Oak Cash & Carry Ltd: Planning for Business Expansion

This report provides a comprehensive analysis of growth strategies for Oak Cash & Carry Ltd, a grocery trader in the UK. It begins with an assessment of expansion opportunities, utilizing PESTEL analysis to evaluate political, economic, social, technological, environmental, and legal factors impacting the business. The report then applies Ansoff's growth vector matrix to evaluate market penetration, market development, product development, and diversification strategies. Furthermore, it explores potential funding sources, including bank loans and crowdfunding, with their respective advantages and disadvantages. Finally, the report outlines the essential components of a business plan for growth, encompassing financial information and strategic objectives. The report concludes by providing a brief overview of business succession and exit strategies. The report serves as a valuable resource for understanding the complexities of business development and strategic planning within the retail sector.

Planning for growth

INTRODUCTION
In current era, it is much critical for a business establishment to meet the wants and
preferences of target people and create an efficient marketplace situation and gain aggressive
benefits to make improvement in the commerce. Development and success is a crucial factor and
it is a calculated commerce process which enables business people to frame strategy and plan as
well as monitor effective growth in their establishment. It provides permission to business to
assign their limited resources towards a focused effectiveness to adopt the change which are
arisen in specific business sector. For the completion of this assessment, Oak Cash and Carry Ltd
is the company which is considered. It is a grocery trader venture which was established in 2011
and is headquartered in Banbury, UK (Oak Cash & Carry Ltd. 2020). There are approx 60
employees who are employing the business establishment and them make their engagement in
operating the business of its in more amended form. This document will explain regarding the
key deliberation for development opportunity, diverse source of finances and their implication to
the commerce. furthermore, a business plan and different exit and succession alternatives for
commerce will also discuss.
TASK 1
P1. Assessment of expansion opportunities and justification of them
Development is an important aspect for a commerce that is crucial for organisation for
accomplishing the level of growth in term of increasing revenue and efficiency. The main benefit
of executing development plan and plan in the commerce is endure in the competitive
marketplace till long term period and gaining rivalry benefits. In Oak Cash and Carry Ltd, there
are diverse sorts of challenges and aggressive issues which influence the commerce of this firm
in particular sector (Plotnikov and et. al., 2015). The management of this enterprise can
considered quantum technology and analyse the impact which is formed by external
environmental factors. For this, the venture can utilise PESTEL analysis tool and the explanation
of it in situation of particular organisation is as below:
Political- This factor include administration policies and rules, government intervention,
political stability and instability, regulation, laws and legislation etc. In Oak Cash & Carry Ltd.,
there are diverse sort of changes arisen in governmental laws and policies due to Brexit which
influence the assessment making of firm. With the aim of overcome this influence, the
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management devises modifications in their present strategy and tactics. So that they can expand
an efficient place of work which can be effective and advantageous for attaining more
profitability from key commerce. In UK, Oak Cash & Carry Ltd can gain recompenses from
unfluctating character of UK administration that assist the firm to make change in its entire
arrangement and enlarge its market share in appropriate way.
Economical- This feature consider economic plan, interest rate, inflation and reduction,
employment and unemployment rate, currency rate and many more. In Oak Cash & Carry Ltd,
cause of downturn condition in the country, the company was making growth and modifications
in its all purposeful areas (Kumar, 2016). So that they can get over the influence of slump that
impact the profit margin and efficiency of the corporation. To minimise this unfavourable
influence of depression, the management can make changes in its pricing plan of actions because
it will help in developing consumer support and efficiency.
Social- This factor considers needs, preferences, taste & predilections and demographic
components, marketplace development etc. In present time, there are diverse sort of
modifications arisen in customer’s demands and preferences which influence the sales and profit
margins of Oak Cash & Carry Ltd so that it can compact with this sort of difficulty, the
management can make modernization and formation in its goods and customer’s demands. It will
assist in satisfying target audiences’ demands and increasing sales and revenue of business
enterprise.
Technological- In present time, there are diverse sort of technical creation arise and occur.
