Planning For Growth

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
A) History of Boston Consultancy Group matrix and GE/McKinsey matrix........................1
B) Difference between BCG and GE/McKinsey matrix........................................................2
C) Recommendations based on the evaluation of two matrix................................................4
D) Ansoff's growth vector matrix...........................................................................................5
E) Benefits and drawbacks of sources of finance...................................................................6
PART 2............................................................................................................................................8
Business plan..........................................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
All business organisations operates as an economy strives in order to achieve high growth
in near future through formulating and adopting adequate strategies and objectives. This helps in
gaining competitive advantages in the marketplace over other players. With the help of this,
company is capable to sustain for a longer period of time in the competitive marketplace.
Basically for the SME'S, planning for growth is necessary as it helps in enhancing their
operations as well as inflate a scope to become a large scale organisation. As it is termed as a
strategic activity that allows businesses in tracking their growth so that they can make effective
plans which will assist in increasing profitability as well as business expansion. This report based
on the analysis of growth planning which is done by the Brainlabs which is a small scale digital
marketing agency that means by high-velocity change and it engaged in test & learn approach to
help businesses in their growth. It is headquartered in Old Street Yard, London, United
Kingdom. The report incudes the key requirements during the analysis of growth opportunities,
assessment of growth options and opportunities which are available to the company. Also, it
contains sources of finance as well as exit strategies in a systematic business plan.
PART 1
A) History of Boston Consultancy Group matrix and GE/McKinsey matrix.
BCG Matrix:
This matrix was developed by Bruce D. Henderson for Boston consultancy group in 1970
to provides the marketing analysis and it is is a planning technique that is used by Brainlabs to
portray the brand's portfolio and potential in terms of relative market share and speed of market
growth (Rothaermel, 2017). Brainlabs uses this because it provides the complete analysis of that
in which brand the company should invest and which one to disinvest.
McKinsey/GE Matrix:
McKinsey and company developed the nine-CELL portfolio matrix in consulting with
General electric in 1970, for screening GE's large portfolio of strategic business unit, and that is
used by Brainlabs because it a structure that analyse business portfolio and provides the
strategical feedback that help at the time of investment by comparing industry attractiveness and
Business unit strength (Wakkee, 2015).

B) Difference between BCG and GE/McKinsey matrix.
Brainlabs is affected by Brexit, it is a withdrawal of United Kingdom with European
union that have a large impact on the SMEs thus, Brainlabs uses different tools and technique to
overcome with this lightly negative impact of Brexit that is defines below as:
Boston consulting group matrix: This matrix defines the portfolio of product and
services of Brainlabs, by defining the market share and market growth and assign some quadrant
to each product and services and plot them on the matrix that contain four quadrant that is as:
[ Source: The BCG matrix/ Boston matrix, 2018] Stars: These are those product and services of Brainlabs that generate a lot of cash and
maintains the growing position of the business and the star shifted to cash cow if market
slow downs. Cash cow: It generate a lot of cash in the business even if the market growth slows down
because it reduced the market pressure, thus extract minimum cash with less investment
(Rakićević, 2016). Dogs: It defines that some cash cows become dogs, provides some cash to the business
and potential as well. These are cheap resources that is kicked off by the Brainlabs.
 Question mark: It defines that product and service that allows little cash in the Brainlabs,
defines in which product the company must invest and turns to star.