Strategic Analysis and Growth Plan for Chris Lewis Fire & Security UK

This report analyzes growth opportunities for Chris Lewis Fire and Security, a UK-based fire and security solutions provider. It uses Porter's generic strategies (cost leadership, differentiation, focus) and PESTLE analysis to assess the external environment. The Ansoff Matrix is applied to evaluate growth options like market penetration, product development, market development, and diversification, suggesting diversification as a viable strategy. Potential funding sources, including internal and external options like bank loans, are discussed along with their benefits and drawbacks. A business plan for growth is outlined, focusing on diversification and securing investments, followed by a brief discussion of exit or succession plans for small businesses. The report concludes that strategic planning is crucial for the sustainable growth of Chris Lewis Fire and Security.

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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key Consideration for the Evaluation of Growth Opportunities............................................3
Applying Ansoff's Growth Vector Matrix for Evaluating the Opportunities for Growth......5
Potential Sources of Funding along with Benefits and Drawbacks.......................................7
Business Plan for The Growth and Securing Investments.....................................................9
Exit or Succession Plans for Small Businesses....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth is an activity which is related to strategic businesses. It helps the
owners of the business to plan and track the growth of revenues. A business will not fail or
succeed based on information inculcated in growth plan (Bell and Bearden, 2014). The growth
plan will only help the small medium enterprises to become more successful using a focused
planning for growth. A business plan helps the small business owners as a guide which provide
detailed step to step plan for how the company can achieve the desired goals and objectives. The
company taken under consideration for this report is “Chris Lewis Fire and Security”. Chris
Lewis Fire and Security is leader in providing fire and security solutions in an innovative way for
domestic and commercial premises in Oxford, West London and surrounding areas in UK. The
purpose of the report is to analyse the growth opportunities for the organisation using the Porter's
generic strategies, PESTLE analysis, Ansoff's growth matrix. A business plan for growth has
also been prepared for the Lewis Fire and Security system as a growth option.
MAIN BODY
Key Consideration for the Evaluation of Growth Opportunities
A competitive advantage is a favourable condition wherein an organisation can make
their products or services superior to all of the other choices available to the customers. Lewis
Fire & Security can use the Porter's Generic Strategies to attain the competitive advantage
because these strategies can be applicable to products or services in all the industries of all the
sizes. These generic strategies can create a opportunities for growth in the organisation.
Porter's Generic Competitive Strategies
These strategies states that there are two types of competitive advantage combined with
the competitive scope of activities for which the companies can aim to achieve. The
differentiation and cost leadership strategies seeks advantages in a broad range of market and
differentiation focus and cost focus strategies are adopted in narrow market (Biech, 2019). The
different generic strategies that Lewis Fire & Security can adopt to grow and gain the
competitive advantages are mentioned below:
1. Cost Leadership Strategy : In a Cost Leadership strategy, organisation aims to become
the lowest cost producer who targets the broad market. This implies supplying the
products in a more cost effective way than that of competitors and also being consistent

with the quality of their products and services. If Lewis Fire & Security adopts cost
leadership strategy then they will be able to act as an effective entry barrier for other
potential entrants who will not be able to offer the fire and security products at a much
lower price.
2. Differentiation Strategy : A differentiation strategy refers to the development of product
or service that would offer the unique set of attributes that are valued by the customers.
Under this strategy, company selects one or more attributes that many buyers in the
industry perceive as important and try to position themselves uniquely in order to meet
those needs (Burns and Dewhurst, 2016). For this differentiation company can even
charge premium price from their customers which will also help them in creating the
perception in customer's mind that their product has higher value that other competing
products. If Lewis Fire and Security aims to invest in various IT system and sophisticated
tools to integrate fire and security installations uniquely then they will be able to charge
premium prices for their IP based products from the customers.
3. Cost Focus Strategy: Companies using the focus strategy, concentrates on targeting a
niche market by carefully understanding the unique needs of customers within it. If Lewis
Fire and Security will use this strategy, then they will be able to generate more capital for
their firm for future growth and expansion.
4. Differentiation Focus Strategy : A cost differentiation strategy refers to offering of
differentiated product or a service to a particular segment. A narrow market is targeted
because it might be unattractive to outside that group. If Lewis Fire and Security system
focuses on unique offerings to outperform from its rivals in a small segment, then they
will be able to gain competitive advantage in the particular segment.
PESTEL Analysis to Analyse the External Environment
PESTEL Analysis is a framework for analysing and monitoring the macro factors which
impacts the working of the organisation. Organisations that monitor and respond to the changes
in the macro environment successfully will be able to differentiate them from the competition
and create a competitive advantage. It is a strategic tool for understanding market growth or
decline, business position, potentials and direction for operations. The elements of PESTLE
analysis includes:

 Political Factors : Taxation policies, monetary policies, political stability and terms of
government are the part of political environment. UK is one of the successful nation in
terms of rule of law, control of corruption, regulatory quality and government
effectiveness which means that Lewis Fire & Security Systems can expand its business in
more towns other than West London, Oxford etc. in UK.
 Economic Factors : UK has a favourable business environment in terms of availability
of skilled professionals (Hawkins, 2014). They are also strongest in social welfare and
standard of living. Therefore, Lewis Fire and Security System had an opportunity to
make investment in IT system to innovate fire and security equipment of very highest
standard and quality.
 Social Factors : All the cultural factors, lifestyle, education system are covered in the
social environment. UK has high quality educational and healthcare infrastructures. The
public expenditure on healthcare services are quite high in UK so Lewis Fire and Security
system can make effort to increase the home automation technology for houses and
offices security.
 Technological Factors : These factors include R & D, innovation in technology and
intellectual property rights etc. UK is at forefront of innovation and R&D and they had a
legislation which maintains the register of patents, trademarks and designs. People in UK
are technology focused so Lewis Fire and Security System may focus on more innovative
techniques to make their products and services efficient from their competitors in terms
of technology.
Applying Ansoff's Growth Vector Matrix for Evaluating the Opportunities for Growth
The Ansoff Matrix is a strategic planning tool for the organisations to move the business
beyond the usual. This matrix suggests that whether business attempts to grow depending on its
new products or existing products in new markets or existing markets. The four quadrants of
Ansoff matrix helps to figure out that which of the four strategies should company adopts to
grow their businesses successfully (Lussier and Sonfield, 2015). They are discussed below:

Source: Ansoff Matrix, 2019.
1. Market Penetration : It is a strategy in which the focus of the business organisation is
on selling the existing products or services into the existing markets. This strategy is
considered to be least risky as it leverages many of the firms existing resources. The main
aim of Market Penetration strategy is to increase the market share in the existing markets.
For example: Lewis Fire and Security System can make reduction in the prices for CCTV
Cameras to encourage the purchases in the existing markets.
2. Product Development : Product Development strategy refers to only those firms which
have a good market share in an existing market and hence need to introduce new products
for the expansion. It is essential when the company has a good customer base and they
knows that their existing products has reached to the saturation stage which arises a need
for developing a new product into the existing target market. For example: Lewis Fire
and Security System can come up with fall detection monitor with sensors which can
detect when a person is imbalanced or in danger for their existing markets at West
London, Oxford etc.
3. Market Development : Market Development is a strategy where the businesses aim to
sell their existing products into the new markets. This strategy is considered to be the
most risky strategy as their main focus is to target the new markets with their existing
offerings. Being a small medium enterprise, the strategy of market development means
expanding the current market to some other market where there is no product to compete
Illustration 1: Ansoff Matrix

