Business Growth Plan and Analysis for Norsk European Wholesale Limited

This report provides a comprehensive analysis of growth strategies for Norsk European Wholesale Private Limited, a trucking and transportation service provider. The report begins with an evaluation of growth opportunities using Porter's Generic Model and Pestle analysis to assess external factors influencing the business. It then applies Ansoff's growth matrix to explore market penetration, product development, market development, and diversification strategies. The report also examines potential sources of funding available for the enterprise, crucial for managing business operations effectively, and provides a business plan for growth, covering objectives and strategies. Finally, it addresses exit or succession options for small and medium-sized enterprises (SMEs) within the organization, offering insights into sustainable business practices and expansion strategies for the wholesale and transportation sector. The report aims to guide Norsk European Wholesale in achieving profitability and sustainability.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P2 Ansoff's growth matrix .........................................................................................................6
TASK 2............................................................................................................................................7
P3 Potential sources of funds available for enterprise................................................................7
TASK 3............................................................................................................................................9
P4 Business plan for growth ......................................................................................................9
TASK 4..........................................................................................................................................11
P5 Exit or succession option for SME's in the organisation ....................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and Journals...................................................................................................................14

INTRODUCTION
Planning is required at every stage of the business. Every firm want success in their life
to convert their actual position. Planning for growth helps enterprise in bringing profitability and
sustainability. Strategies and policies in a growth plan help business to generate revenue
(Barbour and Deakin, 2012) . In this section there is a discussion about Norsk European
wholesale private limited who provides trucking and transportation services. The company was
established in 1993, in slough, Colnbrook. Norsk is providing wide range of wholesale delivery
services to Europe, Eastern Europe and Scandinavia. It offers fastest overnight next day delivery
network to many cities.
This project states the growth opportunities prevailing in the market with reference to
respective company. It provide abstract on ansoff matrix and source of funds which help
business to sustain for a longer period of time. It supplies the business plan through which
business is able to achieve objectives or goals. Besides this it also furnishes exit or succession
option which small scale business and medium scale business can use as per the current demand
of customer.
TASK 1
P1 Evaluating growth opportunities with reference to organisation.
The growth opportunities help the business to get near to its desired outcome. Every
business want success and development for that they make all the efforts. These efforts are
generally towards satisfying customer needs and wants. Through this company want to
understand various factors which affect the business. With the help of Pestle analysis business is
able to know more about the external factors and its effect on the business. In additional to this it
also describes about the porter generic model which help the business in increasing market share.
Porter Generic Model
This is a strategy which can be easily applied to all kinds of businesses and their
products. It helps enterprise to know the competitive advantage in the selected market which
help them to earn profit. Competitive advantage helps the business organization to sustain for a
longer period of time without any difficulty because it helps in beating the competitors . The
generic strategies include cost leadership, differentiation, cost focus and differentiation focus.

Cost leadership: Business get the benefit of low cost through using high technology, low
cost raw material and locating the plant at a place where resource are available at very reasonable
rate and many more ways. Through adopting this theory Norsk European wholesaler can increase
their sale and profit margin as the product is costing very low.
Differentiation: This strategy says that business have to add some features or show
innovation and creativity to make the product strong competitor of other firm. It helps firm to
earn competitive advantage due to offering unique product which was more demanded by the
customer. Norsk European wholesale through this can attract large number of customer as they
are offering a thing which are different from their competitors of the society.
Focus: This is a strategy which teach the concept of focusing one thing at a time. It
means that business should focus on one or more section of the market for the growth not
complete market with one product. The respective company should focus on that section which
have less density of the competitor. From cost leadership and differentiation business can adopt
any of them. Norsk European wholesale use this strategy for increasing their market share. It
based on two strategies which are given below-
Cost focus: This is a strategy under which business focuses on the cost to achieve
advantage over its target. In this services are offered to client and business firms on the basis of
different cost as compare to other firms. By the help of this the respective company can increase
its sales in that particular region.
Differentiation focus: Through differentiation firms finds a uniqueness in the product
for reference point. In organisation differentiation in the commodity should be done on the basis
of customer needs and wants otherwise profit of the company is not assured (Chen, Band et.
al.2014) .
Norks European wholesale company can use cost focus strategy in order to make its
strong presence in the market as they are not able to make big differentiation in their services.
Pestle Analysis
Internal factors are those which can be controlled by the business according to firm
structure while external factors are those which make alteration in the business on the ground of
outside environment. Pestle take place in the organisation because it helps in knowing about
external factors which are affecting them. Under this there is a study of various factors such as

