Planning for Growth: Evaluating Opportunities for R Robson (Guinot)
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This report provides a detailed analysis of growth opportunities for R Robson (Guinot), a UK-based beauty treatment product company. It covers key considerations for evaluating growth, including competitive advantages, resource capabilities, core competencies, and Porter's Five Forces. The report also includes a PESTLE analysis to assess macro-environmental factors and the use of the BCG matrix to review the product portfolio. Ansoff's growth matrix is applied to evaluate growth strategies, and various funding sources are discussed, along with their advantages and disadvantages. Furthermore, the report outlines the design of a business plan for growth, including succession and exit strategies, highlighting their respective benefits and drawbacks. This comprehensive analysis aims to provide a roadmap for R Robson's sustainable expansion and future development.

Planning for Growth
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1...........................................................................................................................................3
P1 Analysis of key considerations for evaluating growth opportunities & justify these in
organisational context.................................................................................................................3
P2 Evaluation of growth opportunities by applying Ansoff's growth matrix.............................8
TASK 2............................................................................................................................................9
P3 Different sources of funding along with it key advantages and disadvantages.....................9
TASK 3..........................................................................................................................................12
P4 Designing business plan for growth of organisation............................................................12
TASK 4..........................................................................................................................................16
P5: Succession and exit plan for small business with its advantages and disadvantages.........16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
INTRODUCTION ..........................................................................................................................3
TASK 1...........................................................................................................................................3
P1 Analysis of key considerations for evaluating growth opportunities & justify these in
organisational context.................................................................................................................3
P2 Evaluation of growth opportunities by applying Ansoff's growth matrix.............................8
TASK 2............................................................................................................................................9
P3 Different sources of funding along with it key advantages and disadvantages.....................9
TASK 3..........................................................................................................................................12
P4 Designing business plan for growth of organisation............................................................12
TASK 4..........................................................................................................................................16
P5: Succession and exit plan for small business with its advantages and disadvantages.........16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Planning is a central activity that assist firm in achieving high growth and development as
well as attain pre-defined goals within specified time frame. The process of planning starts with
measuring existing operation of company and determine what needs to be improved
operationally in the upcoming time period. With the help of growth planning, business owner
can track revenue and market growth while formulating effective business strategy. The chosen
organization for this report is R Robson (Guinot) which is UK based company primarily deals in
beauty treatment products (Barbour and Deakin, 2012) The given report covers key
consideration needed for massive expansion and future growth, developing business plan,
assessing different source of funding along with its key benefits and lastly ways top exist
business.
TASK 1
P1 Analysis of key considerations for evaluating growth opportunities & justify these in
organisational context
Growth in business forms critical factor for an organization to attain in order to maintain
sustainability and profits of the organisation. For this company together with its management
and workforce undertake planning for its long term growth objectives. This assists firm to
maximize its work efficiency, enhance its performance and to attain goals before or within
timelines. R Robson is a small enterprise in UK that deals in beauty and skin care products thus
it has wide scope to diversify its business by introducing innovative and distinctive concepts.
Therefore to launch a new product firm is required to thoroughly identify and analyse its both
external and internal market environment factors that are likeable to posses threats and to provide
opportunities to the firm (Brinckmann, Grichnik and Kapsa, 2010). Mentioned below are certain
analysis that is requisite for firm to undertake:
Competitive advantage
Resources In order to develop a new product company make use of many materials. In
case of cosmetics on of the most important factor that induces brand image is the quality of
products and services. Thus, it is requisite for R Robson to identify and select sources that
besides been of high quality are readily available to the firm.
Planning is a central activity that assist firm in achieving high growth and development as
well as attain pre-defined goals within specified time frame. The process of planning starts with
measuring existing operation of company and determine what needs to be improved
operationally in the upcoming time period. With the help of growth planning, business owner
can track revenue and market growth while formulating effective business strategy. The chosen
organization for this report is R Robson (Guinot) which is UK based company primarily deals in
beauty treatment products (Barbour and Deakin, 2012) The given report covers key
consideration needed for massive expansion and future growth, developing business plan,
assessing different source of funding along with its key benefits and lastly ways top exist
business.
