Gekko Partners: Growth Analysis, Funding, and Exit Strategies Report

This report provides a comprehensive analysis of Gekko Partners, a UK-based small-scale marketing services company, focusing on its growth strategies and potential for expansion. The report begins with an evaluation of key considerations for analyzing growth opportunities, including competitive analysis and Porter's Generic Strategies (cost leadership, differentiation, cost focus, and differentiation focus), with a recommendation for differentiation. It then presents a PEST analysis (Political, Economic, Social, and Technological factors) to assess the external environment. The Ansoff growth matrix (market penetration, product development, market development, and diversification) is discussed, with market penetration identified as the most feasible strategy. Furthermore, the report explores potential funding sources for small businesses, including bank loans, personal savings, and funding from friends and family, outlining their advantages and disadvantages. Finally, the report addresses the importance of a business plan and considers exit or succession options for Gekko Partners, offering valuable insights for sustainable business growth and strategic planning.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluate key consideration for analysing growth opportunities for organisation.................1
P2 Ansoff growth Matrix............................................................................................................3
TASK 2............................................................................................................................................5
P3 Feasible sources of funding for small businesses..................................................................5
TASK 3............................................................................................................................................6
P4 Appropriate business plan for company ...............................................................................6
TASK 4............................................................................................................................................9
P5 Determine exit or succession options for small scale company............................................9
Conclusion.....................................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business entities are formulated for the purpose of generating maximum revenue and grow
their business effectively at marketplace. For this growth, companies do take certain sort of
strategic actions and also conduct various analysis which leads to the reason of growth for them
in future (Barbour and Deakin, 2012). Under this aim, management team of business
organisations also contributes a lot in the growth by proving right guidance to the employees so
that they can work effectively towards the long term objectives of the company. The current
report is based on Gekko Partners a UK based small scale marketing services which offers its
services within the UK only. The report includes information on key consideration that is
concerned by the company in analysing its growth. Further, it explains Ansoff’s matrix which
includes different growth strategies through company can grow. Along with this, potential
sources of funding for small businesses, effective business plan and exit or succession strategies
for the considered company are described in appropriate manner.
TASK 1
P1 Evaluate key consideration for analysing growth opportunities for organisation
Every business entity operating within the confines of corporate world aims at attaining growth
and development in near future. This provides assistance to organisation in sustaining in market
place for a long period of time (Beatley, 2014). With respect to Gekko Partners, this entity also
intends to expand its operations within new locations by offering high quality marketing services
to people and attaining maximum satisfaction from them,.
Competitive analysis:
This can be referred to as the initiative taken up by entity to gain knowledge of the
strategic course of action adopted by rival firms. With respect to Gekko Partners, the
management of this entity has ascertained the resource, capability and competency of
establishment as follows:-
Resource: The primary resource of the respective enterprise is its competent and
knowledgeable workforce that is capable of performing as per the requirements of customers as
well as company.
Capabilities: Gekko Partners is capable of providing high quality and competent
marketing services to clients and gaining contentment from them (Chapin, 2012).
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Competencies: The competency of the respective entity is that it is renders effective
marketing services to clients or customers to inflate its market positioning.
As this establishment is effectively operating within the confines of England, it intends to
expand in new and emerging markets with a view to inflate its sales as well as profits. Effective
planning is required to be executed to carry out expansion (Denton, Forsyth and MacLennan,
2017). In this regard, there are various considerations that have to be taken into account by SMEs
such as Gekko Partners before entering into new location. These considerations are ascertained
by way of Porter’s Generic Strategies as follows:-
Porter's Generic Strategy
It is a strategic and analytical model that consists of a number of strategies which are
undertaken by a corporation. This helps to gain growth as well as competitive edge in market
place within short course of time. These strategies provide aid to small and micro business
organisations to raise their performance as well as develop a strong brand image in market
(Eddleston and et. al., 2013). The strategies devised by Porter within this framework are briefly
explained below:-
Cost leadership: It is a type of growth strategy which is aimed at provision of high
quality offerings to people by developing them at optimum cost. By making use of cost
leadership, Gekko Partners would be able to attain cost advantage through which it can exercise
control over its costs while simultaneously rendering high quality offerings to customers or
clients.
Differentiation: Hereby, a corporation gains competitive edge by offering innovative
commodities. Through this, the belief as well as trust of customers can be easily attained. By
making use of differentiation, Gekko Partners would be able to develop a sense of customer
loyalty and belonging towards the brand. With provision of wide range of marketing services, the
respective entity can accelerate its reputation as well as marketplace position (Galland, 2012).
Cost focus: Hereby, the primary focus of the entity is on niche markets and thereby
provision of commodities in such locations is at low pricing. Through the utilisation of cost
focus, Gekko Partners can duly meet the needs and wants of customers in desired manner.
Differentiation focus: This stresses upon creating an environment of creativity as well as
uniqueness amidst the corporation. With this strategy, Gekko Partners would be aiming at
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rendering new range of marketing services to people in order to gain their attention and satisfy
their requirements.
