Unicorn Business Growth Strategy and Planning

The assignment requires an in-depth examination of Unicorn's business growth opportunities and planning. The report should include a SWOT analysis, PESTLE analysis, and market mix to identify key factors affecting the company's growth. Additionally, it should explore sources of funding and plan for business expansion through online stores. Finally, the report should assess exit and succession options for Unicorn.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Presenting growth opportunities for Nisa .............................................................................3
P2. Presenting opportunities for growth using Ansoff's Growth Vector Matrix.........................4
P3. Different sources of funding available to a business with its pros and cons........................6
P4 Business plan for Nisa...........................................................................................................8
P5. Exit and succession options for small business with its drawback and benefits..................8
CONCLUSION................................................................................................................................9

INTRODUCTION
Both planning and growth are two important aspects to run a successful business. The
present report deals with Unicorn, which is a small retailer store in UK and wants to expand its
business through online store to attract more number of customers. The company provides the
best quality of products to its customers with low and affordable price. It focuses on the basic
key considerations, which is necessary for evaluating growth opportunities. The report also
evaluates opportunities by applying Ansoff's vector matrix. It assesses potential source of
funding, which is available to Unicorn with its advantages and disadvantages. The report also
presents a plan for growth that includes the financial information and strategic objectives for
scaling up business. The present report assesses exit or succession options for small business
with its benefits and drawbacks.
P1 Presenting growth opportunities for Unicorn
Unicorn is a small company of UK, which has 70 employees in its store. It offers number
of products and groceries at such a low level of price. The company's main objective is to serve
the best quality of services and products as compared to its rivals. Recently, the company is
looking forward to expand its business through online mode.
To expand the business, it is necessary to analyze the key factors that affect growth and
planning. Sales plan, market coordination, financial viability, pricing strategies, product and
service planning are the key points that affect its growth and these factors are discussed below:
 Competitive Advantage: it is the most important key consideration that affects the
environment of Unicorn (Bridge and Dodds, 2018). Identification of targeted audience in
nearby areas will help to determine whether the business will be successful in future or
not. Unicorn provides its entire product in the best quality at affordable price as
compared to its competitors. To increase its competition among companies, it is
necessary to deliver products or services to customers at low cost.
 Finance or Financial Viability: It is another most important factor that affects growth
opportunities of a company. It is quite difficult to determine what financial resources are
available for the business. Analyzes the revenue from last financial year and determine
whether the business will earn profit or loss if it will exceed in future. This key tool will
help to identify the future planning of business and if the business gives positive result

then it is necessary to add new products in it. That is why, Unicorn added new products
in its store.
 Marketing Coordination: A business will be successful in future if it has good market
coordination. Whenever the new product is introduced by a company, it is necessary to
let people know about them and it will be done through promotional activities and good
market communication (Hollander, 2018).
 Sales Plans and Channel: if the business is ready to expand then sales plan and channel
of distribution is another factor that affects the growth of business. The sales team of
Unicorn is quite efficient and always tries to complete needs and demands of their
customers. A good channel of distribution will help to reach wide number of people and
to run a business in positive direction, choose a right person who will monitoring the
sales team because this is the most important factor that affects the entire system of a
company.
 Legal Aspects: For proper planning and growth, it is necessary to follow all rules and
regulations. This legal aspect will somehow damage the image of a company, if not
followed properly (Olesen and Carter, 2018). Whenever owner hires new employees for
vacant positions, it is necessary to know the legal laws or rules. In the context of
Unicorn, it always follows all legal aspects and even submits taxes during billing. To run
a business in right direction, it is necessary to know all the legal rules, terms and
conditions related to business.
P2. Presenting opportunities for growth using Ansoff's Growth Vector Matrix
Market penetration: It is the most important and first quadrant of Ansoff's matrix.
Unicorn uses this vector matrix in order to sell more number of products to their existing
customers. This factor helps to increase the customer base and improve the process of
promotions. This strategy helps to reach wide number of people by using various loyalty
schemes and Unicorn already offer its product at low and reasonable prices to their customers as
compared to its rivals. Through market penetration, Unicorn develops new marketing strategy by
offering coupon to their VIP customers and provide discount facilities on some regular products
to increase its sale.
Product development: This method is used to increase the sales and maximizes profit.
This strategy is helpful in creating new products and then sells it to present customers. Unicorn

