BTEC Unit 42: Planning for Growth and Business Strategies Report

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This report provides a comprehensive analysis of business growth strategies, focusing on the case of Cash and Carry, a UK-based SME. The report begins with an introduction to the importance of planning for growth and then delves into various funding sources, including internal and external options like bank loans and crowd funding, along with their respective advantages and disadvantages. It then outlines the development of a business plan for growth and scaling up, incorporating elements like vision, mission, corporate values, stakeholder expectations, entrepreneurial strategies, STP analysis, marketing mix, financial information, and a SWOT analysis. Finally, the report explores exit and succession options for small businesses, such as acquisitions and mergers, discussing their benefits and drawbacks. The report concludes with a summary of key findings and references used.
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PLANING FOR GROWTH
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INTRODUCTION...........................................................................................................................3
PART2.............................................................................................................................................3
P3 Sources of funding and its advantages and disadvantages.....................................................3
P4 Build a business plan of an organisation for growth and scaling up a business.....................5
LO4..................................................................................................................................................7
P5 Exit and succession option for small business with its benefits and drawbacks....................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................8
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INTRODUCTION
Planning for growth is one of the most important part of in business since it helps in
working of an business enterprise tracking its growth and profit. The process helps in making
industry use limited resources in driving out perfect outcome which helps in keeping it forward
from its rivals. Organisation taken in this part is cash and carry that is an assembly which started
in the year 2000 within UK. This part covers about. Sources related to funding with their
advantages and disadvantages. This file business plan is being covered succession opinion
PART2
P3 Sources of funding and its advantages and disadvantages
Funding is one of the most important part of every business organization without any
function can be performed within an organization. It is very essential term that is required in
order to make in business grow and attain success with in the market. Money is required in order
to regulate and business processes also it helps in the completion of task more effective and
impactful manner (Liang and et. al., 2021). Funding is maintained with the help of profit and
revenue which is when generated and there are various sources which can be used for editing
money which are crowd funding, angel capital, bank loan and government assistance. In relation
to cash and carry two sources of funding has been explained as follows:
Internal source of funding-
Internal source of funding; these are referred to as all types of funds within an
organisation and is less risky nature to generate these kind of funds. There are various
advantages and disadvantages which have been explained as follows:
Benefits-
Internal source of funding health in generating capital on urgent basis and does not
involve interest rate internet.
It is very much flexible in nature and such point can be raised anytime anywhere at any
time with no deadline
Drawback-
Major problem is that responding impacts and business in negative manner.
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Also at times funds cannot be arranged from appropriate source.
External source of funding
This is referred to the type of source of funds that is been raised through organisation
from outside sources (Mansell, 2020). Organization like cash and carry can raise its funds
through external sources which includes bank loan, purchase, debentures, venture capital and
bank overdraft. Further these are explained as follows:
Bank loan- This is referred to the loan which is been given by bankers to the
organisation. It is very useful form for business in order to make innovation e over new products
possible and makes expansion with exploration. And this period of time within which the loan is
required to be repaid and also interested is applied within it. The time limit is generally from 3
years to 10 years.
Pros of bank loan
It helps in raising funds through banks and provides fixed rate of interest which is very
predictable budget in proper manner.
This reduces burden in relation to monetary matter
Cons of bank loan-
Bank loan Universe land paperwork and also very complex in nature. It is time consuming process.
Crowd funding – It refers to that funds that is raise from large number of audience with the use
of vast online networks like social media, crowd funding websites.It includes some advantages
and disadvantages that are given below.
Advantages- Major benefits of crowd funding are that in this firm easily raise funds with
no upfront fees. In this a person can easily share ideas and give feedbacks and expert guidance to
improve it.
Disadvantages- the major risk in crowd funding is that when the project is failed than it
destroy the image of the company. In this there is a fear of keeping the idea because there is no
right of using patent and trademark right (Olesen and Carter, 2016).
From the above discussion maintained source of funds oak cask and carry use bank loan
method to raise funds for their new product “organic- O” which is related to organic and dietary
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meal. Bank loan for the product development is the best idea because it is very secured type of
loan and contains a fixed rate of interests that does not create any burden on the firm because
there is predictable monthly rate is decided.
P4 Build a business plan of an organisation for growth and scaling up a business
Business plan is that kind of written document which is based o nature of business its
financial position strategy which is to be used in order to make marketing possible. Also it helps
in increasing sales to which profit increases and also includes law statements within it. Hindustan
main focus is over both external and internal factors which impacts and organisations working.
Organisation like cash and carry which is an assembly required in order to make extension of the
business within various markets through its services. Oak cash and carry is an SME which is
their for extending its business over various markets with the existing services of it. In order to
full fill this manger of the company can make a business which is going to help in operating their
business with its services.
