R Robson Company: Growth Strategies, Funding, and Business Plan

This report examines R Robson Company, a small-scale beauty product business aiming to expand by introducing organic products. It analyzes growth opportunities using Ansoff's Growth Vector Matrix, assessing funding sources (bank loans, overdrafts, and crowdfunding) with their pros and cons. The report details a business plan, including financial information, sales strategies, and legal aspects. It explores competitive advantages through Porter's Generic Strategies (cost leadership, differentiation, cost focus, and cost differentiation) and a PESTLE analysis to understand external factors. The report highlights the importance of market penetration, product development, market development, and diversification strategies. Ultimately, the report recommends product development as the most suitable growth option for R Robson, focusing on introducing new herbal and organic beauty treatments to attract new customers and maximize profits.

Planning for Growth

INTRODUCTION
To run a business in positive direction it is necessary to analyze business planning as well
as growth. For long term concern, it is necessary to run a business with good innovations.
Report focus on R Robson Company who offer beauty products i.e. inorganic, which is a small
scale company who wants to expand its business by introducing new organic products. This
report focus on how R Robson grow and attract customers for its new product available in the
store. It presents considerations that help to analyses different growth opportunities by applying
Ansoff's Growth Vector Matrix. It help to assessing some sources of funding that are available to
expand a business with its pros and cons. It designs a business plan in order to evaluate growth
that includes financial information business. The report shows some options that explains
benefits and its drawbacks for each and every option.
P1Analysing competitive advantage for R Robson
R Robson is dealing with beauty care products and has more than 70 number employees
but it is looking forward to expand its business in nearby areas. The company tries to identify
targeted audience with clearly defined needs and it delivers high-quality products at reasonable
rates as compared to its rivals (Bridge and Dodds, 2018). To increase or expand any business, it
is necessary to plan and analyze key factors which may affect the business's growth. There are
many factors which affect the growth and planning such as financial viability, sales plan and its
channel, legal legislature and marketing coordination and the most important factor is
competitive advantage.
Porter Generic Strategy: It is a strategy that help to identify competitive advantage and it
consist some strategies which are mention below:
 Cost : This strategy help to target broad market and offer their customers at low price in
order to raise its market share. R Robson apply this strategy successfully when having an
substantial investment capital at its low cost and this method help to keep monitoring on
internal process.
 Differentiation: This strategy helpful for a company when a company have unique
products and has high demand and an effective marketing planning will also be aid to
understand benefits of R Robson's unique products.

 Cost focus: This strategy work when a company faces little competition and offer lowest
price and for R Robson, uses this method in order to cater its services to different market
place to raise its financial status.
 Cost differentiation: Strategy will be helpful when a company faces little competition
but has unique products to offered and this involves strong brand loyalty among
customers. While using this market strategy, a company has to their unique products in
order to stay ahead in competition.
PESTLE analysis:
Political factor: Sudden increase in Tax will affect company's financial status and as a
result its overall performance will affected so there is a need to sell all products which should be
labeled with customer safety act.
Economical Factor: It covers inflation and recession that affect entire company's
performance and as a a result, there is a fluctuation in company's working performance.
Social Factor: Sudden change in customers perspective will also affect the environment
of a company and as a result it may lead to decrease in sales that is why social factors always
creates hindrances in R Robson's performance.
Technological Factor: As company's did not cope up with current and advance
technologies so it is necessary for R Robson to adopt those in order to sustain in market and raise
its competitive advantages.
Legal Factors: quoted company must follow all the laws such Company law,
discrimination law and follow the procedure of government laws.
Environmental Factor: to comply with competition, there is need to follow Corporate
social responsibilities for R Robson.
Justification for chosen growth option:
By using porter's generic strategy model in R Robson, the company can easily determine
the profitability of a company is above or below. For its growth option R Robson chooses cost
leadership as a growth option and this strategy is help to determine the competitive advantage in
market. By using cost leadership strategy, R Robson can fix the rates of their new organic
products in order to attract more number of customers. This strategy help to increase the profit
by reducing price of their existing products and help to increase market share. By using Cost

