Verdant Leisure: Growth Planning, Funding, & Business Development

This report provides a comprehensive analysis of growth planning for Verdant Leisure, a holiday park operator in England. It explores growth considerations using Porter's generic strategies (cost leadership, differentiation, cost focus, differentiation focus) and the BCG matrix (cash cows, stars, question marks, dogs). The report also examines the Ansoff growth matrix (market penetration, market development, product development, diversification) and evaluates the advantages and disadvantages of each strategy. Furthermore, it discusses various sources of funding, including investment decision-making methods like payback period and net present value, and categorizes funding sources by period (long term, short term), ownership, and generation. The report also outlines a business plan for growth, covering aspects like company description, market analysis, competitive strategies, management and operations, and financial projections. Finally, it touches upon exit or succession options for the business.

Planning for growth

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Growth considerations.......................................................................................................................3
P2 Ansoff’s growth matrix........................................................................................................................5
TASK 2..........................................................................................................................................................6
P3 Sources of funding..............................................................................................................................6
TASK 3..........................................................................................................................................................8
P4 Business plan for growth....................................................................................................................8
TASK 4........................................................................................................................................................12
P5 Exit or succession options.................................................................................................................12
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................14

INTRODUCTION
Planning refers to as the scheme which includes a positive tactic to all the individuals so
that all goals and objectives can be achieved in a well-organized way. It is defined as the safety
of the future by formulating diverse tasks (McGuinness, 2021) . As per the recent condition it is
progressive viewpoint of a person that has been settled and enlarged in context with
accomplishing success and growth for the future.It also benefits to create insurance on numerous
policies which are applied. The below reports involves considerations for analyzing growth,
Ansoff growth matrix, sources of funding, business plan and exit or succession options. The
below report is based on verdant leisure. It is a holiday park operator that offers self-catering
lodge as well as a holiday home ownership. It is located in England.
TASK 1
P1 Growth considerations
In context with planning it is the practice of evaluating diverse changes as per the
obligation and fulfillment of all respective goals. It is the technique of Business Corporation to
ensure the stability within the gap by focusing on where the company is and from where it wants
to accomplish as per the time Period. In context with Verdant Leisure it is explained below: -
Porter’s generic strategy: -
It is defined as an aspect that summaries a way and offers effective benefit to the
corporation in the market. It includes four diverse tactics which are used by Holiday Park with
regards to achieve all kinds of reimbursements from their further competition. It also supports to
initiate numerous methods that help in enabling different business enlargement.
 Cost leadership: - With respect to this phase it is used when an enterprise offers product
reserves with smallest amount that delivers the facility and attain highest market share.
Verdant Leisure uses the cost leadership theory to mesmerize large number of consumers
and make available all the services in an improved way in comparison with other
competitors.

 Differentiation: - It is the policy in which a company recruits invention and creativeness
as per all the productive services and accomplish large market share and increased sales.
With the help of this method a business enterprise can enlarge their goods and services
which is fully new in the market (Song and et.al, 2021). The chosen organization also
uses this way to earn competitive advantage by collecting the consideration of maximum
number of customers.
 Cost focus: - Companies uses this type of policy in order to gather the niche market and
provide diverse products at minimum level of cost. It has been initiated by the
organization by having the information regarding complete analyzation of marketplace
and fulfilling the demands of consumers. Verdant Leisure collects extreme number of
consumer base by delivering all the services at least cost.
 Differentiation focus: - It refers to a plan which is followed by the corporation while
providing numerous types of products and services. It brings out an authentic image in
front of all the audiences and attains long term success and high level of growth. In
context with selected company they made the usage of this specific plan while offering
new and efficient level of services as per the business site. With the help of this they earn
large amount of revenue by expanding all profits and sales.
There are numerous types of methods which are initiated by the corporation that helps to
advance large level of advantages (Samantaray and Sahoo, 2021).As per the selected company
they used the strategy of cost focus. The reason behind this is that it enlarges the productivity
level and all kinds of profits. While evaluating the growth in the business corporation through
which it offers amenities at smallest level to seize the attention of higher customer base and
attain all the profits.
BCG MATRIX: -
It is described as a planning tool that makes the usage of graphical representations of
company products and services in order to help the organization decide what product they should
keep or invest in.

 Cash cows: - The goods which come under this sort have little level of market growth
but high market share. In relation with the selected company their produced income is
used for all kind of operational expenditures and for them the supplier management
strategic business unit is a cash cow for them.
 Stars: - With regards to this there is high level of market growth rate and market share.
In relation with Verdant Leisure for them the financial service strategic business is a star
for them. Through this this upgrades their greatest sales.
 Question marks: - It is described as a high growth rate but have low level of market
share. In terms of their high growth level they require more investment so that all targets
can be fulfilled. For Verdant Leisure their local holiday park business unit is a question
mark for them.
 Dogs: - It comprises both low growth rate and low market share. So, there are various
goods and services which need to be eliminated if they are facing continuous failure.
Difference between McKinsey matrix and BCG matrix: -
BASIS McKinsey matrix BCG matrix
Comprehensiveness It comprises of both composite
portfolio (Huang and Li,
2021).
In terms of this their modest
strong point is equal to market
share.
Visual differences It has nine level of proportions It constitutes four cells matrix.
Digital Platforms : - In today's world the digital platforms are very much efficient because
almost all the individuals are active on social media and other media sharing platforms. As in
context with the chosen company the best way of promoting holiday park is social media only.
Use of website: - Every business organization make the usage of their website because it is
helpful for the company in generating more sales and making the business in a more better way.

Partnerships: - By evolving the partnership with different company helps them in reaching to
wider and new audiences. As it gives the chance to company in acquiring better competitive
advantage.
Franchising: - With the help of this a business cab be enlarged at a very wide level and also
carries low level of risk. It is helpful for the company to expand at both national as well as
international level.
From the above information it has been analyzed that BCG matrix is more beneficial
because it offers efficient visual representation and also detached the cells which are much nearer
to each other.
P2 Ansoff’s growth matrix
In context with this matrix it is used to expand and develop numerous methods which
help in executing different campaigns through which a company achieves progress for the future.
With respect to this framework it mainly focus on achieving all the demands of customers and
collect various level of prospects that lead to high level of sales and profits. It is explained as
below: -
 Market penetration: - It is defined as a method to enlarge the sales in present markets
through promoting existing holiday parks. In relation with selected company they provide
best caravan holidays and self-catering lodge to all the consumers (Sharma and Singh,
2021). They give family members effective space to try out certain new activities. The
company uses the method of increasing promotion and all the distribution efforts in order
to enable market penetration. It also helps in expanding the overall amount of revenue
from existing markets.
 Market development: - In context with Verdant Leisure there are two methods of market
development. The first one is in association with entering all new geographic markets and
expands the operations level. In relation with second strategy it is to offer innovative
products in fascinating a specific division of current market.
 Product development: - It is described as a plan in order to do promotion of all the new
and innovative products in existing markets. As per the chosen organization they do this

by providing fresh feel to all the customers. They do this with the help of doing small
variations in whole park infrastructure.
 Diversification: - With respect to this stage all the goods and services are promoted into
new markets. On the basis of Verdant Leisure they do diversification across all the
financial segments so that effective diversity can be maintained.
Advantages and disadvantages of market penetration: -
The aspect of market penetration is beneficial because with the help of this business
achieves high level growth and is considered as an efficient way in expanding the customer base.
Besides this it also brings out cost advantages if business is performing on the basis of
predictions. On the other hand it is harmful for those organizations who have different product
lines because it creates bad image in front of everyone. It is not considered good in the period
when the prices are low.
Benefits and drawbacks of market development: -
On the basis of market development it offers different ways of opportunities that help the
business organization in enlarging the market but at the same point of time it carries certain
additional costs also.
Benefits and drawbacks of product development: -
The main benefit of product development is that by implementing new products a culture
of innovation takes place. Due to this high level of market share gets enhanced. On the other
hand products can get failed at any point of time even when it is not expected.
Pros and Cons of diversification: -
Diversification helps in increasing the usage of underutilized resources but at the same
point of time a situation may occur in which unexpected tax consequences can get arisen.
From the above information it has been evaluated that Verdant leisure should follow the
concept of product development. As initiating new attractive things in Holiday Park all the
individuals’ right from kids to adults would enjoy to spend some time. It is beneficial because it

would become more easier for the company to generate more revenue and attract large number
of audiences.
This matrix is beneficial for the chosen company also because it helps them in allocating
different resources in order to pursue their market share and achieve positive experience. It also
leads to more strategic based decision. It helps the business organization to consider more
growth opportunities.
TASK 2
P3 Sources of funding
There are different sources of fund which an organization can follow like in the form
investment decision making, pay- back period and so on. In context with the chosen organization
it is further being explained below: -
Investment decision making: -
Every business organization invests various things in order to grow the company at high
level, increment in the capacity and so on (Wang and et.al, 2021). There are various elements
which need to be considered before making any kind of investment like the objective, time and
many more. Companies use different types of investment appraisal and it are mentioned below: -
Pay- back period: - This method is used in order to calculate overall time which a project needs
in order to repay the original investment. It mainly focuses on cash flow perspective. It is an
effective way because it helps in decreasing the level of risk by selecting the project that gets
recovered very fast.
Net present value: - On the basis of this method it represents the current value of project future
cash flows. If the value is being positive then it means that all the cash benefits beat cash costs.
On the other hand if it is negative then the cost which is involved in the investment of project
beats present value of all future receipts.
There are diverse sources of fund on the basis of period, ownership and generation. It is
explained below: -

On the basis of period: -
Long term sources: - It refers to those bases which attains all the requirements of a business
with respect to the period of more than five years (Sirisornpattapon, 2021).For example, loans
from financial institutions, long term borrowings and many more.
Medium term sources: - It is described as that source of funds which are needed for the period
of more than one year but less than 5 years. It involves public deposits, loans from banks and so
on.
Short term sources: - It means funds which are essential for a period not more than one year. It
includes trade credit, commercial papers etc.
On the basis of generation: -
Internal sources: - It refers to those funds which are being created inside the organization only
like in the form of retained earnings.
External sources: - On the basis of these sources it lies outside the company. If there is a
situation that large amount of revenue is required to be increased then it is done through external
source only like debentures, preference shares.
On the basis of ownership: -
Owner’s funds: - It is described as those resources which are produced by the owners of an
organization whether they are in the form of partnership, sole-proprietorship or shareholders.
Borrowed funds: - It means those types of funds which are elevated with the help of loans or
any type of borrowings.
Sources of fund used by Verdant Leisure: -
 Internal sources: - It is one of the sources which a company can use at the initial stage. In
relation with verdant leisure they can use this method as it will be easier for them to earn
money within the organization only but at the same point of time they may face risk by
using such sources because there is a chance that the initial stage of development may not
be successful (Aburas and et.al, 2021)

 External sources: - The chosen organization can also use the facility of bank overdraft. It
is a very good source of short term finance which helps small and medium term
enterprises with regards to shortage of funds. It is beneficial because by using this source
a very small amount of fee is charged through which cash flow is maintained properly but
at the same amount of time the interest rate can be high due to which risks get arisen.
 Trade credit: - It is beneficial for the chosen organization to use the form of trade credit.
It allows the firm to use all their funds on the short term basis in order to finance other
elements. For SMEs it is good because it needs less amount of money while expanding
the business. On the other hand if an organization fails to meet the deadline it may lead to
less credit history.
 Angel financing: - It is defined as a source in which some stakeholders exploit in the
business organization with regards to their level of interest and achieve profits as per the
present condition of business. Verdant leisure should also choose this as a source of fund
because they would be able to connect more with the shareholders. Besides this if proper
copyright will not be there then it would directly create a negative impact on their
business organization.
As per the chosen organization the most suitable option which is beneficial is both trade credit as
well as the aspect of angel financing. As per the option of trade credit company don't need to
involve much of their revenue which is a good thing for them. Through this better revenue can be
generated. The method of angel financing is also good because on the basis of this more
shareholders would be built up and the most important thing for an organization is their
shareholders only.
TASK 3
P4 Business plan for growth
A business plan is defined as an official written document comprising of objectives of
business, methods to accomplish the goals and time-frame to achieve those targets. Besides this
it also defines the past information about the company, nature of business, overall financial
information, and certain methods to achieve the goals and so on. Every company needs a

business plan because it helps them in easily assessing certain crucial decisions and avoiding big
mistakes.
Executive summary: -
The business plan is associated with Verdant Leisure which is a holiday park company. It
comprises mission, vision and objectives of business (Lynn and Emanuel, 2021).On the basis of
this they need a business plan that supports them to fulfill high level of market share in a better
way. It helps in generating and upgrading diverse level of functions with more level of
efficiency.
Brief introduction: -
Verdant leisure is a holiday park operator which delivers self-catering lodge as well as
holiday home ownership. The company vision is to promote sustainable tourism and developing
the natural environment. The mission of an organization is to offer large range of holiday options
as per all the budgets.
Objectives: -
 Specific: - Verdant Leisure organization was completely specific about their aim which
was to promote economic development in the tourism industry and to take care of natural
environment.
 Measurable: - A clear target was being measured that there need to be 20% increase in
all the bookings.
 Achievable: - To improve the overall offerings and increment in the room packages.
 Relevant: - To offer better guest experience and room upgrades on the website
 Time bound: - Progress would be measured within the set deadline of 8 months
SWOT analysis: -
 Strengths: - The Company has high level of skilled workforce within the whole
enterprise. They have around 100 employees within the workplace and provide good

level of training to all the workers. Besides this it also leads the high satisfaction level for
all consumers. In terms of chosen organization as they are the holiday park operator they
maintain efficient level of customer relationship management.
 Weakness: - As a small and medium term enterprise high level of financial planning is
not be done due to which negative impact is being created. At the same point of time
while expanding the business to further level it becomes difficult to meet certain new
challenges in such a competitive market (Hoover and et.al, 2021).
 Opportunities: - The Company has many opportunities to expand their business
operations in the emerging market areas so that high profit can be earned and would help
them in building up positive brand image. Besides this as a SME they also get an
opportunity to increase the customer base due to which profits are earned and expansion
is effectively done.
 Threats: - Within the hospitality sector competition is very high especially in the case of
small enterprises it becomes a major hurdle. Due to the variations in external policies
create a difficult situation in order to operate the performance in an efficient way.
PEST analysis
 Political factors: - There are various ways through which a company gets influenced by
the government. By looking at the present condition of pandemic Verdant leisure faced
instability because being a small enterprise many people are not ready to visit holiday
parks so on the basis of this they also got destroyed and not being able to expand the
business operations.
 Economic factors: - Due to the financial crisis negative influence is being faced as now
profit margins are being affected and ultimately creating instability. There is an economic
downturn which leads to certain valuations.
 Social factors: - Customers preferences get changed at a very rapid scale. As almost all
the consumers want to attend some multinational holiday parks rather than in a small and
medium term corporation. There are certain people who have negative predictions due to
which high level of opportunities are not there.