Planning for Growth: Business Plan and Exit Options for SME

This document provides a comprehensive guide on growth planning, business plan, and exit options for SME. It covers topics such as strategic planning, market analysis, competitive analysis, and marketing plan. The document also explores different exit strategies for small and medium-sized enterprises. It is a valuable resource for entrepreneurs and business owners looking to plan for growth and make informed decisions about their business.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
TASK 2..........................................................................................................................................................3
Business Plan..........................................................................................................................................3
TASK 3 .........................................................................................................................................................8
Exit options for SME ..............................................................................................................................8
Recommendations................................................................................................................................11
REFRENCES ................................................................................................................................................13

INTRODUCTION
Growth planning is the activity in which different strategy are generally made in the
organization in context of growing the business, so that consumer in the market are more
satisfied with the outcome of the business. Nisa is retailer firm originated from the UK. Nisa is
known for the quality of the product of different multinational company which is offered by the
Nisa in their roof. The current report explain the business plan for the new product which Nisa is
looking to bring i.e. organic energy drink in the market. Business plan includes the Current
position of the business, objective of business, competitive analysis and the marketing plan of the
company to promote the product of the company in the market. After that in the Task 3 of the
project, the report highlights the variety of the different type of the exit options which can be
used by the SME to exit from the market. Also, report explain the variety of the advantage and
disadvantage of variety of different type of Exit option which is available. Also, variety of the
different activity has been recommended to Nisa on basis of exit strategy.
TASK 1
(Covered in Brochure)
TASK 2
Business Plan
Executive Summary
The report has highlighted the vision and the objective of the business. After that report
highlighted the internal and external position of the business and also USP of the business. After
that report explain the target customer base of the company and in the end the report highlights
the Marketing plan of the company.
New Product
Nisa is looking to bring the new energy drink in the market which is made up of the
organic fruits and flower in the organization. Reason behind the same is that there is good
demand of organic product in the market (McKeever, 2016).
Objective of business

 To enhance the sales of the company by 20% by the end of 1 year.
 To increase the awarenesses of the company product by 30 percent In the coming one
year.
Vision
Main Vision of Nisa in the market is to provide the good quality of the product to all the
consumer also at the minimum rate.
Swot
Strength
Financial Position: Looking at the financial position of the business it can be said that
Nisa is having a good sort of the financial position in the market on the basis of good earning of
the profit for the business in the last decade or so.
Goodwill and customer trust: Nisa is able to build a good sort of the goodwill of the
company with the help of good quality of the product in the market (McKenzie and Sansone,
2019). This has eventually helped the company in building a good sort of customer trust in the
market.
Weakness
Profit margin: To be competitive in the market organization used to keep the profit
margin low, which eventually used to create the variety of the different type of the issue in the
organization,
Product Line: Product line of the company is very minimal as compare to that of a other
competitor of the business in the long run. As This used to impact the efficiency of the business.
Opportunity
Innovative product: There is good sort of opportunity which is present in front of the
company to develop a innovative product in the market to take a competitive advantage in the
long run of the business.

Technology advancement: It is another type of the opportunity in front of the company,
that organization can look to adopt the advance technology in the organization to improve the
efficiency of the business.
Threat
Competition: Nisa used to operate in the highly competitive advantage, this eventually
used to open up the threat for the business to looks the market share of the company in the
market in the coming year.
Legal Law: There are variety of the different type of the laws which used to regulate in
the organization, compiling all the laws in the activity used to create the variety of the issue for
the organization to be overcome.
PESTLE
Political Factor: There is good sort of the political stability in the UK. This used to help
the company in following the same law and regulation for longer period of time. At the same
time decision like Brexit in the nation has created the variety of the different type of the issue as
there will be restriction at the time of trading with neighbors countries (Ekanem, 2017).
Economic Factor: Looking at the economic condition of the UK it has been find out that
economic condition of UK is much better than the other company in the current Scenario. This
is good sign. At the same time there is rapidly increase in the price of the water, these has
eventually increase the cost of the company in the long run.
Social Factor: There is good sort of the change in the need and preference of variety of
the consumer in the market. These eventually used to create the situation in the organization
where they have to change there course of the work in the organization. At the same time it open
up the opportunity that if business is able to understand the need of the customer in the market
they can easily develop the product in the market which is more customer friendly in the nature.
Technology Factor: In the rapidly changing environment, it used to create the variety of
the issue for the organization to understand the best technology which can be used to carry out
the issue in understanding the best technology (Perera, 2017). There is good opportunity in front

