Business Growth and Funding Analysis: Guildford Tyre Company Report

This report analyzes the growth strategies and funding options for Guildford Tyre Company. It begins by defining growth planning and identifying the company's strategic activities within the market. The report focuses on Guildford Tyre Company, a leading firm in the industry, and applies Ansoff's Growth Matrix to evaluate market penetration, development, product diversification and the company's position. The report evaluates various growth opportunities, including competitive advantages such as cost leadership, differentiation leadership, and focus strategies. It also uses the PESTLE analysis to examine political, economic, social, technological, environmental, and legal factors influencing the company's expansion. Furthermore, it explores various funding sources available to the company, such as bank loans, peer-to-peer lending, and funding from friends and family. The report also discusses the advantages and disadvantages of each funding source. Overall, the report provides a comprehensive overview of Guildford Tyre Company's growth strategies and financial planning.

INTRODUCTION
Growth planning is defined as the strategic business activities that initiates with
identifying organisation's ability and allows to determine trading functions that are crucial for
progression within state to change that occurs within surrounding of market. In case firm want to
explore their enterprises at global market then it has to formulate plans in respect of various
aspects like resources, funds, product and many others (Jansen, 2017). Guildford Tyre Company
is chosen for this report, it is a leading firm that offers various types of product and services like
wheel aliment, mechanical repairing and many others. Study applies Ansoff's Growth matrix in
respect to chosen firm. Report also explains sources of funds and their suitability to business.
Instead of this, development of business plan and succession strategies for small enterprises with
its advantage and disadvantages are also discussed in this report.
TASK 1
P1 Evaluating various growth opportunities for Guildford Tyre Company
Small business obtain effective opportunity into competitive marketplace. For instance,
management have to formulate plan as well as strategy of the business for sustaining and
acquiring advantage from this. In Guildford Tyre Company, there are about 40- 50 staff. For the
business growth various factors are undertaken which are as follows:
Competitive advantage: It is considered as the circumstances in which firm product
same kinds of products or provides services at lower rate effectively an efficiently. This is
accountability of respective firm manager to design plan strategy for gaining competitive
advantage. Some of those are discussed below:
Competitive advantage as a Growth foundation
For obtaining the competitive advantage as growth foundation, respective company have
to evaluate various options so that correct strategies can be taken for the growth of business: Cost leadership: It aids firm to develop position for targeted marketplace by providing
low cost products (Burns, 2016). Guildford Tyre Company may utilise cost leadership
for analysing the market as well as targeting customers for understanding its needs.
Herein, product price is low as well as quality is high to grab the attention of more
consumers. This particular strategy is facilitating opportunities for enhancing the market
share and size for its enterprise within competitive market area.
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 Differentiation leadership: The product or services provide through respective company
is innovative which aids them to generate revenues by increasing number of customers.
With the assistance of such strategy, Guildford Tyre Company may create innovative
features into their product for entering within new target market. For example: in case
they do not able to perform any types of innovation in its tyre design as well as quality
then this may influence and motivate clients for products buying. Cost focus: Guildford Tyre Company can focus son niche market for providing product
or services at less cost. By using this tactic company can able to examine the marketplace
as well as its consumers needs and also make products at less cost (Irina, 2019). They
perform market analysis before manufacturing goods as well as develop products
accordingly. For example: Cost focus aids them to get knowledge regarding needs of
consumers so that they can able to formulate their products as per that. In this, there is
less chances of wastages as their goods are depends on customization.
 Differentiation Focus: Herein, firm mainly concentrate upon their targeted group to
design products through adding unique as well as creative features. Respective company
produce products or provides service through examining its targeted customers as well as
market requirements. With product differentiation, it can able to develop opportunity for
sustaining into competitive market with its creative and new goods that can aids them to
raise sales as well as profitability (Wolf and Floyd, 2017).
The strategy which is effective for Guildford Tyre Company for gaining more growth
opportunities is cost leadership as with the assistance of this they can analyse market and
customers needs as well as able to manufacture standard quality product at low cost.
Competitive advantage with growth opportunities
Within this growth opportunities, Guildford Tyre firm have to perform external analysis
with the assistance of PESTLE tool. It aids them to know about the growth of market, business
position, operations explanation and others.
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Sources: What is PESTEL and how does it help your organization succeed, 2019.

