Unit 42: Planning for Growth - Nisa's Business Development Report

This report evaluates growth opportunities for Nisa, an independent UK retailer, focusing on strategies for expansion. The report examines key considerations for evaluating growth, emphasizing the impact of digital technologies like cloud computing, AI, and the Internet of Things. It applies Ansoff's growth vector matrix to identify market penetration, product development, market development, and diversification strategies. The report further analyzes potential funding sources, weighing their advantages and disadvantages, and proposes a business plan for growth. Finally, it discusses exit strategy options suitable for small businesses, offering a comprehensive overview of Nisa's path to sustainable growth and highlighting the role of innovation and technology adoption in achieving competitive advantage. This report covers Unit 42 assignment requirements and is available on Desklib, a platform for AI-powered study tools.

UNIT 42 PLANNING
FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK-1............................................................................................................................................1
Key considerations for evaluating growth opportunities............................................................1
Applying Ansoff's growth vector matrix on opportunities for growth.......................................4
TASK-2............................................................................................................................................6
The potential sources of funding and its advantages and disadvantages....................................6
TASK-3 ...........................................................................................................................................8
A business plan for growth.........................................................................................................8
TASK-4............................................................................................................................................9
The benefits and drawbacks for exit strategy option available for small business.....................9
CONCLUSION ...............................................................................................................................9
.REFERENCES ............................................................................................................................11

INTRODUCTION
The way in which the business conduct its day to day operations have gone through a
major change today(Grünig and Morschett, 2017.).. In the business more and more companies
are making strategies and are planning for growth. To bring a change in their company they are
making strategies. In order to target new market and attract more number of customers the digital
technology is been used by in business today. The of digital technology such s mobile phones,
laptops, video-conferencing has helped the business to expand on a broader platform. Many
companies are also making of cloud-computing storage as the data and information about the
company can be stored safely on the cloud.
Nisa is a small-scale company in UK. It is a independent retailers and wholesalers in the UK.
The headquarters of this company are located at UK only and the number of employees working
in this are around 213.The growth opportunities for the company Nisa will be evaluated in this
report. The ansoff's matrix will be applied on opportunities of growth. Further more this report
will also represent the various sources of funding that is available for the company and its
benefits and drawbacks. For small organization the exit option that is available will be discussed
in this report.
TASK-1
Key considerations for evaluating growth opportunities
The company Nisa will be able to increase its share in the market by considering the
opportunities for growth. Due to usage of digital technology such as cloud-computing, big data,
artificial intelligence, social media sites and many other the great impact can be there on
business. The company Nisa will able to gain competitive advantage by making use of these
digital technologies and also innovative products will be developed by companies. Over rival the
competitive advantages can be gained and also the margin of profit of the company will also
grow.
Competitive advantage – By making use of digital technology such as social media sites
Facebook, twitter, you tube etc the company will able to discover the preference of the customers
and based on it the product will be manufactured by them. The company can also increase its
customer base online (Dibrell, Craig and Neubaum, 2014.) . Today a lot of advantages to
business is been seen due to use of digital technology. The web page can be created by the
company on these social media sites and also the information regarding the product that is been
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soled can be given on it. Based on it the customer who visit the site (Okagaki and Dean,
2016)can give their feedback. If they like the product they can click on like button based on this
company can follow them and the company will get to know abut the likes and dislikes of
customers. On this pages the customer can also give their feedback of the company .The
company can work on feedback that is given by customer. So, that more customer -satisfaction
can be gained and also they will be able to expand their customer-base. And the pages that is
been liked by customers the company will get to known the products that attract them most. And
keeping this in mind the companies can provide the products to the customers.
Artificial intelligence in business - In order to reduce the operational cost, increase efficiency,
grow revenue and enhance the experience of customers many business take up artificial
intelligence. By automating the routine processes and task the time and money can be saved by
making use of AI technology .This will impact the business has innovation will be there and new
product will be ample latest developed. The productivity and operational efficiencies will be
increased. Based on the outputs from cognitive technologies the faster decisions will be made.
