Business Growth Plan for New Car Deals Ltd: A Strategic Analysis

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Planning for Growth

TABLE OF CONTENTS
Introduction................................................................................................................................1
LO1............................................................................................................................................2
P1 Analyze key consideration for evaluating growth opportunities and justify these
considerations within an organizational context....................................................................2
P2 evaluate the opportunities for growth applying Ansoff’s growth vector matrix[M1, D1].
................................................................................................................................................4
LO2............................................................................................................................................6
P3 assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................6
LO3............................................................................................................................................8
P4 design a business plan for growth that includes financial information and strategic
objectives for scaling up a business[M3, D3]........................................................................8
LO 4.........................................................................................................................................13
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option[M4, D4]......................................................................................13
Conclusion................................................................................................................................16
References................................................................................................................................17

Introduction
For any organisation attaining business growth and sustainability is the major objectives. The
report, discusses about various steps that is included for effective planning to attain growth
considering a SME named New Car Deals of UK, the organisation is related to offering
professional services as a car and van leasing broker. The report will discuss about various
considerations to develop a strategic plan along with Ansoff’s matrix. The report also
discuses about different funding sources, that can be used by the organisation for satisfying
their financial requirement along with their advantages and disadvantages. Business plan is
disused in the current report along with various ways that an organisation can opt to exit
enterprise.
1

LO1
P1 Analyze key consideration for evaluating growth opportunities and justify these
considerations within an organizational context
New Car deals ltd. is a business organisation that is run by a family near Wakefield. The
organisation is works as a car and van leasing broker offering processional services to the
customers. To meet the aims and objectives of the business, the organisation must develop a
proper plan for marketing (Aris, 2007) . There are various factors that influence the overall
operation and functionality of a business organisation. Thus, owners and managers are
expected to plan strategies for business growth and sustainability. Some of the factors which
is effective in evaluating the opportunity of growth can be understood with the help of pest
analysis:
Political: This includes all uncontrollable factors like government policy including tax rates,
funding, and other inappropriate initiatives of government that may impact the development
of small business. UK presently is not facing any major change related to government policy
that may influence the organisation, however effective strategies must be planned for
overcome negative impact in the future. For instance, change of EU regulations and
directives may influence the business for attaining highly qualified workforce that will lead to
high productivity(Blackburn, et al 2018).
Economical: The factors concentrate on changing economic conditions of a place including
rate of inflations, change of exchange rate, currency, etc. New car deal ltd must adopt pricing
strategy for attracting new customers. Increasing pressure from government will restrict and
control competition in the market. For instance, change of inflation rate will force the
organisation to prices of goods and services. In UK, the Small business are facing high
competition, thus strict government policies are required for business sustainability. For
attracting customers the organisation in implementing price penetrating method.
Social: It includes changing preferences and taste of consumers due to availability of various
option and rising competition in the market. With the technology organisation can bring
creativity and innovation in offered products and services for attracting more customers. In
case of New Car Deal ltd. creative and innovation in the customer services with the help of
technology will be effective in satisfying the needs of the customers in cost effective manner.
2

Technological: Technological advancement and Globalization is effective in supporting
growth and productivity of the organisation. For proper application of technological advance
tools and techniques the organisation must offer proper training to the employees. So the
customers are offered with high class uninterrupted services (Keogh, and Evans, 1998.). The
organisation presently is expected to implemented technology for improvement the level of
service offered while dealing with customers and cars.
From the PEST analysis, it can be stated that preferences of consumers are changing so as the
level of competition leading to rising of issues impacting business growth and expansion.
Thus, the organisation must emphasis on various strategies like Cost strategy, product
differentiation, and advancing technology to survive the current market.
3

