Unit 42. Table of Contents INTRODUCTION................

Unit 42

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
LO1..................................................................................................................................................4
P1 Key consideration for evaluating growth and opportunities.............................................4
P2. Evaluate the opportunities for growth by using Ansoff's growth vector matrix..............5
LO2..................................................................................................................................................6
P3 Examine and evaluate various sources of funding by which company generate capital . 6
LO3..................................................................................................................................................8
P4. Business plan design having financial insights growth & strategic planning of business8
LO4................................................................................................................................................13
P5 Assess exit/ succession options for small business explaining benefits & drawbacks for
each.......................................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCE.................................................................................................................................16

INTRODUCTION
Modern era of business environment has ample number of opportunities for both small
and large size organisation in order to deal with number of areas throughout the world. It has
been analysed that some of the firm are gaining advantages of opportunities by making strategies
/ planning for attaining the targets within small spam. Here, the planning term means strategic
business which includes revenue also. It enable business unit to assign all valuable resources in
effectual way by adhering new innovation and technologies. This is carried out with the aim of
determining the risk factor and that may be arises due to changes in business environment.
(Rode, 2018). The present report is based on homes for goods, which deals with real estate and
property dealer. This is a small company of UK based. It cover discussion about key
consideration of small business along with its impacts on growth & development. Evaluation of
opportunities, analysis of funding is also covered. Lastly a financial plan is devised with
enhancement of business with the explanation of exit and success options.
MAIN BODY
LO1
P1 Key consideration for evaluating growth and opportunities.
Growth opportunities tends to options for expansion of business operation at border &
wider extent. With the help of launching some innovative & creative new product/ services as
well as by exploring different market segments it can be possible to gain growth & development
(Yate and Bradshaw, 2018). For this there is huge requirement of investment & it significantly
impose some adverse effects on brand value of company. In context of chosen company, it is
important to address some following factors while searching business activities:
Finance- Entities of selected firm required to allocate funds in effective manner with the
aim of adhering growth opportunities. They all need to determine the available resources with
themselves and measure resources that are helpful for generating funds as that could be loans,
personal saving, venture capital etc.
Required resources- There are number of resources is required in order to expand the
business for gaining growth and that resources are finance, employees, raw material, machinery
etc. managers of selected company try to give due consideration to such elements while planning
expansion.

BCG matrix-
This is a framework that is used by the entities of company in order to measure the
current position of brand portfolio of a company. It help company in devising strategies for
inflating sales and profitability of company (Meck, 2020). This matrix holds four quadrants and
have two axis of market growth and market share of brand. In context of homes for goods, all
four quadrants of this model are discussed below;
Dogs: Such types of product/ services required low market shares in a slowly growing
marketplace. It is not wise in dogs as it may tends to losses. Even though few business unit took
advantage and gain higher profitability in long run. Hence there is necessity to monitor such
products/ services in small time frame. The plastic bags strategic business unit is a dog in BCG
matrix of relative company. It has analysed that has been loss for last 5 years. Synthetic fibre
material is also dog for BCG matrix of real estate homes for Goods Company. For this the
market share is less than 5 % and recommendation for relative company is to divest this strategic
business unit for minimising the further losses.
Cash cow- it is related with the lower opportunity for growth but higher market share of
brand or product. It is considered as most profit generating brand of portfolio. Profit received
from this can be invest in other brand for supporting growth (Walker, 2017). Supplier’s
management strategies in a business unit is considered as a BCG matrix of real estate chosen
company.
Stars- These brands have high market shares & work in market place which is growing
rapidly. It possess potential to earn vast revenue because of higher shares but for this there is
requirement of investment for mating growth. The financial service strategies of business unit is
considered as star of BCG matrix for chosen firm. It operates market that possess potential in
future.
Question mark- These product possess potential but have lower market shares. In this
company need to invest money for earning high profit margins. The confectionery strategic in
business unit is considered as a question mark in terms of BCG matrix for chosen company.
P2. Evaluate the opportunities for growth by using Ansoff's growth vector matrix.
Ansoff's matrix- It refers to a strategic growth model used by entities of company for
determining and devising prominent strategies attendant with the market and product growth of
firm also to examine current competition at marketplace, it help entities to make effective

