Planning for Growth

TASK 1

P1 Analyse of key considerations to evaluate growth opportunities

There are various strategies will be determined by an organisation so it is easy for management to enhance their business area as well as number of operations for increasing revenue and productivity of business. Porter generic model and PESTLE are mention as follow to expand business operations.

Porter's generic model

• Cost leadership- Knights and Dukes monitor daily operations of organisation constantly to reduce overall cost of their operations and functions. So by offering cost-efficient products it is easy for management to gain competitive edge in market through implementing cost leadership strategy in their operations (Abolhosseini and Heshmati, 2014).
• Differentiation- In context of Knight and Dukes management must develop better strategy for formulating better infrastructure for a building. This refers with creative and new design it is easy for company to attract more number of customers effectively. Example- all design offered by knight and dukes are flexible towards bad weather condition such as water harvesting, natural light etc.
• Cost focus- The main target of cost focus is to target the market through offering all products and services at low prices for enhancing the sale of their products. From perspective of Knight and dukes it is mandatory for management to utilise cost focus strategy to manage business at global level (Bozer, Levin and Santora, 2017).
• Differentiation focus- According to this strategy market is focused by organisation through offering unique products that helps Knight and dukes to approach more number of customers. Along with this it helps to increase goodwill as well as profits for organisation.

By the above analysis it is determine that focus strategy is implemented by organisation to gain better results for entering into new market to attract more number of customers. This results profits and sale of organisational products is increases with rapid speed.

PESTLE analysis

This work as the strategic tool that helps to understand and analyse macro environment of an organisation. So it is easy for company to formulate those strategies which helps to deal with negative aspects of environment.

• Political- Political aspects refers to undertake those rules and regulations which are formulated by country such as tax rates, trade activities, policies etc. In context of UK this is a political stable country due to which there are less modifications in business related policy. So it is easy for Knight and Dukes to open their new branches in London. 
• Economic- All the monetary policy and financial aspects are considered in economic aspects such as average income of individuals, GDP and buying power of consumer etc. Due to Brexit real-estate industry face some challenges as high monetary amount is required by individuals to invest in real estate business (Chlebikova, Misankova and Kramarova, 2015). So Knight and dukes must manage their work to perform all operations in cost effective way.
• Social- Social aspects includes all those aspects which are related with society such as culture, religion, value and belief of society. People who belong to UK follow high standard to complete their work with in organised manner. Moreover, residents of local society of London prefer those residency which is high in natural light.
• Technological- Techniques and methodology refers to complete work with motive of performing the work within minimum time period. It determines that it is mandatory to perform research and development activities to learn and implement new techniques in operations and functions of Knight and Dukes.
• Legal- It is related with laws and legislations of a country that is formulated by government and industry to protect the interest of local entrepreneurs and companies. So it work as positive aspect for Knight and Dukes because management is expanding their branches in London.
• Environmental- Environment features includes various aspects such as pollution, climate, water and air (Crow, 2015). UK government is involved in different perspective that are focused towards protecting natural environment of country. Example- Environment protection act 1990 helps companies to perform work as per government regulations to ensure safety of environment.

P2 Evaluation of opportunities of growth by applying Ansoff's matrix

Ansoff's matrix work as a strategic planning tool that helps managers of an organisation to develop those strategies which help towards future growth of business. Some of the essential strategies which was developed by Ansoff matrix is mention as follow:

• Market penetration - According to market penetration strategy the existing products are sold by management in existing business area. The main motive Knight and Dukes is to attract more number of customers which is used to acquire competitive place in market. So management reduces the prices of products for attracting specific customers for their products.
• Product development- As per method of product development strategy organisation focuses to invest good amount in research and development division. This determines Knight and Duke formulates or develop new products to satisfy needs as well as wants of existing customers and market area (Donner III and et. al., 2017).
• Market development- Market strategy is implemented by organisation to increase sales of their existing products by offering them into new market area. Knight and Dukes are more motivated to perform their work with market development strategy as they are increasing their branches in local area which are not yet covered by management.
• Diversification- This is one of the most effective strategy through which new products are offered by organisation within new market. So that more number of customers will purchase company offered products and services. It also determines that with proper and controls diversify strategy it is easy for management to enter into new segment of products as well as market.

From the above mention Ansoff matrix it is analysed that Knight and Duke must adopt Market penetration strategy because company focused on introducing their new branches into local market area. Along with this they are professional in developing new business area on a land with formulating better infrastructure of a building. The major concern for management is to open and introduce all products and services of company with local customers as it increases goodwill of market in society and industry (Grubbström, Stenbacka and Joosse, 2014). 

