Analysing Growth Opportunities and Funding for Rebellion Developments

This report provides a comprehensive analysis of growth planning for Rebellion Developments, a video game, comic, and book publishing company. It begins by analyzing key considerations for evaluating growth opportunities, including self-analysis, market research, risk assessment, and diversification. The report then evaluates growth opportunities using Ansoff's growth vector matrix, exploring market penetration, product development, market development, and diversification strategies. Furthermore, it discusses various options for growth, emphasizing competitive advantage within an organizational context. The report also assesses potential sources of funding available to businesses, such as personal investment, equity financing, and personal savings, and discusses the benefits and drawbacks of each source. Finally, the report touches upon exit plans and the importance of a business plan, providing a holistic view of growth management and financial strategies for Rebellion Developments.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
P 1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context..........................................................................3
P 2 Evaluate the opportunities for advantage growth applying Ansoff’s growth vector matrix. 4
M 1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context.................................6
D 2 evaluate specific options and path ways for growth, taking into account the risk of each
option and how they can be mitigated.........................................................................................6
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................7
M2 Evaluate sources of funding and adopt appropriate source of funding.................................8
D2 .option and pathway for growth, taking into account the risks of each option and how they
can be mitigated...........................................................................................................................9
LO 3.................................................................................................................................................1
Business plan for Rebellion developments..................................................................................1
LO 4.................................................................................................................................................4
Exit plan for Rebellion developments.........................................................................................4
Conclusion.......................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
A strategic activity in firm that allows the business proprietor to plan & track organic
growth in their income is known as growth planning. The tactics or strategies which are involved
in a growth plan mainly focus on revenue generation. A growth plan generally contains the
components of business where consumer can see value. Rebellion Developments, is the England
based company and deals in video games, comics and books. Rebellion Developments was
founded by McLean in the year 2018. The company offers computer games, mobile and also
online games. It also publishes children fiction, comics and illusion, horror and crime books. The
present report will cover growth opportunities which company possess with justifications within
an organisational context. Along with this, the potential sources of funding available to business
will be assessed. Apart from this, benefits and drawbacks of exit and succession will be
explained.
.
P 1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
When starting a new small business enterprise, it is essential to take some steps to
evaluate the business's potentiality and its ability to make it work. The investigation for SMEs
must be careful, analysing the hazard and assessment of benefits from opportunities.
 Self-analysis:- According to the Rebellion Developments business, many small
enterprises fail due to poor management and owner's inability in resources management.
A company must measure its own desires, talents, and goals before researching the
feasibleness of their idea . They must consider their position to take risk and also the time
required to make the business successful. They need to review their personnel, financial
and marketing capabilities as well as to make sure that they have necessary background
to achieve success of the venture.
 Market research: - To deeply understand new trends and present customer buying pattern,
for this they need to know their customers, their location and also the kind of competition
present in their area. To gather all these information Rebellion Developments Company
must perform a market research process to determine the practicability of business. They

need to know what types of games or comics customers would prefer more. Whether they
like graphic novels, or horror books etc.
 Creative and profitable offerings: - The key to unlock new opportunities for increasing
profit doesn't need changes in offering by the company but it requires changes in how
company charge for it. The services provided by Rebellion Developments should match
to the value paid by customers for it. The company must focus on developing new games
and make improvements in the existing games.
 Risk assessment: - For evaluating growth opportunities, the key consideration is risk
assessment. An honest of the risk inherent in the company may help them to prepare for
future issues and to take decision whether the risks are worthy for investment or not. Risk
assessment consist of some factors that needs to be considered and they might affect the
business negatively, such as state of economy, climate events and competitor’s
competitiveness (Angotti, 2018). Internal factors to be considered are, own health, level
of credit availability and type of employees required to hire for running the business.
 Diversification: - SMEs grow by taking opportunities to change or modify, although there
are many issues due to lack of resources. Rebellion Developments should analyse the
risks and costs of choosing for growth cautiously. The company must launch new games
to existing customers, choose a different market for new customers etc.
 Market size :- this is considered as the important factor while evaluating a business
opportunity. Before the company moves forward, it needs to be sure that demand id there.
Also, the company must aware about how to engage the market and how likely they are
to pay for what's being sold.
 Ability manage cash flow :- the next company needs to look at the ability to control cash
flow. Therefore, it needs to make sure that the business is likely to sustain itself after a
period of time.
P2. Evaluating the opportunities for advantage growth applying Ansoff’s growth vector matrix
Ansoff’s growth vector matrix is a strategic planning technique that provides a structure
for helping executives, marketers and even senior managers to promote future growth. In
marketing strategy, the company using its existing products or services tries to grow in existing
market. It tries to raise its share in the market scenario. The company may gain this objective by

