NISA Business Growth and Acquisition Strategies

The assignment focuses on evaluating NISA's business growth opportunities through aspects such as competitive advantage, franchise, merger & acquisition, and market development. It emphasizes the importance of digital technology in developing new markets and offering services to a large number of customers. The report also highlights the need for external funding sources like venture capital and bank loans to fulfill financial needs. Additionally, it discusses how competitor analysis can help develop a competent framework and achieve goals. Finally, the assignment explores exit strategies such as liquidation and selling business to others.

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
P1 Presenting key aspects that firm need to consider while making evaluation of growth
opportunities...........................................................................................................................1
P2 Analyzing growth opportunities by applying Ansoff Vector matrix................................2
P3 Identifying potential sources of funding that can be used by business organization for
meeting financial requirement................................................................................................4
P4 Designing a business plan for growth...............................................................................6
P5 Assessing succession or exit options in the context of small business unit......................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................13

INTRODUCTION
In the dynamic business arena, growth and success of the firm is highly dependent on
strategic planning. Moreover, without having competent plan business organization is not in
position to gain competitive edge over others. Now, use of digital technology is increasing
with the very high pace in every whether it is retail or other. For attracting customers now
business units lay high level of emphasis on placing advertisement on social networking sites.
Besides this, in the present times trend towards online shopping and retailing is also increased
significantly. This aspect shows that use of digital technology becomes important for the
attainment of organizational goals and objectives. For this project report, NISA retail store,
small sized organization, has been selected that offers grocery products or services to the
customers. In this, report will provide deeper insight about the manner and tools that can be
used for the evaluation of growth opportunities. Besides this, report will also shed light on the
sources through which NISA can generate funds and execute business plan.
P1 Presenting key aspects that firm need to consider while making evaluation of growth
opportunities
For getting success and gaining competitive position over others NISA is required to
capitalize growth opportunities. Use of digital technology is immense now a day’s which in
turn helps business in attaining goals. Considering the significance of digitalization, firm is
placing emphasis on and planning in relation to carry out online business as well. In this
regard, before grabbing opportunities manager of the business unit should evaluate the
following aspects such as:
 Financial viability: The main motive of firm behind investing money into potential
opportunities is to earn high returns. Thus, before making investment owner of NISA
should conduct financial evaluation to assess whether proposed investment option will
offer suitable returns or not. Thus, by keeping in mind the outcome of cash flow
analysis and outcome of investment appraisal such retail store should select proposal
(Gielnik, Zacher and Schmitt, 2017). Thus, NISA should take decision in relation to
starting online store after making assessment of monetary aspects.
 Legal aspects: For carry out activities smoothly, NISA needs to comply with the laws
and legislation. Brand image of the firm is negatively affected when it fails to comply
with the legal framework. Hence, for offering services through the online means firm

requires licence and obliged to fulfil other legal formalities (Ward, 2016). Thus, after
evaluating legal arrangement firm should select growth option.
 Competitive advantage or growth potential: Building and sustaining competitive
position over others is one of the main motives of firm. Thus, while making
evaluation and selection of opportunities NISA should evaluate the competitor’s
offerings as well as position (Revoltella and et.al., 2016). Moreover, in the
competitive business arena, firm can attain success only when it provides customers
with innovative products and service.
 Merger, acquisition and franchise arrangement: All such three elements are highly
associated with the growth of business organization. Merger, acquisition and franchise
enables firm to expand business operations and serve large number of customers
(Keller, 2017). In this regard, NISA needs o focus on doing cost-benefit analysis
which in turn presents the fair view of growth option. On the basis of such aspect,
firm should select the option when benefits offered by the concerned opportunities are
higher than the cost.
P2 Analyzing growth opportunities by applying Ansoff Vector matrix
Ansoff matrix: This tool of marketing panning is highly effectual that assists business
unit in determining both product and market growth strategy. Market penetration,
diversification, product and market development are the main four elements of Ansoff matrix
which helps company in developing strategic framework. Ansoff matrix offers suggestion to
the business organization whether it should focus on existing product and market or the new
one. In other words, it can be said that Ansoff matrix tool helps in devising strategies for the
future growth and success to a great extent.

