Planning for Growth: Opportunities, Funding, and Exit Options for Rent a Car Enterprises

Planning for growth

Table of Contents
Introduction .....................................................................................................................................3
Main body........................................................................................................................................3
P1 Analyse considerations for evaluating growth opportunities.................................................3
P2 Determine opportunities for growth applying Ansoff Growth Matrix..................................5
M1 Analyse options for growth and describe understanding about competitive advantage.......6
P3 describe potential sources of funding along with their benefits and drawbacks....................7
M2 Evaluation of potential sources of funding and its benefits..................................................9
P4 Business plan for the company..............................................................................................9
P5 Exit and succession options along with advantages and disadvantages..............................12
M4 Recommendation for a valid exit option............................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Introduction
Small and medium enterprises (SME) plays major role in the economy of a country. They
contribute a huge amount in the GDP of the country and are important in shaping the economy of
a particular country. SME helps in the economic growth of the country and plays a vital role in
the overall production of a country. The SME sector provides the most number of employment
opportunities to both skilled and unskilled workforce and contribute around 33% in the national
income of the country (Duque and et. al., 2019.). In context to rent a car enterprises, the
company was incorporated in the year 1957 by Jack Taylor. The company is the largest car rental
company in the America with more than 7000 office and presence in 5 countries. In this report,
the different growth opportunities that the company have is given along with the different
funding options. A business plan for the company with funding options as well as exit options
are provided in the given report.
Main body
P1 Analyse considerations for evaluating growth opportunities.
A company which is providing various products and services to its customers, it is
important for them to make sure that they are timely evaluating their product line so that the can
have an idea about the products which are providing profits, products which are at loss and
products which requires some modification. BCG Matrix refers to a portfolio planning tool
which helps the company in analysing their products on the basis of their growth and relative
market share. BCG matrix includes 4 categories which are given below:
 Cash cow: It refers to the category of products which has low growth rate and high
market share (Rauscher., 2021.). It refers to the products which has a matured market
which does not include innovation and growth but the products have significant amount
of return on investment (ROI) which helps the company in generating cash higher than
investment.
 Stars: It refers to the products which has high market share and high growth potential.
The high growth rate of the products have the potential to increase the cash inflow of the
company. As the time passes by and if the company fails to do any innovation in the
product then these products will become cash cows.

 Question mark: It refers to the product which has low market share but high growth
which makes the future potential of the product highly uncertain (Noble and et. al.,
2018.). These product can easily become cash cows and starts as the products is having
high growth potential.
 Dogs: These are the products that have low market share and low growth rate. These
products do not exist in real life as it is a complete waste of money and companies will
only suffer losses from this product line. However this category of products can be
included in the seasonal products of the company which are launched for experiments.
In context to Rent a car company, the company is falling into the category of stars as the
company is able to capture high market share and is having high growth potential as well.
The benefits of BCG matrix is that it helps the company in identifying the current portfolio of
competitors whereas the limitations is that it does not give much importance to synergies
between business units.
PESTEL Analysis
Political factors: These are the factors that tells the company about the degree up to
which the government can intervene in the workings of an industry or in free market. It includes
taxation policies, government policies, political stability, etc. In case of Rent a car, it is important
for the company to make sure that they are having a proper understanding and knowledge about
the government policies and its changes as it can have a major impact on the workings of the
company.
Economic factors: These are the factors that are determinants of the economic
performance and has a significant impact on the profitability of the company. It includes interest
rates, economic growth, exchange rates and most importantly the disposable income of the
consumers (Altes., 2019.). In case of Rent a car enterprises, due to Brexit the company may face
some issues as the economy may have a slight inflation which will decrease the purchasing
power of the customers.
Social factors: It refers to the factors that tells the company about the social norms and
customs that are prevailing in the society in which the company is operating. It is important for
the company to make sure that they are working according to the norms and culture of the
society as it will help them in surviving in the society and coping with the taste and preferences
of the society (Solly., 2021.). In reference to Rent a car enterprises, this factor can have a severe

Planning for growth
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities ....................................3
P2 Ansoff’s growth vector matrix..........................................................................................4
M1 Demonstrate the understanding of competitive advantage within an organizational context
................................................................................................................................................5
D1 Critically evaluate specific options and pathways for growth, taking into account the risks
................................................................................................................................................6
P3 Potential sources of funding available to businesses .......................................................6
M2 Evaluate potential sources of funding and justification ..................................................7
D2 Critically evaluate potential sources of funding with justified argument ........................7
P4 Design a business plan for growth ...................................................................................8
M3 Develop an appropriate and detailed business plan for growth and securing investment11
D3 Present in-depth business plan that demonstrates knowledge and understanding of how to
formulate...............................................................................................................................11
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................11
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations........................................................................12
D4 Provide critical evaluation of the exit or succession options for a small business ........13
Conclusion ....................................................................................................................................13
References .....................................................................................................................................14
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Introduction
The growth of the business is related to complete the work in order to expand market
share for generating higher amount of profit. Planning is helpful for achieving higher objective
and make sure to analyse the concept and get a higher result for surviving in the long run process
to beat the competition. This section is helpful for analysing marketing strategies and used
systematic growth with limited resources and self centred efforts for the growth of the market to
analyse the situation and allocate the funds in an appropriate manner (Chen and et.al., 2021). The
growth of the company is related to achieve effective component for the growth of the business,
that help the company to attain more customer to provide relevant growth in market.
The chosen company for completing this project is Rent-A-Car, that expand their
business operations beyond their main business for hiring the car. This company is a small scale
industry and founded in 1957 b y jack Taylor. He started his business with seven cars and leasing
them, which help him later to become an enterprises. The main aim of the report, it basically
related to make an effective growth opportunities for evaluating growth in the learning
opportunities. Another part is related to make effective various method to analyse the fund and
make different type of funds in order to analyse use of funds. In addition to that, a business plan
is helpful for generation effective techniques to communicate the plan. In last, discussion various
ways to exit the firm and used implication of the each option in an appropriate manner.
Main Body
P1 Analyze key considerations for evaluating growth opportunities
With the help of effective development and analyze a dynamic growth in the business
industry related to car hiring industry. This is basically helpful for different business focuses on
the revenue and growth for the development of the company in market. There are different
marketing opportunities which help the market for the growth in systematic changes in growth
evaluation.
Business objectives: This is very important for the company to grow in the market in an
appropriate business line with appropriate mission and vision. As the Rent-A-Car have the
mission to provide relevant services to the company and increase their market share within the
car hiring industry.
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Customer need and demand: As the car hiring company is customer oriented company,
so it is important to the management team for analyzing their value and achieve growth in the
market. As Rent-A-Car is the company that provide their customer with local pick-ups this will
be depends on the skills and development of their employees (Nikolopoulos and et.al., 2021).
This way is helpful for the company to increase their competition and achieve the success in the
sectional hiring process.
Competitive environment: In this section, Rent-A-Car needs to analyses their market
and make growth in the activities to achieve growth with the help of SWOT or PEST analysis.
This make the clear and effective market frame for the future growth of market.
Further, with the help of PEST analysis, the company are able to analysis their
competitive external forces. In Rent-A-Car, it is important to understand their external
environment, for expanding their business operations within the UK market.
 Political: The company is needed to expand and analyses the new market and operational
activities which actually help the market and affect the business internally. UK political
factor and Berxit impact make a high changes in their operational activities.
 Economical: Increase in the interest rate and make fluctuation in car prices and petrol
will analyses the impact and achieve the growth in market.
 Social: This is related to the opportunities and customer preference which are related to
the growth and market within the company (Gottschalk and Sampath, 2021). All changes
in the social factors are related to work for appropriate use of technologies in market.
 Technological: The need to expand the market, and use effective and updated car
services in market. As this factor give the higher impact in market to provide appropriate
changes in the activities to analyses the growth in new UK market.
Justification:
For the use of Rent-A-Car, competitive environment is one of effective growth
opportunities in the market as this function is helpful for create the economical change in their
market.
P2 Ansoff’s growth vector matrix
With the help of appropriate growth option, I have analyses different factors and make
significant changes in the market management practices. With the help of Ansoff's growth vector
matrix is helpful for make plans and manage the changes in the company that are related to
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