Planning for Growth: Strategies and Opportunities for Guildford Tyres

This report provides a comprehensive analysis of business growth strategies for the Guildford Tyre Company, a private tire manufacturer established in 1976. It explores the company's growth opportunities within a competitive market, focusing on various strategies to maintain a leading position. The report covers competitive advantages, including high-performance and comfort tires, and the use of Porter's generic strategies such as cost leadership and differentiation. It applies PESTEL analysis to evaluate political, economic, social, technological, environmental, and legal factors impacting market expansion, particularly in the Spanish market. Furthermore, the report utilizes the Ansoff matrix to assess market penetration, development, product development, and diversification strategies. It also discusses financial planning and resource allocation essential for achieving organizational goals and objectives.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 ................................................................................................................................................3
P2 ................................................................................................................................................7
TASK 2............................................................................................................................................8
P3 ................................................................................................................................................8
TASK 3..........................................................................................................................................10
P4 ..............................................................................................................................................10
TASK 4..........................................................................................................................................15
P5 ..............................................................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
.......................................................................................................................................................21

INTRODUCTION
Business growth is very much exciting factor for an organisation and it can be possible
by bring changes in business activities. This is considered as firm act that helps to proprietor to
formulate idea and measure growth of an organisation regarding their revenue. It permits them to
allocate resources for centred effort in adopting changes by bringing digital disruption and
differentiation in their products and services. There are some steps that help in reaching definite
goals and objectives to bring growth in organisation by bringing major changes in areas that are
very much crucial for an organisation. The given study is supported on Guildford Tyre Company
that is a private organisation that manufactures tyres and established in year 1976. They also deal
in many spheres in which reparsing, brakes, air conditioners and batteries with many more
sectors. The presented assignment covers growth opportunities that exist before an organisation
to lead in competitive market with focus on various strategies to evaluate opportunities to remain
always leading. To attain growth organisation have to evaluate funding sources and their benefits
with drawbacks and to plan organisation have to prepared a business plan by gather various
kinds of information and strategic objectives in proper way.
TASK 1
P1
The firm and organisation always enlarges their business opportunities and it is very much
necessary for a tiny concern to grab chance in effective manner (Barbour and Deakin, 2012). To
enlarge businesses opportunities organisation have to build an efficient business plan and
polices. Guildford Company of tyre which is a small business consists of fewer employees that
give their services. It is very much obligatory to grab opportunities in correct manner to attain
organisational end and results in proper way.
Competitive advantage
They are considered as one of the most crucial factors for an organisation to produce
goods and services at cheap cost to bring desirable goals and objectives (Beatley, 2014).
Guildford tyres which are a small tyre manufacture company that to attain growth design and
develop strategy that helps in gaining competitive advantage. The major competitive factors in
front of Guildford tyres that they are rare in nature and focus on giving best quality of products
and services to their ultimate consumer base. There main important components that helps in

giving competitive advantages that are high performance tyres with durability, comfort tyres,
pricing, grip of tyres and cornering with braking are major factors that helps to differ from their
fierce competitors in better way. There major resources high quality la-tics that gives its tyres
durability and comfortability. It can be only possible by identifying the greater opportunities that
are political support and financial assistance that possess by that organisation that ultimately
proved helpful for them to gain opportunities in positive manner. In order to achieve competitor
vantage administration have to follow or build several strategies that are as follows:
Competitive advantage milestone for advancement
For achievement of competitive advantage system have to accumulate resources,
capabilities and core competences that helps in evolutes’ various factors. To evaluate
competitive strength of an organisation they use porter's generic strategies that are described
below:
Porter's generic strategies:
Cost leadership
Cost leadership is one of the most important tactics and plan that helps in build an
distinctive strategy by setting price at low rate (Chapin, 2012). In context of Guildford Tyre
Company they avail various kinds of tools and methods that help in evaluate needs and demands
of consumers and accordingly organisation plan to expand.
Differentiation strategy
In that strategy products and services should be offered in innovative way that helps in
create brand loyalty in front of consumers and enlarge business opportunities (Denton, Forsyth
and MacLennan, 2017). That strategy and tactics helps to evaluate major areas in which
innovation is very much potential for an organisation and accordingly they conducting research
to stay forever competing at marketplace. In context of Guildford Tyre Company they use strong
quality products and at low cost that assist them for remaining always competitory in
marketplace.
Cost focus
The organisation Guildford Tyres company majorly focus on providing product and
services that are advanced in quality having down price. With the help of various strategies,
organisation can be able to find out major spheres in which sphere major improvements are
necessary to range at desired end and outcomes. By conducting market research and analysis

