Business Strategy Report: Planning for Growth at Deloitte (UK)

This report provides a comprehensive analysis of Deloitte's growth strategies, focusing on the UK market and small and medium-sized enterprises (SMEs). It begins with an introduction to planning and its importance for business growth, followed by a PESTEL analysis of the external environment, considering political, economic, social, technological, environmental, and legal factors impacting SMEs. The report then uses the Ansoff matrix to evaluate growth opportunities, including market penetration, product development, market development, and diversification. Furthermore, it assesses potential sources of funding and designs a business plan incorporating financial information and strategic objectives. Finally, the report discusses exit and succession alternatives for businesses, providing a critical evaluation of these plans. The report aims to provide insights into the growth strategies of Deloitte and provide guidance for SMEs.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1 ...........................................................................................................................................3
P1 Analyse the key consideration for evaluating growth opportunities and justify in
organisational context.................................................................................................................3
TASK 2............................................................................................................................................7
P3 Assess the potential source of funding present for the business............................................7
M2 Identify the potential source of funding and provide justification.......................................9
D2 Critically identify sources and argue for the particular source.............................................9
TASK 3 ...........................................................................................................................................9
P4 Design a business plan that include financial information and strategies objectives............9
TASK 4 .........................................................................................................................................11
P5 Discuss assessment of the different exist or succession alternative for business................11
M4 Evaluate exit and succession plan......................................................................................12
D4 Provide critical evaluation of exit and succession plan ......................................................13
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Planning is the fundamental function which include suitable decision regarding what to
be done, how it should be done, when it should be done and who is going to do it. It plays an
important role for the success and growth of business as it is a strategic business action which
enables the businesses to plan and track the growth of their revenues. It is a business activity in
which management of company develop suitable plans for the growth(Biddle and Taylor, 2018) .
With the changing conditions in UK regarding Brexit, small businesses are influenced in positive
and negative manner. It defines the suitable use of available resources for the small
organisations. In this report, Deloitte is considered which is a multinational professional services
network and it has big four accounting organisations and headquarters in London, UK. In
addition to this, it describe the key considerations for the growth opportunities of company and
also describe various sources of funds which are useful for company. Moreover, a business plan
is prepared for the growth of company and lastly exit plan is described for small businesses.
TASK 1
P1 Analyse the key consideration for evaluating growth opportunities and justify in
organisational context
PESTEL ANALYSIS
It is that framework which is used by the business to analyse external environment(macro
environment) of firm in which organization works. This analysis provide information about
political, economical, social, technical, environmental and legal factors(Lombard, and et. al.,
2019). This tool is used in formation of business strategies for growth and long run of
organisation. It analyse the negative and positive impact of above mentioned factors on firm
policy and procedures and how firm can overcome on those impacts. It is a crucial model of
analysis external environment which is suggested by Deloitte for SMEs of UK .
Political

political factors are those factors which are related to government polices of the nation
where organisation doing its business . According to Deloitte observation BREXIT is main
political factor for SMEs of UK . It have both positive as well as negative impact on SMEs.
Positive impact : Positive impact of this political blunder is there will be an open market
for SMEs in Britain with some relief in taxation polices because Boris Johnson's government
will focus on strengthening economy.
Negative impact : Negative impact of BREXIT is open market will attract more MNCs
which can cause damage to SMEs . According to Deloitte advise the SMEs should focus on
increasing quality, better branding of their product, and attracting new customer with managing
old ones which will ultimately help them is surviving in open market.
Economic
economic factors incudes the those which is related to economic condition of nation
where the business is situated. This includes the inflation & interest rates in nation, business
cycle in economy, stock market performance, etc. after analysis of economic factors of SMEs of
UK, Deloitte found
positive impact: economic factor like inflation rate made positive impact on SMEs as
inflation in UK high in recent years which helps SMEs in to not spent their profit on making
contingency reserves for inflation. This also increase there net profit.
Negative impact: These factors have also impacted negatively on SMEs as factor like
reassertion in economy leads in huge loss of market which impacted adversely on SMEs as they
are not getting customers because of decline in demand (Agyemang and Silva, 2019). It is
advised by Deloitte that reassertion is a part of business cycle and business have no control over
it but firm can defend itself from it by making uncertainty reserves .
Social
Impact of society on business is known as social factor. This includes the culture, age
distribution, population density, buying habit and eduction level of society which is around
business. According to Deloitte this environment have both positive & negative impact on
business
positive impact : the leaving standers of UK people is vary high because of this they prefer
advanced quality products that provides the opportunity to SMEs for introducing new product
with best quality with better profit margin.

