Oak Cash & Carry: Strategies for Growth and Funding in the UK Market

This report analyzes growth strategies and funding options for small and medium enterprises (SMEs), using Oak Cash & Carry, a UK-based company, as a case study. It explores growth opportunities through frameworks like the Boston Consulting Group matrix, GE/McKinsey matrix, and Ansoff's growth matrix, examining market penetration, product development, and diversification strategies. The report also identifies various sources of funding available to SMEs, including angel investors, bank loans, and crowdfunding, providing a comprehensive overview for business expansion and financial planning. The report includes an overview of the company, an evaluation of growth opportunities, and a discussion of funding sources. The report concludes with a discussion of business planning and succession/exit strategies for small businesses.

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Evaluation of growth opportunities.............................................................................................3
Sources of funding.......................................................................................................................8
CONCLUSION................................................................................................................................9
PART 2............................................................................................................................................9
Introduction..................................................................................................................................9
Business plan...............................................................................................................................9
Succession or Exit Options for Small Business Organisation with Their Advantages and
Disadvantages............................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Growth refers as a process of improving the capabilities of the company in term of
accomplishing profitability and effective outcomes of the corporation operations. To gain high
growth in the business requires well-organized planning. The brief study is completely based on
the small and medium size corporation or enterprise which operates in London, UK Oak Cash &
Carry Pvt. Ltd. It is UK-based company which operates it’s business operations in retail sector.
It is a fastest growing small and medium enterprise which has established in UK. In this report
will discuss about different growth opportunities for SME which are available in the business
market.
PART 1
Overview of Company
Oak Cash & Carry is a UK-based small-medium enterprise which is engaged in non-
specialized wholesale products like food, beverage and tobacco and other retail services. in
addition it has wide range of products which offers in bulk for retailer, caterers and other
domestic businesses. it is among the one of the top emerging small-scale business which is
established in UK. It has own website such as www.oakcashandcarry.co.uk.
Evaluation of growth opportunities
There are various growth opportunities that are framed to improve business outcomes of
the company. Management of the Oak Cash & Carry analyses it’s growth approaches based on
the different frameworks like Boston consultancy group matrix, Mckensey matrix/GE. Ansoff
Matrix also apply to raise different growth opportunities for the Oak Cash & Carry.
Boston consultancy group matrix
It is a strategic tool that emphasize on strategic positioning of the company. With the
model Oak Cash & Carry enable to create positioning of the brand in the market. this framework
categorized business portfolio into four parts based on the firm attractiveness and competitive
positioning of the organization in it’s sector. The four quadrants projected are isolated in term of
dogs, cash cows, stars and question mark (Kazmi and Shin, 2017).

Dogs:
Dogs symbol denotes that such kind brands that has slow growth in it’s market as well as market
share which is quite low than it’s competitors. The market presence of the brand which is
covered in dog category is not effective in business nature and investors also avoids to invest
their funds for such type brand which does not have any profitability in the market. thus, such
kind brands posses’ low growth capability in the business market. Oak Cash & Carry do not fit to
this category as corporation poses’ highly demanding products and services which can lead high
growth in the market.
Cash cows:
All such brands that operates in potential business outcomes are covered into this
quadrant. But these brands unable to attract potential or heavy investments due to ineffective
business growth. In that state those brands affiliated with cash cow category can formulate
complete planning for growth to reach the stare category in the model. Boston consultancy group
matrix is framed those brands which are part of cash cow category can get good investment that
helps them to sustain in the business market (Han and Lin, 2017). However Oak Cash & Carry
has effective and profitable growth rate that prevent corporation to be part of this quadrant.
Stars
Stars category is generally operated in high growth industries. According to this category the
brands operates in this quadrant that posses’ effective growth opportunities due to high market
demands. The brands consider in star category enables to attract potential investors to invest high
funds in the organization to expand growth of brand in the business market. This category intel
inks to the Oak Cash & Carry because it is an emerging abruptly in the wholesale sector and
posses’ effective requirements in it’s market.
Question mark
Question mark brands contains very low market share and entertains loss in it’s market.
However these brands or corporations needs effective business practices to lead profitability in
their business. Oak Cash & Carry do not belong to this category because growth rate of the
business is quite high as well as demands of product in the business market.

