Planning for Growth: Competitive Advantages, Opportunities, Ansoff's Growth Matrix, Financial Growth Options, and Current Business Plan

This report discusses planning for growth for Nisa Retail Limited, including competitive advantages, opportunities, Ansoff's growth matrix, financial growth options, and current business plan. It covers topics such as Porter's five forces model, sources of funding, and SWOT analysis.

Planning for growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1)Competitive advantages of business........................................................................................3
2) Opportunities available for business.......................................................................................4
3) Ansoff's growth matrix...........................................................................................................6
4) Options available for financial growth and sources of funding..............................................7
5) Current business plan..............................................................................................................9
6) Entry and exit option available for business.........................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Planning for growth is a strategic business activity in which business owners plans
organic business growth in their revenue. It allows company to access its performance and also
company can identify its opportunities that can help business to expand its operations. Present
report is based on Nisa retail limited it is a brand and grosser y wholesaler operating in the
United Kingdom. This report will outline competitive advantage of business and also various
opportunities available for business. Furthermore report will outline various options available for
growth of growth of company and also sources of funding will be outline. At the end company
will make business plan by using entrepreneur strategies and also discuss about entry and exit
options available for business.
MAIN BODY
1)Competitive advantages of business
To sustain in the competitive environment and growth of business porter’s 5 forces strategy to be
apply:
Porter five forces model: It is a model that analyse five forces and it help to determine
company’s weakness and strength. It also explains why companies being able to sustain in the
competitive environment and how business will sustain different level of profitability (RESMI,
PAHLEVI, and SAYEKTI, 2021). It is use to analyse industry structure of company and its
corporate strategy and these forces play vital role in shaping every market in world.
Threat of new entrants: The level of risk factor in the market is low because when more
companies enter in market price of product become low and companies have to face high cost to
raise in the market. Nisa retail can limit its price by producing large amount of product at lower
cost this strategy will help to serve large portion in the market. Company can prevent new entry
by engaging with customers so that customer will not switch to another because when similar
product is being produce consumer have desired options. By building strong market visibility
and offering special benefits threat will reduce to some extent.
Threat of substitute: The extend of risk factor is low because substitute product is more
expensive than industry product and its quality is inferior as compared to industry. Many
products have no substitute available and also consumer switching cost is high. Nisa can lower
the risk of substitutes by making differentiation in their product and providing unique product

than that of its competitors and by adding additional features in product (Pavliuk, and Nechay,
2019). By communicating and building relationship with customers, educating customer about
company's product and by offering special package or discount on trial purchase business can
grow successfully.
Bargaining power of buyer: The degree of risk factor is low because there are bulk of
buyers available in the market and there are so many rivals available and it act as a competitive
force. The selected company can leverage buyer power by creating unique product and by giving
something that is hard to replace by competitor this will definitely make difference. Company
can do swot analysis of another by obtaining data to make good business decision and by
maximising network company can recognize opportunities.
Bargaining power of supplier: Supplier bargaining power is high because quality of raw
material and inputs are unique. The quality of product which is offered by suppliers is more in
demand as higher competition rivalry, lower will be the profitability of firm. Nisa firm can
reduce bargaining power by having multiple suppliers as it will give high bargaining power and
company can also keep prices down this will increase company’s profitability. Company can
reduce it by keeping companies brand over supplier brand this will bring trust to consumers and
they will think that company is sourcing best product for them.
Competitive rivalry: The degree of threat of this factor is high because there are so
many competitors in the market and they try to steal profit and market share from existing firm.
Nisa can reduce competition by identifying need of the customer and by satisfying consumers
with its product and services. Company can improve existing firm product and services by
focusing on need of the customers and can also offer reasonable price of that product.
2) Opportunities available for business
Element Description
Political factor Government and economies appreciating small
retail firms this create an opportunity for Nisa.
Government seek to implement subsidies to
encourage production and consumption of the
industry it will help company in a positive
manner.

