BTEC HND Business: Planning for Growth - Checkout.com Report

This report provides a comprehensive analysis of growth planning strategies for Checkout.com, a payment service provider operating in the UK. The report begins with an introduction to growth planning and its importance for businesses, particularly SMEs. Task 1 focuses on key considerations for evaluating growth opportunities, utilizing frameworks such as the BCG matrix, GE matrix, and PESTLE analysis to assess market attractiveness and expansion potential. Ansoff's growth vector matrix is then applied to explore market penetration, development, product development, and diversification strategies for Checkout.com. Task 2 delves into potential sources of funding, including bank loans, crowdfunding, and venture capital, evaluating the pros and cons of each. Task 3 outlines the design of a business plan for growth, incorporating financial information and strategic objectives for scaling up the business. Finally, Task 4 examines exit or succession options for a small business, comparing and contrasting different scenarios and providing recommendations. The report aims to provide insights and recommendations for Checkout.com to achieve sustainable growth and enhance its market presence. The assignment utilizes various analytical frameworks to demonstrate an understanding of competitive advantage within an organizational context. This analysis covers various aspects of business development, from market analysis and expansion strategies to funding options and business plan development.

Planning for Growth

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 & D1 Key considerations for evaluating growth opportunities........................................4
P2 Ansoff’s growth vector matrix..........................................................................................8
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage within an organisational context......................9
TASK 2..........................................................................................................................................10
P3 & D2 Assess the potential sources of funding................................................................10
M2 & M3 Evaluate potential sources of funding and justification for the adoption of an
appropriate source of funding for a given organisational context........................................12
TASK 3..........................................................................................................................................13
P4 & D3 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business......................................................................................13
TASK 4..........................................................................................................................................20
P5 & D4 Exit or succession options.....................................................................................20
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations........................................................................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................24

INTRODUCTION
Planning for growth is defined as such strategic tool of the business that can be used
within a business in order to exhale growth opportunities. Growth planning is considered as one
of the most effective tool of the business which is helping in order to get such expansion plan
by which overall success can be seen within business (Lambert and Oatley, 2017). There are
various dimensions in the business which are used for perform appropriate planning measures
so that using resources to optimal manner organisational success can be attained. In this respect
in terms of expansion planning SME’s are associated with this aspect as these are the ventures
those are thriving for succession and need higher resource utilisation. On the other hand
sustainability is the major aspect of the business which is required to be attained so that to
target towards gaining growth opportunities and to inhale succession as well. In UK due to
implications of Brexit high impacts are seen within SME’s and this have restricted the market
capture of these businesses. This report is providing significant understanding in relation to
developing knowledge in respect of developing measures related to growth planning and to
upgrade market presence in such a way that overall prominence can also be enhanced. This
report is prepared in the background of Checkout.com which is a payment service provider
operating their business in UK. The company is planning to expand their business so this report
is based on analysing such aspects by which growth opportunities can be obtained by
Checkout.com in order to unleash higher market size.
TASK 1
P1 & D1 Key considerations for evaluating growth opportunities
In the current dynamic market profits and sustainability is considered as the major
aspect which is desired by every business. Each business is engaged in selling of their product
or services so that to earn desired market success and profits as well (Kumar, 2016). For every
business this is imperative to hold such degree so that to deal with external market situation and
to adopt the same for continuing with appropriate justification. In the context of Checkout.com
the company is searching to develop their business with higher range of expansion
opportunities and for this they are required to analyse such opportunities which can be attained
by them.

Boston Consultancy Group Matrix
BCG matrix is defined as the approach in which product portfolio is being elaborated so
that to provide strategic planning to the business and to ascertain several growth opportunities
as well. This matrix is a growth intent which is helpful for the business to define level of
prominence for their product and to inhale such opportunities as well in which development
aspects can be seen (Mohajan, 2017). This is the matrix which is helpful in decision making
regarding investment made by the company in their products. For Checkout.com this matrix is
elaborated as under:
(Source: How to use the BCG matrix model, 2020)
Dogs: This dimension of the matrix is having products or services those are covering
lower market size so in this manner organisations do not focuses on advertising of these
products or services. Under this product category no returns are being expected by the company
regarding their products so that these segment of product or services are not emphasised in
terms of advertising and other constraints. In terms of Checkout.com the company is having a
service called Anyvan which is undertaken within this category.
Cash Cows: These are the products or services which are giving enormous profits to the
organisation so this is beneficial for the business to invest within this category in order to get