before launching a new product or service in to market. For instance various types of scheme and
tactic help to structure to develop various goods and services as per the requirement of service
users.
Differentiation focus
The major market and consumers of Guildford tyre company by enhancing innovation in
their products and services that help in enlarge business opportunities in better way. By adding
features that are major demanding areas of consumer needs and wants that directly and indirectly
enhance brand loyalty in marketplace. With the aid of differentiation scheme organisation can be
capable to compete in competitive environment and gain sustainability in market.
Competitive advantage for opportunities for growth:
For every organisation to attain growth and enhancement is very much obligatory to
survive for long term in market place, organisation with help of PESTEL analysis can understand
the growth opportunities exist in market, capabilities of organisation with various operations that
took place that are as follows:
PESTEL Analysis:
Political Factors
It is crucial for an arrangement to do evaluation of all factor ahead expanding their
market share (Galland, 2012). In context of Guilford Tyres Company that aimed to expand in
market of Spain and before expanding in that market it properly evaluate each and every factor
such as policies, rule and regulations and many more factors so that if it faces any kind of barrier,
organisation can adopt measures to reach at desirable outcomes in better way. So it is very much
important to do proper evaluation of all before enlarging in other market to increase business
opportunities in better way. As Guilford Tyres Company have the opportunities to enlarge
business opportunities that they are unique in marketplace and their resources and financial
capabilities assist them for remaining competitive in activity. With this they have great access
towards political boundaries that aid for reaching more number of consumers.
Economical Factors
Economic factors are very essential for firm in order to deal in effectual mode while
operating in foreign market (Glock, Jaber and Zolfaghari, 2012). In context of respective
organisation, they want to expand its business in market of Spain so for that they have to do
proper evaluation of different component before going in that market in which credit rates,

inflation rates, purchasing power of consumers and many more factors helps to an organisation
to take important decisions before expanding in foreign market scope in positive manner. In
context of Guildford tyres that they are financially strong and can come with new products and
services that helps to draw attention of large no. of consumer base in positive way. That factor
assist them to gain new opportunities that proved fruitful to enlarge business opportunities.
Social Factors
In social factor consist of norms, values and beliefs that are very important for an
organisation to build a distinction image in front of their consumer base in positive manner. In
context of Guildford Tyre Company before expanding in foreign market they evaluate the
necessity and privation of their users, their purchasing power and taste and preferences and their
buying habits are all important factors that are very much important for reaching at desired end
and outcomes in better manner.
Technological Factors
For an organisation to stay forever competitory at market place they have to make good
and work that are technologically advance that helps for remaining always in directing point in
market. While expand in market organisation have to evaluate instrument and method of their
competitors so that they can accordingly adopt technology to remain always competitive in
market place. They are sound in technical knowledge and to attain advance products and services
organisation need to analyse need of today's competitive factors to build products that can be
able to give competitive advantages in positive way.
Environment Factors
Environment is one of most important factor in which climate, surroundings and weather
conditions are crucial while expand business in competitive world (Horowitz, 2017). In context
of respective organisation that to attain opportunities firstly measure environment that favourable
or not as per their requirement to gain long term growth in market. So these factors are very
much crucial to gain economic advantage for an organisation to deal with competitive market.
Legal Factors
While going and expanding business in foreign market organization have to evaluate
various laws and regulations of an country so that they take proper actions before going into that
particular country in positive way (Keough, 2015). In context of Guildford tyre company they
properly evaluate working conditions and labour laws before going in that market to remain

