Celloglas: Business Plan for Growth and Development

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PLANNING FOR GROWTH OF CELLOGLAS

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
P1. Evaluation and Justification of Key Consideration for Growth Opportunities within an
Organization.................................................................................................................................3
P2. Evaluation of Growth Opportunities through Ansoff’s Growth Vector Matrix...................6
M1. Options for Growth through Analytical Framework to demonstrate Competitive
Advantage within an Organization..............................................................................................6
D1. Evaluation of Specific Pathways for Growth and Mitigation of Risk of Those Options....7
LO2..................................................................................................................................................7
P3. Potential Sources of Funding and Their Benefits as Well as Drawbacks of Each Source....7
M2. Adopting an Appropriate Source of Funding for Celloglas.................................................8
D2. Justification for adopting an appropriate source of funding for Celloglas............................9
LO3..................................................................................................................................................9
P4. Designing of Business Plan for Growth Including financial Information and Strategic
Objectives:...................................................................................................................................9
M3. Detailed Plan of Growth and Securing Investment and Strategic Objectives....................11
D3. Coherent and Detailed Knowledge and Understanding of Formulating, Applying and
Achieving the Business Objectives:...........................................................................................12
LO4................................................................................................................................................12
P5. Assessment of Exit and succession of a small business with the Benefits and Drawbacks
of each Option............................................................................................................................12
M4. Evaluation and Recommendation of Exit or Succession Options......................................13
D3. Evaluation of Exit and Succession of Small Business and Justification.............................14
Conclusion:....................................................................................................................................14

Reference List:...............................................................................................................................16
Appendices:...................................................................................................................................17

Introduction
This project sheds light on how a small and medium enterprise, for this project Celloglas should
develop and grow its business to gain competitive advantage. In this study, there will be a brief
discussion on the considered key factors for growing opportunities for Celloglas and evaluating
those opportunities. Some analytical framework will also be used for demonstrating and the
understanding of the competitive advantages of Celloglas and also evaluating some pathways for
growth and risks for each way. Some methods will be used for which secures funding for
Celloglas and its benefit and drawbacks will also be discussed. Some particular sources’
potential adoption tactics will be discussed and justified with arguments. There will be a serious
business plan for Celloglas for how this organization should grow and develop in the future and
lastly assess exit or succession options for a small business will explain the benefits and
drawbacks of every kind of situations for Celloglas [Refer to appendix 1].
LO1
P1. Evaluation and Justification of Key Consideration for Growth Opportunities within
an Organization
In the time of growing business, customers return and become regular and the long hours started
to pay off in SMEs. For Celloglas there are mainly three major key factors which are competitive
advantages, generic strategies, and pestel analysis will be considered as their main growth
opportunities in an organizational context.
Competitive Advantages: If a industry sustains profits what exceed or surpass the average of
that industry then that organization will be considered as they gained competitive advantages. In
this assignment, Celloglas should focus much on their resources and capabilities by increasing
them to gain competitive advantages. As stated by Altinay et al. (2016), as per resource-based
view for developing a competitive advantage, the organization should have resources and
capabilities which are more superior to its competitors. Without these advantages, competitors
will replicate the firm and the advantages which are gained by the firm will disappear very
quickly. As industry-specific advantages, resources are very useful assets to create a cost or costs

which are differentiable that other firms may acquire easily. In various types of resources, there
are few major kinds of resources which are most effective for this purpose such as parents and
trademark, installed customer-base, firm reputation, band values, and equity. Capabilities mainly
refer to the capabilities of the firm to utilize its resources. Any firms’ resources and capabilities
together form its distinctive competencies. For a growing firm, like Celloglas competencies
enable efficiencies, innovations, customer responsiveness, and quality. All these factors which
are created by competences should be leveraged for creating an advantage in cost and in
differentiation.
Porter's generic strategies: By leveraging its strength a firm like Celloglaze positions itself. As
for the strategy an organization’s strength depends of two main factors which are cost advantage
and differentiation. Industry like Celloglas applies its strength in narrow or broad scope to get
mainly three different kinds of results such as cost leadership, differentiation, and focus. For a
given level in quality in low costs can be called cost leadership. In this case, company sells its
products at average prices to gain more profit than rivals, broad market, and more production
capabilities cheaply. As suggested by Bager et al. (2015), in differentiation strategy industries
manufactures products which have some unique attributes which are valued by the customers.
Value added by the uniqueness allows the firm to charge their product in premium value which
covers the extra costs incurred for offering the uniqueness. Lastly, in focus strategy firm
concentrate on a narrow segment to achieve cost advantages or differentiation.
Pestel analysis: Pestel analysis is a framework for analyzing and monitoring the environmental
factors which might have an impact on the performances of an industry. It stands for political,
economic, social, technological, environmental and legal factors. Pestel analysis of UK is
considered here as Celloglas is from there for their opportunities in future. UK is relatively fair
as most of the public is influenced by the inner-workings and Government is also proactive and
stable which split into national and local administrations. As stated by Bi et al. (2017), with high
GDP and diverse economy, it is the best place for company like Celloglas to grow. Some faults
also can be found is social sector of UK also like high and increasing dependency ratio with
racial problems for immigrants can cause serious problem for industries. UK is MEDC which
means does have better access to the technological fields which ensures quality skills and
expertise for organizations.

