Report on Planning for Growth: Oak Cash & Carry Business Analysis

This report provides a comprehensive analysis of growth strategies for Oak Cash & Carry, a wholesaling business in the UK. It begins with an introduction to planning for growth and its importance in business operations. The report then delves into key considerations for evaluating growth opportunities, including competitive advantages, resource capabilities, and core competencies. It employs a PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors influencing the business. The report also uses Porter's generic strategies to examine cost leadership, differentiation, and focus strategies. Furthermore, it evaluates growth opportunities using Ansoff's growth vector matrix, covering market penetration, product development, market development, and diversification. The report also explores potential sources of funding, including mergers, acquisitions, and joint ventures. It then outlines the design of a business plan, including financial information and strategic objectives, and concludes with an assessment of exit or succession options for a small business. The report provides a detailed overview of the business, its strategic options, and the tools necessary to evaluate and plan for growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities.....................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..............4
TASK 2 ...........................................................................................................................................7
P3 Potential sources of funding.............................................................................................7
TASK 3 ...........................................................................................................................................8
P4 Design a business plan......................................................................................................8
TASK 4..........................................................................................................................................11
P5 Assess exit or succession options for a small business...................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
The planning for growth refers to make an effective as well as efficient strategies which
are supportive to carry out operational activities in proper manner. Preparation of an appropriate
plan of action provide correct direction to business which facilitate to gain better productivity on
regular basis. It is necessary to build more accurate techgniq1ues or policies that provide support
to conduct different functional procedures properly to attain desired outcomes (Barbour and
Deakin, 2012). This report is based on Oak Cash & Carry that deals in wholesaling and provides
non-specialised wholesale of food, beverages and tobacco. It was founded in the year around
2000 and registered office is situated in Banbury, UK. The given assignment will discuss about
key considerations for evaluating growth importunities through implementing Ansoff's growth
vector matrix. It also involves explanation for various potential sources of funding along with
their benefits and drawbacks. The design of business plan including financial information and
strategic objectives is defined below.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities
The growth opportunities are necessary to be determined by companies so that they can
grab them at correct time to gain benefits. There are various kinds of possibilities to improve
productivity as well as profitability which introduced introduced different trends of market. The
firms have to observe and analyse fashion of market place and then build more effective
strategies to conduct different operational activities in proper way to gain better outcomes on
daily basis. The Oak Cash & Carry have variety of products in which they can boost up their
features or improve attractiveness of packaging that will facilitate to increase brand of an
enterprise. It is important to carried out an efficient analysis of such factors that can be
considered for evaluating growth opportunities that is beneficial for company (Beatley, 2014).
Oak Cash & Carry should focus of some elements which are as follows:
Competitive advantage: This can be described as to build several effective strategies to
conduct production process in correct manner and manufacture an appropriate product. It is
necessary to improve supply chain management for supplying an accurate amount of goods to
different geographical areas as per demands of customers properly. It is necessary to make
product available for people so that they will prefer same brand repeatedly. It will help to boost
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up good will and attract more number of clients that facilitates to gain better profits. The Oak
Cash & Carry have to focus on quality of products and technique of production which should be
improved by utilising advanced technology to increase effectiveness of goods which is helpful to
satisfy expectations of consumers.
Resources and capabilities Core competencies
The utilisation of available resources should be
optimum fir attaining maximum outcomes
(Chen and et. al., 2014). It is essential to build
an appropriate technique or policy that helps to
consume difference sources effectively to get
an appropriate productivity. Oak Cash & Carry
have an efficient strategy of using advanced
technological machines that manufacture
goods in proper manner to facilitate supply of
products as per demands of customers.
The core competencies includes several factors
in which an enterprise open doors for new
opportunities, contribute greatly to stakeholder
value and use such techniques that cannot be
copied by competitors/. These elements
provides certain benefits like sustainable
competitive advantage, differentiate customer
value and access to wide range of markets. The
Oak Cash & Carry must focus on those
components that helps to improve brand image
of company.
PESTEL Analysis
The PESTEL analysis refers to study of several factors such as political, economical,
social, technological, environmental and legal to run business properly. It is essential to observe,
analyse and evaluate all these components to conduct operational activities in correct manner to
create better productivity as well as profitability for achieving success.
 Political: This refers about several political parties that has their on rules or norms which
are required to be followed by firms for conducting operational activities. Politically
stable condition of that particular place where the business is carried out because it
facilitates to generate desired production of goods properly (Eddleston and et. al., 2013).
Thus, Oak Cash & Carry is required to analyse this factor and build plan of action by
kept in mind about political situation of particular area that helps to gain better growth of
business.