Oak Cash & Carry operates in retail sector whereas it holds huge dominance in the form
of market share and demands. Retail sector is the fastest growing market sector among all sectors
which are affiliated with business environment. Oak Cash & Carry is a part of star category has
effective profitability and good market presence . So it has attractive market share rather than
other SME in the business market.
GE/McKensey matrix
It is an effective approach that influences multiple corporations in the business industry.
The framework is mainly focused on the investment decision-making process and it’s profit
revenue. It evaluates the investment decision based on competitive strength of business unit and
industry attractiveness.
Industry attractiveness
Industry attractiveness comprises numerous factors that enough to attract investors
towards company. These factors give huge contribution to make decision of all the investors
regarding investment of financial resources within organization. Factors are industry size,
profitability of the industry, infrastructure of industry, changes in demands, highly availability of
labour and market segmentation and others are major factors that helps organization to long run
and assists investors to take fund investment decision in the industry (Zihare and Blumberga,
2017). Overall factors of market attractiveness promote enterprises business activities and it’s
profitability in the business market (Tomlins and et.al., 2020). Oak Cash & Carry operates into
retail sector and has wide range of products which has high demand in the business market.
Small scale corporation enables to attract potential investors through heavy demand of the
products and high growth potential as well.
Competitive strength of business unit:
It is also an effective tool that promote decision-making process of investors. it contains
different factors that’s affiliated with the corporation in which sector it operates. Investors takes
decision of investment in a specific organization based on it’s profitability, customer loyalty,
brand positioning, value chain analysis, Vrio analysis, production flexibility and other factors
that improves market presence of the brand. Oak Cash & Carry Pvt. Ltd. offers it’s product at

affordable prices. It also focuses on customer satisfaction that supports to take competitive
advantage in the business market.
Oak Cash & Carry operates it’s business in retail sector and it is considered as fastest growing
coming among all small scale companies in UK which assists to generate high profit by
improving level of satisfaction in customer for the product. So, investors can easily take decision
to invest in Oak Cash & Carry (Valler and Phelps, 2016).
Ansoff’s growth matrix
Ansoff’s growth matrix is a framework that is designed to give different growth
opportunities which can lead success in the business. there are various strategic options that can
apply by organization to influence growth and market share in the business market.
Market penetration
It is a growth option that uses by organization to influence brand image in exiting market.
it is mainly focused on exiting products with exiting market and helps company to capture large
market share on it’s certain products. With this strategy organization can offer highly discounted
products to the user or customers and key value-added services that can influence customer to
buy products from it’s firm. For example, Oak Cash & Carry offers effective discounted products
in respect of selling old products to the customer. This strategy contains all exiting or old
products that have very less requirement in the market.
Product development
It is another effective growth option that is available for the organization. it is mainly
focused on new products in exiting market. With this approach organization allows to introduce
new product for influencing the growth potential and market share within exiting market. For
example, Oak Cash & Carry primarily conduct deep research of market so that enables to
understand needs and expectation of the customer for the products then launch new product in
the UK market. This approach supports organization to lead high satisfaction in customer for the
product and it’s services (Yin, 2016). It also assists to attract all new customers in the exiting
market.

Market development
It is another option, available for the organization that lead growth in the market. With
this strategy organization enters in new market with it’s exiting products so that can establish
good brand image in new market. This strategy mainly focuses on expanding business into
multiple country with it’s available products instead of new products. With this strategy
organization does not have to invest in increasing quality and profitability of exiting products
(Loredana, 2016). For example, Oak Cash & Carry can use this strategy to enter into new market
without investing high funds.
Diversification
This strategy focuses on new market along with new products. it is an effective approach
that can be prove profitable for the Oak Cash & Carry company. With this strategy organization
can expand it’s business by opening it’s new stores and can attract new customer with their new
launched products.
Oak Cash & Carry is one of the fastest growing company among small scale industry in
UK. Organization can use market penetration strategy for promoting the sales revenue of it’s
exiting products. Even it can use product development strategy as well whereas it can launch
new products in existing market which attracts customers to buy this new product.
Differences between Boston consultancy group (BCG) matrix and GE/McKinsey matrix
BCG measures brand based on it’s performance in the business market and also business sector
in which company runs it’s business operations. It includes two factors growth market rate of the
organization and it’s industry which is subcategorized into four quadrants based on the market
presence.
McKinsey/GE matrix: It posses’ different factors that permits organization to achieve
competitive advantage in the business market. it is used to frame different factors or elements
that assists company to achieve larger growth potential in the business market.

