Report on Growth Strategies and Funding for DCS Group Businesses

This report analyzes the growth strategies and financial planning for DCS Group, a small enterprise in the grocery, food, and clothing sectors. It begins with an introduction to the concept of planning for growth, emphasizing the importance of strategic planning in achieving business objectives. The report then delves into a PESTLE analysis to evaluate external factors influencing the business, followed by an application of Ansoff's Matrix to identify growth opportunities. It explores various funding sources, including bank loans and loans from friends and relatives, along with their respective advantages and disadvantages. Furthermore, the report critically evaluates the role of a business plan in achieving objectives and examines exit or succession strategies for small organizations, concluding with recommendations for DCS Group's sustainable growth and financial stability.

Planning For Growth

Table of Contents
Table of Contents.......................................................................................................................................2
INTRODUCTION.....................................................................................................................................3
TASK1.......................................................................................................................................................3
Analyze key consideration to evaluate growth opportunities in organizational context.........................3
Evaluate growth opportunities with Ansoff‘s Matrix.............................................................................5
TASK 2......................................................................................................................................................8
Discuss different sources to acquire funds for business along with advantages and disadvantages........8
TASK 3....................................................................................................................................................11
Critically evaluation of business plan in order to accomplish business objectives...................................11
TASK 4....................................................................................................................................................16
Critically analyzed exit or Succession strategy which utilize by small organization in order to wind up
existing business......................................................................................................................................16
CONCLUSION........................................................................................................................................20
REFERNCES...........................................................................................................................................20
Appendices...............................................................................................................................................23

INTRODUCTION
Planning for growth is wider and broader concept which includes various kind of aspect
in order to where management plans business operations, functions and activities. There various
kinds of factors involve to mangers plan business strategy which impact on functions of
business. The report is about DCS group it is small enterprises and mainly dealing in grocery
items, food and clothing segment. The main purpose or aim of organization to fulfill needs and
demands of customer and achieving satisfaction of customers in order to gaining sale revenue of
firm (Angotti, 2018). The report consist evaluation of macro environment factor, Porter’s five
forces model and Ansoff matrix all this tools essential to growth and success of business. It
includes sources of funds which is necessary to business because operates business activity as
well as exit or succession strategy in order to expansion of business or dissolution of firm.
TASK1
Analyze key consideration to evaluate growth opportunities in organizational context
There are ample of opportunities for growth and success present in market place for an
organization. These opportunities get affected by external factors that are beyond the control of
higher authorities (Nedjimi and Beladel, 2016). Managers undertake appropriate tools in order
to identify the impact of external elements over business operation. PESTLE analysis is one of
the methods that is carry out by DCS company to monitor the growth opportunities present in
market. There are a lot of factors that need to analyze by managers in order to prepare
appropriate strategies to expand business at large level. These elements are discussed below:
Political Factor- It refers to government instability due to change in current political
parties. It affects the overall sales and profitability of company ( Hermans, Buckley and Lear,
2018). There are some new amendments related to employment law, consumer protection law
have been introduced. Now these stakeholders have more power to take action against company
for their wrong practices. Like In reference of DCS group it is analyzed that company is highly
affected with the current political environment of UK. There are a lot of new rules and
regulation have been adopted by Higher authorities that will influence the overall retail industry
of country. In addition Due to Brexit UK imposed ample of restrictions over import of
necessary goods from EU that will influence the overall business operations of company as it is

depended on European countries to get necessary resources such as labor, raw material and
many more.
Economical Factor- It refers to the employment opportunities, demand, supply and
economic condition of a country. These factors put a significant impact on overall efficiency as
well as productivity of a company. The whole retail industry of UK is highly affected with
current recession. It has not only decreased the job opportunities but also the revenue of people.
DCS group is facing adverse impact of Covid 19 as it has been drastically reduce down the
demand of products being offered by organization. In addition due to Brexit purchasing power
of people has also been decreased that significantly affect sales and profit margins of
organization.
Social Factors-These factors comprise a lot of elements such as personality, attitude,
buying behavior of target audience. It is essential for mangers to analyze these elements to meet
with the needs of customers in an efficient manner. Nowadays buying habits of people have
been changed. They give more preference to online shopping rather visit to physical stores. So,
mangers of DCS group offer the opportunity to consumers to purchase products online and also
provide convenient delivery services. In addition they analyze the needs and wants of customers
to offer them products accordingly. It helps them to get competitive edge.
Technological Factor-It refers to adopt innovative approaches to perform increase
operations efficiency. It will help organizations to provide better products as well as services in
cost effective manner. These elements significantly affect the business functions (Thomas,
2020)In context of DCS group, it adopts digital technologies such to promote its product at wide
level. In addition, company’s website is user friendly and provides ease to customers to place
orders. Managers of firm have been adopted various software pertaining to finance, CRM to
increase business efficiency. With this, it is able to enlarge operations at wider level.
Legal Factor- It comprises various rules, regulations, compliances that are formulated
by government for companies. It is essential to follow proper rules and regulations to ensure
smooth functioning of business entity. There are certain laws such as foreign trade policies,
business and consumer protection law that are being followed by DCS group. In addition they
need to apply employment protection law in order to ensure the safety and security of human

