Business Plan for Growth: The Social Scoop Report Analysis

This report, focused on "The Social Scoop," a digital advertising and marketing company, analyzes key considerations for business growth. It covers evaluating growth opportunities, including resource assessment, core competencies, and competitive analysis using Porter's Generic Strategy and PEST analysis. The report explores Ansoff's growth vector matrix (market penetration, market development, product development, and diversification) to identify growth strategies. It also examines potential funding sources for businesses, along with their benefits and drawbacks. Furthermore, it includes the development of a business plan for growth with financial information and strategic objectives, and concludes with an assessment of exit or succession options for small businesses. The report provides a comprehensive overview of growth planning, essential for businesses aiming to achieve their goals.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse key considerations for evaluating growth opportunities and justify......................1
P2. Opportunities for growth applying Ansoff’s growth vector matrix......................................4
TASK 2............................................................................................................................................6
P3. Potential funding sources for businesses with benefits and drawbacks................................6
TASK 3............................................................................................................................................7
P4. Business plan for growth that includes financial information and strategic objectives for
scaling up a business...................................................................................................................7
TASK 4............................................................................................................................................8
P5. Assess exit or succession options for a small business with the benefits and drawbacks....8
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Every organization plans for the growth of the business which needs a strategic planning
with that it can attain its goals and objectives. A small firm also seeks to grab the opportunities to
grow more and attain its aim. In order to explore a company should be attentive to identity the
opportunities that can give it hike with strategic planning which leads towards a direction of
success. Thus, this report is based on the planning and growth these are the two essential factors
which maximizes the profit. In this report, “The Social Scoop” is a digital advertising and
marketing company which is bidding for Alcohol Social Marketing Campaign to acquire the
contract. The report covers key considerations for growth, Ansoff's growth vector matrix,
funding sources, business plan and exit or succession options (Allmendinger and Haughton,
2012).
TASK 1
P1. Analyse key considerations for evaluating growth opportunities and justify
A business should aware about the growth opportunities but to grab these possibilities it
needs to evaluates its strength and weaknesses because these are prime sources that assist to
explore a company. The Social Scoop wanted to grab the bid but first it needs to embrace its
internal resource which help to fulfil the requirements. There are some key considerations which
needed to be evaluate the growth opportunities that are mentioned as below -
Resources – The Social Scoop needed to evaluate its resources that it has the sufficient
funds, staff and machinery which aid to accomplish the task. The Social Scoop would require
the computer systems to design the campaign, programmers, software and funds that are needed
to pay the programmers who are putting efforts for alcohol social media campaign.
Capabilities – Firm needs to enhance the capabilities which accelerates the process such
as the finance which is used to invest on the paid platforms to encourage the social media
campaign, programmers who will design the graphics and content to support the campaign
effectively. All of these will be utilize to enhance the abilities of the campaign (Berger and
Berger, 2011). furthermore, the firm should also analyse the competition in the market to prepare
the strategies to gain the competition advantage.
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There are some models which are needed to evaluate for small businesses growth and
one of them is a Porter's generic strategy and other is PEST which is used to analyse the external
market.
Porter's Generic Strategy
Porter's generic strategy model was introduced by Michael Porter which focused on
broad segment and narrow segment of the target marketplace (Blackburn, Hart and Wainwright,
2013). This model analyses the situation to sustain in the competitive advantage for long run.
(Source : Porter's Model of Generic Strategies, 2018)
As shown in the above picture, firm can target the two markets as either the broad or
narrow. In order to understand the complete scenario to gain the competitive advantage the cost
and differentiation can be follow in such manner -
Cost leadership – The cost is targetted to the broad segment by keeping the low prices
of the products and services. Customer always look for the affordable prices and The Social
Scoop can hold low prices as much as it is possible to get the contract from the Alcohol Social
media campaign and various others (Denton, Forsyth and MacLennan, 2017).
Differentiation – In this strategy, 'The Social Scoop' is concentrated on the broad section
through making their product unique from the rivals. The firm can differentiate their product
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Illustration
1: Porter's Model of Generic Strategies

with various attributes and features that are not considered by other companies. To make a
product different from others, firm should use the innovative ideas that delivers the high quality
of services to the customers and for that they will not hesitate to pay the premium price (Gleeson,
Dodson and Spiller, 2012). For an instance, 'The Social Scoop' can use offer infographics that
can clearly convey the message for the alcohol consumption. This facility is not provided by the
other firms in the market and that is beneficial for the Social Scoop to get the contract.
