Strategic Growth Analysis and Funding Options for Knight & Dukes Homes

This report provides a comprehensive analysis of growth strategies for Knight and Dukes Homes, an estate agency. It begins with an introduction to planning and its importance in business management, followed by an analysis of key considerations for evaluating growth opportunities, including Porter's Generic Strategies and PESTLE analysis. The report then applies Ansoff's growth vector matrix to identify potential growth strategies. It also examines various funding methods, including net present value and payback period, and their applications. Furthermore, the report includes the design of a business plan for scaling up the business, and concludes with a discussion of different business exit strategies, along with their benefits and drawbacks, specifically in relation to Knight and Dukes Homes. The report aims to offer practical insights into business expansion, financial planning, and strategic decision-making.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse the key consideration to evaluate the growth opportunities within organisational..3
P2 Opportunity for growth applying Ansoff's growth vector matrix.....................................6
TASK 2............................................................................................................................................7
P3 Various methods through organisation access different funding and their uses...............7
TASK 3............................................................................................................................................9
P4 Designing business plan along with intend scaling up a business....................................9
TASK 4..........................................................................................................................................12
P5 Different way to exit the business along with benefits and drawbacks in relation to Knight
and dukes homes...................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning refers to a operational part within a business. In management there is need to
consider some of the approaches which should enhance the growth of business. It includes the
introduction of many of the key consideration which are part of businesses strategy. There is
need to analyse different factors which are having impact on the various function of the business
and able to give the better result along with high profit and productivity. In this report there is
discussion on the Knights and Dukes Homes which is an estate agency established in the London
since past one year. This company wants to open two new different branches in London and
regarding this, there is need to analyse the different factors which are there can affect the
business. In this report there is need to develop some of the basis overview which is regarding
the all positive and negative impact during the expansion of the businesses. In this report there is
some of the discussion about the benefit and withdrawal of the sources of funding. There is also
a business plan which is there can help in to get the business to whole new level with high profit.
There is use of the strategy which are there can help one to get the business on success while
using the different strategies. There is also some discussion which is regarding to exit the
business along with implication of each options (Jafarnezhad 2016).
MAIN BODY
TASK 1
P1 Analyse the key consideration to evaluate the growth opportunities within organisational
It is necessary to make the identification of the the opportunities which are able to help in
creating better plan for the business which can be implement as the strategy in the market. For
this purpose there is need to use the internal analysis which is regarding the resources,
capabilities and the core competencies. There should consideration about the external
environment organisation in which it is need to focus on the external environmental factors.
There is use of the Porter's generic model which is going to be discussed further.
Porter's Generic Strategies- This is one of the important strategy which is having its own
advantages. In relation to this there are some of the strategies are described below:
Cost leadership- This is the strategy which is used by the Knight and Duke homes for
the growth of the business. In this strategy, company is able to offer the product at low cost. So
this enables the customer to consume that product at large level which is one of the most

successful strategy is there in the market. This also enables the company to reduce the production
cost which is due to rule of high production decreases the overall production cost. Knight and
Dukes homes are there able to use this strategy which can help in to get the better response to get
large number of customer base there for their business (Liu and et. al., 2018).
Differentiation Leadership- This is the one which enable the knight and Dukes homes for
the growth as the small business to provide some of the unique product to their customer which
are able to satisfy the demand of each type of customer by providing different product to their
customer base. This also enables the firm to increase the price of the product which is due to
having different speciality of different products.
Focus strategy- This is the one in which there is need to have the create a better product
or with better modified product which is there can help in to growth of the business of the Knight
and Dukes homes which is there can help in to growth of the business.
So, based on above analysis, it can be said that Knight and Dukes homes are able to focus
on such strategy which can help ht business to get better in business term.
PESTLE Analysis
PESTLE analysis refers to a tool which is there user by the various organisation to which
is there can help in the analysis to understand the positive and negative impact of the factors
which are there need to analyse before adoption of new business process.
Political factor- This is able to effect the business where in Knight and Dukes homes are
able to get affect due to the tax policies, fiscal policies along with trade traffic are also there
which are having the ability to create the huge impact on the growth of the Knight and Dukes
homes business.
Positive impact- Government creates different policies which are there in the favour of the small
business to grow in the market which is able to give the high economy to the country.
Negative impact- Different government laws and policies are there. When changes are there
which creates differences in the running of the business.
Economic factor- This involves the interest rates in the business, inflation rate, economic
growth patterns along with this foreign exchange rate is also responsible in changing of the
country economy (Llausàs and et. al., 2016).
Positive impact- Knight and Dukes home business is small business and can directly effected by
the alteration in economy which can gives the high gross sales along with high profit.

