Planning for Growth in Rent-A-Car: Key Considerations, Ansoff's Matrix, Funding Sources, Business Plan

This article discusses the growth opportunities for Rent-A-Car, including key considerations for evaluating growth opportunities, Ansoff's growth vector matrix, potential sources of funding available to businesses, and designing a business plan for growth. It also includes a company overview, mission, objectives, and financial summary.

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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increase growth and utilized marketing efforts. This approach is helpful for generating effective
growth and possibilities to analyses the marketing approach and make another business growth.
This model include the four main parts to assign the task for different factors.
Market Penetration: This is the method which help the company to work with same
products and same market analyses. In order words, this can be said that the company is aimed to
increase their market share with new market strategies. This method is related to work and make
significant changes in the penetration strategy (Wei and et.al., 2021). This is basically related to
work and make changes in the significant existing market. This strategies are helpful for
decreasing price, increase promotion and a number of competitor that help the achieving market
places.
Product Development: This is the strategy is related to make development to make a
new products and existing market changes. This is basically helpful for changing growth in
market, and develop the strong understanding changes in the market growth. The company is
related to provide unique changes and growth to analyses the market and make effective products
offering market.
Market development: This is related to firm hat existing into a new market with existing
products. Which is related to new customer segment and geographic region within the industry.
The main aim of the company is to serve their customer in best way for the growth of their own
employees as well. From 1957 to 2020, the company expand their business, with over 1000
rental shops in the market of UK, Canada and Ireland. The demand of the company is increased
since 2005 and from then the company needed to analyses their market growth with effective
competitors and increased market share.
Diversification: This is the strategy which help the company to make a scope for
products and development in the company's services. It is associated with the company to work
in existing market growth and achieve effective changes in additional skills and investment
process (Kurnia and et.al., 2021). All is related to achieve effective strategies and provide a clear
application with achievable objectives fro the future use.
M1 Demonstrate the understanding of competitive advantage within an organizational context
After analyzing the market growth and opportunities in the market with Ansoff's growth
vector matrix. The need is evaluated through both product and market development in the
market. As this approach is significant aspect for the growth in market and achieve appropriate
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changes in the valuable activities. For this the company is suitable for diversification strategy in
the market, as this is a rationale approach which compensate for the chance with huge return in
the market.
D1 Critically evaluate specific options and pathways for growth, taking into account the risks
Ansoff's vector growth matrix, is helpful for maintaining share values and achieve the
growth with diversification strategies. Whereas, market penetration strategy is can be treated as
the risk for the company (Afonso, 2021). This is helpful for the company to make a competitive
advantages and achieve the major strategies in market for appropriate growth in the company.
All is related to achieve effective growth and market analysis in the specific option and pathways
to understand the pathways which are related to different risk and adoption techniques.
P3 Potential sources of funding available to businesses
There are different funding option which are needed to analyses and make systematic
growth for conduct effective organizational growth and activities within the market. There are
different type of funds for various sources and change analysis. Some of their sources are related
to:
Small Business loans: These are the loans which are related to different type of works and
dedicated business in order to succeed in market. This will help the company to obtain the capital
amount on guaranteed values. This is advocate for the growth of small business activities.
Pros: This is related to proper treatment and analyses for the growth and make increase
in the chances. Further, this will be helpful for make a relationship to local lenders for different
borrowers to analyses the market growth (Ramirez Lopez and et.al., 2021).
Cons: There are different strict guidelines and related to achieve suitable changes in
every 2-3 years. This is related to the worst condition and make effective growth for analyzing
competitive firms to obtain young companies in market.
Angel Investors: They are wealthy individuals for the entrepreneur financing growth to make
suitable changes in the market and make equity in the company. With the help of appropriate
investment, angel investor make a group and achieve the effective screen deals to invest in their
own ways.
Pros: The major advantages for the growth to make their effective experience in the
industry to m make their flexible network. This will be related to work and less rigid platform
VC firms with flexible agreement with common changes.
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Cons: This have major disadvantages to make degree of control over the company and
high risk factors, anger investors are not able to achieve their follow-up investment in the
company.
Banking: Bank loans are the most frequent and effective source which help in managing
financing to work and make growth in the nearest leaning institutions in market. Bank has tricky
but they also provide different trending options to analyses the change with different sector and
growth. This is basically helpful for educate yourself for processing change in beginning growth.
Pros: This is related to effective growth and appropriate funding amount that are actually
fit their needs (Volkov and Boyarinov, 2021). Further, time taken for granting funds are very
quick and helpful for considering right strategies. With the appropriate financing tools, the
company has their own equity in the company.
