Growth Opportunities, Ansoff Matrix, Funding Sources, Exit/Succession Options, Business Plan and SMART Analysis

This report discusses the concepts of growth opportunities, Ansoff Matrix, funding sources, exit and succession options, and business plan and SMART analysis for Miss-guided company. It also includes a SWOT and PESTLE analysis. The report highlights the importance of having clear goals, cash flow, assessment of requirements, effective market research, and market adaptations for successful business expansion. It also explains the four elements of Ansoff Matrix and their pros and cons. The report further elaborates on various funding sources such as borrowing from family and friends, venture capitalists, and small business loans. It also discusses different exit/succession options such as liquidation, mergers and acquisitions, and licensing. Lastly, the report includes a business plan and SMART analysis for Miss-guided company.

UNIT 42 ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Growth Opportunities.............................................................................................................1
2. Ansoff matrix in context of Miss-guided company-...............................................................2
3. Funding sources- ....................................................................................................................3
4. Exit/Succession Options-........................................................................................................4
5. Business plan and SMART analysis-......................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Assessment refers to systematic review for making inferences about learning and
development of learners. The basic purpose is to gather relevant information about the
performances of learners (Borisoglebskaya and Sergeev, 2018). This report will highlight the
concepts of growth opportunities, Ansoff Matrix along with their application with the pros and
cons. Apart from this, the study will also elaborate the aspects of funding, exit and succession
options along with preparing business plan for a small and medium enterprise.
MAIN BODY
1. Growth Opportunities
At the time of expanding the business activities, it has been identified that the business
entity have to follow certain path which are filled with lots of opportunities along with
challenges as well. It exists irrespective of specified growth goals and thus require appropriate
planning to avoid such issues while conducting the task.
 Clarified goals: Having clear goals for expansion enable the business to identify the
necessary steps in order to achieve success. This will help in managing the progress as
the manager assign target dates for smaller objectives which lead the basic goal. It has
been created by considering potential risks that might arise in future terms (Weer and
Greenhaus, 2020). This provides clear understanding about the tasks and the time within
which it needs to be completed. However, it might be non-realistic constraints.
 Cash flow: Expansion might expensive and hence requires capital in order to afford
changes or to survive in the existing market area. It requires asking for additional cash
from investors or reinvesting the personal profit margin into innovative manner to
expand business activities. This assist management to know about the requirement of
funds and for which purpose. On the other hand, it might affect by external factors as
well.
 Assessment of requirements: Before even starting expansion of the business,
appropriate assessment of the original requirements of the business should be highly
considered (Colson and et.al., 2021). At this stage, the plan of actions helps a lot as it
provides detailed information about the ways in order to expand the functioning. For this,
set and specified period has been decided by the senior authorities. In order to achieve
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the targets, a pathway has been generated for successful expansion of the business. It
enables the business planners to act according to the requirements although it might
become happen that unnecessary requirements from past experiences might waste the
time and money of the company.
 Effective market research: Irrespective of the capital, one have to think about the
market conditions as well as the requirements through which one can expand their
business. For this, market research is highly required and the changes and modifications
have been made accordingly. It must be fulfilled and consider each and every aspect that
is extremely beneficial and significant for the growth of the enterprise. It enables the
company to strengthen their position within the market space while it might consume a
lot more time in doing the research and performing questionnaire as well as interview.
 Market adaptions: After the expansion the management have to take necessary actions
in order to attract more and more audience and consumers towards their business entity
(Martono, Yulianto and Wijaya, 2021). If the company wants to expand business into
international market, they have to do research accordingly in the macro environment. It
helps the business to meet differences into the market place however, it might include
costs as well.
2. Ansoff matrix in context of Miss-guided company-
Ansoff matrix is a type of tool utilized by firms to evaluate and plan strategies for
expansion and growth. It includes four elements which has been explained with the help of
choosing Tesco:
 Market penetration: With the help of using this strategy the company sell their existing
products into existing market place. This strategy helps the firm to increase their market
share along with utilizing products by existing consumers. With this company can able to
come in front of special offers over many products in order to increase sales (Prasetyo
and Rahman, 2018). However, it might cause price to lower down throughout the entire
industry and competitors also tries their maximum to match prices of their products and
services.
 Market development: This strategy has been implemented by Miss-guided company in
order to sell the existing products into the new market. With this, the company is able to
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expand successfully at diversified locations. Although it consists of certain risk related to
capital investment into expansion, either in order to build at new locations or expand
market efforts into new and advanced territories. As the company target new market
area, it creates certain amount of risks for the company and hence requires appropriate
research before investing into the same.
 Product development: In this category, it has been evaluated that Miss-guided company
had developed a lot of number of products on the name of their own label in order to sell
them into the existing market place. Moreover, they cater at diversified market segments
as well. This particular strategy opens up various opportunities for the firm and creates
more power within the enterprise. On the other hand, it is also costly activity for the firm
as new product introduction in the new market area requires huge amount of capital as
well as risk taking behaviour of the firm.
