Planning for Growth: Evaluation, Strategies, Funding, and Exit Options

This report provides a comprehensive analysis of business growth strategies, focusing on key considerations for evaluating growth opportunities and justifying them. It utilizes Ansoff's growth vector matrix to assess various growth opportunities, including market penetration, market development, product development, and diversification. The report also delves into the assessment of potential funding resources available to businesses, such as bank loans, personal savings, and funding from friends and relatives. Furthermore, it includes the development of a business plan, incorporating financial information and strategic objectives, and concludes with an examination of exit and succession options for small businesses, outlining their benefits. The report uses Imaginera, a bespoke reinsurance software consultancy, as a case study to illustrate the concepts discussed and to understand how different strategies and planning can help a business grow.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1 Key consideration in evaluation of growth opportunities and justification............................3
P2 Evaluation of opportunities for growth by applying Ansoff's growth vector matrix.............6
Task 2...............................................................................................................................................7
P3 Assessment of potential resources of funding which is available to businesses....................7
Task 3...............................................................................................................................................9
P4 & M4 A business plan, designed to growth by including financial information and strategic
objectives.....................................................................................................................................9
Task 4.............................................................................................................................................11
P5 Exit and succession option for small business with the help of benefits..............................11
CONCLUSION .............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
In today's time, growth is important for every organisation that helps to increase market
share and sustainability in market place. Each and every organisation wants that its business
activities will increase and make higher profits. This can be possible if management are able to
make effective planning and execute them properly in order to attain business goal and
objectives. Without planning it become difficult for organisation to run business in competitive
environment and get high profits (Brownill, 2017). To understand about this Imaginera has been
taken that is Bespoke reinsurance software consultancy company focusing on core qualities of
team collaboration strong client engagement and innovation. This organisation support large and
multinational companies by providing software which is designed to reduced manual input and
support business process. This report help to understand how a business grow with the help of
making plans. This report covers different topics such as key consideration which uses by SMEs
by evaluating growth opportunities and assessment of various methods which is used by
organisation by assessing funding. Apart from this, business plan and various ways to small
business can take action regarding exit and continue the business.
Task 1
Key consideration in evaluation of growth opportunities and justification
Small business are those business, started with low capital and resources in order to
living daily life. In this business there is not required to follow any strict government regulations
because it runs at small area and region by understanding people's demand. In Imaginera,
managers planning to grow its business by using different key consideration that attracts
customers and increase profitability (Cao, Chen and Hickman, 2017). For evaluating growth
opportunities Boston Matrix is done by management that are as defined:
Boston consulting group matrix – This matrix is also known as Boston or growth
matrix which is used by organisation in order to grow their business from small business to
larger organisation. This is important for organisation to focus on goals and objectives and make
plans accordingly so it can be attained effectively. This matrix assess products on two
dimensions the first part looks at the products general level of growth in market. The second part
is used to measure the product's market share relatively to the largest competitor in industry.

Stars – This means high share and high growth who are selling their products and
services rapidly and increases profitability. Imaginera, is providing star products that can see as
market leading products because there is need consultancy in every organisation which is
providing by such company. This generate lot of income due to strength in market (Deal and
et.al., 2017).
Cash cows – This means high share and low growth which arises in organisation due to
less competitive pressure with low growth in market. If Imaginera, is in position then it need to
generate a significant level of income but not costing the organisation much to maintain. Herein,
organisation need to focus on their market share and growth of business by getting new ideas
(Cao, Wang and Zeng, 2017).
Dog – The meaning of this low share and low growth that states organisation is having
low position in market due to which it has less profitability. Businesses who are in this category
as considered as weak market share in low growth market. In Imaginera, is in this position then
products can be big drain on management time and resources. Herein, organisation need to make
more investment and processes so loss can be reduce.
Problem child – It is stated that question marks, that means products prove to be tricky
ones for product managers. Such product share in high growth but no seem to have high share in
market. If organisation in this position then it need to identify its competitor and then need to

