Planning for Growth: Evaluating Opportunities and Funding Sources for Etsy
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This report discusses growth opportunities and funding sources for Etsy, an online selling company based in the UK. It analyzes key considerations for evaluating growth opportunities, evaluates growth opportunities using Ansoff's growth vector matrix, and assesses potential sources of funding. The report also covers strategic models such as Porter's Generic Model and discusses options for growth using a range of analytical frameworks.
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Unit 42 Planning for Growth
Learner Name
Programme Name Pearson BTEC Higher National Diploma in Business Management
Unit Number and Title Unit 42 – Planning for Growth
Credit Value Unit Level 5
Academic Year Cohort September 20
Assessor
Project Title Investing in the Future (Part 1)
Developing an Exit Plan (Part 2)
Issue Date
Submission Deadline
IV Name
IV Date
Learner Name
Programme Name Pearson BTEC Higher National Diploma in Business Management
Unit Number and Title Unit 42 – Planning for Growth
Credit Value Unit Level 5
Academic Year Cohort September 20
Assessor
Project Title Investing in the Future (Part 1)
Developing an Exit Plan (Part 2)
Issue Date
Submission Deadline
IV Name
IV Date
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Table of Contents
TASK ..............................................................................................................................................3
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................3
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................5
Discuss the options for growth using a range of analytical framework?...............................7
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................8
Evaluate potential sources of funding and justification for the adoption of the appropriate
source of fund?.....................................................................................................................11
Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.......................................................................................................11
Develop an appropriate business plan for growth and securing investment , setting out
strategic objectives, strategic and appropriate framework for achieving objectives ?.........15
Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.......................................................................................................................16
REFERENCES..............................................................................................................................20
INTRODUCTION
TASK ..............................................................................................................................................3
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................3
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................5
Discuss the options for growth using a range of analytical framework?...............................7
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................8
Evaluate potential sources of funding and justification for the adoption of the appropriate
source of fund?.....................................................................................................................11
Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.......................................................................................................11
Develop an appropriate business plan for growth and securing investment , setting out
strategic objectives, strategic and appropriate framework for achieving objectives ?.........15
Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.......................................................................................................................16
REFERENCES..............................................................................................................................20
INTRODUCTION
Planning is an essential factor that allows the management to use effective strategies and
policies for the achievement of organisational goal. It is the first process of management that are
required before implementing any other activities within an organisation. It helps to decide what
to do, how to do, when to deal with the desired result (Agyenim-Boateng, 2021). Planning
involves pre determined goals that guides the organisation to increase the profitability and
performance .It improves the performance of the organisation in the global market. It is directly
connected with growth of the organisation. The effective planning is the key to success of any
organisation that increases the efficiency and proficiency of their employees. The organisation
chosen in this report is Etsy, a UK based online selling company that provides variety of
handmade products.
This report will examine the various modes of growth opportunities and models that helps to
evaluate the performance of an organisation. Further, it will examine the PESTLE analysis and
other strategic model , sources of funding , exit and succession strategy to expand the business in
the competitive market.
TASK
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
The competitive advantage can be gained by using effective resources and cost reducing
methods to deal with the core competence in the market. The skills and innovative ideas are the
demand of current market scenario to diversify business in the international market. There are
various internal and external forces that are directly affects the functioning of the small scale
industry. The UK based e- commerce company Etsy, is required to consider the following
growth opportunities with the help of growth model and analysis made through PESTLE, are
discussed below:
PESTLE Analysis
Political Factor: The current political stability in the UK, is a great opportunity for a
small scale industry to use this approach for its growth and expansion. The relation of the
government with the other countries helps the companies to diversify their business in the
international market at low rate of investment. The Etsy, e commerce company has
policies for the achievement of organisational goal. It is the first process of management that are
required before implementing any other activities within an organisation. It helps to decide what
to do, how to do, when to deal with the desired result (Agyenim-Boateng, 2021). Planning
involves pre determined goals that guides the organisation to increase the profitability and
performance .It improves the performance of the organisation in the global market. It is directly
connected with growth of the organisation. The effective planning is the key to success of any
organisation that increases the efficiency and proficiency of their employees. The organisation
chosen in this report is Etsy, a UK based online selling company that provides variety of
handmade products.
This report will examine the various modes of growth opportunities and models that helps to
evaluate the performance of an organisation. Further, it will examine the PESTLE analysis and
other strategic model , sources of funding , exit and succession strategy to expand the business in
the competitive market.
TASK
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
The competitive advantage can be gained by using effective resources and cost reducing
methods to deal with the core competence in the market. The skills and innovative ideas are the
demand of current market scenario to diversify business in the international market. There are
various internal and external forces that are directly affects the functioning of the small scale
industry. The UK based e- commerce company Etsy, is required to consider the following
growth opportunities with the help of growth model and analysis made through PESTLE, are
discussed below:
PESTLE Analysis
Political Factor: The current political stability in the UK, is a great opportunity for a
small scale industry to use this approach for its growth and expansion. The relation of the
government with the other countries helps the companies to diversify their business in the
international market at low rate of investment. The Etsy, e commerce company has
required to take advantage to such government policies to secure good position in the
competitive market.
Economical Factor: The economic factors refers to interest rate, GDP, Repo rate,
employment rate etc. and other policies of the government that are directly impact the
economical position of the country. The economic factor is one of the important element
to evaluate growth such as government polices related to collective bargaining is
introduced to avoid employment turnover and increase the higher retention of employee
at workplace. So, such factor is important to enhance the business of e commerce
industry to grow in a large scale.
