Strategic Planning for Growth: An Analysis of Zirra's Business Model

This report examines the growth strategies of Zirra, a financial service provider, focusing on key considerations for growth, market analysis using the Ansoff matrix, and potential funding sources like equity shares and loans. It formulates a business plan with financial and strategic objectives, and explores exit and succession options. The report analyzes Zirra's market position, profitability, and employee impact on growth, emphasizing the role of technology and digital transformation. It discusses market penetration, development, product development, and diversification strategies for Zirra. The report also provides benefits and drawbacks of equity shares and loans as funding sources. The report is a comprehensive analysis of Zirra's business development, offering insights into its growth potential and strategic planning.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key consideration for growth opportunities in organisation context..................1
P2 Evaluation of opportunities of growth by using Ansoff matrix.............................................3
TASK 2............................................................................................................................................5
P3 Potential sources of funding with each one benefits and drawbacks.....................................5
TASK 3............................................................................................................................................7
P4 Formulation of business plan for growth with financial and strategic objectives of scaling
up.................................................................................................................................................7
TASK 4..........................................................................................................................................10
P5 Exit and succession option for business with its benefits and drawbacks...........................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In modern scenario, planning is a highly essential part for a business process in which
managers have to focus on maximising the return. Planning for growth can be stated as a process
in which the factors which enable an organisation to grow and get success can be determined so
that competitive advantage can take place. In this report, company taken is Zirra which is
financial service provider for people who have unique idea of starting up a new business. This
company was established in 2014 and their turnover is approx 2.3 million dollars and their
employee strength is approx 20 (Est)+ 6% (Zirra. 2017).There are certain elements which will be
discussed in this report like key considerations which will be included while growing. Moreover,
a business plan needs to presented by management in which follow up can be taken of in
effectual manner and for that funding is being required in order to conduct deep analysation.
TASK 1
P1 Analysis of key consideration for growth opportunities in organisation context
In a marketplace, focus of every business is on making their operations on big scale and
effective so that they can gain competitive advantage. In this, manager needs to identify all the
elements so that they can make them effective in nature. With opportunities and development
elements, there are various risk factors which are being attached with it and thus it is main role of
manager to reduce the chances of factors by making effective policies and strategies (Ward,
2016). There are various key considerations which needs to taken in account so that
opportunities can be acquired in an effective and appropriate manner: Turnover: Growth measurement becomes possible via turnover of the business process
which enables various options to regulate the operations which are taking place in an
appropriate manner. Current funding of Zirra is approx 41.6 million which automatically
states that they are conducting their operations in right direction. This also mean that the
are able to attract large group of customers.
 Market share: It is highly essential for an organisation to conduct analysation in
marketplace and that too in deep manner so that decision-making process can be more
effective in nature and thus in turn can help company to get sustain and attain market
place (Wu, 2015). This in turn can enable them to incorporate all the changes which are
taking place with growth-oriented process. The current growth rate of Zirra is around
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5.3% which is enhanced and giving competition to other companies. Major competitor of
this company is AdmantaX with growth rate of 5% .
Illustration 1: Market Position of Zirra, 2017
(Source: Zirra's market Position, 2017) Profitability: Growth of a company is directly linked with the profitability ratios which
needs to be taken by management. The main focus of managers should be on every kind
of tasks and activities so that effective ratios can be extracted. Profitability ratio of
company is being enhancing in past few years as they are majorly focusing on providing
benefits and opportunity to people who have innovative idea to start up business in UK
along with investors. Staff: For obtaining growth it is highly required to have side of employees and that can
be done by hiring new skilled and capacitive workers. The main role is being played by
staff members who gets directly connected with customers on daily basis and thus
improve their capabilities (Wynn, 2017). Above stated graph of Zirra, determination can
be done of 20 employees by which management can obtain growth rate of 5.3% within 3
years. This kind of graph can directly states that employees are giving high level of
performance for attaining objectives. Advanced Technology: Interrelation is present between growth and technology. For
obtaining growth in a business it is highly essential to have latest technology so that
expansion can be done. Zirra has adopted latest technology in order to obtain growth and
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acquire large group of customers. With the help of digitalisation, business can perform at
global level and thus management can take further steps into account which are already
framed. The basic information is being described below of Zirra:
Mission:
“Main focus of Zirra is on eliminating need of labour gathering human data and analysis. We
also empower investors, executives and everyone else with the utilisation of toolbox of analysis
outputs that has been traditionally available to few.”
Work:
 Gathering data about several companies Gathering and providing accurate detail regarding an organisation in order to carry down
beneficial decisions.
Founded and founders:
Company was established in 2014 and working team members are:
 Moshit Yaffe – Co founder and CEO
 Aner Ravon – Co founder and CPO
 David Hessing – CTO
P2 Evaluation of opportunities of growth by using Ansoff matrix
Expansion of business mainly is done by acquiring large number of customers and
expanding business operations. The main focus of every kind of business is to gain high number
of customers with whom they can maintain long term relations. Growth opportunities can be said
as process in which company enables themselves in generating more revenue. Therefore, when a
business tries to enter into new market, formulation of audit plan is being required so that all
kind of benefits and drawbacks can be determined (ZHANG, ZHAO and CHEN, 2013).
For entering into new marketplace, Ansoff matrix needs to be evaluated by which market
can be analysed and thus can be utilised in developing business (Ansoff Matrix – The growth
share Matrix of Ansoff. 2017):
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Illustration 2: Ansoff Matrix
(Source: Growth share of Ansoff, 2017) Market penetration: In this kind of approach, the main focus of the company is on
analysing market and actual needs and wants of the customers so that they can be
satisfied in maximum manner by effectual products and services. This kind of approach
needs high fund to invest in marketing and process selling. In order to promote, various
campaigns can be launched so that market share can be launched. The major purpose of
using this kind of approach is to obtain high competitive advantage along with market
share (Ziari and et. al., 2012). More growth opportunities can be acquired by targeting
new market share so that various effectual modifications can be done and thus by usage
of digital technology new user can be determined. Market development: The major element for growth of a business is the area of
expansion where all the needed process takes place. The main focus of managers is on
expanding the area of business by developing the activities into new market world. This
in turn will let them improve profitability and productivity (Barbour and Deakin, 2012).
This also lead and incur more and more cost on the area of expansion and thus existing
offerings and new market will require high fund. By introducing business at new level,
growth can be attained by Zirra and thus they would improve number of services which
are being provided by them. In current scenario, cited firm is dealing in providing
framework of advices to investors as they provide effective guidelines to them regrading
investing in small scale business. Market segments will be done when the business
process will move onto next level of expansion and various tools and techniques will be
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utilised for enhancement and development. In order to position services for effective
outcomes, best one needs to be chosen out of number of segmentations. Apart from this,
operations will be merged with other consultants who have experience in establishing
brands over such market. This in turn aids them to deal with proper manner so that targets
can be completed in effectual manner. Product development: In this kind of approach, the main focus of an organisation is to
develop product with high quality so that whenever customer consumes it, satisfaction
can be provided. In order to get sustainability in market place, company needs to be adopt
various tools and techniques so that customers can be attracted like creating new products
and modifying existing ones. This is utilised by Zirra as it is mandatory for them to adopt
latest technologies so as to provide better facilities to investors. In present scenario, they
are working as mediator between start ups and investors (Beatley, 2014). This is helping
out in conducting operations more effectual in nature and gain heavy returns from the
potential of start up.
 Diversification: The another major element which can be applied by Zirra in order to
create effective products and services with bumper offers in new market specially. As a
venture capitalist, they can carry out effective operations and can arrange funds for small
business enterprise. This in turn will help their business to work in better manner and
effective outcomes will be attained in expected manner.
In Zirra, best option which can be chosen is Diversification and that can be applied while
conduction of operations. This in turn will enable them to create new and attractive offers in
market place (Chen and et. al., 2014). By this, they can undergo analysation of various firms who
have potential to make their turnover high and generate revenue. In order to garb large number of
customers, they can be suitable option.
TASK 2
P3 Potential sources of funding with each one benefits and drawbacks
Equity Share:-
These are ordinary share of company which provides equity right to shareholders or in
other words we can say that it is source of raising capital through sale of shares in business. After
becoming the owner of company,enjoy dividend, right to attend board meeting , voting rights
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and also participate in important decision making but rate of dividend is not fixed depend upon
profit of company . In case of winding up of company equity share paid back after settling the
claims of preference shareholders. It also get share in sweat equity, right share. If we considered
Zirra as source of finance at the time of start then following are advantages and disadvantages.
Advantages:-
 Under this funding is committed to our intended projects only and investor invest funds
only when business is doing well through sale of shares to new investors.
 Investor funding enhance the idea generation capacity and open the gate for growth and
profitability of business.
 Entrepreneur not required to pay interest to bank which reduce their cost and provide an
opportunity to use capital amount in various business activities (Eddleston and et. al. ,
2013).
 Some venture capitalist , investors provide valuable professional advice, experiences,
skills to our business.
 They also assist at the time making strategies, policies, financial planning which give
future benefits to business.
 If company performance is satisfied them also prepared to provide follow up finding in
future also.
Disadvantages:-
 Funds raise through equity share is time consuming, costlier, risker and also take away
the management team from core activities of business.
 Fully depends on investors create hurdles at the time of taking any fianancial decisions.
 Their are some compliances and legal rules which must be adhere at the time of
promoting investments.
Loans:-
Loans are borrowing amount or in other words sum of amount expected to paid back with
interest. If financing from debt is chosen as option then business raise fund for working capital,
capital expenditure by selling notes to investors.
Advantages:-
 Increase in funds leads to more earning and profits.
 Debt holder do not always right in decision making of management.
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 Reduction in tax at the time of interest payment.
 Their is always obligation for debt payment which leads to good cash control
management.
 From debtor point of view time period of making payment is large so there is no burden
for immediate payments (Galland, 2012).
Disadvantages:-
 Risk factor increases because of non payment by debtors.
 Lenders have first claims on funds if business fail to operate.
 Regular repayments of both interest and principal.
Friends and Family:-
If individual not getting both equity and debts financing according to his budget then next step is
to approach family,friends for their start up. Under this business owner get finance on easy terms
and payment obligation is somehow liberal as compare to above both financing.
Advantages:-
 Risk burden is reduce because of less interference by lender.
 Owner use the amount of finance with full confidence at any business they wants to
invest specially in start up cases without using own money.
 Their is no cost to using this money in terms of an interest rate.
 No need to fulfil l legal obligation as compare to equity and debts.
Disadvantages:-
 Most entrepreneurs have limited amount at the time of startup which limit what business
can purchase.
 Sometime borrowing from family, friends create conflits in long term relationship.
 Entrepreneur has limited knowledge of market where he or she going to start business so
entrepreneur loose everything.
TASK 3
P4 Formulation of business plan for growth with financial and strategic objectives of scaling up
Companies running in marketplace has a common vital element and that is planning
which is basically constructed of legal statements towards the way through which aims and
objectives of firm can be attained. This in turn requires accurate and genuine data of the
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company along with its background so that operations can be executed in effective manner.
There are various direct impact on the process of planning and most essential one is dynamic
nature of environment which changes on regular interval of time (Levy, 2016). So the plans and
strategies formulated should be flexible in nature so that success can be seen along with market
experience. There are various number of motives which are also present and that are attraction of
finance, team members and management process. Effective planning is being required for
marketing by managers so that competitive advantages can be gained and thus sustainability can
be obtained. The major purpose of marketing plan is to provide boost to the existing product
modification so that large amount of customers can be attracted and thus they can be satisfied in
maximum manner.
 Institution's Introduction: Zirra is one of the famous and popular company in
marketplace which was established in 2014. The major work of this company is to
provide guidelines and tools regrading funding and other resources. In common language,
it stands as mediator who is non biased in nature among investors and start ups and also
provide crystal clear factors and other required elements so that actual scenario can be
gained by both of the parties before providing investment and other resources and
conduction of operations. with success it has acquired big market share
and there are many customers connected with them. This have
improved their turnover and it has reached up-to 2.3 million dollars
and thus they are adopting various marketing strategies for
enhancing their business process.
 Aims and Objectives: Every company has aim to become successful
and take leading position in marketplace and this is the same vision of
Zirra and for that they provide every bit of detail regrading company
which they will be dealing with along with investors (MacLeod, 2013).
This will allow them to gain exact and accurate details which
investors will seek out so that money can be given in good hands and
chances are more for return. Apart from all those, aim of company is
on providing benefits to social and economical factors so that
upliftment can be seen in living standards of people. Zirra being a
financial provider always look out for the people who have fantastic
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innovative ideas with them but they do not have sufficient resources
to apply it. The main motive of the company is to provide honest and
effective services to the both the parties so that long lasting
relationship can be created and productivity can be improved along
with profitability ratios.
 SWOT Analysis:
STRENGTH
 By the help of attractive offers and
packages, more customers can be
acquired and attracted.
 There are certain and deep details are
gathered as per the demand of
customers and this in turn helps them
out to gain knowledge which might be
use in futuristic situations.
 Providing vital data and information
about the another party saves a lot of
time and thus decisions can be made in
ease manner. This kind of business is small in nature
and thus it allows them to be effectual
in nature along with promotions as
well.
WEAKNESSES
 Company uses certain methodologies
and sometimes they might not be
effectual and extract out the information
which is being required.
 Since company has been established in
2014, they do not possess high
knowledge and experience. Moreover
they do not have much high skilled
workers and this in turn may give birth
to major issues.
 This company is small in nature and has
been out of reach to many of the people
who are looking out for investors in
their business (Moseley, 2013).
OPPORTUNITIES
 Number of employees can be increased
as this is a new company and growing
because of the connectivity to digital
world as well.
 Brand reach can be enhanced in order
to improve the profitability ratios.
THREATS
 Goodwill of the company can be
affected in negative manner if the
targets are not being attained and along
with that there are high chances of
hampering relation among investors.
 Presence of competitors in marketplace
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 Saving Vital data regrading companies
and creating secured database for it. There are various countries which are
developing and thus they can be
targetted in order expand the area of
business (van Assche and Beunen,
2013).
can create high risks.
 Due to dynamic environment, cautions
are highly needed.
 Large amount of data is being collected
and it needs to be maintained. So
questions arise that how will it
happen. ?
 Budget:
Particulars Amount
Marketing activities:
Advertising 45000
Direct selling 25500
Sales promotion 9500
Total 80000
 Monitoring and Controlling: At the last stage, implementation of plan is being done so
that optimum utilisation of resources is being done and it is duty to managers to monitor
them and provide modifications and updates along with time.
TASK 4
P5 Exit and succession option for business with its benefits and drawbacks
In order to make a business successful, it is required by an owner to devote all his time
and resources along with efforts. This will enable them to know all the elements which reside in
business and appropriate person who can handle the business in future time. Time is being taken
by small kind of business in order to implement blueprints and long term business plan and thus
it takes more time for getting sustainability (Schetke, Haase and Kötter, 2012). Options which
are stated below: Options:It is highly essential for a business process and its owner to seek out for all kind
of options which are available in market share and thus best one should be selected for
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implementing plans and policies. This in turn will have clear vision regarding benefits
and drawbacks of operations which are being conducted. The major drawback of this
kind of approach is after some time roles and responsibilities will be transferred to
another person who may not be effective in nature and handle all the issues. Candidates: Determining the candidates who actually deserve due to their possession of
various skills and capabilities. Person should have capabilities to have calm mind even in
adverse situations and can deal with them with effective outputs. Apart from that,
generally business is being transferred to son or grandson and when the power of attorney
is being transferred, person might not be of legal age so for that certain time another
experienced person can handle all the activities (Todes, 2012). This has major advantage
that legal age of business would not get affected and business can be expanded by an
experienced person. Drawback can be said as person who is experienced may not be able
to handle all kind of situations.
 Evaluation: The owner of the business process should evaluate operations and keep
regulating them so that chances of error can be minimised. Another candidate can be
chosen if the present one is not performing up to the mark. The major benefit of this kind
of business is that business will be right hands for a long period of time while drawback
is that if candidate is being changed then it will consume time and money regrading
training sessions (Valler, Phelps and Wood, 2012).
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CONCLUSION
From the above report, it can be concluded that for attaining growth and success, it is
required to have effective planning and thus they need to select a person who have better
knowledge and skills to forecast for the future. In order to make perfect plan, it is highly required
to have usage of Ansoff Matrix so that development can take place within an organisation. There
are various sources by which investment can be arranged for a start up so that tasks and
objectives can be achieved in positive and effectual manner. Apart from that, there are business
plans made which are being made to extract benefits for the organisation by providing various
products and services to customers at maximum satisfaction. In order to make growth and
development in a business process, there are variety of operations and among those best one
needs to be chosen so that aims and objectives of firm can be attained in effective and efficient
manner.
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