service to their customers in a
limited time period.
By adopting new market place,
company will be able to attract large
number of new customers towards
them.
Apart from this, company can also
expand their functions by focusing on
individuals available in the periphery
geographical area of UK marketplace.
13
which includes ample number of elements. Some of these elements are going to be discussed as
follows:
Overview of the company: In the present report Gekko Partners Ltd. Is chosen as the
base company which is a United Kingdom based marketing organisation works at small level. It
is an organization which emphasises on providing attractive marketing services to their
customers in order to enhance their sales and profitability (Pred, 2017). In the current
environment, company operates its business functions within the marketplace of UK where they
use social media platform for promotion so they can influence large number of clients.
Vision & Mission statement: Vision statement of the company is “To become one of the
best marketing organisation in the whole wide world”. Where as mission statement is “To offer
unique and high quality services to the clients in order to maximize their profits”.
Situational market analysis: In the present context of Gekko Partners Ltd. it has been
said that managers of the company conducted a situational analysis so that they can examine
their weaknesses and develop them into their strength (Schetke, Haase and Kötter, 2012). Below
mentioned are the strength and opportunities of the company:
Strengths Opportunities
the managers of Gekko Partners Ltd.
adopt advanced technologies which
attracts the clients as they provide high
quality service to their customers in a
limited time period.
By adopting new market place,
company will be able to attract large
number of new customers towards
them.
Apart from this, company can also
expand their functions by focusing on
individuals available in the periphery
geographical area of UK marketplace.
13
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Formulation of budget: Next stage of the business plan where manager of Gekko
Partners Ltd. are required to prepare an effective budget plan for the business functions (Todes,
2012). Budget of the company are as follows:
As per the above mentioned cash flow statement, it has been identified that Gekko
Partners Ltd. pays their taxes on a regular basis whereas their overall income is almost $72001.
Identification of targeted market: In this context, targeted customers of the company is
the local individuals of the UK market place.
Allocation of resources: It has been analysed that allocation of all the resources are going
to be done on the basis of needs and requirements of every department within the organization.
14
Partners Ltd. are required to prepare an effective budget plan for the business functions (Todes,
2012). Budget of the company are as follows:
As per the above mentioned cash flow statement, it has been identified that Gekko
Partners Ltd. pays their taxes on a regular basis whereas their overall income is almost $72001.
Identification of targeted market: In this context, targeted customers of the company is
the local individuals of the UK market place.
Allocation of resources: It has been analysed that allocation of all the resources are going
to be done on the basis of needs and requirements of every department within the organization.
14
Implementation & controlling of plan: This is the plan which is going to be
implemented by the managers in an effective manner as well as monitoring and controlling of the
plan is done by the management team on a day to day basis (Valler, Phelps and Wood, 2012).
M3 Develop an effective business plan for the growth as well as secure investment, setting of
objectives, strategies and suitable frameworks in order to accomplish the objectives and
goals.
Above mentioned is a business plan with the help of company will be able to conduct their
business functions in an effective manner and produce favourable outcomes within given time
period. In a business plan various strategies, policies are developed so that high quality goods
and services will be produced (Ward, 2016). Apart from this, effective frameworks are used by
the managers which will assist in gaining growth and success at the competitive marketplace.
D3 Present an effective and detailed business plan that helps in developing understanding of how
to formulate, apply as well as attain business objectives & goals in a successful manner.
By using PEST analysis, managers will be able to know the external environment before
expanding their business functions. Along with this, differentiation strategy is one of the most
suitable strategy for the company in order to attract large number of customers towards the
company as they provide unique and innovative services to their clients.
TASK 4
P5 Determine exit or succession options for small scale company
There may be number of objectives for which a company is Incorporated. One of the major
reasons is competitive advantage. There comes a stage at which small scale company wish to
achieve a balance by minimising financial burden and maximizing position in the market.
Therefore, it formulates succession strategy. Some of the suitable options for Gekko Partners
Ltd. Have been elaborated below along with merits and demerits:
Internet- With increasing number of people active on internet, it becomes easy for companies to
persuade its customer and increase the market share by reaching them. Products and services can
easily be promoted through this option (Ziari and et. al., 2012). The advantage is that awareness
of the product can be spread in a prompt manner. However, disadvantage is the cyber crimes.
Merger and acquisition- Through this is strategy, Gekko can merge with other company for the
purpose of expanding the business. It can help in in finding solution for financial issues. It gives
15
implemented by the managers in an effective manner as well as monitoring and controlling of the
plan is done by the management team on a day to day basis (Valler, Phelps and Wood, 2012).
