Planning For Growth And Business (PDF)

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1) ...............................................................................................................................................1
P1) Studying evaluation of growth opportunities and considerations within organization........1
P2) Design a Ansoff's growth vector matrix in order to examine growth opportunities. ..........4
LO 2.................................................................................................................................................5
P3) Sources of funding available to businesses and their benefits and drawbacks.....................5
LO 3.................................................................................................................................................6
P4)_Frame a business plan for growth which covers financial information and strategic
objectives for scaling up a business in the marketplace. ............................................................6
LO 4.................................................................................................................................................7
P5) Assess exit or succession options for a small business explaining benefits and drawbacks 7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Planning for growth can be stated as formulating business tactics so that organization can
grow and flourish in the international market effectively. By planning this company can attain
competitive advantages over rivalry in the competitive world. Effective planning growth helps
the organization to accomplish set objectives so that huge profits can be gathered. Firm planning
for growth aid the business to expand in distinguished sector which is a positive sign in the open
market place. This report is based on Guildford tyre company which is a private firm in UK. It
came into existence in the year 1976 and are successfully serving effective services to their
customers. This assignment covers growth opportunities prevailing in the market place. Ansoff's
growth vector Matrix is studied so that market scenario can be better understood. Also, focus on
advantages and disadvantage of potential sources of funding (Ahmed and Bramley,2015).
Moreover, design a business plan including financial and strategic objective in order to scale up
business. However, discuss exit and succession plan in order to better understand the concept.
LO 1)
P1) Studying evaluation of growth opportunities and considerations within organization
In the cut throat competitive world small business are facing big challenges in capturing
opportunities prevailing in the market. In order to survive in the market place organization and
top level management design strategies to bind customers with their services and goods. By
doing so profits can be gained and gradually expansion can be done in the open market place. In
order to bit the competitors Guildford tyre company design unique and innovative plan in the
neck to neck competition so that set objectives and emerging needs, demands and preferences
can be fulfilled accordingly (Albert,2017). In order to grow succe4ssfully in the global market
distinguished factors are studied which are discussed as follows:
Competitive advantages:
In this case it can be stated as circumstance in which business associates manufacture
same type of goods and services at cheap rate by using the resources effectively and efficiently.
Here, Guildford tyre top level management is accountable to frame or formulate effective
planning of growth in the open market. By doing so best results can be achieved in the
international market. By examining the market scenario planning for growth is done in order to
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gain competitive advantages. However, some of the planning for growth tactics are explained as
follows:
Differentiation leadership: Guildford tyre adopts autocratic leadership in their working
premises due to which skilled and potential employees can be retained back for longer time
duration. Adoption of this leadership styles aid the company to meet the desire goals on set time
frame in the competitive world (Angotti, 2018). Business associates depending on their type of
business activity follow distinguished leadership styles in their working premises. Ineffective
leadership prevailing in the business reduces the overall performance of the staff members.
Whereas, effective leadership raises productivity and profitability at a large scale.
Cost leadership: By adopting this planning for growth tactics in the organization best
outcomes can be achieved in the set time frame. Guildford tyre company adopts penetration cost
leadership in their business so that huge market ratio can be captured. This strategies provide
huge opportunities to the firm in order to raise market share in the market. In this case business
associates provide high quality goods and services at a low price in the competitive world. By
doing so potential customers is attracted towards the offering served by the company in the
global village.
Cost focus: Guildford tyre company is focusing more on cost focus of the goods and
services in the market place. In this case the services offered are at low price due to which more
and more customer base is increased for the goods and services. Also, company is able to create
tough competition for others in the global market which is a positive sign for the business
concern. Organization deeply scan the market scenario and accordingly design the price, place,
customers etc.