of the company to adopt the best technology to manufacture more customer friendly product to
attract the eye of the customer in the market in the long run.
Legal factor: There are variety of the different type of the laws which generally used to
governs the variety of the different type of activity of the organization. Compiling all the activity
with the legal aspect used to create the variety of the different type of the compliance in the
organization.
Environmental Factor: There are variety of the different type of environmental factor
which generally used to governs and create good sort of the issue for the organization. Nisa
generally used to used recycled raw material in variety of the different packaging activity of the
company (Policy, 2018).
USP
There are variety of the Energy drink which is offered by different organization in the
organization. Their are many big competitor as well but in the current scenario there is no big
organization who used to sell organic energy drink in the market. This will be the Unique selling
proposition of the company, as company will be manufacturing the organic energy drink which
will be manufacture with the help of the flower and fruits.
There is good demand of the organic food in the organization reason behind the same is
that increasing impact of variety of the diseases, so for the same reason this product of the
company will able to attract the eye of the consumer toward the product of the company.
STP
Segmentation: In this step there will be variety of the segment will be made in context of
their health status and Age profile of the consumer in the market. This data will be collected with
the help of the third party organization who used to collect variety of the survey data for the
purpose of conducting the survey.

Targeting: It is the next step in the process in which a target group of the customer is
selected from variety of the different segment if the group. For the current product of the
company, organization will target the customer base of 12- 40 year age and specially the one
who are suffering from any sort of the diseases in the past. As they are the one who will be more
attracted toward the product of the company in the market (Gürel and Tat, 2017).
Positioning: Positioning is the next and the last step in the process, these step look at
promoting the product of the company to the consumer in a way that it attract them toward the
product. For this there will be mixture of the promotional tool which will be used by the
company. Social media platform and news paper advertisement are two platform as these are the
best platform through which eye of different consumer can be attracted.
Competitor Analysis
After looking at the industry it has been find out that there is many different type of the
competitor who generally used to dealt in the competitive industry of the UK. This will create
the variety of the issue for the business. As Organization like Monster and Red bull has able to
attract good number of the consumer toward the product of the company with the help of
goodwill of the company.
Marketing Mix
Product: Product is the offering of the company in front of the consumer. Nisa will make
sure that they will be producing the good quality of the product in the organization to attract the
eye of different consumer. Nisa is looking to bring the organic energy drink in the market to
attract the eye of different consumer in the market.
Price: For the current product of the company the organization will be looking to sell the
product of the company with the help of considering the screaming pricing method. It is the
pricing method in which the organization will be keeping the price of the product at the lower
price to attract the eye of consumer in the initial stage and get rid of variety of the competition
which is prevailing in the market.