make investment accordingly that help to grow business effectively (Christensen, Fields and
Sheats, 2019).
Porter's Generic Strategies
This strategy is given by Porter who states that how an organisation can get competitive
advantages by running business effectively. According to this, company should select a best
strategy that can help to make the profitability and increase market share. In this, customers are
valued by using a appropriate strategy. The description of such strategy in context to Imaginera
is defined as:
Cost leadership: This is used by organisation in order to winning market share by
appealing to price sensitive customers. In this, products and services are offered at low prices
than competitor that helps to take the competitive benefits. Imaginera has an option to be low
cost producer by providing its services at low cost that can help to get high market share and
create barriers in entering to potential competitors (Duvernoy and et.al., 2018).
Differentiation: In changing time, differentiation can be a good way to compete and
winning the market successfully. This is appropriate strategy where customers are not price
sensitive. The market is saturated where customers have particular needs which is completed by
some organisation that helps to take competitive advantages. Imaginera has a growth
opportunities to develop different software for targeted customers who are not price sensitive can
help to compete with others efficiently.
Focus: This is the combination of cost and differentiation element which mainly adopted
by big organisation in order to capture high market share and capture good brand image. This
can be helpful for organisation that targets only some customers by providing differentiae
products and services at less prices that may influence customers. Imaginera has an opportunity
to focus on this strategy and provide software services to its targeted clients at low cost that can
help to grow business effectively (Hobbs and et.al., 2016).
From the above Imaginera is adopting differentiation strategy that is appropriate strategy
because in UK people are not price sensitive who wants different services that can help to
increase profitability by reducing manual work. By focusing on people needs, management has
decided to use this strategy in which they will provide software that can help in collaboration,
strong client engagement and innovation in their work. Therefore, by using this plan and
providing different product it can capture high market share and maintain brand image.

Evaluation of opportunities for growth by applying Ansoff's growth vector matrix
Growth is important for business organisation where number of employees are working
collectively and performing their task effectively. The aim of organisation is to increase
profitability and create growth opportunities for small businesses. Imaginera is small business
that uses Ansoff's growth matrix that are as defined:
Market penetration: Organisation uses and sales its products in existing market with the
aim of increasing its market share. In this, the prices of products decreases that attracts existing
customers and encourages them to buy them. This can be used by Imaginera organisation by
reducing the prices of its software in existing market that attracts existing targeted customers and
increase sale (Legacy, Curtis and Scheurer, 2017).
Market development: When organisation enter in to new market with existing products
and services in order to connect with existing customers and adding new is considered as
development planning. In this, Imaginera need to catering different customer segment by
entering in to new domestic market effectively. This increases organisational productivity and
profitability by entering in to foreign market.
Product development: New products and services are developed by organisation in
order to attracts customers in existing market that helps to get profitability is considered as
product development. Herein, management and employees involves in extensive research and
development programme that helps in product range expansion. Imaginera can use this planning
by introducing new software with adding new features that can help to meet the needs of existing
market (Moser-Reischl and et.al., 2019).
Diversification: This strategy is related to diversification where an organisation enters in
to new market with new product so, this is riskiest for businesses. Here, organisation focuses on
both strategy such as to produce new products in new market that can help to capture high
market share and brand image effectively. Imaginera have an option to capture market share and
profitability by developing new software in new market.
From the above Imaginera has adopted market development strategy that is appropriate
planning in order to grow their business and get opportunity to increase profits. In this,
management need to introduce its software in new market that will help to connect with existing
as well as add new customers. This increases organisational capability and profitability
effectively and helps to attain the business goals.