 Political: If respective firm want to explore their businesses into France marketplace then
it has to perform analysis as well as evaluation of several regulations, rule and many
more in order to make effectual decisions. It can aids them in performing business
operation appropriately. Thus, this can assist them to identify business as well as gaining
opportunities such as product manufacturing into France market by political factors
evaluation. Economical: If respective firm want expand their enterprises into another country so it
have to examine the consumers buying power effectively as well as efficiently for
attaining the outcomes. It aids them to formulate product according to the economic rate
of of respective country. Moreover, it assists them to create business opportunities into
competitive market area. By understanding customers purchasing concepts, products
price are set so that it can buy standard products. Social: It is defined as attitude, values etc. of individuals that involves various factors
like growth of population, age distribution and so on (Sanjaya, 2017). For expanding their
enterprise, Guildford Tyre Company required to examine as well as know about its
customers purchasing trends. This factors develop opportunities for firm as individuals of
France consider to utilise creative as well as new products. Technological: For creating opportunities, this is the acountabillity of respective
company to conduct effective investigation as well as utilise technology for producing
products for its audiences. They required to perform innovation at regular basis on their
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products. With the assistance of this particular factors, Guildford Tyre Company can
able to produce standard quality tyre for its clients quickly that increases profitability. Environmental: It is the factor which involves weather, climate, pollution and many
other. For creating opportunities into marketplace, initially respective firm have to
examine the environment as well as manufacture products that do not harm surroundings.
As tyre production through Guildford Tyre Company do not form any impact to that
which develop opportunities for them to explore their enterprises into several countries
for enhancing profitability and sales.
 Legal: There are many legislation like health and safety, employment etc. that firm
required to comply for performing business, activities, functions and many others so,
respective firm have to get knowledge about the legislation and policies of France before
business expansion in order to obtain profitability.
All these can assists Guildford Tyre Company to perform their task effective to meet
business goals appropriately. All the factors have to be evaluated properly for attaining
outcomes.
P2 Ansoff’s matrix
Ansoff matrix is the tool that aid sin facilitating guidance to executives as well as
managers to formulate efficacious strategies for expanding business. This model assists firm to
identify various opportunities for sales and profit maximisation (Lambert and Oatley, 2017).
Guildford Tyre Company utilise this to understand its position into market and make strategies
that are discussed below: Market Penetration: This is refers as the circumstances in which firm can able to
develop into existing market with their present products or services. it means that for
maximising firm's share market into existence segment this is only possible through
selling that into present market. This can be perform with the assistance of maximising
awareness regarding goods, minimising price, enhancing activities of promotion and
many others. This can be adapted through respective firm to enhance market share with
same goods. Market development: firm can expand business into new market to grow well. It is an
efficacious opportunity for organisation for acquiring large places through enhancing
their enterprises. In this risk is more as compare to market penetration. Guildford Tyre
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Company can use this to explore their business into new market are such as France with
same products. Product development: It is considered as strategy in which firm can launch new goods
into similar places for expanding as well as developing profitability and market share
(Cassidy, 2016). New goods that will be facilitated through Guildford Tyre Company is
offers accessories for auto mobile sector. This concentrates upon exploring several
activities such as performing research and development, launching new product,
obtaining effective product etc. This strategy can be adapted through respective firm to
raise profitability within competitive market.
 Diversification: firm can explore its business within new marketplace with new products
or services. This particular strategy is more risky as both goods and market are new that
have less chance of getting success. By using this particular strategy respective firm
required to perform appropriate research regarding needs of customers, product etc. In
context of Guildford Tyre Company, it can launch new range of tyres as well as introduce
that into new marketplace where they do not operate presently. Through this, it can cover
more consumer base that aids to enhance its profit ratio and market share.
Hence, Guildford Tyre Company can adopt market development strategy as it helps them
to expand their product into another countries but with same product. This is not so much risky
as well as facilitates higher profitability.
TASK 2
P3 Funding sources available to Guildford Tyre Company
For enhancing the firm's growth into competitive market, they have to utilise several
plans as well as strategies (Contin-Pilart, Larraza-Kintana and Martin-Sanchez, 2016). The
sources of funding is considered as the ways through which companies operation and working
capital enhances. For initiating a new enterprises, funds are needed as business them selves can
not able to arrange large mount of money to enter in marketplace. The several sources that can be
utilised through respective company are discussed below:
Bank Loan: This is defined as the simple as well as common kinds of funds that are arranged for
small and medium enterprises. This source of funds can be lends from bank for certain time
duration as well as charged fixed rate of interest. Respective firm can lends money from bank
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through taking loan. Moreover, this is a considered as secured source as well fixed interest is
paid to the bank. With the aids of this, they can able to expand their business effectively into
another countries. Advantage: This source of fund is fix and legal in which respective firm need to give
borrowed amount at fixed rate to bank. Moreover, it facilitates tax benefits as well as is
cost efficacious that provides flexibility and others.
