Austin Fraser Recruitment Consultancy: Growth Strategies Report

This report provides a comprehensive analysis of growth strategies for Austin Fraser, a UK-based recruitment consultancy. It begins by evaluating key considerations for growth, including market share, diversification, and the importance of consolidating existing performance. The report then applies Ansoff's growth vector matrix to identify potential growth opportunities such as market penetration, market development, product development, and diversification. It further explores potential sources of funding, including personal savings, investors, bank loans, financial institutions, and government grants, along with their respective benefits and drawbacks. A business plan for growth is developed, including financial information and objectives. Finally, the report assesses exit or succession options for small businesses, outlining their advantages and disadvantages, providing a well-rounded perspective on strategic business growth and development.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key considerations to evaluate opportunities for growth in an organisational
context ........................................................................................................................................1
P2 Assess the growth opportunities through Ansoff's growth vector matrix..............................2
Task 2...............................................................................................................................................4
P3 Describe the potential sources of funding available for business with benefits and
drawbacks....................................................................................................................................4
Task 3 ..............................................................................................................................................6
P4 Develop a business plan for growth that includes financial information and objectives .....6
Task 4 ..............................................................................................................................................7
P5 Assess exit or succession options for small business with benefits and drawbacks.............7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning for growth is an activity for strategic business which enables owners to make plans for
growth and development. It is required to to increase sales, face intense competition and grow in
future. This includes components that are helpful in building customer value. Growth planning
also assists in achieving goals and objectives effectively. This report is about a small medium
enterprise Austin Fraser is which is an recruitment consultancy firm in UK. This study will
focus on strategies available for growth opportunities. Methods through which organisation can
raise funds would be assessed in this research. It is necessary to design proper business plan for
growth that consists of objectives and financial information for developing business. This report
will include various ways in which small business can make exit strategies. .
TASK 1
P1. Key considerations to evaluate opportunities for growth
It is very important to evaluate the opportunities available for business. Growth includes
various risks, but evaluating its options properly can deliver security, stability and success in the
long run (Brinckmann, Grichnik, and Kapsa, 2010). It includes identifying pros and cons of
particular development scenario. This also shows right strategies for business and the finance
options that will suit particular organisation. Austin Frazer is an recruitment consultancy firm in
UK. It is specialist in providing recruitment for IT, engineering, and life sciences. They believe
in being open and transparent with its clients. This company is focussing a lot on development
scenario and for this it is identifying options for growth. To know which opportunity is more
effective it is required to evaluate it. Main considerations to assess growth possibility available
for this company will be following-
Importance of growth- Firstly, it is essential to understand the importance of growth in
business (Burns, 2010). It can be measured by looking at some statistics that includes turnover,
market share, sales, profits and number of staff. This helps in knowing which factor will
contribute more in improving the business performance. In this business, sales could be the main
factor in growth as higher sales will result in maximized profits. Combination of sales and profit
could be the best option for development of business. To develop successful growth strategy, it is
required to know what exactly can fit in this firm.

Consolidate existing performance- Before pursuing for growth opportunities, it is
essential to ensure that current business performance is efficient. It is required not to neglect
existing customers as they could be the most important in development scenario (Chapin, 2012).
Timing is crucial in any growth strategy and so, it is important to get answers of the following
questions:
 Can business cooperate with expansion or its is working in full capacity or not?
 Did firm has appropriate resources and system in existing business to deal with
expansion?
It is required to include additional staff, new production process and equipment to pursue
growth strategies in a flexible manner.
Market share - To achieve growth by increasing market share, it is required to attract
new customers. It can be done by understanding the customer base and competitor firms. For
this, existing consumers are to be identified and it is also seen whether there are any other
interested group of buyers who are not targeted before or not. Strengths of competitors are also
required to be analysed as this helps in knowing why consumers are purchasing from them.
Austin Frazer needs to know their unique selling points that will help in attracting more clients.
Company should identify that whether there is need for bringing changes in pricing, marketing
and distribution strategies or not.
Diversification- Many small enterprises adopt diversification as growth opportunity but
there are various risks due to limited resources in the firm (Cron, DeCarlo, and Dalrymple,
2010.). Business can be diversified by launching new commodity and services for existing
customers, creating new market for existing services and choosing new market for new services.
Before choosing this option for growth, it is essential to be clear about the costs to be occurred in
this alternative. Diversifying with similar services could be less risky for this firm rather than
creating new services for new market place.
Identifying the best suitable option- Main consideration while identifying growth
opportunities is to know their suitability in business. It will help in making proper strategies for
the development and choosing the best option that can be suitable as per resources and capacity
of this organisation. This could lead to more success and profits in business.

