HORSEL: Report on Business Planning, Growth, and Funding Strategies

This report provides a detailed analysis of HORSEL, a research consultancy firm, and its strategies for growth and securing funding. The report examines the importance of planning for small and medium-sized organizations and assesses various factors such as market conditions, competitive advantages, and the impact of digital technology. It emphasizes the use of the Ansoff matrix for evaluating development possibilities and explores strategies like cost leadership, differentiation, and focus within Porter's Generic Competitive Strategies. The report also includes a PESTLE analysis to understand the political, economic, social, technological, environmental, and legal factors affecting the business. Furthermore, the report discusses different funding sources and investment decision-making techniques essential for the company's success. The conclusion summarizes key findings and suggests recommendations for HORSEL's future growth and financial stability, especially in securing a government contract.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 ...........................................................................................................................................1
P2 ...........................................................................................................................................5
TASK 2............................................................................................................................................7
P3 ...........................................................................................................................................7
TASK 3............................................................................................................................................9
P4 ...........................................................................................................................................9
TASK 4..........................................................................................................................................11
P5 .........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning plays essential part in small and medium-sized organisation in success and
growth of business functions. For this, entrepreneur need to asses different factors while framing
policies that make different functions according to which their conditions currently working in
competitive market (Valler, Phelps and Wood, 2012). This report is give an emphasis on
HORSEL it is a small scale organisation which give research and evaluation services to other
companies for problem solving and make them function smoothly. Company is applying for
government contract, for which entrepreneur require to have £300,000 of money for bidding
process, but firm has only £20,000 and unexpended amount is to be taken from other online
sources. This report defines different fundamental circumstances and make an emphasis on
Ansoff matrix that is used by business person to evaluate development possibility. There are
Various actual sources which are assess by individual by having sufficient assets for making
appropriate program for business enterprise. Along this, there are different sequence and exit
options are given which are recognised by an entrepreneur for making adequate conclusion for
the development of the business concern.
TASK 1
P1
Businessperson evaluate different components and market conditions to execute activities
and sustain position and reputation in market. For this, it is essential that rival brands are
acknowledged by superior to design system and utilise resources efficiently. Along this, latest
technologies such as IT cloud, artificial intelligence and digital testing adopted by organisation to
implement innovative ideas in system. HORSEL is research consultancy firm which require to
utilise funds properly to achieve growth tactic. It is necessary that appropriate plan is formulated
and followed by entrepreneur to accomplish adequate results and targets timely. Collaboration,
competitive analysis and innovation are various tactics which are assess by manager is explained
below:
Competitive advantages: This aspect defines that businessperson require to utilise
resources properly to conduct the business action impressively. It is primary term in which small
and medium firm to design system to verbalise quality unit and different services in marketplace
in respect to competitors. SME's require to have sufficient resources such as funds, equipments
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and manpower which are used efficiently by top personnel to sustain position of firm in market.
Besides this, management of HORSEL even need to frame USP to provide core competence for
firm (Levy, 2016). Company require to have skilled and competent members which provide
appropriate consultancy services and solutions to other firms to make them operate properly. IT
cloud, artificial intelligence and digital testing are various software which help management to
construct core competencies in respect to rival firms.
Porter's Generic to identify competitive analysis : This framework was formulated by
Professor Michael Porter in 1980 which defines different procedures that are used by
organisation to construct appropriate position in market. It is essential that entrepreneur of
HORSEL uses this model to anticipate advantage and target to formulate policies and make
system function accordingly. These are four tactics which are used by entrepreneur of HORSEL
to consider two components that is cost and differentiation for constructing competitive
advantage is descried below:
(Porter's Generic Competitive Strategies, 2016)
Cost leadership:This process defines small and large firms to be have shortage of
finances that are used comely. It is necessary that appropriate techniques and equipments are
used by companies to provide products and services at reasonable rates. HORSEL conducts
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Illustration 1: Porter's Generic Competitive Strategies

research and provide consultancy services to other firms. For becoming cost leader in their
industry, superior require to examine all sources for formulating cost advantage.
Differentiation leadership: It is another strategy which specifies that companies require
to provide unique products and services to establish appropriate position in market. Management
responsibility is to consider and assess different attributes that are essential for consumers to be
present in items and services for fulfilment of their demands and needs. In HORSEL,
businessperson require to have skilled and competent staff to conduct research and provide
appropriate consultancy and solutions to clients to overcome problems, thereby make system
function effectively.
Focus: This strategy is part of generic matrix which defines that management of small
and medium firms require to make decisions about competitive scope within sector. It is essential
that top personnel chooses a particular segment or more to conduct business accordingly. These
are two focus which are selected by organisation in according to their capabilities are stated
beneath:
Cost focus: It is efficient tactic which specifies that organisation require to construct
competitive advantage in respect to their target segment. HORSEL is small firm which require to
fix appropriate prices for grabbing attention of people. It is necessary that different ranges are set
by to personnel to establish appropriate position and share in market (Beatley, 2014).
