Planning for Growth: Knights and Dukes Homes Business Report

This report provides a comprehensive business plan for Knights and Dukes Homes, a real estate company considering expansion through new branches. It begins with an introduction to growth planning and its importance, followed by an evaluation of growth opportunities, considering market size, management skills, competitive advantages, resource availability, and external factors analyzed through the PESTLE framework. The report then analyzes growth options using the Ansoff Matrix, including market penetration, product development, market development, and diversification, recommending market penetration as the most suitable strategy due to its lower risk. The report also includes the design of a business plan with financial information and concludes with a discussion on exit and succession strategies.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
Section A.........................................................................................................................................3
Task 1...............................................................................................................................................3
Key considerations while evaluating growth opportunities for Knights and Dukes Homes.......3
Options for Growth......................................................................................................................6
Task 2...............................................................................................................................................8
Design a business plan for growth which include financial info...............................................8
Section B........................................................................................................................................11
Task 1.............................................................................................................................................11
Exiting Strategy.........................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Growth can be defined as increase in size in terms of the business and its growth, it can
be defined as increase in the size of business in terms of its activities and their expansion.
Increase in profit and productivity of the business, these are different types in which a business
can grow. Planning for growth is a planning that is concerned with growth of business in which
all the factors that affect growth of the business in its internal and external environment are
considered and followed by this strategies are developed so that factors cannot make any kind of
negative impact on the growth of business. This report is based on planning of growth for
Knights and Dukes Homes, the company operating in real estate industry is considering opening
of two more branches. This is growth of business operations and this subsequently will lead to
growth of profit and productivity of the business. In the process of planning for growth this
report will firstly undertake evaluation of growth opportunities that are available for the
company and possible risks. On the basis of identified opportunities later a business plan will be
developed. In other section of this report exit and succession strategies will be discussed.
Section A
Task 1
Key considerations while evaluating growth opportunities for Knights and Dukes Homes
There are several factors that affect success of the business and it is very important to
consider these factors while evaluating opportunity for growth. Some key considerations are-
Market Size
This is an important consideration in growth opportunities. This is especially applicable
for Knights and Dukes Homes because they are looking to expand their operations. Expansion of
their operations and success of growth is only possible when size of market is large enough to
give advantage of expansion (Poblete and Mandakovic, 2020). The market in which Knights and
Dukes Homes is operating has potential large size and this is why expansion of operations can
provide advantage to the company. Analysing market size also involves analysing and

identifying demand because in case market size is big but demand is limited company might face
difficulty in selling their products.
Management Skill Set
This is another important consideration in growth opportunity and this is concerned with
available skills and knowledge of the management to deal with more difficulties and challenges
that come along with growth of the business. This means that management should have all the
adequate and required skills that enable them to manage the business with its growth. This is
because it becomes more difficult to manage a business when size of the business is larger. The
risk that is involved in this is that if management do not have adequate skills their
mismanagement will lead to losses. Skills set in this involve basic financial management,
marketing, sales and communication, leadership, negotiation, conflict management, networking
and problem solving skills.
Competitive Advantage
Competitive advantage is very important as it create foundation for the growth and
success of the business (Covington, 2018). Organisation enables it to gain competitive advantage
by employing resources, capabilities and core competencies. The resources involve financial,
material, Human resources etc. Capabilities involve specific capabilities to attract and retain
customers, managing low cost and high growth margins etc. Competencies in this are through
which organisation enables it be attractive for customers. Communication and networking
competencies can be an example of this. It is very important to understand competitive
advantage while analysing growth opportunities. In this company also needs to properly consider
its competitors and what are their advantages and disadvantages. Working on their disadvantages
and employing its advantages will also allow it to gain competitive advantage toKnights and
Dukes Homes. In absence of competitive advantage firm might fail to sustain the growth. It is
important that resources, capability and competencies of organisation enable it to create cost
leadership or differentiation leadership. These enables it to gain competitive advantage.
Availability of Resources

