Planning for Growth

This document discusses the evaluation of specific options for growth, potential sources for raising finance, and the development of a well-structured business plan. It also includes a PESTEL analysis of Oak Cash & Carry Ltd and explores different growth strategies.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Evaluation of the specific options for growth....................................................................1
2. Potential sources for raising finance and their implications to the business......................5
3. Development of an appropriate and well-structured Business plan...................................7
Marketing Plan ......................................................................................................................9
4. Critical evaluation of the various exist or succession options for business.....................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In current era, it is very hard for the organisations to fulfil the needs and demands of the
clients and customers and further gain more competitive image at marketplace while ensuring
more economic growth so that they can make development and growth in their business. Growth
is an important aspect which help business owners to make plan and track organic growth in their
revenue (Brinckmann and et. al., 2019). It provide permission to the business to distribute their
limited resources toward a centred effort to adapt the changes which are occurred in specific
business sector present report has been conducted on Oak Cash & Carry Ltd which is a grocery
wholesalers company. This organisation was founded in 2011 and headquartered in Banbury,
UK. There are 58 employees who are working and make contribution for the growth of the firm.
In this document will be discussed related to main intellectual for options of growth, different
fund sources along with their fund sources. Further will defined about a business plan and a
identification of different succession as well as exit options.
MAIN BODY
1. Evaluation of the specific options for growth
Growth and development is an important aspect for each firm which is helpful for each
and every company because it help in achieving the level of successes in term of increasing
profit margins and productivity (Runsten, J., 2019). The major advantage of utilizing growth
strategy in the business is to endure in the competitive market till a long time period and gaining
competitive advantages. To a firm, is important and effective to do determination of macro and
micro factors of its business environment so that it can effectively acquire profitability and use
available resources effectively and efficiently with the purpose of the growth. In Oak Cash &
Carry Ltd, there are several kind of challenges and completive issues which influence the
business of this retail firm in term of productivity, profitability and revenue. The manager of this
firm can use utilize Quantum technology and monitor the impact and affect which is created by
external factors on the business of this company. For this, the management can conduct PESTEL
analysis. PESTEL analysis of Oak Cash & Carry Ltd is as following:
Political- This factor consist government rules, regulation, policies, plans and others
which directly affect the business of the company in term of its profitability and productivity. In
context of Oak Cash & Carry Ltd, there are various kind of changes are occurred cause of Brexit
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which impacted the decision making capabilities of the organization. With the purpose of
overcome these impact, the management of the company make modifications and changes in its
existing strategies and policies. So that the company can develop a effective working
environment which can be helpful for attaining the higher level of profit margins in the business.
In UK, Oak Cash & Carry Ltd can get advantages form unfluctuating nature of UK government
which assist them to make melioration in its whole presentation and magnify its market share in
effective manner.
Economical- This factor include fiscal policy, inflection and deflation rate, interest rate
and others which affect the competency of the firm. In Oak Cash & Carry Ltd, due to recession
situation in the nation, the firm was making improvement and changes in its all functional areas.
So that they can overcome the influences of recession which affect the profitability and
productivity of the company. To minimize the unfavorable impact of recession, the management
can make changes in its pricing polices and strategies. With the help of it they can make
improvement in their business by attracting number of customers and making enhancement in
productivity.
Social- This component consider taste and preferences of customers, age, gender,
income, market trends and demands. Now these days the taste and preferences are change highly
so it influence the business of Oak Cash & Carry Ltd and influence the sales and profitability of
the company. So the management of this company can can make innovation in its existing
products as per the needs and demands of the consumers. It will help in fulfilling the needs and
demands of clients and making improvement in the sales and profitability of the firm. By
making innovation in its product line, it also can provide satisfaction to its target audiences.
Technological- Now these days there are various changes are occurred in technologies
because day by day there are different of technologies are developed. There are various kind of
technologies like advance technology, artificial intelligence etc. which are effective to make
improvement in the business condition of the firm. In Oak Cash & Carry Ltd, the management of
the company can use advance technologies in its business. During the time of promotion of its
new products and services, they can use different advertisement technologies like social media,
web advertisement and others. It help in making increment in customer base and maximizing the
profit margins and productivity.
