Article On Planning For Growth Assignment Sample

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysis of key considerations for evaluating growth opportunities....................................1
P2. Evaluation of growth opportunities applying Ansoff's Growth Vector Matrix.....................3
TASK 2............................................................................................................................................5
P3. Assessment of potential sources of funding available to businesses.....................................5
TASK 3............................................................................................................................................6
P4. Designing of a business plan.................................................................................................6
TASK 4............................................................................................................................................7
P5. Assessment of exit or succession options for small business................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning refers to the procedure which is associated with assessment of all the tasks and
processes required to perform a certain activity. In a business context, it is a highly important
that organisations plan their businesses in a way which help them in sustaining for a long term
within the market. It is essential that companies plan their business activities to ensure proper
and timely growth of their business in such a dynamic business environment. The report below is
based on Oak Cash & Carry which is an organisation dealing in wholesale of groceries within the
UK market. The assignment is divided into two parts, where the first part deals with analysis of
key considerations for evaluating growth opportunities and application of Ansoff's Growth
Vector Matrix. This part also includes assessment of potential sources of funding for the
organisation and designing of a business plan. Apart from this, the other part of this report deals
with potential exit options for the business enterprise.
TASK 1
P1. Analysis of key considerations for evaluating growth opportunities
For a small business enterprise like Oak Cash & Carry, it is very important that the
business enterprise perform effective analysis of several key considerations which would further
help them in evaluating the growth opportunities available for them within the market.
There are several key considerations for Oak Cash & Carry which is necessary for
evaluating their growth opportunities. For the same, there are several analytical frameworks
which are being used, such as PESTLE Analysis, Porter's Generic Strategies and a brief analysis
of the core competencies of the business. All these frameworks are discussed below:
PESTLE Analysis
This framework is an analytical tool which is utilised effectively for scanning the external
environment, which must be considered in order to effectively analyse the growth opportunities
available to the organisation outside their inner circle. This framework is discussed as under: Political Factors: These factors undertake the political scenario which is predominant
within respective country of the company (Mason, 2015). Oak Cash & Carry operates in
UK, which currently is facing unstable political scenario and several trade restrictions in
Europe due to Brexit. However, the event of Brexit does not affect the Foreign Direct
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Investment which is an advantage for Oak Cash & Carry to conduct their businesses
effectively despite unstable political pressures. Economical Factors: These factors involve the economic performance of a nation. Brexit
led to decrease in the value of Pound, which is a backlash for each and every business
enterprise operating within the country. However, with unemployment on a rise due to
closing up of several multinational organisations, this could be an advantage for the
organisation to hire skilled and talented employees which would contribute to the
company's sustainable growth (Daniels and Lapping, 2016).
 Social Factors: All the social beliefs, norms and trends are covered under these factors.
One prominent opportunity which is available for Oak Cash & Carry within the country
is that there is a rise in organic vegetables and other healthy grocery items which could
shift preferences of the public towards this organisation in case the firm provides
products that fit the current trend.
 Technological Factors: These factors are generally includes in the different kind of
factors that is advancement in technologies, higher uses of online system and so on. In
reference with the Oak Cash and Carry, as this respective organization carries lots of
stores within the market of UK. For this they are applying effective and efficient
technologies for their customers so that they can easily purchase by digital card and get
higher satisfaction.
 Legal Factors: It always involves in the different factors as government rules and
regulation. So that herein, company is required to follow these rules and regulation in
order to make their position better within the UK market. Therefore, organization needs
to follow all this laws (Rodríguez-Rodríguez and et. al., 2016).
 Environmental Factors: Basically it influences the company’s system and their business
operations which includes in several kinds of factor like climate, situation in the market
as well as cost. Therefore, company is needed to make their functions as per the market
demand so that they can achieve their goals and objectives in a perfect manner.
Porter's Generic Strategies
It is all about companies like how they are preparing strategies for gaining more and
more competitive advantages across the globe. There are different kinds of generic strategies by
which respective organization can get their desirable results in an effective manner. Apart from
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this, strategies involves in different parts like cot leadership, cost focus, differentiation and
differentiation focus as well. There are different strategies, which are given below:
Cost leadership strategies: It is generated by Porter’s five forces, which makes to helps
companies in order to formulating their proper edge of cost so that present company can get their
sales value and able to make better scenario for their organization. On the basis of this Cash and
Carry can easily enhance their profits by giving proper benefits to their customers in an
appropriate manner (Lê and et. al., 2016).
Differentiation strategy: It generally involves in the making effective products and
services in order to attract lots of customers and influence their competitors in a negative way. In
reference with the Carry and Cash organization as they are making good approaches and
practices in order to develop new research within the industry. With the help of this capability
they can generate their appropriate effective sales by which they understand their benefits for
investing money.
Focus Strategy: According to this strategy companies can concentrate on their specific
target and objectives in a proper way. In reference with the Carry and Cash Company they are
focusing on their overall strategies by which they can fulfil their customer needs and able to
formulate unique product on low cost so that consumers can get afford their products in a perfect
way. On the other side, company is able to achieve their lots of marketing strategies so that their
competitors can get influence in a negative way.
Competitive Advantage through Core Competencies
In the current period of time there are lot of companies who are working for the same
target or gaining good objectives in a proper way. Therefore, there are different competitors for
the firms which reflect on the internal competitive reference while conducting the core
competencies towards the strategic approach. In reference with Cash and Carry Company they
are applying proper good strategies in their organization system in order to gain lots of attraction
towards customers. With the help of competitive advantages through competencies they can get
higher sales and revenue in a perfect manner. Therefore, all these competencies are necessary in
order to gain competitive advantages in an effective manner (Baschat, 2018).
P2. Evaluation of growth opportunities applying Ansoff's Growth Vector Matrix
Ansoff matrix is also known as the market and product matrix by which they can show 4
kinds of options in order to increase company’s growth in a perfect manner. Along with this it
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also helps companies to highlight their risk factor for the specific product growth strategy. On
the basis of this Cash and Carry can make proper strategies by which they can give better
services to their customers in a perfect way. This is very much effective tool that generates
proper tools in order to meet competitive advantages towards the company. On the other hand
Ansoff matrix is the way which identifies existing product within the firm as well as showing
proper marketing strategies by which companies can easily enter in to the new market with their
new and attractive product.
In relation with Ansoff matrix there are four kinds of growth strategies, which are given
below:
Market penetration: It refers to the selling more and more products to potential
customers of firm as well as existing customers. It is very much needed in every kind of business
as it is the way of enhancing the customer’s loyalty towards the product for a particular brand. In
reference with Cash and Carry they are applying this strategy for their business growth in order
to earn higher sales in a systematic way.
Market development: In order to attract huge number of customers this is the best
approach for making existing products in the firm. According to the respective company they
always make better services in order to give higher satisfaction to their customer so that they can
easily earn proper profit in a short period of time. According to this company mainly needed to
check proper location in which place they can develop their new product easily for gaining future
goals (Leick and Lang, 2018).
Product development: It helps to develop new product within the firm. As per the Cash
and Carry they sell their product to customers for giving satisfaction to them. On the basis of
new product development they always make better and attractive grocery items for them in order
to achieve their specific target in perfect way.
Diversification: It refers to the higher strategy of risk and according to this strategies
company always sells their new items within the market for earning better outcomes. In
reference with the respective company this is very helpful approach for them because it helps to
look forward and influence them to gain higher sales in an appropriate manner. It is also include
in the geographic locations and market area in which present company can easily expand their
market for new growth.
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Therefore, all of the above strategies are very much important for Cash and Carry in
order to applying Ansoff’s matrix by which they can easily expand their market in some
countries and able to increase their appropriate growth in a perfect way.
TASK 2
P3. Assessment of potential sources of funding available to businesses
Finance is the very important term of every business by which they can manage their
work accordingly and able to make lot of strategies for providing several benefits to their
customers. In reference with the Cash and Carry organization they also require lot of money in
order to reach higher goals. According to this financial terms divided in to two parts wherein,
first term refers to the Equity finance which means exchanging a portion of the ownership of an
business. Along with this second term is Debt which means managing the financial resources in
an appropriate manner (Rudolf, Kienast and Hersperger, 2018). There is several kind of funding
sources which all are available in all type of businesses, those are listed below:
Personal savings: This is the main important thing of every business in which companies
have fund to save and make effective an appropriate strategies for better future aspects. It also
includes in profit sharing and early funds. The main advantage of this that they do not have to
pay principal amount nor interest to any other person. Where as drawbacks is If business do not
become successful they may loose all their money.
Home equality loans: It totally depends on the home loans in which home people are
responsible to make their investment within the given period of time. As per this company can
get higher values by giving home loans to people so that they can enjoy their life without any
kind of pressure. Therefore, these sorts of loans are necessary for people and companies as well.
The advantage is that it has low and fixed interest rate in compare to another loans and easy way
to obtain huge sum of money in less time. The main disadvantage are there is risk of loosing
home and more possibilities to face bankruptcy.
Life insurance policies: It is the main feature of these kind of policies in which owners
of an organization is responsible to borrow some cash from other values in relation with loans.
Along with this it takes around two years in order to mature the policies and then give so many
benefits to people in an effective manner. The benefits of this is it facilitates an infusion of cash
in order to deal with adverse financial consequences of insured death as well as flexibility in time
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period. The drawback is that if insurance is for estate planning then life insurance buying
decision an positioning may be difficult.
Friends and relatives: As per this source company can easily borrow some cash from
their relative and friends and able to return to them within the short period of time. Therefore, it
is much necessary for them to calculate overall data from their company and collect cash
accordingly (Trasobares and et. al., 2016). The main advantage of this is that in this, the firm do
not have to pay interest amount only principal money has to be paid. Where as the drawbacks is
conflicts among each other will increase when repayment do not perform effectively.
Banks and other commercial leaders: These are very famous sources of funding in
which leaders of the company are mainly required to make effective business plan and positive
records as well. On the basis of this they can make better policies to running their business in a
perfect way.
Governments’ programmes: According to the funding sources it generally includes in
the federal, state as well as local governments that specially have effective programmes in order
to design effective financing budget and maintain cash flows for starting up the new and small
business entities in a perfect way. Also these kinds of programme ensure that business will grow
every day by using proper strategies in a perfect way.
Apart from this there are some sources of funds that respective firm may use that are
explained below:
 Bank Funding: Bank loans and overdrafts are relevant sources of financing a business
projects in Small and medium size enterprises. They can provide finance and loans on
very attractive interest rates and at nearest place. Before applying for a bank loan, its
important to get awareness about all the criteria, interest rates etc. Cash and Carry can
use this particular sources as this charge low interest rate in comparison to others.
Advantages:
It is easier to find and meet with a bank for discussion. Bank offers range of funding
sources along with payback options. Time relating to financing a project is usually fast than
others.
Disadvantages:
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Its difficult to obtain bank loans and time consuming with large documentation. Process
of lending money or loans constantly changes. In banks substantial track record is essential and
there is possibility of acquiring of personal assets.
 Venture capital: This type of funding is for fresh and growing businesses. Venture
capital providing firms are those investors who put a large amount of money in exchange
for equity. The venture capital firms provides funding to start-up companies in exchange
of equity in starting of the business project.
Advantages:
Venture capitalists are knowledgeable at organising IPOs. It may give tax benefits to
investors. They can invest large amounts at a time and provide expert knowledge which can help
to grow in market.
Disadvantages
In venture capital there is shared control by investors and venture capitalists.
Therefore, these kinds of funding sources are necessary for each and every business types
so that they can earn more and able to follow proper guidelines within the market of UK. More
over respective company have to adopt the bank funding as this is considered as the safest and
secure source of funds as well as they have to pay amount at fixed interest rate to bankers.
TASK 3
P4. Designing of a business plan
In order to make an effective and appropriate business plan company needs to implement
on various things by which they can make appropriate strategies in order to achieve their
desirable goals in a perfect way. There are different kinds of things which help to make proper
business plan, those are listed below:
Executive summary: In order to make effective business plan Cash and Carry
organization has been take which deals in the grocery products within the UK. Along with this
its provide different kind of material with reasonable price by people can get satisfied and able to
give good feed back to them (Deng, Fu and Sun, 2018). On the basis of this organization they
can enhance their sales and higher revenue in an effective manner. For more improvement in this
organization manager implements on different things by which they can make potential
customers and can get lot of opportunities for furthered development of business.
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Strategic objectives: This is very much beneficial aspect for every business plan, with
the help of this representative company is able to know their scale up of business. On the other
side they can get idea that how they can expand their business within the market as per the
current situation (Perveen and et. al., 2017).
Target market: In order to make targeted market company needs to analyse on their
product so that they can easily differentiated them and able to gain their goals. In order to
implements on this scenario respective organization will target their market on the customer’s
basis like age, gender, location and so on.
Competitors: In the present world there are lots of comparators so that company requires
making effective and attractive product by which they can grab potential customers in a perfect
manner.
Human resource: For making good image respective organization will need to keep lot
of resources so that they can easily offer several kind of product within the market and can get
satisfaction in a proper way.
Financial information: It is one of the best plan for this organization which refers to the
sharing information from one person to another so that they can analyse overall situation of their
company and able to make better fund for accomplishing the customers’ requirements.
Pre launch cash
budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500 4200
Total inflows 10000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct
material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
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Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100
August September October November December Jan
1000 2000 800 1200 1500 3600
1000 2000 800 1200 1500 3600
200 300 100 600 300 2000
400 500 100 100 400 300
600 800 200 700 700 2300
400 1200 600 500 800 1300
16100 16500 17700 18300 18800 19600
16500 17700 18300 18800 19600 20900
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
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200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250
21100 22400 24600 24750 26250 19350
Post launch cash
budget
Particulars Jan Feb Mar Apr
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000
Total inflows 9200 2000 7500 3000
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500
Variable : Direct
material 350 300 250 150
Total outflows 2850 1500 1750 2650
Net cash flow 6350 500 5750 350
Opening balance 0 6350 5850 11600
closing balance 6350 5850 11600 11950
May June July August September October November December
5000 6500 1200 3200 1500 8200 1250 3210
5000 6500 1200 3200 1500 8200 1250 3210
1100 1500 1200 600 500 500 1200 700
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100 500 500 250 450 250 1300 500
1200 2000 1700 850 950 750 2500 1200
3800 4500 -500 2350 550 7450 -1250 2010
11950 15750 20250 19750 22100 22650 30100 28850
15750 20250 19750 22100 22650 30100 28850 30860
Jan Feb Mar Apr May June July
1200 5000 2500 4500 1500 3500 4200
1200 5000 2500 4500 1500 3500 4200
2000 2500 1500 2000 1500 2000 200
300 300 200 250 360 250 500
2300 2800 1700 2250 1860 2250 700
-1100 2200 800 2250 -360 1250 3500
30860 32160 32360 33660 35860 36010 37510
29760 34360 33160 35910 35500 37260 41010
Monitoring and controlling: The last step under business plan is monitoring and
controlling the business operations of an enterprise. In this evaluation each and every aspect of
business is identify and analysed in relation to project growth. To improve performance and
weak points of respective company related measures are adopted.
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TASK 4
P5. Assessment of exit or succession options for small business
Exit strategies are one of the best aspect for small business through which business can
get their goals with a particular mission in order to gain competitive business advantages in a
perfect manner. Along with this business can easily invest their fund for attaining appropriate
sales and revenue an effective manner. There are various kinds of strategies in order to gain
success of small business, those are given below:
Liquidation: It refers to the different kind of small businesses which are dependents on
the single person or an individual in which they are nothing to get within the industry. Therefore
this exit strategy helps to businesses for overcome to their stress and makes effective approach to
meet their goals in a perfect way. On the basis of this firms can get advantages of simplicity as
well as able to get higher sales instantly.
Advantage:
 The obviate the accountability from the owners as well as directors of business.
 This brings p matters to an end for an insolvent enterprises struggling to cope within legal
and organised way.
Disadvantage:
 Any business reputation, trading licences or another essential assets will be lost.
 The enterprise can not able to trade as well as will be restricted from using similar firm
name again into future.
Over time liquidation: According to this scenario, some businesses run their function
overtimes in order to achieve goals but it can be difficult for them so that this exit strategy help
them to give number of customers and ideas so that they can get help for running their business
smoothly. On the basis of this they can change their lifestyle and get maximum sales in a perfect
manner. Therefore, it increase standard of people on the business process effectively (Siedentop,
Fina and Krehl, 2016).
Advantage:
 It enhances their sales and maximise the standards of people.
Disadvantage:
 The main disadvantage of this is that if teh lifestyle of business changes then it occurs
more cost.
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Business in the family: Some time so many small businesses like their owners, agents
generally ensure that they will offer good benefits to their customers and make them happy. As
per this they can prepare very smooth business by following effective successive results in the
future.
Business to employees and managers: According to this exit strategy both manager and
employees can make their own ideas and always able to implement on them so that it develops
the good environment within the firm in order to achieve higher sales and revenue in an effective
way. As per this business can get higher skilled employees and managers with loyalty so that it
can increase the firm’s value in front of the lot of customers. On the basis of this they can
achieve their goals in a perfect way (Wey, 2015).
Advantage:
 This helps them to create new ideas and attain more sales and revenue.
 With the assistance of this they can obtain proficient employees and enhance the
company' value.
Merger and acquisition: Merger and Acquisition is one of the most appropriate
succession strategy adopted by small enterprises. Mergers refers to combination of two
companies with objective to achieve predetermined targets while acquisition is when a company
acquire another firm to become single company. The benefit of merger and acquisition is that tax
advantage is gained by an enterprise and drawback is company losses its experienced workers.
From all of the above exit strategies this can be said that if small business will not follow
these exit aspects then they cannot achieve their goals and objectives. Along with this they will
not able to make proper identification on their business plan instantly. Therefore, it is important
for them to follow overall strategies
CONCLUSION
From the above representative report, it has been identified that, planning for growth is
the very good aspect that helps people to invest their money in order to gain better outcome for
good future results. On the basis of present report this can be said that Oak Cash & Carry as
dealing with grocery products within the market of UK. In which they can get better result by
investing lots of funds on them. Along with this Ansoff matrix is also very helpful part for this
organization as it is a strategic tools of planning by which company is able to make their own
techniques for future development in an appropriate manner. Apart from this there are lots of exit
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strategies which is very much important for each and every investor in order to run their business
in an effective manner. Therefore, investor of representative company is able to enhance their
knowledge and skills accordingly.
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