Business Report: Growth Opportunities for Pavestone UK Limited

This report provides a strategic analysis of growth opportunities for Pavestone UK Limited. It begins by identifying key elements for growth, including Porter's generic strategies (cost leadership, differentiation, and focus strategies) and a PESTLE analysis to understand the external environment. The report then applies Ansoff's growth matrix (market penetration, product development, market development, and diversification) to ascertain growth opportunities. It explores potential funding sources for the company, discussing the pros and cons of each option. Furthermore, the report outlines the elements of a business plan, including financial projections, and concludes by discussing potential exit strategies for the business, along with their advantages and disadvantages. The overall goal is to provide Pavestone UK Limited with a comprehensive roadmap for sustainable growth and financial stability.

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Key Elements for growth opportunities to Pavestone UK limited....................................1
P2 Ascertainment of growth opportunities by implicating Ansoff's growth matrix..............5
LO2..................................................................................................................................................8
P3 Determining the potential sources of funding for Pavestone UK limited with pros and cons
................................................................................................................................................8
LO3................................................................................................................................................10
P4 Identifying a business plan along with its financials.......................................................10
LO4................................................................................................................................................18
P5 Discussing exit strategies available to business along with advantages and disadvantages
..............................................................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Strategic plans and operational management of an entity seeks for suitable decision-
making, which improve the operational quality. Pavestone UK limited is approaching towards a
successive plan in relation with improving efficiency, productivity, market coverage as well as
improving the capital structure by attracting large numbers of investors.
This report will suggest satisfactory techniques to be implicated by professionals of
Pavestone UK limited in relation with improving the operational plans and policies. Suggesting a
suitable technique will be helpful in bringing the adequate control costs and develops a strong
capital structure.
LO 1
P1 Key Elements for growth opportunities to Pavestone UK limited
To develop organisational structure as well as operational framework is required to have
accurate decisions in relation with retaining satisfactory profitability on which professionals. An
internal audit is required as per analysing strengths and mechanism of business operations, which
will lead it to have appropriate revenue generation (Campbell, 2017). However, to analyse t
strengths and operational viabilities if Pavestone UK Limited, there will be use of various
techniques such as:
Porter's generic strategies:
As per ascertaining the operational structure as well as management of various
operations, there are various strategic techniques, which will approach towards funnelling
professionals in making adequate analysis over market and organisational strategies.
To be more competitive among the competitors stated in the market, there will be
requirements of appropriate strategies and plans which brings the effective challenges to them.
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Illustration 1: Porter's generic strategies
Source: (Porter’s Generic Strategies, 2014)
Cost leadership: To be more competitive among the external market and the rivalries of
the firm, there are requirements of having adequate policies and plans, which in turn will be
useful and appropriate as per making suitable plans for operations (Gurcaylilar-Yenidogan and
Aksoy, 2018). Process over each products and services needed to be efficient for consumers as
well as challenging for competitors. It comprised with adequate execution and control expenses,
managing quality as well as analysing market competition.
Cost Focus: It ascertains that the business must have appropriate analysis over market
and internal operational scenario. A proper determination of all facts will be helpful in analysing
costs advantages and appropriate management of operations. Pavestone UK Limited generally,
deals concrete and stone manufacturing products which is required to have appropriate pricing
structure as well as professionals are required to be more price focused (Ahmed and Ahmed,
2018).
Differentiation: there is needed to have appropriate leadership strategies such as products
are needed to be unique, best in quality, appropriate branding as well as implication of suitable
promotional plans (Pahl, 2018). Thus, these are the unique features which are to be
acknowledged by the professionals of Pavestone UK Limited in context with creating an identity
in the market.
2

Differentiation Focus: Analysing buyer's needs and wants are the prime requirements
and wants of the professionals which will be adequate effective in terms of generating the
suitable amount of revenue in the market (Campbell, 2017). It can be said that there will be
requirements of appropriate revenue generation and plans for future developments in Pavestone
UK Limited.
PESTLE analysis of Pavestone UK Limited
PESTLE is an abbreviated form for political, economic, social, technological, legal and
environmental factors that may affect the organization (Demir, Wennberg and McKelvie, 2017).
It is used for Pavestone Company and its objectives are to identify how the external surroundings
affect the industry.
Following PESTLE factors of Pave Stone are as under-
Factors Description
1- Political Factors The political factors, which can impact the
Pavestone construction company, are regarding
taking the permission for documentation,
which are mandatory for various levels of
construction. For instance- change in tax or
duty, which may result in a change of the
revenue structure of the organization. The
government may inflict these rules on every
industry.
2- Economic Factors- Economic factors include the form of
economic function and the impact it has on the
working of the organization. An increase in
rate of inflation may affect the economy of set
price of the company. Economic factors
includes inflation rate, growth rate, foreign
exchange rate, patterns, etc.
3- Social Factors- Social factors include all the events that may
impact on market nearby the residential areas
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where the construction is happening. This
includes change in environment such as
pollution, global warming, career altitudes,
norms cultural expectations etc.
4- Technological Factors- These are the factors which are considered in
innovation and latest technology, which can
affect the Pavestone working in the dynamic
scenario.
5- Legal Factors- There are certain laws, which may change the
external environment of company and also
there are a number of policies which the
company keeps for itself.
6- Environmental Factors – These are the factors, which includes an area
surroundings, atmosphere etc. it mostly
considers the business environment, it consists
but is not restricted to the weather, the climate,
the global changes in climate, the ground
conditions, environmental offset
Justification:
Ascertaining the opportunities which are being listed in the above listed analysis on
which it can be said that Pavestone UK Limited must implicate porter’s generic strategy which
will be applicable and adequate in relation with having profitable growth in the coming time.
Elements which are listed in the analysis such as cost focus, leadership, differentiation and
differentiation focus which will be helpful in uplifting the operational level of the business.
Professionals will have soothing way on which they could generate adequate information from
the market as per developing various strategies and planning for better development.
Growth strategies for Pavestone UK Limited:
4

