Unit 42: Planning for Growth - Business Development Report Analysis

This report provides a comprehensive analysis of growth strategies for businesses, focusing on Checkout.com as a case study. It begins with an evaluation of growth opportunities using the Ansoff's growth matrix and other models like the Boston Consulting Group matrix and McKinsey Matrix, assessing market attractiveness and competitive strength. The report then delves into various funding sources, including crowd-funding, angel investors, and bank loans, evaluating their strengths and weaknesses. A detailed business plan is presented, including financial planning and strategic objectives. Finally, the report examines exit and succession strategies for small businesses, concluding with a summary of key findings and recommendations. The report highlights factors influencing growth, such as market demand, competition, and innovation, offering valuable insights for businesses seeking to expand and secure funding.

UNIT 42: PLANNING FOR
GROWTH

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Evaluation of growth opportunities.............................................................................................3
LO 2.................................................................................................................................................8
Various sources of funding..........................................................................................................8
LO 3.................................................................................................................................................9
Business plan...............................................................................................................................9
LO 4...............................................................................................................................................13
Exit strategy...............................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Every organisation indulges in the activity of analysing the growth opportunities and
planning for the growth strategies that can be adopted in order to provide diversified and well
evaluated growth strategies. The adequate planning helps in making correct decisions that help in
the increase in the overall success of the strategies thus implemented. Checout.com is an online
website that deals and provides solutions related to online payments in the international market.
This is developed 100% on the digital platforms only and operates through that platform only.
The company helps in deriving the solutions related to payment issues and also facilitates overall
electronic exchange of funds especially between two different countries providing an extremely
secured gateway. The current report will evaluate the different considerations that organisation
must take into context before the evaluation of the growth opportunities that are available in the
organisation. The report will further analyse the different growth opportunities that are available
for the company using the Ansoff’s growth matrix and further the different sources of funds that
are available to the companies will also be analysed critically. The different strengths and
drawbacks of these options will be evaluated to select the best funding option for Ckeckout.com.
the report will further present a comprehensive business plan that will develop a financial plan
as well and formulate strategic objectives which the company should take in order to scale up the
business overall. Lastly, different exit as well as succession strategies that the small businesses
can adopt will be critically analysed through its strengths and weaknesses. Lastly, a
comprehensive conclusion summarising key points will be presented in the report.
LO 1
Evaluation of growth opportunities
Growth is defined as
enhancing the potential
capabilities of the
organisation to improve the
business objectives. Growth
is more like enhancing the
capabilities of the company
to earn profits. Different
Stars
Stars are the brand considers
high profitability and growth
rate in target market. These
brands attract huge investment
in market. Company’s part of
this sector is in huge demand
and profitability. Stars the
Industry attractiveness
Industry
attractiveness project
different elements that
contribute in generating
growth of the industry in
market. Factors like a
effective growth rate, huge

methods can be channelizes
to ascertain the growth
opportunities available in
market. Models like Boston
consultancy group matrix,
Ansoff growth matrix,
McKinsey Matrix can be
used to analysis about the
growth options available for
the organisation in market.
Checkout.com is planning to
use the Boston consultancy
group matrix, mackinsey
matrix and ansoff growth
matrix to identify about
various growth options
available for the organisation
in market. All these models
allow organisation to
evaluate different aspects of
the market that can provide
growth to the company.
Boston consultancy group
matrix
Boston consultancy group
matrix is a model used to
analysis the growth
opportunities available for
the organisation in market.
This matrix project the
strategic position
name itself denote that growth
rate of these brands are very
attractive and attract so many
investors to invest in the
company (Holzmann, 2018).
These brands consider huge
product demand in market.
Continuous improvement of
products is a part of the brand
as s strategy to sustain te
product demand. These brands
perform very effectively in
order to meet up different
requirements of the customers
in market. These brands carry
an impressive presence in
market. These brands also
have a huge customer trust that
allow them to boost the
growth.
Question mark
Question mark is also a
part of the Boston Consultancy
Group Matrix. The brands part
of this category considers
losses. The market share of
these brands is minimum.
These brands hold the low
market share even in the
fastest growing market. These
brands need to take immediate
demand, financial
consultancy are the key
elements associated with the
industry check out. Com is a
part off. All these factors
allow the organisation to
entertain growth in market.
Industry attractiveness is an
element that involves what
are the key features of the
industry in which
organisation are currently
operating its business.
Change in demand: The
financial sector is not
associated with plenty of
modification as a part of
innovation. The industry has
a limited scope of changes
due to its product segment.
New services can be
launched with the support of
creative mindset. The sector
is currently growing in the
market due to healthy
demand (Akron, Demir and
Taussig, 2020). As the
United Kingdom considers
an effective per capita
income which has supported
the organisation in enhancing

