Growth Opportunities Through Effective Business Planning

The assignment presents a comprehensive analysis of strategic marketing frameworks, including Ansoff's Matrix and Porter's Generic Strategies, which are pivotal for identifying growth opportunities and gaining competitive advantages. It further explores succession and exit strategies crucial for small enterprises facing continuous losses or seeking to maximize returns through business sales. The role of advanced technologies in enhancing marketing services is examined, emphasizing the importance of effective planning and strategic decision-making in sustaining high growth levels. Additionally, the assignment highlights the necessity for business managers to communicate performance metrics and interact with directors to secure funding and define expansion locations.

PLANNING
FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities.......................................................1
P2 Evaluate growth opportunity by applying Ansoffs-matrix model.........................................5
TASK 2............................................................................................................................................6
P3 Different sources of funding for organisation........................................................................6
TASK 3............................................................................................................................................8
P4 Prepare a business plan..........................................................................................................8
TASK 4..........................................................................................................................................13
P5 Assess succession or exit options for small enterprises and its merits and demerits...........13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning plays important role in medium and small sized business organisation for
achieving growth and success in future time frame. An entrepreneur have large number of
opportunities which can be capitalised through conducting a detailed assessment of the
environment and conducting business activities accordingly (Planning for growth, 2017). Present
assignment is based on Trio Marketing, it is small scale company which provide marketing
consultancy services to different organisation. In the present scenario, firm is making bid for
taking government contract that is SOL-Marketing. In this, company has design framework and
management has made plan to contribute £250,000. This help entrepreneur to establish
appropriate position in market by involving firm in government proposal. This report specifies
key considerations and Ansoff matrix which will benefit managers to examine opportunities of
growth. Different potential sources are asses by entrepreneur to have sufficient funds for
designing adequate business plan. Besides this, exit and succession options are identified by
entrepreneur to make appropriate decisions for effective business development and growth.
TASK 1
P1 Key considerations for evaluating growth opportunities
Business environment is changing which helps organisation to utilise market
opportunities and make success for longer time. For this, entrepreneur require to have complete
knowledge about internal capabilities and pitfalls to make decisions to utilise market
opportunities. Porter's generic strategies are used by entrepreneur of Trio Marketing to
acknowledge competitive analysis to position firm superior than rival firms. Along this, PESTLE
analysis is another technique which helps businessperson to acknowledge external situations to
design system accordingly (Brinckmann, Grichnik and Kapsa, 2010).
Competitive analysis: This is strategic management tool which is used by
businesspersons to asses strengths and weaknesses of potential and current rival firms. Along
this, opportunities and threats are also identified to adopt appropriate tactics that is defensive or
offensive. There are different types of threat identified which include raw material shortage, new
regulations, changing and variations in consumer taste and economic downturns. For this it is
necessary for entrepreneur of Trio Marketing to construct framework which define strategies and
its implementation in system to compete with rival businesses operating in the same segment.
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Besides this, they even monitor performance of firm to make appropriate adjustments and
changes in system to conduct activities in respect to market.
Porters Generic Strategies: This model was developed by Michael Porter which define
plan of action that helps entrepreneur to establish competitive advantage to compete with rival
firms. There are different strategies which are cost leadership, differentiation, cost focus and
differentiation focus which companies can use to compete and position itself superior than rival
firms. It is essential that small and medium firms to utilise resources efficiently (Burton, 2010).
For this, management of Trio Marketing have two options that are either to provide services at
lower amount or distinct them from competitor to attract clients easily. Hence, these are different
strategies which are described below:
Illustration 1: Porter's Generic Model
(Source: Porter's Generic Model, 2017)
Cost leadership: This strategy define entrepreneur design system and implement
advanced technologies to reduce cost of items and services, thereby provide products to
customers at appropriate rates. This help company to attract large number of people to enhance
their sales volume and revenue (Chapin, 2012). For example, Trio Marketing can use this tactic
which is to use appropriate tools and software that are HubSpot, MailChimp, Yesware, Optimove
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and many other which help firm to provide services at appropriate rates in respect to rivals.
