Merchant & Mills: Growth Strategies, Funding, and Exit Alternatives

This report provides a comprehensive analysis of growth strategies for Merchant & Mills, a UK-based clothing business. It includes a PESTEL analysis to evaluate external factors, Porter's generic strategies for competitive advantage, and the Ansoff Matrix for growth planning. The report explores various funding sources available to the business, weighing their merits and demerits, and suggests a business plan with financial information and strategic objectives for expansion. Furthermore, it examines exit and succession alternatives for the small business, comparing their benefits and disadvantages. The analysis aims to provide a detailed roadmap for Merchant & Mills to achieve sustainable growth and secure investment, while also considering long-term succession options.

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
The evaluation of with adequate Fairness of Growth availability...........................................3
The analysis of growth with the Matrix by Ansoff....................................................................5
Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context................................7
What potential sources of fundings are available for busineses and how they
[e-mail] businesses to grow alon with their merits and demerits...........7
Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context. ...........................................................10
Suggestive Business Plan for Merchant & Mills including its Financial information and
Strategic Objectives to expand the business.............................................................................10
Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving
objectives..................................................................................................................................12
Measure the exit or succession alternatives for a small business along with explaining the
benefits and disadvantage of each alternatives.........................................................................12
Comparative Appraisal of suggested Exit or Successive option.............................................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

INTRODUCTION
Company's goals and objectives are presented in an organised statement known as Bus\
inesses growth. For further growth too it contains the objectives on which constitute the vision of
the company and all the operations which the company has to perform. To define the new
version and create proper growth plan of vision its vision, Companies work on their expansion
and scaling. The company has to analyse the possible chances present in the market for the
growth. This work will provide details about growth and development preparation of Merchant
and Mills( Britain based medium enterprise that sells clothes) by mentioning its analysis as per
that of PESTE, appropriate planning with the generic analysis founded by Poster and growing
Analytic thinking model of Ansoff. The company expansion and succession choices as are
available with the business is also provided under this report.
TASK
The evaluation of with adequate Fairness of Growth availability
PESTEL'S Analysis
It's the structure for analysing the effects of external business over the business along
with its bare detailing. This includes assessing six factors that impact your business. H. Political,
economic, social, technical, environmental and legal factors that make up a company's outer or
broader environment. This analysis of Merchant and Mills is provided below.
 Political Factors:
Causes such as governing policy, worldwide trade policy, and other external regulation
are classified as political factors. Due to the national blockade, the UK fashion industry is
suffering severely in terms of sustainability, and most of the fabric and other essential garment
imports from the UK come from Europe. After Brexit, I faced trade-related challenges. They also
encountered other trade and business related restraint because of Brexit and the current blockade.
 Economic Factors:
These factors include a country's economic situation, such as people's disposable income,
interest rates, and exchange rates. In the UK, manufacturing clothing is expensive. However,
Merchant and Mills can work on reducing the cost of production by diverting its business
in the countries where cost is comparatively low like India and others. Clothing is the preference
of customers and other social factors too shall be considered by it for competitive advantage.

Clothing, clothing store locations, and fashion trends are categorized as social factors. Merchant
and Mills needed to increase the number of fabric stores at home and abroad to expand its
customer base.
 Technical Factors:
Related to the innovation in the manufacturing techniques as well as commercialization
in manner of production in e-commerce. Textile shops also electronically present the goods as
the fashion trends exist. Merchant and Mills has a web hut with buttons, scissors and other tools
needed to make the dough. We need to utilize advanced technology to improve quick delivery.
Other factors are economic and legal factors.
Generic strategies of Porter
Three strategies are offered by this model and were introduced in order to get competition
benefits. The three strategies are Cost leading Strategy, Distinction Strategy and Focus Scheme.
With reference to Merchant and Mills they are following:
 Cost Leadership Strategy: this should be used t keep the prices low in order to sustain
in market. Mark's & Spensor can achieve economical benefits by pursuing the business in
cost effective manner to gain the dominance in the market and spread of the business
with visible growth.
 Differentiation Scheme : It focuses on adding specific characteristics to various
commodities and charge the prices which are adequate for the distinction of the goods. It
requires a extremely skilled and determined sales team for the improvement of the
product. To say, in case Merchant and Mills wishes the spreading out of its production
line by discovering new product like other qualities sweaters, cardigans and others as per
the neds of the season.
 Strategies to focus : The focus here is narrowed and the planning can be divided in to
heads namely Strategies focusing on cost and strategies which focus on the differentiation
of cost. To say, Merchant and Mills may be centring either on expansion the other items
like kitchenware or the footwear business. Spreading out the clothing enterprise is more
economic and has more chances for growth.
Merchant and Mills is a UK based clothing business , so it aimed to expand its business by
expanding its domestic customer base. Fabric making is very expensive in the UK, so you need
to adopt cheap manufacturing methods and patterns. Therefore, it is advisable to adopt a cost