 Diversification: These are generally very difficult to implement as selling of new
products into the new market area is highly difficult and tough for any establishment and
so for Miss-guided company as well. It minimizes the risk of loss, expose more
opportunities and reduces volatility (Palazzo and Ferri, 2020). However, there are certain
disadvantages as well because it potentially diminishes return and also add on the
transaction costs.
Hence, from the complete analysis, it has been identified that Tesco utilizes product
development strategy which helps them a lot in order to build their brand image and value into
the market area in which various other companies are also available who are doing their business
within the similar segment.
3. Funding sources-
Funding is the process of providing the resources for financing the need, program or for the
business. This generally occurs in the form of the money as well as in the form of efforts for the
company. This term is used when the company uses its internal cash for meeting requirements of
the cash. Funds are needed by the companies to improve the products and services of the
company (Alam and et.al., 2020). These provides benefits to the companies only when there is
proper regulations for using these funds which directly adds the value to the business. Funding is
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considered as the fuel to the business power and the types of funding is depended on the types of
the business as well as the present situation of the business
The sources of the funds for the company can be like credit, venture capital, donations, grants,
savings, taxes and many more. The small businesses can go to several for funding such as-
Borrowings from the family and friends- This funding source is considered as the most
trusting fund as this is the easiest and suitable way for the small scale companies to raise the
funds because banks and other sources may not provide the fund but family and friends always
supports in this. One of the biggest benefit of borrowing from this is they charge very low rate of
interest. And drawback is that there is very low legal protection in this.
Venture capitalists- These are the investors which provides the funds for starting the business
or to the small companies who are planning for the expansion. VC invests in these companies as
by this they can receive high return on the investment. The most benefits of funding from these
sources is that it also provides the advice and guidance and the disadvantage is that there is loss
of control as well as of the ownership status.
Small Business loan- These are the loans which are specifically provided for the business
purposes. These are provided at very reasonable rates to these small companies. The benefit of
these source is that it does not provide the set of rules that how the money should be used. And
the drawback is that banks only provides to those companies who earns much profit in the
business.
The MIss-guided Company is an large scale company so they can go for business loans and the
venture capitalists also goes for these sources for raising the funds for improvements in the
products and services as whenever they requires the cash for the smooth running of the business.
4. Exit/Succession Options-
It is the planning process which outlines the visual map for the business to successfully exit the
private business. In this planning of the exit, includes the financial, legal, tax of the business as it
is getting sold (ZHANASSILOVA and et.al. 2018). It is very important for the business to
evaluate the option for the exit thoroughly as this helps in the successfully exit from the market.
This helps the business to take suitable exit options which are available for the success. There
are several exit options for the company such as-
Liquidation- It is the exit strategy which can be used by the business to successfully exit from
the market. Selling the company to the buyer is considered as the most appropriate and suitable
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method of getting pout of this business (Plummer, Parker and Reyes, 2020). It can also be
defined as the process in which by selling the company, is the conversion of cash from the
assets. This method is used by the business when they does not have other effective option of
exit. This method of exit generates very low returns and for this the company must consider the
restructuring the whole business for the purchase. The retail businesses usually goes through this
because it helps them in easily getting out from this. The biggest advantage of this option of exit
is that the outstanding debts are fully written off and the drawbacks is that it all the business
assets are sold to the buyer.
Mergers and Acquisitions- This is the exit strategy in which the ownership is also given to the
business to the buyer who buys the business and the owner of the business has no more control
on the business. The business mergers are considered as the growth tool as well as the exit
strategy for the companies (Hanage and et.al. 2021). This exit method is practices by the owner
who wants that the business must run after the sell also. The companies who wants to exit heir
business through this exit mode has to follow the certain steps such as researching the acquirer
suitable for the business, then managing the policies and systems of the company, thorough
market analysis as well as correct and right valuation of the company. The major benefit of this
exit strategy is that it reduces the costs of the training and the drawback is that it may reduce the
strength of the brand.
Licensing- When the company is not successful, then the company is forces to be sold at less
price then it is expected. This involves licensing the part of the technology or selling of the
intellectual property to maximise and recover the value for the shareholders of the company
(Gomez, Isakov and Semansky, 2018). The biggest benefit of the licensing is that it helps in
reducing the risk for both the parties as well as it creates for the buyer in easy entry in the
market. The major drawbacks of this is that it is offered for the limited time and the royalty
payments have to be paid.
5. Business plan and SMART analysis-
Business plan is the document which outlines the overall working of the new organization which
includes how will achieve the goals and objectives. Usually the business plan provides the visual
map of the overall company which means financial, marketing and the operational activities of
the new company.
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SMART analysis- It is the term which stands for the Specific, measurable, achievable, realistic
and timely. These goals help the company to acquire the overall focus on the efforts of the
company and helps to achieve the goals effectively.