TASK 1
P1 Analysis of key considerations for evaluating growth opportunities & justify these in
organisational context
Growth in business forms critical factor for an organization to attain in order to maintain
sustainability and profits of the organisation. For this company together with its management
and workforce undertake planning for its long term growth objectives. This assists firm to
maximize its work efficiency, enhance its performance and to attain goals before or within
timelines. R Robson is a small enterprise in UK that deals in beauty and skin care products thus
it has wide scope to diversify its business by introducing innovative and distinctive concepts.
Therefore to launch a new product firm is required to thoroughly identify and analyse its both
external and internal market environment factors that are likeable to posses threats and to provide
opportunities to the firm (Brinckmann, Grichnik and Kapsa, 2010). Mentioned below are certain
analysis that is requisite for firm to undertake:
Competitive advantage
Resources In order to develop a new product company make use of many materials. In
case of cosmetics on of the most important factor that induces brand image is the quality of
products and services. Thus, it is requisite for R Robson to identify and select sources that
besides been of high quality are readily available to the firm.
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Capabilities: Capabilities being the potential of firm and its workforce that is to provide
it an edge over is competitors. With emergence trends in people of all age group to look
presentable there is wide scope and high level of competition in beauty and cosmetic industry.
Thus, it is essential for R Robson to continuously launch innovative and unique cosmetics
products that fulfil needs and desires of its target audience.
Core Competencies: It forms the unique selling proportion of a firm that differentiae
firms products with that of various other substitutes available in market. Core competencies
should involve factors that are significant and of utmost importance to attract its customers and
to satisfy their needs. Thus, it is critical for managers of R Robson to evaluate and introduce
innovative and improved cosmetics that could provide firm with an advantage over its rivals.
Porters-five-forces Model
For identifying and analysing factors that could prove to enhance core competencies of R
Robson company make use of Porter generic Strategy Model that is based on three components:
Cost Leadership: The major objective of this strategy is to get an edge over competitors
by providing quality products and services at competitive or lower prices (Porter’s Five Forces
of Competitive Position Analysis, 2018). Thus, R Robson tries to reduce some costs from each of
its functional areas or operations like getting raw material at lower price, increasing efficiency of
its distribution channels by maintaining smaller and efficient logistics and supply chain
management. Also it is important for managers to set size of production batch in such a way that
it is helpful for firm to reduce its manufacturing costs and to get customer satisfaction.
Differentiation: This strategy involves offering product or service that is quiet
distinctive and unique and is not provided by any competitor in the industry. In case of cosmetic
and beauty industry there is change in customers needs and demands on regular basis therefore
this serves as a great opportunity for R Robson to identify, analyse its clients aspirations and
launch products and services as per their needs to gain their loyalty.
Cost Focus: It involves firm to ficus their strategies on the target market which is less
vulnerable to availability of substitutes or where there is less competition so that firm could
attain above average ROI. Thus, managers of R Robson try to identify those segments that can
help firm to gain advantage over its competitors (Burton, 2010).
Differentiation Focus: Applying this strategy firm concentrate its focus on providing
unique products to niche market. Thus , R Robson ensures that it launches beauty products that is
it an edge over is competitors. With emergence trends in people of all age group to look
presentable there is wide scope and high level of competition in beauty and cosmetic industry.
Thus, it is essential for R Robson to continuously launch innovative and unique cosmetics
products that fulfil needs and desires of its target audience.
Core Competencies: It forms the unique selling proportion of a firm that differentiae
firms products with that of various other substitutes available in market. Core competencies
should involve factors that are significant and of utmost importance to attract its customers and
to satisfy their needs. Thus, it is critical for managers of R Robson to evaluate and introduce
innovative and improved cosmetics that could provide firm with an advantage over its rivals.
Porters-five-forces Model
For identifying and analysing factors that could prove to enhance core competencies of R
Robson company make use of Porter generic Strategy Model that is based on three components:
Cost Leadership: The major objective of this strategy is to get an edge over competitors
by providing quality products and services at competitive or lower prices (Porter’s Five Forces
of Competitive Position Analysis, 2018). Thus, R Robson tries to reduce some costs from each of
its functional areas or operations like getting raw material at lower price, increasing efficiency of
its distribution channels by maintaining smaller and efficient logistics and supply chain
management. Also it is important for managers to set size of production batch in such a way that
it is helpful for firm to reduce its manufacturing costs and to get customer satisfaction.