 Economic: The economic factor includes certain elements such as taxation, interest rate,
inflation, currency exchange and unemployment rates may change in different situations
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and at various market places. It will results into several issues or problems to run business
effectively as well as efficiently. Hence, Oak Cash & Carry is having favourable
economic condition that supports to conduct business to fulfil desires of customers.
 Social: This refers to several cultural or religious values of people that reflects in their
choices of preferring product while purchasing to complete requirements (Galland, 2012).
The views of clients should be separated from their personal values and focussed on
benefits of products will provide support to Oak Cash & Carry for boosting up
profitability of business.
 Technological: The technological factor can be defined as to utilisation of several
advanced technological methods that provide support to conduct operational procedures
properly. It is really beneficial to improve productivity as well as profitability of Oak
Cash & Carry as they are using effective techniques to generate better outcomes on
regular basis.
 Environmental: This refers to certain environmental rules or regulations that are
necessary to reduce issues relevant to nature. It includes that firm should use ozone
friendly vehicles for distribution of goods and prefer pollution free equipments to save
environment. The Focus of Oak Cash & Carry towards environments and taking steps
for it will helps to improve their image in front of people as well as government that
facilitate to achieve growth in business.
 Legal: There are various kinds of rules and norms which are made by government
authorities that are mandatory to follow by all companies (Levy, 2016). Oak Cash &
Carry have to consider such legislations because it facilitates to avoid for adopting wrong
direction of business that supports to attain success.
Porter's Generic strategy
The Porter's generic strategy refers to competitive techniques that includes cost and
differentiation that are subdivided into leadership & focus. It was primarily introduced by great
thinker named as Michael Porter in the year around 1980. It includes certain factors that are
helpful to be focused for building more effective as well as efficient strategies to run business for
achieving growth of the same. Oak Cash & Carry is required to use this method for preparing an
accurate plan of action to sustain brand image and earn desired profits successfully.
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 Cost leadership: This refers to focus cost of manufacturing with producing better quality
of good at reasonable price to customers. It will make people comfortable to buy the
goods as they are easily affordable for them. Oak Cash & Carry provides their product in
bulk along with discounts that results to attract new clients and retain the current ones
which supports to increase profitability. Differentiation leadership: This includes to concentrate on uniqueness of products by
implementing certain features and make the packaging more attractive (MacLeod, 2013).
Hence, it involves the criteria to make brand different so that image of Oak Cash & Carry
should be separated in minds of people. Cost focus: The term cost focus can be described as focus on pricing of company and
make sure that it will better than competitor's pricing policy and provides products with
quality to customers.
 Differentiation focus: This Oak Cash & Carry is required to concentrate on features of
goods along with analysing effectiveness of competitive products to boost up own brand
image amongst consumers.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
There are different types of opportunities for growth that are required to be observed and
analysed by firms to grab them at correct time. It will provide support to carrying out various
production processes in proper manner to generate desired outcomes on daily basis. The
organisation can conduct several kinds of methods to evaluate opportunities for growth which
helps to determine them properly in suitable way. Thus, Oak Cash & Carry can also utilise
certain techniques for same purpose and one of then is given below:
Ensoff's Growth Vector Matrix: This can be described as an effective as well as
efficient method of evaluating several opportunities for growth which are suitable for an
enterprise (Moseley, 2013). It will helps to build more appropriate plan of action to run business
properly for attaining better profitability. Oak Cash & Carry can utilise this technique which is
defined below:
Market penetration: This refers to a technique of selling same product to present
customers and make them to purchase repeatedly. It is necessary to boost up features or quality
of products to fulfil modified or current demands of customers which provide support to attract
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new clients along with retaining regular consumers towards company. Thus, Oak Cash & Carry
can attain long term profits by adopting this method.
Product development: The product development is all about to thoroughly evaluate
actual needs or demands of people and fulfil in an accurate manner. It is also includes criteria of
modify features of goods as per changes of market trends to complete changed expectations of
people. Oak Cash & Carry is using advanced technology to conduct operational activities to
provide better quality products for achieving satisfaction along with long tern profits as well.
Market development: This can be described as to implement some new idea or concept in
market that introduce fresh product with unique features and capable to fulfil desires of people
(Schetke, Haase and Kötter, 2012). Oak Cash & Carry can launch new variety of goods in its
wholesaling which is accountable for market development. Hence, such attractive or creative
thoughts are helpful to improve brand image and garb more ostentation of citizens that render
support to achieve better profits.
Diversification: The term diversification refers to focus on present product and apply
new idea to gain more profitable returns.
