Business Growth Plan: Red Rock Entertainment, UK Film Finance Company

This report analyzes the growth strategies for Red Rock Entertainment, a UK-based film finance company. It examines key considerations for evaluating growth opportunities, including resource-based views and Porter's generic strategies. The report utilizes Ansoff's growth vector matrix to explore market penetration, product development, market development, and diversification strategies. It assesses various funding sources for business expansion, including their benefits and drawbacks. A business plan is developed, incorporating financial information and strategic objectives. Finally, the report evaluates exit and succession options for small businesses, detailing the advantages and disadvantages of each approach. The report aims to provide a comprehensive overview of growth planning, financial analysis, and strategic decision-making for small and medium-sized enterprises (SMEs).

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAINBODY....................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Examine the key consideration for evaluating the growth opportunities..............................4
P2 Critically examine the opportunities for growth with the help of Ansoff's growth vector
matrix..........................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Examine and evaluate various sourcing of funding through which enterprises generate
capital..........................................................................................................................................7
TASK 3............................................................................................................................................8
P4 Develop a business plan for growth that involves financial information and strategic
objective......................................................................................................................................8
TASK 4..........................................................................................................................................11
P5 Assess exit or succession options for small business explaining benefits & drawbacks for
each...........................................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Small scale business unit can be defined as an organisation which works with their
available limited resources and limited capital so that they will able be able to reach their goal
within stipulated time period in competitive edge. In present business situation, purpose of SME
is quickly increasing day by day due to increment of their contribution towards the economy of
UK (Bridge and Dodds, 2018). The following report is based on Red Rock organisation.
Red Rock Entertainment is a UK based film finance company, situated at the world
renowned Elstree Studios in Borehamwood, home to the absolute greatest TV shows on British
TV and the studio of decision for some fruitful British movies. Its annual turnover is around
£10.23 Million and total 50 employees works under this company.
This is a specialist in technologies workforce solution where it enables the business
changes. In this present assignment discussion about key consideration for evaluation of different
growth opportunities for small scale scales company is studied. Along with it, use of Ansoff's
matrix is covered in order to use the mentioned opportunity with respect to business
organisation. Evaluation of potential; sources of funding which is available for the business
along with benefits and drawbacks is also covered in this report. A business plan which includes
financial information and strategic objective is devised in order to scale up the business. At the
end of the report, assessment of succession options for small business is explained with its
benefits and drawbacks.
MAINBODY
TASK 1
Examine the key consideration for evaluating the growth opportunities.
In order to achieve growth and success at market place, for an organisation several option
are available by which they can full fill this objective. In relevance to selected firm, the HR
professional make sure that they are adopting right measures along with approaches in order to
acquire the positive result with the help of marketing tool such as porters generic strategies (Yu,
Yanxu and Bojie, 2019). It is a time consuming process even though it is used by business
entities for getting ideas in terms of dealing with competitors. Along with it by focusing on this
growth opportunity, it will become easy for the manger to use resources and capital at optimum
level.

Resource-Based View
The center thought of the hypothesis is that as opposed to taking a gander at the serious business
climate to get a specialty on the lookout or an edge over rivalry and dangers, the association
ought to rather search inside at the assets and potential it as of now has accessible.
As indicated by RBV, it is fundamentally simpler to misuse new open doors utilizing assets and
abilities that are now accessible, instead of securing new aptitudes, qualities or capacities for
each unique chance. These assets are the principle focal point of the RBV model, with its allies
contending that these should be organized inside hierarchical procedure improvement.
Valuable resources: The substance of a company's assets is a significant thought inside
asset based hypothesis. Substantial assets are assets that can be promptly observed, contacted,
and evaluated, for example, actual resources, property, plant, hardware, and money. Conversely,
elusive assets are assets that are hard to see, contact, or measure, for example, the information
and abilities of representatives, a company's standing, and an association's way of life. In looking
at the two kinds of assets, immaterial assets are bound to meet the rules for key assets (i.e.,
significant, uncommon, hard to emulate, and no substitutable) than are unmistakable assets.
Chiefs who wish to accomplish long haul upper hands ought to along these lines place a
premium on attempting to sustain and build up their organizations' immaterial assets.
Capabilities: Capabilities are what the association can do dependent on the assets it has,
another vital idea inside asset based hypothesis. A decent and simple to-recall approach to
recognize assets and capacities is this: assets allude to what an association claims, abilities allude
to what the association can do. Abilities will in general emerge or extend after some time as a
firm makes moves that expand on its key assets.
Core competences: Some organizations build up a powerful capacity, the interesting
capacity to improve, update, or make new abilities, particularly in response to changes in its
current circumstance. Said in an unexpected way, a firm that appreciates a unique capacity is
gifted at persistently changing its variety of abilities to stay up with changes in its current
circumstance.
Porter generic strategies: it is a growth strategic tool used by the management team of
company in order to analyse and evaluate the various strategies to gain competitive advantage at
marketplace. For effectively and optimal utilization of resources, company use porter generic

strategic. Which h includes four essential part and these all are obstinate below within the
context of chosen firm:
Cost leadership: In this growth strategy, company uses cost advantages by taking and
adopting the cost prices of product at marketplace. It is adopted by the company with the purpose
of enhancing the shares and revenue of company along with brand awareness. Apart from this
another benefits of this strategies is to influence and attracts the new customers as well as market
at larger scale. In relevance to selected firm they, use this strategy in order to combat with the
competitive rivalries within same business unit. As well as from this strategy they will be able to
grab moire new end users towards their services or product at larger and broader scale.
Differentiation focus: in this companies emphasis on producing the similar products with
with some added features, quality or factors that make product differentiate from the parent
product. It is important to produce creative and unique goods, then only company will able to
influence and grab the peoples towards their brand (Birkin, Clarke and Clarke, 2017). This will
aids company in achieving the goal and objective for long term period. In context of Red Rock
consulting, they need to focus on these strategies as it will provide them proper guidance and
shows the path to implement and execute the strategies and tactics in effective manner.
Focus: in this company have made choice between differentiation and cost leadership. Its
upon company to chose right and appropriate strategies according to their requirements or
suitability which supply benefits to them (Piro, 2016). In reference to Red Rock, they adopt
differentiation strategy as it assist them in influencing and grabbing the new end user or for
making new consumer base as well as it supports them in formulating new ideas and thoughts in
order to deal with other players of market.
After brief analysis of above strategies is it has been found that it is essential to have
awareness about strategies that provides opportunities to company for exploring new
opportunities within market. With the help of above tool it becomes easy for management team
to device strategy which an enterprise can used at the time of promotion or marketing. A proper
market research is to be carried out so that appropriate decision is being interpreted without
lining any problem.
Impact of PEST factors
Political Environment Analysis: The world of politics of a locale and nation to which the SMEs
firms relates will have more prominent effect on its development and manageability. The public

authority assumes a crucial function as the organizer, advertiser and controller of business firms.
The type of government position is a significant part of world of politics and political strength is
a fundamental factor impacting the development of business.
Economic Environment Analysis: The financial climate of business alludes to in general
condition of the nation/district's economy. It has huge effect on the business structure and benefit
of individual firms. Monetary components allude to their character and bearing of financial
framework inside which the firm works.
Socio Cultural Environment Analysis: The socio social element of the climate comprises of
customs, ways of life and qualities that describe the general public wherein the organizations
work. The way of life is the after-effect of complex factors, for example, religion, language,
instruction, moral convictions and so forth
Technological Environment Analysis: Technology and business are interrelated and associated.
Innovative changes bring numerous new open doors just as causing danger by making existing
frameworks out of date. The changing innovation may influence the interest for a company's
item and administrations, its creation cycle, and crude materials.
BCG Matrix
The BCG framework puts every item an organization offers as per the development pace of the
business and the overall piece of the pie the item controls.
Stars: Products that appreciate a high relative situation as far as piece of the overall industry in a
developing business sector are alluded to as stars. They require enormous speculations to keep
up the piece of the pie, however regularly produce enough income to cover their costs.
Cash cows: It produces significant benefits for their organizations since they require little
speculation to keep up their high portion of the market. Directors ought to redirect benefits from
treasure troves to help shield piece of the overall industry of star items, grow new items for
developing business sectors, or turn battling items around.
Dogs: Low piece of the overall industry items that show low development is alluded to as
canines. Chiefs ought to limit the quantity of canines in the item portfolio.
Question Marks: The most alarming quadrant on the BCG framework is loaded up with items in
high-development showcases that control generally feeble situations inside their business sectors.
These items, called question marks, require huge speculations to create.

The benefits and drawbacks of collaboration
Benefits:
 Better Division of Labour
 Greater creative input
 Increased employee morale
Drawbacks:
 Too many Faux leaders
 Conflicts in working styles
 Lack of trust among team members
Critically examine the opportunities for growth with the help of Ansoff's growth vector matrix
Ansoff's matrix: It is a strategic growth model that is used by business entities in order
to identify the various prominent strategies that are related with the market or product growth of
company as well as to analyse the competition prevailing in present market place. It assist
company to make effective plan and for the future development and growth (Anguelovski,
Irazábal‐Zurita and Connolly, 2019). In context of chosen firm they use this framework in order
to analyse the opportunities at marketplaces for expanding their business unit. That are obstinate
below:
Market penetration: This growth strategies mainly focused on expansion the business
with existing product at current marketplace. This strategy will provides a strategic edge to Red
Rock company, as it is associated with low risks. This is beneficial when a company wants to
expand its product line as well as by reducing the cost process according cost leadership strategy
for increasing the market shares and revenue without facing any challenges (Sparkman, 2018). In
context of chosen firm, it has been analysed that this strategy is not good for them as they wishes
to expands their business at different location of London as well as the competition level in UK
market is high thus its is not appropriate for them to adopt this strategy.
Product expansion : This strategies of business growth is acute on provision of new
product with existing market. This will helps company to meet the demands and preferences of
people in existing & revenue generating market to significantly enhance their sales. It is carried

out for engaging peoples so that the switching rate will be maintained. Risk associated with this
strategy is moderate.
Market development : This is also known as market expansion. The main of this strategy
is to offer existing product at different new location provides opportunity to company for
influencing and grabbing new end user at new marketplace. This will helps company in
increasing the market shares and revenue generation gaining entry at new market place. This
leads to to enhancement of sales and profit margin. In context of chosen firm as it is a small
enterprise, so for them it is a great opportunity to expand their business at new location of UK or
other nation with the help of this business growth strategy.
Diversification: This is another business growth strategy in emphasises on stipulation of
new product at new marketplace. This strategy is considered as a risky strategy because in this
the chances of business failure is high related to the execution of diversification (Kumar, 2016).
As loyal consumers of new location will not easily accept the new product. As well as this will
acts as expensive for Red Rock company as it required several strategy for promoting new
services or product of company.
After evaluating the above mentioned strategies, it has been analysed that the market
development would be the viable strategy for Red Rock company for attaining business grand
success. This is because the services offered by this company is well known so they have
opportunities to serves that at more locations of UK and other nation so that they will able to
become successful in execution of this strategy as well as in enhancing the market shares and
revenues.
Conclusion
Based on above analyses, it can be concluded that; for SME, it is necessary to do BCG matrix
analyses, Ansoff matrix analyses and analyses of impact of PEST factors will support Red Rock
to position its strategies in competitive market.

TASK 2
Examine and evaluate various sourcing of funding through which enterprises generate capital
In a organisation it is crucial that they posses adequate amount of funds in order to carry
their functions in a smooth and effective manner (Patel, Liu and Cheng, , 2016). For this there is
need to evaluate the different sources of funds that are available with a organisation in order to
arrange it for the purpose of carrying on the necessary functions. Some of such sources are
mentioned below:
Venture capitals/angel investors: These are the sources of finance that are assisting
business to provide funds for a specified time period. Venture capitals are providing business
according to the attractiveness of growth opportunities:
Advantages: There is establishment of a mutual relationship between the entity and
investor.
There is a strong Network connection that is encouraging new start up establishment their own
business.
Disadvantages: Venture capitalise may not posses the required specialisation and not
able to assist the business to participate in the process of decision making (Forbes Adam and
Massagé, 2016).
Bank loans: It is one of the mots popular sources where banking as a institution is
offering the require financial resources to organisations and for this they are charging interest. In
context of Red rock this is a attractive source of raising money if there is reasonable interest
charged by banks;
Advantages:
It is a easy method of raising money as there is a mutual agreement that is agreed by both
bank and the entity that leads to faster process of raising money.
There is a legal contact that is build up so there is no chances of future conflicts as all the de tails
relate to rate of interest, time period are clearly mentioned in the contract.
Disadvantages:
Banks are generally charging a very high rate of interest that my not lead to a higher
feasibility for Red hock as it might increase the financial pressure.

Sometimes banks are demanding a collateral security which might again lead to difficulty for
growing organisations like Red hock to make arrangement of a collateral security for generation
of funds from bank.
Retained earnings: It is a method where organisations are focussing on use of their
already saved earnings in this case red hock can use the efficient sources of savings of the
organisations as a preterite sources of funding (Burkart Besiou and Wakolbinger, 2016).
Advantages:
It does not create any type of financial burden on the organisation. There is no burden of
interest that is created on organisations for the purpose of paying interest which leads to higher
financial pressure for paying in form of higher interest rate.
Disadvantages:
It is a very uncertain sources of raising money as organisations may and may not posses
the required amount of retained earnings. Hence, there is no reliability of this source as a method
of generating finance.
TRADE CREDIT: Some small businesses may have providers ready to sell using a loan.
Such credit may go somewhere in the range of one month to a quarter of a year. This is a
generally excellent technique for little organizations to satisfy momentary financing needs. This
is a modest technique for money for any independent venture.
PRIVATE EQUITY FIRM: Private value is a sort of value capital that isn't recorded on
any stock trade. These organizations raise assets from financial specialists. It at that point
contributes these assets to purchase capital of promising new companies and private ventures.
The disadvantage of such money is that the private value firms will secure a controlling position
or considerable minority position in an organization and afterward hope to amplify the
estimation of their speculation.
CROWDFUNDING: Crowd subsidizing is a generally new strategy when we think
about wellsprings of money. It is a technique for raising assets by obtaining a limited quantity of
cash from an enormous gathering of individuals.

TASK 3
Develop a business plan for growth that involves financial information and strategic objective.
Business plan: it is a documentary framework that is used by the business entities in order
to understand and evaluate the different objectives of company. It is created for the specific
period of time for attaining some set objectives. In which there are few strategy that need to be
considered in devising the business plan and these are obstinate below:
Vision and mission: To support pace with technological progress and development is the
main vision of company. And the mission of company is to offer reliable jyhjyservices at global
level. And with the help of their management team and manger it would be possible to attain this
mission along with it they also provides some projects to clients in order to increse the goodwill
of brand at broader scale.
Goal : To create brand awareness and provide good quality services to clients is the main
Goal of Red Rock Consultant.
Objective: Their aim is to acquire more client so that their services will become
recognizable among other IT and MNC companies too. As well as to expand business at
international level by combatting with other market players.
STP approach:
It is a marketing tool used by company with the purpose of identifying and to reach out
the prominent consumers (Hollander, 2017). In context of selected firm, this analysis is
discussed below:
Segmentation: In this the market is sub divided into small segments so that company will
able to reach out its all consumer in effective way. This can be on the basis of geographic,
behaviour, psycho-graphic and demographic. In context of Red Rock, they divided their markets
on the basis of Psycho-graphics variables. In this they mainly focuses on investors, working
peoples bases on attitudes and status of people.
Targeting: In this company keen to target the segmented market. In which they mainly
provisioned on investors, business professionals, and many more based on the attitude and
statues. And with this they will be able to reach out their whole segmented peoples. This implies
increase in sales and profit margin of company.
Positioning: The selected firm try to find ample number of strategies. With the help of
this they will able to reach to those who they are targetted. In which they create the values of

brand and it has been seen that the consumers of IT are influenced by images or its position at
marketplace.
Financial projection- It is the main important section of company that need to be
considered by the company for managing the financial statements of firm. It includes all those
activities which are related with the funds, investment cash outflows and inflows (Jentoft, 2017).
This will aids company to figure out that they are in profit or loss or they are able to open new
venture at new location or not. In context of chosen firm they formulate their budget and cash
flow forecast for the measurement of profit and loss.
from above discussed cash flow, it has been evaluated that company is looking for
gaining more profit by expanding its business at international level. In which the above cash flow
render that how the finance manger can mange the cash outflow and inflow of new ventures. For
future time this cash flow suggest them they will received positive outcome if they expand their
business and this business plan will be proven beneficial for them.