Growth Opportunities and Funding Options for Miss Guided: A Business Plan
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This report assesses growth opportunities for Miss Guided, a successful online retail organization targeting women. It evaluates Ansoff matrix, funding options, exit strategies, and provides a business plan.
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Explaining the growth opportunities with its pros & cons..........................................................1 Defining framework of Ansoff matrix with its advantages and disadvantages.........................2 Explaining source of funding options available for specified organization by describing its benefits and drawback.................................................................................................................3 Defining exit options available for the enterprise with its merits and demerits..........................4 Providing business plan...............................................................................................................5 CONCLUSION...............................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Growth is one of the significant objective of the organization whichis required to be accomplished by enterprise in order to gain success. In the current era, gaining growth & development is difficult due to the prevailing level of the competition. The current study is based on Miss guided which is considered to be one of the successful organization in the retail sector. The current report will pay attention on assessing the growth opportunities when expanding along with pros and cons. Ansoff matrix will be applied by referring growth opportunities via involving pros and cons. Possible source of funding or SME via explaining its benefits and drawbacks. The option of exiting the market will be involved in the current study through paying attention on its advantages and drawbacks. It will include business plan to get depth understanding. MAIN BODY Explaining the growth opportunities with its pros & cons Miss guided is one of the organization that offers the clothing in the retail sector by targeting women. There are different kinds of the opportunities available for the organization to enhance its productivity and suitability in the sector. This can be identified by evaluating the different aspects so that deeper information can be obtained. Strengths Goodavailabilityoftalentedemployees, effectivecommunicationandmanagements strategy and significant level of supply chain network (Benzaghta and et.al., 20210. Weaknesses Lack of financial management and marketing techniques that is hampering its performance Opportunities there are various aspects which can offer the firm to gain distinct level of growth which involveshavingappropriateexpansionof productrange,diversificationoftargeted audience,moreopeningofphysicalstore, partnering with other brands, etc. Threats Higherlevelofcompetitionandstrict international rules and regulation compliance can impact firm's growth & development 1
There are distinct form of the opportunities which is helpful for the company to conduct expansion practices that offers firm to get the relevant ability to achieve pros and cons which are as follows ï‚·Product range expansion is one of the opportunity that can be achieved by enterprise for havingsignificant ability to gain growth (Cheng nd et.al., 2021). It can target men category as well which can permit it to attain pros like higher market share, greater profitability, sustainability and competitive edge. This can serve disadvantage like short of cash, increased h capital requirements, less control and comprise in productivity and quality. ï‚·Customer diversification via entering into the distinct market that can become possible having the effective expansion to generate greater amount of revenue and profitability. Thiscanbe exertedviaofferingchildrenrelatedproducts. Thiscanincreaseits opportunity to mitigate risk of loss, exposing more return, safeguarding adverse market cycle and reducing volatility performance. ï‚·More opening of physical store can provide the assistance in gaining the ability to growth via connecting with people in traditional manner (Birnbaum and De Wispelaere, 2021). This can allow to the firm to get the significant level of benefits such as having more personal connection with customers, inclined ability to influence, getting accurate response of innovation, greater satisfaction to buyers, etc. on the other side, drawbacks are having greater amount of cost, no proper scheduling, etc. ï‚·It is performing effectively in the retail sector that can allow it to grab the opportunity of partnering with the international companies so that better productiveness and ability to cover higher competitiveedge can become possible. This can serve disadvantage like interference, ineffective decision-making, etc. Defining framework of Ansoff matrix with its advantages and disadvantages It concerned with the expansion grid h that offers four strategies for gaining growth.It as well provides assistance in evaluating the risk associated with each strategy (The Ansoff Model,2022). The four strategy comprises having market presentation, product development, market development anddiversification. These all strategy has few pros and cons which hampers the growth & development of firm in both positive and negative manner. Market Penetration 2
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This is related with having inclination of the sales of existing products into the similar market. This can be exerted by reducing prices to attract customers, increasing promotion and distribution efforts and acquiring competition in the same market. The advantages which can be achieved by the specified organization includes better market share, reduce competition, greater customers' satisfaction, etc. the lacking areas are low profitability, etc. These option is suitable for gaining growth as it operates on e-commerce channel that can aid in reducing cost and inclining profitability with maintaining penetration price. Product development It is one of the significant strategy that is related with developing new product for catering exiting market. There are usually all types of the products for women are offered by the mentioned company. This is executed by investing in R&D, acquiring competitor's products, formulating partnership strategy, etc. this can offer benefits like increasing more revenue, having customer retention capacity, meeting innovation aspects, etc. there are few limitations such as threat of failure, higher cost involvement, etc. Market Development this sis associated with having the ability