Strategic Analysis and Growth Plan for Cleenol Group Business

This report provides a comprehensive analysis of Cleenol Group's growth opportunities, focusing on strategic planning and market analysis. It begins with an introduction to the importance of planning for business success, particularly for small businesses like Cleenol Group, a manufacturer of hygiene and cleaning products. The report then delves into key considerations for evaluating growth opportunities, including competitive analysis using Porter's generic model and external environment analysis using PEST analysis. The report also examines growth opportunities using Ansoff's growth matrix, detailing strategies such as market penetration, market development, product development, and diversification. Furthermore, it explores potential sources of funding for Cleenol Group, discussing their advantages and disadvantages, and concludes with an assessment of succession or exit options for the small enterprise. The report aims to provide Cleenol Group with a roadmap for sustainable growth and expansion within the competitive market.

PLANNING
FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key considerations for evaluating growth opportunities.......................................................3
P2 Growth opportunities by implementing Ansoff's growth matrix...........................................7
TASK 2..........................................................................................................................................10
P3 Potential sources of funding and its advantages and disadvantages....................................10
TASK 3..........................................................................................................................................12
P4 Prepare a business plan........................................................................................................12
TASK 4..........................................................................................................................................14
P5 Assess succession or exit options for small enterprise with its advantages and
disadvantages............................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Planning is very important for every business in order to make the business successful.
Every successful organisation mainly focus on regular review of enterprise plan in order to
analyse future growth (Barbour and Deakin, 2012). Small businesses require to analyse their
current performance after formulating strategies as well as policies for gaining development
within upcoming market. In addition, planning will provide a basic structure to meet balance
between activities and its work. Cleenol Group is an independent private company run as well as
owned by themselves. They produce an extensive range of hygiene and cleaning products. They
sell the ancillary goods like as cloths, toilet tissue, dusters, brooms, brushes, refuse sacks and so
on. In this report it involves provision for identifying the growth opportunity in the organisation.
Ansoff's matrix is very appropriate for developing their firm. Along with this it state the various
sources of raising finance for completing business activities effectively.
TASK 1
P1 Key considerations for evaluating growth opportunities
Planning for growth is an strategic business activities which aid the supervisors to plan
and track the performance of enterprises. It allows company to properly use the resources of
external environment. Therefore, digital technology disruption will help to differentiate from
competitors. In current scenario, the Cleenol Group is going to plan for improving its functional
areas by applying digital technologies (Planning for growth, 2017). It will help small enterprises
in gaining higher level of market share and increase its revenue within a span of time. In this,
Cleenol Group is a small business which manufacture a hygiene and cleaning products by using
latest technologies. Thus, company is using latest tools and techniques for making their
manufacturer process easier. In order to enhance their profit margin and sales revenue, firms
developed an effective plan which provides guidance to all activities which are helpful for future
growth as well as success of the firms. Planning help workers to meet all operations and
practices in an best possible manner. With this, it will also help in facing upcoming challenges as
well as threats in a marketplace. Their are various main considerations for growth opportunities
are given below:
Competitive analysis: It is an most important components of planning tools and techniques for
the company at higher level. Cleenol Group is manufacturing a best quality of cleaning and

hygienic goods by providing best possible services to their buyers. Firms help in formulating
effective strategies as well as policies which help company to achieve competitive position at
market. In present scenario, several changes are taking place which prevent the business
operations and activities. Hence, at the time of making plans it require to influence present and
potential rivals.
Competitors analysis can be done by using porter's generic model
This model will aid in analysing external rivals of the company while developing plan for
competitive markets as well as trends. Porter's generic model was an proper framework in order
to analyse external market. Its aim is to understand the rivals of the company effectively. This
model is utilized by company to introduce proper position within industry as well as make higher
profits from enterprises (Brinckmann, Grichnik and Kapsa, 2010). It is important that
management of every company is to make proper policies and tactics to execute activities
properly. Hence, there are several strategies which help Cleenol Group to make competitive
advantages which are as follows:
(Source: Porter's generic model, 2018)
Illustration 1: Porter's generic model