(Source: Ansoff matrix, 2015)
Brief summary of such four elements are enumerated below:
Market penetration
Under this, firm makes focus on providing
customers with products and services at lower
prices.
Product development
In the present times, innovation is the key of
growth and success. By developing product and
making focus on innovation through the means of
R&D firm can attain competitive position. In
other words, it can be presented that, in this, firm
makes focus on introducing unique product in the
existing market.
Market development
It is suitable when business unit is planning to
explore both business operations and functions.
By making focus on such element NISA can
widen its geographical reach (Ansoff matrix,
2017).
Diversification
In the context of diversification, firm enters in the
new market with product that is completely
different from the existing one. It is considered as
highly risky because in this firm enters in the new
market with little or no experience.

Out of four available options, market development strategy has been selected by the
owner of NISA. In the digitalized world, manager of the concerned retail store has taken
decision in relation to offering existing products or services through the online mode. The
rationale behind, in UK, high ageing population resides and level of working women is also
increasing with the very high pace. Further, now trend pertaining to online shopping also
increased significantly over the years. In this, such market development opportunity enables
firm to target the wide group of people and attain high margin through offering convenience
to them. In accordance with the Ansoff matrix and considering the current position of NISA,
it is suggested to the owner to lay focus on offering or selling existing products into the new
market. Hence, by employing such strategy firm would become able to serve and focus on
both existing as well as new customers. There are several benefits which market development
strategy will offer to NISA are enumerated below:
 Facilitates geographical reach of the customers to a great extent.
 Maximize productivity and profitability
Online channel enables firm to target more people along with the existing market. Hence,
by offering retail products and services to the customers firm can enhance profitability aspect
to the significant level. Hence, it is one of the most effectual tools which in turn help in
developing market and exploring business operations.
Along with this, by making focus on the market penetration strategy NISA can meet
its goals and objectives. In such case, firm focuses on selling existing product in the current
market, at lower prices in comparison to the competitors. From evaluation, it has assessed
that after the period of recession customers become price conscious in nature. Now,
customer’s focuses on purchasing products from the retailer that offers product at discounted
price level. Thus, by following and undertaking such strategies firm can enhance the level of
both productivity and profitability.

P3 Identifying potential sources of funding that can be used by business organization for
meeting financial requirement
Finance is one of the essential elements that firms require while taking decision in
relation to expanding business operations and functions. NISA is planning to develop market
by using or taking resort of digital technology. In this regard, by undertaking below
mentioned sources of funding NISA can meet its financial requirement to a great extent such
as:
Venture capitalists: It may be served as a type of private equity or fund that is
provided by an investor to the small sized as well as emerging firms that have high growth
potential (Ballinger and et.al., 2016). Thus, by presenting business plan to venture capitalists
owner of NISA can generate funds and thereby would become able to execute expansion
plan. Benefits and drawbacks which are associated with such source enumerated below:
Advantages:
 Along with the financial assistance, Venture capitalists provide business unit with
suitable guidance regarding both financial and non-financial matters (Ng, Macbeth
and Yip, 2017). Hence, by using venture capitalists source NISA can take suitable
decision regarding financial and human resource management.
 Such source of finance aid in the faster growth and greater success of business
organization by providing guidance in relation to legal, tax as well as personal
matters.
Disadvantages: Owner of the firm lose control from business operations when stake of
venture capitalists is more than 50%. Hence, interference of venture capitalists in the decision
making aspect also closely influences business operations as well as functions (Forshey and
Levitas, 2016).
Bank loan: It is another prominent that business unit can undertake for raising fund
of finance. Bank loan is one of the main sources that offer income to the financial institutions.
Thus, NISA can generate funds by applying bank for loan on the basis of collateral security
and thereby become able to execute plan in the best possible way. At the time of making
selection of such financial source owner of NISA needs to keep in mind following advantages
and disadvantages:
Advantages:

 NISA can get tax benefits or advantages by using bank loan source of finance which
in turn helps it in enjoying high level of profit margin.
 Bank loan is recognized as highly flexible source of finance because it offers
convenience to the firm in the form of instalment payment (Chang, Fernández and
Gulan, 2017).
Disadvantages:
 Sometimes, banks do not grant or sanction whole amount of loan for which applied by
business entity has applied.
 Periodic and high interest payment imposes fixed obligation in front of monetary
institution (Rostamkalaei and Freel, 2016).
Considering all the above aspects it is recommended to NISA to undertake both
venture capital and bank loan source for fulfilling monetary needs. Both such sources are
highly effectual which in turn helps concerned retail store in developing optimal structure.
Moreover, for the development of suitable financial structure there is a requirement to include
both equity and debt. Thus, by generating fund from such sources NISA can create its online
presence and become able to attract more customers as well as maximize profitability.
P4 Designing a business plan for growth
Overview of business plan
Referring the current market situation of retail industry, NISA is planning to create its
online presence. By offering services through physical store firm has developed high level of
satisfaction among the customers. Now, by taking into account the online shopping trend and
providing convenience to the customer’s business entity of NISA is planning to establish
online store. Hence, by creating website business organization will provide customers with
wide range of products, out of which they can select the suitable one on the basis of their
requirements.
Goals / objectives
 To capture high market share in the category of small segment.
 To enhance sales and profit margin by 20%. To become the first choice for the customers when they take decision pertaining to
purchasing retail or grocery products.

SWOT analysis
Strengths
 High growth rate
 Existing sound distribution and sales
network
 Competent or talented workforce
 Provided with suitable monetary
assistance
Weaknesses
 Lack of R&D
 Absence of training and development
 Structural issues
Opportunities
 Company can grow and attain success
by expanding operations in the global
market.
 Further, by making focus on new
acquisitions firm can attain success.
 Growing economical aspects also
create opportunity in front of firm
(SWOT analysis of NISA, 2017).
Threats
 Governmental regulation pertaining
to food security and packaging
imposes threat in front of firm.
 Increasing competition level and
lower profit margin also challenges
survival.
 Technological problems and
regulations are also recognized as a
threat for NISA.
PESTLE analysis
Political factors
Tax policies which are setting down by
government authority has major impact on the
profit margin of concerned retail unit. Now, tax
rates are neither too higher nor too lower.
Economical factors
Now, economic condition of UK is improved
after the situation of global situation. Thus, such
positive indicator will place significant impact on
the growth of firm in upward direction.
Social factors
Income, education etc are the main social that
have influence on retail business. Now,
customer’s preferences shifted towards healthier
food. Thus, NISA should keep in mind such
factor while offering products or services to the
customers.
Technological factors
In the recent times, trend towards online
promotion and selling is increased significantly
with the rise in technological advancements.
Legal factors Environmental factors

UK government has introduced and amended
laws pertaining to consumer protection,
employment etc. Hence, it is the accountability of
firm to comply with legislative framework while
carry out business activities.
For building effective brand image and attracting
large number of customers retail unit is required
to perform activities in a sustainable way.
Marketing tactics or mix
 Product: Business unit will provide customers with wide range of retail products and
services via online medium.
 Price: Penetration pricing strategy will be followed by NISA retail store which in turn
helps it in influencing purchasing decision of more customers. Moreover, in the case
of e-shopping customers take decision regarding purchase after making evaluation of
the possible alternatives.
 Place: By developing attractive website concerned retail will offer services to both
existing as well as potential customers.
 Promotion: For developing awareness among the customers business entity of retail
store will undertake both modern and traditional modes of promotion. In accordance
with such aspect, owner of NISA will give advertisement on newspaper and
television. Along with this, advertisement will also be placed on social networking
sites such as Facebook, Twitter etc to promote the products or services offered.
 People: For delivering quick and quality services to the customers business entity
will appoint talented personnel.
 Process: Standardized process will be followed by NISA in relation to taking orders
and distributing products to the customers.
 Physical evidence: To enhance traffic business entity will create website in an
innovative manner.
Competitor’s analysis
Basis of difference NISA Unicorn Bacovia supermarket
Products or services It offers grocery and
other retail products or
services to the
customers.
Likewise NISA, it
offers similar kind of
services to the
customers.
Product offering of
Bacovia is same as
NISA and Unicorn.

