Planning for Growth

This document discusses the key considerations for growth and opportunities, evaluates growth opportunities using the Ansoff matrix, explores sources of funding and their advantages and disadvantages, provides a business plan for growth, and discusses exit and succession options for small businesses. The subject is business management and the course code is not mentioned. The document type is a report and the assignment type is not mentioned. The college/university is not mentioned.

PLANNING FOR GROWTH

INTRODUCTION...........................................................................................................................5
LO1..................................................................................................................................................5
P1 Analyzed key consideration for growth and opportunities.....................................................5
P2 Evaluate the growth opportunities by Ansoff matrix.............................................................7
LO2..................................................................................................................................................8
P3 Sources of funding and its advantages and disadvantages.....................................................8
LO3..................................................................................................................................................8
P4 Build a business plan of an organization for growth and scaling up a business....................8
LO4................................................................................................................................................11
P5 Exit and succession option for small business with its benefits and drawbacks..................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Planning for growth is considered to be an essential element related to growth of an
organization. Such plans have an impact upon the developing phase of a business within the
market. It has also played an important role in generation of profit in an organization. Changes
are being made as per adoption of resources that has been taken care under this strategy. Oak
cash & carry is an SME company in UK it was formed in the year 2000. It deals with products
and services related to foods, tobacco and offer variety of products for retailers, caterers, offices,
news agent. This report is based upon growth of opportunities in a firm and also various methods
of sources and funding to build a business plan for increasing of growth through profit margins.
Lastly suggest they exit option for firm.
LO1
P1 Analyzed key consideration for growth and opportunities
In today’s environment every business is required to earn as much profit as possible and
growth rate should also be high. It can be done only by selling of products and providing services
to its customers. This is one of the most important terms and is responsible for generating of
growth opportunities within an SME. Inn oak cash carry managers are required to make needed
to do this evaluation as growth opportunities is going to be helpful in long run. Innovation of a
new product for expansion and exploration in market and its new areas is achieved. For examine
the opportunities in growth manager is required to use Bostan consultancy group which has been
explained as follows:
Bostan consultancy group matrix
BGC matrix has been formed by Bruce Henderson since 1970. This matrix has helped in
long term strategic planning and helpful in gaining knowledge over product and services upon
the basis of low and high performance of it. This matrix is going to be very useful for analyzing
of growth potential of an product. It is based upon products quality also (Jentoft, 2017).
 Stars product- These are the those goods and services which is related towards high
growth through high shares in market. In relation to Oak cash & carry. Star products
includes with groceries which helps in consuming of major amount of profit. In this
organization should make top listed products for the groceries that is helpful in
maintaining of their market shares of goods in star quadrant.
 Cash Cows- The product matrix is related to that kind of product which contains low
growth in market with higher shares. In oak cash & carry BBQ and is considered within

this quadrant. This leads to low growth with higher market share. Evaluation of growth
opportunities can be generated through little investment. Question mark- This is known as problem child also under these high rate of growth
market with low share is there. Regarding Oak cash & carry product like beverages is
related to this category. Evaluation of growth opportunity within the step manager is
required to invest in beverages.
 Dogs- This are those products that are low growth and low market share. In Oak cash &
carry Tobacco is the product that is waste for the firm. Manager decides to control the
production of this product and divest it from the range entirely. In this quadrant manager
can evaluate the growth opportunity by removing the tobacco from their product range
and invest more on star product so they earn more market share and market growth.
GE Matrix
The matrix has been develop by McKinsey and company consultant group since 1970s.
This is also known as nine cell grid that is based upon industry attractiveness. In oak cash &
carry, manger has been used in this matrix for analyzing the business units and has been
explained as follows:
Invest/ grow- This cell has been considered as an high industry attractiveness and high
unit of business. Under this star category product has to be included that helps in generating of
market growth. In context to Oak cash & carry, company invests more upon groceries product
because their share and growth is high. As, groceries is that product which earns more profit and
share. Difficulty is there for competitors for beating its product within market (Jafarnezhad,
Salmanmahiny and Sakieh, 2016).
Hold/ selective- This cell of the matrix involves question mark upon products whose
growth rate is high and market share is less. As per the grid cell industry attractiveness is
medium and strength is also average. In oak cash carry, manager suggested for holding
market and selecting of best features from becoming of an offering a star product.
 Divest/ harvest- This grid includes the poor performing business units and unattractive
industry. This cell is related to dog category product of BCG matrix. In context of Oak
cash & carry, manager needs to divest from the Tobacco product and harvest on groceries
and beverages. This type of product does not satisfy the consumer demand as well as
harm the environment. They generate losses and reduce the market share and market