leadership strategy, listed company can easily raise its profitability which further help to enhance
company's brand image.
 Financial Viability: this is the most important factor of growth and planning. Analyze
revenue from last year and then determine whether the business will help to earn more
profit or not. If it gives profit output then it can expand its business by adding new
organic products into existing product to earn more.
 Sales Plan and Channel: if a business had proper and best channel of distribution which
help to supply all the product and service to the customers then it will help in growth of a
business (Gounaridis, Chorianopoulos and Koukoulas, 2018). If a sales team of R Robson
put all its efficiency in order to complete the need of customers then a company will
definitely achieve the targets for its growth. For a business, a dedicated sales team and to
choose right trust able person will help to meet the right opportunities.
 Legal Aspect: this is also an important factor for planning and growth of a business.
Sometimes, economic key indicators help in the growth of a business but there are some
legal laws such as employment laws must be taken into a company when hiring
employees or finding right persons for business. It is essential to know about some laws
related to filling a tax and other business needs (Macaulay, 2018).
 Merger and Acquisition: these are two complex areas of laws but to occupy a position
in a market place, this are the best way to secure a good with specialized skills or talents
that will help to expand the values which are provide to the customers (Leick and Lang,
2018). Merger is good for a company in order to expand its business.
 Competitive Advantages: for growth opportunities, it is necessary to analyze
competition in that area. Identification of targeted audience and their needs must be met
in a better way as compared to its rivals to make clear competitive advantages. To deliver
the high quality of service and product to customers will help to achieve the target and
objectives of R Robson. The core competencies of R Robson are its best quality of
products that are available at low rates.

P2 Presenting opportunities for growth by applying Ansoff's growth vector matrix
Market Penetration Strategy: Using this strategy, R Robson is trying to sell more and
more product in its existing market. By using market penetration as a growth opportunities, a
quoted company enhance its customer base in market and by providing products/ services in
lower rate as compared to its rivals and improve the channel distribution and invest more in
marketing will help to increase the production capacity. R Robson has its best channel
distribution and keeps trying to maximize its profit by offering discounts and combo packs on its
existing products (Ansoff vector matrix,2018).
Product Development Strategy: it is about developing and selling new products in
existing markets. Company make some modifications or innovations in its existing product and
sell new product such as R Robson wants to introduce new herbal product in its beauty care
product which help to add new customers in its store. R Robson chooses this because as it wants
to add new herbal products in its existing store and today's generation are quite heath conscious
so it becomes an advantage of introducing this product.
Market Development Strategy: it is about selling more and more existing products in
new market. For growth opportunities, this strategy helps to reach new customers and expand
business at large level as in the case of R Robson, it also wants to reach new customers by
targeting new geographic areas. Using social sites and promotional activities in new market will
help to reach new audience (Tomczak, Reinecke and Kuss, 2018). The company's earnings are so
good and that is why it wants to reach its services into new global market. For a small enterprise
Illustration 1: Ansoff vector matrix

such as R Robson, this strategy helps to expand from current market to another geographical
market where its product increases its profits and sales.
Diversification: this strategy of Ansoff matrix apply when product is completely new
and now introduces in market. For growth opportunities, this strategy will helpful for R Robson,
when a new herbal beauty treatment product are introduces in new market which help to attract
more number of customer so that it will help to maintain long term relation with new as well as
existing customers and increases its sale and profit.
Suitable option:
By above mention Ansoff's vector matrix, it is concluded that product development is
chosen by for R Robson because company introduce new product in market that is herbal and
organic beauty treatment product which help to increases its new customer as well as maximizes
profit and increases its selling power (Field, 2018). By using product development strategy, the
company offer new product in their existing market and serve best to their customers.
M1
To increases growth, proper planning is required for a business. R Robson have great
competition advantage in its existing market. The company sell all the beauty product in
affordable price with the best quality from its rival. For proper growth, financial viability, legal
rules and laws, market coordination play an important role and affect the growth of a business.
Competitive advantage is the biggest key factor which affect complete business (Kerzner and
Kerzner, 2017). R Robson to have great competition in its market because of serving good
quality of product to its customers.
D1
For growth and planning R Robson take many options such as competitive advantages,
merger and acquisition, legal aspect and budget. The company earn good income and that is why
it is try to expand its business in near by areas by introducing new product in existing market will
also help in maximizing its business. For growth, it has proper budget to invest in new product as
well as in new market.
P3. Presenting sources of funds available with its benefit and drawbacks
R Robson wants to expand its new business and to grow more it needed more funds
because financial viability plays an important role. There are various sources from which a
company can uses that are as follows:

Bank loans: this is third type of source funding and it is common type to raise fund for a
business. Bank always offer loans to SME at small interest rates as compared to other sources of
funds (Gounaridis and et.al., 2018).
Benefits:
 Taking loan from bank is repayable and it is for long term benefit.
 No amount of profit percentage is given to bank.
 Interest rates are fix and lenders know all the term and condition regarding take a
loan.
 Some token amount has to pay by the owners at initial stage but it will not for
throughout the years.
Drawbacks:
 Taking loans from bank is not flexible, and interest are paid on all loans.
 If a business have some cash flow problems then there may be have troubles
regarding repayment (Ravetz, 2016).
 There is a charge if owner want to repay before the end of loan term.
 Larger loan will have specific terms and condition that may be not fulfilled by the
taker.
Overdraft: It is a short term loan and it has a facility under which an account holder can
easily withdraw money from his existing bank account even if it has a nil balance.
Benefits:
 person can withdraw money from anywhere and any time.
Drawbacks:
 did not cross the limit and if done then has to pay big interest.
Crowd Funding: It is a way of small amount of financing by donating money from
public. And this is mostly done to encourage people to support and offer incentives also.
Benefits:
 Fast way to raise finance.
Drawbacks:
 not help in business in sufficient way to apply crowd funding.
Peer to peer lending: It is a method to lend money to individuals by using online
services.

Benefits:
 Easy and fast process
 No penalty
Drawbacks:
find risky at a time to return amount.
Angel and venture finance investor: It is a group of people, who invest money for the
welfare of others and contribute at small and early stage of a business.
Benefits:
 Consider less risky than debt financing.
Drawbacks:
 Loss of complete control over a business.
Own savings: this is the simplest origin of fund. R Robson uses its own saving in order
to introduce new herbal products as mentioned in financial statement. It is the important source
of fund which help to raise money .
Benefits:
 it gives much control from other sources of fund.
 Help to retail complete ownership which means can receive 100 percent profit.
 Owner only have to spend time because he already know how much money is
needed to run a business (Read and Bailey, 2015).
 Investing own money in a business will help to avoid extra spending and only
investing in business equipment and marketing.
Drawbacks:
 using own money in a business will put a struggle on the member of family and
even in personal life too.
 If a business will not run in future then it may lead to loose home and personal
ownership.
 If self financing is the only method then owners has to develop its own contacts
and opportunities because he is not choosing different investors for business.

Investor: to start a business, choosing investors is another method to raise fund.
Investors are those who has a good background in finance and has funds to invest in a business.
Basically, they take a share in business in return of investment (Hollander, 2018).
Benefits:
 Investors are free to make fast decision.
 They do not want any type of interest.
 They are better discipline because of outside inspection.
 They have good management skills.
Drawbacks:
 This type of investment is not suitable for investment more than 5,00,000 pound
because there are no chances that they will return them back again
 takes too much time to find suitable investor
 Owner has to share a business.
Partnership: this source will also help to raise fund in a business. To run a business for
long term, partnership will help to maintain long relations with big firms.
Benefits:
 It will help to take the best decision for a business.
 Good amount of capital is available for a business.
 Each partner will access to knowledge, skills, experience and contacts.
Drawbacks:
 There is unlimited liability of partners for their business debt (Tomczak,
Reinecke and Kuss, 2018).
 If partner leave a business then it will more risky to run a business alone.
 Both partners are liable for their deeds and action in a business.
Suitable Option:
Above all mention sources of funding, R Robson chooses as a source of fund by using
personal saving funds and take loans from bank as it wants to introduce new herbal products into
its business. Because these two sources of funds are quite simple and easy process as compared
to other and can be repay all bank loans with their profits.

M2
R Robson wants to expand it business and to raise fund, the company uses different
sources of fund such as through own saving, investors, bank loans and through partnership.
Among these, own saving and bank loans is the best source for raising fund. In these two sources
common benefit is that there will be no sharing on earning profit (Gounaridis and et.al. 2018).
D2
The income of R Robson is best as compared to its rivals that is why it trying to add more
new product and expands its business in nearby areas but it requires fund for expansion so it uses
own saving and through bank loans which provide money. The company want to create good
image in market and for this it keeps trying to expand its more business.
P4. Business plan for R Robson
Overview: presently, R Robson offering all the cosmetics product at cheap rate with
good quality but it wants to introduce new organic and herbal product in its existing store. The
store provides good quality of product as compared to its rivals and it wants to maintain good
customer relation in the future, that is why it wants to introduce new product in its existing firm
in order to attract more customers (Read and Bailey, 2015).
Mission: To produce best quality of products to their customers and expand business at
global level.
Vision: R Robson wants to provide good quality of services and health is their
fundamental element and they want to guide customers by using different beauty products.

M3
Goals/objective:
 To maximize more profit and sales.
 To maintain healthy and long term relationship with customers.
 To increase customer base.
 To introduce more new products in market in order to serve new customers.
 To make brand image.
SWOT Analysis
Strength
 the company has wide range of good quality of product.
Illustration 2: SWOT Analysis