Planning for Growth

This report examines the growth opportunities for Crocus, an online plant retailer, using various business development tools. It analyzes the company's competitive advantages, financial viability, and market coordination. The report also explores different funding sources, outlines a business plan, and assesses exit and succession options for the company.

Planning for Growth

Illustration Index
Illustration 1: Ansoff's Growth Vector Matrix................................................................................6
Illustration 2: SWOT Analysis.......................................................................................................11
Illustration 3: PESTLE Analysis....................................................................................................12
Illustration 4: 4 Marketing Mix......................................................................................................14

INTRODUCTION
To run a business in right way both planning and growth are consider most important key
factors and this also help for business success. Study dealing with Crocus Organization of UK
who provide online plants for their customers worldwide. This report mainly focuses on how
small and medium businesses are developing and growing. The report helps to understand the
importance of planning in business. Crocus also wants to expand its business by introducing new
equipment such as fertilizers and pesticide in their shop. It describe various factors that help to
evaluate growth opportunities by applying Ansoff's growth vector matrix. Study also present
different sources of funding that are used by Crocus in order to raise its financial status with their
pros and cons. Report provide a business plan that consist of financial information with their
mission and vision in order to set up new business plan. Further it describe different succession
points that help owner to take an exit from a business with their pros and cons.
P1. Key consideration for evaluating growth opportunities
Crocus wants to expand its business by introducing new equipment such as fertilizers and
pesticides. The financial stability of a business is quite strong because it offers variety of
products through online mode and that is why, it wants to expand its business in order to increase
its sales as well as profits. The company offers the best quality flowers, plants as compared to
others with such low and affordable prices. In order to evaluate different growth opportunities
and measure the competitive advantages, Crocus uses below mentioned points such as :
Competitive Advantages: it is an essential cause that impact the growing chance of
Crocus, as it want to develop it in further level by introducing new equipment into store. By
using PESTLE analysis, the company can easily know about their competition in the market.
Crocus is also facing competition with their rivals because the market share of company is wide
and it offers low range of plants to their customers (Hollander, 2018). Crocus needs to deliever
all their best products of goods with such a low price as compared to their rivals that helps to
increases their competitive advantages.
Financial Viability: As Crocus add some new business in its existing company, but
before that it is essential to know the budget, which is quite difficult to assess. As the company is
financially strong and can be measured by using last financial status of company which help to

determine the actual revenue generate on years that help to determine actual financial status of a
Crocus.
Market Coordination: to maintain a healthy relationship in market, it is necessary to
have good communication and coordination with customers as well as with suppliers. Crocus is
an online shop and does all its promotional activities to increase base of their customer's. Now it
wants to expand its business so it uses different modern methods in order to increase its sales.
This will help to enhance communication in market (Tomczak, Reinecke and Kuss, 2018).
Legal Aspects: Legal Aspect is important cause for Crocus which hinder growth
opportunities. To expand a enterprise, it must follow all the rules and implement them as soon as
possible. If these laws are not followed these legal aspects somehow affect the brand image of
company. Crocus always takes care about new rules and regulation and implement those into
business as they are mostly relate with new tax policy etc.
Sales marketing: Sales marketing is next cause that impact expansion of a business. As
company deals online with their customers, which means that it has the best selling channel.
Sales and good marketing will definitely help in attracting large users and Crocus is also trying
to developing its selling market in order to grow its existing market (Channon and Jalland,
2016). The company used only modern method such as social sites, websites etc. and it uses best
method of promotional activity method in order to increase its sales.
By using Porter generic strategy, Cost leadership is an essential strategy that help
company to raise its competitive market. This strategy mainly focus on to set up new prices for
those products but at low cost so that it help to raise company's profitability and as a result it
determine company's growth opportunities. Moreover, using cost differentiation strategy by
Crocus will also help to provide unique offers at low and affordable rates. That help a quoted
company to determine its growth opportunities.

P2. Evaluating growth opportunities by applying Ansoff's Growth Vector Matrix
 Market Penetration: Market penetration is mainly used by the company to sell
its active services into alive marketplace by using various marketing
encouragement activities. Marketing penetration is the cheapest and simple
scheme for a institution and can be done when business is in growing stage. This
factor is mostly used by Crocus in order to increase its customer’s base as it offers
online plants and flowers; now it wants to expand its business by introducing
more new equipment for their existing customer’s convenience (Darroch, 2014).
The company offers so many different promotional activities such as advertising,
discount voucher, loyalty cards, and special discount for their VIP customers to
increase their production as well as sales.
 Product Development: This strategy aid to sell brand-new products in their
existing markets or customers. This strategy will be helpful when quoted
company will effectively find out need of various customers with their interior
Illustration 1: Ansoff's Growth Vector Matrix
Source: Ansoff's Growth Vector Matrix, 2018

