A Business Plan for Growth TABLE OF CONTENTS INTRODUCTION

PLANING
FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................2
TASK 1.................................................................................................................................................2
P1) Key considerations for evaluating growth opportunities...........................................................2
P2) Apply Ans off's growth vector matrix........................................................................................5
TASK 2.................................................................................................................................................7
P3)Assess the potential sources of funding available to businesses with their merits and demerits.
..........................................................................................................................................................7
TASK 3...............................................................................................................................................10
P4)Design a business plan for growth and expansion of Oak Cash and Carry Limited...............10
TASK 4...............................................................................................................................................24
P 5 Succession & exit options for small business with evaluation of these option........................24
CONCLUSION..................................................................................................................................27
REFERENCES.....................................................................................................................................1
..........................................................................................................................................................3

INTRODUCTION
Every company plans to expand and grow their buisness. In order to achieve expansion plan
company needs to evaluate growth opportunities. This report discusses about various key
consideration for evaluating growth opportunities. It discusses about various sources of funds and
their merits and demerits of each sources. Oak Cash and Carry Limited is a UK based company
which is engaged in providing grocery wholesale.
TASK 1
P1) Key considerations for evaluating growth opportunities
The company needs to evaluate it current position and growth opportunities for this there are
various consideration used by SME. It is important to evaluate these considerations so that company
can initiate healthy growth opportunities. Oak Cash and Carry is a Grocery wholesalers . The proper
and effective growth opportunity is needed for expanding their business and gaining profits. Key
considerations are as follows:
Relationship: To expand ongoing business existing relationship plays a key role. Company having
existing relationship with required customers, partners, hires, investors, etc. can save a lot of time,
reduce costs and risk. Oak Cash and Carry Limited must evaluate all the roadblocks i.e. Company
must have proper knowledge of their target consumers, effective management team, considering
Key Performance Indicators, etc. within their path before growing or expanding their business.
Without an existing relationship with different stakeholders means company need to form one
which will is a time consuming process.
Enhancing products and services: Improving and maintaining, the quality of product will initiate
in expanding business. For enhancing it's service quality organisation must make use of advancing
technologies which will attract more consumers. Oak Cash and Carry Limited needs to improvised
their existing products. Oak Cash and Carry Limited must establish a strong and sound feedback
mechanism to know their quality of products (Chapin, 2012).
Competitive Advantage: Competition is often regarded as threat to business. Competencies are part
of business and it is needed that Oak Cash and Carry Limited must pave way through the existing
competition. Company must provide better quality of products to their consumers with lower
prices to attain competitive benefits. It can achieve this purpose by reducing its cost of production
and operation.
Financial Viability: It refers to generate sufficient income to meeting operating payments, debt
commitments. Company must check that it current financial position and performance is sufficient
enough to provide a return to business owner while also meeting its commitment to business
creditors. To evaluate financial ability Oak Cash and Carry Limited needs to examine their capital
investments requirements, cash flow projections and profitability of their business. This will help in

determining the sustenance of Oak Cash and Carry Limited in their industry (Barnes, Hansson,
Manevska-Tasevska, Shrestha and Thomson, 2015). These strategies can support in achieving the
profit targets which has been set up by the company.
Growth Options: There are numerous growth option available to company. As Oak Cash and Carry
Limited is engaged in Grocery wholesalers firm can expand it business through increasing market
share within different parts of UK and Europe. Further, it can diversify their existing products to
garner attention of their customers through their core Competencies such as; Effective Decision
making skill, Critical thinking and Crisis Management skill. The main core competency for the
enterprise is innovation and managing change. They should lay emphasis on creating a product
which has unique features. Oak Cash and Carry Limited can conduct market and customer research
before launching their new products within existing market. These strategies can help in improving
the productivity and efficiency of the enterprise. It will also help them in expanding their market
share
Collaboration With other Companies: It is an effective way of expanding or growing a particular
business. It helps in creating shared decision-making and help in resolving possible management
and staff issues. Oak Cash and Carry Limited needs to join hands with successful business entities
like; Tesco, Aldi and Sainsbury for expanding their grocery retail business. It will help firm with
more resources with bigger pool of markets and reduce commercial risk. Further, Oak Cash and
Carry Limited will benefit from sharing of managerial load and effective and competent workforce
(Claessens and et. al., 2012).
Expand into New territories: Company should expand their business into new territories of Europe
and explore new market where there is demand for products of Oak Cash and Carry Limited. It will
help in getting new customers and market which will garner more revenue to Oak Cash & Carry
Limited.
Deep Analysis of available Consumer Market: This is another way through which company can
expand its current business in existing market. Oak Cash and carry Limited needs to conduct deep
and through research to identify needs and preferences of their target consumers. This will enable
organisation to meet preferences of customers and help in getting more profit.
Core competencies that need to be considered
It is very important for Oak Cash and carry limited that to consider various factors before
making planning for growth of organisation. These are explained as below:
 Financial position: Company is required to make plan as per its financial position. If it is
planning to expand in other country and do not have adequate funds then it will not be able
to enter into new market. Thus, Oak Cash and carry Limited has to ensure its availability of
funds so that appropriate plan budget can be designed.

