Business Growth Plan for Brooklands Hotel - Analysis and Strategy

This report presents a comprehensive growth plan for Brooklands Hotel, a small UK-based organization aiming to expand its operations. The report begins with an analysis of crucial considerations for evaluating growth opportunities, emphasizing factors like turnover, market share, profitability, and staff. It then utilizes PESTEL analysis and Porter's generic strategies to assess the external business environment and competitive advantages. The core of the report focuses on applying Ansoff's growth vector matrix to identify opportunities for market penetration, market development, and product development. Furthermore, it explores potential funding sources, detailing their advantages and disadvantages. A business plan is outlined, highlighting financial information and strategic objectives, followed by a discussion of exit and succession options for the small business. The report underscores the importance of digital technology adoption and market research for successful expansion, aiming to increase the hotel's turnover and market share. The analysis provides a detailed framework for Brooklands Hotel to achieve its growth objectives and gain a competitive edge in the market.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysis of the crucial consideration for evaluating growth opportunities and justify these
consideration within an organisational context......................................................................1
P2. Opportunities for growth applying Ansoff's growth vector matrix..................................4
TASK 2............................................................................................................................................6
P3. Potential sources of funding available to the businesses with advantages and disadvantage
of each other...........................................................................................................................6
TASK 3............................................................................................................................................8
P4. Business plan for the growth highlighting the financial information and strategic
objectives................................................................................................................................8
TASK 4..........................................................................................................................................12
P5. Exit and succession options for the small business with the benefits and drawbacks of
each other..............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning is considered as crucial part which helps an organisation in growing their
market share. Growth for any business can be gained through developing a suitable plan and this
will be highlighting the strengths and weakness of the market and the company. This element of
the business can be taken for a longer period of time as it increases the chances of success.
Planning for the growth is normally for the small scale industries who are looking forward to
expand their business at the global level (Barbour and Deakin, 2012). It directly focuses on the
enhancing the productivity and ensure that all the business operations should be utilised in
efficient manner. For this report the case scenario of Brooklands hotel is taken into the account
and they are looking forward to use the digital technology which can assist them in establishing
their business at larger level. In such case the key consent which enable in performing the things
is required and along with this Ansoff Matrix will be used by the firm in order to gain
competitive advantage. The organisation has to identify the resources which can support them in
allocating the funds in better manner.
TASK 1
P1. Analysis of the crucial consideration for evaluating growth opportunities and justify these
consideration within an organisational context.
Growth and development is the crucial concern towards any business identity which they
have to take in the account. Expansion of the businesses is the only way through which an
organisation can earn profit and increase their revenues. Growth can be called as the risk but it is
the duty of the manager to frame a strategy which brings stability to the business. There are
various factors which needs to be considered by the organisation and their management while
looking for the growth and development.
 Turnover:- An organisation has to look at the sales which they are making in the specific
time period. This is one of the element which is helpful in measuring the growth of a
business through which the chances of ascertaining goals become easier (Beatley, 2014).
Evaluation of the growth opportunity can be done through maximising the turnover of a
business within particular time.
 Market Share:- Another factor which can be evaluated here for the growth is the market
share. The market share can only see a rise if it produces and deliver better quality
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products. This element can be evaluated by comparing the market share of their
competitors.
 Profitability:- All the business which is existing in the business environment has the aim
of earning profit and it is the growth and development which supports this idea. While
dealing in the international market it is necessary to give quality end products because
this is the only way they can attract more number of consumer.
 Staff:- It is the employees of the company without whom no business activate can be
carried out and it is the contribution of the staff which helps them to achieve the set goals
and targets (Chen and et. al., 2014). It is the duty of the management to ensure that they
recruit those candidates which has high potential skills and knows how to attract more
number of customers thus increase the profitability.
 Advanced Technology:- Every business organisation has to adopt the new technology so
that they can manufacture high quality products and services. By doing this they can
easily modify the services which are facing crisis and thus they can gain competitive
advantage.
Brooklands hotel is considered as a small organisation based in UK and looking forward to
expand and their business operations so for that they have to conduct a market research. Thy
have to look at the opportunities which are attached with the adoption of digital technology for
an organisation. Digital technology brings use of the social media, digital advertisement which
helps them in reaching a large number of audiences in quick time. Below mentioned are some
sort of information about the hotel which needs to be taken in mind. Mission: To deliver better quality services to the customer with the help of enthusiasm,
empathy, organisational culture, involvement, commitment, creativity and elegance.
