Planning for Growth: Strategies, Funding, and Exit Options - BTEC

This report provides a comprehensive analysis of planning for growth, focusing on Enterprise Rent-A-Car. It begins by evaluating key considerations for growth opportunities, utilizing frameworks like PESTEL and BCG Matrix. The report then assesses growth opportunities through Ansoff’s growth vector matrix, highlighting market penetration, market development, product development, and diversification. It further explores potential sources of funding, including retained earnings, bank loans, and angel investors, discussing the benefits and drawbacks of each. A business plan for growth is designed, outlining the company overview, mission, and objectives. Finally, the report assesses exit options, providing a holistic view of strategic business planning. Desklib provides access to this and other solved assignments to support student learning.

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations .............................................................................................................................3
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................5
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................6
P4 Design a business plan for growth ........................................................................................8
Assess exit options....................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth is defined as the strategic business activities that helps business
venture to develop effective planning as well as track business growth and development.
Effective planning allows business to allocate limited resources and ensure their optimum
utilisation in order to attain determined goals and objectives properly. Planning guide business to
perform business operations efficiently and gain competitive advantages then other competitors.
There are various marketing strategies are included that ensures systematic growth in
competitive environment (Foss, 2018). In this report chosen organisation is Rent-A-Car which is
small business founded in the year of 1957 by Jack Taylor. The business starts with seven cars
and it expands business operations through hiring cares to customer. This report covers various
growth opportunities that enable business to explore business and attain success through
applying ansoff growth vector matrix. Furthermore, various sources of funding along with their
benefits and drawbacks as well as business plan for growth in the context of business are
mentioned. Various exist options for business is discussed in this report project.
TASK1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations
Enterprise Rent-A-Car is well-organised international business that serves rental cars for
customers. Respective organisation is planning for expending its business operations through
enhancing customer services by recognising future capabilities of business. There are various
frameworks are used by the organisation to eventuate growth opportunities. Some frameworks
are mentioned below:
PESTEL
PESTEL analyse is defined as the strategic framework that is used by organisation to
analyse different factors of external environment. Some factors of external environment are
mentioned below:
Political- In political factor various aspects are included that impacts business
performance and functionality in positive as well as negative manner. There are various changes
are happened in political environment, tax policies, trade restrictions and political stability are
the factors that impacts Rent-A-Car organisation (Georgallis, and Durand, 2017). Respective

organisation is accountable to follow these regulations in order to run business in efficient
manner. As business want to expand business operations so, knowledge of these factors help to
run business efficiently.
Economic: In economic factor various factors like inflation rate, interest rate and
fluctuations in car prices and petrol impacts Rent-A-Car organisation. All these factors are
analysed by the organisation to develop policies for attaining growth and development
opportunities.
Social: In social factor cultural norms and expectations, population growth rate, health
and safety of customers, population growth and age distribution are included. Attitude as well as
preferences of customers are changing towards spending on comfort than saving. Rent-A-Car
take advantages of these aspects through provide valuable rental cars services in order to deliver
premium states to target customers.
Technological factors: Innovation, advancement in technology and research and
development are included in technological factor that accelerates business performance
(Harrison, 2017). Rent-A-Car organisation creates various innovations and advancements in cars
to provide better quality services it attracts large customer base and enhance profitability of
business.
Environmental factors: There are various regulations related waste disposable laws,
environmental protection laws and energy consumption laws re included. Rent-A-Car uses waste
management techniques to reduce negative impacts on environment. It helps business to reduce
the cost of production as well as improve efficiency of supply chain. Organisation implements
energy consumption regulations that enable business to reduce pollution rate in environment.
Legal factors: Services that are provides by Rent-A-Car are riskiest one so, business
implements various laws like health and safety and consumer protection laws that help business
to provide most safest services to its customers.
BCG Matrix
The BCG matrix is considered as the strategic plan that enables business to attain the
objective of growth and development. Rent-A-Car implement this model in order to explore
business operations and attain success. Factors of this model are mentioned below:
Star: Star products are defined as the products that have high growth as well as high
market share. Business need to invest in these products attain high market share and stand out

