Business Growth Strategies: A Report for Lewis Fire & Security Ltd

This report analyzes the growth strategies for Lewis Fire & Security Ltd., a UK-based security systems provider. It explores key considerations for growth, including the analysis of market trends and the adoption of advanced technologies. The report utilizes the Ansoff growth matrix to identify oppor...Read More

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Analysis of key consideration for growth opportunities in organisation context.................1
P2: Identification of growth opportunities by the use of Ans-off's growth matrix.....................2
M1: Options for growth and demonstrating the understanding of competitive advantage.........4
TASK 2............................................................................................................................................4
P3: Potential sources of funding and their advantages and disadvantages.................................4
M2: Evaluation of potential sources of raising funds.................................................................7
TASK 3............................................................................................................................................7
P4: Develop a business plan and communicate to intend scaling up as business.......................7
M3: Developing an appropriate business plan..........................................................................10
TASK 4..........................................................................................................................................10
P5: Exit and succession option for small business....................................................................10
M4: Evaluate exit or succession options for a small business..................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is an essential requirement to made by the management of an organisation in
order to achieve growth and success in competitive market for longer period of time. For this, an
effective management are required who are more capable to formulate an effective plans and
policies after analysing market trends. Investment in adoption of advanced and updated
technology in the business operation are the part of an effective strategy which brings profitable
outcomes to company in near future. Lewis Fire & Security Limited, a small-sized company of
UK which deals in providing wide variety of security systems includes CCTV systems,
protection systems etc. is selected for the purpose of preparing this report. The present report
determines the growth opportunities available to an organisation in order to achieve competitive
advantage among rivals. In addition with this, different sources of raising funds along with their
advantages and disadvantage to company are also covered under this report. All other aspects are
also discussed under this report with the context of Lewis Fire & Security Ltd (Bryson, 2011).
TASK 1
P1: Analysis of key consideration for growth opportunities in organisation context
A business is subject to deals in dynamic environment full of uncertainties which leads
to immense cut throat competitions among leading business firms to gain maximum market
share by hook or by crook. Therefore certain business adopts a number of unethical ways to get
access to competitors confidential data and information though many physical as well as digital
intruders. Therefore security of a business cannot be cut cornered by any firm, for which today
companies invest a large amount of its resources for keeping its data and facilities secure.
Lewis Fire & Security is one of the leading firm that has establishes its elf as a leading
brand in providing innovative and latest fire and security solutions to its clients. Company
provides a wide range of customized design, installation and maintenance services to meet out
the specific requirements of its clients by providing them superior and latest security instruments.
Firm in order to solve its consumers fire and security challenges carries out impressive array of
business accreditation guaranteeing its customers to provide highly standardize fire and security
installations. Company provides a wide variety of services comprising CCTV systems, fire
protection, integrated system, intruders alarms, maintenance and access control gates. To
enhance its market share and to maintain its lead in the industry it is of utmost importance for a
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firm to be innovative and proactive in developing its services as in accordance to customers
requirements as well as with developing technology which will reap higher benefits to the firm.
For this purpose company can grab the mentioned below opportunists that are available to it due
to latest technological updates that have emerged in recent times:-
 By making use of latest technologies Lewis Fire and security can make necessary
modification in its current products and services. With the recent trends that are
prevailing in commercial security system company could now introduce alarms and
security cameras that have smartphone access wherein a an individual can arm or disarm
system simply by using his smart phone and can access cameras that are been installed
at their workplace. This makes the individual to be connected with commercial alarm
and security system till it ha s internet connection.
 With emergence of advance technology company can now make use of artificial
intelligence technology in its security system and products. This will prove to be very
beneficial for its customers as although they are different, however the locations where
they are based is tend to share same general category, with individual exhibiting similar
behaviour. Thus, once those behavioural pattern have been learned by the system that
particular underline pattern could b shared , enabling system to be active whenever
something occurs.
 Another effective and profitable way to attain growth is by falling into mergers,
collaboration, strategic alliance etc. with the key players in the market which will help the
firm to make use of their technology in development of their products and services.
Another benefit it will reap for firm is by deceasing its competition in the market.