Sources of funding
The term of sources of funding denotes as the bases for the funding for new start-up
business and it’s operation as well as creates potential business infrastructure for the wide scale
operations. To understand objective of the source of funding will be use various paradigms
associated with this term for achieving strong business expansion and functional energy from
higher capital development. Oak Cash & Carry needs to build strong capital infrastructure for
introducing new products while capital funding supports to gain effective performance
parameters.
There are various sources of funding available for new start-ups business who has desires
to invest in expansion procedures. Oak Cash & Carry company seeks for effective sources of
funding so that it can introduce new product or services which meets customer’s satisfaction
level and in return generate high revenue as well as market share.
Angle Investors
There are potential business investors who seeks for investing their funds into new
businesses which are highly involved into large innovation operations and also has good brand
strength in the business market. The major advantage of the angle investors is that they are more
intelligent and talented and monitors business operations effectively. The major drawback is this
high involvement in business activities can impact business’s decision-making process and can
ignore functional strengths (Tsakalerou, 2018).
Bank loans
It is a legal financial operations supports and assists to promote new business effectively
in the business market by offering financial services as per demands. Oak Cash & Carry can use
this funding source to create strong profitability with strong capital in the business market. Bank
loans enables organization to develop strong working capital requirements so that it can put more
funds in running new innovation factors and new working operations as well.
Crowd funding
It is another source of funding whereas customers invest their money to buy market
shares to keep hope that they will get more funds in returns. It can be done through social media

operations and invests for leading new promotional factors parameters among people. Oak Cash
& Carry enable to attract large scale crowd to invest their funds into business by influencing
business expansion strategies among people.
Angle investors method of funding source is the best source for the Oak Cash & Carry because it
helps gain stronger business functioning as well as can gain super expertise on various business
operation from the angle investors (Mohajan, 2017). With this source organization enables
expand it’s business in other location except UK and can attain longer business goodwill in the
business market.
CONCLUSION
Oak Cash & Carry is affiliated with retail sector in which it ins considered one of the
major rapid growing sector among other small scale business due to heavy demands of products
in the market. Due to heavy demand and effective growth is categorized into star quadrant.
Organization has used product development strategy for improving it’s market share. Angle
investors, crowd funding and others funding sources can support to fulfil the financial
requirement of the busines.
PART 2
Introduction
Business plan is crucial for organization in retail sector as the demands so that enables to
improve demand of products in it’s market. It supports to improve the performance of Oak Cash
& Carry to achieve higher profit margins (Keelson, 2017). In the growth plan project will discuss
about exit strategies for Oak Cash & Carry to compete within market and declines risk.

Business plan
Executive Summary
The competition in the retail market is increasing by and by so it is essential for all the
business to change their strategies and tactics for influencing performance and can achieve
competitive advantage. In this plan will use some analytical tools to analyse internal and
external factors which can impact on organization’s revenue generation.
Business Idea
Oak Cash & Carry has invested into organic product development in it’s internal platform for
increasing it’s market share.
Vision
To invest more funds in sustainable products and increase quality of products and it’s services
which improves level of satisfaction among customer for the products and it’s services
(Cumming and Zhang, 2019).
Mission
The main mission of the company is to improve the sales revenue of new product by
enhancing customer engagement strategies and tools that supports Oak Cash & Carry to
compete in the business market for building good relationship with customers.
Business goals and objectives
 With the end of 2024 there is going to improvement in profit margin around 35%.
 Sales revenue will improve by 40% with the end of 2026.
 The market share will be increased by 30% with the end of 2025.
Situation Analysis
SWOT ANALYSIS
Strengths
 Oak Cash & Carry is very
friendly with customer trend
change for the products and
services which is major strength
of the company.
Weaknesses
 The competition is increasing
in it’s sector so it will have to
looks for skilful employees
who would be supportive fr the
company to take competitive