Social Factor: Society plays significant role in the expansion of small scale industry as it
is important for an organization to understand their need, expectation and produce the
goods accordingly (Boschmans and Pissareva, 2018). The demand of handicrafts are
demanded by the people to give unique look to their houses and offices. So, this factor
can be affect the growth of the online selling business.
Technological Factor: The UK is a developed country due to its advanced technology
and innovation. The use of advanced technique and medium of using online platform for
selling the goods online, will help the Etsy company to interact with the consumers of
different country to expand their business all around the world.
Legal Factor: The legislation and government norms, ease the medium of doing
business. The registration and incorporation procedure for starting a small scale industry
is very simple and policies has been made to promote the SMEs to grow their business at
large level so that investment can be increased. The high investment shows the growth
opportunities of an organization.
Environmental Factor: The UK global economy are facing significant change in the
environment that plays important role in providing resources to the industry to
manufacture the demanded goods. It emphasizes mainly on sustainable products and
pollution free goods and services to foster the growth of the economy . The Esty
company are required to use effective environment policy to safeguard the natural
resources and maintain ecological balance in the ecosystem.
Therefore, all the above mentioned external factors are important to ensure growth and
expansion of online business.
competitive market.
Economical Factor: The economic factors refers to interest rate, GDP, Repo rate,
employment rate etc. and other policies of the government that are directly impact the
economical position of the country. The economic factor is one of the important element
to evaluate growth such as government polices related to collective bargaining is
introduced to avoid employment turnover and increase the higher retention of employee
at workplace. So, such factor is important to enhance the business of e commerce
industry to grow in a large scale.
Social Factor: Society plays significant role in the expansion of small scale industry as it
is important for an organization to understand their need, expectation and produce the
goods accordingly (Boschmans and Pissareva, 2018). The demand of handicrafts are
demanded by the people to give unique look to their houses and offices. So, this factor
can be affect the growth of the online selling business.
Technological Factor: The UK is a developed country due to its advanced technology
and innovation. The use of advanced technique and medium of using online platform for
selling the goods online, will help the Etsy company to interact with the consumers of
different country to expand their business all around the world.
Legal Factor: The legislation and government norms, ease the medium of doing
business. The registration and incorporation procedure for starting a small scale industry
is very simple and policies has been made to promote the SMEs to grow their business at
large level so that investment can be increased. The high investment shows the growth
opportunities of an organization.
Environmental Factor: The UK global economy are facing significant change in the
environment that plays important role in providing resources to the industry to
manufacture the demanded goods. It emphasizes mainly on sustainable products and
pollution free goods and services to foster the growth of the economy . The Esty
company are required to use effective environment policy to safeguard the natural
resources and maintain ecological balance in the ecosystem.
Therefore, all the above mentioned external factors are important to ensure growth and
expansion of online business.
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Porter's Generic Model: It is the important strategic model that are used to examine the growth
and performance in the competitive market to attract the consumers. It was coined by the
Michael Porter. It is a source of earning higher profit and revenue to expand and diversify their
business in the international market. The Porter's Generic model is required to taken into
consideration to strategies the policies and plans to achieve higher growth in the market. The
Etsy company will use this growth model to reduce the expenditure and maximize the profit
with effective planning.
There are three strategic sources of Porter's Generic Model are mentioned below:
Cost Leadership Strategy: It is a tool used to gain competitive advantage over the
competitors. The plan is made to use the resources in efficient way to bring transparency
in the working system by avoiding wastage. The Etsy company can ensure the higher
growth by selling their products through online platform at reasonable prices to attract the
large base of consumers.
Differentiation Strategy: It refers to research and development of the product to make it
unique from the others. The feature, quality and design of the product helps to
differentiate the industry (Carney, 2020). The Etsy company is selling handicraft and
antique items that are famous in many countries and demanded by many people. It is an
opportunity for Etsy company to supply more such products to design the houses and
offices with their handicraft items.
Focus Strategy: The focus is required to understand the current market needs and
expectation to achieve higher growth. It is believed that competitive market is dynamic
and complex and it is important for Etsy company to understand the behavior of the
consumer to serve better services to them.
Therefore, these strategic model helps to make effective decision to create brand value and
loyalty in the market. It promotes higher revenue for expansion of business in the market.
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
An opportunity to grow is examined with the help of evaluating the growth opportunities
and implementing those plans to achieve the desired result. The Ansoff growth vector is an
important strategy tool which is used to introduce and enter new product in the market. The Etsy
company can use such strategic model to evaluate higher growth in the competitive market. It
and performance in the competitive market to attract the consumers. It was coined by the
Michael Porter. It is a source of earning higher profit and revenue to expand and diversify their
business in the international market. The Porter's Generic model is required to taken into
consideration to strategies the policies and plans to achieve higher growth in the market. The
Etsy company will use this growth model to reduce the expenditure and maximize the profit
with effective planning.
There are three strategic sources of Porter's Generic Model are mentioned below:
Cost Leadership Strategy: It is a tool used to gain competitive advantage over the
competitors. The plan is made to use the resources in efficient way to bring transparency
in the working system by avoiding wastage. The Etsy company can ensure the higher
growth by selling their products through online platform at reasonable prices to attract the
large base of consumers.
Differentiation Strategy: It refers to research and development of the product to make it
unique from the others. The feature, quality and design of the product helps to
differentiate the industry (Carney, 2020). The Etsy company is selling handicraft and
antique items that are famous in many countries and demanded by many people. It is an
opportunity for Etsy company to supply more such products to design the houses and
offices with their handicraft items.
Focus Strategy: The focus is required to understand the current market needs and
expectation to achieve higher growth. It is believed that competitive market is dynamic
and complex and it is important for Etsy company to understand the behavior of the
consumer to serve better services to them.
