Crocus Limited: Analyzing Growth Opportunities and Planning

This report provides a comprehensive analysis of growth opportunities for Crocus Limited, an online nursery shop planning to expand with an offline retail store. It begins with an introduction to business planning and its importance for organizational success. The report then delves into key considerations for evaluating growth, including PESTLE analysis, Porter's Generic Competitive Strategies, and Porter's Five Forces model to assess the external and competitive environments. It examines the Ansoff Growth Matrix to identify suitable growth strategies like market penetration, market development, product development, and diversification. Furthermore, the report explores various funding sources available to support business expansion, including their advantages and disadvantages. Finally, it discusses the development of a business plan and outlines entry and exit strategies. The report emphasizes the importance of strategic planning, market analysis, and financial management in achieving sustainable business growth. The analysis includes the application of these models specifically to Crocus Limited, providing practical insights for their expansion plans.

GROWTH IN PLANNING

Table of Contents

Illustration Index
Illustration 1: PESTLE Analysis......................................................................................................6
Illustration 2: Porter's Generic Competitive Strategies....................................................................7
Illustration 3: Ansoff's Growth Matrix Model.................................................................................9
Illustration 4: Different Funding Sources......................................................................................13
Illustration 5: Steps in Business Plan.............................................................................................18
Illustration 6: Exit or succession Strategies...................................................................................19

INTRODUCTION
Planning is a process of various activities which is required by an organization to achieve
their desired goals. It also involves the creation and maintenance of a strategic plan which
requires conceptual skills of their employees working there. In each field, there are different
types of plans which can help company to achieve their results efficiently and in the most
effective way. It is one of the most important projects and time management techniques in the
firm. This is a technique of preparing a sequence of processes to get a specific goal. It helps as a
guide for organizing, staffing, directing and controlling employees and management of
organization. Therefore, it is the basic or fundamental function of management system.
Effective planning will provide support in managing risk element, instability in business and
ensure the development of strong team within enterprise and creation of competitive business-
plan environment for managers.
It is a great tool which can be used by them for expanding any business. This report will
discuss key analysis for growth opportunities for an organization. It will also focus on various
methods of funding available and will analyze its benefits and drawbacks with developing a
business plan for firm which can help organization to increase its sales and services in the target
industry.
Present study is based on analysis and identification of opportunities to attain growth for a
business enterprise.
Also, emphasize upon the different methods of getting financial resources that helps the
organization to raise its sales and services in target sector. Ar last, various entry and exits
strategies required and appropriate for business is discussed in this report.
LO 1
P1 Key considerations for evaluating growth opportunities for the organization
Crocus Limited analyzed as international company which is an online shop of nursery
which deals in selling of flowers, tools of gardening and stuff in accordance with nursery such as
solid pots etc. It is located in Windless, Surrey in the United Kingdom. Crocus is small business
in which approx. 80 employees are working. Now, the owner is planning to expand the business
and introduce an offline retail shop for their customers. For Crocus Limited, it is very important
to maintain a competitive environment for their employees to make them work more effectively

as it will help them in the expansion of their business in market. For growth of any business, they
should consider the key aspects such as their resources and capabilities and core competencies of
their organization (Bridge, and Dodds, 2018).
There are so many strategies available in the market which Crocus Limited can apply to
evaluate their overall strengths and opportunities that are present in the business.
It provides support in their business expansion in selected industry. Porter's Five Force model
that can be utilized for analysing the bargaining power of customers and suppliers along with
recognition of competition within business. In contrast to this, PESTLE analysis provide support
in evaluation of various external factors such as political regulation, economic conditions, social
perception, technology advancement, legal regulation and ecological influence.
Both the methods are very useful for Crocus Limited in expanding their business in the market.
 External Environment Analysis of Crocus Limited : This method is appropriate and
benefits for company to analyze different element which can be highly critical for them
and can have a great impact on their organizational functions. So, they have to follow
these factors for working effectively within market. Crocus Limited Organization
delivers services associated with plants and nursery; It is significant for enterprise to
recognise the components which can affect them while introducing their offline shops in
market (Brinckmann, and Kim, 2015).
Political Factors  It is essential for them to analyze all laws and legislation
which are required for them to open a store in the market.
 For example, proper licensing of the shop.
Economic Factors  Economic inflation can posses high influence upon company's
sales revenues.
 Recession is also a factor which can affects them a lot.
Social Factors:  It involves conduct of their customers like their needs and
preferences from Crocus Limited.
 It will help them in providing services according to them.
Technological Factors  This is essential for enterprise to utilize the new technology

