Planning for Growth
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This document discusses the key considerations for evaluating growth opportunities, potential sources of funding, and creating a business plan for Oak cash and carry. It also explores Ansoff's matrix and exit options for small businesses.
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PLANNING FOR GROWTH
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Key consideration for evaluating the growth opportunities.........................................................3
Ansoff's matrix ............................................................................................................................5
LO2..................................................................................................................................................6
Potential source of funding .........................................................................................................6
LO3..................................................................................................................................................8
Business plan for Oak cash and carry..........................................................................................8
Executive Summary.........................................................................................................................8
Company description...................................................................................................................8
Financial strategy.......................................................................................................................10
LO4..................................................................................................................................................1
Exit or succession options for small business with its benefits and drawbacks..........................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................1
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Key consideration for evaluating the growth opportunities.........................................................3
Ansoff's matrix ............................................................................................................................5
LO2..................................................................................................................................................6
Potential source of funding .........................................................................................................6
LO3..................................................................................................................................................8
Business plan for Oak cash and carry..........................................................................................8
Executive Summary.........................................................................................................................8
Company description...................................................................................................................8
Financial strategy.......................................................................................................................10
LO4..................................................................................................................................................1
Exit or succession options for small business with its benefits and drawbacks..........................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................1
INTRODUCTION
The study focuses on various aspects of evolution of SME in UK. SME means an organisation
coming under category of small and medium enterprise which is defined as a business with less
than 250 employees and a turn over of less than € 50 million. The company taken up for study is
Oak cash and carry which comes under food wholesale store dealing in food and beverage
products. The study defines growth opportunities company can consider as an SME. The source
of funds for the business function have been highlighted. The study lays down a business plan to
achieve the strategic objectives of the company. Lastly, it lays light on the exit and succession
options for an SME and its implications.
LO1
Key consideration for evaluating the growth opportunities
Basically every business have their business related opportunities regularly in the market.
The chance in organization with launching new product or entering into new market have various
kind of opportunity to the business (Park and LaFrombois, 2019). Any organisation have their
particular consideration that help to determine the growth opportunities. To get advantages in the
competitive market Oak cash and carry have to analysis its opportunities on regular basis
(Shanafelt and et. al., 2019).
VIRO analysis: This tools assist to design to protect from the resources as well as ability that
provide long time benefits. With the help of this framework the competency and the capabilities
of oak cash can in order to gain competitive advantage.
Particular Value Rarity Imitability Organized
Human resource Yes No Yes Yes
Technology No No Yes No
Production Yes Yes Yes Yes
The study focuses on various aspects of evolution of SME in UK. SME means an organisation
coming under category of small and medium enterprise which is defined as a business with less
than 250 employees and a turn over of less than € 50 million. The company taken up for study is
Oak cash and carry which comes under food wholesale store dealing in food and beverage
products. The study defines growth opportunities company can consider as an SME. The source
of funds for the business function have been highlighted. The study lays down a business plan to
achieve the strategic objectives of the company. Lastly, it lays light on the exit and succession
options for an SME and its implications.
LO1
Key consideration for evaluating the growth opportunities
Basically every business have their business related opportunities regularly in the market.
The chance in organization with launching new product or entering into new market have various
kind of opportunity to the business (Park and LaFrombois, 2019). Any organisation have their
particular consideration that help to determine the growth opportunities. To get advantages in the
competitive market Oak cash and carry have to analysis its opportunities on regular basis
(Shanafelt and et. al., 2019).
VIRO analysis: This tools assist to design to protect from the resources as well as ability that
provide long time benefits. With the help of this framework the competency and the capabilities
of oak cash can in order to gain competitive advantage.
Particular Value Rarity Imitability Organized
Human resource Yes No Yes Yes
Technology No No Yes No
Production Yes Yes Yes Yes
Distribution
network
No No Yes Yes
Valuable: The Oak cash & carry have number of effective and efficient employee's that are
working to accomplish the Objective of the company. The human resource is valuable in Oak
Cash and Carry (Jensen and Creinin, 2020). As people are regularly motivated and trained so that
they can perform their best. Technology is less value as they are SME, so they are more focused
on profit earning so for this the Oak giving more value to production department. The
distribution network is less valued.
Rarity: The human resource are not rare any competitor in market can grab them easily. The
technology is not also rare as they are small scale company. The production is rare in Oak cash
& carry company. The distribution network is also not that much rare due to small area of
operation.
Imitability: The human resource are not imitated in Oak because the competitor can not simply
have the same level and qualified HR, the technology is also can imitable in the company. The
production is also can be imitable with others in the market. The competitor can easily do same
level of promote and distribution (Seaton, 2018).
Organized: The human resource are organized as they know they work and responsibility. The
technology is not that much organize in Oak cash & carry as per their operational area. The level
of production is organized in Oak. Distribution network is not that much efficient but it is
organize.
