Planning for Growth: Strategies and Business Plan Analysis Report

This report, focusing on business growth planning, delves into key considerations for evaluating growth opportunities, including the impact of digital media on business. It examines Ansoff's growth matrix and potential sources of funding, such as angel investors and venture capitalists, along with their...Read More

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P.1 Key considerations' for evaluating growth opportunities ................................................3
P.2 Ansoff' s growth matrix....................................................................................................4
TASK 2 ...........................................................................................................................................6
P.3 Potential sources with benefits and drawbacks ...............................................................6
TASK 3............................................................................................................................................7
P.4 Business Plan....................................................................................................................7
TASK 4 ...........................................................................................................................................9
P.5 Exit and succession option with benefits and drawbacks................................................9
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Planning for growth is refers to the appreciation that is provided by the management for
the organisation as the main aim behind every business is to earn more profit by gaining success
so that they can retain in the market for longer period. There is a very deep impact of digital
media on the business as this helps in communication and after this communication solve the
rest of the problem as it helps the company to connect the world so that they can collaborate for
the growth and the betterment of the company. Communication builds relationship among the
whole world as the main factor of this is social media and mobile technology. These factor
affects the business in all the way possible as the make the way for the success of the company
that leads to the growth in the market.
TASK 1
P.1 Key considerations' for evaluating growth opportunities
Growth opportunities are the chances that is gained by the company so that they can
achieve the success along with the organisational goals. A unicorn company is a start up
company that deals in the retail market so that they can grow and expand in all over the globe.
Social media and mobile technology bridges the distance between the customers and the
company so that they can connect with them and will be able to build a good relationship on the
global basis. Some key considerations are as follows : Turnover : There is great impact of digital media on business as unicorn is a retail
company and this digital medial helps it in communicating with others in so many
manners so that they can build good relationship by collaborating to grow in the market
(Pham, Yamaguchi and Bui., 2011) . This collaboration helps unicorn in raising its
turnovers so that they can retain in the market for longer period by achieving profit. If the
firm will earn more profit than it boost the morale of the employees and will be able work
more efficiently to achieve the organisational goals so their firm can grow in the market
with the help of digital technology. Return on investment : The right use of digital media will ensure the growth of the
company as they will get the higher return on their investments . ROI s one of the best
way to calculate the profit as it clarifies that the company has achieved its target or not.
By using digital media unicorn can communicate with all on the global basis as they can

easily connect with the customers so that they can market and collaborate with others for
better growth opportunities in the market. Customer traffic : Digital media affects the business to the core as there is now more use
of digital technology than others so that they can retain the customers and will be able to
generate more customers by serving them the best of them (Pallagst., 2010) . Unicorn is a
retail company that starts its business with the basic aim to grow in the market and earn
more profit than others. Digital media will build the relationship with the customers as
customers will get to know about their products and services and the company will get to
know about the choices and preferences so that they can serve the products according to
the taste of the customers. Company can manage its customers digital as per their
preference. Sales : The correct use of digital technology will increase the sale of the products and the
services as with the social media and digital technology the can access the customers
easily to sale their product and customers can easily reach to the customers for buying the
product. Unicorn company market its products and services online so that they can access
the maximum people who are using social media and mobile technology in order to
increase sales. The digital media ensure the growth of the company in the market and
generates more new growth opportunities.
 Profit : Sometimes digital media works tremendous for the company as they earn more
profit with the use of that. Profit earning and maximisation is the basic aim behind the
start up of the business in the market as without profit the company would not be able to
survive for long. Digital technology is the best way to market as the right use can make
the future of the company and generates many growths opportunities in the market
(Pallagst., 2010) . Profit brings efficiency in the work of the employees as they get more
if the company earns more so Unicorn manages the digital media in systematic manner to
ensure growth in the market.
P.2 Ansoff' s growth matrix
Ansoff growth matrix is a model that is used for he strategic planning that provides clear
directions of a framework to help the executives, senior manager and marketer for the future
growth of the firm. This matrix has four parts which covers the each and every part of the
market. Digital technology affects the market very deeply as the right use of this will help the

