Strategic Growth Analysis: Red Rock Consulting's Business Plan Report

This report analyzes growth opportunities for Red Rock Consulting, a technology workforce solutions provider. It begins by examining market analysis using Porter's Generic Strategies and then applies Ansoff's Matrix to identify growth strategies like market penetration, product development, market development, and diversification. The report then explores various funding sources, including financial appraisal methods such as Net Present Value and Payback Period, to secure capital for growth. Finally, it assesses exit or succession options for small businesses, considering the benefits and drawbacks of each. The report provides a comprehensive overview of strategic planning, financial considerations, and exit strategies relevant to small businesses in the UK market. It uses the case study of Red Rock Consulting to demonstrate the application of these strategies.

Planning for Growth

Table of Contents
Introduction .........................................................................................................................................4
TASK 1 ................................................................................................................................................4
P1 Analyse the growth opportunities in related with organisational context...................................4
P2 Discuss opportunities for growth by applying Ans off's Matrix/growth matrix.........................5
TASK 2.................................................................................................................................................7
P3 Examine and evaluate various sourcing of funding through which enterprises generate capital
.........................................................................................................................................................7
TASK 3.................................................................................................................................................9
P4 Implement a business plan for growth that comprises strategies & financial institution...........9
TASK 4...............................................................................................................................................11
P5 Assess exit or succession options for small business explaining benefits & drawbacks for each
........................................................................................................................................................11
CONCLUSION..................................................................................................................................13
Books & Journal:...........................................................................................................................15

Introduction
Small scale business can be define as business organisation which is working within limited
resources as well as limited capital so that it can perform there functions and can achieve objective
in competitive business environment. In current business situation, scope of SME is rapidly
increasing by increment of there contribution toward economy of UK. In this report the chosen
organization is Red Rock, it is Specialists in technology workforce solutions where it enable
business change, improve the long term health of organisations and build a legacy for their
customers. Red Rock combines its strong in-house delivery management capability with its access
to some of the best subject matter experts in the marketplace. This ensures that a customer’s
challenge is truly understood and that a best fit solution is delivered with a fast, safe and cost
effective approach. The front of this report there is discussion about the key consideration for
evaluation of different growth opportunities in front of a small scale organisation in respective
market where the firm is trading. There is also decision about use of ANSOFF matrix to use the
mentioned opportunities by the respective business organisation. The middle of this report is
consist of information and discussion about various potential sorceress of funding which can be use
by firm to find investment in organization. There is also discussion about the potential action plan
which can be use and implemented by the organisation to grab the opportunity in business
environment. In the end of this report, there is discussion about various plans which can be use by
organisation to get out or expand its business operation by identification of benefits and drawbacks
of each method.
TASK 1
P1 Analyse the growth opportunities in related with organisational context
Enterprise use different ways and tactics in order to achieve the growth opportunities within
a period of time. In relevance with selected corporation, the HR manager of company make ensure
correct measures as well as methods are used by management to acquire the positive result via the
use of marketing tools such as Porter Generic strategies. It is a time consuming process but is used
by many entities to have idea about the strategies & how to deal with competitors or rivals. By
focusing on growth opportunities it is easier to use resources/capital at optimum level (Hu,, 2016).
Porter Generic strategies- It is tool used by entities to examine and analyse the various
strategies to gain competitive advantage within the market. This model is effectively used by
entities so that they are able to use their resources in well organised manner. This tool is beneficial
for entity as it gives them knowledge about the market situations as well as competitors strategy
which they using for developing new or existing product. So, to implement this a deep level of
knowledge and research skills is required so that decisions are done in proper way (ensen, 2020).
This is further divided into four parts and is mentioned below-