 Employee’s capabilities: It is very important for businesses to look at skills of employees. If
people do not have good knowledge then they will not be able to perform well. This will
create issue for business. Thus, it has to make plan by considering capabilities of staff
members.
Porter’s generic strategy is helpful for organisation in raising profit of business and gaining
competitive advantage.
Figure 1: porter generic
(Source: Porter's Generic Competitive Strategies (ways of competing), 2018)
 Cost leadership: In this, entity offers goods and services to consumers at lower prices so that
large number of consumers can get attracted towards the brand. Low cost producers may
find benefit of cost leadership.
 Differentiation: It is another strategy in which Oak Cash and carry Limited can seek to be a
unique sector. Entity adopts effective marketing strategies so that it can create its unique
image.
 Focus: In cost focus, firm always look for low cost advantage whereas in differentiation
focus, enterprise always concentrates on creating unique image and maximising profit.
In the case of Oak Cash and carry Limited, company should take support of cost leadership
strategy. It has to offer products to consumers at lower prices so that it can gain their attention. By

this way it will be able to establish its business in new market properly and will be able to grow
well.
Core competences using porters generic strategy model
Core competences can be achieved by company using porters generic strategic model. The
model is based on four components which are cost leadership, differentiation, cost focus and
differentiation focus. The organisation can adopt cost leadership method by offering low price
products to consumers. This will help them in attracting new customers and will support them in
enhancing their revenue. Differentiation can be adopted by company by offering unique, new and
creative goods to consumer. It will also help them in retaining customers and building consumer
loyalty. The company can also lay focus on cost and differentiation method. They can adopt
different pricing strategies for the consumers on basis of their purchasing power.
Growth opportunities using PESTLE
In order to grow the company can use pestle analysis. Political factors will help them in
knowing the different rules and regulations followed in other country. So, that they have a keen idea
about that, and they can enter the new region with full preparations. Economic factors will support
organisation in knowing about the tariffs, inflation rate of the other region which will support
company in maintaining the economic balance. Social elements will support them in knowing about
culture, beliefs and values of other region, that will help in knowing customers better and will also
assist in gaining competitive advantage. Company should also focus on technology advancement to
attract more consumers.
P2) Apply Ans off's growth vector matrix.
To evaluate opportunity for growth Oak Cash and Carry Limited must apply Ansoff Growth
Matrix. It is a strategic planning tool which help executives, senior, managers and marketers devise
strategy for future expansion of business. The matrix is discussed below:
Market Penetration: This strategy involves focusing on sales of existing products/services within
prevailing market to gain higher market share. To achieve this purpose Oak Cash and Carry Limited
must attract customers away from their competitors. Company needs to develop marketing strategy
so that customers buy their existing products more often. This can be accomplished by price
decrease, distribution channel, increase the promotion techniques by implementing various aspects
of promotional mix like; Sales Promotion, Personal Selling, Advertising, etc. Oak Cash and Carry
Limited can implement this strategy by acquisition of rival within their industry. Further, company
can increase base of existing customer by offering loyalty schemes so that more new customers are
attracted to avail products of Oak Cash and Carry Limited (Esteban-Guitart and Moll, 2014).
Market Development: It refers to strategic step taken by company to identify and develop new
market segments for current products. This strategy targets non-buying customers in currently