Therefore, these strategic model helps to make effective decision to create brand value and
loyalty in the market. It promotes higher revenue for expansion of business in the market.
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
An opportunity to grow is examined with the help of evaluating the growth opportunities
and implementing those plans to achieve the desired result. The Ansoff growth vector is an
important strategy tool which is used to introduce and enter new product in the market. The Etsy
company can use such strategic model to evaluate higher growth in the competitive market. It
directs the e commerce company to make effective use of plans and strategy so, that expansion
can be done easily in future.
There are four growth strategies that are discussed below:
Market Penetration: It refers to launching of new product in the market to cover large
market share of the consumer. The Etsy company is required to add value in their product
to make it more innovative and quality product so that it will attract the consumer to
make purchase of such products (Hu, 2018). The product must be appealing for a long
term prospects to extend the business in the international market.
Market Development: It focuses on selling of existing goods into new market with the
objective of expanding the business. The Etsy company is required to launch new market
to satisfy the need of the consumer to evaluate the growth in the market. They can
promote new products on online platform to attract large consumer base about their new
products.
Product Development: It refers to necessary changes in the existing product as per the
demand of the consumer . The changes can be made in the product to increase its
efficiency and usage. The Etsy company can develop new handicraft product to design
new houses and interior. The new ideas and creativity in the product is demand of the
current market to survive in the competitive market.
Diversification: the last stage of growth strategy dealing with the diversification in the
product in relation to its features, design , package ad services to make advance the
existing product. The diversification is important to increase the production level of the
company to earn higher profit and revenue in the market. The Etsy company will use
diversification model to cover vast range of product that are demanding in the market .
Innovation: It refers to use of new ideas and creativity to increase the efficiency of
product. In context to Etsy, they are using the innovative technique in order to enhance
the selling and purchasing capacity of their product. It will improve the quality and
productivity of goods.
Technology: Technology is used to increase the production of product at a minimal cost.
It help to reduce the labour cost that are incurred to hire the employee. Technology helps
to ease the mode of doping business. In context to Etsy, they have updates technology
can be done easily in future.
There are four growth strategies that are discussed below:
Market Penetration: It refers to launching of new product in the market to cover large
market share of the consumer. The Etsy company is required to add value in their product
to make it more innovative and quality product so that it will attract the consumer to
make purchase of such products (Hu, 2018). The product must be appealing for a long
term prospects to extend the business in the international market.
Market Development: It focuses on selling of existing goods into new market with the
objective of expanding the business. The Etsy company is required to launch new market
to satisfy the need of the consumer to evaluate the growth in the market. They can
promote new products on online platform to attract large consumer base about their new
products.
Product Development: It refers to necessary changes in the existing product as per the
demand of the consumer . The changes can be made in the product to increase its
efficiency and usage. The Etsy company can develop new handicraft product to design
new houses and interior. The new ideas and creativity in the product is demand of the
current market to survive in the competitive market.
Diversification: the last stage of growth strategy dealing with the diversification in the
product in relation to its features, design , package ad services to make advance the
existing product. The diversification is important to increase the production level of the
company to earn higher profit and revenue in the market. The Etsy company will use
diversification model to cover vast range of product that are demanding in the market .
Innovation: It refers to use of new ideas and creativity to increase the efficiency of
product. In context to Etsy, they are using the innovative technique in order to enhance
the selling and purchasing capacity of their product. It will improve the quality and
productivity of goods.
Technology: Technology is used to increase the production of product at a minimal cost.
It help to reduce the labour cost that are incurred to hire the employee. Technology helps
to ease the mode of doping business. In context to Etsy, they have updates technology
and knowledge that are used by them in order to increase the revenue and profit of their
online business.
Partnership: It refers to collaboration with group of persons that are done in order to
increase the source of funds, technology and operation of a business. In context to Etsy,
they can use partnership to shard their common goal and objective to grow business at
large scale. This is one of the best opportunity through which small scale company can
easily expand their business at international level.
Therefore, the above stated growth model are necessary for expansion point of view. The
potential growth can be enhanced by using effective planning. The Etsy , e-commerce company
will choose strategic model to deal with the challenges they are facing due to lack of effective
planning. These model helps to coordinate the activities to expand the business at large scale.
Discuss the options for growth using a range of analytical framework?
There are multiple options that are available to Etsy company to implement the new plans
and policies to achieve higher growth (Kardes, Flynn and Dugan, 2020). The external forces
may contribute in their development to influence them to use innovative ideas and technology to
promote their goods on online platform to satisfy the need and expectation of their consumer to
create brand value and goodwill in the market. They can use Porter's Generic model to achieve
online business.
Partnership: It refers to collaboration with group of persons that are done in order to
increase the source of funds, technology and operation of a business. In context to Etsy,
they can use partnership to shard their common goal and objective to grow business at
large scale. This is one of the best opportunity through which small scale company can
easily expand their business at international level.
Therefore, the above stated growth model are necessary for expansion point of view. The
potential growth can be enhanced by using effective planning. The Etsy , e-commerce company
will choose strategic model to deal with the challenges they are facing due to lack of effective
planning. These model helps to coordinate the activities to expand the business at large scale.
Discuss the options for growth using a range of analytical framework?
There are multiple options that are available to Etsy company to implement the new plans
and policies to achieve higher growth (Kardes, Flynn and Dugan, 2020). The external forces
may contribute in their development to influence them to use innovative ideas and technology to
promote their goods on online platform to satisfy the need and expectation of their consumer to
create brand value and goodwill in the market. They can use Porter's Generic model to achieve
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long term objective of the organization. The consumer are king of the market and organization
are developed their goods according to market demand. The Etsy company are supplying the
goods through online mode to cover wide range of consumers in the market through their quality
services .It is a priority of the company to produce more goods to earn maximum profit and
reputation in the global market.
