Business Growth Report: Planning, Funding, and Succession Options
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AI Summary
This report provides a comprehensive analysis of growth planning for businesses, focusing on key considerations for evaluating growth opportunities, applying Ansoff’s growth vector matrix, and discussing options for growth using analytical frameworks to achieve a competitive advantage. It evaluates potential funding sources, including retained earnings, trade credit, and factoring, detailing their benefits and drawbacks. A business plan for growth is outlined, incorporating strategic objectives, strategies, and frameworks, alongside an examination of succession options for small businesses, including their evaluation and critical assessment. The report concludes with recommendations for effective growth and succession strategies, emphasizing the importance of adapting plans to market dynamics and organizational goals. Desklib offers a wealth of resources, including similar reports and solved assignments, to aid students in their studies.
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Planning for growth
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Key considerations for evaluating growth opportunities.......................................................3
P 2- Evaluation of opportunities for growth applying Ansoff’s growth vector matrix...............5
M 1- Discussion of options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage...............................................................................6
D1 – Evaluation of option............................................................................................................7
LO2..................................................................................................................................................7
P3 – Potential sources of funding available to business..............................................................7
M2 – Evaluate potential source of funding..................................................................................8
D2 – Critical evaluation potential sources of funding.................................................................9
LO3..................................................................................................................................................9
P4 – Business plan for growth.....................................................................................................9
M3 – strategic objectives, strategies and frameworks...............................................................10
D3- Formulate, apply and achieve business objective...............................................................11
LO4................................................................................................................................................11
P5- Succession options for a small business..............................................................................11
M4 – evaluation of small business for growth...........................................................................12
D4 – critical evaluation of exit or succession option for small business...................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Key considerations for evaluating growth opportunities.......................................................3
P 2- Evaluation of opportunities for growth applying Ansoff’s growth vector matrix...............5
M 1- Discussion of options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage...............................................................................6
D1 – Evaluation of option............................................................................................................7
LO2..................................................................................................................................................7
P3 – Potential sources of funding available to business..............................................................7
M2 – Evaluate potential source of funding..................................................................................8
D2 – Critical evaluation potential sources of funding.................................................................9
LO3..................................................................................................................................................9
P4 – Business plan for growth.....................................................................................................9
M3 – strategic objectives, strategies and frameworks...............................................................10
D3- Formulate, apply and achieve business objective...............................................................11
LO4................................................................................................................................................11
P5- Succession options for a small business..............................................................................11
M4 – evaluation of small business for growth...........................................................................12
D4 – critical evaluation of exit or succession option for small business...................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14


INTRODUCTION
Planning for growth refers to make plans or strategies for future growth and development of
organisation. It is important to make plans for future growth so that more revenue can be
generated and it helps in achieving goals and objectives of company (Turner and Endres, 2017).
Managers are responsible for making plans or strategies which is beneficial in accomplishing
targets and helps in gaining competitive advantage. Boston consulting group is a private
company which was founded in the year 1963 by Bruce Henderson. Its headquarter is situated in
Boston, Massachusetts, United States. The company is providing its services all over the world
and number of employees across the world are 22,000. It is one of the best consultancy company
in UK and satisfy needs of people.
The report examines, key considerations SMEs should consider, opportunities for
organisation, different option for growth. Critical evaluation of different option and risk related
to available for growth option. Ansoff’s growth vector matrix, option for growth and to gain
competitive advantage. Further, potential sources of funding available to business, its benefits
and drawbacks, evaluation of sources of funding. Business plan is made for growth of company,
objectives, strategies and framework for achieving objectives (Gumel, 2019). Small business
explaining benefits and drawbacks of each option, evaluation for succession option for small
business and comparing all the options. Critical evaluation of succession option for a small
business and recommendations.
MAIN BODY
LO 1
P 1 Key considerations for evaluating growth opportunities
There are many different kinds of considerations that are required to be focused upon or
considered by organizations for analysis and evaluation of main growth opportunities (Sepasi,
Kiani and Ahmadian, 2017). For an analysis and evaluation regarding the growth opportunities,
this report intends to identify growth opportunities for Rent-A-Car organization by evaluating
market in which Rent-A-Car organization operate and products and services that are provided by
Rent-A-Car. Growth opportunities for Rent-A-Car can be analysed and evaluated using Porters
generic strategy and Boston Consultancy Group Matrix.
Porters’ Generic strategy
Planning for growth refers to make plans or strategies for future growth and development of
organisation. It is important to make plans for future growth so that more revenue can be
generated and it helps in achieving goals and objectives of company (Turner and Endres, 2017).
Managers are responsible for making plans or strategies which is beneficial in accomplishing
targets and helps in gaining competitive advantage. Boston consulting group is a private
company which was founded in the year 1963 by Bruce Henderson. Its headquarter is situated in
Boston, Massachusetts, United States. The company is providing its services all over the world
and number of employees across the world are 22,000. It is one of the best consultancy company
in UK and satisfy needs of people.
The report examines, key considerations SMEs should consider, opportunities for
organisation, different option for growth. Critical evaluation of different option and risk related
to available for growth option. Ansoff’s growth vector matrix, option for growth and to gain
competitive advantage. Further, potential sources of funding available to business, its benefits
and drawbacks, evaluation of sources of funding. Business plan is made for growth of company,
objectives, strategies and framework for achieving objectives (Gumel, 2019). Small business
explaining benefits and drawbacks of each option, evaluation for succession option for small
business and comparing all the options. Critical evaluation of succession option for a small
business and recommendations.
MAIN BODY
LO 1
P 1 Key considerations for evaluating growth opportunities
There are many different kinds of considerations that are required to be focused upon or
considered by organizations for analysis and evaluation of main growth opportunities (Sepasi,
Kiani and Ahmadian, 2017). For an analysis and evaluation regarding the growth opportunities,
this report intends to identify growth opportunities for Rent-A-Car organization by evaluating
market in which Rent-A-Car organization operate and products and services that are provided by
Rent-A-Car. Growth opportunities for Rent-A-Car can be analysed and evaluated using Porters
generic strategy and Boston Consultancy Group Matrix.
