Business Growth Project: LovetheSales Post-Brexit Analysis

This project delves into the business growth strategies of LovetheSales. It begins with an introduction to business growth and its importance, followed by an analysis using the Boston Consulting Group (BCG) matrix and GE-McKinsey strategy to identify growth opportunities. The project evaluates growth opportunities using Ansoff's growth matrix and explores potential funding sources, along with their drawbacks. A business plan is designed, incorporating financial information and strategies for business scaling. Furthermore, the project assesses exit and succession options for the SME, outlining their benefits and drawbacks, and concludes with recommendations. The project covers various aspects of business development, from market penetration and product development to diversification and market expansion, providing a comprehensive analysis of LovetheSales' growth prospects.

BUSINESS FOR GROW

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
PROJECT PART 1.........................................................................................................................4
Best growth opportunities............................................................................................................4
Evaluation of growth opportunities.............................................................................................5
Sources of funding.......................................................................................................................7
PROJECT PART 2..........................................................................................................................8
Designing business plan for the growth with financial information and strategies.....................8
Succession options for SME......................................................................................................15
RECCOMENDATION..................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Business growth is that stage which each and every business want to reach in order to
expand itself. For achieving growth in the business usually seek many opportunities which can
be used for generation of more and more profit. The growth of the business is also known as
their functions which basically is considered to be the part of the business. The growth of the
business also changes due to the different industrial growth trends and is also known has a
creation value which can affect the business. This project will discuss growth of the
LovetheSales.com business growth after the Brexit. In this project the Boston Consultancy
Group matrix is used for planning the different tools for the graphical representation of the
products and services of the company. This is what helps the company to keep, sell and also
invest more in their business (Krutilla and et.al., 2021). This project also uses GE-Mckinsey
strategy which is totally based on those tools which help the company with what it contains. This
matrix is also known as the systematic way in which the business cooperation helps as the
purpose of prioritizing the investments of the units of the business. This project will provide the
analysation of the key considerations of the company which is responsible for making the
evaluation of the growth of its business. This project evaluates the opportunities and growth of
the company with the help of Ansoff's growth matrix. In this project the potential sources of
income of the company is shown towards the business and also discusses the drawback which
each of the source can have. This project also helps the business with a growth plan in which all
the financial and strategical information about the company for scaling up of the business is
done, This project will help in the assessment of the exit and or succession options of the SME
and also explain the benefits and the drawbacks it can have on each of the option of the
company.

MAIN BODY
PROJECT PART 1
Boston group consulting group matrix is a form of group share matrix which is used as a
planning tool. It uses different graphical representations of the products of the company and the
services in the process of helping the company and taking appropriate decisions. BCG matrix is a
type of growth share model which is used to represent the growth of business and market share
of the firm. Whereas, GE matrix is a form of portfolio matrix which helps in making strategic
choices for different products depending on the position in the grid.
Best growth opportunities
Boston group consultancy group is used for lovethesales which helps in identifying the
strategies of the business regarding the growth opportunities. Lovethesales is a small enterprise
which sales products from all the favourite brands. It is the site for online shopping which makes
it easy for them to shop the sales from under one roof (Mohajan, 2017). The business if the
company is at booming stage and thus, it is important to identify the growth opportunities for the
business. The business strategies of the company are required to look closely about continuation
or divesting them.
Stars: This is related to the high market share as well as high market growth. The
financial services offered by the business comes in the star category in Boston consultancy group
for lovethesales. The operation of the company is in the fashion industry where there is a high
scope for future. Lovethesales must try to integrate vertically with the help of acquiring more
number of supply chains. This process will help the company earn more revenue as this business
unit has potential. This company has not managed to put themselves in the star category as it
requires expansion of the business and providing products and services to other locations. This
marks the steps for continuous growth and earning the profits it desires.
Cash cows: This category of the matrix is related to making more cash flow than the
amount of expense used for the business. The management services by the suppliers of the
company is the cash flow for the lovethesales brand. The company with the digital approach has
achieved a good amount of revenue (Dawes, 2018). However, the company is spending less
within the market. Low investment in the fashion industry is a waste in order to keep the process
of changing going on as the tastes and demands from the customers which the company targets.
Having low growth in the market, lovethesales will not be able to invest large amount of money

