Planning for Growth: Strategies and Funding Sources for Taylored Games LTD

This document discusses the planning for growth of Taylored Games LTD, a social enterprise gaming café in the UK. It explores the strategies of Porter's generic model, PESTLE analysis, and Ansoff's matrix. It also assesses potential sources of funding available to the business, including internal and external sources.

UNIT- 42
PLANNING FOR GROWTH

INTRODUCTION
Planning for growth refers to a strategic company activity that helps the organisation to
track their growth for earning high revenues. It helps the company to allocate their limited
resources for adapting the change so that organisation may earn more profits and gain the
competitive advantage in the industry. This project is related to social enterprise which is
Taylored Games LTD. that is a SME and a social enterprise that is operated by the husband and
wife team that provide the friendly place where the family and friends play games of all kinds. It
is one type of gaming café that is located in UK. They specialize in various sorts of products also
i.e. board, card and tabletop so that all age group enjoy games and their leisure time. The main
aim of this corporation is to increase their customer base and market share for their longer
sustainability of the business. It also involves the Ansoff matrix that helps in providing growth
opportunity and examines various source of funding that helps in providing the financial
resource. Further it involves the exit strategies that are helpful in earning major motive that helps
ion succession in the marketplace(Hu, 2016).
LO1
P1
In every business firm there are various types of opportunities and growth that may carry
major challenges for the business due this firm may use the approach related to porter’s generic
model and PESTLE analysis that assist in earning more profits and also analyzing the market so
that Taylored games can examine the challenges and threats and reduce it by effectively adopts
the growth strategies that can be shown below(Keough, 2015).
Porter’s generic model
This term defines to the strategic form that helps in gaining the rival company advantage
that helps in organisation. It includes three approaches that involve leadership, differentiation
and focus. This approach helps in reducing the cost and helps in gaining the market share for a
longer time period. In terms of Taylored games there are porter’s generic model can be shown
below.

 Cost leadership- This style of porter’s generic model shows that organisation may sale
their merchandise and services at low cost in the marketplace to become a leader in the
market. It also helps in attracting the larger base of customers so that company may earn
high amount of profits. It helps in increasing the profits and sales that will gain the
market. In case of Taylored games, manager can use this strategy that helps in earning
more profits and attracts the larger base of customers so that family and friends can enjoy
playing games with leisure times(Lambert and Oatley, 2017).
 Differentiation- It refers to that strategy which helps in enhancing the base of customers
with their differentiation in products in the market and it also gains the rival benefit in the
marketplace. In circumstance of Taylored Games major differentiation in games helps in
earning high profits that satisfy the needs of the customers that helps in beating the
competition in the market.
 Cost focus- It refers to that strategy in which company can focus on the cost that helps in
segmenting the market and enhancing the sales of the company. With the help of this
strategy Taylored Games earning the high profits by offering the customers varieties of
games so that family and friends can enjoy and tell them their friends that can helps in
increasing the profits and also captured the new market with gaining the competition in
the market.
 Differentiation focus- In this strategy business can focus on differentiation the products
and services so that they can get the competitive advantage in the marketplace. in case of
Taylored Games this strategy is very effective by the management that can control the
market and increase the profits of the organisation(Pugalis and et. al., 2015).
From the above analysis Taylored games can use the product development strategy that is
more effective for enhancing the market share.
PESTLE Analysis
It is a structure that is used to examine the macro environment that helps in examine the
opportunities and threats to enhance the success. In case of Taylored games PESTLE analysis
can be shown below.