Growth related option for the expansion of business

Organisation select those strategies which helps to offer their products with new and unique feature at low cost. So it is for management to sale their products with in niche market that helps to enhance goodwill within a particular market. Focus strategy is also beneficial for company as it helps to enter in market by increasing the sales of products and number of customers through offering new and unique features in products.

Critical evaluation for growth option along with their risk

Their are various challenges are faced by organisation while adopting and following focus strategy that impacts on products of company. Price of products, less involvement in market, inefficiency of products are some risk factor that relates with focus strategy. Along with this differentiation focus strategy also impacts on cost of operations because it requires research and development actions for all operations. Moreover, it is also used by organisation to complete all task with motive of gaining competitive advantage in market that enhances profits for organisation through focus strategies (Long and Chrisman, 2014).

TASK 2

P3 Sources of funding with their benefits and drawbacks

Business is defined as an economic activity that manage and organise commercial operations with motive of earning high profits from operations and functions of a company. Therefore, it is mandatory for Knight and Dukes to arrange and invest financial values to perform operations and functions of management on constant basis. Some essential sources of finance are mention as follow: 

Internal sources of finance

This is related with generation and collection of funds from internal operations. Like to utilise surplus profits, selling of fixed asset, formulating budgets, open for debt market and many more. It also helps to manage fixed and variable cost of organisational operations by dividing the task in proper manner.

By taking finance from internal sources Knights and Dukes Homes may face some advantages and disadvantages:

External source of financing

This is defined as acquiring funds from external operations. External sources of finance may include taking loan from any outside individual or group or individual or any organisation. There are several sources of external financing, some are as under:

Bank loan: A bank loan is a contract made between bank and the party taking loan to give a consent to repay the borrowed money in some instalment within given stipulated time (Lu and Yu, 2014). If Knights and Dukes takes finance in the form of bank loan they may face following advantages and disadvantages:

Crowd Funding: It refers to a method in which small amount of funds are taken frrom huge number of investors to support financing of a new business enterprise through the use of social media. There are so many websites which centralises all the investors and entrepreneurs on a platform with the aim to increase entrepreneur-ism (Ozanne, Biggs and Kurowski, 2014). Some advantages and disadvantage that are monitored by Knight and Dukes while gathering funds from crowd funding are mention as below:

Angel Investors: An angel investor is an individual with huge net value which provides financial assistance to micro start-ups or business persons. Angel investment is an one time investment, which covers financial needs of a company in its initial tough phases (Romani and Stern, 2016). By adoption of Angel investment Knight and Dukes can come out with following advantages and disadvantages:

Knight and Dukes can opt for bank loan financing since already it is a established company and just require to expand business in London so it is not difficult for them to pay monthly interest of bank loan to bank (Sarver, 2015). By this Knight and Dukes can hold control of company in their hands only and expand their business with no interference.

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TASK 3

P4 Business plan that is related with financial information and strategic objective

The term business plan can be defined as the written document that demonstrate and explain objectives and goals of a company. This is also used by an organisation for delegating projects or task according to skills of an individual so company objectives are achieved within minimum time period. Moreover, background of the organisation, financial planning and business strategy is also implemented that helps to enhance and increase market area. The current business plan for organisation is to introduce their new branches within London market that assist management to attract more number of customers.

Executive summary - Knight and Dukes is operating their business in real-estate industry that provides their services and products in residential, commercial and land related objects. Along with this company is formulating their business at global level to enhance market operations and functions. This also refers management develops global network that encompasses 500 office within 60 different territories by engaging more than 19,000 employees in their operations. In context of experience company is operating their business from more than one century and its headquarter is situated in London (Singh and Wasdani, 2016). 

Vision - Management is focused to enhance customer satisfaction through offering them new and better infrastructure that represent residential and commercial area within attractive way.

Mission - Main motive of organisation is to gain top position in local market area by offering new and better products through opening more branches in market. It results more number of customers are attracted by company.

Goals - Company wants to enhance their sales through offering better services and places for their personal and professional use that helps to generate and create high goodwill of organisation and its services with in local and international market.

Objectives

• The main objective of organisation is to introduce company branches at new places in local market for fulfilling the needs of customers within proper manner.
• Another objective is to capture 30% market area within a period of 6 months at local as well as global level.
• Real-estate industry is enhancing with rapid speed this determines company must manage, organise and perform their operations at global level (Wey, 2015). Due to which it is easy for management to sustain in market for longer period and achieve top position in market.

STP framework - Segmentation, targeting and positioning are some steps of a framework that helps to target customers by understanding the market. The main motive of organisation is to formulate and implement effective strategies that leads management to earn high profits by segmenting and targeting the market. 

• Segmentation- This is the first stage or step of STP process that is used by management to divide market segments with similar characteristic and values. This leads a company to satisfies needs and wants of customers within effective manner. It also helps to complete all task and projects in accurate manner. Knight and Dukes helps management for perform its task through dividing their segment on geographic basis to satisfies needs of customers effectively (Young, 2016).
• Targeting- Target group refers to offer their products and services to a particular group of persons. In context of respective organisation and real-estate industry it is identified that there are various task are performed by management which is used to target customers who are professional and married. This helps them to sale their products and services effectively as target individuals required places to leaf their life.
• Positioning- Company and the management must position their products through offering new and better products to its customers. New branches are positioned or managed by management in central London due to which it is for customers and agents to communicate with each other in minimum time period. Along with this company also focuses to advertise and generate goodwill of organisation with mouth publicity such as to praise products from current customers.

Resource allocation-This is a crucial part for organisation for allocating all resources and raw-materials within effective manner. It governs the company must develop resources as per strategy which is developed by management to complete their task and operations with in specified time period. But due to improper allocation of resources it is complex for management and its workforce to complete the project that also results to neglect strategy of company.

Total estimated Budget- This is important for organisation to perform all task and operation according to their budget to manage and control cost of the operations (Todes, 2014). This also results it is easy for management in deciding estimated amount for each specific activity to calculate right amount of profits from organisational operations.

Monitoring and controlling- Their are various functions and operations are performed by management to satisfies needs and wants of customers at global level. So it is essential for Knight and Dukes to implement those plans which work with motive of satisfying employment task and operations to manage task within effective manner. Along with this some tools and techniques to monitor and control regular operations are mention as follow:

Forecasting- Knight and Dukes perform all task by forecasting all operations that leads management to complete their project and task for accomplishing better results. This is also used by management for managing and complete their operations in sequential manner (Reinhart and Sbrancia, 2015). So actual results from operations match with expected results in short intervals.

KPI- Key performance indicator is one of the tool which leads management to control and handle their day to day operations. It results this is easy for business to manage task and get effective results by motive of achieving high success to demonstrate good picture for organisation. Example- The goals of company is to achieve company services as per leading objectives to measure regular performance from operations.

TASK 4

P5 Assess exit or succession options for a small business explaining the benefits and drawbacks of each option

Knights and Dukes Homes is an estate company and they wants to expand its two new branches in London, if they achieve success then following option of succession are available to them.

Acquisition: An acquisition is defined as when a company purchases part or complete shares and properties of another company to get charge of that company, this authorises the recipient company to take decisions about fresh authorised possessions without the permission of seller company's investors (Mason, 2015). Thus by adopting this method of succession planning Knights and Dukes Homes may face several advantages and disadvantages which are as under:

Merger: Merger is a process when one company integrates in another company and form a new company to increase financial capabilities and business efficiency. This may be between two companies doing business in the same line or companies doing business in different business line ,in most of the cases mergers are performed by well established venture which are taking over a sick organisation (Lambert and Oatley, 2017). By adoption of approach of merger Knights and Dukes Homes can meet with some advantages and disadvantages as well which are as under:

Knights and Dukes Homes may implement acquisition option to expand their business, since Knights and Dukes Homes wants to open two new branches in London. This can help in utilising the planned efficiency and resources, this will increase the brand value of Knights and Dukes Homes and eventually this will impact satisfaction level of customer in a positive manner.

CONCLUSION

In the last by analysing above mention report it is concluded that it is essential for an organisation to gain top position in market by formulating effective plans for organisation. It is also used by management to gain top position by evaluating essential growth opportunities such as Ansoff matrix and Porter models helps to complete all work by formulating effective strategies that leads to deal and grab existing opportunities in market. Finance also perform an essential role to perform operations of organisation by evaluating benefits and drawbacks from each source whether it is internal or external. With monetary value it is also easy for customers to understand and determine net and actual profits that is used to raise funds for expansion. In the last, business plan is also formulated that leads to expand business area and operations.

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