Planning for Growth: A Report on Murrill Construction's Strategy

This report provides a comprehensive analysis of growth strategies for Murrill Construction, a small construction business. It begins with an introduction to growth planning, emphasizing the importance of continuous development and resource utilization. The report examines major considerations for evaluating growth opportunities, including Porter's Generic Strategies and PESTLE analysis, assessing political, economic, social, technological, legal, and environmental factors. It then applies Ansoff's Matrix to explore market penetration, development, product development, and diversification strategies. Furthermore, the report addresses financial aspects, identifying sources like bank loans and their implications. The report concludes with a critical evaluation of exit or succession options, offering insights into strategic decision-making for small businesses. Overall, the report provides a detailed overview of the challenges and opportunities related to business growth and financial planning for Murrill Construction.

PLANNING FOR
GROWTH
1

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Major considerations for evaluating growth opportunities within context of an organisation....3
Source of finance for growth :.....................................................................................................7
TASK 2............................................................................................................................................8
Business plan...............................................................................................................................8
TASK 3..........................................................................................................................................12
Critical evaluation of exit or succession options for small business and making a decision of
appropriate courses of action.....................................................................................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14
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INTRODUCTION
Planning for growth define as the procedure which is used for management of plans in order
to attain long term growth for the business organization. The main aim of this planning for
growth is to organize everything in a certain way through which organization will easily attain
and obtain goal of the business organization and optimum utilized their resources. It is essential
for business organization to grow in continuous way if they are work or same place and not take
risk for growing then organization will not able to maintain their position in market. For
understand this topic Murrill Construction has been taken. It is small sector organization which is
run their business in England an work for construction service they take contract of road, bridge
and build building in local area of England. This report contains about the element affect growth
of the organization, and Ansoff matrix of the Murrill Construction it also included the business
plan which define the growth planning of the organization as well as this report considered funds
and source required for growth of the organization.
TASK 1
Major considerations for evaluating growth opportunities within context of an organisation
Growth play major role in every organization and for growth management department of
the organization need to explore the opportunities and grabs the event which help them to
explore the business. For identify key resource it is essential for Murrill construction to know
their core value, competence their strength , resource which help in booming organization .The
chance all the relented factors which directly affect the growth of their business organization. For
the analysis they use Porter's Generic model which define below
Porter's Generic Strategies: This framework is established for organization to determine and
analyse their core competencies. It is require for firm to identify their main source and (Holz-Rau
and Scheiner, 2019).capabilities.
Cost Leadership: This strategy also effectual. In this to enhance the target market and achieve
competitive advantage in market manager reduce the price of product from their rival business
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organizations. In case of Murrill construction the organization is not able to use this policy as
they don’t have enough financial resource thus if they reduce price of their contract then they are
notable to generate profit.
Differentiation Leadership: For attain competitive e business advantage this strategy also
useful in this type of strategies business organization to attract their customer, offer unique
product, service and technique which is different from rival organization and useful and satisfied
the demand of customers. They are attracting customer. In regard with the Murrill construction
the firm offers best service in reasonable price and use effete raw material for construction work
and also design unique building structure thus they take competitive advantage.
Focus: At the end of the year the organization have 2 options and they just chose the one they
either decided to choose cost leadership or differentiate business strategy. Murrill Construction
choose differentiable pricing strategies as they don’t afford to reduce their price in the
competitive market. Although people get attract toward their construction design (Wang, Liu,
Li, and Chen, 2019).
PESTLE Analysis:
It is really necessary for the organization to identify their effect of external environment. With
the use of Pestle analysis technique manager could identify the effect of political, economical,
social environmental and legal environment effete on the running business activities. Following
are the Pestle analysis of Murrill Construction
Political factor: All factor which are correlated to management and verdict party in a nation
state or region is called supporting factors. It consists of factor such as regime policy, political
immovability, foreign operate policy, corruption and tax policy. Optimistic and unenthusiastic
collision of political factors on Murrill Construction are define below-
Positive impact: Government interference has prove to be useful for small and medium
enterprise. Administration in many countries believes that small organization are huge for trade
and industry growth and also make available employment to semi-skilled as well as uneducated
labourer. Murrill Construction are not able to carry their business operations without the
interference of political factors.
