Planning for Growth: An Analysis of Norsk European Wholesale Limited

This report analyzes the growth strategies for Norsk European Wholesale Limited, a UK-based SME in the import/export and logistics sector. It begins with an introduction to strategic business planning, emphasizing the importance of assessing current capabilities and market dynamics. Task 1 focuses on key considerations for evaluating growth opportunities, including competitive analysis, Porter's generic strategies (cost leadership, differentiation, cost focus, and differentiation focus), resource assessment (financial, human, and technological), capabilities, core competencies, and external analysis (PEST: political, economic, social, and technological factors). Task 2 applies Ansoff's growth vector matrix (market penetration, product development, market development, and diversification) to identify growth opportunities. Task 3 examines potential funding sources for businesses, outlining their benefits and drawbacks. Task 4 involves developing a business plan for growth, and Task 5 assesses exit or succession options for small businesses, including their advantages and disadvantages. The report concludes with a summary of findings and a list of references.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key considerations for evaluating growth opportunities and justify these considerations
within an organisational context.................................................................................................1
P2. Opportunities for growth applying Ansoff’s growth vector matrix......................................5
TASK 2............................................................................................................................................7
P3. The potential sources of funding available to businesses and its benefits and drawbacks...7
TASK 3............................................................................................................................................9
P4. Develop a business plan for growth......................................................................................9
TASK 4..........................................................................................................................................11
P5. Assess exit or succession option for a small business also their advantage and
disadvantage..............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth is also considered as a activity of strategic business which begins
with finding current capability of firm as well as enables to ascertain trading operations which
are essential for progression in state to modify which incurs into marketing environment
(Angotti, 2018). For this report the chosen company is Norsk European Wholesale Limited
which deals in facilitating import and export services, supply chain, shipping, technical and
specialist services and so on. Its headquarters is in Berskshire, England, UK. The purpose of this
report is to analysis the key considerations for evaluating the growth opportunities and
application of Ansoff's Growth matrix. Funding sources with its benefits and drawbacks as well
as formulation of a business plan. Apart from this exit and succession plan for the small business
with their advantage and disadvantage are also mentioned in this report.
TASK 1
P1. Key considerations for evaluating growth opportunities and justify these considerations
within an organisational context
Norsk European Wholesale Limited is a SME's company within United Kingdom which
offers express delivery, warehousing and storage, technical and specialist services. As a
transportation and logistics industry has opportunities scope for growth as well as expansion into
market. For the growth of the business, this is essential for Norsk European Wholesale Limited
to examine the internal as well as external factors. Herein, it will assists in grabbing attention of
the more consumers towards firm that will enhance level of sales and profitability. Through
making strategic plans, Norsk European Wholesale Limited can accomplish their goals. Advance
technology aids company to perform navigation and transportations can become easy etc. So,
few growth opportunities for respective company to implement advance technology are
mentioned below:
Competitive analysis:
Herein, manager of Norsk European Wholesale Limited can build an effective plan for
implementing advance technology with business to do whole activities. All department of
particular firm can obtain advantage of adapting advance technologies (Dierwechter, 2017). In
this context, company can acquire opportunity for maximising its delivering, technical services.
This will aids in grabbing the attention of consumers towards its firm. It also obtain opportunity
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to utilise current techniques of marketing. This will helpful for Norsk European Wholesale
Limited to do its business activities in effective way in comparison to their competitors. This will
assists in accomplishing competitive advantage into market.
