Planning for Growth: Strategies for Missguided

This report discusses growth planning strategies for Missguided, including the use of matrices to determine growth opportunities, Ansoff's growth vector matrix, and various sources of funding. It also includes a business plan for the expansion of the company.

Planning for growth
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3

1. Use of Boston Consultancy Group Matrix and GE/McKinsey matrix to determine the best
growth opportunities-...................................................................................................................3
2. Ansoff’s growth vector matrix to evaluate growth opportunities-...........................................5
3. The various sources of funding that the business can access-.................................................6
PART 2............................................................................................................................................7
Business Plan for the expansion of the company-.......................................................................7
Various ways a small business owner can exit the business and the implications of each
option-........................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Growth planning can be defined as the strategic business activity which enables the business
owners in planning as well as giving the track to the organic growth in the revenue of the
company. It helps the businesses in effectively allocating the resources for adapting the changes
in the business environment which are driven by the modern technology from the competitors of
the company (Robynn Rixse and CDA, 2019). It is very important for planning the growth of the
company as this will help them to manage the resources of the company efficiently. Missguided
is the UK base company as the multi channel retailer selling the clothes targeting the children of
the age 16-35 years old of the women. This company was established in the year 2009 and it is
headquartered in the UK. This report includes two parts that is the part A and part B. The part A
of this report has discussed the growth theories for the company and the Part B will majorly
discuss the business plan.
MAIN BODY
PART 1
1. Use of Boston Consultancy Group Matrix and GE/McKinsey matrix to determine the best
growth opportunities-
Boston Consultancy Group Matrix is used as the planning tool by the companies which
enables them in showing the graphical representation of the products and services of company.
This graphical representation helps the company to decide whether the product must be kept, sell
or it needs more investment. This growth matrix was introduced by the Boston Consulting Group
in the year 1970. This BCG growth share matrix breaks the products into the four categories
which are known as the dogs, cash cows, stars as well as the question marks (Kukartsev and
et.al., 2019).
Dogs- This is called when the market share of the company is very low and the growth of the
company is also at very low rate and these are then sold, liquidated or to be repositioned. These
products do not generate much cash for the company as they have low market share.
Cash Cows- These are considered when the company has the low growth but with this, they also
have the large market share of the company. These are the products which generate the higher
returns for the organization as well as these products provide the long term advantage to the
company. These cash cows should be milked for the cash top e invested in the future as well as
for the growth of the company.

Stars- The products which have much high growth which has large portion in the market then
these are considered as the stars and the companies musty invest in these types of the product
more. These products generate high returns for the company it also consumes large amounts of
the cash of the company.
Question Marks- These are the opportunities for the company which does not enjoy the large
market share of the company for the long time. These products grow much fast, but they also
consume the large amount of the cash of the company.
The Missguided company using this group matrix for the growth of the company will help them
to analyse the product which has the low as well as the high tendency to grow in the company.
Using this growth matrix will help them in long term strategic planning which the company must
consider for the growth opportunities for the company as this will enable them to decide where
the company has to invest and what all products are to be developed for the growth of the
company.
McKinsey Matrix-
This is the matrix which uses many variables to determine the dimensions such as the
industry attractiveness and the competitive strength (Mulders, 2019). This growth matrix
combines the two dimensions of the company into the matrix. Through this, the company can
determine where the company have to invest and where not invest for holding their position in
the market.
Industry Attractiveness- The business unit through this will enable to evaluate the profit in the
industry. The company must consider the long term potential growth, industry profitability,
industry size as well as the entry and exit barriers for the company. The company also must
evaluate the power of the suppliers and the buyers and any other environmental factor which
may affect the industry attractiveness (Stewart, 2019). The higher the profit potential which
means the industry is more attractive. Missguided company must consider these factors while
evaluating the attractiveness of the industry.
Competitive strength- This business unit when evaluated, they must consider the power of the
competitors in the industry. There are many factors which will help the company to evaluate the
competitive advantage of the industry. These factors are such as the market share it commands,
brand awareness, profit margins of the company as well as the customer loyalty. The strengths of
company are refereed to as the unique selling preposition which provides them the competitive