political, economic, social, technological, legal and environmental which assist in running the
business decently.
Political Factor: Each country has its own rules and regulation which every firm who is
working there have to follow if they want to conduct business appropriately. Stable political
condition help the firm to carry out its operations with ease (Eddleston and et. al. 2013). Norsk
European wholesale private limited should follow all government rules and regulation otherwise
they have to face negative consequences later on. Norsk should also follow these rules when
they are delivering material of some company to another nation. They should start their trade
with those countries where limited or less restrictions are present. According to political situation
they should make the business plan so that business can work comfortably.
Economical Factor: The economic factors at national level include taxation,
unemployment, inflation etc. Whereas at international level economic factors are currency
exchange rates, balance of trade and many more. When there is a cash flow in the country than
Norsk European wholesale also able to get fund from any of the source to carry out its day to day
activities. With these funds they are able provide good quality of services to clients and banks.
Social Factor: This factors are talking about the several cultural, values and the religious
create impact on buying behaviour of the customer. This factor includes lifestyle trends, ethical
issues, cultural beliefs, career, population, income and demographic. Views and liking of client
differs on the basis of the culture so there is a need that company make variation in their services
according to the region.
Technological Factor: With the help of advance technology business is able to survive
for a longer period of time by facing tough competition with rivalry firms. Technology
advancement is very beneficial for the customer as it provides low cost product or commodity to
them. New techniques should be implemented in business, to increase the performance of the
employees and the enterprise. Through new technology business can improve its productivity
and stress level of employees. Norsk European wholesale with the help of new technology can
improves its sales and profitability. The respective business can use new technology in the
distribution and marketing of their services.
Legal Factor: There are various rules and laws which are made by government should be
followed by the company without considering its positive and negative impact in the
organisation. This include health and safety act , labour law,consumer protection act and

employment law. As these are made by government authorities so that it is compulsory to follow
by every business enterprise. Norsk European wholesale should follow laws otherwise it create
wrong impact on company's image.
Environmental Factor: With the increase of knowingness, customers are more attracted
to the companies which furnish no harm or less harm to the nature. It includes all activities such
as pollution free, recyclable product and waste disposal. Concentration on improving
environment improve the image of the company (Beatley, 2014). This help business in
increasing their popularity, demand and sale of the commodity. Norsk European wholesale
should take care of the emission from their vehicle means use pollution free equipment, time to
time so that it can't create negative effect on the society. Client or business firm preferred those
businesses which use ozone friendly vehicle for the supply or distribution of the products.
P2 Ansoff's growth matrix
Every business want to expand its area and size. The business should expand only after satisfying
customer needs and wants otherwise it has no benefit (Galland, 2012). The growth is also take
place when firm opening it stores at a different place which is in a reach of large number of
customer's. Here ansoff matrix is used to explore the opportunities prevailing in the market.
Ansoff's matrix
This matrix help the business authority in expanding their brand. The model is launched
by Russian American person. The matrix is known from another name which is product/market
expansion grid which help in making current and future policies and strategies. It describes the
four strategies through which business can develop.
Market penetration : This stage is less risky as compare to other stages. This attempt is
made to increase the profit and sale through introducing existing product into existing market.
The company can attain its desired objective by increasing usage of the product and by the
promotion of product. Usage increased by adding some new feature in the existing product
which their competitor is not offering. Promotion means informing about product to large
number of people through advertising, personal selling and banners (Levy, 2016) . Norsk
European wholesale Ltd can increase the demand of its services by adding some new feature
which is accordance to the client's need and desires. Additional feature can be generated only
after doing large amount of research in the market.