always competitive in market for long time. Before advent in growth sphere they have to identify
majorly the legal rules and regulations so that they can serve in better way in that competitive
world. In order to organisation have to build the environment that works in favour legally so that
organisation can be gain competitive advantages.
P2
For grabbing possibility organisation have to not only evaluate external factors but they
also have to evaluate their inner strengths and weaknesses that can be possible by using various
models that are as follows:
Ansoff matrix:
Market penetration
In that stage of model organisation expand in existent marketplace with alive good and
services by using various ways in which by lowering their prices, spreading awareness among
people and by enhancing promotional activities that are helpful for an organisation to lead in
market by giving delighted experience to consumer base in positive manner.
Market development
With the help of that strategy organisation aimed to grow in fresh market with existent good
and services and it can be possible by giving products that possess quality of uniqueness by
giving packaging that is attractive enough (Li, Mobin and Keyser, 2015). with various kinds of
distribution channel for reaching more number of users base so it is very crucial strategy for
organisation to stay always competitory in market place.
Product development
In that strategy organisation aimed to expand in marketplace by expanding fresh good in
existent market place to attain growth and sustainability. The new product and services that
offered by that organisation is to repair vehicles at door step that eliminates problems of
consumers and helps to stay forever competing in market place. So these strategies are very
much essential for an administration to present correct type of products and services to the
ultimate consumer in desirable manner.
Diversification
In that kind of business strategy organisation planned to expand in fresh activity with fresh
good and services by evaluating necessarity and neediness of their user base. That kind of
strategy proved highly risky as organisation planned to expand in totally new market place. In

context of Guildford Tyres Company they conduct through research and evaluation before going
in another market which is totally new for them but helps to be forever competing in marketplace
place (Keough, 2015).
Hence, it can be evaluated that organization always have to plan to expand their market
by various tools and techniques to change always competing in market place. From the above
discussion it has been evaluated that organisation have to avail market penetration that proved
beneficial for them to enlarge business opportunities in existing market by providing high-grade
good and services to them.
TASK 2
P3
For an organisation to remain always stable in competitive marketplace, they have to build
plans and tactics. Before that they have to accumulate financial root that aid to accomplish
organisational end and objectives in proper way. Here are some sources of funding with their
pros and cons that are as follows:
Loan from bank- It is one of the most easily achievable and systematic type of funding
source especially for the Small enterprises (Lu and Yu, 2014). Banks provided funds to
organisations for fixed time period with pre determined interest rate that proved beneficial for
both organisation as well as bank also. In context of Guildford Tyres Company can raise funds
from those sources because it is secured in nature.
Benefits- This includes:
 As it charges down interest rate in comparison to different types of funding. With the help of that source organisation by fixing period of instalments and accordingly
can repay their loans.
Drawbacks: The drawbacks are:
 The major drawbacks of that source are that it takes long time to raise funds because
there are lots of formalities exist in that system.
 Sometimes organisation has to pay instalments as per the pre determined time period and
if organisation not found to give that bank seize their property.
Peer to Peer Lending- It is regarded as fiscal innovation and ideas that coordinate borrowers
who are inquiring for unbarred debt with those of investors in order to get high returns (Mason,

2015). In this type of funding, person can take money without helps of financial institutions. It is
unsuitable for Guildford Tyres Company because it is unbarred and not helpful and useful for
enlargement of business.
Benefits- This includes:
 This carries low cost of interest as compared to others. For early repayments, it does not charge any additional money.
Drawbacks- It includes following:
 It does not have free tax interest and huge money.
 The person possessing advanced credit score can easily get debt which is disadvantage of
such source.
Overdraft- It is that type of funding facilities that is given to individuals and firms when
they are making payments from their circulating accounts that surpassing dearth of cash (Rydin,
2013). which provided for shorter time fundamental measure by bank to single and organisation.
It is flexible type of funding sources which can be used by organisation. It carries both pros and
cons which are as follows:
Benefits- This includes:
 Money can be arranged quickly because of flexibility in nature.
 The borrower has to give interest to overdrawn sum of money.
Drawbacks- disadvantage can be:
 That type of borrowing can be taken at anytime from financial institution.
 The more amount of overdraft taken leads individuals and firm to decrease credit
score card.
Angel Finances- This is defined as that sources which provided funding to new start up
firms or business. It is appropriate for those who want to expand their capital at market.
Guildford Tyres Company can acquire such financial support because should not carry some
risk and confirmatory security. It carries some advantages and disadvantages which are described
below:
Benefits- The benefits are:
 It holds less peril from other financing liability.
 It does not require any collateral security for taking funds.
 For it not necessary to give monthly interest and payments.