Porter generic strategy:
It is considered as a essential for business that is advantageous for attaining success for
longer periods. Herein, company positioned themselves through utilising it strengths. This can be
their trained workers, marketing campaign etc. Michael Porters show the strength of the
company that lies upon cost advantage as well as positioning (Faludi, 2013). This model is
executed by Norsk European Wholesale Limited for acquiring opportunity of advance
technology in their transportation system. It included four strategies that are mentioned below:
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Illustration 1: Porter's Generic Model
(Source: Porter's Generic Model. 2016)

 Cost Leadership: Herein, cost benefits sources are lie upon the business framework. It
included advance technology, economies of scale and so on. With the help of this Norsk
European Wholesale Limited can find out low cost technology producer as well as utilise
whole cost benefits sources. In case for can sustain and attain whole cost leadership then
respective firm can be an average performer into industry. Differentiation: Herein, firm looks to facilitates various services in its industry. Also,
certain aspects are broadly valued through clients. Within Norsk European Wholesale
Limited, manager obtain opportunity of implementing advance technology in new way.
This facilitates innovative services to its consumers as per its requirements in
marketplace. Cost focus: This focus on choosing narrow scope of competition into business. They
select segment in its industry as well as adapt this strategy to facilitate its clients. Norsk
European Wholesale Limited focus upon their cost advantage factors while acquiring
advance technology opportunities in its business operations.
 Differentiation focus: It is usually focus on narrow competitive scope choices into firm
(Friend, Power and Yewlett, 2013). Norsk European Wholesale Limited can concentrate
on facilitating various services to its consumers by applying the advance technology in
their working or operations. They can target segment to its client’s requirements that
assists them to attract more number of consumer towards its firm.
Thus, Norsk European Wholesale Limited can adopt or execute differentiation focus as it
will facilitate fastest services top its users according to the modifying trends as well as its
requirements. It aids in obtaining competitive advantage over competitor’s firms as clients prefer
to avail fast services. If users are satisfied from the firm, then its manager can rise the services
prices. Because of advancement, customers will eager to avail services due to which company
revenue as well as profit will enhance. Also, it will assist in targeting segments towards
customers’ requirements. Therefore, organization can perform its technical, delivery system
consequently.
Resources: This is considered as a sources or supply from that a benefits can be
produced. So, Norsk European Wholesale Limited have some resources such as financial,
human and so on.
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Capabilities: This is considered as a something an individuals or a thing is capable to
perform. Therefore, Norsk European Wholesale Limited capabilities is technology utilisation. It
can use various types of technology in order to provided standard as well as fastest services to
their customers so that they can satisfy their clients.
Core competencies: This is the strategic advantage which provides business an effective
competitive advantage. The core competency of respective firm is excellent leadership and
organisation so that they can lead as well as guide their staff, workers, subordinates appropriately
in order to accomplish their objectives.
External analysis:
Herein, the firm examine the factors that are political, economic, social and technology.
There are important factors for increasing the process of decision making. This is facts that
world's demand are changing regularly (Gallent and Ciaffi, 2014). Therefore, Norsk European
Wholesale Limited is also modifying its manner of completing their operation in new ways. For
it, organisational manager has to examine PEST to get knowledge regarding the chances take
place in marketplace. All factors are explained below:
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 Political: Its plays important role in company. Within Norsk European Wholesale
Limited, political factors provide effects on various policies and also change the working
manner. There is modification that takes place are in trading policy, taxes and so on.
Respective firm has to examine these factors effectively as well as utilise them while
completing its operation of business effectually. As per the above given core
competencies of respective company that is excellent leadership through which
competitive advantages can be gained as per the changes policies effective leadership can
influence the employees of the firm to perform accordingly and also guide them to led
properly.
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Illustration 2: PEST Analysis
(Source: PEST Analysis, 2018)

 Economic: Now a days, most of the industry are international as well as markets are
volatile. Either company is facilitating products or services and their quality is considered
as a essential factors. There are various components that provide impact upon
transportation industry are inflation rate, interest rate etc. Norsk European Wholesale
Limited has to examine overall rates while obtaining opportunity of implementing
advance technology. Social: It impact the transportation and logistic sectors in different ways. This includes
population demographics, public policies, cultural aspects and so on. Norsk European
Wholesale Limited is examining the requirement of clients as well as its culture as per
that it adapt services in its work area. As the essential resources of the respective firm is
financial resources as this assists them to develop the living standard of the society by
providing effective services.
 Technology: This is considered as a essential factors as it is changing rapidly into
marketplace (Gallent and Tewdwr-Jones, 2018). It includes technology using risk,
navigation, GPRS system and many more. Norsk European Wholesale Limited is
utilising advance technology in its operation. They are using artificial intelligence, can
contact to user through social media, Gyroscopic vehicles for delivery, block chain in
logistic etc. for accomplishing its task appropriately. The above mentioned capabilities of
of the respective firm is technology utilisation which help them to gain competitive
advantage as they are using various technology such as block chain into logistic services,
GYROSCOPIC Vehicles for delivery service and so on.
Norsk European Wholesale Limited has examine above mentioned factors for grabbing
opportunity of adapting advance technology in its work area. As it has to utilise whole political
factors that take place at the time of applying advanced technology. It will aid in enhancing
profitability. Macro factors analysis will assist company to know about the political, economic,
social and technological aspects in expected way. Because of that it will able to develop policies
that enable them to accomplish its goals by suitable means that outcomes in acquiring
competitive advantage.
P2. Opportunities for growth applying Ansoff’s growth vector matrix
Ansoff's growth matrix is concentrates upon new as well as existing market strategy for
effective growth into the development of present products or launch new goods into marketplace
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for enhancing sales and accomplish the requirements of the target consumers (Gururani, 2013).
This is advantageous for Norsk European Wholesale Limited to initiate a business though
developing effectual strategy in order to target clients as well as producing more number of
growth opportunities in future. There are mostly 4 strategies in this matrix that are mentioned
below:
 Market Penetration: Company usually apply this type of strategy for accomplishing
growth in its present products. In order on concentrates on maximising market share into
recent segments of the market by growth into existing goods and services. This strategy is
not riskier that is used through various firm for selling its products at low price in order to
grab more market share as well as cope up with high competition into marketplace. This
concentrates on enhancing the volume of sales by obtaining appropriate knowledge
regarding demands and clients buying behaviours. For example: Norsk European
Wholesale Limited can use this for good opportunity of executing advance technology
into its existing services. It will aid in maximising the activities of working. Therefore, to
implement effectually in UK Norsk European Wholesale Limited can adapt many
marketing campaigns for grabbing the attention of more buyers towards company.
 Product Development: Herein, companies are launching a new products into current
market segment (Hutton, 2013). It concentrates on launching new products by specific
changes in its business operations such as delivery, storage process and so on. For
example: Norsk European Wholesale Limited focus on using various techniques and
changes its facilitating services process. This will assist in providing effective services to
its users. For creating modifications in respective firm can adapt advanced technology for
facilitating better services.
 Market development: According to this strategy, organisation are concentrates upon its
current products or services by launching it in new market segments. This is an effective
opportunity for company to grab large area by maximising its business (Murray, 2013).
Herein, risk is high in comparison to market penetration. When organisation implement
thus types of strategy then it has to add various new distribution channels for
concentrating on geographical market and also has to adapt various policies regarding
prices. For example: Norsk European Wholesale Limited can attain many opportunities to
rise image of the brand as well as market reputation between consumers. Company
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compare its techniques with its rivals. It is effectual and flexible as this concentrates upon
the value of clients. In case services do not meet with requirements of the consumers then
this will not assist to obtain success into marketplaces.
 Diversification: It is the last strategy of the Ansoff's growth matrix. This is considered as
a riskier from all the above one. In this new products are introduced into new market
segments. This develop an opportunity for organisation in order to enter new marketplace
as well as acquire more profitability through introducing new products by examining
consumers demands. This need a more funds to execute a business into new market. For
example: Norsk European Wholesale Limited can utilise this strategy for attaining
effective competitive level advantages. Respective firm can obtain contracts to facilitates
technical and specialist services to users for rising its services demands.