 It uses angle investors funding
source which helps to handle it’s
funds well and investment
makes company worth it
(Ponticelli and Alencar, 2016).
advantage in the business
market.
Opportunities
 Oak Cash & Carry has
opportunity to sell it’s product
through online marketing that
supports to improve selling
revenue of products in company.
Threats
 There are various threats that
organization can face while
operating it’s business
operation in the competitive
market and it can take away
the users or retailers. But
organization has some loyal
customers that can give better
standard to make brand
recognizable.
 Brexit interruption is also big
threat for Oak Cash & Carry.
Pestle Analysis
Political factors
There is numerus that has comes in the policies and legislation of country due to Brexit
which is important to be implemented time to time. When organization keeps flexibility in
policies as per the government change that supports organization to gain competitive
advantage and it can enable to generate high profit margin and market share on it’s new
products.
Economic factors
The unemployment ratio is decreasing in the UK country because right candidates are hired
for right job role. So it is great opportunity for the Oak Cash & Carry to recruit skilful
employee who can create creativity within workplace (Accornero and et.al., 2017). This
company has achieved good digital market presence through digital marketing which is

effective factor for company to be enable to reach to new customers.
Socio-cultural factors
UK has good technological performance and population of UK is highly updated for e-
commerce market which is great factor for the Oak Cash & Carry. It can aware it’s customer
about it’s new products which improves excitement in them for new product. In addition it
does not have to pay high cost on advertisement tools because it can use online promotional
tools to promote it’s products and services. these tools are cost effective as compared
traditional promotional tools.
Technological factors
There are various barriers that comes due to constant technological changes but Oak Cash &
Carry is retailing company so there has few issues. But it can overcome by keeping constant
changes in retailing technology (Gürel, and Tat, 2017). With continuous development in
new technology influence productivity and quality of product which fulfil demands of
customer in dynamic environment.
Legal factors
Heath and Safety law has imposed by UK’s government to protect employees from
discrimination, hazardous and maintains their wellbeing within workplace. So, organization
has taken health and safety measures so that individuals can give their best performance
within business.
Environmental factors
There are different measures that has been undertaken by Oak Cash & Carry which gives
better functioning and influences the reputation of the company in the market. So it has
taken sustainable product practices in the market that is going to promote the trust of the
retailers in the business as well.
STP Marketing Segmentation
It is the procedure of classifying customers or users into various groups for understanding their
demands, preferences and expectation so that enables to develop product or services
accordingly and improves level of satisfaction in them (Berbegal-Mirabent, Gil-Doménech
and Alegre, 2016). Oak Cash & Carry uses this market segmentation strategy to target it’s
specific markets which helps to meet it’s objectives over the time period. Organization targets

three market segments i.e. demographical, behavioural and psychological. This market
segment are further classified into subsegment such as demographical segmentation is
segregated customer on the basis of age, disposable income, education level and others. thus,
these are major segments that are targeted by Oak Cash & Carry to gain high market share and
builds strong customer base. Targeting
In prior phase determine all the customer segments in the busines market then targeting is the
second phase. Oak Cash & Carry targets on young generation who are more concern for their
health and needs such kind food which gives positive impact on their health (Simões, 2020). Positioning
It is the last stage that assist business to create perceived value for the brand and it’s product in
the business market. So Oak Cash & Carry requires to positioning it’s new products in
developed and developing market which creates value for the brand in customers’ mind.
Marketing Mix Price
Oak Cash & Carry is used skimming pricing strategy for better functioning in the business
market. Psychological strategy also follows by company so that it can make customer to pay
high cost rather than expectation. Place
It has increase online presence in the market with digital marketing strategy that factor
supports to achieve predefined objectives on time. Product
Organic food is a new product in the company which influence brand image as well as
productivity in the business market. it supports to improve purchasing behaviour of customer
in Oak Cash & Carry’s store. Promotion
Email marketing and discounts for loyal customer uses by organization to influence it’s new
products in the business market. Process
Oak Cash & Carry offers different type services like online delivery and traditional shopping
to the customer that supports to have better functioning within business.

