Planning for Growth: Evaluation of Opportunities, Funding Sources, and Business Plan

This document discusses the key considerations for growth options, different sources of funds, and the design of a business plan for growth. It also explores the evaluation of growth opportunities using Ansoff's growth vector matrix. The potential sources of funding available to businesses are discussed, along with the importance of strategic objectives in the business plan. The subject of this document is planning for growth in a retail business, specifically Oak Cash and Carry Ltd, a grocery wholesaler organization headquartered in Banbury, UK.

Planning for growth

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Evaluation of growth opportunities and justification of them...............................................1
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..................3
TASK 2............................................................................................................................................4
P3. The potential source of funding available to business...........................................................4
TASK 3............................................................................................................................................5
P4. Design a business plan for growth that includes financial information and strategic
objectives.....................................................................................................................................5
TASK 4............................................................................................................................................7
P5. Assess exit and succession options for a small business.......................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
In present time, it is much hard for a company to provide satisfaction to needs and demands
of consumers and build an effective market position and earn competitive edge to make
development in the business. Growth and progress is an essential aspect and it is a strategic
business action that assists businessperson to formulate plan and track organic development in
their enterprise. It offers permission to business to allocate their limited assets regarding a
centred effectiveness to accept the modification that are generated in particular business industry
(Biddle and Taylor, 2018). This written document is supported to Oak Cash and Carry Ltd which
is a grocery wholesaler organisation. This company was incorporated in 2011 and is
headquartered in Banbury, UK. There are 58 workers that are employing by the firm and they
make contribution in running its business properly. This report will discuss about the key
consideration for growth options, different sources of funds and their implications to the
business. Moreover, a business plan and several exit and succession options for business will
also explain.
TASK 1
P1. Evaluation of growth opportunities and justification of them
Growth is an essential factor for a business which is beneficial for to attain the degree of
success in form of maximising profit margins and productivity. The main advantage of
implementing growth strategy in the business is suffer in the rivalry market till long time
duration and earning competitive benefits. In Oak Cash & Carry Ltd, there are different types of
challenge and competitive problems that affect the business of this retail venture. The
administrator of this company can utilised Quantum technology and determine the influence that
is generated by extrinsic components. For this, the company can use PESTEL analysis
framework and the description of it in context of respective firm is as under:
Political- This component consider government interventions, political stability or
instability, government rules, regulations, laws and legislations as well as policies. In Oak Cash
& Carry Ltd, different kind of change occurred in government rules due to Brexit which affect
the decision making of company (Park and LaFrombois, 2019). With the purpose of get over this
impact, the administration makes changes in their existing plan of action. So that they can
develop an effective workplace that can be beneficial for accomplishing more profit main
1

business. In UK, Oak Cash & Carry Ltd can get benefits from unfluctuating nature of UK
national authority which help the to make melioration in its whole presentation and magnify its
market share in effective form.
Economical- This aspect consist financial policy, inflation or deflation, interest rate and
others which influence the competency of company. In Oak Cash & Carry Ltd, due to recession
condition in the country, the venture was devising development and changes in its all functional
regions. So that they can get over the impact of recession which influence the profitability and
productivity of the firm (Leick and Lang, 2018). To reduce this negative impact of recession, the
administration can make modifications in its pricing strategies as this will assist in improving
customer base and productivity.
Social- This factor includes needs demands, taste & preferences and demographic factors,
market trends etc. In current time there are several kind of changes occurred in consumer’s needs
and desires that affect the sales and profitability of Oak Cash & Carry Ltd. So to deal with this
kind of complexity, the administration can form innovation and creation in its products and
consumer’s needs. This will help in fulfilling customer’s needs and maximising sales and profit
margins of organisation.
Technological- In current era, there are several kind of technological innovation take place.
There are several types of technologies such as advance technology, artificial intelligence and
many more that are crucial to make development in business. In respective venture, the
administration can implement advance technology in term of promoting goods and services by
using social media, web advertisement etc. It will help in increasing customer base and
profitability of firm.
Environmental- This component consist that elements which are associated to environment
and influence the business of venture. It includes environment act, pollution act, carbon emission
and footprints, waste and recycling activities etc. In UK, there are different stick actions are
taken by the national authority as per the environment act 1995, in order to protect atmosphere
(Deng, Fu and Sun, 2018). So by following all these laws, Oak Cash & Carry Ltd can get
attraction of number of people and improve its business activities.
Legal- It considers diverse types of laws and legislation that are framed by national
authority for effective running of organisations. It includes employment law, health and safety
act, consumer protection act and many more. In retail sector, there are different kind of
2

