Riva Construction: A Comprehensive Report on Business Growth Planning

This report provides a comprehensive analysis of Riva Construction's business growth strategy, focusing on planning, market analysis, and financial strategies. It begins with an introduction to the importance of planning for organizational growth, particularly for a SME enterprise like Riva Construction, which is bidding for a government construction project. The report then delves into business development, competitive advantages, and the application of Porter's Generic Model, including cost leadership, differentiation, and focus strategies. Furthermore, it incorporates PESTEL and SWOT analyses to assess the macro-environmental factors and internal strengths and weaknesses affecting the company. The report explores growth opportunities using the Ansoff Matrix, emphasizing market penetration, product development, and diversification strategies. Finally, it examines various sources of finance, such as bank loans and crowdfunding, essential for funding the company's projects. The report is a detailed analysis of Riva Construction's business plans.

Planning for Growth

Table of Content

INTRODUCTION
Planning is the process of creating a proper roadmap for the purpose of achieving
organisational goals and objectives related to growth and overall development of the economy in
general. If an organisation wants to grow and prosper, it will have to plan necessary things in an
effective way, these things includes framing a long term plan for the business, along with right
kind of objectives that will allow efficient functioning of the business in an effective way.
Planning provides a framework for not only managers as to where the leaders want take their
business towards, but it also helps employees for an effective implementation of various types of
plans and policies. This particular report is based on a SME enterprise called Riva Construction
which is in the business of construction the company will bid for Re-roofing of the Balmoral
court, the bid for the project will be 150,000 Pound (Barbour and Deakin, 2012).
The report will throw some light on the Government construction project that the
company is bidding for, it will include various aspects of bidding for the project and the benefits
the company can have through it. Various sources of finance that are essential for the
development of business will also be discussed in detail, under the project.
TASK 1
P1
Business development is an important aspect of any organisation. A company cannot plan
and effectively manage its business, if it is not having right kind of operational as well as
functional managers for taking business forward in an effective manner. Riva Construction is one
of the construction company that provides various types of construction services to different
builders as well as contractors for the purpose of growth and development. The company is also
indulged in wholesale export express as well as import services. The company is engaged in the
services of providing a range of solutions from construction, incorporation of assets as well as
lands, selling and purchasing of Land as well as Buildings in an effective way. Riva construction
company is engaged in Na Activity and currently company is in Active status (Riva Construction
Company Private Limited, 2018).
Competitive Advantage
Riva Construction is planning to implement various strategies that will allow it to grow
and prosper in an effective way. Riva construction mainly provides its services to various large
3

corporates as well as builders. There are sort of systems and plans made subject to break down
the cost of activities and services identified with development contracts. There are some market
changes and pattern variety occurring in general business setting which influence the tasks and
administration of business.
Porter Generic Model
This is the model which breaks down the basic angle regarding creating and formulating
plans for focused market investigation and patterns. This model was presented by Professor
Michael doorman. By applying this model managers and accountants have the capacity to
understand the competitive analysis for a proper as well as effective analysis of rivalry of
organisation (Brinckmann, Grichnik and Kapsa, 2010). Cost Leadership Strategy: Under this, the company will try to become a cost leader in
the market by reducing the cost of company and increasing the overall profits in the
longer run in an effective way. Through this a higher percentage of market share can also
be received. Differentiation Strategy: Under this, Riva construction will try to offer certain services
that will allow the firm to differentiate itself from others in an effective as well as
efficient way. Under this the products as well as services offered by the company are
different than the current goods as well as services offered by existing organisations,
hence giving a competitive edge to the organisation. Focus Strategy: Under this, the company will try to Focus on current markets and
existing products and services, the organisation will try to understand the dynamics of
current markets and will focus on providing goods and services by making necessary
improvements within the same. Cost Focus: This kind of strategy can be used by the company for enhancing the overall
growth by focusing on cost structure, Riva construction can bid with lower price for the
construction project, if it’s costing for the project can be minimum, and thus chances for
winning the bid becomes even brighter.
PESTEL Analysis
It assesses the various macro environmental factors that may have the impact on the
growth as well as development of the business in the longer run.
4

