Planning for Growth: Strategies and Funding Options for Knights and Duke Homes

This report discusses the growth opportunities and strategies for Knights and Duke Homes, a residential property consultancy. It explores Porter's generic model, PESTLE analysis, and Ansoff's matrix. It also discusses potential sources of funding for their expansion plan.

Planning for growth

INTRODUCTION
Planning for growth is stated as the tool of business in which various tool for the business
can be used in order to formulate effective plans so as to receive high overall productivity. This
is highly essential for the business to initiate using their resources to optimum level by this
procured resources can be used to maximum manner (Kumar, 2016). This report includes various
dimensions of growth planning in the background of Knights and Duke Homes. Knights and
Duke Homes is a residential property consultancy and they have real estate partnership with
leading companies. Knights and Duke Homes are headquartered in London, UK. The company is
having major objective of initiate their business in Birmingham in order to enhance their
customer base and revenue as well. This report is engraved with various development strategies
which can be used by Knights and Duke Homes and at last the exit strategies have been
elaborated so as to prevent business form failure.
TASK 1
Growth opportunities within organisation
With the major purpose to remain in the market along with superior position the major
dimension is to eliminate threats and upkeep prescribed opportunities as well so this can be
treated as catalyst and barriers can be removed. For receiving prominent competitive edge within
marketplace various strategies are to be adopted by Knights and Duke Homes which could be
helpful for them in making huge profits and dealing with market threats. These strategies are
associated with growth and expansion and are elucidated as under:
Porter’s generic model
Cost leadership: This strategy is stated as to manage the business by lowering the prices
and selling them on discounted rate within marketplace in order to win cost leadership market
(Islami, Mustafa and Latkovikj, 2020). This is a helpful strategy for the business by which sales
and revenues can be increased due to which competitive edge can be received in prominent
manner. In the context of Knights and Duke Homes this strategy can be utilised by them so as to

capture more market segments by lowering prices of their services and enhance cost leadership
aspect.
Differentiation: This strategy can be used in order to improvise overall sales and to
make the business offerings high differentiable from other within marketplace by which rivals
can be dealt in better way. For example in the context of Knights and Duke Homes as they are
providing differentiated services to their customer which is highly customisable and
approachable by customers so by this they are getting differentiated position within marketplace.
Cost focus: This strategy can be used so as to obtain business focus for some specific
market segment in order to enhance sale and target that market at prominent manner. With the
help of this strategy places such as Birmingham can be emphasised due to this their market
capturing size can be improvised and sales can be made better.
Differentiation focus: Within this strategy the businesses are focused to offer their
product at lower prices within a particular marketplace so as to receive prominent market edge.
In the context of Knights and Duke Homes this strategy can be used by them due to which they
will be able to tackle market in robust manner and by adopting effective controlling measures.
From the above detailed discussion this can be concluded that for Knights and Duke
Homes the best suitable strategy is cost leadership as by this high market segment can be
captured by them and high revenue can be earned as well.
PESTLE analysis
PESTLE is a strategic tool which is used to examine external environment factors of the
business in order to check their impact on business functions. This analysis is assisting
businesses in eradicating negative impacts of external factors by which success may be
hampered. In the context of Knights and Duke Homes PESTLE analysis is enumerated as under:
Political factor: These factors are associated with rules, regulation and political stability
of a country in which tax policies, governmental control is included. In the context of UK as the
country is having high political stability in which government is having high intervention to the
business such as real estate as they are linked with human benefits (Perera, 2017). On the other
government is providing their full fledge support to those companies who are willing to expand