complexities are occurring cause of individual who want to avoid tax so they use illegal; transfer
of products and services. It creates different complexities and highly affects business of different
ventures (Sarin, 2019). By following all the laws and legislation, the administration of respective
firm can operate in successful manner and develop it profit and productivity.
PESTEL analysis is an essential tool that is highly utilised by organisations to determine the
influence of external factors over business activities and operations of the firm. To determine the
solution of the PESTEL analysis components, competitive benefits like capabilities, resource etc.
can be understand with the use of Porter generic strategy which is as:
Cost leadership- In this factor, the company is having an option of low cost process
according business sector. In this sources of cost benefits based on the structure of industry.
Retail is a large sector, so making concentration on the cost prevention is most crucial. For
example, Oak Cash & Carry Ltd is a retail company so it is essential that it make focus on its
cost strategy and quality of product.
Differentiation- In this, the firm is mainly think and plan about to offer something unique in
retail sector by bringing dimension for a purchaser to buy. In respective sector, uniqueness is get
when the business concern of the company acquires cost in operation of good’s quality. The
administration of the firm can make differentiation in products and services as per consumer’s
needs and demands. It will be effective for the organization to earn competitive benefits from
market place and improving profit margins and productivity of the company in amended form.
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Ansoff Matrix
It is a growth model that is formulated by Igor Ansoff so that organizations can use growth
strategies to make development in their business. The explanation of this concept in reference of
Oak Cash and Carry Ltd is defined as under:
Market penetration- It is first and foremost growth strategy of this concept. By adopting this
strategic option, the administration of respective venture can make improvement in its sales and
profits by making innovation in its pricing strategies and promotional tools (Jensen and Creinin,
2020). There is no risk as existing products and services are launching in to existing market. It
will also assist in increasing customer base.
Market development- In this strategy, the administration of the firm can offer its exiting
commodities and services in to new market where it is not operating. This strategy is risky as
3

goods are existing but market is new so it is not clear that people of new market will like them or
not. With the help of this strategic option the administration of Oak Cash & Carry Ltd can make
development in profits and productivity of firm.
Product development- By considering this growth strategy, the management of respective
firm can launch new products and services in to existing market with the purpose of fulfilling
their needs and demands (Gounaridis, Chorianopoulos and Koukoulas, 2018). This strategy is
more risky in comparison to market development because new products are launched in to
existing marketplace so it is not sure that people will like them or not. It will assist in
maximizing customer base and productivity of products and services.
Diversification- This strategic option is highly risky because the firm launch new products
and services in to new market and it is not clear that target audiences of new market will like
innovative commodities and goods will also able to fulfill their needs. BY using this strategy,
Oak Cash & Carry Ltd can make development in its business by making diversification in same
business sector or expanding business in to new industry.
This has been summarized form above content that mare development is an effective option
for respective venture to make growth in its business. By adopting this option the firm can
launch its business in Asian and African market; this will help in gaining competitive benefits.
TASK 2
P3. The potential source of funding available to business
There are several source of fund where the venture can raise finance for operating business
in successful manner. The description of some sources as under:
Bank loans- It is an essential source of fund from where the company can borrow monetary
value. This factor is regarded as a debt in which a lawful agreement takes place between bank
and customer. There are diverse types of loan such as grant short and medium term loans that are
refund in equal payment.
Advantages- Bank loans are more flexible and the interest of loans may be fixed for the term
so the borrower has information about the repayments end to end the life of the loan.
Disadvantages-In some cases, loans are secured regarding the assets of the business or
personal profession (Gallent and Tewdwr-Jones, 2018). The rate of interest for secured loans
may be lower but assets could be at risk in situation of when the debtor cannot pay.
4

