New Car Deals: Evaluating Growth Opportunities and Strategies

This report, focused on New Car Deals, a family-owned car dealership, analyzes various strategies for business growth and expansion. It begins with an introduction highlighting the importance of strategic planning in a changing market and provides an overview of the company's operations. Task 1 delves into key considerations for evaluating growth opportunities using the PESTLE model, examining political, economic, social, technological, environmental, and legal factors. It then applies Ansoff's growth vector matrix to explore market penetration, market development, product development, and diversification strategies. Task 2 investigates potential funding sources, including bank loans and loans from family and friends, outlining their benefits and drawbacks. Task 3 focuses on developing a business plan with strategic objectives to scale up the business, while Task 4 discusses exit and succession options for small businesses. The report concludes with a summary of findings and recommendations, supported by references and appendices.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key consideration for evaluating growth opportunities in the context of organization. .......3
P2 Opportunities of growth with the help of Ansoff's growth vector matrix..............................5
TASK 2............................................................................................................................................7
P3 Potential sources of funding available for a business.............................................................7
TASK 3............................................................................................................................................9
P4 Business plan with strategic objectives to scale up a business...............................................9
TASK 4..........................................................................................................................................13
P5 Exit or succession options for a small business....................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
Appendices.....................................................................................................................................16

INTRODUCTION
It is necessary for businesses to make sure that they are successfully planning their moves
in order to deal with the changing external environment. Globalization and a number of
companies turning their faces to international market have made it essential for small and
medium enterprises to look for various opportunities present for hem to grow and establish (Jain,
2020). New Car Deals is a small and medium enterprise which is a family businesses bringing
good offers for their customers in cars. They are based in Horbury. Business is successfully
dealing with all the customers in a friendly manner. A brief analysis of various frameworks and
concepts is successfully discussed in this report. Various ways in which New Car Deals can
expand their business adopting new strategies is mentioned. Along with it a business plan
including sources of fund, investors, objectives etc. is also drafted. At the end of report various
exit and succession strategies that can be adopted by New Car Deals are mentioned along with
their benefits and drawbacks.
TASK 1
P1 Key consideration for evaluating growth opportunities in the context of organization.
In present context, there are various kind of opportunities are available at marketplace in
order to analysis those opportunities and accordingly plan for future. New Car Deals considered
Pestle model which helps to evaluates such factors political, legal, environment and
technological so organization successfully analysis these factors because affect business model.
Here, these factors evaluation by company so mentioned below.
Political factors-: It play important role because that they all are included those factors which
related to consititution and politics so accordingly businesses followed a strict rule, regulations
and guidelines. Political condition of United Kingdom is strong and stable so they provides
different kind of opportunites to the organisation (DÍAZ, 2016). Goverment planned for
businesses due to smooth running of business operations so easily lanuched products in market
and also take step for those who want to set up business so providing funding for companies. It
provides reliabily in interest rates and decreasing taxes which necessary for New Car Deals. It
includes innovatie plan which start for small enterprises so take innitiative for run small start-up

because goverment plan scemes and stability in economy. People motivated and take initiative to
start small enterprise and earn adequate profits.
Economic factors-: Economics factors refers to those which are affects profitability nad
productivity of company. It major factor such as profit which are influencing of businesses
operation and also described as blood of the company. The economy of United Kingdom is
strong and stable so goverment accordinly planned various schemes in order to growth and
expansion of business. New Car Deals has lot of opportunities because goverments promotes
small sscale enterprises and motivated toward the plan and scehmes so organisation must take
benfits which help in growth and enhancing profitability of company. Disposable income
consedered as necessary and important factor which affecting economy due to goverment also
focused and in effectively take measures which mandatory to foolowed organisation (Jentoft,
2017).
Social factors: Social factors includes religious,beliefs attitudes and tradition so it affects
the market where business performed their functions. It involves community and perception of
individuals so also affects policy of businesses. Now days scenerios is totaly change in order to
people are more like luxurious lifestyle, fashionable and trendy. In context of organisation, it is
essential to understand lifestyle of customers accordingly lanuched products and services.
Businesses considered as market research so easily know about the taste and preferences of
customer. In present context, market change drastically due to day by day changes in products
services and technology at marketplace. Organisation understand the needs and wants in order to
social changes and deliver good deals of luxurious cars for its customers. New car deals provides
electric cars because trends are changes and accordingly business enviorment affect and
developing friendly nature.
Technological factors: Today's enviorment change very fast accordingy rapidly changes in
technology. Business model adapting process in order to manufacturing of products so
accordingly choosen advanced technology (Martins, 2018). In relevance of organisation, conduct
a market research and identify taste, preference and technology which are chnnges very fast so
implementing and provide innovative products and services to customers.This is a benefit for
company as it will help them to enhance their services satisfying customers and stand in
competitive environment.

