Business Development Report: Rowlinson Knitwear Expansion Strategy

This report, prepared in partnership with IMA7002 Business Development, examines the business development strategy of Rowlinson Knitwear, a UK-based manufacturer of corporate and school wear. The report focuses on expanding the company's operations into the Australian market. It begins with a business description and identifies growth opportunities, utilizing the Ansoff matrix to analyze market development as the most suitable approach. The report details the process of identifying and developing these opportunities, emphasizing the selection of Australia due to its favorable economic, political, social, and technological environments. The business development process, including growth opportunities, external and internal analysis, and the crafting of a business plan, is then discussed, along with entry strategies like strategic alliances. The report concludes with an evaluation of the business's potential for future success in Australia, highlighting the importance of consumer segmentation, competitor analysis, and effective human resource management for achieving competitive advantages and sustained growth. This report is available on Desklib, a platform providing valuable study resources.

In partnership with
IMA7002 Business Development
IMA7002

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Business description...........................................................................................................2
Opportunities of business...................................................................................................2
How identified and develop................................................................................................3
Business development process.........................................................................................4
Evaluation of business in future......................................................................................15
CONCLUSION.............................................................................................................................16
REFERENCES............................................................................................................................17

INTRODUCTION
Business development introduces to the development of long-term value for an
enterprise from markets, customers and relationships (Sadiqin, 2020). This can be taken
to mean any activity or function by either a long or small organisation, for profit or non-
profit enterprise which serves the motive of creating the business in certain manner.
Business development embraces a broad scope of activities, initiatives and ideas that
an organisation management and owner implement with the objective of developing the
business effectively and in better manner (Sharma and Soederberg, 2020). It can include
different objectives, such as business expansion, sales growth, increased profitability
and the formation of strategic partnership. Along with this, successful development of
business impacts on every department within an organisation (Painter, Hibbert and
Cooper, 2019). These departments are marketing, sales, manufacturing, human
resource, product development, finance vendor management and accounting. In simple
word, business development can be outlined as the initiatives, activities and ideas
aimed in relation to making a business more successfully. This includes growth in terms
of business enlargement, increasing revenues, making strategic business decisions,
increasing profitability and making strategic partnership. Therefore, business
development is important for the growth and success of business organisation in
successful and effective manner.
For this report, Rowlinson Knitwear is a chosen manufactures apparels that is
mainly specialise in producing of corporate wear for office and school wears for school
students. Company conducts its business within the United Kingdom. Company wants
to develop their business in different nations because of gaining competitive
advantages.
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Main purpose of this report is to developing the business in new country with
successfully (de Langen, Sornn-Friese and Hallworth, 2020). For completing this report,
there are different points that will be essential. These are business description,
opportunities for business, business development process etc. These are major points
that will be useful and significant in completion of full report successfully and
systemically.
MAIN BODY
Business description
Rowlinson Knitwear is a private limited company that was incorporated on 1972
with purpose of expanding their business. Rowlinson supplies long-lasting, affordable
and ethically manufactured garments for the corporate wear and school wear markets.
Company only supplies or produce their uniform garments via a nationwide network and
web of independent school wear retailers. Company offer plain Knitwear and 18 design
of particular striped knitwear or clothing for next day delivery (Vaskelainen and Münzel,
2018). Company has their business in United Kingdom and wants to expand that is
essential for their growth and success in successful manner.
Opportunities of business
A business opportunity is described as a packed investment of business that
allowing the purchaser to begin a business. Rowlinson Knitwear wants to expand their
business operations and functions in specific country which is Australia (Chen, 2020).
Company not have their business in Australia as it helps them in expanding of business
in such country. For identifying the business opportunities for Rowlinson Knitwear in
Australia, Ansoff matrix will be used that includes four stages such as market
development, product development, market penetration and diversification. All these are
effective stages that will be defined as below:
Product development: This is a strategy that basically focuses on reaching new
product with existing market. Rowlinson Knitwear produces the school wears and
corporate wears to the customers that helps them in its business growth. Rowlinson
Knitwear not require for developing their product in existing market because it not
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facilitate them in development of its brand image in national level (Toppinen, D'amato and
Stern, 2020).