Drawbacks- The drawbacks can be following:
 There is more control in such business.
 It is time consuming for investors.
TASK 3
P4
To getting success and development in competitive market, for it very essential for
organisation to kind of effectual accusative for business . to expand enterprise in dynamic and
competing surrounding, company need to make business plan which should include information
about vision, mission, policies, strategies, marketing plan and others. The element of planning
procedure includes monitoring, designing, producing, controlling, operating, implementing,
distribution and others. With this firm can avail competitive advantage and enhance their
profitability and productivity. That organisation is expanding business in respective country so it
need to prepare business plan for achievement of goal and neutral that is given downstairs:
Idea of Enterprise
This is characterized as procedures that consist of various message about product, work,
company, operation, masses, strategic objectives, unique selling options and others (Unkelbac
and et. al., 2014). This can include information of new, unique and innovative products. The
concept of business which is followed by respective Organisation is described below:
Governing body Products - organisation named as Respective organisation is small firm
in United Kingdom which deals in various products. Guildford is providing products like brakes,
exhausts, mobile tyre fitting, air conditioning, vehicle diagnostics, batteries and others. This
follows concept of customisation where requirement of consumers is known and accordingly
manufacturing is done. It has targeted auto-mobile companies manufacturing car products.
Vision and Mission of Firm- Guildford Tyre Company manufactures vehicle products
which are based on customisation for achieving maximum profits. Further to run business in
competitor y market, necessary to set mission and vision statement for organisation. mission is
to expand with sustain picture in industry by supply superior goods and services in order to
increase profits. Similarly, mission is providing innovate and quality products to consumers for
fulfilment of necessitate in best possible way.

Operational Strategy- Operation plan of action of respective organisation is customized
driven in order to design products and services for fulfilling their requirements. This strategy
assists in enlarging market share and enhancement of profits (Wu, 2015).
(USP) - Unique Selling Proposition avail by respective organisation is private equity
capitalisation. Under such strategy they exchange specific section of firm to other organisation
for particular playing period which can be 3 to 5 years. This is executed through legal process
and both parties have to performed agreement process. For example, respective enterprise is
selling 70% of their portion to other car manufacturing company.
Strategic Objectives- Major goals of that organisation are:
 To expand business into new market with new services for increasing 20% profits in next
5 months.
 To achieve goal and objectives high quality goods and services should be provided to
users.
Market Analysis
In order to analysis market, SWOT analysis is used by respective organisation which is
described as:
Capability Weaknesses
 firm possess major R&D department.
 Guildford Tyre Company has
productive and loyal employees for
achievement of goals and objectives
and ready for acquiring changes.
 They have loyal and trustworthy
consumers that are advantage for
business.
 It supplies high quality good at
reasonable price.
 Ineffective distribution channel
 Air conditioning products feature is
not highly advanced from their
competitors.
Opportunities Threats
 They have opportunity to grow
economy.
 Easily expand business at international
 Other company is exporting tyres and
products of car at cheap rate.
 The number of competitors in this

market.
 In order to design products innovation
and new technology can be used.
filed in huge which creates threat for
Guildford Tyre Company.
Financial Plan
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500 4200
Total inflows 10000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100
August September October November December Jan
1000 2000 800 1200 1500 3600
1000 2000 800 1200 1500 3600
200 300 100 600 300 2000
400 500 100 100 400 300

600 800 200 700 700 2300
400 1200 600 500 800 1300
16100 16500 17700 18300 18800 19600
16500 17700 18300 18800 19600 20900
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250
21100 22400 24600 24750 26250 19350
Post launch cash budget
Particulars Jan Feb Mar
A
p
r
Cash inflows
Investment 8000

Credit sales 1200 2000 7500
3
0
0
0
Total inflows 9200 2000 7500
3
0
0
0
Cash outflows
Fixed : Equipment’s 2500 1200 1500
2
5
0
0
Variable : Direct material 350 300 250
1
5
0
Total outflows 2850 1500 1750
2
6
5
0
Net cash flow 6350 500 5750
3
5
0
Opening balance 0 6350 5850
1
1
6
0
0
closing balance 6350 5850 116001