Negative impact- Change in economy of the country is there, then there can be seen decrease in
the sales of the product of the company Knight and Dukes homes which is not good for the
business.
Social factor- This includes the social environment along with gauge determinants such
as demographics, population analytics, cultural trends etc. which are there can be the factor for
the growth of small business Knight and Dukes homes.
Positive impact- Knight and Dukes homes are able to provide the finer homes which are there
can have better life of living of the society which can help in buy their homes (Samuelsson and
et. al., 2016).
Negative impact- There are some of the negative impact like due to having high prices of better
decorated home having high charges are not affordable.
Technological factor- There is innovation in the technology which is having high impact
on the growth of the Knight and Dukes homes. This innovative technology is able to attract the
large customer base and helps in future growth.
Positive impact- Use of the latest technology attract the large customer base. This helps in
getting more sales.
Negative impact- Establishing of new technology demands high cost which is not beneficial for
the company and creates heavy cost. Due to investment in learning of such technology along
with training.
Legal factor- There are many of the rules and legislation there which are there need to
follow by the small business. Changes in the legislation creates resistance in growth of the knight
and dukes homes. These are the one which are there can have the greater impact on the small
businesses like knight and Dukes homes.
Positive impact- law which are there in the favour of the company can lead to the high profit and
help in growth of the company.
Negative impact- Different change are there in the law have the greater chances of loss in the
business and gives negative impact on the growth of the Knight and Dukes homes.
Environmental factor- There are different measures which are there taken by the
government. There is need to keep in mind by the Knight and Dukes homes to use the better
geographical location which should use the sustainable development and there should not be any
harm to the environment (Avin 2020).

Positive impact- Better geographical areas help in the sales of the company and also contribute in
the growth of the Knight and Dukes homes.
Negative impact- New geographical location generally don't have the access of all the services
which are there present in the main centre of the city.
P2 Opportunity for growth applying Ansoff's growth vector matrix
This is the strategic tools which refers to the planning which is to help the marketers,
executives along with senior managers for the future growth and development of the company.
There are some strategies which are there based on the Ansoff's matrix which can help the
Knight and Dukes homes for future growth.
Market development- For the growth of the company there is need to make a better
market which has minimum access to the competitors. In this type of strategy which are there
can have the new target market for their existing product. This can help the company to get new
customer base which are there in the new market and having potential to buy their product.
Knight and Dukes homes need to set their new target market which could be there in some of
new geographical location where they like to buy their product along with show high interest in
their product (Manninen 2018).
Market penetration- Knight and Dukes homes, need to use this due to having a limited
market with limited product. This is the one in which there is introduction of old product in the
existing market. This can help in get better business which is due to having old well known
product. For the growth of the company this is not the right strategy in case of Knight and Dukes
homes due not having any of the new changes which are there which are there to attract the
customer in this business. In this case, there is need to launch some new offers which are there
can help in to attract the new customer to increase the sales. At this time, this strategy is not the
right one to adopt by the Knight and Dukes homes.
Product development- In this one there is need to introduce some of the new product in
the existing market. This strategy is not appropriate for the growth of the company. There due to
not having any types of new launches but there is chance of show some creativity which are
there can help in to get some new look which are there can be new in the market along with
having better significance which creates high attraction of the customer towards the change and
able to provide increase in sales of the product, alternatively high profit (Hamidi 2017).