Competitive advantages with opportunities for growth
Guildford tyre company scan external environment before entering into the new market
in the neck to neck competition prevailing in the open market (Bridge and Dodds, 2018). By
doing so the chances of error reduces and best results are achieved in the time duration set. In
order to accomplish competitive advantages against rivalry business concern conduct PESTEL
(political, economical, social, technological, environmental and legal) analysis so that smooth
functioning of the business can be carried out effectively without government intervention. The
external macro forces are discussed as follows:
Political: In order to expand the business smoothly in the market political stability is
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must. Guildford Tyre Company is expanding it's business in France market in order to capture
huge market share as well as to accomplish huge amount of profits. For this organization is
examining distinguished sectors such as, legal regulations, norms, political stability, etc. so that
effective decisions making process can be conducted. By examining the political factor directly
or indirectly help in investigating business opportunities prevailing in the open market. Due to
which firm is able to flourish effectively (Daniels and Lapping, 2016).
Economical: This is another factor of PESTEL analysis in which organization focus on
economic stability in order to grow the business successfully in other nation. Guildford Tyre
Company coming up with the idea of expanding their business in France for which they are
evaluating the economical stability of the nation By doing so production and profitability can be
increased accordingly. Also, focus on purchasing power of consumers in proper manner for
effective results. It assist in formulating of tactics as per economic rate of that specific nation.
Social: Here, are some of the examples of social forces which are, community taboos,
norms, values, belief, etc. of people. In order to raise goodwill in the eyes of the customers
Guildford Tyre need to follow social factor on priority level. Violation of this forces gradually
deceases the market value of the company and ends up in huge loss. To expand the business of
Guildford Tyre Company they need to better understand consumer buying trends and ways
(Keough, 2015) .
Technological: This plays a vital role in expansion of business across France market in
the neck to neck competition. Guildford Tyre Company conduct research and use modern
technology for manufacturing products and service in order to meet the emerging demand of
consumers. In order to reduce the switching cost of the potential customers modern tool sand
techniques are adopted. By this technological factors organisation can manufacture good quality
goods and services for their consumers in order to enhance profits.
Environmental: Decreasing pH level of water, pollution, pH level of soil, emission of
harmful gases etc. are issues related to environment in the open market. Guildford Tyre
Company in order to create opportunities in marketplace examine environment scenario and
accordingly produce products which does not deplete climate or surrounding. Here,
manufacturing of tyres does not effect environment and create opportunities to grow business in
various countries to increase sales and profits respectively. .
Legal: Guildford Tyre Company adopts legal forces in their working premises so that
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business operations can be carried out easily in the open market place. However, there are
several laws which administration follows which are, consumer law, health and safety,
employment law, consumer law etc. Before entering into the France market Guildford Tyre
Company need to understand laws and policies of France so that without government
interference business activities can be carried out and profit can be generated at a large scale
(Levy, 2016).
P2) Design a Ansoff's growth vector matrix in order to examine growth opportunities.
Ansoff's growth vector matrix can be defined as a tool which aid in providing guidelines
to top level management in order to design effective tactics. By adopting this business can grow
and expand globally in the international market. This model directly or indirectly leads to
investigate opportunities prevailing in the market in order to accomplish huge profit in the
market place. In the competitive world Guildford Tyre Company is adopting this strategies for
knowing their current positions and status in the market which is described as :
Market penetration :- This refers to the increase in growth of the existing product in the
existing market. It means in this company increases its current market share of the particular
existing product into already existing market. Guildford Tyre Company tries to gain its market
share by attracting customers and increasing the sale of its already existing commodity in its
present market place by using brand-new marketing strategies.
Market development :- It is growth strategy for introducing existing product in to a new
market. The primary objective is to find fresh marketplace internal as well as international for the
already present product of the organisation. This strategy also used by Guildford Tyre Company
as they now starts grow their business at global level. Guildford Tyre Company has opened
various new business in many other countries at a global level that helps in raising its
productivity as well as goodwill also (Mason, 2015).
Product Development: In this aspect administration introduce new products in same
current market in order to expand the business to earn profits at a large scale. It focus on
expanding various category of goods and services in same market. Distinguished activities such
as conducting research and development, introduction of new and innovative products, acquiring
right manufacture for production etc. are adopted by Guildford Tyre Company . By following
this activities administration can rise huge profits in the competitive market place.
