Strategic Planning and Exit Strategy for Unicorn Retailers

The provided study is about a detailed business plan for the growth of Unicorn Retailers Stores. It includes various growth opportunities, Ansoff's growth matrix with justification, difference sources of funding available to start a new business, financial information, and development plan for scaling up a business. Additionally, it covers strategy planning for exit and succession for Unicorn's owner, including implication of each option.

Planning for growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Analysing key consideration while evaluating growth strategies for Unicorn retailers.....1
2. Evaluating the growth opportunities applying Ansoff's growth vector matrix..................2
3. Accessing potential source of funding available to business with their benefits and
drawbacks...............................................................................................................................4
4. Business plan for growth of Unicorn Retailers Stores with financial and strategic
objectives................................................................................................................................6
5. The exit or succession options for the business with its advantage and disadvantages.. .10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning of growth is a great tool for small or medium sized firm's owner to grow and
expand their business. Business expansion can be done either by expanding same product line or
by introducing new product or new business plan. Unicorn retail stores is UK based organisation
which is planning to launch an online websites of Unicorn shopping. Present report analysed the
consideration of growth opportunities. Further, the report will describe growth opportunities
applying Ansoff's growth vector matrix. Present study will depict different source of funding
available to Unicorn for financing new business. The report explained a business plan with its
financial information with demonstration of applying and achieving business objective
successfully. Further, detailed analysis of various exit and succession plan for Unicorn retailers
are discussed.
1. Analysing key consideration while evaluating growth strategies for Unicorn retailers.
For launching a new business plan Unicorn need to apply effective competitive strategy.
In recent era of technology, starting an online website for stores is an innovative idea. But there
are various factors which needs to be consider for growth opportunities of Unicorn retailers.
Competitive advantages: To create a competitive advantage three factors should be
analysed which can affect the growth opportunities. Benefits are the product or new plans that
company will offer to the customers. Unicorn retailers should know the customer’s need and the
advantage of using company's product. (Alsos, Isaksen and Ljunggren, 2011). To achieve this
company should have awareness about the recent trend and new technology that company should
implement these strategies in new business plan. that can give more profit to the customer and to
company also. Company should target the buyers who uses the online websites more to shop in
order to create demand. The company should identify its competitors in target market, there are
many websites for retails shop available on internet). To be successful, Unicorn retailers should
adapt a strategy that could offer more facilities to its customer than the competitor's company .
Porter's Generic Strategies: Generic strategies is used to determine the direction of the
company. Porter's generic strategy can be adopted in order to gain competitive advantage. The
generic strategies include cost leadership, differentiation and focus. In cost leadership, Unicorn
retailers can lower its cost in the same industry (Rowley, 2016). In cost leadership the company's
main motive is to lower their cost as possible with same level of quality. This strategy will help
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unicorn's websites to earn profit by offering same product at less price than competitors.
(Porter's Model of Generic Strategies for Competitive Advantage, 2018). Differentiation looks to
develop the product and make it more unique and attractive than competitors. Unicorn can bring
website with different features than other websites (Tansey, Spillane and Meng, 2014). Generic
strategy of focus emphasis on the choice of a narrow competitive scope within an industry. It has
two alternative a cost focus which a firm seeks a cost advantage, differentiation focus. It will
help the company to enhance the operational efficiency of new business plan.
Pestle analysis: In pestle analysis, Unicorn retailers should evaluate entire business on
which external factor can affect. All the external factor like political factor regarding governing
laws and regulation of launching new websites. Economical factor which includes purchasing
power of customer online, taxes and inflation rate which can affect the profit of Unicorn's new
business. Social factor is buying habits of customer, whether they like to buy online or direct
from stores (Weiss and et.al., 2018). Technological factor is important for websites, new
technologies which ease the purchasing process, proper shipping facilities and keeping
customer's security online. From the pestle analysis Unicorn company can learn where the
competitors are lacking and can get competitive advantage from there. It will help the company
to analyse the external factors which helps in making effect strategies to overcome them.
2. Evaluating the growth opportunities applying Ansoff's growth vector matrix.
The growth opportunities for Unicorn retailers applying Ansoff's matrix are as follows:
Existing Products New products
Existing market
Market Penetration
 It is a strategy of positioning
existing products in the known
market and needs a growth
strategy within that market.
 Unicorn retailers instead of
planning a new business plan
can make strategies for growth
with the same products which
Product development
 It is a growth strategy were
new product is being
introduced in the existing
market (Lewko, 2017).