Differentiation: This strategy involves offering product or service that is quiet
distinctive and unique and is not provided by any competitor in the industry. In case of cosmetic
and beauty industry there is change in customers needs and demands on regular basis therefore
this serves as a great opportunity for R Robson to identify, analyse its clients aspirations and
launch products and services as per their needs to gain their loyalty.
Cost Focus: It involves firm to ficus their strategies on the target market which is less
vulnerable to availability of substitutes or where there is less competition so that firm could
attain above average ROI. Thus, managers of R Robson try to identify those segments that can
help firm to gain advantage over its competitors (Burton, 2010).
Differentiation Focus: Applying this strategy firm concentrate its focus on providing
unique products to niche market. Thus , R Robson ensures that it launches beauty products that is
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most advanced with unique features so that it can cater the demands of its clients and to build its
brand image as most innovative and trustable company.
PESTLE of R Robson (Guinot)
It involves analysis of R Robson's macro business environment that assist firm to analyse
various technological and other factors that can prove to be way of gaining opportunities and
avoid threats related to business:
Political Factor: These factors relates to the factors like political stability, various tax
policies, government regulations etc. that R Robson is required to be adhere by and follow in
order to successful diversify its operations in in different countries. Launching herbal products
will help firm to gain subsidies in nations like India where government promotes use of herbal
and organic products.
Economical Factors: It includes factors like income of people, inflation rate, etc that are
requisite for R Robson to consider prior launching its new products. It is because it will help firm
to identify it target audience, to ascertain its funds requirements and to find ways to reduce its
over all costs (Chapin, 2012). R Robson to introduce new product requires huge funds that are
likeable to posses threat to its sustainability and growth in case it product did not work out.
Social factor: It comprises factors like health consciousness, attitudes and beliefs of
people etc. R Robson being dealing in beauty and care industry requires to provide top and high
quality products to its customers that are skin friendly to them. It is important factor to be
consider as it directly influences brand image and consumers loyalty and trust. Frequent changes
in clients needs related to get innovative and herbal products tends to provide opportunities for R
Robson to enhance its growth.
Technological Factor: It involves factors like use of latest and advance techniques for
that could assist R Robson to shrink its cost of production, enhance quality of its products and to
generate higher profits. It also involves cost that is to be incur in training its employees to make
them efficient in handling new techno upgrades. This provides opportunities for R Robson to sell
and promote its new products and services by making use of online e-commerce websites and
shopping portals. It helps firm reach out wide target audience globally in cost effective manner
and in less time .
Legal Factors: In UK, there are various laws that determines the safety of beauty and
skin care products , setting standards to safeguard consumers . R Robson is thus required to
brand image as most innovative and trustable company.
PESTLE of R Robson (Guinot)
It involves analysis of R Robson's macro business environment that assist firm to analyse
various technological and other factors that can prove to be way of gaining opportunities and
avoid threats related to business:
Political Factor: These factors relates to the factors like political stability, various tax
policies, government regulations etc. that R Robson is required to be adhere by and follow in
order to successful diversify its operations in in different countries. Launching herbal products
will help firm to gain subsidies in nations like India where government promotes use of herbal
and organic products.
Economical Factors: It includes factors like income of people, inflation rate, etc that are
requisite for R Robson to consider prior launching its new products. It is because it will help firm
to identify it target audience, to ascertain its funds requirements and to find ways to reduce its
over all costs (Chapin, 2012). R Robson to introduce new product requires huge funds that are
likeable to posses threat to its sustainability and growth in case it product did not work out.
Social factor: It comprises factors like health consciousness, attitudes and beliefs of
people etc. R Robson being dealing in beauty and care industry requires to provide top and high
quality products to its customers that are skin friendly to them. It is important factor to be
consider as it directly influences brand image and consumers loyalty and trust. Frequent changes
in clients needs related to get innovative and herbal products tends to provide opportunities for R
Robson to enhance its growth.
