Unit 42 Assessment: Business Plan, Growth Opportunities, Ansoff Matrix, Funding, Exit Options, and Definitions

This report discusses the consideration of business, growth opportunity, succession option and funding option along with a detailed business plan. It also defines terms like business plan and SMART analysis. The report includes a market analysis summary, strategy and implementation, management summary, and financial plan.

UNIT-42 ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Growth opportunities...............................................................................................................3
2. Ansoff Matrix..........................................................................................................................4
3. Funding and its source:............................................................................................................5
4. Exit option...............................................................................................................................6
5. Define the terms.......................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business plan refers to a plan that detail out various activities in relation with business and
its growth (Efstathiou, 2018). While considering growth various other elements like the presence
of adequate funding, growth opportunities also need to be focussed. Vectair Holding is a leading
innovator of air care as well as hygiene products and make delivery of scent and sanitary solution
to many countries.
This report will discuss the consideration of business, growth opportunity, succession option
and funding option along with a detailed business plan.
MAIN BODY
1. Growth opportunities
In order to make growth and expansion, the organization need to consider various aspect
and elements. The major considerations are:
Social factor:
This factor includes the factors that are related with the taste and preferences of the
customers (LEYVA and et.al., 2018). In case of Vectair Holding if it plans to make expansion of
its business it is very important to consider this factor so that it can sale its products along with
performing its business operations.
A neglecting of this factor would lead to negatively impact the business in terms of losing
customers.
Political factor:
This factor need to be consider because with if there is political disturbance like the
Brexit event then it became difficult to perform the trade operations (Tokmurzina, 2018). Thus,
with respect to Vectair Holding it needs to make focus towards this factor because it would have
severe and negative impact towards expansion.
Technological:
This factor is highly important to be considering because if the company will not be
technologically advanced then it will negatively impact the business and its operations. It is
important to work as per this factor so that the negative impact in terms of loosing of customer
will be avoided.
Economic:

This factor is related with the economic condition of nation. With the presence of positive
condition, the Vectair Holding would be positively impacted and thus raise the market presence
and operations.
Competition:
This factor is highly needed to be focussed because if there is high market competition
then it will negatively impact the company and its sales proportions. In case of Vectair Holding
with the presence of high competition and competitors like Northwood Hygiene Products,
Merton Group and various other the company would be negatively impacted with reference to
the expansion of the project.
2. Ansoff Matrix
This is one of the major matrix which is related with the identification of growth
opportunity. As per this matrix there are majorly 4 strategies which could be adopted by
companies. These strategies are:
Market penetration:
As per this strategy the existing product are to be sold by company in the existing market.
With this strategy the company can grab the existing market with its quality product (Dawes,
2018). However, with the concerned strategy the company would be affected in terms of low
market expansion.
Market development:
Under this strategy the existing products are sold in the new market. This is beneficial
because it allows the company to have wider choice of market and raise sales. However, it will
include the high proportion of cost and expenses.
Product development:
As per this strategy the new product will be sold by company in the existing market. This
will lead to raise the share of market and add more customers (Cleberg, 2019). However, it may
affect the brand image if the new product will not meet customer expectation.
Diversification:
As per this strategy the new product will be sold in new market. With this strategy the
company would raise the product range along with market range (Ashraf and Shen, 2019).

However, it is highly risky because it may affect the brand image of company if the strategy
fails.
In case of Vectair Holding the market development strategy is followed and adopted. This is
because with the selling of its quality product Vectair Holding expands its existing market.
Likewise, with the concept of innovation it always grows and with its existing quality product in
the new market and it can raise the market size as well as customer range. This will further truly
reflect in its earning of high revenue and sales.
3. Funding and its source:
Funding:
Funding and finance is the blood of every organization which allows it to run and
perform the business operations. With the adequate source of fund, the organization can perform
its business function and thus meet its goals and objectives.
In case of Vectair Holding the major source of funding is:
Bank loan:
This is one of the basic form of funding under which the money is arranged from taking
of loan from the bank (Guimarães and Malaquias, 2020).
Advantages:
It bears various benefits in terms of flexibility of long repayment period, low rate of
interest, easy accessibility and availability and various others. No need of giving equity for
taking bank loan.
Disadvantages:
It involves complicated procedure and large number of formalities. For taking bank loan
there is always a need of security and collateral. Bank loan is available only in case of
profitability of business.
Debenture:
These are the long term source of finance. It is a form of bond or long term loan which is
issued by company in order to raise money from the market (Afrahi and Blackburn, 2019).
Advantages:
They do not carry voting right and thus not affect the shareholder and equity right of
company. Financing through this option is less expensive.

