Strategic Business Planning for Growth: Unilever Report

This report delves into the critical aspects of business growth, using Unilever as a case study. It begins by identifying growth opportunities relevant to an organization, employing Porter's Generic Strategies and analyzing them within the context of the company. The report then examines growth str...Read More

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Determine growth opportunities in relevance with organisation......................................3
P2 Analyse opportunities for growth by applying Ansoff’s Matrix/growth matrix...............4
TASK 2............................................................................................................................................7
P3 Determine and evaluate various sourcing of funding through which enterprises generate
capital.....................................................................................................................................7
TASK 3..........................................................................................................................................11
P4 Prepare a business plan for growth that comprises strategies & financial institution.....11
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15
BOOKS AND JOURNAL:...................................................................................................15

INTRODUCTION
Planning for growth is essential part of business because growth is require in every
organisation. It is strategic tool in which managers and management prepare plans and decision
to boost and expand the business at rapid level. To adopt accounting concept; going concern
concept it is important to analyse development and opportunity of business. UNILEVER, a
leading multinational company headquartered in UK. Entities deals in variety of products which
makes them a global leaders in retailing. To determine growth opportunity business is prepared
and decision making is carried out in effective way. In this report growth opportunity, sources of
funding, business plan, exit ways of business are included.
TASK 1
P1 Determine growth opportunities in relevance with organisation
To effectively run business and its activities in smooth manner it is important for firm to
identify opportunities in market. A proper market research and detailed information is required to
analyse growth and development. There are many factors which affect growth of business at
deep level such as external and internal factors. So, to overcome challenges and for development
planning for growth is essential (Lamker, 2020).
Porter's Generic Strategies- It is methods which is used by firm to be competitive and
analyse to take benefit of market growth opportunities. This is divided into four quadrants such
as differentiation focus, Focus, cost leadership and cost focus. This is used by UNILEVER, to be
aware about market trends and situation. These strategies are mentioned below-
 Cost Leadership- This is strategy which is used by firm to take cost advantage from its
competitors and rival in market. Cost leadership is mostly used when entity wants to
acquire more market share and resources in order to gain profit and opportunity. In this,
firm lower their product and resources cost to avail wider growth. This is helpful for
customers, market as well as entities. In relation with UNILEVER, it is diversified
company and which provide them opportunity to grab the market area and profit share.
By using cost leadership strategy company strengthens their distribution channel and
market base. It assist them in performing business functions as well as operations in
effective and appropriate manner (Mazzarol,2009).

 Differentiation Focus- This is a strategy in which firm differentiates itself from others or
target market. In today’s world, to survive it is essential to be unique from other which
will help individual to highlight from population. So, being unique and different is crucial
to get succeed. In relation with UNILEVER, their main USP is that they provide
affordable prices and services to its customers by focusing on need and requirement in
environment. Thus, this step makes them different from their competitors and rivals
(Skrt, 2004).
Focus- Further comes the focus strategy in which selection or focus is on either cost leadership
or differentiation focus. Both these strategies are considered to be beneficial for organisation
depending upon their requirement and traits of business. Focus strategy assist firm to decide and
choose the best strategy which boost entities growth as well as development. Cost leadership is
chosen by those firms who want to acquire more resources as well as market and profit share
growth. Differentiation focus strategy is adopted by those organisations who want to survive in
market by competing with their rivals. This is most effective when competition in market is
rising at high level and firm track and monitor their rivals activities and strategies which is used
by them. In context to UNILIVER, they uses cost leadership as defensive strategy so that they
gain more market share and profit which increases their productivity comparing from their
competitors like Procter and Gamble, ASDA Group etc.(Mazzarol, 2020) .
So, by analysing Porter’s Generic Strategy it is seen that entities uses different
strategies and tactics in market to survive in market for longer period of time. Due to rise in
competition and changing trends in market, adopting these several strategies has become crucial
for growth and development of business. Time and resources are managed and because of
effective use of strategy and deep research about market.
P2 Analyse opportunities for growth by applying Ansoff’s Matrix/growth matrix
Ansoff’s matrix is strategy used by firm and marketers to implement as well as prepare
tactics and strategies in future perspectives. So, this assist both business and entities to be
prepare for events or uncertainty that may affect functions and operations of firm. This matrix
also helps in examining market changing trends, activities and risk associated with each strategy.
Ansoff’s matrix is four quadrant tool which has been discussed below-
 Market Penetration- Market Penetration refers to strategy in which firm generates and
increases sales by implementing new tactics in existing product into existing market. This

