Growth Planning for QTR Transport: A Comprehensive Analysis

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Planning for Growth
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Table of Content
Introduction......................................................................................................................................2
LO1..................................................................................................................................................3
P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context..............................................................................3
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix......................4
M1. Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organizational Context....................................6
D1. Critically evaluate specific options and pathways for growth, taking into account the risks of
each option and how they can be mitigated.....................................................................................8
LO2..................................................................................................................................................9
P3. Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source (M2, D2)................................................................................................9
LO3................................................................................................................................................12
P4. Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business................................................................................................................12
M3 Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving objectives
(D3)................................................................................................................................................13
LO4................................................................................................................................................16
P5. Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option (M4, D4)................................................................................................................16
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Introduction
Planning is the primary function of any organization that leads to design an adequate and
effective strategies with the help of which the main objective of the business can be achieved.
One of the crucial activities of the business unit is the Growth Planning that leads to track as
well as plan the organic growth related to revenue of the company. This plan enables to allocate
the valuable resources of the company to the center part of the business that facilitates to adapt
any certain changes that arises at the time of operation and functioning of the organization. All
the tactics and strategies that is included with the perceptions of the growth plan leads to attract
the focus on the key driver that is generating revenue. There are many tools applied while
designing the growth plan that empowers the roots of the company. The effective growth plan
leads to increase the overall economic condition of the company in the market. Moreover, these
planning guide the overall management system of the company for the smooth functioning. The
business plan includes all the future strategies and methods that will be suitable for the
betterment of the company operations. In order to evaluate the topic of the growth planning the
company QTR Transport is been considered in the below assignment. The company is the largest
private logistic firm that serves as a combination of the family business alone with the scale and
capacity of the crucial multinational logistic provider. The success of the company is because of
the client that is the largest companies of the UK’s. The major planning for the growth of the
company indulged in assuring the best and effective workforce that is enthusiastic as well as
talented towards their work. Thus, all the related details on the company planning for the growth
is been highly accentuated in the below assignment.
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LO1
P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
There are many factors that can be considered for the evaluations of the growth opportunities of
the QTR Transport that are discussed below:
● Understanding customers
The customers are the soul of any business unit thus it is very important to maintain the proper
understanding of what is been demanded by the customers through market. Like for instance the
QTR Transport company look for all the related services of warehousing, palletized distribution
and any other distribution services (Chou et al., 2016). The requirements of potential customers
are prioritized and are applied to the same in order to provide the utmost satisfaction to their
customers.
● Offering creative and innovative ideas
Every customer in the market looks towards the newly innovative and creative ideas that can be
more effective to them while using. Therefore, QTR Transport is one of the reputed companies
in UK that has many large companies as a client. The reason is the regular advancement of the
services that they offer to their customers. The company focuses to enhance their performance
irrespective to the increasing demands in the market (Lee, 2016). Thus, new innovative as well
as creative ideas are used by the company in order to maintain the interest of the customers for
their services.
● Prioritize the edge opportunities
While operating the business many opportunities arise that leads to increase the economic
growth of the company in the market. However, the company is required to analyze all the
upcoming opportunities and design the planning for growth irrespective to circumstances
(Horowitz, 2017). The operation of QTR Transport is planned after evaluating all the future
opportunities that can be gained by the company in the market. However, due to this the function
of the company has been analyzed to be flexible, profit potential, eliminate degrees of risk and
other relevant factors.
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Figure 1: Key considerations for evaluating growth opportunities
(Source: Created by Author)
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
In order to portray overall alternatives incorporated to the growth strategies the Igor Ansoff has
introduced a matrix that focuses on the customers, market, potential products as well as firm
present position. This can be done by analyzing the various ways that will lead to enhance the
existing products and services as well as creating new ideas for the products in the new or
existing market. Irrespective to determine the complete Ansoff’s matrix there are four
combination of the product market that has been discussed below:
● Market penetration
It is the strategy that is been used in order to least the risk as it leverages several firms existing
capabilities and resources. If the market is growing market, the increasing rate of the shares will
lead to the growth of the company as whole as the company enjoys many opportunities in the
competition market (Zhou et al., 2015). However, this strategy has several limitations that
approach to the saturation to the other strategy that are intrinsic to pursue for the business to
grow.
