Planning for Growth of New Car Deals: A Business Development Report

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PLANNING FOR GROWTH

Table of Contents
INTRODUCTION............................................................................................................................. 2
TASK 1............................................................................................................................................ 3
P1............................................................................................................................................... 3
P2............................................................................................................................................... 7
M1............................................................................................................................................. 9
TASK 2.......................................................................................................................................... 12
P3............................................................................................................................................. 12
M2............................................................................................................................................15
TASK 3.......................................................................................................................................... 16
P4 and M3................................................................................................................................16
TASK 4.......................................................................................................................................... 19
P5............................................................................................................................................. 19
M4............................................................................................................................................21
CONCLUSION............................................................................................................................... 22
REFERENCES.................................................................................................................................23
1

INTRODUCTION
The assignment will provide an understanding of the developmental process of the small and
medium size organizations. This will include the implication of the techniques for recognising
the opportunities that are linked with the growth and appraise opportunities that are required
for accomplishing the progress through collaboration. SME needs high investment to achieve
the objectives of the organization so for that they are dependent on the investors. These are
the key sources of the financial investment and for attracting them the SME take various steps
that are explained in the assignment. New Car Deals is the small company that has been in the
city of Wakefield in West Yorkshire is taken into account. The company has been offering
professional services to the consumers and focused on increasing the loyal consumers base.
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TASK 1
P1
The small businesses like the New Cars Deals need to build an effective plan and strategies for
attaining the competitive advantages in the market place. There are various kinds of
approaches and concepts that can be implied in the context of New Cars Deals for the
evaluation of the developmental options in the company. They are:
Competitive advantage: The changes in the external business environment have been
demanding the continuous change in companies so that the competitive advantage can be
attained with the maintenance of the positioning in the industry (Wu, 2015). In the case when
two or more business compete that are operating in the same market there is one organization
that attains the competitive advantage due to the higher amount of profit gained over the
rivals.
According to Michael Porter, the competitive advantage can be distinguished in the two types
that are cost advantage and differentiation advantage. New Car Deals can implement the
differentiation approach that is beneficial is delivering the high-quality services to the consumer
of the company. New Car Deals should use the several kinds of the capabilities and resources
for attaining the competitive advantage in the market.
Resources: New Car deals have recently the 150 employees that are operating the various
functions linked to the leasing of the vehicles (Pugalis et al., 2015). The organization has been
following the six sigma culture. New car deal should acknowledge and accept the elements like
the reputation, know and how trademarks and patents that are present in the organizational
operations.
Capabilities: The key abilities of the New Car Deals comprises efficiently utilizing the resources
of the organization. New Car Deals follows the concept to completion and they are also
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rebranding their pipeline that will go hand in hand in the future. They are also emphasizing on
the modification, qualification and management of the organization.
Figure 1: Relationship between the RESOURCE, CAPABILITIES and COMPETITIVE ADVANTAGE
Source: Johnson, 2016
Interlink between the competitive advantages with the development opportunities
In order to gain a competitive advantage it is essential that the New Car Deals assesses the
external environment. The assessment of the Pestle analysis of the organization that has been
taken into account is given below:
Political factors: The growth opportunities for the New Car Deals can be hindered due to the
political instability in the automobile industry (Johnson, 2016). As the recession in the
automobile industry has influenced the industry and New Car Deals has gone through various
challenges during the process. It will impact the development of the New Car Deals in a
negative manner.
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Social factors: In the era of changing market demands of the automobile industry it is necessary
that the company makes the necessary changes accordingly. The objective of the company to
develop the loyal consumer base can be achieved with the recognising the demands of the
customer according to their different segment of the company. The company has been opening
the small stores in the market that are easily accessible shops through which the consumer of
the company can easily access the services without going to the person leasing workers.
