R.L. Maynard Ltd: Business Plan for Planning and Growth Strategies

This report examines the planning for growth of R.L. Maynard Limited, a construction company operating primarily in the UK, focusing on a project bid valued at £300,000. It delves into the importance of effective planning for SMEs, highlighting the challenges of funding and financial support. The report employs Porter's generic strategies (cost leadership, differentiation, cost focus, and differentiation focus) and PEST analysis (political, economic, social, technological, legal, and environmental factors) to assess the business environment and formulate growth strategies. Ansoff's growth matrix (market penetration, market development, product development, and diversification) is applied to identify market opportunities and guide expansion. Furthermore, the report explores various funding sources, including internal (sale of assets, reduction of working capital) and external options (bank loans, equity share capital, etc.), to ensure financial stability for the company's growth initiatives. The report provides a comprehensive business plan for R.L. Maynard Ltd, outlining the strategies and financial considerations necessary for sustainable growth and development.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1............................................................................................................................................1
P2............................................................................................................................................4
TASK 2............................................................................................................................................6
P3............................................................................................................................................6
TASK 3............................................................................................................................................8
P4: ..........................................................................................................................................8
TASK 4............................................................................................................................................9
P5............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning is a very important part for overall growth as well as development of the
organisation. Planning is mandatory, be it small or big organisation, without a effective planning,
the aims as well as objectives that an organisation wants to achieve may not be fulfilled. R.L
Maynard Limited is a construction company, majorly operates in UK and nearby countries, the
company is engaged in the business of providing construction services to its clients, in the form
of executing Construction contracts. The company is planning to bid for a construction project
with a value of around 3,00,000 Pound, out of which company will be incurring 20,000 pound
out of its cash reserves. The current report will try to throw some light on the the workings of
SME and how effective planning and procedure can lead to better growth. A systematic Business
Plan will be made for the same, that will lead to development of business opportunities for the
organisation.
TASK 1
P1
There are various aspects that needs to be considered for the purpose of making a growth
plan. The company has been growing substantial and therefore the management of the
organisation has been able to see a need for proper plan that will take the firm to a path of growth
and development.
It has been observed that the main reason behind inefficient growth of SME sector within
UK is lack of Funds and financial support. Thus for effectively managing their business, they
have to come up with right kind of planning of various factors that do have a direct impact on the
overall working of the organisation in longer run (Barnett, 2017).
Porter's generic strategy:
Porter's generic strategy describes that how a company can achieve competitive
advantage within the marketplace. Porter describes four kinds of strategies that can be used by
companies of all sizes to achieve a competitive edge over rivalry and for formulating strategies
to expand their business over period of time. It is considered as an effective analytical tool which
can help an organisation in implementing suitable plans and strategies in order to achieve
competitive advantage in market. Porter Generic strategy consists of fours types which are
described in brief as under:

 Cost Leadership: Under this kind of strategy the organisation will try to capture market
share through offering services at a price which is quite competitive than other players.
This can be achieved by reducing the cost of providing construction services and
achieving cost efficiency in the longer run. Differentiation: The differentiation strategy means the company will have a different and
unique product or service then its competitors, which will make the organisation's
reputation in the market over longer period of time. In order to achieve differentiation, an
organisation will have to incur heavy expenditure on market research and innovation to
deliver high quality products or services over period of time (Blackburn, Hart and
Wainwright, 2013). Cost Focus: Under this, the organisation will try to focus on its cost structure and will
aim at providing services at an affordable prices to clients. The focus of management
under this kind of strategy is on cost and this can enhance the growth of business over
period of time. An organisation can achieve huge success in the particular segment if the
managers have sufficient knowledge about the market fluctuations and needs of targeted
people.
 Differentiation Focus: Under this strategy, The management of R.L Maynard Limited
will try to focus on niche market along with maintaining cost competitiveness and
uniqueness in products as well as services. This strategy requires that there should be
brand loyalty of firm within clients. Then only client will give orders to the company,
because the expenses on marketing can not be much by the organisation as it have to keep
its cost at low level for achieving cost efficiency in an effective way (Denton, Forsyth
and MacLennan, 2017).
The company can choose the cost differentiation strategy while delivering effective
services to its customers like providing material that is going to be used in the construction.
contract will be provided by the company to its clients at very affordable prices that will make
the organisation competitive enough against its competitors in an efficient way.
PEST analysis: -
It is used by various companies to identify factors that can affect the business and the
environment of the market where the business is running. It include political, economical, social,

