Strategic Growth, Funding, and Exit Strategies for Knight and Dukes

This report examines growth planning from the perspective of Knight and Dukes, a real estate company. It begins by analyzing key considerations for evaluating growth opportunities using Porter's generic model and PESTLE analysis. The report then evaluates growth options using Ansoff's matrix, exploring market penetration, product development, market development, and diversification strategies. It then assesses various sources of funding, detailing their benefits and drawbacks, including internal and external financing options such as bank loans and crowdfunding. A business plan is presented, incorporating financial information and strategic objectives. Finally, the report assesses exit and succession options for a small business, explaining the benefits and drawbacks of each. The report aims to provide a comprehensive overview of growth strategies, funding mechanisms, and exit strategies relevant to the real estate industry.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse of key considerations to evaluate growth opportunities..........................................3
P2 Evaluation of opportunities of growth by applying Ansoff's matrix.....................................6
Growth related option for the expansion of business..................................................................6
Critical evaluation for growth option along with their risk.........................................................7
TASK 2............................................................................................................................................7
P3 Sources of funding with their benefits and drawbacks..........................................................7
TASK 3 .........................................................................................................................................11
P4 Business plan that is related with financial information and strategic objective.................11
TASK 4..........................................................................................................................................14
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Growth planning can be defined as a strategic business activity that helps to monitor,
track and analyse business growth in order to make strategy and plan for expanding the business
operations and profits. The main motive of planning for growth is to allocate all resources within
effective manner that helps management to gain competitive edge in market for attracting large
number of potential customers. This report is written from perspective of Knight and Dukes
which is operating their business in real-estate industry. It was founded in the year 1896 and in
present scenario it is one of the largest global property consultant at global level that offers
suggestion about purchase and sale of property and their infrastructure (Amornkitvikai and
Harvie, 2018). Moreover, this report focus on key considerations for growth opportunities along
with their evaluation by using different models. Potential sources of funding along with their
benefits and drawbacks will also be included in this report. In the last, business plan and exit as
well as succession plan for a specific business with their merits and demerits will be focused in
this report.
TASK 1
P1 Analyse of key considerations to evaluate growth opportunities
There are various strategies will be determined by an organisation so it is easy for
management to enhance their business area as well as number of operations for increasing
revenue and productivity of business. Porter generic model and PESTLE are mention as follow
to expand business operations.
Porter's generic model: Cost leadership- Knights and Dukes monitor daily operations of organisation constantly
to reduce overall cost of their operations and functions. So by offering cost-efficient
products it is easy for management to gain competitive edge in market through
implementing cost leadership strategy in their operations (Abolhosseini and Heshmati,
2014). Differentiation- In context of Knight and Dukes management must develop better
strategy for formulating better infrastructure for a building. This refers with creative and
new design it is easy for company to attract more number of customers effectively.

Example- all design offered by knight and dukes are flexible towards bad weather
condition such as water harvesting, natural light etc. Cost focus- The main target of cost focus is to target the market through offering all
products and services at low prices for enhancing the sale of their products. From
perspective of Knight and dukes it is mandatory for management to utilise cost focus
strategy to manage business at global level (Bozer, Levin and Santora, 2017).
 Differentiation focus- According to this strategy market is focused by organisation
through offering unique products that helps Knight and dukes to approach more number
of customers. Along with this it helps to increase goodwill as well as profits for
organisation.
By the above analysis it is determine that focus strategy is implemented by organisation to gain
better results for entering into new market to attract more number of customers. This results
profits and sale of organisational products is increases with rapid speed.
PESTLE analysis- This work as the strategic tool that helps to understand and analyse macro
environment of an organisation. So it is easy for company to formulate those strategies which
helps to deal with negative aspects of environment. Political- Political aspects refers to undertake those rules and regulations which are
formulated by country such as tax rates, trade activities, policies etc. In context of UK
this is a political stable country due to which there are less modifications in business
related policy. So it is easy for Knight and Dukes to open their new branches in London. Economic- All the monetary policy and financial aspects are considered in economic
aspects such as average income of individuals, GDP and buying power of consumer etc.
Due to Brexit real-estate industry face some challenges as high monetary amount is
required by individuals to invest in real estate business (Chlebikova, Misankova and
Kramarova, 2015). So Knight and dukes must manage their work to perform all
operations in cost effective way. Social- Social aspects includes all those aspects which are related with society such as
culture, religion, value and belief of society. People who belong to UK follow high
standard to complete their work with in organised manner. Moreover, residents of local
society of London prefer those residency which is high in natural light.

