Nescot Unit 42: Planning for Growth of Crocus.co.uk Business Report

This report focuses on the growth and expansion strategies for Crocus.co.uk, a UK-based online plant retailer. It begins with an introduction to the importance of planning for business growth and provides an overview of the company. The report covers external analysis, identifies growth opportunities using the Ansoff matrix (with a focus on market development), and evaluates various funding options. A detailed business plan is developed, including financial projections and strategic objectives. Furthermore, the report assesses succession and exit options, such as mergers and acquisitions, partnerships, and selling the business, providing the benefits and drawbacks of each. The conclusion emphasizes the interlinked nature of planning and business growth, recommending strategies for both success and failure scenarios. The report is aimed at providing a comprehensive analysis of Crocus.co.uk's potential for growth and strategic decision-making.

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 & TASK 2..........................................................................................................................3
P1, P2 & P3 Covered in Brochure..........................................................................................3
TASK 3 ...........................................................................................................................................3
P4. Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business........................................................................................3
TASK 4 ...........................................................................................................................................5
P5. Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.......................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Planning is a fundamental activity which is undertaken by organisations in every stage of
the business for smooth running of operations and earning profits objectively. Plans are the most
basic and crucial element which requires critical analysis and focus of the management. In the
same way plans are also developed for growth as well, businesses of different size and scope
always plans for growth in order to move forward and attain higher position in marketplace.
Thus, planning for growth is considered to be a continuous and simultaneous act. This report is
developed over Crocus.co.uk formally known as Crocus, a small business organisation and the
biggest and best brand of planting in UK. The company was established in 2000 and since than it
has attained huge growth and success leading to becoming the best in the market by just online
presence. The report consist external analysis along with identifying the growth opportunity by
applying Ansoff growth matrix. Moving along different funding options will be evaluated and at
the end one will be recommended. Once the research is completed then a action plan will be
generated and with it at the succession and exit option available with the brand are discussed.
TASK 1 & TASK 2
P1, P2 & P3 Covered in Brochure
TASK 3
P4. Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
COMPANY OVERVIEW
Crocus.co.uk commonly known as Crocus is a plantation company which grow and sell
plants online. Crocus was founded in 2000 and since than company is regularly flourishing and
moving towards growth and success (Grooms and Frimpong Boamah, 2018). It is gardening
website which was established in UK and since then the company has attained the position of the
largest gardening website which is supplying significant range of plants to the customer but are
differentiated and of good quality.
Crocus have earned huge numbers of awards and prices since came in to existence, it has
around 25 medals earned in last 15 years. The company is planning to growth and expand for
which market development is the strategy that is being explored.

VISION & MISSION
The vision and mission statement of Crocus is similar as the company is aiming to
provide the best plants to customers and raise awareness in people for environment. The long
term objective if to focused over the environment and bring change in society by planting more
and more trees and embracing the natures beauty (Morison, 2020).
OBJECTIVES
 To developing and increase market share by 12% in next 8 months.
 To increase sale and revenue growth by 9% more then the increase in 2019 of 21% in
next one year.
 To increase profits in relation with sales and at least by 10% in next 12 to 15 months.
STRATEGY
The growth strategies are explored and elaborated through Ansoff Growth matrix are of
four types. Out of these four strategies one best and the most suited method to growth and
develop for Crocus in order attain higher position in market and fulfil all the objectives
mentioned above is Market Development. It is the method to expand and grow through which
Crocus will develop a new market by moving to global level and establishing business in an
another region. The market development strategy is adopted as the risk involved is moderated
and can be easily mitigated. Company can make use of several succession strategies like
partnership, merger and acquisition by entering the fresh operating region with collaboration by
an exiting firm. The risk is reduced as Crocus can make use of resource of exiting entity to gain
competitive edge in new competitive environment.
STP
 Segmentation- This is a technique for dividing the market into small groups according to
their characteristics, features and attributes. This is a sorting stage of the process where
Crocus will divide the market either demographically, geographically, through
behavioural factors and by psychographic dynamics. Crocus is using geographical
segmentation.
 Targeting- Once the segmentation is completed and the markets are divided into groups
than the most appropriate segment who's needs are relevant to company's offerings are
then targeted. For Crocus upper middle, upper class and elite class families are the
potential targets of the region in which it will expand (Perveen and et. Al 2017).

