Planning for Growth: Strategies, Funding, and Business Plan

Planning for growth

Contents
INTRODUCTION...........................................................................................................................3
Before expansion, growth option that need to be considered.................................................3
Growth’s model- Ansoff’s matrix..........................................................................................4
Investment appraisal and sources of funding.........................................................................5
Business plan along with Scaling plans..................................................................................7
Exit strategies and succession plan.......................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCE.................................................................................................................................17

INTRODUCTION
Small and medium business are this unit which operates their business solely, independent
which employer fewer than a given number of employees. Financial assets of such type of
business unit are also limited. To use all limited resources in optimized manner it is important to
formulate business plan and to gain growth, such unit have opportunity to enlarge their business.
The primary objective of this assignment is to understand about significance of planning for
growth (Sell and et.al., 2018). For this, an organisation is selected, namely, Guildford Tyre
company, founded in 1976 headquartered in UK. They serve different type of product such as
Vehicle Diagnostics, Fixation of brakes, batteries repairing engine failures. Further, it covers
growth option for expansion, Ansoff matrix, and investment appraisal with funding sources.
Lastly a business plan is formulated with exit and succession plan.
Before expansion, growth option that need to be considered.
To determine the growth opportunities is vital as it assist business to formulate effective
decision and strategies. Competitive advantage refers to benefits that is gain by business unit
from the rivalries of market. There are number of competitive advantage like resources,
capabilities and core competencies that can be gain by respective company to use strategies
effectively:
VRIO model: This framework is used by management team with the aim of assessment of
internal capabilities effectively (Thorpe, 2017). With relevance to chosen company, they use
their model to assess the opportunities and that are as follow:
Resources Valuable Rare Imitable Organised Impact
Financial
resources
Yes No No Yes High
Employee Yes Yes Yes Yes High
Supply chain Yes No Yes Yes Medium
Valuable- Valuable resources are those which adds value in company for improving
productivity and profitability. In context of chosen organisation its valuable resources are
financial resources, employees and the supply chain that assist company to gain all competitive
advantage and become successful.

Rare- These are those resources and competencies which are rare for organisation and
these add high values in market. Employees of selected company are considered as the rare as
they are skilled with advanced knowledge.
Imitable- This tends to intensity that is hold up by resources of company, also not being
imitate by others. For example financial resources of respective organisation are inimitable
whereas the employees and supply chain are imitable.
Organised- In business it is vital to organised all resources effectively and well manner for
gaining positive outcome. With relevance to selected company they organised their all resources
appropriately as they are able to work effectively (Fahed-Sreih and El-Kassar, 2019).
New product/ services- Guildford tyre delivers/ supply services or product that are related
with the automotive industry such as tyres of bus, car, with some other services like vehicle
diagnostic, fixation, batteries repairing engines failure, modifies exhaust and so on. With the help
of all these they are gaining huge growth and success at marketplace.
Growth’s model- Ansoff’s matrix.
To identify the growth opportunities is vital as it help business unit to grow their business
successfully while expansion. Explanation of growth model in context of chosen company are as
follow:
Ansoff’s Matrix- Number of organisation use this model with the aim of determination of
growth opportunities for expansion of business operation. As it is a time consuming process but
give relevant information that are needed for taking advantages of opportunities. It includes
basically four strategies and that are as follow:
Market penetration: This is the growth strategies that relies on existing product within
current market. This is considered as most appropriate strategies due to low risk association. In
context of Guildford Tyre they can use this strategies for their business.
Product development: This is associate with existing market but with a new product.
With the help of this growth strategies, respective company can assess new opportunity for
enlarging their business by enhancing product portfolio. This could help them to grasp more new
consumer and gain success in growth (Wang, 2019).
Market development: This growth strategy is related with the introduction of new
market with existing product. With the help of such type of business growth strategies,