Strategic Growth Planning & Funding Options for Checkout.Com

This report provides a comprehensive analysis of growth planning strategies for Checkout.Com, a payment services company, focusing on evaluating growth opportunities, potential funding sources, and exit or succession options. It utilizes tools like PESTLE analysis, Porter's generic strategies, Ansoff's growth matrix, and the BCG matrix to assess market conditions and strategic options for expansion, particularly in the Australian market. The report also includes a detailed business plan for securing investment and outlines strategic objectives and frameworks for achieving growth. Furthermore, it evaluates different exit or succession options for small businesses, weighing the benefits and drawbacks of each to provide recommendations for Checkout.Com's future strategic direction. The aim is to provide actionable insights for Checkout.Com to achieve its business objectives and navigate market complexities effectively, with a focus on sustainable growth and competitive advantage.

Unit 42 Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analysing key considerations for evaluating growth opportunities..................................3
P2 Ansoff’s growth vector matrix..........................................................................................5
M1& D1 Critically evaluate specific options and pathways for growth................................9
TASK 2..........................................................................................................................................10
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.....................................................................................................10
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context...........................................................12
TASK 3..........................................................................................................................................13
P4 and D3: Business plan.....................................................................................................13
M3 Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving objective
..............................................................................................................................................17
TASK 4..........................................................................................................................................19
P5 and D4: Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option. ...................................................................................................19
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations........................................................................20
CONCLUSION .............................................................................................................................21
REFERENCES .............................................................................................................................22

INTRODUCTION
Growth planning is defined as those strategic tools that can be used by the businesses so
that to attain higher assistance for inhaling growth options in prominent manner. Growth
planning is highly essential as with the help of appropriate growth business expansion can be
made easier. These aspects are highly essential for business as by the help of the same
appropriate results can be ascertained and organisational success can be accomplished in short
range of time (Papageorgiou and et. al., 2019). In current time for each and every business this is
imperative that they work for attaining competitive advantage so growth planning is one of the
significant movement which can be exerted by business in sufficient manner. These are the
activities which may align the business to grab options for inhaling higher sustainability for the
business. This report is prepared in order to understand various aspects of growth planning in the
respect of Checkout.Com which is company engaged in providing payment services to their
customers. The company is associated with providing economic services to their customer which
are high in quality and use. Checkout.Com is having prominent market image which leads them
to grab higher growth opportunities in shorter period of time. This report is providing various
aspects of growth planning and a business plan which can be used by Checkout.Com in order to
attain their business objectives and market complexities in direct manner.
TASK 1
P1 Analysing key considerations for evaluating growth opportunities
Profit is regarded as one of the essential aspect for which a business is being run and
implementing various steps as well. For earning profit and dealing with business objectives this
is imperative for the business that they analyse and recognise market opportunities in such a way
that the same can be aligned with business objectives in direct manner. Besides this for inhaling
succession opportunities businesses are required to acquire such opportunities through which
they can sustain in the market with higher ratio of prominence (Mazzarol and Reboud, 2020).
For Checkout.Com the business manager is examining various growth opportunities so that they
can retain in the market for longer period of time and acknowledge efforts exerted by marketer in
primal manner. In this aspect manager is using various options so that to inhale success and
market image as well. Besides this these growth opportunities may be helpful in enhancing
business survival so that higher sustainability can be attained.

PESTLE analysis: -
This is an analysis which is helpful in recognising macro environmental aspects which
may hamper working of business in clear manner. Checkout.Com is planning to expand in the
markets of Australia so this is imperative that they examine situations existed within Australia in
order to recognise business opportunities and threats pertained to their business. For this
PESTLE analysis is elaborated as under:
Political: These are defined as the factors which are associated with rules and regulations
propounded by government due to which stability within national situation can be seen.
Australia is one of the most stable and successful country so there are various opportunities
existed for Checkout.Com so as to expand their market and earn higher profitability. For
Checkout.Com Australia is creating higher opportunities of sustainability and market growth
(Ali and Mehreen, 2019).
Economical: These factors are linked with fluctuation in foreign rate, rate of inflation and
interest rate existed within a country. Economic condition of Australia is stable and
providing various opportunities to every business to grow and sustain. This is the major
reason that Checkout.Com may attain higher opportunities to deal with expanding their
business in market segments of Australia. In this reference Checkout.Com is taking higher
assistance to expand their market so that they can generate higher sales.
Social: These are categorised as taste and preferences of customers in regard to product and
service offered by the organisation. In this regard people of Australia are highly educated
which is an advantage for Checkout.Com that they can place their services within market in
prominent manner.
Technological: These factors are associated with using latest and emerging technology within
business so that market trends can be exerted. Checkout.Com is a company associated with
IT so managing technology is imperative for them and by inhaling higher technological
aspects within business the company can deal with attaining success in easy manner.
Legal: These factors are related with application of legal frameworks and law application in
order to avoid any legal proceedings. In the context of Checkout.Com the company is taking
care of all the laws and legal application so as to minimise any redundancy.

