Business Growth Strategies for R Robson: A Comprehensive Report

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Planning for growth
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Table of Contents
Introduction.................................................................................................................................................3
LO1.............................................................................................................................................................4
LO2.............................................................................................................................................................7
LO 3............................................................................................................................................................9
LO 4..........................................................................................................................................................12
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
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Introduction
The report focuses on finding ways to make a company grow. In this external as well as internal
levels, are taken into account. The chosen organisation is R Robson, which is situated in the
Thames valley of UK and particularly deals with the beauty treatment products. Products made
by this organisation cover a wide age group. But in recent years, the company sales have been
decreased by 0.5%. So this report will focus on how to increase the sales of the organisation and
from where the funds can be collected for this (Aghimien, et al., 2018). Various strategies like
Porter’s Generic strategy can be used to know that the organization should focus on which of the
areas exactly.
Along with this Ansoff's growth matrix can help in knowing that the company is ready to move
into which of the matrix. This will also help in knowing the risk which is connected to market
penetration and development. Many other funding sources which can be approached by the
organisation other than overdraft is also seen. Also, the report will discuss the ways for which a
small organisation can turn into a larger organisation without any inconvenience.
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LO1
R Robson (Guinot) is a beauty treatment organisation; it works in providing the best beauty
treatment products in a wide range. Competitive advantage helps a company t produce an equal
value product, but the cost of the product must be low as compare to other organisation.
Competitive advantage can help an organisation grow. It is seen that the sales of the company
have decreased by 0.5 % from the previous year. So it can maintain and remain uptight by
implementing competitive advantages. The benefit of competitive advantage can be learning
from the Porters generic strategy. This can be very beneficial for the growth of the company. As
it can help in applying the right process and strategy at the right time (Chereau & Meschi, 2018).
Porter’s Generic strategy is being divided into three parts, mainly. This focus on the cost
leadership, differentiation and focus. About the focus can be further being seen as cost focus and
differentiation focus. All theseprocesses have their importance.
In cost leadership, the work is focused on lowering the cost to the organisation. This does not
necessarily mean lowering the cost of the product. Other expenses done by the company in the
name of the product should be reduced to make much more profit. This can be done if the
company has the capital to invest in new technology, low-cost labour and facilities. This type of
strategy contains a risk too, as the option for using capital and lowering the cost is very much
common and can be adapted by other companies also.
The differentiation strategy can be of very much help for the organisation, as producing more
different products front the competitors will help attract a large number of customers. This not
only attracts them but will help in focusing their mindset on the new technology which is being
used by the organisation. For this, the company needs to perform good research regarding the
technology which is being used and also the knowledge about the market should be present
(Danso et al., 2019). Also, along with this, the organisation should have effective marketing and
sales strategies. But the company needs to move forward in a fast and steady manner with the
new product to save themselves from the other competitors who can also apply the same
strategy.
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In the focus strategy, the organisation believes in focussing more on the market to get to know
about the needs and demands of the users. Thus it can be further implemented either by lowering
the cost or by developing more different products from others. All this is done to help with the
focus of the organisation to be stable at a particular point, because then only, it can help in goring
and making a profit for the organisation. The risk in this can be of focusing on only one market,
which means taking up the fight with the other settled up organisation (Desai, 2019). This can be
eliminated by focusing on either cost or differentiation but in various markets.
The competitive advantage can further be enhanced by using PESTEL analysis, which helps in
the knowledge of the external factors which affects the organisation or is capable of affecting the
organisation. R Robson has various external factors which affect it. These factors can be learned
about from the PESTEL analysis. Political factor do hold importance above any organisation as
one party ruling, and suddenly there is another party ruling can change taxes, product export, and
service charge. So this is the common factor which affects every type of organisation. The next is
the Economic factor, for R Robson. This is a major external factor as it mostly affects the B2C
organisation. R Robson deals with the customer on a large base. This factor is concerned with the
economic growth of the company, as well as the interest rate and exchange rate at which the
product is being sold (Dinnie & Holstead, 2018). The next is the Social factor, which again is
important for any beauty treatment organisation. Products related to beauty always had a huge
impact by the age of its customers, population growth and also from the users who are very much
conscious about their products. So the company should work on this factor the most as it directly
concerns with the customer. Technological factor holds importance nowadays for the beauty
product as various radiance technologies have been used and implemented in the beauty
products. This all helps them to retain young, wrinkle-free and so on. R Robson should also work
and looked upon the environmental factor which constitutes to the scarcity of the resources
which are needed in the making of the beauty products. As some customer prefers organic
products, so for this, the environmental factor is main to be looked upon by any beauty treatment
product selling organisation. Legal factors also affect the R Robson as it has the health and issue
sector in it, which is focused by any cosmetic organisation. If these factors are looked upon
thoroughly and worked upon, it can take the sales of the company to a higher level.
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To further evaluate the growth of the organisation, Ansoff’s growth matrix can be applied and
used. The Ansoff's matrix is divided into four parts which focused upon market penetration to
development Product development and diversification. Market development refers to targeting a
new market with the same beauty product. Here the new market can be a range of customers or
elderly age people or younger age people who have never been looked up before (Gurcaylilar-
Yenidogan & Aksoy, 2018). In market penetration, everything is the same, selling the old
product in the old market only. This not necessarily can help in the boost of the profit. Next
comes the Product development, in which new products are being sold to the existing customers.
This can be very profitable for the R Robson as they have a fan base of their own, and the
customers will buy the product. The riskier is the diversification for the organisation as in this,
the organisation tries to sell a completely different product to different customers. This can either
benefit the company or can create a huge loss for the company. Market development is more
suitable for the R Robson, whereas the company is very much established and can try
diversification as well by developing a package of 2-4 products for a completely different age
group.
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LO2
For any organisation to invest in new technology, they need funds. Funds are needed for other
activities also, which includes marketing, advertising of the particular product. Various sources
of funds are available for every small to large organisation. These funds might not be fully in
favor of the company but can help the organisation in the time of need. Some of these methods
or places to get funds are family, relative, friends, angel investor, bank loans, and overdraft
(Gure & Karugu, 2018). These are some of the common funding providing facilities for the small
or larger organisation. All these funds are very much essential for an organisation to grow.
Friends and family are the first options when any small organisation thinks of asking for the
money. Also, most of the resources at an early stage are utilized from the personal funding only.
This type of funding is flexible when it comes to the repayment. After the personal funding have
been completed, mostly, the second option is to go the friends and relatives. Also, it is beneficial
as the friends and family do not take up an interest in the operations done in the company.
Interest rate is not preceded on this type of funding. But one of the major drawbacks of this type
of funding is the chance of destroying the relationship between the two parties. So it can only be
avoided by giving the money back as soon as possible.
Bank loans are the easiest and the common funding providing an organisation which anyone can
think of, and this is usually provided at an interest rate, and for the funding, the organisation has
to put something at stake. This can be the site property papers. Shares of the company are not
used here (Kasasi, 2018). But the major drawback in this is that the startups are not easily funded
by the banks, which can cause major effect for the small startups and also if the amount is not
paid at the given time, the interest rate increases and further the property can be seized.
Angel investors are more preferred as they belong to the financial background; Also, they have
an interest in the company and knows exactly about the company and its processes. But in
exchange for funds, they take up company shares (Pratt & Hyder, 2018). It is more of buying and
selling logic which is being used here, as in this the person is buying the shares. Also, it is seen
that angel investors are present in those companies whose potential level is very high.
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Overdraft is also seen as the best short-term option in which the organisation can borrow the
money from their cheque account even if the money is not present in the account. This can be
seen as borrowing the money. In this interest rate is very much low as compared to other loan,
but it can be effective in the short term only, and the borrowed money is being paid back through
the money credited in the account which is the major drawback. This is only successful if the
persons earn a whole lot of money.
Venture capitals are similar to that of angel investors. But angel investors are individual whereas
venture capitals can be considered as entities which help the organisation. The workings of
venture capitals are very much similar to the angel investors, and they also want a stake in the
working of the company (Wikirefu, 2018). This means they need to know what is going on in the
company and how it is being escalated. The difference is that they require an exit strategy
beforehand, i.e. exit strategy is required before investing or providing the funds to the
organization.
Crowdsourcing is one of the ideas which has boomed and will always bloom. This specifically
refers to the pitching of the idea and then working upon it. The idea which is being presented
should have some economic value and should be benefitted and earn profit in the end
(Zacharewicz et al., 2018). All this is done to pitch the idea so that some organisation which
provides funds can select the idea and provide the fund. The drawback in this is that it is
somewhere difficult to make an organisation understand.
These are some of the funding sources seen for the help of any big or small organisation. The
drawback for each of the organisation and their steps for providing funding are also discussed.
Along with this, it is seen that angel investors are best for R Robson and can help in the growth
of the company.
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LO 3
Business planning is the key for the business to exist in the market. Every successful business is
based upon and runs according to the planned strategies and working model. Reviewing of
business plans are necessarily done by the business to ensure that the needs of the plan are met.
Most of the strategies include reviewing the real-time growth based on a regular basis of the
organisation (Noe et al., 2017). Once the strategy is reviewed for business development, the
progress is identified in the organisation. It also helps in reviewing the techniques and making
improvements in the business model and development.
Importance of the current business plan
The current business plan of R Robson plays a very important role in the current working of the
organisation. Current business plan is the basis for the investors to see the organisation as a
potential investment for them. The R Robson uses its current business plan to mostly focus on
future funding for the organisation. The business plan is currently working focuses on
completing the tasks and projects that are being processed in the company. It provides a better
vision of the current working and determining the potential of success of the organisation.
The major role played by the business plan is the allocation of the resources in the organisation
throughout the implementation of the techniques to complete the processes of the business. The
main aim of the plan is to attract new investors and investment in the business to include major
changes in the organisation without any shortage of investment (Achtenhagen et al., 2017). R
Robson includes a regular planning cycle which includes the updations of the processes in the
current working business cycles. The current business plans also help the organisation to perform
and assess the real-time performance of the employees against the targets set by the organisation.
As R Robson is an organisation which deals with making beauty products, it is important for the
organisation to monitor the performance of the individuals based on the targets set by the
company. The discussion on the current working organisation helps the organisation to assess the
future investments from the banks, investors and potential buyers of the shares of an
organisation. The reviewing of the current business plan provides a path that needs to be
followed by the organisation to achieve the set targets.
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Contents of business plan
The business plan of the organisation includes the working and the framework of the
organisation. It also includes the planning that has been implemented in the organisation from
the beginning of the planning cycle (Krueckeberg, 2018). The plan needs to focus on the
working of the techniques and technology which are used according to the current business plan.
The plan should include the following factors for R Robson that is needed to form a successful
business plan.
 Objectives of marketing: A product and the information about the product should be
shared by the organisation to the people and their customer. Based on the product details,
the marketing strategies of the organisation are discussed to present the product in the
market. It follows the working of the marketing strategies to improve the business plan
and the growth of the organisation.
 Information about the operations: The basis of the marketing strategies is designed
based on the information about the dependency of the business on the suppliers of the
business essentials and equipment. It is also responsible for providing the equipment for
the operations performed in the business model.
 Financial Information: This factor in the business model plays an important role in an
organisation. It measures the profit and loss forecast based on the sale and management
of the organisation. This also affects the financial status of the working business model
and can be chosen to be altered according to the working of the business model.
 Targets and Objectives: The future or predictive working model is based on the targets
and objectives which are defined by the management based on the present working status
of the employees.
The business plan of the R Robson includes the targets and the aim of the organisation which it
needs to achieve before a set period. The plan also includes the funding which they already have
and which can be gained from introducing the plan to new investors. The details include the
history of the organisation and it is mostly related to the financial information of the business
organisation. The financial information and status of the organisation help the investors to learn
about the profits and losses of the company. It defines whether the investors will invest in the
company or not. Individuals are hired separately to evolve the business and measure the
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instruments and factors that affect the financial status of the organisation. The financial
information about the organisation also explains the type of product and its services related to the
budget assigned based on the financial status of the product. Also, the place of the product in the
market is defined by the financial status and the price of the product in the market.
Improved Business Plan
Through the study of the factors that affect the business plan of the organisation, mainly which
includes the financial information of the organisation. The individual business plans for the
organisation and its department can be made separately for each department. This is a complex
exercise for the organisation, but it creates a better and improved business plan considering the
finance as a major part of the business development plan. It also distributes the funding to an
equal amount and according to the requirements of the department. Each unit and department’s
budget is set according to the need of the department and how much the organisation can supply
to the department. Seeking and focusing on the discussed factors provides a better business plan
for the organisation related to the current or previously working business plans (Jun et al., 2017).
This step also includes the task to measure and monitor the use of the funding and finances in the
organisation. This also includes the expenses and income made by each department of the
organisation to create a better overview of the business development plan.
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