higher market prominence. In the context of Checkout.com the company is having safe money
transfer service called ACE money transfer which is providing higher safety and reliable
measure to their users in terms of payment.
Star: This is related with such products or services those are generating higher profits
for the organisation. Checkout.com is providing flexible card processing system to their
customer and this is the service which is giving higher profits to the organisation.
Question Mark: This dimension of matrix is associated with such product or service
type which is facing fear of losing market share. This is the aspect under which future
investments are decided by the organisation in order to fill up market demands. In the context
of Checkout.com insufficient payment services are being included within this category.
GE Matrix
This is the matrix which was given by McKinsey and this is a nine cell grid matrix
which is helpful in analysing attractiveness existed within industry (Peixouto, Nunes and
Furtado, 2016). This is regarded as advanced version of BCG matrix in which manager is
taking decisions related with analysing industry attractiveness. In the context of Checkout.Com
this matrix is elaborated as under:
 Invest/ grow: This is considered as the unit which is highly attractive and profit giving so
that higher market opportunities can be undertaken. In the context of Checkout.Com the
company is planning to invest within sharpening the gateway of their payment services so
that to attract investors and to earn profits as well.
 Hold/ selective: This grid of GE matrix is related with products within question mark
dimension as these are having lowered market share and growth as well. Industry
attractiveness is moderate under this cell and at the same time huge modifications are
required in order to be undertaken. For Checkout.Com their question mark products are
required such innovation so the company is suggested to hold investment under this
category. Divest/ harvest: This cell of the matrix is related with such unattractiveness of the industry
which is associated with dog category of product or service portfolio. In the context of
Checkout.Com as dog products of the company are not giving such profits so this is

suggested to divest under this category and put their focus on some other category so that
profits can be made.
PESTLE analysis
PESTLE analysis is helpful for the business to analyse such market aspects, factors and
conditions those may have direct impact on the business and its functions as well. In the context
of Checkout.com as the company is planning to expand their business in markets of Australia so
this is necessary for the company to analyse external market situation of Australia using
PESTLE analysis and the same is explained as under:
 Political: These factors are associated with governmental rules and regulation and
political condition existed within the country as these are the factors which lead to bring
stability within country. Australia is considered as one of the stable country and this is
providing immense opportunities to SME have to expand their businesses in differential
market territory. In the context of Checkout.com this expansion opportunity is providing
higher terms to manage the business and to expand as well.
 Economical: These are the factors which are related with economic factors such as
foreign exchange, inflation rate and many other factors as well. Australian economy is
having tremendous opportunities to get higher growth and sustainability for their
businesses and in this manner companies are having relatable options to expand their
business. In the context of Checkout.com as economic conditions of Australia are apt
for Checkout.com to get enter into market segments.
 Social: These are the factors which are associated with taste and preferences of
customer and their needs and demands as well. In the context of Australia the people
living in the country have higher literacy ratio and purchasing power as well. In this
manner Checkout.com is getting to have prominent opportunities for placing their
services within market in most effective manner.
 Technological: These factors are related with using of such latest and emerging
technology within business so that to acquire market trends and customer satisfaction
within business. In the context of Checkout.com the company is using advanced and
emerging technology within their business which is having ample measures of security
and safety so that to provide appropriate privacy measures to their customer. In this