strategies for future growth & development (Ferm and Tomaney, 2018). With relevance to
selected firm, this is used with the aim of analysing opportunities at marketplace for expanding
business as follows:
Market penetration – It mainly focuses on expansion of business with existing services
at current marketplace. It supply a strategic edge to homes for goods, as it is connected with the
low risk. It is considered as advantageous for institution to those which wants to expand their
services by lowering cost process based on cost leadership strategy with aim of raising market
shares without facing any difficulties (Goldin, Khasnabis and McMahon, 2017). It has been
assessed that it is not viable strategy for selected company as they wish to expand their business
at different location of UK as well competition is also high. So this is not viable strategy for
chosen firm.
Product expansion- This mainly emphasis on new product with existing marketplace.
This strategy assist in fulfilling the needs and demands of end users in order to generate revenue
& for increasing sales. Risk associated with the strategy is found as moderate. It engage users so
that the rate of switching will be maintained.
Market development- It relies on existing product at different new location for grabbing
more consumers of new user. It assist institution in raising the market shares & revenue
generation for gaining entry. This leads to increment in sales & profit margin. With relevance to
selected firm, this strategy act as a great opportunity as it is a small firm and wishes to expands
their business at different place or location of UK.
Diversification- Diversification is other business growth strategy emphasis on launching
new product at new place. It has found that it is a as risky strategy as the changes of business
failure is high associated with implementation of diversification (Fahed-Sreih and El-Kassar,
2017). Loyal consumer will not easily accept new services / product. As well it required number
of strategy for advertising about services/ product for which high investment is needed. This
holds high risk.
From above mentioned all strategies it has been found that for Home for goods the viable
strategy would be the market development, in order to attain business growth & success. This is
due to the services that is offered by this company is well famous and possess potential to serve
at more new location of UK so from this objective of company will be accomplished.

LO2
P3 Examine and evaluate various sources of funding by which company generate capital.
In an organisation it become vital to have adequate amount of funds for operating
business operations in smooth and effective manner. For which it is needed to evaluate the
different sources of funding, available with company to carry out necessary operations. Some of
sources are as follows:
Venture capital/ angel investors – It is considered as a sources of funding in term of
finance and helps business by providing funds for a particular period of time (Bonakdar and
Audirac, 2020). These types of sources provides funds based on attraction of growth
opportunities.
Advantages- There is generation of mutual relationship among entity & investor. As well
building up of strong connection that encourages new start-up business formation from their own
business.
Disadvantages- It may not have desired specialisation as well not useful in decision
making process.
Bank loan- This is one of the most suitable and commonly used source of funds as bank
provides required amount of sources to needed company for specific time period and fixed
charging interest rate. With relevance to selected company, it is the best sources of fund if
reasonable interest will charge by bank.
Advantages: This is casual way of collecting money as it relies on mutual understanding,
and that is agreed by both bank and entity. It is a fastest process of same. There is building of
legal contact between both parties so that in future no conflict will arise.
Disadvantage: Bank charges high rate of interest, which is not suitable for chosen
company as it is small firm and operates at small level. So this can crate financial pressure on
relative company. Sometimes banks demands to a collateral security and that might create
problem for developing company such as home for goods.
Crowed funding- Under this, enterprise can take help from general public to get
necessary funds for expansion (Mundt, 2019). Entries can approach individuals through various
modes like social media. It help chosen company to explore operation at wider extent.