There are diverse kinds of technologies such as technical advancement, artificial intelligences,
research & development and many mort that are important to create expansion in commerce. In
particular firm, the management can execute advance machinery in form of promoting products
and facilities through utilising social media, web promotion and many more (Crow, 2015). It will
enable in maximising number of target people and profit margin of business firm.
Environmental- This aspect include those components which are linked to environment and
affect the business organisation. In considers environmental act, pollution act, carbon emission
and footprints, wastage and recycling actions etc. In UK, there are several fasten activities are
considered by the government accordant to the environment act 1995, in context of protect
environment and surroundings. So by considering all these acts and regulations, the management
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of respective firm can attract range of individuals and develop its business process and
operations.
Legal- It includes different kinds of laws and rules which are devised thrugh the national
authority for appropriate and adequate business operations. In considers different laws and acts
as employment law, health & safety act, consumer protection act and others. In retail industry,
there are diverse sort of issues are arising due to people who want to avoid tax so they use illegal,
transport of goods and facilities (Lê and et. al., 2016). So it occurs numerous problems for
business as well as affects it in unfavourable form. By considering all the laws and legislation,
the management of particular venture can run in flourishing form and develop its profitability
and efficiency.
PESTEL analysis is an important technique which is greatly used by companies to
analyse the impact of outside components on commerce operations and actions of the enterprise.
To analyse the resolution of the PESTEL framework aspects, rivalry advantages such as
capabilities and resource etc, can be acknowledge with the use of Porter generic strategy that is
as:
Cost leadership- Within this aspect, the firm is to have an option of low cost process as per
the commerce industry. In this cause of cost reimbursements supported to the arrangement of
business sector. Retail is a big and big area so to make focus on the cost prevention is most
important. For instance, Oak Cash & Carry Ltd is a trade organization so it is crucial that it
create centre on its financial plan and value of commodities.
Differentiation- In it, the organization is majorly thought and plan regarding to provide
something exclusive in retail industry during carrying element for a buyer to purchase. In
particular division, exclusivity is obtained when the commerce disquiet of the firm obtains cost
in process of commodity’s excellence (Colantoni and et. al., 2016). The administration of the
business can make separation in goods and facilities according to target people needs and
preferences. This will be efficient for the firm to get rivalry benefits from market and developing
productivity and profitability if the business enterprise in improved manner.
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Ansoff Matrix
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It is a development model that is framed through Igor Ansoff so that companies can utilize
development plans to create growth in their business. The description of this conception in
context of Oak Cash & Carry Ltd is described as below:
Market penetration- It is first and foremost development plan of this conception. By
accepting this tactical alternative, the management of particular firm can build development in its
sales and revenues through making improvement in its pricing plan of actions and advertisement
techniques. There is no threat and risk as current goods and facilities are launching in to present
marketplace. It will also enable in maximizing number of consumer.
Market development- In this development option, the management of the company can
provide its current goods and facilities in to new marketplace where it is not running
(Pothukuchi, 2015). This plan is hazardous because products are accessible but marketplace is
new so it is not obvious which individual of new marketplace will like them or not. With the
assistance of this tactical tool, the management of Oak Cash & Carry Ltd can make growth in
revenue and efficiency of enterprise.
Product development- By including this development option, the administration of
particular firm can introduce new goods and facilities into current market with the aim of
satisfying their demands and preferences. This approach is more uncertain in compare to
marketplace growth as new goods are commenced in to current market so it is not assure that
individual will show their interest regarding them or not. It will help in increasing number of
consumer and efficient of goods and services.
Diversification- This tactical alternative is extremely hazardous as the company introduce
new commodities and facilities in to new marketplace and it is not understandable that people of
new market will like new goods and products will also capable to satisfy their demands. By
utilizing this plan, Oak Cash & Cash Ltd can make enlargement in its commerce through making
diversification in similar commerce industry or developing commerce in to new sector.
It has been analyzed from preceding content that more expansion is an efficient alternative
for particular firm organization to make development in its business (Keough, 2015). By
accepting this strategy, the venture can start and introduce its business in Asian and African
marketplace; it will assist in getting rivalry advantages.
