Bonmarche: Evaluating Growth Opportunities and Funding Post-Brexit

This report provides a comprehensive analysis of Bonmarche's growth planning, focusing on the challenges and opportunities presented by Brexit. It utilizes frameworks such as the Boston Consulting Group (BCG) matrix, McKinsey matrix, and Ansoff matrix to evaluate growth opportunities, particularly in the context of the fashion retail industry. The report examines key considerations for evaluating growth opportunities, including market penetration, product development, and diversification. It also explores different sources of funding available to the organization and discusses the development of a business plan, including exit and succession options. The analysis highlights the importance of strategic decision-making, employee training, and online marketing strategies for Bonmarche's success, particularly the potential of expanding into the men's fashion sector. The report emphasizes the need for Bonmarche to adapt to market changes and implement effective strategies to ensure profitability and competitiveness.

Planning for growth

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................2
LO 1......................................................................................................................................................3
P 1 Key consideration for evaluating growth opportunity...............................................................3
P 2 Evaluate the opportunities for the growth.................................................................................6
LO2.......................................................................................................................................................7
P 3 Different sources of funding in organisation.............................................................................7
LO 3......................................................................................................................................................9
P 4 Development of business plan...................................................................................................9
P5: Exit and Succession Options...................................................................................................12
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14

INTRODUCTION
Growth planning is a very essential tool which is used by owner of organization so that they
plan a track growth revenue. There are a lot of changes which are taking place in organization so
that business can get a competitive advantage but it has to be controlled properly. Organization
which is going to be discussed in this report is Bonmarche which belongs to fashion industry and is
a private organization. Number of employees working in organization are more than 4,000 and there
are more than 300 stores of Bonmarche.
Study is going to consist of growth plan after Brexit in country. Through Boston consultancy
group and McKinsey matrix the growth opportunity can be determined in Bonmarche. Ansoff
matrix will help the organization to understand the growth opportunity as well so that there are
changes which take place in the organization. Report will also discuss funds and exit strategies
which are very important for the retailing company to understand so that they can make the right
decisions accordingly which will help the retailing organization to expand themselves in country.
LO 1
P 1 Key consideration for evaluating growth opportunity
Bonmarche has faced a negative impact on economic outlook because of Brexit which has
took place in country. There are a lot of opportunities which organization can make from Brexit
which has taken place which can be better understood by using Boston consultancy matrix. BCG
was introduced by Bruce Henderson in 1968 so that the organizations can analysis their products
and portfolio better. McKinsey matrix is used to analyse the investments which the organization
should make in business unites. Needs and development of portfolio can be understood of
organization better with help of this matrix.
Difference between the two is that one is not so time-consuming and can get the results
faster which is by using the BCG matrix whereas McKinsey matrix will help the organization to
have a better and detailed result as compared to BCG.
Boston Consultancy Matrix
This matrix is build so that businesses in market can analysis for long run strategic planning.
Growth opportunities can be understood better weather business needs to produce more products or
get new ideas in products by reviewing portfolio. There are four divisions which are present in
matrix including dogs, question marks, stars and cash cows (Mohajan, 2017). Products of
Bonmarche after Brexit has shifted towards dogs which is products of business is having low
growth and low market share. Opportunity for organization is to shift from dogs product to star
products once again since that will be a better growth plan for organization in market. Dogs is that
company is not having market share and low product growth which is making company have a

