Unit 42: Planning for Growth - Business Strategy and Analysis Report

This report, focusing on Unit 42, analyzes growth strategies for Speedboard Assembly Services, a company in the electrical and electronic manufacturing industry. It explores key considerations for evaluating growth opportunities using the BCG matrix and Ansoff's matrix, assessing market penetration, product development, and diversification. The report evaluates potential funding sources, including personal investment, angel investors, bank loans, and family/friends, discussing the benefits and drawbacks of each. It also includes a designed business plan for growth, incorporating financial information and strategic objectives. Furthermore, the report assesses exit or succession options for small businesses, comparing and contrasting them to make valid recommendations for future business development. Overall, this report provides a comprehensive overview of business planning, funding, and strategic decision-making for sustainable growth, providing valuable insights for students on Desklib.

Unit 42 - Planning for
Growth
INTRODUCTION...........................................................................................................................4
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Project Part 1....................................................................................................................................4
LO1..................................................................................................................................................4
P1Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................4
P2Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...............5
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context............................6
LO2..................................................................................................................................................6
P3Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................7
M2Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context.............................................................9
Project Part 2....................................................................................................................................9
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business........................................................................................9
M3 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context...........................................................12
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................12
M4Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations........................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15
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INTRODUCTION
Planning is defined as a strategic activity that allows an organisation to conduct the business
functioning in a systematic manner while assuring success of business. With the help of proper
planning company can underline activities through which they can have centred efforts towards
the changes in industry (Jensen and Creinin, 2020). It is essential for business organisation to
take have proper plan before executing any strategy in order to ensure more growth opportunity.
With the help of this something can ensure long-term sustainability and high growth. Present
report is based on Speedboard Assembly Services which is operating the business function in
electrical and electronic manufacturing industry. This organisation was established in 1983 and
headquartered in south east England, United Kingdom. Company offers number of products and
services to customers in the market segment. In this report formative discussion has been
conducted on opportunities for organisation, different source of funding along with its benefits
and drawbacks. In addition to this business plan and strategy for succession and exit is also
included in this report.
Project Part 1
LO1
P1Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
Boston Consultancy Group Matrix
BCG is defined as a product portfolio matrix which is an essential tool through which
business organisation can conduct planning by evaluating their strategic position. It is the most
effective model through which organisation can find the market growth rate.
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Star:
Financial Service strategic business unit of this company is a star in terms with BCG
matrix for Speedboard Assembly Services. Company is operating their functioning in electric
industry sector which is having potential to grow in future. Products which is generated by
company shows greatest sale in its product portfolio. This company is also having potential to
attract more number of customers with its high quality and innovative features in their product
and services with the help of research and development company can assure more growth rate
(Syssner and Meijer, 2020). It is essential for company to use its current products in order to
penetrate in new market segment by improving their distribution in order to enhance overall
sales.
Cash cows:
Supplier Management Service strategy business unit is cash cow in BCG matrix for
Speedboard Assembly Services. It has been identified that market share of this organisation is
high but due to brexit there is a significant decline in company overall market sales. Company is
having power to effectively influence the market by investing in research and development in
order to become more innovating. With the help of this company can turn this cash cow into a
staff and can benefit in overall sales.
Question mark:
Local electronic strategic business unit is question mark in BCG matrix for Speedboard
Assembly Services. It has been identified that recent trend in the market segment identified that
consumers seeks for environmental friendly products and this market is having high growth. In
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this it is essential for company to develop their product with the help of innovative features in
this. It is also recommended for complete to expand their business in new markets in order to
convert the strategic business into a cash cow.
Dog:
The synthetic fibre product strategic business unit is a dog in the BCG matrix for
Speedboard Assembly Services due to do Brexit Company faced many losses. In this company is
recommended to exercise on environmental friendly products in order to expand their market
base.
According to the above analysis of BCG matrix Speedboard Assembly Services it has
been identified that company is having potential to expand. Company can change their dogs into
cash cows with the help of emphasising upon the recommended measures.
P2Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Ansoff matrix is a strategic planning tool that provides an organisation to device future
growth strategy. It is one of the most important framework through which business organisation
can manage risk with the help of conducting risk analysis. In order to have better understanding
of risk with each options with the help of this strategic tool company can choose the best option
and can a sure maximum rate of return. In terms with Speedboard Assembly Services
management of this company by undertaking use of Ansoff matrix can select best strategy and
can assure more efficient growth.
