Growth Opportunities, Ansoff Matrix, Funding Sources, and Exit Strategy for NISA

This report discusses growth opportunities, Ansoff Matrix, funding sources, and exit strategy for NISA, a small company that offers groceries products in the retail industry. It includes a SWOT analysis, PESTLE analysis, competitor evaluation, and marketing mix. The report also highlights the benefits and drawbacks of each option.

Unit 42 assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explaining the growth opportunities to NISA along with its pros and cons...............................1
Providing Ansoff matrix with its benefits and drawbacks..........................................................2
Explaining funding sources along with pros & cons..................................................................3
Describing existing strategy by involving benefits and drawbacks of each option ...................4
Explaining business plan.............................................................................................................5
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Growth is related with obtaining all the crucial factors that can positively impact
organization in both short and longer term. In the current time, it is important for the
organization to pay attention on developing such significant strategy that can help in attaining
growth & development. The current study is based on NISA which is one of the small company
that is related with offering groceries products in retail industry. The current report will pay
attention on identifying growth opportunities, Ansoff Matrix, sources of funding and exit
strategy with pros and cons. The business plan will be involved to give significant information to
get growth in sector.
MAIN BODY
Explaining the growth opportunities to NISA along with its pros and cons
There are different kinds of the opportunities which can be obtained by specified firm
that can be obtained by specified organization. This can be properly identified by paying
attention on its prevailing performance so that ability to grab opportunities' estimation may be
done. The one of the significant opportunity that are possessed by firm can be analyzed via
conducting SWOT analysis (What Is a SWOT Analysis? 2022).
Strengths
There are distinct level of strengths which are
possessed by enterprise that includes skilled
labor force, effective marketing approach and
strong decision making.
Weaknesses
There are few lacking areas which affects the
growth & development of firm that comprises
having inappropriate financial management
and technology compliance.
Opportunities
The significant opportunity which can be
received by particular firm in retail sector is
diversification of target audience, cover new
geographical area, finding efficiency in cover
greater market share by having technology
options, effective partnership and merger with
Threats
Greater level of competition and difficult to
compliance industrial rules and regulation can
affect growth of firm.
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successful form.
On the basis of tis it can be interrupted that NISA as being operator as SME organization
can achieve greater level of opportunity to gain competitiveness. The one of the significant
growth opportunity is to cover the distinct market range via offering diverse type of product can
help to get higher level of profitability & suitability in retailing industry. In order to become
successful in the prevailing working environment it is important for the firm to get significant
implementation of technological devices in turn higher level of accuracy and efficiency can be
maintained (Lotfi and et.al., 2022). This can permit the firm to achieve greater growth via
ensuring optimum utilization of resources, decreased errors, etc. can help in achieving proper
position. Customer diversification as well be conducted by the firm as it can effectively get the
attention of new targeted audience which can contribute in increasing market share and
profitability.
The specified organization is performing effectively which requires firm to pay attention
on developing relevant strategy of having partnership and merger with higher successful firm
can allow getting opportunity of using deeply advanced technology, optimum availability of
resources, etc. these all can permit the enterprise to achieve growth & development in industry
with building good network in market. This can also aid in attaining position in market via
having good level of strategy with ensuring minimum availability of risk. On the basis of this, it
can be specified that having customer diversification, technology adoption goth providing
strategy, partnering with strong firm, etc. are the growth opportunities/ these all can contribute to
achieve organizational goals such as higher profitability, suitability, brand image and significant
leading position in sector.
Providing Ansoff matrix with its benefits and drawbacks
It is one if the significant matrix that is helpful in gaining the different types of strategies
which can allow getting growth in the sector. The four distinct strategies comprise market
penetration, product & market development and diversification. This matrix assist in conducting
strategies for new or exiting market and products.