in the market. The company must put more attention on introducing low price range fashion
related products for their target audience.
Question marks: This is a question phase where lovethesales have more growth
opportunities when it will invest more amount of cash however, the company has low market
shares so this factor will not result in generating generating any amount of cash. The opportunity
to increase the market share is by divesting at fast pace. At the current stage of the company, it
should try to focus more on expanding their business and its activities with the help of entering
into new markets. When the company will invest the amount by increasing the market share will
result in generating more cash. The company operates digitally so it will be easy for them to
expand on the international and new markets. There are some products which generate low
profitability when compared to the star products and cash cow. This weakness posses potential
for suture growth with some amount of uncertainty. During the time when the market conditions
are stable can help these products to obtain more market share.
Illustration 1: Boston consultancy matrix

Dogs: It is hard for the company to hold their market shares in the UK as there are some
products from the company which are not performing upto the mark while consuming more that
what they are generating just like the electronic products in the case of lovethesales coming in
this category. This is because there are many competitors in this sector which have succeeded to
gain more customer trust and so are dominating the market (Chiu and Lin, 2019). This makes
lovethesales not creating a space for itself. The company must invest more on the products in
order to come in cash cow category or else stop this to use the funds in some other growing
category. The low market share and low process of development results in not generation as well
as consuming of cash. It is important for the company to eliminate the assets by enabling
divestment liquidation strategies. It will help in holding the market share within the UK.
Evaluation of growth opportunities
Lovethesales is a known fashion retailer company which operates its business with the
help of online platforms. The company offers latest fashion products and beauty at the best
prices. The company adds more value with their simple and amazing fashion collection at
affordable prices. Every organisation is looking for growth and new business strategies to
achieve them. Ansoff matrix of lovethesales will focus on main products and market
combinations which will help them to evaluate the growth opportunities.
Market penetration: Market penetration for this company is more about forming the
growing strategy for the company in the already existing markets. The company has to sell more
quality than quantity which can be achieved by deeply penetrating the market. It can also
increase the market sales with the help of this process. Addition to this, company will have to
move its step forward to encourage the customers in buying more with the help of some different
market techniques. The company is very successful in attaining more sales for existing products
in the current market. The price range offered by the company is very strategic as well as their
marketing process. It has also started the loyalty points which the customers can earn and
increase then for discounts. It motivates the customers as well as increases the sales for the
company. It can also try to offer some gift vouchers on special days.
Product development: The use of Ansoff matrix promotes more product development.
Development of new product and introducing it in the market or the modification of already
existing product can increase the market share. It helps in creating more awareness among the

target audience with the new product in action in order to attract them. Lovethesales is the
company which offers large amount of sales and therefore is well known for being affordable in
the market. It has introduced new products such as accessories, footwear and bags at the
reasonable prices. Addition to this, the company offers fashion products for both men and
women.
Mark development: This category deals with selling of already existing products into
the new markets. This way, the company can increase the sales and the customer base by gaining
the interest of customers from different market segments. This expansion can be on the basis of
geographical expansion and even the demographic expansion. Lovethesales can make use of
different marketing strategies to increase their market awareness (Hossain and Kader, 2020).
Lovethesales is the company which operates on the digital platforms and the heavy competition
in this sector has the power to eliminate the company when not focusing on developing new
markets. The company must invest more in the research and development which will help in
identifying the possible new markets for the company as well as the target customers for the
products they offer. Research and development also helps in distinguishing and learning about
the new market cultures, latest market trends and also the behaviours of customers. It helps the
company to examine the consumer behavioural patterns in the already existing markets.
Diversification: This is a great growing strategy for companies like lovethesales.
Diversification process reflects more on the new products coming from the company in the new
markets. It also helps in reducing the loss due to risks taken in a greater area. Diversification
provides the company with a stepping stone which will help in entering the new industry. This
strategy for business is a bit risky when the business is focused to move in new markets.
Lovethesales tries to diversify itself. Vertical diversification helps in growth and business
development with the help of introducing new products in the already existing product lines.
Company can introduce new products and launch them according to the shared similar interests
and economies along with visiting products. Diversifying into physical stores helps in attracting
new customers from around the locality (Cheung, 2017).
Option for growth
Market penetration

