Business Report: Growth Planning for Brooklands Hotel

This report focuses on the growth planning of Brooklands Hotel, a small business aiming to expand its operations. It begins with an introduction highlighting the importance of strategic growth planning and then delves into Task 1, which examines key considerations for growth opportunities, including competitive advantage, market analysis (political, economic, social, and technological factors), and the application of the Ansoff matrix for market penetration, market development, product development, and diversification strategies. Task 2 explores potential funding sources such as bank loans, crowdfunding, and angel/venture finance, evaluating their respective gains and drawbacks. Task 3 centers on the development of a business plan, incorporating financial information and strategic objectives, while Task 4 assesses exit or succession options for small businesses, considering their advantages and limitations. The report concludes with a summary of the key findings and recommendations for Brooklands Hotel's growth strategy.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration which support in growth opportunities for an organisation.....................1
P2 Evaluation of opportunities of growth by using Ansoff matrix vector..................................2
M1 Discuss the options for growth using a range of analytical framework for gaining
competitive advantage.................................................................................................................4
D1 Critically evaluate various pathways for growth by taking each and every risk factor in
account........................................................................................................................................5
TASK 2............................................................................................................................................5
P3 Potential sources of funding with gains and drawbacks of each option................................5
M2 Evaluate potential sources of funding with suitable justification of adaption of one...........6
D2 Critically evaluate potential sources of funding with justified argument of adaptation of
each.............................................................................................................................................7
TASK 3............................................................................................................................................7
P4 Business plan which includes financial information and strategic objectives.......................7
M3 Develop an appropriate business plan for growth and securing investment........................8
D3 Applicability of business plan in order to accomplish business objectives properly............9
TASK 4............................................................................................................................................9
P5 Assess exit or succession options for small business by explaining advantages and
limitations....................................................................................................................................9
M4 Evaluate exit or succession option for a small business by comparing and contrasting with
recommendation........................................................................................................................10
D4 Critical evaluation of exit or succession option for a small business..................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Growth planning is consider as strategic business activity which support business to track
growth in appropriate frame as well as frame plan in a suitable manner so that better results
could be accomplish (Barbour and Deakin, 2012). It is important to frame appropriate and
suitable plan concern with development of an association so that better and appropriate working
get promoted. Before any growth concern operation, management need to keep in mind about all
associated factors. This project is based on planning for growth by taking Brooklands Hotel in
consideration so that better and effective operations could be promoted. Hotel become able to
manage growth and development by applying digital technology into business and concern
operation with innovation in room booking facility as well. With these factors, analysis of key
consideration is essential which can use by small business enterprise in order to maintain growth
and accomplish all related opportunities as well. For every development, there are several fund
raising tools get evaluated which need to adopt by an association for implementing operations.
Moreover, a business plan consider as best factor in order to scaling up operations of an
association.
TASK 1
P1 Key consideration which support in growth opportunities for an organisation
Whenever any small business start operating at large level, wide range of opportunities
start knocking the door for an organisation (Beatley, 2014). These are concern with growth
chances which need to understand by business managers properly so that better and effective
gain could be promoted. One of a thing which associates and create foundation for growth is
competitive advantage. It is essential for a business organisation to utilise all resources properly
with their best capabilities in order to make their products differ from others. This differentiation
in their working support them to adapt competitive advantage so that growth related options
become successful and appropriate in nature.
Brooklands Hotel want to implement digital technology into business through which they
become able to book rooms online as well as they need to determine some innovations as well.
Thus, management need to utilise all resources properly and motivate staff personnels as well so
that they start performing task properly. For evaluating best options for growth, managers need
to analyse external environment properly and then frame plan according to that. There are
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various tools and techniques get evaluated which need to adopt by managers of Brooklands for
evaluating opportunities from external environment:
 Political: First factor signifies about government interference related with new
modification (Chen and et. al., 2014). Brooklands Hotel have to determine all
government interventions of business properly and then frame suitable modifications. If
government imposed less tax rates as well as charges are low in nature then any growth
option could be consider.
 Economical: Another growth opportunity for starting operation in another market is
economical condition (Eddleston and et. al. , 2013). If on an average individual
disposable income level is high then business have an opportunity to generate more
revenue and enhance user base as well. Brooklands Hotel have to determine economical
aspect of another nation properly and then evaluate all pros and cons effectively.
 Social: Third factor for growth possibility is social environment in which business lead to
get started. Brooklands hotel have to determine population of such new area effectively
with nature of each and every individual taste and preference so that better criteria could
be met.
 Technological: Last aspect is associated with technology which need to implement by
business managers in an appropriate frame. If association want to grab competitive
advantage then they have to use new and innovative technology. Brooklands Hotel can
implement digital technology in business through which they start commencing
operations properly.