Negative impact : population density if UK is low which have negative impact on SMEs as they
have to pay more for transportation of there product to other destination which leads in decline of
net profit and increase in cost of product. Deloitte suggested that SMEs should adopt the policy
of secondary distribution where they use other's transportation tool then there own.
Technological
These are those factors with directly deals with the change in technology, automation,
introduction of AI and innovation in industry context, according to he research of Deloitte this
factor have also major impact on the working of SMEs in there business.
Positive impact: technological factors have a large number of positive impact on
business of SMEs like innovation helps the company to identify the opportunities in market for
there long run . Technological innovation also enable a firm to reduce the chances of error in
there working with its positive implementation on business.
Negative impact : Technology requires regular updates which can impact adversely on
the business of enterprise as update in technological requires huge investment which is a difficult
task for SMEs. Hear Deloitte advise for SMEs is that they should use that technology which
requires less amount of investment and have long life cycle.
Environment
It includes factors like pollution, whether, location , climate, waste management etc.
these factors are related with environment around business. According to Deloitte environment
factor also have both positive and negative impact. In these factor SMEs have to cooperate with
environment without damaging it .
positive impact : According to Deloitte observation on SMEs it analyse that environment factor
like location have positive impact on organisation as waste management helps the organization
in recycling which leads in building image in front of customers of organisation .
Negative impact : this has also negative outcome on cost of production of company as
recycling needs huge cost . Here Deloitte advices that SMEs can use raw material which can be
easily recycle and not require huge cost.
Legal

legal factor are those factors which deals with law and legal requirement of nation. This
includes law related to health and safety, tax regulations, employment, product labelling
regulation advertising standards, health care and retirement.
Positive impact : positive impact of this factor is that it can help in increasing brand value of
firm. SMEs have low brand value because of low capital investment so it is advise by Deloitte to
SMEs that they should comply with laws like labour law and others which will help firm in
building brand value.
Negative impact : alteration in laws can also impact adversely on company as it have to change
its police and procedures which can cause confusion in work. For this Deloitte advice that SMEs
should make flexible polices which can be change accordingly.
P2 Describe the opportunities for growth by using Ansoff matrix
Ansoff matrix can be used by the company to analyse marketing strategies or objectives
of the business. The growth depend upon the sales of product and services provided by the
company. This matrix tend to provide a proper structure which aids the top level management for
the future growth and the success of the company. The management of Deloitte must consider
such method for improvising such plan for expansion and growth.
Market penetration: Market penetration allocates the successful selling of goods and as
well services to the particular market(Sarin, 2019) . This often used by a the company for there
existing product within the known market and needs and a growth strategies within the market. It
provide proper path to company as to increase the sales to attract the customer. For the
organisation like Deloitte the management is suggested to their clients to look forward as to
expand the business and take effective measure to reduce risk and theft present in the market.
SME should consider such kind of matrix which is essential for the company to increase the
services as per the needs and wants of customer.
Product Development: This refers to modification of development of new product in
the market as to capture larger number of audience. In this case company tend to change there
design, packaging as well as product quality as per the requirement of consumer. The suggestion
given by Deloitte to SME is that to focus more on the product rather than focusing on the
services of the product. This kind of strategies will focus on achieving success and create a
better image in the minds of customer. Apart from this company can improve the market share
and sales for longer time duration.