This is another important factor to be considered while evaluating growth opportunities.
This is important because resources enables firm to carry out its activities successfully. In this
resources that are mainly required are financial resources, human resources and other material
resources. Knights and Dukes Homes will also require analysing availability of resources that it
can employ for its growth and expansion. In case, resources are not available Knights and Dukes
Homes will not be able to execute its plans for growth. This is a huge risk in planning for
growth.
External opportunities
These are the opportunities that are available in external environment of the market and
this is why it is important that these opportunities are considered (Saebi, Lien and Foss, 2017).
This environment also possesses several threats and they should also be considered in order to
understand their impact on the growth plans of the company. External factors are important as
they can affect growth of the company and they can be understood with help of PESTLE
Framework. This framework involves six factors that are there in external environment of the
business. These factors are-
Political
This is concerned with impact of politics and political environment of the country on the
business of Knights and Dukes Homes. This also involves attitude and favours that are provided
by government to the SME’s (Simões, 2020). This environment consists of both opportunities as
well as threats. Political factors affecting Knights and Dukes Homes is rates of houses and
different political decision affecting business of real estate.
Economical
This is another environmental factor that exist in external environment of the business
and this mainly includes financial aspects of the business. This includes cost of operations,
taxation, GDP, income level and financial position of the selected market segment.
Social

This is concerned with customers of Knights and Dukes Homes and what are their
preference and tastes (Adebara and Olaleye, 2019). This is important because businesses have
become customer centric and this is important that they are provided what they need and what
they ask.
Technological
Technological involvement in business and how it can be used to deal with threats and
utilise opportunities of the business.This has become centre of success of the business and this is
why it is important that this factor is provided due attention as this can avail several opportunities
to business. This is big data and virtual reality technology through which they can enhance
presentation of their business.
Legal
This factor involves elements that contribute in governance of the business. Legal factor
involves all the rules and regulations that govern business and activities. Firm should also
consider impact of this factor of their growth opportunity. Certain laws that affect Knights and
Dukes Homes involve law of property act 1925, Land Registration act 2002, etc.
Environmental
This is concerned with analysing impact of growth on the environment. This has become
a sensitive issue and this is why it is important that this factor is given due attention (Adebara
and Olaleye, 2019). Howeverthis factor also involves several opportunities for business
operating in present business environment. Environmental factors for Knights and Dukes Homes
are involving sustainable practices for construction that has least impact on environment.
These were some of the key considerations while evaluating growth opportunities of the
business. Some of the options thatKnights and Dukes Homes could consider for growth of the
business are-
Options for Growth
Options for growth can be identified and analysed with the model of Ansoff Matrix.
Growth options provided by this model are-

MarketPenetration
This is one of the growth opportunities available for the Knights and Dukes Homes. In
this organisation is required to undertake actions and strategies through which it can increase
sales of its product in existing market. Market and product both remain same hence it reduces
risk of resources and their utility. The company in this opportunity of growth will require to
increase promotions and visibility of the brand and services and provides sales offer so that it can
attract more customers (Martins, 2020). To this growth opportunity cannot provide long term
benefit but it can extend product lifecycle. Risk involved in this opportunity of growth is least as
compared to other opportunities for growth. This is because company does not invest any kind of
resource and product is also known to customer.
Product development
This is a strategy in which Knights and Dukes Homes will need to create new product to
satisfy needs and desires of existing market and customers. This is one of the important growth
opportunity and this involved innovation. This opportunity and strategy is very important
whenProduct life cycle of company completes and it requires to bring new product in the market
in order to remain competitive. There are several risk involved in in this opportunity of growth
and the risk involved in which are required resources possibility of failure of the product. Factors
of the product become one of the important factors to consider because this increase is risk
associated with the product and success of company in its growth (Galpin, 2019). The risk
involved in this can be reduced by ensuring that product which has been developed by company
is able to fulfil the requirements of customers and provide value in exchange of money.
Market development
This is another opportunity for growth that is available to the Knights and Dukes Homes.
Market development is a strategy and opportunity in which company develops new market and
provide existing product in new market. Development of market refers to increasing the reach of
product to more thickness of customers market which can be in terms of increasing utility of the
product and expansion of activities in terms of Geographic market. In this opportunity even the
product is same and product development is not carried out hence resources are not required and
financial risk is low. But in this strategy the risk is associated with success of product in new

