Comprehensive Growth Plan: Matrix Analysis, Funding & Succession

This report provides a comprehensive analysis of growth planning strategies for Brain Labs, a UK-based medium-sized organization specializing in programmatic, paid search, and paid social services. It evaluates the effectiveness of the Boston Consulting Group (BCG) matrix and the McKinsey matrix in determining the company's strategic market position. The report explores the four elements of the Ansoff growth matrix—market penetration, market development, product development, and diversification—to identify opportunities for business expansion and increased market share. It also discusses the advantages and limitations of various funding sources, including grants, savings, subsidies, bootstrapping, and angel investors, to aid in selecting suitable funding options. The business plan outlines the aims and objectives of business expansion, estimated costs, timelines, and other influencing factors. Finally, the report assesses different exit or succession strategies for small businesses, highlighting their respective advantages and disadvantages, to provide a holistic view of business growth and sustainability. Desklib is your go-to platform for accessing past papers and solved assignments to enhance your understanding.

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Brief history of Boston consultancy group matrix and McKinsey matrix...................................3
Difference between Boston consultancy group matrix and McKinsey matrix............................4
Ansoff growth vector matrix to evaluate growth opportunities...................................................5
PART 2 Business plan.....................................................................................................................9
Overview......................................................................................................................................9
Mission ........................................................................................................................................9
Business objectives .....................................................................................................................9
Description of products & services ............................................................................................9
PESTLE analysis ........................................................................................................................9
SWOT analysis .........................................................................................................................11
Competitors analysis .................................................................................................................12
Assess exit or succession options for a small business and it's advantage and disadvantage....12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Growth planning is a strategic business activity that makes managers able to plan as well
as measure growth in their revenue (Ahmed, Meenar and Alam, 2019). This present study is
based on Brain labs that is a medium size organisation of the UK. It provides programmatic, paid
search and paid social services. It wants to grow its business and for this purpose, it wants to
make use of effective strategies. This study is going to discuss effectiveness of Boston
consultancy group matrix and McKinsey matrix as it helps out company in knowing its strategic
current position within market. Further, it will discuss all 4 elements or strategies of Ansoff
growth by which this company can expand its business and can increase market share.
This study will discuss advantages and limitations of different sources of funding such as:
grants, savings, subsidies, bootstrapping and angel investors. Evaluation of each source make
enable to employers in selecting effective and suitable source of funding. Business plan also
plays a vital role as it consists of aim and objectives of expansion of business, estimate cost and
time and other factors that might affect overall performance of business. It will then discuss
some exit or succession strategies.
PART 1
Brief history of Boston consultancy group matrix and McKinsey matrix
Boston consultancy group matrix: BCG matrix is an effective planning tool that
represent company's products and services in a graphical manner. This graphical representation
of products and services help out companies in deciding as which products need to be sold,
which products need to be kept and which needs to be invested more. This tool is beneficial as it
can protect businesses from becoming failure and on the basis of this evaluation as well as
keeping effective products, companies can expand their business and make a tremendous growth
(Birafane, Liu and Khalikov, 2020). In other words, it can be said that it helps out companies in
measuring value of their business and accordingly they can make changes in current strategies
for being in the competition.
GE Mckinsey matrix: In the year of 1970, this model was developed by McKinsey and
consultancy group in order to help GE top cope with its strategic decisions on a corporate level.
This matrix combines 2 main dimension such as: industry attractiveness and competitive strength
of businesses. This model also helps out company in analysing its strategic business units as well
as product lines. Industry attractiveness factor refers an ease with which business unit will be