 This strategy can be
adopted when company
knows that marketing
penetration is no longer
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can increase its selling and
profitability (Ansoff's Matrix ,
2018).
 Unicorn retailers can start a
promotional campaign, offering
discounts on product attract
more and more customers and
increase market shares
applicable.
 Unicorn retailers can
developing new products or
plans which will help it to
be competitive in existing
market.
 Unicorn retailers can adopt
the strategy or research and
development, innovation,
considering customer's
need before launching a
new product or plan.
New
Market
Market Development
 In this strategy company
developed the existing product
in completely new market.
 Unicorn can enter in
international market for
expansion with its current
retails stores.
 Unicorn can also expand its
business in the new market
where its product is not
currently competing.
 Expansion strategy such as
pricing policies, new production
dimensions etc. can be done to
attract more customers in new
market.
Diversification
 It is a growth strategy
where a business
introduced new products
and plans in completely
new market.
 Introducing a new product
in a market which company
has little or no experience
can be riskier for Unicorn
retailers.
 If applied effectively the
diversification strategy
could be high rewarding,
despite of the risk
associated with it.
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As Unicorn Retailers are launching new plan of starting online marketing of retailers
stores, the company should opt for Diversification strategy of growth (Kaspar, 2018). This
growth strategy achieved when company is launching new product or plan in completely new
market. This strategy works when product or business plan is developed according to the needs
of customer in new geographic area. This strategy helps company to expand its business function
in foreign market. Starting online website of Unicorn retailers in foreign market or in new market
will helps in development and growth of the company.
Benefits of Diversification growth strategy are:
 It will help companies to increased its sales and revenue by attracting more customers. Online websites are innovative ideas of expanding company in new market.
Drawbacks of Diversification growth strategy are:
 Starting new business require high investment that could bring companies revenue at
risk.
 Because of less or no experience of new market and customer. The diversification
strategy may fail if not executed properly.
3. Accessing potential source of funding available to business with their benefits and drawbacks.
Financial resources are a basic requirement for any organization to execute new business
plans or programme. Financial support is important for small business to run smoothly its
business function. There are many sources to generate funds for Unicorn retailers to start-
up a new business plan. Before generating funds from any of the sources given below,
Unicorn retailers should have considered the drawbacks associated with them. Different
sources of funding are as follows:
Bank loans: Bank loans are most common and easiest method of granting funds for small
and medium-sized firm, and the companies who required funds for start-up. Loans which are
taken to start a new business plan are called banks funding (Porter, 2011). Banks will inquire
about the business plan and will evaluate the income statements to check the past performance of
Unicorn retailers before granting loans. Banks usually wants assurance of repayment by taking
personal guarantee or secured mortgage on personal assets. These loans offer tax benefits and
there is no burden of repayment until an agreed period of time.
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Advantage and disadvantage of funding from bank loans:
Advantage Disadvantage
 Banks only want their interest amount
on time, there is flexibility by banks on
using the loans amount so the company
can invest it in any plans.
 Bank are usually the cheapest option in
terms of interest rates. Lower interest
rates will help in saving the profits of
Unicorn retailers.
 Banks do not take any profit from
company's revenue. Hence, Unicorn
retailers can retain all its profits.
 Bank's interest is also tax deductible
expenses, which helps in tax benefits.
 Bank loans required some form of
collateral or personal assets without
which loans cannot be approved easily.
 There is a burden of repayment on loan
borrower after a specific period of time.
Failing on which can cause of having
assets seized.
Government grants: Grants from UK government are not repayable and there are lot of
competition to get the grants. They are almost given for a specific purpose and projects like
development of new product or services.
Advantages and disadvantages of government grants are:
Advantages Disadvantages
 The most important advantage of
government grants is that there is no
burden of repayments.
 The government will not interfere in
the business activities and will monitor
where and how the funds are being
utilised..
 The business would generally be
matched the amount of the grants from
its own funds.
 The application process of granting
loans can be very time consuming.
 There is lot of competition for seeking
the grants of government.
5

Personal savings: While starting a new business plans, the first choice would be
personal savings, either from company's own cash or with collateral on company's assets (Ruan
and et.al., 2018). It is cost-effective way as Unicorn retailers need not to pay any interest or
burden of repayment.
Advantages and disadvantages of funding from personal savings:
Advantages Disadvantages
 Self-financing business will give
Unicorn retailers much more control
than other financial options.
 Unicorn retailers will have full
ownership of the business, which will
also help in retaining all the profits.
 Using personal savings will help in
eliminating excess and unnecessary
spending.
 It may put strain on family and personal
life of owners if business idea or plans
fails to make the expected profit.