Advantages- There are less legalities associated with this as it is easy to get funds.
Additionally, individual can represent their enterprise ideas to more peoples with crowd funding,
therefore can get expert proposal for future changes in present task.
Disadvantage- This tends to time consuming process because it is not easy job to
influence & convince investor in order to invest money on projects.
Recommendation- According to the above mentioned sources of funding, the most
suitable sources that can be used by chosen company homes for goods is venture capital or angel
investors as it is going to assist towards having low sources of capital is beneficial for company
in long run. As well as it assist in having availability of funds for longer time that will lead to
spreading of cost burden to a minimum criteria in present scenario for home for goods.
LO3
P4. Business plan design having financial insights growth & strategic planning of business
A design of strategic business plan is created by critically analysing certain aspects such
as finance, marketing, budgets & production of goods and services of given business
organisation (Sahoo and et.al., 2020). The plan is a written detailed from of how a business
should run by an entrepreneur, vision of company, cost & revenue analysis etc. Homes for good
is a property based company that deals with various rental as well as real estate businesses for
office set-ups & families requiring a good business plan for its functioning at different localities
in UK. In context of chosen company, following components are discussed to form a better
vision, mission & goal of business as:
Determining different components of a business plan design
Executive summary: This is the first step of putting up significant points while
constructing a business plan that includes identification of vision & mission to full fill ultimate
goal objectives.
Company details: Managing real estate deals on a contractual & fees basis is what
Homes for good deals with as a private limited organisation. The company does not have any
share capital & hereby managers it’s CSR by benefiting children & families with shelter homes.
The group of people at workplace are house designers, plumbers, joiners, landlords & tenancy
officers.

Vision of company business planning: It is important for any small business enterprise
to determine their objective behind running the business & various agendas they need to work
upon for establishing their goal.
Strategic mission: Becoming one of leading property agencies in real estate businesses is
the main objective of Homes for good.
Management team: The managerial structure that is followed by respective company is
hierarchical and have CEO, COO with head management and 7 team leaders with 200
employees. If they open any one new outlet, they need to hire more 20 employees.
Industry analysis: It has been found that the competition in real estate organisation is
increasing continuously and it gives opportunity and scope to get start wok in this field. In
context of respective company they also have similar opportunity to open new outlet and
accomplish its organisational goal effectively. Also with the help of pestle analysis it can be easy
for Goods for Homes, to determine the external environment:
Political- The political stability of UK is very strong and that give huge scope to small
and start up business to enlarge their business effectively and successfully.
Economical- It includes wages, supply, demand and exchange rates etc. In context of
Goods for home they have to analyse all factor and effectively address in order to become
successful in this.
Social- This is related with the attitude, income and belief of consumer, therefore it is
vital for respective company to assess all preferences and requirements of consumers before
expansion.
Technological- Advancement in technologies are important to adopt for all types of
companies. Therefore, to be competitive and to meet up other players of market, it is vital to opt
all new techniques and tool that help the respective company.
Analysis of market industry: A systematic analysis of chosen company is done by
utilizing the STP analysis model. In context of Homes for good main goal of analysis is to target
maximum customers who have potential to invest in selected social enterprise leading to growth
& development discussed as follows:
Segmentation: The process of segmenting market into different categories deals is
exercised by chosen organisation to understand customer wants. Divisions may be subdivided on
basis of geography, demographics or behaviour etc. Homes for good also applied this step to

specify similar consumer preferences with categories defined as investors, attitude of tenants,
people's status, home allocators & landlords etc.
Targeting: After market segments are classified, acquiring different category potential
consumers is determined in this step (Daryono, Wahyudi and Suharnomo, 2019). Chosen social
enterprise, has come up with aiming on families & professional individuals migrating from other
places, officials of branches & young people needing new home for better living etc. resulting in
good sales & profitability for chosen firm.
Positioning: This step lay emphasis on position of chosen business in marketplace with
good reputation. Homes for good did analysis on what it takes to create good value in market of
real estate fulfilling customer needs. It was determined that home aspirants needed proper
hygiene facility, well-furnished home & a positive culture environment.
Value preposition & customer satisfaction: This step is taken by chosen enterprise to
explain to its potential consumers that why they should engage in with their business. The main
points stated by Homes for good were no legality issues in future, good consumer experience,
after sale services etc.
Strategy behind marketing & promotion: To remain stable in long run, chosen social
enterprise has defined their main purpose behind Homes for good as proving a better living
standard to people aspiring for having self-homes. Automated CRM systems, email marketing
methods, social media campaigns etc. were organized while implementing the strategy of chosen
property social enterprise.
Operating plans: Such plans are one time investments for a specific goal to be
established by chosen company. For meeting up such an objective a constructive team for in-
house functions is important for proper handling of customers & landlords authority in particular
Localities Company’s established.
Strategic objective:
 Increase the assets aggregated to company
 Providing quality services to users.
 Maintain business strategy Provides best and quality self-home services to consumers.