Pricing strategy On the basis of market
situation, NISA
follows both
penetration and
competitive pricing
strategy.
Competitive pricing
strategy
It sets prices by
evaluating the prices
which are charged by
others.
Promotional means Uses both traditional
and modern
promotional means
It focuses on using
traditional modes for
the purpose of
promotion.
Unlike NISA, it does
not make focus on
using online or modern
promotional
techniques.
Place of offerings Presently, NISA is
offering services
through physical store.
Now, for exploring
operations firm is
planning to create
online presence.
It is offering services
through the physical
store established in
London.
Such supermarket
offers services to the
customer via physical
store. In this, there is a
lack of online presence.
Financial plan
In order to assess the viability of proposed business plan, profitability statement has
been prepared. Hence, income statement will clearly presents the profit margin which will be
generated by the firm. Hence, by deducting direct expenses from sales revenue GP has been
determined. Along with this, for the determination of net profit, indirect expenses are
subtracted from operating margin. For meting monetary needs and developing optimal
structure business entity will use both internal and external sources. Sources of funds which
can be undertaken by business entity enumerate below:
Internal source External source
Personal savings: £50000 Bank loan: 150000
Income statement of proposed business plan is as follows:
Particulars Year 1 Year 2

Sales revenue 200000 230000
COGS 70000 80500
Gross Profit 130000 149500
Less: Operating cost
Salaries of personnel 7000 7700
Promotional expenses 1500 1750
Miscellaneous expenses 1800 2000
Maintenance 2500 3250
Interest 3000 2400
Depreciation 1000 1000
Total operating cost 16800 18100
Operating income 113200 131400
Less: Tax @ 20% 22640 26280
Net profit 90560 105120
P5 Assessing succession or exit options in the context of small business unit
Succession planning is highly required for the long-term growth and survival of
business. By developing succession plan firm can ensure smooth functioning of operations
and functions. Plan and options related to succession provides high level of assistance in
performing activities smoothly when individuals move on to new opportunities and getting
retired. Thus, by making focus on the below mentioned success options NISA can attain
goals and objectives to a great extent such as:
 Training and development session: For developing and enhancing skills as well as
proficiency level of personnel NISA needs to make focus on organizing training &
development session. Moreover, training session persuade and improves abilities of
personnel in relation to performing business activities. For instance: In the context of
NISA, by organizing training session manager can develop ability of employees in
relation to dealing with the aspects of digital technologies and other changes. In this
way, through the means of training session firm can develop talented workforce and
would become able to deliver quality services to the customers (Harper and et.al.,
2017). Thus, such succession option will significantly contribute in the productivity
and profitability of firm. However, on the critical note, it can be said that as company
has to incur cost for organizing training when changes are introduced. Thus, financial
expense is considered as drawback of such option.

 Long term strategic planning and effective leadership: By developing effective plan
through estimating the future changes NISA can attain goals. Along with this, by
exercising participative leadership style concerned retail unit can evolve high level of
satisfaction among the employees. Moreover, employees feel high level of motivation
and satisfaction when business organization takes suggestions from them and execute
the same. Hence, effective leadership style and approach helps company in retaining
talented personnel for longer duration. Thus, by using success plan or option retail
unit can meet goals within the suitable time frame. However, it is to be critically
evaluated that under all the situations such leadership style is not suitable.
EXIT options: Business entity or owner of NISA can exist from business operations
through either liquidation or by selling business to other potential entrepreneur. Descriptions
of exit options which are available to small units are enumerated below:
 Liquidation: It is recognized as a voluntary process that can be used by business unit
for closing business operations. Hence, on the basis of such option, by selling assets
NISA can close operations. On liquidation, firm makes payment to creditors and
thereafter shareholders from the fund generated through selling assets. Such exit
option can be critically evaluated on the basis of following aspects.
Advantages Disadvantages
In the case of liquidation, NISA is not required to
competent transition plan. In addition to this,
under liquidation there is the absence of
negotiation aspect which in turn facilitates quick
dissolution or settlement.
Under liquidation, sometimes business units are
compelled to sell assets at discounted price level.
Moreover, in such scenario, firm’s objective is
quick selling of assets and winding up operations.
This in turn negatively affects profitability aspect
of firm as well as shareholders to a great extent.
 Acquisition or selling business to other firms: In the current times, acquisition
strategy is undertaken by big organizations for exploring business operations as well
as functions. Sometimes due to the absence of having sound management and
strategic framework firm is not in position to carry out operations in an effectual way.
On the other side, financially sound large firms are highly interested in acquiring
firms which are enjoying sound customer base (Dickinson, Wangerin and Wild,