 Physical evidence
Physical appearance of product or organization is essential for customer because it supports to
attract customer to visit in store or organization and develops effective market positioning of
the brand in retail sector. People
Oak Cash & Carry keeps fair treatment with employees and stakeholder so that individuals can
maintain their wellbeing with the brand (Wu and Li, 2018).
Financial plan
It is very crucial for the organization because it supports to achieve long-term and short-term
goals and objectives effectively. Good financial planning permits organization to evaluate it’s
internal and external economical factors that can influence the capability in achieving higher
profitability by creating budgets.
Start-up costs
All the expenditures that are incurred by Oak Cash & Carry in which comprises business plan,
R&D activities to offer better quality organic food and services for the customer. Start-up cost
also comprises marketing cost, employee maintenance cost which improves liabilities of the
company.
Basis Amount
Labour €8,00
Internet €1,000
transpiration €2,000
Total €3,800
Profit and forecast
It is the effective approach of evaluating financial position of the company that supports to
create strategies to grow market in precise manner. Oak Cash & Carry evaluate the income and
expenditures of the business to achieve higher economical profit with this approach. profit and
loss forecast approach estimates amount of net profit or loss of the business that can impact on
growth strategies.
Cashflow forecast
It is a type of financial report that is essential for the Oak Cash & Carry top identify all the

fund utilization and also analyse financial position of the company in the market. Balance
sheet is major part of financial report that is developed annually to identify the total assets and
liabilities of the business that influences decision-making process of Oak Cash & Carry.
Effective management information system is also good approach that supports to identify all
cost and influence quality of exiting products by covering all the costs.
Monitoring and controlling
It is very essential for the Oak Cash & Carry to control and monitoring all above activities
which are performed by employees so that achieves expected outcomes. the trend and
requirement of the customers are always shifted which causes changes takes place within
organization. To make change successfully in the company needs to follow proper plan and
applies benchmarking approach to supervise plan effectively. Thus, it supports Oak Cash &
Carry to maintain better functioning and will capture large market share in the business
market.
Succession or Exit Options for Small Business Organisation with Their Advantages and
Disadvantages
Every small sized business organisation such as Oak Cash & Carry needs to identify and
create a strategic contingency plan in the event that the business organisation's owners, investors,
shareholders decide that the time has come for them to exit the industries for personal or
professional purposes. But small sized business do not have to exclusively create their exit
strategies with the intention of departure, instead possessing an exit strategy can help define what
constitutes as success within small businesses such as Oak Cash & Carry. The exact method or
strategy for exit or succession depends significantly upon the type of business organisation that
wishes to depart from the operational industries. Hence, Oak Cash & Carry has the option to
choose from amongst a variety of exit strategies, each of which provide the ownership and
management of Oak Cash & Carry with distinct advantages and disadvantages such as:
Mergers and Acquisitions:
Mergers and Acquisitions can be used as an exit strategy by Oak Cash & Carry should
their owners or investors decide to merge with another organisation within the same market or
get purchased out by another larger business organisation. The advantage of this exit strategy is

that it can be highly profitable for the ownership of Oak Cash & Carry, as they have the option to
negotiate the prices which are suitable for them in exchange for Oak Cash & Carry (Morris,
Soleimanof and White, 2020). On the other hand, this exit strategy also carries its own
disadvantages. Both mergers and acquisitions can be quite a messy process as different
businesses generally find it hard to cooperate together. The business organisation that acquires
the operations of Oak Cash & Carry may just want to reduce their competition within the
operational industries and customer markets and may be planning on folding the operations of
Oak Cash & Carry in the future.
Keeping Business in Family/Friends:
This exit strategy can be used by Oak Cash & Carry if their ownership has gotten
attached to the operations of the and wish to pass down the operations of the business to their
next of kin or friends in order to exit the business's operations and be able to look after the
business. Advantages of this strategy is that it preserves the legacy of the business that ownership
has successfully operated for such a long period of time and also results in a seamless transition
(Lemley and McCreary, 2019). Contrastingly disadvantages of this exit strategy relate to the fact
that friends and family may not show the same amount of care towards business that the current
owners of Oak Cash & Carry do.
CONCLUSION
Based on the findings of this part of the report, it can effectively be concluded that for the
successful operations of a business organisation such as Oak Cash & Carry, it needs to create
and implement an effective business plan in addition to also identifying the exit strategies the
business can make use of within its operational industries.

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