 Vision: “To continue to 'Make it Happen' through our Brooklands ethos, thereby looking
after our guests, teams and investors”.
 Staff Members: The number of employees who are part of the hotel is up to 106 staff
member and the staff turnover rate in the hotel is up to 32%. These staff has good and
appropriate skills and knowledge to deal with every consent in a suitable manner.
The aim of the Brookland hotel is to expand their business operations all around the United
Kingdom and for that they will be offering quality based services to potential consumers. The
existing turnover is approx. £17000 and they want to increase it up to 20% with the help of the
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market expansion plan. They have increased the staff number from 106 to 250 who are enough to
serve and communicate with every person and thus look at their interest. Along with all these
they are promoting the use of digital technology so that they can increase their productivity and
profitability. All the considered factors are linked with each other and supports in making the
business operation success.
PESTEL Analysis- To analyse the external business environment the management department
of the company can do Pestle analysis, it is as following:
Political factor- This factor include various government policies like taxation policies
and others. Brooklands hotel operate its business in UK, government make change in its polices
that create impact on the policies and strategies that are designed by the management department
of the company because they develop policies according to new or innovative law which
influence the decision making.
Economical factor- it is related to the inflation & deflation, interest rate and other
economical activities. In UK, the business of Brooklands hotel affected by global recession
because the change are occurred in the needs and demands of the customers. This influence the
decision making of the management department because there are impact are generate in the
economic condition of the company.
Social factor- This factor is basically related to the needs, demands, taste and preferences
of consumers. For example, now these days, people prefer those hotels and resort that
constructed with AC, TV, Wi-Fi, entertainment systems, Pubs, Cafes, Restaurants and other
facilities. Brooklands hotel, provide all these kind of facilities to its customer.
Technological factor- This factor include various technologies such as promotional, sales
and others. For example, this hotel use social media, internet and other technologies to provide
information to its customers. For increasing the sales of the business, the company can develop
an application by which the customers can do online booking, check-in or check-out and other
activities.
Environmental factor- It include various environmental law and other activities that are
related to environment. For example, this hotel properly follow pollution act and others top
manage the pollution. By managing the recycling process, they reduce the wastage of resources
and provide security to society and environment.
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Legal factor- This factor is basically related to the laws and legislations that are
developed by the government for the proper running of the company. In Brooklands hotel, the
management department of the company properly follow all the rules and regulations such as
equality law, discrimination act, diversity and equality act etc.
Porter's generic
This is a model which is used by the company to select a suitable path that would help the
firm to gain the competitive advantages so that they are able to achieve the objectives in context
of maximizing the profit. This model was developed by Michael Porter in 1980 which help the
company to gain competitive advantages. Brooklands hotel can also use this model to achieve
the competitive advantage, This model is as following:
Cost leadership- In this strategy, the company can fabricate some goods and services and
provide them to the customers at affordable prices. In Brooklands hotel, the management
department of the company can make change in its pricing strategy by making a little decrement.
This help in increasing its sales and create positive impact on its economic condition. This
provide competitive benefits to the business of this hotel.
Differentiation- This strategy include formation of strategies which allows the firm to
manufacture new products which are different in nature and characteristics of substitutes. For
example, Brooklands hotel can develop various services like; spa, gym, meditation centre and
others. This will also help the hotel to gain competitive advantages.
Focus- This strategy categorised in to two parts such as cost focus and differentiation
focus. Cost focus is related to make focus on the cost of products which are delivered by the
management department of the company at market place. Whereas differentiation focus is
strategy that helps the company in making different product by making innovation in existing
products and manufacture by new one.
Through using such strategy, Brooklands hotel will be able in defeating their competitors
in the marketplace and gain competitive advantages.
P2. Opportunities for growth applying Ansoff's growth vector matrix.
There are various ways and techniques which can be used by almost any of the business
organisation to make the business activities in effective manner. Growth can lead to risks but it is
through the suitable plan and strategy which can control this factor. Opportunities in larger
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market scenario refers to generating more and more revenue for the business as well as to
increase the staff number for delivering quality based services to almost every person.
There is also different market entry chances which can be used by the business
management through using which they are able to deal with the uncertainty and risk thus helping
them to crab all the opportunities as well (Eddleston and et. al., 2013). To take entry into the new
market and make them flexible and organisation can use different tools and techniques.