strategy is mostly used by marketers to overcome with competition in market and to
enhance their product value and brand goodwill. In context to UNILEVER, they can use
this strategy to trigger/ stimulate their sales revenue and market share growth. Expanding
existing product specification in existing market assists business to build trust amongst
customers, market and organisation. Widening existing products also lead to strong
network and strengthens distribution channels as well as efforts which results in strong
competitors in market (Bhattacharya, 2020).
 Product Development- Product development is another strategy in Ansoff’s matrix in
which new product is introduced in existing market with wider range and choices. This is
used by entities when market and customers demand is fluctuating towards existing
product and it helps them to satisfy needs as well as requirement of end users. By
launching new product in market increases their awareness in market and makes them
different and unique from their competitors. In relation with UNILEVER, they may use
this growth opportunity strategy by introducing new health and nutrition products
because nowadays people are becoming more health conscious (Dawes, 2018).
 Market Development- In this types of strategy entities widen and expand their business
by launching existing product into new market. This market development strategy is risky
because firm is unaware about market trends and outcomes so, this may affect their
organisation structure. Market Development can be divided into two types; domestic and
international. It depends upon companies to adopt which type of development. In both
national as well as international market there several factors which should be considered
while using strategy such demographic, religion, culture, environment etc. These types of
factors are crucial to track because they assist business in developing strategies and ideas

for developing market. This also assists in expanding business at broad and wide level
and helps organisation to create a positive environment and relationship in market.
UNILEVER uses this strategy after carefully analysing market research and survey. By
adopting this market development, they explore new opportunities and acquire more
customers (Islami, 2020).
 Diversification- Diversification refers to launching and introducing of new product into
new customers. It is most riskier strategies in Growth matrix because situation and events
results are unknown. Chances of adopting this strategy is rare due to competition and
different regions. Diversification basically is of two types such as related and unrelated
diversification. Related diversification are those in which firm launches new product into
new market but with same line of business. For example- A cycle manufacturer that start
line of manufacturing bikes and equipment’s. Whereas Unrelated diversification means
entities introduces product into new market with new line of business for example- A
shoe manufacturer started a distributing jewellery and accessories. Thus diversification
strategy should be used after proper market research (Detzer, 2017).
After a brief analysis of above stated strategies it is seen that organisation
structure changes according to market situations and competitions. So, to overcome with
uncertainty and challenges in market Ansoff’s matrix is used to implement proper policies and
strategies. This tool maps the path and guides firms to carry out their business activities and
operations.

TASK 2
P3 Determine and evaluate various sourcing of funding through which enterprises generate
capital
Finance is essential in business for running its activities, functions and operations in
smooth and effective manner. In organisation, capital and assets are two important term which
are considered by firm as well as management crucial tool. Because without capital and finance,
goods and services cannot be produced and distributed to end users. So, there are different types
of financial appraisal methods and sourcing of funds which are used by entities in their business
which are mentioned below-
Methods of Financial Appraisal:
 Net Present Value- It is a value which depicts and helps business to determine weather
the opportunity of investment is right or not. So, in context to UNILEVER with assists of
proper data analytics and decision making of management they analyse the net present
value and then further make their final decision on investment. It saves their time and
cost of project (Campbell,2017).
 Payback Period- Another form of financial appraisal method is payback period in
which time is considered as important tool to recover the amount on investment which
was invested in a project. In relation with UNILEVER, they keeps the record and
credentials of every project and investment which assists them in maintaining their
payback period. Also their finance department is up-to date and helps them in effective
decisions making in organisation.(McKeever, 2016)
Types of sources of finance-

In organisation, finance is important without which business cannot be carried out in market. To
assist entities with funding there are several types of sources of finance who provide capital to
firms so that they may carry out their activities in appropriate manner. It depends upon
organisation needs as well as requirement to select which type of source. Numerous sources of
finance are mentioned below-
 Angel investors or Venture Capitalists- There are some people outside in market who
are ready to invest and provide helps in business when funds are less in firms. Angel
investors are those who provide capital and fund to start ups business on some conditions
which are agreed by both the parties. Venture Capitalists are those which are ready to risk
and invest in business with motive of earning higher rate of return. Both venture capitalist
as well as angel investors assists entities with fund and capital but there is big difference
between these two on the bases of money that angel investor uses their own money which
they invest in other business whereas venture capitalists does not use their own money.
Angel Investors
 These are those who invest in
business with their personal money
(BerbegaI, 2016).
Advantages
 In this, a positive relationship is,
maintained between firm and angel
investor because of mutual
understanding.
Venture Capitalists
 VC’s are those who invest in start-
ups business without using their
own money and resources.
Advantages
 Venture capitalists are
those who only focus on
rate of return.

