Oak Cask & Carry: Expansion, Funding, and Exit Strategy Analysis

This report provides a comprehensive analysis of Oak Cask & Carry's potential expansion into the German market. It explores growth opportunities, considering affordability, tax policies, economic stability, and brand recognition. The report applies the Ansoff Matrix to recommend a market development strategy, leveraging existing products in a new market. It further examines suitable funding sources, including bank loans, debentures, and angel investors, weighing their pros and cons. Exit options like liquidation, acquisition, and merger are also discussed. The report outlines a business plan framework, incorporating SMART analysis, executive summary, company and product summaries, and market analysis, emphasizing the importance of adapting to German market characteristics and regulations. Desklib offers a wealth of similar documents for students seeking academic support.

UNIT 42 ASSESSMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1.Growth opportunities which the organisation consider in order to expand their business.......3
2. Ansoff Matrix.........................................................................................................................4
3. Funding and list of all funding sources....................................................................................5
4. Exit options for business..........................................................................................................6
5. Business plan...........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCE..................................................................................................................................9

INTRODUCTION
Business refer as the profit a non-profit entity, where the organisation engaged with different
activities which are commercial and professional practices (Frederick, 2021). Every organisation
look for the growth opportunities for which they consider several things to expand their business.
Oak cask and carry wholesaler organisation, locate in England UK. Report will going to discuss
the company’s expansion into the other European country which is Germany. following report
will cover the description of organisation need to consider when expanding along with pro and
cons of factor. It also discuss the Ansoff’s matrix and suitable funding sources along with its
pros and cons. It also discuss the exit succession options. It further describes the business plan
for the organisation.
MAIN BODY
1.Growth opportunities which the organisation consider in order to expand their business
Every organisation look for the better opportunity to expand their business for driving
better revenues and generating better results. There are many options which the organisation
consider in order to grow their business which are-
Affordability: It is the foremost things which the organisation consider as how much the total
cost it will take for expansion. As laying out of operation in the global market charges more,
operating, shipping and manufacturing charges. For the oak cash and carry company of they
come with the proper budget and Germany country’s market analysis then their expansion will

be affordable. But if they do not done the market research to set the budget for expansion then
they are not be able to successfully enter the market.
Tax and other employment policies: Every country have their different terms and regulations,
as some countries have strict regulations which impacts the business performance. For the Oak
cash and carry it is important to follow the Germany country’s tax and employment policy to
sustain in global market (O’Donnell and Dahl-Popolizio, 2018). Advantage of this factor as if the
company having a good follow of all regulations then they can easily import export their
services, but if the changes drives in policies will impact the business.
Economical and governmental stability: It is important for the company to ensure all the level
of risks are linked with the expansion, for this historical information also support to forecast for
limiting the risk. For instance if the government and economic condition of the Germany is not
stable then in such it is not possible for new business to sustain. Benefit of economic and
governmental stability will be as the governmental policies influences the interest rate, as in
lower economy rate business is able to increase their production to increase the revenues.
Brand recognition: Company always expand in the countries where they have little or no brand
recognition. Thus in such oak cash and carry also required to invest on the advertisement in order
to create awareness of their product and services. Benefit of this option as if the firm have better
recognition in international market then they are able to successfully develop their business. If
the company lacks in brand awareness internationally then it will impacts their whole
productivity (Kalogiannidis and Mavratzas, 2020).
2. Ansoff Matrix
Ansoff matrix refer as the strategic planning framework which helps the organisations to
devise their strategies for their potential future growth. Its stages are as follows:
Market development: This strategy is mainly focus on entering into the new market with
existing product. It is the most appropriate approach, its main benefit is as it enhances the
product and service quality also increases the revenue margins or develop company resilience.
But its drawback is at it associated with the major risks and also company have to face the
situation where they are at financial risk.
Diversification: In this there is new market and product is also new, it is like to diversifying the
services. In such it is businesses comes with proper strategy to introduce the new product. Its