firm in getting the definite success and position whereas at the same time the misuse of this will
ruin the company in and out. Through digital media the company can communicate to the whole
world and collaborate with others as this builds a strong relationship through social media and
mobile. Unicorn company is a retail company as it targets the retail market and access the
customers through digital media and mobile in order to sale its gods and services in the market in
a more efficient way. This matrix has four parts that affects the growth opportunities are as
follows : Market Development : Unicorn company is a retail company and target new market and
new areas of the existing market by applying digital technology everywhere as they sell
more things to different people through social media and mobile as they are used by all
nowadays (Moseley., 2013) . Social media and mobile bridges the gap between the
customers as they can provide more by applying less cost and this leads to increase their
profit and digitally it is very simple for the company to manage the customer's data
world wife. This point of the matrix use the marketing mix as they provide the
opportunity for the growth with the use of different channels that is used by the company
for selling their product. Growth opportunities divides the market into segments as there
are different technologies applied by the company according to the need and the demand
of the situation. Market Diversification : This is a risky factor as it does not have stability in its factor.
Unicorn company intelligently use the digital technology as it includes lots of risks that's
why for using this they have the expert in their firm who manages all the transactions of
this and avoids threats Digital media simplifies the way for the communication of
companies with the customers as the company tries to sell completely different product
and services to different customers. Though the diversification has risk but beyond this
there are many opportunities it carries with help the organisation to retain more
customers and earn more profit. Market penetration : New strategy can be developed and the existing gets'
encouragement as through this more people choose the product and use more of it as
social media and mobile is used by everyone and this build the connection between the
company and the customers and this increase the sales. This enable a company to buy the

competitor's company (Low., 2011). Unicorn company launch special price through this
for promotions so that they generate mare growth opportunities in the market.
 Product development : Digital technology extends the product as the company produces
the different variants f the same product so that it can attract more customers to buy their
products in the best price available. Unicorn company communicates with its customers
through social media and mobile by giving the modified products to them in the best
price available in the market. Digital technology brings development for the product and
services as the market is a service industry and if the company wants to survive in the
market then it need to serve the customers in the best way possible so that they can retain
in the market for longer period.
TASK 2
P.3 Potential sources with benefits and drawbacks
Potential sources of funding refers to the factors that helps the business in its growth in
all the way possible (Kraaijenbrink, Ratinho and Groen., 2011) . They help the company to
innovate new products so that they can earn more and will be able to retain in the market for
longer period. Unicorn company is a start up company that has many funders who helps it to
achieve the stability so that they can retain more customers with the help of digital technology as
by this they can easily communicate and collaborate with others. Social media and mobile affects
these sources as they build the strong relationship on a global basis. Some potential sources of
funding are as follows : Angel investors : They are the one who is quite often has a background in the business
and finance as they have funds to invest. Unicorn company has this type of investor as
they help the company in its initial times when they needed the most. The benefit of this
investor is they not only fund the business but provide the basic idea for growth and
development as they have experience and expertise in these fields so that the company
can achieve the success. The major drawback of this investor is that they take the huge
share in the return on investment. Venture capitalist : Venture capital is the finance provided by others for an equity stake
in a potential high growth company. Unicorn company has this kind of sources as they
get the funds for the particular venture as it is the best known and innovative company in
the market. The benefit of these sources is that they provide the funds according to the

