Planning for Growth TABLE OF CONTENTS INTRODUCTION 1 TASK 11 P1 Key consideration of opportunities of the business of SDK Jewellers

Planning for Growth TABLE OF CONTENTS INTRODUCTION 1 TASK 11 P1 Key consideration of growth opportunities of the business of SDK Jewellers1 P2 Opportunities of growth by implementing Ansoff's Growth Matrix3 TASK 24 P3 Presenting sources of fund available for SDK Jeweller with benefits and drawback 4 TASK 37 P4 Business plan for SDK Jeweller 7 TASK 413 P5 Exit options for small businesses with its merits and drawbacks 13 CONCLUSION 15 REFERENCES 16

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration of growth opportunities of the business of SDK Jewellers......................1
P2 Opportunities of growth by implementing Ansoff's Growth Matrix ....................................3
TASK 2............................................................................................................................................4
P3 Presenting sources of fund available for SDK Jeweller with benefits and drawback...........4
TASK 3............................................................................................................................................7
P4 Business plan for SDK Jeweller............................................................................................7
TASK 4 .........................................................................................................................................13
P5 Exit options for small businesses with its merits and drawbacks........................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Planning for growth is way through which company are making strategy for the
development for employee as well as entity. This is one of the ways to develop business and it
can happen by applying changes in internal environment. This report will study key
considerations of growth opportunities of SDK Jewellers. It will discuss about opportunities for
growth by implementing Ansoff's Matrix.
It will explain sources of funding which are available for SDK Jewellers with its merits
and drawbacks. This will study about making of business plan that includes financial information
and strategic objectives for growing business. This report will discuss exit plans for each option
with its advantages and disadvantages.
TASK 1
P1 Key consideration of growth opportunities of the business of SDK Jewellers
For analysing growth opportunities of SDK Jewellers, there are two ways for which firm
can develop competitive advantages for business. This will help in reducing the risks involved in
company. These methods are PESTLE Analysis and Porter Generic Model that help in making
new strategies for development of business. By implementing these two models, a firm can move
ahead from competitors.
PESTLE Analysis
Political - under political factor, there are changes in rules and regulations which are
made by the government and legal authorities. Similarly, issues which are addressed here that
affecting the firm. Some examples which are included under this are political stability, tax
policy, employment policy, trade restriction, tariffs and many more. In UK rules regarding of
buying or selling of gold and silver are incorporated with various laws and restrictions. There is
need of certain licences for trading of gold and silver (Pred, 2017). These factors are macro
factors which are affecting on the external basis.
Economical - These factors affect the business by its operations and decision-making.
Like if entity know or predict by the manager that recession can be prevailing in market place
then this can help in taking of decision about increasing or decreasing numbers of employees in
the company. Some examples are economic growth, interest rates, inflation rate etc. that affects
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the operational efficiencies. If inflation rate increases then prices of all commodities increase and
it affects the sales of SDK Jewellers. Price of jewellery went high and consumer has not enough
buying capacity.
Social - this factor consists of cultural and demographic factors like age, population
growth rate, and emphasis on safety and career attitudes. SDK Jewellers is in UK in that case
jewellery is made according to preference of people living there. This will increase satisfaction
of client and ultimately goodwill of company also goes high.
Technological - this factor includes automation, technology incentives, rate of
technological change and R&D activity. These activities affect cost and quality of product that
firm is making. If SDK Jeweller use advanced technology which will maximise the quality of
jewellery. It will increase brand image of entity and give a chance to gain competitive
advantages and reduces risk involved in the business (Fulong, 2015).
Legal - this factor consists of consumer law, employment law, discrimination law and
health and safety law. This factor influences on daily operations of business, demands and costs
of entity. SDK Jewellers is following all laws that are required to follow in the business in that
case company can make more contacts in the industry and create good image in front of the
society.
Environmental - it includes environmental factors such as weather, climate and many
more. Nowadays, there are lot of changes prevailing in climate. Companies have to follow duties
towards society while doing business. SDK Jewellers is following CSR activities that help in
gaining image in front of society.
Porter’s Generic Model
Cost leadership - this strategy focuses on setting lowest costs incurred in production
activities. This helps in reaching mass audience and help in maximising sales of an entity. These
low cost products are acceptable to the customers. Most multinational companies are providing
the product at low cost and majority of the clients are accepting this. However, SDK Jewellers is
a firm dealing with gold and silver can't sell its products at too low cost to attract customers due
to the company has set prices of the product already which can't be changed.
Cost Focus- Jewellery shops are not much in market which creates monopoly in market
and can set prices which they find suitable. Like high price are set by owners of the jewellery
shop which is helping in increasing the revenue of the company.
