Strategic Growth Plan: Rent-A-Car, Funding, & Exit Strategies

This report provides a comprehensive analysis of growth planning for Rent-A-Car, a small UK-based car rental business aiming to expand its market presence. It evaluates growth opportunities using Porter's generic strategies and PEST analysis, and applies the Ansoff Matrix to identify optimal growth strategies, particularly market development. The report also examines various funding sources available to the business and designs a detailed business plan incorporating financial information and strategic objectives. Furthermore, it assesses exit and succession options for the small business, outlining the benefits and drawbacks of each. The analysis aims to provide a strategic roadmap for Rent-A-Car to achieve sustainable growth and overcome challenges encountered during the COVID-19 pandemic.

PLANNING FOR
GROWTH
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Table of content
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 evaluate key aspects for evaluating growth opportunities.....................................................3
P2 Analyse the opportunities for growth applying Ansoff growth vector material....................5
M1 Options for growth using a certain of analytical frameworks..............................................6
D1 Critically analyse the specific options & pathways for growth...........................................7
TASK 2............................................................................................................................................7
P3 Various sources of funding which are available to businesses .............................................7
M2 Evaluate potential sources of funding & justification ........................................................9
D2 evaluate potential sources of funding with justified argument ...........................................9
TASK 3............................................................................................................................................9
P4 Design a business plan for growth which includes financial information & strategic
objectives for expanding business...............................................................................................9
M3 Develop an effective & detailed business plan ..................................................................11
D3 Present a effective and in-depth business plan ...................................................................11
TASK 4..........................................................................................................................................11
P5 Assess exit or succession options for a small business expressing the benefits & drawbacks
of each option............................................................................................................................11
M4 Exit or succession plan for a small venture.......................................................................12
D4 Evaluation of the exit or succession plan for a small venture.............................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Every company which is in the market majorly effective planning so by which they can
run their venture in an appropriate manner(Cho and et. al.,2020). Planning is the process which
takes place before executing the plan or is the thinking beforehand which helps them to enhance
their profitability and productivity. There are various types of organizations such as micro, small,
medium and large. They all need effective planning by which they can move for the growth &
development. Rent-A-Car is the chosen organisation for this report, the company is founded by
Jack Taylor and they generate the annual revenue of 14.1 billion euros and working with 68, 000
employees. This report will analyses the Ansoff matrix in order to analyse the growth of the
organisation & also use various models & theme so that they can expand their business in new
locations.
TASK 1
P1 evaluate key aspects for evaluating certain growth opportunities.
It is important for the firm to make the marketing plan by which they can analyse the
available opportunities by which they can sustain in the market for a long period of time.
Planning for the company in order to achieve the desired goal and Rent-A-Car is the small
venture which is based in UK & planning to expand their market in to new locations.
Porter's generic strategy
It is the framework that helps in evaluating the competition in the market and there are four
strategies which is being used by the organisation in order to expand their market and these are
given below: Cost leadership: - this is the aspects which emphasizes on the cost in which the
companies offering their product and services to their target group. They are offering
their product in low prices to their potential customers and Rent-A-Car can use this
strategy in order to increase their customer base. Differentiation: - it is the approach in which organisations offer the elevator and unique
product by doing effective direct search and development in order to evalauate the needs
and wants of their potential customers by which they can have higher profits and revenue. Cost focus: - it is the approach which focuses on the nature market and offer goods &
services at nominal prices. Company understand the needs & wants of the potential
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buyers in order to provide the goods at nomial prices by which they can cover the target
market.
 Differentiation focus: - it is the strategy which focuses on launching new product but in
the nature market and it is mainly focuses on organisation loyalty by which they can have
more competitive advantage in the target market. Rent-A-Car can offer advance product
in the market by which they can attain higher profits.
It is evaluated that this framework helps in getting more advantage in terms of market
competiton & company can effectively expand their Market by using cost focus strategy by
which they can offer the product and low prices in order to attract large pool of customers.
PEST Analysis
The framework of analysing the external environment which can evaluate the operations of
the business and take the right action with the consideration of having good brand image in the
market. External environment includes various aspects which are existing in the market and these
are explained as follows: Political Factor – these are the aspects that includes government laws goverment
stability and many more. Rent-A-Car is the small business which they want to expand in
the new locations by doing market research and it is important to copeup with the
political instability of the country so that they can follow the rules and laws of a
particular area. Economical Factor – these are the factor which are concern for the inflation rate
recession rate employment rate and interest rate. The economy of UK strong but due to
uncertainty of brexit, organisation and face more impact on their growth and Rent-A-Car
focuses on offering unique product. Social Factor – these are the aspects which includes the norms believes and social values
of the people that reflect the buying behaviour of the buyer. Rent-A-Car affect the whole
market & also they are meeting various religion and they are considered literacy rate by
which they are considering all age group member as their group.
 Technological Factor - these are the aspects that are concern with the technological
innovation and change in the technology. Rent-A-Car is using certain innovative
techniques by which they can meet the needs and wants of their customers by which they
can attain higher profitability.
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P2 Analyse the opportunities for growth using Ansoff growth vector material.
Every entrepreneur and business start their own nenchil by having innovative idea with the
sole aim of gaining higher market growth of their small business in the market. In order to grab
new opportunities for the business growth it is necessary for the the owner to understand the
strength of their business so that they can use them in order to get any chances and opportunities
for the growth. Rent-A-Car it is the small car business in the UK and the owner want to expand
their market in the new locations so that they can manage the loss which was incurred in covid
pandemic. In order to obtain the various opportunities for the growth the company need to apply
licence of matrix by which they can do the strategic planning in order to provide more
opportunities for the business and there are four strategies which are being involved in this
model and car rental company need to analyse this strategy in an appropriate manner for the
small business so that they can expand in new location and strategies are explain as follows:
 Market penetration – it is the strategy which is concerned about sealing the existing
product and service in the current market. With this framework organsiation can attain
market growth & this approach is beneficial for Rent-A-Car who need low cost and less
time. Company needs to identify the taste and preferences of their potential customers so
that they can attend higher profits.
Figure 1, Ansoff Matrix: Understanding firms’ growth options,2021
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 Market development - as per the type of growth strategy the company is selling their
existing product in the new market. With the help of this strategy, business can
effectively in their certain marketing activities with those products or services which are
already existing in the market and has a good brand recognition which helpful for the
organsiation for their successful expansion in the market. Some particular benefits of this
is strategy Hercules company which can improve their sales and profitability.
organsiation can store and shop on rent and effectively get existing product into new
market. In order to attract the individual by which company can provide product reviews
at suitable prices.
 Product development- according to this strategy the company introduced new product in
the existing market. This is strategy is helpful for the business who wants to maintain
their good position in the entire marketplace became strong brand image. Rent-A-Car
wants to launch the new product so that the small scale business can appropriately
improve the performance and sale in order to establish strong brand image. Rent-A-Car
wants to introduce their new product in the existing market by which small business can
enhance their performance and sale and also established brand image in the market. With
the help of the strategic company can enhance their performance & profitability by
targeting right people.
 Diversification - the growth approach is concerned with the introducing new product in
the new marketplace and this is where is risky strategy which require high level of
investment in terms of venture with new product development the new product in New
Market segment.
By applying ansoff matrix framework, it is analysed that these approches are playing
significant role for those business who want to have particular planning for the growth & looking
forward to attending and grabbing upcoming opportunities by which we can improve their
market rate and growth. In relation to Rent-A-Car, market development is the effective strategy
by which company can grab the growth opportunities.
M1 Various options for growth using a certain of analytical frameworks
There are certain options for the group by which the organsiation can adopt for their long-
term survival & growth. In context to Rent-A-Car market development approach would be the
right option for their growth by which they can evaluate the specific market & the needs and
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wants of their potential customers so that they can gain more competitive advantage in
comparison to their competitors. There are different options by which organsiation can
considered as SWOT analysis, porter's five force model all these certain options are best for the
growth by which organisation can have more profits.
D1 Critically analyse the specific options & pathways for growth
Some specific options and pathways with our help for the company in order to analyse the
growth opportunities for the business in order to attain had productivity & profitability. Rent-A-
Car can effectively conduct specific market research so that business can appropriately identify
the status of their competitors and the certain aspects in order to adopt appropriate strategy in
order to evaluate the internal and external aspects of the market by which they can minimise the
risk and have more productivity.