Innovation of New product: SMEs are new companies, so they need to innovate the style as
well as technique to produce its products and services to grow and expand in the market. The
Oak cash & carry is providing grocery products in its market. To innovate its products and
services they are launching organic grocery products so that people who are concern about their
health get more attracted towards the products and this products will also enhance the health of
people who will use them.
Identify and mitigation of risk
Identify Mitigation
network
No No Yes Yes
Valuable: The Oak cash & carry have number of effective and efficient employee's that are
working to accomplish the Objective of the company. The human resource is valuable in Oak
Cash and Carry (Jensen and Creinin, 2020). As people are regularly motivated and trained so that
they can perform their best. Technology is less value as they are SME, so they are more focused
on profit earning so for this the Oak giving more value to production department. The
distribution network is less valued.
Rarity: The human resource are not rare any competitor in market can grab them easily. The
technology is not also rare as they are small scale company. The production is rare in Oak cash
& carry company. The distribution network is also not that much rare due to small area of
operation.
Imitability: The human resource are not imitated in Oak because the competitor can not simply
have the same level and qualified HR, the technology is also can imitable in the company. The
production is also can be imitable with others in the market. The competitor can easily do same
level of promote and distribution (Seaton, 2018).
Organized: The human resource are organized as they know they work and responsibility. The
technology is not that much organize in Oak cash & carry as per their operational area. The level
of production is organized in Oak. Distribution network is not that much efficient but it is
organize.
Innovation of New product: SMEs are new companies, so they need to innovate the style as
well as technique to produce its products and services to grow and expand in the market. The
Oak cash & carry is providing grocery products in its market. To innovate its products and
services they are launching organic grocery products so that people who are concern about their
health get more attracted towards the products and this products will also enhance the health of
people who will use them.
Identify and mitigation of risk
Identify Mitigation
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Failure to meet the
customer's needs while
entering in new market
Avoid to directly enter the market without any knowledge or well-
developed strategy to perform the activities. Accepting the current
trends and launching the product in the new market accordingly.
When they will know what customers prefer than this will help Oak
to offer the right product to them.(Loredana, 2017).
Financial risk Limit the uses of resources and money of the company so that
money is not being wasted and activities are also efficiently
performed. Accept the challenges which are being introduce and
causing the wastage and try to avoid them further.
External changes For this risk mitigation acceptation is must as when dealing with the
external environment as there are several changes took place every
day so by knowing and accepting the change assist to make an
effective decision for the same.
Exploitation of technology and digital platform: Oak cash and carry is launching in products
in the market so to promote them and distribute them in the market they are using social media
and website in order to advertise its product and to promote in the market. Earlier the Oak is
selling their products by their stores but now they are using digital platforms to sell the product
so that customers can easily buy their products.
Joint venture: To grow in the market the Oak cash and carry can make use of Joint venture
which will help the company to grow in the market and enhance its profit. The Oak cash and
carry can rapidly increase its production with sell by doing partnership with an organization with
a greater share.
customer's needs while
entering in new market
Avoid to directly enter the market without any knowledge or well-
developed strategy to perform the activities. Accepting the current
trends and launching the product in the new market accordingly.
When they will know what customers prefer than this will help Oak
to offer the right product to them.(Loredana, 2017).
Financial risk Limit the uses of resources and money of the company so that
money is not being wasted and activities are also efficiently
performed. Accept the challenges which are being introduce and
causing the wastage and try to avoid them further.
External changes For this risk mitigation acceptation is must as when dealing with the
external environment as there are several changes took place every
day so by knowing and accepting the change assist to make an
effective decision for the same.
Exploitation of technology and digital platform: Oak cash and carry is launching in products
in the market so to promote them and distribute them in the market they are using social media
and website in order to advertise its product and to promote in the market. Earlier the Oak is
selling their products by their stores but now they are using digital platforms to sell the product
so that customers can easily buy their products.
Joint venture: To grow in the market the Oak cash and carry can make use of Joint venture
which will help the company to grow in the market and enhance its profit. The Oak cash and
carry can rapidly increase its production with sell by doing partnership with an organization with
a greater share.
Ansoff's matrix
This is one of the tool that help to strategic planning is a tool that provide a systematic
framework to assist the managers and marketer for the growth. This model is used to inspect the
opportunities to generate the profit for the business. The Oak cash and carry have the four
different growth opportunities that can help Organization (Abbasi, Wang and Abbasi, 2017).
Market penetration strategy (Low): With this approach of Ansoff the Oak cash & carry can
sell its existing products in its existing market, the company is trying better promotional practice
into its existing market in a way that they can enhance the sales of their production. The
company is making use of digital marketing platforms such as social media, website, AI
technology to reach its potential and new customers in existing market.
Pros. The market share get increased and also increase customer's base. The pricing is reduced in
this so more customers are attracted towards the brand.