selling more products and services to active or another way is that by discovering new customers
in the existing markets. This can be accomplished by; decreasing prices, raising promotion and
dispersion support, acquisition of competitors in the existing market and modifying products. An
Ansoff Matrix concept is by Ansoff, a person who created it. As a part of strategic planning
initiative, this concept is a tool of communication which helps to look towards the growth
strategies for the organisation (Schaper and et.al., 2014). Ansoff describes the 4 growth
alternatives:-
Market Penetration :
Questions asked:
 How can they defend their market share?
 How can they grow their market?
The strategy basically focuses on increasing the volume of sales of existing to the company's
existing market.
the first growth strategy explained in the Ansoff matrix is market penetration. This
strategy is adopted when company has a present product and needs a growth strategy in the
existing market. When a company tries grow by utilising the existing offerings in the same

market is known as market penetration. In order to grow, the company may increase its market
share. Company may achieve it by selling more of its existing products to the current market.
Risk strategy with lower risk for any company is to sell its active products into existing market
because the company know its customers.
Product Development :
Questions asked:
 How expansion of the product portfolio can be done by modifying or creating products?
In this strategy, an organisation make efforts to create fresh products and services for
existing market to achieve growth. In this the company has a good share of market in the existing
market and tries to introduce new products for elaboration. Moreover, it involves increasing the
product range which already exist to the company's existing market (DeTienne, McKelvie and
Chandler, 2015). These products may be acquired by; investing in research and development of
new products, acquiring of rights to produce others product, purchasing the product and labelling
it as owns brand. Product development is required when there is a good customer relation.
Developing a new product strategy to the existing market is a better approach.
Market Development :
Questions asked :
 How can they extent their market?
 Through new market share or new geographical areas?
When a company tries to expand itself into new markets using the existing product is
known as market development strategy. Targeting the existing product to new markets
maximises the brand's sales. Under market development strategy companies expand their brands
to new markets globally. For Rebellion Developments, this strategy implies expanding from an
existing market to some other market where its offerings does not compete.
Diversification : this strategy in the Ansoff matrix used when the company's product is
completely fresh and new and is being introduced into a new market. In diversification a
company attempt to increase its market share by presenting new offerings in new market. This

strategy involves very high amount of risk as both the market and product development is
required. Expanding the existing product with related products is one of the method chosen by
many companies.
Although these strategies are easy to hold, but have remained on the far side to reach by
many companies, because these strategies take more time and money to implement without
success guarantee.
M 1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context.
Competitive advantage is the pleasing position which every company seeks, to achieve
more profit than its competitors. To gain a competitive advantage, a company must be capable to
show a greater comparative and derivative value than its rivals and also carry that information to
its target market. For example, if Rebellion Developments advertises its book for a price which is
lower than similar competitor's product, then Rebellion Developments will benefit to have a
competitive advantage.
D 2 evaluate specific options and path ways for growth, taking into account the risk of each
option and how they can be mitigated.
Options for growth, creates a risk aware culture for companies. However, these options
are useful for companies but sometimes fails to consider all the elements which may affect a
market and which if taken into consideration, may lead to more advantageous growth strategy. It
also does consider the forces external to the market. It helps to increase your production output
by reducing cost per unit, increase resources, generate more sales, reach new customers,
influence market price, reduces external risk. Company may need to borrow funds to meet costs,
for buying new products (McLean, 2018).
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
There are various sources of funding available in the market for businesses and helps the
organisation to grow more and achieve its objectives and goals. Funding is required in every step
of all the activities of businesses(Dagnino, King and Tienari, 2017). Rebellion development uses
different sources of funds for their business. There are many ways of funding and some of them
are as following:

Personal investment: whenever a new business is started their required initial investment in
the business. This capital is invested by own themselves to start a business and help them
to earn profit. The Rebellion development started business with very small investment
and are growing at very fast rate. Advantage of this investment is that they own no
liability from other in the market(McLean, 2018)(). But, also have drawback that if they
suffice loss then have to pay from their personal capital.
Equity financing: In this they exchange a portion of there ownership of the business for
financial investment in business(Chen, and et.al, 2014). Rebellion development provided
permanent investment in the company and is not repaid by the organisation at later date.
Equity share holders are given share from the profit of the company. Therefore, drawback
is that their have to pay their equity holders, even if it is not earning profit and they are
liable to pay. Organisation gets benefit from equity share holder that their investment
large amount in the company and are able to run business more effectively.
Personal saving: The company invest from there personal saving, only in emergences. Also,
this is the first place to look for money. They include profit sharing or easily retirement
fund. Benefit of this is that their don't have to ask any ones help and can withdrew
amount and has to answer no one. But also has risk of barring lost to themselves. This is
the drawback for the organisation and for own as well.
Friends and relatives : whenever, any organisation starts there businesses they ask helps from
there friends and relative(Gallent, and Ciaffi, 2016)). From this they get benefit that they
don't have to take helps from outsides or ask for investment. But, also has drawback to
return the money on time, otherwise, negative image is made by them and it gets difficult
to ask them again.
Venture capital: The company ask for this capital when they required short-term investment.
The investor generally invest in organisation which have received equity investment from
there founder and have competitive advantage. They get benefit of usually high-risk
investment businesses(Lu and Yu, 2014). Drawback is that they ask for more share in the
profit and company has to barrier liability.
Angel investors: There are investors mainly help small businesses to grow and individuals
invest in the organisation. Rebellion development try to bring investment from them to
develop there business at growing stage. They are similar to venture capital and interest

in focusing on economic return. Drawback is that those investors have very high
exception from the organisation, which cannot be fulfil all the time. They get benefit by
providing good investment to small organisation.
Bank loan: whenever company required huge investment they generally ask from bank to
grant them loan. They grant loans to the organisation by see there profit earning capacity
and their progress report. If, they find that company is not earning enough profit then
they reject the offer of the organisation. Company get benefit that they can investment
more in there business and can earn more profit. But, also has drawback that the company
has to pay more interest on loan.
Debt financing: Rebellion development ask finance from there creditors when they want
short-term or long-term investment. The debt financier get interest amount lent to there
borrower. The benefit of this investment is that they get both type of investment from
their investors(Khan, Bahadoorsingh and Powell, 2018). Also, have drawback that they
pay more interest to their leader and amount increases, if they delay in returning the
amount.
M2 Evaluate sources of funding and adopt appropriate source of funding
There are many methods by which an organisation get their funds from and Rebellion
development uses some of them to get funds into their organisation. The organisation needs both
the type of investors short-term and long-term to get investment from. In the development stage
of there business they take investment from they their friends and relative. So, that they have to
face no liability at the initial stage and if, the organisation need huge investment then they ask
from venture capital investor(De Roo, 2017). The best way is debt financing because in this
method both type of capital is invested by the investment short-term and long-term. This also
provide huge capital to the organisation. But also has drawback as the time of lending increases
the interest also increases.
D2 .option and pathway for growth, taking into account the risks of each option and how they
can be mitigated.
There are many options of funding and that can lead to the growth of the organisation. Therefore,
the owner should know the way to bring investment in the organisation. Equity shareholder
invest in the organisation when some share are transfer to them. The benefit of equity
shareholder is that they invest huge amount in the organisation and get they share from the profit

