Planning for Growth: Business Plan, Exit Strategies, and Conclusion

This presentation provides insights into the process of growth planning and strategies for business expansion. It covers topics such as business plans, exit strategies, and the importance of financial planning. The presentation is suitable for small businesses looking to grow and expand their operations. It includes information on Bonmarché, a UK-based budget fashion retailer, as a case study.

PLANNING FOR
GROWTH

TABLE OF CONTENT
 INTRODUCTION
 Business plan
 Exit strategies
 CONCLUSION
 REFERENCES

INTRODUCTION
 Growth planning or planning for growth is a process through which businesses plan,
co-ordinate strategies in order to track down their business activities and growth.
 This process also involves allocation and investment in sources in order to adapt
changes which are caused by external environment such as competitors or industrial
changes etc.
 This report is prepared for Bonmarché an SME, which was founded in 1982 operates
nationwide, and also considered as UK's one of the biggest budget fashion retailers

BUSINESS PLAN
Executive summary
 Business plan contain future strategies, activities and task that the company is going to
perform in order to increase sales and profit margin of the company thus helps in
achievement of organisational goals. It provides brief of company vision and vision and
the way they have to be achieved. Company is planning to launch a new product for this it
had conducted market analysis that help it in identifying various threats and opportunities
for company. It also helps in identifying and choosing best source of finance that helps in
increasing profit margin of company. Thus, business plan promotes growth and expansion
of business in new market by analysing various environmental factors.

Cont.
 Company Description: Bonmarche was founded by Singh Chima in 1982 and one of the largest retailer selling women wear
operating its business worldwide and by July 2002 it is acquired by Peacock Group.
 Vision: “To provide and maintain high standard customers services”.
 Mission: “Is to make mature women look fabulous and attractive by providing clothing in stylish design, affordable price and
size range from 10 to 24”.
 Product and service Description:It provides wide varieties of product such as casual and formal separate, nightwear and
accessories. Company is able to gain competitive advantages due to its specialization in plus size clothing and all design for
larger women.
 Market Analyses: It includes complete analysis of market such as its size, number of competitors, customers buying patterns
and condition of economic environment. Thus, company by conducting market analysis is able to gain competitive advantage.

Cont.
Swot Analysis:
 Strength: Company strength lies in highly establish brand image of the company as it
provide quality and unique product to its customers. Thus, effectively customers services
has lead to increase in sales and profit margin of the company.
 Weakness: Lack of capital due to improper functioning of financial department of
Bonmarche which lead to delay in expansion of business.
 Opportunities: Company can easily market its business to large number of customer's by
promoting its product online through use of social media.
 Threats: Political instability and increase in number of competitors in retail industry are
two threats company is facing in expansion of its business.

Cont.
Pestle Analysis:
 Political Factor: Due to Brexit, UK is suffering political instability which has impact adversely on the
functioning of business. Its sales and profitability had been decrease due to reduction in import and
export of country, purchasing power of consumer.
 Economical Factor: Due to recession in UK economy employment rate increase, low disposable income
of customers and high debt of government and people living in the society. Thus, company sales has
been decreased so it can expand its market share by entering into new market.
 Social Factor: It refers to the preference, needs and value of people living in the society it has positively
impact on Bonmarche as able to expand its market share by offering clothing for larger women or plus
size clothing.

Cont.
 Technological Factor: Continuous updation of technology, innovative product design and
offering quality services is able to gain competitive position in the market.
 Environmental Factor: Company has abided to environment protection law while
performing its operations in order to protect environment and health of people living in the
society.
 Legal Factor: Discriminative law, employment law and health and safety laws have been
considered by the company while providing its services to customers. Thus, company by
conducting its operation as per ethics is able to build and maintain strong brand image of
the company.

Cont.
Marketing strategies and sales strategies
 Bonmarche uses various marketing strategies in order to influence customers to purchase their
company products. Company is effectively able to expand its market share by differentiating its
product with other competitors. Price strategies also helps in expansion of business in new market as
the company provide product plus size clothing at reasonable. Strong Brand image of the company
plays an important role in promotion of its product in new market. It can also promote its offers and
various product online by use of social media in order to attract younger generation or large number
of customers. Advertisement through hoarding and promotional events are some method that can be
used by company in making aware to customers about the product. Thus, company by effectively
using all such marketing and sales strategies is able to expands its business in new market.