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TASK 2
P3. The potential source of funding available to business.
There are various sources of funding in which business may raise their funds in order to
operate the business in successful way (Egidi and et. al., 2020). Moreover, some of the source of
funding arte described below in respect of Oak Cash & Cash Ltd.:
Bank loans: This is vital source of finance from which teh firm may lends financial value.
Moreover, it is considered as the debt where a lawful contract has been formed among
consumers as well as banks. In addition to this, there are diverse forms of loans like grant short
as well as medium term loans which are refund into equal amount.
Benefits: This source of fund is much flexible as well as loan interest can be fixed for
particular period so the lenders have information related the repayments at end to end as loan is
not fully paid.
Drawbacks: In few cases, loans are secured related to business assets or personal passion.
Additionally, the interest rate for secured loans can be low but assets might be at risk in
circumstances of when debtors are not able to pay the particular amount.
Crowd funding: This is considered as a type of source of funds in which individuals
borrow funds from its family, friends, customers as well as particular investors (Faraji, Hashemi-
Dezaki and Ketabi, 2020). Moreover, this may be utilise of mid resource amounts form number
of respective to finance a new business organisations.
Benefits: This is a simple and also instant from to borrow finance as well as they do not
have to pay any type of interests charged. Based upon the crowd funding procedures, person of
business obtain funds from their much loyal as well as faithful clients.
Drawbacks: The key drawbacks of respective source of funding is that when targets
amount is not accomplished thereafter potential funds obtain its finance back as well as business
goes way into empty handed.
Based upon the above discussed sources of funds, it has been determined that the Oak Cash
& Cash Ltd. Management may raise finance from crowd funding types as in this they are not
capable for paying interest purchase repaying the borrowed funds into pre-determined time
period.
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TASK 3
P4. Design a business plan for growth that includes financial information and strategic objectives
Business plan:
This is considered a the written description of future of enterprises as well as lays out
written document from financial, operational as well as marketing perspectives (Jensen and
Creinin, 2020). In addition to this, the key intent of business plan is to determine the effectual
new ideas as well as scope. Oak Cash & Cash Ltd. It is undertaken as renowned firm that is
further expanding their business with their present products or services into South Africa.
Furthermore, the plan of business in respect of this with the intent of enhancing profitability as
well as productivity is described below:
Overview of entity: This is known as one of the small and medium size grocery firm
which perform their business into retail sector (Nikolopoulos and et. al., 2020). Moreover, this
was developed in year 2011 as well as having headquarters is in Banbury, United Kingdom. In
addition to this, there is around 58 staff who are facilitating its contribution to operate the
business of respective business. Also, they facilitate a range of products into bulk for retailers,
offices and local business.
Mission: The key intent of Oak Cash & Cash Ltd is to provide quality offerings for their
customers into provided time durations.
Vision: The vision of entity is to perform their business in lawful way as well as develops
value for customers with intent of obtaining loyalty for longer periods.
Objective: The SMART objective of Oak Cash & Cash Ltd is described underneath:
 For doing increment into business sales by around 8% into future 9 months.
 To enhance the share as well as revenue of entity by 5% in further 7 months.
Source of investment: This is considered as that areas in which firm may borrow funds from
financial institutions for operating the business such as angel investors, bank loans, crowd
funding and many others (Seo and Cho, 2020). Additionally, few source of investment in which
firm such as Oak Cash & Cash Ltd may raise fund for performing their business. Along with
this, it would aids entity to develop business expansion as well as doing improvement into their
sales as well as profitability margins.
Action Plan: This is undertaken as the report that incorporates whole steps which aids them
to accomplish the particular intent as well as goals. Moreover, the key intent of action plan is to
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specify overall assets which are required for attaining the aims, developing time durations for
particular task as well as project to be completed and ascertain required assets. In addition to this,
Oak Cash & Cash Ltd. would formulate action plan for introducing their business within new
marketplace so that this may perform it in appropriate way. During expansion of business, the
administrative would accumulate information related to consumers’ requirements as well as
desires so that it may facilitate products based upon them. In respect of marketing as well as
promoting their commodities so they may utilize social media tools for publishing its products
which would be helpful in creating awareness among audiences. Also, this would aid to attract
them for buying products as well as undertakes benefits of services.