growth. Avoid manufacturing of tobacco help the company to invest in other type of
product range so they will earn more profits and revenue.
P2 Evaluate the growth opportunities by Ansoff matrix
Ansoff Matrix It is that kind of matrix in which strategic planning is done that is going to help
managers, senior executive and marketers for making strategy for future growth. It was proposed
by Russian American Igor Ansoff. It is included into two quadrants that are product and market.
As per this product and market quadrant both old and new market is included in it. Under this
four stages is there that is development, market development, market penetration and also
diversification. In relation to Oak cash & carry manager used in the theory has been used to
increase both profit and growth.
 Market penetration- As per this quadrant, company has been used in its product offering
within existing market. Manger plans for increasing its market share is by using market
penetration. In relation to oak and carry, manger sells their product of existing market but
through its strategy for increasing and covering of large market shares and profits. Also
manager to use this strategy in following ways of decreasing prices for attracting more
customers for existing product (Holz-Rau and Scheiner, 2019). Product development- This strategy belongs to that category in which and firm decides
for selling of new products into existing market. They are there to in novae product for
meeting of existing market needs. In relation to Oak cash & carry manger suggest for
developing of its product in existing market. This is done to capture large customers upon
their needs. Market development- These marketing strategy is belonging to an criteria where firms
thinking of entering into new market with its existing product for earning of new market.
This is an means of expanding business in both domestic and foreign market. Manger
adopts entering into foreign market.
 Diversification- This has been related to that risky strategy where the entire into a market
with new product. There are two types of diversification this has been related and
unrelated diversification. Manager oak cash and carry could use strategy for expansion
and growing of business by using new product is new market.

From the above concluded strategy, oak cash and carry has to follow products development
strategy this has to be launched over new product related to beverages. For expanding of
business into an existing market with products this is the best technique which is going to be
used by company. Firstly company has to analyze and examine the customer needs. Product
develop by them is organic and dietary meal with product name organic.
LO2
P3 Sources of funding and its advantages and disadvantages
Finances are considered to be most important part of an organization and no business can
be done without it. It is very much essential over the term for success and growth within an
organization. Various sources are there for generation of funds like crowd funding, shares, bank
loans, government institutions etc. In relation to oak cash & carry company can examine various
sources of funding and are explained below (Farahmand, 2016).
Internal source of funding- This is referred to as that type of funds that has been raised by an
organization. Less risky in generating of such type of funds like cash from sales, sale surplus
assets and reserve profit. Generated normal and regular basis of work. Some advantage s and
disadvantages are there:
Benefits- Internal source of funding general capital on urgent basis or immediate basis
and no interest rate is involved.
Drawback- Impact is negative upon operating budget is main problem which hold
internal sources.
External source of funding – This is referred to as that kind of sources of funds which can be
raised by a firm from outside the business. Such sources has been very effective and related for
long term operations activities. Oak cash carry manager uses and raise funds from the external
source. This includes bank loan, team loan, term loan, hire purchase, debenture, venture capital,
over draft.
LO3
P4 Build a business plan of an organization for growth and scaling up a business
Business plan is considered to be as that kind of written documents that has been related
to nature of business and its financial position. Strategy making, sales profit and loss statements
re involved in it. This creates focus upon internal and external factors. As per this strategy of an
internal nature plan target goals which has to be achieved upon urgent basis. This results into
achieving of external goals also. Oak cash & carry is an SME that is there for extending of

