Planning for Growth: Matefile Ltd. Business Development Report

This report provides a comprehensive analysis of Matefile Ltd.'s growth strategy, a design consultancy based in Slough, UK. The report begins with an introduction to planning as a crucial aspect of organizational growth, emphasizing the importance of strategic planning and the development of suitable plans and policies. Task 1 analyzes key considerations for Matefile Ltd., including Porter's Generic Model and PESTLE analysis to evaluate the external environment. Task 2 evaluates growth opportunities using the Ansoff growth matrix, recommending a market development strategy. Task 3 explores potential funding sources, differentiating between internal and external financing options. Task 4 focuses on developing a business plan and assessing exit strategies for small businesses, detailing their benefits and drawbacks. The report concludes with a summary of the findings and recommendations for Matefile Ltd.'s sustainable growth and success.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse various key considerations by justifying the growth and opportunities of suitable
frameworks..................................................................................................................................1
P2. Evaluate the growth and opportunities for business by using Ansoff growth matrix...........3
TASK 2............................................................................................................................................5
P3. Determine the potential sources of funding which are available for business......................5
TASK 3............................................................................................................................................6
P4. Develop a business plan........................................................................................................6
TASK 4............................................................................................................................................8
P5. Assessment of exit option for small businesses with its suitable benefits and drawbacks....8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning is an important aspect in order to growth for an organisation and also considered
as the strategic business activity which is useful for the owner to develop suitable plans and
policies to achieve success. While doing planning it brings many changes within the functions of
business so, to develop suitable plans and strategies, planning plays an important role (Olesen
and Carter, 2018). This function focuses on the desired business goals and objectives which
provided detailed information regarding an organisation. Here, planning refers to the
enhancement and development of strategies which is useful in analysing and addressing the risk
within the business environment. For this report, small organisations are considered who have
limited area and employees to run their business. Here, Matefile Ltd. is considered which is a
design consultant, incorporated in 2010 and situated in Slough, Berkshire, UK. This report is
going to cover the different topics and also analyse the growth and opportunities by using Ansoff
growth matrix. In addition to this, various sources of funding are described for the success and
expansion of business and business plan is developed in order to provide financial information of
business. At last, exit plan is discussed with its benefits and drawbacks in relation with business.
TASK 1
P1. Analyse various key considerations by justifying the growth and opportunities of suitable
frameworks
Companies use strategies and plans for the achievement of success and growth and these
are developed and make within the written document as it communicate the suitable goals and
objectives (Gounaridis, Chorianopoulos and Koukoulas, 2018). In order to achieve competitive
edge, Matefile should consider many strategic approaches which is useful in achieving
profitability and sustainability for company. For this, two prominent frameworks are used such
as Porter's generic and PESTLE model is used which are discussed as underneath:
Porter's Generic Model: This model is related with the business activities which are
considered as narrow or wide. To achieve competitive advantage, it offer probable benefits and
other concerned services at low cost to their respective customers. For this, three generic
strategies are discussed as underneath: Cost leadership: This strategy describes that to become a leader in the industry,
developed strategy should survive within the dynamic business environment and also
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become the low cost producer to attract customers. In relation with this, company can
target wide market area by offering low prices which helps them in becoming a good
leader (Lê and et. al., 2016). For this, company need to keep its cost low as it helps in
attracting more customers and acquiring wide market area. Here, Matefile can adopt this
strategy by eliminating its cost to make suitable designs as there are many ways such as
produce relevant and innovative goods, outsourcing of goods and so on. Differentiation: It is helpful to be unique and different to attract more and more
customers in relation with their competitors. Thus, to achieve growth company require
excellent uniqueness and creativity which allows them to charge their premium prices to
their suitable products as because of this, potential customers does not get shift from one
brand to another (Sarin, 2019). In relation with Matefile, it is good for company but also
carry suitable risk with it because business environment is dynamic in nature and in
respect of this, company need to control its production procedure and actions.
 Focus strategy: This strategy is classified under two segments which are cost and
differentiation focus. Organisations use this strategy in order to grasp large customer base
and also focus on the target market which relies under various sections. Here, Matefile
can put emphasis on the focus strategy to achieve competitive advantage and its helps in
achieving high customer base. For this, company achieve success in narrow segment and
by developing broad range of products.
PESTLE Analysis: This framework is useful in determining the external forces which
regulate the business environment and to determine it, research and investigation is conducted
for the benefit of company. Matefile, can adopt this strategy in order to determine the external
forces in new market and different factors are discussed as under: Political: This component is useful in analysing the government policies which
influences the economy as it include various policies such as taxation, trade etc. and also
describe the political stability which influences the policies and strategies of company.