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
Funding is the elixir for any business to continue its business operations and monitory
rotations with the view to keep the vitality of business and its operations. Funding enables
company to run its administrations affairs smoothly and effectively. It maintains the flow of
revenues. Every business organization wants to grow and expand its business operations in order
to create market monopoly by providing and reflecting distinct utility services and products.
Funding strengthen company to endure events which are uncertain which may affect the
company badly in its operations. There are various types of legitimate sources which are
constituted to provide financial assistance to a company. Companies in their business journey at
some point requires huge monetary assistance with the purpose to expand their business
operations or bring major changes in businesses environment. With the aid of different funding
sources companies can choose any of the available source as per suitability for the
company(Martins and Miles2021). These funding institutions provide wide options of findings
including long term and short term funding with certain conditions which needs to be fulfilled by
the companies seeking financial assistance. Considering the requirement of Etsy company which
is a online merchant sells handmade products seeking financial assistance to expand its business.
Etsy company can select any sources prevailing in the market to meet their requirements from
the following alternatives mentioned below:
Bank Loan: bank loans are the most common and preferable option which provides
various varieties of lending options for businesses. Especially for small scale business
establishments. Bank provides two alternatives, short term loan and long term loan
almost to every business venture who has a good market value and running a successful
business. To obtain financial assistance from bank, the loan seeker needs to satisfy bank
by fulfilling some official formalities relating to security deposit in consideration for
loan amount. Etsy is a small scale online company operating within the territory of UK,
are developed their goods according to market demand. The Etsy company are supplying the
goods through online mode to cover wide range of consumers in the market through their quality
services .It is a priority of the company to produce more goods to earn maximum profit and
reputation in the global market.
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
Funding is the elixir for any business to continue its business operations and monitory
rotations with the view to keep the vitality of business and its operations. Funding enables
company to run its administrations affairs smoothly and effectively. It maintains the flow of
revenues. Every business organization wants to grow and expand its business operations in order
to create market monopoly by providing and reflecting distinct utility services and products.
Funding strengthen company to endure events which are uncertain which may affect the
company badly in its operations. There are various types of legitimate sources which are
constituted to provide financial assistance to a company. Companies in their business journey at
some point requires huge monetary assistance with the purpose to expand their business
operations or bring major changes in businesses environment. With the aid of different funding
sources companies can choose any of the available source as per suitability for the
company(Martins and Miles2021). These funding institutions provide wide options of findings
including long term and short term funding with certain conditions which needs to be fulfilled by
the companies seeking financial assistance. Considering the requirement of Etsy company which
is a online merchant sells handmade products seeking financial assistance to expand its business.
Etsy company can select any sources prevailing in the market to meet their requirements from
the following alternatives mentioned below:
Bank Loan: bank loans are the most common and preferable option which provides
various varieties of lending options for businesses. Especially for small scale business
establishments. Bank provides two alternatives, short term loan and long term loan
almost to every business venture who has a good market value and running a successful
business. To obtain financial assistance from bank, the loan seeker needs to satisfy bank
by fulfilling some official formalities relating to security deposit in consideration for
loan amount. Etsy is a small scale online company operating within the territory of UK,
the sell profile of etsy is decent and has a capacity to grow more in future. To expand its
business operations it can opt for a short term bank loan.
Advantages of Bank Loan
banks are recognized institution and works on set rules and regulations.
Banks provides loan at reasonable rate of interest which is legitimate.
No complex formalities.
Bank ensures best assistance to its customer.
Disadvantage of Bank Loan
long term loan takes long time and charge high interest.
Bank lowers the credit score on defaulting payment.
Bank forfeits the security, when principal payment not paid.
Small Business Administration loans : it offers many types of loan to small scale enterprises
which operates business at a local level. This institution was constituted with the view to provide
financial assistance to business owners who fails to obtain loan from traditional banks. The
requirements for obtaining loan from these institutions are collateral such as home or any asset of
value which satisfy the value for loan together with business profile and business transactions
and a clean record of the business owner. It offers money assistance to businesses who wants to
establish business at low scale or to expand small medium businesses(Wonglimpiyarat2018).
Advantages:
lower rates of interest
it offers loan to small scale businesses only.
It provides financial assistance who wants start their business.
Person who does not qualify for loan from traditional bank can approach Small business
administration loan service.
Disadvantages:
lots of formalities needs to be addressed.
Strict funding requirements to qualify the lending approval
long application process.
Venture Capital: another route to source financial assistance for business seeking loan for
expansion. Venture capital prefers to lend loan to tech based firm or startup which has a potential
business operations it can opt for a short term bank loan.
Advantages of Bank Loan
banks are recognized institution and works on set rules and regulations.
Banks provides loan at reasonable rate of interest which is legitimate.
No complex formalities.
Bank ensures best assistance to its customer.
Disadvantage of Bank Loan
long term loan takes long time and charge high interest.
Bank lowers the credit score on defaulting payment.
Bank forfeits the security, when principal payment not paid.
Small Business Administration loans : it offers many types of loan to small scale enterprises
which operates business at a local level. This institution was constituted with the view to provide
financial assistance to business owners who fails to obtain loan from traditional banks. The
requirements for obtaining loan from these institutions are collateral such as home or any asset of
value which satisfy the value for loan together with business profile and business transactions
and a clean record of the business owner. It offers money assistance to businesses who wants to
establish business at low scale or to expand small medium businesses(Wonglimpiyarat2018).