their business due to which lesser difficulties are faced by them. Furthermore due to Brexit
implications in recent time instability is faced by the country which is creating high barrier for
EU and UK businesses.
Economical factor: These factors are associated with economic aspects such as GDP
rates, Employment rates, purchasing power, currency fluctuations, international trade norms and
many forth. Some of the major factors are used by Knights and Duke Homes in order to operate
their business in most effective manner. Due to implications of Brexit negative impact is seen on
buying behaviour of customer by this negative impact is seen on the business of Knights and
Duke Homes. So in order to deal with this factor the company is required to make robust
strategies in which they can get optimum output form their invested money.
Social factor: These factors are prima facie to the taste and preferences of customer
which is emphasised on different dimensions such as demographic area, age, gender, value and
many forth. In the context of UK people are willing to live in modern houses which are creating
immense opportunities for Knights and Duke Homes in their business expansion. Knights and
Duke Homes is engaged in providing property consultation services and their business is having
high popularity in UK so this factor is profitable foe them in dealing with huge customer in
appropriate manner.
Technological factor: These factors are associated with using emerging and latest
technology in the business in order to obtain high market power. In the context of UK their
population is highly adaptive in using new technology and within this Knights and Duke Homes
is having immense opportunities to design their manufactured home with latest technology so as
to attract high customer and to attain sustainability thereon. Similarly they are introducing
expertise in their business which is helping them to acquire high market share.
Legal factor: These factors are associated with laws and legislation made by government
and their impact over business functions. In order to avoid any law suits high enforceability is
existed of this factor within business due to which flexible business operations can be inculcated.
In the context of Knights and Duke Homes as the company is associated with property services
they are having high impact of this factor by which their functions are completed in effectual
manner.

Environmental factor: These factors are associated with usage of those business
techniques by which environment can be taken care. In the context of Knights and Duke Homes
the company is putting their high emphasise on this factor and using waste management principle
in their productions system so as to limit their wastages and use their procured resources in
optimal manner. Due to these techniques the company is able to receive high and distinct market
edge in order to survive for long term.
Ansoff’s matrix: This strategy is known as a strategic tool which is utilised by
businesses so as to choose their expansion plan by which high productivity and efficacy can be
attained by them. This tool is helpful in making the business to recognise the strategy which is
giving highest advantages and in new growth expansion plan profits can be earned by them. This
matrix has four basic growth strategies which are expounded as under:
(Source: What is Ansoff matrix?, 2020)
Market penetration: This strategy can be used by businesses in performing market
expansion in current market along with current offerings (Gurcaylilar-Yenidogan and Aksoy,
2018). This is used by businesses those are willing to expand their market in order to meet needs
and requirements of their customers. In the context of Knights and Duke Homes this strategy can
be beneficial for them as in meeting needs of their existing customer so as to get high customer

satisfaction. With the help of this profits can be improvised by them along with high
sustainability.
Market development: This strategy is used by businesses those are willing to tap into
some new market segment in order to enhance their customer base and acquire loyal customer
and profit as well. In the context of Knights and Duke Homes this strategy can be used by them
in order to expand their business in global periphery. This expansion strategy is rendering high
end opportunities to the company in order to get sustainability and business success for long run.
By unleashing various markets growth options can be increased due to which profit can be
enhanced in more effective manner.
Product development: This strategy is used by businesses those are willing to expand
their market by rendering new product to new market. In the context of Knights and Duke
Homes they can use this market expansion model in order to capture new customer in new
market by providing new product or service to them so as to cover huge market segments and
spread awareness about their offerings.
Product diversification: This is known as most risky expansion strategy in which
company get entered into new market along with a new product which is not related to original
offerings. In the context of Knights and Duke Homes the company can use this expansion
strategy in order to acquire new market segments by their new offerings. On the other hand this
expansion plan is highly risky so failure may cause ruining of overall brand image.
From the above discussion it can be concluded that most appropriate strategy for Knights
and Duke Homes is market development. By using this expansion strategy cost can be controlled
by them and high revenues can be earned. As the company is one of the largest property
consultant company so market expansion would lead them to unleash niche market due to which
their market capital can be enhance which resultantly provide them distinct market edge.
TASK 2
Potential sources of funding.