Company summary- Miss-guided is the UK based retailer companies selling the clothes to its
customers. This company is the small scale company. This company is coming up with the new
idea of sustainability in clothes.
Market analysis- It is very important for the company to do market analysis before launching the
new product to the market. This can be done through the swot analysis and PESTLE analysis.
Swot analysis-
Strengths:
The biggest strength of this company will be
there are fewer competitors at present in this
market because very few companies are going
fir sustainability in this sector.
Opportunities:
The opportunity is that the company will be
able to exist in the market and able to attract
the customers.
Weaknesses:
The weaknesses are that this product does not
have much demand in the present and it is not
known to the people.
Threats:
The threat for this company can be it will cost
much investment for this.
PESTLE analysis-
Political factors:
These are the factors which
affects the most to the fashion
industry (Cui, Allan and Lin,
2019). This company can be
affected by the Brexit and the
shift of the US and UK will
also affect the company.
Economic factors:
These are the factors which
can affect the company by the
Economic volatility affect the
most the profitability of the
company.
Social factors:
The cultural trends are the
factors which will affect the
demand of the products of the
company. The company will
be affected by this factor.
Technological factors: Legal Factors: Environmental Factors:
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The technology is rapidly
increasing so the companies
which are not adopting this
may have impact. So Miss-
guided company can also have
impact by this.
The laws and regulations are
the key things which affects
the business the labor laws and
many more can affect the
company.
Environment and
sustainability are very
interlinked. The company is
going for the sustainability
then the company is affected
for the aw materials for the
company.
Strategy and Implementation-
The Miss-guided company may use the strategic management process for the implementation as
well as determining the effective strategy for the Miss-guided company (Hans, 2018). The
process involves different stages-
Setting goals-
 The first step is to set the goals by identifying the business environment of the company.
 The next step is to formulate to identify strategies for effectively achieving the goals and
objectives of the company.
 The next step is to implement the strategies which were formulated in the above steps.
 And at last, the step which involves evaluation the strategies that how much these were
proved effective for the company.
This process will help the Miss guided company to implement the effective strategies which will
help them to effectively achieve the goals and objectives of the company.
Financial Plan-
Assets Dollar $ Liabilities Dollar
Machinery 24000 Accrued expenses 200
Cash in hand 40000 Short term loans 30000
Office equipment 10000 Long term loans 40000
TOTAL $ 74000 TOTAL $ 70200
On maintenance-
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Employees benefits $ 1000
Salalries and wages $ 3000
TOTAL $4000
The three objectives of growing the business are-
 Maintaining the quality of the product
 Setting the reasonable prices
 Meeting the expectations of the customers
CONCLUSION
This report has discussed the terms such as growth opportunities for the company as well as the
ansoff’s matrix for the organisation with the pros and cons. Along with this, it has also discussed
the term funding and the sources of funding of the SME’s and their benefits and drawbacks.
Further, it has also discussed the exit options for the company and their benefits and drawbacks.
Later on, this report involves the business plan.
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REFERENCES
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Colson, A. and et.al., 2021. Adaptations of the human placenta to hypoxia: opportunities for
interventions in fetal growth restriction. Human reproduction update, 27(3), pp.531-
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Martono, S., Yulianto, A. and Wijaya, A.P., 2021. Growth Opportunities Utilization: Debt
Overhang or Asymmetric Information?. Foundations of Management, 13(1), pp.171-
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Prasetyo, P.E. and Rahman, Y.A., 2018. Effectiveness of new product development on mat
creative industry. KnE Social Sciences, pp.633-653.
Palazzo, M. and Ferri, M.A., 2020. Business Areas That Can Benefit of Dual Marketing
Practices: Presentation of Case Studies. In Beyond Multi-channel Marketing. Emerald
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Alam, M., and et.al., 2020. Funding sources and performance management systems: an
empirical study. Journal of Accounting & Organizational Change.
ZHANASSILOVA, A., and et.al. 2018. Issues Inherent in Seeking Out Investment for a
Startup. Revista ESPACIOS, 39(27).
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Journal of Economics, 14(4), pp.141-157.
Hanage, R., and et.al. 2021. Journey's end: a dynamic framework of entrepreneurial processes
and capitals relating to early stage business exit. International Journal of
Entrepreneurial Behavior & Research.
Gomez, R., Isakov, A. and Semansky, M., 2018. Small business and the city. University of
Toronto Press.
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Plummer, L.A., Parker, S.C. and Reyes, S.C., 2020. Regional path breaking: the role of industry
switching, industry diversity, and new knowledge in new venture exit. Entrepreneurship
Theory and Practice, p.1042258720952288.
Cui, J., Allan, A. and Lin, D., 2019. SWOT analysis and development strategies for underground
pedestrian systems. Tunnelling and Underground Space Technology, 87, pp.127-133.
Hans, V.B., 2018. Business environment–conceptual framework and polices. International
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