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Environmental- This factor include all the components which which are affiliated with
the environment and affect the business of the firm. It consist, pollution act, carbon emission,
inventory, wastage maximization and others. An organization is established in society so it is
important to follow all these kind of rules and regulation which affect environment negatively.
In UK, there are various stick actions are taken by the government according to environment act
1995, in order to provide protection to the environment. So by following all the environment act,
Oak Cash & Carry Ltd can get attention of number of customers and make improvement in its
production and manufacturing procedures.
Legal- This factor include different kind of laws and legislation which are developed by
the government for the effective running of the companies. It consider equality law,
discrimination act, diversity law, consumer protection act and various others. In retail industry,
there are various kind o issues are raising day by day because people want to avoid tax so they
use illegal transfer of goods and services. It create various disputes and highly affect the business
of various companies. Oak Cash & Carry Ltd can follows all the rules and legislation of these
kind and legally operate its business which positively affect the productivity and profitability of
the firm.
PESTEL analysis is the important tool which is highly used by the companies to monitor
the impact and influence of the external factor upon the business operations and activities. To
analyze the solution of the Pestle factor, competitive advantages like capabilities, resources etc
can understand with the utilization of Porter generic strategy which is as following:
Cost leadership-Within this component, the organization is having an option to become
low cost procedure as per the industry. In this sources of cost advantages depend on the structure
of the industry. Retail is a large industry, so making focus on the cost prevention is most
important. For instant, Oak Cash & Carry Ltd is a retail firm so it is important that it make
concentration on its cost strategy and quality of the product.
Differentiation- In it, the company is majorly think and plan about to be unique in
respective industry by bringing dimension for a purchaser to purchase. In retail sector,
uniqueness is get when the business concern of the company obtain cost in the operation of
product quality. In retail industry, the management of the company make differentiation in
products and services by analysing the needs and demands of the customers. It I beneficial for
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the companies because it help in gaining competitive advantages form the market and
maximizing the productivity and profitability of the firm.
Ansoff matrix
It is a growth and development model which is developed by Igor Ansoff. There are
various highly growth oriented strategies through which a firm can get entry in new market,
developed new product and making improvement in its business. Different growth strategies of
this model is as following in context of Oak Cash & Carry Ltd:
Market penetration- This is the first growth strategy of this model. Within it, the
management of the company can make improvement in its business with the help of it existing
products and launching them in existing market. In this strategy, there are no risk. In context of
Oak Cash & Carry Ltd, the manager of the firm can utilize this strategy and by creating
awareness about its existing product to its target audience they can make improvement in the
gross sales and profit margins. It will also be helpful fro increasing the customers base.
Market development- In this strategy, the management of the company provided its
existing products in new market. This strategy is risky more than penetration because within it,
the company expand its business in to new market. Oak Cash & Carry Ltd can utilize it in its
business and can make growth in it by launching its existing products in new market as per the
needs and demands of the customers of that place.
Product development-According to this strategy, the organizations organize market
analysis and monitor the needs and demands of customers or manufacture new products as per
their demands which provide satisfaction to them and launch them in existing market. The
management of Oak Cash & Carry Ltd can use this strategies and make improvement in their
product line by producing new products which fulfill the desires of customers and offer them in
its present market. It help in increasing the customer base and productivity of the goods and
services. There are moderate risk because new product is launched by the firm so it is not
confirm that it is liked by the target audiences or not.
Diversification- According to this growth strategy, firm can manufacture new product
and launch them in new market. Oak Cash & Carry Ltd can also adopt this growth strategy to
maximize the profit and productivity. There are high risk in this strategy to the business because
market and product both are new so it is not ensure that the product will satisfie the demands of
its all customers.
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Form the defined information, it can be analyzed that the management of Oak Cash &
Carry Ltd can adopt market development strategies. With the help of it, this firm can make
increment in its customer base and productivity and they also can get competitive advantages.
2. Potential sources for raising finance and their implications to the business
Finance is an important, essential and potential resource which is highly needed to run
and operate the business of a company. If the firm has not fund then it can not operate its
business operations and activities. But there are various sources though which organisations can
raise and borrow fund. Some of them are mentioned as below from where Oak Cash & Carry Ltd
can raise fund also:
Source of funding Benefits Drawbacks Assess
Bank loans- It is main
and important source
of fund from where
organizations can raise
fund to operate the
business of the firm.
