Strategic Business Planning for Growth: Zirra Case Study Report

This report provides a comprehensive analysis of Zirra, a financial service provider for startups, focusing on its growth strategies and potential for expansion. The report examines key considerations for organizational growth, including turnover, market share, profitability, staff, technology, competitive advantage, and new product development. It utilizes the Ansoff matrix to evaluate growth opportunities such as market penetration, market development, product development, and diversification. The report also explores potential funding sources like equity and debt, outlining their benefits and drawbacks. Furthermore, it addresses the formulation of a business plan, including financial and strategic objectives, and discusses exit and succession options. The analysis highlights how Zirra can leverage digital technology and strategic planning to achieve its growth objectives and compete effectively in the market.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key consideration for growth opportunities in organisation context..................1
P2 Evaluation of opportunities of growth by using Ansoff matrix.............................................3
TASK 2............................................................................................................................................6
P3 Potential sources of funding with each one benefits and drawbacks.....................................6
TASK 3............................................................................................................................................7
P4 Formulation of business plan for growth with financial and strategic objectives of scaling
up.................................................................................................................................................7
TASK 4............................................................................................................................................7
P5 Exit and succession option for business with its benefits and drawbacks.............................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Planning is an essential element for every business which have to take in account by
managers of an association so that they are going to maximise return. Planning for growth is a
concept which stands for identifying the factors which enable an organisation to get grow and
developed in keen competitive market world. This project is based on Zirra whom are financial
service providers for start ups as well as provide accurate information about companies to their
investors. This corporation get founded in year 2014 and their total funding is around $2.3
million. Official website of a company is zirra.com and their employees size are 20 (est)+6%
(Zirra, 2017). This project evaluate impact of digital technology to this business which facilitate
them an option to bring their association at global level easily. This project includes key
considerations which an organisation have to include at the time of growth. Along with this,
management require fund as well and for this analyse each factor properly. For growth,
management needs to present business plan which have to get follow up in an appropriate
manner.
TASK 1
P1 Analysis of key consideration for growth opportunities in organisation context
Every business work and making their operations effective with a purpose of gaining
growth and development. Managers have to determine all growth opportunities which enable
them in making operations effective in nature. There are various risk factors always associated
with development and opportunities but managers have to play their duties in an effective
manner by preparing appropriate strategies (Barbour and Deakin, 2012). Following are several
key considerations which have to take in account by management so that growth opportunities
get grab in an effective and appropriate manner:
 Turnover: Measurement of growth only become possible through annual turnover
of business which facilitate an option to derive that are operations taking place
properly. According to Zirra current funding context is 41.6 million which states
that they are working in appropriate direction. Along with this, their number of
clients also get maximise .
 Market share: Whenever managers are going to take any growth oriented decision,
association have to analyse market share of corporation. Market share of a
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company stated that they are able to get sustain at market for long term or not so
that for incorporating all these things appropriate growth related decision get
evaluated properly. Zirra current growth is 5.3% which is more improved and
appropriate than other competitors. One of a major competitor of an association is
AdmantX with a growth of 5%.
Illustration 1: Market Position of Zirra, 2017
§
(Sources: Market Position of Zirra, 2017)
 Profitability: A major consideration for growth of an association is their profit ratio
which have to take in account by management. Managers have to make their focus
on each and every activity properly so that they are going to derive profitability
properly. Zirra's profitability from past few years is enhancing because they are
contributing in set up the most appropriate start up's of UK by identifying more and
more number of investors (Chen and et. al., 2014).
 Staff: Growth can only get ascertain with assistance of employees. This factor
require more motivating employees with appropriate skill of working. Staff
members are in daily contact with customers and thus their capability evaluation
play an important role. On the basis of above graph of Zirra, it determines that with
20 employees, management attain a good growth rate of 5.3% with in 3 years. This
stated that all staff members have good skill of analysis and they enough capable to
take appropriate decisions as well (Eddleston and et. al. , 2013).
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 Advanced technology: Growth and technology both are helpful to each other.
Business growth is a part of technology through which business get introduce at
vast level. Zirra will going to introduce themselves at vast level where they are
going to use advanced and latest technology for maximising their number of
clients.