Economical factor Currently inflation rate is increasing this will
impact company in a negative manner so
business has to decide when to buy inventories
for so that optimal amount of resource can be
allocated.
Social factor Customer trend is continuously changing and
they are developing shopping habits this create
an opportunity to firm. Consumer buy product
according to their choice and they are also
following multinational brand (20 Small
Business Opportunities to Seize, 2022). Nisa
can increase the sale of product by keeping
branded product at their store.
Technological factor Whether it is an online store or physical
shopping mall technology influence both of
them equally so Nisa can adopt hardware and
software technology so that company can
compete with other firm. With the help of
internet company can advertise its product and
services globally and in this there are no
restriction of geographical border.
Legal factor There are various legal factors that affect retail
industry in a positive manner and saved from
smuggling of the product. Nisa can follow
consumer protection law and policies to
safeguard rights of consumer this will develop
trust of consumer to the firm and they will buy
product from that company only. Company
should also follow environment regulation in
order to keep environment clean this will create

opportunity to company.
Environmental factor Consumers are becoming conscious about
environment changes and also becoming
concerned about their health. Nisa should
follow environmental laws and regulation that
is made to protect lives of people and it also
ensure rights of consumers and employees as
well.
3) Ansoff's growth matrix
This matrix help marketer to identify opportunities so that company grow revenue for the
business and can make success in the market for long duration. By developing new products and
services in the market firm analyse opportunities for company. It also helps companies to know
which strategy they should adopt to successfully grow their business.
Market penetration: It means how much product and services is used by customer thus
it is a strategy or activity of going to market in which similar product already exist. By applying
this matrix company can grow using existing product in the existing market. Nisa can use this
strategy to overtake competitors and gain larger share in the market (Gurcaylilar-Yenidogan,
and Aksoy, 2018). Company can use this matrix because it carries low risk and it is an ideal
business growth strategy. It is also safe because company can know that there is a need of
product in the prevailing market.
Market development: It is a strategy that company place to introduce their product to
target customers that have not reached yet and not currently serving. Nisa can use this strategy as
it will help business to grow and reach to new customer in a structured way. Expanding
customers create more sales and more revenue and firm can expand its customer base (Ahmed,
and Ahmed, 2018). It also allows business to grow and business can gain competitive edge over
rivals.
Product development: It is a process of delivering new product or making improvement
in existing product for the customers. The selected company can use this strategy as it ensures
value for potential customer and it also create demand of product in the market (What is the

Ansoff Matrix? 2022). It helps company to produce goods and services of best quality and also
helps in expanding market for products.
Diversification: It is process of introducing new product into supply chain as it is a
business growth strategy that identify by company that develop new product in new market. Nisa
firm can use this matrix to achieve greater profitability in the market and it helps business to
expand in new market. It is also beneficial because by this company can explore new way to
access sales and in return it increases companies profit.
Company can adopt penetration strategy because it is less risky as compared to another
strategy. By using this matrix company can increase its market share for its current product and
also firm can evaluate past approaches and can design more effective marketing strategy. This
strategy also encourages customers to move away from competitor’s product and ensures that
companies product is more satisfying than competitors. By using this strategy company
stimulates potential customers to use or buy the product and also company recognize weakness
by maintaining advantage of their existing product.
4) Options available for financial growth and sources of funding
For the growth of business company go for sources of finance through this firm can
contribute to resources to finance the project (What are Sources of Funding? 2022). Some of the
sources of fund are as follows:
Retained earnings: It means amount of net income left to business after paying debt to
shareholders. Business can maximise their profits by selling product and rendering services at
high cost (Estrin, Gozman, and Khavul, 2018). It is the most prominent way like an individual
company also set aside their profit to meet future requirement.
Advantages Disadvantages
It is a cheaper source of finance as it does not
involve any acquisition cost. Company don't
have any obligation to pay retained earnings in
future.
The purpose of utilisation is not clears it leads
to improper utilisation of fund.
Retained earnings strengthen financial position
of company and give stability to business.
Conserving dividend leads to huge
accumulation of retained earnings as leads to
over capitalisation.