Product developments : This is stage which describes about the establishment of new
product in their current market. The company adopt this method to increase their customer share
and attracting competitors customer. This take place where company is known by large masses
due to which people easily get attracted towards the establishment. For Norsk European
wholesale this stage is not very beneficial as it covers already that particular region than how
much than it can exceed their number of customers. New services can attract only limited
customer not more that.
Diversification : It is most risky stage as compare to all other stages of the matrix
because in this company is launching brand new product at a completely new market (MacLeod,
2013). This stage involve huge amount of risk which can provide huge profit or low profit even
loss. Risk rate is so high because they are working in a fully new region which they have no
knowledge about their culture and taste. For norsk wholesaler limited this situation is not very
beneficial.
Market development : This is a stage under which is applied when undertaking want to
enhance its market area. In this company enter new region with their existing or old services. It is
risky stage but have the huge chance of providing high returns. The modification can be done in
any form like packaging, labelling and new distribution channel (Moseley,2013). Norsk
European wholesale can do the market development for its product. By the help of this they can
provide their existing services in the new region after making some alteration according to their
culture and preferences. The delivery company can use completely different medium of
distribution as compare to earlier medium.
Through market Penetration and market development Norsk European wholesale can
increase their sale and achieve growth and success.
TASK 2
P3 Potential sources of funds available for enterprise
In United Kingdom, small scale industries are expanding their business in large number
and they are playing crucial role in enhancing revenues and economy level. In order to manage
entire business operations it is required that entrepreneurs have adequate amount of funds so that
activities can be done effectively (Schetke ,Haase and Kötter, 2012). Government of United
Kingdom has formulated certain policies and financial institutions who can provide appropriate

funds so as to operate their business smoothly. Norsk European Wholesale company who has
decided to acquire market can get it by entering into new market which gave them high growth
opportunities. Therefore, for doing the same it is important that enterprise have ample amount of
funds which will enable them in implementing plan of action and strategies in a better manner
without any complications. Thus, for getting funds from different sources some of the financial
institutions are given from where Norsk European Wholesale can take money for operating their
business:
Bank loan: This is determine as one of the common and best source of getting money for
running business. Thus, an entrepreneurs if he/she wants to take money for expanding its
business than they have to follow certain rules and regulations that are being formulated by
Government of United Kingdom. In context with banks, they are giving loans at a very low
interest rates, which is enabling small companies in expanding their business effectively
(Todes,2012). Apart from this, firms can get money from other sources as well like angle broker,
society etc., Advantages: Loans that are provided by banks have fixed rate of interest and company
has to pay according to their rules and regulations. Generally, rate of interest is fixed at
which loans are granted by banks to the firms according to that they have to pay. Disadvantages: The biggest disadvantage of bank loan is that, its interest rates is fixed
and company had to pay accordingly, firm cannot ask for bargaining. Whatever bank has
asked to pay enterprise have to do whether they are going through loss or profit.
Crowdfunding: As per current market scenario, crowdfunding is considered as one of the
best option if company has large connections with stakeholders or eminent personality. Trust
factor is also one of the biggest factor in crowdfunding (Valler,Phelps and Wood,2012)(. With
the help of online networks or social media sites person who wants to give or contribute money
can do the same in exchange of equity. OzCroed and Pozible are the two sources through which
a adequate amount of funds can be generated. Advantages: If company wants to raise funds without any chargers than it is determined
as one of the simplest form. With the help of this, company can evaluate the progress of
their business whether they are growing or diminishing.

 Disadvantages: Insecurity in terms of business operations are is present in this for of fund
raising as firm cannot apply for patent and copyright. If company's focus is more on
looking for investors than returns can be minimised.
Peer to Pear lending: This approach is considered as financial approach of debt which is
done by lending and borrowing of funds without interferences of any financial intermediaries.
Although it remove mediator from the process but increases the risk factor that are related to this
process. Some of its advantages and disadvantages are mentioned below for better
understanding: Advantages: It is determined as one of the fastest process of getting money without any
interest and norms. Although it includes some of the interest rates but no additional
charges are to be paid by an individual (van Assche and Beunen 2013). Disadvantage: Interest rates are lower for shorter period but if loans are taken for longer
period than interest rates can be quite costly.
Venture Finance: It is determined as high risk of capital and provides funds to new
ventures and start-ups. Their main motive of providing loans to these institutions is to gain
higher return and to grow faster as well. Funds that are provided by financial institution are very
quick which assist small firms in executing their plan in an effective manner. Advantages: The biggest advantage of taking funds from these institution is that they
have the ability of providing loans whatever money enterprise want which is as compared
to other financial institutions are not possible.
 Disadvantages: Safety is the biggest concern as process is typical because of legal and
other procedure that are included in this.
With the above mentioned points Norsk European Wholesale they are using Bank Loan
and Peer to peer lending process as these institutions helps company in providing finance very
easily. In terms of bank loans it is determined as one of the easiest and flexible want of getting
funds in speculated period of time. Loans can be taken for shorter as well as longer period of
time. In United Kingdom there are many organisation that provide loans to new and small
business enterprises so that they can expand their business in a better manner. Whereas peer to
peer group is an effective process which are incorporated by firms because they gets money
through online and offline as well.

