Planning for Growth: Clearly Drinks Limited and Digital Tech

This report provides a comprehensive analysis of growth strategies for Clearly Drinks Limited, a soft drink company operating in the UK. It explores the key considerations for evaluating growth opportunities, emphasizing the role of digital technology in enhancing competitiveness, fostering innovation, and facilitating market expansion. The report applies Ansoff's growth matrix to identify potential strategies, including market penetration, product development, market development, and diversification. It then examines potential sources of funding, such as bank loans, crowdfunding, and venture finance, along with their respective advantages and disadvantages. Furthermore, the report outlines the design of a business plan for growth, incorporating elements of digital technology implementation, and concludes with a discussion of exit and succession options for small businesses. The report uses PESTLE analysis to assess the external factors affecting the company's expansion plans. Overall, the report provides a practical framework for Clearly Drinks Limited to achieve sustainable growth by leveraging digital technology and strategic planning.

Planning for Growth

Table of Contents
INTRODUCTION....................................................................................................................... 3
TASK 1....................................................................................................................................... 4
P1. Key considerations for evaluating the growth opportunities..............................................4
P2. Identification of growth opportunities by the use of Ansoff's growth matrix.....................5
M1........................................................................................................................................... 7
TASK 2....................................................................................................................................... 7
P3 Potential sources of funding and their advantages and disadvantages.................................7
M2........................................................................................................................................... 9
TASK 3....................................................................................................................................... 9
P4 Designing business plan for growth of organisation...........................................................9
lM3........................................................................................................................................ 11
TASK 4...................................................................................................................................... 11
P5. Exit and succession option for small business..................................................................11
M4 ........................................................................................................................................ 13
CONCLUSION.......................................................................................................................... 13
REFERENCES.......................................................................................................................... 14

lINTRODUCTION
Planning plays a significant role in the success and growth of business activities. It helps
in determination of the factors and preparation of policies as per market conditions. Adoption of
such policies contributes in the completion of task and accomplishment of objectives. Use of
digital technology in performance of their functions has a large impact on the development of
business operations and innovative ideas among employees. There is a large number of benefits
gained through planning which drive the functions of company towards growth. Clearly Drinks
Limited is a soft drink company which provides their products in the UK. Main aim of company
is to plan and implement digital technology for the growth of business operations (Barbour and
Deakin, 2012).
In the present report, growth opportunities available to organisation due to
implementation of digital technology, application of Ansoff's growth matrix, advantages and
disadvantages of potential sources of funding as well as development of business plan for the
growth of business operations and accomplishment of business objectives will be discussed.
lTASK 1
lP1. Key considerations for evaluating the growth opportunities
l Clearly Drinks Limited is a soft drink company which provides various drinks in the UK
market. Main aim of company is to expand business operations through innovation and
development of new drinks as per the preferences of customers. This helps in capturing the
market and attaining competitive advantage. Attraction of large number of customers towards
their drink helps in increasing their sales figure and profitability. Increased profitability provides
more funds that offer chances of planning for the growth of business operations in other regions
also. Objective of growth of company can be achieved with the help of planning regarding
different aspects like implementation of digital technology, sources of funding, factors present in
market, etc. So, planning provides opportunity regarding preparation of policies and procedures
which guide employees towards the achievement of their tasks. Implementation of digital
technology has a large contribution in the development of small business as it provides chances

