Business Growth Strategies for DCS Group: A Planning Report

This report provides a comprehensive analysis of DCS Group's growth strategies, focusing on various aspects critical for business expansion and sustainability. The report begins with an introduction to the importance of growth in an inflationary market and introduces DCS Group, a small enterprise dealing in grocery and household products. The report then delves into Task 1, which analyzes key factors influencing growth opportunities using PESTLE analysis and evaluates growth opportunities using Ansoff's matrix. Task 2 explores different sources of funding available for businesses. Task 3 presents a business plan including financial information and strategic objectives. Finally, Task 4 examines exit and succession strategies for small organizations. The report incorporates real-world examples and provides a detailed understanding of business growth strategies and their practical applications.

Planning For Growth

Contents
INTRODUCTION.......................................................................................................................................4
TASK1........................................................................................................................................................4
P1 Analyze key factors that consideration to evaluate growth opportunities in organizational context...4
P2 Evaluate growth opportunities with Ansoff's matrix..........................................................................6
TASK 2.......................................................................................................................................................8
P3 Different sources to acquire funds for businesses...............................................................................8
TASK 3.................................................................................................................................................10
P4 Business plan of organization that includes financial information and strategic objectives..............10
TASK 4.....................................................................................................................................................14
P5 Exit or Succession strategy that utilize by small organization..........................................................14
CONCLUSION.........................................................................................................................................17
REFERENCES..........................................................................................................................................18
Books and journals:...............................................................................................................................18

INTRODUCTION
An organization stands in a market for its survival and growth for which it uses many
tools and aspects to recognize a market demand for its growth, as the growth is a main Concept
for a business so that it can survive in an Inflationary market (Cilinskis and et, al., 2017). There
are a lot of factors which affect a business growth and its Strategies for which it have to analyze
actual market demand and growth aspects to run a business successfully. This report is about
DCS group that is a small enterprise which deals in grocery items and household products as per
consumers demand to maintain and achieve its business objective. This report is going to analyze
every macro environment factors which affect directly on business growth and this will be
analyzed by porters five Force model and Ansoff matrix. These are the essential tools for
business which helps to achieve business its long term expansion also, the strategies which have
to use a business for its expansion and dissolution, the sources of funds which is needed by an
organization to run properly. As these factors are helpful to organize strategies, an organization
makes investment for.
TASK1
P1 Analyze key factors that consideration to evaluate growth opportunities in organizational
context
A business organization has much good luck for its growth, but among that good luck,
many factors are affected by it, due to which, it is not able to grow better. Using the right factors,
the manager brings that good luck and uses them properly which gives a business the courage to
stand up in the market. Use of pastel analysis is the best; this Analysis is used by the manager of
DCS Company to identify the strategies of its market and to take them to a level which is
described below:
Political factors:
Political factor creates much influence on the business performance as if business
performs under the regulations of political parties and government regulations it will achieve
high growth and will be beneficial for the society. Therefore, it will enhance the productivity and
profitability of the organization. In context with DCS organization, the company is highly
impacted by government regulations as by the time government made several amendments for
small and large organizations in UK that will influence on the extension of an organization. As

influenced by Brexit, UK imposed several regulations on companies operation by exit the flow
of import and export goods from European countries that will resulted in high cost products
because of high raw materials and labor (Deng, 2018).
Economical factors:
Economical factors States the conditions of economic market which creates impact on
employment opportunities inflation, demand and supply of the economy. In UK the country is
facing many issues regarding sales and purchase because of the unhealthy conditions over past
few months. Due to covid-19 situation demand and supply of the economy has flatter its curve to
downwards by which people get offended of offline purchase through health concerns. That has
impacted on sales and profitability of DCS organization. Due to which it has to maintain proper
sanitizing facility and provide healthy products in order to run effectively and efficiently.
Social factors:
Social factor put highlight on consumer behavior and their wants of significant products.
That connects various elements of like personality, attitude of consumers. It is a significant
aspect for managers to analyze every element of consumer preference and market trends. In
context with DCS group, they offers consumers to buy product online in past pandemic crisis
which provide convenient facility for the consumers and therefore, increases the demand of
products which continues the flow of profit and certainty of the organization (Fasbender and et.
al., 2019).
Technological factors:
Technological factors make an organization to accept and adapt current Technologies and
innovations in finalize their products and strategies which gives better quality services and
consumer satisfaction. Everyday consumer wants something extra and innovative which could be
implementing by use of upcoming Technologies. In reference with DCS group they adopt digital
promotion technology by which they can easily reach to number of consumers and attract them
through their innovative advertisement and online delivery services. Also they assist finance and
software functions CRM which increases efficiency and product accountability.