Cons. The quality is being reduced because the company is reducing the cost. When company
reduce the price than its hard for the company to come back to previous price.
Product development strategy (Medium): In this approach the company will introduce new
product in the existing market to attract the customers. The customer of UK want new product
from their particular brand in order to fulfil their needs. The Oak cash & carry by planning to
launch a new product that is organic product range to meets the need for existing customers.
Moreover, it can make use of different promotional activities to promote the goods so that
customers willing to buy the products.
Pros. With this approach company can develop culture of innovation. Assist to grow network in
professional way.
Cons. Produce may face failure. Set unrealistic expectations.
Market development strategy (Medium): In this approach the existing product is being
launched in new market in a way that the Oak cash & carry can gain better revenue from new
market. The company will use a better way to show its product in new market to build a strong
base of its customers. The company can enter the international market with its existing product in
attractive way so that it get competitive advantages as well.
Pros. Increase customer's. Implementation may assist to leader of industry.
Cons. Management face lot of pressure. Existing customers may not continue with the brand.
This is one of the tool that help to strategic planning is a tool that provide a systematic
framework to assist the managers and marketer for the growth. This model is used to inspect the
opportunities to generate the profit for the business. The Oak cash and carry have the four
different growth opportunities that can help Organization (Abbasi, Wang and Abbasi, 2017).
Market penetration strategy (Low): With this approach of Ansoff the Oak cash & carry can
sell its existing products in its existing market, the company is trying better promotional practice
into its existing market in a way that they can enhance the sales of their production. The
company is making use of digital marketing platforms such as social media, website, AI
technology to reach its potential and new customers in existing market.
Pros. The market share get increased and also increase customer's base. The pricing is reduced in
this so more customers are attracted towards the brand.
Cons. The quality is being reduced because the company is reducing the cost. When company
reduce the price than its hard for the company to come back to previous price.
Product development strategy (Medium): In this approach the company will introduce new
product in the existing market to attract the customers. The customer of UK want new product
from their particular brand in order to fulfil their needs. The Oak cash & carry by planning to
launch a new product that is organic product range to meets the need for existing customers.
Moreover, it can make use of different promotional activities to promote the goods so that
customers willing to buy the products.
Pros. With this approach company can develop culture of innovation. Assist to grow network in
professional way.
Cons. Produce may face failure. Set unrealistic expectations.
Market development strategy (Medium): In this approach the existing product is being
launched in new market in a way that the Oak cash & carry can gain better revenue from new
market. The company will use a better way to show its product in new market to build a strong
base of its customers. The company can enter the international market with its existing product in
attractive way so that it get competitive advantages as well.
Pros. Increase customer's. Implementation may assist to leader of industry.
Cons. Management face lot of pressure. Existing customers may not continue with the brand.
Diversification (High): In the diversified approach Oak is using new product and the new
market place. If the organization has to expand in new market then they have to launch
something new so company is changing their product category to organic products. With organic
product the company can influence people to buy them as the products are healthy. The company
can use joint venture to expand in the market as to enhance the profit Oak can planned to enter in
new market with its new product that is organic product range (Dawes, 2018).
Pros. Boost brand image and Help to compete.
Cons. Limits the growth
From the above analysis it has been identified that Oak cash and carry should use the
product development strategy because SMEs have higher competition rate in the international
market. With the help of launching new products in the existing market assist company to attract
new customer's and retaining the potential customers. The people in the Britain market are
preferring new trendy products. Therefore, product development will help company for better
growth.
LO2
Potential source of funding
Funding is a way to provide the resources to finance a need as the finance is mostly in form of
money. The funding has vital importance to any business organization as without the funding no
business can sustain and survive in the market for short- term and long-term. The SMEs have
very few sources of funding, the funding is basically every company in the market uses to seek
the sources of funding (Gherghina And et. al., 2020). The funding also can defined as financing.
The Oak cash and carry has following source of fund:
Personal investment: As the business which is basically small have a sole proprietor to run a
business so the single person is using its own investment to perform different activities of
business. This source of finance have certain benefits and drawbacks:
market place. If the organization has to expand in new market then they have to launch
something new so company is changing their product category to organic products. With organic
product the company can influence people to buy them as the products are healthy. The company
can use joint venture to expand in the market as to enhance the profit Oak can planned to enter in
new market with its new product that is organic product range (Dawes, 2018).
Pros. Boost brand image and Help to compete.
Cons. Limits the growth
From the above analysis it has been identified that Oak cash and carry should use the
product development strategy because SMEs have higher competition rate in the international
market. With the help of launching new products in the existing market assist company to attract
new customer's and retaining the potential customers. The people in the Britain market are
preferring new trendy products. Therefore, product development will help company for better
growth.