Environmental: These factors are associated with such practices those are not providing any
harm to environment. Under this aspect Checkout.Com is managing their record in digital
manner.
Porter's generic strategy
This strategy is helping a business to attain competitive edge so that rivals can be treated
in better way. In the context of Checkout.Com this model is elaborated as under:
Cost leadership: This is the strategy which is used by business in order to provide high
quality product and services to their customer in prompt manner. Under this strategy affordable
prices so that competitive rivalry can be attained. In the context of Checkout.Com by using this
strategy they can enhance their market share and growth as well.
Differentiation: This is the strategy which is focusing over satisfying needs of customers
by rendering innovative products and services. In this context Checkout.Com is trying to provide
distinct services to their customer so that their mission of enhancing customer base can be
accomplished.
Cost focus: Under this strategy the businesses are trying to minimise their cost in best
possible manner in order to attain competitive edge. For instance, this strategy can be used by
Checkout.Com in order to attract large pool of customers.
Differentiation focus: Under this business are focused over providing distinctiveness to
their services in order to compete with their rivals.
Checkout.Com is planning to expand their business in the markets of Australia and in
this manner they are willing to adopt cost leadership strategy so that to deal with their rivals in
optimal manner.
P2 Ansoff’s growth vector matrix
Ansoff growth matrix is highly assisting business in order to enhance revenues in a way
that profit can be retained and objectives related to business can be attained (Fusarelli, Fusarelli
and Riddick, 2018). This is regarded as plan for strategic development under this Checkout.Com
can enhance their market size and profit as well. In the context of Checkout.Com Ansoff growth
matrix is elaborated as under:

(Source: Ansoff Growth Matrix, 2019)
Market penetration: This is a market expansion strategy which can be used by business
in order to intensify their market size and customer. Under this strategy existing products are
offered to existing customers by working upon their prices. This is highly advantageous for
Checkout.Com as with the help of market development strategy they can fulfil market demands
in effective manner in order to deal with market supply as well.
Market development: Under this market expansion strategy existing product can be
launched to new market segment so that to enhance market capture (Peters-Hawkins, Reed and
Kingsberry, 2018). Within this strategy by undertaking existing product new market can be
explored due to which new market segments can be inhaled. By using market development
strategy Checkout.Com can retain in the market for longer period of time due to which customer
capture can be enhanced.
Product development: Under this strategy a new product is proposed to develop within
existing market in order to grab attention of various customers and to enhance customer base in
direct manner. For Checkout.Com this strategy can be used by them so that to inhale higher
success in competitive market and to develop areas of succession. This is an appropriate strategy
to deal with market competition as emerging markets can be unleashed which may be helpful for
business to reach out to their ultimate objective.
Diversification: This is the riskiest market expansion strategy in which business can
diversify range of their product or services. This method needs high investment due to which this
involves high risk. In the context of Checkout.Com this strategy may provide them higher

opportunities to deal with market competition but at the same time this may hamper goodwill of
the organisation when business gets failed.
From the above analysis this can be concluded that for Checkout.Com market
development could be the best and suitable strategy as with the help of market development they
can unleash new market size in order to meet business objectives (Ballaro and Polk, 2017). With
the help of market development strategy, they can attain higher competitive edge which could
lead the company to inhale sustainability and market growth as well. Besides this market
development is one of the major development or expansion plan which is least risky as already
an established product is going to be launched in another market where prominence for product
is already existed.
Boston Consultancy Group Matrix
BCG matrix is known as a mixture of product portfolio which is used as a strategic intent
and providing planning opportunities to business so that growth options can be examined in such
a way that the same can be aligned with business objectives. For making proper investment
decision within business BCG matrix is used. This could lead the business in managing role of
acquiring fuller efficacy (Kepczynski and et. al., 2018). Besides this BCG matrix is useful for
managing all the products and services in such a manner that fuller capabilities can be used and
dealt in prominent manner. In the context of Checkout.Com BCG matrix is elaborated as under:
(Source: How to use the BCG matrix model, 2020)