able to accrue profit in the industry. Businesses need to consider number of factors for this
dimension such as: industry size, industry profitability and entry exit barriers (Untoro and
Siagian, 2021). It helps out companies in prioritising investment needed for each business unit.
Industry attractiveness consists of many factors that may help this medium size company in
determining competition level. Some factors that this company needs to consider for industry
attractiveness and taking competitive advantages include: industry size, long run growth rate,
industry structure, availability of labour, market segmentation, seasonality and changes in
demand.
Difference between Boston consultancy group matrix and McKinsey matrix
In regard to BCG matrix, it can be said that this tool is being used by large corporations in order
to decide the ratio in which organisational resources are allocated among business segments.
Whereas, GE matrix help out companies in deciding their strategies as per the different product
lines. Some differences can be known between these two effective models in a detailed manner
such as:
Basis of comparison BCG matrix GE matrix
Meaning It is a growth share and effective
planning tool that represent
business growth and market share
that is being enjoyed by the firm in
a graphical manner.
It is multifactor portfolio matrix
that is being used by companies
for making strategic decision for
different product lines based on
the position of products in the
grid.
Objective The main aim of developing as well
as using this matrix or planning tool
is to help out companies deploy
their resources among different
business units (Kieltyka, Hiep, Dao
and Minh, 2022).
Aim of using this tool is to
prioritise investment decision
among different product lines.
Factors It analyses market share and market
growth.
It helps in identifying business
growth and industry
attractiveness.
Number of cells It has four factors of matrix. It consists of 9 factors.

Measurement tools Single measure is being used. Multiple measures are being
used.
Classification It can be classified into 2 degrees. This tool is being classified into
3 degrees.
In BCG matrix, products are being divided into 4 categories with different names such as:
cash cows, stars, dogs and question marks. Products that are being categorised under stars,
represent those products that are growing at a faster rate and require huge investment for
maintaining current position in the market. Cash cows represent those products whose growth is
slow but still hold high market share. Question mark indicate and represent those products that
possess a low market share within high market share. So, company needs to invest high for
holding their shares (Semenchuk and Vasiliha, 2020). Dogs represent those products that neither
have high market share nor high market growth. These products generate cash in a manner so
that they can maintain themselves but cannot survive for the long run.
On the basis of above discussed strategies, it can be said that Brain labs can make
investment decisions for their products and services and can expand business by focusing on
products that can generate high revenue and has high growth rate. In addition, it can also be said
that BCG matrix is easier to use as former is easy to draw because of its number of cells. So, on
this basis, it can be said that Brain Labs medium size company can grow its product line by
knowing their growth rate and market demand.
Ansoff growth vector matrix to evaluate growth opportunities
As it is known that Brain labs want to expand its business and due to changing environmental
factors, it has become difficult to select effective growth strategy. Ansoff growth matrix has
made companies able in deciding and selecting strategies as per their current market position and
other factors. This growth matrix consists of 4 sub-strategies such as:
Market penetration: In this growth strategy, companies focus on selling their existing
products in existing markets. Companies that focuses on this growth strategy are keen to achieve
some 4 objectives such as: increasing market share of current products and for accomplishing
this goal, companies need to focus on changing their pricing strategies, sales promotion and
advertising. Other objectives include: securing dominance of growth market, restructuring a
mature market and increasing usage by existing customers (Dawes, 2018). As compared to other

growth strategies, this is an easier strategy because in this strategy, companies do not need to
take risk. This strategy is being used by small and medium size of companies that wants to
increase market share and want to make customers’ base.
Market development: In this growth strategy, businesses focus on selling their existing
products into new market. This strategy is being used by those companies that want to expand
their business into other markets and have high growth rate of their existing products. Some
ways by which, companies can make successful usage of this strategy include: focusing on new
geographical markets that have high growth, changing packaging of products or making it
attractive. By making use of effective and new distribution channels as well as different pricing
strategies as per the product lines, companies can make themselves beneficial by using this
growth strategy.
Product development: As with name itself, it can be said that in this growth strategy,
focus of businesses is on development of new product into existing market. This growth strategy
is being used by those companies whose existing products do not have high growth rate. Those
large companies that wants to increase market share also can use this strategy for example:
Unilever, Tesco and others. For becoming successful, companies need to focus on some areas
such as: innovation, research and development, identifying customers’ needs and being first to
market.
Diversification: It is quite risky growth strategy as in this strategy, companies focus on
introducing new product in new market. For protecting itself against failure of business
expansion, companies need to have a clear idea as what it wants to gain by using this strategy,
how it will attract customers and honest assessment of risks (Khajezadeh and et.al., 2019). For
making the right balance between risks and rewards, companies need to focus on diversified
marketing strategy and can focus on improving relations with customers and suppliers as well.
On the basis of above discussed strategies, it can be said that market penetration and
product development will be good for Brain labs company because it is a medium size company
and does not have much investment capacity. So rather introducing new products and rather
entering in new market, it can increase market share by improving existing products.
Benefits and drawbacks of each source of funding
When companies want to expand their business then they require fund so that they can invest in
marketing and other activities. Investment should be done in an effective manner and for this