LO2
Potential source of funding
Funding is a way to provide the resources to finance a need as the finance is mostly in form of
money. The funding has vital importance to any business organization as without the funding no
business can sustain and survive in the market for short- term and long-term. The SMEs have
very few sources of funding, the funding is basically every company in the market uses to seek
the sources of funding (Gherghina And et. al., 2020). The funding also can defined as financing.
The Oak cash and carry has following source of fund:
Personal investment: As the business which is basically small have a sole proprietor to run a
business so the single person is using its own investment to perform different activities of
business. This source of finance have certain benefits and drawbacks:
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Benefits
The personal investment is invested by owner itself so it is easily available by the company for
the investment of the company. If the investment is being made by owner itself then their will be
no credit is with the company therefore no interest has paid by company externally.
Drawback
As the investment is being made by the owner itself so it has limited source of finance. The risk
is very high as if there is any failure then owner itself has to bear all of that.
Money from relatives: This is finance source which is lend by people of the family and friends.
This type of finance is repaid when the business is earning efficient amount to repay. The Oak
cash and carry have to check if they are use the capital of their family then they should have
adequate amount of capital. The company also analysis whether they are having assets in the
organization and the relation should be clear as they are inverter for the company, and they
should treat not lightly.
Benefits
The company can repay the amount whenever they want as the inverter are of their own family,
so they there are no limitation for the time. In this the Oak not has to pay any kind of interest to
its investor so it can help company to enhance the profit.
Drawbacks
In the case of failure the money will lose as the owner can not able to repay the amount. There is
case of conflicts and arguments between the family members as they need their money back and
if there is any uncertainty occurs then it will lead to ambivalence in the family.
Bank loan: This is a great way to potential source of funding for SMEs that is Oak cash and
carry, with the help of this funding the company can get the fund whenever that is needed by the
company. As the Oak is a small scale company so the needs of fund is basically fulfilled by
taking loan.
Benefits
The personal investment is invested by owner itself so it is easily available by the company for
the investment of the company. If the investment is being made by owner itself then their will be
no credit is with the company therefore no interest has paid by company externally.
Drawback
As the investment is being made by the owner itself so it has limited source of finance. The risk
is very high as if there is any failure then owner itself has to bear all of that.
Money from relatives: This is finance source which is lend by people of the family and friends.
This type of finance is repaid when the business is earning efficient amount to repay. The Oak
cash and carry have to check if they are use the capital of their family then they should have
adequate amount of capital. The company also analysis whether they are having assets in the
organization and the relation should be clear as they are inverter for the company, and they
should treat not lightly.
Benefits
The company can repay the amount whenever they want as the inverter are of their own family,
so they there are no limitation for the time. In this the Oak not has to pay any kind of interest to
its investor so it can help company to enhance the profit.
Drawbacks
In the case of failure the money will lose as the owner can not able to repay the amount. There is
case of conflicts and arguments between the family members as they need their money back and
if there is any uncertainty occurs then it will lead to ambivalence in the family.
Bank loan: This is a great way to potential source of funding for SMEs that is Oak cash and
carry, with the help of this funding the company can get the fund whenever that is needed by the
company. As the Oak is a small scale company so the needs of fund is basically fulfilled by
taking loan.
Benefits
This kind of loan is basically easy and quick to get because the Oak can easily take a big loan
from the bank as per the requirements of company. The Oak cash and carry can get the fund
whenever they are in need.
Drawbacks
The oak have to pay a significant amount of interest on the fund that is allotted by bank. This is
become hard to access by new business in the market.
From the above study that most suitable way to take the potential fund is the bank loan
because there is no conflict in this type of funding. The Oak cash and carry can easily take this
whenever it is needed. If the business not able to pay the loan liability than there are different
laws under which company is liable.
LO3
Business plan for Oak cash and carry
Executive Summary
The plan discusses the company launch of a new product and how the company makes its
planning regarding marketing activities, operational activities, costs involved etc. The decisions
taken by management are highlighted and a financial summary is provided which gives insight
into break up of costs involved.
Aim: To increase the revenue of company by launch of a new product by 20%.
Objectives:
Specific- Company's goal is specific to increase revenue by 20% within a year.
Measurable- The revenue can be easily measured by KPIs and balance sheet.
Company description
The company 'Oak cash and carry' is located in Banbury, United Kingdom. This is part of the
food wholesale industry. It is basically in the non specialized sales of food, beverages and
tobacco. The company employs around 58 people and is growing as a retail chain impressively in
the last decade. The vision of the company is to provide high quality or products at reasonable
from the bank as per the requirements of company. The Oak cash and carry can get the fund
whenever they are in need.
Drawbacks
The oak have to pay a significant amount of interest on the fund that is allotted by bank. This is
become hard to access by new business in the market.
From the above study that most suitable way to take the potential fund is the bank loan
because there is no conflict in this type of funding. The Oak cash and carry can easily take this
whenever it is needed. If the business not able to pay the loan liability than there are different
laws under which company is liable.