Diversification: Organization in the competitive world adopts diversification aspects in
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order to grow the business globally. In this strategy enterprise expand their business in
completely new market with creative goods and services. By doing so huge market ratio can be
captured and set objectives can be fulfilled respectively. Guildford Tyre Company scan the
market scenario effectively including market, product, consumer requirements etc. So that
success rate can be increased tremendously.
Hence, business concern can select market development strategy in order to expand and
grow their business globally. By adopting this tactics enterprise can easily accomplish high
profits in the cut throat competitive world ( Piro, 2016).
LO 2
P3) Sources of funding available to businesses and their benefits and drawbacks
The various sources of funding from which Guildford Tyre Company can acquire funds
are discussed as follows:
Banks: Taking loan from bank is the most common and easy way top access funds for
the business in the cut throat competitive world. Guildford Tyre Company can eliminate the
funds insufficiency by taking loan from bank at any point of time. This is the best and secure
source through which monetary amount can be gathered. In this case a fixed amount is rate is
charged from the customers and necessary cash amount is given to the client as per the
requirement.
Benefits:
 Bank charges low rate of interests.
Drawbacks:
 Need to pay monthly instalments on continuous basis till full payment is not done in case
of failure bank recover by selling or seizing assets of the company.
Friends and family: This is another source of funds from where business associates can
collect monetary amount in the global market. Here, less rate of interest need to paid the business
associates in the cut throat competitive world. Huge amount of cash can be gathered and firm
activities can be carried out effectively. This is the easiest way to accumulate cash and
insufficiency of monetary needs can be fulfilled.
Benefits:
 No additional cash is received in case of early repayments.
 Charges low interest rates.
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Drawbacks:
 Huge amount of cash is not received as per the requirement. does not have huge amount
of money (Sarver, 2015).
LO 3
P4)_Frame a business plan for growth which covers financial information and strategic
objectives for scaling up a business in the marketplace.
Business plan is a written blueprint in which all the details regarding the innovative
product is mentioned such as , marketing, objectives etc. The business plan is discussed as
follows:
Organisation Product and Service: Guildford Tyre Company deals with vehicles such
as, brakes, batteries, wheels, tyre etc. however, product is based on customized and are delivered
to the potential customers as per the need and demand of clients. Additionally, services is
provided in case of failure of wheels, engine at their door step.
Mission and Vision of Firm: The mission statement of Guildford Tyre Company is to
providing high quality products to their customers. By doing so huge profits is maximized in the
cut throat competitive world. Whereas, the vision statement of the administration is to come up
with creative and innovative goods and services so that emerging needs of the customers can be
fulfilled respectively.
Operational Strategy: Customer driven operational strategy is followed by Guildford
Tyre Company for framing goods and services in order to satisfy customers demands. By
adopting this tactics enterprise enriches profitability and market share at a rapid scale in the
neck to neck competition (Siedentop and Krehl, 2016).
Unique Selling Proposition: Guildford Tyre Company adopts equity recapitalisation as
USP and this their unique selling techniques. By adopting this business associates sell particular
section of business to another for time duration. It is possible by legal agreements where all the
terms and conditions are mentioned.
Strategic Objectives:
 Maximising 30% of business sales in the coming three months.
 First six months special discount are given to the lucky drawers.
Market Analysis
Guildford Tyre Company conduct SWOT analysis which is explained as follows:
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Strengths Weaknesses
 Potential and capable staff members
are working in business who can easily
adopt to dynamic changes.
 Firm focus more on research and
development process.
 Regularly provides high quality
products at reasonable prices to their
customers (Whelpton, and Patterson,
2015).
 Air conditioners is ineffective in the
product
 Channel of distribution is not
appropriate.
Opportunities Threats
 Upgrading economy.
 Expansion of business at global level
 Cheaper rate tyres from other country.
 Competitors in large number
prevailing in the market dealing in
same sector.
