RL Maynard: Growth Opportunities and Business Expansion Strategies

This report evaluates RL Maynard's growth opportunities within the property construction services sector. It begins with key considerations for assessing growth, including competitive advantages and environmental analysis using PESTLE. The report then applies Ansoff's growth vector matrix, recommending a product development strategy. It explores potential funding sources, benefits, and drawbacks, followed by a proposed business plan for expansion, incorporating financial information and strategic objectives. Finally, the report examines exit and succession options for the business, considering their advantages and disadvantages. The analysis emphasizes strategic planning, market analysis, and financial considerations to support sustainable business growth and expansion within the construction industry. The report uses the BCG matrix to determine the status of different divisions and products of the company.

Planning For Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Key considerations for the evaluation of growth opportunities and justification.............1
P2 Opportunities for growth applying Ansoff's growth vector matrix. .................................5
M1...........................................................................................................................................6
D1...........................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Potential sources of funding available to businesses along with their benefits and
drawbacks...............................................................................................................................7
M2.........................................................................................................................................10
D2.........................................................................................................................................10
TASK 3..........................................................................................................................................10
P4 Business plan for growth that involves financial information and strategic objectives for
scaling up a business............................................................................................................10
M3.........................................................................................................................................14
D3.........................................................................................................................................14
TASK 4..........................................................................................................................................14
P5 Exist or Succession options for a small business along with benefits and drawbacks...14
M4.........................................................................................................................................16
CONCLUSION..............................................................................................................................16

INTRODUCTION
Business and growth planning is analysed as activity which relates to analysis of various
opportunities through which an organisation can expand its operations. It is also considered as
strategic business activity that enables owners to create plan and track the organisation’s growth
in their revenues (Eddleston and et.al., 2013). Growth planning is also accomplished to provide
opportunities to allocate resources towards a centred effort for application of changes within
industry. Every successful business continuously reviews its business plan in order to ensure
meeting of its requirements. Various strategies and tactics adopted by employers in their growth
plan emphasize on the key business drivers for revenue generation.
This report is based on the evaluation of RL Maynard (National crest) which provides
property construction services to their customers. Various important considerations for analysis
of growth opportunities have been discussed . Further, Ansoff's Growth Matrix is also used for
application of growth opportunities. In addition to this, different sources of finance and funding
are determined along with justification for selection of the best alternatives. A business plan has
been made for determining opportunities of business expansion for RL Maynard. At last, exit and
succession options for business are also evaluated along with their benefits and drawbacks.
P1 Key considerations for the evaluation of growth opportunities and justification
For development of effective and successful plans to attain growth, organisation needs to
analyse and identify essential business opportunities which are available to attain growth. There
are various essential considerations utilized by small medium enterprise to achieve competencies
to initiate healthy growth in the best possible manner (Valler, Phelps and Wood, 2012).
In this context, RL Maynard also applied innovation in their design and also new
techniques for providing the best construction services to their customers. Company is engaged
in the development of commercial buildings and houses for their clients. Analysis of growth
opportunities will be helpful for enterprise to generate high profits and increasing its market
share. Some key considerations are mentioned below:
Competitive Advantage
Competitive advantage is considered as superiority of organisation when it delivers
products with same values as its competitors but either at low price or take high prices for
providing extra values through differentiation. It usually results for matching core competencies

and opportunities. For development of growth plans, it is essential for employers of RL
Maynard (National crest) to create a competitive advantage in market by providing similar
services to clients at low prices (Keough, 2015). Employers also needs to analyse core
competencies of their business such as Innovative designs, Quality construction, capability to
provide qualified customer services, strong brand equity, new technology equipments and
potential human resources. These core competencies enable RL Maynard to attain growth in
business and increase their brand equity in market.
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Environment Analysis
While formulating growth plans, it is essential for an organisation to analyse external
environment factors which influence the decisions and growth of any business. In this context,
PESTLE Analysis Model is used for analysis of growth opportunities for RL Maynard in an
external environment.
 Political: The political factors that influence are regarding permits and documentation
which have to be obtained by organisation during different stages of construction.
Moreover, political influence will involve the degree to which government has its
influence on construction industry (Haughton, 2012). Continuous changes in duties and
tax rates will provide negative impact revenue generating structure of RL Maynard.
However, manager needs to measure the influence of these factors on business for
developing appropriate plans.
 Economical: These factors involve economic functions and its impact on operations of
organisation. In this context, increase in inflation rate of UK economy has affected RL
Maynard by increasing their prices of construction services Rise in inflation tends to
raise their cost of property construction.
 Social: These factors scrutinize the entire event that affects market and community
socially. It involves influence of dynamic of population, global warming, cultural
expectations, norms and career attitude. Changes in customer requirement also affects
the business decision and planning of RL Maynard. Manager of organization needs to
consider influence of these factors on business to make decisions in the planning process.
 Technological: These are related with innovation and changes in technology which has
resulted in alterations in company's operations and the market either favourably or
unfavourably. In this context, improvement and application of new technology
equipments and Machinery has provided support to organisation in making innovative
designs for their clients.
 Legal: This factor influences all legal aspects such as quotas, resources, exports, imports
and employment etc. In present scenario, changes in employment laws have provided
major influence on construction companies in UK by increasing their labour cost. Data
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Protection Law and Contract Laws have also provided influence on business operations
of RL Maynard as they need to follow regulations while making construction contracts.
 Environmental: Decision of organisation also gets affects due to legislation of
environmental protection which is formulated by government to safeguard exploitation of
country's environment by construction companies (Moseley, 2013). RL Maynard has
never been in to any disputations as it is always involves in the manufacturing and
construction projects which are always leaded to infrastructure development and
cleanliness. A
Generic strategies: A competitive advantage over rivals is not gained by offering the greater
values for the consumers with through the means of low prices or charging high prices for
greater benefits and that justify high prices. While making growth plans, organisation also
needs to involve strategies which is appropriate for them to apply and attain growth in sales
along with higher revenues. Below given are generic strategies of Michael Porter which is used
by organisation to gain sustainable competitive advantage such as:
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Illustration 1: PESTLE analysis of RL Maynard
(Source:Pestle analysis of construction industry, 2017)