negative economy for organization.
 Dog Products
Dogs is when products of the restaurant have growth and low share in market which
Bonmarche is facing after Brexit took place in country. Due to Brexit organization has not been
successful in producing right products since they lost a lot of skilled employees and customer
satisfaction also reduced.
 Question Mark Product
This is making the organization have low shares but high potential for the growth in market.
This is a very uncertain position for retailer which will affect in long run for the products which
Bonmarche will come up with.
 Cash Cows Products
In this high shares in market is present with low growth of the products. It is very important
for Bonmarche to get a growth of the products in market and that is a very important factor for them
(David, David and David, 2017).
 Star Products
To make profit it is very important that company increases market growth and shares in
market which is present in star product. Shifting from dogs product to stars product will take time
but once this happened then retailer Bonmarche will make a lot of profit. This can be done when
right strategies are implied within organization for proper functioning. Expanding in new category
for men would be a great advantage for organization.
McKinsey Matrix
There are two dimensions which are present in this matrix which are industry attractiveness
and competitive strength of a business. This will help the industry to find out if they need to invest
or not in market. Hold is another aspect through which the organization will have a better look out
in market and the business will not have to face loss.
Step 1: Industry attractiveness
The factors which are involved and determined in this are market size, growth rate, low
competition, PEST factors and industry profitability. The factors which are going to be covered in
matrix are industry growth, low competition and high profitability.
Rate factors
These factors are weighted as decided which is high profitability of the industry is 6 out of
10 but as per the market it is 5 out of 10. Low competition is rated as 1 out of 10 but as per the
market it is 2 out of 10 and industry growth rate is 3 out of 10 and as per the market it is 3 out of 10.
Weighted Score
As the above rates and weights the total score can be taken out which is (weight x rate=

score) industry growth: 3x3= 9, high profitability: 6x5= 30 and low competition: 1x2= 2. Total
score is (9+30+2) 41.
Step 2: Competitive strength of retailer
The factors which are involved in this factor are going to be market share, customers
services, brand reputation and growth rate. The factors which are going to be covered for this report
are brand reputation, customers services and market share.
Rate Factor
The decided values of the three factors and the industry rates are as follows, brand
reputation is 5 put of 10 but as per the market it is 3 out of 10. Customer services is 2 out of 10 but
as per the market it is 6 out of 10. Market share is 3 out of 10 but as per the view of market it is 1
out of 10.
Weighted Score
As per the above rates the total score can be calculated (weight x rate = score). Brand
reputation: 5x3= 15, customer services: 2x6= 12 and market share: 3x1= 3. total score is (15+ 12+
3) 30.
Illustration
1: Illustration 1: McKinsey Matrix
(Source: GE-McKinsey Matrix. 2020)
Step 3: Position of the units
According to the matrix and scores which have been taken out from the matrix it can be
determined that the retailer store can expand themselves by investing. Seeing the grids it can be
determined that there are chances for the retailer to get a competition advantage in market if they
invest.
Porter's Five Forces
Porter's five is a tool which organizations use to analysis market to make a strong and power

for strategy for themselves for growth.
 Power of Supplier
Power of suppliers in organization is high because organization is not making huge profits
and right now it is very important for company o product and meet demands of customers from time
to time.
 Power of Customer's
Customers are having a high play in revenue aspect of company therefore organization has
to find different strategies and techniques so that company can capture market again.
 Threat of Substitute Products
This is high for Bonmarche since there are a lot of introduction of new businesses coming
up. There is already a lot of businesses which have a strong production in this product and getting a
strong customer base with this product is going to be difficult but right strategies will make business
do that quickly.
 Potential of New Entrants
Entrants in this industry is medium since there is already a lot of competition in market.
Improving existing businesses is what organization existing in this market are aiming for.
 Competition in Market
There is a high threat on the retailer since the competition is increasing rapidly which is why
getting digital is a very important factor for organization. Business will have to find ways through
which they can reach customers faster so that they can make a profit.
P 2 Evaluate opportunities for growth
Ansoff Matrix consists of four strategies which are market development, diversification,
product development and market penetration.
Market penetration is when there is an existing product in existing market of organization
which is proving to be very low profitability in market. Advantage: Organization will be able to
make a place for themselves in existing market which will be very helpful and will not require
much investment. Disadvantage: New strategies are used in organization which will make present
product penetrate in existing market (Ansoff and et.al., 2018).
Product development is when a new product is introduced in existing market which is not
going to make company have a long run experience which will not be beneficial for growth
planning. Advantage: Requirement of funding themselves or exit from the market so that someone
more experienced can fulfil the objectives and aims. Disadvantage: Customers service and quality
can improve but organization will have to make a new strategy for themselves so that they can
recover from loss faster.

