Planning for Growth: Evaluating Opportunities and Funding Sources for Nisa

Unit 42
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TABLE OF CONTENT
INTRODUCTON............................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysing the key considerations for evaluation of growth opportunities and justifying this
consideration within the context of Nisa.....................................................................................3
Assessing the options of growth by applying Ansoff matrix model with evaluating the risk of
each options.................................................................................................................................6
Assessing the potential sources of funding available to businesses discussing the benefits and
drawbacks of each.......................................................................................................................7
Business plan growth including financial information and strategic objectives for setting up a
business.......................................................................................................................................9
Exit and succession options for small business with benefits and drawbacks..........................14
CONCLUSION.............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTON
Planning for growth is the main activity of the business organization as it makes the
business more profitable. This makes the company to different from its competitors and by this
company can expand their business. Nisa Company situated in United Kingdom is a groceries
wholesaler dealing in variety of products. This report will outline the key considerations for
evaluating growth opportunities by justifying it with the company context. These opportunities
will be evaluated by the Ansoff’s growth matrix model. Further this report will outline the
potential sources of funding available to businesses with its benefits and drawbacks. This report
will also show the business plan for the growth including its financial information and strategic
objectives for setting up a business and exit and succession options for a small business with its
benefits and drawbacks.
MAIN BODY
Analysing the key considerations for evaluation of growth opportunities and justifying this
consideration within the context of Nisa
The are many factors which are considered important for evaluating growth
opportunities. The research will be providing deeper insight into such opportunities. Rapid
growth is considered as a difficult thing to achieve mainly for companies who have newly
established themselves in market. However by considering different models and theories that are
designed for successful business succession organizations may gain deeper knowledge about all
position of organization and implement specific ways in order to enhance its performance. Such
consideration may be taken by gaining the company’s macro level analysis by PESTEL model
and Porters 5 forces model.
Porters five forces model
The model was brought into existence by Michael E porter for the purpose of evaluating
and assessing the strengths of the organization and providing them better positioning for
business expansion (Donahue and Timmerman, 2021). The theory follows the concept that there
exist five forces that attempts to determine the attractiveness and competitive intensity of
market.
Strategic analysts use this model to gain insight about whether the new products or services will
be able to be potentially profitable for the businesses.
The five forces are as follows :
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Supplier power: Assessing that how comfortable it is for suppliers to drive the prices up.
It also depends upon number of suppliers of the particular business and also uniqueness in
products of suppliers and switching from one supplier to another on the basis of cost,
Buyer power: This assessment is very essential for any organization as the buyers are
the most essential component in deciding success or failure of any business therefore it is
essential to drive attention of customers and also understand the importance of each buyer for
business.
Competitive rivalry: This factor analyses the amount of competition that exists in
particular field of business holder A business entrepreneur need to think both on macro and
micro level about the competitors they have in the particular field and figure out the weak and
strong ones.
Threats of substitution: It is easy for customers to switch from one product to another at
rise in cost, when there are more substitutes of the product available in market. This reduces the
attractiveness of market and also the power of suppliers.
Threat of new entry’s: New entries are attracted by profitable market and hence, they
erode the profitability of old marketers until and unless they have a strong customer back.
Therefore, porters Five forces analysis help the organizations in understanding profitability in
specific industry. Talking about NISA porters 5 forces analysis provides growth opportunities to
it by developing a understanding about different forces that affects the business.
PESTLE analysis
It is a macro tool which is used in order to get clear picture about the environment of the
industry, and facilitates the organization with political, economic, social, technological, legal and
environmental factors that can lay impact towards the business of organizations.
Political  The country’s political environment changes roadblocks, bans or
protests and disrupts the supply chain and services.
 The rise in sales taxes may increase the prices of the product and
lead to low sales.
Economic  Business activities are appreciated by wise governments which may
lead to favourable business environment in the retail industry and
they encourage more flow of money in market rather than holding
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