Business Growth Planning Report: Key Considerations and Strategies

This report analyzes key considerations for business growth, focusing on a recruitment firm in the UK. It examines market share, turnover, and profitability. The assignment utilizes the Ansoff matrix to identify growth opportunities like market penetration, product development, market development, and diversification. It also explores funding sources such as loans, angel investors, and funding from friends and family, outlining their benefits and drawbacks. Furthermore, the report develops a business plan with strategic and financial objectives and discusses succession and exit options for an enterprise. The report aims to provide a comprehensive understanding of business growth strategies and financial planning for small and medium-sized enterprises, aligning with the UK government's initiatives to support business expansion.

Planning
for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis key consideration of growth opportunities for an organisation..........................1
P2 Identifying opportunities of development by using Ansoff matrix...................................3
TASK 2............................................................................................................................................5
P3 Sources of funds and its benefits as well as drawback......................................................5
TASK 3............................................................................................................................................7
P4 Develop business plan in order to get growth with strategic as well as financial objectives 7
TASK 4............................................................................................................................................8
P5 Succession and exit option for enterprise with its drawbacks and beneficial...................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Government of United kingdom has announced ambitious new target has get more
business which are run their work at small level. In 2013 to 2014, authority has spend approx £
11.4 billion in medium and small businesses those are employing 250 workers or less that is
equal to 26% of total government spending. It is a recruitment firm located in UK and approx
105 workers working here. Organisation has earning capacity is 35,000 pound and growth rate is
43%. In this report covers analysis key consideration for growth opportunities in company and
identifying growth opportunities (Barbour and Deakin, 2012). This assignment has covers
potential sources of funding with each one benefits as well as drawback and make business plan
and exist option for enterprise profitability.
TASK 1
P1 Analysis key consideration of growth opportunities for an organisation
In present scenario, government of United Kingdom has make policies for promoting
small & medium enterprises through this firm are able to take advantages and operate business
activities appropriately. Marketing manager of the company has conducting market research in
order to identify opportunities and compositors plan so that they compete them appropriately and
grape chance. Through this, Austin Fraser has analysis improvement area and take action to get
growth in long period of time thus help to enhance opportunities and organisation are able to
achieve goals and objectives in limited period appropriately (Brinckmann, Grichnik and Kapsa,
2010). Here are explain some key considerations which aid Austin Fraser to grow very fast has
detail below: Market share: Marketing share can de define as how many clients has purchase
particular firm product and services and what is their total contribution in same industry.
Management has develop action of plan for get higher market share, for this they are
produce high quality goods thus help to enhance customer's satisfaction resulted large
number of consumer has buyer organisation commodities. Through this activities, Austin
Fraser are able to achieve competitive advantages as compare to their competitor at
market place appropriately. It is pay very important role for company to get long run
sustainability. Austin Fraser has approx 6.3% in the year 2017. De Poel and Propel has
biggest competitors of Austin Fraser which are provide same kind of services to clients.
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 Turnover: It mean total sales of the company with in a year and it should be
calculated on half yearly, quarterly, or monthly according to their requirement. Each
one company has shows their turnover in their financial report because stakeholder
needed that information and accordingly take decision of investment in firm. Austin
Fraser have turnover of 35 million in a year through this they are generate revenue
which help to operate whole business activities effectively in long run.
 Profitability: By sales turnover, firm are get profits margin. Each one organisation
whether it is small, medium or large wants profitability. Two kind of profits earn by
firm monitory as well as non monitory value. In non monitoring situation firm are
increase their brand value, goodwill, worth, image at market place through this they
are increase their overall value in long run (Burton, 2010). Management of Austin
Fraser has keep focus on different aspects like services quality, buyer's satisfaction,
delivering method and many more in order to get profits. It is a manager
responsibility to provide services appropriately to achieve aim.
 Staff: Human resources manager of Austin Fraser has organising training program
for their staff members in order to enhance their capabilities, services delivery skills,
behavioural etc. Through this, they are provide high quality of services delivery
which help get customer's satisfaction in long run and increase growth opportunities
for Austin Fraser at market place.