 Angel Investor are flexible in
nature.
Disadvantages
 Angel investors are flexible but
they does not have much skills and
knowledge to guide or participate in
decision- making process of
business.
 Control of angel investor in
business is limited.
 In this, VC’s are rigid in
nature they operate under
rules and regulations.
Disadvantages
 Venture Capitalists are expertise
and have skills to assists business
and are involve in equal
participation in business functions
as well as operations.
 In this, control and power of
authority is more of venture
capitalists in business (Gabler,
2017).
 Overdraft- Overdraft is another type of source of finance in which account holder has
permission to withdraw money when fund is insufficient. Overdraft facility is used by
organisations at the time of huge debt or insolvency.
ADVANTAGES
 Overdraft is more flexible in nature
because the limit of credit extension
is agreed by both bank as well as
borrower.
 As compared to other sources of
DISADVANTAGES
 In overdraft facility, permission/
authorisation by bank or financial
institution is necessary because
exceeding credit limit without
permission, borrowers are charged

funds overdraft facility is quick as
well as easy to use and avail.
 Another benefit of overdraft facility
is that interest rate is charged only
in that amount which has been
withdrawn by borrower and low
rate of interest rate is charged.
or have to pay some amount of
money.
 Due to exceed limit of overdraft
business assets are taken as
guarantee and can be sold.
 Sometimes rate of interest on daily
basis is higher than other sources
of finance such as bank loans
(Bocken, 2016).
 Bank Loans- It is another external sources of funds which is used entities for long and
medium term. Bank loans are those in which amount of money is borrowed by borrower
for specific period of time. In this, guarantee and time are to be considered as important
factors. This source of fund is time consuming and requires documentation of papers.
ADVANTAGES
 In bank loan, amount and rate of
interest depends upon time period
which chances of conflicts are
reduced amongst both party.
 Banks keeps all the records and
information safe and secured so
borrower credentials does not get
DISADVANTAGES
 When taking loan from bank it is
essential to give guarantee over
amount of taken loan which affects
the business productivity and
goodwill (Lamker, 2020).
 Sometimes banks does not use
high security technologies which

misuse by others. might affect customer as well as
firms
goodwill
(Mazzarol,2009)
After analysing the various types of sources of funds it can be stated that capital and
assets are important for firm to manage and used in proper manner. Organisation has to be active
in their finance and account department to determine that fund is needed or not. This assist them
in proper utilisation of resources and maintain financial condition of firm. So, UNILEVER uses
sources of funds according to their need as well as requirement (Skrt, 2004).
TASK 3
P4 Prepare a business plan for growth that comprises strategies & financial institution
A business plan is a blueprint which depicts the organisation objectives as well as goals.
Using business plan it assist firms to analyse be prepare for the outcomes and results. A detailed
research and information is required to prepare a business plan in effective manner.
Executive Summary- UNILEVER is a diversified organisation which deals in variety of
products such as cosmetics, health and nutrition etc. Due to its wide range of products and
market share they have been able to survive in this competitive era of market. Entity is now
deciding to introduce and launch new product and services line through which company will
widen their business line worldwide and firm can avail new opportunities (Mazzarol, 2020).
Vision and mission-

Vision and mission both are important for business to achieve objectives and goals.
Vision of a UNILEVER is to be the global leader in retailing and to be the first choice of people.
Their mission is to provide high quality of services and products.
Goals-
Goals are important for every entity to achieve. UNILEVER main goal is to acquire
more customers and market growth as well as profit share. Organisation main aim is to increase
goodwill of a firm across the globe.
Objectives-
Organisation main objective is to boost and generate their product sales and to be ahead
from their rivals as well as competitors. UNILEVER sale is increasing worldwide because of
adopting different changes in market.
To prepare a business plan various strategies and tactics are used by organisations. Market
research, ideas and skills are used for proper implementation of business plan. Entities uses
business plan so that their goals and objectives get a clear picture. Management tools and
strategies are also used to implement business plan (Bhattacharya, 2020).
Financial information- To effectively achieve the prepared business plan, huge cost and
capital is to be required. In relevance with Unilever, around fifty thousand dollars or more capital
is used by firm. Required capital sometimes goes extended because of changing needs and
activities.