organisation has achieved in
the market. On the basis of
the different standards like
market demand, market
share, presence in business
environment sector and
organisation is projected in
different categories. There
are four categories and the
four matrixes are used in this
model that involves dogs,
cash cows, stars and question
mark. This matrix guide the
company to identify what is
the position of organisation
in market and also where
they stand. Different
elements and factors
influence the market
presence of company in
market.
Dogs
Dogs are the brand involve in
the Boston Consultancy
Group Matrix hold low
market share. The growth
rate of the brand cover in this
category is also low in
market. The demand of the
brand is also limited in nature
(Goriely and et.al., 2019).
decisions to entertain growth
in market. Self evaluation
needs to be done for these
brands to entertain growth in
market.
Check out.com is a
brand hold a good market
share and can be stated that the
brand is a part of star category
as per the Boston consultancy
group matrix.
McKinsey Matrix
McKinsey Matrix is another
growth evaluation model. This
is a model that project
different approaches that can
the growth in market. Not too
many changes can be
monitored in the product
demand of the sector.
Seasonability: The financial
market is not a seasonable
market. The demand of the
products in the sector
remains valuable for all the
time in year. This market do
not depends upon specific
season. This is a crucial
aspect of the financial market
as it generate demands all the
time. Any part of the
financial year peoples
requires financial assistant to
enhance the capital.
Industry profitability:
Profitability of the industry is
high. Financial sector
consider huge demand of the
product. Profitability
immensely depends upon the
demand factor. If the product
offer by organisation is
consider huge demand the
sector also generates huge
profitability in market
(Cartier, 2017). The
Checkout.com is a part of

These brands require plenty
of changes to be
implemented in order to
achieve the growth potential
of the brand in market. These
brands have not much scope
to entertain growth in market.
In long run some of the
brands may consider growth
possibility by entertaining
some significant changes in
the organisation related to its
products and services. The
demand is minimum in
market. Products of company
can be modified and upgrade
in term of quality. Many
brands consider low market
demand and sales turnover
are a part of this brand
category.
Cash cows
Cash cows is the brand
consider huge profits in
market. All such brands
cover in this category is a
part of high profit segment.
These organisations are run
under profits. These
organisations carry the
growth potential if they get
support the decision making of
organisation in order to
enhance the growth of the
business. Growth of the
organisation and brands are
depends upon various factors
like competition in market,
brand value, product demand
and various other elements.
Competitive strength of
business unit
Check out.com is a small
scale business enterprises
based in United Kingdom. The
organisation is involved in
catering financial services to
its client. The market is among
the growing market part of the
business environment. The
organisation delivers its
services at the affordable price
range which can also be
projected as the competitive
strength of the organisation.
The price range of the
company is well affordable in
nature which allows the
organisation to entertain
growth in market. Due to price
affordability the brand
consider good demand in
financial sector so the
company has always
generated the effective
profitability due to effective
products demand in market.
People belong to huge
economic group always
approached organisation for
the financial advices.
The above mentioned
factors have project about
different elements related to
the industry and the
organisation that influence
the growth of the company.
The factors denote about all
different elements that can
support the growth of the
company in target market.
Growth of the organisation is
immensely influenced with
all the above factors.

proper investment in market.
As per the Boston
consultancy group matrix
organisations must not
investment in these brands
part of a cash cows category.
Investors not interested in
much investment for these
brands. Only the investment
that is needed to get them
survives in market are the
investments they get. These
brands get the demand in
market (Sualehkhattak and
Hussain, 2017). They run in
profits but the growth rate of
these brands are not
impressive. These brad scan
invest in product
development activities to
enhance the profits. With the
support of product
development initiative these
brands can enhance the
growth in market. Innovation
can also an effective tool
these brands can channelize
to entertain growth in market.
market.

LO 2
Various sources of funding
For all the changes which are
coming in the company that
requires a types of funding so
that the changes will be able to
take place and get the
organization a competitive
advantage. There is a lot of
investment which is required
for the company to be able to
operate smoothly and
effectively in the market.
Checkout Company will have
to be able to gather so much of
funds and especially they will
have to invest a lot in
technological growth in the
company so that they can
compete with the competition
in the market.
 Bank loans
Banks in United Kingdom
have started to provide the
organizations with the kind of
help that they need so that the
unemployment in the country
reduces. There are a lot of
opportunities which are
present in the market for
companies if they make the
Crowd funding
This can be a great
medium of collecting the right
funds without paying back but
the customers have to trust in
the organization so that they
will be able to get this kind of
attention. Social media and
other platforms are a great
source of getting in the right
funds which is required by the
company so that there would
be a better functioning (Lin
and et.al., 2016). There is a
high attention and trust of
Checkout with the customers
in the company which can
make the company get in the
right funds that they need in
the organization.
Angle investors
There are large or high
profit companies which want
to invest in new products
which are coming up in the
market so that they can
expand themselves more in the
market. There is a lot of
innovation which is taking
place in the world which can
be analysed and then invested
into so that there is a higher
profit margins. Small
businesses do not have
experience which is why this
is a great source of getting the
attention that they need which
is good but they lose the
controlling power in the
organization. The cultures are
going to be different and so
are the values of the two
organizations which can make
a lot of conflicts rise in the
company which is not a good
factor for the organization be
able to operate in the market.
Checkout has a great
reputation which is why they