P2. Growth opportunities through Ansoff's growth vector matrix
Ansoff's growth matrix suggests the ways in which business firm can make growth
strategies. . The output from this study suggests appropriate growth opportunity and this provides
a direction for making business strategy. These are as follows-
Market penetration- In this strategy, business focusses on selling existing services in an
active market. It works to achieve following objectives-
 To enhance market share of current products and services. This could be gained by
developing competitive pricing strategies, effective advertising and sales promotion
activities (Durand, and et. al., 2011).
 To maintain the control of developed market.
 To give tough competition to rival firms by introducing aggressive campaigns of
promotion and attractive pricing strategies.
Market penetration does not require too much investment in research as it focusses on
market and products that are already known.
Market development- In this growth strategy, Austin Frazer can develop its business by
selling existing products in the new market. It can be practised in the following ways-
 Market in new geographical area by providing services to other countries
 Adopting new dimensions for service to clients.
 Creating new channel of distribution
 Making different pricing strategies in order to attract more customers and create new
market segment
This strategy includes more risks as compared to market penetration because of its focus
on new target market.
Product development- This growth strategy aims at introducing new services in the
existing market (Eddleston, and et. al., 2013). It requires developing new competencies and
modifying the services in order to attract current customers. Such options are suitable for firms
who want to remain competitive. This scenario focusses on
 Innovation and research
 Identifying changing needs of customers
 Becoming first one to introduce a particular service.

Diversification- This strategy includes creating new services in new market. Austin
Frazer can adopt this option to attain development but this is very risky as moving into new
market requires lot of experience (Hough, and et. al., 2010). It is suitable for firms which is ready
to take risks and having appropriate funds to recover the chances of failure.
Task 2
P3 Describe the potential sources of funding available for business with benefits and drawbacks
When a business firm wants ton expand for the purpose of growth then huge fund is
required. Small business enterprise like Austin Frazer can raise finance through various sources
but it is necessary to choose right medium. When funds are raised then there are certain benefits
and drawbacks that comes along with that. So, it is essential to choose source of finance very
wisely. This entity can raise money from following options-
Personal savings- Raising funds from own savings and assets could be great source of
capital. It is most safest medium to have money for expansion of business (Kastarlak, and
Barber, 2011). There is no need for paying ant kind of interest as amount belongs to company
itself. It does not creates any pressure of returning the money in certain time.
Along with these benefits, there are certain drawbacks of this medium. In case of failure,
owner faces loss of personal savings and various assets like retirement accounts are at risk which
is not good for entity.
Investors- Small business enterprise can raise money through these sources as investors
looks for appropriate business firms where they can invest their money and gain profits. Such
persons acts like active partners in business as they have provided capital in firm. They shares
profits and losses of company.
Drawback of this medium is that , once investors have invested their money, they can
control the enterprise. This sometimes leads to lack of independent decision making and chances
of conflicts.
Bank loans- Loans from private banks could be another good option to raise fund. They
provides finance for a fix time period with certain interest rate. It gives loans to all size of firms
through cash credits, overdrafts, term loans, discounting of bills, letter of credit etc. This amount
is to be payable either in lump sum or in instalments. There are various advantages of raising
money from banks. They provides timely assistance to firms by issuing funds whenever business