P2. Evaluation of Growth Opportunities through Ansoff’s Growth Vector Matrix
Ansoff’s matrix is generally known as the market or product grid matrix and has main 4 options
for growing and matching up new and exciting products with new and exciting markets plotted
on matrix. This matrix helps to highlight the risks in a specific growth strategy in the time of
moving to a new section of the matrix. Four options of this matrix are market penetration,
product development, market development, and diversification. Market penetration is selling
same products to existing customers in order to do that company needed to grow their customer
loyalty and customer's lifetime values (Brown and Mawson 2016). This can improve the process
of offering to extend business hours for improving long term appeal in offering. Market
development is the best approach for attracting new consumers for an exciting product. New
consumers can be defined by their geographic location. Moreover, it should also be determined if
there is untapped demand for that product and organization should support that demand. Product
development is creating new or more variations in old products for the organization’s present
customers.
Company could consider other ways for enhancing the aesthetic of the product also like in appeal
or improve it in other ways. It is better is if the changes are made from the feedback of the
customer. This matrix is mainly used for determining the best strategy to increase sales. Ansoff's
matrix also helps to decide the ways of doing that in best ways. There are some determining
factors like available resources, infrastructure, market position, location, and budget which can
the best for the business also be specified by the matrix. As stated by Cherry (2016), this matrix
demonstrates that each time the business goes into a new strategy, the risk increased.
M1. Options for Growth through Analytical Framework to demonstrate Competitive
Advantage within an Organization
In the case, if a company have resources and capabilities then for SME like Celloglas can give
competences very easily which can result in competitive advantages for this industry. As
Competitive advantages give a organization to have better opportunities than their rivals in
creating more and new customers and maintain their customer numbers so for a growing industry
it is better if they consider their analytical framework to demonstrate competence for that
organization. As stated by Eniola and Entebang (2016), pestel analysis is a very popular and

effective framework for this purpose. Organization with pestel analysis gets a better idea about
the future of their surroundings and can get a basic idea of how to grow in the near future.
Porter's generic strategies can also show an industry like Celloglas how-to strategies for the
future. Porter's generic strategies can offer an industry some great strategy for their competitive
advantages in the near future according to the industry’s present situation.
D1. Evaluation of Specific Pathways for Growth and Mitigation of Risk of Those Options
Risks and risk mitigation is a major concern for all SMEs like Celloglas because enterprises with
sensitive business risk and competition are exposed to risks all the time. These risks can directly
affect daily operation of the organization resulting in decreased revenue or increased expenses.
SME management usually resides within assessment of threat and opportunities with is
patterning (Farja et al. 2017). Traditional risk mitigation focuses on risks stemming from
physical causes and legal causes such as fires or natural disasters, accidents, death, and lawsuits.
It’s is an action for securing future. With the help of pestel analysis, Porter's generic analysis and
resources and capabilities of an industry it can be ensured the risks for an SME like Cellglas for
the upcoming future.
LO2
P3. Potential Sources of Funding and Their Benefits as Well as Drawbacks of Each Source
Every growing and starting small and medium business needs money for their future there are
several sources and they have their own advantages and disadvantages. Here some of the most
reliable sources and their benefits and drawbacks are discussed.
Owner’s Investment:
Personal finances and finances of the business partners are one of the most common sources of
funding which include ready cash and funds saved in checking accounts and savings accounts.
Personal findings are also called bootstrapping and it also has its pros and cons.
Benefits: Personal funding usually don't have any strings attached, no interest accruing, no
traveling for meetings for convincing strangers and also no repayment schedule. It’s the fastest
and easiest way of securing funding.

Drawbacks: Personal funding has its huge cons like huge investment for any industry or
business means putting personal finances at every risk (Flynn and Davis, 2016). If the funds are
from any retirement funding then that mean risking the future plans. It is same for other business
partners also.
Funds from investors and banks: Investors and the banks are other ways of assuring fund for
the SME like Celloglas these types of sources of funding are also called angel funding.
Benefits: Investors usually have access for enough funding to finances a large part of business
which can cover most of the needs of an organization, so a industry can get back on business.
This types of investments can be easily found.
Drawbacks: Most of the time in these types of funding there are huge interests and time limits
for repayment which is very stressful. There is a need for convincing the investors or the bank
which needs a lot of meeting and time wastage. Investors can want to decide the future and how
the business will grow in future.
Crowdsource funding: These types of findings are relatively new for the business; it is
soliciting funding from thousands or hundreds of small investors (Farja et al. 2017). It is a fun
concept, a catchy product or video can sometimes get attention of lots of small investors. This
types of investment also can happen by campaigning.
Benefits: As it is small investments most of the time there are no major risks in that process.
Various small ideas and new inventions can be get promoted easily by these types of funding.
Drawbacks: As most of the investors fund small amounts they usually want their money back
relatively more quickly. Most of the time a huge amount of money goes to crowdsource platform
which is a major issue.
M2. Adopting an Appropriate Source of Funding for Celloglas
Celloglas as an SME should adopt bootstrapping or funds from the investors or banks for their
future plans if possible. Those two are the most convincing ways of securing sources because as
bootstrapping there is no stress and more times for the industry which is essentials for SME like
Celloglas. As stated by Flynn and Davis (2016), for the investor's fund it is also convenient for
Celloglas as they already needed capitals for their future. There will be always stressed for those
types of fund and also interest rates but for this growing time, they should only think about the
business.