 Advanced technology: In current market scenario, technology has rapidly change
with time because each one company has focus on quality of product for this they use
latest technology. By this, enterprise are capable to provide superior goods to their
clients and get higher satisfaction. Therefore, it is very important for Austin Fraser to
look into various aspects like employees skills, capabilities, market strategies,
analysis and many more (Chapin, 2012).
Austin Fraser's overview:
Mission: “Provide best life sciences system” it is a the main mission of Austin Fraser.
Organisation has several IT specialised employees and provide recruitment consultancy to their
business to business client. Firm are delivering their services by latest technology and updated
tools.
Work of Austin Fraser:
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 Specialise hiring consultants from IT sector that help organisation to provide higher class
services to their customers.
 They identifying members those are looking for employment in information technology,
life science and digitalisation.
Foundation and founder of Austin Fraser:
 Pete Hart chef executive officer.
 Derek Simpson of chef development officer.
 Austin Fraser was established in the year 2007.
It is very essential for Austin Fraser to focus on their key consideration like profits,
turnover, market share, customer's satisfaction etc. to deliver appropriate as well as high quality
services to buyer.
P2 Identifying opportunities of development by using Ansoff matrix
In United kingdom, government has create lots of opportunities as well as policies for
small business unit through this, firm are running their whole enterprise activities effectively and
achieve their target in limited period of time appropriately (Christofakis and Papadaskalopoulos,
2011). Ansoff matrix has help Austin Fraser to identify which has method of development has
beneficial for them and how much. That is explain as follows:
Illustration 1: Ansoff matrix
(Sources: Ansoff matrix, 2015)
Market penetration: It is widely useable method in which firm are selling their existing
product in current market. Management of the company has organising industry research to
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identify customer's needs and wants accordingly they are produce commodities as well as
services. Through this, enterprise are capable to satisfy their clients effectively and get higher
market share with existing product. But for this method of development, Austin Fraser needed
large investment but they have not that much fund to spend resulted management of the company
find out position side of this method and compare it with other alternatives and take right
decision (Eddleston and et. al., 2013). Austin Fraser has run their business activities at low scale
so that they want to fix budget for each one task and accordingly completed work in limited
period of time.
Product development: It is very effective method to retain old customers as well as get
new one in large number. In this method, enterprise has develop new product, idea, though,
delivering process etc. for existing market. Administration of the company conducting research
and development activities in order to produce completely new and innovative product and
services resulted they are able to manufacturing commodities. By this, firm are able to attract
large number of individuals and get higher market share as well as profitability. Goods
development strategies help organisation to retain old buyer with us by offering them high
quality product and clients become loyal. Thus enhance brand value, goodwill, image etc. and
Austin Fraser are capable to get long run sustainability appropriately.
Market development: Company has find out new market for their existing product and
services through this, they are selling their current product to new clients. For this, organisation
want to identifying market on the basis of their requirement, needs etc. accordingly they are offer
their goods to them and expend their market. Austin Fraser want to selling their product at
international level and increase their location places resulted get higher customers as well as
profitability (Grover, Bokalo and Greenway, 2014). In order to selling existing goods to new
market product should be standardised in their nature so that each one buyer has purchase it for
full fill particular needs and wants appropriately.
Diversification: In present market scenario product life cycle is very low resulted they
are easily out from market place and replace of it new goods should be introduces. Most of
company, has offer different kind of product to their consumers resulted get higher market share
and profitability. It is a administration responsibility to produce lists of commodities for their
client in order to provide them satisfaction in long run. Through this, enterprise are able to
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achieve sustainability, market position and higher brand value. Austin Fraser wants to
implemented this action of plan at work place and get growth or development in their business.
Henceforth, Austin Fraser want to use two method of growth diversification and market
development in order to get higher market share as well as growth in long run. Through this, firm
are achieve their objectives and aim in limited period of time appropriately.