skills. This factor is used by Crocus in order to increase its sales and profits. As
Crocus wants to introduce more new products in their online store for their
existing customers because by research, any company can come to know that
there is a need of fertilizers and pesticides in a market so the company feels that
there is need to introduce more new products in a store.
 Market Development: the third strategy states that take all existing products into
new market by using market development strategy. It is consider more risky than
market penetration option because it is quite difficult to understand new market's
complexity. As Crocus may use this strategy to reach new people by offering their
existing products (Bridge and Dodds, 2018). This model helps to grow Crocus at
global level and now it find geographic region where it can be scope new
customers by using their active services. As the company offers all different
varieties of flowers & plants and also want to raise its profitability, in order to
reach new region that aid to raise its sales as well as profitability by using
different promotional tools.
 Diversification: Another strategy and considers as one of the riskiest strategies
because it is not possible for the company to sell new products in completely
unfamiliar market and it never knows whether the introduction of new product
will help to gain more profit or loss. In the context of Crocus, it wants to add
more new products in their store by using new online way. In the context of a
company, there is a need to maintain strong relationship with their active users in
new and alive market in order to increase its profit and sales (Bruno, Woolley
and Carlson, 2014).
Among all four strategies, Crocus uses product development because it will help to add
more new services in its alive market . The company adding latest services for their customers
such as fertilizer and pesticides in their existing markets. As this strategy mainly focuses to
maintain good relationship with their customers as well as their suppliers, Crocus offers its
flowers and plant in such a low range to their customers as compared to others and presently it
added new products in their store in order to increase its customer base and profits.
M1

For growth of a company it is necessary to examine cause before apply latest method.
Some strategy that help to determine the competitive advantages of a company such as by using
Porter's five force model and PESTLE analysis, Crocus find the competitive advantages of a
company (Rudolf, Kienast and Hersperger, 2018).
D1
Some causes which hinder opportunities and affect company's overall environment .
Among all, competitive analysis is one the most affecting factor. As the company offer online
flowers and plants at such a low and affordable price in order to increase its customer base. As
porters five forces model is useful to evaluate the market strategy.
P3. Presenting sources of funds available for business with its pros and cons
To expand a business in marketplace, quite necessary to have strong finance which help
in attaining overall requirement in a concern which is achieve by sources of fund process. This
method helps Crocus to provide different growth opportunities . There are various method of
funding and some of them are mention below:
Personal Saving: it is the best method, Crocus may uses. Whenever a new business is
start, owner may uses their own cash which they saved from their personal savings. Using
funding source, owners shows that they are the only one who owes this business (Sources of
Fund, 2018).
Benefits: it is most simple and best method that are used by every small and medium
company used. By using own personal saving in a business will help to avoid extra spending
during expansion, no proper regulations.
Drawbacks: the biggest disadvantage is every person has not a sufficient amount of
capital to spend into a enterprise. Sometimes it will creates minor differences between family
members which creates conflicts between them (Pugalis and et.al., 2016).
Investors: they are generally wealthy or retired individual who help needy people in
order to provide funds for the expansion of business. Crocus may uses this source of funding.
Angel investors are the main person who uses their occurrence in order to suggest owner true
advise for growing their business and have web of contacts.

Benefits: Angel investors is less risky method of funding. They give advises to the owner
in order to expand a business. Generally investors of a business have wide area of network
channel that help to increase the area of sales.
Drawbacks: it is most difficult to find investors for the business because these parties
keep a very low profile. As they need a share of business which is quite difficult for the owner to
share.
Bank loans: It is the most important source of funding which help a company to take
loans form private banks. It is a good idea that help to shop around and find banks who meet all
the specific need of an owner.
Benefits: banks are so flexible about making regular installment payment on time. These
are repayment and can be return in specific time. In future if business will face loss, at that time
owner can uses its own saving in order to cover installment of banks (Racz and et.al., 2018).
Drawbacks: there are strict rules and regulations if the loans are take. They have very
high interest rates. For owner it is a burden to return the amount which is taken from a bank.
Crowdfunding: it is rapidly becoming major source of funding for seed- stage start ups
business. This source of funding is exist mainly into two types: reward- based crowdfunding and
equity based crowdfunding. These are online mode of sources and one of the easy process.
Benefits: this source of funding help in saving a cost and one of simple online process.
Drawbacks: disadvantage of using this source of funding is that not all person are ready
to contribute some amount so its is quite challenging to accept by a person to contribute some
capital on a business. That is why owners do not uses this method (Leick and Lang, 2018).
Among all, Crocus uses personal saving, bank loans method because these both are help
to spend less over expenditure while other sources of funding will some how creates obstacles
and took long term process for finding investors.
M2
As Crocus wants to spread out their business and introduce more new products in their
online shop, needs proper financial resources. It can be done through funding method which are
bank loans, crowdfunding, venture financial, personal saving etc.
D2

