Planning for Growth: Evaluating Opportunities and Strategies for Expansion

Planning for growth

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK1.............................................................................................................................................3
P1) Considerations to evaluate growth opportunities.............................................................3
P2) Evaluate the opportunities of growth for entity by applying Ansoff growth matrix.......6
TASK2.............................................................................................................................................9
P3) Discuss potential sources of funding for business with their benefits and drawbacks....9
TASK3...........................................................................................................................................12
P4) Project a business plan for the growth that comprises financial information and strategic
objective for scaling up a business.......................................................................................12
TASK4...........................................................................................................................................15
P5) Examine exit/ succession options in context of small business for explaining the benefits
and drawbacks for each options...........................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Morden era of business environment is completely filled with various number of
opportunities for both large and small companies which are dealing in certain areas across United
Kingdom. But is has been notices that only those firms can get these opportunities which are
making strategies and planning for hitting the targets in small period of time. In which the
planning term reflects as a strategic business activity that is permitted and developed to plan and
track the growth and development of the business owner along with its revenue. It enables
business firm to allocate their resources in effective manner for adopting changes, for this the
improvement and development of strategies and plan. So that risk elements will be determined
easily which may arises due to changes in business environments (Rienzo and Chen, 2018). The
following report is based on Guildford Tyre Company. Which was founded in 1976. In this
report discussion about key consideration of small business is explained as how it puts impact on
growth and development of business unit. As well as evaluation of opportunities for growth with
the help of Ansoff’s matrix is included. Analysis of funding resources is also discussed.
Furthermore, business plan is devised with strategic objective and financial information with aim
of enhancement of business. At the end, exit or succession options are explained in context of
small business.
MAIN BODY
TASK1
P1) Considerations to evaluate growth opportunities
Growth opportunities refer as the options to expand business operations at wide level. It
can be done through launching new product or services and explore in a different market
segment (Girling, Senbel and Kellett, 2016). In context of business, there are ample of
opportunities for growth and success are available. For this, business owners can do networking,
undertake new and unique practices, upgrade their knowledgeable in order to carried out new
opportunities to enlarge business operations. There is huge investment required for growth and it
significantly affects existing brand value of company. In context of Guildford tyres, it is crucial
to consider following factors while exploring business functions:

Finance- Managers of respective company need to arrange require funds to undertake
growth opportunities. They need to analyse available money and then evaluate various sources
such as loans, personal saving, venture, capital to get required funds to expand operations.
Before selecting a suitable source, it is essential to monitor the additional cost such as interest,
dividend and many more. This will help to get necessary funds in minimum possible cost.
Required resources- There are ample of resources such as finance, employees, raw
material needed for growth of organization. Managers of Guildford tyres give due considerations
to this element while planning expansion. It is essential to get required resources in order to
expand business at wide level
BCG Matrix-
It is a framework that is used to evaluate the current performance of brand portfolio of a
company. It assists to formulate effective strategies in order to inflate sales as well as
profitability of organization. BCG is undertaken to prepare appropriate strategies by analysing its
current portfolio of products and services. It helps to take effective decisions to make necessary
investments to manage as well as expand business portfolio in an efficient manner. It was created
by Bruce Henderson in 1970 to evaluate the performance of its company. The matrix is based on
two quadrants market growth and market share of brand. In context of Guildford tyres four
crucial quadrants of this tool are discussed as under:
Dogs: These kinds of products acquire low market share in slowly growing market place.
It is not wise to invest in dogs as it may generate losses. Although some business units may turn
prove profitable in long run. Thus, there is requirement to monitor these products or services on
timely basis. In context of selected company their repair and maintenance services of heavy
vehicles falls under category.
Cash Cows- It comprises brands with higher market share but lower opportunities for
growth. These are the most profit generating brands of overall portfolio. Profit receive from here
can be invest in other brands to support their growth (Jafarnezhad, Salmanmahiny and Sakieh,
2016). Guildford tyres are known for its products vehicles diagnostic services and battery
repairing services within country thus they need to make necessary investment for future growth.
Stars-These brands are own higher market share and work in such a market place which
is growing rapidly. It has a potential to earn huge revenue because of higher share at market
place but there is a need to invest money to maintain its growth. The respective company needs