Market penetration:
It is essential for an organisation to penetrate in markets in order to identify new growth
opportunities. It is essential for Speedboard Assembly Services to maximize their market share
with the help of different attractive strategies in order to gain consumer loyalty. For this
company with the help of club card points can penetrate in new market. In this company can
provide additional discount based services to its customers those who are associated with this
card scheme (Heinen, 2020). Along with this company can enter in new market with the help of
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self advertising website. This will allow company need to conduct cost effective business
through which they can enhance their market share.
Product development:
It is one of the most essential factors of an organisation that provides company to take
more opportunities. It is essential for Speedboard Assembly Services to be very careful in this
factor and introduce products in new market segment by identifying consumer preferences. In
this company can offer more electronics products with the help of one stop solution. In order to
gain more competitive advantage respective organisation can provide environmental friendly
electronic products with the use of bio fuel it will allow company to offer their electronic items
while ensuring long term growth .
Market development:
In this factor organisation is required to identify or expand their current business
activities into new market segment with new or existing products. In this product dimension,
distribution channels and strategies will help company to attract more number of customers in
order to develop new market. Speedboard Assembly Services is operating their services in
United Kingdom; in order to expand their services company can take advantage of joint ventures
with other organisation in order to establish them in new market segment. In this company can
also make many changes in their existing products and services re-examining their strategy in
United Kingdom market segment.
Diversification:
This factor of ansoff matrix is however risky for small organisations like Speedboard
Assembly Services. In this is essential for company to bring new product in new market segment
that will bring additional expenses in company budget. In this strategy Speedboard Assembly
Services can diversify themselves in environment friendly electronic product segment in order to
assure or more growth.
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M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context.
Company with the help of pestle analysis can identify more growth opportunities in a well
defined and effective manner. This analysis allow organisation to identify impact of different
factors upon business operations and their strength against competitive forces. With the help of
this Speedboard Assembly Services can effectively conducted business operations. In addition to
this with the help of porter generic stately company can provide many factors that can have
negative as well as positive impact on business growth, it will allow company to assure growth
and success.
LO2
P3Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
Funds are known as life blood of any organisation irrespective of its size and scope as it
allows organisation to conduct their functioning in a simple manner. It is essential for an
organisation to have potential source of funds in order to manage their business activities. It has
been identified that brexit have negative impact upon business sectors especially in small sector
organisations faced number of challenges. Thus, it is essential to undertake advantage of
effective strategies in order to raise funds with low rate of interest. In context with Speedboard
Assembly Services company can have different sources of funds which being further defined
below:
PERSONAL INVESTMENT
In terms which personal investment company owner can invest his own money in
organisation as to acquire funds. It is an effective option in which small scale organisation does
not require any form of documentation and it is one of the easiest and fast processes.
 Advantage: Most important advantage of personal investment is that in this organisation
on a does not get any form of external interference in terms of decision making and also
not required to share the amount of profit with other individuals.
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 Disadvantage: Business owner can face heavy losses if business activities do not go well.
ANGEL INVESTOR
These investors invest that amount in an organisation and in return they take certain equity
shares of company according to their invested ratio. Angel investors are experience individuals
and utilise their skills for the growth of business.
 Advantage: These investors process high potential and have knowledge through which
business organisation can enhance their decision making with new ideas and can assure
long-term business growth. Angel investors provide valuable advises that will allow
Speedboard Assembly Services to overcome with the losses of brexit and make
modifications in business policies for further opportunities and growth.
 Disadvantage: The interference of investors in the process of decision making and
strategy formation will lead company to face delay in the process of making decisions
that can affect other operations of company.
BANK LOAN
In this source of finance, bank provide its client a certain rate of interest against loan.
With the help of this small scale business like Speedboard Assembly Services raise funds. Due to
brexit small scale companies face heavy losses. However, it has been identified that government
of United Kingdom provide many flexible opportunities in terms with flexible bank loans
through which this organisation can acquire funds.
 Advantage: In order to overcome from the economic laws of brexit government of
United Kingdom provide flexible loan processes to small scale organisation, by taking a
possibility of this Speedboard Assembly Services can effectively overcome with the loss
of brexit and conducted business operations in effective manner.