Technological Factor: It involves factors like use of latest and advance techniques for
that could assist R Robson to shrink its cost of production, enhance quality of its products and to
generate higher profits. It also involves cost that is to be incur in training its employees to make
them efficient in handling new techno upgrades. This provides opportunities for R Robson to sell
and promote its new products and services by making use of online e-commerce websites and
shopping portals. It helps firm reach out wide target audience globally in cost effective manner
and in less time .
Legal Factors: In UK, there are various laws that determines the safety of beauty and
skin care products , setting standards to safeguard consumers . R Robson is thus required to

adhere by these laws where in company is requisite to label their products with list of all
ingredients that are used in product, its expiry and manufacturing dates, warning statements and
other precautionary instructions and information.
Environment factors: With gaining popularity of green consumerism and ethical issues
R Robson to get an edge is shifting its strategies to introduce herbal products. This will help
firm to get positive feedback from its consumers as today clients are concerned about probable
side effects of many artificial substances that are often used in cosmetics.
New product and service:
With emerging trend and customers awareness about the negative effects of various
artificial materials like paraben, petrochemicals and other toxins there is sudden shift towards
using herbal products. To gain advantage over its rivals and to expand its target business market
R Robson is to introduce herbal face creams that are made with natural ingredients and fruits
extracts (Christofakis and Papadaskalopoulos, 2011).
BCG Matrix: To ascertain its growth opportunities R Robson make use of BCG matrix
to review its product portfolio. It assist company to take important decision regarding whether to
invest in this project or to discontinue. Mentioned below are 4 quadrants that of BCG matrix: Dog: Cash consumption is low as there small pace of growth rate and market share. Question mark: Cash consumption is high as market share is low but growth rate is high. Star: Both market rate and growth rate is quiet high that lead to high cash generation Cash Cow: It comprises returns higher than market share. Thus, in comparison to inputs
profits are high.
GE Matrix: This matrix assists r Robson to analyse and measure its business portfolios
and also to set priorities as per distinct business divisions in a systematic way. Implementation of
this matrix helps company to ascertain one of the strategy the most profitable one out of grow,
hold and divest to adopt
Product Life Cycle: This techniques supports R Robson to introduce new product in the
market. It determines the time period over which new product is to be developed, launched into
the market and remove eventually from market. It comprises four stages for a product i.e.
introduction, growth, maturity and decline. It assists owners and top level management to take
decisions regarding various marketing strategies for each stage of product life cycle.
ingredients that are used in product, its expiry and manufacturing dates, warning statements and
other precautionary instructions and information.
Environment factors: With gaining popularity of green consumerism and ethical issues
R Robson to get an edge is shifting its strategies to introduce herbal products. This will help
firm to get positive feedback from its consumers as today clients are concerned about probable
side effects of many artificial substances that are often used in cosmetics.
New product and service:
With emerging trend and customers awareness about the negative effects of various
artificial materials like paraben, petrochemicals and other toxins there is sudden shift towards
using herbal products. To gain advantage over its rivals and to expand its target business market
R Robson is to introduce herbal face creams that are made with natural ingredients and fruits
extracts (Christofakis and Papadaskalopoulos, 2011).
BCG Matrix: To ascertain its growth opportunities R Robson make use of BCG matrix
to review its product portfolio. It assist company to take important decision regarding whether to
invest in this project or to discontinue. Mentioned below are 4 quadrants that of BCG matrix: Dog: Cash consumption is low as there small pace of growth rate and market share. Question mark: Cash consumption is high as market share is low but growth rate is high. Star: Both market rate and growth rate is quiet high that lead to high cash generation Cash Cow: It comprises returns higher than market share. Thus, in comparison to inputs
profits are high.
GE Matrix: This matrix assists r Robson to analyse and measure its business portfolios
and also to set priorities as per distinct business divisions in a systematic way. Implementation of
this matrix helps company to ascertain one of the strategy the most profitable one out of grow,
hold and divest to adopt
Product Life Cycle: This techniques supports R Robson to introduce new product in the
market. It determines the time period over which new product is to be developed, launched into
the market and remove eventually from market. It comprises four stages for a product i.e.
introduction, growth, maturity and decline. It assists owners and top level management to take
decisions regarding various marketing strategies for each stage of product life cycle.