 Other opportunities that a firm could grab in order to maintain its edge could be by
specializing themselves in building security systems aper their clients requirements and
providing more specific solutions to their individual problems at affordable prices.
P2: Identification of growth opportunities by the use of Ans-off's growth matrix
There are many growth opportunities available to Lewis Fire & Security Ltd. through
adoption of digital technology in different business activities. Implementation of digital
technology support company in achieving sales and profitability of company (Burton, 2010).
Ans-off growth matrix is considered as an effective method which help company in identifying
the growth opportunities and application of different strategies in order to develop different
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departments of an organisation. There are mainly four areas which are included in such matrix
such are penetration, product development, market development and diversification. Such four
elements pushes the company to achieve strong stability in competitive market environment. It
can be further discussed under the below:
Market penetration: Under this, the company mainly focuses on achieving expansion
and growth with the existing products in the existing market segments with an aim of achieving
the market share. It can achieved through making an effective strategies and plans in order to
bring innovation in the existing products and services. As Lewis Fire & Security Ltd. Deals in
offering fire and security systems such as CCTV, fire prevention equipments etc. thus it is
essential for them to market their products through adoption of an effective promotional
techniques such as advertisement, sales promotion etc. so that targeted customers came to know
about their safety equipments along with their unique features that makes them different from
their rivals. Charging an affordable prices and provides genuine products enable company to
achieve huge customer strength in existing market (Chen and et. al., 2014.).
Market development: In this, the firm mainly focuses on expanding business to new
market segments with the existing products with an objective of capturing large market share.
Lewis Fire & Security Ltd. Has operated its business in United Kingdom thus required to enlarge
their business operations through providing existing products to different countries where the
demand are more and supply are less. Using online technology enable company to reach their
fire and security products in new market segment. It may find difficulties through having lots of
existing competitors thus required to ready with pre-planned strategies and plans in order to
throw them out of the market. In order to capture new market, it is essential for management to
consider following points:
 Adopting an effective pricing policies and offering discounts or cashback offers.
 Selection of best distribution channels which help in reaching company's products to the
targeted customers. Division of market on the basis of geographic and demographic segment which help
company in identifying needs of customers of each market.
Product development: In this, the firm mainly focuses on developing and introducing
new products into existing market segments according to the needs and requirements of loyal
customers in order to retain them for longer period of time. For this, it is important to implement
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advanced and updated technology used in production process which allows company to develop
products through adding some unique and new features. Through this, along with loyal clients,
new clients are also easily attracted which makes positive impact on their sales figure and
revenue as well. Therefore, developing products on regular basis increases the chances of
achieving growth and success of Lewis Fire & Security Ltd (Eddleston and et. al., 2013).
Diversification: In this strategy, the firm decided to diversify their business to new
markets with new developed products. Through this, the company keep their eye on expanding
business to maximum number of countries in order to capture large market share and achieve
strong position in market. As due to existing competitors, it may difficult for Lewis Fire &
Security Ltd. To survive with new product but through making an effective plans regarding
adding features in existing products will help them to achieve stable position in new market.
M1: Options for growth and demonstrating the understanding of competitive advantage.
Evaluation of business environment through conducting PESTLE Analysis will help
company to identify growth opportunities that brings them ahead than their rivals. Through such
analysis, the impact of internal as well as external factors are identified which makes easy for the
management of Lewis Fire & Security Ltd. To make suitable plans and strategies. The growth
opportunities are identified through understanding following factors:
Political: The fluctuations in political conditions affects the taxation policy which can
affect the revenue and stability of company. For example, if tax rate on CCTV products
decreases then it will increases their sales due to which the revenue of company are also
increases.
Economical: The growth and success of company depends on the economy of country
thus Lewis Fire & Security Ltd. May find such country to expand business where the economy
are increased (Eddleston and et. al., 2013).
Technological: Adoption of advanced and updated technology increases the chances of
achieving growth and success in competition thus required to invest more.