Dogs: Under this dimension product with lowest market shares are included. For
enhancing market share this is imperative to use highly advanced and innovative advertising as
businesses do not focus on advertise their dog products. For example, in the context of
Checkout.Com their Anyavan payment services are associated with dog category.
Cash Cows: This category is helpful for the business to gain higher business insight and
profits so this could be highly beneficial to invest in this category. For example, ACE money
transfer system is one of the cash cow product for Checkout.Com as this service is providing safe
and reliable payment services to its users in appropriate manner.
Star: These product or service range are related with generation of huge cash in which
overall market segment can be enhanced. Checkout.Com is giving card processing system to
their customers in which flexible service are one of the major concern associated with these
services and the same is being fulfilled by Checkout.Com in prominent manner. These are the
services which are playing significant role in attaining higher profits for overall organisation.
Question Mark: These products or services are related with that segment of product
portfolio which have started to lose their markets share (Gurumurthy, 2018). This is the segment
in which future investments are required to be prepared by the organisation so that gap can be
bridged significantly. In the context of Checkout.Com insufficient payment services are regarded
as part of question mark services.
GE Matrix
This is the matrix which is being initiated by McKinsey which is a nine cell grid matrix used for
calculating effectiveness within industry and business units as well. This is regarded as
intensified version of BCG matrix and under this managers of the business are totally dedicated
to examine attractiveness within industry. For Checkout.Com this matrix is holding higher
significance as for them in order to grow this is highly necessary that they analyse industry
effectiveness so that any strategy can be placed in prominent manner. For Checkout.Com this
matrix is elaborated as under:
Invest/ grow: This is termed as the most effective and prominent unit of business which is
having higher opportunities within marketplace to grow and sustain. In the context of
Checkout.Com the company is wholly focused on enhancing their payment gateways and
payments services so that they can receive higher emphasis of their customers. This is
helpful in dealing with competitors and grab market position as well.

Hold/ selective: This cell in GE matrix is related with product and services lying with question
mark. These are having low market share but high opportunities for growth. This is the grid
in which attractiveness of industry is moderate which is the major reason that various
modifications can be inserted (Chen, Yu and Jin, 2019). In the context of Checkout.Com
under question mark products various innovation and modifications due to which market
share can be enhanced.
Divest/ harvest: Under this grid business performance and industry unattractiveness can be
associated. In this products and services of dog categories are added and as these products
are not giving any profits so this is advised that production of these products and services
should be stopped and another type of segment should be explored so that to intensifies in
early manner.
M1& D1 Critically evaluate specific options and pathways for growth
There are numerous risks associated with every expansion option for example for market
development expansion plan the major risk is associated of losing existing customers due to
which customer range can be minimised. Besides this for product development strategy risk is
associated of higher cost and minimised profits which could be riskier for the business to cop up
with the same. On the other hand, diversification is the most dangerous strategy as this is
associated with loosing of market share. Although risk involved with market penetration is that
competitors can propose risky strategy which could swipe up business of others.
In this regard this can be concluded that market development is the most profitable
strategy for Checkout.Com as this could lead them to unleash other market segments in effective
way (Atwood, 2020). Besides this market development strategy could lead them for developing
strengths in such a way that they can sustain in the market for longer duration of time.