M3 Develop an effective business plan for the growth as well as secure investment, setting of
objectives, strategies and suitable frameworks in order to accomplish the objectives and
goals.
Above mentioned is a business plan with the help of company will be able to conduct their
business functions in an effective manner and produce favourable outcomes within given time
period. In a business plan various strategies, policies are developed so that high quality goods
and services will be produced (Ward, 2016). Apart from this, effective frameworks are used by
the managers which will assist in gaining growth and success at the competitive marketplace.
D3 Present an effective and detailed business plan that helps in developing understanding of how
to formulate, apply as well as attain business objectives & goals in a successful manner.
By using PEST analysis, managers will be able to know the external environment before
expanding their business functions. Along with this, differentiation strategy is one of the most
suitable strategy for the company in order to attract large number of customers towards the
company as they provide unique and innovative services to their clients.
TASK 4
P5 Determine exit or succession options for small scale company
There may be number of objectives for which a company is Incorporated. One of the major
reasons is competitive advantage. There comes a stage at which small scale company wish to
achieve a balance by minimising financial burden and maximizing position in the market.
Therefore, it formulates succession strategy. Some of the suitable options for Gekko Partners
Ltd. Have been elaborated below along with merits and demerits:
Internet- With increasing number of people active on internet, it becomes easy for companies to
persuade its customer and increase the market share by reaching them. Products and services can
easily be promoted through this option (Ziari and et. al., 2012). The advantage is that awareness
of the product can be spread in a prompt manner. However, disadvantage is the cyber crimes.
Merger and acquisition- Through this is strategy, Gekko can merge with other company for the
purpose of expanding the business. It can help in in finding solution for financial issues. It gives
15
rise to financial synergy and usage of combined resources. On the other hand, there may be
increase in conflicts because of one single business.
M4 Examine the exit and succession options for a small scale business comparing & contrasting
the options and then develop valid recommendations.
Internet is an effective tool which is also cost effective. It is easy to use and make customer
understand about the products. It can grease the profit because the amount of expenses are low.
But, merger and acquisition can prove to be an expensive method as it involves a lot of
investment and time. The number of months included in this can be negative for the business as
this can reduce the profits in that time (Barbour and Deakin, 2012). It can be recommended that
every company should consider factors such as investment, costs and target profit before opting
for one option. It is important to earn profit in order to recover the expenses. Furthermore, there
should be detailed planning and research before choosing one option to be implemented within
the organisation. Gekko can use social sites platforms such as Facebook, Instagram as well as
have its own website to attract customers.
D4 Critical evaluation of the options for a small business organisation and decide an effective
course of action with the help of justified recommendations in order to support the
implementation.
The above mentioned methods i.e. internet and merger and acquisition are effective and have
their own benefits and disadvantages. Due to the digital transformation, the use of internet has
increased with the time and large number of people depends on the exchange of information
through internet. It can proved to be useful because it requires less investment as compared to
merger and acquisition. On the other hand, merger and acquisition is a time consuming process
as well as need a good amount of investment in order to complete the procedure. Unlike internet,
the business is very much tangible and physical which continuous to restore the trust of
customers. There are less chances of Cyber crimes or other issues (Beatley, 2014). Therefore,
small company like Gekko it is recommended that it should use internet for increasing the
market share leading to higher profit. For this purpose, it can make plans with the manager and
higher team who can look after the technological aspects. Followed by estimation of the budget.
16
increase in conflicts because of one single business.
M4 Examine the exit and succession options for a small scale business comparing & contrasting
the options and then develop valid recommendations.
Internet is an effective tool which is also cost effective. It is easy to use and make customer
understand about the products. It can grease the profit because the amount of expenses are low.
But, merger and acquisition can prove to be an expensive method as it involves a lot of
investment and time. The number of months included in this can be negative for the business as
this can reduce the profits in that time (Barbour and Deakin, 2012). It can be recommended that
every company should consider factors such as investment, costs and target profit before opting
for one option. It is important to earn profit in order to recover the expenses. Furthermore, there
should be detailed planning and research before choosing one option to be implemented within
the organisation. Gekko can use social sites platforms such as Facebook, Instagram as well as
have its own website to attract customers.
D4 Critical evaluation of the options for a small business organisation and decide an effective
course of action with the help of justified recommendations in order to support the
implementation.