TASK 4
P5 Assess exit or succession options for a small business explaining benefits and drawbacks
Joint Venture- It is defined as situation where two organisation pool their resources for
completion of particular work that requires legal laws, rules and regulation. Here, Guildford Tyre
Company and other organisation can share resources for goods and services for achieving their
goal and objectives. It is based on temporary period of time and sharing cost and risk. It has
following benefits and drawback such as:
Benefits- It includes:
 Both parties share cost and risk.
 Both company get opportunity for gaining new expertise and capabilities.
Drawback- This includes:
 It is expensive in nature.
 It is difficult to build right relation among partners as it requires efforts and time and
during that time problem can be faced.
Merger- It is defined as situation when two existent organisation comes collectively
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under legal documentation and forming new one or combining operations With help of this
options, organisation can gain profits and expand business in another market. Guildford Tyre
Company can merge with other organisation for manufacturing of tyres more effectively and
efficiently. The advantage and disadvantages are described below:
Benefits: It includes:
 Operation of functions and activities at bigger level.
 The market share and goodwill of organisation rise with help of merger (Wu, 2015).
Drawback:
 Loss of jobs of both organisations.
 The employee productivity losses due to merger if small company merge with large one.
The respective organisation has adopted merger succession point as it is appropriate for
them to achieve their goal and objectives of business. It can help to operate their activities and
operational functions at international level.
CONCLUSION
From the above it can be concluded that in the open market there are huge growth
opportunities prevailing in the market. By effectively examining the market scenario firm can
frame tactics accordingly in order to grow the business across the boundaries. Ansoff's matrix is
adopted so that best strategies can be applied for the innovative goods and services in the
instance competition. Due to which more sales ratio is raised and profit is generated at
tremendous scale. However, distinguished, financial sources are studies so that insufficiency of
funds does not take place and smooth functioning of the business can be carried out. Business
plan is designed including objectives and budget so that scaling of business can be done. As well
as exit and succession plan is studies effectively by the top level management so that out of the
available option best one can be implemented in the firm working premises.
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REFERENCES
Books and Journals
Ahmed, S. and Bramley, G., 2015. How will Dhaka grow spatially in future?-Modelling its
urban growth with a near-future planning scenario perspective. International Journal of
Sustainable Built Environment. 4(2). pp.359-377.
Albert, V., 2017. From child abuse to permanency planning: Child welfare services pathways
and placements. Routledge.
Angotti, T., 2018. Metropolis 2000: planning, poverty and politics. Routledge.
Bridge, J. and Dodds, J. C., 2018. Planning and the Growth of the Firm. Routledge.
Daniels, T. and Lapping, M., 2016. Land preservation: An essential ingredient in smart growth.
In Growth Management and Public Land Acquisition (pp. 23-48). Routledge.
Keough, S. B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Levy, J. M., 2016. Contemporary urban planning. Taylor & Francis.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Piro, R., 2016. Parallel patterns of shrinking cities and urban growth: Spatial planning for
sustainable development of city regions and rural areas. Routledge.
Sarver, D. M., 2015. Interactions of hard tissues, soft tissues, and growth over time, and their
impact on orthodontic diagnosis and treatment planning. American Journal of
Orthodontics and Dentofacial Orthopedics. 148(3). pp.380-386.
Siedentop, S., Fina, S. and Krehl, A., 2016. Greenbelts in Germany's regional plans—An
effective growth management policy?. Landscape and Urban Planning. 145. pp.71-82.
Whelpton, P. K., Campbell, A. A. and Patterson, J. E., 2015. Fertility and family planning in the
United States (Vol. 2200). Princeton University Press.
Wu, F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
Wynn, M., 2017. Routledge Revivals: Planning and Urban Growth in Southern Europe (1984).
Routledge.
Zheng, X. Q. and Lv, L. N., 2016. A WOE method for urban growth boundary delineation and
its applications to land use planning. International Journal of Geographical Information
Science. 30(4). pp.691-707.
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