Tami Travels: A Business Growth Plan with Funding & Exit Strategy

This report provides a comprehensive analysis of growth strategies for Tami Travels, a taxi service company, during a pandemic. It evaluates growth opportunities using frameworks like the BCG matrix and Ansoff matrix, exploring market development, penetration, product development, and diversification. The report also assesses various funding sources, including personal investment, loans, and venture capital, detailing their benefits and drawbacks. A business plan for growth is designed, incorporating financial information and strategic objectives. Finally, the report examines exit and succession options for the small business, weighing the advantages and disadvantages of each. The analysis emphasizes the importance of adapting to technological advancements, leveraging social media promotion, and prioritizing safety measures to attract and retain customers during challenging times. The report concludes by recommending a market development strategy, focusing on expanding services to developing countries with high demand for cab services.

Growing your business
during a pandemic

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1 evaluate growth opportunities for Tami Travels....................................................................1
P2 applying ansoff growth vector matrix for organisational growth..........................................3
M1 analytical framework for option for growth for company to understand competitive
advantage.....................................................................................................................................4
D1 evaluate specific pathways for growth and all the risk related to it and how they can be
mitigated......................................................................................................................................4
Task 2...............................................................................................................................................5
P3 sources of funding and their benefits and drawbacks............................................................5
M2 Justification for adoption of an appropriate source of funding for Tami travels..................6
D2 Provide justified argument for potential source or combination of sources of funding by
Tami travels.................................................................................................................................7
Task 3...............................................................................................................................................7
P4 Design a business plan for growth which include financial information and strategic
objectives of business..................................................................................................................7
M3 develop a business plan for growth and securing investment, setting strategic objectives
and framework for achieving objectives...................................................................................10
D3 present a business plan that demonstrate knowledge of achieving business objective
successfully...............................................................................................................................10
Task 4.............................................................................................................................................10
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................10
M4 compare and contrast the options for succession options for small business and make
valid recommendation...............................................................................................................11

D4 critically evaluate on succession option of business and recommend for implementing the
selected option...........................................................................................................................11
CONCLUSION..............................................................................................................................12
References:.....................................................................................................................................13

INTRODUCTION
Growth strategies are those strategies for business which are essential for companies to
have the success in future by expanding their business worldwide (Alaaraj, Mohamed and
Bustamam, 2018). There are various kinds of factors which affect during the growth of a
business and one of the main factor is the availability of finance during growth. Having a proper
financial planning that from where the business owner must borrow money and where they have
to invest, this is important in growth stage of company. Tami travels services is taxi providing
services company in London which is founded in 2010 by Anthony Delicata. It is a family
business which is controlled by a family members. This company provide taxi services to their
customers. The following file covers growth opportunities for Tami travels, ansoff growth vector
matrix, sources of funding available for a business, business plan for growth, exit and succession
for small business and their benefits and drawbacks.
MAIN BODY
Task 1
P1 evaluate growth opportunities for Tami Travels
There are many growth opportunities for Tami travels which are given below-
Technological factor- UK is famous for their advance and modern technology. Hence,
Tami travels have good opportunity to grow by adopting most advance technology and features
in their cab services which will make easy for customers to use their offered services.
International growth- It is main aim of most of the companies to expand their business
in new countries and have good growth strategies (Lopez and et. al., 2021). Hence, it is a good
opportunity for Tami travels to enter in those countries where the cab services are low to
provide new opportunities for the customers. Hence, this will help them to earn a good amount of
profit and helps them to grow well.
Social media promotion- Today, most of the customers are using social media top
gather any information for the company. Hence, it is a good opportunity for Tami travel to have
their promotions on social media sites by having the account of their company on Instagram,
Facebook and many other social sites to gain the attention of their customers so that they will use
their services.
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Special features and all safety measures should be concern- For every company it is a
good opportunity to adopt new and innovative features and especially for cab services. Here,
Tami travels must have the feature of male as well as female drivers for women safety in those
areas where girls safely is the major issue like in India. In case Tami travels want to expand their
business in India then it is a good opportunity for them to hire female drivers. Secondly having
safety concern like sanitization of whole car after every ride in front of new customers so that
they will get to know that the company is focusing on healthy concerns during this Covid- 19
pandemic. This will also attract new customers to use their services.
