Speedboard Assembly Services: Planning for Growth and Expansion

This report provides a comprehensive analysis of growth planning for Speedboard Assembly Services, a UK-based electronic products and services manufacturer operating for 30 years. It begins by evaluating key considerations for growth opportunities, including market research, pricing, financial planning, mergers, employee competencies, and technological innovation. The report utilizes Ansoff's growth vector matrix to assess strategies like market penetration, market development, product development, and diversification, evaluating their respective risks and potential benefits for the company. It then explores potential funding sources such as small business lending funds, government grants, and crowdfunding, analyzing their advantages and disadvantages in the context of the company's financial needs. A detailed business plan is designed, including financial projections in the form of a cash flow statement. Finally, the report considers exit or succession options for Speedboard Assembly Services, assessing their benefits and drawbacks, providing a holistic view of the company's growth trajectory.

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysing and evaluating key considerations for growth opportunities at Speedboard
Assembly Services..................................................................................................................1
P2. Utilisation of Ansoff's growth vector matrix at Speedboard Assembly Services to evaluate
opportunities for growth.........................................................................................................2
M1 Options for growth to understand competitive advantages..............................................4
D1 Critical evaluation of methods for growth and their risks................................................4
TASK 2............................................................................................................................................4
P3. Potential sources of funding and their benefits and drawbacks.......................................4
M2 Potential sources of funding evaluation...........................................................................6
D2 Critical evaluation of sources of funding at Speedboard Assembly Services..................6
TASK 3............................................................................................................................................6
P4. Business plan design including financials and strategic objectives of Speedboard
Assembly Services..................................................................................................................6
M3 Business plan development for growth and achieving objectives.................................10
D3 Presentation of business plan of Speedboard Assembly Services..................................10
TASK 4..........................................................................................................................................10
P5. Exit or succession options for Speedboard Assembly Services and its benefits and
drawbacks.............................................................................................................................10
M4 Evaluation of exit or succession options........................................................................11
D4 Critical evaluation of exit or succession option for Speedboard Assembly Services....12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Growth is vital for any business organisation and has to be planned by management. It
has various elements that are considered for making strategies so that goals are achieved. The
current position of company, vision of their future and techniques for fulfilling them are kept in
mind while developing planning for growth (Kerzner and Kerzner, 2017). Speedboard Assembly
Services is an organisation that manufactures and provides electronic products and services for
hardware. They have been operating for 30 years and are located in UK. This report will analyse
considerations while evaluating various opportunities for growth at Speedboard Assembly
Services. It will assess methods of funding as well as its benefits and drawbacks. Development
of business plan will help communicate measures for growing business and exit and succession
plans will be assessed as well.
TASK 1
P1. Analysing and evaluating key considerations for growth opportunities at Speedboard
Assembly Services
Speedboard Assembly Services can analyse various growth opportunities and evaluate
them while planning for their growth. The key considerations are as follows:
Market research:
Growth opportunities involves assessment of market in which Speedboard Assembly
Services operates and sells their products. This can help them to analyse how customers purchase
goods and services as well as the quality they prefer (Birley and Stockley, 2017). Company has
to know if there is an opportunity for growing in that specific market.
Price and costing:
Speedboard Assembly Services has to analyse prices at which they sell their products
and services. They have to ensure that prices are affordable so that customers buys from them.
Production has to be done at low costs as well, so that company is able to earn revenues that can
help them in growth.
Financials:
Speedboard Assembly Services can assess their financials as it will be a key point while
planning for growth. They need to evaluate their resources and investments before creating
various plans (Raco and Moreira de Souza, 2018). Loans from banks and government grants can
help them to achieve a financial position which can help them in growing and expanding.
1