LO3
Business plan for Oak cash and carry
Executive Summary
The plan discusses the company launch of a new product and how the company makes its
planning regarding marketing activities, operational activities, costs involved etc. The decisions
taken by management are highlighted and a financial summary is provided which gives insight
into break up of costs involved.
Aim: To increase the revenue of company by launch of a new product by 20%.
Objectives:
Specific- Company's goal is specific to increase revenue by 20% within a year.
Measurable- The revenue can be easily measured by KPIs and balance sheet.
Company description
The company 'Oak cash and carry' is located in Banbury, United Kingdom. This is part of the
food wholesale industry. It is basically in the non specialized sales of food, beverages and
tobacco. The company employs around 58 people and is growing as a retail chain impressively in
the last decade. The vision of the company is to provide high quality or products at reasonable
price so that customer get satisfied. The mission of the Oak cash and carry is to become the best
retailer and grow its business internationally.
Products and Services
The products offered are frozen and prepared foods along with fresh produce and baked goods.
The new product which the company is offering now will be organic food products which
include organic drinks, organic fruit bars, organic puffed snacks, organic candies, organic freeze
dried fruits, organic cookies, organic pickles, organic beverages etc.
Marketing Plan
The company will make a strategy of in house marketing at its stores. Separate section of organic
products will be made to highlight the segment. In early stages of product launch, various
discounts and offers will be given to attract customers. The market strategy of using combo
products and offer on purchase of a product like one organic fruit bar given free with combo of
two organic drinks will be introduced (Chang, W.L., 2017). Display of merchandise where
customer can get complementary products at the same place without having to search separately
are supposed to induce buying. Company will be doing a marketing campaign like a road show
to tell the distinguished features of the products. Banners and hoardings of the new launch with
catchy images will be put up at prominent places where it can be seen by public. Advertisements
will be given in print like newspapers and pamphlets about the product launch with offers
mentioned.
Operational Plan
The operational plan has to be which describes how the business functions as a continuous basis.
Company has to search for tenders which are supplying variety with quality and the cost of
tender has to match with the budget of organisation. The logistics of the company for the
products have to be sound. The economic order quantity for inventory has to be realised such
that additional costs do not go in maintaining excess of inventory. The break-even analysis for
the product segment after taking in account the procurement and marketing costs will help in
setting profit margin for the product category (Ekanem, 2017).
retailer and grow its business internationally.
Products and Services
The products offered are frozen and prepared foods along with fresh produce and baked goods.
The new product which the company is offering now will be organic food products which
include organic drinks, organic fruit bars, organic puffed snacks, organic candies, organic freeze
dried fruits, organic cookies, organic pickles, organic beverages etc.
Marketing Plan
The company will make a strategy of in house marketing at its stores. Separate section of organic
products will be made to highlight the segment. In early stages of product launch, various
discounts and offers will be given to attract customers. The market strategy of using combo
products and offer on purchase of a product like one organic fruit bar given free with combo of
two organic drinks will be introduced (Chang, W.L., 2017). Display of merchandise where
customer can get complementary products at the same place without having to search separately
are supposed to induce buying. Company will be doing a marketing campaign like a road show
to tell the distinguished features of the products. Banners and hoardings of the new launch with
catchy images will be put up at prominent places where it can be seen by public. Advertisements
will be given in print like newspapers and pamphlets about the product launch with offers
mentioned.
Operational Plan
The operational plan has to be which describes how the business functions as a continuous basis.
Company has to search for tenders which are supplying variety with quality and the cost of
tender has to match with the budget of organisation. The logistics of the company for the
products have to be sound. The economic order quantity for inventory has to be realised such
that additional costs do not go in maintaining excess of inventory. The break-even analysis for
the product segment after taking in account the procurement and marketing costs will help in
setting profit margin for the product category (Ekanem, 2017).
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The task and roles of every division within the store have to be defined in advance how
the product will be pitched by the sales executive, how the products will be arranged as per
categories and complementing to each other, billing to be done with discount mentioned and a
special message on purchase of the segment to be given to customers on their mobiles.
The capital requirements on the project or segment undertaken have to show separately
on the budget or balance sheet. The capital has to be allotted with risk weights allotment of the
assets in hand. The reserves which are left after utilization can be used for procurement of the
category which is giving greater returns to the organic segment (Whitley, S., 2018).
Competitive analysis
It is done to analyse the weaknesses and strengths of competitors in the market. These strategies
can provide a unique advantage over other competitors for the company. Since the number of
dealers in organic products is not high, this serves as an advantage for the company. However,
the barriers being less for the entry of new competition, company has to take some measures
which can keep the customer hooked like:
a) Cost leadership: Company has to look forward building a strategy on cost reduction. This has
to be done by cost saving methods with quality of product intact. Organic products are generally
priced higher. Company through cost optimisation measures have to bring a reasonable price on
majority of products with premium being kept on a few.
b) Differentiation: The products have to be consisting of distinguished characteristics which
customers cannot find else where in the local market. This can be achieved by taking steps like
modification in traditional packaging, mention of the route the product has taken to come from
farm till the store. The latter has an effect of trust formation with customers over providing of
information about product authenticity (Kmiec and Longo, 2017).
c) Technology: Use of technology in business strategy can place a company an added advantage
where competition is less. Oak cash and carry can go for online sale of its product segment with
all the varieties of product category while simultaneously developing a sound delivery system in
in far and adjoining areas.