 Technological- Techniques and methodology refers to complete work with motive of
performing the work within minimum time period. It determines that it is mandatory to
perform research and development activities to learn and implement new techniques in
operations and functions of Knight and Dukes. Legal- It is related with laws and legislations of a country that is formulated by
government and industry to protect the interest of local entrepreneurs and companies. So
it work as positive aspect for Knight and Dukes because management is expanding their
branches in London.
 Environmental- Environment features includes various aspects such as pollution,
climate, water and air (Crow, 2015). UK government is involved in different perspective
that are focused towards protecting natural environment of country. Example-
Environment protection act 1990 helps companies to perform work as per government
regulations to ensure safety of environment.
Illustration 1: Source(https://blog.v-comply.com/pestel-organization-success/)

P2 Evaluation of opportunities of growth by applying Ansoff's matrix
Ansoff's matrix work as a strategic planning tool that helps managers of an organisation
to develop those strategies which help towards future growth of business. Some of the essential
strategies which was developed by Ansoff matrix is mention as follow: Market penetration- According to market penetration strategy the existing products are
sold by management in existing business area. The main motive Knight and Dukes is to
attract more number of customers which is used to acquire competitive place in market.
So management reduces the prices of products for attracting specific customers for their
products. Product development- As per method of product development strategy organisation
focuses to invest good amount in research and development division. This determines
Knight and Duke formulates or develop new products to satisfy needs as well as wants of
existing customers and market area (Donner III and et. al., 2017). Market development- Market strategy is implemented by organisation to increase sales of
their existing products by offering them into new market area. Knight and Dukes are
more motivated to perform their work with market development strategy as they are
increasing their branches in local area which are not yet covered by management.
 Diversification- This is one of the most effective strategy through which new products
are offered by organisation within new market. So that more number of customers will
purchase company offered products and services. It also determines that with proper and
controls diversify strategy it is easy for management to enter into new segment of
products as well as market.
From the above mention Ansoff matrix it is analysed that Knight and Duke must adopt
Market penetration strategy because company focused on introducing their new branches into
local market area. Along with this they are professional in developing new business area on a
land with formulating better infrastructure of a building. The major concern for management is
to open and introduce all products and services of company with local customers as it increases
goodwill of market in society and industry (Grubbström, Stenbacka and Joosse, 2014).
Growth related option for the expansion of business
Organisation select those strategies which helps to offer their products with new and
unique feature at low cost. So it is for management to sale their products with in niche market

that helps to enhance goodwill within a particular market. Focus strategy is also beneficial for
company as it helps to enter in market by increasing the sales of products and number of
customers through offering new and unique features in products.
Critical evaluation for growth option along with their risk
Their are various challenges are faced by organisation while adopting and following
focus strategy that impacts on products of company. Price of products, less involvement in
market, inefficiency of products are some risk factor that relates with focus strategy. Along with
this differentiation focus strategy also impacts on cost of operations because it requires research
and development actions for all operations. Moreover, it is also used by organisation to complete
all task with motive of gaining competitive advantage in market that enhances profits for
organisation through focus strategies (Long and Chrisman, 2014).
TASK 2
P3 Sources of funding with their benefits and drawbacks
Business is defined as an economic activity that manage and organise commercial
operations with motive of earning high profits from operations and functions of a company.
Therefore, it is mandatory for Knight and Dukes to arrange and invest financial values to
perform operations and functions of management on constant basis. Some essential sources of
finance are mention as follow:
Internal sources of finance:
This is related with generation and collection of funds from internal operations. Like to
utilise surplus profits, selling of fixed asset, formulating budgets, open for debt market and many
more. It also helps to manage fixed and variable cost of organisational operations by dividing the
task in proper manner.
By taking finance from internal sources Knights and Dukes Homes may face some advantages
and disadvantages:
Advantages Disadvantages
 It can permits Knights and Dukes
Homes to perpetuate the control and
supervision in the company.
 It enhances the process of planning
 Availability of funds for daily
expenditure decreases.
 It enlarges the possibility of
bankruptcy in Knights and Dukes

and raise goodwill of Knights and
Dukes Homes.
 It can diminish the total cost of
projects hold by Knights and Dukes
Homes.
 It provides many sources of internal
finance that may prevent from
dilution of proprietorship of Knights
and Dukes Homes and restrict outside
supremacy.
Homes.
 Internal source of financing can lead
some department unfed, so it can
hamper working of Knights and
Dukes Homes.
 Internal source of finance does not
provide any rebate in income tax.
External source of financing: This is defined as acquiring funds from external operations.
External sources of finance may include taking loan from any outside individual or group or
individual or any organisation. There are several sources of external financing, some are as
under:
Bank loan: A bank loan is a contract made between bank and the party taking loan to give a
consent to repay the borrowed money in some instalment within given stipulated time (Lu and
Yu, 2014). If Knights and Dukes takes finance in the form of bank loan they may face following
advantages and disadvantages:
Advantages Disadvantages
 Bank provides loan on inexpensive
borrowing rate, this can prevent loss of
capital in Knights and Dukes.
 There is no boundations on
disbursement of financed money, this
will increase elasticity to disburse
money wherever the management of
Knights and Dukes wants to.
 It is repayable in pre decided amount
and number of instalments so Knights
 Bank loan is provided in lieu of some
immovable asset so on non payment
that asset can be at danger.
 Whether funds are not utilised but still
instalments are required to be paid on
time by Knights and Dukes.
 If cash rotation is improper then it
become difficult to pay monthly
interest instalments.

