Guildford Tyre Company: Planning Growth and Funding Options Analysis

This report analyzes the growth strategies for the Guildford Tyre Company, a small-scale business operating in a competitive environment. It emphasizes the importance of evaluating market opportunities and developing robust business plans for sustained growth. The report utilizes Porter's Generic Strategies (cost leadership, differentiation leadership, and focus strategy) to assess the company's market positioning and recommends differentiation focus as the most suitable strategy. Furthermore, it applies PESTEL analysis to evaluate the external factors (political, economic, social, technological, environmental, and legal) impacting the company and identifies social and technological factors as key drivers. The Ansoff Matrix (market penetration, product development, market development, and diversification) is then applied, with market development being the recommended growth strategy. Finally, the report explores potential funding sources, including loans and angel investors, discussing the benefits and drawbacks of each, providing a comprehensive overview of the company's growth prospects.

Key considerations for evaluating
growth opportunities
It is very important for all those
company which is dealing in competitive
environment to analyses as well as
evaluate each and every factor. For this
Guildford Tyre Company needs to develop
better business strategies that will lead to
evaluation of all growth opportunities that
is available in market area. Respective
company is dealing in small scale business
sector which is highly competitive. It is
essential to develop a better and strong
plan that with lead to growth and
development of organization. Guildford
Tyre Company will be able to grow its
business when it is providing high quality
products and services to customers. This
will help in gaining competitive advantage
over other rival companies.
For foundation of growth,
Guildford Tyre Company needs to
analyses as well as evaluate its position is
market area as well as values in respective
industry. This will help in determining the
actual value of company as well as identify
new and innovative way that can be used
by company in order to enhance its
performance. For this respective company
should use Porter's Generic strategy model.
This will help in understating the market
environment as well as developing better
business strategies.
Cost leadership – This strategy is
useful for company to create a strong
position in market area. By developing
cost leadership strategy Guildford Tyre
Company will be able to gain competitive
advantage over other rival companies. In
cost leadership strategy respective
company needs to offer its products and
services which is comparability lower than
rival companies. This strategy will help in
attracting more and more customers
towards business as this company will be
able to full fill their need and requirement.
Cost leadership strategy will be helpful in
growth of organization as thought this
respective company will be able to
enhance its customer base.
Differentiation leadership – By
developing differentiation strategy this
company will be able to enhance growth in
its business. This strategy will be useful in
developing new and innovative products
and services to customers. This will help in
attracting customers as well as lead to gain
competitive advantage over other
companies. In order to successful develop
as well as implement differentiation
leadership strategy this company needs to
understand the requirement of customers.
This will help in developing product and
services is lead to meet with the
requirement of customers.
Focus strategy - This strategy is
especially developed to meet with the
needs and wants of customers. Focus
strategy will be helpful when Guildford
Tyre Company is planning to offer its
products and services to specific market
area. In this respective company needs to
Planning for growth

develop strategies that is completely based
on niche market area. Focus strategy is
categories into two different parts such as
cost focus and differentiation focus. In cost
focus strategy respective company needs to
offer its product in different prices to a
particular market area. In differentiation
focus strategy Guildford Tyre business
needs to develop new and advance
products and services as per specific
market area.
After analyzing all of the above
strategies respective company will be able
to analyses as well as evaluate the most
suitable strategy. For Guildford Tyre
Company differentiation focus strategy
will be better in order to enhance and grow
in new market area. This company needs to
develop products and services as per
requirement of targeted market segment.
Competitive advantage with opportunities
for growth
For achieving growth of business in
effective manner, it is essential for
company to analyses as well as evaluate
business environment. For this Guildford
Tyre Company different factors of
PESTEL analysis is mention below in
context of Guildford Tyre organization.
 Political factor- This factor
includes all regulation and policies
that is developed by government.
Political factor consists of taxation
policies, trade restriction, stability
and instability of organization and
many other factors. Respective
company is dealing in small scale
sector of UK. Government or
political party of UK is developing
various plans for growth and
development of small scale
organization. This will help
company to conduct business
functions in better manner.
 Economical factor- This factor
refers to all those factors which are
regulated to economy of country.
There are different economic
factors such as economic rate,
GDP, inflation, disposable
incomes, interest rate and so on. It
is very important for respective
company to analyses as well as
evaluate economic factor in order
to perform business activities in
better manner. UK nation as one of
the growing economic conditions
which will help Guildford Tyre
Company to perform better as well
as increase its sales and
profitability.
 Social factor- There are many
social factors which will have
major impact on organization as
well as affect its business
operations. Social factor includes
population growth rate, attitude,
behaviors of customers,
demographics and other social
factors. This will help respective
company to analyses need and
wants of customers in order to
develop products which is as per
need of customers. Guildford Tyre
Company is developing products as
per need and wants of customers
which will have positive impact
over organization.