Product development indicates that focusing on having ability to launch new goods to
the exiting market. There are various benefits which can be obtained by enterprise that
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comprises creation of culture of innovation, drives higher value proposition, building
professional network, etc. on the other side, drawbacks that are faced by having product
development includes unrealistic expectations, threat of failure, etc. which can hamper the
growth of firm.
Market penetration is giving emphasis on having decreasing the pricing so that inclining of
sales can become possible. This can be properly exerted by having decrease prices, higher level
of promotion and distribution, etc. can allow to get the objective of greater customers. With
help of this growth offering strategy firm can obtain the benefits like inclined customer interest,
reduced competition, stimulating market growth. On the other side, the drawback which can be
faced by specified firm involves poor customer experience, low organizational profitability, m
greater level of market competition, etc.
Market development refers to adopting such strategy by the business to offer existing
product in the new geographical area (Chit, 2019). It is helpful for the organization when there is
potential consumer in market, proprietary technology availability, and desirable consumer
behavior in the targeted geographical area. It can serve pros like expanding base of customers,
inclined revenue, business growth chances and gaining decisive edge over rivals. This
significant approach can lead firm to experience such negative aspects such as larger capital
requirements, risk of failure, time-consuming procedure.
Diversification is widely taken into consideration which offers higher level of risk to
adopter as requires developing new product for the new market. This requires higher level of
efforts which needs good level of capital, expertise, higher level of attention, etc. that affects
adversely. In addition to this, the set of befits which can be received by the enterprise via having
such technique comprises maximize use of resources, higher competitiveness, grabbing greater
market share through having significant customer attention, etc. which is found to be suitable for
the mentioned firm.
Explaining funding sources along with pros & cons
In order to become successful as SME it is highly important for the organization to give
emphasis on proper evaluation of the available options for sourcing finance. The course of
action which is adopted for souring require to be evaluated effectively via paying attention on its
merits and demerits so that successful action can be implemented to achieve higher profitability
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and sustainability. The options are as follows which can provide assistance to meet financial
requirements.
Debenture is one of the significant option that is basically issued by organisation of
ensuring that significant need of find can be borrowed with help of this method of sourcing of
finance the organization can achieve certain positive factors that comprises tax shield, financial
leverage, low issue cost, fixed instalments and no delusion of control. On the other side, it can
be mentioned that firm can face the drawbacks such as rigid obligation, enlarge the leverage
ratio, low inflationary control, etc.
Angel investors are those people who are financial strong and having objective of
investing in business idea (Sources of Finance, 2022). This option of financing is widely taken
into consideration as it serves various benefits like low level of risk, availability of portfolio
expertise and longer duration support. In against to this, the organization might face some
complications which are referred as demerits of angel investors such as possibilities of mal-
practices, less structural support, etc.
Venture capital helps the business to carry out operational practices by providing
funds. This technique has few advantages which ca make it suitable for the organization that
includes large amount of capital, managing risk, increased publicity, collaboration, assistance in
building significant level of team to achieve objectives. There are few disadvantages that
includes difficulties to obtain fund, formal structure of reporting, etc.
Bank loan is related with obtaining the funds for specified duration with deed of fixed
payments as interest. This is usually taken into process that involves low interest rate, no
interference, flexibility, etc. the drawback involves require profitability, complicated,
requirement of collateral, etc.
Describing existing strategy by involving benefits and drawbacks of each option
Liquidation strategy of exit is related with the final closure of business by selling out its
assets or winding up its operational practices (Hurmelinna,2018). This method of exiting
provides the advantages such as decline involvement of expenditure, unavailability of legal
complications, etc. In addition to this, demerits that firm can experience includes threat of
spoilage of competitive edge to grab potential opportunities, ineffective goodwill of firm, etc.
can create complications.