This aspects is
regarded as a debt in
which a legal
agreement take place
among bank and
client. There are
different kind of loans
like grant short and
medium term loans
which are refund in
equal payment. The
advantages and
disadvantages of bank
loan are as following:
Bank loans are more
flexible components so
the borrow on think
about making regular
installment payments
on time. The interest
of loans may be fixed
for the term so the
borrow have
information about the
repayments end-to-end
the life of the loan.
In some cases, loans
are bolted towards the
assets of the business
or personal profession.
The interest rates for
secured loans may be
lower than for
unsecured loans but
assets could be at risk
in condition of when
the borrower can not
make the repayments.
Bank loan is an
effective source to
raise fund for
operating business
activities and
operation because
these institutes offer
finance at low interest
rate.
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Overdraft- It is a
multivariate amount of
borrowing agreed with
bank to set limit. This
financing is offered
when the company
make commercialism
form their business
current accounts
surpassing the
accessible cash
proportion. In these
kind of loans banks
decided repayments
tenure and they have
the authority over
account and utilization
of it.
It is flexible and the
borrower can make
modifications in that
amount which
borrowed within
limits. Another
advantages of
overdraft is that
interest is only paid on
that amount which is
borrowed by the
individual or
company.
The major
disadvantage of
overdraft is that rates
of interest is higher
than loans and the
borrower can not raise
fund in large amount.
The bank has authority
to change the limit at
any time or can asked
for return the fund
sooner than given time
period.
This source is suitable
for the company
because the money
which is raise by the
company form these
organisations, they can
make changes in the
amount and only pay
interest on the raise
fund.
Crowdfunding- It is
way from where
people can raise and
borrow fund from their
family, friends,
customers and
respective capitalist. It
can be the utilization
of midget amounts of
assets from a large
number of respective
to finance a new
It can be a easy and
direct way to raise
fund and there is not
pay any charges and
interest. According to
the crowdfunding
procedure, a business's
people get on its most
loyal customers.
The main disadvantage
of crowdfunding is
when the target
amount is not reached,
potential investors get
their money back and
the business goes
away empty handed.
It is suitable for the
firm because there is
no more legal
activities and an easy
process to raise fund.
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business venture.
As per the defined information, it can be surmised that bank loan is the effective source
of raising and borrowing fund for the effective running the business of the company. Oak Cash
& Carry Ltd can also borrow fund for the effective running of the business.
3. Development of an appropriate and well-structured Business plan
Business plan
Business plan is a document and written description of the future of the business. This
plan lays out a written plan from a marketing, financial and operational viewpoint. The major
objective of a business plan to find out effective new ideas and scope. Business plan is mainly
considered as format structure is made to give business a true and desired structure for carry out
its business operation. Oak Cash & Carry Ltd is a better-known SME firm is going to expand its
business with its existing products in Ethiopia, South Africa. The business plan will be
formulated in context of launching existing products in new market with the purpose of
increasing profit and productivity.
Oak Cash & Carry Ltd- It is a Small medium grocery firm which operate its business in
retail sector. It was founded in 2011 and headquartered in Banbury, UK. This firm operate its
business with the help of 58 employees who make contribution in the growth of the firm. This
organization provides a broad range of goods in bulk for retailers, caterers, offices, off licenses
and other local businesses.
Mission- The mission statement of Oak Cash & Carry Ltd to provide quality products
and services to its clients at given period of time.
Vision- To operate the business of the company in appropriate manner and generate value
for consumers with purpose of gaining lifetime loyalty of them.
Strategic objectives- It is most important for for a company to develop strategical
impersonal effectively which assist in offering the firm with directions as well as eventual
cognitive content to compass through its plan of action and maneuver. There are some strategic
objectives which Oak Cash & Carry Ltd would efficiently attain with the help of expanding its
business in to new market:
 To make maximization in the sales of the company by 10% within 3 years. The management of the company can also make plan of increasing market share of the
company by 5% within 2 years.
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Source of investment- It indicates to those places and areas where a firm can borrow
money from financial institutions to operate the business of the company. Bank loans, angel
investor, crowdfunding, peer to peer and various others are some source of investment from
where the management of Oak Cash & Carry Ltd can arrange finance for running the business
activities of the company. The main objective of borrowing fund from financial institutions so
that the firm can make improvement in its market share and expansion in its business.
