Unit 42 Planning for Growth - Assignment

42– Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Analysing the key consideration for evaluating growth opportunities.............................1
P2 Evaluating the opportunities for growth applying Ansoff's growth..................................3
LO2..................................................................................................................................................4
P3 Assess the potential source of funding available to business and discuss benefits and
drawbacks...............................................................................................................................4
LO3..................................................................................................................................................6
P4 Design a business plan for growth that includes financial information and strategic
objectives................................................................................................................................6
LO4..................................................................................................................................................8
P5 Assess exit or succession strategies for the company along with the benefits and drawbacks
of each option.........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning for growth is the strategic business activity that business owners carry out to
plan and track organic growth in their revenue. Continuous planning is the opportunity for the
business to control future uncertainty and effective management task into more developed area.
Present study will be based on Planning for growth that will be on David Nieper which is fashion
retailer situated in UK. Now, the company planning to expand its business into online market.
However, the study will outline the opportunities and threats company might have occurred
during its journey. Besides that, company also evaluate the growth matrix of Ansoff vector to
determine the new opportunities. Therefore, study also explains that how business gathered their
funding and business opportunity.
LO1
P1 Analysing the key consideration for evaluating growth opportunities.
Strategic growth is the key to get more success that helps to meet the company aims and
objectives (Bell, Bryman and Harley, 2018). In order to take the business at new level, David
Nieper needs to evaluate the market possibilities and choose the strategies accordingly. David
Nieper can use the Porter Generic model in order to gain the competitive advantage. All the
strategies or ways can help company to determine the different objectives and goals.
Porter's Generic Strategies Model
Cost Leadership: Cost Leadership is the initial strategy that is based on lowest cost
producer in the industry. That means under this strategy, company can get the huge market
attention by offering lower possible price of products. Efficient logistics and low cost producer
can helpful to maximize the company expenses. David Nieper can use this strategy option to
enhance the business growth opportunity.
Differentiation: Differentiation strategy is the another option to expand the growth of the
business (Bellavitis and et.al., 2017). In order to apply this form of strategic growth option,
Company should need to implement some unique features in their product or services.
Differentiation strategic tool is helpful to increase the high demand in the market. That gain the
different opportunity and growth in the competitive market. This method or tactic requires
attractive marketing to generate huge market growth.
1

Cost Focus: Cost focus tactic of business growth is more focused on the lowest possible
price. In this strategy, the market has been choosing low cost and more focused on the lowest
possible prices. In this market analysis this will help to continue the long-lasting opportunity and
task to build up the new opportunity and gain.
Differentiation Focus : In this opportunity and growth where the focus of the company is on the
unique features rather than the cost (Bizri, 2016). This strategy often involves strong brand
loyalty among the consumers.
However, from the above given strategies, company should need to acquire cost
leadership strategy in order to develop the customer attention and attract huge market demand.
PESTLE Analysis
Political: Political factor of the business affect the business function very often due to
sudden changes in the political policies and rules and regulations in the context of specific
industries. In the context of E-commerce business, so there are several risk factors affecting the
business in direct or indirect manner. For example: changes in e-commerce policies could affect
the David Nieper business growth.
Economical: Economic condition of the country depends on how many businesses and
retailers earn profit. Economic factor is the most significant term in the business environment
that affect the business into direct manner (Burns, 2016). For example: In the situation of
recession, customer spending power has been decreased that direct affect the business profit
ratio. That holds the business growth and different advantageous to be more specific.
Social: Social cultural factor to have a deep impact in e-commerce industry. That is the
most important and leading business change. While it grows the business opportunity and task.
However, changing trend or demand of the market can also affect the business and its demand as
well. Distinct cultural factors impact the business. In this context of business, David Nieper
needs to generate new business growth to expand the market opportunity and new development
areas.
Technological: Technological factor are the most essential feature for the industry. That
makes the business more challenging and growth. Technological changes arise growth for the
businesses through they can easily get the better developing growth into the best possible manner
(Daspit and et.al., 2016). However, the business needs to be more specific and leading business
growth.
2