 Cost leadership: It defines that organisation give goods at low rates to attract higher
numbers of potential customers. This is used by companies which are having significant
amount of finance, manpower and material to execute function as well as deliver
effective goods and services within the marketplace. Cleenol Group is an small business
which sells ancillary goods at low cost for grabbing lots of buyers (Burton, 2010). Differentiation: In this, it defines that company is targeting market where having higher
demands. In order to this management need to give creative as well as unique goods to
differentiate from rivals as well as attract higher numbers of customers. Research and
development department aid Cleenol Group to provide higher quality of ancillary
products within the market as per their needs and choices of their customers. Cost focus: This technique is used by company to target niche places within the market
where having less competition. This strategy is beneficial for organisation to
acknowledge market opportunities as well as organise enterprise to deliver effective
goods at low cost. Cleenol Group gives ancillary items which aid company to have better
base of customers to increase it profits and sales (Chapin, 2012).
 Differentiation focus: In this strategy, company deliver unique products to their
customers and target niche market. This aid management to introduce better image within
market as well as loyal buyers. Cleenol Group gives various cleaning and hygienic
product at affordable prices. With this, they give quality of their products and make
customer base. This assist company to sustain its goodwill as well as position within
marketplace.
In this Cleenol Group is selecting differentiation focus and cost focus within their busines
activities. In differentiation focus, they will provide some uniqueness in their products for
attracting them towards their company. In cost focus, they will target the niche market where
having less competitive for earning higher level of profits.

(Source: PEST Analysis, 2018)
Political factors Economical factors
These components find out level for which
government formulate its policies which gave
influence on business activities. It consists
trade laws, political stability, fiscal, monetary
and taxation policies of a country.
(Christofakis and Papadaskalopoulos, 2011).
UK government has regulated various laws for
producing hygienic products, i.e. health and
safety law and so on that must be followed by
Cleenol Group in order to perform effectively
in UK market.
It involve all those elements which gave impact
on economy which are poverty, interest rates,
foreign exchange rates, unemployment and
employment rates etc. In the year 2008,
because of economic downswing buyers
buying power get decreased. Hence, Cleenol
Group can provide opportunities of
employment by adopting latest technology.
Social factors Technological factors
Social factors of external environment are
bringing changes in education level, family
demographics, changes in customers lifestyle
In this, due to advancement technology, it is
important for Cleenol Group to get innovative
and new technologies for enhancing processes
Illustration 2: PEST Analysis

and cultural trends. These components are
emphasised on determining future trends as
well as social environment within marketplace.
Cleenol Group will aid marketers to achieve
better understanding of customers
requirements and provide them best products
of cleaning and hygienic products.
of quality work as well as obtain higher level of
competitive edge. Organisation is using digital
technology for increasing their growth
opportunities.
By analysing PEST it is useful for Cleenol Group in term of identifying all extrinsic
factors which gave impact on its enterprise activities within indirect and direct way. At the time
of finding growth opportunities company require to involve all these components as well as they
have to apply strategies as per which its market success and growth.
P2 Growth opportunities by implementing Ansoff's growth matrix
In this changing environment, every company have to grow as well as radiate in a market
and they focus on applying latest tactics or strategies for increase defensible edge. Cleenol Group
is working as per market changes through making dynamic marketing policies and techniques for
gaining set of functional areas (Eddleston and et. al., 2013). In order to identify growth
opportunities in external environment it is essential for firms to apply Ansoff's growth vector
matrix to measure upcoming risks as well as uncertainties which help in representing market
position. This matrix is also called as market diversification that give chances to company to
grow within new and existing market with current and new products. The purpose behind this is
that organisation can enter within new quadrant for developing market areas. Their are four
elements of this matrix which re given below with the help of given diagram:

(Source: Ansoff's growth matrix, 2017) Market penetration: This entails to sell same products as well as services within current
market. For completing this properly, Cleenol Group require to show several ways which
included in increasing customers trust and loyalty. Along with this it also enhance by
adding more quality and features in existing products. Therefore, penetrate within current
market Cleenol Group is having better opportunity. As it able to implement new
technology within existing products that help in developing working activities and
practices (Grover, Bokalo and Greenway, 2014). It will help in increasing quality of
products in order to make more imperative and effectual. Therefore, to perform
effectively within UK Cleenol Group can use various promotional and marketing
campaigns which meet large numbers of buyers towards firms. Market development: These strategy aid in entering within new market by its current
offerings in order to enhance the market areas and its position. It carry out several small
business opportunities like as Cleenol Group in the context of improving its market
goodwill as well as brand image within customers. While comparing with another
strategies, it is quite flexible and effective as it focus on increasing customers value. At
the time of applying this strategies, firms require to influence geographical areas from
Illustration 3: Ansoff's growth matrix

where company will give its products. If products are not able to matched with customers
preferences and taste then this concept will get failed. Product development: In this, it deals by adopting several tactics and tools in order to
make re-innovate and new products within existing once. Cleenol Group is mainly focus
on applying several new techniques and changes within the process of distribution which
aid in providing quality of products to buyers (Haughton, Allmendinger and Oosterlynck,
2013). Along with this, it will also aid in raising business activities and meet higher level
of customers. For making chances in Cleenol Group can adopt new technology for
manufacturing better and efficient products nd services.
 Diversification: In this strategy, it is very risky for running enterprise. As firms are
entering within new markets through their new products. It is necessary for small
business to adopt this kind of tactics for increasing high competitive benefits. Before
moving to other areas it require to analyse buyers needs and wants for giving products
and services accordingly. For example: Cleenol Group is providing their products within
local areas for attracting customers of that areas.
In this matrix, Cleenol Group is adopting a diversification approaches in their enterprise.
As it will increase their enterprise within different location with their unique products for
grabbing more buyers.
Their are various different options are available for companies to enhance productivity or
growth within market. For competitive analysis of enterprise, there are various strategies are
used by companies like as Porters generic forces, PESTEL, Ansoff's vector matrix and many
more (Hough and et. al., 2010). All these are useful in accomplishing competitive analysis of
enterprise. In term of Cleenol Group, is adopting Porters generic model to determine its presence
of market. In this, also compare its strength and weaknesses with other strong rivals. By knowing
its market position, they can work on that as well as concentrate on increasing its rate of growth.
Competitive analysis gives better growth opportunities of an company in an better and effective
way.

TASK 2
P3 Potential sources of funding and its advantages and disadvantages
Companies need funds for running business activities properly for the long time. If firms
are not having effective finance then it is difficult for organisation to operate their enterprise
within market (Keough, 2015). Their are certain policies made by United Kingdom government
as well as it appreciated to provide funds for large and small business because business units are
running its activities at very low level which is not able to survive for a long time because they
are not having proper funds for completing enterprise activities. In this, they are raising finance
for adopting latest technologies within their workplace. Hence, it is necessary to choose a best
source of raising finance for their business as it will help in operating business effectively. Their
are various ways for increasing funds some of are as given below:
Bank loan: It is very common way to raise finance for enterprise. UK government has
develop several rules and regulations of banks. Small as well as entrepreneurship companies are
taking loans from bank at low level of interest rate for starting their own business. Various other
institutes of finance are providing loans to small business such as organisation societies and so
on. So, Cleenol Group can use bank loan for increasing their funds for adopting latest technology
within their workplace. Advantages: It is legal as well as fix in which companies have to pay fixed interest rates
to financial institutes and banks. Cleenol Group will get the advantages, as provider is
having certain limitations as well as they cannot sue company in order top make advance
payments. Disadvantages: They are having fixed rate of interest so firms cannot have the options of
bargaining with banker. In this, company have to make payments to bank either they are
in profit or loss. In United Kingdom, various types of sources of bank loans are their
which influence as a loan receiver decisions as they cant able to decide which will be the
best source for Cleenol Group.
Crowdfunding: It can be a best options for the Cleenol Group as they are having proper
networks as well as firms have to maintain loyalty and trust before starting enterprise (Leigh and
Blakely, 2016). Crowdfunding is raising capital or finance by using social networks and online
for asking higher level of customers for contributing finance towards the equity exchange,