 Political factor- It includes rules and responsibilities of the country that includes tax
regulation, governmental stability etc. In UK, political condition is very stable and due to
this organisations cannot face major issues and challenges and expand their business in
European countries is very effective. And it places effective results to the Taylored games
for expanding their business in the EU countries. On the other hand Brexit occur in UK
negatively affect the organisation in dealing with other European countries and they may
face major issues(Wynn, 2017).
 Economical factor- It includes GDP, inflation rate and spending power of consumers in
the UK. In case of Taylored games, management can enjoy large amount of sales because
people in UK are spending more amount to enjoy their leisure times. But due to Brexit,
firm profit may impact due to this company can lowering the price of the product or
differentiation their goods from other competitors so that they can earn high profits. This
majorly impacts the large business organisation.
 Social factor- It includes values, customers and behavior of the individuals who are live
in the society in the UK. As people in UK are very modern and spend their time with
their family and friends so that it will positively impact the Taylored games because they
can offers the varieties of games to their customers due to this they can enjoy large
amount of profits and market growth(Plotnikov and et. al., 2015).
 Technological factor- This factor is very effective as in today’s world people of UK are
more conscious about the use of technology due to this business are move towards the
use of advanced technology and earns a high amount of profits. In case of Taylored
games it helps in earning high profits because they can use the technology for payment
and in their products so that they can place their position in the marketplace.
 Legal factor- It includes the laws and regulations that a business firm may use to
enhance their profits and revenues in marketplace. In context of Taylored games manager
can follow the proper rules and regulations for the welfare of the employees so that they
are working with more efficiency and gives the productive results to the company this
will helps in increasing the growth.
 Environmental factor- It includes the rules and regulations related to the environment
that cannot harm the nature. In this organisation may adopt the goods and resources that
cannot harm the environment because it helps in gaining the competition and also earning

the high profits. In this Taylored games can provide the products that do not harm the
environment due to these customers can enjoy the environment of the store and company
may earn high amount of profits(Colantoni and et. al., 2016).
P2
Ansoff’s matrix- It refers to an strategic tool that is used to expand the organisation for
earning high amount of profits with more effective plan and productivity. This strategy is very
helpful to adapt and follow the advantageous strategy so that they can provide the major benefits
in the future and assist in longer survival of the business. This matrix is used by the Taylored
games that can be shown below.
 Market penetration- This strategy is majorly focused on enhancing the sales in the
presented market with a existing product. in this company can focus on reducing the price
so that large base of customer get attracted towards it. In this Talyored games can use this
strategy that helps in attracting the large base of customers and expand their growth that
helps in longer life of the business firm. in this manager of Taylored games can provides
the varieties of offers and sales so that large number of people can spend their time to
play the games with their family and friends and it helps in earning more and more
profits(DODDS, DIMANCHE and SADOWSKI, 2018).
 Market development- This strategy is majorly focus on the developing the market i.e.
dealing with the existing products in the new market because it can increase the profits
and new customers and also place the valuable position in the new market where they can
earn high profits. In context of tailored games this strategy helps in expanding the
business within the global market. this strategy helps in gaining the more opportunities
and success with more sustainability of the marketplace.
 Product development- This strategy mainly focus on introducing new product within the
existing market that helps in earning the more and more profits with large customer base.
In case of Taylored games that contains high market share in their area at this time using
this strategy helps in getting the large amount of profits with gaining competitive edge in
the marketplace. Using this strategy helps in attraction more new clients in the current
market that can encourage the high revenues and longer sustainability.

 Diversification- This strategy is mainly focus on using the new product into the new
market for enhancing the sales and profits of the company but at the same time it is more
risky aspects because entry into the new market with new products is attracted the
customers ort not. In this context Taylored games can mainly focus on using 3D games
and many other technological games that can enhance the market share and profits by
attracting the large base of customers. This strategy is successful when a company is able
to take high risk and analyzing the whole new market so that they can place their
products in the where large number of customers get attracted(Zhou and et. al., 2017).
From the above analysis it is to be evaluated that for Taylored games the most suitable strategy is
using the market development so that they can enhance their brand image in the novel market
also with their existing products and in this company mainly focus on providing the healthy
environment in their gaming area and also they offers a variety of organic food and Drinks that
can attracts the customers to spend their more and more their and it helps in earning more and
more profits.
LO2
P3 Assess potential sources of funding available to business with benefits and drawbacks of each
source
There are different sources of funds that can be used in expansion of business and it also
helps in growing the business. It includes two types of sources of funds that include internal
source of funds and external source of funds that is helpful for the Taylored games which can be
shown below.
Internal sources of finance
It defines to that source of funds in which organisation may collect the financial resource
within the organisation or using their business assets as it is also called safe type of source of
funds. In context of Taylored games it includes some advantage and disadvantage that can be
shown below(Birkin, Clarke and Clarke, 2017).
 Advantage- The major advantage of this source of funds is that it does not contain any
liabilities and contains full control over all the sources and assets due to this Taylored