Crowd funding- It is a form where a person a raise fund from their family, friends, consumers
and respective investors (Konvitz, 2020). It can be the use of midget amounts of resources from
number of respective to fund a new business corporation.
Advantages- It can be easy and instant from to borrow fund and there is not pay any kind of
charges or interests. As per crowd funding process, the individual of a business get fund from its
more loyal and trustworthy consumers.
Disadvantages- The main demerit of crowd funding is that when target amount is not
reached then potential capitalist get their fund back and the business goes away in empty handed.
As per mentioned this has been summarized that the management of Oak Cash & Carry Ltd
can raise fund from Crowd funding options because here they are not liable to pay interest buy
repay the borrowed fund in set time duration.
TASK 3
P4. Design a business plan for growth that includes financial information and strategic objectives
Business plan
It is a written description of the future of the business and lays out a written report from a
marketing, financial and operational viewpoint. The main motive of a business plan is to identify
effective new thoughts and scope. Oak Cash & Cary Ltd. is a well known company which is
going to expand its business with its current goods and services in South Africa. The business
plan in context of it with the aim of maximisation in profit and productivity is as under:
Overview of the firm- It is a small medium size grocery company that operate its
business in retail industry. It was established in 2011 and headquartered in Banbury, UK. There
58 employees who are providing their contribution in operating business of this venture
(Kinossian, 2018). The company offer a range of goods in bulk for retailers, caterers, offices and
local businesses.
Mission- The purpose of Oak Cash & Carry Ltd is to offer quality goods and services to
its consumers in given time frame.
Vision- The vision of the company is to run its business in lawful manner and create
value for consumers with the motive of gaining lifetime loyalty of them.
Objective-The SMART objective of Oak Cash & Carry Ltd is mentioned as below:
 To make increment in the sales of business by 8% within upcoming 9 months.
5

 To maximize the market share and revenue of the firm by 5% within next 7
months.
Source of investment- It refers to those areas where a company can borrow fund from
financial institutions to operate the business of firm, Bank loans, angel investors, crowd funding
and many more are some sources of investment from where the business like Oak Cash & Carry
Ltd can raise finance for operating its business (Krueckeberg, 2018). This will help the company
in making business expansion and making development in its sales and profitability margins.
Action plan- It is a report which consist all the steps that assist in accomplishing the
specific aims and objectives. The purpose of action plan is to specify all the assets that are
needed to achieve the aim, formulating a timeframe for specific task and project to be
accomplished and determine needed assets. Oak Cash & Carry Ltd will develop plan of action to
launch its business in to new market so that it can operate there in effective manner. At the time
of business expansion, the management will gather information about customers needs and
demands so that they can offer goods according to them. In term of promoting and marketing of
commodities they can use social media tools to publish their goods so that people aware with
their products and services. It will assist in attracting them to purchase goods and take
advantages o services.
Budget planning- It is a fiscal plan that consider convinced gross sales volumes and
profits, resources abstraction, reimbursement and disbursement, assets, liabilities and cash flows
(Wu, 2018). In context of Oak Cash & Carry Ltd, the management of the firm can develop a
budget document for its business operations so that it can have data about the finance that is used
to be allocates to deliver expenditures of the business development or business expansion.
PARTICULARS 6 months 6 months 6 months
Initial investment 12000 15000 18000
Borrowings(Bank loans, credits) 6000 7000 90000
Retaining earnings 7000 8000 9000
TOTAL 25000 30000 45000
MARKETING OUTLAY
Promotion activities 8000 10000 11000
Sales publicity 6000 10000 11000
Distribution and supply expenses 3000 10000 9000
6

TOTAL 42000 60000 76000
TASK 4
P5. Assess exit and succession options for a small business
There are several plan of action that are deliberated to penalise to perform precise several
objectives and actions that can be taken by administration of the firm for use a succession plan
(Angotti, 2018). In context of Oak Cash & Cary Ltd, the administration of this venture can
determine several kinds of exit and succession options that available among market and use
effective strategy for attaining organisational objectives of the firm effectively. The explanation
of the, as under:
Winding up- It can be adopt by the firm when the organisation become failure and is unable to
emanation its vulnerability. It can be related with the process of liquefaction a company under
which its major purpose is to transaction off stock, pay off creditors and hand out outstanding
resources to its shareholders. It is a lawful framework that is framed by articles of association
and corporate laws. It segregated in to two section compulsory and voluntary. A business
investor can novice a voluntary winding up with the passage of proclamation as it supported to
the case of solution and failure of business. Whereas compulsory winding up action require court
order when the Company is unable to refund the borrowed fund and several earnings legal action
in detection of the fund owned.
Merits- The main benefit of this option is that when the company has been liquefied and
marketing of its assets appropriated to creditors then leftover unguaranteed business possession
that is not impersonally secured will be written off.
Demerits- Liquidation express about the termination of the company and staff occupied by
the business will be successful out of work and be anxious to search or occupation elsewhere
(Thornley, 2018). Depending on their dimension of service within a particular business, they
may be capable to declaration statutory representativeness pay pursuing their dismissal.
Merger and Acquisition- It indicates to the activity of integrity and computing two
organisations under which the main motive of the firm to accomplish its aims. Acquisition is an
activity in which one company is taken over by other. Merger and acquisition can offer the
7