For instance, if new policy is introduced within the business environment and
government of UK is not stable then the revenues of Matefile gets impacted by those
policies. Economical: This factor describe the economic performance of company which
influences the profitability of company. Thus, it is important to determine this factor
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before expansion of business as it give tough competition to their competitors. By
considering the economic conditions of UK, it put positive impact of the expansion of
business as for this, Matefile does not face any sort of threat in their expansion which
impacts the buying activity of customers. Social: Here, company should determine the social factors before its expansion and
determine new market segment, analyse current trends, values and so on. These factors
can be done with the help of proper investigation and research activities. In relation with
Matefile, they need to analyse the demand of products, buying behaviour of customers
and so on. Technological: This factor is concerned with the technological components like R&D,
innovation etc. which influences the operational activities of business (Birkin, Clarke and
Clarke, 2017). Here, Matefile should determine various technological aspects before
entering into new market area and also introduce its product in accordance with
innovative technology. Legal: Here, organisations should understand about the legal activities and laws which
are allowed within the territory. It describe laws and legislations which should be
followed by company before entering into new market. For this, government of UK has
developed many laws which are followed by Matefile and entity need to ensure that they
operate their business functions under these legislations.
 Environmental: This factor depicts the surrounding and nearby business conditions
which relies under environmental aspect and for this, different environmental protection
acts are developed which impacts the operational activities of business (Deng, Fu and
Sun, 2018). For this, Matefile need to follow suitable environmental act which is useful
in developing positive image of company in front of customers for the success and
growth of company.
BCG Matrix:
Growth share matrix: This business tools represents mostly the relative share of market and
growth factor of industry, that helps a firm in analysing and evaluating the potential power of its
brand portfolio for increasing investment process. In context with Matefile, as growth share is
highly depended on its market performance in consultancy sector, therefore, its management
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needs to develop creativity in its product design, to influence investors for making investment in
business, so that high market share can be gained.
Relative Market Share: This type of market share helps in evaluating the business portfolio
that demonstrates market share. Therefore, within increasing relative market share may arise
competitors for Matfile, which is essential to gain sustainability in business as well.
P2. Evaluate the growth and opportunities for business by using Ansoff growth matrix
Ansoff matrix is useful in analysing and providing suitable information regarding the
market conditions and business environment. It is executed and evaluated by different companies
and for this, various strategies are discussed as underneath: Market Penetration: This strategy depicts the sale of current products within the present
market. For this, penetration strategy develop prominent opportunities in regard of
earning more profit by grasping more consumers within the existing market. But because
of its strategies, it has its saturation point and in regard of this, organisations need to
develop suitable strategies to achieve growth and success (Biddle and Taylor, 2018).
Therefore, to achieve growth Matefile need to make suitable modifications in their
strategies and policies which helps them in gaining suitable market share by focusing on
the strategies and the quality of products. Market Development: Here, existing products are launched within the new market which
include happiness of gaining new market segment. For this, company target the different
customers and in regard of this, company need to develop suitable strategies which are
useful in attracting huge amount of customers. For this, company use suitable
frameworks to analyse the opportunities and threats of various market. In relation with
Matefile, they should target that area in which offered services are not present. Product Development: With the help of this strategy, new products are sold within the
existing market and it is helpful in attaining growth and can foster the production of
company. For this, suitable information is gathered by determining the taste and need of
customers as research is useful in saving the cost of irrelevant promotion in order to
develop good reputation within the market. For this, Matefile have fine reputation within
the market area and also has loyal customer base which helps them in introducing new
product.
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 Diversification: This strategy is termed as very risky from all the above discussed
strategies because here product and market both are new. This strategy is also considered
as very costly because it include lot of market research and also analyse the present
market conditions and buying behaviour of customers before launching its products
within new market area (Colantoni and et. al., 2016). Here, Matefile can opt this strategy
after conducting suitable research and determine the requirement of launching new
product in new market area.
Thus, from the above discussed strategies, market development is opted by Matefile as
due to this, company can launch its cureent products within the new market place in order to
grasp new market area. For this, Ansoff model is used in order to analyse the best suited strategy
which company can adopt. By determining the overall analysis, PESTLE, Porter's and Ansoff is
useful for a organisation to understand the needs and requirements of customers and also use
suitable techniques to gain competitive edge for company. But with this strategy, risk also
associated with it because it require huge amount of investment to introduce its new product in
market. In order to reduce risk factor, company should conduct market research in order to
determine the needs and preferences of customers that will change according to trends and need
to do continuous research to achieve success and also provide suitable information regarding the
new market area.