P2 evaluate the opportunities for growth applying Ansoff’s growth vector matrix[M1, D1].
Ansoff’s matrix or market grid matrix is a strategic tool, consists of four different options
supporting the business growth by matching the new and existing products together with new
or existing markets. The factors are plotted over the matrix for highlighting risk that business
organisation can come across at the time of switching from a grid to another.
Ansoff’s matrix is applied by the management of an organisation for getting support while
making decision regarding marketing and while achieving business objectives (Burgelman,
and Doz, 2001). According to this matrix there are four growth opportunities for a business
organisation: Market development, Market penetration, Diversification and Product
development. Using this matrix the organisation can analyze whether a new or existing
product suitable for its entry in a new or existing market and vice versa.
Market penetration: This method concentrates on selling of existing products to the existing
customers. For this, the managers of the organisation are expected to identify new tools and
technique for increasing loyalty and trust among the customers (Hussain, et al 2013). The
appeal for long term offering and order processing increases with the support of this method.
The concentration of the organisation is given upon the satisfaction of existing customers.
However, the main risk involved with this method in losing of new customer and innovation.
Market development: The method emphases on increasing share market in new market by
selling the all the existing goods and services of the organisation to a new customer base. The
customers are diversified on the basis on various factors. To attract new customers, the
organisation needs to develop new marketing schemes, advertising techniques and
promotional activities. Main risk associated with this strategy is, new customers might not be
satisfied with the product or services offered.
Product development: In this method, the organisation focuses on bringing creativity and
innovation in the products or services offered to the existing customers for offering high level
of satisfaction to the customers for developing trust and maintaining long term relationship.
For a firm like New Car Deal ltd, advance tools and technology like e-commerce,
involvement of social media, Chabot, online support etc. will be effective in attracting
customers.
Diversification: This is considered as one of the risky strategy that an organisation can
implement for business expansion i.e. to sell new product in a new location to new customers.
4

Managers of the organisation for uninterrupted implementation of these strategies must
recruit few strategic consultants that will provide support regarding customer growth and
infrastructure development. For attracting new customers, the organisation must concentrate
on inducing proper promotional and marketing strategies. This strategy is effective for well
established brands with proper supply chain (Van der Meulen, et al 2005).
From the analysis of Ansoff matrix, it can be stated that for an business organisation the
option for growth and expansion to gain competitive benefit will be effective only with
proper implementation of strategies related to market penetration strategy. For an
organisation like New Car Deal Ltd. the business growth and expansion can be achieved by
attracting more and more customers that can be attained by using different promotional
activities through social media platform.
5

LO2
P3 assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
For organisational growth finance proves to be an important resource. The sources of finance
can be termed as long term and short term:
Bank overdraft facility:
Business is having overdraft facility that can be used by the organisation for withdrawing
cash for small requirement. This method is ineffective as it need to get repaid by the
organisation on bank’s demand anytime. It’s a common scenario that bank usually charges
high amount as a interest while offering an organization with this kind of facility. Some of
the other time of financial support that an organisation can take is:
Definition Advantages Disadvantages
Personal saving:
These are proprietors personal saving
that can offer support to the business. In
most of the SME, these source is the
initial investment. Being a family owned
business, personal saving of the owner
for New Car Deal Lt played and
important role.
 Bought from proprietor’s
savings and has no
acquisition cost(Cressy,
2002.)
 No interest.
 Burden of repayment less
or minimum even in case
of business loss.
 Investing personal saving
entirely rises will to overall
property loss in case of
business.
 Investing the savings for
business purpose after
retirement is considered
dangerous.
 Some assets and savings
are free from charges of
bank which cannot be used
for repaying advances.
6

Bank loans:
When there are no potential investor the
organization can chose either to get short
term or long term loan directly from
banks Bank offered services of loan to
business organisation, with their profit
making interest upon the loan amount
during repayment.
 Personal savings remain
untouched.
 Services of the banks are
readily available and are
designed for business
purpose only.
 The issues related to
survival can be solved
with this method.
 Payment of the large loan
amount is included with
paying interest charges to
the bank with the principal
amount.
 Even in case of business
loss, organisation is liable
to pay the loan amount and
interest to the bank.
Crowd funding:
It is considered as one of the less
expensive and faster method that an
organisation can use for collecting
investment through the internet.
Potential investor pays interest in
offering their extra savings as
investment to the firm with an
expectation of high return considering
the credit rating.
 Fast and cheap
 Involves large number
participation can be seen
among investors.
 Funds are generated and
collected through internet,
which can also be used as
an effective medium for
promotion.
 Organisation with no
exposure in social platform
or internet do not get
exposure to investors
 Failure of any projects
impact badly upon
investors, and
organisational reputation.
From the above discussion, crowd funding can be considered as the bets techniques that New
Car Deal ltd can concentrate upon for raising their funds. In this method, the organisation can
gather various investors depending upon their credit rating. The method of Crowd funding
also supports in promotion the firm and help in build up trust and reputation. The
organisation is charged with low interest rates unlike bank loan. For instance, funds rising can
be done through from social loan link (Levy, and Powell, 2004). It can be people who are in
the business and also online platforms by managing the loan. The fund gather can be used by
the organisation or performing various marketing tactic and for establishing physical stores in
different areas for increasing the customer base to enhance business profit and growth.
7