to entering the new market with the exiting products. This is implemented by catering to distinct customer segment, entering into new domestic and foreign market. This offers benefits likes improve quality of products, building organizational resilience, promoting leads and sales, etc. On the contrast to this, it involves having higher risk, impact on performance of firm, etc. that makes it unsuitable for the specified firm. Diversification It pay attention on developing the new products for the distinct market. This is considered to be one of the riskiest strategy that can affect organization in longer term.This involves related and unrelated diversification which can provide the business to achieve benefits and drawbacks. It can conducted related diversification that involves offering clothing products to men & children segment. Explaining source of funding options available for specified organization by describing its benefits and drawback There are various kinds of the option available for the small and medium sector firms that permits achieving higher level of ability to coordinate with the prevailing requirements. The 3
methods that are available for the enterprise involves bank loans, debenture, angel investor and crowdfunding which possess the certain benefits and the drawbacks which are as follows Bank Loan It is one of the significant option that allows the SME to get amount of money for set period within an agreed repayment schedule (Stead and Hastings, 2018). Miss guided can achieve the distinct level of the pros that can boost the ability of organization to meet its objective of successful operation in sector. This involves borrowing larger amount of fund, paying back in installment, fixed expense, no impact on credibility, etc. on the contrast to this, drawbacks included smaller firm risk, high interest risk, etc. Debenture This is related with having market security issued by business raise money for long term activities. This offers benefits such as having lesser risk, less time, not permanent solution, etc. On the others side, it can be interpreted that organization can face drawbacks such as payment of interest & principle can become burden, limited level of borrowing, etc. Angel investor This is related with having high net worth individuals how can provide financial resources to the company in respect to carry forward their operational practices in exchange for equity in the company. This gives benefits like having credibility from investors, contact with potential customers, contacting and having reliable market knowledge and strategies. In against to this, it can be specified that This has few limitations that includes loss of control, inability to take significant decision, disruption in processing smooth functioning. crowdfunding it is way to raise money from m larger number of investors in order to accomplish organization goal of having financing. This can provide advantages such as easier to access, less pressure on management, possibilities of expertise, etc. It can lead to get certain limitations that involves inflexibility, high risk of failure and threat of fraud, etc that can negatively impact firm. Defining exit options available for the enterprise with its merits and demerits In order to exit the market the specified organization can pay attention on adopting the various method such as liquidation, acquisition, merger and IPO (How to Create an Exit Strategy for Your Small Business, 2022). There areavailability of the benefits and demerits which can be attained by enterprise that are as follows: 4
Liquidation In this business sells it's all assets in order to generate the liquidity and paying off to the investors and creditors this is highly utilized method in the SME sector due to availability of the benefits like no debts after liquidation, absence of legal actions, relative low cots, etc. On the other side, demerits comprises loss of future opportunities, spoiled market image and sense of failure. Merger It involves combining of two businesses into one so that increase value can be offered to investors is done by having horizontal vertical, conglomerate, market and product extension. The advantages includes having increase market share, educing cost of operations, avoids replication,expandingbusinessintonewgeographicalareabadpreventingclosureof unprofitable business. This can serve limitations like gaps in communication, raising price of products, etc that can hamper accomplishing of objective. Acquisition In this one company buys another that is highly taken into practice for exiting market. There are various merits that comprises ability to fill in n critical service gaps, efficient method of needed assets, opportunity to create leverage, reducing cost, etc (Radhika and Bhuvaneshwari, 2022). In the against to this, it gives drawbacks like clash of different culture, reducing differentiation,becomedistraction,qualitycomprise,etcwhichcannegativeinfluence functioning of firm. IPO it is related with selling the stock of the company that can be basically done by SME as well to receive distinct levels of benefits that includes fundraising. Having publicity & credibility, reducing overall cots, etc. IPO can affect the fir adversely that comprises potential control loss, additional regulatory requirements and burden payment to inventors , Providing business plan Executives summary Growth can be achieved by taking crucial actions such as offering new products and targeting distinct audience. The current study is based on Miss guided which operate sin retail sector. It has conducted evaluation of firm's position via SWOT, PESTLE and competitors analysis. Current report has implemented strategy like STP and marketing mix so that targeting 5
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customer can become possible. It has pad attention on financial forecasting, management summary and monitoring & controlling via variance analysis, etc so that better outcome scan be achieved. Company Summary Miss guided is one of the successful organization that operates as online retail sector for targeting women as its customers. The current business plan is based on offering the clothing products to the men category via offering all product such as shirts, shorts, pants, t shirt and trousers. It will pay attention on opening physical stores and emerging on online platform to in the domestic market. Products description The set of the products which will be offered by the organization to it customers involves pants, t shirt and trousers, shorts and shirts. The crucial features which will be involved in the preferredproductsinvolveshavinghigherquality,compliancewithprevailingtrends, competitive pricing, customization, etc. These products will help firm to gain competitive edge in market o via covering greater attention on specified targeted audience. Market Analysis Summary SWOT analysis Strengths ï‚·Skilled labor force, good information sharing and distribution method. Weaknesses ï‚·Ineffectivemarketing&financial management Opportunities ï‚·Greater possibilities of sales revenue increase, market share, etc Threats ï‚·higher level of competition PESTLE evaluation Political factorsPolitical stability, trade relation, tax regulations, etc can impactspecifiedfirminnegativemannersothat relevant course of action should be adopted. Economic factorsMissguidedcangetaffectedpositivelybyGDP, saving, disposal, interest rate prevailing in the market 6