TASK 2
P3 Various sources of funding that are available to businesses
In order to have successful organsiation, money and capital is considered as a main attribute
for the owners who that they can appropriately operate the business functions without hurdling
with the financial crisis. There are different sources of finance by which company can collect
funds. Rent-A-Car small scale business who are working in order to have good brand image in
the UK and they are planning to expand their market into new location so the company will
cover all the financial losses which is being incurred during the pandemic. In order to launch a
new product owner need at least €30,000 in order to introduce new products for the particular
quality & caused by which they can attract more buyers so that organsiation can have strong
position in the marketplace. There are certain source of finance by which company can raise their
funds. Various types of financial sources which are available in the market with their benefits
and drawbacks are explained as follows:
 BankLoan – as per the current market situation, bank loan is utilising by the various
entrepreneur in order to run their business effectively. Owner can take the bank loan in in
terms of short term loan and long term loan which is helpful because it can charge less
interest in comparison to the other financial sources. Rent-A-Car have the bank loan in
order to raise the fund from the introduction of new product that will be helpful for the
company.
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Benefits Drawbacks
Bank loan is advantage and contains very
easy processor in order to get loan for the own
taker from the bank for their business. Owner
can appropiately loan money as per their
convenience.
The drawback of the bank loan is Bank
require any security or property against the
loan and if the owner is not capable to repay
the loan then Bank keep their security or
property from them.
 Overdraft - Bank loan is approach as a good source of procuring funds. Overdraft is
work as agreement in the financial institution and the customers that can commonly
extended by the credit limit for the customers in order to have more amount of funds.
Benefits Drawbacks
The core advantage of overdraft is that it can
be changed & convenience for the
organisation. It is easy to take than loan and
can be available for a specific period of time
when the organisation required funds.
The major point for drawback of overdraft is
that money that the company can raise with
the acess of overdraft is less than the personal
loan & they usually charge higher interest rate
and owner can exceed the limit of overdraft
can a charged some extra amount.
 Angel financing – Many organisation are using angle financing and the taking amount
for their businesses. On the basis of the source investors are paying for the aim of having
equal position in the business.
Benefits Drawbacks
Angles in answering can accurately assess the
specific knowledge and contract between the
investors and take effective decisions for their
growth.
In relation to business, angel financing
business majorly give the share to their
investors.
It is analysed from the above discussion that bank loan is more useful as a source of fund
that is available for the company by which we can effectively take loan for a long period of time
with low interest rate in order to run their business in an smooth manner.
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M2 Evaluate potential sources of funding & justification
It is analysed that financial sources such as bank loan overdraft angel financing play a
prominent role in raising the funds for the business but bank loan is more suitable for the Rent-
A-Car overdraft is expensive & charge higher interest rate. Angel financing appropriate fixed to
the fund crisis but it totally depends upon the investors and their decisions. Bank loan is
appropriate for the business by which owner can take for a long period of time & also very
flexible with low interest rate.
D2 Analyse potential ways of funding with justified argument
There are various sources of fund that are required financial stability for the operations of
the company. Rent-A-Car consider bank loan by which they can take the loan for a long period
of time with minimum interest rate. There are some specific benefits & drawbacks of bank loan
by which company have to consider before taking bank loan.
TASK 3
P4 Design a business plan for growth which includes financial information and appropiate
objectives for expanding business
Business Plan
Executive Summary – on the basis of current market scenario, it is evaluated that it is needed
to prepare a particular business plan which help to make the strategic planning for the
organisation so that they can rightly improve their performance & profitability at market place.
The main aim of this plan is to evaluate the opportunities for the growth of Rent-A-Car so that
they can effectively enhance their market position and sales. Rent-A-Car want to expand their
business in the new location so that they can attract large group of potential customers and also
recovered all the losses which is being incurred during the pandemic.
Mission - with the leading car rental company so that they can effectively grab the upcoming
opportunities in the market.
Vision - in order to improve their marketing with the help of convienient costing so that they
can effectively expand their market across the world.
Objectives - main objective of the company was to be the leading car rental company in the
world which can help to gain more satisfaction of their customers.
Company Summary - Rent-A-Car established in 1957 by Jack Taylor, an entrepreneur in
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Missouri, USA. They've started with just 7 cars & invested is money with the idea of executive
leasing. Since the company's became the largest car rental company in the North America with
the annual revenue of €14.1 billion & working with the employees 68000.
Products - company is offering different kind of car rental services and the different region.