Con: At the same time, bank loans are very difficult and make effective changes as per
the constant growth in changing environment. The need of an entrepreneur is related to work and
borrowed their money in large amount and growth. This is the financiing option which van be
very confusing and effective for using appropriate knowledge or gaining their experience while
working into unfavorable deal in poor payment system.
M2 Evaluate potential sources of funding and justification
There are different sources of funding which are helpful for growth of the company,
funding is the amount which can also be called financing, Representative and act of contribution
to work and manage their resources in an effective manner. Some of the major sources which are
helpful for the growth to make long term purposed and achieve the potential sources of fundings.
As the above mentioned sources are very helpful for the new venture company and make growth
in the new development market (Zhou, 2021). With the help of appropriate major success and
growth for implementing investment, achieve the standard and different businesses incubators.
All is helpful for generating effective techniques and the company to work and make systematic
changes in the company.
D2 Critically evaluate potential sources of funding with justified argument
The major potential sources of the funds are related to the growth of rent-a-car. As for the
company anger broker are the best potential source as they are helpful for the company new
company to work and make systematic growth in the company. As they are the one who provide
sufficient capital for the company to make a start-ups in the company. As these are helpful for
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changing and achieve sector to debt and ownership for the use of equity (Woodside and et.al.,
2021). So, this is the reason to work and achieve the appropriate fund for the future growth of the
company.
P4 Design a business plan for growth
Executive summary: Business plan is a plan which is made by an organization to
enhance their business in any other market or making any new initiatives (Oxlade, Benedetti, and
Hill, 2021). Current business plan is of Enterprise Rent-A-Car which is planning to open other
rental office is UK with same offerings.
Company overview: Rent-A-Car enterprise is an organization which was founded in the
year 1957 by Jack Taylor in USA. Company is having 68,000 employees working currently and
it is mainly focusing on providing new solution for people an business with problems of
transportation.
Mission : The mission of a company is to provide better customer services and providing
real solution rated to transportation problems.
Objective:
 The main objectives of a company is to increase its sales by 25%.
 To brings something innovative so that to compete with competitors.
 To expand their business in London, UK to increase their market share and creating
growth opportunities.
Financial summary : Finance is the main source of organization through which
organization could able to expand. For creating growth opportunities, it is important to have
sufficient funds to maintain all the activities and function within a business environment
(Deutsch, Bedrax-Weiss and Roth, 2021). In context with Rent-A-Car enterprise, they have to
manage their financial resources in such a manner that they could spend sufficient amount of
funds on activities performed. For this a proper budget is needed to get estimation of funds
which are requiring for expansion. Further, they could need more funds from taking loans from
banks, savings and other financial institutions.
Industry and market analysis:
SWOT analysis : The major strength of a company is that it is having strong
technological skills and their human resource department is more strong as compared to another
organization. Then company is having weakness in naming and it reputation, as it is not having a
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good market share in a market and not having good reputation. Then company is having
opportunities of trending for renting cars, developing market opportunities and increasing of
internet users and high barriers of entry of new firms. As by increasing customers on internet it
helps in cresting opportunity for company. Then major threats for company is increasing
competition, raising of fuel price and infrastructure as well.
STP approach :
STP is used by organization in order to meet target customers towards their organization.
This is discussed below:
 Segmentation: In this market is divided into small components according to their taste
and preferences (Mahmoud, and Morello, 2021). In context with Rent-A-Car enterprise,
they could use demographic segment in which customers are divided according to income
level, preferences etc.
 Targeting : After this, targeting is done through group of customers. In Rent-A-Car
enterprise, they could target hotels and airports companies so that they could provide
rental cars to the customers.
 Positioning: Then positing can be be positive in the mind of target group. For this, they
are using various methods of promotional and advertising and providing various offering
to the customers as well. So that there position could maintained in market.
Competitors : some of the competitors of Rent-A-Car enterprise is Hiyacar and Splend
car hire company. For competing from these companies, Rent-A-Car enterprise could have to
make effective marketing strategies so that customers could more attracted towards their
organization and also provides customer satisfaction more (Pepin, Parrott, and Suarez-Sharp,
2021). Further, promotions can be done through digital marketing platform and by direct
marketing method so that they could attract more customers.
Strategy and implementation summary: in this particular report, Ansoff matrix is used
for creating opportunities of growth and bringing advantageous in business. For this matrix,
diversification is used for planning something new in the market so that they could compete with
their competitors.
Personal and management: company is sole proprietorship and it is having employee
up-to 68,000 currently. The employees cost should be less as compared to other competitors.
