Marketing Strategy For Small Business Entities - Rock Builder Ltd

University: Regent college

  • Unit No: 42
  • Level: High school
  • Pages: 19 / Words 4631
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 1062
Question :

 This assessment will cover:

  • Provide an effective organizational growth in Builder Ltd.
  • Give the effective planning for succession and management
  • Give an appropriate idea for funding in Rock Builder Ltd.
Answer :
Organization Selected : Rock Builder Ltd


Planning for growth plays an important role in increase productivity and profitability of a small business firm. Proper planning leads to effectiveness in the growth of a company. Here, top management requires to conduct a brief study on growth planning for the beneficial of small business firms (Arku, Yeboah and Nyantakyi-Frimpong, 2016). This report is carried on Rock Builder Ltd which manufactures rock based titles and other related products which sells to their customers etc. “Replacement roofs of listed building“is a government contract in which company has made a bid of “£70000”. This report puts light on growth strategies of a company using growth model, sources of financial funding company uses for generating money for carrying out business and succession options of an entity. This company is small business entities, so this report will help in suggesting marketing strategy to whether to expand the business or sell new products in the existing to maintain profitability.


P1 Evaluating Growth Opportunities For Organisation

Every company needs to grow for surviving in competitive environment and achieving goals and objectives by utilizing their full potential. Stone Builders deals in providing variety of tiles to its target customers. They can use different technologies to have advantages from opportunities available in the marketplace. Company can use digital technology for their growth like they can use social media, artificial intelligence, internet of things etc.

Competitive Advantage:

It refers to the ability of business to produce goods and services in a different way than its competitors. Which helps company to earn more profit than other rival businesses (Andersson, and Moroni, 2014). Company can provide quality of goods and services to its target and potential consumers for retaining them and attracting new customers. For this organisations use many technologies for reducing product cost, increasing product quality, which can differentiate them from others. Company can analyse growth opportunities available in market through Porter's generic model.

Porter's Generic Competitive Strategies

This model was introduced by Michael Porter. According to this model position of a firm in market is identified by its profitability in the industry. Competitive advantages of a firm is determined by applying generic strategies- Cost leadership, Differentiation and focus. These strategies are discussed as follows:

Cost Leadership:

 In this strategy company reduces their cost of products and become low cost manufacturer in the industry (Loh and Norton, 2015). Rock Builders can achieve advantages by focusing on price sensitive consumers. Company can sell their products on lower rate than its rivals to capture large market share and maintaining high profitability by achieving economies of scale. It can use digital technology as it will help them to connect with many customers who are interested in their products and services and it will also increase their production capabilities.


It involves making products and services different and attractive from competitors. This depends on features, brand image, functionality and durability of products and services. Rock Builders can use this strategy by focusing on research and innovation, good quality of products, effective and attractive marketing. Company should be flexible and adaptable to changes in the market to satisfy their potential customers.


Company use this strategy to concentrate only on a selected market to satisfy their specific needs and wants. Company select their target customers and serve them by applying Cost focus or Differentiation focus.

In Cost Focus, businesses take advantage of cost in niche market. They can serve products at lower or higher cost to target customers.

In Differentiation Focus, company focuses on providing something extra and unique to concentrated market. It needs strong marketing of products and increases loyalty of customers to be ahead in competitive market (Woltjer, 2014).

Rock Builders can use focus strategy to serve limited customers by analysing their specific demand and fulfilling it by introducing products which have some different elements from rival company's products.

Rock Builders should adopt differentiation strategy because there are so many companies who provides same products to the customers. So in order to retain their customers and to capture more market share company needs to introduce different products than its rival businesses.

Enterprise can use digital technology for attracting customers like use of social media such as Facebook, Twitter etc. to understand its customers and analysing their needs and demand. Artificial Intelligence will help organisation in improving product growth by innovation by identifying customer choices. Cloud technology also helps in storing and sharing important data of their target customers for future references. Therefore, Rock Builders should use Digital technologies for identifying growth opportunities for their businesses.