project-goods and services and so on. In several cases finance are raised through fundraising
websites like as OzCroed & Pozible for adopting sigital technologies within their workplace. Advantages: It is very easy way of increasing funds with no charges. Investor is
evaluating its progress as it will aid Cleenol Group in motivating brand through their
networks. By this process of financing it became very loyal buyers. Disadvantages: This source do not secure the ideas of organisation by using copyrights
and patents. Cleenol Group get returns as well as rewards are wrong as they are
providing higher amount to enterprise for investing.
Peer to peer lending: It is the method of debt financing as it will aid a Cleenol Group to morrow
and lend finance without using intermediaries of finance institutes for using digitalization
process (Li, Mobin and Keyser, 2016). It also eliminate the process of middlemen but it consists
efforts, time and risk than the general as well as brick mortar lending scenario. Advantages: It is very easy as well as fast process of low interest rate and online
application is compared with certain traditional as well as credit cards of finance. Cleenol
Group have to pay monthly and fixed rate of interest without any other charges. Peer to
peer lending can be specific with higher returns within 12% to 36% range. Disadvantages: In this, they do not make available of higher finance. Cleenol Group is
having less credits as it will struck higher level of interest rate which will cost in long
run. It will assist in removing same problems like as panic selling.
Venture Finance: In this source of finance will provide higher level of capital risk. As it is
directed towards young as well as new enterprise with the prospects of higher returns rates and
fast growth. Their investment is not only of finance but also time and skills. This business will
give capital for implementing the process of digitalization of an enterprise ideas and they provide
capital in order to manage layouts. Advantages: Venture Finance is having primary benefit in an Cleenol Group for adopting
advance technology. As it is not possible by others sources such as bank loan.
 Disadvantages: Protecting is an typical process because of legal as well as accounting
firms costs should be shoulder (MacLeod, 2013).
In this, there are various sources of raising funds but Cleenol Group is using bank loan
for increasing their finance in order to adopt latest technologies for making their existing
products more effective. In this, provider is having some limitations that they cannot sue the

company for making a advance payment. Along with this Cleenol Group is also raising finance
by public using crowdfunding for accomplishing all the business activities more effectively. As it
has no charges for raising finance.
TASK 3
P4 Prepare a business plan
The process of marketing strategy is used by supervisor of Cleenol Group comprehend
that what firm will adopt for achieving targets and how they will performed. In this, there are
possible outcomes are confounding which are identified with business exercise at a point it is
powerful for developing business (Martinez and et. al., 2013). Their important instruments for
extension of Cleenol Group. Organisation make a plan for making a strategy successful are as
follows:
Company Description
Cleenol Group is an private organization which is run and owned by themselves. In the
year 1992, this company was one of first firm within this field to meet internationally recognized
ISO9001 quality accreditation include all aspects of enterprises. This firm manufacturer hygiene
as well as cleaning goods. Its products are brooms, brushes, cloths, wipes and many more.
Mission & Vision
Cleenol Group mission is to attract large numbers of customers towards their company
and expand its business in various others countries. Its vision is to keep their customers satisfy as
they believe in we perform and our products.
Internal analysis
Cleenol Group is selecting an proper tactics to meet detailed information about its
system capabilities. It is essential to use the resources of finance effectively as small business are
having limited funds and with that they have to accomplish the companies activities
appropriately (Pallagst, 2010). SWOT Analysis is proper tool and technique which is adopted by
manager of Cleenol Group. It will help in acknowledge rivals working in the field of
digitalization process. Therefore, opportunities and its weakness of Cleenol Group are as
follows:
Strengths
 Cleenol Group have cooperation with
Opportunities
 This company bargains within limited

several well-known cleaning and
hygienic brands products this will help
in making customers base.
 In this modern promote is powerful, as
it is possible for developing enterprise.
Cleenol Group is adoping innovation
which gives edge over contenders.
market of United Kingdom, so Cleenol
Group require to enhance their business
activities (Pierce and Aguinis, 2013).
 Cleenol Group need to grow their
business in other locations as well.
Cash flow
(Source: Cash Flow Statement, 2015)
According to the above cash flow statement, net cash flow from operating activities were
247,747 in 2014 and this has come to 66177 during the year. While on the other hand, total net
cash inflow from operating activities were increased to 838850 in 2015 and this has during the
year and come to 100345 (Cash flow statements, 2015).
Illustration 4: Cash flow Statement

