Verdant Leisure: SME Development Routes and Financial Strategies

This report provides an in-depth analysis of the challenges faced by Small and Medium Enterprises (SMEs), with a specific focus on Verdant Leisure, a UK-based holiday and tourism company. It begins by identifying key issues such as lack of finance, workforce inefficiencies, and market competition, and explores governmental support mechanisms designed to assist SMEs. The report then delves into Verdant Leisure's development routes, including market penetration, product expansion, market segmentation, and market development strategies. Furthermore, it evaluates the company's financial sources and the alternative methods used for growth, particularly emphasizing the utilization of digital platforms like online booking systems, search engine optimization (SEO), social media marketing, and email marketing. The report concludes with recommendations on managing challenges and implementing strategies for Verdant Leisure's continued success, offering insights into designing a growth policy and addressing the specific issues the company faces. This report is contributed by a student and published on Desklib, a platform offering AI-powered study tools.

MANAGING SMALL AND
MEDIUM ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................3
Determine the issues faced by small and medium enterprises and the governmental support to
address these issues......................................................................................................................3
FINDINGS.......................................................................................................................................4
Determine the development routes of Verdant Leisure company................................................4
Evaluate the sources of finances used by Verdant Leisure Company.........................................8
CONCLUSION................................................................................................................................9
RECCOMENDATIONS................................................................................................................10
Proof showing of growth policy used by Verdant Leisure Company........................................10
Evaluate the strategies that needs to the implemented in order to manage the challenges and
issues faced by Verdant Leisure Company................................................................................11
REFLECTIVE SUMMARY..........................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Determine the issues faced by small and medium enterprises and the governmental support to
address these issues
The key issues and challenges faced by small and medium sized enterprises (SME’s)
includes different factors which restricts their journey to achieve business success. SME’s faces
different issues, some of these are stated below:
Lack of finance
The major issue faced by SME’s is lack of sufficient fund which often leads to business failure.
Businesses does not find the appropriate sources of funds, which clashes the business operations.
The lack of finances leads to non-adoption of technologies, lack of business growth opportunities
and further lead to business failure (Foghani, Mahadi and Omar, 2017).
Lack of efficient workforce
Lack of efficient workforce in SME’s results to non-execution of different business functions.
Where failure in management of business operation negatively impacts the business objectives.
High competition
Due to high competition in the market leads SME’s unable to survive in the marketplace. Where
the existing big companies have already acquired its place in the market, it becomes difficult for
SME’s enter and build its position in the market (Hussain and et.al., 2017).
In order to helps different small and medium enterprises, the government of UK
formulates different policies and strategies in order to promote the growth and development of
SME’s. Business support is offered to SME’s with the sole motive of achieving welfare of
economy. Government of UK renders the support and assistance to the SME’s to develop the
business and lead UK, the best place for conducting businesses. The UK government have
framed different policies to support SME’s. These policies are as:
Finances to SME’s
The government offers long term finances, overdraft and other financial assistance to the SME’s
in UK. The government supports SME’s in order to promote the economic development in the
country.
Grants

The UK government renders grants ranging up to £51,000 to retail, hospitality and leisure
industries.
National business support helpline
The national business support is the support assistances offered by the government of UK, to
deliver business solutions and other related assistances to SME’s. For taking the services of
national helpline, the business has to give a missed call on the helpline number, the support team
will respond back and give valuable solution to the businesses (Karadag, 2015).
Tax reliefs
The government of UK reduces the taxes of SME’s which involves tax reliefs on purchasing of
fixed assets, research and development tax reliefs, entrepreneurial and capital allowances in
order to promote development of SME’s.
Training
Government of UK, renders trainings opportunities to the employers of the business so that they
have the complete information for how to manage and conduct business activities.
In the context of Verdant Leisure which is an UK based SME organisation delivery quality
holiday packages, room stays and tourism services to its customers. The common issues faced by
verdant leisure the includes lack of funds for their growth of the business, adoption to
technology, marketing platforms, advantage to government schemes. The government of UK
renders funds for the grow and development of the SME’s, moreover they produce cheap credit
facilities and loan facilities to the SME’s, the government pf UK also helps to recruit the talented
employees in the workplace in order to achieve productivity and efficiencies in business
activities. major This report covers the development routes for SME’s, determining the
alternative methods of growth of SME’s, evaluation of sources of finances of the SME’s, proof
of designing a growth policy of SME, how to manage issue for the chosen SME (Kim and Shim,
2018).
FINDINGS
Determine the development routes of Verdant Leisure company
Verdant Leisure is a leading SME, which promise for delivering quality services to its
end customers. In order to acquire market, share and growth it formulates different development
growth strategies to accomplish organisational objectives:

Market penetration
Market penetration is the development strategies used by Verdant Leisure to render services
which are better than its competitors and thus captures the market share growth. For
accomplishing the market share it offers attractive holiday packages at low prices to influence
the target customer to purchase market offerings of the company. Market penetration involves
delivering the value goods and services to the customers by offerings at lower and affordable
prices. It helps to expand the market share of the company, through market penetration technique
used by Verdant Leisure, acquiring the customer attention is the primary motive (Kot, 2018).
Product expansion
Verdant Leisure is continuously working for improving its product and services offered to the
customers. In accordance to the new product strategy it delivers holiday packages across England
and Scotland with preferable low and affordable prices. The new services offered by the
company also includes parks, caravans, lodges and holiday home ownership. Product expansion
helps attracts customers where customers finds different offerings in a package. Thus, product
expansion is the technique used by the Verdant Leisure to accomplish the market share
goals. Product expansion is the development strategy used by Verdant Leisure in order to expand
the line of product. Verdant Leisure delivers different service package to the customer including
some excited and exploring spot in England and Scotland. Where the company offers some best
experiences of holiday parks, experiences of Caravan, with the facility of food and drinks
available, bars, restaurants, night on park-bars. The customers can experience entertainment with
their friends and family. The other services ranges include delivering the customers where they
can be the owner of their own holiday homes, home accommodation of caravan and lodge
facilities (Krishnan and Scullion, 2017).
Market segmentation
Market segmentation is the strategy used by Verdant Leisure segments the market on the basis of
geographical, psychographic and demographic factors. As Verdant Leisure renders its market
offerings over the place in England and Scotland, so it focuses on people living near England and
Scotland, to attract them on the basis of geographical segmentation. Whereas, demographic
segmentation involves dividing the customer on the basis of age, income, education, religion.
Verdant Leisure delivers the value to the customer by focusing on the youth who are adventure

and fun loving and retired age groups who wants to spend quality time. Psychographic
segmentation involves dividing the customers on the basis of lifestyle pattern. With the high
changing lifestyle pattern of people where customers want to spend their income in spending
quality time, thus Verdant Leisure focus on the segment of people who wants to spend time and
money in travelling and exploring. Marketing segmentation is the strategy used by the company
in order to find the target customer will be interested to take the services of the company.
Through market segmentation, Verdant Leisure offers and delivers the marketing message to
influence the target customers to purchase the offerings of the company (Lee and Wong, 2015).
Market development
Market development is the strategy used by Verdant Leisure in order to influence nee customers
by existing products and services in different geographical area. Verdant Leisure formulates
effective marketing campaign which involves different advertising platforms to attract and
influence new customers to purchase the products of the company. Through market
development, Verdant Leisure and expand the market share of the company rather than just
focusing on a particular location. Different promotion channels used by Verdant Leisure involves
indoor, outdoor advertisement, print media, mail media and online platforms in order to promote
the market offerings of the end customer which further benefits the company to accomplish the
market share and profit goals. Through market development, Verdant Leisure focus on the
customer across UK which helps to also helps to expand the customer engagement of the
company. It focusses on deliver the value products and attractive pricing policies in order to
build corporate image and market goodwill of the company (Legg and et.al., 2015).
Evaluate the alternative methods used by Verdant Leisure company for growth and development
Managers and leaders in Verdant Leisure uses the alternative methods for the growth and
development of the company. These involves the use of digital platforms in order to deliver the
value to the end customers. Verdant Leisure uses these digital platforms via internet in order to
engage to the large number of customers with just a click. Verdant Leisure has an online site
which helps to deliver the market offerings to the end customers. With the help of the online site,
Verdant Leisure engage with the end customers. Through online site of Verdant Leisure
customer books their services and holiday packages without physically visiting to the company
from their mobile phones or any other electronic gadget via internet platforms. With the help of