firm is keeping competitive pricing so that positively get affected (Magalhães, 2021). Social factorsChanging trend in the market, consumer attitude, belief andculture,etccanpositiveaffectthespecified enterprise as it is highly giving emphasis on having significant compliance with requirement of customers. Technological factorsEmergence of digital technology and having relevant technologicalupgradationtooffergoodcustomer service is adopted by enterprise (Nandonde, 2019). Legal factorsIndustrial rules and regulation, government legislation., etccompliancetooperatesuccessfullyinindustry obtained by Miss guided enterprise. Environment factorsThereare distinctenvironmentalfactorssuch as access to resource, reduce carbon foot print and decline pollution, etc which can favorably affect firm. Competitors analysis Miss guidedASOS Pricing strategyFor selling this new product competitivepricingstrategy will be used Affordable pricing strategy Operating AreaDomestic marketInternational market USPsGoodqualitywithspecific product range Wide range of brandedgoods at different price point Strategy and Implementation STP SegmentationIt can be exerted by paying attention on geographical, 7
behavioral, demo graphical and psychological. Miss guided will conduct the customer segmentation on the basis of demographic and behavioral basis. TargetingTo target men category for offering clothing products the company will use the targeting strategy in turn higher knowledge to understand customer can become possible. PositioningThefirmwillpositionviapayingattentiononhaving competitive pricing strategy and higher standardize quality. Marketing mix Product There are different kinds of the products which will be offered by the specific organization that includes shirts, shorts, pants, etc. It will possess the features like higher quality, significant compliance with prevailing trends, customization offers, etc. These products can permit firm to gain the competitive edge in market in urn higher profitability can be gained. Price There are various types of the pricing strategy such as competitive , cost plus, penetration, skimming, etc. For offering the specified products to the targeted audience the firm pays attention on adopting competitive pricing strategy. The mentioned strategy can help firm to gain the significant level of profitability and competitive edge to overcome prevailing competition. Places For targeting the specified audience the mentioned company concentrates on domestic market andemergenceondigitalplatforminturnattainingsignificantlevelofgrowthand development. It can permit to cover the good market share in industry in turn accomplishing the organizational objective of operating in sector can become possible. Promotion there are various techniques for promoting the goods & service offered by firm. The tools which is focused by Miss guided enterprise includes social media, business based platform, email, direct and print media marketing. It will help in achieving good ability to spread awareness bout the products to customers. 8
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Management Summary Operational team includes all the employees who are concerned with from first to end customer meeting steps (Blut, Teller and Floh,2018). This ensures that effective and optimum utilization of resources is doneand structure of company is functional. In this all the roles and responsibilities are clear to employees which allows obtaining quality performance. Financial Plans ParticularsAmount £m Amount £m Sales Revenue400000 COGS Cost of Sales150000 Wages35000185000 Gross profitability215000 Indirect expenses Rent25000 Telephone expense10000 Van running costs20000 motor expense18000 LighteningandHeating expense 20000 General Expense15000 marketingandpromotional expenses 30000138000 Net profitability77000 Monitoring and controlling 9
For monitoring and control the course of action that are implemented is benchmark and variance analysis. This is helpful in estimating lacking areas via identifying the prevailing deviations and its causes so that improvement action can be implemented. CONCLUSION From the above re[rot it can be concluded that growth and development is highly important of the company to gain competitive position in the sector. The current study has involved growth opportunities such as diversification, etc. It has involved Ansoff matrix, sources of finance and exit strategy along with pros & cons. It has comprised business plan via involving SWOT, PESTLE, competitors analysis, marketing mix, financial forecasting and monitoring and controlling. 10
REFERENCES Books and Journals Benzaghta,M.Aandet.al.,2021.SWOTanalysisapplications:Anintegrativeliterature review.Journal of Global Business Insights.6(1). pp.55-73. Birnbaum, S. and De Wispelaere, J., 2021. Exit strategy or exit trap? Basic income and the ‘power to say no’in the age of precarious employment.Socio-Economic Review.19(3). pp.909-927. Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A meta-analysis.Journal of retailing.94(2). pp.113-135. Cheng, L.C. And et.al., 2021. User-Defined SWOT analysis–A change mining perspective on user-generated content.Information Processing & Management.58(5). p.102613. Magalhães, T.D., 2021. International Tax Law Between Loyalty, Exit, and Voice.Dalhousie LJ. 44. .49. Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African Community.Global Business and Organizational Excellence.38(4). pp.54-61. Radhika, K.P. and Bhuvaneshwari, D., 2022. A comparative analysis of msme finance in india.Asian Journal of Research in Business Economics and Management.12(1). pp.23- 31. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Online How to Create an Exit Strategy for Your Small Business.2022. [Online]. Available through: <https://www.thebalancesmb.com/small-business-exit-strategies-2947988> TheAnsoffModel.2022.[Online].Availablethrough: <https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff- model/> 11