for production of goods which helps in improvement of
quality and increasing sales in market.
Legal Factors  Various key legislation like employment act, health and
safety act and other provisions that comply needs to comply
for smooth regulation of business.
 For example, labor law to maintain the rights of all their
employees.
Environmental Factors  They should maintain the safety of their environment as they
are working as in the same field.
Illustration 1: PESTLE Analysis
Source : (PESTLE Analysis with Mind Map Tools, 2017)

 Porter's Generic Competitive Strategies : This method helps the organization to
analyze the competition in the market. It can help them to plan their strategies which can
be used by Crocus to expand their business and helps to open their store in the market.
This process contains fore different strategies in it, which is explained below,
1. Cost Leadership : This process helps Crocus limited to attract their customers to buy
their products. This process involves in planning their operating costs to offer lower
prices than their competitors present in the market. Bu implementing this method theu
can earn a good profit and revenue as well.
2. Differentiation : This method can help the company to become unique in its industry by
providing some new and innovative products for their customers. This will ensure to
improve their quality and increases their number of customers.
3. Cost Focus : This method helps the Crocus Limited to focus on their pricing strategies
which is to offer low prices as compared to their competitors.
4. Differentiation Focus : In this process, company focuses on different markets to deliver
their products. Their product or service should have some unique feature which can
attract their customers. This strategy often involves strong brand loyalty among
consumers.

For Crocus Limited as they are small business which is planning to expand their business
by opening an offline store, they chose cost leadership strategy to implement in their system as it
will be more effective for them to get better result and earn good revenue.
 Importance of Porter's Generic Competitive Strategies : For Crocus Limited, this
model can be used to realize their own capabilities. Company can implement this in its
system of management for making its business policy competent for establishing new
stores in the market and assist to maximize ample of profits within industry. It might be
an effective tool for utilization in internationalization of business because it assists the
enterprise to recognize the factors which influence its profitability and might be used to
formulate decision for organization.
1. Porter's Five Force Model : It is a tool for analyzing competition of a business in the
market. This model is based on five forces that assist to discuss their contending
surroundings of selected market. This model assist an organization to determine their
actual position in a enterprise. For Crocus Limited, it is very important to study the
market properly before setting up their new stores. This method helps to understand all
Illustration 2: Porter's Generic Competitive Strategies
Source : (Porter's Generic Strategies, 2017)

realizable schemes that they can utilize in the upcoming business. For illustration: Crocus
Limited company's owner is making plan to explore its business in the UK by introducing
their offline shops for their customers (Feys, and Probert, 2015).
Managers and other authorities tends to explore this mode for analyzing whether its new
products or services for consumer are potentially profitability or not. Successfully operating in
online will help the owner to gain popularity in people. Through analysis of overall situation, it
might be utilized for identification of its key capabilities that may assist the organization in
improvement of weaknesses and avoiding discrepancies in the future.
1. Supplier power: It is the force that reflects influence of suppliers working in this
sector. For Crocus enterprise, Suppliers power is high as they need to attain quality of
raw material for manufacturing of products for customers. It has a wide influence on
sales and profits as suppliers can demand high prices which tends to raise the cost of
enterprise. This tends to influence the price and sales of products.
2. Buyer power: This component of porter's model implies to the bargaining power of
consumers. In this, buyer has ability to buy products at own selected prices
therefore their bargaining power is high(Grant, 2016).
3. Competitive rivalry: This is essential for the establishment to realize their rivals who
are already existing within marketplace. Further, when there large more number of
rivals in the industry, it will be difficult for them to compete as they are already stable in
that industry.
4. Threat of substitutes: Competitive substitutes that might be utilized against
organization's existing products and services will provide a threat on enterprise. For
instance: if Crocus Limited is supplying products which are already present or available
in the market, it will affect their overall sale.
5. Threat of new entrants: It is a fundamental component that influence functions of
company's business in industry. New market entries will tend to influence profitability