of new product development as per preferences of customers and use of new marketing
strategies which expand their reach and development of innovation among employees. Thus,
they can perform their work effectively. The major growth opportunities are available in front of
Clearly Drink Limited due to implementation of digital technology as defined below:
 Competitive advantage: Management of company plans about implementation of
digital technology on the performance of functions of business. Every department got
some befit due to the use of advance technology. Production department has opportunity
to improve the quality of their drinks and innovate new flavours in their drinks which
matches with the taste of customers. Marketing department has an opportunity to adopt
modern tools of marketing like social media and internet which has a wide range in
market. Similarly, other departments like operational, human resources and employees
also attain the benefits of technology. All this development contributes in performing
better from other competitors companies and attain competitive advantage (Brinckmann,
Grichnik and Kapsa, 2010). Digital technology for Clearly Drinks Limited proves to be a
growth opportunity as with the help of it company become able to interact with its
customer directly which in turn also support them in handling the issues that customers
are facing from the services offered by company. This in turn help in increasing the
loyal customer which further contribute toward achievement of competitive advantage.
 New products and services: Implementation of digital technology helps in improving
the communication between employees and to make effective relation with their
customers. With the help of digital technology, Clearly Drinks Limited become able to
conduct market research much effectively as they can communicate with larger number
of customer at one time. This help in gathering larger number of data which make it
easier fro company to determine the need and want of customer so that product can be
improved and aligned as per the requirement of customers taste and preferences. In
addition to this it also provide a new platform for sales of their drinks is emerged, due to
use of technology is online ordering through their official websites. This contributes in
the growth and expansion of business through online platform.
 Collaboration: There are a large number of growth opportunities available in the form
of merger, joint venture, acquisition, strategic alliance, etc. This helps in joining the
hands with other company which is doing well in market and use their technology in

development of their drinks and accomplishment of their objectives. This is because
digital technology provide a medium where companies can integrate its operations with
others in order to provide high quality of services to its customers. This can also be
adopted by Clearly Drinks Limited as it help them in getting more effective services.
It has been evaluated from the above discussed opportunities that through
implementation of digital technology company can easily achieve competitive advantage at
market because when digital technology at workplace. Then it is easier for the divisions of
Clearly Drinks limited to understand their roles and responsibilities and with the help of digital
technology given task will easily accomplish in given time-frame. Whereas, through making
innovation in new products company will easily achieve tough competitiveness in marketplace
which is beneficial for their strong position.
lP2. Identification of growth opportunities by the use of Ansoff's growth matrix
There are various growth opportunities available in front of Clearly Drinks Limited by
implementation of digital technology in the business operations. They have the opportunities of
development of their products, market, diversification in their drinks, etc. There is huge role is
Illustration 1: Ansoff growth matrix, 2019

played by Ansoff's growth matrix in identification of the growth opportunities and application of
the different strategies which helps in development of different departments of company. The
major four areas which are covered in this matrix include market penetration, product
development, market development and diversification. This helps in overall all growth of
business activities in different areas. This helps in the achievement of desired results effectively.
So, four different options of Ansoff growth matrix are defined as below:
 Market penetration: This is an important growth strategy which is safer than other
strategies. This includes the process of selling their existing products in existing market
in which they are already do their business operations. The more focus is given on
increase their market share by adoption effective market strategies so, they can enhance
their customer value. Clearly Drinks Limited is a small company which provides their
drinks in the UK market. The main market penetration strategy adopted by them is to sell
their different kinds of soft drinks to their existing customers. They also decided to use
promotional tools for advertisement of their drinks so expand their reach and attract the
customers of their competitors. The best strategy which helps in capturing the market and
driven out their competitors is to use affordable pricing. This helps in satisfaction of the
needs of customers (Burton, 2010).
 Product development: Another strategy which helps in expansion of the business
operations in development of their existing products. This can be achieved by
organisation with helps in effective planning and use of advanced technology in their
production process and maintenance of relation with their customers to attain their
loyalty towards their brand. Management of Clearly Drinks Limited decided to
understand the preferences and tastes of customers and makes their new drinks which
suited to their demand and pocket. This also includes the replacement of their drink
which is not accepted by customers with the most popular one in market and offered by
competitors. This helps in capturing the customers of competitor firms also.
 Market development: This includes about the identification of their new market where
there is huge opportunity of development of their business operations. This helps in
capturing large market share. Clearly Drinks limited identifies the growth opportunities
in the form of development of new market where they are going to provide their drinks.
Use of online technology helps in entering into the new segment of market which has