Disadvantages:
With redeemable debenture the company need to make its repayment on specified date.
Payment of interest is compulsory in case of debentures.
Angel investors:
These may include the crowdfunding, wealthy individuals, and angel syndicates. These
are wealthy people who can be found through referrals, local attorneys and various other mode
who make investment in company.
Advantages:
Less risky while making it comparted with loan. The amount of angel investor needs not
to be paid back by company.
Disadvantages:
Loss of complete control because of the involvement of part ownership. They receive the
proportion of profit if business dissolves.
In case of Vectair Holding the funding can be made performed by Bank loan and angel
investors so that the funds can be arranged at an easy manner. The propose of subsidy can also
be avail by Vectair Holding if bank loan would be taken for the running of business.
4. Exit option
Exist option refers to making an exit from the market so that the company. Here the
business end and the company leave the market. It includes:
Liquidation:
As per this method the business makes sales of its entire asset. This method is adopted
when there is no option to sustain the business and need to be sold (Lemley and McCreary,
2019).
Advantages:
With the option the owner can make starting of a new business. In the same way with this
option the business does not need to pay any revenue taxed after the liquidation.
Disadvantages:
Loosing of trade license, assets along with goodwill of company. Repayment of personal
loan is also included under this method.
Acquisition:

Under this option the company would be brought by some other individual or company.
This means when one company would buy another company then it is termed as acquisition.
Advantages:
Naming of price will be get by the company who opt this option. Grabbing of higher
amount when by the company who is acquired by another company.
Disadvantages:
It may lead to cultural conflict, low productivity, decrease in employee’s morale along
with damage towards the brand value. It may also lead to raise problem related with production.
Merger:
Under this method two companies combine to become one. Here the companies combine
and a new company would be formed.
Advantages:
This is advantageous when the buyer has need of company’s product and business. It also
raises the value of business with more specialised services.
Disadvantages:
It may lead to raise conflict and issues in relation with culture and mode of working. It
may also lead to affect the work culture and thus productivity.
Succession:
As per this option the company may handover its business to its family member. This will
lead to continuation of business.
Advantages:
The business will remain continue. It will never end which means the business operation
continues.
Disadvantages:
It may impact the goodwill and terms of services. The loyalty of customer would be
affected.
In case of Vectair Holding the company may opt the option of succession so that after
leaving the market too it will remain continue the business operation and will continuously serve
the market. With this option the business operation of the company will never stop.

5. Define the terms
Business plan is defined as the formal written document which contains the goals of the
business, the methods for attaining those goals and the time frame which is being analysed and
formulated for the plan to be completed effectively and in efficient manner (Cicala, 2020). The
business plan helps in formulating the goals and objectives which are to be attained by the
organization. The business plan helps in developing the perspectives as to how goals and
objectives are formulated are framed within the organization to understand the success and
achievement which are to be addressed at large scale. Thus, business plan helps in understanding
growth and development of organization.
SMART Analysis is defined as the criteria which are being set for the goals and objectives
in the employee performance management, project management and personnel management at
large scale. This helps in understanding the aspects as to how effectively and in appropriate
manner the goals and objectives are being set (Zimmerman and Chang, 2018). The SMART
analysis consists of Specific, Measurable, Achievable, Realistic, Time bound. This helps in
addressing to the aspects as to how effectively and in appropriate manner changes are being
concerned and are identified at large scale. The SMART analysis is being done for development
and growth perspectives which help in analysing organizational success measures at large scale
in an appropriate manner.
Business Plan includes –
Executive Summary – The business plan has been made to analyse the different aspects and
perspectives of business which have been included within the framing of business plan at large
scale. There is different information and details which has been provided for sharing the
knowledge and understanding of business in appropriate manner (Qi, 2020). The business plan
has been framed and formulated for analysing the different perspectives of how the business has
been undertaken within the report. The business has been framed for knowing the important
aspects as to how effectively and in appropriate manner the details of the company has been
provided within the business plan within this report being addressed.
Company Summary - The Vectair Holdings is the leading innovator of air care and hygiene
products and makes delivery of scent and sanitary products at large scale in large countries. This
helps in providing the customers the products and services at large scale in such manner that the
company is able to analyse the needs and demands of customers in the market at large scale and