Considering the operational framework of the Pavestone UK limited on which it can be
said that there is needed to have appropriate managements all the operations which will bring
profitable gains in the coming period. Consist of the management of various operations such as
analysing the cost requirements as well as determining the suitable sources of funds for
operations.
 Use of best technical devices which helps in bring promptness into work as well as
accuracy in designing the stone art or concrete.
 Implicating technical support will be effective in reducing the labour costs as firm will
have appropriate contribution margin per units.
 Making the proper records of transactions held in business during the period such as
income, expenses as well as various overhead costs.
 Making forecasting of accounts which will help in generating the suitable amount of
revenue.
 Improve the financial execution and governance which will be impressive and helpful as
per meeting goals.
P2 Ascertainment of growth opportunities by implicating Ansoff's growth matrix
In relation with creating identity in new market as well as generating the new consumers
there will be requirements of long term planning. Thus, such operational variations will be
required as per having control over all operational activities (Blyth, 2018). Implicating a suitable
technique will be appropriate and helpful for Pavestone UK Limited as per managing functions,
evaluating risks as well as suggesting the differentiated option for adequate development. By
considering the long-term growth and operational execution there will be use of an effective
growth strategy such as:
Ansoff's Growth vector matrix:
This is the growth strategy which was invented by Igor Ansoff in 1965 with a motive to
present structure of factors which are needed to be considered by the professionals in relation
with planning the growth opportunities for Pavestone UK Limited. It comprised with various
elements which will be executed by business personnel with the aim of improving efficiency,
profitability and liquidity of firm on long term basis (Dopfer,Potts and Pyka, 2017). To make
5

satisfactory improvements in the production as well as working efficiency of business there are
various strategies which are needed to be emphasised by business units.
Illustration 2: Ansoff's Growth vector matrix
Source :(The Ansoff Matrix. 2018)
Market Penetration: This element of the growth strategy is comprised with the concept
of making enhancement and improvements in the operational activities of firm. Managerial
professionals are approached towards making innovative changes in the previously existed
products with a motive of improving sales (Pallagst, Fleschurz and Said,2017). The improved
operational efficiency will be fruitful in leading the market share of Pavestone UK Limited. It
will be helpful in analysing the market trend and the current requirements of the business
professionals. Improving the product line and services offered by organisation which will be
suitable as per retaining the adequate amount of revenue. The unique range of products at
convenient costs will be attractive. Pavestone needed to design stone art with unique techniques
and structure which will be attractive to buyers.
6