● Market development
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This is the strategy that is used to pursuit the additional marketing segments as well as
geographical region. If the core competencies of the products are specific to the irrespective to
the market segment then the establishment of the new market serves to be the good idea for the
company (Platteau, 2015). An adequate developing strategy is required to expand the new
market serves to be risky as compared to the other marketing penetration strategy.
● Product development
This strategy is appropriate only when the company has a reliable strength irrespective to the
customer support rather than the products as a whole. This situation enables the organization to
launch its new product in its targeted market by applying typical strategies (Luzzini et al., 2018).
However, the new market with the new product can served to be more risky for the company
which might affect the rate of the shares in the market.
● Diversification
One of the most risky strategies among the four strategies are the diversification. This is because
this strategy requires both the market development as well as product for enabling the effective
core competencies of the firm. Some of “suicide cell” has been referred irrespective to the
quadrant of this matrix (Swadesh, 2017). However, this strategy can be implemented at the high
rate of risk only if it is sure that the return will be as high as the risk. Another advantage of this
strategy is it leads to foothold the attractive industry and reduces the portfolio risk of the overall
business.
Thus, this is one of the growth strategies that are adopted by the company QTR Transport. This
strategy enables the company to acquire the desired result from the effective planning of growth.
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Figure 2: Ansoff’s growth vector matrix
(Source: Created by Author)
M1. Discuss the options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage within an organizational Context.
In order to contrast the analytical frameworks that will demonstrate a proper understanding of the
competitive advantages of the QTR Transport certain points are underpinned:
● Generic strategies(Porter)
This is the strategies that are used by the respective company in order to analyze the competitive
advantages in the market. This strategies are further accustomed to five crucial kinds that are low
cost, best value, differentiation, focus on low cost and focus on best value (Delmas and Pekovic,
2015). All the above strategies are the adopted by the company in an adequate manner that leads
to improve the overall position of the company in the market.
● Evaluating macro opportunities (PESTLE)
It is important for the company to analyze its macro environment that majorly affects the
operations and functioning of the business. However, QTS Transport is the company that design
and sets its productivity operations after analyzing all the political, economical, social,
technological, legal and environmental factors that are the acronyms of the PESTLE (Bronskaya,
2018). The company is very much aware with the huge effect these factors can cause to the
operation and functioning thus pays a prior attention to all the macro factors.
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● Portfolio strategies
It is one of the roadmap which are used by the investors in order to achieve the financial related
goals. This strategy is used by the company QTR Transport that enables to design the optimal
portfolios which implements the asset pricing. The company portfolio is no doubt very attractive
that gains the attention of the potential customers in the market. Moreover, the portfolio of the
company provides all the necessary details that are required to be delivered to the customer for
the better understanding.
● Product life cycle
The life cycle of the products indicates the company progress through sequence of many stages
that instance growth, decline as well as maturity. However, QTR Transport is the service
provider industry, thus it follows this strategy to ensure its services level and popularity in the
market of transportation (Stark, 2015). It has been observed that the company is in the leading
position of the marketing field of transportation due to the effective services that they offer to
their potential customers.
Figure 3: Analytical framework of competitive advantages
(Source: Created by Author)
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D1. Critically evaluate specific options and pathways for growth, taking into account the
risks of each option and how they can be mitigated.
In order to achieve the ultimate goal the company is required to adopt all the above strategies and
methods to expand its business in the market of transportation. However, it has been observed
that the company is continuously improving its performance which leads to maintain customer
interest and loyalty towards their business. It is already accentuated above the risk factors of the
Ansoff matrix. Thus, any wrong plan can lead to the diverse effect to the company position in the
market. With huge advantages there are several disadvantages that arise at the time of applying
all the strategies. The QTR Transport company has faced vivid challenges in the market to
achieve is main objective of the business unit.