Place: It will be launched and sold in the domestic market only in the initial stage, after
seeing the result of the product in the domestic market, decision will be taken in regards of
expanding it globally. It will be sold with the help of both the distribution channel i.e. Direct
distribution with the help of store of company. Indirect distribution with the help of different
retailer store in the nation.
Promotion: There are two different type of promotional platform which will be used by
the organization to promote the product of the company in the market. Promotional tool will be
social media promotion to attract the eye of the consumer of teen age in the nation. At the same
time newspaper promotion as larger number of the consumer can be touch with the help of same.
Packaging: Product of the company will be introduced in two different size, a mega pack
and a limited pack. A Mega pack will include 1 lt of energy drink content at the same time the
smaller paper will include 450 ml of energy drink content in the can (Išoraitė, 2016).
People: For the new product of the company in the market, the organization will be
hiring the new number of the employee in the organization as their will be variety of the different
activity which will be require to perform in the organization if new product will be introduced in
the organization.
Physical evidence: Product of the company will be promote with the help of the different
logo and the symbol in the organization. This will eventually help the different consumer in the
organization in distributing the product of our company with the help of the others companies
product in the organization. Logo and the symbol of the company is trademark by the company
in the past only so that any other company can not used the same (Stead and Hastings, 2018).
TASK 3
Exit options for SME
There are various options for exit options for SME companies from business which
enable them to close their books of accounts effectively with wide fundamental working scenario
if the owners in business is per the view finding that the operations are going under losses and
there is no benefit for succeeding it.

Liquidation: It can be understood as the formal way of closing business operations where
company owners wound up their operations and the proceeds are distributed to creditors and
shareholders where liquidators realize whatever assets are available shall be proceeded to share
among creditors for paying away all debts. Generally, if the company is undergoing liquidation
than the assets which are banks, financial institutions are ought to be paid first. Liquidation is
legal proceeding where companies are wound up among creditors and shareholders as company
is undergoing wide losses which further analyze that company is not able to pay off debts and
there is no worth in continuing the business into losses as fixed costs are Also not met. Generally
the liquidation value of the business is the net value of the company in context of variety of the
assets of the company and amount of the assets sold. All the intangible assets like goodwill are
generally excluded from the liquidation value of the business. Generally a liquidator is generally
appointed who used to carryout all the operation of liquidation and make sure that legality has
been maintained in the process of liquidation.
Merits : The benefits of liquidation are that company is able to legally close the books of
accounts and repayment of money debt is effectively done , which further bring on parameters of
strong fundamental business decisions (Foley, 2019). Also it help the business in clearing off all
the debt of the business in the market at the same time.
Demerits: Liquidation is lengthy procedure which takes time and high interference is also there
among company business position. Also, it used to overlook the value of the Intangible assets
which is not that good sign for the company in the long run.
Sell the Business in the Open Market:
This is understood as the exit strategy where business is sold within open market in the same
industry where company operators sell the assets among outside operators where the succession
of business is not found profitable for company owners. It is widely understood as an easy way
of exit strategy when the company wants to close operations at good price within open market
where the operators will be able to repay the debts which are at present pending within business.
The selling within market industry takes limited actions and management Is only accountable till
company operations are not sold to another, once the business is sold to another business there
will be no responsibility hold for future operations or to any consumer for services. Selling in
open market will enable to bring on new synergy of higher growth within consumer market as

new company which will undertake shall be more innovative in operations. Competitor are the
one who generally used to buy the business of as it help them in getting the competitive
advantage who are still present in the market and operating.
Merits: The company is sold the business into open market will be able to develop easy
succession as within same market industry same contacts company are present which further
adds onto specific building on strong functional channels (Lemley and McCreary, 2019).
Demerits: The company will not have any legal record for all functioning if the selling is done
with this method where it may create vast problems within future. Without any legal record of
selling it may be hard for future functional operational efficiency as it may develop wide havoc
among operations. Also, it used to get very difficult for the company to fix the correct price of
the company assets in the market. So that on the basis of the same the business can be sold to the
others in the market.
Management buyouts:
This is understood as one of the best and highly adopted exit strategy where employees of
company or the management itself buys out all shares, and remaining assets of company
combining resources to acquire part of company. Most of the time management teams take full
control and ownership using diverse expertise of all operations where company business is
presently active and drives it forward with wide strong fundamental development. It is one of the
easiest way for selling business successfully to employees and among business levels as SME
functions are already known to management among company levels as there is wide functional
strengths. Strong secrecy of all business plans and past debt are maintained within management
buy-outs as the business operators and employees are already trustworthy to company leaders
and they hold wide applications which are programmed under the synergy which are further
added for gaining on new levels of succession among business levels.
Merits: Within buyout the management employees are already known to the selling business
company which not only builds the trust among each other and high level of transparency but
also enhances the business future positioning value within industry. The employees are also able
to function with high coordination among each other, and also keep secrecy of company
operations intact for longer time (Sandberg, Sui and Baum, 2019). As employee are the one who