among competitors. Rent-A-Car have SUVs and Cars that captures high market share and high
growth in targeted market.
Cash Cows: Cash cow generate less income because of having high competitive
pressure. There are various products of Rent-A-Car that are put in cash cow are minivans & vans
that needs high maintenance and have low growth in market.
Dogs: Dog products are considered as the products that have low growth as well as
market share which is big drain for business of Rent-A-Car. The moving trucks & vans develop
are the products that earns low profits sue to having less demand in competitive environment.
Question mark: There are various products such as Exotic cars that have high market
growth but because of less awareness it captures less market share (Higgins, nd Savoie, 2017).
These products have potentiality to include in star products of organisation if business invest
them to attain high market share.
Justification:
Proper evaluation of these strategies help Rent-A-Car organization to ensure growth and
development in competitive environment. Analysation of these factors facilitates business to
develop effective policies that enable organization to handle challenges that are raised due to
competitiveness. It helps business to invest in right products that ensures success in business
development.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Ansoff matrix is defined as the effective marketing tool that is used by the organisation to
develop effective strategies that help business to attain sustainable competitive advantages.
Rent-A-Car uses this model to create effective business strategies are mentioned below:
Market Penetration: Market penetration strategy is related to providing existing product
and service in existing market place. As per this strategy business want to expand its market
share through reach number of customers in market (Jentoft, 2017Kidd, Jones and Jay, 2019).
Organizations can attain higher market share through decreasing prices of products and services,
increasing promotions as well as acquisition of rivals in order to maintain effective positioning
then other competitors.
Market development: Market development is related to launching existing products and
services in market place. In this strategy business want to expand its operations in another market
through implementing various strategies. Before expanding in new market, business need to

research market trend, needs and demands of customers to serve them properly. Businesses have
to pay their attentions on promotions to enhance awareness in market regarding products and
services of organization.
Product Development: Product development is related to launching new products with
having new features in existing market place. Business develop products according to needs and
demands of customers that enhances their satisfaction level and retain with organization for
longer period of time. Through adopting product development strategy, business bring unique
and innovative changes in products that attracts customers.
Diversification: Diversification is defined as the market development strategy that is
related offering new products in new market place or previously unexplored markets. It is the
most riskiest strategy so business should adopt this after researching all aspects of market
(Knaap, Avin and Fang, 2017). Businesses invest in marketing to spread information in market
regarding new product in unknown market.
Rent -A- Car organization adopts product development and market development strategy
to expand business operations and gain growth and development opportunity. Organization bring
innovation in products poly-centric activities in operations. Respective organization also
planning for expanding its business operations in other countries like USA, UK, Canada, Ireland
and Germany. Through adopting these strategies business can attain the objectives of growth and
development.
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
There are various source of funding that are used by organization to acquire funds ion
order to run business operations in efficient manner. Each and every source of funding have
different characteristics and regulations. Rent-A-Car evaluates all source of funding on the bases
of cost, associated risk and business requirements (Legacy, Curtis,and Scheurer,2017). After
evaluation business take selects appropriate source of fund. Some available funding sources are
mentioned below:
Retain earning: This is the most effective source of funding which is defined as the
specific proportion of business revenues that are retained by organisation to handle critical
situations in future. Retain earning also termed as the self- financing of profits or internal