advantage in the market. Missguided company must ensure about the sustainable competition in
to stay ahead in the long run.
The GE McKinsey matrix will hep the company to effectively evaluate the competition in
the market as well as the attractiveness of the industry which will help them to analyse the future
growth of the company and hoe they can grow their business in the highly competitive market by
evaluating the competitive strength as well as the profitability in the industry of the company.
2. Ansoff’s growth vector matrix to evaluate growth opportunities-
Ansoff Matrix is also known as the Product or Market expansion Grid. It is the tool which is
used by the companies to evaluate the and plan the strategies for the growth of the company.
This matrix theory was developed by the applied mathematician as well as by the business
manager that is H. Igor Ansoff and this was published in the Harvard Business Review in the
year 1957 (Ansoff and et.al., 2018). This theory of the growth has help3d many marketers as
well as the executives for the better understanding of the risks for their growing of the business.
This strategy has four strategies which will help the Missguided company to grow its business by
effectively using this strategy such as-
Market Penetration- The main aim of this strategy is that it enables business to focus on
increasing the sales of the existing products of the company in the existing market. Missguided
company can use this strategy as this will help the company to increase the sales by providing
good quality product to the existing customers as this will attract more customers and this will
increase the revenue of the company. This strategy can be used by the company to increase the
market share by the number of ways such as-
 Lowering the prices to attract new customers
 Promoting should be increased as well as the distribution efforts must be boosted
 Acquiring the competitor in the existing or the same market
Product development- This strategy mainly focuses on introducing the new products to the
exiting market. This has many benefits to the company as this will help the company to build the
brand image among the consumers. Missguided company can use this strategy for the growth of
the company as this will help them to introduce new product to the market and this will also help
the company to attract the new customers (Ho and Tsai, 2018). This can be done by many ways
such as the:
 Investing in the R&D department of the company to develop the new products

 Analysing and the thorough research of the competitor of the company.
Market Development- This strategy of the Ansoff Matrix focuses on the entering the new
market with the aim of the existing product to the consumers. This strategy will also help the
Missguided company to come with the new product in the fashion industry in the new market as
this will help them to expand their business to different location. This will increase the reputation
of the brand of the company. The market development involves the following approached which
can be used by the company-
 Catering towards the different segment of the customer
 Entering to the domestic market that is expanding regionally
 Entering to the foreign market that is expanding internationally
Diversification- This strategy is considered as the most effective for the expansion of the
company to the different region. This strategy has the main aim of entering into the market by
introducing the new products in the market. Missguided company using this strategy will be able
to expand its business with the new product. This strategy is much time-consuming and also cost
much money as compared to the other strategies.
The companies have two options for the diversification strategy these are such as-
Related Diversification- The company has to realize the potential synergies between the existing
business and the product or the market. Missguided company using this strategy will help this
company to understand and evaluate the synergies of the companies in the market.
Unrelated Diversification- In this, the company does not realize any potential synergies between
the existing business as well as the new market or the product.
3. The various sources of funding that the business can access-
Source of funding is very important for the company as it will help them in smooth
running of the business activities and these are to be paid by the company in the future from
where they have taken. There are various sources which are available for the company such as
the-
Crowdfunding- This is the process of raising the funds through the large number of the people.
The large groups of the people come together for the small investments they make for providing
the capital to the company which are required by the company for the smooth running or the
completion of the business activities. The company can create the charities or the campaigns as
well as they can take from the individuals for the contribution in the company (Kaur, 2019).

There are various types of the crowdfunding such as the securities based crowdfunding which
provides them the opportunities for the people to invest in the private companies as well as the
Donation based crowdfunding and many more which the company can use. Missguided company
can use this source of the funding as this will help them to access the capital from the individuals
or the public.
Peer to peer lending- This is the source of the funding which enables the individuals to take the
loans directly from the other individual. This is also known as the social lending as these are the
lenders which wants the better return on the cash savings. This is the online lending which
allows the investors to work directly with the people or the businesses for taking the loans.
Missguided company can use this source of funding as they may enjoy the fewer rates than the
rates taken by the banks.
Venture Finance- These are the source of the funds which helps the company to take the capital
from the individual to be invested by the exchange of the ownership stakes in the company.
These are much riskier then the other funding as the people who are much healthy invests in
these investments. Missguided company can go for these findings as this will help them to raise
the capital from the partners.
Missguided company can go for the peer to peer lending as these are much easy to apply
and offers the low interest rates to the company as well as it has the low closing fees. The
company will cost lower and the company can raise the loans from them. The other sources of
the funding are not much effective for this company because the crowdfunding will not be
proved effective as this company is small and the people may not contribute in this.
PART 2
Business Plan for the expansion of the company-
Executive summary:
This business plan is based upon an innovative business idea which is related to offering
customized clothing range in retail industry where customers can create and produce their own
designed clothes.
Company overview:
Missguided limited is based on global rapid fashion retailer with a huge brand name
located in Manchester, United Kingdom. The company offered employment to around 308
people within their organization. It also operates as an online retailer brand for women apparel

