Newbury News: A Report on Planning for Growth and Business Expansion

This report provides a comprehensive analysis of growth strategies for Newbury News, an English weekly newspaper. It examines key considerations for evaluating growth opportunities, including Porter's generic strategies and PESTLE analysis. The report explores the application of Ansoff's growth vector matrix to identify expansion opportunities and discusses various sources of funding, outlining their benefits and drawbacks. A detailed business plan for growth is presented, encompassing financial information and strategic objectives for scaling up the business, specifically targeting expansion into the African market. Finally, the report addresses succession and exit planning for the small business, highlighting the advantages and disadvantages of different approaches. The report aims to provide a strategic roadmap for Newbury News to achieve its growth objectives and enhance its market presence.

PLANNING FOR
GROWTH

Contents
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
P1 Key considerations for evaluating growth opportunities..................................................5
P2 Opportunities related growth using Ansoff’s growth vector matrix.................................7
TASK 2............................................................................................................................................8
P3 Sources of funding along with their benefits and drawbacks............................................8
TASK 3..........................................................................................................................................10
P4 Business plan for growth including financial information and strategic objectives for
scaling up a business............................................................................................................10
TASK 4..........................................................................................................................................12
P5 Succession and exit plan for small business along with its advantage and dis-advantage12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for growth is an strategic business tool which provide assistance to company in
tracking their growth. So that, plans will design in effective manner which provide assistance to
business firm within their expansion in appropriate manner. Along with this, it also provide
assistance to organisation in using their resources within effective manner as well as also allotted
according to the requirement. Such practices result in accomplishing competitive advantages and
grabbing large number of customers. This report is based on Newbury News which is English
weekley newspaper which covers Newbury as well as West Berkshire. It was founded in 1867
and headquartered at Newspaper House Faraday Road Newbury Berkshire RG14 2DW.
Respective report will going to conduct discussion on the ways which an organisation use for
growing in market by adopting strategies as well as sources for acquiring funds for expansion. In
addition to this business plan will design for succession within market.
TASK 1
P1 Key considerations for evaluating growth opportunities
Planning refers to a process for deciding and evaluating essential actions that is planned
by management to generate positive outcomes from organisational operations. The main motive
of planning for growth is to overcome from the gap from current and desired position of
organisation. In context of Newbury News Limited, management is performing their work at
small level but management is now more concern about expand of business operations into other
areas (Aganbegyan, 2019). So Porter’s generic strategy is implemented by organisation for
achieving competitive edge in market. Essential aspects of strategy are mention as follow:
 Cost leadership- Cost leadership strategy leads an organisation to offer their products and
services at low price in market in order to attract more number of customers. With
implement of cost leadership management of Newbury News Limited is able to capture
more market area by proposing products at low price as compare to competitors.
 Differentiation- According to the differentiation strategy an organisation must invest in
research and development department for implementing innovation in company products.
This assist company for attracting more number of individuals through offering existing
and new products with unique and creative way.

 Cost focus- As per cost focus strategy an organisation enters into niche market through
offering products at low rates. Newbury News Limited utilise cost focus strategy to enter
into small market which leads company to attract more number of individuals. Along
with this with cost focus strategy it is easy for management to enter new market area of
company.
 Differentiation focus- With implement of differentiation focus strategy business attracts
its target customers through offering unique and valuable products in the target market.
Along with this by implement of differentiation focus strategy Newbury News Limited
attracts customers by offering required products that satisfies consumer needs properly
(Alsos, Carter and Ljunggren, 2011). It results it is easy for organisation to generate more
revenues by increasing sale of their products.
With implement of Porter generic strategy it is easy for organisation to gain competitive
advantage against rival organisation. From the perspective of Newbury News Limited
company is expanding their business into new market through launching business
magazine related with fashion, stock market and many more. So with wide range of
products it is easy to increase market area as well as customer base.
PESTLE analysis
For the expansion of business operations into new market, it is mandatory for business
management to analyse all threats and opportunities exists in business environment. So it is easy
for company to formulate effective strategies that leads to perform all operations in effective
manner. Some aspects of Pestle analysis are mention as follow:
 Political aspect- Policies, rules, regulation and interventions that are formulated by
ruling government of company are included in this aspect. Within context of European
countries government follow flexible structure that leads company to operate business
easily in market (Colantoni and et. al., 2016). So for Newbury News Limited it works
as a positive aspect for organisation to expand their business in international market.
 Economical aspect- Money and investment decisions play an important role for an
organisation that leads companies to earn amount of money. According to PESTLE
analysis economic aspects undertakes monetary policy, fiscal policy, buying power of
consumers and GDP of a country. Moreover, Newbury news monitor economic aspect
to earn better revenue from its operations.