Management function
Management aspects include the function of managing the role of every department within
business plan. The marketing function will be delegated responsibility to launch the products and
the product will be pitched by the sales executive, how the products will be arranged as per
categories and complementing to each other, billing to be done with discount mentioned and a
special message on purchase of the segment to be given to customers on their mobiles.
The capital requirements on the project or segment undertaken have to show separately
on the budget or balance sheet. The capital has to be allotted with risk weights allotment of the
assets in hand. The reserves which are left after utilization can be used for procurement of the
category which is giving greater returns to the organic segment (Whitley, S., 2018).
Competitive analysis
It is done to analyse the weaknesses and strengths of competitors in the market. These strategies
can provide a unique advantage over other competitors for the company. Since the number of
dealers in organic products is not high, this serves as an advantage for the company. However,
the barriers being less for the entry of new competition, company has to take some measures
which can keep the customer hooked like:
a) Cost leadership: Company has to look forward building a strategy on cost reduction. This has
to be done by cost saving methods with quality of product intact. Organic products are generally
priced higher. Company through cost optimisation measures have to bring a reasonable price on
majority of products with premium being kept on a few.
b) Differentiation: The products have to be consisting of distinguished characteristics which
customers cannot find else where in the local market. This can be achieved by taking steps like
modification in traditional packaging, mention of the route the product has taken to come from
farm till the store. The latter has an effect of trust formation with customers over providing of
information about product authenticity (Kmiec and Longo, 2017).
c) Technology: Use of technology in business strategy can place a company an added advantage
where competition is less. Oak cash and carry can go for online sale of its product segment with
all the varieties of product category while simultaneously developing a sound delivery system in
in far and adjoining areas.
Management function
Management aspects include the function of managing the role of every department within
business plan. The marketing function will be delegated responsibility to launch the products and
strategies within a given time frame work, the operational aspects have to see to it that the
tenders received, purchase order given, inventory issued all have to communicated to the
management. There will be a separate committee head in management to supervise the workings
of all departments. The store head Mr. Rohan has an experience of 10 years in a multi-national
company of organic products and will be handling the employee function as well as logistics.
Mr. Arnold is the director of the organisation and has been an alumni of a prestigious hotel
management institution and their expertise together will enable the company to take on the new
project.
Employee deployment
The employees for every departmental function will be allotted on need basis of the function. As
marketing department will be requiring more number of employees to promote the strategy, 15
employees will be assigned for the purpose. Operations department will be allotted the same
number who can look after the sales being made on daily basis with record of inventory stock.
For logistics, every time 3 employees will be kept spare to fulfil the delivery needs of orders.
Market potential
The market has potential enough as the organic food market remains to be captured and has vast
opportunity to let the new segment of oak cash and carry become successful. In sales volume, the
market potential can be GBP 10,00,000 per year and unit wise 50000 of organic products.
Other competitors analysis
There are very few market players in the organic market and thus it would not be difficult for the
company. However, the company can adapt the logistics for the product after taking clue from
other competitors. Other competitor's price strategy can also be studied. One of the competitor of
the company is Nisa which is provided different grocery and food products in wholesaler. The
competitor of oak cash and carry is regularly affecting the profitability and its functions as well.
Financial strategy
Budget
Particulars Cost
Production Department: 40000
(Raw material 15000
tenders received, purchase order given, inventory issued all have to communicated to the
management. There will be a separate committee head in management to supervise the workings
of all departments. The store head Mr. Rohan has an experience of 10 years in a multi-national
company of organic products and will be handling the employee function as well as logistics.
Mr. Arnold is the director of the organisation and has been an alumni of a prestigious hotel
management institution and their expertise together will enable the company to take on the new
project.
Employee deployment
The employees for every departmental function will be allotted on need basis of the function. As
marketing department will be requiring more number of employees to promote the strategy, 15
employees will be assigned for the purpose. Operations department will be allotted the same
number who can look after the sales being made on daily basis with record of inventory stock.
For logistics, every time 3 employees will be kept spare to fulfil the delivery needs of orders.
Market potential
The market has potential enough as the organic food market remains to be captured and has vast
opportunity to let the new segment of oak cash and carry become successful. In sales volume, the
market potential can be GBP 10,00,000 per year and unit wise 50000 of organic products.