wide range in attraction of the customers of different regions. This provides opportunity
make their competitors out of the market. In capturing new market management need to
focus on following points like:
1. Adoption of the affordable pricing policies and provides discount to students
2. Establishment of the new distribution channels. This includes about appointing suppliers
which effectively provide their drinks to end customers.
3. Divide the market into geographic and demographic segment. This helps in identification
of the preferences of customers of such market and satisfy their different demands.
 Diversification: This is the important strategy which helps in growing the business
activities and attains competitive advantage. This strategy is adopt by Clearly drinks
limited company to provide diversified drinks of different flavours which helps to satisfy
the demand of each segment of customers from children's to old age group. This also
includes the use of diversified techniques in production of their drinks which helps to
focus on the most profitable processes and adoption of the such process which is most
cost efficient (Chapin, 2012).
It has been identified from the above model of Ansoff that the management of Clearly
Drinks limited should conduct market research which is beneficial for them in identification of
customer's needs and market trends. With the help of conducted market research, products will
be made by firm as per the expectations of customers which leads the organisation towards
strengthening its customer base. For making good customer base within a small period,
management can adopt product development strategy through which good products as per the
demand of customer will be made by organisation which is beneficial for its brand image.
lM1
Analysis of the business environment has provides large number of opportunities of
growth to the management of company. PESTLE analysis helps in identification of the external
factors and their effects on the expansion plans and use of advance technology. The growth
opportunities provide by this analysis are define below:Political: This analysis provide political condition and taxation policies in UK. This helps in
identification of the profitability which can be derived by company through adoption of new
technology.

Economical: This analysis helps in identification of the best source of financing which has
large number of advantages.Technological: Technological analysis helps in identification the best latest technology used by
the competitors in market and their benefits.TASK 2P3 Potential sources of funding and their advantages and disadvantages
Clearly drinks Limited is small company which provides various kinds of drink. The
main objective of company is to expand their business operations and increase their profitability.
This can be achieved by the company only if digital technology is used in production, marketing,
operational promotion etc. There are large number of funds are required to finance their
functions and enhance the capability of their departments in deployment of their activities
effectively. So, funding plays the huge role in growth activities. There are large number of
sources are available in front of the management. These sources includes about bank loan, crowd
funding, peer to peer lending and venture finance. All these source have their own importance
and disadvantages in the process of funding. It is the duty of the management of company to
identify the best method of funding which is most suitable for their operations. Different sources
of funding which is used by company and their advantages and disadvantages are define below:
Bank loan: It is the effective method of sourcing the requirements of funding of
company. This method includes about taking the loan from bank at fixed rate of interest. This is
the easiest and simple method of arranging the funds for the business operations. There are large
number of benefits are provide by government on loan taken by small companies like interest
free loan, subsidy etc. This helps the Clearly Drinks limited company to drive maximum
benefits. There are large number of advantages and disadvantage of this method which are
define below:
Advantages: There are many advantages of bank loan taking by the management of
company which are mention below:It is the most simple and easiest source of funding the activities of business operation of small
business.Large number of benefits are provide by bank on taking the loans by company from expansion
of their business operations.