benefit is as it allows for various options for the goods and services, if it done well it gives
tremendous brand recognition to business. Its drawback is company is at high risk also it can be
too much complicated to maximise the product sales in market.
Market penetration: Businesses tries to increase the sales of their existing product in existing
market. It generally employs to increase the market share (Švagždienė, Štreimikienė and
Jasinskas, 2021). Main benefit of this strategy is with this organisation can easily look inside as
how the customer and complete market view their products and services, with this they can
easily positioned their products for better return. Its drawback is possibly harm the company’s
image also there is a low profit margin. It also causes the prices to go lower throughout the entire
market sector.
Product development: In such organisations particularly focusing on developing the new
product and the market segment remain same. Main benefit of this strategy is that with this
companies can easily provides the better satisfaction and customer experience to the customers.
Also helps the business to expand their businesses. Its main drawback is it links with the major
as there are possibilities that customer in the existing will not interested in company’s product.
Thus for the Oak cash and carry company they can proceed with the market development
strategy, to enter into the Germany country’s market. With this they can easily go with their
existing product into the new market to grow their revenues and expand their brand image.
3. Funding and list of all funding sources
Funding refer to the money which is required by the organisation to initiate and runs their
business smoothly. It is the financial investment which the businesses utilise in order to
manufacture their product and services. There are various funding sources which the oak cash
and carry organisation can consider-
Bank loans: It is the most popular and common funding source which is utilised by the SME
business. All bank provide the different benefits whether it is personalised or the customised
services. Thus it is the good approach which the oak cash and carry can consider to search for the
better bank options which meets their all requirements (Prasetyo and Rahman, 2018). Main
benefit of this factor is cost effectiveness as when in terms of the interest rate bank loans are the
economical or cheapest options. Its main drawback is that long duration reparation through

monthly volume might come with the high charges that is made from the variations in interest
rate
Debentures: It refer as the finance long term. It is the long term bond which is mainly issued by
both the organisation and government, it carries the fixed rate, it only backed by the
creditworthiness. Thus oak cash and carry can be benefitted by this fund as it provides the
secure investment and fixed return and with this oak cash and carry can easily raise the fund for
their services. Its drawback is that every organisation have their specific borrowing capacity,
thus with this company’s capacity to borrow the fund can be decreases.
Angel investors: These are the investors or retired executive of the company who invest into the
small firm for their own benefit. Benefit of this funding source as there is less risk to take loan
from the investors also there is no debt financing. But this funding source also has disadvantage
which is less transparency and they mainly control the business. Thus oak cash and carry can
proceed to take the fund from angel investor but they also have to face the extra involvement of
the investors into their business.
4. Exit options for business
Exit usually occur when the owner of the firm decided to end their business involvement.
It can be done in a certain situation where the business of the organisation is not producing better
results and often producing disastrous situation. There are some exit options which are as
follows:
Liquidation: It refer as the ending of the business through the sales, this strategy is used when
the business could not be able to sold due to the poor performance. Its main advantage is as the
all debts should be written off and also remove the responsibility from the owner. Its drawback is
that shareholder might repay the illegal dividends and the tax which are lost cannot be utilised
against the different country (Prasetyo and Rahman, 2018). Not necessarily but if the situation
rises for the oak cash and carry to exit out from business they can proceed to select this options.
Acquisition: It define as businesses give up on their ownership to the other organisation who are
ready to buy the business. Its main benefits is company can gets the price what they asked for,
thus for the oak cash and carry it will be a better option if any kind of exit situation arises. But it
has drawback too which is there might be a clash between the different cultures also develops the
financial fallouts problem.

Merger: Merger is the strong exit strategy for any business and it is a better or attractive option
for the start-ups. It increases the business values. Its main benefit is its reduce the cost which is
made on advertisement and also creates the chances for increasing the sales. But it has some
negative aspect too which it creates the unemployment chances and develops the communication
gap or cultural conflicts might see.
5. Business plan
It refers as the written document which outlines every required details of the business, companies
set the objectives and prepared the strategies to accomplish the set objects and goals.
Smart analysis:
It refers as the business analysis approach which helps the organisations to explain the consumer
expectations of the business solution. Smart analysis helps in planning the business system, thus
organisation develops the specific, measurable, achievable, relevant and timely bounded
objectives in order to fulfil.
Executive summary:
Business plan will discuss the following factors, as it laying out the plan for the oak cash and
carry grocery organisation, as they are planning to expand their business in Germany European
country (Helmold, 2021). It will cover the company, product and market summary also covers
the financial plan for the organisation.
Company summary:
Oak cash and carry is the small UK based SME, they are the agents who involves in the sales of
different goods and services. Company wants to expand their business into the Germany’s
market. Company is small size thus they are planning to raise the fund from sources in order to
develop their market by using their existing product to introduce into the new market of
Germany country.
Products:
Organisation sales the wholesale products in variety of products which are related to the
groceries, speciality food products in Banbury UK. Target customer for the company are usually
18 plus. They have good pricing strategy which the customers found affordable and convenient.
Thus in the market of Germany country company come with their existing products to attract the