Shareholders get stable dividend even if
company is not earning profit.
Retained earnings does not allow shareholders
to take advantage and enjoy actual earning of
company.
Debt capital: Debt capital is referring to fund that generated by borrowing from lender
(Block, and et.al 2018). Various business person sources new fund by issuing debt to public and
companies who issue debt issues are borrowers who exchange securities for cash.
Advantages Disadvantages
When a company debt financing to an
institution lender will not ask how company
will manage as business relationship will end
once company repaid full amount.
Company need enough credit rating to receive
financing.
The amount company pay in interest is
deducted from tax it reduces net obligation
and company will enjoy tax advantage.
Company need to have financial discipline to
make repayment on time.
Company well know in advance how much
principal and interest is to be paid each month.
By this practice company can make financial
plans and budget very easily.
Company put some collateral security to lender
by this practice company put some business
asset at potential risk.
Equity capital: Company raise fund from public in exchange of ownership stake. This is
to be done by issuing shares to investors who are actual shareholders of the company.
Advantages Disadvantages
If a company makes equity financing there is
no loan to repay.
In equity capital investors expect some amount
of profit.
In Equity capital funding company don't need
to pay any interest or principal amount.
Company loss control of business.

Nisa should go for retained earnings because it is a cheaper source of finance and it involve
financial stability of the company. Through retained earning shareholders get stable dividend
even if the company is not making profit and company also increases market value of share. It
reduces cost of issuing equity and also by this practice company eliminates losses incurred on
under-pricing.
5) Current business plan
Overview: Nisa is planning to introduce fitness product in the market because people are
becoming more health conscious. individual who lead a wellness oriented lifestyle are mostly
concerned about their nutrition, fitness and their environment. They take overall responsibility of
their health and are excellent customers for health related product. By introducing fit diet in the
market Nisa will generate sale as customers are more trendy towards health care facilities and
they treat their health on a priority basis.
Vision: Vision is to build trust among customers and within employees by delivering
global standards and ensure world class customer experience.
Mission: To become profitable logistic with customer satisfaction by using fitness
product and to become most trusted brand by offering product of high quality.
Business objective: To increase sale by 20% till end of august 2023.
To provide alternative ways to customers to record their daily calorie consumption.
To increase in investment by 20% to achieve financial success.
Description of products & services: Fit diet is an easy way to gain and maintain
weight. It is balanced formulation of high quality soy protein, carbohydrates, fats, minerals and
vitamins (McKenzie, and Sansone, 2019). It provide4 up to 3470 extra calories per day other
than calorie gain by regular diet. It gives vital nutrients and energy that help in gaining weight.
SWOT analysis
Strength:
Customer service of Nisa is world class
compared to competitors.
Weaknesses:
Website visibility is low due to lack of
market budget, with transaction.
Opportunities: Threats:

In order to improve market visibility Nisa can
run ads on you tube, Facebook and Instagram.
With trending e commerce competitor set a
parameter to launch within month and
company can see decline in customer.
Competitors analysis:
Basis of difference Your organization Londis Costcutter
Product Product of Nisa
include fit diet.
Product range include
farm fresh, happy
shopper etc.
Product range
include Grocer's
shop, convenience
shop etc.
Price Nisa use price
penetrating strategy to
attract customers to
new product and
services by offering
low price initially.
product and services
quickly accepted by
customer through
strategy and it also
generate high sale.
Londis use price
skimming strategy by
charging high price
initially and
subsequently
company lower price
of product. It helps
company to make
more money and
company identify
opportunities and
occasions when
customer willing to
pay.
Cost cutter use
premium pricing
strategy by charging
high price than
competitors. By this
practice company
state that their
product is of higher
quality than
competitors
STP approach
 Segmentation: Nisa will segmenting on the basis of demographic and psychographic
because it helps to identify which people will make purchase and it will help to define
target market of company. Once Nisa know target market company will prepare
marketing strategies that will best appeal in the segment.

 Targeting: Nisa will targeting group of people between 18 to 26 because this group of
people is mostly health conscious and follow trend. It will help Nisa to direct their
resources to those customers with high potential sale growth.
 Positioning: Nisa will focus on promotion of the fit diet by highlighting benefits of the
product and by providing high quality in reasonable price.
Marketing mix:
 Product: Nisa will introducing fit diet because people are becoming more health
conscious and are following trends and they take responsibility of their health on priority
basis. By launching this product in the market nisa will increase sale and it will positively
affect success of company.
 Price: Nisa is following price penetrating strategy because this strategy will be useful to
quickly gain market share by setting low prices initially (Hopp, and Greene, 2018). This
practice will also useful in creating brand loyalty.
 Place: Nisa will be given their services on online platform also because it is easy to
access market through this. By this practice company will expand its market beyond local
customers.
 Promotion: Nisa will plan to promote it business on social platform and website because
it will help company to increase in store as well as online sales. Media marketing also
provide a platform to build customer relationship.
Financial aspect