Pest Analysis

Pestle analysis is used for analysing external environment that can affect the business. It includes Political, Economic, Social and legal environment that external to the company and are uncontrollable (Miller, Hauer and Werner, 2015). It will help Rock Builders to identify new opportunities in the market. The following are components of this analysis:

Political Factors:

It includes political condition of an economy. It shows government involvement in economy. These factors are related to rules and regulations prepared for industries like employment laws, tax policy and environmental laws etc. They act as opportunities as well as threats for company in various situations. UK government has made some special provisions for SMEs regarding Tax policy. This will help business to save money by paying less tax, company can use this saved amount for other use like for paying debt.

Economic Factors:

These factors include issues related to the economic condition of the country. It consists interest rate, inflation rate, foreign exchange, employment and unemployment rate of economy. In case of Rock Builders these factors can affect as both opportunities and threat. Company will have growth opportunities when inflation and interest rate is low than it will result in decrease in price of its products and will provide ease in acquiring finances.

Social Factors:

It includes factors related to social environment of potential customers to understand their needs and demand (Brown and Mawson, 2016). It includes analysis of consumer's culture, age, gender, demographics, education and attitudes towards their products for estimating demand from them. Rock Builders can identify opportunities by understanding the nature of their customers and through this they will be eligible for providing their products to the customers as per their social status.

Technological Factors:

Technology plays an important role in every industry. As it has both negative and positive impact on businesses (Beatley, 2014). Rock Builders can introduce new technology for introducing products in the market. For availing opportunities company can adopt Digital technology to respond the technological changes in the marketplace like use of social media, cloud technology and artificial intelligence etc. to be competitive in market.

P2. Evaluate the Opportunities For Growth Applying Ansoff’s Growth Vector Matrix.

The Ansoff’s matrix is most commonly known as Product/Market matrix. In context with Rock Builder, it will help company to acknowledge their growth opportunities and rise productivity. It has four option for growth purpose by matching up new and existing products and new and existing which is drawn in matrix (Gurran, Austin and Whitehead, 2014). This matrix exposes your business when a business move from one stages of matrix to another. This approach has four growth strategies: market penetration, market development, product development and diversification. Ansoff’s matrix is providing different strategies in context with Rock Builder:

Market Penetration -

This strategy tells about selling same product more and more to existing customer or market. To implement this, business wants to increase customer loyalty and grow customer base for lifetime values. Rock Builder can improve their order process by making it easier for customer to understand products and services clearly or extend current business for profit purpose. In this strategy, there is a partial chances of rising in price of an existing product. This process can put negative effect on company, as if there is any product of expensive range then for market penetration it is essential for company to lower its process as to generate more consumer base. This will lead to lower level of profit generation for company and decrease on production cost per value.

Market Development -

Some entities approach to attract new customers for an existing product (Haaland and van den Bosch, 2015). New customer can be classified on the basis of geographic and demographic factor. Geographic factors includes: finding customer by locating them from country, region, place etc. and demographic factor includes: age, occupation, gender etc. Rock Builder can add their customer base on the basis of these factors. This will also results in creating new customer base for future purpose of market. This process somehow can impact negatively on company, as to find customer form different geographical location company is required to invest huge funds and produce products and services related as per according to different consumer perceptions which is a time taking process.

Product Development -

This strategy is about creating and developing new product or developing existing product by adding homogeneous requirements such as colour, features, design, shape and other technical aspects. Rock Builder can replace their products or services with existing one or develop new identity by fresh product development. Any new development supposed to be influenced by customer feedback or previous user experience. In order to find and analyse consumer demands and perceptions it is essential for a company to regularly engage in the process of research as to find actual market condition. This can negatively affect organisation as it require huge capital investment to conduct various research.