Environmental factors-: Business focused enviormental laws, rules and regulations in
order to products which cannot harmful for enviorment so goverment also planned such rules and
it's mandatory to followed properly. Resources are important for an organisation because
companies must optimum utilisation and performed operations effectively. New Car Deals
should take care following measures which are related to pollutions and biodegradables. It
followes all the laws because which does not harm the enviorment and sorroundings. In addition
to this, resources can be utilized in proper manner so not lead to depletion of resources.
Organisation deals electric car,accessories and equipments in order to effectively conduct
operations so developing brand image, attract and reataining in the eyes of customers.
Legal factors-: Legal factor refer to those which includes various legal procedures when
business operating at market place. Legal factors includes different kind of laws such as fair
wages laws, labour laws, consumer laws and many more so organisation mandatory to followed
all the procedures because it helps to effectively perform businesws activities. New Car Deals
foolwed all the legal law so does not face any kind of legal obligations against them as well as
developing brand image in the market (Baum, 2018).
All of the above aspects are important when organisation think to expand business at
market place. From the growth point of veiw must analysis the external factors because they
directly affect the business enviorment.
P2 Opportunities of growth with the help of Ansoff's growth vector matrix.
It is model or tool which help to analysis their strategies and pan in order to expansion of
product and market. It also said that a product and market expansion grid. It utilize organization
due to evaluates their strategies for future growth. The matrix show four strategies which can be
adopted by business for future growth so discuss below.
Market penetration: Market penetration is a strategy which utilized by company in order to
expand a existing product in existing market. Organization adopted these strategy because want
to grow business in near future and enhancing profitability of company. It includes expansion of
business in already existing market because increasing sales revenues and achieved sales targets
(Jamal, 2018). It is strategy which essential to adapting company due to develop awareness of
products and services as well as increasing customer segment. This strategy directly help

business model growth perceptive in near future so it does not require huge amount of capital. In
context of company. Choose these strategy so also use effective promotional tools such as social
mediums. Under that social platform such as Facebook, twitter,You tube and whats app. If the
company chooses to adopt this strategy they can use digital media promotional tools which will
help them to penetrate in market.
Market development-: Market development is a strategy which adapting by organization
in order to that expand business in new market. It involves business want to expand existing
product and services into entry of new market. These is one of the best strategy because
enhancing profits and customer in new market. It impacts on products, services and market
which developing goodwill in different market and customer more aware about brands. It also
involves provides all kind of facility to new customer and fulfill all the needs and demands of
consumer. New Car Deals adapting these strategy so focused on new market development they
can start their offices in other cities of West Yorkshire. It utilize various promotional tools to
targeted for new customer (Papageorgiou, 2017).
Product development-: These strategy refers to that company lanuched innovating new
products and services introduce into already existing market. This is advantangenous strategy
which utilize many organisation in order to that products and services lanuched this into already
existing market. It strategy adapting organisation when wants to beat a competitors and grape
opportunities in the market and also fulfil therequirements of customer with the help of
innovative products. One of the disadvantage of this strategy it require huge amount to
invesetment in research and development prograamme because without R&D company cannot
bringing innovate techniques, customer service software, products and services (Gualini, 2018) .
Diversification: Diversification strategy in this matrix and it is a fourth and last strategy
which refers to that organisation focused on entering into new market with the new products and
services. It is a well-planned strategy which utilize by organisation in order to expansion of
business and growth of the company. In relevance of organisation, it is adapting this strategy
because developing new innovative products to targeteing new customer base. In this strategy
when organisation conducting successfully market reserch with both aspect new marketplace and
new products and accordingly choose them because me the needs of customer. Organisation

choose this strategy so they can enter in to new marketplace which refers to new city name as
Horbury as well as prviding new services on motorbikes along with cars.
Hence, so these matrix is essential when organisation expanding business in order to enhancing
profitabilty and producivity. It also leads to increase customer base and developing goodwill in
the market along with create brang image in the mind of customers.
TASK 2
P3 Potential sources of funding available for a business
It is necessary for businesses to look for various ways through which they can effectively
generate sources for funding required to grow and expand their businesses. Businesses are
required to analyze and critically assess all these resources along with their benefits and
drawbacks (Kemp, 2018). There are a number of ways which will help New Car Deals can attain
the investment that is required by them to grow their business. It is necessary for business to
consider all these options before choosing one. Below mentioned are some of these sources of
funding along with their benefits and drawbacks:
Bank Loan: Bank loans are a common source of funding in which businesses take help from
financial institutions. Banks can provide funds to business and charge them some interest in
addition to the principal amount. New Car Deals can easily apply for bank loans and attain the
sources of fund they require.
Benefits: The procedure which an organization has to go through in order to attain loan
from a bank is easy. If the reputation of business is goof it becomes easy for them to attain a
loan. Also the amount of interest that is charged by banks in return of loan are very nominal.
Drawbacks: A disadvantage of taking a loan from bank is that businesses have to use
their property as a mortgage in place of a loan (Van der Valk, 2017). If the business is unable to
payback the loan amount or if any default in payments of interest incur bank have the rights to
sell the property or asset mortgaged.

Loans from family and friends: Another option available with New Car Deals is that they can
take help from their family and friends. They can get the funds from any savings their friends
and family have and also the requirement of documentation can be avoided in this method.
Benefits: Taking loans from family or friends does not require any kind of
documentation. Also the time required to take such loans is very less. Without any efforts loan
can be acquired and it is not necessary to pay interest on such loans.
Drawbacks: Major drawback of using loan from friends and family in business is the
effects it has on personal relationships. Also any kind of delay or default in repayment of such
loans leads to negative effect image of business and the owner.
Venture Capitalists: Venture Capitalists are the individuals who invest in businesses. They are
the people who have funds and are looking for good opportunities to invest in. New Car Deals
will need to make a proper business proposal along with various financial projections which they
can present in front of venture capitalists to attain funds from them.
Benefits: Along with funds venture capitalists also provide business with ideas and
contacts. They can support and guide future business activities that is a great chance for business
to grow.
Drawbacks: It is often seen that the owners loose their control over the business when
they are going for a venture capitalists. A number of times it becomes difficult to clearly explain
the future business plan due to which getting a venture capitalist to invest in business becomes
difficult (Goldman, 2018). Also profit sharing with venture capitalist is not supported by every
business. Also if required it is difficult to return the amount of investment in short period of time.
Personal savings If the owners have required funds available with them then personal saving is
the best way a business can use to source the funding required for growth. There are no liabilities
attached to personal saving. Also the business is never answerable top anyone in this case.
Benefits: Major advantage of using personal saving is that the owner is never answerable
to anyone. There is no extra cost or effort required. Also the control of business is in hand of
owners and they do not need to share it with anyone.

Drawbacks: It is difficult for owner to arrange huge funds. Also in time of emergency
owner may get short of funds which might lead to financial instability. It also reduces the
chances of networking and growing business connections in future.
TASK 3
P4 Business plan with strategic objectives to scale up a business
Business plan is important to each and every organization in order to that it is document
which shows all the details regarding business (Martins, 2018). It is document form in that way
to written in descriptive manner so easily understand. The main aim and purpose to determines
objectives and goals of company because considered the various activities which are to be
undertaken by business. Businee plan design in proper and attractive manner in that way so
mentioned below.
Business Plan
Business Details New Car Deals is one of leading company and
it is kind of small business which mainly deal
in cars, accessories and equipment. It is family
business and situated in Horybury which is
near by West Yorkshire. They are sound
business model which provides all kind of
facility to customers in order to fulfill the
requirements of customers. It involves provides
efficient and professionals customer service
after post sales. They successfully fulfill the
needs and demands of customer so developing
brand image in the mind of customers and also
build healthy relationship for longer period of
time (Baum, 2018). It also followed such
measure which developing good relationship
and make happy of customers. It gives first

priorities to customers in order to getting best
possible deals of car and provides a fabulous
services to customers. It also focused toward
the goal and objective of company accordingly
prepare business activity.
Vision: Company serves best services to and
deliver healthy relationship with customers.
Mission: Main mission of company providing
those products and services to satisfying needs
and wants of customers.
Strategic Objectives: Company follows
measure which help to easily attain objective of
company.
To enhancing profitability and productivity up
to 10% by next year.
Organization with the help of new services
capture market share up to 15%.
Industry and market analysis New Car Deals easily operates and manged
business when other companies face tough
times due to COVID-19 (Jamal, 2018). In that
conditions so many companies winding their
business because lock down and market closed
so it leads to decreasing profit margin and face
very tough condition. For example, In England
so many showroom are reopened one of the
case of flipped in UK car industry which
business faces losses and again reopening of
showrooms. In context of organization, it deals