 Competitive advantage: One of an essential factor which serve as growth
opportunity for business would be competitive advantage. Management could gain
growth and better determine market when they used to made them differ from
others. It is really essential to determine growth and better market opportunities by
utilising resources properly. It enables and support in defining consideration better
and in effective manner as well. Zirra will get competitive advantage and ascertain
growth in frame only once when they used to utilise resources properly through
which core competency could be gain in better and definite frame. This result in
enable them in consider growth opportunities in near future course of moment.
 New Product Development: Another consideration which assess and related with
business is NDP. For gaining growth and determine better opportunities in near
future course business require to introduce a new product at desire market world.
This enables and facilitate management to gain better growth opportunities which
facilitate and enable in cover most target world. This result in proclaiming better
and define place at market world so that suitable assessment could get done. Zirra
need to work on this aspect better so that they could launch new product which
enable and facilitate in made things better and effective in nature of frame.
While performing business at global level through digitalisation, management have to take all
their steps in account which are already get framed (Galland, 2012). Zirra basic information is
described as follow with their mission, vision and other associated details:
Mission:
“Zirra's mission is to eliminate the need for labor intensive human data collection and analysis.
We empower investors, executives and everyone else with a simple to use toolbox of analysis
outputs that traditionally has only been available to a select few”.
Work:
 Provide snapshot about various companies
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 Provide appropriate detail about an organisation so that beneficial decision will be carried
down
Founded and founders:
Company incorporated in the year 2014 and their working team members are:
 Moshit Yaffe – Co founder and CEO
 Aner Ravon – Co founder and CPO
 David Hessing – CTO
P2 Evaluation of opportunities of growth by using Ansoff matrix
Growth in business is refer to as process with in which activities of an association are
going to introduce at wide level. Every business growth related context is refer when they want
to enter in a new market world where more and more number of customers or clients are
presented. Growth opportunities refer to as process or a path which enable an association to
generate more revenue (Levy, 2016). Hence, when, business wants to enter into market,
managers have to conduct a market audit plan where they lead to determine all negative and
positive outcomes.
For entering into new market world, Ansoff matrix vector get used through which
analysis of market get done properly which have to take in account by every developing business
(Ansoff Matrix – The growth share Matrix of Ansoff, 2017):
Illustr
ation 2: Ansoff Matrix – The growth share Matrix of Ansoff.
(Sources: Ansoff Matrix – The growth share Matrix of Ansoff, 2017)
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 Market penetration: This growth strategy stated about a company where association will
going to find out the new customers or sell their existing products to existing market
world with a motive to gain maximum market share. This process require more and more
fund need to get invested on advertisement and selling process. For increasing the
demand, promotional campaign have to get launched so that appropriate market share get
determine properly. Whenever a business will lead to use Ansoff matrix especially
market penetration strategy they have a clear aim which is gaining maximum market
share (MacLeod, 2013). Zirra wants to grab more growth opportunities by targeting
existing users or identify new users into existing market world. This facilitate them an
option to bring many new changes into their business process. For considering this,
business have to use digital technology which support them in order to reach new users. Market development: Whenever business want to grow, a major thing which comes into
mind is expansion of area. It is a duty of managers to expand their area of working by
developing an activities into new market world. This facilitate them an option to reach
and maximise their profitability properly (Moseley, 2013). This also lead and incur more
and more cost on their expansion because existing offerings and new market world
require more fund to get invested. Zirra only can attain growth through introducing
business at new level or at new market world by increase in number of services which
provided by them. Currently they are dealing in advisory framework where appropriate
suggestion get provided to investors regarding investment into many small business
associations. When they are going to incorporate business at vast level then they have to
divide various market segments and choose one of the best which require more and more
enhancement and development. Out of various segmentations, choose best one and then
positioning their services. Along with this, they have to merge operations with other
consultant as well whom are establish brands over at such market (Schetke, Haase and
Kötter, 2012). This enables them in dealing in an appropriate and effective manner
through which maximum target get attain. Product development:When the growth term arise in relation with business,
management tries to create and produce more quality products and services. Product
development stated as the process in which business lead to create more and more new
products and services for existing market world so that they become able to make their
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users more satisfied. This option is best for the Zirra in which they have an option to
implement digital technology into business and facilitate an option of arranging fund as
well (Todes, 2012). Currently they are working as a link between small start up's and
investors but offerings get created more by arranging fund at their own end as well.
 Diversification: Another major thing which can implement by Zirra is to create new
offerings at new market world. For this relation, they can work as a venture capitalist
under which they are able to arrange fund for many small business start ups. This
facilitate them an option to make business operations more effectively as well as gain
heavy return as well from such potential start up's.