 Social aspect- It includes taste, social values, culture value, background that is
followed by a particular society. Moreover, it directly impacts on sales of goods or
products. Therefore, Newbury news limited prefer to print newspaper in local language.
So it leads company to generate interest of individuals to read there newspaper, books
and magazines.
 Technological aspect- Major of the European countries are technology friendly it
determines that business and individuals both invest in technical aspect to complete all
work in effective manner. Therefore, it is mandatory for Newbury news limited to
implement current technological aspects for gaining competitive edge in market.
 Legal aspect- Legal factors relates with laws, legislations and rules that is developed
for ensuring the interest of local companies into market (Fox and Pearce, 2018). Like,
Newbury news limited is expanding their business into other countries so with follow
of proper rules and regulations business operations are performed in ethical manner.
 Environmental aspect- The environment aspects includes changes in climate
conditions due to harmful gases and chemical colours etc. which are utilise for
production. In the context of Newbury news limited management utilise paper which
can be recycled so it work as environment friendly product that also improves goodwill
of society in company.
P2 Opportunities related growth using Ansoff’s growth vector matrix
Ansoff’s growth matrix work as an effective model that is used for strategic planning it
provides an effective framework that leads company to formulate strategies related with growth,
this model also focus on existing and potential customers that determine ways for growth in
business (Gallent, Mace and Tewdwr-Jones, 2017). With implement of Ansoff matrix it is easy
to increase sales and revenue within market. Further, growth strategies related with business are
as follow:
 Market penetration- According to market penetration strategy an organisation sales its
existing products in the current market with the motive of achieving top position in
market. In context of Newbury news limited market penetration strategy is more
beneficial because it is more secure and implement with low cost in operations of
business.

 Market development- With market development strategy an organisation focuses on
selling of exiting products into a new market. It is a more risky strategy because it is
complex to enter into a new market as management is not aware about conditions of
another place. Newbury news limited implement promotional strategies to generate
awareness about products of organisation into fresh market.
 Product development- Products are those aspects that are offered by an organisation to
its customers. With implement of product development strategy Newbury news limited
introduces innovation in their existing newspaper, book and magazine (Haaland and van
den Bosch, 2015). It works as a positive aspect for organisation because it improves value
in product that also enhances sale of products in effective manner.
 Diversification- It is one of the most effective growth strategy that is involved in
launching fresh or new products in organisation with implement of innovation technique
in market. In context of Newbury news management face more risk in market as business
launch new products within new market.
With all growth strategies of Ansoff’s matrix it is analysed that Newbury news leads company to
decide future course of action that leads company to expand business area. From the above
strategies, Diversification is most suitable growth strategy for the organisation because
organisation is concerned to enhance their business operations. Along with this it also helps
company to develop their goodwill in international market.
TASK 2
P3 Sources of funding along with their benefits and drawbacks
Funding refers to the arrangement of money and capital that is used for financing business
operations of an organisation (Hick, 2016). Company requires an estimated amount of £250000
to implement expansion plan but finance department face shortage of £90000. Therefore,
Newbury news limited raise remaining funds from different sources which are mention as
follow:
Internal sources- this refers to those numbers of options that are present within
organisation and use by management for collect and raise funds from internal methods. Sale of
asset, surplus profits, reserve funds etc. are some key aspect of internal sources.

