Unit 42 Assessment: Growth Opportunities, Ansoff's Matrix, Funding Sources, Exit Options, and Business Plan for Oak Cash & Carry

This assessment provides insights into growth opportunities, Ansoff's matrix, funding sources, exit options, and business plan for Oak Cash & Carry. It includes a list of possible funding sources, options to exit a venture, and a business plan with objectives and strategies.

UNIT 42 ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1- Growth opportunities..............................................................................................................3
2- Explaining how Ansoff’s matrix apply...................................................................................5
3- Providing list of all possible sources of funding for an SME.................................................7
4- Providing a list of all possible options an SME owner can use to exist venture they are in.. 8
5- Business plan..........................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business expansion is defined as procedure of establishing a venture or a company into
specific market, within a new nation, where success and growth factors are accessible in bulk.
This process drives the attention of an organization toward grabbing existing and in the future
venture growth opportunities. The current assignment will be based on Oak Cash & Carry, which
falls under the category of small and medium size organizations in the United Kingdom. The
study will explain what things chosen company should consider when expanding. It will also
define application of Ansoff matrix, source of funding, and options to exit business, including
benefits and drawbacks of each option. Furthermore, the report will justify a business plan,
including varied aspects and elements.
TASK
1- Growth opportunities.
While taking initiative to enter into a new market, there are a lot of things which Oak Cash
& Carry should consider as it is essential for company and its existing team members to do so, in
appropriate manner.
The first thing that organization take into its consideration, while expanding venture across
national boundaries is financial options that it may utilize to gain more benefits. As it is also
essential for them to make assure that the selected option is appropriate or not.
Pros-
By considering appropriate financial option, firm may take next steps and move to further
growth path in the retail market where it want to grow rapidly and competitively, which is quite
beneficial for its long term success (Allen, Zhu and Sarkis, 2021). Another benefit that it may
gain, after considering the current concept, it assurity about having right source of funding that it
may utilize in the future.
Cons-
The biggest drawback of this element that it may have fewer option to provide better
understanding about which funding source is better as each concept is useful, but may have lack
of evidence about assurity and success.
Industry analysis is another thing that organization should consider after considering
financial option, which is as essential as other factors consideration. It can be said that

investigation and understanding new market, where Oak cash & carry expand is important to
success. As it may consider expanding, research and revisit market via competitive analysis and
consumer trends as well as their purchasing decision (Ivanov and et.al., 2021).
Pros-
The best thing about an industry analysis procedure is that it may enable organization to
consider and find out the extent which each factor in retail sector, especially in new market put
impact on business expansion plan. It may enable firm to determine opportunities and threat that
it may plan to amend in appropriate manner.
Cons-
The biggest disadvantage of an industry analysis is that sometimes inappropriate data
may outcome in selecting wrong path and make ineffective decisions, that lead to decrease
success chance of business expansion strategy. Another disadvantage of the current concept
consideration is that it may require additional resources such as human resource, amount, etc.
that create more complication for management to arrange everything within short term period
that might be not possible.
Rules, regulations and governmental policies is the most important thing that Oak
Cash & Carry consider, when it may plan to enter into US market, where the country policies,
and other factors are quite different from UK market.
Pros-
There are several form of advantages, chosen company may gain by considering this
factor in appropriate manner such as important information about US government legislations
that it may plan to following term of conducting appropriate practices and developing strategic
plans to do so (Darusman, Wiyono and Yanto, 2021). This form of understanding may drive
organizational management attention toward obtaining success of their expansion plan that they
effort to implement successfully.
Cons-
The worst thing about this consideration is time consumption as firm may build strong
workforce or team of knowledgeable candidates who may gather information about all above
terms, that is required additional amount more than the budget of Oak cash & carry.
The most important and beneficial factor that chosen retail organization may take into its
consideration along with above terms is customer trends (Salierno, Leonardi and Cabri, 2021).

