Unit 42 - Planning for Growth: Opportunities, Ansoff Matrix, Financing, Exit and Succession Options for Hit Group Toy

UNIT 42 – PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
An explanation of the basis of competitive advantage for the business:.....................................3
Critical analysis opportunities available to the Hit group toys company....................................4
Critical assessment of growth options through Ansoff Matrix....................................................5
Critical evaluate the options for financing growth as well as souces of funding........................6
Exit and succession options for Hit group Toy............................................................................9
Recommendation for the business.............................................................................................10
Business plan:............................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Every business organization desire to expand their unit across the world, dream of
international dealing. Expansion is one of the most challenging part and occur after achieving
success in local market, firm who have ability to expand in new market have to face certain type
of challenges because business carry no experience in new market, expansion is only possible if
business have strategic alignment with the market condition (Wright, 2020). This study is based
on HTI Group, this toy manufacturing unit providing wide range of children's toy dealing in
market of the UK and nearby nations. This report will discuss basis of competitive advantage and
growth opportunities available with the company. Later this report will discuss Ansoff's growth
matrix along with financing option and will discuss exit and succession option and key
recommendation to the company. At last, this report will discuss complete business plan
including 7 steps for start up and action plan.
MAIN BODY
An explanation of the basis of competitive advantage for the business:
Every business organization know the value and importance of getting ahead from their
competitors, this is only possible when firm have ability to gain internal stability with some sort
of uniqueness. However, business carry certain type of area which provide them competitive
advantage (Jiménez and et.al., 2020). For example, HTI Group carry uniqueness in their product
design allowing them to become competitive in the market. It is very clear that company focus
on basis of getting competitive advantage, there are certain type of basis found internally in the
business, these are:
Resource and production capabilities: This is one of the most important area for
manufacturing company to gain competitive advantage in the market, when firm have
capabilities to arrange resource in affordable cost and ability to maintain production speed then
gaining market leadership become easy. For example; HTI Group have resource and production
capabilities allowing them to become leading toy manufacturing company in the UK, they
haven't changed their price range even after COVID-19 impact because they have capabilities to
satisfy their customer. Here, resource capabilities does matter, firm need to gain internal stability
to become competitive in the market.
Uniqueness: Uniqueness does matter when it comes to gaining competitive advantage in the
market, firm who have uniqueness in their product, service or strategic aligment then they have

higher chances of gaining market leadership. It is very clear that consumer demand those product
which are completely unique and carry special feature. For example; toys or products of HTI
Group is unique in terms of design and feature allowing company to become competitive in the
market and help them to deliver products full of innovative features.
Customer segmentation: Consumer carry certain type of factors, when business examine these
factors and act accordingly then they have higher chance of getting competitive advantage in the
market. A careful segmentation of customer does matter, this allows company to get clear idea
about marketing process (Onileowo and et.al., 2021). For example; HTI Group have ability to
segmented their customer accordingly, they target parent as customer, they even segment age
and income level to get better idea.
Critical analysis opportunities available to the Hit group toys company
Poter described the three generic statrgies as opportunities under which a company can
choose irrespect of their size (small, big or medium) to pursue their competitive advantages.
Here, three strategies are differentiated, lower cost and focus.
Cost leadership strategy:
In this strategy the copany offer low prices as compare to the competitors. The Hit group
toys has already adopted this strategy because by this strategies company can easily increase
profits by the reducing cost. Increasing market share by charging lower price. The company is
also trying to grab consumers from this way as well (Khan, Niqab, and Hanson, 2021). The
company has been attracting their customers with the low prices that are offered in the market
place to attract more customers. This also allows Hit group to sell their products at fair or low
prices as well as they earn profits by thin margins gained from large volumes of the business.
Differentiation strategy:
This make business products and services different from their competitors as well as
more attractive than the competitors. This is best strategy to cover the whole market and gain
more consumers in market place by making various products from all other products that are
available today (Knight, Moen, and Madsen, 2020). The Hit group toys company is already
developing as well as innovating its products generally by offering according to the needs and
requirements of the consumers. So to make success of this strategy business need to do good
reserch, innovation as well as development. Also, ability to deliver the good or high quality