games can enjoy this source of funds and it does not contain any restriction in spending
the amount related to the investment. It is also flexible in nature.
 Disadvantage- The major disadvantage of this type of basis of fund is that it contains
fewer profits and due to this tailored games also face bankruptcy. Using internal source
neither does nor generates more amounts of profits.
External source of finance
It defines the term in which Taylored games can generate the funds from the external
source i.e. outside the business firm which includes bank loan, credit loan, crowd funding etc.
These sources help the company in planning the growth and expanding the profits of the
business. It includes various types of sources that can be shown below(Güneralp, Perlstein, and
Seto, 2015).
1. Bank loan- It defines to that in which a company can take a loan from the bank with the
signed agreement of repaying it within a particular period of time with the decided rate of
interest. In case of Taylored games bank loan is very effective as it is a secured type of
loan at the same time it contains some advantage and disadvantage that can be exposed
below.
 Advantage- The main benefit of bank loan is that it helps the organisation to use
their financial resource in their own way without any restriction. In this Taylored
Games enjoy the good position in the market that can help the firm to repay the
loan on time. It also helps in enhancing the brand image with profits.
 Disadvantage- The major disadvantage of using and adopting bank loan is that it
can increase the liability of the Tyalored games due to this there profit may also
occur. As it also shows as rigid policies.
2. Bank overdraft- It refers to that source of funds in which bank provide the facility to
their customers or a businessman related to overdraft money. In this bank can give right
to the client to overdraft their bank balance in limited amount. In this interest is charged
from the client irrespective of the bank balance. It includes various advantages and
disadvantages that shown underneath(Grooms and Frimpong Boamah, 2018).
 Advantage- The major advantage of bank overdraft in context of Taylored games
is that it is very flexible in nature and does not contain more paperwork that will

helps in easily obtains the funds and enjoy the short term benefits. It can
efficiently record the financial transaction that helps in payment.
 Disadvantage- The main disadvantage of bank overdraft is that in this Taylored
games pays the interest over the overdraft facility and in this bank can give the
ord3er to repayment the amount and due to this company may face problem in
arranging the funds.
3. Crowd funding- It defines that source of fund in which organization may collect the
funds from the public and due to this it called the crowd funders. In case of Taylored
games this aspects of arranging funds includes benefits and drawbacks which can be
explained underneath (Pothukuchi, 2015).
 Advantage- The major advantage of crowd funding is that it helps the Taylored
games to advertise their products in front of public so that they can adopts the
large opportunities for attract the large base of customers. in this company can
take the follow up from their investors so that they can easily modified their
products and maintains their relations to the customers and investors in an
effective manner.
 Disadvantage- The major drawback of crowd funding is that it majorly affect the
image of the company and contains the high risk that may create loss to the
company.
From the above analysis it is to be evaluated that Taylored games could adopted the bank loan
source of funds that shows the effective strategy that helps in enhancing the growth of the
company and enhance the image of the company in the marketplace. It is also the secured type of
loan from the other various sources of funds that gives the effective and efficient results to the
company in an effective manner.
LO3
P4 Design business plan for growth including financial information and strategic objectives for
scaling up business
Business plan refers to that which shows the outline map or a document that helps in
expansion and growth of the organization. it can showcase the appropriate explanation of the

