Planning for Growth and Expansion of Merchant & Mills

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Palling for growth and development of the business is helpful to clarify the aims and
objectives of the company. It summarises all the operational goals and required activities to be
performed to achieve the goals. Significant strategies need to developed and implemented when
a small business want to expand. It is very important to rectify the opportunities in order to grab
their to increase the market share. This report will cover a planning for growth and expansion of
merchant & mills which is a small scale up business established in UK. It is a kind of private
fabric store in England which is famous for its cloth rolls, handmade fabrics, sieving tools,
weaving and many other tools. Financial resources are also very important to expand the
business. In this report all the succession and exit options are recommended for the company.
TASK
P1 Evaluation of Growth Opportunities with Justification
PESTEL Analysis
It is a structure to examine all the external environment which hinders the organisational
operations. These external factors include evaluation of six factors which affects the company
and that is technological, legal, environmental and social factors which consist macro
environment of the company. PESTLE analysis of the company has given below:
Political Factors: The factor such as international trade policies, regulation of foreign countries
and government policies comes under political factors. Fashion industry of UK had suffered
a lot during the pandemic in context of sustainability. Most of the clothing and fabrics are
imported from the Europe and during the pandemic import was totally restricted. After
Betrix there are many challenges faced in trade relations. Merchant and Mills also deals
with problems associated with trade relations. Restrictions associated with import has
created hurdles for the company (Madsen and Johanson, 2022).
 Economic factors: Economic factors includes the economical status of the nation like
interest rates, foreign exchange rates and disposable of the company etc. the cost price of
manufactured clothes is very high. Company can decrease the cost price of manufactured
products through manufacturing products in other nation such as china and India.
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 Social factors: Customers needs are the top of priority. Social factors includes fashion
and clothing, trends of fashion and location of store. In order to enhance the number of
customers the company is increasing the number of fabric stores in other countries
(Liang, X., and et. al., 2022).
 Technological factors: It is defined as utilisation of commercialisation of products and
advanced sewing machines . According to the fashion trends, the clothe stores offer
products on online platform. In context of Merchant and Mills, the company is also
having online outlets which offers scissors, buttons and many other requires for
manufacturing the fabrics. Technologies need to increase the process of delivery.
 Environmental factors: The factor consist of measurement of sustainability and
avoiding pollution. Fashion and clothing factories of UK, is responsible for 1110
percentage of greenhouse gas release. Wastage of clothing is burnt every year which
cause pollution. Company need to avoid the wastage to make a contribution to make
environment pollution free (Man, R., and et. al., 2022).
 Legal factors: This consist all the law and regulations which is applied on the company.
The company need to adhere to the given rules and regulations to ensure safety of
employees. To avoid unwanted conflicts company requires to follow all the rules and
regulations. Following all the legal rules and law helps company to save money.
Porter's generic Strategies
This model provides three strategies to make competitive organisational advantages.
Michael porter has introduced this strategies which helps business to earn profits. These three
strategies consist of differentiation strategies, cost leadership and focus strategies. In context
with Merchant and Mills, these strategies are mentioned and explained below:
 Cost Leadership Strategy: The strategy is very important to decrease the cost of
products in order to earn more and more profit. Companies implement this strategy to
maintain a log term probability. The organisation sale all the products under the average
cost to expand the market share (Kim, Kim and Lee, 2022).
 Differentiation Strategy : To maintain the sustainability in the market, it is very
necessary to manufacture only unique products. Manufacturing unique products helps to
compete with rivals to acquire high market share. The company need to produce such
products which are totally different from other. Manufacturing unique products helps to
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