Advantages:
lower rates of interest
it offers loan to small scale businesses only.
It provides financial assistance who wants start their business.
Person who does not qualify for loan from traditional bank can approach Small business
administration loan service.
Disadvantages:
lots of formalities needs to be addressed.
Strict funding requirements to qualify the lending approval
long application process.
Venture Capital: another route to source financial assistance for business seeking loan for
expansion. Venture capital prefers to lend loan to tech based firm or startup which has a potential
of high growth such as digital technology , social media, outsourcing etc. venture capitals takes
ownership in a company to which it lending loan. Also it provides assistance to carry out best
projects to make huge profits. It claims to provide high return investment. Etsy is a small scale
online merchant which suited best for this source. Therefore it can apply in venture capital for
sourcing funds for expanding its business operations.
Advantages
it provides assistance in investment.
there is no system of returning money like bank loan.
It creates wide opportunities for company who wants to expand their business , especially
tech-oriented company.
Disadvantages
high cost in consideration of funds.
High risk of losing business.
It only offer funds to tech-oriented companies and businesses.
Angel Investment: these investors are highly wealthy and has a good experience about the
investments. Angles are retired professionals who has a deep knowledge about technical and
management knowledge about the business. It is difficult to find a reliable angel investor who
can invest in a business. Angels in return of their money keep rights and shares in company's
management and operations. For etsy , it is suitable to find angel investor considering the
company's work profile.
Advantages
angles investors are less risky source
opens different businesses opportunities with the wisdom of angles knowledge and
network.
Assist in business development plan
angles do not charge in monitory terms.
Disadvantages
angel investment involves risk of fraud and deceit.
Control of administration can be shifted to angles.
Angles investors are not easily available.
ownership in a company to which it lending loan. Also it provides assistance to carry out best
projects to make huge profits. It claims to provide high return investment. Etsy is a small scale
online merchant which suited best for this source. Therefore it can apply in venture capital for
sourcing funds for expanding its business operations.
Advantages
it provides assistance in investment.
there is no system of returning money like bank loan.
It creates wide opportunities for company who wants to expand their business , especially
tech-oriented company.
Disadvantages
high cost in consideration of funds.
High risk of losing business.
It only offer funds to tech-oriented companies and businesses.
Angel Investment: these investors are highly wealthy and has a good experience about the
investments. Angles are retired professionals who has a deep knowledge about technical and
management knowledge about the business. It is difficult to find a reliable angel investor who
can invest in a business. Angels in return of their money keep rights and shares in company's
management and operations. For etsy , it is suitable to find angel investor considering the
company's work profile.
Advantages
angles investors are less risky source
opens different businesses opportunities with the wisdom of angles knowledge and
network.
Assist in business development plan
angles do not charge in monitory terms.
Disadvantages
angel investment involves risk of fraud and deceit.
Control of administration can be shifted to angles.
Angles investors are not easily available.
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Etsy company, can choose any of the alternatives which are mentioned above in order to
expand its business with the view to make progress in competitive business world. The suitable
option for etsy would be to go ahead with small business administration loan or venture capital
because both etsy qualifies their requirements and can easily obtain financial assistance from
these sources.
Evaluate potential sources of funding and justification for the adoption of the appropriate
source of fund?
Different funding sources bring relaxation to the business entrepreneurs, because these
sources prevent business from loss and an uncertain events. These sources can also helps in
business growth by offering monitory assistance to expand business parameters in terms of
operations and territories. In the same way etsy can use the support of these sources to expand
their business and bring desire changes which takes business to another level. The best sources
which are suitable for etsy could be small business administration or venture capital.
Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.
Business plan is a business model which contains objectives, strategies and vision to take
businesses at long run. Business plannings are the set of targets and goals which the company
has to achieve. These plans provides the way through which company conduct its operations and
bring investments. The entire business is designed to function on set business plans. Similarly,
etsy too has a business plan which supports in running the business. Etsy is now looking for
business expansion and for doing this it requires investment to go ahead with expansion plan.
Executive summary: etsy is a e-commerce company which sells handmade decorating products
across the UK. They are looking forward to expand their exiting business beyond UK. They also
planning to develop their infrastructure and bring technical modification in online platform to
provide easy access to its customers and subscribers. They further planing to introduce new
segment products. To achieve their targeted plans they need to frame better planning and its
execution, following are the strategies and objectives prepared by the company are discussed
below:
Business overview: etsy is a UK based new social selling e-commerce company which was
established in 2019 in UK with object to spread its services throughout the UK.
expand its business with the view to make progress in competitive business world. The suitable
option for etsy would be to go ahead with small business administration loan or venture capital
because both etsy qualifies their requirements and can easily obtain financial assistance from
these sources.
Evaluate potential sources of funding and justification for the adoption of the appropriate
source of fund?
Different funding sources bring relaxation to the business entrepreneurs, because these
sources prevent business from loss and an uncertain events. These sources can also helps in
business growth by offering monitory assistance to expand business parameters in terms of
operations and territories. In the same way etsy can use the support of these sources to expand
their business and bring desire changes which takes business to another level. The best sources
which are suitable for etsy could be small business administration or venture capital.
Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.
Business plan is a business model which contains objectives, strategies and vision to take
businesses at long run. Business plannings are the set of targets and goals which the company
has to achieve. These plans provides the way through which company conduct its operations and
bring investments. The entire business is designed to function on set business plans. Similarly,
etsy too has a business plan which supports in running the business. Etsy is now looking for
business expansion and for doing this it requires investment to go ahead with expansion plan.