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Differentiation Focus- in this type of strategy, a company is targeting entities for making
firm different from others in one of the market segment. For implementing this strategy,
company ensures that many consumers have different needs and by fulfilling them leads to a
good position in market. SDK Jewellers is aiming only those market segments in which demand
of the product is there, which helps in focus only particular segment (De Roo, 2017).
Differentiation leadership- this is one of the methods which are selected for making
identity in minds of the consumers in unique way. Premium price are charged on the product
which represents extra features and higher production costs charged on clients. In SDK
Jewellers, products are positioned in minds of the people through advertisements in innovative
such a way which will remain in the mind of people for years.
P2 Opportunities of growth by implementing Ansoff's Growth Matrix
Ansoff's Matrix was developed by Igor Ansoff in 1957. This includes four areas that are
market penetration, market development, product development and diversification.
These four are discussed below:
Market penetration- company implements this strategy when there is a need to
implement the growth scheme because most companies are making same products and selling it
on almost similar prices. For maximising the market share, a company must use new methods.
SDK Jewellers is selling similar products like all other companies but they can make variation in
designs and prices to attract customers.
Market development - in these companies can aim new market with old products which
helps in getting better advantages from it. This helps in expansion of business. This strategy is
helping the entity to develop the market where the company has not sold the earlier. SDK
Jewellers is selling the products to the market segment where company has not sold earlier basis.
This will help in making the expansion of the firm which will help in making the firm move
ahead front from the competitors.
Product development -in this type of strategy company is having enough market share
in which firm is doing the business. For expansion purpose company needs to launch the new
products. There is requirement of product development because company knows the market and
habits and preferences of the customers are known can easily meet the demand of that
(Brinckmann and Kim, 2015).
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Diversification- in this company is making the new product and launch in the market
which entity has never entered. This is facilitating the entity for making different products for
aiming new market segment. Like in Samsung when started doing its business in phones but
slowly this has diversified products for entering in the new market segment. Now dealing with
electronic items as well. In SDK Jewellers is also trying to enter the new market. By diversified
products help in making good image in front of the company. This is facilitating the entity in
making the development of the organisation.
TASK 2
P3 Presenting sources of fund available for SDK Jeweller with benefits and drawback
It is very important to have a good financial support to fulfil l all the requirements in the
business which is necessary for the expansion of the business in the market. It can be achieved by
various funding method available in the industry. In the context of SDK Jewelers, it wants to
expand its business by introducing new, the latest jewellery design with new latest 3 D
technology and Computer Aided design (CAD) technology. But the company needs fund for the
expansion of its existing business. Funding is a process which is used by any organization to get
financial support (Bridge and Dodds, 2018). It helps in providing financial resources, usually in
the form of money, or other values such as effort or time, to finance a need, etc. There can be
various ways or methods in which funding can be done by the organization to fulfil their
requirement and this are mentioned below:
Personal Saving or Self- funding: it is the initial step to raise fund for the business.
SDK Jeweler uses this option in order to expand its existing business. Owner can use this option
by introducing cash or with collateral on assets. This proves to investors and bankers that owner
have a long-term commitment towards a project and even ready to take risks.
Advantages:
 There are no rules and regulation followed by the owner.
 The greatest benefit of this funding method is that it is done by own self.
 There is no amount of interest to be paid as in the case of take loans from banks.
 Gives more control from other sources of funding (Sources of Fund, 2018).
 Investing own amount in a business will help to avoid extra spending during expanding.
Dis-advantages:
 There are a chance to loss all the amount which is invested in the business if it falls.
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 The biggest drawback of self funding is that not everyone have enough capital to invest in
a business.
 Using self funding as an option, owner has to create own contacts and channel of
distribution.
Investors: It is the another option available for funding. Investors are those people who
raise funds for those persons who are financially weak and needs funds to invest and expand
their business but in return they take some share of business. They are the active partners who
silently invest some amounts and wait for the returns (Brinckmann and Kim, 2015).
Advantages:
 Choosing this option is beneficial for SDK Jeweller because investors have knowledge
about the business and they know how to run it in an effective manner.
 They have big networked of communication which help to create big channel.
 They did not want interest on the invested money.
 Have good management skills which help to take quick decision.
Dis-advantages:
 The biggest disadvantage of investors is that it takes too much time to find suitable
investors for the expansion of a business.
 They take complete control over a business (Olesen and Carter, 2018).
 Owner has to share a business because investors are active partners.
 Share the profit whatever earn by a business.
Bank Loans: Now it is become most used source of capital. Bank give loans to small and
medium size business only. It is another best option for SDK Jeweller to choose one bank that
meet all specified needs.
Advantages:
 Maintain good and healthy relationship with all the customers.
 Some token amount is to be paid at initial stage which will be carry forward in next
instalment.
 It is the simplest and easy method after self funding.
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 Good treatment with bank loans will helpful to increase the chance of receiving bank loan
again.
 Not take any amount of profit from the borrower.