Legal factors:
Legal factors evaluate State Law and regulations imposed by government under
provisions of act which needs to be followed by every organization before commencement and
begin any performance. This law includes with aspects of employee welfare, trade policies,
malfunctioning, and Consumer Protection law equality act 1942. DCS group must evaluate their
operations under these lawful provisions and ensure safety and employee welfare by making
appropriate strategies and policies without being into any disputes (Fernández and et. al., 2016).
Environmental factors:
Environmental factors indulge in organization to fulfill needs of environment in order to
persuade benefit from this society and community it work for. These elements focus on
environment stability by making sure the right use of its available resources. In context with
DCS group, organization make environment friendly products and mechanism for its
manufacturing also they must use organic items and less polluted free plant and machinery. Also
provide enormous opportunities for job employment to reduce poverty.
From the above discussion it is analyzed that external factors plays a vital role in an
organization with the help of pestle analysis. As these factors are necessary to evaluate in
business performance through which managers of DCS group implement and acknowledge all
the uncertainty and complex situations which can be a barrier for its growth (GiLEE and
BokCHOI, 2020).
P2 Evaluate growth opportunities with Ansoff's matrix
Every organization has to formulate effective strategies for smooth functioning, for which
ansoff matrix is one of the excellent tool in order to examine future growth and accountability. In
context with DCS group, these strategies are defined below:
Market development:
Through the use of the strategy a company can set its target by analyzing market demand
and its trends which will help an organization to expand in wide regions.
Advantages:

 This will help the organization to remain active in the eyes of customers.
 With the market development company can enjoy ample opportunities for its growth and
success.
 It can create competition among Rival firms such as kinary, Lifes2good and more.
Disadvantages:
 This strategy proves to be expensive and costly due to requirement of higher investment.
 Also, proves to be a time consuming task for managers as it require research and
development.
 There are several chances of risk that would be charge high cost from the organization
(Karve and et, al., 2020).
Product development:
This segment enables the features for the organization to diversify their product into
various categories under one roof. As like DCS group providing health care, household products,
stationery items and goods for every age group and gender.
Advantages:
 It promotes growth and expansion of the organization by increases profitability and
productivity.
 The company provides existing products to the existing customers who are loyal towards
the organization could positively impact on product mix.
 This strategy attracts not only consumers but supplier also to provide good quality raw
material at cheap rates.
Disadvantages:
 Due to product enlargement, it includes enlargement of operational activities also which
require more number of employees.
 By providing job opportunities, it could enhance the cost of final output which makes the
product expensive.

 The risk of loss of existing customers could be borne by the company the failure of other
new products.
Diversification:
As per the strategy, company launches new product in the new area or region to Grab the
opportunity of that particular market and utilize available resources to its full extent. The
managers of DCS group assist this method as a way to indulge numerous customers towards
them (Liu, Te Pai and Lin, 2018).
Advantages:
 The strategy leads to firm expansion and opportunities two face various challenges
positively.
 Through product diversification, the company eliminates the problem of unemployment
which will be in the favor of society and Nation.
 The company can retain its brand name and reputed image for long-term aspect.
Disadvantages:
 There is high financial risk in product diversification.
 This requires use investment and capital contribution.
 Failure of this can lead to insolvency and permanent dissolution of firm.
TASK 2
P3 Different sources to acquire funds for businesses
A company can generate its funds by internally or externally. Funds are necessary to
operate day to day business activities or make investment (Loures and et, al., 2018). Internal
funds could be generated by contribution of capital, rather external funds generate by loans,
Financial Institutions etc.
For DCS group, here are list of sources each has its own merits and demerits.
Bank loan:

This source is mainly used by much organization to fulfill its financial needs. The loan
can be granted by private or public Bank institutions at a fixed rate of interest that has to be
repaying at maturity date. DCS group borrow money through these institutions:
Advantages:
 It has very easy and less time consuming procedure to borrow money from banking
institutions.
 It has minimum interest rates which can be repay by the company favorably.
 These institutions provide discounting offers as well through which company can grant
loan very often.
Disadvantages:
 There could be a rise of complex situations in fulfilling formalities of loan procedure.
 After attaining maturity date, banking institutions could high their interest rates (Mamoon
and Ahsan, 2017).
 There is a need to put some asset for collateral in order to borrow money.
Loans from friends or relatives:
Under the source money is borrowed by close friends or relatives without paying high
amount of interest rate. This source is more flexible for DCS group.
Advantages:
 This source is free from legal formalities.
 This source proves to be cost effective as relatives do not or slightly charge interest
amount.
 It is the most valuable source to acquire money for operations.
Disadvantages:
 This could be not a proper way to acquire funds.
 Huge money e could not be lent from this source.

