Planning for Growth: Evaluating Growth Opportunities and Funding for Oak Cash & Carry

PLANNING FOR
GROWTH

INTRODUCTION
Planning for growth is an essential term for every business. It is an effective business
strategy that ensure the business enterpriser to plan and track their growth in their profits. It
helps in adopting the changes in the industry with its limited resources that is driven by digital
disruption and differentiate from rivals. Oak cash & carry is one of the SME company in the UK
that was proposed in 2000, Banbury. They deals in wholesale of foods, tobacco and foods and
offers a wide range of products for retailers, caterers, offices, newsagents and other businesses.
This report consider the growth opportunities of the firm, and various methods of sources of
funding to build a business plan to increase the growth by profit margins. And at last suggest the
exit options for the firm (Davoudi and Sturzaker, 2017).
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In today's environment every business needs to earn more profits and growth by selling
their products to customers. It is very essential term to evaluate the growth opportunities for
SME companies. In oak cash and carry, manager need to evaluate the growth opportunities for
long term survival in the market place. To be successful firm needs to innovate new product and
expand and explore their market in the new area or within the local area and boost the market
share and growth. For examine the opportunities in growth manager apply Bostan consultancy
group model that are described below(Flannery, Clarke and McAteer, 2019).
Bostan consultancy group matrix
BCG matrix was proposed by Bruce Henderson since 1970. This matrix helps in long -
term strategic planning and giving the knowledge about products and services on the basis of
high and low performance that is depending on the market growth rate and relative market share.
This matrix is very useful to know the growth potential for the particular product. It is totally
based on the products (How to use the BCG Matrix model).
 Stars product- These are those goods and services that is related to high growth with high
market share. To maintain the position in the competitive market consumes a ample
amount of money by selling their products to customers(Davoudi and Sturzaker, 2017).
In context of Oak cash & carry, star products includes groceries that consumes more
profit and large market share in the market. There groceries products covers major area of
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the market place. In this firm should make the top priority for their groceries products to
maintain their market share of goods in star quadrant to increase the sales and profits.
 Cash Cows- This product matrix is related to those products that contains low growth
market with high market share. Company should divert profits from cash cows to help
defend market shares of star quadrant products. In context of Oak cash & carry BBQ are
considers in this quadrant. This product provides low growth market and high market
share in the current market. To evaluate the growth opportunities in this sector manager
can require little investment to maintain their high shares (Flannery, Clarke and
McAteer, 2019). Question mark- This is also known as a problem child in this goods in high growth
market with low market share. This quadrant contains weak positions in the market to
increase the market position firm invest more on the products. In context of Oak cash &
carry, product like beverages are related to this category and a problem child for a
company. To evaluate the growth opportunity in this step manager need to invest more on
this like innovate beverages and become a star product that earns more profits and large
market share in the market (Olesen, K. and Carter, H., 2018).
 Dogs- This are those products that are low growth and low market share. This category
products are waste for the company. In this manager divest from the product. In Oak cash
& carry Tobacco is the product that are waste for the firm. Manager decide to control the
production of this product and divest it from the range entirely. In this quadrant manager
can evaluate the growth opportunity by removing the tobacco from their product range
and invest more on star product so they earn more market share and market growth (Pan,
H. and et. al., 2019).
GE Matrix
This matrix was developed by McKinsey and company consultancy group since 1970s. It
is also called nine cell grid which is based on industry attractiveness and business units. It is the
improved version of BCG matrix. In Oak cash and carry, manager used this matrix to analyse the
industry attractiveness and business units that is explained below(Friedmann, 2018).
 Invest/ grow- This cell consider the high industry attractiveness and high business unit or
product market. It includes start category products which covers high market growth and
size of firm. In context of Oak cash & carry, company invest more on their groceries
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