market (Loredana, 2017). Developing New Market involves extensive efforts of company and
this is why failure in growth might result in wastage of all the effort that company have made to
develop new market. In order to reduce the risk associated with this strategy of growth Knights
and Dukes Homes will require to identify a market which is similar to it existing market. This
will reduce the risk about product being liked by the customers.
Diversification
This is a strategy in which Knights and Dukes Homes developed new market and provide
new product in that new market. In terms of risk this opportunity of growth contains highest
possible risk. This is because in this company invest all kind of resources that are financial
manpower and risk also increases because of and Awareness of customers and product to the
customers. This means that if customers do not like the product and product is not capable to
cater needs and desires of customers all the resources will become a wastage and company might
need to face huge losses (REZAEI, KHAVARIAN and GHAFURZADEH, 2016). This
opportunity of growth is very much similar to starting a new business and hence risks involved in
this are like risks that are involved in starting new business. However by making effective
research concerned with customer preferences and choices Knights and Dukes Homes can
developer product according to market in order to reduce risk and grow its existing business.
Effective product is the only way that company can reduce the risk associated with this
opportunity of growth.
Among all the strategies that have been analysed above it can be said that for company
Strategies and opportunities that are suitable are market penetration. The reason behind this is
that risk involved in in this opportunity is least as compared to other opportunities and chances of
factors are also high.
Another opportunity that is suitable for company is market development because it is a
estate agency business and it has a huge market. With the opportunity of market development
company can grow it existing business (Tukdeo, 2016). Consideration of company to open 2 new
branches will also match with the strategy and opportunity of market development in which
company can open its new branches in its potential market. Along with this risk involved in this
opportunity is also low as compared to diversification and product development. However

product development can also be a useful opportunity but business of real estate is primarily
based on development of product hence focusing specifically on which strategy can be avoided.
Task 2
Design a business plan for growth which include financial info
Every business requires a proper plan in order to grow and develop in the market. The
plan consist of goals and objectives that needs to be attained. Besides that plan gives an insight
on what is mission, vision, situational anlaysis of company. So, a plan is made to enter in new
market or to develop a new product or service. Thus, here business plan is developed that is
described as below
Executive summary – in this it has been described about business plan of Knight and Dukes
homes along with some aims and objectives. Also, swot and pest analysis is done to find out
what factors are impacting on its operations and growth. Furthermore, marketing mix has been
explained of developing of new service by company. In addition, financial plan and budget is
discussed. At last evaluation methods has been explained.
Background- Knight and Dukes homes is a real estate agency founded in 1896 by knight and
frank. It is one of global property consultancy firm offering residential and commercial
services. The company is headquartered in London,, England and there are more than 14000
staff working in it. There are total 500 offices in around 60 locations all over world. It generated
revenue of $817 billion in 2019 (Brill, 2017.).
Aims and objectives
 To offer new product that is own real estate commercial as well as residential property.
 To start own real estate development business and increase profits
 To expand in emerging markets and attract customers.
SWOT
Strength- company is having a good reputation and brand image in the market.
It operates at global level so it is recognised with its presence
It is having best professional team as compared to rivals within industry
It provides variety of services to customers such as asset management, sales, leasing, etc.
They also provide services like to invest in real estate, and other.

Weakness
The people are still not aware about its presence due to lack of promotion.
Opportunity
It can undertake various real estate project by collaborating with government.
By construction office so that more customers can be attracted.
Threats
High rise in competition in real estate industry (Chirico, and et.al., 2019)
Due to covid 19 threat of recession in industry
Marketing mix
Product - this P describe the product or commodity offered by company to people. It may be
either tangible or intangible. So, Knight and Dukes homes will offer new product that is own
real estate commercial as well as residential property.
Place- it is related to location or region where products and services are available. the place
needs to be convenient enough so that more people can reach easily reach it. Thus, Knight and
Dukes homes will offer services online that is via their website to people.
Price – this is important P as it depicts price at which services is available. the price must be
affordable to people. So, Knight and Dukes homes will follow premium pricing strategy and at
initial stage services will be available at high prices (Covington, 2018).
Promotion - the P refers to way of promotion of services to create awareness among people.
There are different ways of doing promotion. Thus, company will promote it by using social
media sites such as Facebook, Instagram, etc. and also on their website. Besides that, they will
use digital marketing as well and by sending e mails.
Financial budget
In order to execute business plan it require funds. Thus for that a budget is prepared for
2 years that is as follows
Particular Year 1 Year 2
Sales revenue $3674 $3436
Cash balance $1000 $1000
Expenses

Advertising $1500 $1700
Salary $2000 $2300
Promotion $1800 $2500
Production $5000 $9000
Monitoring and evaluation
It is important to do monitoring of business plan to find out if outcomes are attained or
not. So, here evaluation will be done by comparing results with set goals. Along with it, KPI
will be used in evaluating plan. For monitoring progress report will be prepared so ensure that
plan is implemented properly.
Section B
Task 1
Exiting Strategy
Exit and succession options can be considered as one but are different. Succession
planning involve identifying training and transferring leadership and management of company to
another person. Exit planning on the other hand is concerned with identifying and executing
transfer of business ownership to another person organization. There are several ways in which
Knights and Dukes homes can execute exit or succession of the business. The strategy and
options to do so are as follows-
Liquidation
This is one of the easiest strategy to exit business in which business can tell all the assets
they have and wind up its activities. In this strategy and option of exiting the business activities
get completely wind up (Hsu and et.al., 2016). However with strategy of exit is not suitable for
Knights and Dukes home because it is suitable for those businesses that have single ownership.
But in order to make this strategy a successful strategy Knights and Dukes homes will require to
make 1 the business that is worth buying by others. This means that others are willing to buy the