Porters’ Generic strategy
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Main purpose of this strategy is to pursue competitive advantage within the market in
which they operate (Stöckle and et. al., 2018). There are four main types of generic strategies
that can be adopted by Rent-A-Car organization for analysing and evaluating growth
opportunities. Main generic strategies are:
Cost leadership: using this strategy Rent-A-Car can focus upon providing their products and
services in lowest possible price which will directly help them in attracting a greater number of
customers and gaining market share.
Focus strategy: This strategy can be adopted by Rent-A-Car for focusing upon either providing
differentiation in terms of provision of unique features in product or services or they can focus
upon providing cost advantage for gaining competitive advantage using available growth
opportunities.
Differentiation strategy: It is another generic strategy that can be adopted by Rent-A-Car for
gaining competitive advantage. Using this strategy Rent-A-Car can focus upon either gaining
cost leadership or differentiating their services and products from their competitors. This strategy
focuses upon grabbing all growth opportunities available for organization in terms of
differentiating product or cost.
Boston Consultancy Group Matrix
It is another important matrix that can be used for analysing and evaluating growth
opportunities for Rent-A-Car. It is mostly used as a planning tool in which products and services
of an organization are graphically represented in order to understand and evaluate on which
product and service more investment should be done and upon which no investment should be
done. Boston Consultancy Group Matrix can help Rent-A-Car organization evaluate their
products and service categories. Four main quadrants of this category are:
Dog: products and services that have lower growth and market share comes in this category.
Question Mark: Products and services that have high market growth and lower market share
comes in this category. E-rent service of Rent-A-Car has high market growth but do not help
them in gaining market share.
Star: Products and services with market growth and high market share comes in this category.
Pick-up service of Rent-A-Car is their star product that has helped them in gaining market share
and has high market growth.
which they operate (Stöckle and et. al., 2018). There are four main types of generic strategies
that can be adopted by Rent-A-Car organization for analysing and evaluating growth
opportunities. Main generic strategies are:
Cost leadership: using this strategy Rent-A-Car can focus upon providing their products and
services in lowest possible price which will directly help them in attracting a greater number of
customers and gaining market share.
Focus strategy: This strategy can be adopted by Rent-A-Car for focusing upon either providing
differentiation in terms of provision of unique features in product or services or they can focus
upon providing cost advantage for gaining competitive advantage using available growth
opportunities.
Differentiation strategy: It is another generic strategy that can be adopted by Rent-A-Car for
gaining competitive advantage. Using this strategy Rent-A-Car can focus upon either gaining
cost leadership or differentiating their services and products from their competitors. This strategy
focuses upon grabbing all growth opportunities available for organization in terms of
differentiating product or cost.
Boston Consultancy Group Matrix
It is another important matrix that can be used for analysing and evaluating growth
opportunities for Rent-A-Car. It is mostly used as a planning tool in which products and services
of an organization are graphically represented in order to understand and evaluate on which
product and service more investment should be done and upon which no investment should be
done. Boston Consultancy Group Matrix can help Rent-A-Car organization evaluate their
products and service categories. Four main quadrants of this category are:
Dog: products and services that have lower growth and market share comes in this category.
Question Mark: Products and services that have high market growth and lower market share
comes in this category. E-rent service of Rent-A-Car has high market growth but do not help
them in gaining market share.
Star: Products and services with market growth and high market share comes in this category.
Pick-up service of Rent-A-Car is their star product that has helped them in gaining market share
and has high market growth.

Cash Cow: products and services with low growth markets and high market share comes in this
category (Ottoo, 2020). Provision of customer service is their cash cow product/ service as it is
opted by most of the customers. Other than this, renting a car online is another one of their cash
cow services.
From the analysis and evaluation, this report summarises the findings that there are
various kinds of growth opportunities that can be opted by Rent-A-Car organization for gaining
competitive advantage. Different methods or strategies are present that can be used to identify
and opportunities for growth and expansion that can be used by Rent-A-Car organization for
expanding their organization in the market in which they operate for gaining competitive
advantage.
P 2- Evaluation of opportunities for growth applying Ansoff’s growth vector matrix
There are many different kinds of opportunities for growth of Rent-A-car organization.
These opportunities can be evaluated using Ansoff Growth vector Matrix (Sepasi, Kiani and
Ahmadian, 2017). It is one of the most appropriate strategy or method that can be adopted by
Rent-A-Car organization for evaluating their growth opportunities in an appropriate and accurate
manner. Ansoff’s growth vector matrix is used by company’s for analysing and planning their
growth strategies in an appropriate manner. This strategy helps in identifying four main
strategies that can be adopted by organizations like Rent-A-Car, such as:
Market penetration: this strategy is used by company’s whop want to expand their market using
existing products/ services in existing market (Zanjani and et. al., 2020). Rent-A-Car
organization can focus upon adopting this strategy for growing in market. This will directly help
them in enhancing their overall market, profitability and revenue. Rent-A-Car can focus upon
their star products and enhance provision of those products in existing market.
Market development: This strategy is used by companies for entering into a new market using
existing products and services. Rent-A-Car can focus upon expanding their market using existing
products and services and in new chosen market. Using their star products, they can enter into
new chosen market that can directly help them in successfully into selected new market
(Loredana, 2017). It will directly help them in gaining competitive advantage and chances of
successfully entering into new market as organization can remain ensure that chosen products
will successfully help them in increasing their sales, revenue etc.
category (Ottoo, 2020). Provision of customer service is their cash cow product/ service as it is
opted by most of the customers. Other than this, renting a car online is another one of their cash
cow services.
