Planning for Growth: Redesigning Education - Strategy Report

This report provides a detailed analysis of growth strategies for Redesigning Education, a small-scale educational service provider. The report begins with an introduction to strategic planning and its importance for business growth, emphasizing the need for a systematic approach to navigate risks and achieve long-term profitability. Task 1 focuses on key considerations for evaluating growth opportunities, including competitive analysis, Porter's generic strategies (cost leadership, differentiation, and focus strategies), and external analysis using the PEST framework. Task 2 explores growth opportunities by applying the Ansoff growth matrix (market penetration, market development, product development, and diversification). Task 3 delves into potential sources of funding available for businesses, discussing their advantages and limitations. Task 4 guides the design of a comprehensive business plan. Finally, Task 5 assesses succession or exit options for small enterprises, outlining their merits and demerits. The report aims to provide practical insights for Redesigning Education to expand its operations, enhance its market position, and achieve sustainable growth within the education sector.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration for evaluating opportunity of growth.......................................................1
P2 Growth opportunity by applying Ansoff growth matrix........................................................5
TASK 2............................................................................................................................................7
P3 Potential sources of funding available for business and its advantages and limitations........7
TASK 3 ...........................................................................................................................................8
P4 Design a business plan...........................................................................................................8
TASK 4..........................................................................................................................................10
P5 Assess succession or exit options for small enterprise and its merits and demerits............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisation have to make a strategic plan as it is major part of planning for growth. For
the growth of business it is termed as broadening and magnification within activities and
operations. Main purpose of organisation is to enlarge its enterprise activities within economy for
making higher profits (Eddleston and et. al., 2013). It is important for enterprise to develop a
plan related to success and growth of business activities. Redesigning Education is an
organisation operating their business at small scale. They are giving counselling and education to
children and young people. This company takes context for the aim of bidding. In this report it
involves key consideration for evaluating growth opportunities. For accomplishing a contract
effectively, company analyse various sources of funds and also its limitations and advantages. In
this, company also evaluate the growth opportunity by implementing Ansoff growth matrix.
TASK 1
P1 Key consideration for evaluating opportunity of growth
Companies priority is growth for this they require to make a plan in an systematic manner
for the growth and success of firm. Growth involve various risks, but executing a right strategy
can provide security, long term profits and stability. Redesigning Education is a small scale
organisation which deals in giving education to children and young people. They provide a new
way of learning tools to community and institution centres. Its purpose is to expand enterprise
activities by adopting new tools of education such as video editing, projector and many more.
This will help in capturing large share of market and achieve competitive advantage. For the
growth of enterprise, it is important for Redesigning Education to analyse the factors of external
and internal as well. In this, it will aid in attracting higher numbers of customers towards the
company which will improve sales and level of profits. By making plans, Redesigning Education
can meet its objectives related to several aspects like digital technology, sources of funding and
so on. Planning provides better business opportunities concerned to policies and process which
guide employees for their work. Digital technology assist business in order to increase its
productivity in an systematic way. Implementing digital technology assist in contributing
towards its growth of small enterprises (Mahmoudi and et. al., 2013). Along with this it also
provide better opportunity to company for giving advanced services to their customers. Some of
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growth opportunity which are their for Redesigning Education in order to execute digital
technology are given below:
Competitive Analysis: In this, Redesigning Education manager have to develop a better
plan for executing digital technology with enterprise to perform all the activities. Every
department of this company get benefits of adopting latest technologies. In this term, firms gets
an opportunity to enhance their educational services (Valler, Phelps and Wood, 2012). It will
assist in attracting higher numbers of buyers towards their organisation. They also get
opportunity to use latest techniques of marketing like social media, internet etc. It will be useful
for Redesigning Education to perform their business activities in an better manner as compare to
its rivals. It will help in achieving competitive advantages within market.
Porter generic strategy: This strategies is very crucial part for enterprise which is
beneficial for achieving long term success. In this, firm positioned itself by using their strengths.
It can be its marketing campaign, trained employees and so on. Michael Porter emphasizes
organisation strength lies in positioning and cost advantage. Porter generic model is implemented
by Redesigning Education in order to grab opportunity of latest technology within their
educational system. This model involves four strategies which are:
(Source: Porter generic strategy, 2017)
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Illustration 1: Porter generic strategy

 Cost leadership: In this strategy, sources of cost benefits are depend and varied on the
structure of business (Kraaijenbrink, Ratinho and Groen, 2011). This involve advanced
technology, economies of scale and many more factors. Redesigning Education should
identify low cost technology producer and use all sources of cost benefits. If company
can sustain as well as achieve overall cost leadership then Redesigning Education can be
a average performer within industry. Differentiation: In this, company seeks to provide different or unique services within
their industry. Along with this, certain attribute are widely valued by customers. In
Redesigning Education, manager grab the opportunity of executing digital technology in
a new manner. It provide unique services to their customers according to their wants and
needs within market. Cost focus: This mainly concentrate rests on selecting a narrow competitive scope in
business. They choose a group or segment within their industry and adopt this strategy to
serve their customers. Redesigning Education mainly concentrate on its cost advantage
factor while grabbing opportunity of digital technology within their business activities.