leadership strategy while calculating the average price and gaining economic and competitive
advantage. Since it is intended to export products, it will attract more foreign capital to low-cost
manufacturing companies and improve the gains and market sharing of the firm.
The analysis of growth with the Matrix by Ansoff
The above Matrix became advanced with the aid of using Igor Ansoff. It is a enterprise
enlargement technique this is used for making plans the enterprise increase techniques. It gives 4
techniques to the enterprise to sell increase. Company can amplify its enterprise with the aid of
using adopting suitable approach in keeping with its product increase or marketplace increase i.e.
marketplace percentage. Merchant and Mills can undertake one of the following marketplace
increase techniques to amplify the size of its enterprise :

Market Penetration :
This approach has the bottom threat as organizations following this approach growth the
sale in their contemporary merchandise within side the present marketplace to growth its
marketplace percentage. Merchant and Mills currently is running on a small scale in UK
marketplace. Also it is currently imparting its merchandise in England however can work along
the United Kingdom marketplace with the aid of using undertaking marketing and marketing
campaigns at extraordinary places and must decorate its distribution community to growth clients
in addition to marketplace percentage in UK. Other than the web clothing store, it must provide
its material and other sewing styles online.
Development of Market :
Here the agency will be giving the present merchandise in a new marketplace. Market
improvement may be finished in a home marketplace in addition to overseas marketplace.
Merchant and Mills want to have improve era to provide all the new products in the market with
broader innovation base. Necessitating the large capital existing in overseas markets so that the
miles higher to first amplify the enterprise regionally.
Product improvement :
When an agency start supplying new commodities in the present marketplace, This calls
for studies & improvement related to recent merchandise has ability to be released in present
marketplace to introduce huge variety in the manufacturing products and a huge clients for
increasing the enterprise of the agency. Merchant and mills should now supply various winter
wears including other leather made products with its contemporary winter wear services however
should put money into studies and improvement to stand the opposition to be able to require
excessive investments and greater budget and it's miles a small enterprise that can not come up
with the money for huge investments with restrained marketplace percentage.
Diversification :
It is a maximum unstable approach as new merchandise are added with the aid of using
the agency in a brand new marketplace to diversify its product line globally. A agency desires to
expand its product in addition to marketplace to observe this approach. If Mark's & Spensor
need to have wide varieties of its product, it could present conventional fabric in Indian markets

in keeping with alternative of choices to clients there. It being a small enterprise must now no
longer be able to undertake this kind of riskiest approach.
Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organizational context.
Merchant and Mills is the company which sells different types of clothes which used great
fabrics in their products. They brings new product with the current trends. There are various
types of advantages for the Merchant and Mills in the market such as used great quality of
fabrics- The best competitive advantage of the Merchant and Mills is their fabric (Yeniaras,
Kaya and Dayan, 2020) . The fabric they used in the their product are comfortable to wear . And
provide great packaging to the products with the effective cost.
Franchising- It is the concept of marketing which may be opted by the Merchant and
Mills for business expansion. For implementation the license is given to some other businesses
and in return they will get the royalty fees.
Partnership- It is formal agreement by the 2 or more parties for managing and operating
the businesses and share income. Merchant and Mills can use this by partnering with other
people and share profits with them.
Opportunities for innovation, new products and services- Goods innovation improves the
physical appearance and operational of goods. Merchant and Mills can launch new goods in the
business. It will enhance the process for increasing the productivity and efficiency. It will
enable them in business in extending the range of existent products.
What potential sources of funding are available for business and how they
[e-mail] businesses to grow along with their merits and
demerits.
Business Organizations in certain period requires funding or capital with the view to
expand their businesses. As Merchant and mills is looking forward to introduce its new
product with the hope to make successful in the markets oh the UK therefore it requires
to raise a capital from appropriate potential sources by which it makes for its
introduction and promotion of its product) (Palmer, Oswal and Koris, 2021) . Like
Merchant and Mills there are other big business corporation which requires the

