Planning for Growth: Evaluating Opportunities and Funding Sources

Planning for growth

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................2
LO 1......................................................................................................................................................3
P 1 Key consideration for evaluating growth opportunity...............................................................3
P 2 Evaluate the opportunities for the growth.................................................................................6
LO2.......................................................................................................................................................7
P 3 Different sources of funding in organisation.............................................................................7
LO 3......................................................................................................................................................9
P 4 Development of business plan...................................................................................................9
P5: Exit and Succession Options...................................................................................................12
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14

INTRODUCTION
Growth planning is a very essential tool which is used by owner of organization so that they
plan a track growth revenue. There are a lot of changes which are taking place in organization so
that business can get a competitive advantage but it has to be controlled properly. Organization
which is going to be discussed in this report is Bonmarche which belongs to fashion industry and is
a private organization. Number of employees working in organization are more than 4,000 and there
are more than 300 stores of Bonmarche.
Study is going to consist of growth plan after Brexit in country. Through Boston consultancy
group and McKinsey matrix the growth opportunity can be determined in Bonmarche. Ansoff
matrix will help the organization to understand the growth opportunity as well so that there are
changes which take place in the organization. Report will also discuss funds and exit strategies
which are very important for the retailing company to understand so that they can make the right
decisions accordingly which will help the retailing organization to expand themselves in country.
LO 1
P 1 Key consideration for evaluating growth opportunity
Bonmarche has faced a negative impact on economic outlook because of Brexit which has
took place in country. There are a lot of opportunities which organization can make from Brexit
which has taken place which can be better understood by using Boston consultancy matrix. BCG
was introduced by Bruce Henderson in 1968 so that the organizations can analysis their products
and portfolio better. McKinsey matrix is used to analyse the investments which the organization
should make in business unites. Needs and development of portfolio can be understood of
organization better with help of this matrix.
Difference between the two is that one is not so time-consuming and can get the results
faster which is by using the BCG matrix whereas McKinsey matrix will help the organization to
have a better and detailed result as compared to BCG.
Boston Consultancy Matrix
This matrix is build so that businesses in market can analysis for long run strategic planning.
Growth opportunities can be understood better weather business needs to produce more products or
get new ideas in products by reviewing portfolio. There are four divisions which are present in
matrix including dogs, question marks, stars and cash cows (Mohajan, 2017). Products of
Bonmarche after Brexit has shifted towards dogs which is products of business is having low
growth and low market share. Opportunity for organization is to shift from dogs product to star
products once again since that will be a better growth plan for organization in market. Dogs is that
company is not having market share and low product growth which is making company have a

negative economy for organization.
 Dog Products
Dogs is when products of the restaurant have growth and low share in market which
Bonmarche is facing after Brexit took place in country. Due to Brexit organization has not been
successful in producing right products since they lost a lot of skilled employees and customer
satisfaction also reduced.
 Question Mark Product
This is making the organization have low shares but high potential for the growth in market.
This is a very uncertain position for retailer which will affect in long run for the products which
Bonmarche will come up with.
 Cash Cows Products
In this high shares in market is present with low growth of the products. It is very important
for Bonmarche to get a growth of the products in market and that is a very important factor for them
(David, David and David, 2017).
 Star Products
To make profit it is very important that company increases market growth and shares in
market which is present in star product. Shifting from dogs product to stars product will take time
but once this happened then retailer Bonmarche will make a lot of profit. This can be done when
right strategies are implied within organization for proper functioning. Expanding in new category
for men would be a great advantage for organization.
McKinsey Matrix
There are two dimensions which are present in this matrix which are industry attractiveness
and competitive strength of a business. This will help the industry to find out if they need to invest
or not in market. Hold is another aspect through which the organization will have a better look out
in market and the business will not have to face loss.
Step 1: Industry attractiveness
The factors which are involved and determined in this are market size, growth rate, low
competition, PEST factors and industry profitability. The factors which are going to be covered in
matrix are industry growth, low competition and high profitability.
Rate factors
These factors are weighted as decided which is high profitability of the industry is 6 out of
10 but as per the market it is 5 out of 10. Low competition is rated as 1 out of 10 but as per the
market it is 2 out of 10 and industry growth rate is 3 out of 10 and as per the market it is 3 out of 10.
Weighted Score
As the above rates and weights the total score can be taken out which is (weight x rate=