The mistakes and human error in the business will be avoided due to this. It will help the
company Nisa to predict preference of customers as it use insight and the personalize experience
will be offered to them through use of AI in business. In order to generate quality leads and grow
the base of customer the vast amount of data is mined. The cost savings will also be achieved as
it will optimize the business, the workforce and the products. By recognizing and maximizing the
opportunities of sale the revenue of the company will also increase .The operation of business
can be change by using AI. The productivity of support team and the problem of customer on
real time is solved by making use of AI based customer service CRM application. When the AI
is been applied to buyer behaviour it can generate more correct predictions. At a personal levels
it can further enable organization and marketers to reach out the customers and in deeper
interaction engage them and with the products offered by Nisa enhance their overall experience.
In the business AI can also be used for real -tie, hyper -personalized and recommendation to
customer(Grünig and Morschett, 2017.). .It will gather the information about the activity of
customers and their buying patterns .As per the tastes and process of customers the
recommendation to business van be made. The customer profile can be build by AI.
Internet of things in business – The very imaginable device , machine, structural component etc
can be connected by using the power of internet. This is termed as Internet of things. The
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connections of people to people, things to things is increased by using this. The valuable data can
be collected , shared, and use automatically by making of sensors, electronic tags and labels .
The valuable data can be accessed without any expense. All type of customer and performance
related data need to be collected and monitored due to expansion of IoT. Through the use of
interconnected devices that can be used by company to store timely information that will be
valuable. The demand of customers will be easily monitors and accessed and also their overall
purchasing behaviour. By making use of more effective advertising and promotional offers the
companies can more effectively tailor there offerings to customers. The speed of entire
purchasing process will be improved due to use IoT. The use of advance sensors will help the
customer know when their product will be becoming defective and require replacement (Wolf
and Floyd,2017.).
The use of cloud computing – For smaller company such as Nisa cloud make sit possible to use
and store the valuable data securely without the need of costly servers. This will help the
company Nisa to store its information on the clod and also it is a cost efficient and also the time
taken to store information on cloud is less. The backup will be there and also updation will be
done automatically. The use of cloud. -storage will also give flexibility to the users at any time
and at any place ample latest they can access the data. The only need of cloud-storage is Internet
access.
The use of mobile phones, laptops, video conferencing – All these technologies in business will
help the company to expand its business on a broader platform. By making use of mobile phones
even after office hours employee will remain in touch and also they can also communicate with
customer or employer that are sitting in different location by using mobile hones and video
conferencing.
The company Nisa will able to gain competitive advantage from all these technologies
hat is mentioned above. Also, the innovative products will developed by them as keeping in
mind the customer performance. The new product will be planned and developed. With other
business they will collaborate in order to make their product plan successful. In order to achieve
the business benefits individuals can work together to a common purpose in collaboration. There
are two type of collaboration that are available. They are as follows-:
Synchronous – In real time the business will interact that is in online meetings. Through instant
messaging, or via Skype the interaction will be there.
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Asynchronous – Based on time shifted the interaction can be there. Like when uploading
documents, annotations to shared workplaces.
In the collaboration space the shared workplace comes in the category of the most visible entries.
For both strategic and functional investors the franchise systems present a valuable investment
proposition. Over the past decade merger and acquisition of franchise system have become more
common place.
Applying Ansoff's growth vector matrix on opportunities for growth
Ansoff's growth matrix can be applied to the opportunities of the growth. The strategies
for future growth is been devised to the executives, senior managers, and marketers by using a
ansoff matrix strategic planning tool.
Market penetration – In this attention will be made by the business sot sell out its products and
services in the current existing marketers. The objectives tat are been met by market penetration
are that the market share of current products is maintained or increased. By using a combination
of competitive pricing strategic ,advertising, sale promotion etc this can be achieved. By existing
customers the usage of products can be increased. In this the business will stay as usual. On
competitors and on needs of customer it is likely to have a good information.
Market development- In this the business will sell out its exiting products in the new markets. In
this the new location will be selected in this new location or country the product will be
exported. The new distribution chances can be used by the company under this. In terms of
business is to risky in comparison with market penetration as new market will target in this.
Product development – In the current market only new product will be introduced .The
development of new competencies are required in this strategy and the modified products need to
be developed by the company that will appealing for the existing market. In order to remain
competitive where the product ned to be differentiated this strategy of product development can
be use by Nisa.