Market development: This is an effective strategy that is mainly emphasis on
reaching new marketplace with existing products within the portfolio. This is a useful
strategy for Rowlinson Knitwear because it facilitate them in expanding of its business
activities and functions in new marketplace.
Market penetration: This strategy is focuses on maximising the sales volumes
of existing products to the business's present market. This strategy is not much more
valuable for Rowlinson Knitwear because it only help business organisation in
increasing of sales volume for new product.
Diversification: This is a last strategy of Ansoff matrix that is emphasis on
reaching new marketplace for innovative product. This can be diversified into two types
which are related diversification and unrelated diversification (Cimini and et. al, 2017).
Both are essential types of diversification in improvement of business growth and
success. This strategy is not useful for Rowlinson Knitwear because it completely focus
on developing new product in new market.
Therefore, above mentioned all these are effective strategies of Ansoff matrix but
according to the Rowlinson Knitwear, market development is useful and beneficial
strategy. By using market development strategy, company can easily expand their
business in new marketplace with existing product (Hendratmi and et. al., 2019). As it
helps them in attracting of international customers towards the brand that results are
higher sales, improved brand image and attainment of competitive advantages.
Rowlinson Knitwear wants to develop and expand their business in Australia because
there are huge opportunities for them. There are different reasons for developing
business in Australia. These are high quality of life, modern metropolises, general
wellbeing, stunning weather etc. These are biggest and effective reasons for developing
business in Australia.
How identified and develop
The approach selected to develop the business is market development. Here,
management of an organisation focused over the expansion of business in new market
through use of existing products (Eversole, 2019). The market selected from same
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respect is Australia. The main reason behind the selection of market development
approach is that most effective in nature by using of the current products as compared
to others. This will help to get the viable amount of returns on ascertainment of the
limited amount of risks. So, on comparative basis with other approaches of
development, market development is best that providing an opportunity to organisation
that make presence in new market through effective utilisation of the current product
capabilities. The reason behind the selection of Australian market as expansion is
immense number of opportunities attached for businesses. Most of the factors has
positive presence in Australia that providing an opportunity to grow effectively and
efficiently. The positive political environment of an organisation present as the strength
of all the businesses to exploit opportunities in easy manner through building of the
strategies (Jeong, Park and Yoon, 2019). On the other hand, good economic condition will
help the organisations to easily attain fund from different sources and arrange their
resources in limited period of time to get success. The god level of technological and
social environment will also help an organisation grow in market in speedy manner. The
legal and environmental factor has some level of threat for an organisation on initial
basis but in future they must present as the beneficiary point regarding good image in
society and industry. So, in overall manner all the external factors will create
opportunities for an organisation to successfully establish a business (Diaz-Briquets,
2019). The method that will help in most effective manner for an organisation to grab the
opportunities or enter in the market in joint venture. This will help in easy ascertainment
of the resources along with local client base. The another benefit attached with this
option is that help in bringing name within industry on easy basis along with help in
performance of all different functions which are important to survive in market for longer
period of time. So, in ultimate manner the usage of this option will help an organisation
to get the maximum level of benefits on expense of least amount of cost with risks.
Business development process
Business development entails process and tasks to implement and develop
growth opportunities in and between organisations. New business development is the
most risky and complex way to generate new sales of volume and revenue. One of the
main aims of developing new business is to generate profits with a product or services
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in new marketplace (Bannikova and et. al., 2019). For this, business development process
will be used that includes different steps such as growth opportunities, external analysis,
internal analysis, craft business plan and implement initiatives. All these are important
and essential steps of business development that will be explained below in detailed
manner.