wants to introduce online store for their customers so that it will become more convenient for
their existing customers, as almost half of the population based on social sites and network so it
is necessary to open online store (Hollander, 2018). Unicorn always try to introduce new
product and implement those new ideas into store in order to attract their customers.
Market development: This strategy helps to attract new customers from existing
products. As Unicorn try to add online store in order to reach new customers. This strategy is
basically help to reach new people and expand the business at large level. The company targets
new demographic region so that more number of people can reach their stores. Unicorn is small
operating store and to increases its sale and profit, it is necessary to expand business in new
geographic regions where new people buy their product and increase its selling power.
Diversification: It is the highest risk strategy because it deals with selling new and
innovative products in new market. In the context of Unicorn, they want to introduce online store
where it sale all the new product and new people will interact. So it is necessary to maintain
good relationship with existing as well as new customers because they will help to increase the
profit margin (Bridge and Dodds, 2018). Many large scale companies try to introduce new
product in new market just to achieve diversification, though it is not easy to take risk for new
market but people try to use this strategy.
By above discuss Ansoff's vector matrix it is to be evaluated that Unicorn uses Market
Penetration strategy because it will helpful to achieve all the targets and aims. This strategy is
helpful to attract more number of customers through their existing products. This marketing
strategy is quite useful for the company because it will help to maintain customer base as well as
long term relationship with them, as Unicorn provide all product in such a low and affordable
price to its customers as compared to the rivals and now the company wants to introduce online
store for their existing as well as new customers and found that this strategy is best suitable for
company.
M1
Unicorn wants to introduce online store in order to reach wide number of people. To
increase or expand the business in further level of success it is necessary to have proper planning
but there are some factors which hinder the growth of business and these factors are legal aspect,
finance, Merger and acquisition, market coordination and competitive advantages. Among all
competitive advantages is the most affecting factor that influence the growth of business.

Unicorn provide all the products in such a low and affordable price as compared to its rivals that
is why there is a great competition (Olesen and Carter, 2018).
D1
For proper growth and planning, it is necessary to know all the factor and how to solve
those in order to expand the existing business. There are many factors that hinder the
performance of business such as legal aspect, channel of distribution, budget etc. Presently the
company earn more profit and on the demand of people it try to introduce new online store. For
proper growth and planning it is necessary to have proper budget which help to invest it in a
business.
P3. Different sources of funding available to a business with its pros and cons
As Unicorn expands its business and wants to introduce online store but it needed funds
to expand the business and it will come from various sources which are mention below:
Small business Administration loans: this is government administration which help to
give loans to small business only (Sources of Fund,2018). This loans are provide at higher rate of
interest and mostly people prefer this source of funding in order to expand their business.
Benefits Drawbacks
 Good treatment with bank loans will
helpful to increase the chance of
receiving bank loan again.
 Maintain good relationship with public.
 It will not take any amount of profit
form the borrower.
 Some token amount has to pay at initial
stage which will be carry forward in
next installment.
 Taking loan from bank will be helpful
because it will be for fixed years.
 High amount of interest have to pay on
the loans.
 Whether the business will be successful
or not, the payment should be clear on
fixed date only.
 Bank take some charge if borrower
want to repay at the end.
 Long term loan have some term and
condition which will not be fulfilled by
borrower that is why SBA give loans to
small enterprise only.
Own saving: It is the best source of funding, but Unicorn have only £ 20000 to invest
and expand its own business. Through this method, company should not pay any interest and
there is no need to return amount to anyone.