Market development: As the name suggest the main focus of organisation to expand
and explore the business for the company. In other words, this describe the process through
which the company improve the market presence in the market. Here Deloitte suggested that the
SME can to focus on this market as they do not have proper capital investment. Apart from this
small companies should make use proper use of resources for conducting promotional activities
as to provide better market share and profitability.
Diversification: In this stage company usually try to explore new customer base by
improvising the product as per the needs and wants of customer. Here organisation tend to
diversify the product and service as to attract new users. This require huge amount of funds and
sources as to implement such method successfully. As per the Deloitte suggestion to SME as not
to focus on the diversification as this may cover huge risk and may cause failure to company.
Along with this, another suggestion by the company is to focus on existing product and service
as this will help small and medium company to earn more profit for the longer time period.
M1 Discuss the option for growth using wide range of analytical frameworks in organisation
context
After implementing the PESTEL analysis on SMEs it is suggested by Deloitte that there
are various growth opportunities in UK market for SMEs as social , technical and environment
factors are in favour of SMEs but they have to be careful about the uncertainty of future and the
political unrest which is suffered by whole Britain(Rahman and et. Al, 2018). There is no major
negative impact of any environment on business but they have to follow the suggestion of
Deloitte. Furthermore with the assistance of this method small enterprise can improvise there
policies and make changes as per the need of marketplace.
D1 Critical evaluate different option and pathway for growth
There are different method and techniques through which SME can grow and expand the
business effectively. The company is recommended to use Ansoff growth matrix which help to
identify the factors in which firm have to improve and focus on increasing the sales of the
company (Deng, Fu and Sun, 2018). At the market penetration stage the risk is associated with
sales of the company which may decline if company do not take any effective decision. Apart
from this at product development stage the risk of loosing of market share is there as entity focus

on product and put less emphasis on market activities. At diversification stage risk in involved as
the failure of product due to uncertainty present in the market.
TASK 2
P3 Assess the potential source of funding present for the business
For expansion and growth the company require huge amount of funds to expand the
business. In this case top level management decide the amount of money have to be invested in
the organisation as to increase the sales and increase market opportunities for the
company(Gounaridis, Chorianopoulos and Koukoulas, 2018). This is suggest to the company is
to provide different market services which help in to gather large market share as per the needs
and wants. There are different source of funding market present in the market and companies
may choose the option as the per requirement. Here are some of the sources which is explained
down blow:
Bank loan:
This most popular source of funding use by the organisation as to expand the business
effectively. SME can choose bank as the option for funding as they have low interest rate which
is beneficial for the company to explore the business. The Deloitte management suggest to SME
to go for bank loan as they provide flexible repayments option to provide convenience for the
company.
Benefits: The bank loan is provide various option for the payment and have instant loan
facilities for the company. They also require less paper work as to save time of organisation as
well as of bank. As like equity finance the business issues shares and bank do not take any kind
of ownership from the company. Apart from this bank do not indulge in any kind of business
activity of company which is beneficial to expand the business for SME.
Drawback: The major drawback for the bank loan is that, they do not provide loan
unless the company have proper records and paper of financial years. Apart from this, it is a
lengthy process as the bank is careful while providing loan. If the company fails to repay the loan
in this scenario bank have right to seize the assets for recovery of loss.
Crowdfunding:
This is method in which the company raise capital from the market with different people
and provide profit after expansion and growth. This is consider as less risky and Deloitte suggest

to SME is to avail funds from crowdfunding as this tend to expand the business effectively.
Beside this company can reach to larger audience as can create image in market due to funds
raising method.
Benefits: The major advantage of crowdfunding is that company can gather huge amount
of attention while exploring the business effectively (Wu, 2018) . However this easily gain the
attention of the market and company can explore and expand the business effectively. The
Deloitte manager suggest to SME as to use such method for funding as this creates brand image
and make shareholder loyal which help in raising funds effectively.
Drawback: The major drawback of crowdfunding is that company loose control at the
business activities to some extent. In the, Deloitte management provide proposal to SME to make
use such method for raising the funds as if company fails to collect the amount hence this
hamper the image which leads to slow performance of the company.
M2 Identify the potential source of funding and provide justification
There are different sources of funding present in the business environment and company
has to chose the best possible source as per the need and requirement. There are different kinds
of loans institution present in the market such as bank loan and crowdfunding (Angotti, 2018) .
This is been recommended to SME company to take bank loan as this is one of the easiest way to
avail loan and they also provide different repayments option to borrowers. Apart from this, bank
to do not interfere in the activities of company as they also charge low interest rate from the
organisation. They also provide instant loan facilities with less paper work for the company.
D2 Critically identify sources and argue for the particular source
There are different kind of method through which company can raise funds. The
company must choose the best possible outcome for funding which help organisation to expand
the business at the larger scale . The best funding source for SME is bank as they provide various
option for repayment and help to provide flexible payment as per the convenience of the
company. Although crowdfunding is the option for the company but it has lot of risk for small
organisation as people fear to invest money in such companies due to lack of trust and market
size of the company.