Executive summary: etsy is a e-commerce company which sells handmade decorating products
across the UK. They are looking forward to expand their exiting business beyond UK. They also
planning to develop their infrastructure and bring technical modification in online platform to
provide easy access to its customers and subscribers. They further planing to introduce new
segment products. To achieve their targeted plans they need to frame better planning and its
execution, following are the strategies and objectives prepared by the company are discussed
below:
Business overview: etsy is a UK based new social selling e-commerce company which was
established in 2019 in UK with object to spread its services throughout the UK.
Mission: their objective is to cover the large e-commerce market and attract the customers by
providing best quality handmade products.
Vision: their vision is to establish strong market presence by proving various offers on
purchasing their products including discounts.
Objectives: the prime objective they have is to expand its market and provide range of products .
Funding: funding is very important for business expansion, as there are various different sources
of funding institutions. Etsy can according to their suitability pick any source.
Growth Strategy: its a model they follow to bring growth in their overall business together with
adopting innovation approaches to cover the large market and create their own space and identity
in the business world.
Plan of Action: Etsy needs to set its operational plan which will allow them to identify
deficiency in business. Plan of action is a vision which needs to implement in best way with the
view to achieve the targets. Etsy can improve its e-commerce platform to provide easy access to
customer.
Marketing Mix Strategy
Marketing mix is comprised of four key factors which needs to considered during initiating
product marketing which includes the consumer preferences and the product performance in the
market. The company emphasized on making intersection with customers in order to take their
review about the product they offer. In the same way etsy needs to provide digital services and
provide the best services to its customer by improving its services.
Product Strategy: Etsy is an online merchant which sells handmade products, it needs to
widened the scope of products it sells along with quality and pricing of products. Etsy needs to
provide offers,schemes like discount or cashback or it can put an option of payment on
installment. This measures will attract the customer.
Pricing Strategy: price of a product must be reasonable which could attract the customer , etsy
needs to set its product pricing customer friendly. Effective pricing strategy can help in making
strong customers base. This can be possible only if etsy use methods which enables them to
reduce their costing on products it sells.
Distribution Strategy: its a channel which every company use to maintain the cycle of demand
and supply. By way of distribution a product make its way to the customers. Etsy needs to work
providing best quality handmade products.
Vision: their vision is to establish strong market presence by proving various offers on
purchasing their products including discounts.
Objectives: the prime objective they have is to expand its market and provide range of products .
Funding: funding is very important for business expansion, as there are various different sources
of funding institutions. Etsy can according to their suitability pick any source.
Growth Strategy: its a model they follow to bring growth in their overall business together with
adopting innovation approaches to cover the large market and create their own space and identity
in the business world.
Plan of Action: Etsy needs to set its operational plan which will allow them to identify
deficiency in business. Plan of action is a vision which needs to implement in best way with the
view to achieve the targets. Etsy can improve its e-commerce platform to provide easy access to
customer.
Marketing Mix Strategy
Marketing mix is comprised of four key factors which needs to considered during initiating
product marketing which includes the consumer preferences and the product performance in the
market. The company emphasized on making intersection with customers in order to take their
review about the product they offer. In the same way etsy needs to provide digital services and
provide the best services to its customer by improving its services.
Product Strategy: Etsy is an online merchant which sells handmade products, it needs to
widened the scope of products it sells along with quality and pricing of products. Etsy needs to
provide offers,schemes like discount or cashback or it can put an option of payment on
installment. This measures will attract the customer.
Pricing Strategy: price of a product must be reasonable which could attract the customer , etsy
needs to set its product pricing customer friendly. Effective pricing strategy can help in making
strong customers base. This can be possible only if etsy use methods which enables them to
reduce their costing on products it sells.
Distribution Strategy: its a channel which every company use to maintain the cycle of demand
and supply. By way of distribution a product make its way to the customers. Etsy needs to work
on its delivery services. Delivery service should be effective and productive in respect of
customer which delivers the product to customer safely and timely.
Promotion Strategy: it is one of the important factor of marketing mix, promotion is the
process of introducing a product to the targeted market. This process is very essential and plays
important role for success of the product. In the same way etsy needs to promote its product by
adopting various modes of marketing on digital platforms.
Financial budget:
customer which delivers the product to customer safely and timely.
Promotion Strategy: it is one of the important factor of marketing mix, promotion is the
process of introducing a product to the targeted market. This process is very essential and plays
important role for success of the product. In the same way etsy needs to promote its product by
adopting various modes of marketing on digital platforms.
Financial budget:
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Develop an appropriate business plan for growth and securing investment , setting out
strategic objectives, strategic and appropriate framework for achieving objectives ?
The appropriate business plan helps the company to set their vision and mission to achieve
the objectives. The Etsy company will make plan to grow their business to attract the investors.
The investment helps the company to expand their business and convert small scale industry into
large scale. It is a medium to transform the existing goods and services to create good reputation
in the business world. The setting up objectives , strategies and aims helps the company to
evaluate higher growth. The proper use of available resources aims to maximize profit.
strategic objectives, strategic and appropriate framework for achieving objectives ?
The appropriate business plan helps the company to set their vision and mission to achieve
the objectives. The Etsy company will make plan to grow their business to attract the investors.
The investment helps the company to expand their business and convert small scale industry into
large scale. It is a medium to transform the existing goods and services to create good reputation
in the business world. The setting up objectives , strategies and aims helps the company to
evaluate higher growth. The proper use of available resources aims to maximize profit.
Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.
The option of exit and succession are always open to a company, company at any point of
time can exercise these option depending on the situation and circumstances. There comes a time
when company face revenue loss when business does not perform well. Continues losing revenue
can put company into huge debt and this phase is very challenging for any company. Company at
times of huge business loss prefers two options to prevent further loss and stop the rising of debt.