Diversification- This is the one in which there is introduction of new product in the new
market which are there can help in to attract large customer base who are there can be the
customer and to increase the sales of the product. For the growth as the business, there is need to
modify and offer some new speciality in the service at which is at the same range. This can help
in to get the customer and increase the sales.
From above discussed scenario of Ansoff's matrix, for Knight and Dukes homes, market
development can be the one of the best strategy which can help in getting more customer and can
expand the business with new and attractive offering (Manullang 2020).
TASK 2
P3 Various methods through organisation access different funding and their uses
Methods for financial appraisal
Method helps in to make the investment decision which are discussed further.
Net present value- in knight and Dukes homes, net present value can be defined as the
deduction of present cash flow from the cash inflow which is there in a particular period of time.
In Knight and Dukes homes, there is necessity to have the analysis which is there of the present
sales information, improvement of new ideas, along with overall cost which includes in the over
all net cash flows within business.
Payback period- In kinght and Dukes homes, it includes the process of time which is
there taken for recover the monetary belief which is there as the investment. Knight and Dukes is
able to use this method which can assist the organisation to understand the refund of initial
investment value which is there measures according to month or years.
Source of finance
There are different sources which are available as a source of finance which can be used
to achieve high growth of the business. Some of the sources along with merits and drawbacks are
discussed further (Opara-Martins 2016).
Bank Loan- This one is most common method for having support in the finance which is
there an agreement between the company and the bank which is there available to approve the
loan. There are different benefits and drawbacks there for having loan for the business.
Government also helps the small business to take loan and provide some of the subsidies on that

loan which can help the Knight and Dukes homes to get some better opportunity to get the loan
for which it can be used for the further development in the business.
Benefits- This is very easy process and arrangement of fund is easy. This requires the
legal agreement which is based on the brand image.
Drawbacks- having higher interest rate which creates higher financial burden. Knight and
Dukes homes is small company and it is quite difficult to afford such source of finance.
Government funds and grants- This is the one in which government gives some funds
to the small companies to get evolve and there can easily be provided to the small businesses
which can be the sources of fund.
Benefits- It can be given by government which is easily granted to the business unit.
Drawbacks- There is need to use the different paper works which should be totally right
and legal which needs more time to collect the fund.
Retained profit- This is the amount which is business net income which is not paid to
the shareholders.
Benefits- This is quick along with convenient and there is easy access of money along
with this there is no interest to pay.
Drawbacks- There is no money for future use, once it is invested.
Selling assets- In this, there is selling of the assets or equipment is there which is not
being used for longer period of time.
Benefits- it can help in to create space for profit, quick method, and able to raise money
from unused equipment.
Drawbacks- Sold equipment may be required in future for use and there is no getting the
full value of assets.
Family and friends- They are the one who can be the source of finance.
Benefits- low interest or no interest on that money.
Drawbacks- Can lost the money when business fails. Conflict chances due to finance is
there within family members.
From the above discussion, it can be said that bank loan is one of the most beneficial
source of fund for the Knight and Dukes company (Soar 2017).

TASK 3
P4 Designing business plan along with intend scaling up a business
Business plan
Executive summary It is a formal way of written documents which are contain the
goal of the business which is there for a specific time period
of time. Three are some of the strategies which are the part
of the business plan are discussed further.
Company Description Knight and Dukes homes is a small company which is
planing for its growth in the future. This company provides
the homes as per the customer demand.
Market Analysis STP
This is the strategy which is highly required by an
organisation to identify the potential customer and market for
the business.
Segmentation- This method helps in two divide the market in
different groups which are there can help in to get the better
market which are there as per the requirement of the business.
Knight and Dukes should choose the right geographical
location which their target customer have some interest
(Opara-Martins and et. al., 2016).
Targetting- In this after the selection of the market, there is
need to select the target customer with are there having the
purchasing potential. Knight and Dukes should target the new
couples and growing teenagers which are there target
customer for the future. Who are looking to move with their
family in their new home.
Positioning- This is the one which required more effort to
reach out in the mind of targeted customer which can help in
increase the sales of the company.
Vision and Mission- Vision is to make sure that their