Cont.
Organisation and management
 Bonmarche is a large organisation that operates its business across various nation with 380 stores
and over 4000 employees working for achievement of organisational goals. It follows functional
structure that means it divides various department on the basis of function performed by each
department of organisation. Since its large company roles and responsibility of each individual
are clearly defined and helps in smooth operations of business. Effective management and
coordination of individual goals toward organisational goals helps in achievement of company
objectives. Manager of Bonmarche use various techniques to motivate employees to improve its
performance for achievement of company goals.

Cont.
Daily operations
 Day to day operations of Bonmarche company will be to manage human, physical
resources of the company. To provide continuous qualitative product or services to
customers, ensure availability of cash, raw material for smooth operations of business.
Market analysis in order to gain competition advantages in the market by adapting to
various changes of environment.

Cont.
Financial plans and projection:
Start-up expenses Amount (£)
Legal 2500
Promotional material 1000
Contractors 800
Insurance 300
Computers 100
Others 500
Total 5200

Cont.
Start-up assets Amount (£)
Cash required 28000
Start-up inventory 16000
Other current assets 5000
Long term assets 65500
Total assets 114500
Total requirements 950000
Start-up findings Amount (£)
Liabilities 14000
Accounts payable 1200
Other current 5000
Long term liabilities 60000
Total liabilities 80200
Investors 0
Total start-up findings 105000

Exit strategies for small-business
 It is essential for every small organization to prepare its exit strategies in advance in order to have some control
over business in the future. So, some exit strategies are as follows:
 Liquidation: It is one of the easiest and simple method for closing down operation of business by selling all its
asset and paying its liabilities. It is mostly chosen by small-business in order to pay all its debt due from creditor.
 Advantages: It involves less time and efforts and the individual can easily shut down its operations without any
control in the future.
 Disadvantages: The owner get lower return on its investment or low value for its assets.
 Legacy: Sometime the business owner want to have certain control over business in future so it chooses for
legacy. Thus, by transferring business to next generation or its family member give chance to owner to have
power to take decision in the functioning of business.

Cont.
 Selling business in open market: It is one of the best method for closing down of operation as the owner is able to get
maximum price of its assets and if business has goodwill than that amount is also payable.
 Advantages: It provides wide option to owners to choose among and set a specific prices for its assets and goodwill.
 Disadvantages: It is difficult to value business so it may result in lower selling price of business.
 Merge and Acquisition: Merging strategies is chosen by those owners who want to expand its business in new market by
merging with other company. So, that they can share each other asset, skill to gain competitive advantages and for
achievement of goals. Whereas, acquisition refers to when a company plan to acquire another company to operates its business
on large scale.
 Advantages: Able to expand market share of business by using resource of other company.
 Disadvantage: Merge and acquisition consume lot of time and efforts of company.

CONCLUSION
 From the above plan it can be concluded that by considering key components small
scale enterprise can grow and expand its business in new market.
 Company in order to meet its capital requirement has to identify various sources of
finance and had to choose best among them for effective operations of business.
 It can also be concluded that business plans helps company in gaining various
opportunities that are available in the market for growth and expansion of business.
 It can be concluded that Firm can use merging exit strategy in order to expand its sales
and profit margin in new market.

REFERENCES
 Agénor, P and et.al., 2018. The effects of prudential regulation, financial development
and financial openness on economic growth.
 Bahmane, L., 2017, September. A Turbulent Business Environment As A Criteria Of
Optimal Strategy To Enter International Markets. In CBU International Conference
Proceedings (Vol. 5. pp. 6-12).
 Cantele, S. and Zardini, A., 2018. Is sustainability a competitive advantage for small
businesses? An empirical analysis of possible mediators in the sustainability–financial
performance relationship. Journal of Cleaner Production. 182. pp.166-176.
 Curuksu, J. D., 2018. Principles of Strategy: Primer. In Data Driven (pp. 129-152).
Springer, Cham.