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(Source: Ansoff Matrix, 2018)
Collaborations: The Oak Cash & Carry can adopt certain methods of collaboration for
growth of business that are as follows:
Method Benefit Drawback
Mergers and acquisition:
When two firms dissolves their
own identity of both
companies and make new
merged entity then it is called
merger. Now when strong or
large organisation purchase
small enterprise and then
establish new business concern
with name of buyer company
 These methods are
helpful to grab more
market share
immediately.
 It reduce competition
of market by taking
over rival.
 It incudes that an
investor can bank on
existing goodwill of
 It is extra difficult to
locate and evaluate
acquisition employees
at different positions.
 The home and
government policies
create problems to
establish merger or
acquisition.
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Illustration 1: Ansoff Matrix, 2018

then it is known as acquisition. acquired business.
Joint venture: When two
companies put their efforts in
single third entity with
different concept then it is
called joint venture. It has
differentiated name and idea to
conduct other business by both
the enterprises.
 It provide several
profits from the
knowledge of local
partners.
 The cost or risks are
shared with partner and
reduce political issues.
 It is quite risky to
provide control of
technology to partner.
 The shared ownership
may leads to certain
conflicts between
partners that impacts
negatively on business.
Identifying and mitigating risk: This term can be described as to determine various
kinds of risks that may effects the business in negative manner. It is necessary for Oak Cash &
Carry to identify risk factors by conducting several efficient methods so that they can be solved
properly. Now, mitigation refers to observe, analyse and evaluate all possible risks which are
required to sort out in correct manner to gain better productivity as well as profitability (Todes,
2012).
TASK 2
P3 Potential sources of funding
The sources of funds should be ensured by an organisation because it is main factor that
is important to conduct different kinds of activities or events relevant to business. It is necessary
for every owner of company to collect require amount of money from different sources so that it
is easy to carrying out overall procedures of business in correct way to generate better outcomes.
Apart from this, several problems or issues in operational processes also needed funds to sort out
them to properly. Oak Cash & Carry also use several sources of collecting capital for business to
conduct business smoothly and create desired productivity.
Decision making for investment: This refers to observe and analyse overall
requirements of business regarding money which is going to be invested. It is essential to make
master budget that is needed to run whole business including each and every small or large
expense to make correct decision of collecting sufficient amount of funds from various sources.
Hence, some of them which can be used by Oak Cash & Carry are as follows:
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Sources of finance
Sources Benefits Drawbacks
Bank loans: This is all about
to collect specific amount of
funds from several banks
which should be return to them
after limited time with interest.
 It can be considered as
an easiest way to
collect funds and tax is
deductible the interest
paid.
 Some of banks has
strict rules as they
charge prepayment as
penalty.
Crowdfunding: This method
includes criteria of gaining
small amount of funds from
large number of people.
 It is very useful way in
case banks or financial
institutions are unable
to provide funds.
 It is not applicable for
long term projects but
only utilised for one or
two contracts.
Peer to peer lending: It
includes two individuals i.e.,
lender and borrowers. Hence,
the online platforms are used
to match both of them and then
needy individual will collect
funds from lender.
 The initial investment
amount is lees in this
method (Valler, Phelps
and Wood, 2012).
 It is not available for
collecting large amount
of money for business.
Angel and venture finance:
This method involves
financially strong individuals
who are capable to provide
funds in large amount that can
be invest to business.
 It will facilitate to
introduce an
appropriate discipline
in firm and
management is also
improved.
 It is kind of technique
hat requires large
amount of rate of
return.
TASK 3
P4 Design a business plan
The business plan refers to prepare an effective as well as efficient planning including
several strategies or techniques that can help to conduct operational activities properly. It is
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necessary to build more appropriate plan of action to carrying out production and other relevant
activities in proper way to generate desired outcomes.
Executive summary: This business plan is based on whole selling business named as
Oak Cash & Carry and provides non-specialised wholesale of food, beverages and tobacco. They
utilise more accurate techniques to manufacture products with better quality and render them at
reasonable rates to people. It will facilitate to complete expectations of customers in correct way
that results into better productivity of business.
Overview of the company: The presented business plan is based on Oak Cash & Carry
that deals in wholesaling and provides non-specialised wholesale of food, beverages and tobacco.
It was founded in the year around 2000 and registered office is situated in Banbury, UK.
Vision and mission: The vision statement of Oak Cash & Carry is to improve their brand
image and grab more market share to become best wholesaling company. The mission of this
firm is to build more effective strategies and render better quality of fulfil actual desires of
clients along with attaining their satisfaction.