These are some options for growth which need to understand by Brooklands Hotel properly and
effectively. Although, with these consideration, managers could become able to gain competitive
advantage. Like if political intervention is positive in nature then chances of better operative
environment could be gain. Along with this, customers taste and preferences need to determine
properly as well with installation of new technology. All these factors will support in gain
competitive advantage for better and effective concerning operations.
P2 Evaluation of opportunities of growth by using Ansoff matrix vector
Business managers play a vital role in an association with concentration on development
and growth. It is important to determine all growth related aspects properly of a business
environment so that chances of effective and suitable gain get enhance. Thus, for this context,
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management can opt and determine major routes or pathways of growth and development
chances. In such relation, Brooklands Hotel can use Ansoff Matrix so that better and effective
working become possible. An evaluation of this technique is must which signifies as below in
context of determination of growth opportunities:
Illustration 1: Ansoff Matrix, 2015
(Sources: Ansoff Matrix, 2015) Market penetration: Market penetration basically based on some objectives out of which
first is to maintain or increase the market share of products and services of current goods
and services (Galland, 2012). In such context business selling out their existing products
and services into existing market world with some additional aspects. Brooklands Hotel
have to increase their market share of existing world with high consumption of
customers. Market development: This growth strategy concern when an organisation wants to sell
out their products into new area (Levy, 2016). Some possible outcome for this factor is to
evaluate all new market or geographical area by exporting products into new area. This is
a risky segment of business in which association have to target new market area.
Brooklands Hotel can do this section by implementing digital platform so that more and
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more users get reach. Along with this, market development of Brooklands also get
operate with partnership and merger. Product development: This growth strategy is for existing market area where a business
have good commands over on and develop a new product in such market area (MacLeod,
2013). A successful product development strategy lead to take place by appropriate
contribution of research and development department whom responsible for any kind of
innovation. Brooklands can develop their product through online booking and discount
vouchers. This development in their existing services promote a growth related option for
an organisation.
 Unrelated diversification: The last phase of growth strategy is unrelated diversification
in which association can find out new market area or existing market area where they
start launch a differ product and services from existing business operations. This need
huge amount of fund to get invested.
Brooklands hotel have to exploit technology into business so that they become able to reach wide
area of customers. Network generation is consider as major thing for a business so that better and
effective results could be estimated. Along with this, collaboration consider as another option for
Brooklands when they want to operate in new market area and grow number of opportunities
concern for an organisation.
M1 Discuss the options for growth using a range of analytical framework for gaining competitive
advantage
There are various options for growth estimated by Brooklands Hotel like they can use
digital technology into business so that online booking facility get provided (Moseley, 2013).
This enables hem to create suitable customer base as well as reach to wide area network which
further support them to generate more and more revenue for a business. By applying PEST and
Ansoff matrix, various options get consider in font of Brooklands which can opt by managers so
that better and effective working could be entertain. Moreover, management have to facilitate
suitable partnership and merger options as well in order to make activities more appropriate and
effective in nature.
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D1 Critically evaluate various pathways for growth by taking each and every risk factor in
account
As per the lines of Schetke, Haase and Kötter (2012), growth pathways have to evaluate
by business managers properly with all associated risk elements. There are various pathways of
growth get evaluated by business and its managers so that association could facilitate effective
and appropriate working. Some major risk by targeting new market world is less of knowledge
and new entry into area. To mitigate such risk factor, partnership could be a best option for
Brooklands which enable in order to manage growth opportunities. Along with this, product
development need more and more fund spending on business concern so that such innovative
services could be render to target users which new to market and never deliver by any other
rivalry.
TASK 2
P3 Potential sources of funding with gains and drawbacks of each option
Business need sufficient money in order to perform their duties and responsibilities
properly and effectively. It is important to understand potential sources of funding by managers
so that whenever finance required association can raise money through them. In this aspect,
various options of funding are: Bank Loan: Loan is a kind of debt which provided by an individual to another individual
on an interest rate against with a promissory note which specify each and every factor
properly and effectively like borrowed money, interest rate charged etc. A bank is
provided for medium, short or long term context on a define amount of repayment
(Todes, 2012). There are some advantages and drawbacks get evaluated for a bank loan
out of which it is flexible in nature consider as advantage. But a major drawback is
repayment burden which increase chances of seized property. Crowdfunding: It is a kind of funding for a project or by a venture in order to raise
amount from large population whom contribute small amount of money typically via
internet. This is one of a modern method of funding which need to understand by
managers of a company so that it consider as potential source of funding. There are
several advantages and limitations get evaluate for crowdfunding process. Entry barrier
through crowdfunding is low which starts by following some financial regulation but
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nothing else. One of a limitations for crowdfunding is aware about legislation which need
to follow by a company. Angel and venture finance: Angels are often such individuals whom have high net worth
whom have potential to invest fund for start ups and early stage growing business
concern (Valler, Phelps and Wood, 2012). One of a best example of angel investors is
dragon den and shark tank where some famous individual provide sufficient money to
best idea of start up.