Product development: These factors comprised with the strategy to make suitable
improvement in previously existed product line. Modification in products will be based on
consumer reviews, market strength and the current changes in the trend and policies of the
business. Growth of Pavestone UK Limited is only depends on bringing appropriate changes in
the production as well as development of various operational techniques (Demir, Wennberg and
McKelvie, 2017). Therefore, bringing innovative changes in products and services will be
appropriate in terms of retaining the previously existed employees as well as having risen in the
prices. Pavestone UK limited is basically, dealing in various concrete and stone manufacturing
products which are needed to be unique and satisfactory to consumers. Attaining their attention
will be helpful in making growth for products. Uniqueness in architecture will be very adequate
for developing identity in market. business must promote the products and services on the online
segmentation as well as on retails.
Market development: This strategy uses the techniques is that the existing product will
be introduced in the new markets. Thus, it can be said that there will be expansion of business
operation in a new environment. Pavestone UK Limited will have beneficial gains as if they
initiate the business and introduce them in a new marketc (Gurcaylilar-Yenidogan and Aksoy,
2018). It requires appropriate geographical study as well as determining the new market which
will be effective for the operations in new market. Implicating various market and promotional
techniques will be adequate in making favourable gains and operational profitability. Creating
identification in market will be appropriate in attracting the large numbers of consumers.
Diversification: Analysing the variation in the economic conditions. Cultural and
traditional variation will be appropriate in designing operational gaols of business. Pavestone UK
Limited is needed to have an appropriate survey and analysis over the market and consumer
which will be based on the motive of analysing their requirements (Ahmed and Ahmed, 2018).
The determination of own strength and weakness will be effective in relation with planning cost
structure, capital structure as well as operational structure of business.
Suggestions for suitable options:
To implicate a suitable strategy which will be helpful in rising the operational level of
entity on which product development will be most appropriate. it benefits in developing the
product in analysing the market requirement and designing the products according to it.
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requirements for attracting large number of consumers on which analysing the wants and needs
will be supportive to business in developing and designing the products accordingly.
LO2
P3 Determining the potential sources of funding for Pavestone UK limited with pros and cons
To ascertain business requirements and making suitable changes in operations will be
effective as per meeting the targeted aims in right time (Pahl, 2018). For the successive
development of business operations there will be ascertainment of adequate operational activities
with consideration of various sources of funding. In relation with analysing the overdraft
capacity of business which is for 2 million pounds which will be appropriate and adequate in
meeting the initial requirements of the business. It will be suggested to the professionals of this
entity that they must consider various other sources of funding too which will charge less interest
and will be helpful in balancing the operating gains of Pavestone UK limited.
Financial sources for funding
Venture Capital- Getting venture capital is considerably different from raising debt or a
loan. Lenders have a legal right to interest on a loan and repayment of the capital irrespective of
the success or failure of a business. Venture capital is invested in exchange for an equity stake in
the business. The return of the venture capitalist as a shareholder depends on the growth and
profitability of Pavestone UK limited. This return is generally earned when the venture capitalist
"exits" by selling its shareholdings when the business is sold to another owner.
Advantages:
 These are the funds which will be generated and gathered by the firm on the basis of
revenue earned by them from operating activities.
 It does not require any interest payable on it.
Disadvantages:
 It will not be being satisfactory to the business in relation with having satisfactory
amount for funds.
 All the costs and expenses which were being paid by business which reduces the profits
of the business.
8

Loans- loans are the good sources of funding. Amount borrowed by the bank in the form
of loan increases the funds of the Pavestone UK limited. On the other side, it will have negative
influences too as there will be payments of interest over the loan amount obtained by the banks.
Advantages:
 Business can obtain the most appropriate amount for operations with the influences of
better fund generation.
 It will be payable by the professionals on the term basis
Disadvantages:
 The disadvantages of this source is that, bank charges higher interest rates on their
lending money.
 Firm has to lease their property or any fixed asset in against of loan amount
Angel investor- These are the investors to the firm which sponsored it with investing
capital in. There price may increase or decrease at the specified time and this helps to maintain
the sources of fund. Pavestone UK limited has to make simple dividend policies which will be
attractive and adequate as per giving the investors advantages of the returns on their investment.
Advantages:
 Investors are angel to the firm will be an adequate source in generating required amount
of capital from operations.
 This source will be beneficial in rising the market value of firm.
Disadvantages:
 There will be no sudden time and requirement which will require the business in having
appropriate determination of all operations.
Overdraft- Personal fund includes personal savings, credit cards, borrowings from
family and friends etc. which will be borrowed by Pavestone UK limited with not surcharge
amount of interest. Lease financing involves the use of lease to acquire access to asset. Rather
than pay for the asset outright using cash, it can often make sense for businesses to look for ways
of spreading the cost of acquiring an asset, to coincide with the timing of the revenue generated
by the Pavestone UK limited.
Advantages:
 Overdraft will be helpful in withdrawing the money which will be adequate and
appropriate in building better capital strength.
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Disadvantages:
 It reduces the reputation of firm as well as also affects in making improper determination
of all activities.
Crowd Funding: It will be the promptest way in generating the funds and rising the capital.
The amount of capital will be collected from the mass population in relation with having
appropriate determination of all operations.
Advantages:
 Funds will be gathered so quickly as company can rise their capital structure.
 Considering this technique will be appropriate in rising the market value of the firm.
Disadvantages:
 It does not reflect appropriate amount of fund which will be disadvantage to the business.
Peer to peer: This is the most adequate technique on which organisation, individual lend the
money through online borrowing system. Various applications and operations which in turn will
be useful in making best determination of operations.
Advantages:
 It operates on the valid platform as well as consist of all proper information regarding the
lenders, creditor or borrowers.
Disadvantages:
 Risk full implication of all confidential information which in turn affects in manipulation
of such activities.
LO3
P4 Identifying a business plan along with its financials
Planning the business activities will be adequate as the professionals comprised with
various requirements and management of operations accordingly (Campbell, 2017). Hoverer,
there are various stages and operations which will be based on determining various issues and
management of operational accordingly.
Business concept
Background:
Pavestone UK Limited is operating as a small business enterprise in UK which
manufacture and deals in concrete and stones. Thus, to improve the revenue and growth in sales
10