Discussion of various options for growth
Every organisation wants to get the business opportunities that can help to grow their
business and increase profitability. A company can plan in differently manner to grow their
business such as expand business activities, develop a new market, reduce the cost of products
and services and provide different services that can attracts customers and increase profitability.
Moreover, PESTLE analysis is used to know about factors who can provide a growth
opportunities and continue the business effectively. These factors states how an organisation can
attain its decided goals and make higher profits (Murphy and et.al., 2017).
Task 2
Assessment of potential resources of funding which is available to businesses
Funding is important for every organisation that is uses to run business activities and
completing goals effectively. It is important for organisation to have funds that are used to buy
resources and equipment to run a business. Without finance it become impossible to run a
business and increase productivity. In context to Imaginera, needed funds to implement plans,
run business and grow it continuously. Therefore, there are different option that are used to
collect funds are as defined:
Bank loan: It refers to the financial form by which loan can be taken by the the financial
forms or institutions. In regards with medium sized business firms they need overdraft that can
be apply on present account (Duvernoy and et.al., 2018).
Pros: It is very flexible in nature because in this people do not require to face any kind of
issues from bank (Navidi and Khatami, 2017). But it will not properly appropriate for
Imaginera to changes their amount which is borrowed in time limits.
Cons: In this large amount is needed with the overdrafts and flexible nature of loans that
can be turn into the slow growth of business. There is organisation has to pay high amount of
interest charges that can reduce the productivity.
Personal savings: This is privately fund which is used to run and increase the
performance of organisation by getting required funds. In this, company should have personal
saving, own property and other benefits that are used to run business activities (Hobbs and et.
al., 2016).
Pros:

 There is total control on business because money is collected from personal
savings.
 It gives satisfaction that organisation is using its own cash to fund the business
(Navidi and Khatami, 2017).
Cons:
 If business fails, then all hard work and money go to waste.
 Organisation can miss out valuable guidance and membership in their business.
Friends and relatives: When funds are collected from relatives and friends by borrowing
is used to run business activities that helps to grow small business (Santana and et.al., 2017) .
This can helps to increase business activities and profits.
Pros:
 This is faster funding process that ca help to provide payment in less time.
 It is consider as flexible payment method that can pay anytime because it is
collected from friends.
Cons:
 Friends and family provide funds without assessing viability and reliability of
business plan.
 In case of loss it become burden for organisation to pay amounts.
Therefore, Imaginera has various option from them it can collect the funds in order to
running its business and turning it in to large size business effectively.
Evaluation of potential resources in relation to funding and justification for adoption
Funds are the important for organisation and each activities that helps to implement the
plans and run business effectively. For instance if a person is going to start something new tehn it
is require to establish such business and also required employees, equipments, machineries etc.
all are needed financial sources. Financial resources helps to complete the task and attain decided
goals. In context to Imaginera, angel investors are good financial resources that will help to
collect funds to enhance business activities and develop the business performance effectively.
This option is selected as funds can be collect in less time and low interest that can help to grow
business opportunities effectively.

Task 3
A business plan, designed to growth by including financial information and strategic objectives
Business plan is consider as a document which is prepared in order to complete task and
attain the business goals effectively. It is a written description that states how to perform a
number of task in order to accomplish a goals. This is important for organisation to develop a
business plan by using knowledge and skills that helps to accomplish the set out goals and
increase profitability (Sisson, Rogers and Gibson, 2019). As Imaginera has adopted market
development strategy whose aim is to increase business activities by entering in to new market of
UK so customers can get highly attract and make decision to buy the products and services
effectively. For accomplishing the object management has set up a business plan that is defined
below:
Executive summary - Imaginera is expert in reinsurance software company that helps
to improve risk assessment, compliance and efficiency. This provide consultancy services to its
clients about using software that can reduce the manual work and store data systematically. This
advise medium and larger size organisation to use software and improve their efficiency that
process to accomplish business goals (About company, 2019).
Vision – To collaborate and keep strong client engagement in wider range that can help
to develop a business effectively.
Mission – To get and provide a optimum solution to customers about software that helps
to reduce the problems and increase effectiveness.
Objectives: The objectives of Imaginera organisation is defined below:
 To provide optimum solution and consultancy services to customers that can help
to maintain the good profits.
 To capture market share 15% as it is small business.
 To create value of organisation in the eyesight of customers that can help to bring
improvement.
 Increase the portion of profitability up to 60%.
 Maintaining productivity and profitability of organisation by running business.
Industry analysis: The industry analysis is done by management in regard of Imaginera
by using SWOT analysis:

Strength Weakness Opportunities Threats
 Imaginera is
good
reinsurance
consultancy
company.
 It assist people
to reduce the
manual work
by using
software.
 Focusing on
people demand
.
 Lack of
resources and
capital.
 Competitors in
market.
 Lack of
customers
support .
(Legacy, Curtis
and Scheurer,
2017).