resources at work place. Thus, mangers need to obey all the policies that are made higher
authorities of country to avoid any future disputes.
Environmental Factor- It is the responsibilities of companies to ensure overall societal
development through its business operations. It is significant for managers to analyze the impact
of their activities of environment. DCS group undertakes CSR activities and give an
appropriate part of its profit for societal well being . It also creates ample of job opportunities
in country. Along with this, it also carries out reuse and recycles activities of waste material to
protect environment.
Out of above discussion, it is analyzed that external factors are essential and
significantly affect the efficiency of company. Although, it cannot be controlled by managers
but it is crucial to monitor the impact of these elements. This analysis will help managers of
DCS group to prepare appropriate strategies to meet with uncertainties and contingencies.
Evaluate growth opportunities with Ansoff‘s Matrix
Ansoff’s Matrix is one of the major frameworks which are used to formulate growth
strategies of a company (Learn, 2019). It comprises four important quadrants to ensure for the
expansion & future growth of business entity. In context of DCS group the following strategies
can be used for to expand operations:
Market Development-
Under this strategy company can target a new market segment with existing product. In
context of DCS group managers can expand their business by increase in number of stores in
different regions. With this, they can target a new segment of customers to expand business.
Advantages-
 It will help organization to target new segment and simultaneously increase its presence
among customers.
 With this company has an exponential opportunity for growth and success at market
place.

 It will render an edge to entity over rival firms such as Lifes2good. Kinary and many
more.
Disadvantage-
 This strategy requires huge investment to enter into a new market place.
 Managers need to perform an extensive research before cater the needs of a new
segment There are also higher chances to face failure in while exploring different market
segment.
Product Development-
It refers to develop a launch a new product in existing market place. This strategy plays
a significant role in the growth of company. DCS group is providing health, beauty products
they can also work in groceries and food segment to expand business ( Grünig and Morschett,
2017).
Advantages-
 It assists managers to grow and expand business at market place.
 This strategy enhances the product mix of company thus provide it competitive edge. Company offers product to existing customers who are already loyal towards the brand
so there is higher chances to receive positive outcomes.
Disadvantages-
 Higher time as well as cost is incurred to launch a new product.
 This strategy may harm the existing brand image of company among target audience.
 Company may face resistance from existing customers that will reduce down the sales
and profit margins.

Diversification-
Under this strategy company comes with a new product and targets a different segment
of consumers ( Hollensen and Opresnik, 2019). Neither existing product nor market is used by
company. Mangers of DCS group may undertake this method by offering new products to new
segment of customers.
Advantages-
 It provides an exponential opportunity to organization to explore business operation at
wide scale.
 This strategy assists managers to increase in sales as well as profit margins Most importantly, it provides sustainable competitive edge to company.
Disadvantage-
 There is higher market and financial risks are involved in diversification.
 It incurred high cost as entity needs to invest huge funds in research and development of
new product as well new market. This strategy may change the current positioning of company at market place.
Marker Penetration-
It refers to offer existing product to target audience of company. Both market and
product are kept same as earlier in this strategy. In reference of DCS group they can undertake
this strategy by reducing the price of products in order to inflate sales of organization.
Advantages-
 It provides huge benefits in minimum or no cost.
 It is a great strategy to increase in sales and profit margin with at lower expenses.

 This strategy comprises lower risk to face failures as company works in existing market
place.
Disadvantage-
 It provides fewer opportunities to grow and expand business at large scale.
 There are no innovations and new techniques are carried out by company to attract
buyers.
 There is lower probability to gain sustainable competitive advantage with this method.
From above stated points, it is monitored that Market Development is most suitable
strategy for DCS group. With this, mangers can expand business at different locations of
country in minimum cost. In addition, organization may also adopt Diversification strategy to
expand business at wider level. Under this, they need to introduce a new product range such as
groceries and food among new audience. Thus, it will help to enlarge operation of company and
inflate sales as well as profitability.
TASK 2
Discuss different sources to acquire funds for business along with advantages and disadvantages
Funding is essential to undertake various business functions in an efficient manner. To
meet with day to day to expenses of organization, it is vital to have appropriate cash ( Gui and
Adriansyah, 2017). There are ample of sources by which funds can be received. Each source has
its own benefits as well as drawbacks. For DCS group different sources of fund are discussed
below:
Bank Loan-
It is a source that is widely used by companies to get necessary funds. With this,
organization can borrow required money from banking institution that need to repay after a
stipulated period of time. DCS group acquires funds from bank as a debt and pay appropriate
interest on that.
Advantages-