Benefits Drawbacks
 There is no need to pay any extra
amount on the amount because the
amount is related to own.
 Gives more control from other sources
of funding.
 Investing own amount in a business
will help to avoid extra spending during
expanding.
 Whole saving is invested to run a
business and there is no guarantee
whether the amount will be received in
terms of profit or not.
 Using own money will sometime
creates differences between members
and in personal life too.
 Using self financing, owner has to
create own contacts and channel of
distribution.
Investors: It is another good option for funding because usually investors raise fund for
those who are financially weak and needs funds to invest and expand their business but in return
they take some share of business (Tomczak, Reinecke and Kuss, 2018). They are the somehow
called the active partners who silently invest some amount and wait for the returns.
Benefits Drawbacks
 They have knowledge about the
business and can guide to the owners.
 They have big network of
communication which help to create
big channel.
 They help to take fast decision and
have good management skills.
 They did not want interest on the
invested money.
 Owner has to share a business because
they are the partners.
 It takes too much time to find suitable
investor for a business.
 They take complete control over a
business.
 If the business earn profit then it is
necessary to share profit with investors.
M2
To expand the business, it is necessary to know exact finance viability. Unicorn wants to
introduce new online store for their customers and it can be raise fund using various source of

funding such as using own saving, through investors, from bank loans etc. Among all the sources
of funds, Unicorn take the money from own investment and from bank loans. In these two
available options the company did not pay any amount to any one because whole profit will be
taken by the company only.
D 2
Unicorn earn maximum profit and now the company wants to introduce new online store
for the existing customers but before that it needs fund which will be available from various
ways. But company chooses to invest money from own saving and through bank loans. By
using own saving method, company did not pay any extra amount to any one and taking loans
from bank will be safer from any other zone (Hollander, 2018). That is why company chooses
this two sources for funding.
P4 Business plan for Unicorn
Overview: Presently, Unicorn is a retailer store and offer so many products to their
customer such as food, clothes etc. at such a cheap and affordable price but now it wants to
introduce online store in order to attract more number of customers. To maintain good
relationship with people, Unicorn always try to introduce new and innovative products in its
store so that it will help to increases its sales as well as profit.
Goals or objectives:
 To maintain strong, healthy and long term relation with the existing as well as new
customers.
 To enhance its customer base.
 To increases the selling power.
 To expand the business at national as well as international level. To create brand image in market.
SWOT Analysis

Strength Weaknesses
 Unicorn offer best quality of product at
cheap rates.
 Offer new and innovative products to
their customers.
 It has good customer base which help
to maximizes its profit.
 Unicorn offer low rate of products as
well as high price of product which
sometime creates confusion among
people.
 It sell brand as well as non brand
products.
 It has some policy related issue such as
licensing.
 It is not having online stores yet.
Opportunities Threats
 Purchase small store that will help to
increase share in market.
 Customer may shift their shopping
behavior if other company or store
offer same product at low price.
 Unicorn have so many competitors
which is the biggest threat.
 Decrease in the demand of consumer
will also affect the selling power of
company.
Illu
stration 1: SWOT Analysis

 Sudden change in shopping habit will
also become a major threat.
 Negative publicity in media related to
product will also destroy the brand
image in market.
PESTLE Analysis
Political Factors:
 Sudden changes in government policies will affect the profit of Unicorn.
 Political factors are the most affecting issue that hinder the operations of business.
 Due to political issue the company will not expand the business into Asian countries.
Economic Factors:
 Due to decrease in economy rate, the buying power of consumers also affected.
 If the government has made new rules and regulations for the supply of retailer product
then profit of Unicorn will also gets affected.
 As the economy of the country will directly impact on Unicorn (Olesen and Carter,
2018).
Social factors:
 Sudden social change and multiple lifestyle have created various change in the behavior
of customers which directly impact on the environment of Unicorn.
 Now people like brand products and want to enjoy shopping from malls.
Illustration 2: PESTLE Analysis

 There are various social factors such as income distribution, ages and sudden growth in
population will affect the business of Unicorn.
Technological Factors:
 it is the most affecting factor for Unicorn because recently the company wants to expand
its business through online store.
 It is uses all the new and latest technologies in its business in order to attract many
number of customers.
Legal factors:
 Government introduces many new rules and start checking the illegal tracking of supplied
products which create fear among many area and it leads to raise in prices.
 New policies and taxes are introduced in a market which has to be follow by the
company.
Environmental Factors:
 Unicorn is also affected by sustainability concern such as packaging, waste reduction etc. The company always try to introduce new product which help to make environment free
from problems and take many initiatives too.
Marketing Mix:
Illustration 3: Marketing Mix