technological, legal and environmental factors. R.L. Maynard Ltd. can use this analysis to
determine the factors that can affect the business and its performance. Political: It refers to the political situation that is prevailing in the region within which
the company operates. The policies framed by the government with regard to
construction industry and Steps taken to promote SME investments comes under the
analysis of this factor. R.L Maynard Ltd. Is consistently bidding on various government
projects, and the current 3,00,000 Pound project is also belongs to the infrastructural
development and hence it is necessary that political stabilisation is there to achieve higher
market share. Economical: It refers to the economic situation of the country, if the same is not in a
better state then it will translate in the project sanctions and bidding process of the
government. Lower spending on infrastructure would result in lesser contracts and thus it
will affect almost all the companies working within the sector. Thus R.L. Maynard Ltd.
Shall analyse these factors in an efficient manner, in order to frame a effective policy for
the growth as well as development of the business in longer run. R.L. Maynard Ltd will
benefit in a huge way if there is a substantial growth in the economic position of a
country, R.L. Maynard Ltd, being a subsidiary, will be able to raise necessary funds with
ease that is beneficial for the organisation in future (Fahlvik, Elfving and Wikström,
2014). Social: The Social Structure of a nation is also a very crucial factor that can decide the
level of growth that can be achieved in the business. This factor includes the geographical
distribution of the masses, growth as well as demand of people, The distribution of
income etc. It has a direct impact on the growth of business. Thus it is essential to make
sure that various kinds of factors that do affect business is taken care of by the
management of the organisation for framing effective policies over period of time.
 Technological: The technological aspect refers to the advancement that a country has in
terms of its technology. If the company will be having right kind of Technological
policies then this will lead to better growth as well as development of the business and it
will help organisation in winning the bidding process. R.L. Maynard Ltd. shall make sure
that effective and latest Technology are being used in the production of service which

will not only ensure higher market share but also a competitive advantage can be
maintained over period of time (Gatukui and Katuse, 2014).
P2
R.L. Maynard Ltd. is looking for a suitable technique that can help them to grow and
expand the business. Ansoff's growth matrix is the best technique for the company to get the
right results. It can guide the company to the right direction. There are various methods and
technologies available in the market to run the business activities smoothly. The main
requirement of a company is to grow and to generate maximum profits.
SME's have desire to reach a particular level of growth that helps them to acquire more
and more customers.
Ansoff's growth vector matrix: It is the most reliable technique that can be used by the
managers of R.L. Maynard Ltd., because it can provide the exact information those market where
company can expand its business. This matrix refers to the identification of various target
marketplaces and opportunities for growth and expansion. It includes four strategies, that are as
follows:

 Market penetration: It is the first growth strategy that an organisation can implement to
grow its business in existing market with current products. This will cost less and help to
acquire more and more customers, because marketers already have the knowledge of
market and customer perception. R.L. Maynard Ltd. can use this strategy to attract more
and more customers by providing best products (Huang and Zhang, 2014).
 Market development: This strategy refers to the sales of existing products in new
market. It requires a lot of research, because if the product is introduced with poor
research it can make loss for the company. R.L. Maynard Ltd. can implement this
strategy to sell its existing goods in targeted market where it can attract new customers
and retain them by providing best quality goods.
 Product development: It means to launch a new product in existing market. This is very
beneficial for R.L. Maynard Ltd., because the marketers already have the idea of market
demand and with a good market image the company can introduce a new product in
existing market to attract prospect customers (Lewis, 2013).
 Diversification: It refers to the introduction of a new product in a new market. The
managers of R.L. Maynard Ltd. have to conduct a proper research to implement this
strategy. The cost of this type of launch of new products is very high because the
company do not have the idea of the customers and have to spend huge money for
promotions and marketing.
For RL Maynard, diversification strategy is more beneficial to adopt for introducing their
new product in the market. By entering into contract, the firm has large number of opportunities
to provide their services and products to new customers. Through this contract, company can
achieve their desired organisational goals in the UK market. Through the diversification strategy,
Company can introduce their new product in a new market for capturing more market share and
new customers. When the customers and market share of the firm will increase, then the number
of sales and revenue will also increase which will automatically help the firm in gaining an
competitive advantage in the market.
TASK 2
P3.
For effectively managing the business, it is of paramount importance that funds are being
arranged from the right sources so that a fine balance between the cost of capital and the return