customer are getting one of the best home. Mission is to
provide best property to their customer and can also invest in
future.
Goal- To carry out opening of two new branches as the
expansion to provide better services to their customer base.
Objectives- Objective of the company is to focus on
expansion of the business and create the awareness about the
brand.
Organisation and Management Company follows the horizontal structure in the company.
Goods and services This company provides the homes based on the demand of
customer.
Marketing For the proper marketing, there is need to have better
advertising agency which creates the better awareness about
the company and its product. This is very effective tool for
the future growth of the company.
Marketing mix- This helps the organisation in making
decision about their key elements. This includes the decision
about the product, price, place along with promotion of the
brand.
Financial Projections Financial projection of business plan for growth is discussed
below.
Financial projection
There is need to take care of the finance along with funds which is there in the business
and is required for the expansion. Knight and Dukes is able to generate the budget along with
cash flow for estimate the profit which are they are going to earn.

Jan Feb Mar Apr May Jun Total
CASH INFLOWS
Investment 10000 10000
Credit sales 2500 10000 10000 10000 10000 10000 52000
Total inflows 12500 10000 10000 10000 10000 10000 62000
CASH
OUTFLOWS
Project materials 3000 3000 3000 3000 3000 15000
Sub-contract labour 4000 4000 4000 4000 4000 4000 24000
Marketing 500 500 500 500 500 500 3000
Legal and
accounting
1250 0 0 0 0 0 1250
Equipment 2500 0 0 2500 0 0 5000
salaries 1000 1000 1000 1000 1000 1000 6000
Other costs 500 500 500 500 500 500 3000
Total outflows 9750 9000 9000 11500 9000 9000 57250
NET CASH FLOW 2750 1000 1000 -1500 1000 1000 5250
Opening balance 0 2750 3750 4750 3250 4250
Closing balance 2750 3750 4750 3250 4250 5250

Monitoring and controlling- Knight and Dukes homes need to continue monitor along
with this, there is also need to control all the finance and funds which are there in the business to
get confirm that either they are reaching the objective or not (Lahoorpoor and et. al., 2020).
Strategic objective for scaling up business with backup plan
Strategic objectives for scaling up business is to increase the workload along with to meet
demands of business without any type of over stretching. In this there is high requirement of
planning and arrangement of different resources. In this, there is need to take the business to
high growth with following all the rules and regulations.
No any business is full proof which means there is always risk of loosing the business. In
relation to this, there is chances that knight and duke homes should have the chances of facing
failure in relation to this, there should be chances of failure and there is need to have the backup
plan. In context to this renting and selling homes whose owner are out of country and not
available and having the property in city. In this condition business should take charge from
them and sell or rent their home according to laws and regulation. This can give high business.
TASK 4
P5 Different way to exit the business along with benefits and drawbacks in relation to Knight and
dukes homes
There is different way to exit the business in which some of them are discussed further.
Passing the business to successor- This is the way in which there is transferring of the
business to other known person or to the competent person who are able to handle the business.
Advantages- Leads to reduce the involvement of third party along with this it can also
helps in to maintain the involvement within business in future.
Disadvantages- Difficult to identify the successor along with this there is need to provide
the training and also there is chance of conflict.
Merger and Acquisition- This is a strategy which is there can help to merge the business
unit with other business unit to run (Lahoorpoor 2020).
Advantages- Helps in strengthening the business position. Enhancement in profitability
along with overall brand image and able to create the cost effectiveness and give tough
competition to the rivals.