From the analysis and evaluation, this report summarises the findings that there are
various kinds of growth opportunities that can be opted by Rent-A-Car organization for gaining
competitive advantage. Different methods or strategies are present that can be used to identify
and opportunities for growth and expansion that can be used by Rent-A-Car organization for
expanding their organization in the market in which they operate for gaining competitive
advantage.
P 2- Evaluation of opportunities for growth applying Ansoff’s growth vector matrix
There are many different kinds of opportunities for growth of Rent-A-car organization.
These opportunities can be evaluated using Ansoff Growth vector Matrix (Sepasi, Kiani and
Ahmadian, 2017). It is one of the most appropriate strategy or method that can be adopted by
Rent-A-Car organization for evaluating their growth opportunities in an appropriate and accurate
manner. Ansoff’s growth vector matrix is used by company’s for analysing and planning their
growth strategies in an appropriate manner. This strategy helps in identifying four main
strategies that can be adopted by organizations like Rent-A-Car, such as:
Market penetration: this strategy is used by company’s whop want to expand their market using
existing products/ services in existing market (Zanjani and et. al., 2020). Rent-A-Car
organization can focus upon adopting this strategy for growing in market. This will directly help
them in enhancing their overall market, profitability and revenue. Rent-A-Car can focus upon
their star products and enhance provision of those products in existing market.
Market development: This strategy is used by companies for entering into a new market using
existing products and services. Rent-A-Car can focus upon expanding their market using existing
products and services and in new chosen market. Using their star products, they can enter into
new chosen market that can directly help them in successfully into selected new market
(Loredana, 2017). It will directly help them in gaining competitive advantage and chances of
successfully entering into new market as organization can remain ensure that chosen products
will successfully help them in increasing their sales, revenue etc.

Product development: it is another most commonly used strategy which is used by organizations
for expanding their market using new products/ services in existing market. This strategy can
only be used by organization if they have established high brand image that can help them in
attracting a greater number of customers in existing market for their newly introduced products
and services (Sande, 2019). Rent-A-Car organization can focus upon developing new services
for their existing customers in order to enhance their overall sales. This will further help them in
enhancing loyalty among their existing customers.
Diversification: It is rarely used strategy in which new products and services are introduced in
newly chosen market. It is one of those methods which has high risk associated with it. Rent-A-
Car organization can use this strategy by developing and introducing new products/ services into
new market but for this, they need to conduct in depth analysis and research of new market in
order to ensure that new products/ service will help then in enhancing their market (Zanjani and
et. al., 2020). This strategy can only be used by Rent-A-Car if they have conducted an in-depth
research and are sure that new products can help them in gaining competitive advantage.
These are some growth opportunities that have been identified by evaluation of
opportunities using Ansoff’s growth vector matrix that can be adopted by Rent-A-Car for
expansion and growth of company.
M 1- Discussion of options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage
Rent-A-Car organization can use Ansoff growth Vector matrix for evaluation of new
growth opportunities for gaining competitive advantage. But before selecting an appropriate
strategy they can focus upon using Porters generic strategy and Boston Consultancy Group
Matrix for evaluation of products that can be focused upon. These strategies can help identifying
ways in which they can enter into new market for gaining competitive advantage and expanding
business whether in new market or in existing market (Zanjani and et. al., 2020). Out of all the
three strategies or matrix BCG matrix can be used by Rent-A-Car organization as it will help
them in identifying which product can be focused upon and used by organization to identify
successful and effective options for growth for gaining competitive advantage.
for expanding their market using new products/ services in existing market. This strategy can
only be used by organization if they have established high brand image that can help them in
attracting a greater number of customers in existing market for their newly introduced products
and services (Sande, 2019). Rent-A-Car organization can focus upon developing new services
for their existing customers in order to enhance their overall sales. This will further help them in
enhancing loyalty among their existing customers.
Diversification: It is rarely used strategy in which new products and services are introduced in
newly chosen market. It is one of those methods which has high risk associated with it. Rent-A-
Car organization can use this strategy by developing and introducing new products/ services into
new market but for this, they need to conduct in depth analysis and research of new market in
order to ensure that new products/ service will help then in enhancing their market (Zanjani and
et. al., 2020). This strategy can only be used by Rent-A-Car if they have conducted an in-depth
research and are sure that new products can help them in gaining competitive advantage.
These are some growth opportunities that have been identified by evaluation of
opportunities using Ansoff’s growth vector matrix that can be adopted by Rent-A-Car for
expansion and growth of company.
M 1- Discussion of options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage
Rent-A-Car organization can use Ansoff growth Vector matrix for evaluation of new
growth opportunities for gaining competitive advantage. But before selecting an appropriate
strategy they can focus upon using Porters generic strategy and Boston Consultancy Group
Matrix for evaluation of products that can be focused upon. These strategies can help identifying
ways in which they can enter into new market for gaining competitive advantage and expanding
business whether in new market or in existing market (Zanjani and et. al., 2020). Out of all the
three strategies or matrix BCG matrix can be used by Rent-A-Car organization as it will help
them in identifying which product can be focused upon and used by organization to identify
successful and effective options for growth for gaining competitive advantage.
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D1 – Evaluation of option
There are many options of growth which an organization can use so that they can make
better plans or strategies. It is important to make plans to gain competitive advantage in market
and perform better than others. For accomplishing targets it is important to apply growth option
so that better plans can be made and good decision can be taken. Evaluation should be done so
that mistakes can be identified and next time it should not be repeated. There are various options
which can be applied and this is beneficial in growth and development of company (Wayland,
2019). It is important to make changes in plans or strategies so that better plans can be
implemented and help in generating more revenue.
LO2
P3 – Potential sources of funding available to business
Potential sources of funding available to business are:
Retained earning - Retained earning refers to profit earned by a company, less dividends it paid
in the past year. This profit is distributed among shareholders and can be reinvested in company.
This is a source of funding which is available to business and help in growth of firm. Benefits of
retained earnings are, it is cheapest source of funds, increase in capital formation, increase in
value of shares, easy expansion of company, safety from trade cycles (Ball and et.al., 2020).