and accessories. Misguided have also begun a menswear brand called Mennace, delivering
through their websites as well as their offline stores.
The mission of the company is to focus on empower young females globally to look and
feel self-confident for every occasion and be what they want. Missguided is a forward thinking
fashion brand influence by real life that objective to do exactly that. Its operation to increase the
quality of creation for business partners, employees and customers. Their vision is to become the
number one global leader in a fashion retailer by qualify innovation and design to provide total
customers' satisfaction (Vulaj,2019). It tried to be caring and well managed organization with the
customers and employees. They truly believe that this dream can be achieved through providing
the best customer service and facilities.
Swot analysis of Missguided:
Swot analysis is a method of identifying basic strength, weaknesses, opportunities and
threats of an organization. In context of the company, It helps to guide the business with realistic
analysis and formulate a successful strategy for the business.
 Strength: Missguided is one of the largest retail store in the United Kingdom. It offers a
wide range of fashion brands and also offer to shop online along with international
delivery. It has an extensive range of apparels for 16-35 years old women. It has a short
term supply chain even through its global, it is efficient and simple and also company
plans to continue its expansion and invest more in its supply chain operations.
Missguided has a good brand image by highlight on the corporate responsibilities.
 Weaknesses: it is not been able to compete in the term of innovation market and the
company has a global shipping strategy to help the international buyers and become a
truly global business but it comes with high cost which is expensive for the business. The
company needs to enhance the use of data which helps to improve the sales growth and
also need to invest in the technologies to improve its customer experience and its
facilities (GURL, 2017).
 Opportunities: Missguided can arrange the events that can enhance the brand awareness.
Further expansion in the stores is also a good opportunity for the company to being well-
established. Ensuring the celebrity for the brand ambassador so that can increase the more
customers toward the brand. The new trends in the fashion industry helps to change in the
customer buyers behaviours and helps to enhance the more customer retention and new

customers. Increasing market advertisement efforts helps to highlight the business
success. Missguided can build its inventory, increase brands, add more products range
and also expand new categories because customers like a wide variety.
 Threats: Many retailers are push themselves to invest on social media. For example john
lewis is heavily investing retailer on e-commerce platform which is major threat for
Missguided. Already the e-commerce platform is free to sell the customers in new initiate
ways. Missguided suffer low sales due to Brexit uncertainty and it hits hard the retail
stores. The effect of Brexit can impact on the sales growth and revenue of the company.
Objectives:
 To enhance the customized clothing sales for business growth and expansion.
 To increase the 10% net profit with the use of innovation to attract customers within
organization.
 To recognize that the innovation concepts which are achievable or not in specific time.
 To measure the sales volumes and profitability of company (Schabasser,2022).
 To build up customer satisfaction level by services in an effort to build a strong brand
image in end of the financial year.
Missguided STP strategies:
The STP marketing models help to analyse product offering, most valuable type of
customers and meet its benefits (Sukma and Lubis, 2019).
 Segmentation: company helps to target the specific customers, it's normally consisted
the existing and potential customers. It helps to allow target satisfaction to the right
people in the right way and then targeting market more effectively. Missguided follows
the lifestyle segment to attract the more customers with the help of customized clothing
business plan. The company highly focused on the two segments which are:
Gender related segment: clothing retailer use gender related segments. Missguided will be
included the casual as well as business attire for female in fashion market segment.
Age related segment: missguided segment for 16-35 year old women but it will also begin
segment for teenage girls with trendy fashion.
 Targeting: This is the process which followed by the market segmentation. It helps to
analyse company segment to target by identifying the customers group that will offer the

large return and will be more profitable. Target the Customers who are fashion conscious
and build a brand for themselves.
Customer research: customer research for the clothing store to start a successful fashion brand
and it will save the time, money, and helps to retain customers and rapid grow.
Age related target: missguided will target the 16-35 year old females and teenage girls for the
complete customizable.
 Positioning: Brand positioning provide awareness into brand performance through
communication, especially with digital advertising, information can be conveyed about
the customer have of brand. Missguided has highlighted in more stores service and
convenience, as a budget fashion retailer.
Low price: Company might want to maintain current positioning of low price, affordable,
quality, and also good value for the money.
PESTLE analysis:
This is the tool which is used by the companies to evaluate the factors which may affect the
working of the business when it is expanded. The Missguided company using this will help them
to know the factors of the host country and by analysing them, the risk of affecting the business
can be eliminated.
Political factors- The modern politics of the Europe country is dominated by the European
Union as this is highly responsible for the trade policy, and they have the power of negotiating
the trade agreements. Increase in the political risk leads to the impacts on the businesses which
are running internationally. Missguided company will have the impacts of these factors has
caused the political unstable which has the major impacts on the businesses of the country.
Economic Factors- Increase in the spending by the businesses will help them to expand the
businesses and the unemployment rate in the economy will be improved. The Missguided
company may be affected by the demand and supply in the fashion industry as the consumer
trends is changing much rapidly so this becomes very difficult for the company to survive in the
global market.
Social Factors- These are the factors when considered by the companies are much helpful as this
will help them in better planning the marketing analytics as well as the strategy. Misguided
company has to consider the culture of the country as this will have the impacts on the business
because every country has its own culture.