Legal: Legal factor is the another higher opportunity and growth that makes the business
more challenging and effective. This factor and managing development results will help to
continue the work more properly and effective working task. Along with that, it will help to
continue the working opportunity work outcomes and brings various opportunity and growth.
Legal compliances can affect the overall business into different ways and also control the
business profit.
Environmental: Environmental factor is the another significant factor of business
environment that highly influenced by the changes and modification which happened due to
sustainability (De Massis and et.al., 2016). Due to high competition in the market, rivalry firms
modify the changes in frequent manner. However, businesses should need to focus on the
environment sustainability to gain the customer attention and growth.
New Product Services (Innovation)
P2 Evaluating the opportunities for growth applying Ansoff's growth.
Ansoff Growth Model
Market Penetration: The first step to evaluate the Ansoff growth matrix model that
discover the new working opportunity. Market penetration is the strategy in which process
company adopts the best possible action plan that motivates the business goals and make the
study more effective. Further, in this strategy company market their existing product or services
to gain the competitive advantage.
Market Development: Market development is the second option to maximize the
different opportunity. However, the business target and makes the business more challenging and
growth. Market development strategy adopted by the company when company wants to target
the new market with existing products (Hawkey, 2017). Like David Nieper planning to open its
business online and sell the products across the different countries. So this strategy is the best
suitable to the existing firm to get the new opportunity and growth. For that, Company requires
choosing new geographical market, new product dimensions, new distribution channels and
different pricing policies.
Product Development : Product development is the study that plan to have the new
product in the market to expand the business opportunity and gain. In order to achieve this
strategy Company more focused on Research & Development, Detailed insights into customer
3

needs and being first to the market to gain customer attraction and growth (Jones, Woods and
Guillaume, 2016).
Diversification : Diversification is the another strategy that company can adopt. But on
the same side, as compare to other strategies' diversification is the difficult and complex strategy
to adopt. Diversification strategy require unique features and quality that product should have to
gain the customer attention.
Identifying and mitigating the risk
In order to reduce the possibilities of risk and uncertainties, Company can adopt the
process of risk mitigation planning to develop the positive circumstances rather than negative. To
develop the market online and expand the business into online market, company needs to have
some plan and goals that makes the business more challenging and make the business
opportunity more properly. Company needs to develop the risk mitigation process to control the
uncertainties of future. In order to reduce such possibilities David Nieper should need to follow
such following steps:
 To determine the cause of risk that have been identifies and quantifies in earlier phases.
 Evaluate the risk interactions and common causes.
 Identifying alternatives mitigation strategies, methods and tools for each major risk.
 Assess and prioritize mitigation alternatives (Kuratko, 2016).
 Select and commit the resources required for specific risk mitigation alternatives.
LO2
P3 Assess the potential source of funding available to business and discuss benefits and
drawbacks.
In order to select the business, it helps to motivate the business environment. There are
different sources through company can gain the capital for their new business development.
Angel Investors
Angel Investors is the most common way to gathered funds for the business. On the
behalf of the fund arise. Angel Investors take some percent of share in the business in return for
their investment.
4

The benefit of this process is to get the immediate funds from the investors if the
company concept is good or fruitful. Another benefit of these sources is it is less risky than the
other business growth.
Disadvantage of this method is it is not suitable for the big investment or fund requirement. Also,
it takes long time to find a suitable angel investor (Laudon and Laudon, 2016).
Venture Capital
Venture capital is the another source to arrange the funds for the market. In this method,
business should need to focus that venture capital give more preference to those businesses who
are more engaged with the new technologies. This would help to discover the new method or
growth method for the David Nieper. On the other side, venture capital also want a heavy rate of
return from the businesses as well. Venture capital is the most challenging and effective learning
targets that makes the business more developing and effective to take the business more
authenticated and developing.
The advantage of this source is getting high experienced chance from the diverse
background and other experiences (Laudon and Traver, 2016). That also makes the business
more challenging and developing. Another advantage of this method is to grow the business
network that venture capital have. Venture capital have different opportunity for the new
business through they can easily get the business opportunity and target.
Business Incubators
Business incubators generally focus to the main objectives that controls the effective
management task to develop the new opportunity and task. This will help to continue the
learning goals and opportunity to be very specific and goals. Other general opportunity which
makes the business more challenging and competitive. This source of funding generally focusses
on the high-tech sector by providing support for new businesses in various stages of
development.
The advantage of this source is expanding the capital market opportunity and growth. It
also helpful to gain to different new ways through company can easily handle the effective
services' growth.
Government grants and subsidies
Government agencies provides the better financing power and give support to other start-
ups in managing the successful growth. Government institutes having strict policies towards the
5