Out of the above discussed strategies of generic model, Gekko Partners will make use of
differentiation in order to gain a competitive edge over rivals present in market place, by
rendering unique and innovative offerings, catering to demands of people.
PEST Analysis
This is an analytical framework which gives an overview of the external environment
along with its impact on the respective organisation. In this relation, PEST analysis of Gekko
Partners is presented underneath:-
Political: This is regarded as an important and relevant macro environment factor which
demonstrates the extent to which governmental interference can be witnessed in relation to
activities of business (Grover, Bokalo and Greenway, 2014). The political state of England is
stable which presents opportunities to Gekko Partners to expand its scale of business operations.
Economical: It comprises of aspects associated with the economy of a nation, such as
inflation, growth rate, interest rates etc. The strong economic conditions of England offers
opportunity to Gekko Partners to come up with unique and innovative offerings and qualify for
subsidies and grants of government for SMEs that undergo innovation.
Social: The social factor constitutes the latest trends prevailing within population of a
nation. In association with this, Gekko Partners carry out market research at regular intervals and
come up with such marketing services which have the potential to duly meet the needs and
demands of public.
Technological: As technology is constantly advancing, the expectations of clients from
businesses are also on a rise. Gekko Partners takes advantage of advancements such as new
digital trends to offer attractive marketing services to customers as well as clients (Hollenbeck,
Noe and Gerhart, 2018). At present, this entity has been regarded as one among the top 10
marketing agencies within the confines of United Kingdom that solely operates with
technological brands (Gekko Partners Limited, 2019).
P2 Ansoff growth Matrix
Ansoff growth matrix is considered as the strategic marketing framework that provide
adequate guidance to businesses through which they can effectively grow. Manager of Gekko
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Partners Ltd. has used this framework for enhancing their understanding over the market
situations which helps them out in improving their knowledge over the best strategies through
which company can grow. This framework includes four different kinds of strategies which are
described below in the context with company:
Market penetration: In this strategy, managers of company are suggested to remain stick
to their existing marketplace with the same products for the purpose of enhancing their business
growth. For Gekko Partners Ltd., the manager of this company adopt this as its growth strategy
by providing similar market services in UK market to unapproached customers. This will
improvise their sales performance as numbers of customers are more in comparison to past
situations (Levy, 2016).
Product development: According to this strategy, businesses are required to introduce
new product in the same area for the influencing customer’s interest towards them. With
reference to Gekko Partners Ltd., the company is required to add on some more services in its
service portfolio list in order to give more option to customers through which they easily
promote their products and services in right manner. This attracts more customers towards the
company which places positive impact on the sales performance of the company.
Market development: Gekko Partners Ltd., can use this strategy by offering similar kind
of product into the new marketplace. For instance: The company could offer its marketing
services in periphery location of UK for the purpose of approaching maximum number of
customers from new market place. Increase in number of customers would also results in
increase of profitability of the company.
Diversification: In this strategy, businesses are advised to offer completely new product
at new geographical locations (Eddleston and et. al., 2013). For Gekko Partners Ltd., this
strategy looks like most riskier one because it requires huge capital for investment which is not
feasible for small businesses like Gekko Partners Ltd.
From the above elaborated discussion, it can be said that market penetration is seen as the
best feasible growth strategy for Gekko Partners Ltd. This is because, chosen company does not
required to invest capital for the growth. They can simply conduct some market research in order
to find out which zone of customers in the existing market in not approached by them. Wit the
help of this market research, the manager of Gekko Partners Ltd. can easily increase its
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customer’s numbers which will directly place impact over sales performance as well as
profitability of the company within UK.
TASK 2
P3 Feasible sources of funding for small businesses
Sources of funding refers to different options through which the company can easily enhance
their capital in order to expand or grow its business in right manner. With reference to Gekko
Partners Ltd., owner of this company is planning to grow their business within UK. For this, they
require to raise their fund so that their business activities towards the growth. In this regard
manager of this company has been asked to find out feasible potential sources of funding through
which company can raise its funds (Lewis, 2013). Some of the identified funding options are
described as below along with their merit and demerit:
Bank Loan: It is the amount of money that is credited by bank to the person or business
entitity in the exchange of some interest at the time of return. Bank loans are commonly basically
given to that specific person who owes some sort of security which has kept to bank so that if in
case if person is not able to pay the amount that bank can claim money from that security. In
context of Gekko Partners Ltd., the company can go for this source of fund in order to raise its
funds effectively.
Advantage: The main advantage of this funding option is that it is highly secured as it
includes all the documentation work which ensures security of enterprise as well as bank.
Interest rate of banks is also nominal in comparison to other sources. Along with this, bank also
gives numerous of repayment options to company through which they can return whole
according to their feasibility.
Disadvantage: This source is seen as the time consuming process as its documentation takes
time for verification.