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IPO is one of the highly used method for exiting strategy that is concerned with selling
shares of firm to investors for gaining funds. The mentioned approach contributes in achieving
significant extent of benefits that comprises fundraising, reduced expenditure of winding up,
stock as means of payments, etc. This method ca offers disadvantages such as additional
requirement to adhere, pressure to overcome obligations, etc. that hamper objective of firm,
Acquisition is the process in which one firm take over the other organization that is
considered to be highly utilized technique by firm for exiting industry (Pauley, 2019). With help
of this approach firm can obtain the benefits like high valuation of company, personal
relationship, restructuring, attracting buyers, etc. and whereas limiting area comprises loss of
identity, inability to achieve synergy high risk, integration concern.
Merger is used as existing approach by the organizations that includes mixture of two
firms. This tends to provide the benefits like mitigation level of expenditure involved in exiting
market, low level of struggling in meeting objective. This includes certain disadvantage that
job cuts, consolidation of culture, etc. which can negatively affect the brand image of the
organization. On the basis of this, it can be interpreted that these are the strategy for exiting
market so specified firm should go with liquidation option to get easy way to meet objective.
Explaining business plan
Executive summary
Business plan provides assistance to get the accurate information regarding the crucial
steps and strategies that are required to be followed by organization in respect to gain
significant success. The current report is based on NISA which operates in retail sector. The
report has highlighted information regarding market analysis, strategy implementation
management action, financial plan, etc. to get deeper insights.
Company overview
NISA is one of the successful firm operating in the SME sector that offers groceries in
the market. The company will pay attention on selling organic cosmetic products to get the
higher market share by adopting the prevailing trend. This will focus on offering products
specially for skin and hair care such as mask, pack, cream, etc. in turn accomplishing the
objective of solving problems arise due to utilization of chemical possessing components.
Product description
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There are different kinds of the characteristics that are possessed in the offered products
such as standard quality, having optimum utilization capacity via eliminating chemical based
components. All the products such as cream, mask, etc are highly formulated as per the
customization that can contribute in meeting organizational objectives.
Market analysis
SWOT evaluation
Strengths
 Availability of high skilled workforce,
competitive marketing strategy and
Strategic decision-making (Thabit and
Raewf, 2018).
Weaknesses
 Inappropriate technology and
marketing compliance.
Opportunities
 Partnering with companies, opening in
new geographical areas and having
relevant emergence on digital platform.
Threats
 Lacking in complying with the rules
& regulation and higher level of
competition
PESTLE analysis
Political factors
The crucial political factor that can influence the firm involve the political instability,
prevailing tax rate and ability to offer any kind of the product can negatively affect firm.
Economic factors
Income generated, GDP, disposal income, interest rate, etc. are the elements that can
negatively affect firm's revenue generating capacity so that reliable action to deal with it should
be adopted.
Social factors
There are distinct factors that affect the firm's capacity of operating in the sector that
involves changing customer trend, cultural aspects and belief of the people highly impact the
decision-making process (Atherton, 2019).
Technological factors
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in order t become successful in the current competitive environment it is impropriate for
the organization to give emphasis on having greater level of adherence to technology up
gradation and operating on digital platform to get better profitability.
Legal factors
Government rules and regulations, prevailing industrial bench marking, etc. need to be
followed in respect to get the higher profitability and sustainability in sector via eliminating
irrelevant complications.
Environment factors
Access to raw materials, having reduced level of carbon foot print and gaining significant
ability to decline pollution.
Competitors Evaluation
NISA Cost Cutter
Pricing approach  Competitive pricing strategy  Cost cut approach
Market coverage  Domestic market area  International market
Unique Selling
Point
 Higher quality with ability to
solve customer problems
 Greater market share in
sector with attracting
customer via effective
pricing approach
Strategy and Implementation
STP
Segmentation
the company is conducting segmentation on the basis of behavioral and psycho graphic.
via ensuring that be people seeking higher effective organic ingredient based cosmetic can be
attracted.
Targeting
Targeting those customers who have objective of gaining ability to solve the prevailing
problems regarding skin and hair in turn higher profitability can be attained through focusing on
corrective audience.