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Diffusion of Innovation: This theory explains about how, why and at what pace
technological up gradation is taking place in a market. This theory comprises four elements that
impacts the diffusion of new and innovative ideas like communication channel, time , social
system etc. Different categories of adopters are also defines that comprises innovators, early
majority, early adopters, late majority and laggards.
Collaboration:
As R Robson is planning to introduce new product, one of the ways to get success is to
collaborate with leading competitors of same industry. Mentioned below are certain modes that
company could consider:
Modes Meaning Benefits Drawbacks
Mergers &
acquisitions
It is amalgamation of two or
more firms and their assets
through various financial and
legal formalities in where
ownership of companies are
transferred.
Already set up
business
operations
easy entry
Requires huge
investment'
Issues related
to integration
of home office
operations with
new firm
Joint ventures Under this, two or more firms
join hands to pool their
resources for accomplishing a
particular objective or
completion of a project
Helps in
enhancing
business
potential and
capacity
brings new
insight and
expertise
Undefined
goals
technological up gradation is taking place in a market. This theory comprises four elements that
impacts the diffusion of new and innovative ideas like communication channel, time , social
system etc. Different categories of adopters are also defines that comprises innovators, early
majority, early adopters, late majority and laggards.
Collaboration:
As R Robson is planning to introduce new product, one of the ways to get success is to
collaborate with leading competitors of same industry. Mentioned below are certain modes that
company could consider:
Modes Meaning Benefits Drawbacks
Mergers &
acquisitions
It is amalgamation of two or
more firms and their assets
through various financial and
legal formalities in where
ownership of companies are
transferred.
Already set up
business
operations
easy entry
Requires huge
investment'
Issues related
to integration
of home office
operations with
new firm
Joint ventures Under this, two or more firms
join hands to pool their
resources for accomplishing a
particular objective or
completion of a project
Helps in
enhancing
business
potential and
capacity
brings new
insight and
expertise
Undefined
goals
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P2 Evaluation of growth opportunities by applying Ansoff's growth matrix
Ansoff's growth vector matrix is a strategical planning tool which provide a framework
for formulating strategies to exploit future growth opportunities. This model help in analysing
various factors that help company in increasing their sales as well as revenue. R Robson want to
expand their business operations for which it is very essential for the manager to analyse the
market and prevailing trends in order to identify the demand of their potential customers. So,
Ansoff growth vector matrix is a tool which help manager is analysing the opportunities present
in market and in formulating various strategies and policies in order to expand business more
appropriately. Following are the strategic approach involve in this model which help R Robson
in expanding their business with best possible strategy which assist them in capturing larger
market share and in growing faster: Market development:- this alternative of Ansoff growth matrix concentrate on selling
existing product and services into new marketplace. There are various options for using
this strategy such as adding new channel of distribution, product dimension, focusing ion
geographical marketplace and creation of new market segment using differential pricing
strategy (Eddleston and et. al., 2013). This is riskier strategy for R Robson as they don't
know about the customer's need and want in addition to this company is also not aware
about the competitors strategies. Diversification:- This strategy involve higher risk as it includes launching of a new
product in new market place but it also has the potential to allow company to achieve
higher return over their investment. Market penetration:- This strategy of Ansoff growth matrix more concentrate on selling
product and services into an existing marketplace at relatively low prices in order to
capture larger market share. It includes less risk as compare to other strategies hence is
adopted by larger number of companies. This strategy emphases on increasing the
volume of sale as under this approach company is very much aware about the customers
demand and their buying behaviour.