TASK 2
P3: Potential sources of funding and their advantages and disadvantages
An organisation which are large in size and already attained strong image in market can
easily get funds from different sources. But it is too difficult for small business enterprises such
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as Lewis Fire & Security Ltd. due to having low scale operations. Lewis Fire & Security Ltd. has
operates its business in United Kingdom thus always tried to expand its business operation to
different countries which requires huge amount of money. Therefore, it is essential for
management to maintain their books of accounts and financial statements which become more
helpful in raising funds from different sources such as bank loan, crowdfunding etc. As such
sources has some benefits and some drawbacks as well thus required to consider such as well
before approaching to get funds (Keough, 2015). Such potential sources of raising funding are
briefly described as below:
Bank loan: It is an effective and easy way of raising funding for company. There are
different banks exist across worldwide which charges fixed rate of interest on loan granting to
the company. The government also supports small sized enterprises through giving them interest
free loan, subsidy etc. with an expectation of gaining huge tax from them. Therefore, Lewis Fire
& Security Limited has option to raise funds from banks after analysing their benefits and
drawbacks mentioned below:
Merits:
 Bank loan offers tax benefits as the interest paid on loan amount is tax deductible this
brings advantage to company.
 Banks charges less rate of interest on loan amount as compared to other financial
institutions. Loans are not repaid on demand which means the company have time to plan for
investment of funding.
Demerits:
 Getting loan from banks required to follow strict rules and regulations which is not easy
thus if failed then penalties are imposed on company.
 There is some fear regarding repayment of loan amount on actual time period thus if
failed then the mortgaged property are disposed in the Lew of such loan.
Crowd funding: It is also an effective way of raising finance to expand its business
operations but the only requirements is to convince people to provide them financial help to
execute pre-determined plans and strategies. For this, the management of Lewis Fire & Security
Limited required to share company's profile along with future projects on company's website
which may grabs an attention of people to invest in such project. The interested people who are
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willing to pledge money give their confirmation after getting information about the interest
amount they received in return (MacLeod, 2013).
Merits:
 It is most economic way of raising funds without charging any fees. As it also help in
finding out the public reaction on the enlargement of business activities and operations.
 It is useful way of marketing which attracts lots of investors to take interest in company's
project. Investors took interest in business progress as ell due to which they also give more efforts
in promoting brand name of company through their networks.
Demerits:
 More time invested to raise funding due to which the chances of losing competitive
opportunities are more.
 If the company faces losses or unable to execute business project in profitable way then
the investors may approach to company to return invested amount due to which the
financial position of company are reduced.
Venture capital: It is also an effective way of raising funds as under this, the company
need to communicate with large investors having large amount of financial resources and
influences them with their new and innovative ideas with an objective of getting funds from
them. If such big investor agree and reliable on their ideas then it become easy for Lewis Fire &
Security Limited to get funds to execute business projects in an effective and efficient manner
(Moseley, 2013)
Merits:
 It is not required for company to repay to their investors as venture capital is not such as
loan. There are different venture capital having more knowledge about the investment thus can
give direction to business in order to achieve profitable outcomes.
Demerits:
 Some of the venture capital demanded more ROI than expected from the company.
 Venture capital may also add their family members in the management team which may
creates conflicts.
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M2: Evaluation of potential sources of raising funds
Sources of raising funding:
Bank loan: In this, the company approach to the bank for granting some loan at specific
rate of interest.
Crowd funding: Under this, the company approach to the public to provide financial help
in order to get maximum return on their investment.
Peer-to-peer lending: It is such a practice of lending money to organisation through
online using online platform where the lender and borrower meet together regarding investment
thus involves more time, efforts and risk as compared to the general brick-and-mortar lending
scenarios.
Venture capital: In this, the unknown person who has attained strong financial position
giving support to execution of ideas of businessmen with a hope of getting maximum return on
their investment.
TASK 3
P4: Develop a business plan and communicate to intend scaling up as business
Business plan is essentially required to made by the management of Lewis Fire &
Security Limited in order to achieve desired goals and objectives within given time frame. It
includes preparation of plans and strategies regarding operation, production and marketing etc.
This will direct the employees working in an organisation to to execute business activities in
desired manner so as to achieve profitable outcomes in near future (Todes, 2012).