Market development is when there is a new market which a company enters with an
existing product. Advantage: Customers are going to like the old products in new market but this
will not be good for long run in market. Disadvantage: This is not good for the company which is
again not going to be best plan for organization since they will not be able to satisfy old customers
of company as well. Targeting is not going to be very beneficial for organization since that will limit
organization to gain profit and recovery will be slower.
Diversification is when a new product is launched in new market which is going to require
a huge investment but return of organization is going to be huge which will help organization to
have a better economic growth. Due to Brexit company is having a negative impact on economic
outlook which can be balanced if organization could use this factor. Advantage: Men section is
going to be very effective for organization since they have already established themselves therefore
trying new products and new market is the best decision for organization to make profit.
Disadvantages: Fun ding will make a difference in the company because expanding and entering
new market is going to require a high investment for Bonmarche.
The most beneficial strategy which Bonmarche can follow is diversification which there has
to be a fast recovery from loss organization has faced due to Brexit therefore they will have to take
this risky measure. It is important for Bonmarche to make such decisions for organization so that
they can get in market again and place themselves. Employees have to be trained so that customers
are satisfied with services and quality of product which is being received by customers. Vision,
mission and values of organization will change because strategies of organization will change.
Using marketing online strategy is going to be very beneficial for organization since they will be
able to capture a lot of customers and organization will be able to make a lot of profit. Expanding in
men section is a great method for them to use.
LO2
P 3 Different sources of funding in organisation
For the growth and start-up of business, there is need of proper funding which makes the
business effective and efficient. To run the organisation effectively there is higher needs of cash in
different departments such as research and development, purchase of plant and machinery. Financial
needs and wants of company is depends on their nature and size (Pulido and Mandri-Perrott, 2018).
There are different sources of funding which can adopted by the organisation for success and
growth are explained below:
Crowdfunding:
Crowdfunding refers to the process of funding the venture and business by increasing the
small amount of money from large quantity of people with the help of internet. Each and every
thing which is related to the success and growth of business is mentioned in that description and

then the customer will read company's description and provide funds if they like their ideas.
Advantage: It will increases funds of business at the faster rate and it does not have any
kind of fees which is given by business. To determine reaction of people towards the ideas of
products and services it is the most effective and efficient ways for company.
Disadvantage: If the projects will failed then it will affects image and reputation of business
and also damages the people's trust who have invested their money in the business. It will creates
the risk of copying ideas of business to others (Fisher and Balazard, 2019). This process requires
lots of time and efforts in success of the projects.
Bank loans:
Lending of funds in the business is done with the help of financial institutions which
provides strong record of financial revenue. This is the first place where businessman go and takes
funds for their daily transaction in business. Most of the business uses bank loan which is essential
to maintain the effective financial structure of company. These loans will helps in generating the
revenue of business operations and makes the business profitable in future.
Advantages: This is the best option for business to get loans because the rates of interest is
very low. Company will get advantages of taking the loans from bank because when they pay
interest on loans that will be the tax deductible expenses.
Disadvantage: Bank requires some types of assets in the business because without any
assets, it is difficult for to get approval on the loan applications of business. Businessman have to
make payments on the monthly basis and if the payments falls behind this than plant and machinery
will be seized by bank (Barth and Sun, 2018). Interest rates will be changes as per the conditions of
market so it will creates problem in business.
Angel investors:
These investors are those who have lots of cash and are tend to invest in the start-up
business. For the business expansion, angel investor provide capital to companies so that they will
easily expand their business in the market and achieve goals and objectives (Hasstedt, Sonfield, and
Gold, 2017).
Advantage: Company did not have to pay funds back with extra interest. Aim of the
investors is to provide financial security with the helps of business ventures. These will gives the
effective and efficient chance to business to achieve success and growth in future. Most of the angle
investors will complete the task of providing funds in less than 30 days.
Disadvantages: These investors are not fit for the investment below from £10000 and more
than £500000 They will have to sells their equity share to the angle investors for funding so it will
affects future of company (Wang, Lee and Walsh, 2018). It required long time in finding the
investor which is suitable for business.