SWOT analysis
Strengths
 They have reasonable prices and strong brand that helps to maintain profitability of
business.
 The operating efficiencies are strong that facilitate to conduct production process
properly to make desired goods (van Assche, Lo and Beunen, 2013).
Weaknesses
 They are facing burden of high wages paid to workers along with low price margins.
 This firm has small marketing budget that results into less effective promotional
activities.
Opportunities
 They have chance to expand their business in stable foreign markets to boost up
profitability.
 It includes collaboration liker merger or acquisition for grabbing more market share and
reduce rivals.
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Threats
 The threat of political complications are faced by given company.
 The several trade barriers produce problems to run business properly.
Stakeholders: The Oak Cash & Carry company has several stakeholders like staff
members, owners, suppliers, clients, government and investors that provide certain beneficial
suggestions to business.
Successful entrepreneurial strategies: An entrepreneur has various innovative skills or
abilities through which they can build more effective strategies to run business properly. These
polices are study the competition, research about new product, tackle with certain problems of
business, listen to client's feedbacks etc.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 60000 20000 10000 35000 12000
Investment 30000 15000 20000 30000
Total 60000 50000 25000 55000 42000
Marketing
expenditures
Advertisement 10000 9000 4000 11000 6000
Sales promotion 3000 7000 2000 9000 7000
Direct marketing 8000 10000 3000 8000 90cal00
Total 21000 26000 9000 28000 22000
Available balance 39000 24000 16000 27000 20000
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Cash flow Statement
Cash budget for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 20000 33350 31250 29050 21250
Budgeted cash receipts 11500 1400 1000 1200 16000
Total cash available 33600 35850 22850 25850 28550
Cash distributed
Direct material 1200 1100 1200 1250 1300
Direct labour 1100 550 750 600 700
Overhead 800 500 700 800 600
Selling and distribution 650 700 700 700 700
Total cost use 3750 2850 3350 3350 3300
Cash surplus/ deficit 29850 33000 19500 22500 25250
TASK 4
P5 Assess exit or succession options for a small business
There are different methods which are used to exit and succession of small businesses
such as Oak Cash & Carry are as follows:
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Exit routes for successful business Growth and succession planning strategies
Selling or floating of business: This refers to a
method to exit in which shares of business are
sold to stock market.
Areas of potential conflict: This can b
considered as an effective strategy in which
possible areas of conflicts is evaluate to reduce
possibility of issues or loss.
Valuing the company: The term valuing
company is all about to first measure an
economic value of business to sell it at an
accurate price.
Succession planning: This refers to an
appropriate technique in which plan of action
should be made in effective manner to
facilitate growth of business.
Succession strategy
Joint venture : A joint venture is a contractual arrangement between two organizations.
Both of these parties shares equal resources and expenses to operate the firm in an effective way.
Each participant is equally responsible for the profit, loss and risks as they have equal investment
in the organisation.
Benefits
 As there are two or more participants are involved in a venture therefore, they have the
enough capital to invest on a project.
 Their different skills and abilities will overcome the risk factor that can occur during the
projects.
Drawbacks
 It may go wrong because exiting from the agreement is very difficult.
 Joint venture causes to loss of flexibility and confidentiality because they have to decide
the strategies together.
Exit strategy
Liquidation : It refers to the sailing the business assets to convert the resources in money.
This is the most important exit strategy for a small business because the borrower will become
free from all the liabilities.
Benefits
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 The owner of the company does not need to worry about the transfer and control the
business.
 It is one of the easiest and natural way to convert a business in money.
Drawbacks
 The cost of the assets are undervalued that is a loss for a business owner.
 Invested capital goes to waste as it does not have any value for the owner after
liquidation.
CONCLUSION
The above report had concluded that planning for growth can be described as to build
more effective as well as efficient techniques that are supportive to carrying out operational
activities in proper manner. It is essential to carried out an efficient analysis of such factors that
can be considered for evaluating growth opportunities that is beneficial for company. The
organisation can conduct several kinds of methods to evaluate opportunities for growth which
helps to determine them properly in suitable way. The possible sources of funds should be used
to gain required amount of capital to run business properly.
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REFRENCES
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Planning. Elsevier.
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Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
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van Assche, K., Lo, M. C. and Beunen, R., 2013. A perspective on planning, smart growth and
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Online
What Is a BCG Matrix. 2017. [Online]. Available through:
<https://www.businessnewsdaily.com/5693-bcg-matrix.html>
Ansoff Matrix. 2018. [Online]. Available through: <https://www.smartdraw.com/ansoff-matrix/>
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