1
9
5
0
May June July August September October November December
5000 6500 1200 3200 1500 8200 1250 3210
5000 6500 1200 3200 1500 8200 1250 3210
1100 1500 1200 600 500 500 1200 700
100 500 500 250 450 250 1300 500
1200 2000 1700 850 950 750 2500 1200
3800 4500 -500 2350 550 7450 -1250 2010
11950 15750 20250 19750 22100 22650 30100 28850
15750 20250 19750 22100 22650 30100 28850 30860
Jan Feb Mar Apr May June July
1200 5000 2500 4500 1500 3500 4200
1200 5000 2500 4500 1500 3500 4200
2000 2500 1500 2000 1500 2000 200
300 300 200 250 360 250 500
2300 2800 1700 2250 1860 2250 700

-1100 2200 800 2250 -360 1250 3500
30860 32160 32360 33660 35860 36010 37510
29760 34360 33160 35910 35500 37260 41010
Observation and measurement - that regarded as terminal level of business concern plan
in that activities and operations of organisation are performed in proper manner and each is
monitored and controlled in order to achieve business goal and objectives. If any errors arises
then it need to be controlled further improvement. So in respect of firm after successfully
implementation of program they can be able to get desirable outcomes in positive way.
TASK 4
P5
When enterprise cannot operate in proper manner and facing lots of problems in functioning
and operating their activities from last year (Wynn, 2017). Therefore, in such case then can close
or dissolve or merge with other organisation that is running their business operation successfully
in competitive market. There are various issues which are faced by Guildford Tyre Company
such as production process, employee behaviours, quality and others. Thus, they should decide
appropriate options for getting success and survival at market place. The evaluation process
conducted for sequence choice are as follows:
Merger- That regarded as position where organisations firm coming collectively comes
under judicial agreement and by creating unique organisation or compounding transaction
(ZHANG, ZHAO and CHEN, 2013). by it firm can get earnings and grow enterprise in some
other marketplace. Here, in respective organisation should connect in another production
industry various products for cars. It carries some advantages and disadvantage that are
Benefits- It includes following:
 that assist organisation to perform and execute operations and functions at huge
level.

 This provides benefits to both companies for increasing their market share and
goodwill.
 It helps in reduction of competitors from market.
Drawbacks- Disadvantage or drawbacks are as:
 There are loss in productivity of employees because tiny organisation merge by
big firm which creates difference in abilities and skills of staff.
 This leads to failure of business for employees to firm.
JV- Joint venture regarded as circumstances decide for pooling resources for completion
of given task or project (Ziari And et. al., 2012). These are performed under considering legal
rules, regulations and laws. In context of organisation and another administration need to parcel
sources such as products to achievement of objectives. This is based upon temporary cost with
managing time to get desirable objectives. It has some advantages and disadvantages that is
described below:
Advantages: IN which exists:
 Communion of peril and price by both parties in equal proportions Both get opportunities to gain capabilities and expertise employees for work
performance.
Drawbacks- It consists of following:
 This is expensive type of succession or exit.
 Building strong relationship with partners takes more time that leads to various problems.
After analysing different types of options, Guildford Tyre Company should adopt merger
succession in order to achieve objectives of business. Therefore, this can assist to execute
various activities and operations at global market place.
Succession planning:
Succession planning is an chain of activities by identifying and constructed new and
advance leaders that can be access the aged leadership who in any situation such as leave or die.
It helps in enhance accessibility about potential workforce which always ready to give their best
as per the competitive environment.

CONCLUSION
As above described assignment, it can be summarised which are very crucial for enterprise
to make plan for their growth and success of organisation. In order to analyse competitive
advantage as foundation of growth, business need to conduct Porter’s generic model and for
analysing growth and opportunities of expansion at global and national market, PESTLE analysis
has used. It is very important for organisation to use different model and theories for analysis and
evaluation of foreign market with help of Ansoff’s growth vectors. The financial resource helps
organisation for expansion of their business which includes financial institutions, bank loan and
others. They need to select best method for business expansion. For attracting customers,
consumers, investors, manager of organisation need to make business plan which includes
financial sources, scheme, operation, visions and another. For an organisation many kinds of exit
plans for dealing with problems and issues.

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