There are numerous methods by which funds can be gathered by business in order to
execute their expansion plan in more effective manner. Knights and Duke Homes are required to
gather their funds from market and these various methods are elucidated as under:
Internal sources of finance:
Within this source money is being gathered form internal dimensions of the company
such as selling of business assets and utilising retained earnings as well. Some of the advantages
and disadvantages of this method is elucidated as under:
Advantages Disadvantages
This source of funding is highly effective in
nature as it do not generate any liabilities for
the business (Gu, Jiang and Wang, 2016). So
Knights and Duke Homes can utilise this
method of financing by using their retained
earnings. No restrictions have been imposed on
spending investments by which high flexibility
can be created in business operations.
Within this method Knights and Duke Homes
may have lesser profits which can lead them to
bankruptcy. As this method is involved in
sacrificing huge amount of profit.
External sources of finance:
Within this source of financing funds are gathered by taking advantage of external
sources such as debentures, bank loans, venture financing and many more. In the context of
Knights and Duke Homes there are numerous methods which can be used by them in order to
raise funds during their expansion plan of Birmingham. Some of them are elucidated as under:
Bank loan: This is a process which is used so as to take loan from bank with an
agreement to repay the same with addition to some decided amount of interest. This method is
having certain advantages and disadvantages which are elucidated as under:
Advantages Disadvantage
 This is coming up as promoter in which
high assistance to the company is
 This is enhancing burden of liability to
the business due to which in

provided and acquired funds can be
used by knights and duke homes in the
manner they want to.
 Knights and Duke Homes are having
prominent position in the marketplace
due to which they will be able to repay
the loan on appropriate time.
development stage lesser profitability is
earned by Knights and Duke Homes.
 Due to rigid policies related to
repayment of loan and non-repayment
this may create negative image in the
marketplace. Bi and (Wang, 2018)
Bank overdraft: This is an approach which is provided by bank to their consumers.
Within this credit limit is being given to their clients that can be used by them in addition to their
bank balance by taking sum of interest from them. This method is pertained with some
advantages and disadvantages which are elucidated as under:
Advantages Disadvantages
 This is the most flexible method which
is having least paper work and fewer
processes and by this high easiness can
be created for Knights and Duke
Homes in obtaining funds.
 By this Knights and Duke Homes will
be able to record track of their financial
trades.
 This involves high rate of interest due
to which profitability can be hampered
of Knights and Duke Homes in
negative manner.
 Bank can ask any time for repaying the
bank overdraft which may generate
problem for Knights and Duke Homes
to arrange funds in a very short span of
time.
Crowd funding: Within this method funds are gathered form pool of people and those
are called crowd funders. This method is containing different advantages and disadvantages
which are elaborated as under:
Advantages Disadvantages
 This is helpful for Knights and Duke
Homes in promotion of their offerings
within public at large which is creating
 Negative image within marketplace can
be created in case of failure of

huge opportunities for enhancing their
customer base.
 This method provides feedbacks form
investors in which modifications can be
introduced in expansion plan and
effective relations with customer can be
created as well in order to upkeep their
needs and demands.
expansion plan.
 High risk is beard by companies which
may lead them to face heavy losses as
well.
Peer to peer lending: Within this loan is obtained from individual or financial institution
without involving any mediator. This method involves various pros and cons which are
elaborated as under:
Advantages Disadvantages
 This is providing high accessibility to
Knights and Duke Homes in obtaining
funds without facing any major
difficulty.
 The loan is obtained within this method
by paying less amount of interest due to
which profitability is not impacted.
 This is highly risky for high credit risk
is being obtained.
 No insurance is provided by the
government which evades protection of
borrower.
Venture finance: This is the form of equity financing in which with the help of venture
capital start-ups are provided funds. There are some advantages and disadvantages associated
with this method are explained as under:
Advantages Disadvantages
 This is providing high opportunity for
Knights and Duke Homes in expanding
their business in order to obtain long
term success.
 This source of financing involves high
expertise by whom suggestions can be
 This is a time taking process as venture
capitalist is hard to find.
 This may leads to under valuation of
overall value.