reason, companies need to identify and select effective sources of funding. There are number of
sources from where, small and medium size companies can seek funding requirements such as:
Friends and family: It is the most common approach of source of funding in which
businesses contact to their closest connections. They ask for investment from their family and
friends in return of interest on investment amount (Edwards, 2021). Along with this, they use
their personal savings. It should be the first source so that they can identify the requirement of
funding amount and accordingly they can approach to other sources of funding. This funding can
be known as angel investors as they have keen to help small and medium size companies.
Advantages
 Flexible and easy availability.
 Do not require documentation.
 Lower interest needs to be paid.
Disadvantages
 Messed relationship as sometimes it may affect relations.
 Limited legal protection and sometimes it may lead problems.
Government funding: Government agencies provide financing such as grants and subsidies
that may be available to business. Getting grants is the toughest process as there is a huge
competition in this and employers need to strive hard as they need to perform number of
activities. Number of details need to be provided by companies if they want to take funding from
this source such as: detailed project description or reason of funding, detailed work plan with full
cost, explanation of benefits of project, capabilities of business to become successful and
completed application forms.
Advantages
 Widely availability
 It boosts credibility
Disadvantages
 Companies become contractually bound.
 These are short term solutions.
Bank loans: This source of funding is the most commonly used but companies need to select
banks that fulfil their needs criteria as different banks provide different benefits. For taking
funding services, businesses need to have sound business performance and record. Banks take

personal guarantee and for that businesses need to make banks sure that their business plan will
make them beneficial (Darmouni and Siani, 2021).
Advantages
 Fixed interest rate.
 Arrangement fee that is paid at the start of the loan.
Disadvantages
 Longer process and number of terms and conditions.
 Loans are not flexible.
Venture capital: It is a suitable and effective funding option for those who wants to expand their
business and want to increase market share. Venture capitalists are professional investors that are
actively involved in business management. They play a vital role in setting targets, milestones
and giving advice to business about ways of becoming successful.
Advantages
 Large amount of capital can be taken
 Help in managing risks
Disadvantages
 Funding is scare and difficult to obtain.
 Funder ownership stake can be decreased.
On the basis of above discussed sources, it can be suggested to Brain labs that it can make use of
funding from personal savings, friends and family as well as bank loan from securing itself
against lawsuit.

PART 2 Business plan
Overview
Brain labs is private company which is owned by Daniel Gilbert. This is a marketing agency that
led-data, which helps the businesses in building experimentation-led marketing by the way of
display, analytic and conversion rate optimization. This company was founded in 2012 and it's
headquarters are situated in London.
Vision
Expansion of business all over the world
Mission
Brand labs ltd wants to change the digital advertising future – they have started this with their
own mindset, they will not teach the old marketers about coding, math etc instead of this they
will directly hire scientists, mathematician and will teach them the new technique of marketing.
They want to build the company as the best company in which every employees wants to work
for- it means the company will provide the best environment to the employees which means fun
while working.
Creating the company as the most successful marketing agency in the whole world- time by time
brain labs are expanding themselves and creating more job opportunities.
Business objectives
Their main business objective is to build customer all over the world and becoming the king of
digital marketing across the world, profit is also the main objective of brain labs but they are
preferring values over work. Which may help the brain labs in speedy growth in the world.
Description of products & services
Marketing analysis
PESTLE analysis
 Political factors: These factors plays up a vital role in knowing the political factors that
may impact Brain labs big term profitability in particular market or nation. Brain labs is
operating as an advertising agency in London and many cities which exposes the
company to many kinds of political environment and political risk, although the political
environment of a country is same but mainly it differs from locals to locals. Brainlabs
have to look for some certain factor before investing in new market or establishing there