From my research it has been determined different steps of business
development. All these steps will be described as below:
Growth opportunities: This is an important for business in developing of
business in new marketplace. From the above discussed Ansoff matrix, it has been
identified that Australia is a best place of developing business successfully. In Australia,
there are different sources that will be essential and significant in business development
for Rowlinson Knitwear. There are different growth opportunities for Rowlinson Knitwear
in Australia. There are different ways for identifying the growth opportunities in new
marketplace which is Australia (Postavaru and et. al., 2019). This will be defined as below: Consumer segmentation: It is require for company to understand their demand
and must determine consumer segments that share common characteristics. In
Case of Rowlinson Knitwear, company must identify their target customers in
Australia (Bāliņa, Žuka and Krasts, 2016). As it will help them in attracting of large
number of customers easily and also attaining of valid outcomes.
 Identification of competitors: This is another and effective way for identifying
the growth opportunities in Australia. For this, Rowlinson Knitwear must identify
their competitors in Australia. Identification of competitors, company can easily
develop their business and achieve competitive advantages within a less period
of time (Manninen and Meristö, 2019). This will also help them in improvement of
business growth and development effectively and successfully.
Therefore, these are effective and useful ways for identifying the growth
opportunities in new marketplace (Jamali, Abdallah and Matar, 2018). Along with this,
there are certain opportunities for Rowlinson Knitwear in development of its business in
Australia. Some business opportunities will be explained as below:
Large number of customers: This is a biggest opportunity of developing
business in Australia. In this country, there are larger base of customers who are
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interested for purchasing school wears and corporate wears. This opportunity assist
business organisation in attracting of larger number of customers that results are higher
productivity, increased sales, improved brand image etc. These are major advantages
for Rowlinson Knitwear in development of their business in Australia.
Optimum utilisation of resources: This is another opportunity for Rowlinson
Knitwear as it helps them by providing appropriate amount of capital to develop their
business in successful manner (ISTIANDARI and ANANDHIKA, 2019). In this, company
become able in using of advanced technologies, implementing of innovation etc. There
is no issue of capital for company that results are increased sales volume and improved
brand image.
Effective human resource management: This is significant opportunity for
company to develop their business operations and functions in Australia (Van Looy and
Van den Bergh, 2018). With the help of this opportunity, Rowlinson Knitwear can easily
recruit talented and knowledgeable workforce that helps in increasing of customer
satisfaction and attainment of competitive benefits.
Therefore, all these are biggest growth opportunities for the company that are will
be beneficial for them in its business developing in Australia. Along with this, there are
different entry strategies that support business in entering in Australia market. These
strategies will be explained as below:
Integration of business: This is an effective way for entering into international
marketplace. In this strategy, an organisation becomes able to integrate with another
organisation. In this main purpose of business is to increasing profit and sales (Lund-
Thomsen, Hansen and Lindgreen, 2019). There are different strategies under integration of
business. These are: Strategic alliance: This is another way of entering into new market via a
strategic alliance with a local partner. This includes a contractual agreement
betwixt two or more organisations stipulating that the participating parties will
collaborate in a way for a few times to attain a common purpose (Yan, M.R.,
2018).
 Joint venture: It is a partnership between two people or organisations. This is a
way for entering into new market with purpose of sharing risk and profit equally.
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In this, two organisations agree to work with each other in a specific marketplace,
either product or geographic, and develop a third party to undertake this. Profits
and risks are commonly shared in equal basis.
Therefore, all these are effective strategies of entering into international
marketplace. For Rowlinson Knitwear, Joint venture under integration of business is
more effective and useful strategy because it helps in increasing capacity. There are
different advantages of joint venture for Rowlinson Knitwear such as access to new
markets and distribution network, sharing of risks and profits with a partner, access to
new knowledge and expertise i.e. specialised staff, access to greater resources such as
finance and technology (Anjum, 2020). Therefore joint venture is important entry mode
for company in development of its business successfully.