2016). Thus, by taking into account all such aspects it can be presented that by selling
business to other entity in the form of acquisition NISA can exit from the venture.
Advantages Disadvantages
By employing acquisition strategy NISA can
balance interest of stakeholders to the significant
level. Moreover, in the case of acquisition,
sometimes business unit does change employee
base, suppliers etc. Along with this, acquiring
company is ready to pay extra when concerned
unit has high brand image and market share.
Thus, in such exit option, NISA has opportunity
to do negotiation and generate enough funds.
Acquisition is highly time intensive process as it
involves several aspects such as negotiation,
documentary procedure and formalities etc.
Along with this, differences which take place
between the culture of both the companies such
as acquiring and other create issues. Thus, all
such aspects closely influence the significance of
acquisition strategy and process.
CONCLUSION
By summing up this report, it has been articulated that NISA can assess growth
opportunities through evaluating the aspect of competitive advantage, franchise, merger &
acquisition etc. It can be summarized from the report that NISA can get the desired level of
outcome or success through making focus on the aspect of market development. Hence, by
taking support of digital technology concerned retail organization can develop new market
and would become able to offer services to the large number of customers. Besides this, it can
be inferred that owner of business organization should use external sources of funding such
as venture capital and bank loan for fulfilling financial needs. It can be seen in the report that
by doing competitor analysis business entity of NISA can develop competent framework and
achieve goals. Further, it has been concluded that through liquidation and selling business to
others entrepreneur can exits from or wind-up business operations.

REFERENCES
Books and Journals
Ballinger, T. P. and et.al., 2016. Convergence in venture capital investments: evidence from a
panel of 18 US regions. Journal of Regional Analysis & Policy. 46(2). p.132.
Chang, R., Fernández, A. and Gulan, A., 2017. Bond finance, bank credit, and aggregate
fluctuations in an open economy. Journal of Monetary Economics. 85. pp.90-109.
Dickinson, V., Wangerin, D. D. and Wild, J. J., 2016. Accounting Rules and Post-Acquisition
Profitability in Business Combinations. Accounting Horizons. 30(4). pp.427-447.
Forshey, P. and Levitas, E., 2016. The Impact of Venture Capital on Funding Amounts
Promised in Alliance Contracts. Academy of Strategic Management Journal. 15(1). p.12.
Gielnik, M. M., Zacher, H. and Schmitt, A., 2017. How small business managers’ age and
focus on opportunities affect business growth: a mediated moderation growth
model. Journal of Small Business Management. 55(3). pp.460-483.
Harper, E. and et.al., 2017. Succession Planning in State Health Agencies in the United
States: A Brief Report. Journal of public health management and practice: JPHMP.
Keller, K. L., 2017. Managing the growth tradeoff: Challenges and opportunities in luxury
branding. In Advances in Luxury Brand Management (pp. 179-198). Palgrave Macmillan,
Cham.
Ng, A. W., Macbeth, D. and Yip, L. S., 2017. Exploring performance drivers for technology-
based ventures from early stage to expansion: perspectives of venture capitalists. Venture
Capital. pp.1-26.
Revoltella, D. and et.al., 2016. Linking local business with global growth opportunities: the
role of infrastructure. Oxford Review of Economic Policy. 32(3). pp.410-430.
Rostamkalaei, A. and Freel, M., 2016. The cost of growth: small firms and the pricing of
bank loans. Small Business Economics. 46(2). pp.255-272.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.

Online
Ansoff matrix. 2015. [Online]. Available through:
<https://www.tutor2u.net/business/reference/ansoffs-matrix>.
Ansoff matrix. 2017. [Online]. Available through: <https://www.smartdraw.com/ansoff-
matrix/ >.
SWOT analysis of NISA. 2017. [Online]. Available through:
<https://www.swotanalysis24.com/swot-n/77246-swot-analysis-nisa.html>.