 Technological factor- This factor
which have major impact on
decision making as well as
development of strategies. It is very
important for respective company
to use new and innovative
technology which will help
company to perform its business
operations in correct manner. UK
market area has one of the advance
technology which will have
positive impact over organization.
This factor will directly lead to
increase in productivity of
organization as respective company
will be able to develop products in
better manner.
 Legal factor- Legal factors is
majorly related to all legislations as
well as laws that are developed to
maintain health and safety of
customers. This factor includes
discrimination law, copyright,
patent laws, health and safety as
well as consumer protection law.
This will be very helpful in
maintain health and safety of
employees. This company is
following all laws related to
employment and this will help in
motivating employees. This factor
will lead to enhance its relationship
with employees as well as staff
members.
 Environmental factor- There are
many environmental laws and
policies developed by government
of UK. It is important for Guildford
Tyre Company to follow all rules
in order to maintain safety and
security of environment. This
factor is related to weather, climate
conditions, ecological system,
pollution and many other factors.
This will help company to perform
business operations in better
manner. Changes in climate as well
as increase in climate issues can
have negative impact over
organization. So it is essential for
this company to develop business
strategies by considering
environmental factors.
By analyzing each and every factor
of business environment it can be
identified that social and technological
factor will have major impact over
organization. This will be very helpful for
company to develop strategies that will
lead to growth and development of
organization.
The opportunities for growth applying
Ansoff’s growth vector matrix
There are various opportunities
available in market area which will be very
beneficial for respective company to
enhance its business operations. In order to
conduct business activities in better and
effective manner it is essential for
Guildford Tyre Company to develop better
business strategies. This will be helpful
respective company to identify as well as
analyses all possible strategies that can be

useful for this company. Strategies will be
very helpful in performing business
activities in such manner that it will
directly lead to achievement of goals. For
this Guildford Tyre Company need to
analyses Ansoff Matrix. This is considered
as a helpful tool in order to analyses the all
strategies that will lead to growth of
organization. This model is developed by
Igor Ansoff and this matrix is divided into
four parts. This includes market
penetration, product development, market
development and diversification. All of
these strategies in mention below.
 Market penetration – This strategy
includes when company is offering
its current product and services to
existing market area. Market
penetration will be helpful in
attracting existing customer as well
as enhance sales of organisations.
Guildford Tyre Company can use
this strategy in order to increase
image in current market area.
 Product development – In this
strategy Guildford Tyre Company
needs to develop new and
innovative product in order to
attract current customers. This will
be helpful in satisfying needs and
wants of existing customers by
offering completely new product.
By this strategy respective
company will be able to gain
competitive advantage over other
rival companies.
 Market development – This
strategy is useful in offering current
product and services to customers
of new market area. In order to
adopt this strategy respective
company needs to analyses as well
as evaluate new market
environment and their demand.
This will be helpful in growth and
development of market. Market
development strategy will be
helpful in expanding market and
customer base of respective
company.
 Diversification - This strategy is
useful when respective company is
planning to offer new products and
service to new market area. By
using diversification strategy
Guildford Tyre Company will be
able to grow and develop its
business by developing new and
market area. In diversification
strategy respective company need

to develop new product and
services for new market area.
After understanding and evaluating
each and every strategy it has been
identified that the most suitable
strategy for respective company will be
market development. In this strategy
Guildford Tyre Company need to
analyses as well as evaluate new
market area in which this company can
offer its current product and services.
for this respective company needs to
find and identify market area in which
they can offering its products and
enhance its market share.
The options for growth using a range of
analytical frameworks
There are various options available
to Guildford Tyre Company which will
help company to growth and develop its
market area. The most suitable strategy for
this company is market development. This
organization should expand as well as
enhance its market share by offering its
current product and services to new market
area. it is essential for respective company
to analyses as well as evaluate its new
market area in order to identify which area
has more demand of product and services
offered by Guildford Tyre Company. By
this strategy respective company will be
able to develop and enhance its market
shares. This will lead to gain competitive
advantage over other rival companies.
Specific options and pathways for
growth
The specific pathway and option of
Guildford Tyre Company growth and
development is using market development
strategies. This will be the most suitable
strategy for this company as this will help
in full filling the need and wants of
customers of new market area. There is
various risk attached to this strategy as
company will require more funds and other
financial resources to operate its business
in market area. Assess the potential sources of funding
available to businesses and discuss
benefits and drawbacks of each
source.
There are various potential sources
available in market area which will helpful
in providing appropriate funds to this
company. Each and every source has their
own benefits as well as drawbacks which
will affect the functioning of organisations.
It is very important for respective company
to select most suitable source of funds.
Loan – This refers to taking money in
advance for full fill requirement. In this

respective company can take loan from
bank on temporary bases in order to
conduct business operations. There many
banks which will help respective company
to take loan
 Advantage - This is considered as
most suitable sources of landing
funds for business operations. This
is easily available and it is risk free
also.
 Disadvantage- High interest
amount charged by bank for the
loan amount is the main drawback
of this source of funding.
Angel investors - Angel investor is
known a person or individual who is
interested in investing into business. This
type of individual has very high net worth
and they are offering money to company in
order to support organization.
 Advantage- this types of sources
of funds includes little or no
interest rates for providing
financial resources for
organization.
 Disadvantages- it is very difficult
to find right angel investor and it is
very time consuming process.
Evaluate potential sources of funding
and justification for the adoption
of an appropriate source
The most suitable source of funding
for this organization will be bank loan.
Guildford Tyre Company should use this
funding source as it is comparatively easily
and risk free. There are many banks in
market area which will be helpful this
company to take loan and conduct its
business operations.
Evaluate potential sources of funding
Bank loans will be the most potential
source of funding for Guildford Tyre
Company. This company should adopt this
source as it is risk free and it is conducted

with proper process and documentations.
There are different special policies
provided by government to take loan at
lower interest rate for all those companies
which is dealing in small scale business
sector. This will be very helpful for respective
company and it should take advantage of this
policies.
References
Acar, O. A., Tarakci, M. and van
Knippenberg, D., 2019. Creativity and
innovation under constraints: A cross-
disciplinary integrative review. Journal of
Management. 45(1). pp.96-121.
Héraud, J. A., Kerr, F. and Burger-
Helmchen, T., 2019. Creative Management
of Complex Systems. John Wiley & Sons.