Determining Exit or Succession Plans: Guildford Tyre Company Analysis

This report examines exit and succession strategies for the Guildford Tyre Company, focusing on the importance of strategic planning for business growth and competitiveness. It explores various strategies, including mergers and joint ventures, detailing their advantages and disadvantages. The report emphasizes the need for effective planning and evaluation of factors influencing the organization to achieve desired goals. It discusses the benefits of a merger strategy, such as increased business size and market share, while also acknowledging potential drawbacks like employee turnover. The report highlights joint ventures as a cooperative enterprise, offering opportunities for new expertise and market entry but also involving risks and costs. Ultimately, the report recommends a merger strategy for Guildford Tyre Company to facilitate business succession and achieve its objectives. The conclusion stresses the role of growth and the evaluation of business situations using tools like the Ansoff matrix, while also mentioning funding sources and the positive impact of succession strategies.

Planning for growth

Contents
TASK 3............................................................................................................................................1
P5 Determine the exit or succession plan for small businesses by elaborating their advantages
and disadvantages. .................................................................................................................1
M4 determine the exit or succession alternatives for a organisation by comparing and
contrasting for validation recommendations. ........................................................................3
D4 Critically evaluate the exit or succession for a small enterprise by using validate
recommendations and its implementation. ............................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

TASK 3
P5 Determine the exit or succession plan for small businesses by elaborating their advantages
and disadvantages.
For an organisation it is very much important to build strategies and tactics that provides
the development and enhancement in order to remain competitive in marketplace. This is
considered as a key to success as it will help in accomplishing desired goals and objectives
(Acar, Tarakci and van Knippenberg, 2019). It is necessary for a organisation to develop better
strategies as well as canvass each and very factors that can have impact over organisation.
Respective factors enables to visualise the determiners that impact on the firm. In current
business environment it is necessary for organisation to enhance its productivity and
performance in order to accomplish desired goal. Effective and efficient planning will help in
gaining edge over other rival company as well as lead to increase performance of organisation.
When a company is planning to expand its business operations in different market are it is
important to develop a strong and effective plan that will lead to accomplishment of desired
objectives (de Waal and Maritz, 2019).
In front of an organisation there are no. of strategies and tactics that avail by them in
order to gain outcomes in most positive manner. When an organisation is facing major issues in
performing business operations as well as offering high quality products to customers. Then it is
suggested that organisation should close or exist this business. In the case of Guildford Tyre
company, this company is face minor issues that will affect the organisation. This company is
facing issues in its business operation as well as process of production. It is essential for
respective organisation to manage these problems in impressive and expeditious manner. In
order to handle organisational issues in correct and effective manner respective company needs
to use succession strategies. respective activity enables in achieving desired goals and objectives.
Succession strategies will be very helpful for respective company to enhance its business
process as well as develop high quality products. This will lead to growth and development of
Guildford Tyre company. Succession strategy for respective company is mention below in detail.
Merger – This is considered as one of the effective strategy that will assist respective
firm to execute the business activities in most profitable manner (Héraud, Kerr and Burger-
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Helmchen, 2019). Merger strategy refers to that corporate strategy in which company is
combining business operations with other company. Guildford Tyre company will help to merger
its business activities with other different companies in order to achieve success in organisation.
This includes proper and legal agreement between companies. This will be very assistive for
respective organisation as it will be able to expand its business operations and conduct activeness
in better and effective manner. This will lead to increase business scale of operations, size,
customers and many more. Merger strategy includes different advantages as well as disadvantage
for respective company.
Advantage
 This will be helpful for both organisation as it will lead to increase in its business size
(Hodges and Link, 2019). As when two companies are combining their function than it
will lead to reduces work pressure as well as eliminate their rival companies.
 By using merger both companionship will be able to better its good will as well as market
share.
Disadvantage
 Merger strategy can have negative impact over employees as well as lead to increase in
turnover rates (Irani, 2019).
 Merger with big company will affect the small organisation as it will have major impact
on employees as well as their skills and capabilities.
Joint venture – This refers to the agreements between two parties and which are combining
their activities in order to achieve as specific task and objectives. In joint venture respective
company will be agreeing to use appropriate researches as well as accomplishing desired task
(Tseng. and Tseng, 2019). This can be considered as a cooperative enterprise that includes two or
more companies which are working together in order to achieve some particular goals and
objectives. Joint venture can be describe as those organisation which will be helpful in playing
commercial enterprise task in healthier manner as well as share their resources in order to evolve
high prime products and services. Joint venture has many advantages as well as drawbacks on
respective company.
Advantage
 This is helpful for both companies as they execute business activities in most potential
manner.
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 Joint Venture provide opportunity to business in order to gain work with new and capable
employees and expertise.
 It is enhance business performance as company will be able to easily enter into new
market area as well as use new and innovative technology in its operations.
Disadvantage
 There is huge risk involved for all those companies which is working in joint venture. It
will includes huge time as well as efforts while developing better relationship with other
company.
 Joint venture is very expensive as it will required huge amount to conduct business
operations with other company.
For Guildford Tyre company, merger will be most suitable strategy for growth and
development of company. This will help in succession of respective business as well as
achievement of desired goals and objectives.
M4 determine the exit or succession alternatives for a organisation by comparing and
contrasting for validation recommendations.
IN context of Guildford Tyres that strive in most competitive world to gain sustainability it
is very much potential for them to enlarge business opportunities. By using the succession
strategies and tactics they can grow in marketplace. By using the merger they can enhance their
possibilities of growth in other markets.
D4 Critically evaluate the exit or succession for a small enterprise by using validate
recommendations and its implementation.
It is important for respective company to critically evaluate each and every strategy in
order to select the most suited business scheme. Merger of business with other business which
will operating in new market area will help in enhance its market share as well as increase the
customer base. This will help in gaining desirable goals and objectives to remain competitive in
marketplace.
CONCLUSION
From respective assignment it has concluded that growth plays very much important role
for its business as well as its business activities. For development of organisation it is essential
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to evaluate all factors of business situation. Ansoff matrix will be helpful in determine and
identifying most suitable business strategy. There are different sources of funds available for
company which will help organisation to carry through business enterprise activeness in better
manner. Succession strategy will have positive impact over business.
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REFERENCES
Books and Journal
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.
de Waal, G. A. and Maritz, A., 2019. Analyzing for Effective Entrepreneurship Strategy: A
Corporate Entrepreneurship and Innovation Course. Revista de Cercetare si Interventie
Sociala. 64. p.57.
Héraud, J. A., Kerr, F. and Burger-Helmchen, T., 2019. Creative Management of Complex
Systems. John Wiley & Sons.
Hodges, N.J. and Link, A.N., 2019. Innovation by design. Small Business Economics, 52(2),
pp.395-403.
Irani, L., 2019. Chasing Innovation: Making Entrepreneurial Citizens in Modern India (Vol.
22). Princeton University Press.
Tseng, C. and Tseng, C. C., 2019. Corporate entrepreneurship as a strategic approach for internal
innovation performance. Asia Pacific Journal of Innovation and
Entrepreneurship. 13(1). pp.108-120.
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