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LO2
P3. Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source (M2, D2)
At the time of commencement of the business a proper funding is very important as without
which the startup is not adequate. Thus, financing the business needs to be overlooked by the
management system for the betterment of the company. However, this also leads to enhance the
chance for the company to meet the appropriate needs. The QTR Transport Company has used
several sources in order to maintain its financing for the smooth functioning of the business.
● Personal investment
All the directors and CEO’s of the respected company have invested a large portion of their
personal assets at the time of commencement of the business in the market. However, it is
applied by the entire new business unit that the first and crucial investors are the respective
owners of the company and then the other co investors are added for the further requirements of
the company (Carvalho and Rezai, 2015). It is very true that only after the roper establishment of
the company position in the market the outsider will wish to invest their money to the respective
company. Thus, QTR Transport slicked to this and commenced its business in the best possible
manner that enabled them to gain a good position in the market through its clients.
● Venture capital
This is the process of accumulating funding that is not mandatory to be adopted by all the
companies. Venture capital is that part of the equity share capital in the company that are offered
to the outsiders of the company at the time of risk taking. The market position is checked by the
investors of the respected company before making any investment (Bernstein et al., 2016).
Moreover, in order to preserve the safe side the company QTR Transport offer certain part of
their equity shares in the market. However, due to the well established position, the company
continues to enjoy high rate of their shares.
● Angels
The retired executives and the wealthy individuals are termed as the angels as they play a crucial
role at the time of risky situations. Not only financially but mentally also they help the company
to take certain decisions that will be beneficial to the perspective of the company point. QTR
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Transport has accustomed too many of such investors that will stick in front of the company like
a wall at the time of challenges and risk.
● Business incubators
The QTR Transport is the high tech business sector that uses business incubators at the various
stages of development. They are the incubators that only help the company that are positioned
high in the business and do not involve any common financial risks (Mas-Verdú et al., 2015).
● Government subsidies and grants
At the time of emergency the respected company cans also grand help from the government
irrespective to the subsidies (Yang and Nie, 2016).
All the above are the factors through which the company receives its financial help at the time of
risky situation in the market. However, all the above schemes of accommodating funds except
the personal funds are liability of the company that is required to pay at the given duration of
time or else the company may lose its stable position in the market.
Figure 4: Sources of funding available to businesses
(Sources: Created by Author)
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PersonalinvestmentVenturecapitalAngelsBusinessincubatorsGovernmentsubsidiesandgrants

LO3
P4. Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.
Vision and mission
The vision and mission of the company QTR Transport is to expand its business in the
international market. Moreover, the main objective of the company is to earn maximum profit by
providing utmost satisfaction to their potential customers. Some of the crucial factor for the
planning for growth with aspects of scaling up a business unit is discussed below:
● Areas of strength
In a company they are of strength includes the skills, knowledge, talent and proficiencies that
lead to the overall economic growth of the company. These traits are used by the company in
order to perform their respective task that will lead to achieve the objective of the organization
(Gensamer, 2017). The company QTR Transport uses various methods that lead to increase the
enthusiasm, creativity, determination, trustworthiness and so on at their area of strength.
● Identified opportunities
QTR Transport is one of the leading companies in the field of distribution and warehousing
market. Henceforth the company enjoys lots of opportunities which help them for their operation
and smooth functioning (Oberlack, 2017). However, in order to increase the effectiveness of the
operation the company is required to identify and analyze all the relevant opportunities that
might arise in the market of transportation. The opportunities can arise from macro as well as
micro environment.
● Values and ethics
Value and ethics plays a crucial role in the internal business environment. It is in the other term a
code of conduct that is required to maintain in the business environment (Lefkowitz, 2017). QTR
Transport is the company that maintains its protocol of maintaining adequate ethics and values in
the organization with the aspects of proper communication and work friendly environment.
● Expectations of stakeholders
The company runs its business operation on the huge investment that is incurred by the
shareholders of the company. These investments are necessary for the daily smooth functioning
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