Product development:- This approach includes the launching of new product in existing
market by bringing changes in various business operations and activities such as research
& development function. Product development strategy puts more emphases on bringing
Ansoff's growth vector matrix is a strategical planning tool which provide a framework
for formulating strategies to exploit future growth opportunities. This model help in analysing
various factors that help company in increasing their sales as well as revenue. R Robson want to
expand their business operations for which it is very essential for the manager to analyse the
market and prevailing trends in order to identify the demand of their potential customers. So,
Ansoff growth vector matrix is a tool which help manager is analysing the opportunities present
in market and in formulating various strategies and policies in order to expand business more
appropriately. Following are the strategic approach involve in this model which help R Robson
in expanding their business with best possible strategy which assist them in capturing larger
market share and in growing faster: Market development:- this alternative of Ansoff growth matrix concentrate on selling
existing product and services into new marketplace. There are various options for using
this strategy such as adding new channel of distribution, product dimension, focusing ion
geographical marketplace and creation of new market segment using differential pricing
strategy (Eddleston and et. al., 2013). This is riskier strategy for R Robson as they don't
know about the customer's need and want in addition to this company is also not aware
about the competitors strategies. Diversification:- This strategy involve higher risk as it includes launching of a new
product in new market place but it also has the potential to allow company to achieve
higher return over their investment. Market penetration:- This strategy of Ansoff growth matrix more concentrate on selling
product and services into an existing marketplace at relatively low prices in order to
capture larger market share. It includes less risk as compare to other strategies hence is
adopted by larger number of companies. This strategy emphases on increasing the
volume of sale as under this approach company is very much aware about the customers
demand and their buying behaviour.
Product development:- This approach includes the launching of new product in existing
market by bringing changes in various business operations and activities such as research
& development function. Product development strategy puts more emphases on bringing

internal competencies and capabilities for driving innovation in company's product and
services. This strategy is suitable for R Robson as they want to expand their business by
launching a new product (Grover, Bokalo and Greenway, 2014).
These all the strategies given by Igor Ansoff using which help a company in formulating
best possible strategy for expanding their business. Among all the above explained approaches
product development is best suitable strategy in case of R Robson as they want to expand their
business by launching a new product. With the increasing demand of beauty product company
want to launch new range of herbal organic face cream. So it is very beneficial for R Robson to
follow product development strategy by launch its new product range in existing market share
which in turn help in achieving market acceptances as existing customers prefer to purchase
product from their current brand rather than opting for new company's product.
TASK 2
P3 Different sources of funding along with it key advantages and disadvantages
R Robson (Guinot) is a small scale UK-based organization that primarily deals in selling
Beauty Treatment Products. For attaining higher growth and development, company wishes to
expand its business activities and capture high market share. Although it's credit rating is
relatively goods when compared to other competitors but still company keen for massive
expansion. In-fact, it raised an overdraft of £2.0 million from Bank but have never utilised it.
However for future expansion, adequate amount of funding is required which help firm in
carrying out business activities and operation smoothly. There are different sources of funding
available through which it can generate sufficient amount of money like bank loan, crowd
funding etc. Each one is having its own advantage & disadvantage which are discussed below
along with its brief description:-
Bank Loan: This is one of the most common and simplest form of loan capital for a
business. In general, it means sum of money borrowed by business or customer from a bank to
fulfil its specific purpose such as expansion of business, buying something etc. It is the easiest
way to avail funding (Hough and et. al., 2010). These loans provide certain tax breaks as well as
lower interest rate as compared to other sources of funding like overdraft. At the time of
repaying, client is liable to repay it along with interest amount as well. The amount of interest is
decided by bank and customers are bound to pay it.
services. This strategy is suitable for R Robson as they want to expand their business by
launching a new product (Grover, Bokalo and Greenway, 2014).
These all the strategies given by Igor Ansoff using which help a company in formulating
best possible strategy for expanding their business. Among all the above explained approaches
product development is best suitable strategy in case of R Robson as they want to expand their
business by launching a new product. With the increasing demand of beauty product company
want to launch new range of herbal organic face cream. So it is very beneficial for R Robson to
follow product development strategy by launch its new product range in existing market share
which in turn help in achieving market acceptances as existing customers prefer to purchase
product from their current brand rather than opting for new company's product.
TASK 2
P3 Different sources of funding along with it key advantages and disadvantages
R Robson (Guinot) is a small scale UK-based organization that primarily deals in selling
Beauty Treatment Products. For attaining higher growth and development, company wishes to
expand its business activities and capture high market share. Although it's credit rating is
relatively goods when compared to other competitors but still company keen for massive
expansion. In-fact, it raised an overdraft of £2.0 million from Bank but have never utilised it.
