Growth Opportunities and Funding Sources for Guildford Tyre Company

INTRODUCTION
Growth planning is defined as the strategic business activities that initiates with
identifying organisation's ability and allows to determine trading functions that are crucial for
progression within state to change that occurs within surrounding of market. In case firm want to
explore their enterprises at global market then it has to formulate plans in respect of various
aspects like resources, funds, product and many others (Jansen, 2017). Guildford Tyre Company
is chosen for this report, it is a leading firm that offers various types of product and services like
wheel aliment, mechanical repairing and many others. Study applies Ansoff's Growth matrix in
respect to chosen firm. Report also explains sources of funds and their suitability to business.
Instead of this, development of business plan and succession strategies for small enterprises with
its advantage and disadvantages are also discussed in this report.
TASK 1
P1 Evaluating various growth opportunities for Guildford Tyre Company
Small business obtain effective opportunity into competitive marketplace. For instance,
management have to formulate plan as well as strategy of the business for sustaining and
acquiring advantage from this. In Guildford Tyre Company, there are about 40- 50 staff. For the
business growth various factors are undertaken which are as follows:
Competitive advantage: It is considered as the circumstances in which firm product
same kinds of products or provides services at lower rate effectively an efficiently. This is
accountability of respective firm manager to design plan strategy for gaining competitive
advantage. Some of those are discussed below:
Competitive advantage as a Growth foundation
For obtaining the competitive advantage as growth foundation, respective company have
to evaluate various options so that correct strategies can be taken for the growth of business: Cost leadership: It aids firm to develop position for targeted marketplace by providing
low cost products (Burns, 2016). Guildford Tyre Company may utilise cost leadership
for analysing the market as well as targeting customers for understanding its needs.
Herein, product price is low as well as quality is high to grab the attention of more
consumers. This particular strategy is facilitating opportunities for enhancing the market
share and size for its enterprise within competitive market area.
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 Differentiation leadership: The product or services provide through respective company
is innovative which aids them to generate revenues by increasing number of customers.
With the assistance of such strategy, Guildford Tyre Company may create innovative
features into their product for entering within new target market. For example: in case
they do not able to perform any types of innovation in its tyre design as well as quality
then this may influence and motivate clients for products buying. Cost focus: Guildford Tyre Company can focus son niche market for providing product
or services at less cost. By using this tactic company can able to examine the marketplace
as well as its consumers needs and also make products at less cost (Irina, 2019). They
perform market analysis before manufacturing goods as well as develop products
accordingly. For example: Cost focus aids them to get knowledge regarding needs of
consumers so that they can able to formulate their products as per that. In this, there is
less chances of wastages as their goods are depends on customization.
 Differentiation Focus: Herein, firm mainly concentrate upon their targeted group to
design products through adding unique as well as creative features. Respective company
produce products or provides service through examining its targeted customers as well as
market requirements. With product differentiation, it can able to develop opportunity for
sustaining into competitive market with its creative and new goods that can aids them to
raise sales as well as profitability (Wolf and Floyd, 2017).
The strategy which is effective for Guildford Tyre Company for gaining more growth
opportunities is cost leadership as with the assistance of this they can analyse market and
customers needs as well as able to manufacture standard quality product at low cost.
Competitive advantage with growth opportunities
Within this growth opportunities, Guildford Tyre firm have to perform external analysis
with the assistance of PESTLE tool. It aids them to know about the growth of market, business
position, operations explanation and others.
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Sources: What is PESTEL and how does it help your organization succeed, 2019.