Business Growth Strategies for Verdant Leisure: A Comprehensive Report

This report provides a comprehensive analysis of growth planning strategies for Verdant Leisure, a company offering holiday accommodation and park facilities. It begins with an introduction to growth planning and its importance, followed by an examination of Verdant Leisure's business model and market position. Task 1 focuses on Porter's generic strategies, PESTLE analysis, Ansoff Matrix, and sources of finance, offering insights into market opportunities and strategic choices. Task 2 presents a detailed business plan, while Task 3 assesses exit and succession options. The report concludes with a summary of key findings and recommendations, supported by references. The report explores various aspects of business expansion, including cost leadership, differentiation, market development, and financial strategies such as bank loans and internal financing. The report provides a detailed analysis of how Verdant Leisure can enhance its market share and achieve sustainable growth.

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
PESTLE analysis.........................................................................................................................4
Ansoff Matrix..............................................................................................................................5
Sources of finance.......................................................................................................................7
TASK 2............................................................................................................................................9
Business plan...............................................................................................................................9
TASK 3 .........................................................................................................................................12
Assessment of Exit and Succession Options ............................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................15

INTRODUCTION
Planning for growth is known as a strategic tool for the business in which assistance is
provided in order to trace growth. Planning for growth is an essential aspect to be used in
business expansion in effective manner. These aspects are essential for the business in arranging
their resources in such a way that effective utilisation can be drawn out and for each activity
resources can be allotted (Julita Julita and Nel Arianty Nel Arianty, 2019). These activities are
helpful for the business in attaining competitive edge within marketplace by which high
customer base can be propounded in target market. This report is prepared in order to understand
various aspects related to growth planning in the background of Verdant Leisure which is
providing fantastic on park facilities and holiday accommodation. The company has expanded
their business in Scotland, Northumberland and Country Durham. Verdant Leisure offers is
providing range of holiday options which are under budget of their customers along with high
quality. This report covers the ways in which Verdant Leisure can grow up their business and
those strategies in which success can be inhaled. In the last part of this report business plan is
prepared along with adaption of succession options within marketplace.
TASK 1
Porter's generic model
For the major purpose of recognising market opportunities this is imperative that all the
options are taken at equal level so as to have business expansion. In order to enhance revenues
there are various strategies which are required to be adopted by Verdant Leisure so that
competitive advantage can be attained. Porter's generic strategy is one of the prominent tool
which can be used by Verdant Leisure during their expansion plan and the same are elaborated
as under:
Cost leadership: This strategy can be used by Verdant Leisure in order to lower prices
for their customers so that to offer their services in comparatively lower prices. This is helpful
for the company in becoming cost leader within marketplace so as to attain a distinct position as
well. With the help of this Verdant Leisure can enhance their customer serving and sales which
may led them in earning high profits. By using this approach Verdant Leisure can place their
services with low prices and attract more customer so that to make their services highly efficient
and make more sales through it.

Differentiation: This strategy is defined as production or delivering of distinct services
so as to make offerings highly identifiable and attractive through with high edge can be received
from competitors. For instance as Verdant Leisure is providing services which are associated
with accommodation and holiday packages so by using this strategy the can enumerate high
customer satisfaction by providing innovative services to their customers. Verdant Leisure is
engaged in providing superb range of holiday packages so by providing distinct holiday
packages and facilities as well (Julita Julita, 2019).
Cost focus: Within this strategy a particular market is targetted and in the same market
services and products are offered to the customer in order to attract high customer from target
market. With the help of this strategy Verdant Leisure can provide their services in various
market segments of Dumfries which is an area in Scotland. With the help of this strategy high
customer can be attracted by Verdant Leisure in order to enhance their sales.
Differentiation focus: By taking help of this strategy Verdant Leisure can offer their
services within marketplace which are niche market in order to attain distinct competitive edge.
For this purpose Verdant Leisure may utilise this approach so as to differentiate their services
form other market rivals so that to enhance their share of goodwill and market share as well.
From the above discussion this can be evaluated that the best strategy for Verdant Leisure
is cost differentiation by which the company can attain their desired objectives so as to survive
for long term and to accomplish sustainability as well.
PESTLE analysis
This is used as a strategic tools in which micro environmental factors are identified in
order to implement several strategies so that negative impacts can be handled in better way and
business situation can be controlled. These aspects ate elaborated as under:
Political factors: These factors are associated with rules and regulation of the country in
which business is being regulated. These rules include tax policies, trade tariffs and many more.
In the context of UK as the country is highly steady in political policies so this is providing high
opportunities for Verdant Leisure to place their business in prominent manner within market.
These aspects are helpful for Verdant Leisure in their business expansion within marketplace so
that easiness can be provided to their clients (Perera, 2017).
Economic factors: These factors are associated with economic condition of the nation
which includes purchasing power of customer, fluctuation in currency rate, GDP rates, interest

rare, employment rate and many more. In the context of UK, the country is having steady
economic condition in which most of the population is possessed with high purchasing power so
this is providing positive advantages in sales and profits.
Social factors: These factors are associated with taste and preferences of living people
and potential customers. This factor includes demographic areas, cultures, shared values, beliefs,
gender and income etc. In UK peoples are possessed with high living standards in which
positive relation is provided to Verdant Leisure as due to high income capabilities more people
may use services of Verdant Leisure and by this they can enhance their sales and intensify
profitability.
Technological factors: These factors are associated with using new and emerging
technology within business so as to stay updated with latest market trends. In this factor UK is
running very high as this country has prominent name on technological aspect and this is the
reason that Verdant Leisure is getting high positive impact by adoption of technological aspects.
Verdant Leisure may use these technologies in order to add high value to their business and to
earn high profits thereon (Bismark and et. al., 2018).
Legal factors: These factors are associated with legislative laws which are existed in the
country and required to be enforced by each businesses working in the nation. In the context of
UK the country is highly rigid in law application and enforceability. This factor is having
positive implications on Verdant Leisure as the company is enforcing employment laws by
which their employees are highly motivated which directly impacts their performance and
overall efficacy.
Environmental factors: These factors are directly associated with environment factors
such as water, pollution and other regulation which have direct implications with ecosystem. In
this context UK has made several laws in which interest to environment is being protected. So
within this aspect Verdant Leisure is making high efforts to stand up with this. They are using
environmental friendly techniques in order to run their business. Similarly they are using solar
panels for electricity generation by which hazardous factors can be eliminated from environment.
Ansoff Matrix
Ansoff Matrix is defined as a grid in which market expansion plan is being adopted so that
to decide for strategy of expansion. This aspect is covering four strategies in which growth and

development plans and these can be used by Verdant Leisure so as to decide upon expansion
plan. These strategies are elaborated as under:
Market penetration: This strategy is used in order to expand business in current market
along with existing products. This strategy is adopted by those businesses who are aware about
needs of their potential customer and they are willing to expand their market size within current
market segment (Cleberg, 2019). By adopting this strategy for their market expansion Verdant
Leisure can intensify market demand of their services by meeting quality standards of their
customers needs and demands.
Market development: This is another expansion strategy which can be used by those
businesses those are willing to explore new segments of markets. This strategy is helpful in
expanding global market size which leads to develop market and customer as well. In the context
of Verdant Leisure the company is willing to enter into Dumfries which is a new area under
Scotland, so this strategy helps in enlarging their market portfolio along with adapting new
opportunities in global markets so that to inhale better options for growth enhancement.
Product development: This strategy is associated with adoption of expansion plans along
with new product within existing market so that to place new product within existing customer in
prominent manner. This strategy is helpful in enhancing brand image so as to flourish the brand

in effective manner. This strategy leads to enhancement of innovation in Verdant Leisure due to
which negative impacts can be eliminated so as to enhance overall brand equity.
Product diversification: Within this strategy company is making efforts in planning
towards a brand new product and services so that to enhance sales and customer portfolio. By
introduction of new product high profits can be earned by the company which may lead in brand
enhancement. Verdant Leisure is an organisation which is engaged in providing holiday
packages and accommodation services to their customers so this strategy could be high risky for
them in which chances of brand deterioration is high.
From the above discussion this can be concluded that the most appropriate strategy for
Verdant Leisure is market development in which they are planning to enter into markets of
Dumfries. This is helping the company in maintaining their supply chain in which customer base
can be enhanced (Loredana, 2016).
Sources of finance
Business are laced with so many business activities in which goods are manufactured and
services are rendered in order to target customer in prominent manner and to satisfy major
purpose of earning profits. For business expansion financial need is the most significant aspect
which is required to be taken by Verdant Leisure so that to execute their strategies in barrier free
manner.
Internal sources of finance:
This is linked with funds procurement by inner sources of Verdant Leisure so that to get
financial assistance. This method includes sale of fixed assets, reinvestment of profits and using
retained earnings.
Advantages Disadvantages
Internal sources of finance are effective and
economic through which Verdant Leisure can
plan for their effective control and to minimise
their overall cost so as to gather funds and to
eliminate outsiders control as well (Singh and
Wasdani, 2016).
This may provide impact on budget as this
method is having less benefits over taxation
and this may lead Verdant Leisure towards
bankruptcy.

External sources of finance:
This is related to accumulation of funds by using various external sources such as credit
loans, lease financing, debentures, bank loans and many more.
For Verdant Leisure as the company is planning to expand in new segments of Scotland
so they requires high funds in order to execute their functions in proper manner. Some of the
external sources are elaborated as under:
Bank loan: Within this method some amount can be landed from bank in making
agreement to repay along with amount of interest.
Some advantages and disadvantages of bank loans are defined as under:
Advantages Disadvantage
 This is known as catalyst for growth in
Verdant Leisure.
 As due to pandemic in current scenario
market is having shortage of cash so I
this case bank is the most appropriate
source of funds.
 This leads in enhancement of burden
over borrower as in case of less income
bank loan is required to be repaid.
 Rigid rules are held by banks and these
are associated irrespective of the usage
of accumulated funds.
Bank overdraft: This is known as the agreement which is related to bank and the party
to borrow funds. In this bank provides funds which is exceeded to the amount which is kept in
bank account.
Some advantages and disadvantages of bank overdraft are enumerated as under:
Advantages Disadvantages
 This is known as most flexible method
in which limit of overdraft can be
increased and decreased accordance
with needs.
 This method is associated with less
paper work.
 High rate of interest are charged by the
bank in which all the power is held by
the bank only.
 In financial records bank overdraft is
considered as liability.
 In the case of immediate cash
requirement this method is not proven
as appropriate (Yang and et. al., 2020).

Crowdfunding: This is termed as a source of fund raising in which funds are
accumulated in small amount from various investors so as to expand business by Verdant
Leisure.
Advantages Disadvantages
 This is highly advantageous for
Verdant Leisure in making high
attention at social media.
 Regular feedbacks are collected from
the public in this method.
 Due to high uncertainty this method can
deteriorate market image of Verdant
Leisure.
 This leads in generation of high risk of
imitation for Verdant Leisure.

From the above discussion this can be concluded that the most appropriate source of
finance is bank loan. This method is rendering funds to the company by which expansion can be
made easier by Verdant Leisure.
TASK 2
Business plan
A business plan is defined as the document in which goals and objectives of the business
along with this methods in which same can be achieved are also enumerated. This is associated
with prospectus of the company in which financial forecasting and other strategies are included.
Executive summary: Verdant Leisure which is providing fantastic on park facilities and
holiday accommodation. The company has expanded their business in Scotland, Northumberland
and Country Durham. Verdant Leisure offers is providing range of holiday options which are
under budget of their customers along with high quality.
Vision: Verdant Leisure is willing to enhance their customer base by providing them
quality services.
Mission: Major mission of Verdant Leisure is to establish their business in new market
segments of Scotland.
Goals: Verdant Leisure is aiming to enhance their customer base and sales by giving best
quality services in reasonable prices to their customers in order to enhance brand image.

Objectives: The company is willing to enhance their customer base by 20% and sales by
22% within the year end of 2022.
STP framework: This model is helpful in recognising most attractive and advantageous
portion of the marketplace in which services and products of the company can be placed in
effective manner. This aspect helps the business in making high profits along with high market
prominence. For Verdant Leisure for the major purpose to identify the most advantageous market
this framework can be used by them.
Segmentation: Within this stage Verdant Leisure is dividing their market in different
section on the basis of a particular characteristics. In this aspect market needs are determined by
Verdant Leisure so that to fulfil the same in effective manner. Verdant Leisure is bifurcating
their market on the basis of geographical and behavioural aspects in order to understand demands
of varied population (Diller and et. al., 2016).
Targeting: Verdant Leisure is targetting their marketing plan of action by adopting
strategy of acquisition so that to build healthy relationship with their customer and to meet needs
as well.
Positioning: Verdant Leisure can provide position to their services so that the same can
be accessed by potential customer. This is the aspect in which supply can be regularise by
Verdant Leisure so that customer can be reached in proper manner.
Strength of the business:
 Verdant Leisure is providing high quality accommodation services in economic prices
and this is leading them to step ahead in innovation.
 The company is having high market image due to high quality services.
Resource allocation: This is a significant activity in which resource can be allotted to
each activity so as to inhale growth options.
Total estimated budget: This is an essential activity in which expenses can be
determined so as to conduct all the activities in proficient manner.
Particular 31/12/20 (£) 31/12/21 (£) 31/12/22 (£)
Implementing technology cost 10000 10000 8000
Promotional expense 12000 13000 10000

Installation of machines 30000 31000 25000
Shop expense 7000 8000 9200
Training charges 9000 10700 8000
Total Cost 68000 72700 60200
Cash flow statement: This is a statement which is assisting the flow of cash within
Verdant Leisure. This is helpful in giving exact position of held cash in order to understand
business liquidity. This includes all the cash flow which are about to be paid and to be received
as well.
From the aforementioned cash flow statement, it can be ascertained that company is
having generous funds available in order to pay expenses that help them in future sustainability.
The firm is having cash flow of $7700, $200 and $1300 for years 2021, 2022 and 2023 that
shows the sufficient availability of cash.

Monitoring and controlling: This is known as last step in which control over the
expansion plan can be enumerated. Verdant Leisure is adopting key performance indicator in
order to control and monitor their project (Băncescu, 2016).
TASK 3
Assessment of Exit and Succession Options
Exit Plan: Every business must be having an exit strategy in order to determine that what all
monetary benefits will be achieved by the owner of the business when the business will be
closed. This exit strategy must be pre planned which should be there since the initial stage of a
business. The main aim to have a exit strategy is that to determine the amount of money which
the owner of a business will get at the time of exiting the market or business. This exit strategy
must be prepared by each form of business organisation as every type of business faces a
saturation point and after reaching this point the owner wants to exit the market. The following
are the ways through which a person can plan his exit plan with its advantages and
disadvantages:
Winding Up: When a business wants to end its identity which is also known as
liquidation of the business, the process of winding up takes place. As the business entity is
considered as a legal personality under law, the life of the business comes to an end. There can
be various reasons for adopting this exit plan such as compulsory winding up as ordered by the
court or because of wish of the owner of business (White and Cicmil, 2016).
Advantages: In this exit plan there will be
reduced burden of debts upon the owner of the
business as by selling the assets of the business
debts will be discharged. If the business was
making profit at the time of winding up, the
remaining funds after discharging the debts can
be invested in new opportunities.
Disadvantages: The major disadvantage of
this exit plan is that all the assets of the
company will be sold. Also there is a
possibility that all the creditors will not get
their money if the business wind up at time
when it was facing losses.
Sell in Open Market: In this the business will not lose its existence but the ownership
will be transferred through selling the business. The business can be sold either to any person or
any other company.

Advantages: If at the time of selling the
business, it was making huge profit the real
owner of the business will be getting high price
so that financial resources can be enhanced.
Disadvantages: Selling business is a time
consuming process and the situation can arise
where the owner will get the price less than the
expected one.
Succession Planning: Every leader of the business must retire on a particular time so it is
necessary to nurture a new leader to whom the succession of business can be given. The
following are the plans for succession:
Mergers: In this two existing businesses merge with each other to create a new business
to enhance their resources and increase their market share.
Advantages: The financial resources of both
the business will be combined and also the
working capital would be enhanced.
Disadvantages: It can become a reason of lay
off for employees. Also if the two different
business merges with each other, the
functioning of both the businesses can become
complex.
Acquisitions: In this the one business will be acquired by the another business and the
acquirer will be act as the parent company. For example Microsoft acquired Nokia.
Advantages: The market share of the business
will be enhanced as the loyal customers of the
acquired business will shift towards the
acquirer (Dickinson, Wangerin and Wild,
2016).
Disadvantages: It can have a negative impact
upon the employees of acquired business as
they can face difficulty in the new working
culture.
The Verdant Leisure must adopt for the acquisition by another big company in the
hospitality industry. By this the company will not lose its existence as well as its customers and
can also lead in giving more better services to people.
CONCLUSION
From the above report this can be concluded that growth planning is an essential aspect
of the business in which effective plans can be executed. With the help of examining various

opportunities market can be understood and by applying various strategies such as Porter's
generic model, Ansoff growth matrix these opportunities can be converted into success. On the
other hand these expansion plans are required of high funds and with the help of various
methods. At last by taking help of various entry methods existence can be sustained by the
business.

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