External resources- The term external source refer to a process that is used to raise fund
from outside the organisation. This includes equity share capital, shareholders and debentures to
collect sufficient amount of funds. Some external sources of funds are mention as follow:
Bank loan- This refers to the amount that is hired from bank and repayable in future with
the decided amount of interest. It is one of the most common sources for fund that is used for
financing business operations. In context of Newbury news bank loan provides benefit to
organisation through raise funds at low interest.
Advantage- Interest rate is one of the major benefit that is gained by organisation to repay
the loan. As it lead company to repay loan with a decided amount to pay it in minimum time
period.
Disadvantage- Major disadvantage which is related with bank loans is that organisation
need to deposit an asset to raise funds (Lewis, 2013).
Overdraft- It refers to an agreement that take place between financial institution and
customers. With overdraft clients are able to raise more funds from banks that helps to maximum
amount of bill.
Advantage- this works as a flexible approach that is used to fulfil financial needs of
clients in minimum time period.
Dis-advantage- For increasing the overdraft limit an organisation must arrange fees to
pay creditors or bank loans.
Crowd-funding- This method is used to finance a project through arranging small funds
from large number of individuals (Love and Roper, 2015). The most effective method for crowd
funding is to raise fund through social platform.
Advantage- Digital technology is most effective platform for crowd funding that help
companies to increase brand awareness and gain media attention.
Dis-advantage- Major drawback for choosing the option that is used for generating
interest within public as it is complex to work convenience others for make invest in new
projects.

TASK 3
P4 Business plan for growth including financial information and strategic objectives for scaling
up a business
Business plan is written document which elaborate goals as well as objectives of business which
uses by company for attaining predetermined objectives within required time period. It is
important to follow each and every step of business plan for accomplishing goals in effective
manner.
Executive Summary- Newbury News which is English weekley newspaper which covers
Newbury as well as West Berkshire. It was founded in 1867 and headquartered at Newspaper
House Faraday Road Newbury Berkshire RG14 2DW. Respective organisation is planning for
expanding their business in Africa.
Vision: The company is willing to enhance their customer base and customer convenience in
order to usage of their product.
Mission: Mission of Newbury News is to expand their business in Africa order to increase
customer accessibility over their products.
Goals: The company is aim to enhance their sale by expanding business so that it will be in
reach of customer’s easily.
Objectives: The company is planning to increase their customer base by 25% and sale by 15%
by expanding their business in Africa.
STP framework: This is a model which help the business in perceiving the most beneficial and
attractive part of market which may be target market for company ( Wellton and et. al., 2017). In
this selected market company place them for generating revenue with the assistance of
appropriate market strategy implementation. In relation of Newbury News, STP framework are
as follows :-
 Segmentation – Within this phase entire market is classified within section which is
known as market segment that have an uniform characteristics as well as demands. So
that, requirement of target segment can get fulfil within effectual way. Newbury News
conduct segmentation of the market which is based on geographic as well as
behavioural attributes so that to recognise the suitable place and demands of the group
in that particular nation

 Targeting – In Targeting Newbury News will target old age people mostly they prefer
news paper as youngsters watch latest news on social media or online. Thus, for
respective organisation old age will be better target and it will help them in increasing
sale as well as in generating profitability.
 Positioning – It is essential for an organisation to take better position in market as for
Newbury News it is important to locate their office in appropriate location of Africa.
Along with this for taking better position in market area company have to use several
promotion techniques like advertising through social media tools as well as media also.
Total estimated budget: This is essential to prepare an estimate budget what will assist in
determining the expenses that will be needed to conduct each and every activity.
Particular 31/12/20 (£) 31/12/21 (£) 31/12/22 (£)
Implementing technology cost 12000 12000 9000
Promotional expense 11000 10000 8000
Installation of machines 25000 13000 6200
Shop expense 9000 7000 9000
Training charges 8800 9700 6600
Total Cost 65800 42700 38800
Cash flow statement – This is an statement which provide information related to inflow and
outflow of cash within organisation in a year. So that, business firm will be able to analyse
position of liquidity within business organisation so that effective decision will be taken in
relation of cash inflow and out flow (Xheneti and Bartlett, 2012). This also involves all the cash
outflow that are paid by the business in form of investment and paying off liabilities in a
financial year.

After going through above mention cash flow statement it has been analysed that company is
having appropriate funds for paying their expenses which provide them assistance for future
sustainability. The firm is having cash flow of $7700, $200 and $1300 for years 2021, 2022 and
2023 that shows the sufficient availability of cash. Apart from this, it is essential for an
organisation to develop their business plan in effective manner because it provide assistance to
them in taking better place within market area. Along with this, also help in attracting large
number of customers and generating revenue.
TASK 4
P5 Succession and exit plan for small business along with its advantage and dis-advantage
Newbury news limited is motivated to expand their business within new market.
Therefore, it is essential for an organisation to generate exit and succession plan to deal with
contingencies with impacts on operations of company. Along with this it also helps to deal future
threats by developing future strategy and action as per company vision and mission. Succession
plan for business is mention as follow: