Goodhood's Expansion to Ireland: Growth Strategy, Funding, and Plan

This report examines the growth strategies for Goodhood, a London-based retailer planning to expand into Ireland. It explores growth opportunities such as target customers, skilled employees, suppliers, and financing options. The report defines the Ansoff matrix, analyzing market penetration, product development, market development, and diversification as potential growth frameworks. It also discusses various funding sources like bank loans, debentures, and angel investors, along with exit/succession options including liquidation, merger and acquisition, and selling. The report concludes with an overview of a business plan, emphasizing SMART objectives, executive summary, company summary, product offerings, and market analysis. Desklib provides access to similar reports and study resources for students.

Unit 42 assessment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Growth opportunities:..............................................................................................................3
2. Define the framework: Ansoff matrix:....................................................................................4
3. Define the term: Funding:........................................................................................................5
4. Define the term: Exist/succession option:................................................................................6
5. Business plan ..........................................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business growth strategies are defined as the organisational strategies which aims at
expansion and continuous success of organisation. It is the prime goal of any business and thus is
considered as one of the most important aspect of firms (Barrow, Barrow and Brown, 2018).
However, when implementing growth strategies organisations must consider variety of factors
into considerations. For this purpose, Goodhood is chosen as case study organisation which is a
London based retailer. This report will discuss the growth strategies for this small size
organisation based in UK which is planning to grow and to enter into other European countries
initiating from Ireland.
MAIN BODY
1. Growth opportunities:
Target customer: Target customer is one of the most important thing business need to consider
before entering into new market or planning for expansion, for expansion process of Goodhood,
this retailer has to identify right target market and right customer segment in market of Ireland. It
is very clear that Goodhood is fashion retailer that need to target those audiences who will be
preferring stylish wear (Ascarza and et.al., 2017). Right target customer is one of the biggest
growth opportunities for the company however, sometimes choosing this option will be risky for
Goodhood because they might miss other customer segment and might fail to understanding taste
and preference of target customer.
Skilled employees: when entering new market of planning for expansion, company need to have
strong team that allow them to get success with their skills, ability and knowledge of the market.
Goodhood can only survive market of Ireland with the help of skilled worker who have ability to
achieve organizational goals even in completely different market, this company might hire
employee from Ireland because they have enough knowledge about market condition and help
company to avoid taking wrong decision (Bilan and et.al., 2020). However, company can not
fully depend upon employee even if they are skilled because their wrong decision will company
to suffer in new market.
Supplier: supplier play vital role when entering new market, company need to consider right
supplier that provide raw material in right time at affordable price. It is very clear that company
need to find those vendor that can fulfil demand of company in right time, Goodhood company
need to create a chain with supplier of raw material and contract them in affordable price to cut

off expense. However, supplier of other market might charge higher prices and often impact
company growth. Goodhood company have to arrange raw material for their own country and
have to export it to Ireland where they will be operating.
Financing option: finance play vital role when company plan to enter new market, it is very
clear that expansion is not possible if they do not have enough budget. Goodhood company need
to find best financing option available before entering market of Ireland because condition might
go worst and company need to exist without generating higher profit (Staniewski, Szopiński and
Awruk, 2016). However, taking loan or rising funds for expansion is very risk, if company fail to
survive market then their local positioning will also be impacted. Goodhood need to use their
own surplus profit and focus on expansion as this allow them to be safe from any kind of
financial impact.
2. Define the framework: Ansoff matrix:
Every business organization want growth, they look for those opportunities which can
boost their expansion process and allow business to become market leader (Dawes, 2018).
Goodhood is rapid growing business entity that focus on four most effective option available as
business growth, these are:
Market penetration: Market penetration is one of the most effective growth option available
with company, this option allow company to increase sales with existing product in existing
market. Goodhood have opportunity to expand their business in local market and fulfil rising
fashion demand of consumer, this company can need to focus on marketing strategy to boost
sales in local market. This market penetration option is beneficial for the company but local
competition is the biggest issue company have to face while using this option.
Product development: Product development means company will try to develop new product in
existing market, Goodhood retail company can introduce new product in existing local market of
London. If company adopt this option then their product range will be increased that means they
can capture bigger market share. However, there is high risk of failure with this option because
developing new product will going to cost high and might not survive in the market. Being an
fashion retail giant this company have to adopt different option.
Market development: Market development means company have to focus on entering new
market with existing product, Goodhood can adopt this option by entering nearby local market,
for example if this company is planning to enter Ireland market then they can use this option.

Although, this option might not work because of taste and preference of the consumer, this
option is beneficial for those who have wide range of product. Goodhood company have to select
this option as this will be most beneficial because entering new market with existing product
allow company to cut expenses and reduce risk of failure.
Diversification: diversification means company will try to enter new market with new product,
for Goodhood, this is most beneficial option because if they want to enter new market then they
have to bring new product that meet demand of consumer (Loredana, 2017). It is very clear that
this company need to bring innovative product to survive new market. There are certain risk
available in this option for example if new product fail in new market then their local positioning
will be impacted.
3. Define the term: Funding:
Funding is one of the most important element of every business organization as this allow
company to become stable, this fuel help company to boost their growth (Michiels and Molly,
2017). Almost every company look for certain funding option, these option have their own terms
and condition which can be beneficial as well as dangerous for the company. There are different
sources of funding, these are:
Bank loan: bank loan is one of the most common but beneficial option for collection of funding,
bank are design to provide loan to business. If company want to expand their business then they
need to consider bank loan, it is very clear that company have to provide interest to bank
according to loan amount. Goodhood company can look for this type of funding for their
expansion process, as bank will be ready to provide loan. However, Goodhood company should
that there are certain drawback of bank loan as company to provide collateral for loan amount
and interest rate will be costly for the business organization.
Debenture: Debenture is one of the most effective way to rise fund for business organization, in
this type company have to issue debentures in against of fund to general public. Goodhood
company can rise funds with the help of debenture, but they need to first list themselves in natial
stock market. Apart from this , providing shares and debentures to general public means
company is giving equity which is very risky for the business especially small scale business
organization. This is effective method of rising funds but Goodhood company need to avoid this
method because of high risk.

Angel investor: angel investor are private investor of the company who have enough wealth to
invest in other business organization, these type of investor provide as much funds as required by
the company, but they take equity in the company. Goodhood company can rise funds from these
type of investor as they will help them to provide funds as well as expertise. But Goodhood
company need to provide equity against investment which is risky as terms and condition of
these investors may not suite company and their long term growth.
4. Define the term: Exist/succession option:
Every business organization face challenges while expanding their business in new
market, some businesses survive and some fail to meet the demand. Before entering any new
market, company consider exit option that allow them to leave market or discontinue their plan
with less or limited financial consequences, there are different exist option available for the
company, these are:
Liquidation: Liquidation means closure of business permanently, here small scale owner
completely shut down their business and liquidate their assets and holding. Company who fail to
survive market often close their business door, this type of exist option might sound negative it is
better to leave rather that spending remaining profit.
Merger and acquisition: Merger and acquisition is one of the most effective way to survive
market condition, it is very clear that when business fail to hold its position in the market then
they look for other business organization who can provide partnership and allow company to be
safe from liquidation (Chirico and et.al., 2020). There are two option available with the
company; at first merger, in this type company often merge with small scale business with
similar product, but they have stable position in the market whereas acquisition means acquire by
large scale business organization who have similar product but have market leadership allow
failing company to survive the market. But in both option, company will loos management and
some ownership, in terms of partnership, company will have to terms and condition of leading
business that might not suit small business owner.
Selling: Selling is one of the hardest decision for business owner because selling their business
even it is in loss is quite challenging, small owner put their saving and funds to start a business
but when it fails to survive market then they have to sell it to other business owner with stable
income. This type of exist option is considered as most negative because selling business will

provide money to owner, but they will completely lose all business benefit. This option is not
every common but at time of tough situation, owner might take this option.
5. Business plan
Business plan is defined as the systematically written document which defines the ways in
which an organisation initiate or expand its business activities in different environment (Fichter
and Tiemann, 2020). This document enlists all phases and stages which are required to achieve
stated objectives.
SMART analysis and objectives: SMART analysis aims at formulation, planning and
implementation of objectives which are specific, measurable, achievable, realistic as well as time
bounded. The use of this type of analysis helps ins clear description of goals so that businesses
can grow and expand their services.
Executive summary: This business plan will discuss the plan for business expansion of
Goodhood into Ireland. The business plan will include the summary of market research so that
appropriate business and management strategies can be proposed.
Company summary: Goodhood is small size organisation currently operating in London only.
However, seeking to potential of online stores and demand of clothing and fashion retailer
organisation is planning to expand its services to Ireland so that gradually it can become a
leading brand among European countries. Owing to fund and resource limitations organisation is
first planning to expand through market development strategy.
Products: Organisation provides exclusive clothing, footwear, beauty care and home utility
products so that it can target wider range of customers. The target customer range for
organisation will be 18-55 years old. Organisation offers moderate range of pricing so that even
middle and low income customers can also be approached. In Ireland also organisation will enter
with its existing product range so that it can use its high quality product to attract customers.
Market analysis summary: Though market environment of Ireland and UK is quite similar due
to European values but as Ireland is still part of European union its legal and business
environment may vary from that of UK. There may be different trade regulations which
organisation may have to follow in Ireland (Morgan and et.al., 2019). Thus organisation must
follow all the business legislations related to trade so that it does not face any legal complications
(Escaris, 2019). In addition to this Ireland is also sound with technology and thus organisation

can fully explore the use of social media and other digital marketing options to achieve its
business goals.
Strategic implementation: Initially organisation will use only market development strategy as it
will be less costly and easy to implement in the new market. It will also involve few risk in the
market. Along with the market development strategy Goodhood will also use differentiation and
low cost method to attract the customers. The fashion retail segment has fierce competition from
both local as well as international service providers (Triono, Dalimunthe and Arif, 2018). Thus
organisation will offer low price services with good quality products to build brand. Along with
the offline stores organisation will have online delivery services with creative and personalised
service options. It will act as competitive action by the firm to create unique selling proposition.
In addition to the product range organisation will heavily spend on promotional activities.
Initially it will work on social media campaigns and some direct selling methods so that it can
create brand awareness. In order to retain customers for long term organisation will also initiate
reward policy so that its retention can be improved (Aull and et.al., 2020). The pricing will be a
dominating challenge for the firm in the new market thus organisation will try to maintain
competitive and minimum prices at the initial stage. To maintain profit organisation will also try
to reduce its costs in other business aspects.
Management summary: With expansion and growth organisation will have to ensure that it
possess all necessary resources for managing its operations (Escaris, 2019). The good leadership
will aim at hiring talented and skilled workforce which can effectively manage the risk factor in
the market. For this Goodhood will hire local people so that better understanding about local
needs and culture can be taken into consideration. Along with the human resources Goodhood
will also employ attractive layout and advanced technical solutions so that it can improve its
operational efficiency. The regular monitoring of business activities will be helpful for the
organisation to keep track of its drawbacks and improvement areas so that it can make necessary
steps to enhance productivity (Karami and Madlener, 2021).
Financial plan: The organisation will use its own fund for initial establishments and marketing
expenses. However, in respond to other organisational requirements organisation may later need
more funds and thus it can approach for angel investors. The expected budget for its expansion
into Ireland in first phase will be £50000. The expenditure will be distributed in logistics,

material, promotion and marketing, registration and legislative formalities as well as rent. The
return is expected from the direct selling.
CONCLUSION
It can be concluded from the above discussion that when planning for growth organisations
must emphasis on their capabilities as well as the business environment factors which can affect
the operations. The strategies such as funding source or succession and exist strategies must be
considered in growth plan so that competitive aspect of growth can be maintained. It has been
also analysed that when organisations implement growth plan they must adopt advance
marketing and management approaches so that resources and capabilities can be explored fully
to achieve growth objectives. Strategies related to growth can be challenging and thus there must
be appropriate planning and consideration of business parameters for achieving desired growth
outcomes.

REFERENCES
Books and journals
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resource practices and links with organizational success. Business: Theory and
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