Business Growth Strategies and Planning for Bucovina Cash & Carry

This report provides a comprehensive analysis of Bucovina Cash & Carry, a small business transitioning from a shop to a wholesale and restaurant model, focusing on planning for growth. It begins with an introduction to growth strategies and market research, emphasizing the importance of market analysis for small and medium enterprises. The report then delves into Task 1, which includes an analysis of key considerations for evaluating growth opportunities using Porter's Generic Strategies and PESTLE analysis to gain a competitive edge. Task 1 also applies Ansoff's matrix to evaluate growth opportunities. Task 2 explores potential funding sources, their benefits, and drawbacks. Task 3 focuses on designing a business plan for growth and examines various exit or succession options available for small business organizations. The report concludes with a summary of the findings and recommendations for Bucovina Cash & Carry's future growth.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities ....................................3
P2 Apply Ansoff's matrix to evaluate opportunities for growth............................................7
TASK 2..........................................................................................................................................12
P3 Assessment of potential source of funding along with there benefits and drawbacks....12
TASK 3..........................................................................................................................................13
P4. Designing a business plan for growth............................................................................13
P5 Various exit or succession options which are available for small business organisation.20
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
Planning for growth has critical role within small as well as medium enterprises for
expanding their business through which they can acquire high profitability. It is essential for top
management to carry out market research to give information related with various market
opportunities thereby leads alterations within system (Zheng and et. al., 2013). This report is
based on Bucovina Cash and Carry which is small organisation with less than 10 employees.
They were a shop then expanded into a wholesale and finally to a restaurant. This report
comprises of porter's generic, Pestle analysis and Ansoff's matrix for examining growth
opportunities. Along this, succession and exit options for small business are also assess by
business person which is described in the report.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities
Small and medium organisations have higher possibilities to expand their business and
market by which they can enhance their revenue as well as sales volume. It is crucial for
executives to possess information related with different aspects by which they can make use of
opportunities for for growth (Wasim, 2014). Porter's generic strategies as well as PESTLE
analysis has bee used by Bucovina Cash and Carry for gaining competitive edge within a market.
Competitive advantage: Each sector posses large number of organisations, they can be
either small, medium or large. Therefore, it is essential for an organisation to design their system
with respect to conditions which are prevailing within market. Apart from this, they need to
implement their business activities by the use of specific position within market. Executives of
Bucovina Cash and Carry must formulate strategies to gain competitive edge over their rival
firms through which they can attract more number of customers towards services which are
being provided by them. For this, they have been making use of Porter's Generic model, this has
been elaborated beneath with respect to Bucovina Cash and Carry.
 Resources: They deals with wholesale of fruits and vegetables along with this at present
scenario they are opening a restaurant. Apart from this, they possess highly qualified staff
who is responsible for rendering enhanced services.
 Capabilities: They furnish their services at affordable prices which will aid them to have
more number of customers along with retain their employees.

 Core competencies: They make use of fresh fruits as well as vegetables while baking
their dishes which enables them to provide their customers with unique taste. This acts as
a strong factor which provides them competitive vantage in market.
Porter's Generic Model: This describes how a organisation can attain competitive
vantage across their selected market. It is given by Michael Porter who was a economic
researcher, as per them organisation need to possess competitive behaviour by which they can be
successful within market. This concept has been utilised by Bucovina Cash and Carry for
sustaining in the market as well as furnish long term benefits to their customers. The major four
tactics which have been used by executives are illustrated below:
Cost leadership: Bucovina Cash and Carry store is creating an impact on buyers by
offering services at low prices, these prices are being offered by them on regular prices so that
they can acquire more number of customers (Van Oort, 2017). The products as well as services
which are being furnished by Bucovina Cash and Carry are at cheaper rate as compared to their
competitors but they make sure that their quality is not hampered. Organisation source their
products from suppliers at low cost which makes them to provide goods at low prices thereby
they can earn profit at low margin. Volumes which are served by them assists them to maintain
continuous market as well as expand their market shares.
Differentiation: This is the other strategy which is being used Bucovina Cash and Carry
for attracting more customers by providing creative as well as unique services and products. In
this case, executives need to bring alteration within their existing system and execute innovative
technologies by which they are able to furnish high quality services to buyers. Management of
Bucovina Cash and Carry needs to create brand recognition for this they need to ensure that they
provide the unique services like they can provide their customers with all vegetables throughout
the year as well as if any customer make demand for any specific product then they can provide
it at as soon as possible. They need to provide them at reasonable prices so that they can have
strong customer base.
Focus: This is key tactic which has been used by organisation in which they aims at
specific segment through which they can acquire more customers for enhancing profitability as
well as sales. The goal of executives of Bucovina Cash and Carry is to render services by which
demands of people can be accomplished. This further comprises of two strategies, they are:

 Cost focus: This assists organisations to to identify advantage associated with cost within
target market. For this, Bucovina Cash and Carry can carry out promotional
advertisements and inform people about services and products which are being offered by
them. This assist them to captivate more number of customers to purchase there products.
 Differentiation focus: It is other strategy which will facilitate Bucovina Cash and Carry
to chose a market segment, through which they can render unique services (Stroud,
2012). This assist them to provide quality products and compete with other organisations
within market.
Bucovina Cash and Carry can make use of cost leadership strategy for gaining attention
of large number of people and influence them so that they can opt for their products. So they can
focus on customers who need to healthy diets at affordable prices.
PESTLE Analysis
This is a framework that is used by companies in order to derive wholesome knowledge
of the impact of macro environmental factors upon the functioning and procedures of business
(Seto and et. al., 2014). In this regard, the management team of Bucovina Cash and Carry has
made use of this analysis to effectively find out the influence and deal with the adversities in an
optimum manner. On the basis of this analysis, the strategic and growth choices are made by the
entity to feasibly encounter growth in near future. Thus, the PESTLE framework applied to
Bucovina Cash and Carry is presented as follows:-
POLITICAL FACTORS
This comprises of the aspects associated with the government and political systems of a
nation. In this regard, the political system of United Kingdom is strong and stable which presents
opportunities for entity such as Bucovina Cash and Carry to effectively carry out its operations in
a feasible manner. By gaining knowledge of policies and procedures existing within the nation,
the company can adopt and conduct operations that do not breach any of the regulations and
thereby gain acceptance from people as well as government. However, it has also been analysed
that the occurrence of terrorist attack or political instability within the country can pose threat to
the existence and sustainability of this SME within UK.
ECONOMICAL FACTORS
The strong economic conditions of UK present opportunities for entities like Bucovina
Cash and Carry to tap advantage of the exceptional infrastructural, communication,

transportation, logistics, supply chain and other facilities within the nation and significantly
enhance the current market share (Seltzer, 2013). However, the economy of this nation is
currently affected by BREXIT which has caused a number of fluctuations within the corporate
world. The price of pound has fallen within the nation leading to recession and lowered
purchasing power of buyers. This tends to create threat for the entity and to deal with this, they
need to offer products at relatively lower prices so that people can easily afford it.
SOCIAL FACTORS
The increasing changes taking places within the cultures and lifestyles of people tend to
create both opportunities as well as threats. The opportunity in this regard is that Bucovina Cash
and Carry can offer products to customers in market place as per the latest trends and preferences
of people. This helps the entity in gaining satisfaction from people, thereby enhancing its profits
as well as sales. However, the identification of a consumer trend by a rival firm before Bucovina
Cash and Carry can create risk for the organisation and result in decline of its market share and
customer base.
TECHNOLOGICAL FACTORS
A number of advancements keep on taking place in the corporate world resulting in
generation of lucrative opportunities for companies such as Bucovina Cash and Carry. Thus, by
making use of the latest trends and technologies, Bucovina Cash and Carry aim at gaining the
attention of people and satisfying their needs and wants so as to retain them for a long duration
of time in future (Ravetz, 2013). However, presence of rivals in market may create difficulties
for the respective organisation as they also possess the resources as well as the capability to
make use of such technologies.
ENVIRONMENTAL FACTORS
In today's era, it is imperative for an organisation to adopt eco-friendly techniques in
order to gain the attention of people and make the image in the eyes of customer as an
environmental friendly entity. In this regard, Bucovina Cash and Carry fosters sustainable
development and adopts the 3R's in order to give significant contribution to environment as well
as society.
LEGAL FACTORS
Bucovina Cash and Carry abides by all the stipulated laws and regulations in order to
ensure avoid getting indulged in negative consequences as it hampers the image and stake of