D2. Justification for adopting an appropriate source of funding for Celloglas
Celloglas should consider owner’s investment for their future plan because there is no risk
involved in these types of sourcing also no types of interests have to pay. As stated by Gherhes et
al. (2016), other benefits are no meeting should be attenuated by them for convincing the
fundraiser. There is also no bureaucratic obstacle and also with easily accessible funds. Utilizing
personal saved funds or funding from friends and family gives Celloglas more times to give
grow in business what SME like Celloglas always needed. There is no major risk rather than the
winding up of the organization.
LO3
P4. Designing of Business Plan for Growth Including financial Information and Strategic
Objectives:
This 'plan' of the business is to focus on the growth of the whole business at the same time. The
bond of interdependency and effect are justified throughout this evaluation.
The SME taken into consideration is Celloglas. Being a Junior Manager, the business growth
plan needs proper financial information and desirable planning of strategic objectives.
The planned financial standings in regards to business growth are tabulated for the next two
months.
Financial Particulars Financial Standings
(31st March, 2019)
Planned Financial
Standings
(31st May, 2019)
Sales (of printing product) £ 400,000.000 £ 450,000.00
Expense of company £ 250,000.00 £275,000.00
Cash In Flow/ Income £ 450,000.00 £ 600,000.00
Profit Projections £ 50,000.00 £ 62,500.00
Assets £ 600,000.00 £ 700,000.00
Liabilities £ 200,000.00 £ 300,000.00
The strategic objectives of Business and financial information:

1) Increase in the profit by 12.5%.
2) Increase in the assets by 16.7 %
3) Increase in sales by 37.5 %
4) Low rate of increment in expenses at 10 %
5) Use of Credit standings by 50%.
Sales Expenses Income Profit Assets Liabilities
0.00
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
400,000
250,000
450,000
50,000
600,000
200,000
450,000
275,000
600,000
62,500
700,000
300,000
Proposed Growth Statistics
31st May, 2019
31st March, 2019
Figure 1: Proposed Growth Graph of Celloglas
(Source: created by author)
Cash In-Flow, Sales and Profit:
For attaining the desired objectives of the business organization the main focus should be given
on the excessive flow of income. The summation of the total sales and the profit defines the flow
of money from its indigenous operation. The growth of sales through at about 37.5% approx can
meet the desire for expansion. This could help in acquiring the profit of £ 65,500 per month
helps in creating a suitable profit turnover. The rise in the inflow of finance without the help of
the creditors can be achieved with a rapid expansion strategy of business (Gherhes et al. 2016).

Assets and Liabilities:
The rise in the assets through the credit standings is sought for. The overdraft of £ 200,000
should be liquidated from the bank. This would increase the trust of the present creditors and
also provide the new creditors with keen interest. The credit goodwill should increase as this
would help both in the short run and the long run. Out of the present liabilities of £ 200,000, £
100,000 should be paid to the existing creditors. The expected money should fully be allocated to
the installation of new machinery to increase production.
Expenses of the Company:
According to Hutchinson et al. (2015), the current expenses of the company should not be
curved down. To minimize the rate of expense, the salary of the employees is not subject to
change. The incentive approach of rewarding the employees should be increased at a rate of 0.1
%. This would help in the creation of interest in work. A handful number of a new employee
should be employed at the cost to company basis only. The interest on the outstanding of the
company should not exceed by 0.20%. Since there is a chance of an increase in the rate of
interest due to new creditors.
Note to Planning:
The planned actions are considered to be away from the unwanted stimulation of the business.
The rate of change of the price indexes considered to rise or fall at a considerable rate. In case of
emergency, the meeting of the situation through the emergency fund is taken into consideration.
The outcome of Planning: the business firm will be able to earn more sales hence profit
maximization can be achieved. The huge amount of production will help in reducing per unit
cost of the product resulting in a reduction in aggregate cost (Ingley et al. 2017). The availability
of the products among the customers will help to gain brand loyalty as they don’t have to wait
for the stocks. More expansion of business attracts more creditors.
M3. Detailed Plan of Growth and Securing Investment and Strategic Objectives
Growth and securing of investment: the growth of the investment is acquired through the
acquisition of goodwill of the Celloglas's Creditors. The creditors of the company are subjected
to be written off through the payment of the outstanding on an immediate basis. This payment
would be carried out by the funds available from the bank (Love and Roper, 2015). Though the