TASK 2
P3 Sources of funds and its benefits as well as drawback
Organisation want fund to operate their business activities effectively in long run, with
out money on one company exist at market place. Government of United Kingdom has
appreciated and make policies to provide finance to small and medium enterprises because many
business unit those run their activities at low level can not survive for two year due to lack of
funds. So that very important for entrepreneur to identify sources of finance which are help them
to operate whole business activities appropriately (Hough and et. al., 2010). Some of the
important sources of fund are detail as follows:
Loan: It is a most common method to get money. Government of UK, develop rule and
regulation of banks in which they says start ups, entrepreneurship and small business has get loan
at lower interest rate so that they are run their work appropriately. Not only banks but also
several kinds of other financial institutions has offer loan to small scale firm like corporate
societies and many more. Benefits: Loan has fix and legal in which firm paid fix rate of interest to banks or any
other financials institutions. One of the best benefit of it, loan provider has some
limitations and can not sue to organisation for advance payment. Disadvantages: The rate of return has fix so company can not negotiated on that and firm
has pay money to bank whether they have profits or loss. In UK, several different kind of
loan sources are available which are effected loan receiver decision, they easily not
decided which sources of fund are more appropriate (Keough, 2015).
Angel investor: In modern era, many individuals those have money but they can not run
business but wants to invest fund into enterprises. Not only individuals but also group of people
has do the same. Various financials institutions also invest money on small business unit.
Entrepreneur want to find out these kind of person has provide money for investment, the deal
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should be done on the basis of ROI, fix or variable interest according to to enterprise profits in a
year. Benefits: All fund are provided by individual of group of persons on the basis of growth
opportunities (Li, Mobin and Keyser, 2016). Company has get money with less term and
condition and it very people to people. Disadvantages: Finding of these kind of person very difficult and develop trust in
investor has also one of biggest issues of angel capitalist.
Friend and family: This sources of fund are used by most of entrepreneur those are
starting phase of their business unit because on that time on one banks, angel investor and others
provide fund due to unknowingness. Individual has get money from friends & family and
provide them interest, part of profit sharing or any other mode that they agreed. It has also some
advantage and disadvantages that detail as follows: Benefits: Entrepreneur can not make more efforts to get fund and easily with complex
term & condition they get fund to run whole business activities effectively. No
documentation work are needed and firm save time as well as other resources
appropriately. Disadvantages: When Austin Fraser want lot of money, friends and family can not help
because they have limited sources of income and not able to provide large amount. A
part from this, sort of conflicts should be arise among both family or friend and
entrepreneurs. Limited knowledge about taxation policies has affect organisation
negatively.
Equity amount: Small organisation has can not able to sell their share to public but they
offer it to their friend those are become partner of the company. But medium as well as large
organisation has offer their share to public and get money from them. On the behalf of share,
enterprise give divided to shareholders on time to time from their profits (Mitchelmore and
Rowley, 2013). There are not obligation of divided payment on organisation, it is their choice to
pay it or not most of time when enterprise earn large profits then they distributed it if they not
then nothing to pay. Benefits: Get money with any obligation of repayment or divided so it is a very attractive
method of gather finance from the market place.
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 Disadvantages: It take lots of time and resources of the company and management has
full fill lot to documentation requirement in order to sell IPO at market place. Total
subscription of IPO should be 90% it is compulsory for each one company those are sell
their share in the industry.
TASK 3
P4 Develop business plan in order to get growth with strategic as well as financial objectives
Business plan is a one of most important work for an organisation to compete
competition effectively and get sustainability in long period of time. Each one firm has develop
their own business plan through this they identify opportunities, market analysis, competitors,
clients demand, segmentation, targeting and positioning or many more. Through this, firm are
able to achieve their goals and objectives in limited period of time (Moseley, 2013). Here are
explain business plan in detail as follows:
Executive summary: Austin Fraser has most famous small firm in the field of
recruitment consultancy in information technology. It was established in the year 2007 and they
have open only one office and that is Reading. Company has total turnover of 5.2 million pound
that shows they have large number of clients. A part from this, enterprise are located where there
lot of investor and consumers has see them at domestic as well as multinational level so that they
get finance for future action of plan.
Business concept: Austin Fraser has offer recruitment facilities to their clients in which
they provide them consultancy related to how to hire talented candidates according to role and
responsibility. Management of the company it self hire recruitment specialist that are able to
identify individual capabilities, skills, behaviours effectively so that organisation get easily
achieve goals and aim in limited period of time appropriately (Pallagst, 2010). Austin Fraser has
provide high quality services to their customer thus help to build their positive image as well as
brand name at market place.