obtained by Knights and Duke Homes.
TASK 3
Business plan is defined as a written document in which goals and objectives of the
expansion plan is elaborated in detailed manner which is required to be followed by business
during its expansion (Mocking, Möhlmann and Palali, 2016). This involves detailed elaboration
of strategies in which action plan is to be inculcated in order to achieve overall objectives of
expansion plan. On the other hand this includes estimation of marketing activities in which
market is to be unleashed so as to enhance customer base and market share as well.
Executive summary: Knights and Duke Homes is a residential property consultancy and
they have real estate partnership with leading companies. Knights and Duke Homes are
headquartered in London, UK. The company is having major objective of start their business in
Birmingham in order to enhance their customer base and revenue as well. Knights and Duke
Homes is originated in UK and now they are willing to grab more market segment in order to
cover up more market regions.
Vision: The vision of Knights and Duke Homes is to lead their industry by providing
quality services and products associated with commercial and residential property services.
Mission: Mission of Knights and Duke Homes is to enhance their customer base by
providing economic pricing to them.
Goals: In the business plan the company is aiming at rendering high quality and
customised services to their customer in order to enhance size of their loyal customer.
Objectives: In current market expansion Knights and Duke Homes is planning to
enhance their customer base by 18% and sales by 20% within one year.
Company summary: Knights and Duke Homes were founded in 1896 by John
Knight, Howard Frank and William Rutley. The company is one of the largest property
consultants which are headquartered in London.

Products: Knights and Duke Homes is one of the largest property consultants within
global periphery. They are involved in providing customised services to their customer which is
helping them to receive a distinct market position.
STP framework: This model is used by Knights and Duke Homes in order to recognise
their profit and acceptability within marketplace. This model is used by Knights and Duke
Homes in order to make more profits and enhance their sales ratio as well.
Segmentation: This is the concept under which market is divided on the basis of several
aspects such as Demographic segmentation, Psychographic segmentation, Behavioural
segmentation and Geographic segmentation. Knights and Duke Homes is segmenting their
market on the basis of geographic segmentation. This is meeting their requirement of market
expansion and objective of the company can be fulfilled as well.
Targeting: Knights and Duke Homes is focused on making joint ventures with local
property consultants in order to capture larger areas within local and global periphery as well.
This is helping them in meeting up needs and demands of their customer in prominent manner.
Positioning: Knights and Duke Homes is willing to initiate their business at Birmingham
and for this efficient supply chain management is required to be made by them which could be
easily handling needs of their customer and providing them significant position within
marketplace (McKeever, 2016).
Funding: Knights and Duke Homes are taking funds by bank loan as this is the most
flexible method for them which are steady. By this method Knights and Duke Homes will be
able to obtain their required funds and expanding their business in Birmingham.
Strengths of Business: -
 Knights and Duke Homes is having high opportunity for leading the market as the
company is making ample cash flows.
 Knights and Duke Homes is dealing in rendering commercial and residential property
services within marketplace due to this they are capitalising brand image and their
customer base as well.

Resource Allocation: This is the procedure under which resources are allocated to the
expansion plan and various activities are included in order to provide maximum growth
opportunities for expansion.
Total Estimate Budget: In order to provide proper planning to the expansion plan Knights
and Duke Homes is making apt budget so as to complete their task in appropriate manner. Entire
resources are required to be controlled by each department in order to effectively execute the
plan of expansion.
Particular 30/06/20 (£) 30/06/21 (£) 30/06/22 (£)
Implementing technology cost 14000 14000 11000
Promotional expense 14000 12500 9900
Installation of machines 26500 11700 7700
Shop expense 12500 6800 10600
Training charges 12000 8000 8800
Total Cost 78000 53000 48000
Cash Flow Statement: The cash flow statement is a statement which contains record of
all the incoming and outgoing cash transactions for a particular period of time.
Particular 30/06/20 (£) 30/06/21 (£) 30/06/22 (£)
Sales 140000 150000 180000
Purchase -70000 -50000 -90000
Expenses -10000 -10000 -20000
Salarie -20000 -20000 -30000