The above mentioned methods i.e. internet and merger and acquisition are effective and have
their own benefits and disadvantages. Due to the digital transformation, the use of internet has
increased with the time and large number of people depends on the exchange of information
through internet. It can proved to be useful because it requires less investment as compared to
merger and acquisition. On the other hand, merger and acquisition is a time consuming process
as well as need a good amount of investment in order to complete the procedure. Unlike internet,
the business is very much tangible and physical which continuous to restore the trust of
customers. There are less chances of Cyber crimes or other issues (Beatley, 2014). Therefore,
small company like Gekko it is recommended that it should use internet for increasing the
market share leading to higher profit. For this purpose, it can make plans with the manager and
higher team who can look after the technological aspects. Followed by estimation of the budget.
16
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Conclusion
With the help of above mentioned report, it has been concluded that every business entity
wants to get success and growth at the competitive marketplace which is not attained by them
without proper planning. It has also been identified that it is very essential for the management
team of the company to provides funds in order to plan all the activities in an effective manner.
Along with this, it has been said that with the help of PESTLE analysis, managers of the
organization will be able to identify all the external market that which are the favorable ones and
unfavorable market situation. It has also been said that one of the most feasible growth strategy
is Market penetration as it is time and cost effective. At the end, it has been analyzed that bank
loan is one of the most beneficial method for gathering funds in order to perform their business
functions at the competitive market area.
17
With the help of above mentioned report, it has been concluded that every business entity
wants to get success and growth at the competitive marketplace which is not attained by them
without proper planning. It has also been identified that it is very essential for the management
team of the company to provides funds in order to plan all the activities in an effective manner.
Along with this, it has been said that with the help of PESTLE analysis, managers of the
organization will be able to identify all the external market that which are the favorable ones and
unfavorable market situation. It has also been said that one of the most feasible growth strategy
is Market penetration as it is time and cost effective. At the end, it has been analyzed that bank
loan is one of the most beneficial method for gathering funds in order to perform their business
functions at the competitive market area.
17
REFERENCES
Books and Journals
Barbour, E. and Deakin, E. A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Chapin, T. S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1). pp.5-15.
Denton, G., Forsyth, M. and MacLennan, M., 2017. Economic planning and policies in Britain,
France and Germany. Routledge.
Eddleston, K. A., and et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Galland, D., 2012. Is regional planning dead or just coping? The transformation of a state
sociospatial project into growth-oriented strategies. Environment and Planning C:
Government and Policy. 30(3). pp.536-552.
Grover, B. E., Bokalo, M. and Greenway, K. J., 2014. White spruce understory protection: from
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Hollenbeck, J. R., Noe, R. A. and Gerhart, B. A., 2018. Human resource management: Gaining
a competitive advantage. McGraw-Hill Education.
Levy, J. M., 2016. Contemporary urban planning. Taylor & Francis.
Lewis, W. A., 2013. Theory of economic growth. Routledge.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mahmoudi, P., and et. al., 2013. Space matters: the importance of amenity in planning
metropolitan growth. Australian Journal of Agricultural and Resource Economics.
57(1). pp.38-59.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Pred, A., 2017. City-systems in advanced economies: past growth, present processes and future
development options. Routledge.
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
18
Books and Journals
Barbour, E. and Deakin, E. A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Chapin, T. S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1). pp.5-15.
Denton, G., Forsyth, M. and MacLennan, M., 2017. Economic planning and policies in Britain,
France and Germany. Routledge.
Eddleston, K. A., and et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Galland, D., 2012. Is regional planning dead or just coping? The transformation of a state
sociospatial project into growth-oriented strategies. Environment and Planning C:
Government and Policy. 30(3). pp.536-552.
Grover, B. E., Bokalo, M. and Greenway, K. J., 2014. White spruce understory protection: from
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Hollenbeck, J. R., Noe, R. A. and Gerhart, B. A., 2018. Human resource management: Gaining
a competitive advantage. McGraw-Hill Education.
Levy, J. M., 2016. Contemporary urban planning. Taylor & Francis.
Lewis, W. A., 2013. Theory of economic growth. Routledge.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mahmoudi, P., and et. al., 2013. Space matters: the importance of amenity in planning
metropolitan growth. Australian Journal of Agricultural and Resource Economics.
57(1). pp.38-59.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Pred, A., 2017. City-systems in advanced economies: past growth, present processes and future
development options. Routledge.
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
18
Ziari, I., and et. al., 2012. Integrated distribution systems planning to improve reliability under
load growth. IEEE Transactions on power delivery. 27(2). pp.757-765.
19
load growth. IEEE Transactions on power delivery. 27(2). pp.757-765.
19
1 out of 19
Related Documents
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.