There are some drawbacks of retained earnings like, it lead to monopolies, there is imbalanced
growth as undistributed profits.
Trade credit - trade credit refers to an arrangement to purchase goods and services without
making immediate cash payment. It is helpful in growth of business and better plans can be
made. Benefits of trade credit are, it facilitates growth of business, increase revenue and higher
margin. It mitigates risk from suppliers, investment, reduced bankruptcy risk and it has
diversified network of suppliers (Lee, Zhou and Wang, 2018). There are some drawbacks like, it
fail to comply with conditions which lead to loss of supplier, possible loss of early payment
discount, provision of cash flow advantage. This is also a source of funding and it can be applied
by company.
Factoring - Factoring refers to a financial transaction in which debtor sells its accounts
receivables to third party at discount. This is used by business to meet its present and immediate
cash needs and it helps in growth of company. There are some benefits of factoring like, it has
There are many options of growth which an organization can use so that they can make
better plans or strategies. It is important to make plans to gain competitive advantage in market
and perform better than others. For accomplishing targets it is important to apply growth option
so that better plans can be made and good decision can be taken. Evaluation should be done so
that mistakes can be identified and next time it should not be repeated. There are various options
which can be applied and this is beneficial in growth and development of company (Wayland,
2019). It is important to make changes in plans or strategies so that better plans can be
implemented and help in generating more revenue.
LO2
P3 – Potential sources of funding available to business
Potential sources of funding available to business are:
Retained earning - Retained earning refers to profit earned by a company, less dividends it paid
in the past year. This profit is distributed among shareholders and can be reinvested in company.
This is a source of funding which is available to business and help in growth of firm. Benefits of
retained earnings are, it is cheapest source of funds, increase in capital formation, increase in
value of shares, easy expansion of company, safety from trade cycles (Ball and et.al., 2020).
There are some drawbacks of retained earnings like, it lead to monopolies, there is imbalanced
growth as undistributed profits.
Trade credit - trade credit refers to an arrangement to purchase goods and services without
making immediate cash payment. It is helpful in growth of business and better plans can be
made. Benefits of trade credit are, it facilitates growth of business, increase revenue and higher
margin. It mitigates risk from suppliers, investment, reduced bankruptcy risk and it has
diversified network of suppliers (Lee, Zhou and Wang, 2018). There are some drawbacks like, it
fail to comply with conditions which lead to loss of supplier, possible loss of early payment
discount, provision of cash flow advantage. This is also a source of funding and it can be applied
by company.
Factoring - Factoring refers to a financial transaction in which debtor sells its accounts
receivables to third party at discount. This is used by business to meet its present and immediate
cash needs and it helps in growth of company. There are some benefits of factoring like, it has

working capital optimization, increased debt capacity, reduce days’ sales outstanding,
transformation of fixed cost into variable cost, credit protection against bad debts. It also helps in
growth and development of business. Drawbacks of factoring are, it cost more than a line of
credit, it solves only one problem, it is labor intensive, it helps finance company to contact your
customers (Bilgin and Dinc, 2019).
Lease financing - Lease financing refers to one of the important source of funding which can be
applied by company because in this owner of asset gives right to another person to use asset
against periodic payments. Benefits of lease financing are, it enables lessee to obtain asset with a
lower price, easy documentation which makes simple to finance assets. This is the best source of
funding because asset is given on lease. Drawbacks of lease financing are, finance company are
the legal owners of asset and non-profit payment can affect the deal negatively and the person
has to suffer loss (Gebremichael, Gebremeskel and Bisrat, 2020).
Public deposits - Public deposit are the deposits which is raised by an organization directly from
public. In this rates which is offered by public is higher than bank rates and risk is also high in
public deposits. Benefits of public deposits are, it is simple and flexible to apply because it does
not involve much formalities. It helps in trading on equity, no charge on assets, no dilution of
control, wide contacts. There are some drawbacks of public deposits like, it is not certain, limited
funds, temporary finance, limited appeal, unsuitable for new concerns (Donnelly, 2018).
Debentures - debentures refers to a debt instrument which is used by companies and government
to issue loan. In this loan is issued at fixed rate of interest and it is easy for company to take loan.
Some benefits of debentures are, it is secured investment, fixed return, stable prices, availability
of funds, regular source of income. Some drawbacks of debentures are, in this people are not
having voting rights, difficulty in repayment, affecting capacity to raise loans (Heisey, 2017).
M2 – Evaluate potential source of funding
There are different sources of funding which can be used by company for growth and
development of firm. The most suitable option for Rent- A- Car company is lease financing
because in this a person gives asset for use and it is beneficial in growth. Asset given on lease is
useful because better products can be made and it helps in accomplishing goals and objectives.
For growth of company it is important to use source of funds so that better plans can be made for
future and it help in gaining competitive advantage in market (Mason and Botelho, 2018).
Managers of company has to apply sources of funding for growth and development of firm.
transformation of fixed cost into variable cost, credit protection against bad debts. It also helps in
growth and development of business. Drawbacks of factoring are, it cost more than a line of
credit, it solves only one problem, it is labor intensive, it helps finance company to contact your
customers (Bilgin and Dinc, 2019).
Lease financing - Lease financing refers to one of the important source of funding which can be
applied by company because in this owner of asset gives right to another person to use asset
against periodic payments. Benefits of lease financing are, it enables lessee to obtain asset with a
lower price, easy documentation which makes simple to finance assets. This is the best source of
funding because asset is given on lease. Drawbacks of lease financing are, finance company are
the legal owners of asset and non-profit payment can affect the deal negatively and the person
has to suffer loss (Gebremichael, Gebremeskel and Bisrat, 2020).