right decision for themselves.
It is very essential for the
organization to be able to pay
back the amount they have
taken from the bank
effectively so that there is a
balance otherwise the
properties and other important
assets of the owners can be
taken away by bank so that
they can get back the amount.
There is a strong economic
factor in Checkout which
makes it easier for the
company to be able to get this
kind of help from the banks
without losing anything.
are able to get in the right
customers in the organization
and will not need the help of
taking this fund because they
want to lose on the controlling
power on the company.
LO 3
Business plan
Executive Summary
It is very essential for the employees of the company will be able to analyse the market
effectively and efficiently in the market so that there is a better functioning. The companies will
have to understand the competition in the market so that there is an effective functioning. There
has to be a competitive advantage in the market so that there would be a better profitability in the
market.
Objectives
 By the end of 2024 there is going to an increase in the profit margins by 45%.
 The sales will increase by 20% by the end of 2024.
 There is going to be a market share increase by 35% by the end of 2024.

 It is going to make the organization have a better strategy and objectives for the
organization by the end of 2026.
Marketing mix
 People
There is a transparency which is created by the organization with the customers and the
employees which are working in the company. The value and culture of two has to be respected
and the company must be built around this factor so that they can have effective and efficient
working.
 Price
The company uses skimming strategy so that the customers get attracted in the company faster
and effectively in the market. This is going to make the competitive advantage increase which is
good for the standards of the company in market.
 Process
The products and services of the company are well maintained which is a good factor for the
reputation of the company. The demands of the customers are increasing which is why this is
going to make the customers have a better functioning and attractiveness of the company would
increase.
 Physical Evidence
It is very important for the company to create a comfort level for the customers in the
organization so that they are friendly with the company and the products of Checkout Company
as well. This is going to make the portfolio stronger which is good for a long run and the
functioning of the company is going to be higher.
 Promotions
There are a lot of sales, discounts, offers, etc which are being put on the products and services of
Checkout organization from time to time so that they can maintain the customers share in the
organization. There are direct mails and information which is given out to the customers from
time to time so that there would be better and effective working.
 Place
The company is selling their products online which is a very good platform for Checkout and the
number of customers in the organization has also increased which is a great factor. The
satisfaction level is also going to be higher.

 Product
There is a use of technological changes which are made in the company so that there is a higher
productivity in the organization. The services and quality of the product is going to increase
which is a great factor for the company to have so that there is a better functioning.
Marketing strategy Segmentation
The expectations of customers are different and the needs as well which have to be taken care of
by the companies which are present in market (Van Niekerk and et.al., 2016). There are a lot of
strategies and measures which have to be decided by the company like information technologies
for the increase in satisfaction of the customers. To be able to maintain the satisfaction of the
customers so that there is a Checkout company this is going to be helpful for the organization.
 Behavioural Segmentation- The behaviour of the customers have to be analysed and
understood so that the decisions in the company can be taken accordingly.
 Demographic Segmentation- According to the mental status, gender, age, etc the
company segments the areas which have to be targeted for a larger market share.
 Geographical Segmentation- The focus is on the culture, population density, religion, etc
so that there is a better marketing strategies so that there is a better planning according to
this factor so that there is a better productivity accordingly (Choi, Choi and Valley,
2018). Targeting
The target of Checkout is to make the satisfaction and the demands of customers be able to be
met by the organization so that there is a higher profitability. To also increase the brand value in
the market is a great factor which the company will have to work upon. Positioning
The company is already using online promotional factors so that there is a position of the
company in the market which is a great factor for a long run.
SWOT
 Strengths
The company is having good technological changes in the company to be able to operate
effectively in this competitive market and there are right funds which the company is being able
to raise which makes the company be able to increase their productivity and efficiency in the

market.
 Weaknesses
The company does not have a lot of experience in the market and also the employees which are
presently in the organization are not having a lot of experience which is why it is very important
for the organization to be able to do that. Right staff has to be hired in Checkout company so that
they will be able to improve their weakness.
 Opportunities
There are a lot of factors which is a great opportunity for the company which is adding
technological help in the company so that they will be able to use the modern way of getting in
business. There is a lot of transparency which is present in the company and the operations
which are taking place in the organization for a longer run (Eyvindson and Kangas, 2016).
 Threats
The threat for the company is the competition which is already present in the market which
makes the other organization have experience in the market and that is not a good factor for a
long run.
PEST
 Political Factors
It is due to Brexit that there are a lot of changes which are coming in the regulations and policies
of the country because of which the companies have to change themselves. The employees have
got their freedom and the customers have their own rights which have to be provided by the
organization to be able to maintain their effectiveness in the market. There are a lot of
competitive advantages which Checkout can get if they use these changes in the company
effectively.
 Economic Factors
The unemployment rates are not improving because the technologies are taking away a lot of
labour work so that the company is making a negative impact on the population of the country.
The currency exchange is also not good which is why it is very important for the company to
make the right investment at the right time so that they can have better reputation and
productivity.
 Social Factors
There are a lot of changes which have come in the market because of the change in trends and