Developing a Growth Strategy for Norsk European Wholesale UK

This report provides a comprehensive analysis of growth strategies for Norsk European Wholesale, a UK-based wholesale company specializing in import and export products. It examines key considerations for evaluating growth opportunities, justifying these considerations within the organizational context using frameworks like Porter's Generic Model and PESTEL analysis. The report evaluates growth opportunities through Ansoff's Growth Matrix, assessing associated risks and mitigation strategies. It also explores potential funding sources, discussing their benefits and drawbacks, including bank loans and overdraft facilities. Furthermore, the report touches upon business plan development, collaboration strategies such as vertical and horizontal integration, and exit strategies, offering a holistic view of planning for growth. This document is available on Desklib, where students can find a wealth of study resources.

Planning for Growth

Table of Contents
Introduction................................................................................................................................3
Key considerations for Growth options.....................................................................................4
Sources of Funds and their Implications to the Business...........................................................8
Business Plan...........................................................................................................................10
Exiting Strategy........................................................................................................................14
Conclusion................................................................................................................................16

Introduction
Every business organisation operates for the procurement of lucrative gains for their
company. The idea of ‘Growth plans’ for a business organisation plays an important role in
the business companies. This is an important strategy that is undertaken by a business
organisation. It ensures that the business organisations work in compliance with the
objectives that are stated in their organisation. This also helps them to keep a track of their
expenditures and the growth of the monetary gains in their company. Therefore, every
business organisation works with the idea of maintaining the profitable gains of their
company.
The study will discuss the various growth strategies in reference to the wholesale company
‘Norsk European Wholesale’. This company is situated in UK and specialises in the sale of
export and import products and services. The report will emphasize on the implementation of
viable strategies for the growth of the company. It will also discuss the growth of the
wholesale company the use of important analytical frameworks that would contribute to the
growth of the company. Being a mentor and working for the strategic planning department
the mentor will incorporate a business plan for the growth of the wholesale company.

P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context. (L01)
Key considerations for Growth options
The idea of ‘Growth’ plays a significant role in the business organisation as it leads to
sustainability and an increase in the profit of the company. Norsk European Wholesale is a
company which specialises in the sale of export and import of goods and services. The
competitive advantage of a company is an important strategic plan that favours a company
to produce goods and services at a much lower price (Senge, 2014). The competitive
advantage is an important for the growth of a business company s it allows the company to
operate in a rational manner. The wholesale company can also make innovations in its
transportation and logistics services for the growth of the company (Christopher, 2016). The
company should set its strategic goals for the improvement and growth of the company. The
company can integrate the utilisation of’ Porter’s Generic Model’ to comprehend the
strategies that would lead the company to procure lucrative gains for the company. The
company can make the use of the Porter’s Generic Model as it portrays the profitability and
position of the company. The company can also make the use of the Product Life Cycle
(PLC) for the growth of its business operations (Wang, 2016).
There are a number of growth strategies that are prevalent in the business organisations. The
business organisations can make the use these strategies for the growth in their company.
With the integration of the Porter’s Generic Model’ the company should integrate enough
resources to procure a competitive standing in the company. The Porter’s Generic Model
emphasizes on the sustainability of the company through cost leadership, differentiation and
Focus (Tansey et al., 2014). The company can integrate the use of this model as the basis of
improving the competitive advantage of their company. The company deals in the sale of
exports and import products. Therefore the company is capable of gaining a competitive
advantage in the business of exports and imports. The company’s delivery portals make the
company capable of procuring lucrative gains. Therefore, according to Porter’s Generic
model the company will be able to set competitive advantage in the company. According to
Porter’s Generic Model, the company consists of a diverse number of resources to meet the
demands and requirements of the company. This model also shows that the company is
competent to have a competitive advantage in its delivery options.

The growth of the whole sale company can also be determined by the use of the PESTEL
analysis to highlight the favourable conditions that are prevalent for the proper growth of the
business organisation. The PESTEL Analysis will measure the significant factors that should
be taken into consideration for the growth of the business organisation (Grant, 2016). A
PESTEL analysis is conducted for the company to comprehend the opportunities that exist
for the growth of the company in UK
Political: Being a wholesale company the company would be able to operate in accordance
with the political conditions that are prevalent in the United Kingdom.
Economical: The wholesale company will be able to operate efficiently if the company is
able to operate in terms of the economic conditions of the company. However, governmental
factors can lead to some lows in the company.
Sociological: With the increase in the delivery packages the company will be able to cater to
the social aspects that are prevalent in United Kingdom. This would lead to an increase in the
lucrative gains of the company.
Technological: The Company can upgrade their technology to cater to the needs of the
individuals who work in accordance with individuals in the United States. However, with the
advancements in technology, the company will be able to operate efficiently and procure
market gains for the company.
Environmental: The Company should take into consideration the environmental factors
while planning growth ideas for the company. They could deliver ecological products and
services to its customers.
Legal: The Company can also work in accordance with the legal laws of the country. In order
to have a better sale of its products and services in United Kingdom, the country should stick
to Consumer Right Protection Act (Deresky, 2017).
Justification
The company can make the utilisation of these business growth options to increase the
lucrative gains of their company. There are opportunities for the company to expand its
business on an International basis. The company can integrate the application of Porter’s
Generic Model to gain a competitive standing in the business organisation (Belton,2017). The
company can integrate the idea of cost leadership and deliver their products and services at a