Public deposits - Public deposit are the deposits which is raised by an organization directly from
public. In this rates which is offered by public is higher than bank rates and risk is also high in
public deposits. Benefits of public deposits are, it is simple and flexible to apply because it does
not involve much formalities. It helps in trading on equity, no charge on assets, no dilution of
control, wide contacts. There are some drawbacks of public deposits like, it is not certain, limited
funds, temporary finance, limited appeal, unsuitable for new concerns (Donnelly, 2018).
Debentures - debentures refers to a debt instrument which is used by companies and government
to issue loan. In this loan is issued at fixed rate of interest and it is easy for company to take loan.
Some benefits of debentures are, it is secured investment, fixed return, stable prices, availability
of funds, regular source of income. Some drawbacks of debentures are, in this people are not
having voting rights, difficulty in repayment, affecting capacity to raise loans (Heisey, 2017).
M2 – Evaluate potential source of funding
There are different sources of funding which can be used by company for growth and
development of firm. The most suitable option for Rent- A- Car company is lease financing
because in this a person gives asset for use and it is beneficial in growth. Asset given on lease is
useful because better products can be made and it helps in accomplishing goals and objectives.
For growth of company it is important to use source of funds so that better plans can be made for
future and it help in gaining competitive advantage in market (Mason and Botelho, 2018).
Managers of company has to apply sources of funding for growth and development of firm.

D2 – Critical evaluation potential sources of funding
Sources of funding has positive as well as negative impact because it is beneficial for growth and
development of company. The best option of funding is lease financing as it helps in tax benefits,
lower monthly payments, conserve capital, avoid technological obsolescence, assist corporate
growth. It is important to make plans or strategies for accomplishing targets and more revenue
can be generated. Some disadvantages of lease financing are, loss of ownership incentives,
higher cost, loss of warning period, penalty on termination of lease (Pakhnenko, 2019). So, every
source of funding has positive as well as negative points. Managers should decide which source
of funds they have to apply so that it can be beneficial in growth and development of firm.
LO3
P4 – Business plan for growth
Business overview
Rent -A- Car was founded in 1957 by Jack Taylor and start business with just seven cars he
invested money and ideas into executive leasing. The company has become the largest car rental
company in North America. They are providing good quality products to customers and focus on
attracting more people. It is important to satisfy needs of customers so that more revenue can be
generated and helps in gaining competitive advantage in market. Rent- A- Car is a well-known
brand which is operating in United States, Canada, UK, Ireland and Germany.
Market analysis
Market analysis refers to quantitative and qualitative assessment of market so that better products
can be made and it helps in making good strategies than competitors. It is the responsibility of
managers to determine factors which are present in market and find ways so that those factors
cannot affect performance of company. Market analysis help in determining size of business in
terms of volume and value, buying pattern of customers and how much customers can spend to
buy a particular product (Barlow and et.al., 2021). Market analysis is done to determine
competitor’s strategy and their plans so that an organisation can perform better than competitors
and gain competitive advantage.
SWOT analysis
SWOT analysis refers to identify strengths, weakness, opportunity and threats so that better plans
can be made and it helps in performing better than competitors. Strength refer to positive point
which Rent -A-Car is having better than others and they can earn more revenue. Weakness refers
Sources of funding has positive as well as negative impact because it is beneficial for growth and
development of company. The best option of funding is lease financing as it helps in tax benefits,
lower monthly payments, conserve capital, avoid technological obsolescence, assist corporate
growth. It is important to make plans or strategies for accomplishing targets and more revenue
can be generated. Some disadvantages of lease financing are, loss of ownership incentives,
higher cost, loss of warning period, penalty on termination of lease (Pakhnenko, 2019). So, every
source of funding has positive as well as negative points. Managers should decide which source
of funds they have to apply so that it can be beneficial in growth and development of firm.
LO3
P4 – Business plan for growth
Business overview
Rent -A- Car was founded in 1957 by Jack Taylor and start business with just seven cars he
invested money and ideas into executive leasing. The company has become the largest car rental
company in North America. They are providing good quality products to customers and focus on
attracting more people. It is important to satisfy needs of customers so that more revenue can be
generated and helps in gaining competitive advantage in market. Rent- A- Car is a well-known
brand which is operating in United States, Canada, UK, Ireland and Germany.
Market analysis
Market analysis refers to quantitative and qualitative assessment of market so that better products
can be made and it helps in making good strategies than competitors. It is the responsibility of
managers to determine factors which are present in market and find ways so that those factors
cannot affect performance of company. Market analysis help in determining size of business in
terms of volume and value, buying pattern of customers and how much customers can spend to
buy a particular product (Barlow and et.al., 2021). Market analysis is done to determine
competitor’s strategy and their plans so that an organisation can perform better than competitors
and gain competitive advantage.
SWOT analysis
SWOT analysis refers to identify strengths, weakness, opportunity and threats so that better plans
can be made and it helps in performing better than competitors. Strength refer to positive point
which Rent -A-Car is having better than others and they can earn more revenue. Weakness refers
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to negative points which a company has to improve to gain competitive advantage and it should
be improved so that they can perform better. Opportunity refer to ways which can be applied by
organisation for growth of company (GURL, 2017). It is important to identify growth
opportunities and make plans accordingly so that goals and objectives can be accomplished.
Threat means challenges which an organisation has to face and managers has to find creative
solution so that they can perform better than others.
Financial plan
Financial plan is being prepared so that it can be identified that whether organisation is earning
profit or not. It is important to make plans or strategies after analysing market situation so that
goals can be accomplished and it help in satisfying need of customers.
Year 1 Year 2 Year 3
Sales £2,00,000 £2,50,000 £3,00,000
Exports £2,50,000 £1,00,000 £1,50,000
Less: Expenses £1,00,000 £1,50,000 £1,00,000
Net profit £3,50,000 £2,00,000 £3,50,000
From the above table it can be noticed that, sales is expected to be increased in year 3 and net
profit is decreasing in 2 year but again increasing in 3 year. This is an expected table, it may be
wrong but this helps in making plans so that goals and objectives can be accomplished.
