The Berkeley Partnership: Growth Options, Funding, and Exit Strategies

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PLANNING FOR GROWTH

Table of Contents
INTRODUCTION................................................................................................................... 2
LO1 KEY CONSIDERATION FOR GROWTH OPTIONS................................................3
LO2 FUND SOURCES AND THEIR IMPLICATIONS TO THE BUSINESS..................8
LO3 BUSINESS PLAN........................................................................................................10
LO4 EXIT STRATEGIES....................................................................................................14
CONCLUSION..................................................................................................................... 16
REFERENCES.................................................................................................................... 17
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INTRODUCTION
Setup of business is not enough for the development of the business. Every
organisation needs to expand its business. Expansion of business can be done by
proper planning and using new techniques. In the assignment, the learners come to
know about the operations and techniques used by the small and medium-size
industries for the expansion of the business, factors affecting the business and how
to overcome to these factors. Proper planning and operation need analysis of the
market for the expansion of the business. The report describes a medium sized
company named The Berkeley Partnership which is situated in London and New
York and provides consultancy services to the household names and global
organisation for transforming the business.
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LO1 KEY CONSIDERATION FOR GROWTH OPTIONS
The growth of the business is an important aspect of the expansion of the business.
Every organisation needs opportunities for the development of the business.
Business expansion helps in gaining profit from the market and leads the business
towards success (Burns, 2016).
The Berkeley partnership is an independent management consultancy founded in
1990 and based in London. The aim of the organisation is providing support for
transformational change and working with the clients to achieve their goals. The
company includes 100 companies as a client, government and multinational
department. The company plays a vital role in making development strategies for
small industries and transforming their business. The company needs to grow its
operations fully established. For the growth of the operation, the company needs to
do market analysis that helps in knowing the strengths of the competitors, demands
of the customers and new innovations in the market. The analysis can be done by
following different analysis strategies (Liu et al., 2019).
PORTER’S GENERIC MODEL
Porter’s generic model is used for determining the competition range in the market.
With the help of Porter's generic model, the company comes to know about the
business profit from the market. The organisation can possess two basic types of
competitive advantages i.e, low cost and differentiation. The model includes four
elements; cost leadership, differentiation, cost focus and differentiation focus
(Harding, 2017).
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Figure 1: Porter’s Generic Model (SM, 2019).
Cost leadership- cost leadership is the process of achieving profit from the market
either by reducing the price of the product or by increasing the market shares. The
Berkeley Partnership organisation needs to follow the strategy for gaining profit. The
company needs to decrease the consultancy fee that attracts more and more clients
towards them and enhances the business (Bell et al., 2017).
Differentiation- Differentiation refers to the process of making the product and
services different from others so that it attracts the customer that helps in the profit of
the business. The company needs to use some new and unique strategies that are
different from other competitors for serving the clients. Different and unique
strategies attract clients that help in the expansion of the business (Chen, 2019).
Focus- In the focus process the company focus on a particular market for analysing
the needs of the market, and the demands of the customer. The focusing strategy
works on two elements; cost focus and differentiation focus. In cost focus, the
company lowers the price of the product and in differentiation focus, the company
introduces new products. The Berkeley Partnership needs to focus on the unique
demands of the market and clients for earning a profit (Harding, 2017).
PESTEL ANALYSIS
PESTEL analysis is a strategic tool used for analysing the marketing factors that can
affect the business. The Berkeley Partnership can use the strategies for analysing
the market factors that can affect the business that leads to the failure of the
business (Pan et al., 2018).
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Figure 2: PESTEL Analysis (SS, 2018).
Political factor- Political factor includes the policies and rules formed by the
government. The rules may be regarding the taxation policies, governance system,
armed conflicts and government resource allocation. The company needs to
consider the political factors that include the laws and policies of the UK before
entering in the market (Alava and Mu, 2018).
Economic factor- Economic factor includes the efficiency of the financial markets,
economic performance of the country, exchange rate, and downward pressure on
consumer spending. The Berkeley Partnership company needs to an emphasis on
the economic factors of the market that helps in the expansion of the business
(Moutinho and Phillips, 2018).
Social factor- Social factors affect the business and so the company needs to
analyse the social factor. The factors may include health and safety of the peoples,
gender roles, migration of the people and access to essential services. The Berkeley
Partnership company needs to an emphasis on the factors as the migration of the
clients leads the company towards failures (Alava and Mu, 2018).