rate in market but they will have low influence in comparison to other rivals.
P2 Evaluating Opportunities for growth of the Organization
Ansoff Growth Matrix is a model which is used to analyze the possible growth strategies
for the organization. This model is essential to identify growth opportunities for the organization
in the targeted industry. This model is introduced by researcher for determining strategies that
organization can undertake to sustain its position or expansion of business operations.
Illustration 3: Ansoff's Growth Matrix Model
Source : (Marketing Theories - Explaining The Ansoff Matrix, 2016)

The result from the Ansoff matrix model is a series of growth strategies which
The results of this model are the series of strategies for growth that can be utilized by the
administration to set path for its business policies(Johnson, 2016). Ansoff growth matrix has
four key factors present in it, which are as follows,
2. Market penetration : For Crocus Limited it is very important to study the market very
carefully. This strategy usually focuses on increasing the volume of sales of existing
products of the organization in the market.
3. Market development : This strategy mainly focuses on targeting a new market with
existing products in the organization. This component is utilized for enhancing the
growth in which business may sell its existing goods within new markets. This will
eventually increase their customer rate. And for Crocus Limited, it is very useful as they
are already a popular brand name.
4. Product development : This factor focuses on reaching the existing market with their
new products in company, for example, they can provide some mew items or products in
the stores like, seeds, composts, etc. This can be very beneficial for them to implement.
5. Diversification: It is framework of launching new goods and services in other market
which involves high risk and investments.
By implementing all these factors and investigation into their system, it will get casual
for Crocus Limited Company to establish their mew stores with success in the market (Marketing
Theories - Explaining The Ansoff Matrix, 2016).
Among all, Crocus uses market development strategy for expanding their business. As
company wants to expand their business and bring an offline store for their customers so, it will
prefer market development strategy as this will help them to set their business in the existing
market which can ensure to increase their sale and to maintain a long term relationship with their
customers. It will also be helpful for them to sell their products in market.
LO 2
P3 Assessing Potential Sources of Funding available to the Organization
It is significant for organization to have financial assistance for fulfillment of overall
needs within the business which is required for globalization of business across the countries.
Funds can be obtained by organization through various sources which are existing in the
industry. Funding is analyzed as framework that is utilized by business to achieve financial

support. It assists in getting monetary support usually in the form of equipment, money and other
essential values. There might be different ways or methods in which funding can be done by
enterprise to fulfill their needs. For instance. Bank or Business Loans : Further, Bank loans is widely utilized source of getting funds
for establishment and regulation of small business. It is a great concept to identify best
bank can give loans very easily.
 Advantages :Loans can be flexible for organization as it involves settlement through
payment in installment. It tends to reduce burden of tax rates on organization.
 Dis-advantages : Needs to pay high amount of interest which create burden on company
to repay the amount of installment (Kerzner, and Kerzner, 2017).
6. Angel Investors : Angel investors those people who are interested in helping small
businesses to grow in the market. Their main aim is to focus on economic returns. These
investors assist in getting finance at initial stages for business in the form of investments.
This can be a great method for the Crocus Limited company to start their business offline.
 Advantages : It enables the enterprise to launch its new business offline along with its
existing business operations
 Dis-advantages : Angel investors usually have high profile and it is difficult for
organisation to identify or contact them. Organisation can be forced to provide a part of
its ownership in business against investments.
7. Crowdfunding : Crowdfunding is the process of funding money for a business or
venture or any business by sourcing less part of capital from people, usually via internet.
 Advantage It is appropriate method to test reaction of public to create idea when people
are keen to make investments- when the people desire to make investment, then it is
effective idea which could work in market.
 Dis-advantage :This main demerit of crowdfunding is that not every individual will
possess enough money to make investment in business (Crowdfunding, 2014).
8. Personal Investment : This is the initial step in the funding process which starts by
ourselves only. In this, employers can raise funds either from personal savings or sales of