External analysis: Meaning of external analysis is to examine the industry
environment. Along with this, there are three normally used and for an organisation,
including some factors such as competitive position, competitive structure, history and
dynamics. There are different factors that will be important and effective in identifying of
external factors that impact on business development. These factors are:
Customer analysis: This introduces to the critical section of an organisation's
business plan as well as marketing plan. Customer analysis identify the target audience,
ascertains the requirements of these clients, and them define how the product fulfil the
customer's needs. This is significant for Rowlinson Knitwear to analysis the needs and
wants of Australia's customers about their brand. In this, company determine the
customer's needs which are school wears for schools students at affordable price and
higher quality (Alotaibi, 2017). Company must fulfil the needs and wants of customers
towards their products that facilitate them in achieving of competitive advantages within
less period of time and in successful manner.
Segments and target market: This is essential for Rowlinson Knitwear to
identifying the target market and segments. In Australia, segmentation of Rowlinson
Knitwear is divided into two categories which are educational sector and corporate
sector. For this, target market of the company is students of the school and business
person both men and women (Ismoilov and et. al., 2020). This help company in increasing
of sales ratio and also accomplishing long term goals and objectives.
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Competitor’s analysis: This is important for Rowlinson Knitwear to identify their
competitors and after them to develop their business in Australia. Competitors of the
Rowlinson Knitwear in Australia are Akubra, First-ever, Pelaco, VonZipper etc. These
are main competitors that may be impact on business sales and growth or Rowlinson
Knitwear. In order to develop their business in Australia, company must identify their
competitors. As it will assist them in improvement of their growth and success in positive
manner (Samouylov, Gaidamaka and Zaripova, 2016).
Industry and environmental analysis: This is significant for company to identify
the industry and analysis environment of Australia. Rowlinson Knitwear is deal in
clothing industry that will facilitate business in development of its growth.
Along with this, PESTLE analysis will be used for identifying the political,
economic, social, technological, legal and environmental situation. PESTLE analysis of
the Australia will be defined that helps Rowlinson Knitwear in development of its
business successfully (Press, Robert and Maillefert, 2020). This is the effective model of
external environment analysis. This help in determination of the different factors exist in
nation along with their impact over organisations. It is the duty over management of an
organisation that they always focus over these factors while carrying business activities.
This will not only help in building strategies but also aid in gaining competitive
advantage through attainment of the current market opportunities. This analysis has
more value for the new organisations and the organisations want to start and expand
business in market. This help in determination of the different situations that exist in
business environment at different levels along with their associated opportunities and
threats (Mak and Chang, 2019). The success of an organisation largely depends over this
analysis from where they can easily enter in market and build differentiated place
(Desfiandi and et. al., 2019). In the current scenario, management of Rowlinson Knitwear
want to expand business in new market. In this regard, they selected Australia as
potential market for starting business activities with the use of same products. Here,
application of Pestle not only help to gain information about the external environment
but also providing an opportunity to build effective strategies through which they can
easily stand in market. The detailed level analysis in respect to Australia's Pestle is
presented below;
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PESTLE Analysis
Political This factor includes the government policy, instability in
overseas market, tax policy etc. These are major factors that
impact on business performance if company (Achinas and et. al.,
2019). In case of Rowlinson Knitwear, company wants to
expand their business in Australia. This is the important factor
that covers about the political conditions, taxation policies and
other international interferences on government functioning.
This aspect has major impact over functioning of an
organisation because continuation and discontinuation totally
depends over the capability to adhere country's rule. In respect
to Australia, they have stable government along with tax
structure. This will present as the business opportunity in front
of the all organisations. This is also beneficial for the Rowlinson
Knitwear to start new business in Australia because stability
will help to build strong policies and presence in least period of
time.
Environmental This is the factor that covers about the point like environmental
safety and pollution. Australian government is focused towards
the protection of environment and have the strong laws and
policies. This brings the threat in front of the all organisations
that they always adhere these laws and safeguard the
environment. If, they unable to do so then must have to pay the
fine and other typical consequences. Similarly, this will present
as threat in front of Rowlinson that they adhere these laws and
setup the production structure which has least impact over
environment (Madsen, 2020). This will impacts the organisation
in many ways like increases the cost, decreases the profit
margin and if not fulfilling the laws, then paying fines. On broad
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