Diversification – In the new markets the new product will be launched by the company.
Existing products New products
Existing market Market penetration
 The loyalty schemes
will be launched
Product development
 AI technology and
social media sites used
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 More aggressive
promotional campaign
by using social medial
sites such as Facebook,
twitter,you tube, online
advertisements etc.
 Competitive pricing
strategies
 Selling of more
products in the existing
market
 In the needs of
customers a detailed
insight will be done
 At Nisa innovation will
be done(Seyed-Javadin,
and Safari, 2014.)
New market Market development
 A new market or
location will be target
 The packaging of the
product will be
changed
 The environment
friendly packaging will
be done
 E-commerce and mail
order will be used
Diversification
 As per the customers
the new product will be
made and in the market
it will be sold.
 The cloud-computing
can be used by the
company
Applying ansoff's model on growth opportunities for the company Nisa
Market penetration – In order to increase the sales in the existing or current market Nisa can
launch loyalty schemes so that the current customer will remain loyal towards the company and
it will also be appealing for them. The company will also make of promotional schemes .The
online advertisement will be used by Nisa so that to make customer aware about the products
that is been provided by this company. Based on what is being charged by rival companies such
as unicorn competitive pricing will be set (Phillips and Moutinho, 2014. ).
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Market development – As the customers have become more conscious towards the environment
so keeping this in mind the packaging of the produce will be done in a sustainable manner. AlsO
by online platform such as e-commerce and mail the order of the product will be taken by the
company Nisa.
Product development- The digital technology such as AI, social media sites will be used by Nisa
in order to find out customer preference then keeping in this in mind innovative product will be
developed.
Diversification – In the new market a new product will be provided by the company Nisa. The
cloud-computing can be used by the company for this as they can store all the information on the
cloud and also it is not so costly.
TASK-2
The potential sources of funding and its advantages and disadvantages
The various sources of funding can be considered by the company Nisa in order to do operate its
business. Some of them are as follows-:
Small business administration loans – It is a government administration that is dedicated towards
the help for success if small business. Some of the function of SBA are as follows-:
 In order to obtain capital it will help small business. For small business in some cases it
will act as the guarantor on loans.
 Through education, advertisement and training entrepreneurial development.
 To make sure that about 23% of contracts are given to small business .
Advantages – The chances of receiving a loan from bank will increase due to proper treatment
of an SBA loan.
In between local lenders and local borrowers the relationship will improve through SBA
Disadvantages – The guidelines of this loan is strict. From the previous 2-3 years SBA look at
data. So, it is very crucial for new ones to obtain one (Okagaki and Dean, 2016).
Angel investor
They comes in the category of wealthy people. In exchange of share of equity in the company
they will give an entrepreneur financing. The range of investment size is less than $ 1 million .In
the organized groups the angels often work .In comparison with any other investor angel
investors are more period (Kardong-Edgren and Leighton, 2016).
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Advantages - In the industry they normally have experience and the helpful guidance can be
offered by them. In comparison with VC firms they are less rigid .
Disadvantages – The force can be there due give up the degree of control of the company Nisa.
Angel investing have high-risk nature so the follow on investment is rarely made by them.
Friends and family – In order to get the business on point the friends and family often acts as a
seed investment. From an angel or VC's the larger funding will be obtained in this.
Advantages – Due to the existing relationship the funding is obtained quickly. More flexibly is
being there in the investment terms .In the business the potential exist for the mutual invested
interest will bring closer to family and friends.
Disadvantages – The personal relationship can be strained due to immense pressure to succeed.
In order to examine the potential of the business friends and family often have limited ability.
Due to their monetary stake in the company they tends to advice.
Venture capital (VC)funding -The key for the success of many entrepreneurs is VC funding. A
large sum of money is been put forward by venture capitalist in exchange for equity in the
company. They are professional investors as they are all about the money
Advantages – At once a large sum of money is being invested by them and expertise is also
provided and in the growth of business the other assistance is also been given by them. For the
company Nisa this funding will bring instant funding. To a vast network of individuals VCs
open up doors .In this the partners and future investors are included.