 Political: This refers to the political situation that exist within a region and thus it is
highly essential to take care of the political factors that may exist and may hamper overall
growth and development of the organisation. It includes the fiscal policy, budgets and
taxations etc. Economical: The economic situation of a country decides the level of consumption and
economic growth, which is a deciding factor for the growth of business in the longer run. Social: This factor fundamentally investigates the social components which bound the
conditions. There are changes as far as living index and crimes, maturing population,
enthusiasm of individuals towards putting resources into properties and lands are broke
down in this specific circumstance. Technological: UK is one of the quickly developing country as far as progression and
innovation for better understanding and dealing with the activities of association. New
development advancements influence the working practices in the building business
developing a greater number of segments frameworks subject to components instead of
the building site. Riva Technology can bring new sorts of technology within the
organisation for the purpose of effectively reducing its level of cost and winning
government Project bids. Legal: Rules and enactments are characterized as far as working and dealing with the
development associations which essentially connected with building market designs and
structure in lawful terms (Chapin, 2012).
 Environmental: Increasing utilization level of high carbon dioxide discharge items and
instruments are influencing the regular habitat. There is a direct impact on the
environment and thus the company is making necessary policies for the purpose of
effectively dealing with the issue of environment (Christofakis and Papadaskalopoulos,
2011). Riva Construction is making sure that environment does not get affected by the
construction project that it carries like building roads or construction of buildings etc.
SWOT Analysis
Strength Weakness
Rive construction company is efficiency is
number one factors that can help in attaining
maximum profit. It relies on the strong project
The biggest limitation of these types of
companies is that they only work with one type
of clients. Sometime, poor decision in relation
5

management skills. to project management planning is also
considered as drawback for the company.
Threat Opportunities
It has been found that sometimes threats are
not controllable for the company. It cannot stop
a decline caused by a decreasing economy
during the period of time.
These types of companies should always
lookout for the more customers. They should
leave this up to fate. It has been found that Riva
company always tried to create latest
opportunity in the market.
P2
The growth opportunities that exist in a market can be analysed for the purpose of growth
and development of the business in an effective as well as efficient manner. Riva Construction is
constantly keeps an eye on the market and the changes that are taking place within the
environment. The company is engaged in offering building, management and technical support
services for civil works, industrial plans and real estate developments. The company caters to
iron and steel, chemical, petrochemical and pharmaceutical industries (Company Overview of
Riva Construction Limited, 2019). Thus it is quite essential that right kind of strategies shall be
framed for the purpose of taking business forward.
ANSOFF GROWTH VECTOR MATRIX
It is a technique which has been used by the business organisation to measure the risk and
various types of uncertainties that are there in the market. The four strategies involved in Ansoff
growth matrix are market penetration, market development, product development and
diversification. The selection of right kind of strategy depends on the manager of the company.
6

(Source: Igor Ansoff, 2017)
Market Development: Under this kind of strategy, the company will try to innovate and
do business in a more effective way, this will give company an edge over the other competitors
and thus a higher growth can be seen over period of time.
Market Penetration: In this market development system, associations manage
comparable items in existing markets by utilizing effective advertising and special procedure.
The principle goal of this procedure is to infiltrate in current market by enhancing nature of items
so as an ever increasing number of clients can think about it. It’s a best procedure to develop
business and accomplish wanted results. This system will help to interrelate the issues and
matters which occurs because of a change in demand (Eddleston, K.A. And et. al., 2013).
Product Development: This square manages utilizing strategies in which quality and
highlights of a particular item get re-improve which bolsters association to stay effective under
skilful market. Alongside this, so as to create or enhance items firms can secure distinctive
instruments and systems which are imperative for fulfilling clients' needs in the most ideal way
and accomplish authoritative destinations.
7

Diversification: Under this the company tries to enter into new markets, by expanding its
business in them, this can happen by introducing new sorts of products and services in the new
markets. This will allow organisation to develop its business by growing their market share. It is
quite difficult for the organisation as it has to target new kind of audience for the purpose of
growth (Grover, Bokalo and Greenway, 2014).
The best strategy for the company can be Product development, it shall concentrate on
improving the various aspects of the products that it offers and the same can be improved in an
effective manner.
TASK 2
P3
There are various kinds of finance sources that are being available for the organisations
which are operating in the market. Capital has to be raised by the business managers for the
purpose of growth and therefore, the company would want to raise funds with the least possible
cost for itself (Balli and et. al., 2014). The funds will enable a company to execute its projects in
a more effective way. The refereed to organization required assets for working the action of an
undertakings in solid way for longer time frame. UK government need to make viable strategies
and solid acknowledged to make arrangement of money to medium and small level of business
those are done due their business that are working for getting dependable way. The company is
planning to bid in re-roofing of Balmoral court, it will cost company around 150,000$, The
project will give company a boost and a recognition as it is a government project. It is
fundamental for each business person to consider profitable sources of capital that will help with
working whole exercises and task of big business in solid way. These sources differ on the basis
of risk and various other factors; these has been discussed in detail as follows:
8