Business Plan of Lewis Fire & Security Limited regarding achievement of growth and success
with the help of adopting digital technology is given as below:
Company Description
Lewis Fire & Security Limited is a small-sized company of United Kingdom which deals
in offering fire and security system equipments such as CCTV systems, fire extinguishers,
intruder alarms etc. thus have limited but strong clients due to which the chances of achieving
growth and expansion will be more.
Mission:
The mission of company is to expand its business to different countries in order to
capture large market share and generate huge revenues.
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Strategic objectives:
 Implementation of digital technology for the future development and success.
 Bringing innovation in business operations so as to achieve better possible outcomes.
 Adding extra value to the existing products in order to increase customer value.
 Launching online serving websites in order to facilitate clients to avail their products
easily (Valler, Phelps and Wood, 2012).
Products and services:
The main products that Lewis Fire & Security Limited offered fire and security solutions
which includes CCTV systems, fire protection systems, intruder alarms for commercial offices,
retailers, homeowners, licensed premises. They also focuses on developing existing products
through adding feature in order to increase value.
Internal analysis:
The management of Lewis Fire & Security Limited should required to focus on
conducting SWOT Analysis in order to determine strengths and weaknesses so that further
actions can be implemented in order to eliminate weak areas and increases capabilities. Below
are the SWOT Analysis:
Strengths Weaknesses
 High barriers to entry
 Low competition in such industry
 High gross margins
 Highly visible website
 Limited start up risk
 It becomes easy for competitors to offer
similar products quickly which reduces
the sales figure of company.
 Requiring limited start up cost.
 Limited fluctuations in pricing.
Opportunities Threats
 Need to use online platform to increase
sales of products.
 Required to develop additional stores
 Maintaining healthy relation with the
suppliers and wholesalers
 Acquisition of additional rounds of
 Fluctuations in regulation make impact
on the business operations of company.
 Insurance costs are continuously
increasing
 increases in price inputs can increases
rising in prices of products and
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capital services.
Target market:
Lewis Fire & Security Limited offers fire and security services such as CCTV systems,
fire protection systems, intruder alarms for commercial offices, retailers, homeowners, licensed
premises. Thus, they are the main targeted customers due to which their needs and preferences
are required to be considered in order to fulfil them as quickly as possible. Changing in prices
should required to be made according to the willingness of the targeted customers (Wynn, 2017).
Financial information
It includes has financial position of company on the basis of further decision of
expanding business to different countries are made. For this, it is essential for finance department
of Lewis Fire & Security Ltd. To prepare budget for future business projects after analysing the
financial statements of company. As adoption of digital technology and others modern systems
requires huge amount of investment therefore required to arrange funds and prepare financial
budget which are determined as below:
Currency in GBP.All numbers in thousands
Period Ending 2/25/2017 2/27/2016 2/28/2015 2/22/2014
Current Assets
Cash And Cash
Equivalents 3032000 2528000 1549000 2021000
Short Term
Investments 3011000 3520000 593000 1016000
Net Receivables 1488000 1421000 1785000 1881000
Inventory 2301000 2430000 2957000 3576000
Other Current
Assets 630000 412000 292000 2567000
Total Current
Assets 15417000 14684000 11958000 15572000
Long Term
Investments 1562000 1863000 1915000 1301000
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Property Plant and
Equipment 18108000 17900000 20440000 24490000
Goodwill 1792000 1827000 2288000 2286000
Intangible Assets 925000 1047000 1483000 624000
Other Assets 2254000 1860000 2224000 2681000
Deferred Long
Term Asset
Charges 707000 49000 514000 73000
Total Assets 45853000 43904000 44214000 50164000
Current Liabilities
Accounts Payable 8875000 8293000 9677000 10359000
Short/Current
Long Term Debt 12153000 13943000 12659000 11365000
Other Current
Liabilities 1283000 841000 860000 2036000
Total Current
Liabilities 19405000 17866000 19810000 21399000
Long Term Debt 9490000 11029000 10520000 9340000
Other Liabilities 8151000 4700000 6641000 4564000
Deferred Long
Term Liability
Charges - - - 885000
Minority Interest -24000 -10000 - 7000
Negative Goodwill - - - -
Total Liabilities 39439000 35288000 37143000 35442000
Stockholders' Equity
Common Stock 409000 407000 406000 405000
Retained Earnings 332000 3265000 1985000 9728000
Treasury Stock 601000 -141000 -414000 -498000
Capital Surplus 5096000 5095000 5094000 5080000
Other Stockholder 623000 -134000 -397000 -478000
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Equity
Total Stockholder
Equity 6438000 8626000 7071000 14715000
Net Tangible
Assets 3721000 5752000 3300000 11805000
M3: Developing an appropriate business plan
Business plans are such as guidelines which gives proper guidance and direction to the
employees working in an organisation to execute future business activities in an effective and
efficient manner. All the activities along with the allotted amount are well determined under this
plan due to which the chances of utilising available resources in an optimum manner are more
(Planning for growth, 2017). The management need to considered certain aspects in order to
make successful business plan. Such aspects includes Mission, Strategic objectives, Products and
services of company, Internal analysis etc. which clearly identifies the capabilities of company
and their pre-determined goals and objectives. This will guide manager to make actions and
plans in order to execute business plan in desired way.