STP Approach is method which is used by firm and marketers to properly analyse and
determine product value and requirement by end user and in the market. This tool helps
organisation to expand business and operate their activities with monitoring market situations
and trends.
STP-
 Segmentation- It refers to dividing of market on various variables such as
lifestyle, psycho-graphic, behavioural, religion etc. Segmentation helps firms to analyse the
market in which product and services has to take place depending upon customer traits, need and
requirements. In context to UNILEVER, they have segmented their market according to factors
which are essential in society as well as business.
 Targeting- Further comes the targeting in which market and potential

customers are targeted. Targeting is done on the basis of size, scope, accessibility and traits.
Targeting is essential because it helps organisation to examine the customer and to decide
product as well as other aspects which are require for development of business (Dawes, 2018).
 Positioning- Positioning means brand or product value in the minds of
customer or market. It is necessary to create a value of a product because perception and
behaviour of customer changes or say depends upon
positioning of organisation, brand and product. Positioning is of various types such as brand
positioning, re-positioning etc. Every product is heterogeneous in nature and according to which
its position is determined. So, marketing has power to change the product value by appropriate
use of strategies and tactics. In relation with UILEVER, organisation has maintained its position
and brand image in market from longer period of time. This makes firm unique and different
from its rivals as well as competitors (Detzer, 2017).
After examining above business plan it can be stated that there are various tools and
methods through business plan in organisation is prepared. Numerous sources as well as
resources are required to prepare appropriate business strategies and tactics. Thus, marketing and
its concept should be considered as important of business (Islami, 2020).
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option
An exit business strategy is required by every small business in which owner or
entrepreneur sell ownership within in firm. It is done with consideration various option which are
mentioned below-
Liquidity- It is scale up to which assets can be sold in business. This strategy is mostly used
when there is nothing to sell in business.
Advantages-
It is a simple strategy and way of exit business and do not require a long term planning or
any other thing.
Disadvantage-
Through liquidity, ROI is low earned by owner because by considering depreciation
value.

Liquidity over time- It is type of strategy in which owners of the company extracts all profits
out of business over time.
Advantages
Lifestyle- In this, maximizing cash withdrawal on on-going basis for own use.
Disadvantages
Focusing on aggressively minimises the growth potential & value of business in market.
CONCLUSION
After a brief analysis of above report it is concluded that planning for growth is essential
in every phases of business. Growth stimulates firm to achieve its objectives and goals in
effective manner. Various types of tools and methods are used for organisation growth such as
Ansoff’s matrix and Porter Generic strategies. These concepts of marketing helps in determining
marketing situations as well as trends. To carry out business activities and functions smoothly
capital and funds are crucial. There are several types of sources of finance such as ban loan,
angel investor and venture capitalists etc. A business plan helps organisation to achieve their
goals and objectives. Thus, to survive in market firm prepares business plan. Hence, planning for
growth is important for overall development of business.
REFERENCES
BOOKS AND JOURNAL:
Lamker, C., Dieckhoff, V.S., von Schönfeld, K.C., Rydin, Y., Schulz, C., Xue, J.
and Nelson, A., 2019. Post-growth from international planning perspectives.
Seo, J.H. and Cho, D., 2020. Analysis of the Effect of R&D Planning Support for SMEs
Using Latent Growth Modeling.Sustainability,12(3), p.1018.

Mazzarol, T., Reboud, S. and Soutar, G.N., 2009. Strategic planning in growth oriented
small firms.International Journal of Entrepreneurial Behavior & Research.
Skrt, B. and Antoncic, B., 2004. Strategic planning and small firm growth: An empirical
examination.Managing Global Transitions,2(2), p.107.
Mazzarol, T. and Reboud, S., 2020. The Process of Growth in the Small Firm. In Small
Business Management(pp. 193-228). Springer, Singapore.
Bhattacharya, S., Momaya, K.S. and Iyer, K.C., 2020. Benchmarking enablers to
achieve growth performance: a conceptual framework.Benchmarking: An International Journal.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical
Problems. But with Two Logical Problems (February 27, 2018).
Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to
firm performance.Future Business Journal,6(1), p.3.
Detzer, D., Dodig, N., Evans, T., Hein, E., Herr, H. and Prante, F.J., 2017. Sources of
Funds for Business Investments: Non-financial Corporate Sector and Small and Medium-sized
Enterprises (SMEs). In The German Financial System and the Financial and Economic Crisis
(pp. 155-173). Springer, Cham.
Campbell, B., 2017. Why Such a Focus on External Sources of Funds to Finance
Development?. Mondes en développement, (2), pp.77-92.
McKeever, M., 2016. How to write a business plan. Nolo.
Berbegal-Mirabent, J., Gil-Doménech, D. and Alegre, I., 2016. Improving business plan
development and entrepreneurial skills through a project-based activity. Journal of
Entrepreneurship Education, 19(2), p.89.
Gabler, C.B., Panagopoulos, N., Vlachos, P.A. and Rapp, A., 2017. Developing an
environmentally sustainable business plan: An international B2B case study. Corporate Social
Responsibility and Environmental Management, 24(4), pp.261-272.

Bocken, N.M., De Pauw, I., Bakker, C. and van der Grinten, B., 2016. Product design
and business model strategies for a circular economy. Journal of Industrial and Production
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