Analyzing Missguided's Growth, Funding, and Exit Strategy Options

This report assesses growth opportunities for Missguided, a successful retail organization, focusing on expansion strategies and their pros and cons. It applies the Ansoff Matrix to evaluate growth options, considering market penetration, product development, market development, and diversification. The report also explores funding sources for SMEs, including bank loans, debentures, angel investors, and crowdfunding, detailing their benefits and drawbacks. Furthermore, it examines exit options such as liquidation, acquisition, merger, and IPO, highlighting their respective merits and demerits. A business plan is included, covering an executive summary, company summary, product description, market analysis using SWOT and PESTLE, and marketing strategies like STP and the marketing mix, along with financial forecasting and monitoring and controlling measures.

Unit 42 assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explaining the growth opportunities with its pros & cons..........................................................1
Defining framework of Ansoff matrix with its advantages and disadvantages.........................2
Explaining source of funding options available for specified organization by describing its
benefits and drawback.................................................................................................................3
Defining exit options available for the enterprise with its merits and demerits..........................4
Providing business plan...............................................................................................................5
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Growth is one of the significant objective of the organization which is required to be
accomplished by enterprise in order to gain success. In the current era, gaining growth &
development is difficult due to the prevailing level of the competition. The current study is
based on Miss guided which is considered to be one of the successful organization in the retail
sector. The current report will pay attention on assessing the growth opportunities when
expanding along with pros and cons. Ansoff matrix will be applied by referring growth
opportunities via involving pros and cons. Possible source of funding or SME via explaining its
benefits and drawbacks. The option of exiting the market will be involved in the current study
through paying attention on its advantages and drawbacks. It will include business plan to get
depth understanding.
MAIN BODY
Explaining the growth opportunities with its pros & cons
Miss guided is one of the organization that offers the clothing in the retail sector by
targeting women. There are different kinds of the opportunities available for the organization to
enhance its productivity and suitability in the sector. This can be identified by evaluating the
different aspects so that deeper information can be obtained.
Strengths
Good availability of talented employees,
effective communication and managements
strategy and significant level of supply chain
network (Benzaghta and et.al., 20210.
Weaknesses
Lack of financial management and marketing
techniques that is hampering its performance
Opportunities
there are various aspects which can offer the
firm to gain distinct level of growth which
involves having appropriate expansion of
product range, diversification of targeted
audience, more opening of physical store,
partnering with other brands, etc.
Threats
Higher level of competition and strict
international rules and regulation compliance
can impact firm's growth & development
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There are distinct form of the opportunities which is helpful for the company to conduct
expansion practices that offers firm to get the relevant ability to achieve pros and cons which are
as follows
 Product range expansion is one of the opportunity that can be achieved by enterprise for
having significant ability to gain growth (Cheng nd et.al., 2021). It can target men
category as well which can permit it to attain pros like higher market share, greater
profitability, sustainability and competitive edge. This can serve disadvantage like short
of cash, increased h capital requirements, less control and comprise in productivity and
quality.
 Customer diversification via entering into the distinct market that can become possible
having the effective expansion to generate greater amount of revenue and profitability.
This can be exerted via offering children related products. This can increase its
opportunity to mitigate risk of loss, exposing more return, safeguarding adverse market
cycle and reducing volatility performance.
 More opening of physical store can provide the assistance in gaining the ability to
growth via connecting with people in traditional manner (Birnbaum and De Wispelaere,
2021). This can allow to the firm to get the significant level of benefits such as having
more personal connection with customers, inclined ability to influence, getting accurate
response of innovation, greater satisfaction to buyers, etc. on the other side, drawbacks
are having greater amount of cost, no proper scheduling, etc.
 It is performing effectively in the retail sector that can allow it to grab the opportunity of
partnering with the international companies so that better productiveness and ability to
cover higher competitive edge can become possible. This can serve disadvantage like
interference, ineffective decision-making, etc.
Defining framework of Ansoff matrix with its advantages and disadvantages
It concerned with the expansion grid h that offers four strategies for gaining growth. It
as well provides assistance in evaluating the risk associated with each strategy (The Ansoff
Model, 2022). The four strategy comprises having market presentation, product development,
market development and diversification. These all strategy has few pros and cons which
hampers the growth & development of firm in both positive and negative manner.
Market Penetration
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This is related with having inclination of the sales of existing products into the similar
market. This can be exerted by reducing prices to attract customers, increasing promotion and
distribution efforts and acquiring competition in the same market. The advantages which can be
achieved by the specified organization includes better market share, reduce competition, greater
customers' satisfaction, etc. the lacking areas are low profitability, etc. These option is suitable
for gaining growth as it operates on e-commerce channel that can aid in reducing cost and
inclining profitability with maintaining penetration price.