customer in market, also they will going to offer the high qualitative products at good price to
successfully developed into the global market (Naim, 2021).
Market analysis summary:
It is found that the market of the Germany country is quite popular in Europe. Country also has
the fifth largest market for the ecommerce. Country offers the large market size and centralised
location, organisations are aims to innovate their products and services and often developed the
good infrastructure. For the buying behaviour of the customer is found that the German people
have low policies regarding the brand loyalty, they majorly prioritize the prices or cost over the
brand names and image (Yu, 2019). Although country has different rules and regulations which
implies on the businesses. Thus in such it is important for the Oak cash and carry to follow all
the rules and regulation to sustain in the market, with the customer analysis they can proceed to
enter the market with specific pricings to maximise the sales and revenues.
Strategy and implementation:
For the strategy implementation oak cash and carry organisation will enter the market with
market development strategy, as they are bounded to their organisational capital. Thus it will
help them to come with their existing product to sell into the Germany market. For the better
entry company will also going to use the price differentiation strategy, at initial they are required
to sell the products on affordable price otherwise they will not be able to sustain in Germany’s
market. As for their own company’s infrastructure they will proceed to conduct the training and
development program for their employees, also time to time conducts the rewarding activities to
give rewards to the employee for their better performance, as it will help them to retain their
potential employees and they will be able to produce the better results in global market.
Management summary:
For the organisation it is important to have best management in order to maximise the business
productivity. It can be all done by the better leadership which aims to lead the team in a forward
direction towards the desired goals and objectives. Thus for running the business smoothly it is
also important for the oak cash and carry to recruit the local people from the Germany country’s
market, as it will help them to develop the culture where the cross cultural values are respect by
every employee (Kang and Motohashi, 2020). Thus with the fresh hiring in international market
will lead the company to better interact with the local customers and make them understood to
buy company’s product and services. It is also important for the organisation to timely monitor

the organisational performance in order to make changes for better functioning in the
international market.
Financial plan:
It is the most important factor which the businesses consider in order to manage their financial
assets. It is important for the businesses to come with the proper budget strategy. However for
the oak cash and carry they are small size business which means they required specific fund to
enter into the market. The initial budget for the oak cash and carry company is £60000 to run or
develop the business into the Germany market. thus it is essential for them to come with the
complete budget plan as to divide the amount into the logistics, labour force and other business
expenses which the organisation consider to run the business (Moghei and et.al 2019).
CONCLUSION
From the above report it is concluded that running a business associates with lots of risks and
opportunities. Expansion of businesses required a lots of market research and other strategies to
enter into the global market to rise the revenues. Following report have illustrated the
descriptions of the growth opportunities which the businesses consider in order to expand the
services internationally. It also discussed the ansoff matrix and different funding sources along
with pros and cons. Moving on further report have discussed the exit options for the business and
lastly concluded with the business plan that will highlights the various stages which the
organisation follow in order to develop their new business in new market.
REFERENCE
Books and journals
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IMPORTANT AS A BUSINESS PLAN. Leader to Leader. 2021(100). pp.18-21.
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Tools (pp. 213-219). Springer, Cham.
Kalogiannidis, S. and Mavratzas, S., 2020. Impact of marketing mix strategies effective product
development issues in MNCs/Retail. International Journal of Business Marketing and
Management (IJBMM). 5(12). pp.118-125.

Kang, B. and Motohashi, K., 2020. Academic contribution to industrial innovation by funding
type. Scientometrics. 124(1). pp.169-193.
Moghei, M. and et.al 2019. Funding sources and costs to deliver cardiac rehabilitation around the
globe: Drivers and barriers. International journal of cardiology. 276. pp.278-286.
Naim, A., 2021. Applications of Marketing Framework in Business Practices. International
Journal of Innovative Analyses and Emerging Technology. 1(6). pp.171-186.
O’Donnell, R. and Dahl-Popolizio, S., 2018. Business Entrepreneurship: The Integrated
Behavioral Health Business Plan. In Training to Deliver Integrated Care (pp. 143-159).
Springer, Cham.
Prasetyo, P.E. and Rahman, Y.A., 2018. Effectiveness of new product development on mat
creative industry. KnE Social Sciences. pp.633-653.
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creative industry. KnE Social Sciences, pp.633-653.
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diversification for other sectors. Human studies. (7 (84)). pp.129-135.
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