Personal Saving: Business man can also use their own money that is their personals saving for
raising their funds. The method does not require any documentation work which makes it
quicker for owner to use the money according their requirement (MacLeod, 2013).
Advantage: It is quick is process and makes business free from interference of others.
Along with this, it does not require any security as well for the issuance of money.
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Disadvantage: The main risk of this funding option is that if the business does not go well
then the invested will going to be wasted. This seems to look risk for business owner.
Friends and Family: Small businesses can also raise their funds with the help of friends and
family. In this, business owner can money from their close persons in the exchange of money +
interest. This source also gives leverage in security as well as makes whole money issuance
process quicker (Mahmoudi and et. al., 2013).
Advantage: It is one of the fastest processes of raising fund without any security or
documentation work. Along with this, interest rate is very nominal.
Disadvantage: The main drawback of this method is that it could affect relationship of
owner with friends and family. Along with this, there are probable chances that individual who
had given money can interfere in decision making processes of the Gekko Partners Ltd. as their
money is invested in the same firm. This interference could result negatively on the business
performance.
According to the above described sources of funding, it has been identified that bank loan
are best feasible option for the Gekko Partners Ltd. as it is highly secured and its interest rate is
also nominal.
TASK 3
P4 Appropriate business plan for company
Business plan is basically formulated by top management team of the company which works as
the guidance for all employees. It is in the format of written document that depicts over all
strategies which are expected by employee to follow in future. In context of Gekko Partners Ltd.,
its business manager has formulated an effective business plan through which they can
implement their strategies effectively in future (Mason, 2015). There are numerous of things
which are covered in business plan are described as below:
Overview of the company: Gekko Partners Ltd. is a UK based marketing company
which works at small scale. The company focuses on providing new marketing services to its
clients so that products get famous among their customers which increase their sales
performance. Currently, the company is focusing on offering its services within UK only for
enhancing their market share.
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Products and services of company: Gekko Partners Ltd. offers technological based
marketing activities to its customers. It includes social media promotion which helps in
approaching maximum number of customers within the UK as well as periphery areas.
Vision: “To become best marketing company worldwide”.
Mission: “To offer high quality services to its customers for maximising their revenue”.
Situational market analysis: Business manager of Gekko Partners Ltd. has conducted an
effective situational analysis in order to find strength of the company and available opportunities
for the same company at marketplace (Mitchelmore and Rowley, 2013). According to the
analysis both the strength and weakness of Gekko Partners Ltd. are described as below:
Strengths Opportunities
 Adoption of technology helps the
Gekko Partners Ltd. in influencing
interest of customers towards the
company as technology provides more
effective services within less period of
time.
 The company can approach to new
customers within existing marketplace
through which number of customers
can enhanced.
 It can also expand its business by
focusing on customers available in
periphery geographical location of UK.
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Formulation of budget: It is the next step of business plan in which manager of Gekko
Partners Ltd. has developed an effective budget of organisational activities. This budget is
described as below:
According to the above described cash flow statement, it can be said that Gekko Partners
Ltd. pays its taxes at every which are clearly represented above. Along with this, whole income
of this is around $72001.
Identification of targeted market: The chosen or targeted customers zone for Gekko
Partners Ltd. is localise people of UK only.
Allocation of resources: Allocation of resources will be done according to the
requirement of respective department (Moseley, 2013).
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Implementation of plan: The plan will be implemented according to the overall
discussed plan. The plan will also be monitored and modified according to the requirement of
situation.
TASK 4
P5 Determine exit or succession options for small scale company
In order to grow business effectively Gekko Partners Ltd. focuses identifying various
alternative options through which their improve business performance with the support of certain
strategies or succession options. Succession strategy refers to some effective strategies through
which enterprise can minimise its financial burden and also improve its market share in effective
way. The identified and suitable succession options for Gekko Partners Ltd. are described as
below with its advantage and disadvantages:
Use of internet: Manager of Gekko Partners Ltd. can take help of internet tool for
influencing interest of customers towards them. It can be said that if this company uses the
internet then itr is easier for them to promote their own services across the UK (Pred, 2017). This
will also work as an effective marketing tool through which business performance of Gekko
Partners Ltd. can move forward towards the succession. Advantage: With the help of internet company can easily spread information about their
services across UK in rapid manner. Along with this, internets will also contribute in
meeting demand and requirements of customers effectively. Disadvantage: Excess usage of internet might increase chances of cyber crime as hackers
might acquire confidential information of company.
Merger and acquisition: This strategy suggests that Gekko Partners Ltd. can merge with
some other company in order to expand their business in effective way. It can be seen as the
effective succession strategy which will definitely help Gekko Partners Ltd. in resolving their
financial issues. Advantage: Increase capital of enterprise which contributes in the raise of profitability.
 Disadvantage: Tit increases chances of conflict and clashes as two business owner are
involved in the same project (Schetke, Haase and Kötter, 2012).
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