in both old as well as new cars and they are
helping to customers in order to provides a
rented cars in best rates so customer prefer
more rather than buying new cars.
Customer & value proposition Company achieves target successfully because
they fulfill the requirements of customers and
targeting niche markets. It also planned budget
effective manner so organization provides best
services to customers. Company effectively
utilize promotional tools so create brand
awareness in the market. It developing new
strategies because beat a competitors and
gaining competitive advantages. New Car
Deals, on that basis grape opportunities which
help to achieved objectives of company. It
delivers various kind of services to customers
which included such as customer services,
professional experts,technical experts, better
quality and great deals on cars (Van der Valk,
2017).
Marketing strategy Product: New car deals provides various kind
of services to customers such as accessories of
vehicles, rented cars and professional services.
Price: New Car Deals utilize pricing strategy
which known as value based pricing so
provides products based on the values.
Promotions: There are so many way to
promotes a product and services in order to

create band awareness. In context of company,
used a traditional ways such as television,
billboards, magazine and news paper
(Sharpless, 2018).
Place: Place is important aspect for an
organization because products and services
easily reached to customers. New Car Deals
headquarters situated in Horybury. It utilize
effective distribution channels and the deals on
car mostly locally.
Company structure In organization management teams play vital
role in order achieved goal and objective of
company. It includes Boards of directors, CEO
and general managers. It mains aim to prepare
financial budget of company, making policy
and developing strategies of company.
Mangers is responsible to delegate the
authority to employees and accountable for
work (DÍAZ, 2016).
Resources Resources is essential element for organization
without that company cannot work effective
manner. It includes new machinery. equipment,
tools and man powers with the help of those
providing better services to customers.
Financing The company has required total funding
$100000 and the owner of company have 45%
funds available so only requirement 55% it
means $55000. New Car Deals also taking

financing from other sources such as bank and
Financial institution (Jentoft, 2017).
Risk plan Organization must plan in order to minimize
risk due to taking loan from bank so lack of
property for mortgage so company also
focused on alternate fiance plan like venture
capitalist and take money from friends and
relatives.
TASK 4
P5 Exit or succession options for a small business
It id often seen that planning for growth of a business may bring negative results for some
organizations (Priemus, 2019). In such cases organizations are required to make sure that they
have a plan B which can be alternatively used when the plan does not generate required results.
They can either exit business or use succession plan which are mentioned below:
Management buy in: This is a process in which a management team that is external to
the organization buys the majority or all of shares in business.
Benefits: The major benefit of this strategy is that company can be sold at a higher price. It can
successfully be a win-win situation for both buyer and seller.
Drawbacks: It is often possible that the new management cannot successfully run the business.
This might happen due to new management's less knowledge of business (Sharpless, 2018). It is
also often seen that productivity decreases due to employees not accepting new management.
Management buy-out: Management buy out is the process in which the existing
management of organization is buying the majority or total shares of business to own the
decision making.
Benefits: It is a great way to make sure that all the decisions are in hand of management. It does
not requires much efforts or documentation. It can be carried out in least amount of time.

Drawbacks: It is often seen that management finds it difficult to buy out shares required for
attaining ownership. A number of times management buy outs also raise chances of insider
trading in organization.
Closing the business: Closing the business is a process in which business will shut down
all their operations. In order to do so businesses sell all their assets and use the amount to pay off
all their expenses.
Benefits: Major advantage of this process is that businesses do not have any obligations. It is also
possible for owner of businesses to save for next opportunities if the market value of assets is
more than actual price they bought it for.
Drawbacks: It is a drawback for the employees of the organization as they are left unemployed
after closing of business.
Floating the shares: - Flotation of shares is a strategy when businesses sell their stock in
open market (Buxton and Tieman, 2018). It is an effective way in which businesses ca either sell
their shares or resell the already existing shares.
Benefits: It is a great deal for business as they can effectively earn financial sources for future
investments. It also helps in increasing value of company publicly.
Drawbacks: However flotation of shares requires good financial background and huge costs.
Company will have to spend on financial professionals who can successfully carry out this
process. Another disadvantage of floating of shares in open market is that markets are very
volatile that often leads businesses to face losses.
CONCLUSION
The above mentioned report helps in concluding that there are a number of ways and
strategies that can be adopted by a business if they wish to expand into different sectors and
areas. There are various tools that help to analyze the best options that are present with
organization. PESTLE helps in analyzing external environment of a business where as Ansoff's
matrix suggests different strategies as per external environment. There are a number of steps
included to judge and justify the growth opportunities for which a road map is created called

business plan. It can also be concluded that the business plan does not necessarily bring profits
and organization may need to use exit or succession strategies if their plan does not work.
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Appendices