lower price. This would make the company a low cost producer and also help in the growth
of the company .The company can also include the BCG Matrix for the growth of the
company. This matrix could boost the company to function efficiently and also help them to
improve their transportation and logistics activities.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
The company ‘Norsk European Wholesale’ can integrate the application of the Ansoff’s
Growth Matrix to determine its opportunities for growth in the market. The ‘Ansoff’s
Growth matrix comprises of the four main pathways to the growth of the company which are
known as ‘Market Penetration, Market Development, Product Development and
Diversification’ (Gurcaylilar, 2018). These can be used by the wholesale company to attain
a competitive edge in the market. The market penetration strategy emphasizes on the sale of
the existing goods in the market. The risk associated with the use of this strategy is less and
focuses the goods that the market is acquainted with. The Product development strategy
comprises of a medium risks and involves the sale of new products in the market. The market
development strategy also comprises of fewer risks and makes the sale of existing products in
new markets through a different distributions channel. Diversification comprises of a high
risk as it concerns itself with the sale of new products in the new market. Therefore, the
wholesale company can make the use of the model for the better growth of the company. The
company can indulge in the application of the development of their transportation services for
the better delivery of products and services. They have the opportunity to improve their
delivery of the imports and exports to the customers through the adoption of advanced
technology. They could upgrade their technological advancements to procure better market
targets and to increase the customer base of their company.
Risks associated with the use of this model
There can be risks that could be associated with the utilisation of the Ansoff’s Growth Matrix
model. The risks that could be encountered by the utilisation of these models are that the
market might not be able to go through the process of development in its services (Reason,
2016). It might also lead to uncertainty with the number of risk that might be prevalent in the
market.
Mitigation of Risks
The risks that are identified in the wholesale company can be mitigated by the authentic
identification of the specific risk. This could be resolved by the use of Market Penetration
through the use of this marketing technique (Nagle, 2017). This will further help the company

to improve on its transportation activities. The company will be able to function smoothly
and effectively through the integration of a proper and authentic model.
Collaboration
The wholesale company known as ‘Norsk European Wholesale’, can work in collaboration
on a partnership basis or expand its business operations globally. The company can integrate
the use of vertical integration and horizontal integration to attain a profits for the growth
of the company. The vertical integration makes the use of the supply chain to gain control
over the entire industry (Rothaermel, 2015). The horizontal integration is used to acquire a
business line and to eliminate competition (Al-Fuqaha et al., 2015) these competitive
strategies could be utilised by the company for the growth of the market. However, working
in collaboration could also result in some negative drawbacks for the company. It could lead
to conflicts in the working style of the individuals and could lead to major problems for
making decisions for the growth of the company. The benefits of collaborating with
potential business organisations are that the there would be better communication and a
stronger workforce. Therefore, the company can make strategic plans on a joint or
collaborative basis and increase the profits of the company.

P3 .Assess the potential sources of funding available to businesses and discuss benefits
and drawbacks of each source. (LO2)
Sources of Funds and their Implications to the Business
Funds are considered as one of the most important elements of business. Lack of funds
creates problems for the companies to develop and improve business operations. There are
different sources by the help of which the small and medium enterprises are able to make the
company to raise finance for the development of the company. The different sources of
finance are evaluated as follows.
Bank loans
Bank loans are considered as one of most effective source of the raising finance for
development of business operations especially for improvement of small-scale organisation.
This source is very commonly used by business organisations. There are large number of
commercial banks and financial institutions that provide short-term as well as long-term loans
to the business organisation for developing the business operations (Duarte et al., 2017). The
banks provide low interests rates loans to the small scale employers at reduced interest rates
for promoting and encouraging the employers to improve the business operations and
contribute to the economic growth and development in UK. One of the most important
drawbacks of the source is that it requires some property of the loan takers to be maintained
as security. Hence, NORSK EUROPIAN WHOLESALE is required to provide some assets
as security to the lenders and the small and medium enterprise is not supposed to use the asset
provided as security.
Overdraft Facility
Overdraft facility is provided by commercial banks to its customers having a significant
amount of money in the current account of the bank. The banks allow the businessperson
having large amount of money in the bank’s current account to withdraw money in excess of
the balance exists in the current account (Calabrese et al., 2017). Overdraft facility is
considered as one of the most effective source of funding since it provides funds to a large
amount the business organisations for promoting for development of business operations.
However, the drawback of the source is that it charges a high interest rate from the people
availing the facility of overdraft in order to raise finance for improving their business
activities and at the same time demands for timely payment of interests. This can create a