Negative impact: BREXIT agreement directly affect the policies of UK.. Businesses
organizations are suffers from many problem. Murrill Construction is also facing trouble
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concerning monetary flow and insolvency of funds. Since account presented in marketplace has
completed it have led to reduce offers of Murrill Construction.
Economic factor: All the essential elements that are associated to economic growth of a realm
are incorporated in economic factors. It include trade and industry growth, swap over rates,
interest rates, unemployment and rate of inflation, disposable incomes etc. Impact of economical
factors on Murrill Construction are define below
Positive impact: UK taxation policy on which Murrill Construction has its greatest
attendance is very moderate. It results in maximum disposable income with people. This
disposable income is invested in trade again and again and it lead to greater than before revenues
and income for Murrill Construction (Jentoft, 2017).
Negative impact: Whenever financial conditions are not sympathetic in a nation it leads
to little cash in bazaar and finally increase interest charge. Purchase power of clientele is
decrease due to it. Also in general cost of borrow wealth rises. Due to this public is not interest in
spending much money.. This whole series in financial surroundings may lead to decrease sales
for Murrill Construction.
Social factor: Business are run in society which is made up of several values and norms. It is
necessary for a commerce operating in society to esteem them. It include factor such as populace
growth, age, security emphasis, way of life, alter in predilection and taste. Positive and negative
impact of social factors on Murrill Construction are mentioned below-
Positive impact: People in UK believe in stay fit and eating healthy. This makes it easy
for Moma foods to pull towards customers. Products provide by Murrill Construction fit in well
with lifestyle of people which is beneficial for firm.
Negative impact: Murrill Construction may face challenge if there is any alter in
existence of people.
Technological factor: Science has gone a stretched way. In today's world expertise plays a very
key role in consecutively business. It include factor such as mechanization, R&D, scientific
consciousness, level of novelty, skill incentive etc. optimistic and negative crash of technological
factors on Murrill Construction are mentioned below-
Positive Impact: Due to common change and up shade in technology Murrill
Construction is able to make available new and inventive food which is also exceptionally
strong.
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Negative Impact: Positive and negative force of environmental factor on Murrill
Construction are mentioned below- Technological advancement are very expensive. Being a
small enterprise Murrill Construction cannot afford too expensive technologies. When its
competitors gain those techniques it proves to have a negative influence on firm (Ruiz, C. and
Conejo, 2015).
Legal Factor: Legal environment consists of all the rules, acts, laws which are defined in
legislature of a nation. Legal factor includes discrimination laws, consumer protection laws,
copyright and patent laws, health and safety laws etc. .Positive and negative impact of legal
factors on Murrill Construction are mentioned below-
Positive Impact: Murrill Construction follows all the laws applicable on it. This generate
positive icon of corporation . Also next labour law and reward laws appropriately help Murrill
Construction to keep its workers satisfied and stimulated.
Negative Impact: Any alter in laws belongings Murrill Construction negatively for once.
When readily available is change in Law Corporation needs to change its policy too. Till the
occasion new policy are implement loss of output is faced by organisation.
Environmental factor: Environmental factor refer to all persons rules and system which are
followed by a company in order to protect environment. Various ecological factor are carbon
emanation, waste supervision, greenhouse gasses act, environmental policy, anxiety from NGO's
etc. These are urbanized by government and NGO’s in command to defend the surroundings.
Positive and negative impact of environmental factors on Murrill Construction are mentioned
below-
Positive impact: Murrill Construction is using a range of habits to save atmosphere.
They support green milieu and plant trees at every unlikely location in the vicinity of them. They
use all the wastage of raw material which is recyclable. This builds companies reputation in
market and increases its goodwill.
Negative impact: Due to change in climate, weather or environmental policies
procedures, policy and system of a corporation might change. This proves to be bad for
corporation.