Differentiation focus: This is another strategy which defines that management design
products and offer services which are completely different from rival firms. It is essential that
premium prices are set to attract large number of people by providing appropriate quality items.
HORSEL is small firm which have talented staff and use advanced technologies to provide
consultancy and adequate solutions to clients opted out of a niche market.
PESTLE analysis: It is an appropriate technique which is used by businessperson to
linkage of competitive advantage with growth opportunities. This help them to make changes in
system according to situations prevailing in market. It is essential that management assess
competencies and availability of resources to utilise growth opportunities. Entrepreneur of
HORSEL conducts Pestle analysis which is stated beneath:
Political factor: Government formulate policies and provide license to organisation to
make them function legally. Entrepreneur of HORSEL require to register firm and frame
different laws and strategies for authorities. This help company to execute operations effectively
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and sustain its position in market (Barbour and Deakin, 2012). In UK, government and Crown
commercial services launch various schemes and invest money for giving opportunity to SME's
to enlarge business to provide products and services to people.
Economic factor: This tactic comprises different components which changes due to
changes in conditions of market and country. Interest rate, inflation, exchange rate, growth,
employment are different elements which affect on functioning of system. These are different
changes which entrepreneur of HORSEL consider to implement changes in system in according
to availability of funds. In UK, market has inflation and growth which help entrepreneur to
expand business and have good number of clients for enhancing their sales and profit.
Social factor: It defines a process that provide different variety of products and services
to people. It is essential that businessperson of HORSEL to implement appropriate technologies
such as artificial intelligence, IT cloud, digital testing and so on in system to provide research
consultancy services to other companies, thereby overcome their problems and issues. UK has
large number of firms which faces different issues and problems, for which they require to get
support from other companies.
Technological factor: This tactic specifies business firm need to exercise appropriate
instruments and techniques to provide different types of services to consumers. It is necessary
that small and medium-sized organisation utilises resources efficiently. For this, HORSEL need
to use modern technologies and software to provide appropriate facilities and solutions to clients.
IT cloud, artificial intelligence and digital testing are various software which help management
to enlarge business and provide appropriate services to clients.
Environmental factor: It is another aspect which management require to consider while
designing system is affect on climatic conditions. Entrepreneur of HORSEL uses advanced
technologies which help them to provide research and consultancy services to clients. This help
superior to conduct research for other firms and give them appropriate solutions about usage of
natural resources efficiently. Along this, manager even provide suggestions to clients about
benefits of technology to provide quality products and services which are not harmful and
dangerous for health of people.
Legal factor: This tactic defines that government have formulated various act and laws
for protecting rights of employees. It is essential that management of HORSEL provide proper
treatment, working environment, duties and compensation to members to have skilled and
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competent staff in firm (Chapin, 2012). This help company to have skilled and competent
members which retain for longer time. Thus, management is able to expand business and open
new branches to increase customer base and sales volume.
Impact of digital technology: HORSEL is research consultancy firm which require to
have adequate techniques and equipments implemented in system to provide quality services to
clients. In this, digital technology plays essential role and support entrepreneur to have large
market reach and customer base. Along this, it also benefits management to utilise funds
efficiently and sustain its position in market in according to rival firms.
P2
Businessperson evaluate chances of enlarging business to sustain its position in
marketplace. It is primary term that provide variety of products and services for small and
medium enterprises to use the resources properly and attract large number of people to enhance
sales volume. Ansoff growth matrix is model used by entrepreneur of HORSEL to examine
growth opportunities and make changes in system to provide innovative and creative items and
services to clients (Eddleston and et. al., 2013).
Ansoff's growth vector matrix: It had developed in the year 1957 by H. Ignor Ansoff.
This model helps businessperson to construct appropriate strategic marketing plan for
organisation to make it function in according to market conditions. There are four constituents
which are part of this matrix that had stated beneath:
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Illustration 2: Ansoff Model
(Source: Ansoff Matrix, 2015) Market penetration: This is a first element of matrix that specifies an organisation need
to enlarge existing products and services to increase its portfolio to attract large number
of people. HORSEL is research consultancy firm which uses this strategy to target and
grab attention of large number of clients by promoting and advertising information about
their services and simultaneously reducing prices of services offered. Product development: It is another part of matrix which defined that businessperson
require to launch new items and services to target its present market and attain growth.
For this, market research is right method utilized by head personnel of HORSEL to have
close and absolute content close to requirements of people and competitor's offering.
Research and development is team constructed by management to make changes in
system and technologies to such as IT cloud, artificial intelligence and digital testing to
provide consultancy services and solutions to other firms (Grover, Bokalo and Greenway,
2014). Market development: It is stage of matrix that explains that firms need to expand
business and increase market reach. This helps top personnel to target large amount of
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customers that increase the sales profit and gross sales . Businessperson of HORSEL
have option to enlarge business and enter into new market to increase client base. It is a
small firm that utilised effective resource to establish and preserve its place in
marketplace in respect to rival firms.
