B-Lands Consulting: Analysis of Growth Opportunities for SMEs

This report, prepared for B-Lands Consulting, delves into the critical considerations for evaluating growth opportunities for small and medium-sized enterprises (SMEs). It begins by assessing various growth strategies, including cost leadership, differentiation leadership, and focus strategies, with an emphasis on the cost focus approach for initial market entry. The report then applies Porter's Generic model and analyzes the external environment using a PEST analysis to identify political, economic, social, and technological factors influencing SME growth. Furthermore, the Ansoff growth matrix is utilized to evaluate market penetration, product development, market development, and diversification strategies. Finally, the report examines potential funding sources available to businesses, such as bank loans, venture capital, and loans from personal networks, providing a comprehensive overview of strategies and resources essential for SME expansion. The document is a student assignment and is available on Desklib.

Cost focus: As per Cost Focus the firm obtain an opportunity within niche or narrow
market where it probably target to the smaller group and set low cost for the services. This
strategy can assist SMEs in the initial duration as it helps in the better operations and
sustain the loyalty of local community.
Differentiation focus: Even here focus is given in the niche market where manger
are more keen to target specific group by charging high prices. This can help the Brexit
consulting company to promote SMEs in term to strengthen their functions and cover up
the cost effectively.
Conclusion: Therefore, based on all the above strategies B-Lands Consulting can
adopt Cost Focus approach by which it can assist small companies to carry out their
operations and fulfil the needs of local residence. This is the better way to initially escape
the competition and accordingly they can widen the arena to perform business.
Additionally, the process help the firm to anticipate external opportunity and possibly
gains the competitive advantage.
Analyse key considerations for evaluating growth opportunity within an
organisation
Planning refer to the process under which preference is given to review the objective of
an organisation and according resources are allocate to build up strong foundation of
firm. It comprises of systematic monitoring of activities based on which personnel
manages their role and attain the target which leads to overall growth of firm (Arzaghi
and et. al., 2017). In context to the B-Lands Consulting plans to evaluate the national
growth opportunity for SMEs in order to upgrade the living standard of people which
simultaneously rise the GDP of country.
Porter's Generic model: This model is used to determine the profitability of
firm by identifying the suitable strategy that help to exploit the opportunity and leads to
long term success. The fundamental basis of the framework is to enhance the average
performance of both small and large companies which finally leads to the possibility of
competitive advantage. Explanation of strategies in context to B-Lands Consulting are
determined below:
Cost leadership: This strategy defines that the organisation in terms to attain growth
opportunity makes effort to penetrate in the broad market for which low prices are
charged. Prevailing strategy can be followed by B-Lands Consulting in order to promote
the SMEs to cover the whole geographical or national territories effectively.
Differentiation leadership: Unlike cost leadership strategy, the purpose of
internal manager is to enrich the quality of product or services and accordingly focus on
the broad market. Here, the company charges premium prices for the unique attributes of
product which can prominently help respected firm as it helps in building effective image
within the geographical territories.
Planning for Growth

Evaluate growth opportunity with the help of Ansoff growth matrix
Ansoff matrix helps in the representation of strategic planning that can help
managing staff to devise favourable strategy that possible leads to future growth and
development. This basically promote the organisation to gain success by enhancing the
market share by producing diverse variation and widen up the current geographical area.
Therefore, the explanation of different type of strategies in context to B-Lands Consulting
are demonstrated below:
Market Penetration: Based on this strategy organisation aims to expand the market share
by focusing to rise the sales of their offering. They overpower the competitive pressure by
setting the nominal prices by which firm can retain existing customer as well as attract
potential ones. This strategy can help B-Lands Consulting to build viable relations with
local residence and enhance market image of brand.
Advantages: This act as a feasible strategy to be adopted by SMEs as they can
accommodate the needs of local market by setting reasonable prices of commodities. By
focusing to enhances the current market share the possibility of both profitability and
productivity increases.
Disadvantages: It is not necessary that the company will be able to wipe out competitive
pressure because multinational companies has already established prominent position.
This somewhere restrict the purpose of respected firm. By focusing or indulgence into the
broad market can hamper the innovation of SMEs.
PEST Analysis: It is the external framework that significantly help existing firm to
identify the opportunity which can help them to expand business performance. This leads
to the stability in the operations of firm where focus is given to enhance the function by
gaining deep insights about market.
Political factor: It represent the involvement of government, trade regulation or relation
as well as political stability of country. In terms of B-Lands Consulting can leverage the
opportunity of stable market within UK where the local authority promote the existence
of SMEs. Along with that during the time of Brexit where large business faced turbulence
due to imposition of various tariff, the small firm relatively help country to maintain
stability and helps in circulation of funds.
Economical factor: In involve the diverse economic conditions like inflation
rate, disposable income of people, interest rate and so on (Beatley, 2014). Within UK, the
economic condition is stable also the disposable income of people is high. This can
successfully help B-Lands Consulting to carry out their contract within stipulated
duration.
Social factor: It is vital for B-Lands Consulting to analyse the current market
trend and preferences of customer. Based on which they can promote the SMEs to
successfully serve the target market by giving value to their demand which probably
helps to gain success.
Technology factor: It involve the usage of advance technology fro better product
of input and delivery of output. B-Lands Consulting can plan out growth for small
businesses by allocating them the innovative technology which makes their task