 Cost leadership- This is strategy in which cost advantage is being taken and adopted by
firm by lowering their product cost within the market. This is mostly adopted by the
organisation at the time of increasing market share growth, brand awareness or increasing
the profit. Another reason for going with this strategy is that attract new end users & markets
at larger scale. In context to chosen entity, they can use this strategy with motive of
competing with their rivals within the same field. Furthermore, they also are able to attract
customers at wider and broader scale.
 Differentiation focus- Then arise the differentiation in which companies focuses on
becoming or say depicts itself different and unique from other brands. It is necessary to be
unique then only it will be possible for entities to achieve the goals as well as objectives and
increase the sustainability period at market place. So, Red Rock Consulting need to focus on
this strategy as it will assist them in implementing strategies & tactics (slami, 2020)).
 Focus- Further, arises focus in which choices have to be made between the differentiation
focus or cost leadership. It depends upon the firm to chose the most suitable strategy which
is beneficial for their management. In reference with Red Rock, they adopts the
differentiation strategy as it help them in getting attraction from clients, customers & others.
The main reason for adopting this strategy is that it assist in generation of new ideas and
thoughts & also help in dealing with competitors.
After a brief analysis of above matter, it has been seen that it is essential to be aware about
the strategies which leads to exploration of new opportunities. With use of above stated framework
it it is easier to make decision regarding the strategies which a firm can use during the marketing
process. A proper market research is to be done so that suitable decisions are being undertaken
without facing any problems or issues (Vieira, 2020)
P2 Discuss opportunities for growth by applying Ans off's Matrix/growth matrix
Ans-off matrix:
It is a framework which is used by the organisation to identify different strategy related to
market where organisation is trading in current time. This is helpful for organisation to identify the
perfect and best suable strategy for market factors so that it can easy use it and implemented it
according to resource available in market. Proper use of this strategy is given below. With the use
of this matrix, companies are able to identify as well as examine the market trends, situations, and
other dynamic factors which are essential for business and organisations. To conduct or use this
matrix it is important to be aware about the market & other processes so that it is easier to take
decisions regarding market and product. In relevance with chosen corporation, by focusing on this
matrix it help them to develop their goods or services with appropriate potential market with

suitable strategy. This includes different stages which are explained below-
 Market penetration- It is defined as strategy which existing products are being developed
within the existing market. It mostly used as risk associated with this is low. It is chosen by
those who want to expand the product line or need to enhance the market share without
facing any loss or problem. In relation with chosen entity they can go with this aspect as it
will help them in attracting more clients for their service at larger scale within a period of
time.
 Product development- Further comes the strategy in which new product or goods are
introduced & developed within a pre-established market. It is chosen for keep engaging the
existing or new customers towards the brand by increasing their level of enthusiasm towards
a product. It is also necessary to create engage customers so that turnover or switching rate
is maintainable and do not increase. Thus, with given company they can use this strategy so
that the old clients do not change their decisions of switching to other brand. Risk associated
with this is moderate depending upon the price or demand of customers (Eicher, 2020).
 Market development- This specifies that within a new a market, existing product is
introduced. This market development strategy is risky as because firm is unaware about
market trends and outcomes so, this may affect their organisation structure. This is due to
the unknown market situations and uncertainty. In both national as well as international
market there several factors which should be considered while using strategy such
demographic, religion, culture, environment etc. Therefore, many companies go for
choosing the international and domestic market. In context with selected enterprise, this is
only to be adopted at the time of high requirement for the goods or service. It is necessary to
target new market for the higher growth of business but is to be done with proper
considerations (Alyamani, 2020).
 Diversification- This is to be considered as most dangerous and riskier strategy in which
new market is being chosen for the new product. A deep level of knowledge & research is
required when going with this one. It is basically of two types such as related and unrelated
diversification. This is mostly adopted by those organisations who want to expand their
business at higher level or have their finance position strong. So, reference with selected
entity, they need not have to focus on this strategy as because it could cause a problem for
entity to deal with future occurring problems.
Thus, after going through the above stated paragraph, it has been concluded that it is
responsibility of manager to assures that the most suitable strategy is being selected so that
everything is being done properly. It results in use of resources as well as manpower in efficient
way. It has been examined that reliable information is to be gained. This tool creates the path and

guides firms to carry out their business activities and operations. Through this, they are able to
achieve short & long term objectives at wider level.
TASK 2
P3 Examine and evaluate various sourcing of funding through which enterprises generate capital
In organisation, it is important to have a adequate amount of funds so that it is easier to carry
out the functions and operations & run the business in most effective way. Without planning of
finance it is not possible to do the business. Assets & capital are two essential part which are to be
considered by entities when they raise funds for operations. Finance act a trigger for enterprise
which gives a rise to market sector. Moreover, it has been also seen that there are different modes
through which firm raises the capital such as bank loan, financial institutions, etc. It necessary to
pre-plan for the sourcing of funds as it will help in eliminating of risk and problems in future
perspective. In relevance with red rock consulting, they also raise the funds through various types of
modes as this assists them in carrying out their activities in appropriate way (Turkson, 2020).
Manager of the company make ensures that all the entity have source of funds with
appropriate amount so that business environment does not get disrupted. So, the different sourcing
of funds and financial appraisal methods are mentioned below-
 Net present value- It is the value which shows the business to decide and examine whether
the investment is to be done or not. This is also to be considered as future cash flows in both
positive as well as negative way. It is also known as NPV analysis which is adopted by
every entity with motive of determining value of investment, capital project & anything that
includes cash flow. In relation with chosen entity, through this method they are able to invest
their capital in most effective manner. It is being calculated by the formula- NPV z1/1+r +
z2/ (1+r)2-Xo
 Payback period- Them comes the payback period in which it is defined as amount of time
it takes to recover the cost of investment. This is mostly used by managers and entities with
motive of determining whether to go with investment or not. Thus, with use of this financial
appraisal method it is easier to make decision regarding the current as well as future
investment. In relation with chosen enterprise, they also use the payback period as it helps
them in examining the overall cost and time which will be occur during the process.
(Khajezadeh, 2019)
Types of source of finance-
In market there are various types of sources of finance which are being used by the
companies through which they are able to run their different activities in most appropriate way. In

context with Red Rock Consulting, they also use various types of sources of finance which are
explained below-
 Angel investors/ venture capitalists- They are to be considered as source of finance as
because they help businesses & enterprise by investing or providing fund to them for
specified period of time. Whereas venture capitalists are those who gives capital to the
companies for expanding the business to achieve higher growth and objectives.
Angel investors Venture capitalists
 These are defined as those people who
invest their own money within the
company.
 They are the people who invest mostly in
start-up business and provides funds to
the entities (Johnson, 2020).
Advantages
 Main benefit is that a mutual relationship
is established between both the investor
& entity.
 They are always ready to help enterprises
who need finance.
 Moreover, they have strong network
connection which is beneficial for firm
as they can use those connection within
the business in effective manner.
Advantages
 Benefit is that they focus on higher rate
of return and interest which leads to
more profit.
 They encourages other people to open
new start-ups.
 Furthermore, they also assists in
implementing strategies by effective
decision-making.
Disadvantages Disadvantages
 Angel investors are not well specialised
in some skills or abilities and hence they
are unable to take participate in decision
making.
 VC'S are capable enough to take
participate in decision making and due to
which they put forces into the business.
(Acharya, 2020)).
Overdraft- It is also being considered as source of finance in which owner of the account
has access to withdraw the amount whenever there is requirement. This facility is used by entities at
the time of higher debt. In relevance with chosen enterprise, they only use this at the time of
emergency situations.
Advantages Disadvantages
 It is the flexible way of generating
finance.
 It is quick and easier method which & is
adopted at larger scale.
 To withdraw the big amount permission
and authorization is required from the
bank and also it have a credit limit up to
which only cash can be withdrawn.

Bank loans- This is another form of source of finance in which bank gives loans to the
entities and charge some amount of interest. In this, borrower take money from the bank in form of
loan & charge interest on that amount. In relation with Red Rock, they also take loan from banks
whenever there is requirement of money or capital.
Advantages Disadvantages
 This method of raising funds is simpler
and easy as because both the parties are
agreed on mutual agreement.
 Chances of conflicts and arises of
problems are less because they keep and
store all the information related with
borrower.
 Banks and borrower both get benefit
from use of this method.
 In this approach, main thing is to give
the guarantee over the amount which has
been taken.
 Due to the high charge of interest rates,
some firms enter into debt situations.
 Loss of assets or capital is more due to
he inability of repayment of loan.
(McKenzie, 2019).
After examining the above given paragraph, it has been analysed that it is crucial to use the
sources of finance with appropriate analysing the conditions or their benefits/limitations. Moreover,
it has been also specified that with use of these raising of capital is more easy & effective. By
considering their evaluation, it is easier to select the most appropriate source with help of which it
will be easier to carry out the activities.
TASK 3
P4 Implement a business plan for growth that comprises strategies & financial institution
To systemically work and achieve the objectives it is needed to prepare produce an effective
business plan. A business plan refers to written documents which depicts the organisational goals &
mission which are to be achieved. It is help in clarifying the actual picture of vision as well as
mission. This leads to making an effective decisions and reducing of problems or obstacles.
So, when preparing business plan appropriate structure is to implemented so that less changes are
done at the time of final execution (Fichter, 2020).
Executive summary- Red Rock Consultant, a IT company which deals in providing
solutions to the organisations & helping business with motive of transforming them into innovation.
They provide long term approach solutions with their development team and mangers. They have
various clients such as CPRD, EE, Department of business innovation & skills, driver and vehicle
agency etc. They have been also known as successful SME in UK and for the development of new
changes.

Vision and mission- Main vision of company is to keep pace with technological progress
and development.
Mission of firm is to help the businesses across the globe by delivering the reliable services.
With their development team and managers they are able to achieve their mission. Moreover, they
also provide projects to the agencies & their clients which increases brand goodwill at wider scale.
Goals- Main goal of Red Rock Consultant is to provide quality of services to their clients &
create brand awareness across the globe.
Objectives- Their aim is to acquire more and more clients so that their services get
recognized amongst the other MNC & IT companies. Also, objective is to compete with rivals &
expand business internationally.
While implementing a business plan, it essential to use innovative approaches so that it is
easier to use information present it to team members. With proper use of business plan, decision
making process is also carried out properly. Also, many corporation use marketing tools &
approaches such as STP (Chi, 2019).
STP approach-
It is marketing tools used by many entities with motive of targeting and
identification of potential market as well as customers for their product. It is broader and wider
concept which is to be understood properly. In relevance with chosen organisation, they also use
this approach which assist them in targeting their market. It includes several elements which are
discussed below-
Segmentation- It refers to dividing of market into different segments on the basis of
variables such as behavioural, psycho graphic, etc. This helps businesses in analysing of
development of goods or services at what place and to whom. In context of Red Rock, they divide
their market on the basis of psycho-graphic variable.
Targeting- This states that market is being targeted by enterprise by considering various
factors such as traits, scope, size etc. Through this, they are also able to analyse the demand or
actual needs of customers. Therefore, selected company target customers after conducting a depth
market analysis (Zhong, 2019).
Positioning- At last stage is positioning, in which it refers to creating a value to the brand
and product. IT has been seen that customers are influenced mostly through image or its position in
market. In relation with selected entity, they also focus on positioning as it helps them to attract
more clients. Thus, it is a difficult tasks and needed to be done with appropriate considerations.
Financial projection- It is also needed to considered and determine the overall cost as well
expenses that will be occurred during the planning. It assists in using resources and capital with

appropriate way. In relevance with selected entity, with help of their finance and audit time they
prepare their financial projection and has been shown below-
Therefore, the above specified matter states that when going for STP approach correct
measures are to be undertaken so that all decisions are adopted by properly examining the elements
and their impact on activities. It is duty of manager to be aware about all marketing approaches
which will gives insight about the current or emerging situations (Risberg, 2019).
TASK 4
P5 Assess exit or succession options for small business explaining benefits & drawbacks for each
In industrial sector, it is essential to expand business so that functions/ operations are carried
out appropriately (Hu,, 2016). Thus, it is also necessary to have a sufficient capital so that hey are
used by management at workplace properly. In context with chosen firm, they use various methods,
approaches for their business and which are mentioned below-
 Merger & acquisition- Merger is defined as joining with other enterprises with motive of
achieving common desired goals. Whereas, acquisition refers to acquiring of other

businesses with motive expanding entity size as well as scope. It has various benefits which
are stated below-
Benefits-
 With this approach firm is able to share profit and risk with other people. This leads to
developing of product as well as services.
 Then, with this method it also gives opportunity to explore more new opportunities.
 Also, organisation can be able to use resources at larger level.
Drawbacks-
 Chances of arising conflicts and problems are more as because involvement of many people.
This also distracts the current management of organisation.
 Moreover, it difficult to maintain or coordinate with everyone in proper manner (ensen,
2020).
Liquidation
It is the plan of action in which assets and properties are sold as well as business function
comes to an end. It is the condition where manager of business realise that the company is no more
profitable thus it results in closing the business. This is a situation where business owners
understand there is a need of winding/closing up of the firm.
Benefits:
 It is flexible because it assists business owner to easily sell their goods in order to recover
money from the marketplace.
 It is beneficial because at the time of winding up the company can easily covert their
products into cash.
 Further, it prevent company from bearing up the more loss (slami, 2020).
Drawbacks-
 Liquidation is done and assets of company are being sold at lower value from the expected
one.
 It disuse the resources and capital invested in business.
Thus, the stated matter depicts that it is important to be aware about booth continuing or exit
options so that most suitable option is being chosen at the time of process or situations. By
appropriate analysis, they are able to make decision regarding business operations accurately.

CONCLUSION
After a brief analysis of above report, it has been concluded that planning for growth is
crucial as it helps businesses to be clear about their vision and mission of business. The presented
report provide a brief discussion about the business plan, marketing approaches such as STP, Ansoff
matrix, Porter Generic Strategies. Furthermore, organisations need to e aware about their sources of
finance which are crucial to be considered. To achieve higher growth and overall development it is
needed to conduct a appropriate market research. hat there are various challenges as well as
opportunity in front of a organisation which are directly related to functioning and management of
different work. This can be seen that organisation can use the strategy mentioned in Ansoff matrix
which will help in future growth and management so that organisation can use a proper strategy. It
can also concluded that there are various potential sources for investment in organisation which can
be use to increase the benefits and opportunity of further expedition by a small scale organisation.
In the end it can be concluded the it is mandatory for organisation to use a proper plan so that it can
achieve its goals and objectives related to further operation and growth by keeping the interest of
different stake holders.