 Differentiation focus: This also mainly concentrate on narrow choices of competitive
scope in business. Redesigning Education can also focus on providing different services
to their customers by using digital technology within their workplace. They can target
segment to their customers special needs and wants which help in attracting higher
numbers of buyers towards their organisation.
In this, Redesigning Education will implement differentiation focus as they will provide
unique services to their customers as per changing trends and their needs. These unique services
will helps the firm in gaining competitive advantage over rival companies as customers prefer to
purchase new and modern products. Organisation is applying digital technology it order to attract
higher numbers of buyers (Grover, Bokalo and Greenway, 2014). As customers are going to be
highly satisfied from the company, manager of company can raise the prices of products. Due to
uniqueness and advancement, consumers will be eager to buy the products due to which revenue
and profitability of firm will increase. This strategy will help in targeting segment to buyers
wants and needs. So that firm can perform their educational system accordingly.
External Analysis: In this, company analysis the factors which are political, economic,
social and technology. These are very essential factors in order to enhance decision making
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process. It is true that demands of world are changing and due to that education are also
matching up with their changing requirements. Redesigning Education is also changing their way
of accomplish their activities in a new manner. For this, manager of company have to analysis
the PEST in order to know the chances take place within market. PEST Analysis involve:
 Political: This factor play a very essential role within the organisation. In the education
sector, this factor gave impact on several policies and also change in the way of working
within educational system (Chapin, 2012). There are various changes take place are in
financial policy, curriculum, emigration etc. Redesigning Education have to analyse these
factors properly and used them while accomplishing their business activities effectively.
(Source: PEST Analysis, 2018) Economic: In current era, industry is global and markets are volatile. Whether firm is
providing services or products its quality is an main factor. Their are several elements
which gave impact on education sector are interest rate, exchange rate, inflation rate and
so on. Redesigning Education have to analysis all the rates while grabbing the
opportunity of executing advanced technology. Social: This factor also gave impact on education sector in various manner. This factor
involve health and well being, cultural aspect, public policies, population demographics
etc. Redesigning Education is analysing the needs of customers and their culture
according they adopt the services within their workplace (Ziari and et. al., 2012).
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Illustration 2: PEST Analysis

 Technology: This is very important factors as it is dynamically changing within market.
This involve risk of using technology, shift from paper to e-books, standard require and
so on. Redesigning Education is adopting digital technology within workplace. They are
using social media, e-books, projectors and many more for completing their work
properly.
Redesigning Education have to analysis all the above factors in order to grab opportunity
of adopting digital technology within their workplace (Todes, 2012). As they have to apply all
the political factors take place while using latest technology. They also have to evaluate the
needs and wants of their customers effectively. This will help in increasing sales and profits as
well. Analysis of these Macro factors will helps the firm in acknowledging political, economic,
social and technological aspects in a detailed manner. Due to which they will be capable to
formulate their policies in desired manner. These policies will allow them to achieve their
objective by appropriate means which will results in gaining competitive advantage.
P2 Growth opportunity by applying Ansoff growth matrix
In this changing environment, every company want to grow as well as radiate in
marketplace. With this, they focus on applying latest technology and strategies in order to gain
defensible edge. Redesigning Education is working as per customers needs and wants within
market. In order to identify growth opportunity in external environment. It is necessary for firm
to apply Ansoff growth matrix in order to control future risks and uncertainties which hinder
current position within market. In this, Redesigning Education can analyse those areas which
help in flourish their activities and meet higher level of competitive edge within span of time
(Mitchelmore and Rowley, 2013). This matrix gives chances to company for its growth within
new or existing market with their new services. Its purpose is to enter within new quadrant in
order to improve its market areas. Some of elements of this Ansoff's growth matrix are given
below:
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(Source: Ansoff growth matrix, 2018) Market penetration: This entails to provide similar services within marketplace. For
completing effectively, organisation require to demonstrate several ways which include
in improving customers trust as well as loyalty. Along with this, it also enhance services
by adding new innovative features in existing products. Thus to come in current market,
Redesigning Education is having better opportunity of implementing digital technology
within existing services. This will assist in enhancing working activities and practices as
well. Thus, to execute effectively in UK Redesigning Education is adopting various
marketing campaigns for attracting large numbers of buyers towards organisation. Market development: In this techniques, it assist in entering within new market through
its current offerings. It will increase the market areas and enhance its position as well.
Small organisation like Redesigning Education grab various opportunities in order to
raise brand image and market reputation among the customers. Firm compare their
techniques with their competitors (Barbour and Deakin, 2012). This is quite flexible and
effective as it focus on customers value. If services are not matches with needs of
customers then this concept will not get success within market.
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Illustration 3: Ansoff growth matrix

 Product development: In this, companies deals by adopting several tactics and tools for
providing innovative services to their customers. It help firms to achieve competitive
market. Redesigning Education focus on applying several new techniques as well as
modifications their process of providing services (Schetke, Haase and Kötter, 2012). It
will aid in giving proper education to their buyers. For making changes within
Redesigning Education services are by adopting advanced technology in order to give
netter and efficient services. Diversification: In this factor, it is very risky in order to execute business activities. In
this, firms are entering within new markets through their new services. Redesigning
Education have to use this kind of tactics in order to achieve higher level of competitive
benefits. Redesigning Education have to get contracts to provide educational services to
buyers in order to raise demands of their services.