negative impact on the financial growth of business organisations operating at small scale
such as Norsk European Wholesale.
Crowd Funding
Crowd funding is one of the most effective and innovative source by the help of which small
and medium enterprises can be able to raise financial resources (Pichler, 2016). Crowd
funding is very helpful for Norsk European Wholesale to raise financial resources in small
amount from public. Funds by this source are generally raised over Internet. It is considered
as very effective source for Norsk European Wholesale to develop its business activities
successfully. Nevertheless, funds by crowd funding cannot be raised at the time of
developing large business projects, as because this source is applicable for raising a small
amount of money and development of significant business projects require huge cost
involvement. Therefore, Norsk European Wholesale cannot use this source when working
with huge business projects because it will be very difficult for the organisation to meet
desired targets.
Peer to Peer Lending
The peer to peer (P2P) lending is a lending technique of debt to individuals which further
ensures the borrowing of money (Wei, 2016). This method does not include the financial
intuitions to acts as catalyst for the growth of the company. This type of lending debts is also
termed as social lending or crowd lending. The company ‘Norsk European Wholesale’
could make the use of this funding strategy for the better growth of the business organisation.
Angel and Venture Finance
The angle or venture finance is another funding method which adds to the important funding
procedure in the company. An angel investor provides the significant capital for the growth
of the business company (Hornuf, 2016). The angle investment that occurs in a business
organisation concerns with the funds that are put in by an individual. The Venture capitalists
usually depend on providing fund for the start-up of a business organisation (Drover et al.,
2017). These funding options could be beneficial for a company who plug into the start-up of
their company.

P4. Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.
( LO3)
Business Plan
Information of the company:
Norsk European Wholesale provides a flexible and supportive approach across all express
and distribution requirement. They are operating in the sector of wholesale export and import
services, warehousing, return management and development, customisation, labelling and
sorting. The company is currently having 6 different offices across the UK with different
service approaches.
Business plan:
A business plan is an essential key to the businesses throughout their existence. A successful
organisation like Norsk European Wholesale is reviewing their business plan regularly to
ensure the fact that they are meeting the goal of the organisation (Norsk.global, 2018). A
successful business plan includes the following points:
1. The aim and objectives of the market.
2. Operational information
3. The financial information and financial charts which includes profits, loss, cash flows and
sales
4. Target of the business
5. An exit plan which defines the departure timing.
The business objectives:
The business objectives of Norsk European Wholesale are as follows:
a. To expand their import and export business in the global market.
b. To offer services at lower price
c. To create a bond of trust with the customer
d. To implement technological equipment to maintain the market position.

Mission and vision of the organisation:
Mission:
The mission of Norsk European Wholesale is to become a leading brand in the import and
export business and deliver and extended range of professional services and maximize the
efficiency of their core functions (Norsk.global, 2018). The mission of the company can be
accomplished by developing a well structured business plan and adhering onto the business
plan.
Vision:
The vision of the company is to develop a strong bond with customers globally and extend
their operation across the world.
Opportunities:
The company is currently having 6 different offices across the UK with different service
approaches. Hence the company is situated in the centre of UK, therefore there are several
developmental opportunity for the company such as it is easy for the company to analyse the
requirements of local customers and as per their demands they will establish few more
operational sectors in this process.
Values and ethics:
The company should add values such as innovation, customer service, and reliability. They
will include some ethical values which are more acceptable, desirable and beyond
compliance with regulations.
Expectation of stakeholders:
The company must identify some important stakeholders in the course of its planning. Once
the identification is done the company will begin the business plan as per their expectations
and demands. Each stakeholder concerns the fact that the business plan will meet the business
objective.
Entrepreneurial strategy:

In order to develop the business plan Norsk European Wholesale follows these steps:
Description of business idea:
A proper idea of the business needs to be discussed in the first stage. The global trend in the
industry needs to be followed in this process. In order to maintain the market place in the
global market, the company needs to adopt and develop an innovative and profitable idea.
Target Market:
The target market of the company can be classified by the market segmentation, and
procedure of expanding their business from local market to the international market. The
company should follow the market segmentations such as demographic market segmentation,
psychographic market segmentation and behavioural segmentation.
Structure of ownership:
Shareholders and investors are two essential pillars of development. The company has
planned to expand their business globally; therefore they need some shareholders and
investors in this process so that the organisational structure remains unaffected.
Product offering and pricing:
A subscription option needs to be developed by the organisation. There will be normal
subscription and premium subscription for the customers. Customer can choose their service
according to their budget and plan. This will enhance the business globally and also effective
for the customers.
Strategic framework
It has been revealed that, Norsk European Wholesale has wider scope to expand their
business globally. In this process, they need to adhere their strategic framework with the
organisational objectives of current business plan (Norsk.global, 2018). Apart from above
discussed points, it can be observed that, Norsk European Wholesale is planning to enhance
their market share in order to maintain their place in the global market (Norsk.global, 2018).
This process may include subsequent amount of risks in this process but they need to follow
some regulations as well.