Guildford Tyre Company: Business Plan for Strategic Growth and Funding

This report analyzes the growth strategies of Guildford Tyre Company, a small tire manufacturer, exploring key considerations for evaluating growth opportunities, including competitive advantages and PESTEL analysis. It assesses opportunities using Ansoff's growth vector matrix, examining market penetration, development, product development, and diversification. The report also discusses various funding sources like bank loans and peer-to-peer lending, along with their benefits and drawbacks. Furthermore, it details the creation of a business plan, including financial information and strategic objectives for scaling up the business. Finally, the report considers exit or succession options for small businesses, outlining their advantages and disadvantages, providing a comprehensive overview of business expansion and financial planning.

Planning for Growth

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key considerations for evaluating growth opportunities and considerations.........................3
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................6
TASK 2............................................................................................................................................7
P3 Sources of funding available to businesses and their benefits and drawbacks.......................7
TASK 3............................................................................................................................................9
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business....................................................................................................................9
TASK 4..........................................................................................................................................14
P5 Exit or succession options for a small business explaining benefits and drawbacks...........14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business growth is very much exciting factor for an organisation and it can be possible
by bring changes in business activities. It is a strategic business activity that helps to owners to
plan and measure growth of an organisation regarding their revenue. It permits them to allocate
resources for centred effort in adopting changes by bringing digital disruption and differentiation
in their products and services. There are some steps that help in reaching definite goals and
objectives to bring growth in organisation by bringing major changes in areas that are very much
crucial for an organisation. This report is based on Guildford Tyre Company which is a private
organisation that manufactures tyres and established in year 1976. They also deal in many
spheres in which reparsing, brakes, air conditioners and batteries with many more sectors. This
report is based on growth opportunities that exist before an organisation to lead in competitive
market with focus on various strategies to evaluate opportunities to remain always leading. To
attain growth organisation have to evaluate funding sources and their benefits with drawbacks
and to plan organisation have to prepared a business plan by gather various kinds of information
and strategic objectives in proper way.
TASK 1
P1 Key considerations for evaluating growth opportunities and considerations
Every business organisation always enlarges their business opportunities and it is very
much essential for a small business to grab opportunities in effective manner (Barbour and
Deakin, 2012). To enlarge businesses opportunities organisation have to build an efficient
business plan and polices. Guildford Company of tyre which is a small business consists of fewer
employees that give their services. It is very much obligatory to grab opportunities in proper way
to attain organisational goals and objectives in proper way.
Competitive advantage
Competitive advantages are one of the most important factors for an organisation to
produce goods and services at cheap cost to bring desirable goals and objectives (Beatley, 2014).
Guildford tyres which are a small tyre manufacture company that to attain growth design and
develop strategy that helps in gaining competitive advantage. To attain competitive advantage
organisation have to follow or build some strategies that are as follows:
Competitive advantage milestone for advancement

To attain competitive advantage organisation have to accumulate resources, capabilities
and core competences that helps in evolutes’ various factors. To evaluate competitive strength of
an organisation they use porter's generic strategies that are as follows:
Cost leadership
Cost leadership is one of the most important tactics and plan that helps in build an
distinctive strategy by setting price at low rate (Chapin, 2012). In context of Guildford Tyre
Company they avail various kinds of tools and methods that help in evaluate needs and demands
of consumers and accordingly organisation plan to expand.
Differentiation strategy
In that strategy products and services should be offered in innovative way that helps in
create brand loyalty in front of consumers and enlarge business opportunities (Denton, Forsyth
and MacLennan, 2017). That strategy and tactics helps to evaluate major areas in which
innovation is very much potential for an organisation and accordingly they conducting research
to remain always competitive in market. In context of Guildford Tyre Company they use strong
quality products and at low cost that helps to remain always competitive in marketplace.
Cost focus
The organisation Guildford Tyres company majorly focus on providing product and
services that are innovative in nature with low cost. With the help of various strategies,
organisation can be able to find out major spheres in which sphere major improvements are
necessary to reach at desirable goals and objectives. By conducting market research and analysis
before launching a new product or service in to market. For instance various kinds of strategies
and tactics help to organisation to develop products and services as per the requirement of
consumers.
Differentiation focus
The major market and consumers of Guildford tyre company by enhancing innovation in
their products and services that help in enlarge business opportunities in better way. By adding
features that are major demanding areas of consumer needs and wants that directly and indirectly
enhance brand loyalty in marketplace. With the help of differentiation strategy organisation can
be able to compete in competitive environment and gain sustainability in market.
Competitive advantage for opportunities for growth:

For every organisation to attain growth and enhancement is very much obligatory to
survive for long term in market place, organisation with help of PESTEL analysis can understand
the growth opportunities exist in market, capabilities of organisation with various operations that
took place that are as follows:
Political Factors
It is very much crucial for an organisation to evaluate each and every factor before
expand market share (Galland, 2012). In context of Guilford Tyres Company that aimed to
expand in market of Spain and before expanding in that market it properly evaluate each and
every factor such as policies, rule and regulations and many more factors so that if it faces any
kind of barrier, organisation can adopt measures to reach at desirable outcomes in better way. So
it is very much important to evaluate each and every factor before expanding in other market to
enlarge business opportunities in better way.
Economical Factors
Economic factors are very much important for an organisation to deal in effective manner
while operating in foreign market (Glock, Jaber and Zolfaghari, 2012). In context of Guildford
tyre company which expand its market in market of Spain so for that they have to evaluate
various factors before going in that market in which credit rates, inflation rates, purchasing
power of consumers and many more factors helps to an organisation to take important decisions
before expanding in foreign market scope in positive manner.
Social Factors
In social factor consist of norms, values and beliefs that are very important for an
organisation to build a distinction image in front of their consumer base in positive manner. In
context of Guildford Tyre Company before expanding in foreign market they evaluate the needs
and wants of their consumers, their purchasing power and taste and preferences and their buying
habits are all important factors that are very much important to reach at desirable goals and
objectives in better way.
Technological Factors
For an organisation to remain always competitive in market place they have to build
products and services that are technologically advance that helps to remain always in leading
position in market. While expand in market organisation have to evaluate tools and techniques of

their competitors so that they can accordingly adopt technology to remain always competitive in
market place.
Environment Factors
Environment is one of most important factor in which climate, surroundings and weather
conditions are crucial while expand business in competitive world (Horowitz, 2017). In context
of Guildford Tyre company that to attain opportunities firstly evaluate environment that
favourable or not as per their requirement to gain long term growth in market. So these factors
are very much crucial to gain economic advantage for an organisation to deal with competitive
market.
Legal Factors
While going and expanding business in foreign market organization have to evaluate
various laws and regulations of an country so that they take proper actions before going into that
particular country in positive way (Keough, 2015). In context of Guildford tyre company they
properly evaluate working conditions and labour laws before going in that market to remain
always competitive in market for long time.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
To grab opportunities organisation have to not only evaluate external factors but they also
have to evaluate their inner strengths and weaknesses that can be possible by using various
models that are as follows:
Market penetration
In that stage of model organisation expand in existing market with existing products and
services by using various ways in which by lowering their prices, spreading awareness among
people and by enhancing promotional activities that are helpful for an organisation to lead in
market by giving delighted experience to consumer base in positive manner.
Market development
With the help of that strategy organisation aimed to expand in new market with existing
products and services and it can be possible by giving products that possess quality of
uniqueness by giving packaging that is attractive enough (Li, Mobin and Keyser, 2015). with
various kinds of distribution channel to reach at large no. of consumer base so it is very crucial
strategy for organisation to remain always competitive in market place.
Product development

In that strategy organisation aimed to expand in market by expanding new products in
existing market place to attain growth and sustainability. The new product and services that
offered by that organisation is to repair vehicles at door step that eliminates problems of
consumers and helps to remain always competitive in market place. So these strategies are very
much important for an organisation to deliver right kind of products and services to the ultimate
consumer in desirable manner.
Diversification
In that kind of business strategy organisation planned to expand in new market with new
products and services by evaluating needs and wants of their consumer base. That kind of
strategy proved highly risky as organisation planned to expand in totally new market place. In
context of Guildford Tyres Company they conduct through research and evaluation before going
in another market which is totally new for them but helps to remain always competitive in
market place (Keough, 2015).
Hence, it can be evaluated that organization always have to plan to expand their market
by various tools and techniques to remain always competitive in market place.
TASK 2
P3 Sources of funding available to businesses and their benefits and drawbacks
For an organisation to remain always stable in competitive marketplace, they have to build
plans and tactics. Before that they have to accumulate financial resources that help to attain
organisational goals and objectives in proper way. Here are some sources of funding with their
pros and cons that are as follows:
Loan from bank- It is one of the most easily achievable and systematic type of funding source
especially for the Small enterprises (Lu and Yu, 2014). Banks provided funds to organisations
for fixed time period with pre determined interest rate that proved beneficial for both
organisation as well as bank also. In context of Guildford Tyres Company can raise funds from
those sources because it is secured in nature.
Benefits- This includes:
 As it charges low interest rate in comparison to other sources of funding.
 With the help of that source organisation by fixing period of instalments and accordingly
can repay their loans.