and Dukes can plan expenditure as in
that manner so that funds are efficient
to pay instalments.
Crowd Funding: It refers to a method in which small amount of funds are taken frrom huge
number of investors to support financing of a new business enterprise through the use of social
media. There are so many websites which centralises all the investors and entrepreneurs on a
platform with the aim to increase entrepreneur-ism (Ozanne, Biggs and Kurowski, 2014). Some
advantages and disadvantage that are monitored by Knight and Dukes while gathering funds
from crowd funding are mention as below:
Advantages Disadvantages
 It is a source of funds in new era and
involves less efforts and no processing
fees.
 Sometime the investor only become the
long ranged client, and that can help
Knight and Dukes to establish business
during the process of financing only.
 It is not easier to get crowdfunding, in
that cases, if company's product or
service is unique then only they can get
crowdfunding.
 If project is a failure then it can hamper
goodwill of Knight and Dukes
negatively and this can cause risk for
coming time.

Illustration 2:
Source(http://ibbmsl2010.wikifoundry.com/page/3.1+Sources+of+F
inance)
Angel Investors: An angel investor is an individual with huge net value which provides
financial assistance to micro start-ups or business persons. Angel investment is an one time
investment, which covers financial needs of a company in its initial tough phases (Romani and
Stern, 2016). By adoption of Angel investment Knight and Dukes can come out with following
advantages and disadvantages:
Advantages Disadvantages
 In this there is no need to mortgage an
asset this will safeguards the assets of
Knight and Dukes.
 There is no load of repayment of
interest and this can increase profit if
Knight and Dukes if they get angel
investment.
 It is not suitable for small investments
needed companies.
 It is very difficult to find an angel
investors which can create difficulties
for Knight and Dukes.
 By getting angel investments Knight
and Dukes will loose its control over
the business and this can hamper the

decision making process.
Knight and Dukes can opt for bank loan financing since already it is a established company and
just require to expand business in London so it is not difficult for them to pay monthly interest of
bank loan to bank (Sarver, 2015). By this Knight and Dukes can hold control of company in
their hands only and expand their business with no interference.
TASK 3
P4 Business plan that is related with financial information and strategic objective
The term business plan can be defined as the written document that demonstrate and
explain objectives and goals of a company. This is also used by an organisation for delegating
projects or task according to skills of an individual so company objectives are achieved within
minimum time period. Moreover, background of the organisation, financial planning and
business strategy is also implemented that helps to enhance and increase market area. The
current business plan for organisation is to introduce their new branches within London market
that assist management to attract more number of customers.
Executive summary- Knight and Dukes is operating their business in real-estate industry
that provides their services and products in residential, commercial and land related objects.
Along with this company is formulating their business at global level to enhance market
operations and functions. This also refers management develops global network that
encompasses 500 office within 60 different territories by engaging more than 19,000 employees
in their operations. In context of experience company is operating their business from more than
one century and its headquarter is situated in London (Singh and Wasdani, 2016).
Vision- Management is focused to enhance customer satisfaction through offering them
new and better infrastructure that represent residential and commercial area within attractive
way.
Mission- Main motive of organisation is to gain top position in local market area by
offering new and better products through opening more branches in market. It results more
number of customers are attracted by company.

Goals- Company wants to enhance their sales through offering better services and places
for their personal and professional use that helps to generate and create high goodwill of
organisation and its services with in local and international market.
Objectives
 The main objective of organisation is to introduce company branches at new places in
local market for fulfilling the needs of customers within proper manner.
 Another objective is to capture 30% market area within a period of 6 months at local as
well as global level.
 Real-estate industry is enhancing with rapid speed this determines company must
manage, organise and perform their operations at global level (Wey, 2015). Due to which
it is easy for management to sustain in market for longer period and achieve top position
in market.
STP framework- Segmentation, targeting and positioning are some steps of a framework
that helps to target customers by understanding the market. The main motive of organisation is to
formulate and implement effective strategies that leads management to earn high profits by
segmenting and targeting the market. Segmentation- This is the first stage or step of STP process that is used by management
to divide market segments with similar characteristic and values. This leads a company to
satisfies needs and wants of customers within effective manner. It also helps to complete
all task and projects in accurate manner. Knight and Dukes helps management for
perform its task through dividing their segment on geographic basis to satisfies needs of
customers effectively (Young, 2016). Targeting- Target group refers to offer their products and services to a particular group of
persons. In context of respective organisation and real-estate industry it is identified that
there are various task are performed by management which is used to target customers
who are professional and married. This helps them to sale their products and services
effectively as target individuals required places to leaf their life.
 Positioning- Company and the management must position their products through offering
new and better products to its customers. New branches are positioned or managed by
management in central London due to which it is for customers and agents to
communicate with each other in minimum time period. Along with this company also