Oak cash and carry: Cash and carry is an organisation which is placed within UK and
has a warehouse and provides services in relation to the delivery of goods. Reservation has
formed in the year 2000 within the month of October. This makes an organisation offer trade at
wholesale price.
Vision and mission: Vision of the organisation is to make was formed over people and
communities with the help of IT services. Mission of the company is to create efficiency with
added services and attend satisfaction over the needs of customers.
Corporate values: Search values is very effective since the helps in creating connection
customer t h r o u g h making customer needs their priority. Also leads over creating balance
over product making profit from it (Pan and et. al., 2018).
Stakeholder’s exceptions: These are required over investments to be done for these
investments they expect return. For this purpose only innovation is brought within a product
needs a product development
Entrepreneurial Strategies: In this an organisation operates of a new market with
various other countries Germany and USA. The business from its operations in order to attract
new customers, which helps in making customer base increase within these market.
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STP: Relation to cash and carry this model helps in targeting, segmenting and
Positioning of strategies which held in considering new products that has been brought into
existing market and has been explained as follows:
Segmenting: In this market is divided into various segments which has their own
characteristics. Cash and carry is required to understand behaviour characteristics office
segmented market Targeting: Targeting location carry relation to various entities market research in
introduction of the product and bring it back to global market.
Positioning: In relation to cash and carry it is helpful in making positioning of product
possible in more effective manner.
Marketing mix: Under it marketing manager plays important role which is done through
examine product, price of the mew areas in which market is to be setup.
Financial information: launching of product in an existing market. The Oak cash and
carry has to analyse its finances (Perera and Emmanuel 2018).
SWOT Analysis
Strength Weaknesses
The biggest strength of Oak cash carry is the it
attract lot of customers.
Weakness of Oak cash carry is that innovation
is not there that increases rigidity within
market.
Opportunities Threats
Oak cash carry being new company makes
attraction of customers possible.
Oak cash and carry makes competitors present
within market through reducing sales.
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Evaluation: Through monitoring and evaluating analysis is been used for making growth
and sales of an organization analyzed which helps in modification to be done for increasing of
customer’s base.
LO4
P5 Exit and succession option for small business with its benefits and drawbacks
Acquisition the process in which complete or part of shares with assets is been purchased
by another company overhauling of selling company. Oak cash and carry this upon making
capital investors get attracted. In this advantages and disadvantages which has been explained as
follows:
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Advantage is that it and answers that payment of resources that result into making business
expand its product and services.
Disadvantages that cost involved in acquisition is and complex processes followed.
Merger two companies integrate together increasing operation capacity with productivity. This
location carry is going to face advantage and disadvantage that is
Advantage is editing courage is cost saving that increases profit.
Disadvantages that impact customers mind set in negative manner and organization may
lose its customer percentage(Thornley, 2016).
CONCLUSION
From the above discussion it can be concluded that training for close one of the most
effective and important part which has an organisation in analysing itself within the existing
market conditions. This process in continuous process which helps in managing various kind of
sources also help in arranging funds from them. Then it lead over analysing strength weakness
and opportunities open organisation helps in dealing with external factors. Also in this
acquisition and Merger is been discussed as a source of opinion for expansion.
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REFRENCES
Books and journals
Krueckeberg, D.A. ed., 2016. Introduction to planning history in the United States. Routledge.
Liang, X. and et. al., 2020. Urban growth simulation by incorporating planning policies into a
How to use the BCG Matrix modelCA-based future land-use simulation
model. International Journal of Geographical Information Science. 32(11). pp.2294-
2316.
Mansell, R.L., 2021. Economic development, growth and land use planning in oil and gas
producing regions. In Energy, Land and Public Policy (pp. 187-228). Routledge.
Olesen, K. and Carter, H., 2018. Planning as a barrier for growth: Analysing storylines on the
reform of the Danish Planning Act. Environment and Planning C: Politics and
Space. 36(4). pp.689-707.
Pan, H. and et. al., 2021. Using comparative socio-ecological modeling to support Climate
Action Planning (CAP). Journal of Cleaner Production. 232. pp.30-42.
Perera, N.G.R. and Emmanuel, R., 2017. A “Local Climate Zone” based approach to urban
planning in Colombo, Sri Lanka. Urban climate. 23. pp.188-203.
Ruparathna, R. and et. al., 2020. Climate conscious regional planning for fast-growing
communities. Journal of Cleaner Production. 165. pp.81-92.
Thornley, A., 2018. Urban planning under Thatcherism: the challenge of the market (Vol. 21).
Routledge.
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