Product development
It is one of the significant strategy that is related with developing new product for
catering exiting market. There are usually all types of the products for women are offered by the
mentioned company. This is executed by investing in R&D, acquiring competitor's products,
formulating partnership strategy, etc. this can offer benefits like increasing more revenue,
having customer retention capacity, meeting innovation aspects, etc. there are few limitations
such as threat of failure, higher cost involvement, etc.
Market Development
this sis associated with having the ability to entering the new market with the exiting products.
This is implemented by catering to distinct customer segment, entering into new domestic and
foreign market. This offers benefits likes improve quality of products, building organizational
resilience, promoting leads and sales, etc. On the contrast to this, it involves having higher risk,
impact on performance of firm, etc. that makes it unsuitable for the specified firm.
Diversification
It pay attention on developing the new products for the distinct market. This is
considered to be one of the riskiest strategy that can affect organization in longer term. This
involves related and unrelated diversification which can provide the business to achieve benefits
and drawbacks. It can conducted related diversification that involves offering clothing products
to men & children segment.
Explaining source of funding options available for specified organization by describing its
benefits and drawback
There are various kinds of the option available for the small and medium sector firms
that permits achieving higher level of ability to coordinate with the prevailing requirements. The
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methods that are available for the enterprise involves bank loans, debenture, angel investor and
crowdfunding which possess the certain benefits and the drawbacks which are as follows
Bank Loan
It is one of the significant option that allows the SME to get amount of money for set period
within an agreed repayment schedule (Stead and Hastings, 2018). Miss guided can achieve the
distinct level of the pros that can boost the ability of organization to meet its objective of
successful operation in sector. This involves borrowing larger amount of fund, paying back in
installment, fixed expense, no impact on credibility, etc. on the contrast to this, drawbacks
included smaller firm risk, high interest risk, etc.
Debenture
This is related with having market security issued by business raise money for long term
activities. This offers benefits such as having lesser risk, less time, not permanent solution, etc.
On the others side, it can be interpreted that organization can face drawbacks such as payment of
interest & principle can become burden, limited level of borrowing, etc.
Angel investor
This is related with having high net worth individuals how can provide financial
resources to the company in respect to carry forward their operational practices in exchange for
equity in the company. This gives benefits like having credibility from investors, contact with
potential customers, contacting and having reliable market knowledge and strategies. In against
to this, it can be specified that This has few limitations that includes loss of control, inability to
take significant decision, disruption in processing smooth functioning.
crowdfunding
it is way to raise money from m larger number of investors in order to accomplish
organization goal of having financing. This can provide advantages such as easier to access, less
pressure on management, possibilities of expertise, etc. It can lead to get certain limitations that
involves inflexibility, high risk of failure and threat of fraud, etc that can negatively impact firm.
Defining exit options available for the enterprise with its merits and demerits
In order to exit the market the specified organization can pay attention on adopting the various
method such as liquidation, acquisition, merger and IPO (How to Create an Exit Strategy for
Your Small Business, 2022). There are availability of the benefits and demerits which can be
attained by enterprise that are as follows:
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Liquidation
In this business sells it's all assets in order to generate the liquidity and paying off to the
investors and creditors this is highly utilized method in the SME sector due to availability of the
benefits like no debts after liquidation, absence of legal actions, relative low cots, etc. On the
other side, demerits comprises loss of future opportunities, spoiled market image and sense of
failure.
Merger
It involves combining of two businesses into one so that increase value can be offered to
investors is done by having horizontal vertical, conglomerate, market and product extension.
The advantages includes having increase market share, educing cost of operations, avoids
replication, expanding business into new geographical area bad preventing closure of
unprofitable business. This can serve limitations like gaps in communication, raising price of
products, etc that can hamper accomplishing of objective.
Acquisition
In this one company buys another that is highly taken into practice for exiting market.
There are various merits that comprises ability to fill in n critical service gaps, efficient method
of needed assets, opportunity to create leverage, reducing cost, etc (Radhika and Bhuvaneshwari,
2022). In the against to this, it gives drawbacks like clash of different culture, reducing
differentiation, become distraction, quality comprise, etc which can negative influence
functioning of firm.
IPO
it is related with selling the stock of the company that can be basically done by SME as well to
receive distinct levels of benefits that includes fundraising. Having publicity & credibility,
reducing overall cots, etc. IPO can affect the fir adversely that comprises potential control loss,
additional regulatory requirements and burden payment to inventors ,
Providing business plan
Executives summary
Growth can be achieved by taking crucial actions such as offering new products and
targeting distinct audience. The current study is based on Miss guided which operate sin retail
sector. It has conducted evaluation of firm's position via SWOT, PESTLE and competitors
analysis. Current report has implemented strategy like STP and marketing mix so that targeting
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customer can become possible. It has pad attention on financial forecasting, management
summary and monitoring & controlling via variance analysis, etc so that better outcome scan be
achieved.