Monitoring & control: Through benchmarking technique Nisa will monitor and control
its business plan. By this strategy company will use to stay up to date with trends within the
industry and will also discover best standard of performance. It will also help company to stay in
touch with the market and customer need.
6) Entry and exit option available for business
There are various options available for entry of company that a firm can adopt some of
these are:
Training and Development: In order to attain growth in the competition market Nisa
can analyse training and development program as it enhances employee performance. Employee
get to learn about industry very well and it is necessary to retain employee for longer period and
through this employee learn skills they need in their current roles (Chirico, and et.al 2020). It
also boosts morale of employee and by this employee build relationship with another employee.
Advantages Disadvantages
Employee get various opportunities of learning
and career growth it increases satisfaction level
Training involve high cost as organisation put
so much amount in cost of travel and for

of employee. providing in house training program.
When organisation provide learning
opportunity employee develop new skills and
also they participate in challenges at
workplace. When employees learn through
training it increases sales of the organisation as
employee produce maximum output.
There is not enough time for staff training
because of busy schedule of employee at
workplace as training require so much time and
it is time consuming process.
Training increase morale of employee and
employee retain for longer duration in the
organisation.
Training employees for more hours increase
stress within employee and also they lost
interest in job.
Joint venture: For purpose of succession organisation may use joint venture in this type
of firm two or more parties combine with each other to form a single enterprise (Chen, and
et.al 2018). Parties share profit margin and also share risk with each other by this practice
business can grow faster and productivity is also increased through this.
Advantages Disadvantages
Through this business can access new market
and distribution channel.
The objective of joint venture is not clear and
also communication between parties is not
great.
Business share risk and liabilities with each
other.
Partners expect different things with each other
and thus level of expertise of parties doesn't
match.
Through joint venture company can access
new knowledge and expertise and it also
include specialised staff.
In the early stage every partner is equal so
leadership and support is not there.
Company can go for training and development program as it improved employee
performance. Employee get to learn new things and can also refined their existing skills this way
they can grow within organisation and business can achieve their goal.

There are various exit options available for company that a firm can use:
Sale of firm: For making exit from the firm Nisa can sale the firm and transfer business
to new owner and company can generate liquidity from this (Contractor, and et.al 2020). It also
provides opportunity to maintain involvement in business.
Advantages Disadvantages
Favourable economic condition , market trends
give company high prices.
Negotiation takes so much time and it is time
consuming process.
By selling a company firm can easily personal
debts from profits that is earned.
When company sell its business its legal cost is
high.
Selling profit can be invested in another
business which will give high return.
It affect morale of employee and they feel
unsecure about their future.
Selling a firm makes a business person free
from their responsibilities.
If company is generating profit it will lose
future money.
Merger and acquisition: For the purpose of exit organisation may use merger and
acquisition as it refers to a transaction between two companies that combine with each other. In
merger two company combine with each other having same size and in acquisition one company
takes larger share of another company (Nambisan, Zahra, and Luo, 2019). It reduces cost and
overhead as business share their budget and it increase purchasing power of company.
Advantages Disadvantages
A business that combine with other have high
need of materials and supplies by purchasing
it business can in prove its scale.
Merging two companies require high legal cost
because several key professionals are involved
in forming a company.
Merger and acquisition result in multiple staff
doing same job
Business potentially lost opportunities because
huge time , money and energy is involved.
Company can go for sale of business so that money can be invested in other project and
person can also spend more time with their family and friends. If business generate low profit,
then it is a good practice to sale the firm rather than running a business in loss.

CONCLUSION
From the above analysis it is concluded that growth planning is very essential as it
provides an overall overview of how an organisation is performing and it also prioritize key
areas of growth. With the discussion it was evaluated that to sustain in the competitive
environment and growth of business porter’s 5 forces strategy is applied by company. Further
PESTLE analysis was conducted by business and company also applied and offs growth vector
and in this it was suggested to company that they should adopt penetration strategy because it is
less risky as compared to another strategy. The report also evaluated business plan relating to fit
diet which is a fitness product. In the end it was analysed that company also followed various
entry and exit plans such as joint venture, sale of firm, merger and acquisition etc.

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