Dis-advantages:
 Takes too much time on initial formalities.
 Whether the business will be successful or not, the payment should be clear on fixed date
only.
 Charge high amount of interest from the borrower as compared to others.
 Long term loan have some term and condition which will not be fulfilled by borrower
that is why bank generally preferred to give loans to small enterprise only.
Venture Capital: Venture capital are those investors who hold the shares of a business.
They put a large amount of money in exchange for an equity in a company (Wu, 2018). So, SDK
may be chooses this option as a source for expanding a business in next further level.
Advantages:
 They give advice in order to run a business in effective way.
 They invest larger amount of money in the business.
 Have a vast network of channel including partners and future investors.
Dis-advantages:
 It takes long term to find it.
 Process is too long to follow.
 It is uncertain form of financing.
Among all source of funding, SDK Jeweler chooses personal saving and takes loan from
bank because it is an easy and simple method among all other. As the company wants to
introduce new jewellery design by using CAD method and latest 3 dimension technology which
needs money to invest, so it chooses this options. This will also help them stay in good position
in market.
TASK 3
P4 Business plan for SDK Jeweller
Overview: Presently, SDK jeweller offer varieties of jewellery in low and affordable
price. It offers stylish jewellery and watches to their customer. But now it wants to expand its
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business by introducing new stylish of jewellery by using 3 D animation and latest CAD
software technology which help to make attractive and unique articles which no other company
offer. SDK always try to introduce new and innovative articles in its store so that it will help to
increase its sales as well as profit.
Goals or objectives:
 To maintain strong, healthy and long term relation with the existing as well as new
customers.
 To enhance its customer base.
 To increases the selling power.
 Provide latest and stylish jewelry to their customer in low and reasonable price.
 To expand the business at national as well as international level. To create brand image in market.
SWOT Analysis:
Strength:
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Illustration 1: SWOT analysis
Source: SWOT Analysis, 2018

 Company offer best and stylish jewellery in low and affordable price than others.
 Facing tough competition (Bridge and Dodds, 2018).
 Have excellent promotional activities and mostly uses modern form of promotions which
includes social sites and websites.
 Having excellent inventory management because of large amount of articles present in its
store.
 Most famous in making the best diamond jewellery.
 Use technologies in order to manufacture the latest article.
Weaknesses:
 Did not use CAD software which is now become used in every store for the
manufacturing of the latest new article.
 Facing uncertainty in financial market fluctuation.
 Facing tough competition and as result have limited market share.
Opportunities:
 Expand its brand at international level.
 Improves its growth rate and profitability (Wu, 2018).
 Offer best and stylish product and services to their customers and researches should be
done in order to identify the demand of people.
 Develop more new products in order to make its brand popular in the country.
Threat:
 If customers purchasing power will be reduced than it will affect the business internally.
 Competition faces from family owned business.
 Too difficult to secure retail store in a market. Many brands already settled in a market and it is quite difficult for SDK Jeweller to
establish good image in new market.
PESTLE Analysis
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Political Factors Economic Factors
 The political condition of UK is quite
stable and SDK Jeweller store
undertake its business at international
level.
 The company follow all the pricing
regulation of government so it does not
affect the price of a company.
 Sudden increase in tax rate will also
affect the price of offered products and
services.
 Inflation rate will affect the buying
power.
 Recession is force customers to save
the money and avoid extra expenses
and this lead to affect the sales of SDK
Jewellery (Olesen and Carter, 2018).
 If the cost of infrastructure of jewellery
store industry is high then it will
increase the price of all articles.
Social Factors Technological Factors
 Now people consider diamond and gold
jewellery as a luxury fashion product
which creates confusion for SDK what
 Being an online store, it uses all the
latest technologies which help to attract
wide number of customers.
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Illustration 2: PESTLE Analysis
Source: PESTLE Analysis, 2018

to manufacture.
 Multiple lifestyle and sudden change in
customer preferences will affect the
sales of a SDK Jeweller.
 Company should understand the latest
culture of society and then implement
those into a business work (Johnson,
2016).
 The company need to adopt various
techniques such as CAD software in
order to improve its article.
 It is necessary for the company to cope
up with the latest 3 D designs that will
help to decrease the time as well as
speed of manufacturing.
Legal Factors Environmental factors
 The company must follow laws related
to jewellery such as copyrights, patents
and intellectual property law.
 Company must follow discrimination
law, employment law, health and safety
law.
 SDK jeweller focus on sustainability
law which includes environment laws
and liability laws.
Marketing Mix:
Product: SDK is retailer small store who offer watches and jewellery to their customers
in online mode but now wants to expand its business by introducing more new stylish article by
using the latest technologies such as 3 D designs and CAD software.
Place: to choose the right place is the most difficult task. SDK jewellery chooses to
introduce new stylish design in its existing online store because it will help to attract more
number of customers. It offers different designs of all category of people including men and
women.