 Disadvantage: Bank loan have fixed rate of interest so company do not minimise or
maximise that. In this, respective firm have to pay whether they are in profit or loss
condition. Moreover, this also involves irregular payment amount, burden of repayment
etc.
Peer to peer lending: This is defined as the one of the common source is rising finance it is
generally performed online with the help of internet. In this, the lenders facilitates money to
borrowers through online without having any interaction (Kepczynski and et.al., 2019). This
particular source of funds is also known as social lending. Peer to peer lending aids respective
firm to raise funds with assistance of various websites like pozibe and many others. Advantage: The fundamental advantage of this source of funds is that company enjoys
cost benefits on high level.
 Disadvantage: risk of using this source is quite high.
Friend and family: It is defined as the effective sources of funding as most of the small firm are
using this as they do not have any rights to issues market share or other appropriate ways to rise
finance. Thus, its also have some advantage and disadvantage which are given below: Advantage: This is simple source of funds where finance are raise from family and
friends as individual can simply reach such personnel effectively.
 Disadvantage: Conflicts may rise between one another during the time when repayment
will not done properly.
Business angel: This is mainly defined as a private investors those who use or invest finance
into start up firms (Chambers and Humble, 2017). Thus, these investors aids small company in
various manner so that it can efficaciously perform its activities of the business into many parts
of country. This help Guildford Tyre Company to expand their enterprises at various location. Advantage: the main advantage this source of funding is that this aids them to accomplish
accumulation of revenue that outcomes in developing valuable investors for enterprises.
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 Disadvantage: The investors generally obtain firm's equity share.
Thus, Guildford Tyre Company can raise funds by bank loan for growth opportunities.
As this is considered as the secured as well as organisation have to pay the amount at fixed
interest rate to bankers. Moreover, it gives flexibility and cost effective as well as provides tax
benefits to company.
TASK 3
P4 Business plan
For obtaining success within marketplace, this is essential for organisation to formulate
objectives for company (McKenzie and Sansone, 2019). In order to expand enterprises firm
needs business plan which includes information affiliated with strategy, vision etc. Guildford
Tyre Company is plan to explore its firm at France market so they have develop a business plan
that are discussed below:
Business concept: This is considered as the procedures which includes information regarding
customer, products, vision and many more. Guildford Tyre Company have formulated following
business concepts like:
Vision: “ To facilitate standard quality of products as well as creative products to
customers for accomplishing its needs effectively.
Mission: “To maintain as well as improve reputation into market by facilitating quality
product and enhance profit”.
Strategic Objectives:
“To enter in new market area with similar product or services into 6 months to enhance
20% business profitability and sales”.
Operational strategy: Guildford Tyre Company have adapted consumer driven
operational strategy to design product or services for meeting the requirements of customers. It
will aids them to maximise market share as well as profit.
Unique selling proposition: They utilises equity capitalisation as USP. According to
this, firm sell particular business section to other for certain time duration. It is developed by
legal agreements.
STP Analysis: This is defined as the segmentation, targeting and positioning. This aids
them to analyses their marketplace for expansion and research segment (Dale, 2019. Guildford
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Tyre Company utilised STP as it helps them to examine its offerings as well as the way it deliver
its advantage and value to specific teams.
 Segmentation: It is defined as distinguishing overall population into several groups for
examining the needs of customers. Guildford Tyre Company select geographical
segment. In addition to this, high quality products or services are facilitated to customers.
Basis Guildford Tyre Company
Market area Large market in France
 Targetting: A company's proactive selection of effective market segment with the intent
to focus upon offers of marketing and firm's activities towards their related groups of
team. Thus, Guildford Tyre Company plan to target all class people (Jansen, 2017).
 Positioning: It is defined as the last step of STP analysis. Within this firm need to find
that in which way they are placing its products. Moreover, this is strategic development
of product in front of clients through providing quality products. Respective company
understand and has develop USP for new business at new location.
Financial Plan and information:
For expanding the business, Guildford Tyre Company have objective to enter into France
market for enhancing sales and profit. For instance, respective company required to raise funds
for introducing enterprises in another location (Contin-Pilart, Larraza-Kintana and Martin-
Sanchez, 2016). In order to attain their capital, it rise their funds from several sources such as
bank loans, peer to peer funding and others.