Along this, company can also offer discounts and rebate to increase their market share and
position in respect to competitors.
Differentiation: It is another strategy which define that products and services are
manufactured distinctive from rival brands. This is effective tactic which helps businessperson to
enter into niche market and target customers which require to get quality items and are not price
sensitive. For this, companies require to utilise resources to satisfy demands and requirements of
people which are remaining unfilled. For example, Trio Marketing conduct advertising and
promotional activities for other firms which is distinct business itself. Company uses different
promotional techniques that are social media, print media, electronic media to provide client firm
appropriate position and image in market. This help entrepreneur to differentiate from rival firms
by providing distinct and large market reach (Christofakis and Papadaskalopoulos, 2011).
Cost Focus: This is another tactic which is appropriate for small and medium firms
which is conducting business in single market and require to provide appropriate quality of
products and services to people. For example, Trio Marketing provide advertising services to
other companies at reasonable prices to clients. Company has target construction firms and they
provide them online public relation facility to enhance their market reach and customer base.
Along this, entrepreneur provide services at affordable rates by using advanced software that are
HubSpot, MailChimp, Yesware, Optimove.
Differentiation focus: It is strategy which define that product innovation and marketing
of brand are various activities which are conducted by management to establish appropriate
position and image in market. For example, Trio Marketing entrepreneur promote and advertise
in market about its goodwill by informing them about software to provide various kinds of
services that are pay per click, online public relation, search engine optimization, online video
and many other to clients (Eddleston and et. al., 2013).
Therefore, Trio Marketing is small firm which provide advertising and promotional
support to other firms. Company is new and require to create its position in market, so
entrepreneur uses cost leadership strategy which is to provide services at reasonable prices to
attract people easily and influence their purchase decision. Along this, advanced tools and
technologies are used by firm to provide quality and distinct features to clients.
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External analysis: Businessperson require to have complete information about market
conditions to make changes in system to conduct business activities effectively and sustain its
position in market. PEST analysis helps management of Trio marketing to anticipate impact of
government, technology, economic conditions, public demands and environmental affect on
business. This benefits entrepreneur to asses opportunities and contracts to utilise them to
execute operations to accomplish objectives and goals within defined time frame (Grover,
Bokalo and Greenway, 2014).
Political: This factor define that government formulate rules and policies to regulate
functioning of organisation. For this, different policies in respect to taxation, trade tariffs, fiscal
and licensing are framed by authorities to govern and provide support to businessperson to make
system function legally. Along this, small and medium firms also get benefits from government
as they help them in development and enhance of economy. It is necessary that entrepreneur of
Trio Marketing register company and have licensing from government to protect and secure
system and business from getting used by other firms.
Economical: This is another essential factor which includes different components that
are interest rate, inflation, growth, exchange rate which depend on conditions of state of country.
These are various tactics which affect on amount of capital and profit which is generated by
firms to sustain its position and reputation in market in respect to rival firms. Trio Marketing is
small firm which have less market reach, so entrepreneur didn't have affect of exchange rate.
Along this, inflation which define that clients income determine profit generated by them (Hough
and et. al., 2010).
Social: This factor define that organisation provide products and services to fulfil
demands of people and satisfy them. For this, market research and survey are appropriate
technique which help top personnel to have complete knowledge about requirements and needs
of public, thereby provide them items accordingly. Trio Marketing provides advertisement and
promotional help to other companies. This benefit management of firms to safe their time in
conducting other manufacturing activities.
Technological: This factor specifies that management require to design system and
implement appropriate tools and techniques to utilise resources efficiently. Small and medium-
size firms require proper use of funds, material and manpower to conduct business activities
effectively. Trio Marketing conduct advertising and promotional activities for other firms that is
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frame attractive website and communicate to public about products and services offered by them
to target customers (Keough, 2015).