Price: SDK Jewellery offer low price product as compared to its rivals price. It offers
various types of discount vouchers and coupons to their regular customers so that it will help to
enhance its customer base.
Promotions: the company chooses modern method to maximizes the total turnover. This
method includes various types of activity such as through social sites, websites, advertising and
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brochures etc. this activity will help to let people know about the products & services offered by
a company.
Competitive Analysis
Basis of difference SDK Jewellers Net-a -Porter Brown's Fashion
Product/ Services Provide different
styles of jewellery
specially in diamond
and offer watches for
both men and women.
Provide fantastic range
of women's jewellery
in offline mode with
the latest designs.
Offer different
jewellery from other
companies which
includes gold, silver
and diamond jewellery
in online mode of
business.
Promotional
Activities
Being online store it
uses only modern
method to increase the
sell such as social
sites, websites,
advertising etc.
Only uses traditional
mode of promotional
activities (Grant,
2016).
Earlier uses traditional
method but now uses
modern method.
Price Offer special discount
to its VIP and regular
customers and offer
low and affordable
rates as compared to
others.
Price is quite high as
compared to others
companies.
It offers its product in
high range and offer
special discount
coupons for its
customers.
People Target all age group of
people which include
old, small and young.
It mainly targets
young age group
people in order to
increase its sales.
Target middle age as
well as young
generation people.
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Financial Viability:
It is the most important factor for any organization. Financial resource is the base for any
company to start new business. Without having a proper financial support, it is impossible to
expand their business in the market. Financial statement help to determine the actual position of
a company and it will help to calculate the approx amount which they might need for the
expansion. By using income statement, SDK Jeweller can easily determine the net income over
the expenses. Following statement will help the company to plan its financial planning.
TASK 4
P5 Exit options for small businesses with its merits and drawbacks
For shutting down of the businesses there are many options for the firm some of them are
acquisition, liquidation, selling to the friendly buyer etc. these help the firm in closing of the
businesses who were suffering from losses (Bridge and Dodds, 2018). These are discussed
below:
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Liquidation - in this exit option government has appointed the liquidator for realising of
the remaining assets of the firm. This will help the owner in distributing the realised money to
the shareholders, creditors and many more.
Advantages
 This is one of the easiest way to shut down the business.
 There is no transfer of ownership is involved in this process.
 In this no legal cation can be claimed in the business.
 all the outstanding debts are written off
Disadvantages
 In this company's all assets of the business can be sold.
 If any of the assets are not remaining for starting of the new business in that case
liquidator can force directors to pay the debts.
 After liquidation all the staff members will be left in that case for starting of the new
business will be difficult.
 If any of the director has given the personal guarantee in that case individual is liable to
pay that debts (Boserup , 2017).
Acquisition- this is most common exit options which company can implement in doing
the shut down of the business. In this another company desires to buy the entity. In this owner
can decide the price of the company. Most of the companies are buying the entities for the sake
of development of the business. This is one of the most successful acquisitions are Hinchliffe
acquires Torq Jewellers and Mavodo acquires Olivia Burton.
Advantages
 More value is gained by the business then anyone is giving to the firm.
 Market power of the business will increase.
 In most of the cases company is fulfilling the expectations of the business.
 It will minimise the entry barriers.
Disadvantages
 When acquisition is done in the company which resultant in the mixing of the cultures in
the entity. It will become difficult for the employees working there.
 After acquisition company agreements make the entity rich for some but after that life of
the organisation become boring.
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 While acquiring the company some issues of the has to face by the company. It will
complex for the employees working in this type of the environment.
Selling to the friendly buyer- it means company is selling the own entity to the desirous
buyer of the entity. It can be possible that buyer is one of the known person who wants to buy the
company. This is helping the entity to recover from the losses.
Advantages
 Buyer is known than it will be helpful in meeting the formalities.
 New owner is known by the old owner in that case individual make changes in the
strategies of the company not the whole (Barnett , 2017).
 it is good to sell the company to the trusted hands then to the stranger
Disadvantage
 More trust to the person is harmful for the business.
 Selling into the trusted hands can make firm to spend more which entity don't want to.
 Company is sold to the family in that case entity will be ruined and emotions are given
priority than any other.
CONCLUSION
From this report it can conclude that for determining growth opportunities of the business
PESTLE Analysis and Porter Generic model are used which help in reducing the risk involved in
the SDK Jewellers. This report also studied that exit options of the business which help in
shutting down of the business. This has explained in the report that growth opportunities by
implementing the Ansoff's Matrix which helps in gaining competitive advantage. This report has
concluded the available sources of funding which are needed for the SDK Jewellers. Some
funding options are in this report business plan is made which facilitate in the financial
information and strategic objective for growing up the business. This plan is made for overall
development of the business.
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