As this factor may put direct impact on its strategic aim and objective that is business expansion
in the US market, where it may establish its outlet to grow and succeed.
Pros-
With this consideration organization may take pleasure of increasing profitability and
productivity which is quite essential for it to increase, more than last few years or months.
Another advantage of customer trend recognition is market sustainability that mean by collecting
information about each trend that individual person in the US market may prefer to follow, firm
may successfully acquire new buyers who may provide a lot of benefits to company in return
such as business promotion.
Cons-
The overall process consumes time and efforts that is the biggest drawback as it is not
possible to determine trends because each trend might be changed seasonally. Furthermore, the
customer trend analysis is useless at time of price level modification, that also included in list of
their disadvantages.
2- Explaining how Ansoff’s matrix apply
Market penetration-
It is one of those Ansoff’s matrix growth opportunity that Oak Cash & Carry may grab in
term of developing plan to focus on improve existing products quality and service standard event
better than before, which play significant role in the business growth context.
Pros-
By using this strategy in appropriate manner, firm may obtain a lot of advantages, as it
may enable management to retain and acquire new customers, who may obtain appropriate
satisfaction after using organizational services and products (Suherna, 2021). Along with that,
more terms may include in list of market penetration benefit such as it may case quick diffusion
of existing item in the existing or new market.
Cons-
The biggest drawback of market penetration strategy is that it may cause price to lower
throughout the whole sector where Oak Cash & carry may establish its venture. It also
encompasses risk and that is requirement of additional capital investment in regard to expansion
plan.
Product development-

This tactic may drive the attention of company toward developing a new product that it
may plan to introduce in the existing or new market.
Advantages-
Product development strategy encompasses different benefits such as provide growth
chances to company, that it may plan to grab in term of introducing unique product that aid to
enhance customer satisfaction (Diaz and et.al., 2021). Another advantage of current tactic is
higher value proposition, which drive the attention of Oak Cash and Carry toward meeting
customer’s needs.
Disadvantages-
A product development plan always needs some extra resources, which is not possible to
arrange immediately, for any organization as it makes overall procedure quite expensive. The
second element of current strategy that make is worst is external sources that might be change
process of product development.
Figure 1: Ansoff's Matrix
(Source: Ansoff Matrix Analysis, 2022)
Market development-
This strategy may drive the concentration and attention of Oak Cash & Carry toward
developing plan to enter into new market such as US, that in turn provide multiple benefits to
each stakeholder.
Benefits-
With strategy implementation may enable organization to take pleasure of increasing
sales and profits (Haryadi, Umiyati and Dhora, 2021). It also helps to build excellent brand
image in the market as each SME firm tend to achieve this term of success.

Drawbacks-
In case of expansion, when the new growth opportunities in the new market may do not
pay off, then firm may waste its resources and capital which it may have invested in other tactics.
Intense competitive business environment is the biggest challenge that firm may face because of
using market development tactic.
Diversification-
With diversification tactic, organization may enter a new market with a unique service or
product that in turn lead to increase its sales (Xie, Wang and Miao, 2021). This option
encompasses related and unrelated diversification.
Pros-
The best thing about diversification strategy is set of advantages that this term
encompasses. As it may enable Oak Cash & carry to eliminate risk of losing overall portfolio.
Furthermore, it may also aid company to reduce volatility and grab more growth opportunities.
Cons-
It may encompass several disadvantages such as reduce quality, and increase market risk
that put negative impact on chosen small company success in the new market. Another drawback
of this source is a burden that it may put on earning of the organization.
3- Providing list of all possible sources of funding for an SME.
Bank loans-
There are different types of banks accessible in the UK and US market, among which
firm may take initiative to chosen specific one, to utilize that as funding source.
Benefits-
This current category of funding source may fall under the category of the most trustable
sources in the world, as it includes key benefits (Serrano, 2021). For example, as it may provide
loan applier chance to take pleasure of flexibility in term of repaying money with specific
interest rate that they may provide. It may also offer significant low interest rate to company,
more than it will find with credit cards.
Drawbacks-
The worst thing about bank loan as funding source is long time duration in regard to loan
application approval. Another disadvantage of this approach is tough of quality as bank loan is
difficult to obtain unless a small or medium venture may has substantial track record.