 Funding business alone will eliminates
the opportunities of monitoring and
networking.
4. Business plan for growth of Unicorn Retailers Stores with financial and strategic objectives.
Business Plan for Unicorn Retailers
1. Business Concept:
Background: Unicorn retailers store is a medium sized UK based organisation which offers from
grocery items to foods and clothing in stores. Currently the company is dealing in physical retail
market. In the current technology era, online shopping is currently in trend. Unicorn has also
planned to launch a new business by introducing its retail website.
Visions and Mission:
Unicorn retailers stores mission is to become top leaders in e-commerce marketing.
Company works to enhance its customer base in online marketing by providing the best quality
products and value the customers expectation.
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Unicorn's websites vision is to become first choice of customers in online shopping, and
to increase the market share. Company plans to enhance its profitability, fulfil the expectation of
its employees and works to make to make Unicorn's website most successful in market.
2.Marketing Plan:
Marketing plan is a business document which includes the marketing strategy for
Unicorn’s new business. Marketing plan is important to make as its gives a clear vision about the
client and customers, their needs and preferences. It helps to know about company's product
which its offering in target market. It assists to design your promotional campaign.
After making marketing plan, proper marketing strategy is need to be prepared.
Marketing strategies will cover the p' s of marketing:
 Product: A product which company is offering to fulfil the needs and wants of
customer. Company should consider what the product is and the uniqueness of
company's goods before offering it in market.
 Price: price determination is an important strategy as it will affect the profit
margin of the company (Salinas, 2018). As a new company, Unicorn should make
strategy regarding discounts offering to attract, more customers. The price of the
products can nether be too low that company losses, nor to high that customer
cannot afford it.
 Place: For initial starting, Unicorn should concentrate on its existing market,
where it will be convenient for customer to know about new business.
 Promotion: It is the most important strategy to reach the customer and which
helps to promote the product in target market. For online websites, the company
can promote its website through advertisement on social media.
3.Financial Plan:
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cash flow
statement
particulars
Initial
invest
ments
Ja
nu
ar
y
Fe
bru
ary
ma
rc
h
Ap
ril
ma
y
Ju
ne
Jul
y
au
gu
st
Sep
tem
ber
Oc
to
be
r
Nov
em
ber
Dec
em
ber
Total number
of clients
15
00
200
0
22
00
25
00
26
40
27
80
30
50
31
60
324
0
33
80
350
0
357
0
average selling
prices
20
5 205
20
5
20
5
20
5
20
5
20
5
20
5 205
20
5 205 205
total revenue
(cash inflows)
30
75
00
410
000
45
10
00
51
25
00
54
12
00
56
99
00
62
52
50
64
78
00
664
200
69
29
00
717
500
731
850
operating
expenses
Advertisement
40
0 400
40
0
40
0
40
0
40
0
40
0
40
0 400
40
0 400 400
rent
25
0 250
25
0
25
0
25
0
25
0
25
0
25
0 250
25
0 250 250
internet
charges
35
0 350
35
0
35
0
35
0
35
0
35
0
35
0 350
35
0 350 350
telephone
charges
12
0 120
12
0
12
0
12
0
12
0
12
0
12
0 120
12
0 120 120
salaries
40
00
400
0
40
00
40
00
40
00
40
00
40
00
40
00
400
0
40
00
400
0
400
0
total operating
expenses (cash
outflows)
51
20
512
0
51
20
51
20
51
20
51
20
51
20
51
20
512
0
51
20
512
0
512
0
Net cash flow
30
23
80
404
880
44
58
80
50
73
80
53
60
80
56
47
80
62
01
30
64
26
80
659
080
68
77
80
712
380
726
730
Investments
capital
invested
250000
0
issue of share
capital
100000
0
opening
balance of
cash
350000
0
35
00
00
0
380
238
0
42
07
26
0
46
53
14
0
51
60
52
0
56
96
60
0
62
61
38
0
68
81
51
0
752
419
0
81
83
27
0
887
105
0
958
343
0
closing
balance of
cash
350000
0
38
02
38
0
420
726
0
46
53
14
0
51
60
52
0
56
96
60
0
62
61
38
0
68
81
51
0
75
24
19
0
818
327
0
88
71
05
0
958
343
0
103
101
60
8

5. The exit or succession options for the business with its advantage and disadvantages.
Having existing strategies are important for business specially the business of small scale,
it is important to have an exit plan in advance. Unicorn retailers can choose any of the exit plan
considering its advantages and disadvantages:
Liquidation: It is process in which business will come to an end by selling off all the assets of
the business. For small business the liquidation is the only option left when there is nothing to
sell and business are having loss from long time (McGrath, 2013). Liquidation is the crucial
decision for a business owner to overcome the position of being solvent. For the small business
owners like Unicorn retailers, liquidation is the best way of existing the market.