Disadvantage – For a reason VC's exist. They are all about the money and on their investment
they will take necessity steps to see a return. In a direction the business can be taken where the
owner of businesses do not agree (Guerzoni and Desai, 2014. ).
Governments and European grants – In this the grants need not to be payed back. With UK
grants there are both advantages and disadvantages. The major advantages of this is that over the
business there will be no control take and grants that is been given by the UK government need
to be returned back. As per the need of company Nisa there are different grants that is been given
.Only the right grant need to be selected. The drawback of this the time that is been assumed in
the processing of this grant is more.
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TASK-3
A business plan for growth
Executive summary – In this plan a business plan will be made for the company Nisa in which
it try to make use of current digital technology such as social media sites, artificial intelligence
etc in its business. The SWOT analysis will be done of the company in order to find out the key
strength and weaknesses of the company. Also the marketing plan will be made in which all the
technology that will be used in order to promotion and interaction with customers will be
described (Grünig and Morschett, 2017.).
Description of enterprise – Nisa is retailer company in UK. The company was founded in the
year 1977 and there are about 213 employees that are working here. The best and fresh food
ingredient and food items are been given by the company for its customers.
SWOT analysis -
Strength – The growth rate of this company Nisa is high and the workforce that is working in
this company are skilled and talented. The business units are experienced. The food items and
other product that is been offered are of different ranges.
Weakness – The company is just limited to small market. The new markets need to be explored
by this company. The modern technology such online delivery,e-commerce etc are not been used
by them.
Opportunities – The new product and services can be launched by the company or new market
can be targeted by them. The latest technology such as cloud-computing storage can be used by
them in the business so as keep the information secure and safe of the business.
Threats – The rising of raw material and new technology that is been used in this sector can be
threat. The new products are been launched by competitors.
Marketing sub -plan – The company is making a plan for making use of environment friendly
packaging of its product. The product development strategy will be used by Nisa so that they can
increase the sale of the company (Eddleston and Crittenden, 2013). For this new product the
company will make use of digital technology such as social media sites Facebook, twitter, online
advertisements etc will be used. In order to bring market penetration in the company it will make
provide the existing customers with the offer so that they will remain loyal and attracted toward
the company.
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Human resources – The training will be given to the staff regarding the use of new technology at
this company. The new employees will be hired who have proper knowledge of sue of social
media so as to make the promotion effective. The existing employees and staff will be
trained .On a regular basis the training will be conducted.
The budget – As it is a small scale organization so the investors need to be required in order to
investment. To do the promotion of the company for its new product by making of online
advertisement the company can apply for bank loans .Once it is been granted and they can
slowly pay back this loan (Dibrell, Craig and Neubaum, 2014.) .
TASK-4
The benefits and drawbacks for exit strategy option available for small business
Liquidation – It is like the selling all the assets exit strategy. The liquidation is the only
option for the small business that depend on the performance of single individual.
Benefits – This is simple
Drawbacks – From asset sales the creditors have first claim on funds
Even in non -depressed market the second hand value for products such machinery and
equipment can be very less
Liquidation on time – Over time in this the all the profits is being extracted by owner in the
business. Rather than reinvesting it all the profits are being extracted. By taking out large salary
shares or dividends it is been done (Albon,Iqbal and Pearson, 2016.).
Benefits – For personal use maximizing withdrawal of cash on an ongoing basis.
Drawbacks – The growth potential and also the sale value of business is reduced due to
extraction of profits.
Keeping business in the family - For the other family members a living will be provided.
Advantages – By grooming a family successor can make for a smooth transition
Drawbacks – The member of family may not be having skills (Exit strategies , 2017).
IPO – It can be viable exit strategy
Benefits – It can be extremely profitable as the company will be taken to public
Drawback – The process can be long and costly.
CONCLUSION
Thus summing up the above report it can concluded that the company Nisa can gain competitive
advantages rival company by identifying the growth opportunities. The use of digital technology
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such-as cloud-storage, AI etc can be used in business in order to bring innovation. The angle
investors, loans from banks are some of sources of funding for the company Nisa. The IPO is
the best exit strategy that can be used by companies...
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