 Cost Leadership: Low cost leaders in any market achieve competitive advantage from
being able to develop at lower cost. In present scenario, RL Maynard can decrease the
prices of construction service in order to create competitive advantage over rivals in
market. However, low cost will not always lead to decrease in prices (Chapin, 2012).
Company can also set prices at competitive parity for exploiting the benefits of bigger
margin. For example: Toyota organisation is not only good at producing high quality
products at low price but also have the brand and marketing skills to obtain premium
price policy. Ryanair is also a good example of low cost strategy. Differentiation: It implies to providing something unique which is considered as valuable
for the buyer beyond simply offering low prices. It is a risk taking strategic and
requirement high cost for implementation. It is suitable when the company products have
high value in market (Beatley, 2014). This strategy will be successful when RL Maynard
have understanding of their clients requirements and preferences, commitment to
customers. Managers can adopt this strategy when they have understanding of company's
capabilities and innovation in products and services. Focus: In this strategy, company focus on particular segment and become popular for
providing within the segment. In this, RL Maynard will create competitive advantage
for this niche market and either achieve success by being low cost producer or
differentiator within construction industry.
Product and service innovation: Employer in organisation needs to focus on ways through
which they can innovate products and services while planning for growth. This will provide
support to organisation in influencing their new clients to adopt their services. Through
application of innovation in making designs and construction services, RL Maynard company
will be able to achieve high revenue and formulating plan for business expansion.
Portfolio strategies: For evaluation of growth opportunities, company also needs to analyse its
strategies which they applied while making their products for customers. It also implies that
organisation needs to posses appropriate range of products and service in their products portfolio.
P2 Opportunities for growth applying Ansoff's growth vector matrix.
Primary objectives of every small medium enterprise is to provide quality products and
services to attain the high profitability in market for carrying its future expansion plan. In this
context, Analysis of growth opportunities for RL Maynard has been done by using the Ansoff's
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growth Matrix which is considered as appropriate and useful for organisation in development
and implementation well mannered strategies for appropriate accomplishment of objectives
(Ziari and et.al, 2012). Ansoff matrix is termed as analytical tool which helps managers to
develop their products and market growth strategies. It also determines different strategies
which organisation can take depending on whether it need to market new or existing products
or in new or existing markets. Market penetration: This is also considered as growth strategy which contains low risk.
In this, company focus on selling its existing products in their market at low prices. It
will on products and market from which they are families (Unit, 2015). In this context,
RL Maynard can also adopt this strategy in business by focusing on deliver similar
service at low prices in same market. By using this strategy, company will be able to
attain competitive advantage on its rivals in market. Product development: It is also an important strategic which involves medium risk and
involves less cost of implementation. In this strategy, company provides its focus on
attaining high growth in market by selling new and innovative products. In this
context, RL Maynard can also adopt this strategy and attain growth by providing new or
unique designs as well as construction service for attracting customers. For example:
Apple and McDonald are two business enterprises which use this method. This strategy
is adopted by organisation when its existing products many reached at the end of their
useful life. Market development: This strategy implies to selling of existing products in new
markets because it helps in attaining new customers. It can be done by using new
channels of distribution, changing the prices, appealing the packaging of products. This
strategy is considered as useful for attaining high growth and competitive advantage on
competitors in new markets.
 Diversification: It implies to high risk strategy of growth which involves marketing of
new products in new markets (Mitchelmore and Rowley, 2013). For diversification of
business in new market, company required huge financial resource for product
development, marketing, distribution and selling which contains high risk of failure.
Virgin group is the major example of diversification strategy. However, business of
company is not usually familiar with the success of products in different markets.
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M1
As per the analysis, it is considered product development strategy is appropriate for RL
Maynard to attain growth in construction industry. Innovation in design and construction service
will increase productivity and brand image of organisation in market (Pugalis and et.al, 2015).
Through this, it will be able to influence new customers and retain their previous clients. While
making growth plan, managers needs to consider values of company's products and services in
market. Strategic analysis of company's financial position is also required to analysed whether
company is able to develop new service or not. In addition to this, product development strategy
contains medium risk of failure but provides high growth and requires medium cost for