Action plan- It is a document which consider all the phases and steps which are help in
attaining the particular goals aims and objectives (Acharya, C.N., 2019). The motive of action
plan is to specify all the resources which are necessary to attain the goal, framing a timeline for
particular task and project to be completed and monitor required resources. Oak Cash & Carry
Ltd will develop strategies and plan to launch its business to new market so that it can make
increment in its market share and customer base. The management of the company will
determine the requirement of the required resources so that the firm can operate its business
effectively. During the time of expansion, the company will use social media, internet,
campaigns running etc. for the purpose of promotion of its business. Because now these day
most of the people use internet and active on social media and social sites so it is an effective
way to aware them about the products and services of the company.
Budget planning- Budget is a financial plan which consist conceived gross sales volumes
and revenues, assets abstraction, reimbursement and disbursement, assets, liabilities and cash
flows. Oak Cash & Carry Ltd can prepare a budget to its business operations so that it can have
information about the fund which is utilized to be distributes to deliver expenses of the business
growth or business expansion.
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Marketing Plan
Product: In this regard, Oak Cash and Carry Ltd take an initiative to deliver best quality
of product which help them to maintain long lasting relationship with each of its clients i.e.
wholesalers, retailers and so on. Moreover, such initiation aid company to place its brand in a
better position within Ethiopia marketplace.
Price: Under this, Oak Cash and Carry impose less pricing strategy for its products as it
consider all segments of population economic condition. Due to such practice, establishment will
be able to enhance its profitability ratio in Ethiopia industry and also with lower price they can
attract m,ore consumer towards the brand.
Place: Oak Cash and Carry is headquarter at UK but it has taken initiative to expand its
market division to Ethiopia where it identifies best location for its company. Moreover, it places
its market in a most convenient position that enlarge the proficiency ratio in an amended way.
Promotion: IN this, Oak Cash and Carry use traditional and modern technology to
promote its product in Ethiopia marketplace that help them to improve its overall proficiency
ratio in an innovative style.
Process: Under this, Oak Cash and Carry carries simple procedure for maintaining and
handling its managerial as well as operational function. With the help of this, it aid company to
enhance its sales volume and profit margin ratio in a better way.
Physical evidence: In this, Oak Cash and Carry's make an effort to keep its interior and
its retail layout in an attractive manner. This is because, it aid them to capture the attention of
large number of population towards the brand and they can gain competitive advantage in
Ethiopia industry.
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People: Oak Cash and Carry take an initiative to hire best and talented workforce who
can put innovative or novel ideas into the organisational goal which drive them to enhance its
market share among competitors.
Operational plan
Oak Cash and Carry applies Porters Generic model to determine its operational function
which are as follows:
Cost Leadership:
In this, Oak Cash and Carry put less price for its product in order to acquire best position
in Ethiopia industry and also can increase customer base in an effective manner.
Differentiation:
Under this, Oak Cash and Carry utilise different sort of promotional strategies like online
marketing, social media platform, direct selling and many more. With the help ,of such
strategies, it lead organisation to gain competitive advantage among competitors and also place
the product in an impressive style.
Focus:
In this, Oak Cash and Carry, make an effort to utilise all available resources at optimal
level which drive them to keep a improved level of relationship between production costa and
delivery that enable establishment to explore its sales volume within Ethiopia industry in
stipulated time duration.
The above factor are required to be considered by Oak Cash and Carry in order to execute
the plan of action in more effective as well as efficient manner. It requires involvement and roles
of many people in terms of making strategies to achieve desired objectives of business. However,
the contribution of manager is given company with other information is given below.
Who: The marketing manager and general manger are involved to establish effective
strategies for completion of desired business objectives.
What: The marketing department is responsible for making promotional strategies in
order to maximize sales of given organisation by 10 % in 3 years of duration. Basically, general
departments of management has a responsibility for implementing effective management
practices in respect of increasing market share by 5 % of company within the period of 2 years.
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Where: The information relate to strategies about marketing and management should be
stored in information system of Oak Cash and Carry and forward to staff of relevant departments
to work on them for achieving desired business goals.
When: The deadline of increasing sales up to 10 % within the duration of 3 years. The
time period for achieving objective of increasing market share by 5 % is 2 years.