However for future expansion, adequate amount of funding is required which help firm in
carrying out business activities and operation smoothly. There are different sources of funding
available through which it can generate sufficient amount of money like bank loan, crowd
funding etc. Each one is having its own advantage & disadvantage which are discussed below
along with its brief description:-
Bank Loan: This is one of the most common and simplest form of loan capital for a
business. In general, it means sum of money borrowed by business or customer from a bank to
fulfil its specific purpose such as expansion of business, buying something etc. It is the easiest
way to avail funding (Hough and et. al., 2010). These loans provide certain tax breaks as well as
lower interest rate as compared to other sources of funding like overdraft. At the time of
repaying, client is liable to repay it along with interest amount as well. The amount of interest is
decided by bank and customers are bound to pay it.
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Advantages With bank loan, client only need to worry making payments
on time. This come out as great advantage over overdraft
where customer is bound to pay full amount when bank
demands it, no matter whether he/she is having availability
of funds or not.
Another main advantage is, it is cost effective method
through which any customer or client can raise finance at
comparatively lower rate or interest. With this, it definitely
help clients in saving their some proportion of money (Ziari
and et. al., 2012)
It can be easily procured as bank provide depending upon
the credit rating of the company.
Disadvantages Bank wants some collateral security against the loan raised
by clients. Without any assets or security bank will not
provide loan to its clients.
Loan borrowers needs to make periodic payments to banks.
If somehow they fail to make payments on time, than in that
situation bank has the authority to seize client's assets. It
negatively impacts customer's credit score.
Crowd Funding: It this, adequate funds are raised in small amount of money from large group of
people and that too with the help of internet. Crowdfunding is a form of alternative finance and
sourcing. Usually under this type of sources, amount of capital is raised to finance a new
business venture (Keough, 2015). It makes use of vast network of people through social media
website or crowdfunding websites to bring entrepreneur and investors together. Basically it serve
as a great opportunity for entrepreneurs in terms of raising millions of dollars from anyone with
money to invest.
Advantages It is an quickest way to raise capital with no upfront fees.
Pitching can be done in an appropriate manner mainly
on time. This come out as great advantage over overdraft
where customer is bound to pay full amount when bank
demands it, no matter whether he/she is having availability
of funds or not.
Another main advantage is, it is cost effective method
through which any customer or client can raise finance at
comparatively lower rate or interest. With this, it definitely
help clients in saving their some proportion of money (Ziari
and et. al., 2012)
It can be easily procured as bank provide depending upon
the credit rating of the company.
Disadvantages Bank wants some collateral security against the loan raised
by clients. Without any assets or security bank will not
provide loan to its clients.
Loan borrowers needs to make periodic payments to banks.
If somehow they fail to make payments on time, than in that
situation bank has the authority to seize client's assets. It
negatively impacts customer's credit score.
Crowd Funding: It this, adequate funds are raised in small amount of money from large group of
people and that too with the help of internet. Crowdfunding is a form of alternative finance and
sourcing. Usually under this type of sources, amount of capital is raised to finance a new
business venture (Keough, 2015). It makes use of vast network of people through social media
website or crowdfunding websites to bring entrepreneur and investors together. Basically it serve
as a great opportunity for entrepreneurs in terms of raising millions of dollars from anyone with
money to invest.
Advantages It is an quickest way to raise capital with no upfront fees.
Pitching can be done in an appropriate manner mainly
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through online platform through large number of clients and
investors can be attracted.
Another main advantage of this method is it provides
valuable feedbacks of customers. Not only feedbacks it also
provide additional information regarding flaws or gaps,
request modification or customization etc.
Disadvantages It's a little complex procedure as lot of work needs to be
done before pitching investors. Depending upon the amount
of money that client is willing to raise, preparation are done
accordingly.
High possibility of stealing of business idea with a
copyright or patent. There is no secrecy with under this
source of funding.
Peer to peer lending: Under this method, amount of capital can be raised without the use of an
official banking institutions. Peer to peer lending means eliminates the middleman or
intermediary from the process but it also includes more efforts, time and risk than other general
lending scenario(Li, Mobin and Keyser, 2016). It is a platform which connect borrowers to
investors with attractive rate of interest. On the basis of credit rating, loans are given to clients or
borrowers.