Technological factor- Technical factor is one of the biggest factors in the market
that affects the business. The technical factors include the lowering cost of
production, development and dissemination of mobile technology, the maturity of the
technology, and technical innovations. The company needs to an emphasis on the
new technology and innovations for the expansion of the business (Moutinho and
Phillips, 2018).
Environmental factor- Environmental factors include the climate, environmental
norms, customer activism, and renewable technology that help in maintaining the
environment. The company needs to look after the environment of the market as well
as the environment of the country before setup of the business or expansion of the
business as the environmental factors have a very adverse effect on the business if
not taken seriously (Alava and Mu, 2018).
Legal factor- Legal factors are the laws and policies for employment. These laws
and policies change with a change in the country. The Berkeley Partnership
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company needs to follow the rules and regulation formed by the UK. The rules
include the business laws, data protection law, employment law, environmental laws
and guides, and health and safety norms (Moutinho and Phillips, 2018).
ANSOFF’S MATRIX
Ansoff's matrix is used for the expansion of the business. The strategy is divided into
four categories and is implemented separately for the growth of the business.
Ansoff’s matrix helps in analysing the market in different ways that are necessary for
the expansion of the market. The Berkeley Partnership company needs to follow the
strategies of Ansoff’s matrix for the expansion of the business and analysis of the
market (Schawel and Billing, 2018).
Market penetration- Market penetration is the process of selling the product in the
existing market. This strategy will help in increasing market share and attracting the
customer with the regular brand. The Berkeley partnership organisation needs to
follow the strategy by service their regular customer with the trusted services that will
help in the expansion of the business. As regular customers don't want new services
because of the risk issues. The organisation needs to take care of the regular
customer by fulfilling their demand and need to look after the issues faced by the
clients in operating business (Bocken et al., 2016).
Market development- Market development is the process of expansion of the
business in a new market with the existing product. This is one of the basic
strategies every organisation uses whose products are in demand. The Berkeley
partnership organisation needs to expand the business with new clients with the
existing services that are trustworthy and useful. The chance of expansion of
business is more if the services are good and well known. In this strategy, the
company needs to find out the clients whose issues can be resolved by the existing
services (McDONALD, 2016).
Product development- In the product development process new product is
established in the existing market. The product establishment is according to the
demand of the customer or according to the market need. The success of the
establishment depends on the quality of the product or on the consumers. The
Berkeley Partnership company need to introduce new services with the existing
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client. The services need to be good so that the client can easily adapt the services
for the benefit of both the companies. The company needs to promote the service by
clarifying the whole process among the client that satisfies the client (dos Santos,
and Fukushima, 2017).
Diversification- Diversification is a risk-taking factor. In this process, the company
introduces a new product in a new market. The market and the product both are new
for the company so there is no estimate for the success or failure. It totally depends
on the consuming power of the customer as a different customer has different
demands and interests. The Berkeley partnership organisation also needs to take a
risk by introducing new services to new clients. The services need to be good so that
it attracts the new client and helps in the expansion of the business. Also, the
company needs to promote new services to the new market for making the services
familiar with the customers (Murdock, 2017).
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LO2 FUND SOURCES AND THEIR IMPLICATIONS TO THE
BUSINESS
DECISION MAKING FOR THE INVESTMENT
Investment for the business plays an important role in the setup as well as for the
success of the business. The inverters and the manager of the company play an
important role in making a decision regarding the investment. Before the
implementation of the investment decision the market analysis as well as the
investment, the analysis is done with the help of the tools. The investment decision
includes a tool, adjust, purpose, monitor, and risk. The company needs to an
emphasis on the entire factor before making any decision regarding investment
(Levy, 2015).
SOURCE OF FINANCE
Source of finance are the sources from where the organisation take funds for the
growth of the business. There are various sources from where The Berkeley
Partnership can take financial help for the growth of the business (Pilbeam, 2018).
Bank loans- Bank loans are the simplest kind of loan taking as there are many
schemes of the bank loan like a business loan. The Berkeley Partnership can easily
take a loan by coordinating with the private banks. The advantage is that there are
many options to with the borrower to return the money back with a time-limited. But
there is a disadvantage that the loan is approved only if all the necessary criteria
meet (Rostamkalaei, and Freel, 2016).
Angel investors- The angel investors are a type of shareholders in the business.
They invest money in the expansion of the business and take an equal share of the
profit. The Berkeley Company needs to find out a partner that helps in investing the
money for the business expansion. The advantage of the Angel investors is that they
guide how and where to invest in gaining the profit and also helps in building new
networks. The disadvantage is that the company needs to share the profit with
another partner until the invested money is not cured (Stankovska et al., 2018).
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Crowdfunding- Crowdfunding is one of the most popular types of funding.