currently. For Example: Lewis Fire and Security System can sell their CCTV cameras,
fire protection system and intruder alarms in other parts of UK other than Oxford and
West London.
4. Diversification : Diversification is a strategy where the business firms markets their new
products in the new markets. This strategy is considered to be the riskier as business
operations are moving into the markets in which they had little or no experience. A
strategy of diversification is highly rewarding in the case when there is a correct balance
between the risk and reward. Diversification can be a reasonable choice when high risk is
compensated with high return. For instance: Lewis Fire and Security System launch a fall
detection monitor with sensors in the other cities of UK where they do not operate
currently.
Suggestion: On the basis of above mentioned strategies, Lewis Fire and Security system
can select diversification strategy as they do not have operations in various parts of UK and with
the adoption of this strategy the company can attain more technological capability in order to
capture the large market. This strategy can maximise the returns by investing in different areas.
Potential Sources of Funding along with Benefits and Drawbacks
A business can raise funds from the various kinds of sources. Each source of funding has
its unique characteristics which must be properly understood so that the best available source of
raising funds can be identified (Murdoch and Abram, 2017). There is no single source of fund for
all the organisations. Depending on the nature of organisation, type of strategy and risk
associated the choice may be made about the sources to be used. A brief explanation about the
various sources of fund along with their merits and demerits gives an insight of sources of funds
which the company can use to diversify their businesses in new markets.
 Internal Sources of Funding : Internal sources of funds are the sources of funds which
are generated by the businesses itself in the normal course of action. These capital are
generated internally by the business which involves retained earnings, sale of assets and
reduction in working capital etc. These are uncertain sources of funds as profits of
business remains fluctuating. Lewis Fire and Security can use the profits earned from the
existing markets to develop the new products in new areas. The internal sources of
funding help in maintaining the autonomy and control within the businesses. Also, the

internal sources may increase the risk of bankruptcy for Lewis Fire and Security.
(McCarthy, 2016). External Sources of Funding : The arrangement of funds from outside the business
organisation is known as external sources of finance. These external sources help the firm
to use internal sources of finance for another purposes. External funding can be used
when company wants to make purchase of large equipment which requires large amount
of funds because company cannot afford. There are various kinds of external sources of
funding which includes:
1. Bank Loans : The amount of money borrowed for a set duration within an agreed
repayment schedule. The repayment amount is dependent on the size and duration
of the loan and also the rate of interest. Companies need to qualify the minimum
criteria to get the loan from the bank. The rate of interest charged by banks are
dependent on the various factors like characteristics of the firm and the level of
interest rate prevailing in the economy. Lewis Fire and Security system can use the
bank loans as a source of funding because a loan is sanctioned against a security
and banks keep the information confidential.
Advantages Disadvantages
 The information supplied by Lewis Fire
and Security to banks in lieu of loan are
kept confidential.
 It is a flexible source of fund as the
Lewis Fire and Security can increase
the amount of loan accordingly and can
also repay the amount in advance when
funds are not needed.
 Interest rates for small and medium
enterprises are quite high which
becomes difficult for Lewis Fire and
Security to take loans from banks (Rao,
2014).
 It might be difficult for the company to
offer collateral or security in assets to
the bank against the loan.
 The processing fee that the banks
charged is also high which increases the
cost of loan for Lewis Fire and
Security.

2. Bank Overdraft : Bank overdraft occurs when bank allows the businesses to
withdraw the money that is greater than the available balance in the account. It is a
type of revolving loan in which interest is charged only on the overdrawn money
from the bank's current account. The interest rate is based on the bank base rate
(Sell, 2017). This overdraft facility can help the Lewis Fire and Security to obtain
the short term funds from the bank which is repayable on demand. The company
can obtain the extra funds in emergency while tapping the new markets.
Advantages Disadvantages
 Overdraft facility allows Lewis Fire &
Security to take more money than
actual available money in the current
account.
 The interest is charged only on the
overdrawn money which indicates that
interest cost is less than the interest on
normal loan.
 The overdraft facility can turn out to be
expensive when used for long duration
as interest is charged daily.
 As a short term financial facility, the
overdrawn money can be recalled at
short notice period which can leave the
Chris Fire and Security in the financial
crisis.
Business Plan for The Growth and Securing Investments
A business plan is a written document in a sequence which sets the objectives and plans
of the business to provide sufficient information about a new business to convince the outsiders
to invest in the business. Business plan serves as a tool for managing the business which helps to
determine the right way of managing the business (Yuksekdag, 2018).
Company Description: Chris Lewis Fire & Security is a market leader in offering
innovative solutions in fire and security installations in domestic and commercial premises.
Lewis Fire & Security has its operations in Oxfordshire, Berkshire, West London and
Buckinghamshire. They offer variety of products to their customers which include CCTV
system, fire protection, intruder alarms and various access control tools in the form of electric
gates to rising bollards. The company also provides expert advice to their customers in order to
provide excellent customer services to them.