Financial projection: In context of selected firm, financial management of incomes,
revenues, cash flows & budgets are discussed under this section important for stabilizing the
revenu8e & expenditures of company.
Financial activity:
INCOME STATEMENT
2018-19 2019-20 2021
Revenue 57823 66202 66614
Cost of revenue 42426 44065 46625
Gross profit 15397 22137 19989
Operating expenses
Sales, General and administrative 11340 11855 12850
Other operating expenses 3049 3040 3359
Total operating expenses 14389 14895 16209
Operating income 4080 4162 3778
Interest Expense 346 315 308
Other income (expense) -1190 -403 -2432
Income before income taxes 2544 3444 1038
Provision for income taxes 939 1004 631
Net income from continuing operations 1605 2440 407
Net income from discontinuing ops 1084
Other
Net income 2689 2440 407
Net income available to common shareholders 2689 2440 407
Earnings per share
Basic 1.19 1.08 0.18
Diluted 1.19 1.08 0.18
Weighted average shares outstanding
Basic 2252 2258 2246
Diluted 2257 2262 2246
EBITDA 3972 4811 2461

Cash flow statement:
Balance sheet:
2018-19 2019-20 2021
Assets
Current assets
Cash and cash equivalents 2067 711 611
Receivables 1584 1463 1628
Inventories 5336 5497 6260
Prepaid expenses 806 835
Other current assets 324 616 350
Total current assets 9311 9093 9684
Non-current assets
Property, plant and equipment
Land 2535 2608 2552
Fixtures and equipment 11368 12124 12860
Other properties 2115 2386 2678
Property and equipment, at cost 16018 17118 18090
Accumulated Depreciation -6066 -6913 -8478
Property, plant and equipment, net 9952 10205 9612
Equity and other investments 540 562 605
Goodwill 14510 14708 14448
Intangible assets 4446 4601 4625
Deferred income taxes 441 558 1042

Other long-term assets 527 675 767
Total non-current assets 30416 31309 31099
Total assets 39727 40402 40783
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 745 1913 1632
Accounts payable 5417 5761 6491
Deferred income taxes 269 64 29
Other current liabilities 1798 1988 2272
Total current liabilities 8229 9726 10424
Non-current liabilities
Long-term debt 4320 4615 5671
Pensions and other benefits 175 169 180
Other long-term liabilities 1016 1111 1559
Total non-current liabilities 5511 5895 7410
Total liabilities 13740 15621 17834
Stockholders' equity
Common stock 22678 21844 21909
Other Equity 353 151 166
Retained earnings 2901 2742 874
Accumulated other comprehensive income 55 44
Total stockholders' equity 25987 24781 22949
Total liabilities and stockholders' equity 39727 40402 40783

LO4
P5 Assess exit/ succession options for small business explaining benefits & drawbacks for each
In the dynamic world, business environment holds number of factors that can influence
the function & operation of company while expansion of business there is requirement to
concentrate on capital generation. But sometime business units are unable to utilize the
enhancement opportunity effectively and that might implies to exist or leaving industry (Schatz,
2017).
Succession plan: It is identified as a strategy in which business is taking all the reins and
there is outlying of the measures to ensure that successor is ready to take the business.
Exit strategy: In this strategy the business is Stanford or sold to a third party and is called
as acquirer. In this there are different types of mechanism that can be used buy business for the
purpose of solving of the business according to suitability and requirement.
Merger & acquisition – It can be refereed as merging of two companies jointly with the
aim of attaining same goal, acquisition refers to process in which the motive of both the
company is expansion of business unit.
Benefits- Assist company in sharing profit & risk in equal ratio. There is opportunity to
explore new opportunities & achievements of higher market shares.
Limitation – In such types of exit/succession, there is possibility of occurring of problems
or conflicts and due to which management team of company got district from their core
objective. Fro0m this there can be merging of vision of two companies & it leads to higher
conflict for management of firm.
Liquidation- This tends to an action plan related with the sell off assets & properties of
firm and that leads to an end. This situation is arises when higher authorities of company
recognise that the business is going in loss and that is not good for them. So during this, the
wind-up option is the best to carry out.
Benefits- This is considered as dynamic which can help business to sell their products
with the aim of recovering of invested money. It is advantageous approach as during closing of
business, entities can acquire reasonable amount of their assets based on original value. So that
they can recover losses from that.