needs in the venture (Hough., 2010) . The drawback of these factors is that they provide
funds to the best not to the needy one. Governments and European grants : Grants from the UK government and the European
union also provides funds as there is lot of competition in the market and to support the
needy one they provide funds. Unicorn company is gets the grants instead of lots of
competition in the market as they are efficient in the market and that's why they are
earning mare profit than others. The benefit of these factors that the fund is need not to be
paid back and there is no right claimed by them on the business. The drawbacks of these
is that there is a lengthy application process that has to be followed by all. Government guaranteed lending scheme : This scheme is run in the conjunction with the
UK banks. In this scheme the loans given on the guaranteed that is 75% and for this
there is a large security has been kept by the banks so that they can take the loan back.
Unicorn company gets huge funds from this as the amounts of loans are very high. The
benefit of this is the rate of interest is according to the suitability (Fulong., 2015) . The
drawbacks of this is that they invest only for a while and maximum term is ten years. Commercial finance : They are the loans given for the purchasing the resources that is
important in the business. Unicorn company prefer this as it for a long term and provide
many benefits in the long term for the establishment of the company in the market. The
benefits of this is that they provide loan for long term. The major drawback of this they
want the security until they pay the loan back with full interest.
 Stage payments : They do not have full amount needed as they pay in the parts to help
the company in its growth. The benefit of this is they agree with great confidence to
support the customers. The major disadvantage of this agreement includes a clause that
says that if the payment is not paid on time them the vendor has full access on the
business.
TASK 3
P.4 Business Plan
Business plan refers to the plans for considering all the factors that are important for the
business to get establish in the market as without a plan company is unable to grow and expand
in the market. Unicorn company's business plan is made by the top management as they are the
higher authority of the firm and take all the decisions for the growth and upliftment (Eddleston.,

2013). Business plan provides the financial planning and strategic objects and these both are
equally important for the firm in order to gain the position in the market. Financial planning can
be determine with these are as follows :
Executive summary- Mission provides comprehensive financial planning to the
company as the mission of every company in the market is to serve the best to the customers.
Unicorn company has a mission to attract and maintain the customers. Their main aim is to serve
the customers beyond their customers need. Objectives are made to create service based industry
whose primary goal is to achieve the customer's satisfaction. This increase the number of clients
year by year as they are important for upliftment of the company. This develops the sustainable
financial management so that they can give the priority to their customers choices and
preferences.
Business concepts- Unicorn is selling variety of products to customers. They are
engaged in the business activities as retail sectors. The unicorn is launching its new products as
handmade species, they are providing services to customer in digitalisation mode.
Market analysis- the main aim of market analysis is to determine the attractiveness of
market and to understand evolving opportunities and threats. It is helpful in relation to choose
suitable market for enterprise. It is need to be done in order to target potential customers. The
unicorn is conducting market analysis in order to categorize the market into manageable groups
so that product can get success.
Management team- They need to do their work in the proper manner so that
organisational objectives can be achieved. The team analyses and identified goals and objectives.
In business plan management team is inclusive of function as Owners, Board of directors and
managers. Unicorn managers need to perform business function effectively.
Marketing plan- It is a comprehensive document which outline strategies. Thus, there is
need to focus on specific period. Marketing plan will be inclusive of cost, goals, action and steps.
Finance plan- the cost related to budget is need to be framed.

Operation and management plan- There is need to hire skilled employees so that
operational and management activities of firm can be conducted effectively. It is helpful in
relation to facilitating the corporation as human, finance, and physical so that each thing can be
done effectively.
Financial information in the business plan can be gained through many things as financial
section has income statement, cash flow statement and balance sheet. They are as follows : Cash flow statement : This includes the income statement and the balance sheet as this
will provide the whole data of the year in a one place (Durand., 2011) . In small ans
medium business it is very essay to go under this as they do not have many transactions
to show in the profit and loss statement. Unicorn company prepares the cash flow
statement in order to identify the income and the expanses occurred during the year. By