TASK 2
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
Sources of Finance
Business is an activity which produce and distribute goods and services to consumer for
attaining profit. Every business requires money for smooth functioning of organisation. The
capital brought by the owner is not sufficient to fulfil the financial needs of the company so they
look out for the new ways through which money can generate. There are two sources of finance;
Internal Source and External Source.
Internal Source-
Internal Source of finance refers to fund which is generated by the organisation internally
from sources like sales, loan advanced, collection of debtors and retained profit. There are
various internal sources of finance they are as follows-
Retained Profit-
Retained profit is the portion of business's profits that is not distributed among
shareholders as dividend but instead of it is reserved for reinvestment into the business. These
funds are used in paying off debt obligations and purchasing of fixed assets. Retained earnings is
mentioned under balance sheet at the end of each accounting period under shareholder’s equity
section.
Advantages of Retained Profit
 Convenient: Retained Earning is convenient source of finance. It doesn't require any
advertisement and prospectus to be issued. There is no legal formalities and expenses
involved for Checkout.Com
 Cheap: Retained Earning is cheap but not free as profit is reinvested back into the
business. This is an opportunity for the shareholders of Checkout. Comto leave the profit
and aim higher return on investment (Demo, 2014)
Disadvantages of Retained Earning
 Speculation- Large reserves in Checkout.Com may indulge the owner into speculation in
the prices of its shares. The owner can change the rate of dividend to create price changes
in their favour. Such fluctuation of prices may result in loss for shareholders, the director
can also use the funds for personal benefits.

 Low dividend- Retained profit reduces the current rate of the dividend, through which
the shareholders of Checkout.Com are dissatisfied as they don't get the expected rate of
dividend.
Sale of Assets- Sale of Asset is another internal source of finance. The company sells some or all
its actual assets whether tangible or intangible, the money generated by selling the asset is used
internally to fulfil the financial needs of the organisation. The sale of assets helps the company to
find which asset is useful and required (Stoyka and et. al., 2020).
Advantages of Sale of Assets-
 Short term and long term Finance- Sale of asset can work as a short term and long
term finance depends on what kind of assets have been sold. Selling a car meets short
term requirement whereas selling building, land fulfils long term requirements of
business operations of Checkout.Com.
 Screening of fixed assets- Selling of assets helps in regular screening of the fixed assets
for Checkout. Command finds assets which are no longer in use or obsolete.
Disadvantages of Sale of Asset-
 Asset sold before their useful life- It is a major disadvantage of sale of asset, when the
assets are sold before their useful life. There is a capital loss due to the assets being sold
at scrap value.
 Complex process- Asset sale is a complex process if there are many assets included in
sale. Every single asset title is transferred and new title is assigned to the new owner
which is a problem for Checkout.Com.
External Source-
External Sources of finance means that the fund arranged from outside the business. The
External sources of finance are equity, debentures, bank overdraft, trade credit, lasing, factoring,
etc. they are as follows-
Debt Financing
Through Debt Financing the money is raised by selling debt instruments to institutional
investors or individuals.
Advantages of Debt Financing-
 Tax Advantage- The amount paid in interest is tax deductible and it reduces net
obligations for Checkout.Com(Bogue, Collins and Troy, 2017).

 Retain Control: When business use debt financing for raising money, it allows the
owners to keep the ownership of the company. The owner has right to take decision.
Disadvantages of Debt Financing-
 Discipline: The organisation should have a financial discipline to make repayments on
appropriate time.
 Expensive: Debt Financing carries a higher rate of interest than the current market rate
for government securities. It invites the investors, but Checkout.Com have to offer a
competitive interest payment to get the best investors in offering.
Bank Overdraft
Bank Overdraft is the facility provided by the bank to its client for getting withdraw of
money from their accounts in excess of the current balance.
Advantages of Bank Overdraft-
 Flexibility- Bank overdraft has the advantage of flexibility, as the client can take money
at any time, any amount and even they can take for one or two days.
 Less interest cost: The interest is calculated on the amount of fund used, it allows a
greater saving in interest cost as compared to loan taken for fixed period.
Disadvantages of Bank Overdraft-
 Risk of Decrease in limit: Bank revisit the overdraft facility taken by the clients, as it
may run a risk of withdrawal of limits.
 Increase in rate of interest: The rate of interest in bank overdraft is higher than the
loans which may create difficulty in surviving for Checkout.Com.
Crowd funding
This is a type of source funding in which money can be obtained from larger number of
audience. Crowdfunding is helpful for running the business in appropriate manner and
specifically when a start-up is growing.
Advantages of crowdfunding
 It provides funding to many new ideas due to which Checkout.Com can introduce their
idea in market with high prominence.
 It centralizes and streamline fundraising efforts due to which business objectives can be
attained by Checkout.com.
Disadvantages of crowdfunding