Diversification is a best option which need to get implemented by Zirra in their operations. This
enable them in create new offerings into market at new market place as well (Valler, Phelps and
Wood, 2012). Through this, they are going to conduct own analysis under which potential of
many firms get underpin whom have ability to generate heavy return in future context. This
option is consider as best one for reaching to wide number of clients.
TASK 2
P3 Potential sources of funding with each one benefits and drawbacks
Growth is a major concern for every business and there are several risk are also
associated with it as well. Thus, organisation require fund for making their business expansion in
other areas as well. Hence, management have to identify all potential sources of funding which
are helpful and make them capable in order to arrange some money (van Assche and Beunen,
2013). But with each and every potential source of fund, several limitations and benefits are also
underpin properly:
 Equity: Growth and expansion require huge amount of capital in its implementation.
One of a potential source of arranging fund is equity which have to take in account
by management. For this context, association have to issue share at market place
through which equity fund get arranged. This facilitate them an option to arrange
fund from right sources as well as dilution is high.
1. Advantage: One of an advantage of equity funding is no repayment of excess
payment of money. Along with there is no interest get charged on taking money
which facilitate them an option to make things correct and less obligations.
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2. Limitations: Whenever business entertain outside environment people their control
get diluted. Thus, certain amount of power get lose in order to take management
decisions.
 Loan: Another source of finance is loan which get managed through financial
institutions and banks. Hence, these are major source of finance whom facilitate an
appropriate option for taking money and pay back the amount with interest charged
on it as well. The fund arranging option is easy which enable them in make things
correct in nature and organisation become able to manage cash inflow in suitable
time manner as well (Ward, 2016).
1. Advantages: It is easy to borrow large sum of money so that vast money get arranged
in an effective manner.
2. Limitations: One of a major drawback is charging high interest by banks which
restrict an individual to get fund.
 Family and friends: A major source from where more and more capital get arranged
is family and friends. Many small concerns are using this approach because they do
not have right to issue shares at market or any other relevant way to arrange fund.
Hence, it also have several limitations and advantages which have to take in account:
1. Benefit: It is easy to arrange fund from family and friends because an individual is
easy to reach such number of personnel in an appropriate manner (Wu, 2015).
2. Drawback: Chances of conflicts between each other is high at such course of time
when repayment will not take place properly.
Zirra can use one of the source of fund which enable them to arrange appropriate amount of
money for executing business at wide level. From out of them equity is a best source of
arranging money where they are able to issue shares at market world. Current situation of an
organisation stated that they are in absolute position where they easily get application for shares.
Initial public offerings support them in arrange fund for making business expand at such vast
level (Wynn, 2017). Managers have to take negative factors and limitations in account properly
so that they become able to prepare appropriate strategies in order to facilitate the planning for
growth.
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TASK 3
P4 Formulation of business plan for growth with financial and strategic objectives of scaling up
In a business process, plan is a vital element which is made up of legal
statement towards the ways by which aims and objectives can be obtained
in positive manner. For doing so, it requires data about company and its
background so that operations can be executed in ease manner. For the
effective movement it is required to plan for every task and activity so that
paths can be cleared from gaps. Due to dynamic nature of market, business
gets affected in positive and negative manner so that growth and success
can be achieved along with market experience. There are various other
motives like attraction of finance, team members and management process
(ZHANG, ZHAO and CHEN, 2013). For sustaining the competitive advantages
within target market, marketing managers of Zirra has created an effective
plan for marketing. Main motive of this marketing plan is to give boost to
the modification of existing products so that large amount of customers can
be attracted and gets satisfied.
 Institution's Introduction: Zirra is one of the famous company who
was established in 2014. This company mainly provides the investors
along with tools to the other companies regarding investment. In
simple words, it basically takes an unbiased stand between start ups
and their potential investors and provides clear and cut facts so that
investors can know the actual background of the company before
investing capital. It has successfully grabbed large market share and
there many clients associated with them. Their turnover is about 2.3
million dollars and for future growth, it is adopting efficient marketing
strategies fro reaching out target market and potential customers.