Operation and management plan
It is important to make plans or strategies for accomplishing targets and improvements
should be done so that there will be less chance of mistake. Operation management planning
helps in development of plans and strategies which allow business to manage all the activities
and meet challenges. It is essential to make proper planning and implement plans properly so that
work can be completed on time.
M3 – strategic objectives, strategies and frameworks
Objective of company:
To increase sales of company by 10% at the end of March.
To manage details of Car and payment.
To increase profit by 20% in 2 months.
be improved so that they can perform better. Opportunity refer to ways which can be applied by
organisation for growth of company (GURL, 2017). It is important to identify growth
opportunities and make plans accordingly so that goals and objectives can be accomplished.
Threat means challenges which an organisation has to face and managers has to find creative
solution so that they can perform better than others.
Financial plan
Financial plan is being prepared so that it can be identified that whether organisation is earning
profit or not. It is important to make plans or strategies after analysing market situation so that
goals can be accomplished and it help in satisfying need of customers.
Year 1 Year 2 Year 3
Sales £2,00,000 £2,50,000 £3,00,000
Exports £2,50,000 £1,00,000 £1,50,000
Less: Expenses £1,00,000 £1,50,000 £1,00,000
Net profit £3,50,000 £2,00,000 £3,50,000
From the above table it can be noticed that, sales is expected to be increased in year 3 and net
profit is decreasing in 2 year but again increasing in 3 year. This is an expected table, it may be
wrong but this helps in making plans so that goals and objectives can be accomplished.
Operation and management plan
It is important to make plans or strategies for accomplishing targets and improvements
should be done so that there will be less chance of mistake. Operation management planning
helps in development of plans and strategies which allow business to manage all the activities
and meet challenges. It is essential to make proper planning and implement plans properly so that
work can be completed on time.
M3 – strategic objectives, strategies and frameworks
Objective of company:
To increase sales of company by 10% at the end of March.
To manage details of Car and payment.
To increase profit by 20% in 2 months.

It is important to make strategies or plans for growth and development of company. It is the
responsibility of managers to identify weak points of firm and take necessary steps so that it can
be improved and goals can be achieved. Ansoff’s matrix model can be applied for future growth
of company. This model has four elements such as, market development, diversification, product
development and market penetration. It is important to apply this model so that better plans can
be made for growth of company and it helps in achieving targets (Loredana, 2017).
D3- Formulate, apply and achieve business objective
For growth of every business it is important to make strategies and perform better than
competitors. It is essential to make business objective so that plans can be made accordingly. For
accomplishing targets it is important to make plans and identify strategy which is applied by
competitors. When goals and objectives are clearly defined then it becomes easy to give
instructions to other members and work can be distributed accordingly. For accomplishing
targets it is the responsibility of managers to distribute work among members so that goals can
be achieved and to avoid confusion or misunderstanding.
LO4
P5- Succession options for a small business
There are some succession options for a small business which can be applied by company
so that in future there will be no problem. This helps in operating business smoothly and work
can be completed on time. succession planning helps in smooth transition and eliminate negative
effect of their departure. It is important to identify and determine succession options so that it
can be used in future and there will be no confusion or misunderstanding (Bertschi-Michel,
Sieger and Kammerlander, 2021).
Transfer business to family member – First option of succession planning for a small business is
to transfer business to family member. This option can be adopted by Rent- A- Car company in
future because it is a small business and this can be transfer to family member. Benefits of this
option is it allows companies to exit on their terms and conditions, develop new interest, prepare
themselves and may be family member can run business better than others and more revenue can
be generated. Some drawbacks of this option is financial security, inadequate talent to run
business, lack of skills or experience.
Sell the company to business partner or key employee – Another option is to sell the company
to business partner or key employee. It means company can their business to any key employee
responsibility of managers to identify weak points of firm and take necessary steps so that it can
be improved and goals can be achieved. Ansoff’s matrix model can be applied for future growth
of company. This model has four elements such as, market development, diversification, product
development and market penetration. It is important to apply this model so that better plans can
be made for growth of company and it helps in achieving targets (Loredana, 2017).
D3- Formulate, apply and achieve business objective
For growth of every business it is important to make strategies and perform better than
competitors. It is essential to make business objective so that plans can be made accordingly. For
accomplishing targets it is important to make plans and identify strategy which is applied by
competitors. When goals and objectives are clearly defined then it becomes easy to give
instructions to other members and work can be distributed accordingly. For accomplishing
targets it is the responsibility of managers to distribute work among members so that goals can
be achieved and to avoid confusion or misunderstanding.
LO4
P5- Succession options for a small business
There are some succession options for a small business which can be applied by company
so that in future there will be no problem. This helps in operating business smoothly and work
can be completed on time. succession planning helps in smooth transition and eliminate negative
effect of their departure. It is important to identify and determine succession options so that it
can be used in future and there will be no confusion or misunderstanding (Bertschi-Michel,
Sieger and Kammerlander, 2021).
Transfer business to family member – First option of succession planning for a small business is
to transfer business to family member. This option can be adopted by Rent- A- Car company in
future because it is a small business and this can be transfer to family member. Benefits of this
option is it allows companies to exit on their terms and conditions, develop new interest, prepare
themselves and may be family member can run business better than others and more revenue can
be generated. Some drawbacks of this option is financial security, inadequate talent to run
business, lack of skills or experience.
Sell the company to business partner or key employee – Another option is to sell the company
to business partner or key employee. It means company can their business to any key employee

or business partner so that they can run business smoothly and profit can be earned. Some
benefits of this option are, they can take advantage of opportunities, make new plans to run
business properly and earn more profit. It helps in earning more revenue and better products can
be made by taking help of new and skilled employees. Some drawbacks of selling company to
business partner or key employee are, may be they are not able to handle issues or not able to
attract people.