 It is easy to borrow money from banking institutions.
 It is reliable source of funds for companies and help to grow business at wider level. This source of fund is cost effective as interest rate is comparatively lower
Disadvantage-
 Complications are high as company need to fulfill ample of formalities to get funds.
 While borrowing money from banks organization has to keep some asset for collateral. There is obligation to return borrowed amount on specified time.
Loan from friends or Relatives-
Under this money is borrowed from acquaintances such as friends, relatives. There are
fewer formalities, rules, regulations to acquire necessary funds. It is more convenient for DCS
group to get money through this source.
Advantages-
 There are no legal formalities undertake in this method of funding.
 It is cost effective also as generally acquaintances do not charge any interest or extra
amount. This source is considered as one of the most reliable source e to acquire money.
Disadvantage-
 It is not an authentic way to borrow funds.
 Another drawback is this; huge money cannot be arranged with this method. Time is also a constraint as money cannot be received for a longer period of time
through this source.
Venture Capital-

It is the most suitable way to borrow funds for startups and small enterprises. There is also
some additional benefits can be received with this source. DCS group may huge funding with
venture capital ( Bris, Nguyen and Tagoe, 2020).
Advantages-
 Along with funding experience advise can be received that will help to manage risk in an
efficient manner.
 There is no need to pledge assets for collateral that helps to minimize extra burden. It helps to develop efficient networking with industry leaders that is essential to grow
business.
Disadvantages-
 With this, organizations loss control over their business operations as sometime it need
to involve investors in decision making process.
 There is huge uncertainty is involve in this respective source of fund. It is a long and complicated process that comprises a lot of steps to find venture
capitalist partners.
Personal Funding-
It refers to use personal money, savings for the growth of business. There is no
additional cost is involved in this but only limited money can be arrange with this method.
Business Owners of DCS group may invest their own money in organization to expand
operations.
Advantages-
 There is no interpretation of outsider parties in decision-making process of company.
 There is no hassle to undertake any legal formalities for this source.

 It is highly cost as well as time effective method as owner does not need to pay
additional charges in terms of interest.
Disadvantages-
 Limited money can acquire with this particular source.
 If the predefined objectives will not be achieved then it may cause huge loss to owner of
business entity.
 There are fewer opportunities of growth and success with this source of funding.
There are several merits and demerits are associated with each source of fund so it is
crucial to analyze and select most suitable method. It should be select as per the prevailing
business condition. In context of DCS group Bank loan is the appropriate source as it is most
authentic and reliable source of funding. With this company will get huge money for the future
expansion and growth.
TASK 3
Critically evaluation of business plan in order to accomplish business objectives.
Business plan is report which is necessary to prepare each and every organization in order
to effectively achieved profitability of company. A financial resource is play important role
because without that company cannot move forward and doesn't effectively carrying out
business activities. It includes various financial projections it leads to proper arrangement of
funds. There various strategies utilize by organization in order to prepare effective business plan
so clear set goals and objective of company (Barry, 2019). DCS group promote is one of the
leading enterprises so it is prepared plan in effective manner which are describe below.
Executive Summary
This business plan is for the company chosen for this project, DCS groups. The
company offers various products to its customers that are of high quality in order to gain their
trust as well as meet their needs and preferences. The business plan is an important document
for an organization because it guides it and provides direction to attain its goals as well as

objectives. There is an analysis of the market as well as a SWOT analysis for the company to
understand its strengths as well as the different opportunities (Takata, 2016).
Background of the company
The respective company, DCS groups is mainly a family business which is based in the United
Kingdom. The members of the family are running the business successfully since many years
by providing efficient services to the customers. The owners consider pre- and post-sales
customer service to be very important. In order to attain those objectives, they are increasingly
focusing on improving the overall experience of the customers with their products as well as
services (Gui and Adriansyah, 2017). The company makes sure that only best possible solutions
are offered to the customers so that their loyalty is gained.
Vision: The company’s vision is to make sure that only high-quality products and services are
offered to the customers so as to satisfy their needs.
Mission: The mission of DCS is to provide an excellent experience to the customers.
Objectives:
 The major objective of the company to develop a business plan is mainly to increase
their profits up to 5% by next year.
 Apart from this, the company also aims at capturing the market share by 10% through
new and enhanced services such as groceries and other household items.
Industry as well as Market Analysis
Due to the changes in the market because of the outbreak of coronavirus, there has been
a great impact on the overall business operations of the company. This is because it had to shut
down its retail shops for a particular time period. However, the reopening of shops has
somewhat helped the company in increasing its overall profitability as well as performance in
the market. the overall level of disposable income however, has gone down among people. This
has made it to assume that there can be a decline in the overall purchasing power of the
consumers. Therefore, by decreasing the overall prices of its goods and various promotional
offers, the company can attract a greater number of customers. This way, the customers will be