 Time is a big barrier in this source, as the money could not borrow for a longer period of
time (Morphet, 2017).
Venture capital:
It is the most significant way for newly and small startups, owner will be liable for the
profit and interest as well. DCS group could collect funds from this source effectively.
Advantages:
 Funding can be result in financial opinions also, that will assist an organization towards
the path of success.
 There is no requirement to pledge any asset.
 This show develops good relations with the industries.
Disadvantages:
 Through opt this source; an Organization could loss its control over the operations.
 There is a lot risk and uncertainty indulges in this method.
 The process involves in this method proves to be long and complicated regards with the
venture partners.
By examine above methods, there are several sources and opportunities to raise funds for the
organization in order to expand its product or diversification. Also, Ansoff's matrix tends to be
an effective way for organizational structure, perceptions and development.
TASK 3
P4 Business plan of organization that includes financial information and strategic objectives
Business plan is a tool that used by companies for their efficient growth, it include
organizational objectives and goals in a written form. It also include the method and time frame
that adopted by the firm for the accomplishment of goals and targets (Rauhut and Humer, 2020).
It is road map that provides guidance and directions to the organizational firms. Business plan
including financial assessment that shows the inflows and outflows of the company which helps
to attain the organizational targets that is profitability and productivity of company. DCS group
is the international firm it is very essential for them to prepare a business plan for the sustainable

growth and attainment of objectives. For gaining practical knowledge of business plan, DCS
made their business plan that is well explained below:
Business Plan Template
Executive Summary DCS is the UK firm that deals in the distribution and selling of
household, beauty and healthy products. It is the social firm that
helps to the society by satisfying their needs and wants. Due to the
COVID-19 sales revenue decline but they started to sell their goods
and services by online such as Twitter, Face book and LinkedIn so
that they cope up with their challenges. They are the distributor of
Johnson & Johnson, P&G, Colgate and Sacla. They continually
grow their business every year so that they lead in the market. Their
main agenda is to create and maintain wonderful working
environment that helps the community.
Business details Vision: DCS vision is “to encourage Entrepreneurship, enterprise
and innovation with strong business ethics”.
Mission: Their mission statement is “to provide best quality of
goods and services to the customer for satisfying their wants and
desires”. They also have a passion to achieve their growth and
excellence in efficient way.
Objectives: DCS have a very clear objective i.e. “to delight their
customers through creation of loyalty by lifetime”. Because they
believe that company should have responsibility and sustainability.
Industry & market
analysis
Market and industry analysis is the method that uses qualitative and
quantitative assessment of the market. It includes customer
segments, competitors, and size of market in value and volume
terms and buying patterns and economic environment.
Customers & value Customer and value proposition basically is the statement that used
by the companies to know the behavior of consumers that why they

proposition chooses the product or services. It is the tool for targeting the
potential customers through analyzing their taste and preferences. It
should be include target market segment and substitute goods that
offered by the competitors for gaining the knowledge of
competition in the market (Sakieh and Salmanmahiny, 2016).
Marketing strategy Marketing strategy is the technique that promotes the product and
services of the company. It should explain 4P's and additional other
3P's. The main 4P's are price product promotion and place. And the
other cities are process people and physical evidence.
Operations plan Operation plan is the pre-determined land that defines how
department and team contribute in the achievement of company's
goals and objectives. It should be include relevant information that
helps to achieve their goals. It includes inventory requirements,
operating activities, suppliers and brief explanation of of
manufacturing process.
Management team &
company structure
It defines the structure of the company that in the form of diagram
which include details of important members and their
responsibilities of the company.
Resources Resources are the raw materials that used by the companies for their
production and manufacturing of the goods and services. It must
include the important information of machinery and equipment,
business physical location and staff.
Financing Financing is one of the most important resources that used for
investments and to operate the day to day functions in the
organization. In the business plan finance is the most important
element that should be included. In finance part the relevant
information of finance sources should be include so that third party
knows the financial activities of the DCS group. In financing part
there is minimum 60% is owners fund and remaining 40% is

borrowing funds.
Financial projections Financial projections include cash flow projection, income
projections, ratios and balance sheet projections.
2020 2021 2022 202
3
2024
£m £m £m £m £m
Sales 20 22 25 27 30
Expenses
Cost of goods sold 6 7 8 9 10
Depreciation 0.5 0.5 0.5 0.5 0.5
Advertisement 1 1.5 2 3 2.5
Rent 0.3 0.3 0.3 0.3 0.3
Salaries and wages 1.2 1.3 1.4 1.5 1.6
Furniture and
equipment
4
Travel 0.1 0.2 0.3 0.4 0.5
Interest expense 2 2 2 2 2
Total Expenses 15.1 12.8 14.5 16.7 17.4
Net Income before
taxes
4.9 9.2 10.5 10.3 12.6
Income tax expenses 0.98 1.84 2.1 2.06 2.52
Net income after
taxes
3.92 7.36 8.4 8.24 10.08
Projected Income statement for the next five years