business completely. Advantage of this strategy of exit is that this is one of the simplest strategy
and business can be bound up in a very short time. Along with some disadvantages of the this
option are that many times assets or even the complete business does not get adequate amount in
exchange of sale.
Liquidation overTime
This is another exit strategy in which owner of the business extract most of the profit
associated with the business over time. And rather than reinvesting the profit and Company
owner of the company keep all the profit with them. This is done over time and owner of the
company get the profit by taking large salary and dividend before eventually e closing the
business (Jacks, 2019). However this is not a suitable option for a company because extracting
profits might reduce value of the company and subsequently while sale of a company it will get
lower price for selling the company. This is also not suitable when there are more than one
owner of the company.
Selling the business to Managers and Employees
This is another exit strategy and this can also be considered as succession strategy in
which current business and managers of the business are sold the business. This option for
succession and exit is suitable for the Knights and Dukes Homes because currently it is
employing employees and managers who develop knowledge of all areas of the company and are
capable to run the business on their own (Chirico and et.al., 2019). This is one of the advantages
of this strategy that success of the business will remain for long because employees and
managers are familiar with the business. in this strategy and option for exit of the business
owners can also have a sharein business that can be in form of advisory position within the
company. However, this company is estate company in this is why clients of the company may
not be happy and satisfied with this decision of the company in which employees get the
ownership of the Knights and Dukes Homes. Another challenge regarding success of this option
is that employees might not have enough financial resources to buy the company.
In order to resolve this problem and deal with these challenges it is recommended that
Knights and Dukes Homes arrange a long term buyout. This means that employees can take the
ownership of company after a certain period. In this period employees will be able to arrange

financial resources and their motivation and loyalty will also increase. Another benefit of this is
that when employees will get enough time and they are aware in advance that they will be
buying the company in such situation they will be able to influence customers and build
favourable relations with them. This is howKnights and Dukes Homes will be able to deal with
all the challenges of this option.
Selling the business in open market
This is another option available for exit that Knights and Dukes home can execute. In this
option of exiting and closing the business owner of the business tell their company when they are
likely to get retire. In this option business is put into open market for sale with 13 amount. One
owner of the business has sold the business they walked away with the money they have got in
exchange of the business (Brill, 2017). However there are several benefits of this option purchase
profitable and successful business are able to attract buyers and subsequently they can sell their
business on a higher amount and quickly. In successful business assets and Goodwill is also
valued and which maximize the return for owner of the business. This option regardless of this
benefits is not suitable for Knights and Dukes homes because it is a state company and it can be
very difficult for company to sale their business in open market.
It is recommended that regardless of any difficulty that company might face while selling
the business in open market it can earn good amount if the company is successful and have
Goodwill in market.
Initial public offering
This is the strategy of succession and exiting in which company offers its share in public.
There are several benefits of employing this option and one of them is that this option can be
extremely profitable for Knights and Dukes homes (Mason and Botelho, 2016). But this option
also have some disadvantages and difficulties and one of this is that becoming a public company
can be a difficult and costly process that takes a long time.
On the basis of above discuss options for succession and exit initial public offering and
telling the business to managers and employees of business are some of the effective options for
Knights and Dukes home.

CONCLUSION
On the basis of above discussion it can be concluded that growth and success of the
business is interdependent and in order to grow business and maintain its success it is important
that it is properly planned. In order to ensure that planning brings most effective results it is
important that all the factors affecting planning and success of the planning and growth of
business are evaluated. Concerned with this factors were discussed in the report that affect
growth and are required to be considered while evaluating growth of the business. The main
factors to be considered are resources required for growth, capabilities and competencies
required by management to manage growth. In this leadership is a key requirement while
considering growth of the business. Later, some of the opportunities were too discussed that can
be utilised by the company based on Ansoff Matrix. This analysis and evaluation followed by a
business plan for growth. In this report exit and succession strategies were also discussed that
can be adopted by the company. The complete discussion suggests that company can adapt to
market development and market penetration strategy for the purpose of its growth.

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