Benefits of liquidation are as follows:
 It helps the owner to repay all the debts to the creditors of company, as business function
cannot be continued if company is closed to be insolvent.
 If owner doesn't have any personal liability for company's debt, creditors will not take
legal action against the company. Depending on size of the business, liquidation process will taker; less time and efforts to
sale of the business completely.
Drawbacks of liquidations are as follows:
 The owner may not get the expected value of the company.
 Liquidation will result in the loss of goodwill in the market.
 Creditors of company will have the first claim over the amount of selling of the assets.
 After the selling of all the assets there will be no funds to owner to start a business again.
Trade sale: It is a sale of a business or a part of business to another company. Trade sales are
common form of exit for a company's management and investors. It is selling of a business to
rivalry company (Hawkey, 2017). The trade buyer will usually take over the shares, assets and
sometimes liabilities also. It is a full time withdrawal of the activities of the business.
Benefits of trade sales are:
 It is an efficient way to get the right price for the business.
9

 It will not harm the goodwill of the company and some assets can be subsumed by the
business.
 The owner can get the small but important role in the new business. If the trade buyer is well known in the market, than the transaction of the new business
will not affect the brand value of company..
Drawbacks of the trade sales:
 Selling off the business through trade sell will take much longer time than expected.
 Selling off the business will require a buyer who will consider the company's goals and
values, the rivalry firm or the big company may not care about this.
 Sometime the owner will not get the enough or expected buyer which will result in not
getting the correct prices.
Succession of a business is transferring the business to the new owner after the retirement
or death of the owner. In small business like Unicorn retailers, the family member can take over
the business. Unicorn’s owner should make a proper planning to identify and choose the person
who is capable enough to take his place. Following are some plans through which succession can
be done easily:
Developing a plan: The plan made should be realistic and easy to achieve. As there is no rule
set for succession planning, but the owner should consult about his retirement and transferring of
ownership to its business consultant or lawyer (Harveston, Davis and Lyden, 2014). The
planning should include the choice of successor like business partner, family member, potential
employee etc. An effective planning needs to be done before regarding legal issues before
succession of business.
Advantages and disadvantages:
Effective planning will help to maintain the governance policy after the retirement of
owner. It will help to choose the best candidates to become owner of company. The disadvantage
of planning is that not all candidates or family members are capable to be owner of company.
Developing a formal training program: The successor should have proper training about the
business function and values of company. It’s important to for successor to have a complete
10

knowledge about the company. Different training program should be conducted for the successor
to train them about the company's value, goals and mission before transferring of ownership.
Set a timetable: This step includes setting up of suitable time for shifting of ownership to the
successor. So that the successor can easily get into the position and avoid the overrule his
decisions during transfer period.
Advantages and disadvantages:
Effective succession planning requires a well-communicated process that is clear to all
employees.The succession planning needs to consider how these efforts will be communicated to
the organization and its staff members, which is one of the drawbacks of succession planning.
CONCLUSION
By summing up the following report, the importance of planning a growth and expansion
of business has been concluded. Unicorn Retailers Stores is expanding its business by developing
online websites for shopping. The report concluded various growth opportunities to be
considered to gain competitive advantage within the industry. The report concluded opportunities
for growth applying Ansoff's growth matrix with justification of suitable growth opportunities.
Further, report consist of difference sources of funding available to start a new business. The
above report concluded detailed business plan for growth that includes financial information and
development plan for scaling up a business. Present study has successfully analysed different
strategy of exit and succession plan for Unicorn's owner with the implication of each option.
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Lewko, T., 2017. Making Big Decisions Better: How to Set and Simplify Business Strategy.
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McGrath, R. G., 2013. The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
Porter, M. E., 2011. Competitive advantage of nations: creating and sustaining superior
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Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
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Tansey, P., Spillane, J. P. and Meng, X., 2014. Linking response strategies adopted by
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strategies. Construction management and economics. 32(7-8). pp.705-724.
Weiss, P. And et.al., 2018. Funding Sources and Financial Insecurity in Pediatric Fellowship
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Salinas, A., 2018. The market and public choices: an ethical assessment. Routledge.
Online
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Through<http://www.quickmba.com/strategy/matrix/ansoff/>
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Through<https://www.tutor2u.net/business/reference/porters-generic-strategies-for-
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