laying out the financial information the company can take the corrective measures if there
is any unwanted extra expenses is there. Purchases : Any purchases made by the company for the growth and expansion in the
market that is also recorded in the financial accounts that is prepared by the company at
the end of the year. This clearly determines that which purchases made by the company
in cash and the remaining are in the credit. According to this the business will wait for the
term to end to make the payment. Unicorn company records each and every purchase
and at the end of the term transfer these to the accounts so that they can determine the
income and expenses occurred during the year. Collections : The company should know how to manage the receivables as this can cause
loss to the business. The financial information should detailed the collection plan as they
need to be very specific in order to achieve growth with the accomplishment of goals.
Unicorn company will clearly specify the late fees if the payment payments are due
before products and services are delivered to new customers. Investments : Although there is a specific strategy for an investment but still it is a par of
the financial information as it records in the income statement and balance sheet (Desai.,
2013) . Unicorn company includes this as this record the percentage of money invested in
the high risk vs low risk portfolio.
 Considerations : Financial information of the business plan should be a general guide to
the others as this give the required information at a time. Unicorn company follows this
as it simplifies the difficult scenario to the basic staff.
Strategic objectives are the pre determined goals that are most important for the current
and the future growth. Unicorn company has pre determined objectives that affects the current
and the future health as it is important for the company if they want to retaining the market for
the longer period and wants to earn more profit than others.
TASK 4
P.5 Exit and succession option with benefits and drawbacks
Exit and succession options are those which helps the business to solve the problem
according to the situation in the market. Exit options are those options that is opted by the
company if there is nothing left for them in the market to earn as they have lost everything and
they want to invest in the other thing (Christofakisand Papadaskalopoulos., 2011) . Succession

options are refers to the option that leads the company towards the growth and expansion in the
market. This options provide ways for the company to grow and uplift in the market by
achieving goals and mare profit so that the company can retain in the market for longer period.
Exit options Passing the business to the successor : In this case the successor can be anyone may be
the manager of the company as if they have the power the company pass the power of
autonomy to the manager. The benefits of this is that it reduces the involvement of the
third party as this can be harmful. This also gives the possibility to the manager to
maintain involvement and influence in business.
 Transferring ownership through management and employees : Exit option also
includes that they company can transfer its ownership to the management and employees
as after the owner they are the one who handle the company in and out and if the owner
wants the company to run then they can give the authority to the management and
employees. Advantages of this are that they have limited due diligence usually
necessary and also protects the necessary legacy and business independence. The major
disadvantages of this is management has limited access to the capital and vendor take
back likely (Chapin., 2012) . Failure in the purchase can affect the business performance
as it de motivates the employees in their work.
 Selling the business to the third party : The company can sell its business to the third
party as they need fund to invest in the other plan. Before making the final decision the
company needs to consider al the factors and then come to the conclusion as the speedy
decision may made them regret in the future. The advantages of them is that they get the
funds so with this they can invest in the other option. The disadvantages of this is they
will lose the team that is made by the management after so many efforts. This also
miscommunicates in this case as there words may be taken in a wrong way .
Succession Points Chose your successor : Start finding the successor within the organisation as there is a
demand of the successor in the market that leads the business to the way of success. They
successor should have the right leadership skill that is used by the company in the growth
and the upliftment in the market (Brinckmann, Grichnik and Kapsa., 2010) . The
advantage of this the other people in the organisation gets the chance to hold the

responsible position. The disadvantages of this they give the priority to the emotions
instead of professional.
 Develop a formal training programme : There is need of identifying critical functions as
the company pre determines all the factors that may affect the business. The duties are
executed by the successor alone but this is not enough as he or she neds to understand the
breath and depth of the organisation to take the decision and allows the other to do work.
The advantage of this is that they develop a proper programme. The major drawback of
this is that the successor understanding level leads the organisation as he makes a
decision weather it is right or wrong.
CONCLUSION
Planing of growth is all about the organisation as this includes all the aspect that are
important to carry on the business in the market. Digital media has great impact in al around the
globe as this helps the company in communicating to the customers so that they can serve the
best to their customers as they want to retain in the market for longer period by earning more
profits. Social media and mobile helps the company in marketing of the products and services so
that they can attract more customers.

REFERENCE
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Onilne
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