TASK 3
P4 Business plan for growth
Business plan : A business plan is a formal document which help the enterprise to know
its objectives or goal which have to be acquired for that there is a need to make plan (Chen and
et .al, 2014). There are various activities such as budget, management functions and time which
help to achieve desired goal. Through this business able to know the factors which are going to
affect in future such as environmental factor , technology and so on.
Company overview : Norsk European wholesale Ltd is a company which is established
in 1993. It is known for providing high quality and wide range of wholesale delivery service
throughout Europe and eastern Europe. It headquarter situated in slough,berks. Presently there
are approx. 51-200 employees who are offering fastest overnight next day delivery service.
There staff is knowledgeable and trained enough to handle any enquiry.
Vision : There vision is to provide the services which does not involve huge cost and
time base.
Mission : The company mission is to give the best,dependable and trust worthy quality
services to the customer which help them to fight with their competitors.
Objective : There are various objectives which Norsk European wholesale company
want to achieve -
 To provide qualitative services for client
 Want to provide the product and services according to their need and want.
 To come among world known delivering brand.
Swot analysis
Strength :
 The company is providing the services at a very affordable price.
 It offers wide variety of services like express delivery,warehousing and storage and
technical services.
 They believe in building strong relationship with clients by providing effective services.
 There network is so strong due to which they are able to provide earliest deliveries as
standard(Blackburn,Hart and Wainwright , 2013 ).
Weakness :

 Due to inadequate funds or the money company not able to perform its day to day
activities and also not able to explore opportunities of the market.
 Lack of reputation in the market which their competitors have.
Opportunities :
 Company can attract more customer through the use of online sites.
 They can enter into contract with various companies so that they use only them for
delivering the sale product and bringing purchase product.
 Business could be establish at different locations in foreign countries to increase market
share and growth rate.
 They can use new techniques of distribution to make its services more better.
Threats :
 The company has the biggest threat from emerging enterprises because they are coming
with advance technology and methods which decreases the price of services.
 They are facing huge competition from large number of firms, who are offering same
product and services. Due to which company have to make changes in their system to
remain different with them.
Segmenting : Potential group of customer should be known by the company.
Targeting : It target is the companies who generally need delivery of goods. As not
everyone is taking our services for their business so their targets are the business and can also
non profit organisation (Allmendinger and Haughton 2013)..
Positioning : By using new or different tag lines and slogans company can position its
services.
Quarterly data of selected firm supports an organization while forecasting cost of future
as well as aids finance department while making final decision.

1st quarter
2017
2nd
quarter
2017
3rd quarter
2017
4th quarter
2017
1st quarter
2018
Assets 4 349 4 454 4 490 4 553 4 589
Liabilities 3 318 3 399 3 424 3 494 3 516
Net
financial
assets 1 031 1 055 1 066 1 059 1 073
Net lending 3 -3 -25 -25 18
Other
changes 31 27 36 18 -4
Debt to
income
ratio1 235.6 237.1 238.5 239 239.8
Debt
growth (per
cent)1 6.2 6.1 6 5.9 5.6
TASK 4
P5 Exit or succession option for SME's in the organisation
Various methods are available in the market which can be use by Norsk European wholesale
private limited to exit or succeed in the society. Different methods are described below :
 Merger and acquisition : Merger take place when two companies decide to join hands
and ready to explore opportunities prevailing in the market. In merger there is a total
absorption of a target firm. Due to this one firm ceases to exit and the new firm comes in
the existence. In acquisition one company buys other company business. The acquisition
is done by two way either by buying whole assets or by buying some particular segment
of the commercial enterprise. Both the process in undertaken to increase the sale and