Sell company to outsider purchaser- Next option is to sell company to outsider purchaser, it
means to sell company to someone else who can run business smoothly and provide good quality
products to customers (Lindsey, Mauck and Olsen, 2021). There are some benefits of selling
company to outsider purchaser because more money can be earned when company is sold to
someone outsider. They are ready to give whatever price is told to them and new investment will
be done by them to make good quality products. Some drawbacks of selling company to outsider
is maybe they are not doing fraud or not doing work properly. It affects name of company and
people create negative image in minds of customers.
Close and liquidate company – Last option is close and liquidate company it means to close
company by completing all legal formalities. In this company is closed and liquidated,
organisation does not exist. Benefits of close and liquidation of company are, it minimises debt
repayments, all debts will be written off, all settlement is done. Some drawbacks of close and
liquidation are, avoid court processes, leases can be cancelled, personal liability for debts. These
are some drawbacks and benefits of liquidation of company.
M4 – evaluation of small business for growth
All the succession options can be applied by an organisation because it is good as well as bad for
growth of company. It is the responsibility of managers to identify market situation and make
plans accordingly so that they can accomplish goals and objectives. Evaluation helps in
generating more profit and better products can be delivered to customers. It is important to focus
on growth of small business and make plans so that better products can be made to satisfy needs
of customers. Evaluation should be done by managers to identify mistakes and make better plans
or strategies for accomplishing targets.
D4 – critical evaluation of exit or succession option for small business
Succession option has positive as well as negative impact on small business as it helps in
identifying qualified future leaders, keeps extra eye on a job, help in maintaining brand identity,
benefits of this option are, they can take advantage of opportunities, make new plans to run
business properly and earn more profit. It helps in earning more revenue and better products can
be made by taking help of new and skilled employees. Some drawbacks of selling company to
business partner or key employee are, may be they are not able to handle issues or not able to
attract people.
Sell company to outsider purchaser- Next option is to sell company to outsider purchaser, it
means to sell company to someone else who can run business smoothly and provide good quality
products to customers (Lindsey, Mauck and Olsen, 2021). There are some benefits of selling
company to outsider purchaser because more money can be earned when company is sold to
someone outsider. They are ready to give whatever price is told to them and new investment will
be done by them to make good quality products. Some drawbacks of selling company to outsider
is maybe they are not doing fraud or not doing work properly. It affects name of company and
people create negative image in minds of customers.
Close and liquidate company – Last option is close and liquidate company it means to close
company by completing all legal formalities. In this company is closed and liquidated,
organisation does not exist. Benefits of close and liquidation of company are, it minimises debt
repayments, all debts will be written off, all settlement is done. Some drawbacks of close and
liquidation are, avoid court processes, leases can be cancelled, personal liability for debts. These
are some drawbacks and benefits of liquidation of company.
M4 – evaluation of small business for growth
All the succession options can be applied by an organisation because it is good as well as bad for
growth of company. It is the responsibility of managers to identify market situation and make
plans accordingly so that they can accomplish goals and objectives. Evaluation helps in
generating more profit and better products can be delivered to customers. It is important to focus
on growth of small business and make plans so that better products can be made to satisfy needs
of customers. Evaluation should be done by managers to identify mistakes and make better plans
or strategies for accomplishing targets.
D4 – critical evaluation of exit or succession option for small business
Succession option has positive as well as negative impact on small business as it helps in
identifying qualified future leaders, keeps extra eye on a job, help in maintaining brand identity,
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beneficial for company in making plans for long term, creates structure for training and
development. Succession planning helps in making good image in market and identifies better
plans that can be applied for success of company. One drawback of succession option is that
there are not many key positions to be filled. It is important to determine both the aspects i.e.,
positive and negative and after that apply option which is best for growth of company.
CONCLUSION
From the above discussion it can be concluded that, planning for future growth of company
is essential and it helps in accomplishing targets. Key considerations for evaluating growth
opportunities, critical evaluation of growth has been discussed. There are different sources of
funding such as, retained earnings, trade credit, factoring, lease financing, public deposit,
debentures, its advantages and drawbacks has been described. Further, market analysis is done
and Swot analysis which includes strengths, weakness, opportunity and threats has been
discussed. Business objective, strategies and frameworks like, Ansoff matrix model has been
discussed. Further, succession options such as, close and liquidate company, sell company to
outsider purchaser, sell company to key employee has been described.
development. Succession planning helps in making good image in market and identifies better
plans that can be applied for success of company. One drawback of succession option is that
there are not many key positions to be filled. It is important to determine both the aspects i.e.,
positive and negative and after that apply option which is best for growth of company.
CONCLUSION
From the above discussion it can be concluded that, planning for future growth of company
is essential and it helps in accomplishing targets. Key considerations for evaluating growth
opportunities, critical evaluation of growth has been discussed. There are different sources of
funding such as, retained earnings, trade credit, factoring, lease financing, public deposit,
debentures, its advantages and drawbacks has been described. Further, market analysis is done
and Swot analysis which includes strengths, weakness, opportunity and threats has been
discussed. Business objective, strategies and frameworks like, Ansoff matrix model has been
discussed. Further, succession options such as, close and liquidate company, sell company to
outsider purchaser, sell company to key employee has been described.

REFRENCES
Books and Journals
Ball, R., and et.al., 2020. Earnings, retained earnings, and book-to-market in the cross section of
expected returns. Journal of Financial Economics. 135(1). pp.231-254.
Barlow, P., and et.al., 2021. Business plan.
Bertschi-Michel, A., Sieger, P. and Kammerlander, N., 2021. Succession in family-owned
SMEs: the impact of advisors. Small Business Economics. 56(4). pp.1531-1551.
Bilgin, R. and Dinc, Y., 2019. Factoring as a determinant of capital structure for large firms:
Theoretical and empirical analysis. Borsa Istanbul Review. 19(3). pp.273-281.