Venture capital:
These are the people who will manage their funds effectively and are invest them in those
companies who have the great level of potential (Kulichenko, 2016). These venture capital is very
appropriate for small and medium size business who are contributing their efforts for the growth
and success in future.
Advantage: The company will get the wealth and expertise in their business. Organisation
will get the guidance in process of business operations with the help of venture capital. The
business get the large amount of equity finance which is provided by venture capital.
Disadvantages: Drawback of this funding is that it is very complicated and long process
because there is need of the detailed planning of business (Goto, Funada and Goto, 2018). This
process involves lots of risk because it takes much time in deciding to invest or not in companies.
This will damage the mission statements of organisation.
Bank loans, venture capital and angel investor are the best sources which provide funds to
organisation. By use of bank loans the company will have to pay low rate of interest on loans so it is
beneficial for the organisation. In the business of Bonmarche different sources of funding will helps
to raise the large amount of money to run the activities of business effectively.
Bonmarche can use the bank loans and venture capital sources of findings to run their
business operation effectively and efficiently. Bank loans will increases the revenue of business by
reducing the expenses of taxes in business (de Andres‐Alonso, Garcia‐Rodrigue and Romero‐
Merino, 2020). By using the method of venture capital of funding will provides the opportunities of
business expansion. So both these sources of funding are very useful for the success and growth of
Bonmarche.
LO 3
Covered in PPT.
LO 4
Covered in PPT.
CONCLUSION
From the above study it can be concluded that planning of success and growth is the
effective activity of business that makes the businessman to track growth of business in revenue. In

small and medium size business they uses different strategies which leads to the future success and
growth. Organisation uses different sources of funding so that they run the operations of business in
most appropriate ways. Company uses the different sources of funding which helps them to reach
the success and growth in future. Systematic management plan is used to achieve the gaols and
objectives of the business.
REFERENCES
Books and Journals:
Derkach, O., Horbas, I. and Stepanova, A., 2019. EVALUATION OF AN ENTERPRISE
COMPETITIVENESS ON THE CONSULTING SERVICES MARKET. Social and legal
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Fisher, R. and Balazard, H., 2019. Funding community organising: diversifying sources,
democratising civil society. Funding, power and community development. p.103.
Giménez, E. L. and Novo, J. A., 2019. A Theory of Succession in Family Firms. Journal of Family
and Economic Issues. pp.1-25.
Goto, Y., Funada, A. and Goto, Y., 2018. Funding sources. Resuscitation. 122. pp.A4-5.
Hasstedt, K., Sonfield, A. and Gold, R.B., 2017. Public Funding for Family Planning and Abortion
Services, FY 1980–2015. New York: Guttmacher Institute.
Hill, C. N., 2019. Dynasty Succession Planning: Strategic and Innovative Approaches in Family-
owned Businesses. (Doctoral dissertation, Capella University).
Kulichenko, V., 2016. Sources of funding for innovative projects and programs in the budgetary
sphere. University Economic Bulletin. (31/1). pp.245-252.
Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
PHAM, T.Q.M., Choi, K.H. and Park, G.K., 2018. Efficiency Analysis for Major Ports in Korea and
China using Boston Consulting Group and Data Envelopment Analysis Model. Journal of
Korean Navigation and Port Reserch. 42(2). pp.107-116.
Pulido, D. and Mandri-Perrott, C., 2018. Maximizing Funding and Financing.
Wang, J., Lee, Y.N. and Walsh, J.P., 2018. Funding model and creativity in science: Competitive
versus block funding and status contingency effects. Research Policy. 47(6). pp.1070-1083.
Online
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Through: <https://www.entrepreneur.com/article/240853>.
Angelova, K. Strategic planning for growth. [Online]. Available Through:
<https://growthhub.swlep.co.uk/topics/new-product-development/article-detail/strategic-
planning-for-growth>.