Crowdfunding is the process of taking money from people with the help of social
media and websites. The company needs to interact with the local people through
social media and websites so that the people became agree for funding. There are
many options to invest the money and it is the main advantage of the funding. The
disadvantage of the funding is that the company needs to secure the funds with the
help of tools otherwise the fund will be stolen by someone else that decreases the
reputation of the organisation (Brown et al., 2017).
From family and friends- Family and friends are the person with whole the
company have good relations and trust. The family and friends can easily invest in
the business to maintaining the reputation and raising the standards of the business
as well as for maintaining the relationship. The advantage of this funding is that it is
the fastest and the easiest method of getting fund for the growth of the business.
Another advantage is the flexible process of returning the money. The disadvantage
is that the organisation needs to return the money as soon as possible for
maintaining the relationship that creates pressure on the organisation (Lee and
Persson, 2016).
Venture capital funding- Venture capital funding is the process in which the
investor invest more amount than the business needs and expects to gain the return
by 6 times. In this type of investment, the company gets an opportunity to properly
expand the business; The Berkeley needs to tie up with such investors for the
expansion of the business with more investment. The advantage of this type of
investment is gaining and expansion of new networks through the investor and the
disadvantage is the conflicts occurred after the profit of the organisation (Lukas et
al., 2016).
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LO3 BUSINESS PLAN
MISSION- Berkley’s mission states that “Berkeley’s is by your side when it matters
the most”, this is the main aim of the company to provide best quality services and
help anytime the client is in need. At Berkley's, there is only one agenda and that
agenda is the clients’ agenda.
VISSION-The vision is to satisfy client needs and make them ready for future
challenges and problems through their strategies and expert advice.
IDENTIFIED OPPORTUNITIES- Currently the firm has its business only in London
and New York they have the opportunity to expand in other parts of America, Europe
and Asian market with other parts of the world. They currently work in 10 sectors
majorly in financial and oil and gas industry but they can expand their scope to other
industries like the hospital industry etc.
VALUES –Berkeley partnership focus on long term relations with the clients, they
provide quality services. The aim of a long-lasting legacy is to be achieved by
making them delighted with their services.
ETHICS- Doing thing right for the clients at the right time is both the ethics of the
company and the sweet spot. The aim of Berkeley is to ensure that the clients'
business makes the best decisions that drive them in long term success.
STAKEHOLDERS EXPECTATION- The firms’ stakeholders include its clients, 19
partners and the employees or the members of the firm. The clients are loyal
customers to the firm, that is why the clients of the company come again and again
as they trustfully to the company and they can count on Berkeley in the most critical
situations of their business.
POTENTIAL THREATS AND PROBLEMS–The company faces tough competition
from the big four competitors i.e. Deloitte, KPMG, PWC and EY. These are word
wide famous management consultancy firms that have their presence in the
European, Asian and American market.
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ATTRACTING AND RETAINING THE TALENT-The qualified and skilled staff is
selected for the firm who have the ability to identify and create strategies for the
clients according to the situation and contingency of the moment.
GROWTH STRATEGY-
Loyalty– The main reason why the firm has managed to maintain its clients is that
the people at the firm are loyal and trustworthy whom client can count on in very
tough situations, without having to worry about privacy and security issues. The
people at Berkeley’s maintain the privacy policy and don’t share the secrets and
strategies of clients to others. Customers know that there is no commercial alliance
and is independently known consultancy so they trust them fully.
Quality services and client satisfaction- Every client and his business are
provided with specialised services, their clients include Unilever, Tesco, NBC etc,
where quality is the essence of the business, they are the regular clients of Berkeley
and they have been given the best services (Cameran et al., 2010).
Talented and motivated people- At Berkeley's the employees are self-motivated
and dedicated towards their work, they also care about their clients; they delight the
clients’ experience. 85% of Berkeley’s clients have used services more than once.
Time – The aim of client satisfaction is fulfilled by making people of the firm available
at the right time when they are needed the most by its clients.
SUPPORTING BUSINESS AND REGULATORY ENVIRONMENT
Internal environment- The employees and the partners are the part of the internal
environment of the business, there is always a professional but comfortable business
environment maintained in the office, friendly atmosphere and employees are
appreciated for their good performance and satisfactory service quality. Innovation
and participative style are being followed by the firm to promote new ideas and
creativity in the strategic planning for clients (Noe et al., 2017).
External environment- External environment includes political, legal, social,
technological and environmental dimensions with clients and competitors. The rules,
laws and policies provided by the government that is to be followed by the
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