They either sell their company or shut down the business operation(Singhand Srivastava2018).
These option also helps the company to save itself from becoming insolvent. In respect of etsy ,
exit strategies are discussed below:
Exit Strategy: exit strategy is a an option to surrender or shutting down of business permanently
with the purpose to transfer the ownership of a company to another entity. Following are the exit
strategy:
Liquidation: its a process which company use at times of dissolution of business or firm and all
the assets of such firm are put to sell in order to payoff the balance to its creditors and debtors
and the remaining proceeds are paid to the shareholders. Company use this option when it does
not have funds to pay their dues(Wiggan, 2018).
Advantage of Liquidation
by way of this, settlement of debts can be made
saves from court procedure
this process includes low cost
Disadvantage of Liquidation
the liability is on the directors
all major business assets are put to auction.
Company's staff left are unemployed.
Merger and Acquisition: this process enables the company to associate with other company
with the view to achieve companies goals, merger means two company voluntarily coming
together to conduct business. And acquisition signifies the taking over of a company by the other
company with the view to expand and built strong customer base.
Advantage of Merger and Acquisition
this step elevates the reputation and value of the company merging.
drawbacks of each option.
The option of exit and succession are always open to a company, company at any point of
time can exercise these option depending on the situation and circumstances. There comes a time
when company face revenue loss when business does not perform well. Continues losing revenue
can put company into huge debt and this phase is very challenging for any company. Company at
times of huge business loss prefers two options to prevent further loss and stop the rising of debt.
They either sell their company or shut down the business operation(Singhand Srivastava2018).
These option also helps the company to save itself from becoming insolvent. In respect of etsy ,
exit strategies are discussed below:
Exit Strategy: exit strategy is a an option to surrender or shutting down of business permanently
with the purpose to transfer the ownership of a company to another entity. Following are the exit
strategy:
Liquidation: its a process which company use at times of dissolution of business or firm and all
the assets of such firm are put to sell in order to payoff the balance to its creditors and debtors
and the remaining proceeds are paid to the shareholders. Company use this option when it does
not have funds to pay their dues(Wiggan, 2018).
Advantage of Liquidation
by way of this, settlement of debts can be made
saves from court procedure
this process includes low cost
Disadvantage of Liquidation
the liability is on the directors
all major business assets are put to auction.
Company's staff left are unemployed.
Merger and Acquisition: this process enables the company to associate with other company
with the view to achieve companies goals, merger means two company voluntarily coming
together to conduct business. And acquisition signifies the taking over of a company by the other
company with the view to expand and built strong customer base.
Advantage of Merger and Acquisition
this step elevates the reputation and value of the company merging.
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It also built strong market value and presence.
Disadvantages of Merger and Acquisition
it creates panic and disturbance in employees
it may create internal conflict due to merging and Acquisition.
Succession Strategy : its an important concept of a business according to which a business must
be succeeding, it should not be shut down permanently. It should continue and take all the
necessary steps and opportunities to increase growth and create high market value. A succeeding
business must maintain a strong financial position to survive the uncertainties and
loss(SimoniSchaper,and Nielsen, 2022). Etsy should make its market presence strong and plan
its business in long-term basis and efforts should be made to keep running the business
smoothly. Gradually, etsy will make strong grip in the market and built strong e-commerce
brand.
Licensing: this concept is a medium of granting official permission to other who gets authority
to use, promote, make profit, sell, circulate, manufacture the products in consideration of royalty
which needs to be paid by the franchisee. In this process right is granted to operate the business
activities of the real business.
Advantages of licensing
it creates many new business opportunities
its practice involves less risk.
Disadvantage of licensing
the real owner of a company holds little authority in licensing
there is a high risk of violence
Franchising: in this, a ownership right is transferred to franchiser who establish franchising own
company in the same name and products. Etsy can franchise its online e-commerce to other
entity and by way of this it can provide its services worldwide.
Advantage of Franchising
low risk associated with franchising.
It provides opportunity to expand business
Disadvantage of Franchising
there is no concern of innovation.
Privacy related issue exist in franchising
Disadvantages of Merger and Acquisition
it creates panic and disturbance in employees
it may create internal conflict due to merging and Acquisition.
Succession Strategy : its an important concept of a business according to which a business must
be succeeding, it should not be shut down permanently. It should continue and take all the
necessary steps and opportunities to increase growth and create high market value. A succeeding
business must maintain a strong financial position to survive the uncertainties and
loss(SimoniSchaper,and Nielsen, 2022). Etsy should make its market presence strong and plan
its business in long-term basis and efforts should be made to keep running the business
smoothly. Gradually, etsy will make strong grip in the market and built strong e-commerce
brand.
Licensing: this concept is a medium of granting official permission to other who gets authority
to use, promote, make profit, sell, circulate, manufacture the products in consideration of royalty
which needs to be paid by the franchisee. In this process right is granted to operate the business
activities of the real business.
Advantages of licensing
it creates many new business opportunities
its practice involves less risk.
Disadvantage of licensing
the real owner of a company holds little authority in licensing
there is a high risk of violence
Franchising: in this, a ownership right is transferred to franchiser who establish franchising own
company in the same name and products. Etsy can franchise its online e-commerce to other
entity and by way of this it can provide its services worldwide.
Advantage of Franchising
low risk associated with franchising.
It provides opportunity to expand business
Disadvantage of Franchising
there is no concern of innovation.
Privacy related issue exist in franchising
Etsy is a e-commerce industry, it needs to adopt the succession plan to achieve their long tern
targets and achieve the desired objects.