organisation in global market place (Mell, 2015). Bucovina Cash and Carry gains knowledge of
all such laws that pertain to the sector within which it operates so that it can enforce a culture
wherein employees realise the significance of complying with the laws to maintain its market
positioning and instilling a sense of loyalty among customers.
BCG MATRIX
BCG matrix: Business models are dependent on rendering services as well as products
which are profitable. It is a growth-share matrix which is portfolio planning model that is being
founded by Bruce Henderson in 1970. They are segregated into four categories that are based on
market growth as well as market share, shown beneath:
 Dogs: They possess low market share and have minimal growth rate, they neither
generate nor consume large amount. They are cash traps as money which has been
invested in business has little potential.
 Question mark: This shows higher growth and consumes high amount of revenue as
they consumes low market shares but revenue generated is not high.
 Stars: They produce high amount of cash as they have stronger market shares but devour
higher amount of cash as they provides high growth rate.
 Cash cows: They possess return on assets that is higher than growth rate and generate
high amount of cash as compared to one consumed by them.
Bucovina Cash and Carry Pvt. Ltd can make use of BCG matrix to identify which
products or services will provide balance in between products which will provide high amount of
growth rate.
P2 Apply Ansoff's matrix to evaluate opportunities for growth
Ansoff matrix refers to the strategic framework which helps company in understanding
their best feasible growth opportunity. The framework is helpful for companies understanding
that what is the competitive situation of the marketplace and how they can easily gain
competitive edge effective (Logan and et. al., 2013). The framework includes certain market
strategy that helps businesses in improving their business performance. In context of Bucovina
Cash and Carry Pvt. Ltd., it can be said that top management team of this restaurant have
conducted Ansoff matrix analysis in order to check out different market situation. The marketing
model include certain marketing planning strategy such as product development, market

development, market penetration and diversification. All four strategies of this model are stated
as below:
(Source: Ansoff's Matrix, 2018)
 Market penetration: This strategy states that business organisation can improve its
business performance and grow effectively by selling existing product into existing
market place (Kemp, 2018). This strategy is quite favourable and beneficial for the
business who do not wishes to expand their business outside their location. With
reference to Bucovina Cash and Carry Pvt. Ltd. The company can easily grow faster
within the existing marketplace as here the marketing team of the company can find out
untouched customers at the location which are not grabbed by them in past. By finding
out new customers, Bucovina Cash and Carry Pvt. Ltd. Can easily improve its sales
performance of their restaurant in Colindale, UK.
 Market development: This strategy states that business organisation can grow their
business by selling existing products and services in new market place (Kapur and et. al.,
2012). In context of Bucovina Cash and Carry Pvt. Ltd., the company could easily
influence interest of customers by offering similar product in the new area. It can be said
that the company can use this strategy for its growth because, they know about the
Illustration 1: Ansoff's Matrix

strength of their product and can easily persuade customers towards the product by telling
them its benefits. Along with this, access to new market also helps company in
approaching maximum number of customers who could result in improvement of sales
performance of the company.
 Product development: According to this growth strategy, businesses are suggested to
grow faster by intrioduc8ing new product in the existing marketplace. In context of
Bucovina Cash and Carry Pvt. Ltd., it can be said that the company could use this
strategy by providing best new product to customers in the existing marketplace. It can be
said that business organisation can easily grow with usage of this strategy can company
can easily develop new product according to the requirement of customers. So, when
customers gets the new product according to their requirement they feel attracted to the
company. Along with this, it also influences customers to buy the same product again and
again so that their needs could be satisfied in right manner.
 Diversification: It is seen as the most riskier strategy as according to this, business
organisation are suggested to introduce new product in new market place (Hawkins,
2014). With reference to Bucovina Cash and Carry Pvt. Ltd., it can be said that the
company is small in size, therefore it should not go for this strategy as they will require
huge capital to establish business in new area.
On the basis of above made discussion, it has been analysed that the product development
is seen as the best growth strategy for Bucovina Cash and Carry Pvt. Ltd. As it focuses on
providing new products to customers within the same location.
Advantage of Ansoff Matrix
 The growth matrix is presentable to stakeholders
 It only focuses on possible business growth strategies
 It also highlights possible risk for business strategies.
Limitation of Ansoff Matrix
 The method does not provide accurate prediction to business strategy.
 It does not accounts business activities of the competitors.
Impact of Ansoff matrix on SME
Bucovina Cash and Carry Pvt. Ltd. Can easily target Romania customers in UK so that
they new food items can be developed for them in order to persuade their interest. As a result,