business in various markets with its service extinction. In order of fulfilling this manger of a
company can make a business operating with its services.
Oak cash and carry: It is an UK based company which is having its warehouses and
provides services of delivering goods. This company was formed on 19th October 2000. It offers
trade upon goods over whole sale prices. These are there for achieving of goals and objectives
which has been setup for capturing larger area of market.
Vision and mission: Vision of the company is to create an influence over those people
and communities of larger nature. This has to be achieved by providing of thee services to its
customers. Mission of the company has been focused over achieving of it vision through
efficiency in its services and producing good products.
Corporate values: These are the values that have been much effective as they are going
to help in generating of a connection to its customers by fulfilling of its preferences. In order to
achieve this balance of profit earning and quality of product is required to be maintained.
Stakeholders exceptions: Stakeholders are the persons which are there in handling
investment of a company. They are there for investing and expecting return for investment done.
Strategy of product development is based upon new product that has been brought into existing
market and has to be very much effective for company as this is going to be more helpful for
achieving of profit. .
Entrepreneurial Strategies: As per this the company has to operate over new market of
other countries like France, Germany and USA that has been in existing product. Operation of
these business to attract new customers in a market.
STP: In this oak cash and carry is going to use targeting, segmenting and positioning as a
strategy this is going to help in the consideration of new product into an existing market.
Segmenting: This stage market is divided upon various segments that is having uniform
characteristics Oak cash & carry is required to be segmented targeted market upon the basis of
behavioral characteristics and geography (Chen and Wang, 2016).
Targeting: Oak cash and carry has to target different strategies within market. For
introduction of it on the basis of international market and national market.
Positioning: Oak cash and carry has been positioned upon vintage through operating
accessible stores that has been helping in advertising its product and capturing market more
effectively.
Marketing mix: In this manager is going to be helpful in playing of an important role.
As they are going to help in examine of product, price of the area where market has to be set-up.

Financial information: Launching of product within an existing market. Oak cash and carry has
to be analyzed in its finances.
SWOT Analysis
Strength Weaknesses
The biggest strength of oak cash & carry is the
uniqueness of the product which is attracting
lot of customers. Also helps in increasing sales
of company which generates higher profit in an
organization.
Biggest weakness of oak cash & carry does
not have innovation that makes it very complex
In nature this going to make decrease in
customer percentage.
Opportunities Threats
Oak cash carry is an new organization
opportunity to attract customers is more.
Oak cash carry it should be aware about
competitors present in market may effect its
profit.

Evaluation: Monitoring and evaluation of business is used for analyzing of growth and
sales of the company. Modification in customers base is also achieved because of this.
LO4
P5 Exit and succession option for small business with its benefits and drawbacks
Acquisition: This is an outline under which an complete or part of shares is sold to some
other company in order to hold seller company. Thus it permits the buyers of a company to take
decisions about operations of Sellers Company. Without permission of an organizations capital
investors. By adopting of these methods Oak cash and carry has to face some advantages and
disadvantages and they are as follows:

Advantage : It has enhanced the attention of resources which has resulted in expansion
of business with better position of its finances. Establishment of new ideas for doing business for
Oak cash and carry. Specialist work force is to be helpful in entering of business. This has aid
towards generation of new and unique ideas.
Disadvantages: Cost included in acquisition is very heavy for oak cash and carry. This
can made them face loss..
Merger: This is that procedure of integration that is going to help into enhancing of their
operational capacities and productivity. This is going to be made between two companies that
has been carrying business over identical product and service line. Carrying of business is non
identical business line. Oak cash and carry may face the following advantage and disadvantages.
Advantages: This has encouraged cost savings that is going to lead towards economies
in scale that has high amount of profit. Also credit worthiness of Oak and carry may increase its
financial resources of the company. This is going be very helpful in acquiring local as well as
intentional market is going to lead towards enlargement of growth of good will (Agyemang and
Silva, 2019).
Disadvantages: Merger effects mind set of an ultimate customer in a negative way if
merger companies are from different background. Merger may lead to reduction in job in oak
and carry that is going to make skilled employees in organization. Though merger monopoly is
going to be created in market.
Oak cash carry should adopt acquisition as they are to introduce a product into an
existing market. This is to be helpful in achieving of goals and objectives in easy manner. Leads
towards establishment in market.
CONCLUSION
From the report it can be concluded that planning for growth is an essential term that has
been useful for increase in growth of business. Oak cash carry is required for doing evaluation of
growth by using BGC or GE matrix for enhancing opportunities related to growth. Further
evaluation of businesses profit can be maximized. These purpose mangers can use Ansoff matrix
and identify the best strategy that is very much suitable for growth and profit margins of
company. This has chosen product development strategy for earning profit margins. This is
going to be helpful in interest from current market with new product. In the end of this report
exit option has been SME when they are not earning profit.

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