LO3
P4 design a business plan for growth that includes financial information and strategic
objectives for scaling up a business[M3, D3]
Proper business planning is required for every business organisation for achieving the pre-
determined goals and objectives leading to business success. The managers and high
authorities of New Car Deals Ltd are expected to evaluate all the macro and micro factors
influencing the overall business and effectively make plans for covering all the essential
aspect to achieve the business success and growth.
Marketing plan
Executive summary: Report provides plans that are expected to be formulated by managers
of the Organisation for business expansion and growth. One of the concerns of an
organisation is related to Financing that will needed for supporting the various business hence
best mode of investment must be adopted.
Vision: Vision of New car deals ltd. is to become leading organisation to offer the customers
with efficient, friendly and professional services for offering the best deal for new car. The
enterprise aims to gain business expansion and growth by implementing new tools and
technology.
Objectives:
 The objective of New Car Deal Ltd. is gain sustainable business growth by offering
high quality services to the customers.
 To recruit skilled and talented team for excelling is offering best service and to
achieve business objectives.
 The higher authority of the organisation sets achievable goals for gaining confidence
and trust of stakeholders through the offered facilities and customer service.
SWOT analysis:
SWOT analysis is done for the organisation for identifying strength, weakness, threats and
opportunities. The organisation with the support of SWOT tool can effectively set practical

goals. With the support of SWOT analysis organization can find the management potential
for effective business.
Figure 1: SWOT analysis
(Source: www. cre8ive.co.nz, 2019)
Table 1: SWOT analysis
Strengths:
 Organisational credit rating helps to
rise and arrange funds for various
business operations and to crates
strategic plan accordingly.
 Diversification of services offered
supports the SME to gain attention
of customer.
 The organisation aims to offer long
term customer relationship and
customer satisfaction.
Weaknesses:
 The organisation must bring
creativity and innovation for offering
the best service to the customers.
 Low pricing method for attract more
customers.
 Low popularity in social media
platforms and low technological
implementation (Wakkee et al 2015).
Opportunities:
 Globalization is the best opportunity
for business expansion.
 Technological advancement support
for increase the customer base.
 For increasing the customer base
strategies for customer segmentation
can be utilised.
Threats:
 Level of competition is increasing in
global and regional level.
 Main drawback is lack of new
technology and tools.
 For increasing the business growth
and sale the awareness offered by the

 New products, online platform and
creativity will be effective in coping
with the increasing market
competition.
organisation.
 Improper mode of finance for
business growth.
Marketing mix
Product: The organisation is effective innovator that offers services as car and van leasing
broker. The organisation aims to offers the best deal to the customers regarding the cars.
Price: For the offering the services to the customers regarding the best deal the organisation
charges reasonable prices. The business desires to be the leader of car leasing brokers for
attaining high customer satisfaction level (Neubauer, and Lank,2016. ). The organisation
believes in quality services and, innovation with cost effective prices to attract customers.
Place: Currently, the organisation is supporting the customers mainly in UK countries related
as a car broker for increasing revenue and sale.
Promotion: All the information regarding the car deals are update in the organisational
website and other social media platform for attracting more customers.
People: All the function and function of the organisation are performed by skilled and
qualified team. Additionally, the workers are trained and motivated to operate as per the
organisational need and standards.
Process: Easy utilised and cost effective systems are used for performing various business
operations for offering services to the customers to maintain positive relationships with
various stakeholders
Physical evidence: The organisation presently has a very small store in Wakefield; West
Yorkshire, however due to increasing demand and business profit the organisation is planning
to have more physical store is different region.
Financial analysis:
One of important resources for any organization is financial implication. The overall business
growth and development can only be achieved only through proper funding. Funding source