Mergers:
Growth opportunities can be planned by analysing available mergers in the industry.
Speedboard Assembly Services can merge with another company so that they can grow and
expand by gaining more customers and investments.
Skill and competency:
Speedboard Assembly Services can assess their employees' competencies and utilise
available resources that can help them to growth in the industry (Olesen and Carter, 2018). This
will aid in optimally using their skills so that effectiveness and efficiencies can be increased.
Innovations and technologies:
Speedboard Assembly Services can use this opportunity by implementing new
innovations and technologies. This will help in creating plans for growth by proper utilisation of
machinery when manufacturing their products and services.
P2. Utilisation of Ansoff's growth vector matrix at Speedboard Assembly Services to evaluate
opportunities for growth
Speedboard Assembly Services can use Ansoff's growth vector matrix to evaluate their
growth opportunities. It includes market penetration, market development, product development
and diversification which will help determining risks of different growth strategies and plans
(McKenzie, 2015). This tool can assess methods that can increase sales of company depending
on type of business, its location, market and resources available.
Market Penetration:
Speedboard Assembly Services can use market penetration to find new methods that can
increase loyalty of customers as well as grow and retain them. It means that they can sell their
products and services that attract individuals to buy from them. This will also lead to increase in
their market share value. Company can make improvements or adjustments so that they can grow
their business with the help of Ansoff's growth vector matrix. This approach has the lowest risk
and can be easily used for growth.
Market Development:
Market development means attracting new customers to products that already exist and
are being sold by Speedboard Assembly Services. They can search for individuals that are
interested in purchasing their products on the basis of their locations and demand (Bell, Dearman
2

and Wilbanks, 2015). Company can use their skill and available resources to research customers
as well as markets in order to determine their opportunities for growth. This approach has
moderate risk but can be very beneficial for company.
Product Development:
Product development consists of creating new products and services by innovating new
variations in them. It can help to increase reputation of Speedboard Assembly Services by
implementing growth strategies (Mason and Brown, 2014). There is little assurance that
customers will purchase new products which makes this approach riskier.
Diversification:
Speedboard Assembly Services can create new products and services for different
markets. This requires proper strategic plans that are implemented in such a way that customers
will be attracted towards purchasing their products, this approach is very risky and if successful,
it can help company to grow and develop to a great extent.
Illustration 1: Ansoff's Growth Vector Matrix
(Source: Use the Ansoff matrix for evaluating growth
opportunities, 2013)
§
3

Speedboard Assembly Services can use market penetration and product development as
they are good opportunities for company to grow and develop. This will help them to create new
and unique products for their customers as well as gain and retain them.
M1 Options for growth to understand competitive advantages
Speedboard Assembly Services has various growth opportunities that include using their
skills and competencies as well as implement innovations while manufacturing their products
and services. This will give them an advantage from competition as they will be utilising new
technology in an optimal manner along with strategically planning their growth. Mergers can
help them to expand business as well as create new products that can be sold to a wide variety of
customers (Birley and Stockley, 2017). They can utilise the SMEs grants that is being provided
by UK's government for the purpose of expansion. These opportunities can tremendously help
Speedboard Assembly Services in earning profits and increasing their scope of sales.
D1 Critical evaluation of methods for growth and their risks
Speedboard Assembly Services can use market penetration by creating marketing
strategies that can attract customers to buy their products. It has very low risk and can be
implemented easily. Market development will help company in understanding different areas of
industry and can sell their products to new customers. This strategy has moderate risk and
requires proper decision-making in order to implement it. Company can use product
development to introduce diverse and unique products that will aid in attracting new buyers
(Kerzner and Kerzner, 2017). The risk is high as there is no guarantee that customers will like
the innovate products. Finally, Speedboard Assembly Services can use diversification, by
introducing new products and services to new markets. This is very risky but can prove to be
extremely profitable if proper strategies are implemented.
TASK 2
P3. Potential sources of funding and their benefits and drawbacks
Speedboard Assembly Services will require funds in order to plan for their growth. Their
plans for starting a new project can only be initiated when they have potential sources of funding
(Jamal, 2018). Government has provided availability of grants for small businesses and company
already has £20,000 and they will need a total of £300,000 for their project. Sources of funding
includes the following:
4

Small Business Lending Funds:
There are lending organisations that fund small businesses through banks. Speedboard
Assembly Services can apply for these funds which will help in them in growing as well as
promote the economic growth.
Benefits:
 There are many options available.
 There is no need to share profits. They do not hinder business operations.
Drawbacks:
 Strict guidelines are present.
 There is an obligation of repayment. Collateral is required.
Government Grants:
Speedboard Assembly Services can choose government grants in which, they are
provided with subsidies that can be used for growing business (McCann and Barlow, 2015).
They already have an opportunity to apply for grants that are being given by the government.
Benefits:
 It is available easily.
 There are no obligations for repayment. Generous amounts can be funded.
Drawbacks:
 It is time consuming.
 Not all companies can avail to it. They are generally short term.
Crowd Funding:
This is a source of funding in which capital can be collected from persons that are
interested in investing in Speedboard Assembly Services. It creates an opportunity for small
businesses to grow and develop (What is crowdfunding, 2018). There are people present in
groups or communities that generally invest in companies.
Benefits:
5

 It has low risk and no equity is required.
 Large amounts of investment. It is easy and effective.
Drawbacks:
 There is no guarantee of success.
 It is time consuming.
 Payoff is low.
M2 Potential sources of funding evaluation
Speedboard Assembly Services can use the government grants as they have the option to
apply for them. They will require £280,000 in order to start their new project and these grants
can help them to fund their business. They can opt for small lending business funds so that they
can grow and develop in the industry.
D2 Critical evaluation of sources of funding at Speedboard Assembly Services
Speedboard Assembly Services can use government grants as sources of funding but
there are less chances of getting it. Crowdfunding can be very beneficial there can be high
investments available for them but it is not necessary that everyone would be interested in
investing in company (Lewandowska, Stopa and Humenny, 2015). Small business lending funds
can provide huge amounts of loans but Speedboard Assembly Services have to follow strict
guidelines and provide collateral in order to avail these funds.
TASK 3
P4. Business plan design including financials and strategic objectives of Speedboard Assembly
Services
Cash Flow Statement of Speedboard Assembly Services:
Particulars
Investme
nts
(Initial)
Januar
y
Feb
rua
ry
Ma
rch
Ap
ril
Ma
y
Jun
e
Jul
y
Au
gus
t
Sep
tem
ber
Oct
obe
r
No
ve
mb
er
Dec
em
ber
201
7
Total sales/
month(%) 6.67%
4.1
7%
5.0
0%
5.5
6%
8.3
3%
3.2
3%
3.8
5%
5.8
8%
4.5
5%
3.4
5%
6.2
5%
3.1
3%
Total customers 15 24 20 18 12 31 26 17 22 29 16 32 262
6

Sales
Product
s
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Pro
duc
ts
Average Selling
price 16000
160
00
160
00
160
00
160
00
160
00
160
00
160
00
160
00
160
00
160
00
160
00
192
000
Total Revenue
Generated 240000
384
000
320
000
288
000
192
000
496
000
416
000
272
000
352
000
464
000
256
000
512
000
419
200
0
Total sale/ month
(%) 5.00%
5.5
6%
4.5
5%
3.5
7%
7.1
4%
3.1
3%
2.7
8%
4.0
0%
3.0
3%
3.7
0%
3.3
3%
4.1
7%
49.9
5%
Total customers 20 18 22 28 14 32 36 25 33 27 30 24 309
Sales
Service
s
Ser
vice
s
Ser
vice
s
Ser
vice
s
Ser
vic
es
Ser
vice
s
Ser
vice
s
Ser
vice
s
Ser
vic
es
Ser
vice
s
Ser
vice
s
Ser
vice
s
Average Selling
price 8000
800
0
800
0
800
0
800
0
800
0
800
0
800
0
800
0
800
0
800
0
800
0
960
00
Total Revenue
Generated 160000
144
000
176
000
224
000
112
000
256
000
288
000
200
000
264
000
216
000
240
000
192
000
247
200
0
Cash inflow
(Total) 400000
528
000
496
000
512
000
304
000
752
000
704
000
472
000
616
000
680
000
496
000
704
000
666
400
0
Cash outflow
Buildings 32000
Purchases 23000 254 287 214 267 187 246 325 299 205 302 225 304
7

20 40 50 80 20 50 50 50 00 50 00 510
Plants 24000
300
00
220
00
100
00
620
00
Expenditure on
Advertisement
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
110
00
Salary
425
00
425
00
425
00
425
00
425
00
425
00
425
00
425
00
425
00
425
00
425
00
467
500
Rent
320
00
320
00
320
00
320
00
320
00
320
00
320
00
320
00
320
00
320
00
320
00
352
000
Electricity
880
0
880
0
880
0
880
0
880
0
880
0
880
0
880
0
880
0
880
0
880
0
968
00
Interest on Loan
125
00
125
00
125
00
125
00
125
00
125
00
125
00
125
00
125
00
125
00
125
00
137
500
Cash outflow
(Total) 56000 23000
122
220
125
540
148
250
123
580
115
520
143
450
129
350
136
750
117
300
127
050
119
300
143
131
0
Net cash flow 56000 377000
405
780
370
460
363
750
180
420
636
480
560
550
342
650
479
250
562
700
368
950
584
700
523
269
0
Cash balance at
Start 79000 23000
354
000
517
80
318
680
450
70
135
350
501
130
594
20
283
230
196
020
366
680
227
0
233
663
0
Cash Balance at
end 23000 354000
517
80
318
680
450
70
135
350
501
130
594
20
283
230
196
020
366
680
227
0
582
430
289
606
0
Income Statement of Speedboard Assembly Services:
Particulars Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 2017
8

uar
y
ruar
y ch il e ust
emb
er ober
emb
er
emb
er
Generated Revenue
400
000
528
000
496
000
512
000
304
000
752
000
704
000
472
000
616
000
680
000
496
000
704
000
6664
000
Less: Cogs
272
50
226
50
214
80
294
50
314
50
365
20
248
50
176
30
224
51
310
30
245
10
280
00
3172
71
Profit (gross)
372
750
505
350
474
520
482
550
272
550
715
480
679
150
454
370
593
549
648
970
471
490
676
000
6346
729
Income from operations
300
00
320
00
280
00
360
00
245
00
298
00
200
00
254
50
321
00
225
00
365
20
248
50
3417
20
Expenses from
Operations
200
0
250
0
240
0
220
0
300
0
261
0
302
0
260
0
342
0
300
0
287
5
205
0
3167
5
Profit (Operating)
400
750
534
850
500
120
516
350
294
050
742
670
696
130
477
220
622
229
668
470
505
135
698
800
6656
774
Less: Depreciation
(Machinery and
equipments)
150
0
151
0
152
0
153
0
154
0
155
0
156
0
157
0
158
0
159
0
160
0
161
0
1866
0
EBITDA
399
250
533
340
498
600
514
820
292
510
741
120
694
570
475
650
620
649
666
880
503
535
697
190
6638
114
Corporate Tax (30%)
119
775
160
002
149
580
154
446
877
53
222
336
208
371
142
695
186
194.
7
200
064
151
060.
5
209
157
1991
434.
2
Profit (Net)
279
475
373
338
349
020
360
374
204
757
518
784
486
199
332
955
434
454.
3
466
816
352
474.
5
488
033
4646
679.
8
The financial plan of Speedboard Assembly Services aims at increasing profits by 80%,
by year end. This will be done by increasing sales of products and maintaining their prices. There
will also be an increase in cash flows so that cash balance is maintained. Due to increase in
production costs, there may be a fall in total cash balance at the year end, but there will not be
any decrease in profits of the organisation. Overall, the budget shows that there will be a positive
balance and increase of profits by £185,000.
9