growth market. In order to take fund from government, company needs to adhere some following
steps such as to analysed detailed project description, explanation of the benefits of the project,
detailed work plan with full costs. Etc (Lindvert, Yazdanfar and Boter, 2015).
The advantage of this source is that it is the most the safest way to gathering funds for
raising. But the drawback in this process is that Organization have to ensure about the illegal
activities and should maintain the good image in the market.
LO3
P4 Design a business plan for growth that includes financial information and strategic objectives.
Executive Summary
Business plan is the development growth that makes the business more effective. This is
more challenging and developing to be the most effective learning outcome. In order to market
the business and expand the business growth it is require to be more effective and learning
opportunity that makes the business more authenticated and competitive within the market.
Present case based on David Neiper in which company planning to control the action plan to
discover the new management task and business opportunity. Present business plan further
explains the business market analysis by applying the different methods and tools.
Overview
David Neiper is the fashion retailer situated in UK. It deals with home wear, knitwear,
Lingerie, travel, etc. All such women inspired clothing by the effective organization growth that
makes the business more challenging and influencing (Luthra and et.al., 2017). However, in
order to expand the business, Company further planning to start the online business along with
Baby clothing products. It makes the better chance and development. However, the further study
makes the businesses more ineffective and underdeveloped goals and objectives. In order to
achieve the business plan. However, the objective of the present business plan is to build-up the
new opportunity and growth for the business success.
SWOT
Strength
 David Neiper having a good reputation in the market.
 Company has variety of product or services growth.
 Customer faith on the business growth and ineffective learning outcome goals.
6

Weaknesses
 The biggest weaknesses of the company affect the business into less effective manner.
 Less competitive to there the highest business scorer.
 Limited resources and capital.
Opportunity
 David Neiper can expand its business into new marketplace.
 David Neiper have opportunity for new product development in the business.
 David Neiper should need to adopt the new technology into the business function.
Threats
 High competition in the market.
 Uncertainty in business environment.
 Limited expansion growth that makes the business opportunity and task.
PESTLE Analysis
Political : Political factor of the business environment can also be very ineffective and
insufficient to be more challenging the business more ineffective (Maier, Meye and
Steinbereithner, 2016). Political factor gets influenced by different factors such as different
opportunity such as political instability, interest rate, etc.
Economical: Economic factors is the significant factor that influenced by the economic
stability of the country. Economic factor gets highly influenced by market position which
influenced by the new opportunity and gain. In other words, it makes the business target more
attentive and effective towards the best sources and goals.
Social : Social factor influenced by the changing preferences of the market that makes
the business unstable. In order to prevent the business from social factors, company should need
to focus on the demand of the products and services and try to earn the faith of the customers.
Technological : Technology is the beneficial business environment factor that makes the
business opportunity and task to gain the business opportunity.
Legal : Legal implications might affect the business reputation and function in case if the
David Neiper fails to meet the competitive environment. Legal implications is the mandatory
practices that company should adopt.
Environmental : This is the most competitive factor of the company that makes the
business more challenging and ineffective. Environmental factors generally, makes the business
7

more long-lasting (Moore and et.al., 2015). Apart from that, it keeps the business low and
ineffective in terms of business opportunity and gain.
Marketing Mix Strategy
Product: Product of the business is most competitive and leading business performance.
Product is the competitive market that affect the business opportunity and makes the business
more popular and effective. David Neiper will launch the new product on online platform. The
helps to leverage the sales and company profit margin.
Place: Place of the product must be convenient for the buyers that is most effective for
the business success. Place where the David Neiper will launch the new product is online.
Price : Price of the product affect the product demand because buyers always need to get
better chance to better following results. David Neiper should set the competitive price or low
skimming to gain the customer attention.
Promotion: Promotion mix define the ways to promote the product or service in the
competitive market. David Neiper needs to promote its product or services through social
websites and growth.
Physical evidence: Physical evidence is the process gain the business opportunity to
grow the business opportunity (Pearlson, Saunders and Galletta, 2016).
Process: Process of distribution is the way to control that effective results to make the
business opportunity and gained. Process of delivering the product or services is through online
platform.
People: People of David Neiper is most talented and growing towards making the
positive outcomes for the company.
LO4
P5 Assess exit or succession strategies for the company along with the benefits and drawbacks of
each option.
Business Exit strategy is an entrepreneur strategic plan to sell the business to other
investors. The reason behind this planning and source is to explain the different approach and
task. However, in order to get exist from the market David Nieper has different option such as
given below:
Exit Strategies
8