 Product diversification: This is end part of matrix which specifies the companies need to
provide various assortment of items and work in respect to requirements and primary
demand of the people. In an organisation, businessperson do effective market study to
assess rival firms and need of customers (Keough, 2015). HORSEL is research
consultancy firm which require transformation in technology to provide appropriate
services to other companies. Company can diversify their services by providing
marketing and promotional services to existing clientèle of the business so as to achieve
better results. .
TASK 2
P3
Each organisation whether it is small, medium or large scale enterprises, finance plays
essential part. Businessperson require to have sufficient capital to organise appropriate business
operations for organisation. It is essential that different sources of funding are acknowledged by
them to select best techniques which grant them money at appropriate rate and time period.
Investing decision making: Entrepreneur of HORSEL uses different techniques such as
pay back period and net present value to have accurate information about selecting appropriate
sources of finance. These are two tactics which are used by top personnel are stated beneath:
Net present value: This process is also known as discounted cash flow method. This
technique of capital budgeting which consider time value of money and base for acceptance and
rejection of a proposed project. For computing this, cash inflow and outflow difference is found
which is NPV and deciding element for project (Li, Mobin and Keyser, 2016).
Pay back period: This is another tool in which recovery time of investment is
acknowledged by firms for wither accepting or reject project. Businessperson select project in
according to initial cost and payback period to select best project which are beneficial for
company.
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HORSEL is SME which is entering into government contract for “Research and
evaluation services in relation to problem solving of other enterprises ” and making bid for same.
Entrepreneur require £300,000 of money for bidding process, but firm has only £20,000. Along
with this the overall bid of whole contract is £80000. thus company needs to borrow rest money
from various sources such as:
Sources of finance: These are different tools which are used by businessperson to have
sufficient money for conducting operations effectively. These are different sources of funds
which are used by company is expressed below:
Bank loan: It is cost-effective process utilised by organisation to raise funds by taking
help from business enterprise institution. Bank has adequate money which an individual taken on
lend for definite time period and are in rigid interest charge. There are three forms of loan which
are given below-
short term (2 to 3 years), medium term (3 to 5 years) and long term (above 5 years). Benefits: Bank loan is adequate instrument to organisation in which all entrepreneurs
have to pay the tax that is deductible. This yield them encouragement to get appropriate
benefits from government to arrange funds for execution of activities effectively
(Mitchelmore and Rowley, 2013).
 Drawbacks: Bank loan even had definite demerit that decrease in value of firm, if
management didn't pay interest and money on time. Along this, as certain assets are kept
by organisation for security gets seized. This impacts on image and goodwill of company
in respect to rival firms.
Crowd funding: This is another technique in which people form group and collect money
which can be provided to particular individual or firm. In this, internet serve as medium for
constructing relations and communication between investors for making appropriate judgements
in respect to their money flow and spending. Benefits: This is fast tool which is used by individuals to take support of experts about
improving business ideas. Along this, feedback from borrower is taken to acknowledge
their requirements and use of money.
 Drawbacks: It is not legal process, as it has not required to follow government norms and
regulations. This affect on business functioning which makes it less popular for big
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organisation. Along this, borrower might not have patented business ideas which have
risk of getting stolen by other person (Moseley, 2013).
Angle investors: It is another tool used by firms is to take funds from other company
which is formed to provide money to gain adequate amount of return. This helps entrepreneur to
use this technique to enhance productivity and business activities. Benefits: Investors are talented and skilled staff which have complete knowledge about
business. They provide funds to provide support to other firms to enlarge activities for
their growth purpose.
 Drawbacks: Angle investors didn't follow government norms, thus they have fixed large
interest rate which affect on other business. Along this, they didn't give funds easily and
demands collateral security which is impossible for an entrepreneur.
For this organisation, Bank loan is the effective and appropriate source of funding
because most of the banks and financial institutions provide fund at low interest rate. So this can
be beneficial for the company.
TASK 3
P4
Business plan is written form which is formulated by entrepreneur to specify different
methods for aspect of firm, operation,feasibility, products and services, internal analysis and
financial information. Along this, changes in strategies and technologies are made by superior to
make growth and success with time.
Business plan of HORSEL:
It is written document which defining the nature of the business, the sales and marketing
strategy and the financial background which including a projected profit and loss statement. The
template of business plan include various component like company description, products and
services, Strategies, financial plan and others.
Company Description: HORSEL is small scale firm which conducts research and
consultancy services to different firms. This enterprise have skilled and competent people which
conduct business operations effectively. Along this, advanced technologies are implemented in
system to provide appropriate solutions and support to clients to help them overcome problems
properly. Company is engaged in bidding in research and evaluation services in relation to
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