Product development: The internal manager of company put emphasize to extend the
product line or width of company by adding new product or variant (Bridge and Dodds,
2018). The aim of this strategy is to analyse customer behaviour and help to retain the
interest of potential market. It can successfully help the B-Lands Consulting to fulfil their
contract because here SMEs compel the customer to stick to particular brand.
Advantages: Focuses to modify and add new product into the range to tap the untapped
need of customer. Significant promotion helps to widen up the profitability of company
and gain competitive edge.
Disadvantages: It involve immense capital expenditure in terms to launch innovative
product. To establish the competitive position it is relatively difficult for company to
compete with large rivalries.
Market development: This strategy assist the firm to cover the need of potential customer
by expanding their business within new geographical market. So the B-Lands Consulting
can follow this strategy to target the needs of new customer that leads to profit
maximization.
Advantages: This strategy helps in the overall growth and development of SMEs by
establishing valuable image of brand. It help to build strong position of company by
transforming first buyer into loyal ones.
Disadvantages: Limited presence can affect the existence of SMEs in diverse
geographical market. To generate awareness the manager of company need to incur huge
expenditure on the activities like installing production unit and advertisement of product.
Diversification: This is the unique strategy where company launches innovative
or completely new product for the international market (Daniels and Lapping, 2016). As
the manager does not have experience of dealing within new geographical market so it
makes the strategy risky. Here the operations re quite unpredictable so the B-Lands
Consulting need to analyse the new market and accordingly help SMEs in order to incur
its purpose.
Advantages: It helps in building the global presence of company and strong support of
respected firm can help SMEs to flourish its operations. This can pursuit the advantage of
economies of scale.
Disadvantages: Dynamic environment such as upgrading of technology and changing
requirement of customer involves huge market research which leads to huge expenditure
on company. This even restrict the profit margin of company.
Conclusion: Hence, on the basis of above explanation it has been recommended that B-
Lands Consulting should advice the small businesses to adopt market penetration
approach. This is least risk approach based on which company can enhance its customer
base. Further, it can possibly help in building the strong image within national market that
leads to sustainable development.
Access potential sources of funding that are available to business
Funds are considered as one of the most essential resources of an organisation
that help the manager as well as employee to perform the activities in order to accomplish
the particular objective. This acts as a fuel based on which all the functional manager of
diverse department uses the preferable amount in order to incorporate the business
effectively. But it is not necessary that the organisation especially SMEs always have the
abundant resources due to which there exist diverse funding options which need to
favourably opt by firm.

Venture Capital: It comprises of the process where wealthy investors who are
known as venture capitalist understand the business ides of SMEs and accordingly support
them in order to process business activities. This is the desirable approach that can be
advised by the B-Lands Consulting in order to effectively exploit the external
opportunities.
Advantage: Other than just lending the funds venture capitalist provide the business
expertise to the start up. This suitably helps in taking the effective business decision.
SMEs seeks the availability of necessary resources that leads to faster growth and success
of firm. Along with that company build viable connection with diverse party.
Disadvantage: The ownership as well as control of business get dissolved as the because
of the strong role of venture capitalist. Due to existence of various method and idea can
lead to the conflict which disturbs interpersonal relationships.
Thus, explanation of different funding sources are determine below:
Bank loan: It is the external source of funding where the role of financial
institution is to extend the credit limit in order to incorporate the particular purpose of
small and medium enterprises. Usually the bank offer secured loans where firm need to
keep certain mortgage with banks. Further there are various commercial banks that are
exclusively build for the SMEs. So the B-Lands Consulting can help SMEs to generate
the suitable funds and accomplish the purpose to establish renowned image within
national boundaries.
Advantages: This is the widely use source to generate funds as the bank offer certain
options to borrower such as fixed or flexible interest rate. Along with that they have
limited the documentation need as well as time to sanction the amount to SMEs.
Relatable source to seek the credit as the banks are authorised under RBI act so
there exist no chances to mislead the seeker.
Disadvantages: In case of failure banks have the authority to seize and close the
operations of company. Moreover, in case of default bank can gain ownership in
collateral or security which is the mortgage.
Loan from love ones: It involve the amount which is generated from internal
sources such as through family, relatives, neighbours as well as friends. It may or may not
involve the payment of additional interest rate but the company need to refund the
amount once the goal is attained.
Advantage: Unlike bank loan here the company need not to maintain the collateral. Also
it is the flexible approach because there is no pressure associated w ith the payment date
or deadline.
Disadvantage: In most of the case the written and legal documentation is not maintained
between the lender as well as borrower which can leads to the conflict. If lender does not
charges interest rate then it is not the profitable situation because time vale of money is
ignored.
REFERNCES
Arzaghi, E. and et.al., 2017. Risk-based maintenance planning of subsea pipelines
through fatigue crack growth monitoring. Engineering Failure Analysis. 79. pp.928-939.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Bridge, J. and Dodds, J. C., 2018. Planning and the Growth of the Firm. Routledge.
Daniels, T. and Lapping, M., 2016. Land preservation: An essential ingredient in smart
growth.
Conclusion: Thus, both the internal and external source of fund plays the vital role in
order to cover up the need of business entity. So on the basis of purpose, calculated risk
and dealing an organisation should adopt the most favourable source of funds in order to
successfully attain the objective of company.