used to work in the organization from the starting stage itself in the organization, they used to
has good sort of knowledge of the different operation of the business, on the basis of the same
they can plan the variety of the different type of the activity which will help them in running the
business successfully in the future scenario.
Demerits: The employees may not feel all time interested and have the finance investment funds
to pool onto new resources for bringing on wide development among business levels where it
may be highly not functionally approachable to build for company to sell all the management
levels to employees (Wu and Deng, 2020). It sometime get it difficult to uncertain the amount of
the business share which has to be offered to the employee in the organization, so that interest
level of all the employee's can be maintained in the long run of the business.
Recommendations
 Nisa for exit strategy shall pertain onto using management buyouts as the best exit
strategy which will work as most effective way for closing the SME company if in future
the operations are not going in profitable way where the company employees as already
known to management decisions will find it easy to adopt new business strategies.
 Management buyouts as compared to liquidation and selling business into open market is
an effective exit strategy as the employees are already known to company functions
where active functional levels are already known to them which will develop wide
rational effectiveness among business standards.
 Nisa company being a SME operated by its member have wide number of employee’s
strength where there are wide selling options for company management with which it can
be analyzed that management buyouts will be profound way for gaining on new levels of
progression (Varadarajan, 2020).
 Employee buyout is one of the easiest way through which new determinants and higher
efficiency can be built with which new levels of advanced synergy can be explored and
rational greater extent new levels of progression will be built.
 Nisa company operations are more profoundly working among all levels as management
is skilled among all departments and innovatively working to pertain on higher synergy
of gaining advanced focus. The management buyout will enable ton distribute all assets

effectively among all employees and maintain strong secrecy of all past and future
business plans within industry.
CONCLUISON
Above present report explain that there is a good need of organic product in the organization for
the same reason Nisa is looking to bring the organic energy drink in the market. Organic energy
drink will be launched in the market of the UK and will be targeting the customer age group of
12- 45 years as they used to has good need of energy drink. Promotion of the new product of the
company will be done with the help of two type of promotional tool in the nation, the first
promotional tool will social media and another will be add. Also, the report in the Task 3
highlights the different type of the market exit option which is available in front of the
organization and the way they can adopt the same in the organization . Also, they concludes the
variety of the different type of advantages and disadvantages which is linked with the variety of
the different type of exit option which is available in front of the company in general. Also,
report recommended variety of the action which can be taken by Nisa.

REFRENCES
Books and Journal
Foley, L., 2019. INTERNATIONALISATION OF FINNISH SME TO UK MARKETS.
Lemley, M.A. and McCreary, A., 2019. Exit Strategy.
Sandberg, S., Sui, S. and Baum, M., 2019. Effects of prior market experiences and firm-specific
resources on developed economy SMEs' export exit from emerging markets:
Complementary or compensatory?. Journal of Business Research, 98, pp.489-502.
Varadarajan, R., 2020. Customer information resources advantage, marketing strategy and
business performance: A market resources based view. Industrial Marketing
Management.
Wu, B. and Deng, P., 2020. Internationalization of SMEs from emerging markets: An
institutional escape perspective. Journal of Business Research. 108. pp.337-350.
McKeever, M., 2016. How to write a business plan. Nolo.
McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from
a business plan competition in Nigeria. Journal of Development Economics. 141.
p.102369.
Ekanem, I., 2017. Writing a business plan: a practical guide. Taylor & Francis.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Policy, P., 2018. What is pestle analysis.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research. 10(51).
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6) pp.25-37.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.