Budget planning: This is considered as the fiscal plan which undertakes convinced gross
sales volume as well as profitability, resources abstraction, liabilities and many others (Su and
Qian, 2020). In respect of Oak Cash & Cash Ltd, the administrative may formulate a budget
document for their practices of business so that they may has information related to finance
which is utilized for allocating to deliver business expenses of business growth as well as
growth.
TASK 4
P5. Assess exit and succession options for a small business.
There are various plan of action which is effectively for performing precise numerous
objectives as well as strategies which may be undertaken through management of entity to utilise
a succession plan (Syssner, J. and Meijer, 2020). In respect of Oak Cash & Cash Ltd, their
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management may ascertain various types of succession as well as exit options which are
available within marketplace. Additionally, it also utilizes effectual tactics in order to attain
objectives of firm in appropriate way. So, some of the options are discussed below:
Merger and acquisition: This represents the activities of integrity as well as calculating two
firms within which the key intent of entity is to attain their objectives. Moreover, the acquisition
is considered as practices where one firm in undertaken upon others. In addition to this, the
merger and acquisition may provide the growing management and a competency for improving
share market without performing epochal huge lifting.
 Benefits: Because of merger or acquisition, they aids firm to enhance the market share as
well as size into new geographical areas and market. Also, it is helpful in gaining
competitive advantages. Furthermore, this is advantageous for gaining profitability,
implementing business and developing improvement into shareholder value.
 Drawbacks: When business adapts respective option thereafter this develops decrement
into particular sector as well as enhancing procedures of products which impacts the
bargaining power of customers. Furthermore, this also develops reduction into
opportunities of job which instantly impacts the economical development of country.
Winding up: This may be adapted through entity when entity become failure as well as is
unable for emanation their vulnerability. Moreover, this may be associated with liquefaction
procedures a firm within that their key intent is for transaction off stock, pay off creditors as well
as hand out standing resources to their shareholders (Wellmann, and et. al., 2020). In addition to
this, it is considered as legal structure which developed through article of associations as well as
corporate laws. Along with this, it is segregated within two parts that are voluntary as well as
compulsory. Furthermore, the investors of the business may novice voluntary winding up with
proclamation of passage as this assisted in case of solution as well as business failure. While on
other hand essential action of winding up court needs court order when entity are not able to
refunds the borrowed finance as well as various gaining lawful actions in respect of funds
owned.
 Benefits: The key benefits of respective option is that when entity have been liquefied as
well as marketing of their assets properly for creditors thereafter leftover unguaranteed
possession of business which is not much impersonally secured would be written off.
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 Drawbacks: The liquidation express is related to termination of firm as well as employees
that are occupied through business would become successful for working as well as being
anxious for seeking elsewhere. In addition to this, based upon its service dimension into
specific business, it can become competent for declaring the statutory representativeness
that pay pursues its dismissal.
Therefore, from the above mentioned options merger & acquisition is appropriate option for
Oak Cash & Cash Ltd. as aids them to enhance the market share as well as size into new
geographical areas and market. Also, it is helpful in gaining competitive advantages.
Furthermore, this is advantageous for gaining profitability, implementing business and
developing improvement into shareholder value.
CONCLUSION
As per the above report, it has been concluded that Growth and success is a crucial factor
and it is a strategic business process which enables business people to frame strategy and plan as
well as monitor effective growth in their establishment. For attaining the growth, firm may
observe the affects of external atmosphere factors upon practices of the business. In addition to
this, with assistance of Ansoff matrix, it may execute strategic development options for its
success. Moreover, there are various sources of finance as well as through adapting them
business may perform their operations in appropriate manner. Along with this, business plan is
helpful for entity as it provides information as well as directions to management of firm for
taking appropriate actions to sustain for longer duration within competitive marketplace.
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Online
Oak Cash & Carry Ltd. 2020. [Online]. Available Through: <
https://www.bloomberg.com/profile/company/7674319Z:LN>.
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