Evaluating growth opportunities with the help of Ansoff's Matrix
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Ignore Ansoff developed planning tool through which management department formulated
strategies for future planning. This matrix consist 4 strategies. It totally depend on the business
organization which strategy they choose for their organization they either use 2 or more then 2
strategies depend on the situation. Following are the strategies of evaluating growth
opportunities with the help of Murrill Construction
Market penetration: This strategies help in enhance the market of the organization. By
applying market penetration strategy organization only focus on new market they represent their
existing product and service into new market which helps them to enhance their area. The
Murrill Construction work or contraction and one they enhance their target market are to other
cities of England by providing effect construction services .For this they advertise they firm on
social media.
Market development: For maintain position in the market manager use new technologies and
services with the use of this they focus on new market and introduce new produce and service
into the new market. The Murrill Construction started their new construction work and design in
the new cities of UK (Ravadanegh, Jahanyari, Amini and Taghizadeghan, 2016).
Product development: It defines as the changes or alteration with the new product and service
offers by the organization. The company introduce and launch new product with the exiting
market to satisfy and attract their business customers. Murrill Construction developed new
building construction design as well as they also start up of new services to proved guiding to
public who invest in real estate in the suiting market It directly attract business customer and
their new product and building style also attract government.
Diversification: This strategy is based on the assumption that organization will be able to
generate profit when they entering into new market The Murrill Construction use new product
and serve into new market to expand their business in effective way to achieve the goals as well
as planning growth of the business organization for long term purpose.
Source of finance for growth :
Every business organization needs to run their business activities in effect way for this
they need financial resource. Business organization always suffers from financial problem bit is
also the main reason that they are not maintain their potion in the market .In context with Murrill
Construction following are the source through which they collocated their fiancé
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Bank loan: It define as the quantity of monetary resource required by organization they take i
from bank or other financial institution for specific time period. They pay interest rate on the
loan they taken. Bank loan may v for short, medium or long time period depend on the
requirement of the organization. Murrill Construction takes loan from British bank as well as
they also take loan from other private financial institutors.
Advantage Disadvantage
 Bank loan assist when a corporation
want cash for invest in share as well as
possessions for prospect success and
expansion of the company (Odhiambo,
Njanja and Zakayo 2014).
Bank accuse high attention rate from
corporation to pay back it in set period of time
that increases the price for SME company.
Bank loan is one of the admired sources for
finance new commerce course of action and
SME corporation.
Herein, one of the focal drawbacks of bank
credit is increasing compliances as well as
supplementary load on cost of goods.
Crowd funding: It define as the source of fiancé in which organization take large amount of
finance fro for financial institution to fulfil their needs.SME take this to run their business
actives in effective way they take it from large number of people.
Advantage Disadvantage
The advantage of taking crowd funding by for
Murrill Construction raise small amount of
fund from huge number of people or
organization for finance small and medium
business.
Hereby, the main disadvantage for Murrill
Construction is it takes a great amount of cash
or efforts for functioning commerce
productively.
Assess latent sources of funding
From this analysis it has been recognized that bank loan is much better option of financial for
Murrill Construction as it is sector and the form take low interest rate when they take loan from
bank as compare to crowd funding.
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TASK 2
Business plan
A business plan is define as a document which define all the vision mission object and
essential business activities in brief manner. It is a format in which all the financial projection
has been define in effected manner. Manager use business plan as it provide them guideline and
direction. Following are the business plan of Murrill Construction
Executive Summary: Murrill Construction
Is a civil engineering organization which is construed highway and building in UK. It is small
business organization which explores their business by proving best qualities of services.
Vision & Mission: The vision of this organization is to become the biggest construction firm in
England. Mission of this organization is to looking for long term growth by providing best
qualities of service to government and other users.
Goals: This is a statement which shows the target. Murrill Construction (Gu, Wei and Cook,
2015).
Goal of this organization to become biggest organization and most profitable firm in
construction field of construction.
Objectives: The main objected of this organization to use best kind of resource for their
construction work it helps in manufacturing best road and highway as well as other product two
of the construction.
Shareholder: expectations: They play vital role for run business organization. The Murrill
Construction
Made up with the trust of their stakeholder thus they formulate policies though which they fulfil
their shareholders interest by satisfying their services.