 Aims and Objectives: Main purpose of the company is to become
successful and lead the market as competitive leader. The products
and services are mainly providing deep details about the company in
which investors will be investing. This also enables them to gain the
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proper knowledge about investors and can link them to the company
who needs to investors for a major project. Apart from that, another
goal which can be considered as major and that is benefit the social
and economical factors along with their goals and objectives so that
society can be developed (Ziari and et. al., 2012). Motto of the company is
to provide best and true services to the customers so that long lasting
relationship can be created along with maximum satisfaction level.
 SWOT Synthesis:
STRENGTH
 More customers can be acquired in ease
manner along with cheap prices and
quality services.
 According to the needs of customers, it
provides deep details about the
company or investor and it helps them
to gain knowledge which might be of
use in future.
 It saves money and time of the
customers by providing them vital data
about other companies. Being a small process, it is cost
effective in nature and in regard of
promotion as well.
WEAKNESSES
 Methodologies which are utilised by the
company may sometimes not be
effective and able to extract out the best
data which is required.
 Since this company has been
established in 2014, it does not have
much experience and highly skilled
employees and this may arise some
issues.
OPPORTUNITIES
 More employees can be hired as this
company is new and growing due to its
connectivity to digital world as well.
 In order to enhance the profitability,
reach of brand can be improved.
THREATS
 If the targets are not being attained
properly then it may back fire and may
affect the goodwill of the company.
 Large amount of competitors can lead
to high competition.
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 Storing the confidential data about
other company and making it more
secure. Developing countries can be targetted
like India in order to acquire large
amount of market share.
 Awareness is highly required due to
changing trend in the marketplace.
 Maintaining large amount of data is still
a question for the company.
 Budget: Each and every company has to make effective marketing
budget so it can be decided that how the fund can be spend. Below is
described marketing budget of Zirra:
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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Above given image is indicating cash inflows and outflows of organisation. From the above
Figures, it is clear that company has adequate cash for clear its liabilities and debts. At the end of
the year company has £ 1022003, 200354 and 238503 at the year ending 2015, 2016 and 2017
respectively. Further, estimated three-year income of company is £ 720001.
 Applying of Strategies: Zirra is producing and following new development theories of
services so that they can get leading position in competitive marketplace. Strategies can
be developed after effective implementation of theories into plan.
 Monitoring and Controlling: In the last stage, plan is being applied so that optimum
allocation of resources can be observed and after applying managers needs to regulate
them in order to modify or develop.
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TASK 4
P5 Exit and succession option for business with its benefits and drawbacks
Time and energy needs to be devoted by the business owner for making a successful
business plan. This enables owner to decide that after him\her who will take the position of
handling down business operations. Small business often takes time to implement the blue print
of the plans and be successful as these are the long term plans and takes much more time
specially in small process. Options which are stated below: Options: It is necessary for the business owner to look out for all the available options so
that best of them can be selected and strategies can be made onto them. This will enable
owner to have clear vision about the pros and cons of the operations. Major drawback is
that person to whom responsibilities are transferred may not be effective to handle them
and run in appropriate manner. Candidates: Identifying the candidates who are deserving and have set of skills and
knowledge and train them so that whenever needed can take over the business. If the
owner gets retired then the business can be transferred to the son or the grandson or
someone relative, however if the new owner is not of legal age then till that tenure
someone experienced can be caretaker of the business. This has advantage that till the
legal age business would not get affected and experienced person can expand the
business from his knowledge (Beatley, 2014). Disadvantage can be said as individual
who is tackling operations may not that much effective as it is expected or needs to be.
 Evaluation: progress needs to be checked on regular basis by the owner in operations.
Business owner can choose another candidate if the present candidate is not performing
in appropriate manner. It is has major benefit that business will not go in wrong hand for
long period of time and it has higher chances of prosperity whereas major drawback is
that while changing candidates training and time will be consumed along with the cost.
CONCLUSION
It get concludes from the report that planning is not a easy task and it require
management to select appropriate personnel whom have better knowledge and skills to estimate
the future perspective. For growth, expert advise is essential and hence business become able to
perform their duty at market world in an appropriate manner. For making the perfect plan,
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business have to consider all key considerations of growth in account and use Ansoff matrix as
well for relating the business with development. Along with this, determine the potential source
of funding as well. There are various types of sources are identify whom arrange money for an
organisation in order to execute their task properly. Managers have to determine the limitations
and advantages properly for taking beneficial decision regarding to funding. Moreover,
formulation of a business plan enable an organisation to make their activities appropriate and
effective in nature. Hence, from variety of options, management have to choose the best one
which is helpful for planning in growth and development of business.
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