Market Segmentation – the market approach is considered as a continuous aspect which is
being used by the company to target their potential customers and divide them into subgroups
so that can help full for the company. Rent-A-Car considered demographic segmentation and
just as It help for identifying the taste and preferences as per the customer and also attitude for
their product that can be helpful for the people to target their customers appropriately. The
main approach of companies to delete all age groups people so that they can increase their
overall profitability.
Sales Strategy & Sales Forecast, Projected Profit & Loss
In order to introduce their product in the new location and improve their sales, it is important
for the company to prepare a particular sales strategy by forecasting sale that can help in
improving the overall sale of the organisation. Rent-A-Car can consider the study of
excellence strategy & also made satisfaction selling strategy so that they can improve their
sales and services. Company is planning to improve their production capacity so that they can
serve large group of customer at a point of time and generate higher profit in order to
overcome the losses which is incurred in the time of pendamic.
Competitive Edge – car rental companies providing their services across the world and there
is competition in it is important to analyse the competitive status of their rivals by which they
can make strategies accordingly.
How are you securing investment?
Some specific ways securing funds that are aid to maintain the effectiveness of the business.
Rent-A-Car considered the right source of which is necessary to secure investment for the
company and also paying attention to their team members.
What will be the Growth strategy? Ansoff’s Matrix or any other growth strategy that
can fit for the organisation.
Various growth strategies that can helpful in improving the growth opportunities for the
organisation & companies uses ansoff Matrix model it is analysed at market development is
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considered as a useful strategy & also suitable for the company.
Conclusion
On the basis of level business plan it is evaluated that important to evaluate the opportunities
for the business so that they can improve their company profile and company's vision, mission,
objective can give the best contribution in the development of their organisation.
M3 Develop an effective & detailed business plan
Business plan is work like a framework which helpful in maintaining the ground at the
business and this is mainly prepared by the organisation in order to create value by which
company can gain more profit advantage. Rent-A-Car prepare specific business plan in order to
to offer their services in the new market to accomplish objective of the most.
D3 Present a effective and in-depth business plan
Business plan play a important role in building the brand image in the market there are
certain steps like messages and objective and marketing strategies so that they can maintain their
specific product line and analyses the particular problem in order to evaluate the growth
strategies and higher profits.
TASK 4
P5 Assess exit & succession options for a small venture expressing the benefits & drawbacks of
each option.
In order to evaluated with the current market situation it is important to know the specific
market options like exit plan and succession plan. They are play prominent role for the small
business in order to take corrective decision. The explanation of succession plan and exit plan in
context of Rent-A-Car are given below:
Exit plan
It is evaluated as the most comprehensive model which is basically determined various
factors that impact the functions of the organisation. With the help of exit plan venture can
effectively identify the issues and the area that clear problem in order to have success. Rent-A-
Car can considered this plan in order to determine the specific issues which affect the
profitability of the company. Samaj classification actors which are involved are as follows:
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 Winding Up – this is the the necessary factor for this plan that can also adapt an
influential process in terms of sales on the effective of pay of the overall liabilities and
tributes. After selling of their liabilities & debts.
Benefits Drawbacks
The main advantage of this aspects is that the
board of director and also having more
authority from there liabilities and debts.
The drawback for this factor that it can leads
to turn over rate of the workers.
Succession plan
Succession plan work for the success of new launching of their customers which can
recognise and analyse the new leaders. Succession planning is effective to transfer the power
from one person to another. Rent-A-Car can prepare a plan for their company for all the feature
constellations and some of the factor which are involved in the planning are given as follows:
 Merger & acquisition – this pattern is helpful in order to have the succession plan of the
company merger is useful in order to combine specific organisation to the other by which
they can complete the task in an appropriate manner. Acquisition is also have the
particular processes that small business can follow in order to sale to the large company.
Benefits Drawbacks
The main benefits of this aspects is to certain
skills and abilities & also reduce the future
risk and uncertainty.
It enhances the chances of the duplication in
relation to organization's activities.
As per the above discussion of succession and exit plan, it is evaluated that succession
planning will be one appropriate option for the Rent-A-Car it can also offer certain help to the
company so that they can maintain their requirements for their future purpose.
M4 Exit or succession plan for a small venture
On the basis of above discussed succession plan, it is evaluated from the gaps in a
succession plan is considered the most effective options for the company because companies
looking forward to expand their business and also want to launch new product so succession plan
will be best option.
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