requires. Banks keeps all the information secured that are provide by business firms while
borrowing process. It is most flexible source as amount of loan can be increased if more money
is needed.
Drawbacks of this medium is that they provides loans for short period and renewal is
difficult. Detailed investigation is conducted by banks in which they checks affairs of company
along with financial structure. In various cases, difficult terms and conditions are imposed by
banks such as restriction on sale of secured goods etc.
Financial institutions- These institutions are set up by central and state government.
They aims at development of small business enterprises and these are also known as
development banks. This source of finance is suitable for large amount of funds and for long
terms. Raising funds through such institutions provides various benefits. They provides long
term finance that is not possible with commercial banks. Along with funds, they also gives
financial and technical advice to business firms. Repayment of loans is also easy as money can
be paid in instalments which reduces burden from firms.
It has certain disadvantages also as such institutions follows rigid methods to grant
finance. There are so many formalities and proceedings that are very time consuming. They also
restricts the power of borrowing from other sources.
Grants and loans from government- Sometimes, government also provides funds for
the purpose of growth in small business enterprises. They provides free money to business firms
in form of grants. There is no interest rate charged on such amount.
There are some drawbacks of this source as such finance come with too much red tape.
Yearly budget issues can also affect availability of such funds.
Austin Frazer consultancy firm can raise fund from any of these sources in order to
expand business to achieve growth. They can borrow money from the medium which they feels
most suitable for their enterprise.
Task 3
P4 Develop a business plan for growth that includes financial information and objectives
Business plan is designed to understand the ways in which money can be generated and
business can be made sustainable. This includes information about goals, strategies, plans and
financial forecasting. Business plan for Austin Frazer Consultancy is as follows-

Company overview- It is an recruitment consultancy firm in UK. This company is
specialized in providing recruitment to IT, engineering, aviation, and other scientific fields. It
aims at providing quality workforce to its clients.
Aim- To grow the business in this competitive market.
Objective- Its main objectives is to adopt digital technology to increase the market share
in recruitment consultancy sector and enhance the market area with the highest number of
customers in order to achieve competitive advantages.
Vision- To become market leader in recruitment consultancy firms sector and provide
wide range of the best quality services to its customers.
SWOT- To develop effective business it is very important to identify the strengths and
weaknesses of this company. It is also required to evaluate the opportunities and threats available
in market . This could help in effective formulation of strategies for growth. SWOT analysis of
this enterprise is as follows-
Strengths
 Good quality services.
 Positive work place for employees.
Weaknesses
 Operating in single market.
 This business has low profit margin.
Opportunities
 It can expand globally through online
collaborations.
 It can diversify for attaining growth.
 This firm can introduce online services
of recruitment for future growth.
 Technological advancements for
development of business.
Threats
 Policies of Brexit can affect pricing
strategies.
 Competition in consultancy sector is
very tough as number of competitors
are increasing day by day.
Budget-
Years 2016 2017 2018
Particulars
Advertisements 500 450 300

Purchasing 1000 1500 3000
Sales 2500 3000 5000
Profit
(expenditures -
income)
1000 1050 1700
Business plan for Austin Frazer:
Business description: The business services that is been provided by the recruitment
consultancy firm help in better handling of operations that supports a better growth of the trade
firm. This helps in suitable rise in functional capability of the organisation thus helps in a better
revenue generation to the firm. This will help the firm to imbibe the latest and innovative
policies and measures that will help in better growth of the company.
Market strategies: Recruitment sector is wholesomely dependent on marketing and networking.
This in this case, company will adopt effective marketing strategies that will help in better
development of high quality service and products to attract more and more clients or customers.
Austin Frazer will look after the cost effective and better strategies that will help in suitable rise
in overall functionality of the company.
Competitive analysis: this is done to identify the strengths and weaknesses of the competitors in
respect to their own. This will help in better rise in overall rise in functional capability of the
company. The strategic planning of competitive strategies and measures that will support a good
rise in operational capability and will help in suitable management of business operations in a
better way.
Development plan design: Austin Frazer will develop a good plan that will help in better rise in
compatibility of the operations. This will also help in suitable rise in functional capability of the
organisation that will support a good handling of operations that will improve its operational
capability and meeting of overall operations in a better way. This will also help in suitable
handling of operations which will give rise to the better handling of business operation in a better
and effective manner.