Market analysis: Administration of the company has analysis market through conducting
research which help to gather information related to rivalries strategies to sell product and
services in the same industry, identify clients needs; wants; demand; requirement etc., market
trends, macro factor and many more. All these information help Austin Fraser to run their
business task appropriately and get sustainability in long time period.
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Management team: At Austin Fraser both director as well as managers has work
together from the year 1995 and know to each other very effectively. Some key person of the
company are:
 President of the company, Co- founder and CEO.
 Portfolio manager. General manager (COO)
Marketing plan:
Marketing management of Austin Fraser has develop marketing plan in which they cover
mission, vision, goals, objectives etc., SWOT, STP, market analysis, financial budget and many
more (Todes, 2012). It help to sell product and services at market easily and achieve goals in
limited period of time appropriately.
Financial budget:
Particulars Amount
Marketing activities:
Advertising 60000
Promotion 25000
Direct selling 23700
Sales promotion 8000
Total 116700
Financial plan:
Organisation has raised 1.5 million pound in the year 2001 which are booked to inside
July 2001. The value of money are shows FY 2002 followed by 2001. focal methodology has
been planed which are utilise worth through this accordingly firm has developing activities for
next year. 1.5 million dollar has search for esteem. FY 2003, company has broadens with return
of 10.9 % on 2.7 million dollar.
TASK 4
P5 Succession and exit option for enterprise with its drawbacks and beneficial
Austin Fraser has lot has lot of option of exist as well as succession method through this
firm are able to achieve goals and objectives in limited period of time. It is a management
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responsibility to identifying growth opportunities in national as well as international level
resulted they are selecting best of one method for expending their working area appropriately.
There are several mode are available for enterprises development like expend their market
location, increase product depth or breath to rise target segmentation, offer completely new
goods and services thus help to sell commodities to new consumers or many more (Valler, D.,
Phelps and Wood, 2012). Some of the detail below:
Liquidation: Firm are has liquidated their all assets and their liabilities at market place
through this firm are able to exit from market place. Benefits of this strategies are walkway in
limited period of time and save resources appropriately. One of drawback is reduce all
opportunities and strength which affected individual negatively like reduce moral etc.
Advantages:
 If the respective company is under pressure from creditors, business can be closed or can
be dealt by practitioner related to insolvency matters.
 Directors can find other employment or start other business unit to minimise the financial
impact.
Disadvantages:
 Respective company will no longer able to trade and will be restricted from using same
company's name in future. Losses related to tax will be there and which cannot be recovered.
Sale business to other: It is a another method of succession of enterprise in which
entrepreneur has sale it to other and get money. Benefits, through this process firm get profits
some time and able to reopen business start ups and back on their own life (Wu, 2015).
Drawback is finding a person or group of people or organisation those purchase business and
provide right amount of it very difficult.
Advantages:
 These type of sales can be structured to minimise taxes and fees. Owner can earn profit and can remain active during or after the sale.
Disadvantages:
 Sometimes it becomes difficult to find the person who is ready to purchase the business.
 It is funded through debt or seller financing which inhibits the company growth due to
lack of capital.
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Selling to Management: It is another exit option for the respective company where they
can sell their business to the management, investors or the trustees serving as board of members.
This is the most suitable option when the owner wants to remove himself or herself from day to
day operations.
Advantages:
 When the business is sold to management it doesn't require significant amount of time
and energy. These are also quicker, cheaper and easier.\
 When selling to the management, confidentiality related to sale can be easily maintained.
Disadvantages:
 There may be some trading risk which may reduce the respective company's profitability.
 It is often difficult to find the exact qualities needed to run the business, if the purchaser
doesn't posses them it becomes difficult to operate.
CONCLUSION
From the above report it is concluded that company has make planning to grow at market
place. Authority make place to extent it to one third in the year 2020. Department for business
skills & innovation has develop various strategies like how to obtaining loans that covers funding
for lending scheme (FLS); the national loan guarantee scheme (NLGS); community development
finance (CDM) and many more, obtaining investment like UK trade & investment, and other
business advice programmes or many more. In this report select Austin Fraser that was
established in the year 2017. these all provide opportunities to Austin Fraser achieve long run
development.
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