 Highly strong
client
engagement
and innovation
that support
companies.
 Collaboration
of team
 Skilled and
technical
employees.
 Changing
demand of
people.
 Low
consideration.
 Lack of market
knowledge.
Financial information: The financial information in order to develop the market and
attracting customers there is require some expenses that are as defined:
Particulars £Amount
Research & development £2000
Training & development £3000
Promotional activities £5000
Technical services £15000
Other expenses £10000
Total £35000
Sources of finance: Imaginera, is required 35000 to enter in new market for the
purpose of exploring growth opportunities. So this organisation is having various funding
resources such as angel investors, bank loan, family and friends, peer to peer lending,
crowdfunding etc.

Strategies and tactics: Imaginera is using different types of strategies and tactics in
order to develop its reinsurance services in new market that are as defined:
To select a area and location: For developing and growing services Imaginera is
required to chose a market and area in which it can provide its existing services that help to attain
more customers.
Training and development: In Imaginera, management should provide training and
development services to its employees who can help clients to understand about uses of software
and increase profitability (Moser-Reischl and et.al., 2019)..
To conduct a research and select a best option: The management of Imaginera are
conduct a research regarding market and run their business effectively.
Control and evaluation: By evaluating all strategies and plans it has consider as
manager can control its performance and business activities by comparing with others that will
help to maintain good productivity and profitability. All activities are required to control so
managers are performing their action by controlling. In this, they analysis that is any activities
are going to beyond expensed the they brining improvements in activities (Murphy and et.al.,
2017).
Task 4
Exit and succession option for small business with the help of benefits
Exit means to close or discontinue the business if it is not running good. This is important
for organisation to analysis the business activities and run their business effectively. If business
is going in loss situation then owner make decision to exit it or increase business performance.
Business environment is coved of various factors which are important to discuss and focus on
them. Imaginera is providing reinsurance services to its customers that can help to maintain the
productivity and profitability. The management of such organisation have different options to
exit its business by selecting best option. So, description of existing options and are as defined:
Liquidation - This option states that an organisation should liquidate their business by
selling its assets and liabilities effectively. In liquidation it become responsibility of management
or owner to sell all assets of organisation and pay off liabilities.
Advantages - In this, Imaginera can wound up their business very quickly without
following any rules and regulations. This is simple method which can be used to exist the

business. Here's, not requirement to follow any regulations and laws. No any debts are remain in
organisation (Song and et.al., 2016).
Disadvantages – In liquidation, owners get lowest return on investment. Here is money
is only received by selling the assets. Business goes to end that also end brand image, market
share and loyal customers.
Acquisition & Merger - In this, one organisation acquire business of another business in
order to continue this. This is used to combine two organisation in which powerful organisation
can acquire weak enterprise so, business can continue effectively.
Advantages – This helps to continue existing business but by acquirer company which is
powerful. With the help of this, a business have chances to grow its organisation and make high
profits (Zhao and Li, 2016).
Disadvantages – In this, skilled employees and resources goes to end that is negative
point for organisation. Herein, if organisation is facing losses then all losses are bear by acquirer
company (Sorbe and Johansson, 2017).
Keep business in the family – In this option a business can be close by giving it to their
family. As some small business has dream to keep their business in their family. So this can help
in legacy lives on and providing a living for heirs.
Advantages – In this, business can make a smooth and easy transition by grooming a
family successor. This allows family to keep business in hand and in advisory position.
Disadvantages – If business is in loss situation then it become responsibility of family to
bear this loss. Some time, family members do not have skills to take over the business.
From the above it has been defined that Imaginera is using Liquidation option if
business plan has not completed successfully. This is appropriate option that can help to exits the
business in which management need to sale all assets in order to pay all liabilities. In case of any
liabilities are remain then they are liable to pay off. There is no need to follow any regulations in
order to exist the business (Spaniol and Rowland, 2018).
Evaluation of exit and succession option
An organisation is having different options to exit their business if it is not running
properly and attaining goals. Options involve merger and acquisition, keep business in family
and liquidation that helps to close the business from the side of one party. Imaginera has
selected liquidation in which owners are responsible to sale its assets and pay the liabilities. In