Crocus find it difficult to set up capital for its new expansion and it can be done through
various sources such as taking loans from banks, using own personal saving, through investors
etc. and this all method have their own importance and drawbacks.
P4. Business plan for Crocus
Following points describe the whole business plan for a company.
Overview: Presently, Crocus is a online store who offer variety of flowers and plant to
their customers as per their need or demand least cost and it has good finance support so it wants
to introduce more new products such as fertilizers and pesticides. The company maintains good
relationship with their customers and makes them enjoyable by offering such a beautiful plants
and flowers in affordable price.
Goals/ Objectives:
 To gain their customized basic.
 To keep healthy state with their existing customized as well as with new ones too.
 To grow business at global level.
 To make marque picture To complete all needs and demand of their customers and offer products according to
them with low price.
SWOT Analysis:
Strength:
 the biggest strength of Crocus, it offer variety of plants and flower to their customers with
low price as compared to their competitors.
 Offer online products which help to save money as well as time of people.
 The company offer 24 hours shopping service to their customers.
 It adapt advance techniques into their store to draw customized. Crocus has good customers base which help to maximizes its overall profit.
Weaknesses:
 As the company offer online products so there may be chances of cheating and issue
related to security.
 Sometimes it takes time for shipping and as a result it force customer's to buy products
from another shop.

Opportunities:
 As having a strong financial status, the company can introduce new products to their
store such as fertilizers and pesticide etc.
 improving online shopping card system may also help to feel comfortable to their
customers while shopping (Johnson, 2016). Purchasing from small store will help their customers to increase their market share.
Threats:
 Crocus have many rivals which sometime offer new variety of products and attract their
customers.
 Due to security problem, customers are not ready to share their all personal information
in internet that create threat in Crocus that may be customers shift they shopping into
other form.
 Losing online customers is a biggest threat for Crocus.
Illustration 2: SWOT Analysis
Source: SWOT Analysis, 2018

PESTLE Analysis:
Political Factors Economical Factors
 Political instability may result in the
disruption of business in online mode.
 Sudden change in taxation of
government laws will affect the sales of
a company (Hollander, 2018).
 Crocus's financial status will be
affected by the means of sudden change
in the economic stability of a country.
 Inflation, interest rate and other
monetary policies may also affect the
business of a company.
 Now consumer prefer to shop for better
deals and they go online to see what
company offer and must go for cheaper
options from their rivals.
Social Factors Technological Factors
 These factor affect people's values,
their perception and behavior. Lifestyle
 New invention and developments
related to their products will help to
Illustration 3: PESTLE Analysis
Source: PESTLE Analysis, 2018

of young generation changes day by
day.
 Young generation are more interested
in social sites as compared to old
generation.
 Crocus need to understand their sudden
change behavior and try too introduce
those products in order to meet the
needs of people.
increase their customers base.
 As the company offer online products
and it always implement those changes
by using latest information technologies
(Bridge and Dodds, 2018).
 The company always ensures that it
must fulfill all the needs and
requirement of customers by means of
using latest techniques.
Legal Factors Environmental Factors
 Legal factors are differ from state to
state or nation to nation.
 The company must follow all the rules
such as labor laws, safety regulations
laws.
 Crocus did not produce product that
may cause harm to environment.
 It takes cares of all environmental
regulations and protection act.
Marketing Mix: This strategy is used to know the competitive advantage of market
which can be determine by using 4 Ps:

Product: Crocus offers variety of flowers and plants to their customers and now want to
introduce new products in its store such as fertilizers and pesticides for the convenience of their
customers. The company even offer a bulk variety of plants with good and fresh quality.
Place: As Crocus wants to expand its business but choosing a right place is quite difficult
for them. The company add their new product in their existing stores only through online mode
(Tomczak Reinecke and Kuss, 2018).
Price: the company offers its product in low range as compared to their rivals in order to
attract more number of customers. The company also offers various discount vouchers of sales.
Promotion: as the company offer online products so it uses modern form of methods
such as advertising, websites etc. These promotional methods are help to attract more number of
customers.
Competitive Analysis:
Basis of difference Crocus Carnation Edelweiss
Product/ Services Company offer Offer only Dianthus Offer Alpinum type of
Illustration 4: 4 Marketing Mix
Source: Marketing mix 4 Ps, 2018

varieties of flowers
and plants.
types of flowers
through offline mode.
flower which is not
found in other
company.
Promotional
Activities
Uses only modern
form promotional
methods.
Uses both modern as
well as traditional
form of promotional
methods.
Uses mostly modern
form of promotional
methods.
Price Company offer special
discount vouchers and
club cards for their
regular customers. The
prices of company are
low.
Price is high as
compared to others
It offer product at such
a high range.
People Mostly target
youngsters because
they use social media
and prefer online
products.
Mainly target young
generation of people.
This target all category
of people .
Financial Statement:
Financial statement is generally used to determine exact or net income in a year. It is aid
to determine the net financial gain over expenses. This chart help to know how much extra
money is required to expand the business over the particular time period.

P5. Assessing exit and succession options with its benefits and drawbacks
There are so many reasons to shut the business, Such as, status, health issue, change of
mind or interest etc. Exit and succession options come when the business is not growing well
from last many years. Succession planning is performing by which an individual passing to its
family members. There are so many ways of succession planning and some of them are mention
below:
 Passing it to successor: this is an exit policy that help an owner to sustain their owns
involvement by passing its businesses to their family members because it help to keep
their business in long way and even an owner can give their advice to a successor (Exit or
Succession option for Small business, 2018). Identifying or evaluating potential
candidates should be done in careful way.
Benefits: Help in protecting its brand image as it is. Therefore, also aid to assign new family
member in order to explore their abilities.
Drawbacks: hard to find a suitable person for a business and there is more chances to spoil an
brand image of a company if owner chooses wrong successor.

 Transferring Ownership: The method is utilized by the owner if they did not have
options for the peer in a family to adopt the concern. By using transferring ownership,
company owner can hire new team who work for a company to acquire all parts of a
business (Bridge and Dodds, 2018).
Benefits: this method help to protect legacy and business independence. Reward management is
the best method for the company long term support.
Drawbacks: it may affect business morale and performance. The management team may has
limited access and as a result it may affect the price of products,
 Selling a business: Sell a business is the most suitable strategy that help to sold out all
the assets of a company and even sell it to a third party but an owner of a company must
complete all legal formalities in order to wind up a business.
Benefits: reduce the involvness of a owner into a a business
Drawbacks: it takes too much time to select interested third party who may take whole business.
Exit strategy taken by owner of Crocus and some of them are mention below:
 Liquidation: A simplest method to sold out all the asstes of a company in order to wind
up a business and this is simple and easy process (Channon and Jalland, 2016).
Benefits: have low liquidation cost and after liquidation there is no burden of debt repayments.
Drawbacks: this method gives lowest return on investment and consider quite expensive method
to wind up a business and require lots of formalities to winding up.
 Merger or Acquisition: It is most important strategy which Crocus can be taken in order
to gain more profit for a company and by merging it with another company will help tio
raise its productivity with profitability. Merger or acquisition is the best method which
help to run a business in more effective way.
Benefits: reduce in risk by merging with another company. Help in decreasing the level of
competition and overall enhance the performance of a company (Darroch, 2014). require less
promotional techniques.
Drawbacks: By merging, there is a chances to loss some skilled employees who help in
enhancing productivity level. There is chances to raise conflicts between staff.
M4
Crocus may uses variety of exit options such as merging, successor planning etc. while
successor planning is helpful for Crocus to pass their own existing business to a family member

is the most simplest way to take an exit and it is too easy to implement this method. Crocus may
be hire some management team in order to explore their talent into a business.
D4
Various exit strategy which Crocus can be used such as cal sell its enterprise to a third
party and this is consider easy method but there is no involvement of an owner and on the other
side by using this exit and succession planning quoted company can easily find a suitable person
who may opt their business and can be grew or take it further level of success (Bryson, 2018).
CONCLUSION
By summing up above report it has been concluded that growth opportunities plays
significant role in Crocus expansion. These help to gives a positive direction and it includes
various key aspect which help to raise company's productivity and profit . As Crocus, grew its
active business by introducing online mode of business so it is necessary to determine some
factors . There are so much key consideration which affect the development chance of Crocus
much as financial viability, budget, sales planning and marketing channels. The report also
describe various sources of funding to start a new business such as bank loans, personal savings
etc. The report also develop business plan with different strategic objectives. Report assess
various ways to return an exit strategy for a company.

REFERENCES