Product: Unicorn provide best quality of home as well as food product for their customer
but now it want to introduce online store for the convenient of new customer which help to
increase more profit.
Place: to choose the right place is the most difficult task. Unicorn chooses to open online
store because it will help to attract more number of customers.
Price: Unicorn offer low price product as compared to its rivals price. It offer various
types of discount vouchers and coupons to their regular customers so that it will help to enhance
its customer base.
Promotion: the company chooses both tradition as well as modern method to maximizes
the total turnover. This method include various types of activity such as through magazines,
social sites, websites, advertising and brochures etc.
Competitive Analysis
Basis of difference Unicorn Chic by Choice Prestigious
Product/ Services Provide all type of
product including
home and food
products, groceries etc.
Provide only
fashionable clothes
The company provide
only clothes and
groceries item.
Promotional
Activities
Uses both traditional
as well as modern
method to increase the
sell
Only uses traditional
mode of promotional
activities
Earlier uses traditional
method but now uses
modern method.
Price Offer special discount
to its VIP and regular
customers and offer
low and affordable
rates as compared to
others.
Price is high as
compared to others
It offer product at such
a high range.

People Target all age group of
people which include
old, small and young.
It mainly target young
people in order to
increase its sales.
Target small as well as
young generation
people.
Financial Viability:
To determine the actual status of financial status of company it is necessary to identify
the exact or net income and this can be calculated through income statement chart. This
statement help to determine the net income over expenses or expenditure. This chart help to
know how much extra money is required to expand the business over the particular time period.
P5. Exit and succession options for small business with its drawback and benefits
If a owner is plan to expand it then succession planning is also necessary. If the business
is no longer run in profit zone then it is necessary to take exit from the business or hand over all
the business to other person. The successor may be family members, business partners or other.

There are many other options available to take exit form the business such as sell the business,
close the business or hire outside management team so that they can run a business in another
way (Succession planning for a business,2018). There are many options available for the
succession or exit from business which are mention below:
 transfer the ownership to the family members so that they will take the business into
another level of success. Or can choose to leave a business for the family members but
consider lawyer to avoid disrupting related to business ownership or management.
 Another option available is to buy or through sell agreement (de Roo, 2017). It is an
agreement between two persons of business which outlines what will happen if the owner
of a company will die. This agreement help to identify who is the owner and the
situations that force them to sell the share of business etc.
 third option available, close or sell the business otherwise hire outside management team
so that they will help to reach the business in further level of success.
Advantages Disadvantage
 It is the opportunities for growth and
planning to take a business in next
further level of success.
 A new person will be hire and it will
help them show their talent in the
market through business.
 Chances of spoiling the brand image
will be less through exit from business.
 If the successor is wrong person then it
will damage the future of business.
 Even if the business is not capable but
have enough information to develop an
effective succession plan.
 Not all the employees who are working
for Unicorn can be successor.
M4
if the business is not run in proper way and no profit is earn then it is necessary to shut
down a company. There are many ways which will be helpful to take exit from a company such
as sell the business, close the business or hire some talented management team in order to run a
business in better ways. Another method can be used is liquidation under which the whole
business is shut down and no one can again restart the business even not their family members. If
any such circumstances will come Unicorn will leave a company for their family members or sell
the business.

D4
For exit or succession option, Unicorn chooses to shut the company and try to distribute
all its share into their employees. There are various option available for the company to take exit
such as leave a company for their family members or sell the business in order to protect the
brand image from spoilage, hire some talented team who manages the work and hire new
employees in order to increase the profit margin. But the company chooses successor in order to
sell its ownership by completing all legal rules and regulation .
CONCLUSION
By summing up above report it is concluded that growth and planning are two necessary
aspect that influence the success of business. This two parameters help to increase its sale as
well as profit. The report deal with Unicorn which is a small company in UK and have more than
200 employees who work for the welfare of customers. The present report help to determine the
basic key points that affect the growth opportunities of Unicorn and also evaluate the
opportunities for growth by using Ansoff's growth vector matrix. The report focus various
sources of funding available for the expansion of business with its advantages and disadvantage.
The report also plan a business for growth as Unicorn wants to introduce online store for their
existing as well as new customers in order to increase its sale and business. The report also
assess exit and succession options for Unicorn with their benefits and drawbacks.

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