Planning for Growth: Evaluating Opportunities, Ansoff Matrix, Funding Sources

42- Planning for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................4
P1 Key consideration for evaluating the growth opportunities and justify the consideration in
company..................................................................................................................................................4
P2 Evaluate opportunities for the growth by application of Ansoff growth vector matrix......................6
M1 Discuss option for the growth using frameworks to bring understanding of the competitive
advantage in organization.......................................................................................................................7
D1 Critical evaluation of specific pathways and options for the growth, taking into account risk of
every option and how can they mitigate. ...............................................................................................8
TASK 2..........................................................................................................................................................8
P3 The potential sources of funds available to business together benefits and drawbacks of each of
the source................................................................................................................................................8
M2 Evaluate sources of funds and justify the adaptation of appropriate funding for the business......10
D2 Critical evaluation of sources of funds with justified argument to adopt the particular source or
combination of sources on the basis of needs of company...................................................................11
TASK 3........................................................................................................................................................11
P4 Design the business plan for the growth which involves strategic objectives and financial
information for scaling up the business.................................................................................................11
M3 Develop the detailed business plan for the growth and securing investment. Strategies, setting
objectives and appropriate frameworks for achievement of objectives................................................16
D3 Present the business plan which demonstrate the understanding of how to apply, formulate and
achieve the objectives of business successfully.....................................................................................16
TASK 4........................................................................................................................................................16
P5 Assess the succession or exit plan options for small business together with its benefits and
drawbacks..............................................................................................................................................16
M4 Evaluate the succession and exit plan option for small business and comparing options.
Recommend valid option.......................................................................................................................19
D4 Provide the critical evaluation of the succession or the exit option for small business and also
decide the course of action appropriate with recommendation...........................................................19
CONCLUSION.............................................................................................................................................20
REFERENCES..............................................................................................................................................21

INTRODUCTION
Every business runs with the motive to growth and expand in the near future so it is very
essential for it to plan so that the growth of the organization can be ensured and high profits can
be earned by it. Planning is also essential for achieving the goals and objective of the company
so that the organization can survive for the longer time period and battle the competition. This
helps the company to allocate its resources towards the efforts in order to adopt the changes in
industry which are driven by the digital differentiation and disruption from competitors. The plan
for the growth of the organization only comprises of business components where the customers
can see the value (Zahedi, 2019). The organization chosen for this report is Sykes holiday
cottages which provide hospitality service in UK and Ireland by renting properties to customers.
This report shall cover the analysis of key consideration for evaluation of growth opportunities
and application of Ansoff growth matrix. Further it will include different sources of funds,
business plan for growth and exit or succession plan with advantages and disadvantages.
TASK 1
P1 Key consideration for evaluating the growth opportunities and justify the consideration in
company.
The hospitality industry has the competitive market which changes constantly on the
basis of needs, demands and preference of the consumers. For the small and medium businesses,
the organization must focus on changes and for that, it is essential for it to grab the opportunities
which are prevailing in the market so that it can grow and expand (Cardoni and et. al., 2018).
There are various factors which must be kept in mind of the Sykes holiday cottages when
evaluating its strategies so that it can reap the benefits of it. These are illustrated below-
 Business goals- It is very necessary for businesses to understand that the growth
opportunity it has identified are aligned with the vision and mission of Sykes holiday
cottages. Since, its aim is to provide best hospitality service to the customers with their
needs and preference, the growth opportunity should be identified, keeping in mind its
vision.

 Needs and preference of client- Since bakery business is client centric as it can work
only as per the demand of customers so Sykes holiday cottages must cater the needs of
client so that it can offer such offering which are in demand so that profits are earned.
Competitive analysis- Sykes holiday cottages deals in offering accommodation services
and there are many competitors in market who offer similar products to the customers, so the
business must seek the opportunity to expand its working by analyzing the external and internal
competitors so that it can assess its own strength and weakness in order to grab the growth
opportunity accordingly. This may be done by Pestle analysis and SWOT analysis (Rashidirad
and et. al., 2017).
The competitive advantage is circumstance which takes the organization towards the
favorable position of business. If the business develops the competitive advantage, it is capable
to trade the offering easily and profitably. Thus, the good competitive advantage is when the
business is capable to grow and likely to thrive. There are many characteristics of business which
can turn into the competitive advantage which include product, competition, business and
customers. There are many strategies which can opted by Sykes holiday cottages in order to take
competitive edge. The SME can implement the innovation by bringing new offering in market so
that customer satisfaction is increased also. This may be linked to generic strategies in order to
achieve the performance level. The company can also take the competitive advantage by making
use of technology or innovation so that it can stand different from the competitors. The use of
technology in the Sykes holiday cottage by offering facility to the customers in air can become
beneficial where the hot air balloon can be used to provide immense level of high tech service to
the customers. Moreover, the company can make use of franchising in order to expand its
operations so that it can take competitive advantage.
The Porter’s generic strategies for the competitive advantage are narrated there under-
 Cost leadership- The small and micro business must make its focus on lowering the cost
and in becoming the low cost manufacturer. It must include proprietary technology,
economies of scale and other factors. By sustaining the overall cost leadership, it can
become the performer in industry which will help Sykes holiday cottages to take the
command of price and attract more customers.

 Differentiation- This strategy can be endured by SME in order to become exclusive in
the industry so that the buyers can appreciate it. This focuses on bringing innovation in
product or service so that the target market can be increased and needs of customers are
fulfilled so that it can Sykes holiday cottages and position itself uniquely in the market.
 Focus- This strategy lies on choice of narrow scope of competition in industry. A proper
market segment must be selected by company and such strategy must be adopted which
can serve the customers. It involves two variants which includes firstly cost focus where
Sykes holiday cottages can take cost advantage in market and other is differentiation
focus where business can focus on different segment of market (Davis, 2019).
From the above discussion, it is revealed that Sykes holiday cottages must use Differentiation
focus so that it can take growth opportunity by differentiating and diversifying its services and
products from other competitors. Cost leadership shall not be suitable for Sykes holiday cottages
as the existing businesses would hinder success of strategic decision but cost focus strategy can
be explored by targeting the small market by charging low price for its services.
P2 Evaluate opportunities for the growth by application of Ansoff growth vector matrix.
The Ansoff matrix is the generic planning strategy tool which is used by the businesses
which are small or large in order to evolve the understanding of potential growth opportunities
by development of business. There are four strategies being discussed in this model wherein the
small and medium business like Sykes holiday cottages can apply them in order to ascertain the
business opportunities. These strategies can help in improving the sales and will also help in
managing the losses which incurred due to pandemic of covid-19. These are illustrated below-
 Market penetration- In this strategy, the business achieves the growth by its existing
offering that is available in the existing market. Its aim is to increase the market share of
the business in its existing market segment. The sales of the company can be increased
by this strategy as it focuses on existing offering in existing market. Sykes holiday
cottages can use this strategy in its same market with same product and service by
bringing such offers and discounts which can help in increasing the sales and
profitability. Market development- This strategy is aimed to achieve the growth by introducing the
same product or service but in the new market. By using this strategy, SMEs can enhance