the embedded software, the bookings automatically get confirmed and all the relevant
information about the package including the prices, locations covered, the date, features of the
packaging gets delivered to the customers. It helps to build the network of customer engagement
irrespective of the location they reside. Online platforms are the fastest sources which helps in
reaching the large number of the customer segment. Verdant Leisure uses these online platforms
for the growth and development of the business. Moreover, the company uses digital platforms to
deliver the marketing message and promoting the products and services offered by the company
which bot helps to engage with the target customers but also reduces the cost, where the
company does not have to make huge investment in advertisement campaigns. The promotional
message in the online site of the Verdant Leisure delivers marketing message of Freedom to
relax, fun inside and outside, safe and trouble free escape which reflects the quality of the
services and products offered by the company. The company also uses digital marketing which
involves search engine optimisation, social media marketing, email marketing to promote its
goods and services to the end customers. These digital marketing used by Verdant Leisure are
discussed below in brief:
Search engine optimisation
Search engine optimisation involves customising the search results in search engines. Verdant
Leisure takes the services of Goggle search engine optimisation, as when the customers search
the name of related holiday packages, the search results of Verdant Leisure gets popped in the
screen of the customers. This the most effective marketing strategy which helps to attract the
large number of the customer segment (Massa, Farneti and Scappini, 2015).
Social media marketing
With the high increasing demand of social media platforms where each and every individual
across the globe uses social media marketing. Verdant Leisure uses social media marketing for
delivering the marketing message of the company to the targeted customers. Verdant Leisure
uses the social media platforms like Facebook, Instagram by creating social account and posting
pictures and videos in the social media accounts which helps to attracts large number customer
segment.
Email marketing
Email marketing is the another digital marketing used by Verdant Leisure company which
involves delivering the marketing message to selected customers. The company uses email to

deliver all the information about the packages, the bookings to the customers. Moreover, it is
also used to collect the valuable feedbacks of the customers, in order to improve the market
offerings of the company. Taking the feedbacks of after service experience through email helps
to improve the offerings of the company where Verdant Leisure can implement changes in the
products and services in order to deliver the quality services to its customers. The company also
addresses the issues and concerns raised by different customers so that customer feels valued and
continue taking the services of the company in long run. Email helps to deliver the complete
information of the offerings of the company to its customers (Mesu, Sanders and van Riemsdijk,
2015).
Evaluate the sources of finances used by Verdant Leisure Company
In order to finance different business activities, Verdant Leisure Company uses different
sources of finance for operating the business activities. The financial manager in Verdant Leisure
Company finds the appropriate sources of finances and allocated these funds to operations and
expansion of the business. The financial manager in Verdant Leisure Company is responsible for
shouldering different business functions to conducting smooth operations of the business
activity. Financial manager in Verdant Leisure Company have to prepare the financial statement
annually reflecting the transparency to the stakeholders of the company. For financing its
business operation, Verdant Leisure Company uses different sources of finance which involves
long term, medium term and short term sources of finance. These are discussed below in brief:
Long term sources of finance:
Loans from financial institutions
Verdant Leisure takes long term loans from commercial financial institution for fixed time
period which involves interest charges on the loan amount for the fixed period of more than one
year (Musimenta and et.al., 2017).
Central and state government grants
UK government renders financial assistance to the small and medium firms. Verdant Leisure
takes the long term finances provided by the UK government for the growth and development of
the business activities.
Reserves and surplus

Verdant Leisure Company uses the reserves and surplus deposit of amount created by the
business in order to finance the business activities. The finance manager in Verdant Leisure
prepares the balance sheet in which the amount of reserves and surplus is been showed in the
balances sheet (Naude and Chiweshe, 2017).
Medium term sources of finances:
Borrowings from banks
These includes taking the financial assistances from different commercial banks. Verdant Leisure
takes the financial assistance from these banks which involves lending money for 3-7 years.
Lease financing
When fixed assets are being leased by the lessor to the lessee for a fixed period of time. Verdant
Leisure Company takes uses lease financing for purchasing the fixed assets like land on lease for
the fixed monthly rent.
Short term sources of finance:
Bank credits
Verdant Leisure Company lends short term loans from commercial banks for the time period of
within 1 year.
Loans from directors
Director of Verdant Leisure company renders advances to finance different business activities.
Advances from directors are counted in equity shareholder or internal liabilities of the business.
Inter-company deposits
Verdant Leisure Company uses the intercompany deposit sources of business finance which
involves when one business grants money to the other business for the period of six months.
Depreciation Fund
The financial manager in Verdant Leisure makes the provision of depreciation account, provision
is used to meet the short term expenses of business (North and Varvakis, 2016).
Customer advances
These includes the advances which is taken from the customer before delivering the services to
the customers. Verdant Leisure company charges advances from the customer which helps for
short financing for the business operations.
Trade credit