Other competitors analysis
There are very few market players in the organic market and thus it would not be difficult for the
company. However, the company can adapt the logistics for the product after taking clue from
other competitors. Other competitor's price strategy can also be studied. One of the competitor of
the company is Nisa which is provided different grocery and food products in wholesaler. The
competitor of oak cash and carry is regularly affecting the profitability and its functions as well.
Financial strategy
Budget
Particulars Cost
Production Department: 40000
(Raw material 15000
Machinery 20000
Labor) 5000
Marketing Department: 20000
(Promotion 16000
Advertising) 4000
Human Resource Department: 35000
(Salaries 18000
Training and development) 17000
Total 85000
Break-up of costs of different departments has been done in bracket form.
Cash Flow Statement
Inflow and Outflow Last year Previous Year
Funds provided by:
Receipts on in-store sales 2,00,000 1,50,000
Receipts on catalogue sales 1,00,000 50000
Dividend and Interest Income 3000 3000
Invested Capital 50000 45000
Total Funds in 3,53,000 2,48,000
Funds used for:
Cost of goods acquired 1,00,000 80000
Selling and administration 20000 18000
Interest Expense 1200 800
Labor) 5000
Marketing Department: 20000
(Promotion 16000
Advertising) 4000
Human Resource Department: 35000
(Salaries 18000
Training and development) 17000
Total 85000
Break-up of costs of different departments has been done in bracket form.
Cash Flow Statement
Inflow and Outflow Last year Previous Year
Funds provided by:
Receipts on in-store sales 2,00,000 1,50,000
Receipts on catalogue sales 1,00,000 50000
Dividend and Interest Income 3000 3000
Invested Capital 50000 45000
Total Funds in 3,53,000 2,48,000
Funds used for:
Cost of goods acquired 1,00,000 80000
Selling and administration 20000 18000
Interest Expense 1200 800
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Building and equipment 1500 1000
Taxes 15000 12000
Distribution to owners 20000 18000
Total Funds out 157700 129800
Net change in cash position 195300 118200
Taxes 15000 12000
Distribution to owners 20000 18000
Total Funds out 157700 129800
Net change in cash position 195300 118200
LO4
Exit or succession options for small business with its benefits and drawbacks
Manager or owner of small enterprise by planning in advances about exit strategy that
could be used by company to close down its operation is able to sustain its business for more
years. Liquidation, legacy, selling business in open market and merger are some common
method that are used by company in order to exit which can be illustrated as follows:
Legacy: It is exit strategy in which entrepreneurs wants to keep its business for longer time
frame by passing succession to the family member or next generation. Legacy existing strategy
is more successful as the owner still have right and responsibilities to take all necessary decision
related to business (Zia, Saini and Muhammad, 2019).
Pros
Business can be easily promoted or continued for many years.
Cons
Family member may not have sufficient skills and capabilities to run various operation of
businesses.
Merge: It is another exit strategy which can be used by business in order to exit its business by
merging with company that have similar brand image, resources and market share. Company
through merging strategy can easily expand its business across worldwide.
Pros
More availability of resources. Helps in expansion of business or new market in limited time
frame.
Cons
Too time consuming and may also result additional cost to company.
Liquidation: Small business can also make use of liquidation as an exit strategy for business by
selling all its asset and resources to gain sufficient money (Chikoye and et.al., 2017.).
CONCLUSION
This report concludes that the planning for growth is basically done to use the resource
very effectively. This planning is done to track the organic expansion in the revenue. The main
consideration for determine the growth opportunities is discussed by VIRO model which show
1
Exit or succession options for small business with its benefits and drawbacks
Manager or owner of small enterprise by planning in advances about exit strategy that
could be used by company to close down its operation is able to sustain its business for more
years. Liquidation, legacy, selling business in open market and merger are some common
method that are used by company in order to exit which can be illustrated as follows:
Legacy: It is exit strategy in which entrepreneurs wants to keep its business for longer time
frame by passing succession to the family member or next generation. Legacy existing strategy
is more successful as the owner still have right and responsibilities to take all necessary decision
related to business (Zia, Saini and Muhammad, 2019).
Pros
Business can be easily promoted or continued for many years.
Cons
Family member may not have sufficient skills and capabilities to run various operation of
businesses.
Merge: It is another exit strategy which can be used by business in order to exit its business by
merging with company that have similar brand image, resources and market share. Company
through merging strategy can easily expand its business across worldwide.
Pros
More availability of resources. Helps in expansion of business or new market in limited time
frame.
Cons
Too time consuming and may also result additional cost to company.
Liquidation: Small business can also make use of liquidation as an exit strategy for business by
selling all its asset and resources to gain sufficient money (Chikoye and et.al., 2017.).
