Business Growth: Analysis, Funding, Planning & Exit Strategies

This report provides a comprehensive analysis of growth planning for Small and Medium Enterprises (SMEs), focusing on key considerations for evaluating growth opportunities, applying frameworks like Ansoff's growth matrix, and discussing competitive advantages. It assesses various funding methods, including bank loans, and evaluates their benefits and drawbacks within an organizational context. The report also includes the development of a detailed business plan for scaling up a business, incorporating financial information and strategic objectives. Furthermore, it examines different exit or succession options for small business owners, weighing the benefits and drawbacks of each. The document, contributed by a student and available on Desklib, offers valuable insights and practical recommendations for SMEs aiming for sustainable growth and successful business transitions.

Planning for Growth

Table of Contents
LO1). Analyse the key considerations SMEs should consider when evaluating growth
opportunities....................................................................................................................................4
P1). Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context..........................................................................4
P2) Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..................6
M1). Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context.................................8
D1). Critically evaluate specific options and pathways for growth, taking into account the risks
of each option and how they can be mitigated.............................................................................9
LO2). Assess the various methods through which organisations access funding and when to use
different types of funding..............................................................................................................10
P3). Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source..........................................................................................................10
M2). Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context.................................................................12
D2). Critically evaluate potential sources of funding with justified argument for the adoption
of a particular source or combination of sources, based on organisational needs.....................13
LO3). Develop a business plan (including financials) and communicate how you intend scaling
up a business..................................................................................................................................14
P4). Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business...........................................................................................14
M3). Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving objectives.

....................................................................................................................................................16
D3). Present a coherent and detailed business plan that demonstrates knowledge and
understanding of how to formulate, apply and achieve business objectives successfully.........18
LO4). Assess the various ways a small business owner can exit the business and the implications
of each option................................................................................................................................19
P5). Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option...........................................................................................................19
M4). Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations..............................................................................22
D4). Provide critical evaluation of the exit or succession options for a small business and
decide an appropriate course of action with justified recommendations to support
implementation...........................................................................................................................23
Conclusion.....................................................................................................................................24
Reference:......................................................................................................................................25

Introduction
There are various business organisations which operate in the business environment of the
United Kingdom which includes small as well as medium enterprises. It is essential for the
effective growth and the enhancement of the business that adequate strategies or plans are
adopted by the organisation so that it can survive for a long period of time by establishing
recognition in the market and providing satisfaction to the customers. The aim or objective of
this assignment is planning for the growth of the business of the organisation. This assignment
provides the information regarding the opportunities available with the organisation, evaluation
of these growth and enhancement opportunities is done by the adopting various models. This
also includes the methods and the opportunities which are adopted by the management of the
company for having the competitive advantage over the competitors in the market. This
assignment also provides the overview of the sources available with the organisation for raising
funds and this also includes the strength and weakness of the sources. Under this assignment, a
business plan is formulated which includes the strategies for financial aspects and for the
development and enhancement of the business of the organisation. In this regards, an
organisation is selected i.e. Norsk European Wholesale Ltd., which operates its business in the
United Kingdom and provides the services of transportation, storage, specialisation in different
sectors and other technical services.

LO1). Analyse the key considerations SMEs should consider when evaluating growth
opportunities.
P1). Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
There are various factors which are considered and help in the evaluation of the opportunities for
growth. It is essential that all the factors are taken into consideration while evaluating the growth
opportunities for the company or the organisation. These factors also contribute and provide
assistance in formulating the plans and the strategies for growth of the company. These factors
are as follows:
Products and Services of the company: This factor is considered one of the most important or
significant factors for the survival of the company and its business. It is essential that the new
and effective products and services with new features and the characteristics must be introduced
in the market so that the company is able to enhance or develop its business and the quality of
the products and the services. This means that innovative and creative ideas are necessary for the
continuous growth of the business (Storey, 2016). There are various employees which are
employed in the company based on the creativeness of the individual. This also includes the life
cycle of the product which consists of different stages which are growth, maturity, and decline.
However, it is also stated that this life cycle of the product is dependent on the current scenario
of the market and influences the strategies for marketing as well.
Availability of Resources: It is well known that scarcity of resources is one of the major
problems faced by the organisation all over the globe. It is necessary that the proper resources
are available with the organisation so that it can work towards the accomplishments of the
organisational goals or aims i.e. the growth of the business (Barber, et. al., 2016).
Capabilities and Skills: For effectively achieving the goals or the objectives of the organisation,
it is necessary that the company is capable of performing the task or the operations which are
essential for growth of the company as well as having competitive advantage over the
competitors of the company operating in the market (Burns, 2016). For making sure that the
workforce of the organisation has required skills and capabilities which are required for the

growth of the business of the organisation and having a competitive advantage, training sessions
are organised by organisations.