Interest rate on bank loans are very low in comparison to other sourcesThis is the most secure method which provide guarantee of loan and no discrepancy in between
providence (Christofakis and Papadaskalopoulos, 2011).
Disadvantages: There are many disadvantages of this source as compared to any other
sources. Such disadvantages are define below:Taking loans from banks required to follow strict regulations and have mortgage their
properties. This is not easy to follow such restrictions and if they missed have to face penalties
and legal actions.There is huge burden of repayment of the amount on actual time otherwise their mortgaged
property is disposed off in the Lew of such loan.
Crowd funding: It is also one of the important source through which Clearly Drinks
Limited raise finance for their business operations. This source includes about taking the funds
from large number of individuals of country. This method helps in attaining the focus of the
individuals on the activities of business operations and works as marketing tool also. Different
advantages and disadvantages of this method are define below:
Advantages: The advantages which are derived by cited company are define below:This is the best way to attain the reaction of the public on the expansion of the business
operations.This is also considered as valuable form of marketing and also helps in gaining the attention of
media.The terms of raising finance is not so strict and beneficial for company.
Disadvantages: The disadvantages which are faced by company are define below:This is the time consuming process to raise the fund from the large number of public
(Eddleston And et. al., 2013).It is also difficult for the company to manage the funds effectively and properly repay to publiclarge number of difficulties are faced related to taking the prior permission of their stake
holders etc.M2
There are many sources of funding which are used by the management of company in
providence of adequate funds to different departments. These different methods and their
benefits are define below:

Bank Loan: This includes raising finance from banks regarding funding of their expansion
plans. This is the most secured loan which cab be accessible by company.Crowd funding: This includes about raising the finance from public. This is time consuming
process and not allowed to change the objectives without permission of public.TASK 3P4 Designing business plan for growth of organisation
Business plan includes the process of preparation of plans in which the objectives and
mission of company is mentioned which is required to achieve by them through their future
course of actions. This includes about planning of the every function regarding operation,
production, marketing etc. This helps in accomplishment of their desired results.
Business plan of Clearly Drinks Limited regarding the expansion of business with the
implementation of digital technology is defined below:
Company Description
Clearly Drinks Limited is soft drink company which provides their products and services
in UK. The company is specialised in providence of innovative and leading sugar free drinks as
per the requirements of customers. They also provide bottles for many kinds of their soft drinks.
Mission: The mission of company is to grow the business operations and capture large
market share. The management also decided to plan about the future activities and implement
digital technology.
Strategic objectives: The main objective of Clearly Drinks Limited are define below:To implement digital technology for future growthCreation of innovation among the employeesDevelopment of new drink to attain competitive advantageStart online ordering facilities of their drink to increase their sales
Products and services
The main products which are provides by Clearly Drinks Limited are innovative and
sugar free soft drinks. The different drinks which are includes in their product includes about
Whisper juicy water, Perfectly clear kids, etc. They also design their unique bottles for their soft
drinks. So, diversification in their drinks and services helps in achievement of their desired
results (Grover, Bokalo and Greenway, 2014).

Internal analysis
This includes about the evaluation of the internal strength and weaknesses of company.
This analysis also helps in determination of the growth opportunities which are available to them
due to the use of new technology. Different strengths and opportunities are define below:
StrengthsEstablished in market and having good image between customersLarge distribution channels which helps in effective distribution of their drinksEffective competency to implement digital technology and drawing out benefits
OpportunitiesTo capture the market of competitorsTo Improve the quality of their drinksTo start their business operations online also to increase their sales figure
Target market
This includes about determination of the different segments of market through which
they can grow their business. Clearly Drinks Limited is decided to focus on online market
because it has wide range and cost efficient. They also decided to focus on the local market to
identify their needs and provide drinks as per their tastes. This helps in capture local market.
Financial information
This includes about providence of financial information about company. Clearly Drinks
Limited has good financial position in market have the capability of raising finance from
different sources. This helps proper allocation of the funds to the different departments and
provide training to their employees to effective use digital technology to accomplish their
targets. Large number of finance is required to effectively adopt digital technology in their
different operations. For this purpose, financial budget is prepared regarding cost is incurred in
the expansion activities. The budget is mentioned below:
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Production cost 5000 - -
Promotion cost 1000 700 500

Advertisements cost 500 550 600
Technology cost 1500 1700 1900
Catalogues 250 200 150
Total 8250 3150 315
From the above cash flow it has been identified that company have enough capital which
is needed for paying its overall liabilities and debts. Whereas cash reserves of company are
102203 in 2015, 200354, 238503 are for 2016 and 2017.