Advantages All the resources & contents are shared equally by all peers
which means all are having equal access on given resources.
Elimination of third party makes the process of borrowing
easy and quick.
This method is little inexpensive as compared to other
source of funding.
Disadvantages The main drawback of this funding source is it provide very
less information regarding both investors and borrowers.
It can adversely impact credit rating of business as well as
investors can be attracted.
Another main advantage of this method is it provides
valuable feedbacks of customers. Not only feedbacks it also
provide additional information regarding flaws or gaps,
request modification or customization etc.
Disadvantages It's a little complex procedure as lot of work needs to be
done before pitching investors. Depending upon the amount
of money that client is willing to raise, preparation are done
accordingly.
High possibility of stealing of business idea with a
copyright or patent. There is no secrecy with under this
source of funding.
Peer to peer lending: Under this method, amount of capital can be raised without the use of an
official banking institutions. Peer to peer lending means eliminates the middleman or
intermediary from the process but it also includes more efforts, time and risk than other general
lending scenario(Li, Mobin and Keyser, 2016). It is a platform which connect borrowers to
investors with attractive rate of interest. On the basis of credit rating, loans are given to clients or
borrowers.
Advantages All the resources & contents are shared equally by all peers
which means all are having equal access on given resources.
Elimination of third party makes the process of borrowing
easy and quick.
This method is little inexpensive as compared to other
source of funding.
Disadvantages The main drawback of this funding source is it provide very
less information regarding both investors and borrowers.
It can adversely impact credit rating of business as well as

clients.
TASK 3
P4 Designing business plan for growth of organisation
Business plan is a business document that is prepared by managers of R Robson for
ascertaining their future course of action to accomplish its objective and aims. It involves detail
analysis of resources required i.e. human, physical and financial, estimated time and rtechniques
that are to be taken into consideration for attaining set targets. Mentioned below is the business
plan for R Robson (MacLeod, 2013).
Business plan of R Robson for launching herbal face cream is mentioned under-
Vision & Mission:
Vision – R Robson works with the vision to cater needs of each and every age group and to
promote its brand as qualitative and skin friendly
Mission: Mission of R Robson is to get established as most prestigious and trusted cosmetics
brand around the globe.
Objectives strategies costs:
Strategic objectives: Objective of R Robson is to gain 20% increase in sales volume by
launching herbal face cream with natural ingredients and fruit extracts within December, 2019.
Internal analysis
SWOT
Strengths Weaknesses
Collaboration with established market
leaders.
High quality and herbal products
Huge investment in R&D and to launch
herbal products is a costly affair that
requires huge funds
Opportunities Threats
Diversification of business in
developing economies like India
Demand for herbal and organic
cosmetics
Intense competition in cosmetic and
beauty and skin care industry which is
dynamic
TASK 3
P4 Designing business plan for growth of organisation
Business plan is a business document that is prepared by managers of R Robson for
ascertaining their future course of action to accomplish its objective and aims. It involves detail
analysis of resources required i.e. human, physical and financial, estimated time and rtechniques
that are to be taken into consideration for attaining set targets. Mentioned below is the business
plan for R Robson (MacLeod, 2013).
Business plan of R Robson for launching herbal face cream is mentioned under-
Vision & Mission:
Vision – R Robson works with the vision to cater needs of each and every age group and to
promote its brand as qualitative and skin friendly
Mission: Mission of R Robson is to get established as most prestigious and trusted cosmetics
brand around the globe.
Objectives strategies costs:
Strategic objectives: Objective of R Robson is to gain 20% increase in sales volume by
launching herbal face cream with natural ingredients and fruit extracts within December, 2019.
Internal analysis
SWOT
Strengths Weaknesses
Collaboration with established market
leaders.
High quality and herbal products
Huge investment in R&D and to launch
herbal products is a costly affair that
requires huge funds
Opportunities Threats
Diversification of business in
developing economies like India
Demand for herbal and organic
cosmetics
Intense competition in cosmetic and
beauty and skin care industry which is
dynamic
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