Evaluate the exit or succession options for a small business comparing the options and
making valid recommendations?
The small scale industry is required to opt for succession to grow their business at large
level. Through succession, The Etsy company can either go for Franchising or licensing
depending upon nature and financial position in the market (Rosamond, 2019). The small scale
industry is required to effectively use the succession strategy to grow at international level. It
will help them to optimize use of resources and achieve the objective of growth.
CONCLUSION
From the above report, it can be concluded that planning plays a pivotal role in
companies growth , a plan of growth for a company clear the vision, Objectives,and goals of a
company . This report has covered all the essential aspects which are important for company's
growth together with various sources of financial assistance and other methods which helps in
company's growth such as , licencing and franchising, to support this report a UK based e-
commerce company is taken for illustrating the implementation of above extracts and principles
which helps in growth of company along with its PESTLE analysis.
targets and achieve the desired objects.
Evaluate the exit or succession options for a small business comparing the options and
making valid recommendations?
The small scale industry is required to opt for succession to grow their business at large
level. Through succession, The Etsy company can either go for Franchising or licensing
depending upon nature and financial position in the market (Rosamond, 2019). The small scale
industry is required to effectively use the succession strategy to grow at international level. It
will help them to optimize use of resources and achieve the objective of growth.
CONCLUSION
From the above report, it can be concluded that planning plays a pivotal role in
companies growth , a plan of growth for a company clear the vision, Objectives,and goals of a
company . This report has covered all the essential aspects which are important for company's
growth together with various sources of financial assistance and other methods which helps in
company's growth such as , licencing and franchising, to support this report a UK based e-
commerce company is taken for illustrating the implementation of above extracts and principles
which helps in growth of company along with its PESTLE analysis.
REFERENCES
Books and Journals
Agyenim-Boateng, C., 2021. Exploring the motivations of using companies registered in tax
havens to invest in UK housing market. Journal of Economic Studies.
Boschmans, K. and Pissareva, L., 2018. Fostering Markets for SME Finance: Matching Business
and Investor Needs.
Carney, M., 2020. Interview with Mark Carney: climate change, business and finance. Scottish
Geographical Journal, 136(1-4), pp.108-111.
Hu, W., 2018. Context and Comparison of Translation Programmes in China and the UK:
Market Forces, Global Positions and Curriculum Content. In Education, Translation
and Global Market Pressures (pp. 157-234). Palgrave Macmillan, Singapore.
Islam, M.S., 2020. Scenario Planning: Systematic Handling of Organisational Crises during
COVID-19 Economic Recession. Available at SSRN 3684788.
Kardes, I., Flynn, L.R. and Dugan, M., 2020. Online retailing: determinants of competition
between multinationals and local firms in emerging markets. International Journal of
Retail & Distribution Management.
Martins, J. and Miles, J., 2021. A techno-economic assessment of battery business models in the
UK electricity market. Energy Policy, 148, p.111938.
Rosamond, B., 2019. Brexit and the politics of UK growth models. New political
economy, 24(3), pp.408-421.
Simoni, L., Schaper, S. and Nielsen, C., 2022. Business model disclosures, market values, and
earnings persistence: evidence from the UK. Abacus, 58(1), pp.142-173.
Singh, S. and Srivastava, S., 2018. External Factors Affecting Indian Hand loom Industry: A
Paradigm Shift. International Journal of Business Insights & Transformation, 12(1).
Wiggan, J., 2018. Policy boostering the social impact investment market in the UK. Journal of
Social Policy, 47(4), pp.721-738.
Wonglimpiyarat, J., 2018. Challenges and dynamics of FinTech crowd funding: An innovation
system approach. The Journal of High Technology Management Research, 29(1), pp.98-
108.
Books and Journals
Agyenim-Boateng, C., 2021. Exploring the motivations of using companies registered in tax
havens to invest in UK housing market. Journal of Economic Studies.
Boschmans, K. and Pissareva, L., 2018. Fostering Markets for SME Finance: Matching Business
and Investor Needs.
Carney, M., 2020. Interview with Mark Carney: climate change, business and finance. Scottish
Geographical Journal, 136(1-4), pp.108-111.
Hu, W., 2018. Context and Comparison of Translation Programmes in China and the UK:
Market Forces, Global Positions and Curriculum Content. In Education, Translation
and Global Market Pressures (pp. 157-234). Palgrave Macmillan, Singapore.
Islam, M.S., 2020. Scenario Planning: Systematic Handling of Organisational Crises during
COVID-19 Economic Recession. Available at SSRN 3684788.
Kardes, I., Flynn, L.R. and Dugan, M., 2020. Online retailing: determinants of competition
between multinationals and local firms in emerging markets. International Journal of
Retail & Distribution Management.
Martins, J. and Miles, J., 2021. A techno-economic assessment of battery business models in the
UK electricity market. Energy Policy, 148, p.111938.
Rosamond, B., 2019. Brexit and the politics of UK growth models. New political
economy, 24(3), pp.408-421.
Simoni, L., Schaper, S. and Nielsen, C., 2022. Business model disclosures, market values, and
earnings persistence: evidence from the UK. Abacus, 58(1), pp.142-173.
Singh, S. and Srivastava, S., 2018. External Factors Affecting Indian Hand loom Industry: A
Paradigm Shift. International Journal of Business Insights & Transformation, 12(1).
Wiggan, J., 2018. Policy boostering the social impact investment market in the UK. Journal of
Social Policy, 47(4), pp.721-738.
Wonglimpiyarat, J., 2018. Challenges and dynamics of FinTech crowd funding: An innovation
system approach. The Journal of High Technology Management Research, 29(1), pp.98-
108.
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