[e-mail] for its expansion in the existing business. Therefore
each business organization source in order to expand their business finds a
[e-mail] Business expansion needed additional funding to
establish new markets in different locations. It takes serious research and development
and for this huge capital is required. It is always favorable to the companies to seek
funding from external lenders instead from the profits of the company. There are
thousands of companies across the world running various industry in various sectors.
All this companies requires funding and there are several sources of funding which the
companies seek in order to expand its business. The following are the sources which
Merchants and Mills Company can raise the funds for their business expansion.
Loans: loans are the most recognized form of raising money from banks or other
financial institutions. Bank provides range of varieties of loans to all types of business
establishment to accelerate growth in their business.
Merits:
 availability of big sums for long term,
 there is no fixed time period for paying back.
 The interest rate is also low.
Disadvantage :
 Collateral is prerequisite ,
 interest is charged.
Equity Capital: the other option is available to the company by transferring the complete
ownership to the creditors by way shares.
Advantages:
 no repayment
 there is no need of a good credit.
Disadvantage:
 there is a high chance of dilution in ownership
 there is sharing of profit among investors
 no tax benefits

Debt Capital: debt capital is a mode by which company can raise money. It allows a
wide number of investors to become creditors of the company.
Advantages:
 Helps in boosting credit score
 there is no need to share profit
Disadvantages:
 companies are legally bound to repay lenders.
 failure to repay may lead to default or bankruptcy.
Bank Overdraft: funds avail for short period term as a credit loan made available by
banks to its exiting account subscribers. It allows the businesses to pull more amount than their
existing balance. Interest is charged on overdrawn .
Advantages:
 no condition for placing security for a bank overdraft
 simple and speedy process to arrange
 interest is only charged in case if overdrawn
Disadvantages:
 there is a limit to withdrawal
 Only for short term period funding.
Venture Capitalist:it is a finance system provided for an equity stake in a high growth
company,venture capitalist often invest in innovative projects and technologies) (Das, 2018. If
there is a big tech giant company which needs funding for its research and development than
venture capital is the good option.
Lease: Here, the company who leases purchase the asset on behalf of the business and
the said asset is then forwarded to the business for its usage. The business obliged to give the
rent throughout the leasing period.
Advantages:
 the borrowed sum required to be paid in full.
 There is fixed determination of the total cost and the lease period.

 It is easy to obtain.
Disadvantages:
 the ownership remains with the lessor
 there is no option of lease termination at lessee's will.
Evaluate potential sources of funding and justification for the adoption of an
appropriate source of funding for a given organisational context.
Funding is the most important aspect of the business as it sets the organization success. The
funding establish as per the type of business work , there are many types of business funding
such as personal funding, business loans, taking loans from the family and friends , taking
investment from the stakeholders and the venture capital. All these types of the funding have
different types of advantage and disadvantage(Young, Rosenstiel and Henderson, 2020. For the
Merchant and Mills banking loans is the best option of funding as it is secure and have less
interest rates for small and medium enterprises.
Suggestive Business Plan for Merchant & Mills including its Financial information and
Strategic Objectives to expand the business
For every new market development there is always needs a appropriate as well as a
strategic business plan for relation to Merchant & Mills. Which are as follows:-
Summary
Merchant & Mills is seeking to enter the London and UK markets with existing
products in order to expand its business and increase its domestic market share. To gain a
competitive advantage, you need to develop an effective business growth plan.(Solimun, and
Fernandes, 2018.)
They need to examine the macro environment and determine possibility to evolve market
expansion strategies. The market development requires investment in infrastructure and various
promotional activities that require funding, and the arrangement for same can be made through
procurement of venture capital by the company.
Vision

Enlargement of a Business by creation of huge share market in the United kingdom's
market through acquiring competitory rewards.(Lim.2021)
Mission
As technology advances, they will expand their client base in the UK market by a
growing market modification scheme through increase in the number of clothing and Harbor
dasher stores in the UK and London markets.
Strategy
Merchant & Mills need to adopt cost leadership and market development strategies in
order to gain a competitive advantage and increase market share. With low cost materials and
effective sewing and manufacturing methods, you can make more profits and become a cost
leader compared to your competitors. (Das,and.et.el.,2020)By expanding our fabric business in
the London and UK markets, we will be able to expand domestically with new customer
segments.
Marketing Mix Strategy
This is a mixture of various components that helps a company build a customer
base by accelerating the demand for products across the London market (Liang and et al., 2022).
Below is Merchant & Mills' with the marketing concoction strategy after entering a new market.
 Product Strategy : The Merchant & Mills has underway products. That is Fabrics
which are linen, woollen, oilskin and the sewing structure have entered new
haberdashery markets London and the United Kingdom.
 Pricing Strategy: Merchant & Mills employs cost leadership and their pricing strategies
to increase a competitive benefit to the company & also benefiting business. Apply low-
cost manufacturing methods to achieve a cost advantage over your product.
 Distribution Strategy: As the company enters new markets and geographic locations
with diverse customers, (Antunes,and.et.el.,2021)it will create a strong new customer
base enabled by various distribution channels and their networking zones many supply
chains to reach the needs and orientation of new customers. Need to build.