TASK 2
P3. Determine the potential sources of funding which are available for business
There are two sources by which company can gain funds and finance for their business
which are broadly discussed as under:
Internal sources: It defines the way by which company get funds from itself and its
related internal party. In starting stage, funds and capital is invested are brought from the
internally like by the owner and directors itself (Park and LaFrombois, 2019). It have various
methods to raise funds such as personal capital, retained earnings and so on and these are the
resources which are useful at the initial stage of business. If company operate its business at
large scale then internal sources are not enough, they need external sources also.
External sources: It refers to those funds which are used by company to get funds from
the outside area of company. Here, third party gets involved in the operational activities of
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business to provide them money which is expected from them in return. In order to raise capital,
organisations need to perform various activities such as getting money from third party or
external side and determining the potential risk along with its drawbacks and opting the best
available resources.
In relation with Matefile, external sources are more preferred in order to raise funds. For
this, some of the respective sources are discussed as under with prominent benefits and
drawbacks.
Equity Shares: It is considered as the general way of giving and providing rights to other
individuals as it is termed as the common procedure of sources of funding which can be used by
organisations. This method need to follow much legislation because lot of shareholders are
involved in it (DODDS, DIMANCHE and SADOWSKI, 2018). Benefit: By considering the rules and laws issuing shares are termed or considered as the
safest procedure for both the company and shareholders too. Drawback: This kind of fund raising component is considered as very costly and time
consuming. For this, lot of investment and time is required and it is also not considered as
the easy method to raise capital for business.
Bank Loans: These are termed as long and short term way to raise capital for business which
includes deep analysis and determination of company, as it is performed by banks. It is also
considered as a secured form of financing and raising capital as some assets are considered as the
mortgage by banks in relation with security (Daniels and Lapping, 2016). Benefit: Bank loans are considered as the safe and secure way to get money as here
companies just need to have appropriate and complete documents to fulfil all the
prominent formalities.
 Drawback: Sometimes, bank loans take lot of time in order to examine and complete
analysis of an organisation which results in delay in funds. Thus, to avoid this company
can choose other sources of finances.
Angel investors: These investors are considered as the private investors and the angel
funders as their high net worth of individuals who offer funding and capital to small businesses
and start-ups. Usually, these investors are occurred from the family and friends as they typically
exchange their ownership equity in the relation with company. For this, the funds of angel
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investors offer one-time investment in relation with the help of business in order to take out
company from their difficult timings. Benefits: These investors are quite less risky rather than debt financing. Here, invested
capital does not have to be paid back in event for the failure of business. As most of the
angel investors understand business and its aspects in order to take for the survival of
longer period of time.
 Drawbacks: There is a loss of complete control as a part owner. The angel investors also
receive an appropriate portion of the profits when the business gets sold. As while
lending business, they have no control on the operations of company and also take
prominent risk of no sharing of profits.
There are many external sources of funds which are suggested to Matefile in order to raise
and get funds for the expansion of business as it is helpful in smooth functioning of company.
TASK 3
P4. Develop a business plan
Business plan is a document which depicts various information and data regarding the
company and its investors. It is also useful in developing various plans and strategies for the
future purpose as it helps in reducing the different operational activities (Leick and Lang, 2018).
Here, Matefile is considered which a design consultant company is and in order to run their
business in effective manner suitable things are considered which are discussed as under:
Company Overview: It is a private limited company which is incorporated in 2010, Slough,
Berkshire, UK in order to provide guidance and direction regarding the designs and also develop
creative designs. As it offers its services in various places of UK.
Purpose of business: Matefile is dealing in designing and providing consultancy services
reading the designs and for this, they have suitable market segment and want to acquire new and
more market area in order to become the leader of industry.
Vision and Mission: For this, there vision is to offer different kinds of products and
services to the various market area and become the leader of this industry. In respect of this, it
mission is to analyse the needs and requirements of customers and according to this, products are
offered by them in order to develop good reputation within the market. Matefile, need to develop
new and unique designs and also provide consultancy regarding this to spread awareness of it.
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Strategic Objectives:
 Offer unique and creative services to business clients
 Expand business at other locations within next six months by increasing organisational
profitability to 12% more.