available from the amount invested. R.L Maynard Ltd. Will invest around £20,000 Pound in
investing through a bid in a government project. The Estimated Cost of Project will turn out
around £3,00,000, So the rest of the amount has to be raised by company from the alternative
source of funding that are being available. The various sources through which funds can be
raised are as follows:
Internal Sources: These are the sources, that are being generated from within the
organisation itself. The example of such kind of resources can be sale of asset, reduction of
working capital as well as a reduction in retained earnings like reserves etc. for the purpose of
fuelling growth and expansion of business in an effective manner (Mason, 2015).
External Sources: It refers to raising funds from external sources, there are various kinds
of options in external sources like raising of funds from equity share capital, debentures, leasing,
Crowd funding etc.
There advantages as well as disadvantages of various sources of funding, which are being
discussed as follows:
Bank Loan: Under this, the RL Maynard will approach a bank for the purpose of funding
and after looking at the company's financial situation and taking necessary collateral security, the
bank will issue a loan amount to the company based on their requirements in an efficient manner.
The rate of interest on which loan is disbursed vary from time to time. Usually loan is disbursed
at fluctuating rate of interest, however it can have issued at fixed rate of interest depending upon
the needs of customers. Advantages: The main advantage is that the funds are available with ease and not much
formalities are involved. Disadvantages: Unlike Equity Funding, In Debt Funding there is a burden on company
of the funds that are being raised and thus it is quite essential to make sure that debt are
taken in limit and not beyond the repayment capacity of the organisation (Moseley,
2013).
Overdraft: It is also an arrangement that is being made available by bank for the purpose
of fulfilling the short term funds requirement of the businesses. For example, Working Capital
need of R.L Maynard Ltd. can be effectively fulfilled through Overdraft facilities that are
available. Through this over draft, R.L. Maynard can acquire funds for their short term goals fo
meeting them in an efficient manner.

 Advantage: The funds can be available easily without any hassles and is very beneficial
for meeting the short term funds requirement of the organisation. Disadvantage: The rate of interest on overdraft is high along with high arrangement fees.
Crowdfunding: Under this method, the funds are taken from large number of people,
instead of taking the same from small individuals. Crowdfunding are usually taken from online
sources in the form of donations or subscriptions within the company. Through the
crowdfunding, R.L. Maynard can generate money from a large number of people. When these
people contribute less money but due to high number of funders, company can generate huge
amount of money. Advantage: The primary advantage of the same is, because crowdfunding is usually done
from online sources, the company is able generate brand awareness and media attention
can also be gained (Unit, 2015).
 Disadvantage: The organisation has to ignite the general interest of people, in order to
raise the interest of people within their project and to raise funds efficiently.
With various methods to acquire funding, it is imperative for the company to effectively
analyse each source to opt the most appropriate approach for its business. For crowdfunding, it is
uncertain that interest of wide range of customers is generated in ways that they could provide
effective funding to the business despite of reaching out to a large group of customers. Where
Overdraft is concerned, the interest rates are very high that would cause a major burden on the
firm to keep a smooth pace in its operations. The most appropriate funding type is hence, Bank
Loans. This is because if R.L. Maynard acquires funding within its repayment capacity, it would
effectively be easier for the firm to operate and to repay the loan amount without much pressure.
Various internal and external sources of funds are there which can be use by the R.L. Maynard to
collect funds to carry out business activities. Internal sources of funds such as retained earnings
and profits are best for company as company do not require to pay any additional amount to
other parties in form of interest and dividend.
TASK 3
P4:
Business plan is written documentation which contains relevant information about the
goals and objectives that to be achieve by company in future period of time. It requires
maximum efforts from each departments of an organisation so that it can be achieved within

pre-determined time period. RL Maynard is small-medium sized company of UK which is
engaged in construction business. To achieve growth and expansion in competitive market, RL
Maynard prepare a business plan which includes information related with mission, vision,
objectives and other importance aspects. Such information directs management to make an
effective decisions and suitable plans to execute business activities in more effective and
efficient manner. For example, attracting investors through making decisions of providing them
maximum rate of return. Therefore, business plan is necessarily required to prepare which are
further understood under the below:
Vision: Vision statement of RL Maynard states “ to be preferred contractor of choice. A
company that our customers want to work with and our employees are proud to work for”.
Mission: Mission statement of RL Maynard states that “ to maintain the highest levels
of professionalism, integrity, honesty and fairness in relationship with the suppliers,
shareholders and customers”.
Strategical objectives: The main objective of RL Maynard is to expand its business to
large scale operations in future period of time which can be possible through fulling the demand
of the targeted clients by providing them services according to their preferences and
requirements within minimum time period. The desired objective can be achieve through
SMART objective which communicates that goals must be specific, achievable, measurable,
realistic and time bound.
Financial information: Financial stability is essential for an organisation to sustain in
competitive market for longer period of time. For this, management are held liable to maintain
financial stability through raising funds from various sources such as internal as well as external
sources. Before deciding to expand its business operations to large scale operations, the
management of RL Maynard need to prepare budget plan which shows the requirements of
funds needed to be invested in business operations. Such statement contains the information
regarding the expenses that will be incurred in execution of different business functions such as
marketing, training, promotional activities, implementation of advanced technology etc.
Total forecasted budget