 SWOT analysis
 PESTLE analysis
 Ansoff Matrix
 BCG Matrix
Above mentioned are all useful but out of them all Ansoff Matrix can be one of the
technique which can be helpful in ascertaining all the goals and targets in a suitable and effective
manner.
Ansoff Matrix:- If any organisation wants to expand their market share in different
markets this technique would help the board of directors to frame strategies. This can be used as
a future growth strategy and also brings a stability in the business activities. There are four main
sub strategies which are part of the Ansoff matrix and these assist the organisation in analysing
the market structure and their nature. Market Penetration:- This is a strategy which states that the organisation will grow their
business through offering the similar products in the existing market only. This way
Brooklands hotel market share will increase and their major objective is to know the new
clients through delivering more services and the quality as well. Market Development: It briefs that the business focuses on increasing the market share
by coming up with the new business services and offering in the new market. This is the
strategy which emphasises on the concept of globalisation. The profit of this strategy can
increase the market of the organisation because now new customers will be buying their
products thus they directly impacting the profitability of the hotel. Product Development:- There are various situation when a company try to increase the
number of products and services in the current market. For this Brooklands hotel have to
out emphasis on the market research and thus they need to increase the funds for the
research and development area of the business (Galland, 2012). It totally depends on this
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area of the company that how they use the creativity and innovation to come out with the
new products and services for the new customers in the current market only.
 Diversification:- To expand the market most of the businesses introduce new products
ion the newer market but it can be said that this is the most tough and quite complicated
thing to do. The reason behind this is that the organisation is not aware about the actual
marketing condition of that areas and nor they have any idea about the interests of the
consumers. So to overcome this issue they take the help of a small company who are
already holds a small market share. The merging between both of them will take place
and with it they can increase the business in that nation or area.
Brooklands hotel can use these strategies if they are thinking of increasing at the new markets
and for them market development and diversification are the two strategies which will give them
maximum benefit. These both can give them maximum profit generation and there are chances
that the goals and objectives which they have decided can be achieved easily.
When they will be going for any diversification they should market research and try to
find out the most suitable and profitable organisation (Levy, 2012). They should check whether
the organisation is not handling any legal dispute and has rights strategies and policies. When
Brooklands hotel comes to know that they have set their market and can now individually run
their business without any help then they have the option of separating themselves with the other
firm.
TASK 2
P3. Potential sources of funding available to the businesses with advantages and disadvantage of
each other.
With the time, expansion of the business is necessary as through this Brooklands hotel
can earn more profits and they have to look at the long term benefits. It is the duty of the
management of every organisation to take this factors in account and make the strategies for the
growth and development. The expansion and growth can be gained through using various
resources which has potential to drive the organisation towards success. On the other hand they
have to also need to find out the sources from where they can get funds for the expansion plan.
With better investment all the things can be managed properly thus ensuring that the effective
management leads to more profits (MacLeod, 2013). It is not compulsory that the finding
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resources are beneficial bit there are always two sides of the coin thus highlighting the benefits
and drawbacks. All these things have to be taken care in account through looking at the case
scenario of organisation situation.
Equity:- The organisation who comes in the category of large scale industry issues their
shares in the market so that people could buy those stocks and invests in their company. This is
the process which might be considered useful as the chances of risk is minimum and these kind
of source can be used while the firm needs money thus issuing the IPO takes place. The biggest
advantage of this source is that the organisation in less period of time can get a huge capital and
one of the drawbacks which can worry this is the lack opf control because these share can be
easily transferred. Merit: Brooklands hotel have less risk with equity financing as the company doesn't need
to pay fixed monthly loan payments thus it will be more helpful for start-ups.
 Demerit: Equity investors demands maximum return on their investment which could be
high as company's expectations. Another drawback is that the owner of Brooklands hotel
may give up some control of its company if willing to takes on additional investors. It
negatively impact the decision-making process of Brooklands hotel.
Loan:- It is one of the most common and prominent source through which an
organisation can get funds. They can take loans from different financial institutes which basically
includes banks. The loan is provided by the banks and the organisation have to return it with the
fixed interest. The loans are provided after analysis the position of the company and various
agreements (Moseley, 2013). Although the benefit of loan is that many company can take the
loan but taking it during any debt will give them the loss. Merit: The main advantage of choosing such option is that the Brooklands hotel are
aware about the amount that to be paid to bank along with its interest. This will help
management in making pre-planning to pay debts and loans on time through setting up an
appropriate budget.