 Investment decision: Another option for fund raising is investment decision which have
to take in keen consideration by managers of a company. It is a major duty to evaluate
such aspect properly in which investment need to take place in such projects whom have
better growth options as well as provide good return. Payback period also need to get
calculated so that best return project investment could be done.
All these are potential sources of fund raising which could be adopted by Brooklands Hotel and
need to consider in an appropriate and suitable frame as well. Although, managers need to
evaluate all aspects limitations and advantages which carried down better and appropriate
outcome (van Assche, Lo and Beunen, 2013). Out of all these, Brooklands can opt investment
decision because whole money is of an association. But concern risk is failure which arise due to
uncertain situation. Along with this, bank loan consider as another suitable approach from which
high amount could be raise easily. Thus, out of these best options need to be adopted by business
managers of Brooklands hotel for development and growth opportunity.
M2 Evaluate potential sources of funding with suitable justification of adaption of one
There are various sources of fund get evaluated by business managers of Brooklands
Hotel out of which best one need to get adopted. Thus, various sources of fund evaluated by
managers of Brooklands stated as follow: Loan: One of a major source of fund is loan in which management can raise money
easily. As they have good income statement of past few years as well as operating at big
level bring many new opportunities.
 Investment: Another option is investment in positive return project. This approach
enables them when payback period of investment is short in nature. Brooklands manager
need to evaluate this aspect properly and then determine its use.
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This combination suppose to be use by Brooklands Hotel so that business become able to
generate high rate of growth and development in concern future. This enables them better and
effective grab of opportunities at vast level.
D2 Critically evaluate potential sources of funding with justified argument of adaptation of each
According to the Ward (2016), funding is a best source for small business to operate at
big level in order to accomplish best results. There are several define areas of funding could be
estimated for Brooklands Hotel which combination need to understand by managers properly: Bank Loan: As per idea of Wu (2015), render is a best source of raising things from
others in order to perform specific duty or a thing. Brooklands hotel can use bank loan
facility in their business with appropriate promissory note for paying debt on time. As
business have good and positive income statement for their concerning operations.
 Investment in projects: Brooklands have to evaluate investment of projects properly and
then facilitate payback period of such investment properly as well. This support them to
accomplish growth options in a possible framework.
TASK 3
P4 Business plan which includes financial information and strategic objectives
Planning is a major aspect of every business which need to understand by business
managers properly and effectively. Business plan needed at such point of course when operations
start commencing on big level with clear objective of sustainability. It constitutes mission,
vision, objectives, values and ethics with stakeholders expectations. Along with these essentials
it also involve, financial information of a company so that beneficial investment decision lead to
be carried down. Moreover, it is important to consider strength and weakness of an association
properly so that better and effective judgement could be promoted.
Brooklands Hotel need to evaluate their mission and vision again and comprise it with all
new modifications effectively. This enables them to gain competitive advantage as well as
operate in a suitable frame. Business plan for Brooklands Hotel signifies as below for better
working in future aspect (Brooklands Hotel, 2018):
Mission: “To provide a superior service to clients through enthusiasm, empathy, original
character, involvement, commitment, creativity and elegance.”
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Vision: “To continue to 'Make it Happen' through our Brooklands ethos, thereby looking after
our guests, team and investors.”
Objectives: A major objective is to generate more and more profit with suitable development
plan in near future consent. Along with this, delivery of quality based services with appropriate
creativity, support, involvement and commitment.
Identified opportunities: Brooklands Hotel need to determine and evaluate all define
opportunities from external business environment. In such aspect, they have an opportunity to
start commencing business operations at new market area as well as developing product. With
this, risk get mitigate through collaboration of entity with others in new target market area, for
this suitable merger options get evaluated in a positive response for better and suitable outcome.
Values:Core value of an organisation is to provide good things so that better consents could be
happen. Another value concern with Brooklands is looking upon on each and every guest
properly and effectively.
Financial information: Company earning is £35,000+ with 4% profit rate. This signifies that it
is one of a best small company than any other else. The staff turnover of an organisation is 32%
which signifies controlled nature and have good motivating staff members. Along with this, 106
staff members gain £17,000 a year as well as win cash vouchers, extra paid holidays and trips in
London. Thus, business have good financial position so that they become able to maintain
sustainability at world.
This plan need to present to investors in an appropriate frame by involving each and
every concern of investment. Business need some fund for which they have to make necessary
things in plan. Good financial position with clear target to customers enhance business
performance as well as support them to maintain efficiency in working.