With the help of budget mentioned above, it provides an idea to RL Maynard regarding
requirements of funds so that it can raised accordingly.
Cash flow statement

From the above shown cash flow statement, it can be said that the RL Maynard has the enough
reserved cash in order to pay their pending debts. RL Maynard should pay their tax and debts
which are changing with the year. RL Maynard has in hand cash of $102203 in year 2015,
$200354 in 2016, $238503 in 2017. The average income of the firm is anticipated as $72001 for
a time period of 3 years.
TASK 4
P5
There are various ways that RL Maynard can either exit market or succeed its business for longer
period of time. The management are held liable to make decision after identifying the company's
financial situation at present which can be possible through analysing financial statements of
company of previous years (Ward, 2016).
Various ways to exit business
Winding up: It is the process of dissolving business which can be done through selling
of assets of company in exchange of paying all liabilities and debts. Remaining amount will be
distributed among the shareholders of company.
Merits:
 The debt liabilities of company is written off due to having insufficiency of funds with
owners thus it gives an escape route from this “no win” scenario. Owner get free from all legal actions made against the firm while liquidation of business.
Demerits:
The disadvantage is that company has lost their efficient employees. In addition with this,
the process of winding up includes various legal procedures which took more time.
Sell the business in open market: It is ongoing process in which an owner is willing to
continue its business activities rather winding up the business. In this, owner have option to sell
its business to some other entrepreneur in exchange of certain amount of money (Business Exit
and Succession Planning, 2018).
Merits:
 Less time consuming as compared to other business exit options. The goodwill of the company remain exist which enable business to earn stable sales
volume.

Demerits:
 Receiving amount in exchange of selling business is much lower than the actual cost of
business invested in it.
It is much difficult for owner to adopt suitable promotional plans in rephrasing the
company's image in the competitive market.
Out of the two options, the most appropriate option for R.L. Maynard is selling its
business in the open market. This is because in winding up, the firm would receive no money
and thus, it would be difficult for the owners to start a new business or invest in a suitable plan in
future. Whereas selling is concerned, the owners would receive at least some amount that would
increase the opportunities for investment and the goodwill would be helpful for the firm to
market its new ventures.
Ways of succession:
Merger and acquisition: It is considered as an appropriate and one of the best way of
increasing brand value and product portfolio in competitive market. Under this, two continued
business merge together to expand its business operations on large scale so as to achieve huge
customer strength and capture large market share (Business Exit and Succession Planning, 2018).
Merits:
It provides an opportunity to company to enhance quality of their products and services
through having skilled and knowledgeable employees of both merge companies.
Demerits:
The chances of monopoly of one product increase that leads to emergence of conflicts
between management of companies (Whelpton, Campbell and Patterson, 2015).
It is imperative that the firm evaluates this option before opting it out. The most effective
aspect of merger and acquisition is that it would allow the company to access the resources of the
merged organisation. This option is rarely available in any other option. Moreover, there are
wide chances of reduction of conflicts if the firm divides its tasks and resources efficiently while
setting up the activities and production on priority basis.
CONCLUSION
From the above analysis it has been summarised that an organisation can continue to
survive in competitive market for longer duration if they have an effective management who are
more knowledgeable and capable to frame suitable plans and strategies. Small-medium size

organisation always try to expand its business operations to a large scale which can be possible
through developing business plans containing aims and objectives that a company need to
achieve. Financial stability is also very much important to expand business which can be
possible through raising funds from different sources such as bank loans and crowd funding etc.
The management should also focus on financial statements of company which directs them to
decide whether to continue business or exit the market.

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Online
Business Exit and Succession Planning. 2018. [Online]. Available through:
<https://www.ldb.com.au/our-services/business-exit-succession-planning>.