Lovethesales is making use of the technological advancements and has become
successful in opening for new opportunities by investing in the digital platforms and the
innovations in the marketing strategies by investing in the website and other mobile applications.
The products available on this e-commerce site has increased. To work more into the digital
market and engage with the customers helps in increasing the market share and developing some
growth opportunities with the help of launching advertising campaigns and live sessions on
social media platforms. The company took advantage in the already existing market and getting
new competitor customers. The company is improving their product line and attracting new
customers with the use of new and innovative marketing and technological techniques.
Sources of funding
Finding the different sources for funding is very challenging for the small enterprise such
as lovethesales. Having a proper access to the capital requires a lot of time and effort and funds
are important to be successful. There are many options for the different ways to attain the
working funds and capital.
Angel investors: This refers to an individual who is interested in investing in the
company as a form of an entrepreneur. Angel investors offers one time investment which will
help the business to lift from the ground. They can also offer continuous supports according to
what business is demanding for growth and change. Such investors focus more on the success of
business rather than just aiming to attain big profits . Angel investors are looking for more high
return values on their money and are interested in working for the particular industry while
mentoring new generations of entrepreneurs. The benefits of using angel funding are that it
provides access to the investor's understanding and knowledge in that particular field. It offers
better discipline with the help of outside scrutiny. There are no repayments and interests on the
principle amount. Some of the drawbacks of this type of funding is that it is not suitable for very
low or high funding. Moreover, it takes longer time to identify an angel investor. This funding
requires to give up the shares of company's business.
Crowd funding: In this source of funding, the company is not beholden to the venture
capitals or any source but the company is open up for the funding to the public. This process
involves using small amount of capital from a larger group of individuals which are related to the
finance in a business venture. This type of funding helps in making use of easy accessibility and

defining vast number of networks with the help of social media and websites (Hogan, Hutson,
and Drnevich, 2017). It will help in bringing investors and entrepreneurs together which holds
the potential to increase with the process of expansion in the pool of investors. The advantages of
crowdfunding includes that it is the fastest way to raise the desired funds with no additional fees.
Pitching the idea behind the business is very and creates more value for the marketing purpose
and thus gaining more media attention. There is a scope for attaining feedbacks which helps in
improving and being the best. Along with this, crowd funding is a good way to test the reaction
of target customers regarding the product and service. Investors can track the progress of the
business which helps in promoting the brand with the help of networks. Disadvantages of
crowdfunding includes that this source is not an easy process when compared to the traditional
ways of funding (Qadir, 2020). One of the major disadvantage is that when the target funding
amount is not reached, the finance pledged will be returned to investors and the company will
attain nothing.
Venture capitals: It is the most commonly used source of funding for the small business
such as lovethesales. Such investors will invest in the company which has the potential to grow
on a long term range. The risk is more from the side of investors as the growth is based on
perception and projections. Investors will invest in the venture capital as the potential for more
than the average return values. These capitals deals with the uncertain business. Investors will
expect having influence over the business. The advantages of the venture capital is that it invest
in lump sum amount of money in the business (Loredana, 2017). They bring out lot of
experience as well as expertise along with the incoming money. Venture capitalists are periodical
investors which will leave the business at some point of time. The drawbacks of venture capital
is that the profits of the business are shared with the investor and the whole process is lengthy
and complex. Venture capitalists will look forward to influence the strategic decisions of the
company in the process of taking control of the business.
Other sources of funding
Savings: This is the easiest source of funding for a small business such as lovethesales. In the
situations where the business is requiring the need of capital, the owner can use its personal
assets which can be in form of stocks, mutual funds, real estate and many more to raise the