Verdant Leisure takes trade credit which includes the credit granted by the suppliers, wholesaler
for the period of 90-30 days. Verdant Leisure purchases raw materials and other goods from its
supplier without paying immediately (Odoom, Narteh and Boateng, 2017).
CONCLUSION
Thus, small and medium enterprise faces many challenges with the major challenge of
available finances to the company. Where central and state government implement different
policies in order to render financial and non-financial support to SME’s. These business have
find different sources of finance and allocate it in business activities in order to promote smooth
functioning of the business activities. SME’s have to implement innovative market offerings
which attracts the consumer market which further helps to acquire the position in the market
place. These business have to implement the market offerings by analysing the needs and wants
of the target customers. SME’s have to formulate different business solutions and strategic
planning in order to manage the challenges faced by the company.
RECCOMENDATIONS
Proof showing of growth policy used by Verdant Leisure Company
Optimum utilisation of resources
Verdant Leisure should ensure the optimum utilisation of resources which helps to save the cost
of production. Verdant Leisure can adopt the policies and strategies which involves reduced use
of usage of raw material which is needed for production and business operation. Optimum
utilisation will help to cut down the cost incurred and contributes profitability of the business
Effective supply chain
Supply chain is being defined by delivering the good from the point of production to point of
sale. Verdant Leisure can use effective supply chain policies which involves low supplier cost,
reduces chain of supplier and delivering the goods on time to ensure the availability of stock
(Scuotto and et.al., 2017).
Attractive market offerings
Rendering attractive market offering is another growth and development approach which can be
implemented in Verdant Leisure. Attractive market offerings involve producing the right
offerings which best suits the market demand and the organisational objectives. It involves

additional features to the products and services, attractive pricing policies, marketing strategies
and quality products and services.
Eco friendly products and services
With the increasing in pollution and climatic issues people want to address their concerns and
purpose products which involves least pollutants. Verdant Leisure should implement the concept
of ecofriendly products and services such as using paper bags instead of polythenes, cashless and
digital payment methods, recycling the waste, using renewable sources of energy like solar
energy, hydropower energy for power consumption. Moreover, the company should aware its
customers should educate and aware the target customers about growing concerns of
environmental approaches and what all measures the company has adopted. It will help to
develop corporate image of the company in the market and reflect the social responsibility of the
company. This approach will help to build brand image in the market and customers will feel
loyal and reliable towards the company (Volery, Mueller and von Siemens, 2015).
Stakeholder relationship
Verdant Leisure should maintain a fair relationship with its stakeholder which includes investors,
partners, employees, customers, government and everyone who is interested in the business
activities. The manager and executives should show the ethical and transparent flow of business
transaction to the stakeholders by preparing financial statements, delivering quality products and
services to the customers, complying with all the legal legislations of the government and other
approaches to show the ethical operations of business activities.
Customer relationship management
CRM software are the database software which keeps the record of customers name, address,
contact details, bank and payment details, age, services taken, services they wish to take and
other related information all these data is been stores at the CRM software of the company.
Customer relationship management is a software which keeps the record of all the customer of
the company. Verdant Leisure should use CRM platforms to gather and store information about
the customers and serve them in the better in accordance to their taste and preferences, it also
helps to take their feedbacks and concerns in order to improve the services of the company.
CRM software work greatly to serve the purposes of the company and maintain and manage
good relationship with the customers. Customer relationship management helps to deliver the
right customers services to each customer by matching in accordance to their desired need.

Evaluate the strategies that needs to the implemented in order to manage the challenges and
issues faced by Verdant Leisure Company
Some recommendation in order to improve the business performances accomplish organisational
objectives. Verdant leisure must use these sources for accomplishing growth and development of
the business (Wadzwanya, 2017).
Financial management
Financial management is the approach managing the financial activities of the business in order
to achieve business success. The financial manager in Verdant Leisure should shoulder different
responsibility to monitor the fund flow in the business. The financial manager should evaluate
the cash flow of the business on the regular basis and maintain record all business transaction in
financial statement. It will help to evaluate the exact cost incurred, profit earned by a business
and fund needed by the business to conduct further business operations. For sources of finance,
the financial manager in Verdant Leisure should take all the benefits of offered by government.
As UK government offers various benefits to SME’s, manager and executives in Verdant Leisure
should take the such services including training and business management, financial assistance
for granting short term and long term loans, business solutions in order to manage and control
the business function, tax reliefs in order to reduce the taxes which will helps Verdant Leisure to
incur less cost while purchasing fixed assets or while any other business transaction. These
financial measures will help Verdant Leisure to achieve financial stability and development of
the business (Wapshott and Mallett, 2015).
Advanced technologies
Verdant Leisure should use advanced technologies like radio frequency identification device,
cloud computing, artificial intelligence, augmented reality and others. Using technologies
reduces the workload and conducts the business activities in the most efficient manner which
helps to reduce the ambiguity and uncertainties at work. With the help of cloud computing the
company can store all the relevant information in the cloud software. These software helps to
process and maintain huge data of the company without incurring the cost maintaining the
physical units of data storage. Verdant Leisure should use cloud computing which cheap sources
of data storing. It not only helps to store the important information of the company but also helps
to maintain privacy and security of data. Using latest technologies helps to accomplish the
market demand and contributes to achieve efficiencies in conducting business operation.