TASK 4
P5: Exit and succession option for small business
Exit and succession option are two option which are based on the performance and
survival growth of company. It is essential for management of Lewis Fire & Security Ltd. to
analyse the effectiveness of company on the basis of which decision of exit or succession are
taken. For example, of the firm are facing continuing losses from last four years and there is no
opportunity to achieve growth as well then the management may decide to wind up the business
but if the situation is opposite then the decision of continuing decision will be taken.
Various ways to exit business:
Liquidation: If the company continue to face losses from last many years and forecasted
that there is no growth in future as well thus in this situation the BOD may decide to wind up the
business.
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 Merits: After liquidation, the BOD of company will free from any liabilities until
commitment has been made earlier to pay company debts. Thereafter, the manager can
enter into any business without having any previous liabilities. Demerits: The director of company need to be sold existing assets at very low price
which requires to add amount to pay to creditors.
Sell the business in the open market: In this, the owner of business has option to sell its
business in open market so as to get maximum prices for their business than expected. Selling
business means all assets and liabilities associated with business will belong to buyer. Merit: Existing goodwill of company makes easy to new owner of business to sell its
products in market. Getting loyal customers without doing much efforts are biggest
advantage.
 Demerit: New owner make changes in business operation due to which the employability
of current employees are comes into danger (Hough and et. al., 2010)..
Various ways of succeed their business:
Delegating work to expertise employees and avoid micromanaging them: BOD need to
delegate work to the experiences employees on the basis of which maximum profitable outcomes
can be achieved. Conducing motivational programs such as training programs, incentives,
rewards etc. which increases skills and capabilities of employees to contribute more in achieving
desire goals and objectives.
Use the Internet: Using online platform to sell products to the maximum number of
people help company in increasing sales figure and revenue as well. Therefore, it is important for
Lewis Fire & Security Ltd. to make online shopping website through which they can help
targeted customers to get products without facing any difficulties.
M4: Evaluate exit or succession options for a small business
Exit or succession are two different aspects which depends on the overall performance of
company. Therefore, if the business earn profits form last many years then the decision of
continuing business will be made but if the business are facing losses from last many years then
the decisions of winding up the business will be better.
There are two ways for continuing business which are:
 Delegating work to expertise employees and avoid micromanaging them
 Use the Internet
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On the other hand, there are two ways as well which help existing business to exit the market.
Such ways includes:
 Liquidation
 Sell the business in the open market
CONCLUSION
It has been concluded from the above project that business plan are required to be made
by the management in order to achieve growth and success within given time frame. For this,
execution of pre-determined business activities are easy due to which the chances of achieving
desired result are more. Thus, the management need to consider some aspects such as sources of
raising funds, promotional tools, Application of Ans-off growth matrix etc. Exit or succession
option for small sized business are also discussed under this report.
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REFERENCES
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Eddleston, K. A and et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Keough, S.B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Moseley, M.J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Wynn, M.G., 2017. Planning and urban growth in Southern Europe. Routledge.
Hough, P. and et. al., 2010. The worker co-op sector in Canada: Success factors, and planning
for growth. Canadian Worker Cooperative Federation.
Online:
Planning for growth. 2017. [Online]. Available Through:
<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>
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