How much: The cost required to fulfilling the given goals is 60000 Pounds.
4. Critical evaluation of the various exist or succession options for business
There are various strategies deliberated to penalise to execute precise different objectives
and activities which can be taken by the management of the company for utilisation a succession
plan. It will be different from those expected to accomplish and exit at the highest achievable
cost. Succession plan is monitored with those section within which the management need to turn
over the operations of the company to either individual from internal management team and
family members. It can make or do not make modification in the possession of the firm. In
context of Oak Cash & Carry Ltd, the management of this firm can monitor various types of
exist and succession plan accessible between market regarding utilize effective strategy for
accomplishing organizational objectives of the company properly. Some of them are defined as
below:
Voluntary/compulsory Winding up- It take place when an organisation becomes failure and is
incapable to emanation its susceptibility. It can be affiliated with the procedure of liquefaction a
firm under which its major aims is to interchange off stock, pay off creditors and dispense
leftover assets to its shareholders. It is a legal structure which is formulated by articles of
association and corporate laws. It divided into two parts compulsory and voluntary. A business
capitalist can novice a voluntary winding up with the passage of proclamation as it based upon
the case of solution and failure of business. Where as compulsory winding up action need the
court order when the organisation is incapable to refund its debts or various proceeds legal action
in pursuit of the fund owned. Benefits and drawbacks of it are as below:
Benefits- The major advantage of voluntary liquidation is that when an organisation has
been liquefied and merchandising of its assets apportioned to creditors then leftover
unguaranteed business possession which is not impersonally secured will be written off.
Drawbacks- Liquidation convey about the expiration of a firm and staff engaged by the
business will be successful redundant and be strained to search for occupation elsewhere
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(Lombard and et. al., 2019). Depending on their dimension of service within a specific business,
they may be able to assertion statutory repetitiveness pay pursuing their dismissal.
Merger and Acquisition- It refers to the process of change of integrity and computing two firms
in one organisation under which the main objective of the company to attain its goals and
synergy. Acquisition is the process in which one firm is taken over by the other. Merger and
acquisition can provide the exploiting administration a possibility to develop market share
without doing epochal heavy lifting.
Benefits- Cause of merger or acquisition and merger, firm is help to increase market
share or size in to new geographical locations and marketplace and gain competitive advantages.
It is also helpful for making increment in the financial profits, business performance and making
development in the value of shareholder in long time period.
Drawbacks-When the company make merger and acquisition then it make decrement in
the respective sector and increasing prices of product which affects the buying behaviour of the
customers in negative manners. It also make minimisation in the job opportunities which
straightly influence the economy of the nation.
Integration- It indicates like management control strategy within which business aid its
activities and operation related to the current procedure of the firm. It is divided in to two types
vertical and horizontal Under which is permit an organisation to make control over suppliers,
competitors and distributors. Some of the positive and negative impact of its are as following:
Benefits- It help the company by interpreting over the value chain of the company and
also make improvement in present corporate cultural system in term of achieve profit
maximization. It is also assist the component to admittance manufacturing inputs, distribution
resources, retail channels and process etc.
Drawbacks- In it, there are number of legal process and procedure which create
limitations to the company to enter into new market with the purpose of expansion and market
development (Herbert, M., 2019). It consist upstream and downstream of assets in the structural
regions of business concern which minimise the acceptability ability.
As per the above information, it can be monitored that Oak Cash & Carry Ltd can utilize
merger and acquisition strategy to make growth in the business of the company in term of
increasing profit margins, market share and enhance productivity.
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CONCLUSION
As per the defined information, it can be summarised that growth and development is a
crucial and important factor for organisations because help and make contribution in the growth
and success of the firm in term of increasing profit and productivity. To attain the growth, the
management of the company can monitor or make determination of its external factors which
influence its activities and operations. With the help of Ansoff matrix, the management can think
about the risk in order to acquire profit maximization with an optimum use of origins. If the
company want to make growth through expansion then there are various sources of fund. With
the help of it they can make market development and increase market share or customer size
also. Business plan is also helpful for providing evidence or guidance to the management of the
company so that they can provide satisfaction to their target audiences by producing goods and
services according to them. Different exit and succession strategies are also beneficial to make
restorative pedagogy of action in order to suffer in competitive environment till long time period.
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