P2) Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
There are various situations in which the company or the management of the company is
evaluated or assess the opportunities available with the organisation for its growth and
development. Situations like entering into a different market or introducing new products or
services in the market, etc. This is done with the views that which option would be best for the
organisation and will result in best outcome and will give more return on the investment made by
the company. Evaluation of the opportunities of the growth, Norsk European Wholesale Ltd. has
adopted "The Ansoff Matrix". Apart from SWOT and PESTLE analysis, this is the most
commonly used model.
The Ansoff Matrix
It is considered as an effective tool which helps in determining the growth and strategies for the
growth. It is also known as Market/Product Grid or Matrix. There are four options in this model
which is related to the growth of the organisation by being consistent with the new and existing
product in existing and new market. It also includes or highlights the risk in the market which
may influence the growth of the company or its business. It is necessary that the plans or the
strategies made for the growth must include all the four aspects of the model. It is also said that
this model is a strategic tool which focuses on the marketing and the strategies for marketing for
reaching the goals and aims of the organisation.
This model includes the four options which are as follows:
Market Penetration: This aspect of the model focuses on the selling more products and the
services in the market. There are various ways by which a company can penetrate into the market
such as providing attractive offers to the customers, discounts, etc. This increases the loyalty of
the customers towards the company and towards the products or the services of the company
(McDonald and Wilson, 2016). This also helps in establishing recognition to the company and its
products and services. This may also include resolving the issues or the grievances faced by the
customers.

Market Development: This aspect focuses on expanding the business and the sale of the
products and the services that are already introduced in the existing market and to the new
customers (Charles Jr, et. al., 2017). This is done by expanding the market beyond the domestic
boundaries and establishing its business in other countries.
Product Development: It is well known that there is always a scope of development and
enhancement of the products and services. This includes improving the products and services, its
uses, features, characteristics which attracts more and more customers (Tukker and Tischner,
2017).
Diversification: In this aspect of the model, it is considered one of the riskiest plans and it
includes introducing new products and services in the new market. If the customers are attracted
to the products then it will be a success for the company and its business otherwise it will lead to
the failure for the company.
(Source: Mindtools, 2018)

M1). Discuss the options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage within an organisational context.
As it mentioned above that growth of the organisation is dependent on various factors which are
as follows:
In accordance of a model of Ansoff, it is stated that penetration of the market, development of
the products and services, development of the market and unlinked diversification. It is essential
that all the aspects mentioned in this model must be considered while developing plans and
strategies for the growth and enhancement of the organisation.
Identification and mitigation of risk: There are various strategies which are adopted by the
organisation for identifying the risk which affected the growth of the organisation and its
competitiveness (Hopkin, 2017).
Implementation of technology: The growth of the organisation and its competitiveness can be
improved by the application of technology to the operations and the functions of the
organisation.

D1). Critically evaluate specific options and pathways for growth, taking into account the
risks of each option and how they can be mitigated.
There various options which are available with the company for the growth of its business which
is as follows:
Merger: In this option, two different entities with similar objectives or aims are merged together.
This reduces the increase in competition in the market. Moreover, the resources of both the
companies are pooled together and are used properly.
Acquisitions: In this option, one company is acquired by another company, the size of which is
larger than the company getting acquired. This is done with the view to reduce the competition
and increasing the market for itself.
Partnership: In this option, the people of like-minded people work together in order to
accomplish the same aim and to share the profits and losses of the company. This helps in
expansion of business and generates more revenues.

LO2). Assess the various methods through which organisations access funding and when to
use different types of funding.
P3). Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
It is well known that one of the most significant factors required for the managing and organising
the operations and functions of the organisation on day to day basis is "funds or finance".
Finance is one of the resources without which the business activities of the organisations cannot
be performed. However, it is not necessary that finance is available with each and every
organisation, various organisations suffer from the unavailability of finances or the capital.
Furthermore, the organisation has the option to raise the funds required from different sources.
These sources are as follows:
Loan from Banks: It is most commonly used and preferred method for raising funds for the
operations of the organisation. It is considered as a safest option to take a loan from as the rate of
interest are predetermined or fixed by the authorities itself; therefore there is no chance that the
interest rate can be charged more than such determined rates (Rogers, 2016). Moreover, the rates
determined by the authorities are nominal so that it is not detrimental for the organisation taking
loans.
Public offering: Organisations also have the option to offer the shares of the organisation to the
public in general or to the existing shareholders which helps the organisation to raise the required
funds. Most of the organisation raises funds in this way. Due to this, shareholders get the share in
the profits of the organisation based on the holding of such individual.
Peer to Peer Lending: Apart from raising funds through the public or from the institutions,
organisations can also take funds from the individual investors who are willing to lend the
money. This eliminates the middlemen from the equation of taking loans due to which the rate of
interest of the loan is increased as the commission is part of such interest rate (Gospel, et. al.,
2014).

Venture Funding: This type of funding are provided to the organisations which want to
introduce new and unique products and the services in the market. While considering that
whether the funds must be provided for such products and services are dependent on the chances
of the success of such products and services.