P2 Evaluate growth opportunity by applying Ansoffs-matrix model
For identifying future opportunities it is necessary for management to analyse business
knowledge, direction, capabilities, strength and strategies of effective resources of firms. In small
businesses, Trio Marketing tend to enter in new market for grabbing upcoming opportunities.
Therefore, Ansoffs vector matrix model is providing best opportunities of growth strategies
which focus on potential clients by using advance tools of marketing. In this there are four
strategies in this model are (Todes, 2012):
 Market penetration: In this strategy, Trio Marketing seeks to use growth in existing
marketing services with its main objective is to raise market share. Hence, it is treated as
less risk in this strategy as it is marketing company provide their services by using
innovative and latest technology.
(Source: The Ansoff Model, 2017)
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Illustration 2: The Ansoff Model

 Market development: In this, Trio Marketing can seek the growth opportunity by
providing services in an new market areas for attracting higher numbers of clients
towards company. It help in entering within new locations. As they are having better
competencies then they can develop their marketing services by using advanced
technology in new areas in an proper manner. Firms can easily deal in targeted market
effectively (Valler, Phelps and Wood, 2012). Product development: This strategy is developing their tools of marketing in order to sell
their services to previews firms. It is an effective strategy as its strength are linked to
companies demands. These tools and tactics will provide new growth opportunities as if
new marketing services will help in meeting needs and demands of the organisations. In
Trio Marketing, managers can decrease its time in market and develop their marketing
tools for promoting companies in an effective way.
 Diversification: This technique will help Trio Marketing to grow by diversification its
business in new market with their innovative and latest technology. Hence, it is less risky
as it require bot market and product development which is outside its main competencies
of company. In addition, organisation are not having ideas of new market as well as
preferences of other organisations. Trio Marketing can enter within new locations by
giving latest and innovative marketing services for another organisations.
As per this above strategies, Trio Marketing is using diversification and product
development techniques. In diversification, Trio Marketing is enhancing their business within
new geographical areas in UK as well as product development will help in providing innovative
and latest technology to other companies for promoting their brand effectively (Wu, 2015).
TASK 2
P3 Different sources of funding for organisation
It is essential of every company to have adequate amount of capital to conduct business
activities effectively for achieving purpose of growth. Along this, businessperson have plan for
enlarging firm to increase their market reach and customer base to enhance sales volume and
profitability. It is necessary that entrepreneur identify all financial sources which are present in
market for getting additional funds for expanding business. SME's have limited money which
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require to be utilised efficiently, so businessperson asses all tools and select best which provide
them amount at appropriate rate and time period.
Trio Marketing is taking contract which is “SOL-Marketing and design framework from
government”, for which they are involved in bidding process. Entrepreneur has made plan to
make bid for £200,000, but currently they have only £20,000. For this, company require to take
additional funds that is £180,000 from other sources to conduct business activities accordingly.
Different sources of funding (Li, Mobin and Keyser, 2016):
Bank loan: This is efficient tool which help business to have adequate money for
executing business operations for achieving goals and objectives. Bank provide loan in three
types which are short term (2 to 3 years), medium term (3 to 5 years) and long term (above 5
years). Benefit: Bank loan is appropriate technique for firms, as interest which is to be paid is
tax deductible as defined by government to promote SME's. Along this, businessperson
is able to take money at fixed interest rate and for certain time period.
 Disadvantage: Bank loan also have certain drawback which is decline in image of firm,
if management don't pay amount and interest on time.
Angle investors: It is another funding technique which comprises people that are
interested to invest in small firms to gain return of their money. These are individuals which
have skills, knowledge and experience about market conditions and different sectors to spend
money accordingly (MacLeod, 2013). Benefits: This is appropriate tool which helps individual to take money to start a new
venture by taking funds from investors which are skilled and talented.
 Disadvantages: Angle investors frame rules, set interest rate and time which affect on
businessperson which have to take money on their terms and conditions.
Crowdfunding: This is another source of funding which define group of people which
collect money to invest in business and generate money by getting profit share from
organisation. In this, internet is medium which help investors to remain in connection and make
decisions about flow of money, interest rate and time (Pallagst, 2010). Benefits: It is fast and adequate tool which help businessperson to have expert support to
enhance business ideas and market position.