(Source: Sources of Finance, 2018)
Bank Loan: It is a loan granted by a commercial bank to company at a specified interest rate and
the term of loan can range from 1 to 10 years. The loan provided is secured with some sorts of
collateral. Advantages: The advantage of this kind of source is that funds can be accessed easily and
on time. The rate of interest is also not too high and company can pay back money in
easy instalments as well (Yousefi, Shafaghat and Shakeri, 2014). Disadvantages: If the company opts for insecure loan, then it has to face a higher level of
interest rates. Which is quite distressing factor for Riva Construction?
Crowd Funding: This happens to be successful practice with regards to subsidizing any of an
individual undertaking or venture which will be considered for raising capital for wide scale
business. It is predominantly considering as one of the compelling utilization of little measure of
capital from different departments. It comprises of requesting funds from relatives or from some
small business concerns etc.
9

 Advantage: The funds are available with no addition fees, and it is simple as well as easy
way to raise funds (Sreedhar and et. al., 2018).
 Disadvantage: There will be various kinds of problems like, it affects the goodwill of
business, if the business will not perform well in an effective as well as efficient manner.
From the funding options, crowd funding is better option to adopt by Riva construction
company while raising funds as raising funds from such source assist the management in
executing planning without getting any interference of investors. This will increases the
effectiveness of their decisions related with growth and expansion.
TASK 3
P4
Marketable strategy is identifying as an effective procedure which is apply by superior of
Riva Construction in order to compass what should be achievable to carry through targets. This
is essential instrument for enlargement of Riva Construction.
Executive summary
Riva Construction is a small organisation which handles providing best printing
arrangements. It is compelling for improvement of processed realistic region. This association
was established in 1968. It creates most new printers. They have organization with Kala, Epson,
Caldera. As the management of firm have decided of Re-roofing of the Balmoral court, through
which they wants to expand their market share in construction sector of UK.
Mission: “To provide best fulfilment to customers. They come with promotion and need
which goes for enlarging advantages.
Vision – The vision of Riva construction is to adopt world class technology in their
work so that they can construct world class buildings in the world.
Strategic objectives: It can be attained with the essential of Savvy destinations. It
implies above talked regarding objectives is quantifiable, achievable, particular, practical and
time bound. The key target of Riva Construction organisation is attempting in order to perform
business objectives and targets, so they design to enlarge their advantages from twenty percent
to half in next 2 years.
Products and services
They are providing furnishing administrations about with printing. They have mixture of
10

printers and many other equipment’s which are of just about recent innovation.
Internal analysis
It is a main and important part which is identifying the strength, weakness, opportunities
and threats of the company. These are determined as below:
Strengths
They have cooperation with various well-
known and famous brands this supports to
maintain faithfulness of customers.
As stage of precocious encourage is
persuasive, at that component this is
feasible for improvement of business
organisation.
Opportunities
 This association deal in minor
marketplace of Britain, so they should
enlarge their business functions and
activities.
 They should increase their business
operations in other segments too.
Target market
There are different progressions which are ordered to advertise. At small level target
customers are digital bistros, family purposes, PC shops and many other. Target market of the
company such as schools, diversion sources, commercial organization and many other they are
origin which applying printers habitually.
Financial information – through re-roofing the balmoral court the company wants to
develop their market presence in the UK. So that, a large number of customer attracts towards
their services. For developing the market presence, firm have to adopt some latest technologies
for performing their business operations. For adopting such things, management have to raise
funds which can be possible through taking financial supports from banks, financial institutions,
angel financing etc. As the firm wants to develop their market-presence the firm have to use
online platform so that a large number of builders will be aware from their services. The
management of firm has estimated a budget for adopting some techniques which is given as
under:
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
11

Implementing
technology cost
15000 - -
Promotional expense 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
It has been identified from the above budget that the management of Riva construction have to
make focus on the expenses of operational activities so that they can invest these funds for
promoting their services. With the help of this, they will easily attract various builders and
customers towards their services. The firm have also invest more money so that they can
maintained a catalogue of their services which are offered by them to the customers.
Cash flow statement
Cash flow statement of Riva construction is as given below:
12