Employees: Human resource re the main source of revue as for grabbing all the opportunity and
providing best kind of material to the clients employers play effect role. At the present time the
organization have 58 employers which are engender with them. Murrill Construction
Formulate effective policies to satisfy their employee as well as they proved them security and
proactive work environment which help in hence in and motivating them. Even affect Brixit
agreement most of workers are belong from EU still the organization manage and un their work
to fulfil their project in effect way.
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Customers: They are the king of the market. For Murrill Construction
, government, local authorise and retailers are their main customer they deal for making contract
of highway and other. To satisfy their customer the firm build trust by working in ethical
manner.
Shareholder: They are the real owner of the organization thus the interest of these shareholder
are considered while formulation of business policies’ Murrill Construction
Plan to fulfil their shareholders exposition by providing them effected dividend policy.
STP Analysis: This strategy is used by the management department in order to identify and
recognized their target market. Murrill organization use this strategy after considering their target
market is. In order to attract their customers a build strong image in the mindset of their
customers
Segmentation: In this type of strategy of STP the market is divided by the organization in
various segment on the basis of their elements. The company divided market on the basis of
behaviour, age, gender, demographic religion or nation factor. After dividing the entire segment
the organization focus on particular group of market of customer for which they formulate their
polices. In concert o Murrill Construction they are focus on South England customer as they
have great future of construction business and they i rate of the work is comparatively high.
Targeting: In this section the organization is focus on fixed target of group of customer so that
they can including them by providing starting offer of their products. In context to Murrill
Construction the organization is proving attract service to also their major client local authorities
will also give them project of construction work.
Positioning: In positioning the organization focus on build positive image of the organization
towards their customer so that their potential customer not attract in rival organization. Murrill
Construction attract their customer by offering effect offers an they also promote their business
on social media they also give their contract on digital platform which help the origination to
build positive image and they also work in CSR so that public not take any wrong perception
regarding Murrill Construction (Davidson and Arman, 2014).
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Marketing Mix: It is a structure which considered price, product, promotion and place for
decision making procedure. Murrill Construction launch their new service of construction design
from of their target market customer so that they get attract towards the organization they
promote their business deign on social media and they use advertisement, survey conduct
interview which help ion build strong image and enhance the brand value of the firm with e
South England. They use effective promotional strategies to attract their customers.
Financial projection: Financial play important part for the organization as though the correct
financial policies business is not survive in the market. Thus it been developed which maintain
and manage all the essential requirement of the potential resource as well as they find out their
future income and expenditure by the financial projection. They take decision regarding the price
of their project. The requirement of cash flow is define below
From this it has been analyse that the organization need to invest 10000 for launching their new
construction designing service for their customers A s well as their expected sell of this ne serve
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world be 2500 units that means , more than 2500 order are received for using the designing
building serves of the Murrill Construction.
Monitoring and Controlling: Business organization run their activities by applying the
principle of management. Monitoring and controlling are the part of it. Management department
of Murrill take decision use effective controlling technique through which they measure their
business activities as it is construction organization and it is really essential for the firm to
monitor each activity to control cost of their project and fulfil their project work each the given
time period.
TASK 3
Critical evaluation of exit or succession options for small business and making a decision of
appropriate courses of action
Business organization need large amount of financial resources for run their business
ineffective way. Proper availability of finance helps in work all the management function in
suitable way. Through which business can able to pay their debt liability day to day manner. it is
really hard for the small business organization to maintain their position in the competitive
market as with the changes of time the competition rate has been also increase thus they need to
take effective decision though which they can build and maintain their position in the market
place. Murrill Construction organization is explore their work in the overall UK and for this they
need to deal with other organization and also face had competition own build construction firm.
For effectively use financial resources manager take some policies through which they can use
financial resource (Lewyn, 2015).
Merger & Acquisition: This strategy useful in expand the organization business. In merger firm
expand their business by merge in other organization and in the strategy of acquisition firm hire
and control other firm or small business organization to expand their business they take asset as
well as their liability. This is most useful method to effectively run their Murrill Construction.
Acquisition: It also affect strategy for the business organization. In the case of merger the
organization lost their real identifies but in case of acquisition the organization take all the part
asset and liabilities of the other firm and make themselves strong. They have tall the asset value
as well as they take the benefit of goodwill the weak organization build up in the market place
they can easily grab the target market the weak organization has been build with the basis of
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