Planning for Growth: Strategies for Missguided

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