earn by the company(De Roo, 2017). The drawback of this method is that whether company earn
profit or loss they have to give share to their equity shareholder.
LO 3
Business plan for Rebellion developments
A business plan is the document which provides the strategic guidelines for evaluating
the approaches and impact of business objectives and goals. The business plan will help
Rebellion developments to frame effective strategies for secure funding and investments.
Organisation can ensure the regular cash flow and plan the strategic exit for future. The business
plan for Rebellion developments is provided as below:
Business plan for Rebellion developments
Executive summary of plan:
Rebellion developments needs to explore the business strategies for its future growth
and development in the highly competitive business scenario. The plan will provide appropriate
documentation for future objectives of organisation. It will describe the executing methods
which could help Rebellion developments to achieve their growth targets along with risk
management from various factors such as competitors, technological changes and other internal
and external factors of organisation. This bushiness plan will help Rebellion developments to
manage their financial resources securely so that during crisis also organisation does not suffer
from fund issues.
Opportunities for Rebellion developments:
The organisation is well established name in Europe. With excellent technical
implementations in services organisation has the potential to explore worldwide. Rebellion
developments can lead the online gaming industry by introducing technical advancements such
as involvement of artificial intelligence and real world interaction. It can present the
organisation as the most innovative and successful industry and will also gain attention of more
investors (Burns and Dewhurst, 2016). The organisation can explore the global opportunities by
providing regional comic books in different economies. The organisation can also expand its
services by involving in application development. The software development will create new
opportunities for the organisation to extend its business.
Strategic execution of objectives for scaling the growth of business:

Growth objectives of Rebellion Developments for the next three years are as follows:
 To increase their market share by 25% within 3 years.
 To increase their sales target by 5% every year for the entire plan duration.
 To analyse the scope for the expansion of business activities across different coutries.
For achieving these business targets Rebellion developments must have clear vision for its
target customers. The products and services of organisation are developed according to
requirements and expectations of customers only. Thus, organisation must conduct market
research regarding the expectations of customers and advancing technologies which can be used
to meet those expectations. Rebellion developments must analyse the availability of resources
before implementing new innovations. This approach will reduce the risks of failures for the
organisation. For gaining profits it is essential for the Rebellion developments to adopt effective
marketing strategies. Without promotional activity organisation may not be able to gain profits.
Rebellion developments can use numerous promotional strategies such as online marketing,
advertisements and brand value management (McKeever, 2016).
The major factor for customer retention with Rebellion developments is the innovation
and error free application. Thus, organisation must ensure with innovative approaches that the
developed games and applications are innovative enough to encourage the customers. One of
the advance strategy which can boost the growth of organisation is to regularly monitor the
performance and strategies of the competitive organisations. For instance most of the customers
do not find video games as interesting as social networking sites.
Thus, to maintain the growth organisation can develop video games which are
supportable on social networking platforms. This innovative approach will be useful in growth
of organisation. Rebellion developments can enhance the productivity and innovation by
regular skill development sessions. These sessions provide the knowledge about the advance
techniques for improving product quality. The regular evaluation of performance of employees
will encourage them to work with full efforts and concentration. It will minimize the failure and
risks.
Team work and organisation:
The organisational goals cannot be achieved by the effective human resources.
Rebellion developments must ensure that highly skilled programmers and technical team is

involved in product development and strategic execution. Organisation must regularly monitor
and evaluate the performance of its teams. This evaluation will encourage human resources to
provide the best output (Wennberg and DeTienne, 2014). To attract the talented pool of human
resources Rebellion developments must make its business environment comfortable for its
employees. The highly skilled and technical human resources are essential for Rebellion
developments.
The organisation can achieve its goals with more efficiency by enhancing the team work
efforts. Rebellion developments can create highly productive team which can execute various
operational activities. Team work has the ability to bring synergy and thus business culture of
the organisation is directed towards achieving maximum profits.
Financial planning:
The regular cash flow is the key indicator for the success of organisation. Rebellion
developments must make long term and short term financial goals. These goals will motivate
and provide guidelines to organisation so that despite extreme competition Rebellion
development find it easy to get funds from external environment. The unique selling proposition
of the organisation must be presented in front of the investors so that they can get assure about
the safety of their investments. The organisation must execute its operation which minimizes
the risks and must avoid the dealings which could lead insolvency for the Rebellion
developments.
With this growth plan Rebellion developments will be able to improve its profit generation by
10% annual rate. However, the expansion and growth strategies will also increase the
operational expenses. It is important for the organisation to consider the risk factors also in the
business plan. If due to any reasons the plan does not achieve success then, organisation will
have to face huge losses which will be equivalent to its existing profit in next two years. Thus,
before making the plan into action Rebellion developments must analyse the risk mitigation
strategies and possible resources of investment and risk management.
The implementation of cash management strategy can be an effective tool for this
purpose. Rebellion is a cash only business thus it would be safe for the organisation to bank its
income and transactions. Organisation must manage the detailed analysis of its liabilities and
assets. It can get funds and support from mobile app development companies which require