Business plan is an guidelines for organising functions of company within an appropriate
way. Through the help of this plan, all employees are able to perform within proper way by
following all the rules and regulations. It is an responsibility of supervisor to apply plan within
their working environment by involving employees in an significant and effective way. For
protecting investment, business plan has more importance within workplace. It is useful in
increasing their business activities at higher scale as well as make enterprise more successful.
Supervisor require to ensure that objectiveness as well as strategies of organisation are meet by
employees in the context of enhancing a business plan.
TASK 4
P5 Assess succession or exit options for small enterprise with its advantages and disadvantages
It is not necessary that business expansion gives effective results all the time there can be
positive and negative results for the same (Pothukuchi, 2015). Thus, before making any kind of
strategies it is required that both external as well as internal factors are taken into consideration.
Therefore, proper implementation of strategies are required as this can have adverse effect as
well. Moreover, if company is not getting better results than they can opt for the last option
which is none other than shutting down or exist of business operations. In addition to this, there
can be other reason as well like planned exit, change of interest, launching a new venture and
many more.
While running business there might be many reasons for exit which manager must
consider so that in future reasons of shutting down business can be avoided. Hence, some of the
business exit strategies are mentioned below for better understanding:
Liquidation: This is consider as one of the effective and easiest method of shutting down of
business operations. Crises arises when firm is going through losses and debts are higher than
usual. In the process of liquidation assets of firm are sold to other third person and a specific
amount are to be paid to creditors so as to get rid of high liabilities. In terms of Cleenol Group,
they want to exit and for this company can opt this strategy as it is flexible in nature.
 Advantages: The biggest advantage is that it is it needs limited negotiations and there is
no tension of transferring to control. Thus, it is determine as one of the easiest way of
winding up of job so as to get rid of financial losses (Todes, 2012).

 Disadvantages: In terms of drawbacks, business owners might not get high returns after
selling of their assets.
Sales business to friends or family member: Under this, selling of business to friends and family
is being consider therefore, it is determine as a straight forward method as members of family
might know the reason for shutting down of business. Cleenol Group, before handing over
business to other person it is required that they look out for a correct person.
 Advantage: In this, for selling of company, owner doesn't have to put much efforts and
gradually it will reduce cost and time of firms. Disadvantage: Business owners may not get actual price for their business.
Third-Party Sale: Under this owner of the company sell his/her business in an open market or to
a third person. Thus, in this business are purchased by strong person who cam operate the
business and financially strong as well (Valler, Phelps and Wood, 2012).
 Advantages: It is appropriate for expanding business areas and increasing market share
as well. Disadvantages: Fraud and misconduct is one of the disadvantages of third party sale.
Strategies of business expansion: This is a kind of strategy through which owner of the
company identify successor of business so that entire business can be hand over to that
individual. Further some of the business succession strategies are given below for better
understanding:
Merger and acquisition: This concept shows the relation among board of directors and
stakeholders of a company, where it is required for company's administrators to deliver all the
details to stakeholders so that no fraudulent activity can get happen. Whereas in context with
Acquisition, company doesn't change the legal name and structure and respective firm have
majority of the stake.
According to this succession as well as exit strategies, supervisors of Cleenol Group can
select as per their present market condition. At current era, financial growth of organisation is
better. Hence, it should concentrate on increasing enterprise by implementing several strategies
as well as policies (Wu, 2015). Thus, supervisors can apply digital technology process in its
work place. So, as to increase higher level of market success along with that also obtain high
competitive edge all over the globe. For expand their enterprise all over the globe, Cleenol
Group can adopt the process of digitalisation for its succession of its strategy.

CONCLUSION
According to above report it has been concluded that implementing advanced technology
give products and services that help in the growth of business. Ansoff's growth vector matrix
include four important strategies which are diversification, market penetration, market
development and product development. Supervisor of business need to determine organisation
communication as well as performance firms board of director. In this, it will help in
understanding various sources of funds and from this all company is using bank loan and
crowdfunding. Hence, they are adopting advanced technology at the time of marketing,
manufacturing, promoting and so on in an proper manner. Company need to appoint particular
employees to increase their business within the world. In this also make a business plan of an
enterprise which involves strategical analysis, its objective, vision, mission, cash flow statement
and so on for meeting objectives and targets in an efficient and effective way. Along with this
also assess the exit or success ways of the business.

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