Passing the business to a successor : Passing the business to a successor which is also
the family member or a manager of the company. The advantage of this strategy is it helps to
reduce third party involvement. Also, it helps to get the chances to maintain and sometimes get
involved in the business activities (Schepker and et.al., 2018). On the same side, it involves some
challenges as well that restrict company to take this strategy which is to find the right successor
for the company.
Transfer the ownership or through employee buyout : This strategy or a way of
transferring succession is eliminated the threat of above strategy that to find the successor. In this
method, Management team or an employee can buy the company. This is the benefit for those
business owners who don't have the family person for the succession. Advantage of this option is
limited due diligence (Bell, Bryman and Harley, 2018). Besides, disadvantage of this method can
be failed attempt by the purchaser.
Selling the business to a third party : last option of the succession is sell the business to
other third person. This can be happened the business into new development growth. Initial
public offering is the kind of way through David Nieper can opt the business opportunity and
growth.
Liquidation: Liquidation is the most common way to get out of this all business
planning. In this task are often looked for the exits of the business. In this task, company owner
should responsible to inform all stakeholders and shareholder (Schepker and et.al., 2018). This
also makes the business, challenging and competing. The benefit of this task is to control the
easy and natural task to be performed. On the other side, negotiation involved the business
opportunity. On the same side the negative influences of the takes disadvantage and growth.
Selling to a friendly buyer: In this tool company can easily meet out the business
objectives and control the business success and goals. In this strategy business can sell its share
to other people (Bellavitis and et.al., 2017). Interested parties might have included customers,
employees and children to other party.
CONCLUSION
On the basis of above report it has been concluded that, how much planning is essential
for the growth of the business. In other words, it requires a proper source and material to build-
up the business market opportunity. However, the study explained the key consideration such as
PESTLE analysis and Porters generic strategies in order to analyse the opportunities and
9

development chances of the business. Besides, the study also explained the potential sources of
funding through organization can gain funds for the new investment. Designed a business plan
for growth that includes financial information and strategic objectives for scaling up a business
activity. However, the whole research conclude the role of planning for growth. In order to
conclude the business opportunity study justified the internal or external business environment
by applying the PESTLE and SWOT analysis.
10

REFERENCES
Books and Journals
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Bellavitis, C. and et.al., 2017. Entrepreneurial finance: new frontiers of research and practice:
Editorial for the special issue Embracing entrepreneurial funding innovations.
Bizri, R., 2016. Succession in the family business: drivers and pathways. International Journal
of Entrepreneurial Behavior & Research. 22(1). pp.133-154.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Daspit, J. J. and et.al., 2016. Examining family firm succession from a social exchange
perspective: A multiphase, multistakeholder review. Family Business Review. 29(1).
pp.44-64.
De Massis, A. and et.al., 2016. Incumbents’ attitude toward intrafamily succession: An
investigation of its antecedents. Family business review. 29(3). pp.278-300.
Hawkey, J., 2017. Exit Strategy Planning: Grooming your business for sale or succession.
Routledge.
Jones, R. J., Woods, S. A. and Guillaume, Y. R., 2016. The effectiveness of workplace coaching:
A meta‐analysis of learning and performance outcomes from coaching. Journal of
Occupational and Organizational Psychology. 89(2). pp.249-277.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Laudon, K. C. and Laudon, J. P., 2016. Management information system. Pearson Education
India.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Lindvert, M., Yazdanfar, D. and Boter, H., 2015. Perceptions of financial sources among women
entrepreneurs in Tanzania. African Journal of Economic and Management Studies. 6(2).
pp.197-218.
Luthra, S. and et.al., 2017. An integrated framework for sustainable supplier selection and
evaluation in supply chains. Journal of Cleaner Production. 140. pp.1686-1698.
Maier, F., Meyer, M. and Steinbereithner, M., 2016. Nonprofit organizations becoming business-
like: A systematic review. Nonprofit and Voluntary Sector Quarterly. 45(1). pp.64-86.
Moore, G. F. and et.al., 2015. Process evaluation of complex interventions: Medical Research
Council guidance. bmj, 350, p.h1258.
11

Pearlson, K. E., Saunders, C. S. and Galletta, D. F., 2016. Managing and using information
systems, binder ready version: a strategic approach. John Wiley & Sons.
Schepker, D. J. and et.al., 2018. Planning for future leadership: Procedural rationality, formalized
succession processes, and CEO influence in CEO succession planning. Academy of
Management Journal. 61(2). pp.523-552.
12