Herein, Norsk European Wholesale Limited is adapting the diversification strategy in its
company in order to expand their business in another area by providing standard quality services
for grabbing the attention of users. It will assist the respective firm in appropriate examining
market due so it will be simple for their manager to know about the requirements of the clients
effectually. Also the diversified services will be improved as well as offered to consumers. It will
satisfy the customers requirements in successful manner that will outcomes in acquiring
competitive advantage to firm.
By adopting diversification strategy Norsk European Wholesale Limited can get clear
idea regarding strategy and risks. Also, grow their business operations and can earn more
profitability. Moreover, it offers an opportunity to them to tap into and own an undeserved
market or uniquely differentiate their firm from competition. The consequences of not adopting
another remaining strategy are it can not able to develop expensive products. Due to more risk it
can not leverage various firm's existing offerings and so on.
TASK 2
P3. The potential sources of funding available to businesses and its benefits and drawbacks
Company required funds for implementing the activities of the business appropriately to
operate its business for longer period. In case they do not has sufficient funds then this will
become tough for firm to run its enterprises into marketplace (Ravadanegh and et.al., 2016.). In
order to accomplish the work effectually, company has to rise finance from various sources. For
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the expansion, company is having £ 25000 and rest of the funds they have to raise from effective
funding sources. Some ways are mentioned below:
Bank loan:
This type of funds sources are utilise by different company for raising the firm finance.
Also this is an easiest as well as common methods to accomplish the needs of the finances. In
respects of banks, the government of UK have various regulation for those who are initiating
new enterprises. The firms such as Norsk European Wholesale Limited can utilise bank loans to
raise funds at minimum interest rate for implementing its operations effectively. There are many
financial institutions that facilitates bank loans to small company as firm societies and many
more. Benefits: Bank loans are generally legal as well as fix where Norsk European Wholesale
Limited required to do payments at fixed interest rate to banks and financial institutes.
This provides tax benefits, retained profits and is cost effective also facilitates flexibility
etc.
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Sources of Funding
Bank Loan
Crowdfunding
Equity Funding
Family and
Friends
Angel Financing
Bank Loan

 Drawbacks: This type of funds sources has fixed interest rate so firm do not decrease or
increase it. Herein, Norsk European Wholesale Limited has to make payments either it is
in profits or loss into its enterprises. It includes irregular amount of payment, repayment
burden and many more.
Crowdfunding
This is the financial source which is utilise to borrow less amount of funds from more
number of individuals for obtaining finances for new business organisation (Rigas and Nawar,
2016). This is the good sources for company those has more networks as well as maintain trust
and loyalty before initiating business. This enhances capital by utilising social networks through
asking them for funds contribution on its projects. It assist Norsk European Wholesale Limited
to raise finance with the help of different websites such as OzCroed, pozible etc. Benefits: It is a simple way to enhancing funds without any types of charges or interests.
Investors can capable to examine the progress of the firm that assists in stimulating brand
by its networks. Through this method Norsk European Wholesale Limited can become its
loyal customers.
 Drawbacks: It does not protect the ideas of firm with patents and copyright. Company
also obtain rewards and returns which demonstrate that it is facilitating more to business
for investing.
Equity Funding:
Expansion as well as growth need more finance in their execution. One of the effective
sources of raising finances is equity that has to be considered by management (Wang And et.al.,
2013). In this respects, association has to issues some share at market by which equity funds can
be organised. This provided them an option to raise finance from appropriate sources and
dilution is high. Benefits: The benefits of this types of sources is that there is no repayment for extra
money amount. Also, no interest is taken against lend money that provides them an
option to perform things effectively as well as not more obligations.
 Drawbacks: Whenever enterprise deals with individuals of outside surroundings its
control get weak. Therefore, specified power reduced while taking decisions regarding
management.
Family and friends:
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