CONCLUSION
This report concludes that the planning for growth is basically done to use the resource
very effectively. This planning is done to track the organic expansion in the revenue. The main
consideration for determine the growth opportunities is discussed by VIRO model which show
1
the resources which are being value, imitated, rare and organized for the company the
production contact all of that elements. Their failure of desired quality is identified risk and for
these managers will inspecting the market and quality of its products regularly. The Oak cash
and carry will use effective way to promote and sale its goods. Further it concludes that the
opportunities can be identified through Ansoff matrix approach in that company will identify
which approach is suitable for the company. Their potential funding that Oak cash and carry can
have is bank loan because that is most suitable for SMEs.
2
production contact all of that elements. Their failure of desired quality is identified risk and for
these managers will inspecting the market and quality of its products regularly. The Oak cash
and carry will use effective way to promote and sale its goods. Further it concludes that the
opportunities can be identified through Ansoff matrix approach in that company will identify
which approach is suitable for the company. Their potential funding that Oak cash and carry can
have is bank loan because that is most suitable for SMEs.
2
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REFERENCES
Books and journals
Abbasi, W.A., Wang, Z. and Abbasi, D.A., 2017. Potential sources of financing for small and
medium enterprises (SMEs) and role of government in supporting SMEs. Journal of
Small Business and Entrepreneurship Development. 5(2). pp.39-47.
Chang, W.L., 2017. Online training for business plan writing through the World Café method:
the roles of leadership and trust. Universal Access in the Information Society. 16(2).
pp.313-324.
Chikoye, D and et.al., 2017. Improving legume seed delivery systems: Legacy, loose ends and
exit strategy.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Gherghina, Ș.C. And et. al., 2020. Small and medium-sized enterprises (SMEs): The engine of
economic growth through investments and innovation. Sustainability. 12(1). p.347.
Jensen, J.T. and Creinin, M.D., 2020. Family planning, population growth, and the
environment. Contraception. 101(3). pp.145-147.
Kmiec, D. and Longo, B., 2017. Writing to Convince: Persuasive Documents.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Park, Y. and LaFrombois, M.E.H., 2019. Planning for growth in depopulating cities: An analysis
of population projections and population change in depopulating and populating US
cities. Cities. 90. pp.237-248.
Seaton, F.S., 2018. Empowering teachers to implement a growth mindset. Educational
Psychology in Practice. 34(1). pp.41-57.
Shanafelt, T. and et. al., 2019. Building a program on well-being: key design considerations to
meet the unique needs of each organization. Academic Medicine. 94(2). pp.156-161.
Whitley, S., 2018. Technical and Business Writing.
Zia, K., Saini, D.K. and Muhammad, A., 2019. Efficient evacuation in a multi-exit environment:
an agent-based decision support model. International Journal of Information and
Decision Sciences, 11(4). pp.355-375.
Online
OAK CASH & CARRY LIMITED, 2021 [Online] Available through:
<https://www.dnb.com/business-directory/company-
profiles.oak_cash__carry_limited.adb35cec2dd26f5838d8d832e57d2969.html>
1
Books and journals
Abbasi, W.A., Wang, Z. and Abbasi, D.A., 2017. Potential sources of financing for small and
medium enterprises (SMEs) and role of government in supporting SMEs. Journal of
Small Business and Entrepreneurship Development. 5(2). pp.39-47.
Chang, W.L., 2017. Online training for business plan writing through the World Café method:
the roles of leadership and trust. Universal Access in the Information Society. 16(2).
pp.313-324.
Chikoye, D and et.al., 2017. Improving legume seed delivery systems: Legacy, loose ends and
exit strategy.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Gherghina, Ș.C. And et. al., 2020. Small and medium-sized enterprises (SMEs): The engine of
economic growth through investments and innovation. Sustainability. 12(1). p.347.
Jensen, J.T. and Creinin, M.D., 2020. Family planning, population growth, and the
environment. Contraception. 101(3). pp.145-147.
Kmiec, D. and Longo, B., 2017. Writing to Convince: Persuasive Documents.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Park, Y. and LaFrombois, M.E.H., 2019. Planning for growth in depopulating cities: An analysis
of population projections and population change in depopulating and populating US
cities. Cities. 90. pp.237-248.
Seaton, F.S., 2018. Empowering teachers to implement a growth mindset. Educational
Psychology in Practice. 34(1). pp.41-57.
Shanafelt, T. and et. al., 2019. Building a program on well-being: key design considerations to
meet the unique needs of each organization. Academic Medicine. 94(2). pp.156-161.
Whitley, S., 2018. Technical and Business Writing.
Zia, K., Saini, D.K. and Muhammad, A., 2019. Efficient evacuation in a multi-exit environment:
an agent-based decision support model. International Journal of Information and
Decision Sciences, 11(4). pp.355-375.
Online
OAK CASH & CARRY LIMITED, 2021 [Online] Available through:
<https://www.dnb.com/business-directory/company-
profiles.oak_cash__carry_limited.adb35cec2dd26f5838d8d832e57d2969.html>
1
1 out of 17
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