In this Redesigning Education is adopting diversification strategy in their enterprise for
expanding their business in others locations by giving innovative services in order to grab
buyers. This method will help the firm in proper analysing the market due to which it will
become easy for manager to acknowledge the needs of customers properly. In accordance with
that the diversified products will be developed and offered to customers. This will satisfy the
needs of clients in a better way which will results in gaining competitive advantage to company.
TASK 2
P3 Potential sources of funding available for business and its advantages and limitations
Firms need funds for executing business activities properly in order to run their industry
for a long time. If they are not having enough finance then it will become difficult for
organisation to operate their enterprise in market. Here, Redesigning Education had taken a
contract of counselling for children and young people aged 10-19. 2018-2021. For accomplishing
this contract effectively, organisation have to raise funds from others sources due to having value
of bid is £213k. Firm is having £20,000 and for remaining finance they have to raise funds by
using best sources of raising finance. Their are various ways of rising funds are:
Bank Loan: This sources is used by various organisation in order to raise funds for
enterprise. UK government had develop several rules and regulations of of banks who are
starting new business. Small companies like Redesigning Education can use bank loans for
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raising finance at a low rate of interest in order to execute their task properly (Li, Mobin and
Keyser, 2016). Their are several institutes of finance which provide bank loans to small firms
such as firms societies and so on. Merits: Bank loans are legal and fix in which Redesigning Education needs to make
payments of fixed rate of interest to financial institutes and banks. It also gave tax
benefits, retained profits, banks loans are cost effective, this also give flexibility and so
on. Demerits: This source of funds have fixed rate of interest so organisation cannot bargain.
In this, Redesigning Education have to make payments whether they are in loss or profits
within their business (Denton, Forsyth and MacLennan, 2017). This involve repayment
burden, strict requirements, irregular payment amount and so on.
Crowdfunding: It is better option for firms who have great networks as well as maintain
loyalty and trust before starting enterprise. This source increase capital by using social networks
and online in order to ask large number of persons for contributing finance on their projects.
Crowdfunding help Redesigning Education in raising funds by using various websites like
Pozible and OzCroed. Merits: This is a easy way of increasing finance without any charges. Investors can able
to analyse companies progress which aid in stimulating brand through their networks. By
this process Redesigning Education can become their loyal buyers as well.
 Demerits: This source do not secure organisation ideas with copyright as well as patents.
Firms also get rewards as well as returns which shows that they are providing too much
to enterprise for investing.
In this, Redesigning Education is adopting a bank loan for accomplishing their contract in
an effective way. As bank loan is secure and firm have to make payments of fixed interest rate to
the bankers. This also provides flexibility as well as it is cost effective too. Bank loan is also
giving tax benefits to companies (Mitchelmore and Rowley, 2013).
TASK 3
P4 Design a business plan
Business plan
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It is an formal statement of enterprise targets, plans in order to reach them and reasons
that they are achievable. This also involve overview of organization and their groups attempting
to reach targets.
Background of company
Redesigning Education is an small scale firm. This company is situated in United
Kingdom. They provide services of education to their customers. They are using various new
innovative tools within their business activities. They are using social media for advertising their
services in order to attract higher numbers of customers.
Mission & Vision
Mission of Redesigning Education is to provide education in all the children and young
peoples and vision is to expand their business in others locations by satisfying their customers.
Market share
The current market share is 1.57 millions in competitive marketplace. Moreover, the
respective organization is planning to increase market share in order to expand their business
innovative tools and ideas in market of United kingdom.
Competitors
The competitors of redesigning education are non traditional teachers, schools and online
education provider.
Product service
Product and services offered by redesigning education are online education, schools and
colleges etc.
Management Structure
Herein, the respective organization is maintaining a hierarchical structure in operating
their business activities. So there is proper flow of communication in an organization and their
no misconduct in performing task and activities. Thus, this structure is best and adopted may
many organization as it is effective in nature.
Internal analysis
In this, firm select proper tactics to get full information of system capabilities. It is
essential that funds should be used effectively because Redesigning Education is an small scale
company is having limited funds for accomplishing enterprise activities (Grover, Bokalo and
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Greenway, 2014). Company can analysis their SWOT effectively. This will help in acknowledge
rivals working within digital technology sector. Its internal analysis are:
Strengths
 Redesigning Education is having
cooperation with several innovative
services which help in maintaining
buyers faithfulness.
 This company is providing services as
per customers demands within
marketplace. Redesigning Education is
adopting latest technology within their
workplace.
Weaknesses
 As company is small, people are not
well familiar with the services due to
which customers are not willing to pay
high for their products.
Opportunities
 This firms bargains in limited areas of
market within United Kingdom. So
Redesigning Education have to increase
their business activities.
 Redesigning Education can grow their
business in others locations as well.
Threats
 Other companies in same field are also
improving the quality of their products
without charging high. This can be a
potential threat.
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