Cash Surplus 40000 70000 40000
As per above statement, it can be observed that the company has better sustainability with
business and has surplus cash flow of 40000 in 2020, 70000 in 2021 and 40000 in 2022.
Monitoring and Controlling: This is the process which involves supervision and control of
all the performed activities in appropriate manner in order to guide the business for their
achievement of business success and growth as well. Knights and Duke Homes is taking help of
benchmarking and KPI in order to examine efficacy of their plan. (Ivanisevic and et. al., 2016)
TASK 4
Succession planning in business scenario means approach helpful for business in performing
and evaluating their plans and actions to carry on the business in aimed manner and optimize
organizational structure. Multiple succession options can be adopt by any business to overcome
existing losses and to expand their business operations. Some of the most known and common
succession options are mentioned and elaborated below -
 Merger: - Merger are type of business restructuring approaches under which a mutual
agreement is entered by two different existing organizations to merge and carry own
business operations together and establish a new organization. In this process, existing
organizations are closed and a new establishment is formed combining resources,
employees from both the existing one. Below given are some advantages and
disadvantages of the same.
Advantages Disadvantage
 By these approach financial figures of
the business can be improved and it
would benefit with enhancing the
market image. (Leonard and et. al.,
2017)
 This approach will bring lot of
complexities as part of and plenty of
legal procedures, which would increase
effort, rate of management.
 With merger of employees from 2
different organizations it would be

 New business management team would
be structured which will bring
effectiveness in the performance and
positive performance driven results can
be attained.
difficult to manage employees from
different backgrounds and belief.
 Acquisition: - In this approach of succession, an organization acquires ownership of
some other existing business organization or segment to expand its business operations.
Share of ownership required to be acquired for this is equal to or greater than 51%.
Similar to Merger this too has its own advantages and disadvantages and below given are
the same: -
Advantages Disadvantage
 In today’s generation share price are
fluctuating and keeps changing and any
news of acquisition will lead to higher
market expectations and help
increasing the overall business
valuation. (Abbas, 2018)
 Acquisition gets attracted larger
number of audience towards itself as it
will able to cover new requirement and
satisfy all the requirements of customer
in the prominent manner.
 There might be higher chances of
conflicts as different people from
different organization come together
and may have different opinions. There
might be resistance due to change.
 Due to high complexities in process
focus of the business might get
diverted and their original visions and
missions could be missed or evacuated
due to change in focus.
CONCLUSION
From the above detailed report this can be conclude that businesses are using various
methods of planning in which effective growth and expansion plan is made in order to capture
market segment in considerable manner (Grooms and Frimpong Boamah, 2018). Porter generic

strategy and Ansoff growth matrix is helpful in providing most appropriate strategy for the
business within expansion plan in order to inculcate more chances of marketplace success and to
retain their customer for longer period in order to get high term sustainability as well. With the
help of appropriate business plan and expansion plan high profitability and competitive edge can
be received by the business.

REFERENCES
Books and journals
Abbas, A., 2018. Contextual assessment of business exits under a gender lens: A social
embeddedness perspective (Doctoral dissertation, University of Glasgow).
Bi, X. and Wang, D., 2018. External sources of political connections: Financial advisors and
Chinese acquisitions. International Journal of Finance & Economics. 23(4). pp.705-
722.
Grooms, W. and Frimpong Boamah, E., 2018. Toward a political urban planning: Learning from
growth machine and advocacy planning to “plannitize” urban politics. Planning Theory.
17(2). pp.213-233.
Gu, Q., Jiang, W. and Wang, G.G., 2016. Effects of external and internal sources on innovation
performance in Chinese high-tech SMEs: A resource-based perspective. Journal of
Engineering and Technology Management, 40, pp.76-86.
Gurcaylilar-Yenidogan, T. and Aksoy, S., 2018. Applying Ansoff’S Growth Strategy Matrix To
Innovation Classification. International Journal of Innovation Management. 22(04).
p.1850039.
Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal. 6(1). p.3.
Ivanisevic, A., Katic, I., Buchmeister, B. and Leber, M., 2016. Business plan feedback for cost
effective business processes. Advances in Production Engineering &
Management. 11(3). pp.173-182.
Kumar, D., 2016. Enterprise growth strategy: vision, planning and execution. CRC Press.
Leonard and et. al., 2017. Policy drivers of farm succession and inheritance. Land use policy, 61,
pp.147-159.
McKeever, M., 2016. How to write a business plan. Nolo.
Mocking, R., Möhlmann, J. and Palali, A., 2016. Dependence on External Finance and SME
Survival. CPB Netherlands Bureau for Economic Policy Analysis.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.