enterprise in new country, these factors are as follow:- stability in political environment,
importance of digital marketing in economy of country, Risk of invasion of military,
corruption level, taxation policy, wages legislation, important employee
benefit(LeCounte, J.F., 2020).
 Economic factors: The factors of macro environment such as – rate of inflation, rate of
saving, rate of interest, rate of foreign exchange etc. determines the AG and AI in the
economy and the market environment factor such as competition rules directly affect the
advantage of competition of firm, there are some economic factors that brain labs should
keep in mind while going to work in new environment :- interest rate, discretionary
income, labour cost and productivity or return in economy, host country's competitive
advantage and service sectors of the country(Giménez,2020.).
 Social factors: Main social factors that the leadership of Brain labs ltd. Should analyses
are as follows:- demographics of area, population of area, attitude, leisure interest. And
most is to get to know whether the society is encouraging entrepreneurship or not.
 Technological factors: Adaptation of new technology in growing very fast and the
technology that Brain labs ltd is using is very innovative and their idea to make them use
by is more creative but still top management has to make a technological analysis which
should involve knowing some important impacts such as Impact of technology on
offering of product, diffusion rate of technology, impact on value chain, Impact on the
structure of cost (Kurland and McCaffrey, 2020).
 Legal factors: The legal environment of every country is different, any firm should have
to carefully evaluate the legal factors of the country before entering in it's market
something which is legal in other country can be illegal in another country. There are
some legal factors that the top management of Brain-labs should analysis before entering
in the new market these are as follows:- Anti-trust rules of the country, laws regarding
discrimination, copyright law, patents law, law of consumer protection, law of e-
commerce, safety law, health law, protection of data(.Mazzarol, T. 2020. ).
 Environmental factors: Every market have different environmental standards which can
affect the market standing or profitability of the organization in the market (Coad and
Kato, 2021). Not even in different countries, even in the states of the countries have
different environment. For example in U.S – There are some places which have diverse

liability clauses of environmental disaster. So before getting into new market Brain labs
should analyses these factors before hand such as weather, climate change,
recycling,attitude towards green or ecological products, endangered species etc. all this
conclude that your business should not harm any of them(Meglio, O. 2019.).
SWOT analysis
Strength:
 from last 10 years the brain-labs
have made a strong distribution
network with some big brands like
invesco, mars, American express.
 Successful product innovations
 Reliable suppliers- Brain labs have
the most reliable suppliers to have
they can rely on, which helps the
company in overcoming the
problems in supply chain (Fendri,
C.2019.).
 High level of satisfaction of
customer- Brain-labs is famous for
it's value objective as they work for
the values of customers, it creates
good equity of brand among the
regular customers.
Weaknesses:
 company is not able to tackle the
threats of new entrants
 days inventory of brain labs is
higher In comparison to
competitors
 success is limited outside the
core- Brain labs is one the
leading organization of its sector
in its area , it has also faed
changes of diversity in culture
shifting to change of
product( Mura, L., 2020.)
Opportunities:
 The development in market will
lead to weaker the work force in
competitive advantage and may
enable brain labs groups to increase
its competitiveness among
competitors.
 low inflation rate will make the
Threats:
 different countries have different
liability law and brain labs may
be get exposed to various claims
given change in rules or
regulation of market.
 Growth in strength of local
distributor can also affect brain

market more stable and will enable
enable credit on lower interest rate
to the customers of brain lab.
labs. By getting their hands off
from local cities or town brands.
 New environment laws
Competitors analysis
Basis of difference Brain-labs GREEN LIGHT UNIQUE
Number of
employees
1800 employees 400 employees 418 employees
Profit of
organization in
previous year
:15.7m $2.2 m $1.32m
Leadership style transformation transaction democratic
Type of firm Privately owned partnership Privately owned
Assess exit or succession options for a small business and it's advantage and disadvantage
Exit option for small business
Making an exit option strategy doesn't seem like a good step but it is necessary to make it when a
person start the organization or plan to start the organization. Exit strategy involves the way how
a person will leave the business, it also states that what will happen to your organization when a
person will leave it. Each and every businesses needs an exit strategy, it can also be said as the
transfer of ownership, when any of the owner decides to take retirement. Some important notes
that have to be kept in mind while making strategies(Römer-Paakkanen, 2019.). these are as
follows:-
 time period (for how much time a person want to be in businesses
 analysis of your financial situation and expectation.
 Creditor or investor who wants to be compensated.
There are five common exit strategies for small businesses:-
Liquidation - It is the process of closing the business and selling its resources for paying the
amount to creditors or shareholders. There are mainly 2 ways to do this-