Drawbacks: The drawbacks are:
 The major drawbacks of that source are that it takes long time to raise funds because
there are lots of formalities exist in that system.
 Sometimes organisation has to pay instalments as per the pre determined time period and
if organisation not found to give that bank seize their property.
Peer to Peer Lending- This is considered as financial innovation and ideas which coordinate
borrowers who are searching for unsecured loans with those of investors in order to get high
returns (Mason, 2015). In this type of funding, person can take money without helps of financial
institutions. This type of funding is not suitable for Guildford Tyres Company because it is
unsecured and not helpful and useful for expansion of business.
Benefits- This includes:
 This carries low cost of interest as compared to others.
 For early repayments, it does not charge any additional money.
Drawbacks- It includes following:
 It does not have free tax interest and huge money.
 The person possessing high credit score can easily get loans which is drawback of such
source.
Overdraft- It is the type of funding facilities that is given to individuals and firms when they
are making payments from their current accounts which is exceeding shortage of cash (Rydin,
2013). It is provided for shorter time period by bank to individuals and firms. It is flexible type
of funding sources which can be used by organisation. It carries both pros and cons which are as
follows:
Benefits- This includes:
 Money can be arranged quickly because of flexibility in nature.
 The borrower has to pay interest for overdrawn amount of money.
Drawbacks- The drawbacks can be:
 This type of borrowing can be taken at anytime from financial institution.
 The more amount of overdraft taken leads individuals and firm to decrease credit
score card.
Angel Finances- This is defined as that sources which provided funding to new start up
firms or business. It is appropriate for those who want to expand their capital at market.

Guildford Tyres Company can acquire such funding because it does not carry any risk and
collateral security. It carries some advantages and disadvantages which are described below:
Benefits- The benefits are:
 It carries less risk from other financing debt.
 It does not require any collateral security for taking funds.
 This type of source does not require monthly interest and payments.
Drawbacks- The drawbacks can be following:
 There is more control in such business.
 It is time consuming for investors.
TASK 3
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business
For getting success and growth in competitive market, it is very essential for organisation
to make effective goals and objectives for business (Schetke, Haase and Kötter, 2012). In order
to expand enterprise in dynamic and competitive surrounding, company need to make business
plan which should include information about vision, mission, policies, strategies, marketing plan
and others. The element of planning procedure includes monitoring, designing, producing,
controlling, operating, implementing, distribution and others. With this firm can avail
competitive advantage and enhance their profitability and productivity. Guildford Tyre Company
is expanding business in Spain so it need to prepare business plan for achievement of goal and
objectives that is given below:
Concept of Business
This is defined as procedures that consist of various information about product, services,
company, mission, audience, strategic objectives, unique selling options and others (Unkelbac
and et. al., 2014). This can include information of new, unique and innovative products. The
concept of business which is followed by Guildford Tyre Company is described below:
Organisation Product and Services- The organisation named as Guildford Tyre
Company is small firm in United Kingdom which deals in various products and services. The
respective organisation is providing products such as brakes, exhausts, mobile tyre fitting, air
conditioning, vehicle diagnostics, batteries and others. This follows concept of customisation

where requirement of consumers is known and accordingly manufacturing is done. It has
targeted auto-mobile companies manufacturing car products.
Vision and Mission of Firm- Guildford Tyre Company manufactures vehicle products
which are based on customisation for achieving maximum profits. In order to run business in
competitive market, it is necessary to set mission and vision statement for organisation. The
mission is to expand and sustain image in market by providing quality goods and services in
order to increase profits. Similarly, mission is providing innovate and quality products to
consumers for fulfilment of their requirements in best possible manner.
Operational Strategy- The operation strategy of Guildford Tyre Company is
customisation driven in order to design products and services for fulfilling their requirements.
This strategy assists in enlarging market share and enhancement of profits (Wu, 2015).
Unique Selling Proposition (USP) - The USP used by Guildford Tyre Company is
private equity capitalisation. Under such strategy they sell specified section of firm to another
organisation for particular time period which can be 3 to 5 years. This is executed through legal
process and both parties have to performed agreement process. For example, respective
enterprise is selling 70% of their portion to other car manufacturing company.
Strategic Objectives- The objectives set by Guildford Tyre Company are as follows:
 To expand business into new market with new services for increasing 20% profits in next
5 months.
 To achieve goal and objectives high quality goods and services should be provided to
users.
Market Analysis
In order to analysis market, SWOT analysis is used by Guildford Tyre Company which is
described below:
Strengths Weaknesses
 They possess strong research and
development department.
 Guildford Tyre Company has
productive and loyal employees for
achievement of goals and objectives
and ready for acquiring changes.
 Ineffective distribution channel
 Air conditioning products feature is
not highly advanced from their
competitors.

 They have loyal and trustworthy
consumers that are advantage for
business.
 It supplies high quality good at
reasonable price.
Opportunities Threats
 They have opportunity to grow
economy.
 Easily expand business at international
market.
 In order to design products innovation
and new technology can be used.
 Other company is exporting tyres and
products of car at cheap rate.
 The number of competitors in this
filed in huge which creates threat for
Guildford Tyre Company.
Financial Plan
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500 4200
Total inflows 10000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100

August September October November December Jan
1000 2000 800 1200 1500 3600
1000 2000 800 1200 1500 3600
200 300 100 600 300 2000
400 500 100 100 400 300
600 800 200 700 700 2300
400 1200 600 500 800 1300
16100 16500 17700 18300 18800 19600
16500 17700 18300 18800 19600 20900
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250