 Demerit: Bank has undertaken assets of Brooklands hotel in case if company failed to
repay debts and loans thus it will be more threat to company as if they failed or make
delay in making payment.
Family and Friends:- This is the most easiest way to arrange the fund because family
and friends does not normally take the agreements and it is on the mutual trust of two person the
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money is given. Normally this kind of resources is practice for the small scale businesses. But for
the large scale industries this might not be the prominent and appropriate source. Merit: No agreements and low rate of interest is major advantage for Brooklands hotel to
chose such option for raising funds.
 Demerit: The relationship may get affected if make delay in payment.
Brooklands hotel can analysis the condition and all the possible sources and according to their
suitability they can find out which will be the best option available to them. After analysing all
those it can be said that the best option they can look for is the equity source. Other than this they
can go for crowd funding with the help of social media tools (Schetke, Haase and Kötter, 2012).
Having the sufficient funds allows them to adopt new digital technologies in their business.
Manager at Brooklands hotel should evaluate all the drawbacks in proper manner and
than they should take proper actions to overcome from them. If they do so they will observe that
they are performing in far more better manner.
TASK 3
P4. Business plan for the growth highlighting the financial information and strategic objectives.
To gain more profits and maintain their position in the market every firm needs to
develop a suitable plan for their business. They are aware of the fact that it is one of the
important function and through this only various issues prevailing in the market can be resolved.
Those business activities which can yield better productivity can be included in the business plan
and the basic elements which are required by them can be analysed in this (Todes, 2014). This is
very important part if they have to analyse their existing performance on regular time period. A
business plan can be defined as the report which includes aims, objectives and the stating the
reasons for attaining the growth. Thus, it highlights the overview of the organisation with some
strategies used by them in the business operations. If the current and future position of the
company can be analysed then there are maximum chances for profitably. They are setting the
priority on the tasks which has to be done first and they are also revising all the strategies from
the plan and ensure that they have set the right path for them (Planning for growth, 2017).
Business plan of Brooklands hotel:
It is a document which setting out a business's future objectives and strategies for
achieving them. In framing the business plan a manager who has been given responsibility to
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project the tasks needs to consider where aspects. Following are some of them that are as
follows:-
Vision and mission- The vision of this hotel is to unforgettable experience to its
customers by providing quality services. The mission of the firm is enhance the lives of their
consumers by enabling unsurpassed vacations and leisure experiences.
Aims and objectives:- Before initiating the strategy development it is necessary that the
organisation set aims and objectives that would assist them in attaining the long term growth and
brings sustainability. Through the marketing plan they can highlight the estimated sales
according to the customers they are going to serve. This will help them in attaining the
competitive advantage after a particular time period. Brooklands hotel has clear aim and
objective that is operating business by striving to enhance overall ecological and carbon footprint
without compromising the visitors experiences and satisfaction suing the most responsible
working practices.
Values and ethics- Brooklands hotel operate its business by following all laws and
regulations that are developed by government so they work in a ethical manner. Good good and
accommodation services help in generating values. They provide quality services at a fair price.
Expectations of stakeholders- The main stakeholder of Brooklands hotel are customers,
employees, shareholders, owner and various others. They all expect that the company gain more
profit by providing quality services to its customer so they also can show their loyalty by taking
the services again and again in future. This will also provide high return on their investment.
Strategies- Brooklands hotel use marketing analysis strategy to identifying the needs and
demands of its customers. So that, they can can provide services according their needs. In its
pricing strategy, the company can use penetration pricing so that satisfied the needs and demands
of niche market.
Operational Details:- This is the process which highlights the information about the
sup0lliers, functions and required tools and techniques for the company are there.
Financial Information:- To make sure that they perform all the business activities in
better manner there is requirement of the certain funds and they have the option to collect those
funds from various sources (Valler, Phelps and Wood, 2012). There are two kinds of sources
which are available with Brooklands hotel and these might be either internal or the external.
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Capital of the owner and retain earning are the part of the internal sources whereas any bank or
the funds arranged from the outside parties are part of the external sources.
