Planning for Growth: Guildford Tyre Company Business Plan, Unit 42

This report provides a comprehensive analysis of growth planning for Guildford Tyre Company, a private sector organization in the tyre manufacturing and services industry. It examines key considerations for measuring growth opportunities, explores various funding methods like bank loans, and overdrafts, and assesses their advantages and drawbacks. The report then develops a detailed business plan, encompassing business concepts, market analysis using SWOT model, strategic objectives, and a financial plan. Finally, it analyzes existing and succession options such as mergers and joint ventures, evaluating their benefits and drawbacks to provide strategic recommendations for sustainable business growth. The report is intended to provide insights into the challenges and opportunities associated with business expansion and sustainable development.

Unit 42: Planning for
Growth
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INTRODUCTION
Planning for growth is an effective business strategy which allow owners of business to
rack and plan organic development in their revenue. It helps a business organisation to utilize
their limited resources in an effective manner in order to attain desirable objectives. It is an
essential element in a business to achieve growth and development of a business. It is consider as
a major key for success and help an organisation to achieve successful outcomes. Planning for
growth is a key to any business organisation throughout its sustainable. A successful business
reviews its business plan on a regular basis in order to ensure that it meet its desirable needs and
requirements (Frenchman, 2017). It is important to identify most likely opportunities for a
business by reviewing current performance of each and every employee. It plays a major role in
allocating resources to organisation. The following report is based on Guildford Tyre Company
which is a private sector organisation that was established in the year 1976. The organisation is a
manufacturer of tyres and along with that they also deals in many other fields such as reparsing,
brakes, air conditioners and batteries and many others. The study is going to focus on analysis of
key considerations for measuring various growth opportunities. Determination of various
funding methods through which an Organisation access funding will be cover in this study.
Furthermore, development of a business plan for growth of an organisation will be evidenced.
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MAIN BODY
TASK 1
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TASK 2
P3 Potential sources of funding and discuss benefits and drawbacks of each source
For taking funding, different types of sources are available which has to be evaluated by
organisation and accordingly make plan in an effective and efficient manner. Such funding assist
business to carry out operations and activities of business at marketplace. Each and every
organisation has to take funds for expanding or establishing new business. Some of the potential
sources of funding available to businesses along with their benefits and drawbacks are described
below:
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Sources of
Funding
Introduction Benefits Drawbacks
Bank Loans It is the most easy and used
types of funding for all
types of business to
conduct their activities and
operations in an appropriate
manner (Sell and et. al.,
2018). Each and every
types of bank offer several
advantages in terms of
customised payment or
personalised services. Fund
is provided to business for
specified time period and
charge interest with them.
The funding provided with
such sources are secured in
nature. Guildford Tyre
Company can approach to
such source of funding for
their business to attain goal
and objectives in effectual
manner.
Loan amount is paid on
basis of time such as
three to ten years rather
than demand by bank.
The interest rate charged
by bank is usually low as
comparing to others.
The failure to pay
instalment money can
leads to seize property
of owner.
For bank loans, large
formalities has to be
followed by users that
requires more time.
Overdraft It is the source of funding
that is given to individuals
as well as business
whenever payment is done
through current accounts
which is beyond or exceed
The interest has to be
paid by borrower on
taken or overdrawn
amount.
Funding is provided very
quickly due to flexibility
If any individual or
organisation taken
huge amount of money
from bank then it leads
towards decrease in
credit score card.
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cash shortage. This is
provided for shorter time
span by banks to firms,
organisation or individuals.
Overdraft funding has
nature of flexibility that is
applied by business.
nature. This loan is provided
at any period of time
from financial
institutions.
Crowdfunding It is defined as practice of
funding to business through
raising small amount of
money from huge people
with help of internet. This
is regarded as alternative
finance as well as
crowdsourcing (The
Advantages and
Disadvantages of
Crowdfunding for
Entrepreneurs, 2017).
Different types of
crowdfunding are available
at marketplace like reward
based, peer to peer.
This is the fastest source
for raising finance
without paying any fees.
The taking of funds
through crowdfunding
help business to market
their products and
services.
There is high chances
in leaking valuable
information about
products and services
at marketplace.
When campaign of
crowdfunding fails
then there is high risk
for business to recover
such amount of
money.
TASK 3
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business
In order to success as well as growth at competitive market by business, it is significant
for them to prepare high and effective plan for their organisation so that goal and objectives can
be attained in effectual manner (Abolhasani and et. al., 2016). While making business plan, it is
essential to have skilled an experienced person so that they can prepare it in proper manner.
Business plan contain different types of information related with business such as vision,
mission, policies, strategies, financial report and so on. The different types of elements are
included in planning process like implementing, designing, controlling, monitoring and many
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more. For high profitability as well as productivity, it is important for organisation to implement
effective business plan. This helps in attainment of competitive advantage by Guildford Tyre
Company as it is enhancing their business in market of Spain. The business plan made by
respective organisation is as follows:
Business Concept
This is referred as procedure that consists of information about business in terms vision,
mission, services, products, strengths, weaknesses and so on (Kumar, 2016). It is important to
know about business and their activities as well as operations performed by them in effective
manner. The concept of business followed by respective organisation is described below:
Organisation Products and Services- This section includes different types of products
as well as services provided by Guildford Tyre Company. It consists of vehicle diagnostics,
batteries, tyre fitting, brakes, wheels, air conditioning and so on. This business follows concept
of customisation and focus on producing both auto mobile and car goods for their consumers.
Vision and Mission of Firm- This is defined as long and short term goal of business.
Here vision statement of Guildford Tyre Company is expanding as well as sustaining image of
business at marketplace by providing premium quality of products and services to enhance profit
margins. On the other hand, mission statement is to provide high and innovative products and
services to their consumers by fulfilling their need and requirements in appropriate manner.
Operational Strategy- Guildford Tyre Company follows customisation as operational
strategy where consumers are focused and according to their need and demand products are
manufactured.
Unique Selling Proposition (USP)- USP followed by Guildford Tyre Company is
private equity capitalisation in which products are sold to another organisation for time span of
three to five years.
Strategic Objectives- The respective organisation has set following strategic objective
which is described below:
 To render premium value and quality products as well as services to consumers for
attainment of business goals and objectives in an effective and efficient manner.
 To innovate fresh goods at new market for enhance of profits by 25% in next 3.5 years.
Market Analysis
In order to conduct market analysis, SWOT model has used by respective organisation
which is described below:
Strengths- In terms of strengths, respective organisation has good research and
development along with providing of premium and high quality products and services to their
consumers (Olesen and Carter, 2018). For any change in their services, they have loyal and
trustworthy consumers.
Weaknesses- The respective organisation carry ineffective distribution channels which is
weakness for it. Moreover, quality of air conditioning is not good as compared to competitors.
Opportunities- Respective organisation has opportunity to expand their business at
international market and rise in their economy. In addition to this, they have opportunity to use
new and updated technology for designing of goods as well as services.
Threats- Threats faced by respective organisation are: large number of competitors and
exporting tyres at very low cost.
Financial Plan
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