Donnelly, S., 2018. Advocacy coalitions and the lack of deposit insurance in Banking
Union. Journal of Economic Policy Reform. 21(3). pp.210-223.
Gebremichael, H. S., Gebremeskel, S. A. and Bisrat, H. H., 2020. Lease financing for
competitiveness and expansion of SMEs in Tigray: Challenges and strategic
solutions. Branna Journal of Engineering and Technology. 2(1). pp.1-20.
Gumel, B. I., 2019. The Impact of Strategic Planning on Growth of Small Businesses in
Nigeria. SEISENSE Journal of Management. 2(1). pp.69-84.
GURL, E., 2017. SWOT analysis: A theoretical review.
Heisey, K., 2017. Debentures in the United Kingdom and Seat Licences in the United States.
In Routledge Handbook of International Sport Business (pp. 146-154). Routledge.
Lee, H. H., Zhou, J. and Wang, J., 2018. Trade credit financing under competition and its impact
on firm performance in supply chains. Manufacturing & Service Operations
Management. 20(1). pp.36-52.
Lindsey, K., Mauck, N. and Olsen, B., 2021. The coming wave of small business succession and
the role of stakeholder synergy theory. Global Finance Journal. 48. p.100457.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series, 2, pp.141-149.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series, 2, pp.141-149.
Mason, C. and Botelho, T., 2018. Early sources of funding (2): Business angels.
Ottoo, R.E., 2020. Valuation of corporate growth opportunities: a real options approach.
Routledge.
Pakhnenko, O. M., 2019. Alternative sources of funding for innovative activities of business
entities. Przeworsk: WSSG.
Sande, N.A., 2019. Influence of growth strategies on performance of public universities in
Kenya (Doctoral dissertation, Strathmore University).
Sepasi, S., Kiani, A. and Ahmadian, V., 2017. Evaluating The Impact of Growth Opportunities
on Asymmetric Behavior of Costs: Information on Past (historical) Experiences
Compared with Prospective Information. Management Accounting, 10(32), pp.43-57.
Books and Journals
Ball, R., and et.al., 2020. Earnings, retained earnings, and book-to-market in the cross section of
expected returns. Journal of Financial Economics. 135(1). pp.231-254.
Barlow, P., and et.al., 2021. Business plan.
Bertschi-Michel, A., Sieger, P. and Kammerlander, N., 2021. Succession in family-owned
SMEs: the impact of advisors. Small Business Economics. 56(4). pp.1531-1551.
Bilgin, R. and Dinc, Y., 2019. Factoring as a determinant of capital structure for large firms:
Theoretical and empirical analysis. Borsa Istanbul Review. 19(3). pp.273-281.
Donnelly, S., 2018. Advocacy coalitions and the lack of deposit insurance in Banking
Union. Journal of Economic Policy Reform. 21(3). pp.210-223.
Gebremichael, H. S., Gebremeskel, S. A. and Bisrat, H. H., 2020. Lease financing for
competitiveness and expansion of SMEs in Tigray: Challenges and strategic
solutions. Branna Journal of Engineering and Technology. 2(1). pp.1-20.
Gumel, B. I., 2019. The Impact of Strategic Planning on Growth of Small Businesses in
Nigeria. SEISENSE Journal of Management. 2(1). pp.69-84.
GURL, E., 2017. SWOT analysis: A theoretical review.
Heisey, K., 2017. Debentures in the United Kingdom and Seat Licences in the United States.
In Routledge Handbook of International Sport Business (pp. 146-154). Routledge.
Lee, H. H., Zhou, J. and Wang, J., 2018. Trade credit financing under competition and its impact
on firm performance in supply chains. Manufacturing & Service Operations
Management. 20(1). pp.36-52.
Lindsey, K., Mauck, N. and Olsen, B., 2021. The coming wave of small business succession and
the role of stakeholder synergy theory. Global Finance Journal. 48. p.100457.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series, 2, pp.141-149.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series, 2, pp.141-149.
Mason, C. and Botelho, T., 2018. Early sources of funding (2): Business angels.
Ottoo, R.E., 2020. Valuation of corporate growth opportunities: a real options approach.
Routledge.
Pakhnenko, O. M., 2019. Alternative sources of funding for innovative activities of business
entities. Przeworsk: WSSG.
Sande, N.A., 2019. Influence of growth strategies on performance of public universities in
Kenya (Doctoral dissertation, Strathmore University).
Sepasi, S., Kiani, A. and Ahmadian, V., 2017. Evaluating The Impact of Growth Opportunities
on Asymmetric Behavior of Costs: Information on Past (historical) Experiences
Compared with Prospective Information. Management Accounting, 10(32), pp.43-57.

Stöckle, C.O., and et. al., 2018. Evaluating opportunities for an increased role of winter crops as
adaptation to climate change in dryland cropping systems of the US Inland Pacific
Northwest. Climatic Change, 146(1), pp.247-261.
Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology. 16(1). p.3.
Wayland, S. V., 2019. Saving Small Business: The Urgent Need for Improved Business
Succession Planning and how Immigrant Entrepreneurs can Help. Papers in Canadian
Economic Development. 18. pp.57-68.
Zanjani, S., and et. al., 2020. Designing a Corporate Growth Strategy Based on Ansoff Matrix
Using Fuzzy Inference System. Innovation Management in Defense
Organizations, 3(2), pp.151-178.
adaptation to climate change in dryland cropping systems of the US Inland Pacific
Northwest. Climatic Change, 146(1), pp.247-261.
Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology. 16(1). p.3.
Wayland, S. V., 2019. Saving Small Business: The Urgent Need for Improved Business
Succession Planning and how Immigrant Entrepreneurs can Help. Papers in Canadian
Economic Development. 18. pp.57-68.
Zanjani, S., and et. al., 2020. Designing a Corporate Growth Strategy Based on Ansoff Matrix
Using Fuzzy Inference System. Innovation Management in Defense
Organizations, 3(2), pp.151-178.
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