helps them in making understand the aspects of growth and development. This is the business of
how the company is initiating and innovating the products and services to be made available to
the customers such that there is large market share in the business effectively and at large.
Products – The products which Vectair Holdings deals in are providing the air care and hygiene
products and makes the delivery to scent and sanitary solutions to different countries at large
scale as per the marketing trends and the demands of the customers at large scale (Dennehy,
Kasraian and et.al., 2019). This helps in framing the scale of growth and development within the
business in appropriate scale. The products and services are distributed within the market for the
availability of the customers to approach for the products in the most unified manner. The
products of Vectair Holdings create value as to how effectively and in appropriate manner the
changes are to be made as per the demands of customers.
Market Analysis Summary – The market is being analysed based on the current trends which are
running in the market. The market analysis is done on the basis of products and services
displayed in the market. The promotion and advertising are the key concepts of how the
marketing is being done. Along with this, customers are targeted, segmented and positioned
within the market so that the products and services reach the customers. It is important that
Vectair Holdings undertake the market analysis so that the customers are segmented and
positioned within the market and are helping the business to grow and develop at large scale. The
current trends are adopted within organization effectively.
Strategy and Implementation – The strategy which Vectair Holdings follows is to target new
buyer group of teenagers to buy the products and services of company. The company is also
focusing on the aspects of how the company is addressing to follow this strategy by
implementing it in the best way possible and creating value for the customers. There are three
objectives which are framed by the company to achieve them (Daniel, 2020). These are –
 To provide the quality products and services to the customers.
 To identify the market opportunities effectively for product expansion.
 To provide diversification in the business by growth of 5% till 2025.
Management Summary – The management of Vectair Holdings follows proper management
rules and procedures so that the company does not face any management issues and problems.
The company is also taking concern of all the aspects of growth and development which has
been done and framed by the strategies which are formulated by the management and this

addresses the aspects of employees contributing to the organization with their productive
performance at large scale. The employees help in taking concern of all the aspects of working in
an effective and efficient manner at large scale. These are some of the basic and major aspects of
growth concerned by the management effectively and in appropriate manner.
Financial Plan – The financial plan consists of budget which is described below -
Particulars Cost
Building £
20000
Machineries £
85000
Equipments £
80000
Salaries and wages £
15000
Raw Materials £
4000
Marketing Expenses £
7000
General expense £
300
Rent Expense £
9000
Transport £
2500
Insurance £
1000
Total 223800
This is how the financial plan is being framed with the budget (Lång, 2018). Thus the main
concern is that the budget is implanted with the cost of the company which helps in ensuring the
cost which are being utilized in the particulars and the items to which finances are mentioned at
large scale by Vectair Holdings in an appropriate manner.
CONCLUSION
From the above report it can be concluded that in reference to availing of growth
opportunities various option need to be focussed by the company which may also include the
focus towards the consideration in respect to concerned consideration. In the same way the report
also explains the option of funding by which money will come in the business along with an

understanding of exit option. Through this report it is also understood that with the mode of
business plan the company can grow and attain its goal.

REFERENCES
Books and journals
Afrahi, B. and Blackburn, R., 2019. Entrepreneurs exit strategies: the role of emotion. In British
Academy of Management (BAM) Conference 2019: Building and Sustaining High
Performance Organisations in Uncertain Times: Challenges and Opportunities.
Ashraf, B.N. and Shen, Y., 2019. Economic policy uncertainty and banks’ loan pricing. Journal
of Financial Stability. 44. p.100695.
Cicala, G., 2020. Understanding Project Definition. In The Project Managers Guide to Microsoft
Project 2019 (pp. 75-88). Apress, Berkeley, CA.
Cleberg, C., 2019. Strategic Success: The Ansoff Matrix vs. The Balanced Scorecard.
Daniel, C.O., 2020. The Effect of Corporate Strategy to Company Performance. Asian Journal of
Business and Management. 8(1).
Dawes, J., 2018. The Ansoff matrix: A legendary tool, but with two logical problems. But with
Two Logical Problems (February 27, 2018).
Dennehy, D., Kasraian, L. and et.al., 2019. A Lean Start-up approach for developing minimum
viable products in an established company. Journal of Decision Systems. 28(3). pp.224-
232.
Efstathiou, N., 2018. Business plan for a starting company.
Guimarães, T.M. and Malaquias, R.F., 2020. Bonds, Bondholders Protection and Asset
Allocation of Multimarket Funds. BBR. Brazilian Business Review. 17. pp.132-150.
Lång, E., 2018. Financial plan for a start-up.
Lemley, M.A. and McCreary, A., 2019. Exit strategy.
LEYVA, and et.al., 2018. A framework for PEST analysis based on fuzzy decision
maps. Revista espacios. 39(16).
Qi, K., 2020, April. Business Steward: Definition, Mode and Influence. In Journal of Physics:
Conference Series (Vol. 1486, No. 4, p. 042029). IOP Publishing.
Tokmurzina, K.R., 2018. THE BASIC TYPES OF MARKETING ANALYSIS. PEST-
ANALYSIS OF FIRMS. In ЭКОНОМИКА, БИЗНЕС, ИННОВАЦИИ (pp. 52-55).
Zimmerman, T. and Chang, H.C., 2018, May. Getting smarter: Definition, scope, and
implications of smart libraries. In Proceedings of the 18th ACM/IEEE on Joint
Conference on Digital Libraries (pp. 403-404).
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