Executive Summary: Chris Lewis Fire & Security is launching a fall detection monitor
in the new areas of UK where they do not have their operations yet. Fall detection monitor is a
device with a set of sensors which can detect the body functions. This device can issue the
warning when a person having these monitors is in danger of passing out. A fall detection
monitor is beneficial for the people having the medical issues or older adults who are living at
home with a need of monitoring.
Mission : The mission of Chris Lewis Fire and Security is to come up with a fall
detection monitor in the new markets of UK.
Vision: Their vision is to become the leading company in offering fire and security
system and to exceed customer’s expectations in terms of quality of service and standard of
workmanship.
Objectives: The objective of Lewis Fire and Security is:
 To increase the revenue by 12% from the previous month.
 To increase the overall sales of Lewis Fire & Security system by 10% by introducing fall
detection monitor in the new markets.
 To capture all the markets of UK.
 To launch wide range of products for security and fire protection to capture the leading
position in all markets of UK.
SWOT Analysis :
Strengths
 They are committed to high quality
products and services.
 Their employees are engineers who are
qualified within the Electro technical
Certification scheme.
 Providing expert advice to every
customer to meet their needs in order to
maximise their satisfaction level.
Weaknesses
 Limited operations across the world.
 High manufacturing costs
 Their operations harm the environment.
Opportunities
 Lewis Fire and Security can expand its
market all over the UK other than West
Threats
 Diversification in new untapped

London and Oxford.
 Minimising the manufacturing and
installation cost can be an opportunity
for Lewis Fire and Security System.
markets inculcates higher risk.
 Rapid innovation in technology can be
a big threat for the Lewis fire and
security systems.
Financial Information: The success of any business organisation depends on the
financial performance which helps to provide the relevant and informed decisions to the
businesses. It is the financial information which is used as a basis to make decision regarding the
investment in order to expand its operations. On the basis of information gathered, Lewis Fire
and Security can use bank loans as a source of funding because they had a good credit rating
therefore bank will easily grant them a loan at good interest rates. Bank also keeps the
information of their clients safe and confidential. Hence, Bank loans can be the potential source
of funding for Lewis Fire and Security System.
Total estimated Budget: The estimated budget for launching the fall detection monitor
effectively is mentioned below;
Particulars 31/12/17 (£) 31/12/18 (£) 31/12/19 (£)
Implementing technology cost 15000 - 2000
Promotional expense 10000 9000 7000
Advertisement expense 8000 7600 4800
Catalogues 1000 3000 2000
Training charges 7800 6700 5600
Total Cost 41800 26300 21400

Cash Flow Statement:
Exit or Succession Plans for Small Businesses
Lewis Fire & Security System is number one of the provider of fire and security solutions
in various parts of UK. They work towards keeping the lives of customers safe whether through
CCTV, an intruder alarms or various fire protection tools. They constantly work harder in order
to exceed the expectations of the customers.
Succession Plans: Succession Plans refers to the process of passing the control of the
business to others. It is necessary for every business owner to establish a sound plan for the
future which would be useful when any unexpected event takes place (Business Exit and
Succession Planning, 2018). The succession plan may include:
1. Merger and Acquisition : The combining of businesses is called as mergers and acquisitions.
When two businesses combine together to form one business is called Merger and when one
business is taken over by other business is called acquisition.
Advantages Disadvantages
 Diversification can compensate the loss  Mergers and Acquisitions will increase