M3 Develop an appropriate business plan for growth and securing investment
Secure and growth related investment consider as major thing for a business. Business
plan of Brooklands Hotels include all essential aspects of an organisation (Wynn, 2017). They
have a clear mission and vision as well as objectives. All these presents that business work in an
appropriate frame so that chances of accomplishing targets and goals properly become possible.
Highly motivating staff members with appropriate incentives to them make them concern
towards operations. It is one of a best small company since 2014 and continue up in next few
years as well with better and effective growth and development rate.
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D3 Applicability of business plan in order to accomplish business objectives properly
Business plan needs to include all essential aspects of business and concern options of
growth. This enables stakeholders to better understand about various things and appropriate
growth objectives as well. A business plan of Brooklands Hotel only become applicable in nature
by determine mission and vision properly and concern it with growth options. It have a define
financial information as well about staff turnover and their working with motivation charges.
Hence, through beneficial approaches, business plan become applicable in nature for better and
long term consents. Business plan also signifies about position of a company in which current list
stated that Brooklands Hotel are on 24 number of top all small association in United Kingdom.
TASK 4
P5 Assess exit or succession options for small business by explaining advantages and limitations
Some major reason behind every manager of owner exit from a business is their choice.
Sometimes, managers or owners evaluate that business do not have such potential to remain
competitive in market. There are chances of failure usually more in nature which impacted
business more and more. Although, such factors need to evaluate properly and suitable action
lead to carried down if possible.
Some major reason behind failure of a business is concern with internal and external
influences of business. Internal factors associates with employees and CEO of a company whom
sometimes take wrong betterment judgement. Like if investment decision by management went
wrong in nature then organisation start getting decline as well as owners need to shut down heir
operations frequently. Along with this, external factors also impacted on business badly without
analysing it.
If Brooklands want to maximise them at higher level, then there is a need to evaluate and
analyse all related external aspects properly. If they fail in do so then chances of failure get rises
and business lead to get shut down. Some exit routes of successful operating business are
valuation of company so that in case if management found positive valuation of an association as
compared to real one then they have chances to shut it down.
Business need to evaluate all growth options properly as well. Optimum utilisation of
resources reduces chances of failure. Managers need to determine all major factors of failure
properly and use suitable steps in order to prevent them. Hence, operations of Brooklands Hotels
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need to be more specific in nature so that they could become able to minimise chances of
unnecessary failure and risk could be mitigate effectively. Brooklands Hotel could adopt to
several number of options for exit while they derive that performance is not taking place in an
appropriate manner. Hence, several number of consideration for all these aspects are define and
evaluated as follow: Selling of business: One of a noteworthy thing through which fruitful business prompt
get drawn out or a proprietor could exit from it is offering of business. Proprietor have a
privilege to deal out their operational movement whenever. There are numerous people
decide at showcase zone whom need to buy or union their tasks with effective
associations. This should be possible when an individual need to move their activities.
 Valuation of organization: Another leave alternative for a fruitful business is valuation.
Proprietor need to an incentive out their business activities on opportune premise which
bolster them to decide about positive attitude of an organization. This area empowers and
support in offering of an association where an individual could exit out their running
element. In the event that a valuation is in positive thought then proprietor attempt to deal
it out as ahead of schedule as conceivable on the grounds that it give them great cost
generally negative picture could reflect in low valuation of a firm.
M4 Evaluate exit or succession option for a small business by comparing and contrasting with
recommendation
It recommend for small business like Brooklands Hotels to evaluate and determine the
position of a company into market world with every course of time. Although, if management
found that business is not more profitable in nature then managers need to shut it down. Exit
options start taking place only with not analysing internal and external influences properly and
effectively. Chances of exit get rises when business operations become unfavourable in nature.
To deal with them, Brooklands Hotel have to evaluate all aspects of information properly and
effectively so that better results could be gain.
D4 Critical evaluation of exit or succession option for a small business
According to the Ziari (2012), every business have some concern things which associates
with exit or succession. Small business usually get exit when their financial condition get
impacted adversely from business environment. Brooklands hotels have to evaluate all exit and
succession options of an association properly so that better and effective gain could be promoted.
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Valuation of business is must with time frame so that when an organisation provide better results
then effective gains get estimated.
CONCLUSION
It get articulated from this project that planning is a beneficial thing for small business
when they start concerning for growth and development. Planning for growth is important so that
each and every resource get utilise in an appropriate frame. There are various key considerations
get determine which concern with growth and associated with development opportunities. Ansoff
matrix vector is supportive in nature so that various growth strategy get evaluated in a suitable
and better frame. With every due course of growth, potential source of fund could be analyse by
managers of a company. It will support them to raise money when it is highly required in nature.
Once fund get raise, business plan play rest part for growth and development which constitutes
about mission, vision, objectives as well as financial information of a company.
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