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 Disadvantages: This tool doesn't have legal functioning which affect on business and
entrepreneur is not able to take benefits for government.
Therefore, entrepreneur of Trio Marketing uses bank loan and crowdfunding to have
remaining amount for bidding in government contract. From bank, company is taking loan of
£100,000 and £80,000 is taken by crowdfunding which help businessperson to secure themselves
from burden of interest which is more in bank loan than another. This help top personnel to
arrange funds for taking and execute activities for completing government proposal on defined
time.
Peer to Peer Lending: It is considered as a method of debt financing which assist
organisations to borrow or lend money without from official institution. In general, these types of
loans are subjected to payment on fixed rate of interests. For Trio Marketing, peer to peer
lending may provide best option for keeping its business ideas alive as well as expand its
operations also.
Advantages
 This method gives more flexibility in terms of loan amounts on fix terms and conditions. No requirement to make early repayment charges.
Disadvantages
 Interest rates are higher then commercial banks i.e. near about 7%- 10%.
 In addition to this, tax deductible and loans are not provided for small payments only.
TASK 3
P4 Prepare a business plan
Business plan
It is a systematic process of preparing a effective plan in which an organisation
mentioned its strategic objective, mission, vision, financial statement and many more. As it is
require to achieve firms goals and objectives in an efficient way.
Trio Marketing can make an effective business plan as to increase their marketing
services with the help of taking advantage of using innovative and advanced technology which
is described below:
Executive summary
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Trio Marketing is providing services to others companies in order to promote their
products for making better position within market place. It is an small firm as they provide
employment to approx 60 employees within the company. Firms started their business by
investing £250,000 (Ziari and et. al., 2012).
Mission
“To accomplish effective marketing tools for expanding goodwill of company”
Vision
“To provide services within various location and fulfil needs of their customers”
Strategy Objectives
The main objective of Trio Marketing is to enhance sales performance by 20% in
upcoming two years. For this purpose, the managers will follow SMART objectives where to
attain objectives, it has targeted majorly to small organisations who promoting and advertising
their businesses. In this regard, it adopt online strategy tool to bring awareness about its services
to targeted audience.
Internal analysis
Trio Marketing analyse their opportunities as well as strengths. It will help in grabbing
opportunities which are raised for their growth. Analysis are as follows (Barbour and Deakin,
2012):
Strength
 Trio Marketing is having strong branding among the clients.
 This organisation is giving services in geographical locations.
 Effective competency to implement innovative and latest technology.
Opportunities
 To capture the competitors market
 To expand their business online for more clients To develop their marketing services to satisfy their clients properly
Target market
Trio Marketing will target the largest companies for increasing their reputation and
expand their business within different locations. They are concentrating on attracting large
numbers of clients and increase their business online by using websites and social media
(Brinckmann, Grichnik and Kapsa, 2010).
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Marketing Mix Strategy:
This strategy is used to formulate best policies by which a company can gain high
competitive advantage. Therefore, in context with Trio Marketing, this strategy can be defined in
following manner:
Place: Trio Marketing has opened its business in competitive area of marketplace where
targeted customers can easy access it. This company has also online presence where audience
can get information about its services and acquire the same as well.
Product: Trio Marketing is providing services for other organisation for maintaining
their goodwill within marketplace. They are providing services by using innovative and
advanced technology.
Promotion: Managers of this company use various platform of social media to promote
its business at vast area of marketplace.
Price: This company offer its services on reasonable and competitive price rates to avail
large customer base.
Financial information
Trio Marketing is an small enterprise started their company by investing £20k in their
enterprises. In order to increase their funds firms are using bank loan and crowdfunding for
accomplishing enterprise activities effectively. In this, company should not exceed their finance
by £300,000. Therefore, organisations had decided to expand their business online as it is cost
effective. Trio Marketing cash flow statements are as follows:
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