financing. Rent-A-Car develop effective strategies to retain some part of business profits that
can be utilised in future situations.
Benefits:
 It is determined as the organisational permanent source of funding for future use. On
these funds business is not liable for paying interest, dividend that reduces overall cost of
business.
 Retain earning help business to deal with unexpected losses in efficient manner that
enhances market price of equity share of Rent-A-Car organisation.
Drawbacks:
 Unreasonable retained earning leads business shareholders towards dissatisfaction
because they got lower dividend on shares that are hold by them.
 Retain earning is quite uncertain because it is depend on business profitability that can
fluctuate every time.
Lone from banks: There are various sources of funds such as banking sector provide funds to
business for different purposes and different time period such as short-term and long-term.
Rent-A-Car organisation get funds from banks through term loans, discounting and overdraft.
Banks charge fix rate of interest on loan that is granted to business (Linkous, Laurian, and Neely,
2019). Business repaid the amount of loan either in instalments or in lump sum bases.
Benefits:
 Bank loan is considered as the most flexible source of finance that provides funds to
business according to their needs and requirements.
 In the process of granting loan, various information is provided by the organisation. Bank
keeps all these information confidential that enhances reliability of this source.
Drawbacks:
 In the process of granting loans from bank, various legal requirements are fulfilled by
organisation that are lengthy and complex in nature.
 Before granting lean to business, banks evaluates financial positioning of business.
Angel Investors: Angel inventors are considered as the various wealthy private inventors who
are focused on financing small business venture in the exchange of equity (Morphet, 2017).
Basically, it is the high-net-worth individuals who provides financial backing to start-ups and

entrepreneurs in the exchange of ownership equity of organization. It is the one-time investment
that help business to provide support and carry all business operations in efficient manner.
Benefits:
 Angle investors effective source of financing which all investment decisions are taken at
very fast rate. In this source finance business are free from payment of interest.
 It is the most suitable source of funding that essential for starting business operations on
efficient manner. It can be use by every organization in order to explore various local as
well as regional opportunities.
Drawbacks:
 Major drawback of this source is that investors posses high degree of control over
business that enhances risk of organization.
 The process of finding suitable investors for business which is time consuming process.
P4 Design a business plan for growth
Executive summary: Business plan is defined as the written document that describes
core business activities, its objectives and planning to achieve determined goals and objectives
on time with efficiency (Orrieri, Porretta, and Savaré, 2019). Enterprise Rent-A-Car
organization want to expand its business operations through opening a rental office in in UK
with having same types of offering.
Company overview: In this report chosen organization is Rent-A-Car enterprise which is
founded in 1957 by Jack Taylor in USA. 68,000 employees are working in organization.
Organization deals in providing rental cars to its customers.
Mission : Main mission of organization is to provide better customer services to
customers as well provide them real solutions regarding transportation problems.
Objective:
 To enhance business sales by 25 %
 To brings innovation in business to deal with competitors.
 Launching new products as well as services of premium exotic cars with the objective
attracting large customer base.
Market analysis
Market trends: Rent-A-Car organization update its products and services with current
market trends. Current market trends in rental services provider is implementing AI-augmented

mobility as well as bring innovation. These trends improves regulatory system and dynamic
policy making of business. These all trends are executed by organization to remain competitive
in business environment.
SWOT-
Strengths
 Organisation has diversify product
portfolio that enhance business market
share.
 Respective organisation has strong
relationship with suppliers who
provides better quality at affordable
prices.
Opportunities
 Rent-A-Car organisation adopts e-
commerce and social media platforms
that enhance brand awareness of
business and reduce advertisement cost
in market.
Weakness
 Organisation has lack of diversify
employees that impacts on business
success.
 Improper management of resources is
the weakness of business affect
organisational development and
growth.
Threats
 Rent-A-Car organisation is deeply
supervised by government that develop
pressure on business to conduct
business operations in efficient manner.
 New entrants create threat of business
because it impacts their proficiency rate
and increase operating cost.
STP: STP is defined as the approach that is stand for segmentation, targeting and
positioning. All these aspects are used by organisation to create effective brand image and attain
competitive advantages. Segmentation: Segmentation is defined as the process of dividing whole market in to
smaller segments (Rydin, 2019). Rent-A-Car segments market on the bases of geographic
and behavioural approaches. Through using geographic basis, organisation divides
market in region, climate and town. From the perceptive of behavioural segmented
group is between 18-64.