Financial plan: this will involve a better budgeting and assessment of the financial requirements
of the company ad develop a good quality product and services, that will give rise to the better
functioning of operation that will help in suitable rise in business functionality.
Operations and management plan: it involves the better following of effective roles and
responsibilities that will help in suitable rise in functional capability of the company and manage
them in a very effective way to gain a good control over different actions that are been
performed in the business organisation.
Task 4
P5 Assess exit or succession options for small business with benefits and drawbacks
Exit strategy is something for which every investor in small business looks for. It is a
contingency plan that are executed by trader, investor or business owner to liquidate financial
assets or disposal of tangible business assets (Wynn, 2017). This is executed for exiting non-
performing investments or closing business which is not generating profits. Various exit
strategies which can be selected by Austin Frazer are given below-
Liquidation- This includes selling of assets and closing up shops. In case of small
business, which are dependent on performance of employees, liquidation is the only option as
they don't have anything else to sell. The valuation can be altered a per the process and the
returns that are been generated by selling of proper assets owned by the company.
Advantages-
 It is simple option for exit of business.
 Using this strategy, business could be wound up very quickly.
Disadvantages-
 It gives the lowest returns on investment to the owner of company. Money is generated
only through sale of assets such as lands, equipments, or stock.
 Value of second hand assets of business are very low , even if it is non- depressed
market.
 Creditors claims first on fund generated through liquidation.
Keep business in family- This is another strategy to exit. This includes keeping the
business in family. It ensures that legacy will remain continue. This helps in avoiding the

external expenses as the profit or revenue that is been gained is used by a single consuming
body.
Advantages-
 It can make smooth transition of business by grooming successor of family.
 This strategy allows the owner to keep a hand on business as an advisory even after
selling the firm to other family member (Ziari and et. al., 2012).
Disadvantages-
 Developing a family succession plan could be difficult sometimes and it may lead to
conflicts amongst family members for ownership of business.
 It is not sure that every member of family has adequate skills to take over business and
run it effectively.
 Customers might not accept new management or changes occurred in company.
Sell business- Sometimes, current staff members are interested in buying business.
Another way could be selling business to these employees and managers. This will help the firm
to sustain its functionality and thus will support a good rise in operational ability of organisation
that will give rise to operation and meeting of operation in a better way.
Advantages-
 The business can get success as employees takes over a already established business with
which they are very familiar.
 This scenario may allow the previous owner to have some share in business or be a
advisor in it.
 When employees captures business then it helps in increased loyalty and highly
motivated staff. This can result in success of business.
Disadvantages-
 Many times employees are not qualified as per the suitability of business.
 Customers might not approve changes in firm and new management scenario.
Sell in open market- This is most common exit strategy for business. It includes selling
business in open market (Kraaijenbrink, Ratinho, and Groen, 2011). It needs time to groom up
business for sale in order to attract most possible prospective buyers. This approach will help the
firm to gain a good support on financial firm and thus will help in getting better prose in market
for its goods and values.

Advantages-
 Assets and liabilities are established when business value is increased for the purpose of
sale.
 Business could be made profitable to attract more buyers.
Disadvantages-
 Finding buyers for open market sale is an difficult task.
 It is very tough to build value of business and make it attractive for sale through open
market.
Sell to other business- Acquisition of small business by another firm could be profitable
as this may lead to quick expansion, connectivity between business activities and achieve
competitive advantages (Keough, 2015). This can be also considered a merger and acquisition
that will help in suitable handling of wide range of operations and actions followed in firm to get
a financial and operational stability.
Advantages-
 It helps in quick sale and earn more profits.
 This leads to growth.
Disadvantages-
 Due to this acquisition, existing employees lost their jobs.
 Sometimes competitors pretends to show interest in buying the business in order to know
informations related with financial data and customers list.
CONCLUSION
It can be concluded from above report that, it is very important for business firms to
adopt effective strategies for growth to attain future development. Austin Frazer consultancy
need to evaluate its growth opportunities and it must grab that option which will be most suitable
for its business. As per Ansoff's growth matrix, there are various strategies for growth. It
includes, market penetration, market development, product development and diversification.
Firm can choose any alternative in order to expand its business. Innovation and adopting new
technological advancements can lead to development of small enterprise in future Fund is very
important component for expansion and there are various sources of funds. This enterprise can
raise finance from any source which they feels most appropriate for there firm. To achieve
effective growth it is required to design a business plan which includes financial information and