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Financial plan : For meeting of a financial resources, and conducting all the activities,
Rent-A-Car enterprise will get their funds from Bank loans (Cicek, Kelleci, and Vandekerkhof,
2021). Here is a financial projection mentioned below:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th
year 5th year
Initial money 50000 9000 24000 30000 15000
Investment 21000 24000 30000 25000
Total 50000 30000 48000 60000 40000
Marketing
expenditures
Advertisement 1000 8000 3000 8000 5000
Sales promotion 2000 6000 3000 7000 5000
Direct marketing 9000 8000 3000 5000 8000
Total 12000 22000 9000 20000 18000
Available balance 38000 8000 39000 40000 22000
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M3 Develop an appropriate and detailed business plan for growth and securing investment
The business plan which is being made by Rent-A-Car enterprise is made for achieving
organizational goals and objectives. This includes marketing strategy, financial planning and
missions and objectives of a company. Company is analyzing thorough SWOT analysis and their
employees also work in another rental office effectively. they are focusing on hiring of new
employees (Phillips, 2021). While conducting proper market analysis, its competitors such as
Hiyacar and Splend car hire company are identifies and to compete with team, enterprise should
have to work unique.
D3 Present in-depth business plan that demonstrates knowledge and understanding of how to
formulate
The business plan of Rent-A-Car enterprise including opening of a new rental office at
UK. The target of a company is to increase their sales by 25% and more focus on customer
satisfaction. Business plan includes analysis of competitors and proper budget which is to be
maintained for performing all functions. This includes company visions and objectives and
further, there is a implementation of various marketing strategies in order to compete with
competitors and making their profits as well.
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option
Exit options
If company is facing a severe loss then it is a better option to wind up the organization.
Some of the ways in which business can exit is:
Winding up: In this exit option, the owner of business sell all the assets of company and
pays all liabilities (Folarin, 2021). Further, remaining funds are distributed among shareholders.
In context with Enterprise Rent-A-Car, they could opt for this if they are not getting any success
in their business environment.
 Advantages: It is best option in which company can easily closed without any disputes
and every party is getting their own share.
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 Disadvantages: In this owner is not possessing their control over the business and also
person is being appointed by higher authority to wind up. In this company can lose their
skills and competent employees.
Selling in open market: In this exit option, business sis being sells into the open market
through auction process (Ye, Wang, and Zeng, 2021). By choosing this option, owner can get
higher amount in return because there are various wealthy people take part in auction process.
 Advantages: The main advantage is that firm is running in the same manner in which it
is actually working and their could not be more impact on company goodwill.
 Disadvantages: Main disadvantage is that owner is losing a power because business is in
the hand of another and also it hampers current operations of business.
Succession options
Merger and acquisitions : This is one of the option which company can adopt for
succession of a organization. This will helps organization in expanding while merging and
acquisition with another company. Further, this will be helping in gaining market share and more
profits. In context with Enterprise Rent-A-Car, this option can be the best option because this
will helps them in expanding and growing in the market with another one and making profits.
 Advantages: It helps the firm in increasing current market share of merging company
and also make reputation of a company in market among competitors.
 Disadvantages: Mergers sometimes change image of a company and many of the
employees lose their jobs while merging with another one (Randolph, Fang, and Nayir,
2021).
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations
All the businesses need the exist strategies, even if they wants to just means to transferred
the ownership or decide to retire from the company. With the help of an appropriate exist
strategy the owner of the company make an effective planning for their future changes. With the
help of a business strategies are related to work and make significant aspect to leave business in
any circumstances (Khoury, 2021). As winding up and selling in open market can be the biggest
option for exit as this helps the company in overcoming from loss and make effectively winding
up. Then succession option is mergers and acquisition which helps in growing of the company as
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well. In context with Enterprise Rent-A-Car, they could opt for winding up option because this
will resulting in simply closing without any conflicts.
D4 Provide critical evaluation of the exit or succession options for a small business
Small business can be opt for winding up and selling in open market as a exit option. And
mergers and acquisitions as succession option. These options will helps the organisation in
simply exit or growing in a market (Bartlo, 2021). As in context with Enterprise Rent-A-Car,
their owners could use winding up as a exit option because this will helps them in simply closing
the enterprise without any of the conflicts and they could not any issues regarding. As
shareholders will get their amount of share as well. In relation with succession option, they can
go for mergers and acquisitions because this will helps them in growing more in the market and
developing more options for increasing market share and profits in the market.
Conclusion
From the above it can be concluded that growth is most important for every company and
organization in enhancing their profitability and revenues. For surviving in the economy or in a
market growth is must for the company. organization are using various functions and activities in
order to remain competitive in the market. Growth is helping organization in creating
profitability and enhancing productivity in a business. Small scale business have to seek goth
opportunities which are coming in market related to technologies and other aspects to gain
profitability and retaining customers. For starting of the small business, various funds providers
are now investing in them. So, small business could take advantage of that and make a effective
business plan in order to find growth opportunities for them.
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