BCG matrix
BCG matrix also known as growth matrix is a framework of product's portfolio that helps
company in planning long term strategies where company decide where to invest, to discontinue
or develop products (El Ebrashi, 2018). This matrix is classified into four categories that are
based on two dimensions. The four quadrants of BCG matrix are Dog products, question mark
products, star products and cash cow products. The BCG matrix for Tami travels will help the
company in implementing the business level strategies for its business. This section will identify
the strategies of Tami travels within BCG matrix.
Stars: Stars products are those products which have high future potential and the
company should invest in those products. The star in BCG matrix of Tami travels is the financial
services strategic business unit. From this SBU Tami travels earns crucial amount of its income.
Tami travels should join supply chain by gathering other travelling firms. This will help the
company in earning more profit as SBU has potential. The package offered by the company
generates the highest sale amongst its product portfolio. Tami travels should develops more
advanced deals on this package through research and development. This will help company in
attracting more customers and expands its sales.
Cash Cows: Cash cow products refers to the products which has a big market share in a
low growth sector (Hassel, Palier and Avlijaš, 2020). These products give consistent cash flows
and a company just have to invest during initial stages. The cash cow in BCG matrix of Tami
travels is supplier management service strategic business unit. This has been running for over a
long time and has obtain a remarkable amount in the company's revenue. The market share for
Tami travels is high, but mostly the market is decreasing as companies prefer to supervise their
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suppliers themselves rather than outsourcing. Tami travels should keep running this strategic
business unit as long as it is giving profits and should stop further investment in it.
Question Marks: These products require a lot of investment to get a return and to make
them star products. In the BCG matrix of Tami travels local food strategic business unit is a
question mark. According to the recent trends in market customers are more interested in buying
local food. Hence, the growth rate in this market is high. However, the share of Tami travel is
low in this segment. The suggested strategy for Tami travels is to come up with more innovative
features.
Dog: Dog products refer to those products which neither gives the strong cash flow nor
requires a heavy investment (Buzatu, 2020). These products have small market share. The dog in
the BCG matrix of Tami travels is artificially flavoured products strategic business unit. The
company has launched these products recently in the market with the hope that this segment will
grow. However, people are becoming health conscious and does not prefer to consume artificial
flavours. The market is reducing and Tami travels does not hold a notable market share. The
suggested strategy for Tami travel is to take away this product from the market.
P2 applying ansoff growth vector matrix for organisational growth
Ansoff growth vector matrix for Tami travels are explained below-
Market development- Here, companies offer their existing products in new market for
growth. This growth strategy is helpful for Tami travels in one condition only when they analyse
global marketing conditions and get to know that in which country their existing services are
demanded more and where they can grow well.
Market penetration- Here, companies are growing in existing market by selling existing
product and services (Maloba, 2018). In context of Tami travels, they are offering their UK
customers a good services by distributing promo codes which will allow them a discounted rates
for their rides. They allow their customers to take the riding services for long routes also. They
hire high rated drivers and prefer to give most of the long route riding offers to their experienced
and high rated drivers.
Product development- Here, companies sell their new product or services in their
existing market to their existing customers. Hence, Tami travels offer new services of their cab
services to the customers of UK. Recently they are dealing in cab services only, but now they
are dealing to provide Moto services where customers can use 2 vehicles for travelling from one
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place to another foe less charges. They also adopt a new service where they allow their
customers to use their vehicles for few days within their country on rent.
Diversification- This strategy is one of the most riskiest growth strategy because here
companies introduce and sell their new products in new market (Zheng and Escalante, 2020). In
context of Tami travels they did not follow this strategy because it is risky and their board of
directors have orders to introduce new services in UK itself and in case it become successful in
UK then it will be launched in another countries.
From the above information it is evaluated that Tami travels will grow better in case they
adopt market development strategy because there are most of the countries who are in
developing stage and has great demand of cabs and taxis for their citizens. Tami travels must
enter their business in such countries with their existing services.
M1 analytical framework for option for growth for company to understand competitive
advantage
It is evaluated that there are various models and framework for understanding the
competition as well as help the company to grow well. Tami travels can use SWOT analysis so
that they can understand where they are lacking behind to grow well in their business as their
weaknesses and try to make corrective measures to make their weaknesses as their strengths for
growth. SWOT analysis also helps to identify some good growth opportunities for the business.
Another framework for the growth strategy for Tami travel is ansoff matrix which also help them
to analyse their competitive advantage. Here, they can choose any one of the four strategies and
beside this they can also compare their adopted strategy with their competitors strategy. In case
Tami travels adopt market development then they must first analyse the competitors situation in
new entered country for their growth.
D1 evaluate specific pathways for growth and all the risk related to it and how they can be
mitigated
Their are various pathways for company to grow well like increase the market share
where they are required to increase their overall market share by gaining more trust and loyalty
fro customers and make a good reputation of company (Islam, Zawawi and Abd Wahab, 2021).
The main risk for this pathway is that it require huge investment in delivering new products and
services. Here, company can use low pricing strategy where they can set low prices for their new
services to gain more customers which will direct increase their market share. Another pathway
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to grow is to increase the prices of services to develop high standards. This is risky pathway to
grow because customers are price sensitive so in case company increase their prices of services
then their customers will switch to other companies of same industry. Hence, this issue can be
mitigated by promoting more by telling advantages of offered services so that customers will
change their mind and think to pay little more than before for gaining additional services.
Task 2
P3 sources of funding and their benefits and drawbacks
Financing a business is most essential activity for any company. There are various ways
by which the Tami travel will get finance for their business operations and these financial
sources are explained below-
Personal investment or personal savings- Here, owner must use their own earned
money for funding their business. This type of funding is mostly uses by those companies and
owners who have appropriate amount of retained earnings with them and who are ready to take
risks.
Benefits of personal investment-
 By using this method there is no repayment requirement that the funds must be repay in a
particular time period. Here, owner uses their own funds. Hence, no worries and tension
of loans and debts from bank's side (Larsson and Horn, 2020).
 By using own money is advantageous because when owner contributed their own money
then they can focus and make sure that the money will be utilized in appropriate way.
They focus on each factor where their money is invested and monitor those areas after
every few days to check the progress in those departments or activities which is funded
by owner's money.
Drawbacks of personal investment-
 High risk is involved because there are no guarantee that the investment will benefits the
business or it will cause loss to the business.
 A single owner is not good in all fields of taking decisions. Hence, using own money in
business by their own way is dangerous in those departments where the owner have no
specialization to handle and take correct decisions.
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Banking facilities- Here, Tami travels can use banking facilities like loans for funding
their business like bounce bank loan which especially for small and medium businesses and it
has the facility to repaying after 12 months of taking loan. Here, banks provide loans to business
on interest. They also provide advice or suggestion facilities where their employee will suggest
some good ideas for implementation in the business to take loans from banks.
Benefits of loans and advances-
 After taking loans from banks, they did not take any control over business or business
activities. It is one of the most beneficial facility of using banking facilities to finance the
business (Keller, 2018).
 Low interest rates are another feature which make banking facility more optimal to use.
Especially in UK, interest rate is 0.01% which is lower than any other country. This will
help Tami travels to take loans from banks and repay it on lower interest rates.
Drawbacks of loans and advances-
 There is a long procedure to use banking facilities. Documentation and all verifications
take a long time for passing a loan for the customers of banks.
 Banks needs some form of collateral as an security for repayment of loans. This factor is
drawback and stop many customers to use banking facilities to finance their business
because in case they are unable to repay the loans then banks will use their personal
properties for repayment.
M2 Justification for adoption of an appropriate source of funding for Tami travels
It is justified from he above information that Tami travels must use banking facilities to
finance their business appropriately (Skała, 2018). Tami travels is a family business which is
handling small operations of travelling industry. Hence, bounce bank loans are effective for them
because here they are free to repay loans within one year. Bounce bank loans have the facility to
repay loans after 12 months or after the business starts earning appropriate profits. Therefore, it
is beneficial for Tami travels to use this facility from banks and focus on their operational
activities without having worries about repaying the loan before one year.
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D2 Provide justified argument for potential source or combination of sources of funding by Tami
travels
It is critically evaluated that banking facilities are more effective for Tami travels because
it require to repay after one year and after the business starts earning profit. Before these two
conditions, banks did not ask the loan taker to repay loan. Hence, according to the nature of Tami
travels which is a small family business Bounce bank loans are effective. With the above
mentioned two conditions, Tami travels get benefited to work harder to develop good image of
their company without a worry of repaying their loans before one year of time period. Secondly,
there is no restrictions to use the amount of Bounce bank loans. Tami travels can use their loans
to pay the salaries of their staff holders, paying to their suppliers, paying utility bills and many
more. It even uses to pay existing loans of a business.
Task 3
P4 Design a business plan for growth which include financial information and strategic
objectives of business
Business plan is a written document which consist of all plans, actions, strategies and
objectives of company which is going to achieve in future (Buechler, Coppersmith and Wade,
2018). Its is a simple framework of how the business is going to run in future. Hence, it is one of
the most essential document for any kind of business. Tami travels business plan are explains
below-
Company overview- Tami travel is a small scaled family business which is operated by
family members. It is founded in 2010 by Anthony Delicata who is the senior most member of
Delicata family. They provide taxis on rent to their customers for short covered distances as well
as for long covered distances. They mainly focus to keep their cars and motorcycles clean and
updated. They supposed to change the damaged vehicle with new vehicle for benefit of their
business. They are having their business in UK only and focusing and working hard to expand it
to other countries.
Mission- Tami travels mission statement is “ to gain the customer's lifelong loyalty by
satisfying them with their good services and reasonable prices”
Vision- Tami travels vision is “ to expand their business in other countries and lead the
market by their services which further help to take all competitive advantages”
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Objectives- Tami travels have few objectives which is essential to achieve for their
success and they are mentioned below-
 To gain the trust and good experience of customers by their services.
 To expand their business globally.
 To lead the market and gain competitive advantage over other companies in their
industry.
 To gain the trust of suppliers.
Strategic objectives are those objectives of business which help them to achieve their
goals, mission and vision effectively which will directly contributed to success of the
organisation (Hsiao, 2020). In context of Tami travels, their mission and vision get achieved by
planning for organisational growth and this business planning includes porter generic model
which is explained below-
 Cost leadership- This strategy states to set low prices for the products and services of a
company to take competitive advantage and to gain customer's positive perceive value.
Here, once the company lower the prices and leads the market then they will set prices
according to them and their industry will get influence to change prices according to
leader of their industry. In context to Tami travels they are having low prices as
compared to their competitors. There is a scope for them in this strategy but it might be
possible that they may have to face loses during their initial period of business.
 Differentiation- This is the strategy where companies show's some uniqueness in their
industry (Trivedi, Trivedi and Goswami, 2018). Here, it is essential for Tami travels to
have some additional and unique services as compared to their competitors and only
those unique services which will help them to attract new customers. In this strategy
innovative ideas and effective implementation of idea plays an essential role. In context
of Tami travels, it is recommended that they must offer additional facilities to their
customers in low prices like allowing both males and female drivers for customers. It is
effective for those female customers who are not feeling comfortable to travel with a
male driver. This strategy to provide full security to introvert customers are effective to
grow well. Secondly, they can also have a bottle of water at their back seats and napkins
with few snacks for those mothers who are travelling with small kids. This will further
help them to cover a larger segment of market.
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 Cost focus- Here, companies are supposed to target a single market and keep their prices
low for specially that one segment of market (Bauwens, Huybrechts and Dufays, 2020).
In context to Tami travels, they have lower prices for all segments which they have
targeted. It is suggested for them to adopt this strategy for gaining the trust of those
people who reject cab services like urban people. It is a good opportunity for Tami travels
to grow well by having low prices for urban people who travel to towns and cities for
some essential purpose.
 Differentiation focus- It states to have unique features for particular market. Tami
travels are focusing to introduce unique features but it's not for few segments but they are
going to plan for additional features for all targeted audience in their all targeted market.
Budget- It is the estimation amount which is set by many companies to manage the
expenses of their operational activities. Budgets are helpful to manage departments and eliminate
the wastage of money which is spend on unproductive activities. Hence, it is effective to
eliminate unproductive activities from business and focuses on productive activities only which
is beneficial for organisation. Budget for Tami travels are mentioned below-
M3 develop a business plan for growth and securing investment, setting strategic objectives and
framework for achieving objectives
From the above information it is critically evaluated that Differentiation strategy where
Tami travels is supposed to provide additional facilities to their customers is effective for them to
grow well in their industry and gain the trust of their customers by providing best services in
lower prices. It is good for them to invest in providing additional services and secondly it also
effective to invest in their assets like taxis. Their cabs and taxis are required to be well developed
and damaged free for customers satisfaction. Lowering the prices of their services as compared
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