Growth Opportunities and Strategies for the Studer Group Report

This report provides a comprehensive analysis of the Studer Group's growth plan, a multinational firm in the healthcare sector. It begins with an introduction to growth planning and its importance, followed by an examination of growth opportunities impacting the Studer Group. The report then evaluates growth factors using Ansoff's growth vector matrix, exploring market penetration, product development, and diversification strategies. Furthermore, it investigates potential funding sources, including personal assets, investors, bank loans, and governmental grants, outlining their benefits and drawbacks. A business plan for growth is presented, incorporating financial information and strategies. Finally, the report assesses the benefits and drawbacks of exit and succession options, concluding with a summary of key findings and recommendations for the Studer Group's sustainable growth and market position.

Growth
Planning

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................4
TASK 1.................................................................................................................................................4
P1 Consideration of the growth opportunities that affect the Studer group....................................4
P2: Evaluation of growth factors of Struder group using Asnoff's growth vector matrix...............5
TASK 2.................................................................................................................................................7
P3: Potential source of funding & their benefits & drawbacks for Struder group...........................7
TASK 3.................................................................................................................................................8
P4: Business plan for growth including financial information & strategies to give growth to the
Struder group........................................................................................................................................8
TASK 4...............................................................................................................................................10
P5: Assessment of benefits & drawbacks of exit & succession options for the Struder group.....10
CONCLUSION..................................................................................................................................10
REFERENCE.................................................................................................................................11

ILLUSTRATION INDEX
Illustration 1: Assnoff's Growth Vector Matrix....................................................................................5

INTRODUCTION
A growth plan is a strategic planning method. It gives the business owners a good idea to
meet the change in the market requirements & tackle competitors tactics. Growth planning is
necessary for the sustainable growth of the company (Li, Mobin. and Keyser, 2016). A good growth
plan will give the company an ideal direction which in return will improve productivity. The
organisation we have chosen here is the Studer group. It is a multinational firm working in
healthcare sector. In this report we will cover the evaluation of the growth factor & its opportunities
that effect a company using Asnoff growth vector matrix. Also, we will analyse the growth funding
& exit factor of the growth plan (Mobin, Li and Komaki, 2017).
TASK 1
LO1
P1 Consideration of the growth opportunities that affect the Studer group
A business opportunity also known as growth opportunity, is a strategic sort of investment
which helps an organisation to perform well & expand its business. The Studer group has to look
out all sort of business opportunities that governs the organisation & works in a better way to give
its customers high level of customer satisfaction. Some major growth opportunity factors that can
be considered by the Studer group are:
 Understanding customer demand: The Studer group, being a firm working in the health
care sector has to look after the changing demands of the customers. If, the company is
meeting its customers demands giving them a constant satisfaction level will give the
company a positive satisfaction level, it will prove as a positive growth opportunity for the
company. Apart from this, introduction of innovative efforts in field of the health care will
also grow the interest of the customers in company as well as will improve the brand value
which in return, will give company a growth factor in market as compared to its
competitors.
 Change in marketing strategy: the Studer group has to look for a change in its ongoing
marketing strategy to meet the customers & market requirements. It is not necessary to
implement a whole new structure to change the policies, but to apply small changes which
makes big differences which in return makes big differences. It can be either increasing the
service centres, or introduction of new marketing techniques to attract customers. It will
give the company a better marketing advantage, giving a better scope of growth (Crow,

2015).
 Keeping a track of market trend: The company who keeps a regular check on its
consumer's & market demands will have a better growth opportunity than its competitors.
Following this practice, Struder group will have a core idea about its customer loyalty, its
market position & the points where it has to make the improvements to increase its growth.
Such practices plays an important factor when comes to growth of a company.
 Having idea of Capabilities: The Struder group will have to run an internal assessment to
identify its strength & weaknesses. Once, the company will have an idea about its
capabilities it will work accordingly to meet its targets & to improve its productivity. It will
help the company to meet its growth constraints which are essential to maintain a better
position in market.
 Prioritize the growth factor: After following of all the growth factors discussed above, the
Struder group will have a brief idea about its growth scope in market, it has to make a
decision to apply a strategy to accept a vital point to work upon to start a process of gaining
growth for the organisation (Bell and Bearden, 2014).
P2: Evaluation of growth factors of Struder group using Asnoff's growth vector
matrix
The Asnoff's growth vector is an important tool to analyse the growth factor of a company. It
will give the Struder group a better understanding of its growth factors that will have an impact on
the company. Apart from this it will provide the company an idea to connect with its customers in a
better way, to find innovative ways to increase productivity & improvement in market position. The
Asnoff's growth vector matrix work on following factors:

 Market Development: In this approach, the Struder group will work on a new market by
focusing on the ongoing product to promote it in a new market segment. It will not only
improve the brand value of the product but also of the company too. This approach gives the
company a better opportunity to grow its bonding with its customers by improving market
conditions on broad level. Also, this approach will ensure the consumers to have a quality
service by the company. It can be fulfilled by targeting various customer segment, launching
in new country or region, making outlets in an area with high profitability.
 Market Penetration: This approach of Asnoff's suggest the company to penetrate in their
existing market with their existing product by improving the product quality & quantity. It
will help the company to increase its market share than its customers thus will give a better
grip on the market. It will improve the productivity of Struder's group. The customer will
also be benefited by having easy access to the products of the company. But besides this, it
also possesses an uncertainty of the customer's response towards company's product or
services. This approach can be achieved by reducing product prices as compared to the
competitors, increasing advertisements, following an acquisition method to improve
productivity & improving product quality or quantity.
 Product development: This approach will give the company a scope of making innovation
in its products to compete in its existing market with its competitors. The Struder group can
launch a new product related to health care, which will increase its market share & growth.
Also, it will give a market advantage to Struder group by providing its customers more
products in a segment than its competitors, increasing consumer's loyalty & demand towards
Struder group. This includes practices like investing in R& D to come up with new product,
Illustration 1: Assnoff's Growth Vector Matrix

selling a product under own brand name or joint development of services.
 Diversification: In this Approach, Asnoff's had suggested to the Struder group to increase
its market share by developing new product & launching it in a new market. It will directly
improve & increase the market share of the company on a wider spectrum. Apart from this,
Diversification approach will also give the company a better revenue generation opportunity
than its competitors. The success of this approach, although is uncertain alike market
penetration & involves high risk factor. It includes various diversification approaches like
vertical integration, unrelated diversification or related diversification (Yin, 2016).
TASK 2
LO2
P3: Potential source of funding & their benefits & drawbacks for Struder group
A funding or financing, is the capital that is been invested to start or run and get profitability
in a business. It is basically included the monetary needs of a company but assets can also be
included in funding. Various sources of funding are venture capitals, donation's, grants, saving,
loans, subsidies & taxes. Also, the approach of crowdfunding can be used to generate the initial
funding to run the functionality of a business. The Struder group can also use various sources of
funding to satisfy its financial requirements. Some funding sources that can be used by Struder
group are:
 Personal assets: The personal assets are the goods owned by a business owner or a
company, that have some financial value & can be invested in the business to run it. As, it is
owned by the owner or the company, it has no additional acquisition cost or interest rate of
bank loans making it quite feasible for the owner or the company to invest them without any
hassle. But the biggest drawback in it is the risk of losing it in case of failure of business.
Also, many times the personal assets or funding must not be enough to meet the business
requirements. Besides this, some personal assets like retirement funds are not affected by the
creditors. Investing such assets may prove dangerous in case of loss in business. Struder
group has to look after the cautious usage of its personal assets (Shaw, 2016).
 Investors: Having a loyal group of investors may prove to be a great help in raising the fund
for a start up or expansion of the business. It helps the owner to not to bear all the risk alone
& gives a financial support in case of any sort of emergency. The investors may be the
active partners who participate in decision making as well as the silent partners who just
provide with the monetary help. But the biggest disadvantage of having an investor in the

company is that it brings an unwanted control over the business practice of the company.
Also, the owner has to share the profit margin with its investors. The investors of the Struder
group can have a direct impact on its functionality & profitability.
 Bank loans: Bank loans are a good source of desired funding for the business. Small
ventures can also get personal loans. But for larger functional unit like Struder group, they
have to stock their assets as a security for getting the loan. The biggest advantage is that
owner or business can have is to keep this money to regulate the business operations. Also,
if business fails, you can protect your assents by declaring bankruptcy. But the major
disadvantage of bank loans is that the business or owner has to pay bank high interest rates,
having a narrow profit margin (Shutt, Bentley and Pugalis, 2014).
 Governmental grants & loans: The government understands the importance of business in
improving the economy of the nation. So it provides the company's with some sort of help in
form of grants to small ventures to expand their business & to larger institutions to develop
more services & R&D. They are basically free money without any tension to make returns,
come on a low or limited rates & are easily accessible by the firms like Struder group as
working in health care sector. But the major drawback is that such grants are allowed to be
provided by government for a limited spectrum of business & may not be of much use in
case of applying diversification approaches to expand one's business. Also, you have to pay
it back to the government regardless to any profit or loss occurred in business.
 Crowdfunding: It is a practice where numerous money or fund is raised in many smaller
accounts by large number of people over the broad marketing and internet. It is mostly
practised by the start ups that are been new start and want more money to execute there
business functionality. It has a major advantage that the people donating or providing the
fund can become the stakeholder. Besides this, many times it gives a marketing of the
product or service hand in hand which will create a market for the product or the service.
The major drawback is that if the start up fails, the entrepreneur become answerable to all
the fund providers.
 Venture Capital: It is small amount or capital invested in the start up by smaller firms for a
short period. This is either in form of equity or bond and that can be a major support for the
start ups. They are bounded by the governmental law and are more dependent on the private
firms. Also, it is available for limited number of business (Beatley, 2014).
 Business Angel: It is an individual who invest his money in the smaller start ups that are
about to get started in return of profits or share of ownership. It is usually done to increase
the speed of development. The major drawback is that the owner of the start up, on getting

increase in the growth, has to share its profits with the investors.
 Share Capital: In this investment the fund is been provided in form of shares which are to
be provided to the owner of the start ups in form of shares. But this type of investments is
subjected to the market risks and if start up is failed, it will increase the burden on the start
up owner.
P4: Business plan for growth including financial information & strategies to give growth to the
Struder group
Business planning is essential for the running of the business efficiently & effectively for an
organisation. It will help the company to achieve its targets in more extensive & precise manner.
For an organisation like Struder group, it will provide a method to device the best policies to
improve its market share & attain high profitability & business growth (Bell and Bearden, 2014).
The business plan for the Struder group will include its visions and the missions that can
provide the company a positive market growth can be including the following elements & steps:
Vision of Struder Group
Struder group, being a major name of the hotel industry in UK, has a big vision to be the
largest group of hotels in UK. This is a great opportunity for the Struder group as it is one of the
most competitive market in the UK. With the globalisation, the tourist of all over the world is
coming to UK which make s the hotel industry as one of the most happening sector to get the more
number of customer's as well as the revenue for the company. The vision of Struder group is high
which makes it different from its competitors.
Mission for the Struder group
The Struder group has to build a mission to fulfil its vision to be the largest hotel group in
the UK. Struder group can take the following steps to achieve its target.
 The company can use the acquisition strategy to acquire the smaller hotels to increase its
network of hotels and widens its market.
 It can work upon the customer service and also open the work in a new segment so that it
has a broader variant of the customers and get more revenue (Li, Mobin, and Keyser, 2016).
 Besides this, the Struder group can work upon the services and try to provide its customers
the maximum amount of services at a low and reasonable cost which will help the company
to gain a better market share and more regular and loyal customers.
 Conducting an extensive market research: This step includes a research & analysis

process which gives the company a brief but precise idea about the current market trends &
the requirements of the customers so that the Struder group can meet up with these
requirements to increase its market share & achieve high satisfaction level for its customers.
It will include a brain storming process which on other hand will also engage the employees
together to work in synchronisation & coordination to for high market growth (Business
plan, 2016). This step will make a frame work at Struder group so that company can decide
the policies to work accordingly. Besides, it helps the company to decide the budget to be
implemented accordingly. Also, it tells the precautions that are needed to be taken by
company to reduce any loss or failure.
 Deciding the central goal of your plan: It is a step to pen down all the policies, plans &
financial conditions so that it can be further decided with the management considering their
proficiency to analyse & adopt the policies. The Struder group can work on this by calling a
meeting, presenting the plan & discussing all the aspects of it to get into the function
feasibility of the plan. It will help the company to decide short term as well as long term
targets & to find out the methods to achieve them.
 Creating a profile: This step includes the practice of creating a brand image or brand
recognition for the company as well as for the customers. This will help the Struder group to
decide any sort of approach whether it is of market penetration, or diversification etc. An
attractive company profile will influence the customer's to move towards the company,
increasing its brand value which will leads to growth in its productivity & sales & further in
its market share. The company profile will provide all the information regarding
establishment of the firm, services provides & the product details, that are required to get
basic information about the company (Bell and Bearden, 2014,).
 Documentation of all aspects of company's business plan: The documentation is required
by the company to show it to its stakeholder & investors so that they can sanction the
budgets for the business operations of Struder group. This document will include the
products details, marketing strategies, operational processes to be followed, expenses &
incomes & industrial processes. Also, if Struder group is including any location strategy &
any sort of licensing agreement.
TASK 3

LO3
P5: Assessment of benefits & drawbacks of exit & succession options for the Struder group
The business growth plan has a very strategic element of the growth plan. The exit has an
advantage to the stakeholders to left the company or your share in case Struder group fails to
achieve its market goals. It proves as a safe side for the company & the Stakeholder in case of any
sort of losses occurred in market. But the major disadvantage is that the stakeholder of company
cannot make a comeback in case company gaining profitability.
Succession option has the advantage that if a stakeholder or supporting company of Struder
group inherits its power, resources & assets to its sister concern or other company in case of
retirement or in voluntary actions. It has the big advantage that the inherited company will get the
resources, information & experiences based on the inheriting company. But the major disadvantage
to this approach is that many times the succession give unsolved debts & internal issues which can
adversely affect the organisation functioning & market growth (Beatley, 2014).
CONCLUSION
After completing this research, we can conclude that the growth planning of an organisation
is largely based on the internal factors & deciding of the strategies to meet the plan. Besides this, it
also based on various factors of Asnoff's growth vector which gives the company with an idea to
make plan strategy regarding market trends. Also, we discussed that various steps to meet the
planning constraints, & benefits of various growth plan options that have an impact on the
organisations like Struder group.
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