with this strategy the company can improve their sales performance in Colindale. This also
result, in improvement of profitability of the company.
Collaboration
This can be referred to as the practice whereby personnel work in collaborative manner in
order to attain the goal and objective of business. This is of two types, briefly explained below:- Synchronous: Hereby, every person communicates on a real time basis. This can be done
in the form of online meetings conducted by way of instant messaging and Skype. Asynchronous: Hereby, in this, the communication is time shifted, while simultaneously
uploading documents or annotations to shared media.
Mergers
This can be referred to as the accumulation of two or more companies through the closure
of one of more of those entities by way of absorption.
Benefits: This leads to increment in revenues with the pool of effective and efficient
resources and funds by organisations.
Drawbacks: Increased market share can lead to monopoly of the company resulting in
increment of prices and thereby threat to revenues earned by entity.
Acquisition
Whereby an organisation purchases majority or all of the shares of another entity in order
to gain control over the corporation, it is referred to as acquisition. Hereby, one company
becomes the parent company of another organisation.
Benefits: Low number of barriers to entry acts as a merit for this, leading to an
increment in global market share.
Drawbacks: Cross culture conflicts between parent and subsidiary company may take
place thereby leading to complexities.
Joint ventures
This is the pooling of resources and expertise of two or more companies in order to attain
success in market place.
Benefits: Easy access to new locations acts as a merit for this.
Drawbacks: The conflicting objectives of all the partners may lead to generation of
conflicts.

Strategic alliances
It shows interrelationship between different businesses that allow each and every
involved firm in attaining their business objectives instead of focusing on their own achievement
only. It can be seen as the agreement in which business organisation agrees on certain condition
towards one another in order to grow quicker.
Benefits: It enable every partner to perform only those business activities in which they
are capable giving their best. Along with this, they also works according to the competencies and
their resources in order to raise their sustainability ratio.
Drawbacks: This might create risk of leaking of organisational secrets among the chosen
strategic partners.
Horizontal integration
It is seen as the procedure in which one company merges with its competitors in order to
strengthen their position within the industry with each others support.
Benefits: It helps companies in raising their power over supplier.
Drawbacks: It reduces level of flexibility as both the company might not agree to bring
innovation in their products.
Vertical integration
It is seen as the competitive strategy which is being used by company in order to control
distribution of services of the company.
Benefits: It improves supply chain system of the company which meets the requirement
of each distribution channel.
Drawbacks: It will be challenging for company to continue basic competencies while
they concentrates on enhancing their business activities.
Bucovina Cash and Carry Pvt. Ltd., can go for horizontal integration as with this, they
will merge with the existing competitors at market place. It will contribute in the enhancement of
market share within the industry.

TASK 2
P3 Assessment of potential source of funding along with there benefits and drawbacks
Funds plays very essential role in order to perform various business activities effectively
and on specific time period. In general, there are various sources of funding adopted by almost
every organisation for smooth running of business functions as well as for accomplishment of
organisational goals and objectives (Hamnett and Forbes, 2012). In reference to the present
context of Bucovina Cash and Carry Pvt. Ltd., owner of the company invested around £25000 in
order to accomplish their goals but on the other hand they need £40000 for the expansion of
business functions effectively. In order to gather funds, top authority of the company chose both
internal and external sources of funding, for collecting £50000. with the help of these sources,
owner can easily gather enough amount of money in very short period of time. All these sources
are explained in detail with the help of following points:
Internal sources: It refers to the source of funds with the help of which managers can
collect funds within the organisational premises. According to this source, company can raise
funds with the help of retaining profits, by controlling working capital, sale of assets and many
more.
External sources: It refers to that source of fund gathering where owner collect and raise
funds from various sources present outside the organisational premises. Such source includes,
bank loan, angle financing, crowd funding and so on.
 Crowd funding: It refers to one of major source used by various entrepreneurs in order
to gather and raise funds for smooth functioning of business activities (Gounaridis,
Chorianopoulos and Koukoulas, 2018). Generally, crowd funding can be done through
various online portals which consist of websites, social media and many more. In this
method, owner collect small amount of funds from large number of people.
◦ Advantage: Main advantage of this source is that owner can grab attention from
large number of customers across the world. And on the other hand, it will aid the
company by improving its brand position at the competitive marketplace.
◦ Disadvantage: Drawback of this source is that, it includes different type of legal
formalities. As a result, it will make it complex, difficult and lengthy as well.
 Bank loan: On the other hand, bank loan is also an external source of funding. It is used
by almost every organisation in order to collect funds which is quite safe and secure.