manner Checkout.com can sustain in the market of Australia and may deal with such
complexities as well.
 Legal: These factors are related with using of legal frameworks within business so that
to avoid any chances of litigations and legal proceedings as well. For Checkout.com as
the company using several laws so that to provide smooth functioning to their business
and to minimise level of redundancy as well.
 Environmental: These factors are associated with using such practices by which
negative impact over the environment can be minimised so that environment can be
protected. In this manner Checkout.com is using paperless technology in their business
so that to control harm for eco-system.
P2 Ansoff’s growth vector matrix
Ansoff growth matrix is having four major dimensions which can be used by a business
in order to expand their business and to attain success opportunities as well. With the help of
these strategies appropriate market edge can be attained and higher profits can also be earned.
This is regarded as a strategic planning tool which can be used by Checkout.com in order to
extend their market opportunities and to exhale maximum sales as well. For Checkout.com the
company can use this strategy in order to select the most beneficial expansion strategy for their
business. In the context of Checkout.com these strategies are elaborated as under:
(Source: Ansoff Growth Matrix, 2019)

 Market penetration: Under this strategy the major aspect is related with enhancing
market share and attracting more customers in existing market in which the company is
operating their business (Suomalainen and Xu, 2016). In the context of Checkout.com
using this strategy the company may earn high profits in their existing market and along
with this more market prominence can be earned by them as well.
 Market development: This expansion strategy is linked with expanding the business in
differential market dimensions so that various market opportunities can be inhaled. In
the context of Checkout.com the company can unleash various markets at new places so
that to gain high range of customers. This strategy requires higher emphasis over
promotional tools as by this customers can be attracted in high manner. In this way
significant market edge can be attained by Checkout.com which is helpful for the
business in their long term survival.
 Product development: This strategy is known for developing some new product within
new market so that to acquire higher customers and competitive market edge as well. In
the context of Checkout.com this strategy could lead them to spread their business with
high ranged product and service portfolio so that they can deal with their competitors
existed in various market territories in effective manner.
 Diversification: This is regarded as the most risk strategy in which a new market is
being explored along with some brand new product or services which is new from the
actual business offerings. This strategy needs high investments so for Checkout.com this
strategy may be risky for them in the terms of investments. At the same time this
strategy could be advantageous in terms of profit making and gaining market
prominence as well.
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context.
In the context of Checkout.com the company is putting their emphasis on their cash cow
products so that to earn higher profits and to earn market prominence as well. Besides this as
Checkout.com is planning to expand their business so in this context expanding their business
in markets of Australia could be a better option for Checkout.com to acquire huge customers
and to attain their business objectives as well. Using this method as market expansion

Checkout.com can unleash differential market and its customers as well and this could be
helpful for them in making higher profits as well.
TASK 2
P3 & D2 Assess the potential sources of funding
In order to start a business funds are considered as the major requirement which is
needed in prior manner. Funds are regarded as blood of the business which is helpful for
venture to deal with various complexities (Kauders, 2016). When funds are short then this may
lead to create barriers so arrangements of funds are regarded as the primal aspect which is
required to be fulfilled so that situation of shortage of funds can be eliminated. Within a
business there are two major sources of arrangement of funds that can be used such as internal
and external. Using these two methods funds can be gathered by the business for meeting
requirement of business expansion. For Checkout.com they can use differential sources of funds
in order to meet their need of business expansion. Some of these sources are elaborated as
under along with their advantage and disadvantage:
Internal Sources: These are the sources which are defined as such methods in which
funds are arranged within business and its own funds as well. This will be helpful in meeting
funds requirement of the venture in order to perform business expansion activities in optimal
manner. Example of internal sources are selling of stock, using retained earnings, selling of
business asset and many more. Advantages and disadvantages of these sources are elaborated as
under:
Advantages Disadvantages
 With the help of internal sources of
financing ownership can be retained by
the owner (Schaeffer and Akhavan,
2016).
 These sources are helpful in reducing
cost of project and improve value of
the company.
 Internal sources of financing are not
providing positive implication over
operational budget
 By taking internal sources as financing
decisions apt forecasting is required.