Technological factors: The Company has been developing the plan that has been focused on
the introduction of the commercial vehicles in the market (Fulong, 2015). For this, the company
has been implying the new ideas and innovative techniques for the expansion of the business in
the industry through the latest technology. They are marketing their services through the
online channels that are available in the market.
Figure 2: PESTEL Analysis
Source: Chaston, 2015
Environmental factors: New Car Deals is competing for the purpose of the all their liabilities
that are essential for the company to sustain in the market for the long haul. The company can
follow all of their duties and corporate social responsibility for the development of the good
brand image and expansion in the market.
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Legal factors: The services that are provided by the company is based on leasing that consists of
a lot of the legal complications if not performed appropriately. New Cars Deals has to imply the
policies of the UK in the regulations of the firm so that the company’s plan of the expansion can
be successful (Chaston, 2015).
Economic Factors: The marketing of the services and products offered by the company should
be according to the recent market situation of UK. This includes the elements like the growth
rate, unemployment rate and inflation rate that are to be considered at the same time.
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P2
Growth opportunities: Ansoff matrix has been utilized as the tool for the evaluation of the
growth opportunities that are available further supporting the growth strategies for the market.
The following factors of the matrix can be utilized for the development of the organization:
Market penetration:
This element of the matrix will help the company in selling new products with the expansion in
the existing market (Song et al., 2016). New Car Deals can sell the goods and services in the
recent familiar market as the risk of the competitors in the market will be lower comparatively.
Market development:
This strategy can be adopted by the New Car Deals making it feasible for the company so that
products can be sold in the new markets. New Cars deals can expand its services with the
assessment of the market opportunities of the industry where the company needs to expand
the services.
Figure 3: ANSOFF MATRIX
SOURCE: Song et al., 2016
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Product development:
This strategy is concentrated on selling the new plan of the specialised commercial vehicles
introduced by the New Cars Deals in the market (Mason, 2015). New Cars Deals can adopt the
new product development and product extension strategies.
Diversification:
New Car deals might face problems that are associated with the implication of this option in the
company as it is the corporate strategy that is related with the companies entering the new
market. This means that the company is unaware of the current situation of the company. In
this, the company also don't know about the success of the organization in the market.
In the case of New Car Deals, the best option for the growth and expansion in the market are
the market penetration and market development strategies (Unit, 2015). This strategy will
assure the expansion of the company success of the plan of commercialized vehicles in the
market.
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M1
New car deals can implement the analytical structure of the development and attaining the
competitive advantage. New Car Deals can compete with the other competitors in the market
and can analyse the growth opportunities with the implementation of the porter’s generic
techniques.
PORTER’S GENERIC STRATEGIES
These strategies were developed by Michael Porter for improving the performance and also
supported in competing with the competitors (Wicker et al., 2015). The elements of Porter's
generic strategy that can be adopted by the New Car Deals are given below:
Cost leadership strategy: New Car Deals can adopt this technique in order to compete with the
rivals in the market so that the business can grow successfully. Within this strategy, the
company decrease the prices of the products and services that will result in the increment in
the profits of the company. Through this strategy, the company can launch its new
commercialised vehicles in the market with the attainment of the competitive advantage.
Figure 4: PORTER'S GENERIC STRATEGY
Source: Adner et al., 2016
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Differentiation strategy: This strategy can be implemented in the New Car Deals in the context
of the introduction of the newly commercialized vehicles in the market. The idea of the
commercialized vehicle is unique to the market that will attract more customer as compared to
the competitors in the market (Adner et al., 2016). New Car Deals can opt for more research
and innovation for the expansion of the business in the market.
Focus strategy: New Car Deals can adopt this strategy for the launch of the specialised
commercial vehicles in the market as they are already rebranding their pipeline with the
exciting new website that can add to gaining the competitive advantage over the competitors in
the market. This includes gaining the understanding of the niche market and the unique
requirements of the consumers that will help in the improvement in the market dynamics and
the low production cost.
COLLABORATION:
Collaboration allows individuals and firms to work together so that the common objectives of
the businesses can be met easily. There are two methods through which the collaboration in
the organization can be performed:
Vertical integration: This can be defined as the procedure that comprises of having the control
over the processes of the supply chain, the organization can transform the raw material into
the goods and also utilize it for selling the products (AL-Tabbaa et al.,2016).
Benefits:
1. It decreases the dependency on the suppliers
2. It assures the economic scale
3. There would be a decrement in the prices
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Horizontal integration: This is the procedure through which New Car Deals can opt for the
acquisition and mergers with other companies in the market supplying the same kind of the
goods in the industry (Rahimi et al., 2016).
Benefits:
1. Reduction in the cost
2. Higher Bargaining power
3. Management of the rivalry.
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