required amount. The owner can sell these assets or take some loan on the same. They can even
invest their personal capital and give loans to own company.
Banks: There is a special department in the banks which is related to providing loans to small
and newly established companies. In order to get the loans, companies are supposed to fulfil
some criteria set by the banks. These criteria are regarding the earning potential, annual turnover
and even the credit scores. There are different types of loans such as working loans, term loans
as well as loans against property. Company such as lovethesales have the freedom to choose the
type of loan depending on their requirement.
PROJECT PART 2
Designing business plan for the growth with financial information and strategies
For the business of LovetheSales.com its improvement can be done with the help of a
Business plan. This will help the organization to improve its financial and strategical objectives
in order to scale up the business of the organization. LovetheSales.com is an online fashion
retailer which purchases products from lots of other brands and provide them on its website in
one place which will helps the customers to make the choice and comparison between different
products of different company. This is the method in which the organization is able to promote
its business. The business plan of the organization is formed with the help of the following
(Peng, Jia and Chan,2021).
OBJECTIVES :
The main objectives of this business is can be understood as an E-commerce business
website. This type of business drives the profitability of the company with the help of the cost-
reduction of the company and also the customers to reach their desired products in different
possible ways. The main objectives of this company are,
Reduction of management costs-
For this business the main aim should be to reduce its total cost and also to increase its
total revenue. One of the main way in which this business can reduce its cost is through
automation process. With the correct use of digital marketing the cost of the company can be
reduced so that it can drive the customers of the business towards it website.

Business relation development-
With the help of the business development and increase in the communication of the
company and also its customers it can be easily successful in development of the business
relationship it has with customers.
Enhanced customers experiences-
For this business it is necessary to make sure that the experiences which the customers
have on the website of the company is absolutely upto the point. The reason for this is that the
main reason for the success of this business comes because the customers like to visit the
websites as they get what they need for the comparison of the fashion products. This website
makes it easy for the customers to make a selection (Lingenbrink and Iyer, 2018).
Increasing loyal customers-
The customers for a business are the core towards all the strategies of the company as
they bring revenue to the company. This is the reason why the companies want to have more and
more loyal customers. Specially after the events of Brexit when the uncertainty of the market is
high it wants to make sure that there are some customers which always purchase for its website.
STP :
STP is a model which consists of three main steps which allows the business to analyse
the different ways of making benefit and also the growth for the business. This model consiste of
the following,
Illustration 2: STP analysis

Source : ManojB903, 2017
Segmentation-
Segmentation is the process in which the organization divides the type of its customers.
In other words company uses segmentation for understanding the division of its customers into
different groups which have similar characteristics and needs. There are different ways in which
an organization segments its customers. Demographic, in this method of segmentation the
company divides the customers as per the age, marital status, gender and also sexuality
(Dekimpe, Geyskens and Gielens, 2020). This can help this company to plan its websites and
also apply filers for enhancing the user experiences. Geographic, in this method the organization
divides the customers into the places they are located, by country, region, state and even city.
This information can affect the company as the people of different places have different choices
and preferences. Psycho-graphic, this method of segmentation divides the customers from their
personality and affects the way in which the think and also their life style. This information is
handy for the company as it allows them to provide products for the people of different life
styles. Behavioural, segmentation allows the company to understand which customers are loyal
and which are not going to provide any benefit to the company (Ariffin, Mohan and Goh, 2018).
Targetting-
Once the segmentation of the customers is complete the company knows about the
different types of customers and next step for the company is to chose which type or section of
the customers are beneficial for the success of the company. Targetting of the customers involves
understanding the behaviour of the customers segment and then analysing the correct market for
the products of the company. For this company the target customers are those who are frequent
online shopping users. This company can also target customers which have high standard life
style and want to compare the most brand products on the company website (Luc and et.al.,
2020).
Positioning-
After both the segmentation and targetting of the customers it is now important for the
company to position their products in such a manner that the targetted segment of the company
gets attracted to its website for making the purchase. In these methods this company can use the
digital marketing strategy for promoting the business of the company where the targetted
segment of the company can view it. This can be the use of social media which will allow the