Promotional Strategies: By considering this, company will make suitable plans and
policies in order to promote its products and services which are discussed in the above discussed
model that is market development. In respect of this strategy, company will take entry into
market with its existing product. For this, company can use its suitable brand image in order to
advertise its products which helps in strengthen the reputation of market. In accordance with this,
situational analysis is conducted in order to analyse and examine the current trends which is
helpful in the expansion of business. For this, the government of UK is politically stable in terms
of expansion of business as it helps in fostering the operations of company. For this, there are
some laws which are related with the working conditions of company and also useful in
protecting the rights of company and protect them from exploitation. For this, company should
follow various regulations to operate its business and run it in smooth and successfully.
Financial Information
Budget: Financial budget is the part of business or the master budget as it is considered
as the strategic plan for the near future. It is a plan which maps out the planned financial
activities of the upcoming years. Its purpose is to estimate the capital expenditure, cash budget
and balance sheet.
Particular 31/12/19 31/12/20 31/12/21
Implementing technology cost 17000 - 4000
Promotional expense 13000 15500 8500
Advertisement expense 7000 8000 7000
Catalogues 1800 3000 5000
Training charges 6000 8000 7500
Total Cost 44800 34500 32000
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Cash flow statement: This statement include various information regarding the
organisation from the beginning to end of the year and also include previous year information
(Olesen and Carter, 2018). It include numerically detailed information which describe inflow and
outflow of cash.
Particulars 1st year 2nd year 3re year
Initial investments 7800 14580 20000
Borrowings 12000 5800 7800
Retained earnings 6000 7500 15500
TOTAL 25800 27880 43300
MARKET OUTLAY
Promotional expense 7400 7900 6300
Distribution expense 5000 6300 5800
Publicity 8500 15200 8250
TOTAL 20900 29400 20350
TASK 4
P5. Assessment of exit option for small businesses with its suitable benefits and drawbacks
Exit options: This option is effective for companies only when they want to give up on their
business and also hand over the powers and authorities to other individual. These options are
useful for the owner in order to take exit from their business (Gounaridis, Chorianopoulos and
Koukoulas, 2018). For this, if company suffers from loss for the longer period of time then it is
recommended them to wind up their business. For this, few options are provided to company are
as follows:
Winding up: It is a procedure which is useful in dissolving the company and for this, the
owner of company need to sold out and pay off all their assets and after that distribute all the
remaining funds among the shareholders and investors of company (Lê and et. al., 2016). In
relation to Matefile, if they does not get success in its expansion then it becomes the suitable
option which is opted by company.
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 Advantages: Here, the hire purchase of company gets complete or terminate at the
probable date of closing a company and if the company is suffers from legal actions so at
the time of winding up, it will get stop. As here, owner of company get free from all the
debts and because of this, company will not face losses.
 Disadvantages: Here, the owner of company lose its control over the assets of company
and also undertake the whole winding up procedure. In addition to this, at the time of
winding up company will also lose its talented manpower.
Selling in open market: This procedure is useful in selling its products within the open
market and for this, company need to purchase its products from the outside or from third party.
Overall, in this method, business operations remain same but owner of company gets change
(Sarin, 2019). Advantages: This procedure is useful as it does not harm the reputation of company and
due to its image buyers will purchase products from the running business which does not
impact the operational activities of company. Disadvantages: Here, the owner of an organisation will lose its control and power and
also their talented workforce which impacts the motivation, morale and values of
employees.
IPO (Initial Public Offerings): It refers to the procedure which provide shares of private
corporations for public in a new stock issuance. These shares allow company to raise capital
from public capitalist as its transition from the private to public company is quite important for
private capitalist. Advantages: It is beneficial to go public with the help of IPO is useful in increasing
capital and funds quickly by reaching a large number of investors. For this, company use
cash to carry forward its business in the form of research or expansion. IPOs are helpful
in growing organisations by attracting new talent as by offering perks like stock options.
 Disadvantages: The biggest drawback of going public by IPO is the time and expense of
going through the procedure. As IPO take months and at that time the management team
of company put emphasis on other areas of business which can suffer. Moreover, it costs
money to go through with IPO from financial services and underwriting charges.
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CONCLUSION
This, it is concluded that planning plays a significant role in the success and growth of
business and also helpful in determining and identifying the suitable opportunities for company.
In order to determine the growth for company various frameworks are used such as PESTLE,
porter's and Ansoff for developing the best strategy for business. Moreover, for the expansion of
business various sources of finance are discussed which are helpful in growth of business and
also provide information regarding the finance of company. At last, exit option is discussed in
order to deal with undefined uncertainties which can affect business and its functioning.
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