Verdant Leisure: Strategic Growth, Funding, and Business Planning

This report analyzes growth opportunities for Verdant Leisure, a UK-based holiday home company, focusing on market development, acquisitions, strategic alliances, and market disruption. It utilizes the Ansoff matrix to evaluate market penetration, product development, market development, and diversification strategies, recommending market development for Verdant Leisure's expansion. The report also examines funding sources such as bank loans, angel investors, and debentures, alongside exit succession options including liquidation, acquisitions/mergers, and passing the business to a successor. Furthermore, it includes a business plan framework with a SMART analysis, executive summary, and company summary, highlighting Verdant Leisure's mission and services to business travelers. This comprehensive analysis aims to provide a strategic roadmap for Verdant Leisure's sustainable growth and future prospects. Desklib provides a platform for students to access similar solved assignments and past papers.

Unit 42

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. Growth opportunities for small and medium businesses.........................................................4
2. Ansoff matrix...........................................................................................................................6
3. Funding sources.......................................................................................................................7
BENEFITS...................................................................................................................................8
4. Exit succession options ...........................................................................................................9
5. Business plan.........................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Growth opportunity can be defined as the chances for business to grow and expand
significantly. Growth can be in terms of expansion of its market or through its products. Growth
of the company is very important as without growth opportunity the business will be stable and
will not achieve success.
Verdant leisure is a privately owned company that offers holiday homes to individuals. It
was founded in 2010 by Dunham Leisure. Its headquarter is located in United Kingdom.
This reports shows the various growth opportunities that are available. It also shows the
various funding sources that are available to small and medium size organisations.
MAIN BODY
1. Growth opportunities for small and medium businesses
There are various growth opportunities that are available to Verdant Leisure which are as
follows:
MARKET DEVELOPMENT
It is a growth opportunity where the company sells it product and services in the
untapped markets this strategy involves identification of new markets that will best suit the
company for selling its products (Choudhary and Srivastava, 2019). It a growth strategy that
allows to expand Verdant leisure customer reach.
ADVANTAGES:
 It helps in creating a competitive advantage.
 Helps in generating a quantifiable return. It helps the company in increasing its revenue through new customer base.
DISADVABTAGES:
 Risk involved is high due to entry into complete new market.
 Chances of failure are high.
ACQUISITIONS
It is one of the most viable growth strategy that Verdant Leisure can inculcate it it has a
significant amount of debt capacity or cash flow available (Barbiero and Wolski, 2020). These
are typically done in order to take control of the target market and capturing synergies.
ADVANTAGES:

 Helps in reducing competition by directly acquiring the competitor firms. It helps in gaining prior access to advanced technology.
DISADVANTAGES:
 It may lead to duplication of one another's duties.
 There are chances that may be culture clashes among the employees of the two
organisation.
STRATEGIC ALLIANCE
It is a growth strategy where there is an arrangement between two organizations that
mutually undertakes projects while retaining their independence (Ali and Su, 2018). Strategic
alliance can be used by the organization doe expansion into new markets or for improving the
product line.
ADVANTAGES:
 It helps in providing the company with incrementing a lift in its sales and revenue
generation. It helps in decreasing the cost incurred in acquisition.
DISADVANTAGES:
 It is difficult in keeping objectives on target time.
 Sharing of trade secrets may be risky.
MARKET DISRUPTION:
It involves entry into markets with well established industry which are dominated by
legacy brands and proceeding in offering products and services that are completely different
from everyone else (Ohunakin and Oludayo, 2018).
ADVATANGES:
 Competition is limited. Offering better quality products at cheaper rates.
DISADVANTAGES:
 Earning customer trust may be challenging
 Larger organisation may prevent from growth of the company.
2. Ansoff matrix

It is the market or the product expansion grid which is used by the organisation to plan
and analyse their growth strategies. The grid shows four strategies that can be used by the
organisations for growth and also analyses the risk associated with each strategies.
MARKET PENETRATION
It is a growth strategy where the organisation uses its existing products and services in
the existing markets (Loredana, 2017). In other words the focus of the strategy if to increase the
sales of the existing product in the existing market. It aims at increasing the market share of the
company.
ADVANATGES:
 It helps in increasing the market value of the organisation. It helps in creating goodwill of the company.
DISADVANTAGES:
 May result in lower profit margins.
 Risk of pricing war.
PRODUCT DEVELOPMENT
It is strategy where the organisation develops a new product to cater the needs of the
existing market (Dawes, 2018) It a strategy which is employed where the organisation has a
strong understanding about its current market needs and provide the market with innovative
solutions.
ADVANTAGES:
 It helps in providing maximum satisfaction to its customers with better quality products. It helps in expansion of market for their products.
DISADVANTAGES:
 It requires extensive research and development.
 It is costly and time consuming.
MARKET DEVELOPMENT
It is a growth strategy where the organisation enters into new markets with their existing
products. That is the organisation expands in terms of new customer segments, new geographic
regions etc. it is one of the most commonly used growth strategy.
ADVANTAGES:
 It helps in increasing the sales of the company through new customer segment.

 It provides competitive advantage.
DISADVANTAGES:
 Risk involved is very high.
 It requires capital investment.
DIVERSIFICATION
It is a strategy where the company enter into new market with new products. It is one of
the most riskiest strategy in terms of product and market development. However, it offers the
greatest potential for increment in the sales.
ADVANTAGES:
 It offers company in increasing their profit maximisation. It offers more opportunities to the organisation.
DISADVANTAGES:
 One of the most riskiest strategy.
 May result in reducing the quality of the products and services offered.
However, for the purpose of expansion Verdant Leisure must use the market
development strategy that is it should use its existing products and services in the new markets.
That will help the company in increasing its visibility. It will also help the company in increasing
its revenue generation through targeting new customer base that will result in generation of new
revenue line.
3. Funding sources
Organisations always seek various sources of funding to grow their business. The main
three sources of funding involved is the retained earning, debt capital or equity capital are the
basic forms of funding. The various other sources of funding are:
BANK LOANS
One of the most common form of funding it through acquiring bank loans, they are
considered one of the most quick and straightforward way of funding it is mainly used for
purchasing assets, repayment of commercial mortgagees etc.
BENIFITS
 Bank loans are temporary. Purchases can be made with no liquid assets.
DRAWBACKS:

 It inculcates high interest rates.
 Eligibility criteria are very strict and application process is also lengthy.
ANGEL INVESTORS
Angel investors are usually the high net worth individuals who funds the start-up and
small business at early stages (Yigitcanlar and et.al., 2018) It is primary source of funding for
start ups. It helps in fostering innovation among the start up and small businesses.
BENFITS
 It is one of the most suitable source of funding for small businesses. Business acumen: it brings great experience to the business venture.
DRAWBACKS
 It can create loss of control in the company.
 It is less transparent that is angel investors are harder to contact and research.
DEBENTURES
It is one of the most easiest way of raising funds for the company through issue of
debentures that has a fixed rate of interest on it (Fan and Chen, 2019) It is an acknowledgement
that the company has borrowed money from the public on a promise to pay in future with a fixed
amount of interest.
BENEFITS
 It is one of the most easiest way of raising funds. It is a less costly way of raising funds.
DRAWBACKS
 It is a burden on the company.
 Every company has a certain borrowing capacity.
4. Exit succession options
Exit or succession options refers to the exit strategy which the business enterprises cvan
opt for exiting the business or company.
Definition:
According to Hawkey, (2017), exit or succession options are the strategies for business
owners for passing on their leading roles and ownerships of their companies to other people.

Possible exit and succession options:
As an SME Verdant leisure can use any of the following options for its exit or succession:
Liquidation
Liquidation means that selling off the assets of the company. Verdant leisure can use this
strategy to sell off its business and its assets to shareholders and creditors for exiting the
business.
Benefits and drawbacks
Liquidation exit strategy can be very beneficial for the company to exit its business as in
it exit is relatively simple. If the assets of the company are less it can allow the company to have
a quick exit process. However, the company can make money only on the assets it is able to sell.
Another disadvantage is that the creditors need to paid first from money generated from
liquidation.
Acquisition and mergers
Acquisition means that the buying of a company by another company and merger means
collaboration of a company with another company. Verdant leisure can either merge with another
company or sell its company to other large company under acquisition. Through third it pass on
its business to another company (Coupland, 2017).
Benefits and drawbacks
It can allow Verdant Leisure to make huge profits out of exit strategy and the valuation is
usually high in it. It can allow the company for higher negotiations. However, it eliminates the
involvement of former owner completely and finding buyer can also be difficult.
Passing on to a successor
Passing on the business to a successor means the the owner can pas on the ownership and
leadership to the other people such as family or the manager of the company.
Benefits and drawback
Passing on the business to a success can help the company and its owner to create and maintain
legacy for upcoming generations. It also means that the involvement of third party is reduced in
the business. It can also provide the opportunity to former owners to be involved business as
well. However, it can be difficult for the company to chose right successor and it can also cause
potential conflicts between family and employees (Chirico and et.al., 2020).

5. Business plan
Business plan refers to the written document which describes in details about the
company's overview and future. They serve as a key points for reference to the stajkehloders ofg
the business.
Definition
As per Manqele and et.al., (2017), the business plan is a document which is used for
management of an organization through stating vision and mission, how and when these will be
attained.
Smart analysis
Smart analysis stands for Specific, measurable, Achievable, relevant and time bound
goals or objectives.
Definition
As per McKeever (2018), SMART analysis is used to direct for goal setting so thaty the
goals are clear and attainable as well.
Specific: It states that the goal should be simple, sensible and significant.
Measurable: It states that the goal should have some meaning and motivating enough to be
achieved.
Achievable: It means that the goal should be agreed by all and attainable as well.
Relevant: this states that the goal should be realistic, resourced, reasonable and result oriented as
well.
Time-bound: it states that the goals should be based on specific time and costs.
Business plan for verdant leisure
Executive summary
Travel and tourism industry refers to the sector which is related the travel itself. In the modern
world the businesses have globalized which have given raise to Bleisure travels. Blesiusre
travels refers top the travels which are done for the purpose of business meeting and leisure in
the spare time. As Verdant leisure has provided various services to the customers which
involved businessmen, but this service packages will exclusively focus on the business people
travelling for the purpose of their businesses.

Company summary
Verdant leisure is a company which provides holiday home s and self catering packages
to people. The company is a medium size company with 291 employees at 11 different
locations in UK. It is ranked 2nd in 20 best companies to work for in 2021 by leisure and
hospitality's.
Mission: the mission of verdant leisure is to create an environment which is perfect for the
customers to relax and enjoy their time as well as experience a new lifestyle.
Services
 Self catering lodge
 Caravan holiday packages holiday home ownerships
Market analysis summary
Product: The new product is Bleisure holiday packages
Price: The prices of the new product will be high as it targets the business customers only.
Place: The Product/service will be available from direct sales as well as from the online
webistes of the company.
Promotion: The company will promote the new product/service through the social media
marketing campaigns and transitional marketing such as newspaper advertisements.
Competitors: The major competitors of verdant leisure are:
Malvern Group
Rock UK Adventures
Visit Scotland
Smaller Earth
Target customers: the target customer segment for the new service is businessmen who travel to
other locations for meeting and work.
Strategy and implementation Marketing strategy: The marketing strategy for the current project will be cause
marketing. The company will introduce something which offers its service linked to the
social cause as to provide best time to customers during their work period. Promotional strategy: The company will use social media promotional strategy for

promoting its products. It will allow the company to reach wider audience with low
costs. Pricing strategy: The pricing strategy will be value based pricing. It means the prices of
the service will be set as per the services opted by the clients.
 Sales strategy: The sales strategy for the new service will be values based selling. It
means the service will be sell through demonstrating the value of service with the
customers.
3 objectives implemented to increase growth
The objectives which Verdant leisure can implement to increase its growth are
following:
 The first objective is to gain maximum market share in travel industry in SME sector.
 The second objective of the company is to provide a unique service to customers under
the affordable prices.
 The last objective of the company is to attract more customers through new
segmentation and also to retain its existing customers.
Management summary
The head of the team for the new plan will be the functional manager. He will be
responsible for the management of all the developments of the plan. The management team
members for new plan will hired through conducting interviews.
Financial plan
Budget
Income
Sales quarter 1 2500
Sales quarter 2 2500
Sales quarter 3 2500
Interest income 1000
Total income 8500
Expenses