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Production cost 5000 - -
Promotion cost 1000 700 500
Advertisements cost 500 550 600
Technology cost 1500 1700 1900
Catalogues 250 200 150
Total 8250 3150 315
Cash flow statement
Cash flow statement of Brooklands hotel is as given below:
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From above cash flow statement, it is clear that the firm has sufficient cash for paying the
pending debts. Brooklands hotel needs to pay tax which is changing with year. Brooklands hotel
has the cash in hand for year 2015, 2016 and 2017 as $102203, $200354, $238503 and average
income is estimated as $72001 for the 3 years.
The summary of the business plan consists of the required objectives, targets and the
dates on which the projects will be completed. To make sure that they present this plan to the
public so it is necessary that they should have all the information about the investors and
resources which are part of their organisation.
With the business plan all the opportunities which are available with them will be
analysed and the background information will cover the financial information of 2 to 3 years.
This way they can know their performance and necessary chances in the work can be done in
quick period of time.
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From the above all information regarding all the elements which are impacting the
organisation's performance needs to be evaluated before making any planning. It has been
analysed that it might consume a lot of time but due to presence of these factors they can use this
to manage their business operations in proper way (Ziari and et. al., 2012). After properly
looking at the planning tools a business plan can be passed for the further process. The investors
are ready to invest but they will do this when things are of their own interest and believes they
can will get a sufficient amount in return. Other than this there is also availability of the various
other strategies which can bring more innovative and creative plan. In the following plan the
acquisition of the organisation with the other one has been followed. Diversification is the best
strategy which can be taken into the hotel scenario as through this they can easily attain
maximum profits with the resources which are available with them and the company which has
been emerged in this (van Assche and Beunen, 2013). The management try to find out the
competitors plan and gains knowledge that how they can affect their business plan.
TASK 4
P5. Exit and succession options for the small business with the benefits and drawbacks of each
other.
An organisation comes over both the positive and negative aspects during the project
development. The owners should frame the targets which they should never think of it leaving it
and this thing will be more profitable and effective (Wu, 2015). To continue the business
operations they have to adopt various strategies which ensure the growth and development of the
business. If they are facing the crisis they should offer the merger and should merge with the
larger firms. They should invite people to invest in their company which can bring positive
outcome.
Close Down:- There is existence of various small scale businesses which is closing their
business because they are not able to recover the losses they had in the business. Bankruptcy and
retirement are some of the factors which are forcing them to do so and because of this they are
not able to perform according to the standards which has been set (Ward, 2016). It has been
observed that every year a lots of business shuts down and in this condition they are either they
sell their assets or the organisation name to other business entity. If they get success in running
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their business for a longer period of time than they will easily able to create a good brand value
in the market.
Drain it:- With this strategy, owners of the businesses try to take out the cash as much as
possible and this will help them to come out of their business. Through this they can know that
what are areas where the company is investing a large amount of money and from these areas
like production the funds can be taken out (Wynn, 2017). Although, a single strategy does not
make large profit in the strategic formulation. The teams and company needs to focus less on the
areas which are in profit and should more emphasis on the weak areas.
Selling the business:- This is one of the important option which are available to the
organisation and the board of directors look for the investors who can take the own ownership of
the organisation. Through selling it they can recover all the losses and they determine best buyer
for the organisation.
Friendly Buyout:- This is a strategies in which the owner of the company share the all
organisation with their family members, staff and friends. This is the suitable shale of the shares
according to the interests. It is not necessary that all the part of the company will be given top
them but just few shares will be given. The deal can differentiate depending upon the parties
which are in the mutual agreement with the owner of the business. The concept behind this
strategy is that those people who are close to the owner takes part in selling but due to this it
makes the organisation less demanding (ZHANG, ZHAOand CHEN, 2013). This might not
make much value as the owners are much concerned about the the people who are near them
instead of the customers. At this point of time the owner needs to show his or her professional
skills so that that maximum sales can be obtained from it.
CONCLUSION
From the above report it can be summarised that planning is an activity which never stops
and the reason behind this is that there is always scope of growth and expansion. It is necessary
that the organisation's uses a suitable strategy according to their condition so that they are easily
able to manage their valuable resources. This all report or project details about the growth
opportunities which are analysed through using Ansoff matrix. There are explantation of the
tools and techniques so there can be flexibility in the planning for growth. In the end some of the
exist strategies has been highlighted.
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<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>.
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