 Targeting: Main target customers of organisation are national and regional people male
and female both who are located near.
 Positioning: Organization provides quality products and services to customers at
affordable prices and promote marketing campaign on social media that maintains brand
image of customers in market.
Financial projection
Cash flow statement: Financial statement is defined as the summarize way that includes
cash & cash equivalent as well as provide detail information about cash inflows and outflows of
business.
Assess exit options
Business exit strategy is defined entrepreneurs strategic plan that enables them sell their
business ownership to investors or other organisations (Smętkowski, 2018). If entrepreneur find
that business is not in the situation to earning profits than it adopts exit strategies to cover the
losses. Some exit strategies are mentioned below:
Merger & Acquisition: Merger is defined as the process of combining two business that
enhance overall value of business. It enhances business resources and expertise that enables it to
attain goals in most efficient manner. On the other hand, acquisition is the situation when an
organisation buy other.
Pros:
 In this exit option, business can sell their products and services at higher prices because
buyer needs organisational products.
 It helps business to diversify its products, services and reduces cost as well as overheads.
Cons:
 Merger and liquidation enhances legal cost of business that impacts overall performance
and functionality of business.
Liquidate: If business is not getting appropriate exiting strategy then liquidation is the most
suitable strategy. This strategy is related selling business assets, pay all debts after that close all
business activities in a formal manner (Swinton,and Schlesinger, 2019). Business convert their
assets into cash or cash equivalents.
Pros:

 Liquidation is the simple strategy that enable business wind up operations quickly on
time.
 It enables business to get cash on immediate basis.
Cons:
 Liquidation provides low returns that enhances its limitations.
Rent-A-Car organization adopts liquidation exit strategy through selling all assets and settling
debts.
CONCLUSION
As per above report, it can be concluded that it is important for organization to develop
effective planning that enable business to attain determined goals and objectives with efficiency.
PESTEL, BCG Matrix are used by organizations to analyze external environmental factors and
develop policies and strategies accordingly. Business concentrates on executing strategies in
most efficient manner that enables to gain sustainable competitive advantages. There are various
source of funding that are adopted by organization after analyzing their benefits and drawbacks.
Business plan is developed by organization that guide business to attain goals and objectives in
efficient manner.

REFERENCES
Books and Journals
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politics, cultural frames and public participation. Urban Studies, 55(2), pp.332-348.
Georgallis, P.P. and Durand, R., 2017. Achieving high growth in policy-dependent industries:
Differences between startups and corporate-backed ventures. Long Range
Planning, 50(4), pp.487-500.
Harrison, B.J., 2017. Changes in theorizing and planning urban economic growth. In The
Profession of City Planning (pp. 194-199). Routledge.
Higgins, B. and Savoie, D.J., 2017. Regional development theories & their application.
Routledge.
Jentoft, S., 2017. Small-scale fisheries within maritime spatial planning: knowledge integration
and power. Journal of Environmental Policy & Planning, 19(3), pp.266-278.
Kidd, S., Jones, H. and Jay, S., 2019. Taking account of land-sea interactions in marine spatial
planning. Maritime spatial planning, p.245.
Knaap, G.J., Avin, U. and Fang, L., 2017. Driving and compact growth: A careful look in the
rearview mirror. Journal of the American Planning Association, 83(1), pp.32-35.
Legacy, C., Curtis, C. and Scheurer, J., 2017. Planning transport infrastructure: examining the
politics of transport planning in Melbourne, Sydney and Perth. Urban policy and
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Linkous, E., Laurian, L. and Neely, S., 2019. Why do counties adopt transfer of development
rights programs?. Journal of Environmental Planning and Management, 62(13),
pp.2352-2374.
Morphet, J.R., 2017. Sub-regional strategic spatial planning: the use of statecraft and scalecraft
in delivering the English model. Town Planning Review, 88(6), pp.665-682.
Orrieri, C., Porretta, A. and Savaré, G., 2019. A variational approach to the mean field planning
problem. Journal of Functional Analysis, 277(6), pp.1868-1957.
Rydin, Y., 2019. Planning for Sustainability: Lessons from studying neighbourhood shopping
areas. Planning Practice & Research, 34(5), pp.522-536.