Technological Factors- Technology used in the Europe is much advanced which makes them
come in the top countries in adopting the advance technology. The Missguided company has to
adopt these technological factors because if they will not adopt then they may lag behind in the
competitive market.
Legal Factors- The legal system of the EU may affect the working of the business in the
country. The Missguided company has to ensure of following all the rules and regulations for the
development of the sustainable environment and many more so this affects the company if they
will not follow these than they have to suffer much. The company has to follow these to avoid
any penalties and the legal risk in the company.
Environmental Factors- The company has to contribute and promote the sustainable
development by following the policies and the acts for saving the environment in the Europe.
Missguided company is the Fashion industry company which produces many gases which has
harm on the lives of the local people so the company has to ensure about all these to successfully
survive in the Europe country.
Marketing Mix- The marketing mix can be defined as the set of the actions which the company
uses to promote the brand as well as its product in the market. The 4 P's of the marketing mix
are-
Product- The Missguided company will now offer the sustainable product for the customers
which means using the resources which will not harm the environment and the health of the
customers. This will help the company to increase the revenue by introducing the new product in
the market.
Price- The Missguided company will be setting the fair prices for its new product which will
help them in attracting the large number of the customers towards the company.
Place- The Missguided company has to decide where to sell the products. They can go for the
target customers place so that it will be helpful for the company for the selling the products at the
appropriate place and this will lead to convenience for the people to effectively visit the store for
the shopping.
Promotion- This includes making the product reach to the customers by using the promotional
techniques. The Missguided will use the promotional techniques which will help them to reach
their new product to the customers.
Budget Plan-

The budget planning in the business plan will help them to analyse the spending of the business
including the expense and the income of the country. This will hep the Missguided company to
act accordingly as well as it will help in setting up the financial goals of the company by using
the budget of company effectively.
Assets $ Liabilities $
Machinery $ 10000 Bank loans $ 5000
Cash in Hand $ 30000
TOTAL $ 40000 TOTAL $ 5000
Sources of finance:
Company always required the source of capital because flow of money is the integral part of
running a business. There are various ways source of finance which are broadly categorized into
personal loans, bank loan, venture capital firms, own capital and savings (Ekpenyong and
Nyong, 1992). With the particular context of Missguided, it will take a loan from the bank and
also use their own capital.
Various ways a small business owner can exit the business and the implications of each option-
Merge or get acquired by other business
This method allows the small business owner with complete flexibility in the matter of the
involvement and the free will to walk away and it is also the best way as it helps in negotiating
the cost of selling while on the other hand the selling to the audience would increase the value of
the company in relation to the industry.
Implications
 A clean break from the businesses
 Negotiation in the field of price, terms and other details of the acquisition it is time consuming.
Management or employee buyout
Though it is complicated to plan for the future for these ways but it is possible when the business
owner is willing to exit the business, employees who work for the business may want to purchase
the company from the owner.
Implications

 The business can be handed over to someone else who has the related experience in the
company
 The legacy of the business will be intact The changes related to the management will become difficult to execute and also can
have a negative influence on the prevailing clients.
Selling the stake to the partner or investor
It is possible to sell the stake of the business to the investor or the partner of the business if the
small business owner is not the only owner of the business.
Implications
 The business strategy will be intact
 One can exit the business fully It becomes difficult to be fully involved in the businesses
Taking the business public with an IPO
If it is possible for the small business owner and the situations are correct then the IPO can prove
out to be very useful. Although this method is not suitable for evry business owner but the
conditions of the business are needed to be correct.
Implications
 This method can prove out to earn a more amount of the profit among all the other
methods
 This strategy also need particular condition and the necessary effort, time and the money.
 The success of the IPO is very difficult and very rare mailny for the small and the
medium size businesses.

CONCLUSION
From the above report, it can be concluded that the company must use the growth matrix
strategies for the better understanding of the factors which should be considered while growing
the business. This report includes the growth strategies such as the Ansoff growth Matrix, Boston
Consultancy Group Matrix and many more. The part of this report includes the business plan for
the expansion of the business in different country. This includes the company description, vision
and mission of the company, market analysis and many more.

REFERENCES
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