strategies within the plan of action and also helps in achieving the task within a specific period of
time. it also helps the Taylored games to enhance their profits with large customer base so that
firm may enjoy longer sustainability in the marketplace(Olesen and Carter, 2018).
Executive summary- Taylored games is one of the famous store and specialize in card,
board and tabletop games that is operated by a couple that is Adam and Racheal Taylor. they
mainly focus on the various tags of business such as Leisure and tourism, dog friendly, social
and teen friendly, board games, kings bridges and family friendly. It was operated in UK with
the objectives of providing the benefits top the society in the form of giving happy hours with
their family and friends.
Vision- The major vision of the Taylored games is to enhance their customer base and
become a market leader by providing varieties of facilities related to playing games for every age
groups so that people can spend their leisure time in an effective way.
Mission- the mission of Taylore3d games is to provide the quality games to their
customers so that they can enjoy their time and this helps in becoming the leader in the
marketplace.
Objectives- The main objective of the Taylored games is to enhance the profits by 20%
and their customer base with 25% in a year.
STP Framework- This term includes the three aspects such as segmenting, targeting and
positioning the market so that earning the profits will be easy. in terms of Taylored games three
aspects can be shown below(Sarver, 2015).
 Segmentation- It is very essential for the Taylored games to segment the market
on the basis of customer’s perception and the geographical region so that they
target the market will be easy and less time consuming. This also helps in
fulfilling the needs of customers as per the potential customer’s demands that
gives more profits to the company.
 Targeting- In this aspect Taylored can target the local market that helps in
making the joint venture with the company so that firm may enhance their growth

and market share to satisfy the needs of the customers related to the varieties of
gaming.
 Positioning- As Talyored games can opening their stores in the new place of the
UK that helps in earning more new profits with large base of customers in the
new and developed market. it also helps in maintain the demands and supply of
the company and also making the valuable position in the marketplace.
Resource allocation- It helps in allocating and assigning the resources to the different
departments so that task can be achieved in an effective and efficient way and maximize the
growth of the company.
Total Estimate Budget- It is very essential to make a budget because it helps in maintain
the resources and reducing the expenses within the company. in context of Taylored games the
budget can be shown below.
Particular 01/06/20 (£) 01/06/21 (£) 01/06/22 (£)
Advertising cost 10000 13000 10000
Executing machinery cost 10000 11000 8900
setting up of games 20000 10000 6700
Shop expense 10000 1000 9600
guidance charges 30000 11000 7800
Total Cost 80000 46000 43000
Monitoring and controlling- It is the final step in the business case where the Taylored
games can monitor and control all the actions in a valuable manner. This helps the firm to gain
the competitive advantage by proper evaluating the above task so that firm may enhance the
sales and profits.

LO4
P5 Assess exit and succession options for small business explaining benefits and drawbacks
Succession planning
 Merger- It is an effective succession plan that a company can take in this new company
is formed by merge with the small company for earning the higher profits and revenues.
o Advantage- the main plus of merger is that it helps in earning more new profits
and longer sustainability in the marketplace(Hess and Sorensen, 2015).
o Disadvantage- The major drawback of this type of succession plan is that using
this strategy is a very difficult task because it may contains conflicts internally
and due to this management of the firm may affected.
 Acquisition- It refers to that strategy in which one company acquired another company
with more than 50% ownership. in context of Taylored games this succession strategy
contains advantage and disadvantage.
o Advantage- It contains the major benefits that shows that company can deal in
the dynamic nature because due to acquisition they contains more rivals in the
marketplace which may helpful in generating more strategy.
o Disadvantage- Due to acquisition major problem can be face by the company in
their internal environment such as conflicts etc.
Exit strategies
 Open market sell- It is the best exit strategies that are used by the Taylored games in
which company can sold their business in the open market where there is large number of
buyers are present. It also includes pro and drawback that can be shown below.
o Advantage- The major gain of this type of exit option is that there are large
number of buyers are available that helps in earning high profits.
o Disadvantage- the major drawback of this type of strategy is that it may contain
more time and due to this company may feel more pressure(Hess and Sorensen,
2015).

CONCLUSION
From the exceeding description it is to be concluded that planning for growth is an
essential for the company as it helps in enhancing the growth of the company and longer
sustainability of the business. It includes various terms like porter’s generic model and ansoff
matrix that is the best appropriate strategy for the expansion and exploration of the business and
it also helps in longer survival of the firm in the marketplace. Therefore, in these funding sources
is an effective term that gives the organisation a high growth and success. at last build a business
case that helps in applying and making suitable strategies for the business and implemented in an
efficient manner so that business venture may enjoy large expansion and profits with longer
sustainability. It also suggests the exit options that can helpful to taking the money when the
company may face major crises.

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