Planning for Growth

Planning for Growth

Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Key considerations for determining the growth opportunities....................................................1
Evaluation of opportunities of growth by applying Ansoff's growth vector matrix:...................3
LO 2.................................................................................................................................................6
Potential sources of funds for businesses and their advantages and dis-advantages...................6
LO 3.................................................................................................................................................8
Business Plan for Growth and Securing Investments..................................................................8
LO 5................................................................................................................................................1
Successive and Exit Plan for the small business with advantages and disadvantages.................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................1

INTRODUCTION
Organization in the twenty first century is planning unique ways to grow their
business across the boundaries in the competitive market place. In order to survive for longer
time period growth and development of business is important on continuous basis. For this
business associates frame innovative and unique strategies to cope up with the dynamic
environment changes. Every organization invest huge funds in the business to generate revenue.
This report is based on Fontain Motors which deals in automotive sector meeting the emerging
needs of people across the globe. It is located in 1 Ridgeway, Iver SL0 9HW, UK. This
assignment covers key considerations for examining growth opportunities of the firm. With the
help of Ansoff's Growth Vector matrix company frame unique tactics. Various sources of funds
to finance and a business plan is studied for its growth strategy. Exit or succession options for the
firm are also discussed.
LO 1
Key considerations for determining the growth opportunities.
An organization measures its growth opportunities by conducting PESTLE analysis and
Porters Generic Strategy Model to gain competitive advantage in the market and to grow and
develop. Strategic evaluation of opportunities is important to achieve goals and objectives of the
organisation (Al- Bostanji, 2015).
The PESTLE analysis for Fontain Motors is as follows:
Political : The United Kingdom political conditions are stable in nature due to which
there are huge growth opportunities in the market. Foreign trade policy, trade restrictions, labour
laws, environmental laws etc. are covered under political forces. As UK has political stability
there is more job opportunities prevailing in the market. This helps the organization to come up
with new segments in the open market place. (Bensky, 2016). In order to expand business in
UK, there must be some information about laws related to government, taxes, etc. so it is easy to
expand business for Fontain Motors. There is political stability in UK, so it is easy to operate in
new country.
Environmental: pH level of water, climate, pollution etc. are examples of environmental
factors. Fontain Motors use modern tools and techniques to grow the business in the open market
place. By doing so very less wastage is occurred in the environment which is a positive sign for
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the business. By adopting eco-friendly ways and recycling process tough competition can be
created for the competitors which results in maximization of huge profit. In order to expand
business in UK, there must be use of eco- friendly techniques, so environment does not get
harmed and business activities of Fontain Motors can be performed smoothly.
Social: These are consumer driven factors which affect the company externally. These
factors mainly include culture, belief and customs of the society which affect the company
growth in long run (Biancamaria, Lettenmaier and Pavelsky, 2016). Culture and belief are
changes from generation to generation. It also includes birth rate, lifestyle and purchasing power
of consumers. UK is a highly educated country and has a status of a developed nation. Its per
capita income is very high. Despite birth rate is exceeding death rate still population growth rate
is moderate. Consumer have high purchasing power so they can purchase expensive
commodities like cars. Fontain motors have the opportunity to expand its market because
purchasing power of consumer is high. Composition of working population is 67%. In the
country where working population is very high, need more cars for up down of working
professionals. There is very good scope of expansion for auto mobiles sector in UK.
Technological: Company have to take into account which technology is active and which
technology is becoming obsolete. Firm needs to keep themselves updated about the latest
technological trends. Technological innovation helps company to differentiate their product
from competitors. Level of innovation and automation affect the operation of company. London
is a technological hub of UK. Technology is changing rapidly. Fontain motors have to innovate
advanced technology to create an edge over the competition. For instance: the use of virtual and
voice controlled features will be helpful in creating a distinct image in the market resulting into
higher sales. Company have to find the gap in present technology and need to fill that gap in
order to beat the competitors.
Economical: These are factors related to inflation rate, purchasing power of consumers,
gross domestic product of the country. Gross domestic product affect the income of consumers
as former is directly proportional to latter. Company have to keep their pricing strategy
according the economy of the country. High GPD growth is favourable for the company's
growth. Currently UK possess the 5th rank in the fastest growing economy index by World Bank.
Fontain motors can take the advantage of low corporate tax which is only 19% in 2019 which
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