Diversification -

It is considered as high risk taking strategy. This strategy is different from market penetration and market development (Hess and Sorensen, 2015). In this, entities need to adopt strategy of selling new product into new market. Diversification will work if the company has foundation and support to bear risk taking while implementing such step. Here, Rock builder wants to provide their manufacturing goods at most affordable price to existing customers and slowly and gradually to new customer base. This process can negatively affect company by increasing their total investments to sell new products in new market. In order to generate new consumer base company is required to take unexpected risk which may sometime result in huge loss in their overall operation functions.

Managers of Rock builder are taking market penetration strategy to expand their business and growth rising. The reason behind this strategy that generally small enterprises are not capable of adopting new product strategy because it will lead to incurring huge costs and risk taking also.


P3 Sources of Funding For Small Businesses

Every business needs fund to operate their business in a smooth manner. Small business also need funds for managing their sales and operations (Keough, 2015). Entrepreneurs arrange funds from different sources to purchase essential assets for running their business and increasing profitability.


It is a method of capital raising by collectively from customer, friends, family and individual investor. This type of funding generally comes from collective efforts of different kind of people and pool of individuals. Funds can be sourced via social media and different network and platform.


Fast Mover Advantage -

It is a fast way to raise funds with no fee charge on it.

Alternative Finance Option -

It is difficult to raise funds from bank or traditional investor because of critical involvement of formalities. It is easy to generate funds from crowdfunding.


Reputation of The Business -

if raised would not repaid, there is a high risk involvement and it may effect reputation of the company.

Not Fixed Time of Repayment of Loan -

There is no fixed time of repayment of loan like bank. Borrower needs to redeem the amount of loan any time, when asked to repay.

Small Business Administration Loans:

Some government administrations provides funds to help small enterprises. It ensures small companies that they will get a certain amount from contracts will be given to them.


These types of loans are structured so it help company to manage their cash flows. Down payment for these loans are very low, which is an advantage for business.


It has high interest rate because it gives guarantee to lender for payment. Lengthy and time consuming process as it requires a lot of paper work and approvals from government.

Bank Loans:

it is a very common source of arranging finances for long-term or short-term period (Pothukuchi, 2015). These loans are provided by Public as well as private banks to businesses. For this borrower has to pay some amount as per interest rate.


 Various options are available for the borrower; they can avail loan as per their financial need. Business are not required to lose their business control.


it has large process for documentation which is very time consuming process. Company has to pay the amount whether they are getting profits or loss in their business.

Henceforth, for “Replacement roofs of building” business has made bid of £70000. From this amount, entrepreneur have £20000 and rest £50000 are arranged from crowdfunding and Small Business Administration Loans. This will help business person to organise finances for bid process in government contract.


P4 Design a Business Plan for Growth of a Company

Business Plan-

It is the formal statement which helps in achieving the objective of business (Sager, 2017). It includes the historical background of organisation, vision and mission of the company, SWOT analysis, objective and financial information are also included in the plan

Companies Overview-

The Rock Builder is the construction company which is situated in UK, Hawick and it is expert in making tile at the lower price from which costumer enjoy benefits of lower pricing. Replacement roof of building is a government contract which consists of the bid value of £70000 which is made by the organization.

Vision and Mission-

Vision of the company refers to the long term goal. The Rock Builder tries to make quality tiles in affordable price the company can retain for longer period of time and can establish their brand image in the mind of the customer. While its mission is to improve the market share and to enhance the sales revenue.

Strategic Objective-

The strategic objective of the company is to formulate their smart tactics which helps in achievement of goal (Viitanen and Kingston, 2014). It includes the planning of acquiring the 40% of share in the next three years, and to develop the brand image so that company can retain their costumer’s loyalty.

Product and Services-

The Rock Builder provides different variety of tiles at an effective and reasonable price this helps in keeping attracting the large number of customer and due to which there are higher chances of making profit and also helps in building profit index.

Consumer Analysis-

The Rock Builder effectively analyse market and examine actual needs and wants of their consumer. This will aid them to satisfy needs of their customers in efficient way. Company conducted related research to gather information and data and use that same in their production process as to create qualitative products and services.

Market Plan-

Company conduct effective research and then formulate strategic plans and procedures. This will help them to deliver products and services as per according to customer preception.

Situational Analysis-

The company acquires or gather the information from the different sources to analyse the current condition of market which can improve the system capabilities and it also tries to gather strong factors which helps the organisation for acquiring the businesses.

Strengths of The Company-

The Rock Builder uses the latest technology for performing different activities of the business. It uses digital technology which helps in getting customer from the remote areas also and it also offers variety of tiles to retain their loyal customers, they also make tiles according to the different needs of the customer.


The managers of The Rock Builder also do the awareness program so that business could reach to the large no of people. Fast growing of the business helps in making opportunities which attracts the customer.

Financial Information of a Business-

cash flow statement shows the inflows and outflows of cash it provides the data regarding inflow and out flow of money in the operating condition. In The Rock Builder the investment is £ 70000 and the statement includes the overall information regarding the sales from January to June 2018 which includes the sales in the credit, the cost of raw material, and expenses and the closing balance is £ 10,040. hence the cash flow statement of The Rock Builder is as follows.

Form the below mentioned information it is evaluated that, total cash inflow of company is 18700 for the month January, February, march, April and June. While, cash outflow is 13680. Company has overall closing balance of 10040 which showed increase in performance of company and depicts overall growth.








Credit Sales







Total Inflow







Fixed: Hardware







Variable: Direct Material







Total Outflow







Net cash flow







Opening balance







Closing balance









P5 Succession or the Exit Planning of a Business

Risk are always involved in small business and a company should knowledge about the succession and the exit plan so that they can adopt the changes according to the situation. After analysing the whole situation Rock Builder decided to make an exit plan for the business so that they can pay all their debt to the creditors and investors.

Exit Planning of the Business-

There are several exit plan of the business to make exit which uses different strategy which are as follows.

Liquidation- It is the process in which in brings the business to the end and after that all its assets are distributed among all the claimers (Ying, Chaolin and Xiaojiang, 2014). This process is done only when the company is not able to pay its debt. This process is some time a compulsory act for the organisation so that they can pay the creditors as much money as possible.

Benefits of the Liquidation

  • It helps in avoiding the process of court which save the time.
  • The legal action which could be taken against the organisation can be eliminated through this process.

Drawbacks of Liquidation

  • If all the asset of company is sold then there is no money left for owner to start their new business.
  • The capable and talented staff of the company would join the another organisation so retention of those employees would be difficult.

Selling Business to the Managers and Employees:

Finding the buyers form the outside of the business is the difficult process while exit planning of the business so the best option which could be available is to sell the business to the known people and those are the managers and the different employees of the organisation. There are some benefits and drawbacks of this process which are as follows.

Benefits of Selling Business to the Managers and Employees

  • Some experienced and skill full employees can help in growing the business even after selling it.
  • It provides the financial securities to the owner by selling the business to the member of the organisation hence it minimizes the high risk of owner.


Drawbacks of Selling a Business to the Managers and Employees

  • All the power and authority can also have transferred to through it so the ownership or the owner could be in risk.
  • The share price could be decreased which can make greatly influence the holding of the individual.

From the above analysis it could be shown that the liquidation tool is used by the executives of the Rock Builder so that they can wind up their business and losses could be minimized and this helps the company to get the finance for their future projects.

Also Read:- Planning For Growth In An Organisation


This report concluded that planning for growth plays a pivotal role in growth and development of a small business enterprises. The purpose of this brief study is to examine growth strategies require for development and increasing productivity of a small company. This all explained by using Ansoff’s growth matrix to understand appropriate strategy whether penetration, market development, product development or diversification. From all given, Rock Builder Ltd has used market penetration strategy because it is difficult for small entities to invest money in rest other three strategies, as there is a chance of high risk involvement. Company's major sources of fund raising are angel investor, bank loan and venture capital. In this report, a well-structured Business plan has drawn to identify mission and vision of a company and financial status and requirement of a Rock Builder Ltd. Company has used succession policy option to raise their business and enhance productivity. Get more details about assignment writing service from our experts.

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