Focus – 'The focused strategy is targetted to the niche market and thus it refers to the
narrow segment. In this strategy the firm can gain the competitive advantage on the basis of two
variants that is cost and differentiation. The firm can target the customers with cost advantage
where it offers low price for the same product which is already exists in the market. But the
customer will purchase the low cost product due to the comparison in product cost (Glock, Jaber
and Zolfaghari, 2012). On the other side, there are a few customers that needs something extra
ordinary and for that they can pay the high cost. So 'The Social Scoop' should focused on the
differentiation focus strategy as there is small market but the firm can gain more profit than the
cost focus strategy.
PEST analysis
PEST is used to analyse the external environment of the market which is not directly
relate with the company but has an impact on the organizational activities. Thus. It can be
mentioned as below -
Political – This factor refers to the policies and laws that established by the government
and the firm has to follow that to run a business smoothly. These aspects can be the international
trade policies that are established by the government. 'The Social Scoop' needs to pay the tax to
the government in order to expand the business. As it can be see in the UK market that due to the
Brexit affect the government encourages the business so it is great opportunity for the company
to explore in the UK marketplace.
Economic – It can made a huge affect on the business as it is essential to analyse the
financial state of a country in which a company is exploring. If a country has a high per capita
income then the population has the high interest to spend their income on the luxury products.
On the contrary the people has low income then they will spend less on the goods. So it is
important for 'The Social Scoop' that the nation has strong economy in which the business
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operations can be run smoothly. Every business is originated with an objective that is to earn
profit and raise the productivity.
Social – A business is impacted by the preference, choices and priorities of the people. It
is necessary to recognise the nature of the people because people has there own habits to
purchase the products and services that affects a business. If 'The Social Scoop' seeks the
opportunities for growth and then it should analyse the buying behaviour of the target market and
the factor which attracts them to enhance the purchase as there are various changes occurs in the
market that can force them to buy the product. It is necessary to deep study about the target
market area so that 'The Social Scoop' can provide them product according to their requirement
and to sustain in the market (Goodfellow, 2013).
Technology – There are various technologies are introduced everyday. Therefore, it is
necessary for 'The Social Scoop' to adopt the technology that supports the growth of a business.
It is convenient for the business to stay with the clients to consult about their requirements in the
project. For an example, if 'The Social Scoop' adopts technology then it can send its marketing
infographics to the the customer to know their needs and to made essentials changes. This can be
possible due to technology as they can communicate with each other without any delay.
Technology is plays a vital role in the business as it offers several opportunities to expand a
business.
P2. Opportunities for growth applying Ansoff’s growth vector matrix.
The Ansoff's growth vector matrix is used by the marketers who are seeking for the
growth of the business. Therefore it offers a strategies that can be put in to practice to attain the
objectives. It has four categories that are mentioned below -
Market penetration – In this quadrant, a firm produces the existing products for the
existing customers. To sustain in the market for a long run, company needs to promote its
product in an effective manner that can capture the customers attention which aid to increase the
sales of the organisation. For example, there are already numerous advertising and marketing
companies but 'The Social Scoop' needs to offer some exclusive services which can attract the
customer and that will help it to stay in the market for a long run (Hollenbeck, Noe and Gerhart,
2018).
Market development – This variant refers to develop a new market for the products and
services which are offered by the firm. In this approach, the products are the same but it reaches
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to the new audience. 'The Social Scoop' can launch its existing products in the new market that
means its services remains same but the region will be new. When a company adopt this
element, then they will focus on the new market area with their existing products to attain the
target.
Product development – In this quadrant, the product a new product is marketed among
the existing customers. A product is innovated and developed to replace the existing customers
in the present marketplace. These products are promoted in the active market and influence the
people to increase the purchases. Although, it focuses on the product but it also has some risk to
decrease the customer rate because there are the chances of the new product which does not
satisfies the consumer expectations (Lewis, 2013). For an example, if 'The Social Scoop'
innovates its marketing strategies that are not at all satisfy its clients. Then it can be in the perils
to loose its existing clients. So the firm should be concentrated on the products and its customers
that choice which has less risk.
Diversification – Diversification refers to the introduce a new product in the new market.
There are two types of diversification that is related and unrelated. In related diversification a
company stays in the market with which it is amicable such as the content marketing. Unrelated
diversification can be define as the a completely new to the market. For an example, a business
organization which does not have any experience nor any relevance in the field such as a
Software company invests in the restaurant business.
This quadrate has high risk as the entrepreneur is not related to the other field in which
they are investing. If 'The Social Scoop' is familiar with its products then it can develop a same
kind of product with a new idea in the new emerging market then it may have less risk than the
unrelated (Madlener and Sunak, 2011).
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(Source : Ansoff Matrix, 2018)
As shown in the above picture there are the four quadrates that can affect 'The Social
Scoop' to grow in the marketplace with different strategies.
TASK 2
P3. Potential funding sources for businesses with benefits and drawbacks.