TASK 3
P4 Design a business plan that include financial information and strategies objectives
Business plan is the document which is used to attain the business as well as objectives
effectively(Stein, 2018). This provide layout which is consist of marketing, financial and
operational viewpoint. These are important for the company which allow firm to reach the
organisational goals and objectives in a well define manner. Below discussed is a business plan
which is adopted by the plan in SME in UK in a detail way.
Company overview: SME can view the plan for the business which help in expansion of
business effectively. In orders to achieve desire aims and objectives company has to focus on
product and service as improvise changes to provide better services to consumer. The present
organisation is Deloitte which is an multinational professional service networks which provide
audit and management consulting to SME companies. The headquarters of entity is located in
UK and there around 321000 employees working in the company.
Vision: The vision of the company is related to the long term objectives which have to be
achieved by the company.
Mission: The mission statement of the company is provide high quality service to
consumer and capture large market share.
Objectives: Main objective of the company is to increase the profit share by 10% in
coming 5 years.
STP analysis:
This is the method which is used by the marketing department in the organisation to
figure out the different target consumer effectively. Hence this provide proper guidance for the
company to move in proper direction and make product as per the needs and requirement of user.
Small and medium enterprise must use such kind of strategies after being analyse target
audience.
Segmentation: In this method the company divide whole market into different groups
and the segment is based upon the different needs and wants of consumer. The SME companies
must focus on dividing customer on the basis of demographic, geographical behaviour of the
consumer. Along with this company have to segment there target audience on the basis of age
group to provide better services.

Targeting: SME company has to focus on the particular consumer group rather than
focusing on different target user. This usually help entity to focus on the needs and wants of
consumer and make changes to provide better quality of services.
Positioning: In this process company usually try to position there presence in the
marketplace. SME company should focus on differentiate the product from the rivals with the
assistance of new product and innovation. This allow organisation to create a better image
among the competitive market.
Financial Projection: For every organisation to make proper budget under the guidance
of financial experts as they made effective decision and allocated the resources effectively for a
smooth functioning of the company. The company require funds for promotion and carry
forward the operational activities smoothly.

From the cash flow presented above, it has been observed that the organization has the enough
liquidation for paying out its debt and liability. The organization fixed asset value are also very
much high which can help them in paying out the loans if they want to pay back their liability
through selling out its fixed asset like land, buildings, machineries and so on.
M3 Develop an appropriate and detailed plan for growth and securing investment
This has been suggested to SME company as to develop effective plan because it help in
achieving desire aims and objectives effectively (Bates, 2018). As planning is the key to success
and company must review the plan to ensure about to meet the continuous need and demand of
users. The company must focus on meeting the objectives and work towards achieving desire
aims effectively. Along with this company management has to focus on current performance
constantly on regular basis of identify the best possible outcomes for strategies of growth.
D3 Present a coherent and in depth business plan that demonstrates knowledge and
understanding
Once the company makes plan this essential to make proper road map to target consumer
effectively. SME have work upon the vision and mission of the company and make sure that
employees must work upon to achieve common effectively. In addition to this, business plan
consist proper financial budget to make sure that the resources are used properly and minimize
the waste effectively. Segmentation, targeting and positioning plays and vital role in business
planing which describer about the different kind of customers.
TASK 4
P5 Discuss assessment of the different exist or succession alternative for business
There are different kind of schemes and method through which the company use exit or
succession plan. Here the SME company is suggested to adopt the succession strategies as it is
beneficial for the company to expand the business effectively (Bagheri and et. al., 2018) . Apart
from this, it tend to increase the market share along with the brand image. Here are some
secession strategies which SME companies must grow through are explained below:
Exit