Company Summary
Miss guided is one of the successful organization that operates as online retail sector
for targeting women as its customers. The current business plan is based on offering the clothing
products to the men category via offering all product such as shirts, shorts, pants, t shirt and
trousers. It will pay attention on opening physical stores and emerging on online platform to in
the domestic market.
Products description
The set of the products which will be offered by the organization to it customers involves
pants, t shirt and trousers, shorts and shirts. The crucial features which will be involved in the
preferred products involve shaving higher quality, compliance with prevailing trends,
competitive pricing, customization, etc. These products will help firm to gain competitive edge
in market o via covering greater attention on specified targeted audience.
Market Analysis Summary
SWOT analysis
Strengths
 Skilled labor force, good information
sharing and distribution method.
Weaknesses
 Ineffective marketing & financial
management
Opportunities
 Greater possibilities of sales revenue
increase, market share, etc
Threats
 higher level of competition
PESTLE evaluation
Political factors Political stability, trade relation, tax regulations, etc can
impact specified firm in negative manner so that
relevant course of action should be adopted.
Economic factors Miss guided can get affected positively by GDP,
saving, disposal, interest rate prevailing in the market
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firm is keeping competitive pricing so that positively
get affected (Magalhães, 2021).
Social factors Changing trend in the market, consumer attitude, belief
and culture, etc can positive affect the specified
enterprise as it is highly giving emphasis on having
significant compliance with requirement of customers.
Technological factors Emergence of digital technology and having relevant
technological up gradation to offer good customer
service is adopted by enterprise (Nandonde, 2019).
Legal factors Industrial rules and regulation, government legislation.,
etc compliance to operate successfully in industry
obtained by Miss guided enterprise.
Environment factors There are distinct environmental factors such as
access to resource, reduce carbon foot print and decline
pollution, etc which can favorably affect firm.
Competitors analysis
Miss guided ASOS
Pricing strategy For selling this new product
competitive pricing strategy
will be used
Affordable pricing strategy
Operating Area Domestic market International market
USPs Good quality with specific
product range
Wide range of branded goods
at different price point
Strategy and Implementation
STP
Segmentation It can be exerted by paying attention on geographical,
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behavioral, demo graphical and psychological. Miss guided
will conduct the customer segmentation on the basis of
demographic and behavioral basis.
Targeting To target men category for offering clothing products the
company will use the targeting strategy in turn higher
knowledge to understand customer can become possible.
Positioning The firm will position via paying attention on having
competitive pricing strategy and higher standardize quality.
Marketing mix
Product
There are different kinds of the products which will be offered by the specific
organization that includes shirts, shorts, pants, etc. It will possess the features like higher quality,
significant compliance with prevailing trends, customization offers, etc. These products can
permit firm to gain the competitive edge in market in urn higher profitability can be gained.
Price
There are various types of the pricing strategy such as competitive , cost plus, penetration,
skimming, etc. For offering the specified products to the targeted audience the firm pays
attention on adopting competitive pricing strategy. The mentioned strategy can help firm to gain
the significant level of profitability and competitive edge to overcome prevailing competition.
Places
For targeting the specified audience the mentioned company concentrates on domestic market
and emergence on digital platform in turn attaining significant level of growth and
development. It can permit to cover the good market share in industry in turn accomplishing the
organizational objective of operating in sector can become possible.
Promotion
there are various techniques for promoting the goods & service offered by firm. The
tools which is focused by Miss guided enterprise includes social media, business based platform,
email, direct and print media marketing. It will help in achieving good ability to spread
awareness bout the products to customers.
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Management Summary
Operational team includes all the employees who are concerned with from first to end
customer meeting steps (Blut, Teller and Floh, 2018). This ensures that effective and optimum
utilization of resources is done and structure of company is functional. In this all the roles and
responsibilities are clear to employees which allows obtaining quality performance.
Financial Plans
Particulars Amount
£m
Amount
£m
Sales Revenue 400000
COGS
Cost of Sales 150000
Wages 35000 185000
Gross profitability 215000
Indirect expenses
Rent 25000
Telephone expense 10000
Van running costs 20000
motor expense 18000
Lightening and Heating
expense
20000
General Expense 15000
marketing and promotional
expenses
30000 138000
Net profitability 77000
Monitoring and controlling
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For monitoring and control the course of action that are implemented is benchmark and
variance analysis. This is helpful in estimating lacking areas via identifying the prevailing
deviations and its causes so that improvement action can be implemented.
CONCLUSION
From the above re[rot it can be concluded that growth and development is highly
important of the company to gain competitive position in the sector. The current study has
involved growth opportunities such as diversification, etc. It has involved Ansoff matrix, sources
of finance and exit strategy along with pros & cons. It has comprised business plan via involving
SWOT, PESTLE, competitors analysis, marketing mix, financial forecasting and monitoring and
controlling.
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