Positioning
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It will position on the basis of having higher quality with problems solving approach
in lower cost (Silverman, 2021).
Marketing mix
Product
There are distinct types of the products which are offered such as skin and hair care that
involves shampoo, mask, cream, cleanser, etc. These all products have the features of
possessing higher natural ingredients without involvement of any preservatives, etc.
Price
In order to gain the greater level of the profitability & stability, company pay attention
on adopting such effective strategy that comprises competitive approach. It can aid in
overcoming prevailing competition so that better functioning can be received.
Place
For offering this produce company is paying attention on operating on domestic areas
an as well give emphasis on using social media, business based platform, etc.
Promotion
For spreading awareness about the products of the company, the methods of marketing
& advertising that will be taken into consideration includes all digital techniques such as direct,
email, etc approaches (What is 4 P of Marketing, 2022).
Management technique used by firm
For successful operating in sector it is important for the organization to develop clarity
about its processes, strategies, etc. for this purpose company is paying attention on having
effective operation team and having effective communication channel (Lim, 2021). There is
formal structure implemented in firm that ensure optimum utilization of resources.
Financial Plans
Particulars Amount £m Amount £m
Sales Revenue 800000
COGS
Cost of Sales 350000
450000
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Gross profitability 215000
Indirect expenses
Rent 25000
communication expense 10000
transportation costs 20000
selling and distribution expense 35000
administration expenses 40000
marketing and promotional expenses 30000
Supervisor fees 40000 200000
Net profitability 15000
Monitoring and controlling
For controlling and monitoring the non irrelevant factors it is important for the
organization to gain effective methods such as KPIs and bench marking so that deviations can be
avoided.
CONCLUSION
From the above report it can be concluded that growth & development is one of the
crucial objective pf enterprise which can be obtained by adopting relevant strategy. The current
study has involved growth opportunities, and Ansoff matrix along with its advantages and
drawbacks. Funding sources involved in present study includes bank loan, debentures, etc.
along with its pros and cons. Present report has involved exit strategy such as merger
acquisition, etc with its benefits and limitations. It has given emphasis on formulating business
plan so that deeper insights can be derived.
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REFERENCES
Books and Journals
Atherton, J., 2019. Social media strategy: A practical guide to social media marketing and
customer engagement. Kogan Page Publishers.
Chit, M. M., 2019. Financial information credibility, legal environment, and SMEs’ access to
finance. International Journal of the Economics of Business. 26(3). pp.329-354.
Hurmelinna, P., 2018. Exiting and entering relationships: A framework for re-encounters in
business networks. Industrial Marketing Management. 70. pp.113-127.
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of
Strategic Marketing. 29(5). pp.453-469.
Lotfi, S. and et.al., 2022. Event-led Regeneration to Reconnect the Structure of Historic Cities
(Case Study: Historical Connected Structure of Shiraz). Geography and Urban Space
Development.
Pauley, M. K., 2019. The experience of entrepreneurial exit: an exploratory study of average
micro and small business owners (Doctoral dissertation, University of St Andrews).
Silverman, R., 2021. New Study Shows 3M™ VAC® Therapy is More Cost Effective
Compared to Competitors. Advances in Skin & Wound Care. 34(12). pp.627-629.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case study.
International Journal of Social Sciences & Educational Studies. 4(4).
Online
Sources of Finance. 2022. [Online]. Available through:
<https://efinancemanagement.com/sources-of-finance#:~:text=Sources%20of
%20finance%20for%20business,and%20their%20source%20of%20generation.>
What is 4 P of Marketing. 2022. [Online]. Available through:
<https://byjus.com/commerce/marketing-mix/>
What Is a SWOT Analysis? 2022. [Online]. Available through: <
https://www.mindtools.com/pages/article/newTMC_05.htm#:~:text=SWOT%20stands
%20for%20Strengths%2C%20Weaknesses,successful%20strategy%20for%20the
%20future. >
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