 Disadvantage: Major disadvantage of this source is that it requires a lot of documentation
process that would consume maximum time of company.
FAMILY AND FRIENDS
Within this owner of company can acquire funds from friends and family. This is one of
the easiest option to acquire fund with minimal interest or no interest. Speedboard Assembly
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Services can take advantage of this source in order to acquire funds without giving their
securities.
 Advantage: It is one of the fastest process to acquire funds and does not need any form of
documentation as well as security.
 Disadvantage: Major disadvantage associated with this source of fund is that it can affect
relationship between family and organisation that can have a negative impact upon long-
term sustainability of organisation.
According to the above analysis it has been identified that Speedboard Assembly Services
can take advantage of bank loans in order to acquire funds in an effective manner, as in order to
overcome from the negative impact of brexit government of United Kingdom provide many
flexible strategies through which small scale organisation can acquire fund from banks
(Bonakdar and Audirac, 2020). With the help of this opportunity company can have effective
fundraising option and can conduct their business operations in effective manner.
M2Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context
It is essential for an organisation to identify different sources of funds in order to conduct
their operations in an effective manner. It has been identified that brexit imposed number
challenges in front of company that affects the business operation in many ways. In this with the
help of having different process of funds company can effectively conduct their business
operations. It has been identified that Speedboard Assembly Services can take use of bank loans,
funds from friends and families, angel investors and personal loans in order to acquire funds.
Project Part 2
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business
It is essential for an organisation to undertake advantage of a strong business plan and
underline different strategic objectives as well as financial information in order to accomplish
business activities more effectiveness. Business plan is defined as written document that involves
existing and future strategies of an organisation. It has been identified that due to Brexit
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uncertainty there are a number of threats prevails upon expansion of Speedboard Assembly
Services. In this it is essential for the organisation to enter in a new market segment and
undertake advantage of more growth opportunities as to require long-term sustainability and
effective growth. Business plan will include company mission, vision objective in order to enter
in a new market segment along with different strategies through which company can ensure
efficient operations.
Overview of the company: Speedboard Assembly Services is operating their business
activities in south east England United Kingdom and provide wide range of products in electrical
and electronic manufacturing industry. Company was established in the year 1983. With high
quality products and services company assures loyalty and trust of consumers. However in order
to overcome the certain losses from brexit company is looking forward to enter in a new
marketplace with an aim to enhance their profit generation capacity and rate of return.
Products and services of company: Speedboard Assembly Services offer number of
products in different industrial segments that communication broadcast medical Industrial and
instrumental Aerospace, defence transport and more. By providing high quality services
company established themeselves in United Kingdom provinces. However in order to overcome
challenges of Brexit company is required to expand their product line in order to serve customers
in more effective manner.
Mission and vision: Company provide their business services to customers with a
mission to maximise trust and loyalty of customers towards company offerings. While on the
other hand if it is talked about vision statement this Speedboard Assembly Services is having
vision to enhance growth opportunities in new market segment by providing best quality services
to customers.
Situational market analysis: In order to enter in a new market segment it is essential for
an organisation to conduct proper situation analysis in order to ensure a high success and growth.
Strengths Opportunities
 By providing high-quality services
Speedboard Assembly Services develop
 Assembly Services is having a
possibility to expand their market share
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strong business relationship and brand
image in market segment.
 Company undertaker advantage of
advanced technology in order to serve
high quality products to customers in
more effective manner.
by tapping into a new business area.
 Assembly Services can enhance their
overall growth and profitability by
enhancing their consumer base in the
field of industry like college, school,
hospitality and more.
Formulation of budget:
Budget plays most important role through which organisation can have a blueprint that
allows them to conduct those business operations in effective manner (Monstadt and Meilinger,
2020). It is essential for business services to develop a formative budget before entering in a new
market segment as it will allow companies to assure maximum success.
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From the above mentioned report, the cash flow statement shows that Speedboard
Assembly Services is paying taxes in financial year and its cash value for all consecutive three
years that is 2015, 2016 and 2017 are $102203, $200354, $238503 as per the diagram. On the
other hand, overall revenue of the company was around $72001.
Identify the targeted market: Company target market will be any institution or other
business sectors in order to offer their products and services.
Allotment of resources: According to the requirement of clients company will provide
resources in respective manner
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