External Sources: In order to meet business expansion needs sometimes this is being
observed that funds from internal sources are not enough so sources of external aspects are to
be used so that to get assistance over expansion project and to execute expansion activities in
effective manner as well (Semenchuk and Vasiliha, 2020). These sources are used in order to
arrange funds from external sources. In the context of Checkout.com some of the major funds
are elaborated as under:
Crowd funding
This is a new method used by SME’s in order to get appropriate financing so that to
arrange funds for their business expansion. This is one of the trendy methods which are used
within business in order to minimise situation of fund shortage. Under this method a very small
amount of funds are gathered by huge people so that to gather a big amount. Basically this is a
method which is used by start-ups for the major purpose or gathering huge capital and to share
their idea with public in order to enhance chances of their business succession. There are two
types of crowd funding such as equity based and reward based. In the context of equity based
crowd funding equity is given to investors in lieu of their capital invested whereas in reward
based differential incentives are given to them in lieu of their money.
Advantages: This could be a time saving method of raising funds in which organisation
with expansion plan may gather funds in effective manner. With the help of this method
investors can be converted into customer that is advantageous for the business to gain
succession opportunities. Using this method market image can be enhanced and at the same
time customers can also be attracted in easy manner.
Disadvantages: This is not easy to get capital from unknown people so in this manner
high efforts are required to be placed so that to attract investors and to get business succession.
On the other hand as money is invested by some other party that means high risk is there with
the organisation and in the condition of failure market dignity can also be lost.
Venture finance

Venture financing is defined as the form of private equity financing in which capital in
provided to such start-ups and small businesses those are having innovative idea to deal with
market needs and demands (Calabretta and May, 2016). This is a long term approach
investment plan which can be received by banks, investment banks or any other financial
institutions.
Advantages: The major advantage of venture capital is that appropriate opportunities
can be received by businesses in order to expand their business. On the other hand by getting
funds from venture financing valuable expertise and guidance can be received as venture
capitalist will be involved in decision making process.
Disadvantages: When venture financing is used by business as external source of
financing this will dilute the ownership which may not be suitable for some business owners.
On the other hand reaching out to venture capitalist is a tedious job and this could take long
time to get executed.
Peer to peer lending
This is a method that enables the user to attain loan from some other individual by
cutting the role of middle man. In current time there are various websites that are providing P2P
lending opportunities to needed business or individual (Marshall, 2018). This is also regarded
as a form of crowd funding in which loan is raised for such people those who are in need of
funds from whom those are willing to invest their money.
Advantage: The major advantage of peer to peer landing is that it is highly convenient
and interest rates are also very low so can be afforded by huge people.
Disadvantage: This method of financing is not covered under any Act and do not have
safety aspects as well. On the other hand this method is associated with carrying high amount of
credit risk.
M2 & M3 Evaluate potential sources of funding and justification for the adoption of an
appropriate source of funding for a given organisational context
In the context of Checkout.com venture financing could be the best option for them to
take assistance in their financing. This is the method which could lead Checkout.com to reach

out to their objectives in least possible time. When financing is collected through venture
capital then venture capitalist will provide such advices and in this manner professional
guidance can also be received by Checkout.com in terms of getting such activities done. On the
other hand with the help of venture capital financing source market prominence can also be
received by the business by sharing their idea to venture capitalist. So in this manner for
Checkout.com venture funding could be the best option to acquire funds and deal with
succession opportunities as well.
TASK 3
P4 & D3 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business
Business plan is defined as such official document which is helpful in identifying goals
of the organisation in order to set desired strategic direction and to recognise those methods
which can be used to attain those goals within prescribed time frame (Bione, 2017). The
business plan is required to be precise and organised so that when the same is presented to
investors they look forward to invest their money in such business. Business plan is termed as a
detailed inclusion in order to control, monitor and evaluate such measures which are helpful for
executing such operations and functions in such a manner that continuous improvement can be
rendered within workings. For getting appropriate succession Checkout.com has decided to
come up with a planned business plan so that to align their aims, objective, vision and mission
for the major purpose to get effective performance opportunities.
Section 1: Executive summary
Checkout.com is an innovative business organisation which is engaged in providing safe
payment services gateways to their customer so that to provide them hassle free experience of
online payment and to protect their payment as well. The company is providing innovative
experience to their customer in terms of ideas and execution of services as well. Checkout.com
has obtained with providing faster and secured payment services to their customers by using
new, innovative and high technology within it. The company was founded in the year of 2012
and dealing with complex issues faced within payment activities. Checkout.com is considered