development of new products.
D1
BCG growth matrix is used to determined for analysis specific options and pathway for
RL Maynard to attain growth. It is useful tool which enables SME to determine the status of its
different divisions and products. It is used to determine growth rate and market share of
company. Matrix contains four parameters which are used to determine company's position.
Star: It specifies the situation of high rate growth in market which enable organisation to
formulate and implement plan to attain growth (Gatukui and Katuse, 2014). In this situation,
RL Maynard may generate high cash in market but because of continuous growth in market
company will also need investments in order to maintain their requirements.
Cash Cow: It implies to situation in company is operating in low growth market but has its high
market share. Company at cash cow position require low investment and able to generate cash
for making investment in other units.
Question mark: It is growth stage in which the company operates in high growth market but
contains low market share. In order to achieve growth, company needs to more financial resource
and need to make high investment on personnel, equipments and plants. However, whether
company will achieve success and become star is not necessary or unknown.
Dog: This stage implies to situation in which company has low market share and operating in
industry having low growth rate. In this, company can hold its business for some reasons or take
decision of liquidation.
From this analysis, it is considered RL Maynard is at cash cow position as they are
operating in construction industry which contains low growth rate but they have high market
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share which enabled them to attain growth. This strategy will be useful for organisation as it low
investment and helps in generate cash in market.
TASK 2
P3 Potential sources of funding available to businesses along with their benefits and drawbacks.
Various important sources are available for SME for generating financial resource and
streamlining of business operations in appropriate manner. These financial resources are required
for implementation of growth plans and achievement of competencies for business expansion
(Li, Mobin and Keyser, 2016). In this context, RL Maynard is considered as small business
enterprise in construction industry which has achieved high growth and recognition in market.
However, there are various important funding options are available for organisation in market
which may or may not beneficial for enterprise. Some key source are stated below:
Debt financing
Small Medium enterprise can take debts to fulfil requirement of financial resources in the
best possible. It is a source of financial source in which company needs to pay interest on
amount of debt (Schetke, Haase and Kötter, 2012). RL Maynard can use debt financial source for
implementation of growth plans and regulation of business. It can be generated by company
through issue of debenture and bonds to investors in market.
Merits:
 This method is considered as appropriate for enterprise to generate financial resource
because it is cheaper and company can easily find investors. It is less expensive in
comparison with issue shares.
 Another beneficial of debt financial is that the amount of loan can be paid in fixed
instalments.
Demerits:
 Raise funds from debt financing can also raise the burden of interest on organisation.
 It tends to reduce the cash flow of company by reducing inflows in comparison of
outflows. Investors can also demand some part of ownership from company against debt.
Venture Capital: In UK, organisations consider venture capital as a key of their growth and
expansion of business. In this, RL Maynard will be able to generate funds from investors who
are willing to make investment in profitable organisation for earning profitability (.Palia, De
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Ryck and Mak, 2014). Generating funds from venture capitalist credibility of RL Maynard will
increase contentiously. Company needs to provide a specific of return on investment to
investors of funds rather than interest.
Merits:
 It is appropriate for generating huge amount of funds from market and venture capitalist
can also provide financial expert to enterprise which helps them in taking correct
financial decision to attain growth and expand business operations.
 A specific amount is required to be paid as return on investment rather than interest.
 Generating funds from venture capitalist may increase credibility of RL Maynard in
market.
Demerits:
 Needs to pay high amount as return on investment whether it is able to generate profit or
not.
 These investors can also force company to provide some part of owner ship against
financial resources.
Angel investors: Moreover, funds can raised by SME through angel investors which are
considered as wealthy individuals aims in market aims to provide large amount of financial
resource to start-ups are small business enterprise against equity share. In this, company need to
identify Angel investor for generating financial resource for implementation of business
operations. RL Maynard can attain finance by taking funds from angel investors to effectively
meet operational requirements.
Merits:
 One of the main benefit of Angel investment is that it is a cheaper source of investment in
comparison with other sources (.Bensoussan and Fleisher, 2012).
 Flexibility to repay the amount of investment is also these in angel investment for
organisation
Demerits:
 High amounts of returns are expected by Angel investor from organisation within a
specific time period.
 Company can also be forced to provide some control on business against investments.
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