For any successful organisation, there is required some adequate funds for running its
operations in an appropriate manner. There are various potential funding sources that can help
the 'The Social Scoop' to raise the fund to accomplish the contract. It is necessary to provide
better social marketing services in the marketplace so that more customers can be attracted
towards firm (Moseley, 2013). Company is coming under a contract for bidding with Alcohol
social media campaign where required at least euro 100k and firm has £20k to spend in the
business. So, they have to borrow some required funds which is £ 80k from
other sources (Sarver, 2015). There are some potential sources which lends
the money to the business organizations which helps them to accomplish
the task. These funding sources are mentioned below -
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Illustration 2: Ansoff Matrix

Small Business Administration Loans – The SBA is government
administration which provides funds to the small business organization
(Wey, 2015). It has four primary functions such as -
 It is not an actual lender but it supports as a guarantor in order to
obtain the loan.
 This provides entrepreneurial development through education,
advising and training.
 SBA ensures that 23% of government contracts are awarded to small
businesses. Support for the small business.
Benefits
 The SBA supports in such a way that increases the chances for the
loan approval. It improves the relationship between the local lenders and local
borrowers.
Drawbacks
 It has a strict guidelines to follow and on the behalf of that it looks at
past record for the 2 3 years. This creates difficulties for the new
companies to the get the loan approval.
Angel Investors – Angel investors are those who gives loan to the
entrepreneurs with a equity share in business. They keep a share of the
company as a guarantee to use that equity to recover the debited amount.
These investors works in a group to provide the finance and screen the
deals.
Benefits
 They have the experience about the industry and help to get the funds
form their network. It has a flexible agreements that can adjustable according to the
present condition.
Drawbacks
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 The angel investors can force the entrepreneurs to take over the
control of the company as they have the equity share.
Banking financing – bank loans are the most frequent source of the
finance and it is easy to pursue at the nearest institutions (Williamson and
Parolin, 2013). There are various options to acquire the finance and its interest
rates are also according to them. The bank will clear all the formalities and
documents before loan will get sanctioned.
Benefits
 banks offers a variety of funds and instalments that a borrower can
pay easily. One does not need to give an equity share of the company to the bank.
Drawbacks
 Bank loans are difficult to obtain and its criteria is perpetually
changes.
 The documentation takes time and because of this it is loan process to
acquire the loans.
 The financing options can be confusing and lack of knowledge about
the financing policies an entrepreneur can get stuck in the poor deal.
For an instance, if owner of 'The Social Scoop' can easily take the loan from
any of these options. They opt from these options with consideration of
benefits and drawback.
TASK 3
P4. Business plan for growth that includes financial information and strategic objectives for
scaling up a business.
In the present scenario, every organisation is trying to increasing their size, and wealth
with the help of formulating effective strategies and action plan which must be appropriate in
accomplishing gaols or objectives (Allmendinger and Haughton, 2012). Planning is an essentials
in shaping business firm and help to attain predefined targets. In this consist various aspects such
as time, budgets, strategies, tools and techniques, available resources, methods and various
procedures, manpower so that organisation can achieve best possible outcomes. The Social
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Scoop required to prepare and produce effective plan that facilitate in analysing internal and
external factors that can affects on the business activities and functions. There are business plan
of The Social Scoop such as:
Executive summary: business plan must be required for managing entire operations by
considering funds, available resources, capitals, land and technologies to accomplish set goals.
The Social Scoop provide various kinds or services associating advertising and marketing as
well. They are focusing on expanding business at different level for increasing size and growth.
Therefore, better plan must be considered for getting best possible results.
Overview of the firm: The Social Scoop is dealing in number of advertising and
marketing services for providing adequate information to the targeted audiences and create
awareness among them. It was founded in 2015 by some group of people in the UK.
Mission : The Social Scoop mission is to provide extensive advertising and marketing to
the organisations.
Vision : To explore the business with high profit rates in five countries every year.
Products and services: There are number of products and services which are provided
by The Social Scoop including online advertisements, pay per click, search engine optimisation,
other social marketing campaign, social media and other components of advertisements for
providing adequate information to the customers (Berger and Berger, 2011).
SWOT analysis:
Strengths:
 'The Social Scoop' has a great team of marketing analysts and graphic designer who are
working with its since inception (Blackburn, Hart and Wainwright, 2013). It has been working with a top companies which was seeking to promote the products and
service with an impeccable creative ideas.
Weaknesses:
 It has a limited staff that works on projects. This has lack of funds to invest in projects.
Opportunities:
 'The Social Scoop' is looking for the market in developing countries. It has opportunities to explore in web designing.
Threats:
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 There are lots of advertising and marketing companies in the market.
 Tough competition to enter in the new country.
Financial plan -
Total forecasted budget
Particular 31/12/15 (£) 31/12/16 (£) 31/12/17 (£)
Implementing
technology cost
15000 - -
Promotional expense 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
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