 Positioning- The manner in which company place it self in market and keep the targeted
audience aware is the positioning stage. Crocus.co.uk is an organisation which is using
technology for its operations and these technologies and advanced devices will be used
for positioning too. Company will be making effective use of digital marketing tools like
social media for doing so and placing itself in the new area of operations.
FINANCIALS
 Budget
Particular 31/12/19 31/12/20 31/12/21
Implementing technology
cost
15000 - 3000
Promotional expense 11000 10500 7500
Advertisement expense 8000 7500 6000
Catalogues 1500 2500 3500
Training charges 9000 7000 6500
Total Cost 46500 27500 26500
 Cash Flow
Particulars 1st year 2nd year 3re year
Initial investments 9800 12560 18000
Borrowings 10500 6200 9500
Retained earnings 5500 8500 10000
TOTAL 25800 27260 37500
MARKET OUTLAY
Promotional expense 8800 8000 13500
Distribution expense 4000 7400 9500
Publicity 5500 12500 8500
TOTAL 18300 27900 31500

TASK 4
P5. Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.
SUCCESSION OPTION:
 Merger and Acquisition- This financial factor is a general term is used to emphasis
about the combining of companies or assets through various financial transaction,
purchase of assets and management acquisition which integrate to allows the ample of
opportunities and other aspect. As the perspective company Crocus, they are United
kingdom based well stabilised organisation and having a probability in the market that
Crocus can merge with some existing company in United kingdom and easily for making
their business expand in other countries (Rudolf, Kienast and Hersperger, 2018).
BENEFIT
Increase the probability of more earning profit- As having the successful merger and
acquisition of a Crocus with existing company, it will generates more profitability along with
easily accommodate the advanced resources from existing market in easiest way. The positive
side of Merger as it commence the efficiency increases of company in terms of productivity and
generates more options for investments which will support to Crocus company for enlarge in
other market.
DRAWBACK
High cost incurred in products- Through mergers between two companies will makes
the monopoly power increases that occurs a negative impact in customer buying traits. The
product price increases which create less number of customer engagement that will diminishes
product productivity.
 Partnership- It is the arrangement where two or more parties come and join togetherby
abiding all the rules and regulation with corporate advance and mutual interest known as
Partnership or business partners. The Crocus company's top level members are eligible to
make a partnership with other existing company members where it will having a benefit
of equal profit and loss sharing.
BENEFIT

Easy to get optimised- The partners are easily get ready to pursue their partnership
agreement through verbally and written process. It does not require any kind of registration with
other companies in fact, it not allows the additional cost but enhance the sensible partnership
agreement procedure which contains some major important norms for related with partnership. It
also having the easy to quite if they want to (Swan and et. al., 2018).
DRAWBACK
Unlimited Liability- In partnership business the partners does not having any secondary
resource of capitalism as they are own liable for invest, debts and bearing of losses. It can create
huge problem when business is not able to generate profits partners have to invest their personal
assets and clear all the credibility that will not gives any assurance about more profits or
business expansion unless it will generate the expected profit.
RECOMMENDATION:
In above succession planing for Crocus Company the suitable factor would be Mergers
and Acquisition, as it will bring the opportunity of more investment and resources acquire from
other existing company. Sharing of Profit will be in equal ratio as well as promotion product
from online and offline will allows the high returns and it will support to expand the Crocus
venture business globally or internationally.
EXITING OPTION:
 Winding Up the operation- When a company faces insolvency or any other kind of
liquidity crises as financially, company sold their personal capitalism and assets to
recover the debts after the winding up operation is completed company is entitled for
dissolve and ready to exist. In the perspective of Crocus organisation, they can be face
bed-debts at the time financial crises or not gaining the profit as this can be disaster for
Crocus company it can be shut down also.
BENEFIT
Clear all the debts- By being unable to repay current and previous outstanding debts,
overdraft it would be right time to sold out the company as overall personal assets, investments,
shares and other part of assets which derive to be selling purpose to making written off from all
the overdraft and outstanding debts.
DRAWBACK

Wrongful Trading can imposed accusation- At the time of winding up, the insolvency
auditors can obliged to investigate for the conduct of all directors. Some how, shortage of assets
can not repay the debts which can leads towards the legal proceedings and faces off huge
amount of penalties which could create a issue for long term (Wey, 2019).
 Selling the business in open market- By selling of business in open market is the most
known practise specially for small business enterprise in this some buyers are wanted to
buy that particular small business which is entitled for selling with an objective to
undertaking the ownership. With the perspective of Crocus company, they can easily
pursue for open market for their business selling purpose. Somehow, they will earn few
amount of capital from the external market buyers.
BENEFIT
High price offers- It depends upon the economic conditions as in favour as well as the
trending of market are in high demand could bring a advantage for attracting the potential buyers
as they might offer higher price for insolvent company in which exiting owner can get some
amount of capital as cash.
DEAWBACK
More time consuming- In the condition of selling of business can take long time, if there
is no scope of buyer it will impact the owner by face challenges for repay its debts and can
creates uncertainty. In the process of negotiation for selling of business could be comprise huge
time undertakes (Zhou and et. al., 2017).
RECOMMENDATION:
For Crocus company there would be better existing option to determine the Selling of
Business in open market. Its having a probability for generates capitalism to exiting owner in
short term purposes. Although it will takes lot of time to finding the buyer for getting better or
moderate return.
CONCLUSION
The above report is developed upon the plans developed for growth and expansions of a
Small business organisation concluding that planning and growth of business are two activities
which are interlinked. The plans developed and successfully implemented will lead to growth
and success of the firm. Moreover, external analysis allowed for developing a business plan for
exploring the growth opportunity of Market Development suggested. Funding options are

evaluated and the most suited is Venture Capital for the organisation. At the end succession and
exit strategies are also recommended in both cases either success and effective implementation
of business plan or failure.

REFERENCES
Books and Journals
Grooms, W. and Frimpong Boamah, E., 2018. Toward a political urban planning: Learning from
growth machine and advocacy planning to “plannitize” urban politics. Planning Theory.
17(2). pp.213-233.
Morison, I., 2020. The corridor city: planning for growth in the 1960s. In Australian
Metropolis (pp. 113-130). Routledge.
Perveen and et. al 2017. Evaluating transport externalities of urban growth: a critical review of
scenario-based planning methods. International Journal of Environmental Science and
Technology. 14(3). pp.663-678.
Rudolf, S.C., Kienast, F. and Hersperger, A.M., 2018. Planning for compact urban forms: local
growth-management approaches and their evolution over time. Journal of
environmental planning and management. 61(3). pp.474-492.
Swan, M., and et. al., 2018. Fire planning for multispecies conservation: Integrating growth stage
and fire severity. Forest Ecology and Management. 415. pp.85-97.
Wey, W.M., 2019. Constructing urban dynamic transportation planning strategies for improving
quality of life and urban sustainability under emerging growth management
principles. Sustainable Cities and Society. 44. pp.275-290.
Zhou, Y and et. al., 2017. A novel path planning algorithm based on plant growth
mechanism. Soft Computing. 21(2). pp.435-445.
Online:
Using The Ansoff Matrix to identify growth opportunities, 2019. [Online] Available Through:
<https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-
model/>