Debentures-
It is considered as marketable security that is issued by a company and other firms to
raise money for long term growth and success in the market, which is quite beneficial for Oak
Cash & carry, while entering into US market.
Advantages-
By using the current source, firm may take benefit of increasing profitability and
productivity (Nunes, dos Santos and Sales, 2021). Another advantage of debenture is cost
effective feature, that company may grab appropriately.
Disadvantages-
It can be said that each firm may have some borrowing capacity, and with the issue of
debenture, the capacity of chosen small company to further borrow funds reduce.
Angel investors-
It is the best high net worth group of people’s, who are capable to provide financial
backing to small companies.
Pros-
As compare to other funding sources, angel investor is the best because it may enable
firm to grow rapidly and in productive manner, as the business angels are accessible everywhere
(Arya, Mittendorf and Pfeiffer, 2021).
Cons-
The primary drawback of this option is loss of complete control on further expansion plan
as a part owner. less transparency is another disadvantage of current funding source that affect
negatively upon firm plan success.
4- Providing a list of all possible options an SME owner can use to exist venture they are in.
Liquidation-
Benefits-
The best source to exit venture, with Oak Cash & Carry is in is Liquidation as it may
entail closing of a venture via sale of all its assets that lead to decrease profits and success.
Drawbacks-
In list of Liquidation option drawbacks, varied terms are included (Smoliło and et.al.,
2021). For example, shareholders may have to repay illegal division. another drawback of this
option is potential accusation of wrongful trading.

Acquisition-
Benefits-
It may help to increase market power and provide firm chance to build wide customer
base. Organization may also gain benefit of avoiding court procedure, that consume a lot of time.
Drawbacks-
It may put negative impact on business expansion success in term of creating a more
clashes because of culture differences, within UK and US market.
Merger-
Advantages-
Merger process provides chosen company chance to improve its brand image and build
excellent in the market. it may contribute to increase market share and profitability. It is fact that
without having and using the business exit approach, the expansion process success is not
possible.
Disadvantages-
However, it may affect negatively when the acquire business may do not have good
organizational image in the market, as it may lead to decrease sales of Oak Cash & Carry.
5- Business plan.
Business plan-
This term refers to set of strategies and actions that management is accountable to
conduct in appropriate and systematic manner.
Smart analysis-
This term stands for specific, measurable, achievable, realistic & timely. all these
concepts may enable company to analyse and then set out achievable objectives.
Executive summary-
Oak cash & carry had achieved its strategic aims and objectives, in term of expanding
venture in the US market. It has expanded venture in appropriate manner within new market
where growth factors available in bulk.
Company Summary-
Oak Cash & Carry run its venture in retail industry and tend to grow like other companies
in form of passing process to become a large company. Recently, it may sell its products to
retailed product merchant and grocery wholesalers.

Products-
It may offer quality grocery items to customers according to their needs and expectations,
which is quite essential for company to take into its consideration for purpose of obtaining
unpredictable benefits.
Market analysis summary-
By referring to market analysis, it has been identified that the bargaining power of
suppliers in the US market is low because number of sustainable suppliers accessible in the
market. Furthermore, the degree of customer’s bargain power is also low, which mean company
may take pleasure of generating revenue more than before and its rivals. The substitute products,
and services, competition level in the market and threat of new entrance, are those terms that
extent in the US retail market is high.
Strategy and implementation-
Objectives-
 To generate brand awareness in the US market, by 50% within 2 years.
 To increase profitability and productivity up to 50% within 2 years.
 To build wide customer base up to 50% within 3 years.
In order to achieve all above objectives, firm may take strategic action in term of effective
strategy implementation. It may expand venture into chosen market, by building skilled
workforce, choosing the best exist and entry mode, which play significant role to make its
business expansion successfully and profitable as well.
Management summary-
For purpose of managing employee’s performance and business expansion plan,
management may take effective action in term of providing training to employees that aid to
improve their performance and increase productivity. Furthermore, for purpose of managing
business operations it may build a team of expert and take initiative to create schedule in which
role & responsibilities may specify.
Financial plan-
Resources Cost
Market research 20000
Skilled employees or expert requirement 30000
Training session 25300

Business contract 29000
Suppliers 35000
Outlet design and development 40000
Total 143,300
CONCLUSION
From above analysis, it has been concluded that by grabbing current business growth
opportunity in the new market, firm has increased profitability and productivity level. it has
gained competitive advantages by developing appropriate strategies and plans. The
implementation of effective strategy enable management to achieve strategic aims and
objectives. Furthermore, by summing up above discussion, it has been summarized that firm has
achieved key goals of business by offering quality products, and offering satisfactory services
that played vital role in organizational success. It has generated excellent image in the new
market by using the best approaches, and techniques.

REFERENCES
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Online
Ansoff Matrix Analysis. 2022. [Online]. Available Through: <
https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>