Limitation- This is completed when company's assets are sold in lower rate as compare to
original one. It tends to status of huge loss in business. This is a exact concentration of business
with relevance to huge loss of assets sold.
Main ways an owner-manager might exit the business
There are several ways that can lead to owners and manager existing a business:
Merger and acquits ion: In this there is merging with similar Companies that is bought
by a larger company. For bigger Companies it is more suitable to quickly grow and enhance the
revenue.
Initial public offering: It is used as a preferred mode but is not a recommend approach
for start-ups and very small companies because of their brand image (Krumholz and Hexter,
2019).
Liquidation and closing: In the lifetime the entrepreneurs can make decision related to
exist strategy where there can be liquidation of business.
Key reasons for business failure:
'External reasons:
Poor economic environment: If the economy of a country is not doing well then business
may experience difficulties. Such as situations of recession may lead to cling of business.
Catastrophic unpredictable events: There can be some unforeseen events such as the
present outbreak of COVID 19 has led to situations of a negative impact on all types of business
and industries except the necessity products.
Internal reasons:
Financial reasons: It is a primary reason where the small business may fail because of
lack of funding and working capital.
Inadequate management: Another very coming reason of small business failing is the
due to deficiency of business judgement as a component of management team and ineffective
business planning.
CONCLUSION
From above discussed report it has been analysed that planning for growth is vital as it
offers clarity to business unit related with mission & vision of company. For which a business
plan is formulated for successful expansion of business at new location. For raising funds there
are number of option available for small firm and in this assignment for chosen company suitable

sources of funding is capital/angle investor. As well with the help of BCG and Ansoff's matrix,
entities of company will able to devise suitable strategies for gaining success & growth at
marketplace.

REFERENCE
Books & Journal
Bonakdar, A. and Audirac, I., 2020. City branding and the link to urban planning: Theories,
practices, and challenges. Journal of Planning Literature, 35(2), pp.147-160.
Daryono, D., Wahyudi, S. and Suharnomo, S., 2019. The Development of Green Energy Policy
Planning Model to Improve Economic Growth in Indonesia. International Journal of
Energy Economics and Policy, 9(5), p.216.
Fahed-Sreih, J. and El-Kassar, A. N., 2017. Strategic Planning, Performance And Innovative
Capabilities Of Non-Family Members In Family Businesses. International Journal of
Innovation Management, 21(07), p.1750052.
Ferm, J. and Tomaney, J. eds., 2018. Planning Practice: Critical Perspectives from the UK.
Routledge.
Goldin, S., Khasnabis, D. and McMahon, K., 2017. Designing a Case-Study Assessment
Protocol to Measure Growth in Planning Culturally Responsive Teaching Practice. SAGE
Publications Ltd.
Krumholz, N. and Hexter, K. W. eds., 2019. Advancing equity planning now. Cornell University
Press.
Meck, S. ed., 2020. Growing smart legislative guidebook: Model statutes for planning and the
management of change. Routledge.
Mundt, K., 2019. Strategic Stormwater Infrastructure Planning for Future Growth in Regional
Townships by Kelsey Mundt.
Rode, P., 2018. Governing compact cities: How to connect planning, design and transport.
Edward Elgar Publishing.
Sahoo, S., and et.al., 2020. Future water use planning by water evaluation and planning system
model. Water Resources Management, 34(15), pp.4649-4664.
Schatz, L., 2017. Going for growth and managing decline: the complex mix of planning
strategies in Broken Hill, NSW, Australia. Town Planning Review, 88(1), pp.43-58.
Walker, D., 2017. The planners guide to CommunityViz: The essential tool for a new generation
of planning. Routledge.
Yates, K. L. and Bradshaw, C. J. eds., 2018. Offshore energy and marine spatial planning.
Routledge.