developing management a potentiality to improve market share without doing epochal heavy
lifting.
Merits- Due to merger or acquisition assist a company to maximise market share and size in
to new geographical destinations and marketplace as well as earning rivalry benefits (Biddle and
Taylor, 2018). It is also beneficial to make development in the profits, business execution and
making improvement in the value of shareholder.
Demerits- When a venture adopts this option then it make decrement in the respective
industry and maximising process of commodities that affects the purchasing power of
consumers. It also makes decrement in the job opportunities that instantly affect economic
growth of nation.
CONCLUSION
This has been summarised from preceding information that growth and development in an
effective aspect that is crucial for a business to sustain and survive in business industry till long
term. To accomplish growth, the administration can monitor impact of external environmental
factors over business operations and activities. With the help of Ansoff matrix they can
implement strategic growth option to make development. There are different sources of fund and
by adopting them the business can operate its activities in effective form. Business development
plan is also beneficial to offer information and guidance to the administration of company to
operate business appropriate manner. Different exit and succession plan of action are crucial to
make restorative pedagogy of action to suffer in rivalry atmosphere till long term.
8

REFERENCES
Books & Journals
Biddle, N. and Taylor, J., 2018. Indigenous population projections, 2006-31: Planning for
growth. Canberra, ACT: Centre for Aboriginal Economic Policy Research (CAEPR), The
Australian National University.
Park, Y. and LaFrombois, M.E.H., 2019. Planning for growth in depopulating cities: An analysis
of population projections and population change in depopulating and populating US
cities. Cities, 90, pp.237-248.
Leick, B. and Lang, T., 2018. Re-thinking non-core regions: planning strategies and practices
beyond growth.
Deng, Y., Fu, B. and Sun, C., 2018. Effects of urban planning in guiding urban growth: Evidence
from Shenzhen, China. Cities, 83, pp.118-128.
Sarin, M., 2019. Urban planning in the third world: The Chandigarh experience. Routledge.
Jensen, J.T. and Creinin, M.D., 2020. Family planning, population growth, and the
environment. Contraception, 101(3), pp.145-147.
Gounaridis, D., Chorianopoulos, I. and Koukoulas, S., 2018. Exploring prospective urban growth
trends under different economic outlooks and land-use planning scenarios: The case of
Athens. Applied Geography, 90, pp.134-144.
Gallent, N. and Tewdwr-Jones, M., 2018. Rural second homes in Europe: Examining housing
supply and planning control. Routledge.
Konvitz, J.W., 2020. Cities & the sea: port city planning in early modern Europe. JHU Press.
Kinossian, N., 2018. Planning strategies and practices in non-core regions: a critical
response. European Planning Studies, 26(2), pp.365-375.
Krueckeberg, D.A. ed., 2018. Introduction to planning history in the United States. Routledge.
Wu, F., 2018. Planning centrality, market instruments: Governing Chinese urban transformation
under state entrepreneurialism. Urban studies, 55(7), pp.1383-1399.
Angotti, T., 2018. Metropolis 2000: planning, poverty and politics. Routledge.
Thornley, A., 2018. Urban planning under Thatcherism: the challenge of the market (Vol. 21).
Routledge.
Online
9

Sources Of Funding. 2019. [Online]. Available Through:
<https://www.forbes.com/2010/02/12/funding-for-startups-entrepreneurs-finance-
zwilling.html#5e99e4e3160f>.
Oak Cash & Carry Ltd. 2020. [Online]. Available Through: <
https://www.bloomberg.com/profile/company/7674319Z:LN>.
10