Growth Opportunities for Verdant Leisure: An Analysis

Unit-42
Growth opportunities

Table of Contents
Introduction..............................................................................................................................................3
Growth opportunities...........................................................................................................................3
Ansoff’s matrix....................................................................................................................................3
Funding................................................................................................................................................3
Exit/Succession options.......................................................................................................................3
Defining terms.....................................................................................................................................3
Conclusion...............................................................................................................................................3
References:...............................................................................................................................................3

Introduction
SMEs are the Small and Medium Enterprises which have turnover less than 60
million dollars and have fewer employees than 250 (Dörnyei, 2020). In SMEs there are three
different categories of enterprises i.e. medium sized, micro-business and small business. All
the categories are defined through their turnover and number of employees.
Verdant Leisure is a privately owned SME which offer holiday homes. It is acquired
by Lancaster, Lancashire, United Kingdom and have 51-100 employees currently working in
it. The company offers self-catering holidays and holiday home ownership. The report will
discuss about various growth opportunities, Ansoff matrix, succession options and business
plan for Verdant Leisure.
Growth opportunities
Growth opportunities refers to the opportunities which business can use to develop
and expand their business. The various growth opportunities available to Verdant Leisure are
following:
Merger and acquisition
Merger refers to collaboration of two businesses, forming one business. Acquisition
refers to the acquiring one business by another business (Maung, M. and et.al., 2019).
Verdant Leisure can use any of the method to grow business.
Pros and cons: The major benefit the chosen company can have through this strategy is
increased market share with minimum investment of costs. However, the ownership of
business can get influenced.
Geographical expansion
This strategy refers to expanding business on the basis of geographical segments. The
company can expand its business in local and global level.
Pros and cons: The major advantage of this strategy is the company can improve its business
image and get a competitive edge over its competitors. However, geographical expansion can
be very expensive for the company to implement.
Innovations

Innovation refers to the introduction of improvements or new processes, techniques or
products and services (Nicholls, 2018). Verdant Leisure can invest in R&D to bring
innovations in services and grow its business.
Pros and cons: This strategy will allow the company to attract new customers as well as
retain their existing customers. It can also enhance its market share through introducing new
services. However, they can be very costly and time consuming.
Business re-positioning
Business re-positioning refers to the process of changing the perceptions of consumer
about the offering their products. Company can use various marketing tactics and re position
its business.
Pros and cons: The chosen company can use this method and retain its existing customers.
However, this strategy cannot help company to attract new customers.
Ansoff’s matrix
Ansoff’s matrix is a framework which provide various options through which
companies can identify, analyse and plan their future strategies for growth. It also provides
the risks associated with each strategy.
Definition
As per the views of Zanjani and et.al. (2020), Ansoff matrix refers to product/market
expansion grid which provide various opportunities to business for growth and development.
Market penetration
Market penetration is the strategy in which companies promote and use other tactics
for their existing products and services in their existing markets (Loredana, 2017). Verdant
Leisure can use this strategy and promote its current services in the existing markets through
advertisements, promotion, distribution channels, pricing and other methods to develop the
business.
Pros and cons: