Zirra: Analysis of Growth Opportunities and Business Planning Report

This report provides a detailed analysis of Zirra, a financial service provider, focusing on its growth strategies and business planning. The report begins with an analysis of key considerations for growth, including turnover, market share, profitability, staff, and technology. It then evaluates growth opportunities using the Ansoff matrix, exploring market penetration, market development, product development, and diversification. The report also examines potential sources of funding, such as equity shares and loans, outlining their benefits and drawbacks. Furthermore, it formulates a business plan for growth, defining financial and strategic objectives, and concludes with a discussion of exit and succession options for the business. The analysis utilizes various sources and frameworks to provide a comprehensive overview of Zirra's growth potential.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key consideration for growth opportunities in organisation context..................1
M1...............................................................................................................................................3
P2 Evaluation of opportunities of growth by using Ansoff matrix.............................................3
D1 ...............................................................................................................................................5
TASK 2............................................................................................................................................5
P3 Potential sources of funding with each one benefits and drawbacks.....................................5
M2...............................................................................................................................................7
D2................................................................................................................................................7
TASK 3............................................................................................................................................7
P4 Formulation of business plan for growth with financial and strategic objectives of scaling
up.................................................................................................................................................7
M3...............................................................................................................................................9
D3..............................................................................................................................................10
TASK 4..........................................................................................................................................10
P5 Exit and succession option for business with its benefits and drawbacks...........................10
M4.............................................................................................................................................11
D4..............................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
For a business process, planning is a highly essential element for growth of business in
which the main focus of managers is on maximising returns. Planning for growth is a process in
which there are various kinds of factors which have potential to make the business grow and get
success which in turn can lead to grab competitive advantages within marketplace (Barbour and
Deakin, 2012). Company taken for this report is Zirra which is a financial service provider for
the kind of people who have a unique idea of starting up of new kind of business. This company
was established in 2014 and their turnover is approx. 2.3 million dollars as well as their
employee strength is around 20 (Est) + 6%. There are various elements which are being
discussed in the report like key considerations included while growing. Moreover, a business
plan is presented by management in which follow up can be taken of in an effectual manner and
for the same, funding is required in order to conduct in-depth analysis.
TASK 1
P1. Analysis of key considerations for the growth opportunities in organisational context
The main focus of every kind of business is on conducting their operations on a large
scale and making it much more effective and gaining competitive advantage. All the elements
are needed to be identified by manager in to allot them at appropriate place. Vital role is being
played by the manager as he\she makes effective and better plans as well as strategies for the risk
factors which come along with various opportunities of development. There are various key
considerations which are being taken into account and these are being described as below: Turnover: Through the turnover of business process, measurement of growth becomes
possible which in turn enables them to monitor their operations that are being conducted.
Zirra's funding is approx. 41.6 million which is being utilised in conducting of
operations.
 Market share: For an organisation, it is highly essential to make decision-making process
much more effective and that is done through analysis of marketplace in an in-depth
manner (Brinckmann, Grichnik and Kapsa, 2010). This can provide various kinds of
benefits like bringing sustainability and implementation of modifications in the growth
oriented process. The current growth rate of Zirra is around 5.3% which is enhanced and
giving competition to other companies. Major competitor of this company is AdmantaX
with the growth rate of 5%.
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(Source: Market Position of Zirra, 2017) Profitability: Earning profit ratio is directly linked with the growth of company. It is the
main duty of manager to make certain strategies in order to conduct all tasks and
activities so that expected ratios can be obtained. The main focus of company is on
providing benefits to people who have innovative ideas for starting up of business. Staff: It is necessary to have favour of employees for obtaining the growth. High
performance is the key factor through which an organisation can obtain success. Staff
members play a major role as they are the one who represent company in front of
customers on regular basis. Above stated graph of Zirra, identification can be done of 20
workers by which management can attain success rate of 5.3% within 3 years. Advanced Technology: There is relation in between the growth and technology. It is
highly essential to adopt the latest technology in order to obtain growth so that expansion
of business process can be done (Chapin, 2012). Latest technology has been adopted by
Zirra for availing various kinds of benefits. The basic data which is being described
below of Zirra:
Mission:
“Principle focal point of Zirra is on taking out need of work gathering human information and
examination. They additionally engage speculators, administrators and every other person with
the usage of tool compartment of investigation yields that has been generally accessible to few.”
Work:
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 Collecting data regarding various companies Collecting and giving accurate data for an organisation for making better decisions
Founded and founders:
 Company was established in the year 2014 and working team members are:
 Moshit Yaffe – Co founder and CEO
 Aner Ravon – Co founder and CPO
 David Hessing – CTO
M1
There are various options which are being taken into account while making company get
growth and success. Most essential among those is planning through which every task and
activity can be conducted in a smooth manner. Apart from that, there are various other elements
like staff, advanced technology and mission which play a crucial role in the growth and
development of company.
P2. Evaluation of opportunities of growth by using Ansoff matrix
Business is being expanded by capturing a large number of customers and expansion of
clients from various other places. The main focus of this every kind of business to gain
customers and create long term relations with them (Christofakis and Papadaskalopoulos, 2011).
Formulating an audit plan is highly essential while entering in a new market so that pros and
cons can be recognised. While taking a step into new market, Ansoff Matrix can be evaluated
through which market can be analysed and thus, can be utilised in developing the business.
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Illustration 1: Ansoff Matrix
(Source: Growth share of Matrix , 2016) Market penetration: In this kind of approach, main focus of company is on analysing the
market for actual needs and wants of customers so that satisfaction can be provided by
goods and services. High kind of investment is needed in this of approach and thus, in for
promoting, number of campaigns can be launched within marketplace. There are various
growth opportunities which can be availed by new market target so that modifications
can be done by adopting the digital technology. Market development: For growing up of business, it is highly needed to have an area of
expansion where all the required processes can take place. The priority of managers is on
expansion of business process by developing activities in a new market. This will in turn
improve the production and profit ratios. Zirra can obtain growth by introducing business
at new kind of level and thus they will improve the various services which are being
provided by them (Eddleston And et. al., 2013). In the present situation, firm is being
dealing in providing framework of advices to investors as they provide guidelines to them
regarding in small scale business. Segmentation of market is being done when the
business process will move onto next level of expansion along with various tools and
techniques. Besides this, operations will be merged with other consultants who have high
experience in establishing the brands. Product development: In this kind of approach, product developing is the main focus of
an organisation and through this they satisfy the customers in better manner. There are
various tools and techniques which are being utilised to attract the customers by creating
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new kind of products or doing modification in existing ones. This is being utilised by
Zirra as it has became mandatory to adopt latest technology so that facility to investors
can be facilitated (Grover, Bokalo and Greenway, 2014). In current situation they are
acting as mediator between starts up and investors. This is providing them assistance in
conducting of various operations and thus gain heavy returns from business.
 Diversification: The another factors which can be applied within Zirra so that products
and services can be created with attractive offers. There are various effective operations
and thus funds can be arranged for business process as Venture Capitalist. This in turn
will help business to work in better and effective manner.
In Zirra, diversification can be stated as best option which can be chosen and can be applied
while conduction of operations. This will in turn enable them to create new and attractive offers
in marketplace. Through this they can undergo analysation of various firms who are capable of
availing high turnover and revenue generates. This option is best suitable.
Another option is BCG matrix-
Boston consulting group designed a matrix in which they create plan for a long term
benefit like to invest in which sector, to discontinue with their products or not. It include four
parts dogs, question mark, cash cow and stars. For these Zirra implement stars factor in BCG
matrix as diversification help company to gain more customer from the market. The second
option is of cash cow which help company to generate more customer with their existing
products.
D1
According to Wu, (2015) , there are various kind of risks which are being involved in the
growth and development of business process. Ansoff Matrix is being applied by the company
when they are putting their hands into new market. There are various kind of approaches which
are being followed within Ansoff Matrix and amongst them, diversification has been applied by
Zirra for making new market successful for company.
TASK 2
P3 Potential sources of funding with each one benefits and drawbacks
Equity Share:-
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Equity share can be defined as ordinary share which mainly provides equity rights to
shareholders or in simple words, it can be stated as source of raising capital by sales of share in
business. After becoming the owner of company,enjoy dividend, right to attend board meeting ,
voting rights and also participate in important decision making but rate of dividend is not fixed
depend upon profit of company (Hough and et. al., 2010). Equity share can be paid back in case
of winding up of company after stetting up of 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:-
 In this, commitment of funding is being done to intended projects and thus investor invest
the capital when only the business is doing well by sales of shares to new kind of
investors.
 Idea of capacity along with growth and profitability ratios are being enhanced by
investors.
 Cost is being reduced as entrepreneur is not required to pay interest to the bank and
provide platform of opportunities for utilising capital amount in business activities.
 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 are being raised by equity share and that is time consuming, costlier, riskier and
also take away the management team from the core activities.
 There are many kind of obstacles which are being created by investors at the time of
taking financial decisions.
 There are some compliances and legal rules which must be addressed at the time of
promoting investments.
Loans:-
Credits are acquiring sum or as such whole of sum anticipated that would be paid back with
interest. On the off chance that financing from obligation is picked as alternative then business
will raise funds for working capital, capital use by pitching notes to investors (Keough, 2015).
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Advantages:-
 Funds increment leads to more profits and earnings.
 Tax is being reduced at the time of interest payment.
 There are always obligation for the debt payment which leads to effective cash control
management.
Disadvantages:-
 Due to non payment by debtors, risk factor is being increased.
 If the business fails, then the lenders have first claim on funds.
 Regular repayments of both interest and principal.
Friends and Family:-
In the event that individual not getting both value and obligations, as per budget then following
stage is to approach family,friends for their start up. Under this, entrepreneur get fund on simple
terms and instalment commitment is some way or another liberal as contrast with above both
financing (Li, Mobin and Keyser, 2016).
Advantages:-
 Burden of risk is being minimised due to less interference by lender.
 Amount of finance is being used by owner with full confidence at any business and thus
can have better chances of expected outcomes.
 Their is no cost to utilising this fund in terms of an interest rate.
 No need to fulfil legal obligation as compare to equity and debts.
Disadvantages:-
 There are limited amount of funds available for an entrepreneur while starting up of new
business.
 Sometime borrowing from family, friends create conflicts in long term relationship.
 There is limited knowledge of market which entrepreneur possess and this can hamper
the process of business.
Business angel investor
The angel investor is an individual who have high net worth and they provide monetary
support to establish a new venture. Angel investor provide funds to a new business to support
them in their early stage.
Advantage:
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Angel investor built a business from its initial stage till its development stage.
These types of investment is beneficial because angel investor require less rate of returns.
Disadvantage
Angel investor provide business one time investment to a new business. So to raise more funds
entrepreneur has to deal with more persons.
As it is a new start up for a business so in these case investor have high risk to loss it money.
Crowd funding
It is the collection of small amount of funds from large number of individuals for a new
venture. This collection can be done through website or by network of people.
Advantages
To start a crowd funding, individual does not need any special qualification.
Crown funding is easy to start because in these there is no need of presentation nor a business
plan is required.
Disadvantage
In the crowd funding entrepreneur interact with different numbers of people. So at time convince
or sharing idea with large number of people important information can be leaked and rumours
are generated in regard to company information.
Venture capital
In the venture capital investor provide funds to small companies. Venture capital include
support in monetary terms as well in technical and managerial support also. From the past few
years venture capital is increasing because by it company easily raise funds.
Advantages
Venture capitalist provide support to companies in different ways. Like by they provide
financial support and expertise advise to different companies.
Disadvantage
The drawback that is the major loss of Venture capital is that when venture capitalist
provide funds to a start up then company has to loose some share. So they hold the power to take
decision.
M2
There are various sources of funding through which a business can arrange funds and can
start up the business process. Various ways can be like issuing of equity share, bank loan or it
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can be from relatives. These kind of ways are most chosen by the new company who wants go
set up their footmark in marketplace (MacLeod, 2013). For Zirra, as it is medium size company,
it can opt for Equity share as this will be suitable way as there are number of benefits which are
being availed like no interest, time effective strategies, returning money only after getting profit
and many others.
D2
According to Burton, (2010) , Zirra has adopted most effective techniques for arranging
some funds and that is issuing up of equity shares through which company can obtain enough
funds for stepping up in new marketplace. There are some barriers while adopting this kind of
way for arranging funds like this process is time consuming, costlier, riskier and investors who
are buying up shares can create some obstacles as in legal issues.
TASK 3
P4 Formulation of business plan for growth with financial and strategic objectives of scaling up
There are some companies which are running in marketplace and are focusing on
planning which is being done for constructing of legal statements by which aims and objectives
can be attained in effective and efficient manner. There are number of impacts while processing
the plans and strategies and all the impacts are being obtained through dynamic nature of
environment which changes on regular interval of time. Plans and strategies should be flexible in
nature so that success can be obtained within marketplace. In order to gain competitive
advantage, managers needs to make effective planning in marketing and thin turn will also help
in bringing sustainability (Mitchelmore and Rowley, 2013). The motive behind formulating of
marketing plan to provide certain changes in existing products so that large number of customers
can be grabbed along with market share. Some of the objective is as follow:
 The first objective for a finance company is to keep accurate records. It includes all
factors such as tax, debt and future plans.
 To maintain the cash flow and fund flow for the whole year. It help to record all the bills
and earn revenues that take place in the whole year of company.
 For overtaking the advantages that help company to maintain their customer service.
 To develop the wider range of products from its competitor.
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