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From the above data t can be analyzed that the company have the major have the development of
major investment which can be such as more in few six months which will makes the more level
f outflow in the company the Amount will which will be invested as
2300,2800,1700,2300,1350,2000 and 1100 for the respective first six months of the years. On the
other hand the inflow will be equal to the 10000, 3000, 3000, 4500, 1500, 3500, 4200 for the
respective six months. The company will be able to have the increasing rate of profits which
have succession in terms of 7700, 7900, 9200, 11400, 11500,13000 and 16100. the predicated
company balance sheet more to more level of profitable.
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Monitoring and control: This is considered as last step of business plan in which overall
activities are conducted effectively and deficiently as well as all the stages are monitored in order
to accomplish their objectives. If any kinds of problems arises then it have to be controlled for
change.
TASK 4
P5 Succession strategies
Small as well as medium firm are developed to acquire more profit margins and sales
revenue. In order to attain this goals, manager make strategies and policies as their enterprises
can run effectually (Burns, 2016). As Guildford Tyre Company in launching new ventures at
France market which will assists them to explore its activities into market area. Few succession
strategies are formulated to obtain growth within marketplace and competitive edge are
discussed below: Joint Venture: It is developed between two other people for pooling resources in order
to accomplish task in certain time lag. It can be performed in respect of new project or
any other activities of business. So, the benefits and drawback are:
◦ Benefits: It gives innovative expertise to organisation because of which work can be
some in more effectual way. Moreover, this also aids to acquire effective resources
like advance technology, talented staff etc.
◦ Drawbacks: In this, there are certain risk in context of flexibility like staff may not
get appropriate freedom to do any kinds of work. Mergers: This is defined as the crucial part fro firm's growth strategy. Hence, many
small as well as medium organisation are uninterested to follow entities as well as
explore within other area (Lambert and Oatley, 2017). Guildford Tyre Company has
merger with other leading companies which help to attain financial objectives in certain
time lag.
◦ Benefits: It will help to improve the economies scale in addition to it this assists to
obtain more profit to company. management.
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◦ Drawbacks: This will be difficult to interact as well as coordinate. It maximises
market share which drive towards monopoly power and facilitates services at high
price to their consumers.
Hence, merger will help organisation to explore their existence within France market due
to which their income as well as profitability will get enhance. In addition to this, it maximises
their brand reputation (Cassidy, 2016).
Exit options: Sell enterprises within open marketplace: It is the another option for business exit is to
sell it into open market area. In this, organization are sold to few another individuals
within market.
◦ Benefits: Staff have appropriate understanding as well as experiences about
enterprises due to which this become easy for new authority to manage the enterprises
in efficacious away.
◦ Drawbacks: Because of new management faith as well as trust of consumers reduces
and also revenues may get suffer significantly. Liquidation: When organisation is not stable within market area and are not efficient to
adopt current trends of market as well as many strategies then they have to close their
business (Kepczynski and et.al., 2019). Liquidation is used when company is
continuously in loss from long period as well as its has more liabilities in compare to
assets in this case firm have to liquidate their business. In this, Guildford Tyre Company
have to sell their assets for paying liabilities. Few of their benefits and drawbacks are:
◦ Benefits: Herein, if any legal action against organization is barricaded and its owner
do not have any legal issues as well as can able to adopt new ideas for initiating new
ventures. By selling assets, organisation may pay off their liabilities and liabilities
those are not paid will be written off as owner of respective company were not able to
pay any kinds of debts.
◦ Drawbacks: At the time of liquidation, situation raise where owner have to sell their
personal assets for recovering the debts of Guildford Tyre Company which is to
provide dividend to their creditors.
As organisation is new within market area and consumer do not have any knowledge
about their services, this will be advantageous to make joint venture with leading firm. It would
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be better in getting more profit and sustaining in market for longer duration (Chambers and
Humble, 2017).
CONCLUSION
Study summarised as planning is significant for the growth of enterprises as it assists into
expansion. PEST analysis and porters generic model are applied which helps to examine the
ways by which opportunities for growth as well as competitive advantage can be attained. Few
source of funds like friends and family, bank loans and many other which are utilised by firms
for raising funds for expansion. An efficacious business plan leads company to maintain capital
in effectual and proper manner. Moreover, merger, acquisition and so on are some methods
which help them to enhance its business presence within market. In addition to this, it is also
summarised that there are several option for organisation to run their enterprises and gain success
or close it if they are suffering from loss for long time.
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