SDK Jewellers: Report on Evaluating Growth Options and Business Plan

This report provides a comprehensive analysis of growth strategies for SDK Jewellers, a small to medium enterprise in the retail sector specializing in jewelry and watches. The report begins by outlining the key considerations for evaluating growth options, emphasizing the importance of resources, internal capabilities, and core competencies. It explores Porter's generic strategies, including cost leadership, differentiation, and focus strategies, to determine the best approach for gaining a competitive advantage. The report also utilizes PESTLE analysis to identify external factors influencing business development, such as political, economic, social, technological, and environmental factors. Furthermore, the report assesses potential sources of funding available to businesses and concludes with a discussion on designing a business plan that includes financial information and strategic objectives, as well as an assessment of exit or succession strategies. The document also mentions that the company should use product differentiation strategy to gain a competitive advantage.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
Lo 1..................................................................................................................................................3
Analysing the key considerations for evaluating the growth options ....................................3
Evaluating the opportunities for growth................................................................................9
LO2 ...............................................................................................................................................12
Assessing the potential sources of funding available to businesses....................................12
Lo 3................................................................................................................................................15
Designing a business plan for growth which includes financial information a swell as
strategic objectives. .............................................................................................................15
LO4 ...............................................................................................................................................19
Asses exit or succession strategy for small business ...........................................................19
Succession strategy which can be utilised by the SDK is :............................................................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Planning can be referred to as the thinking about the activities which are required to be
performed in order to accomplish desired objectives. It is considered to be as one of the crucial
functions of management in an organization. Planning process in an organization basically
includes establishment of goals, formulation of strategies as well as outlining a swell as
scheduling activities for achieving the desired business objectives, It is considered to as an
important procedure in order to drive firm towards success. Business plan is considered to be as
a road map for execution of business activities hence assist in development of an enterprise.
Formulation of strategic plan is considered to be as initial activity included in the planning for
business growth. It is a strategic plan which assist in preparation of realistic vision for the future
of business. An effective business plan assist an enterprise in successful growth of business. It
provides management an ease in assessing the different options which can be adopted in order to
foster business growth, Business plan is considered to be as very much beneficial as well as
useful in obtaining the external funding that are needed for fostering business growth. In addition
to this, an effective business plan assist in addressing as well as eliminating the barriers which
might occurs in growth of business.
The study emphasizes on analysing the key considerations which are need to be
considered while evaluating growth opportunities in context of SDK Jewellers. It is basically an
organization which sells Jewellery and watches. Report also focuses on identification of potential
sources of funding available to companies. It will also include the business plan that can be
adopted by enterprise for fostering business growth.
Lo 1
Analysing the key considerations for evaluating the growth options
SDK jewellers is a small medium enterprise operating business in retail sector. An
organization is planning to expand its business with the intention of increasing sales and
profitability. The key considerations which management in SDK jewellers need to kept in mind
while evaluating the growth options are resources, internal business capabilities, core
competencies etc. As all these factors are the bases for growth. Innovation is the stratergy
which can be adopted by the SDK as it will help an organization in gaining competitive

advantage. In addition to this, business entity can implement the advance technology at
workplace, as this tactic will assist them in gaining the competitive advantage. New technology
will also provide firm an ease in facilitating the inn ovation which is very much essential in order
to help an enterprise in fostering business growth.
M1 options f or growth
Competitive advantage
In relation to SDK jewellers, management in an organization can utilize the porter
generic strategies for analysing the best strategy for gaining the competitive advantage. The
different strategies which has been suggested by Porter are:
Cost leadership: According to this strategy firm can gain competitive advantage by selling good
quality of goods or services at low price. In Context of SDK, company can reduce the price of
their products or services by increasing the productivity as well as decreasing the cost of
production. It is required by SDK jewellers to implement modern technology that is artificial
intelligence at workplace, as this tactic will help them in increasing the productivity and will aid
in minimizing the cost of production (Bridge and Dodds, 2018.). In addition to this, SDK
company need to concentrate on increasing its internal capabilities for accomplishing such
objective management can appoint highly skilled , knowledgeable and talented team of
employees. Cost leadership strategy can be applied by SDK for gaining the competitive
advantage. Costs leadership strategy will also assist an enterprise in achieving the leadership
position in an industry. The management in SDK in order to reduce the cost of production can
facilitate negotiation with suppliers and ask them to decrease the process of raw goods. Cost
leadership strategy will also assist an enterprise in achieving its objective of increasing sales as
well as profitability.
Differentiation leadership: As per this strategy, the SDK company need to target broad market.
In addition to this, SDK jewellers need to develop unique products or services as this will help
an organization in attracting more number of customers. It is the strategy which is applied by
SDK jewellers in order to increase its market share. The products or services should be
developed by SDK jewellers considering in mind the needs as well as demands of customers, as
this tactic will help firm in delivering high value proposition to their clients which is very much
essential in order to foster business growth and to gain competitive advantage in the market.

Cost focus: the companies with such type of strategies intends to gain the competitive advantage
by targeting few numbers of market segments. For instance, there are some firms such as
Asprey, beaver brooks in retail sector which offer same type of products or services at high
price to customers. Those organizations adopt such strategies they believe that customers are
much more conscious about the quality rather than price. Some enterprise in retail sector such as
Asprey, beaver brooks which adopt cost focus strategy intends to earn high profit by offering
customers with premium quality of goods or services
Differentiation focus: An organization intends to differentiate in just single or few target market
segment. In context of SDK, business entity has good image in the market, an enterprise has a
chance to differentiate itself from its competitors by offering customers with innovative goods or
services. In addition to this firm can target broader customer group for selling their products or
services. The manager in SDK before planning to implement differentiate focus strategy is
required to make sure that the customers really have the requirement as well as demand for the
gold watches which an organization is planning to launch in the market.
Differentiation leadership : Firms such as such as Asprey, beaver brooks with this type of
leadership strategy target much larger market with the aim of gaining the competitive advantage.
It is the strategy which includes selection of single or more criterion utilized by buyers in the
market and then positioning the business for meeting these criteria (McLean, 2019). Companies
such as such as Asprey, beaver brooks in retail industry which has adopted the differentiation
leadership strategy charge high prices for their goods with intention to cover the cost of
production. proposition to clients.
In context of SDK, It ha been suggested that an organization should use product
differentiation strategy, as it is the strategy which will provide firm an ease in entering into new
market. In addition to this, Product differentiation is considered to be as less risky strategy as
compared to other. It is the product differentiation strategic which will assist an organization in
accomplishing desired business objectives. The other benefit of the product differentiation
strategy is that it will provide business entity in attracting customers. It wuill also assist an
organisation in leading position in retail industry.

D1. Evaluating the particular options as well as pathways for growth
Cost focus:. In relation to the SDK company can gain the competitive advantage by offering
customers with good quality of products or services to customers ta reasonable price. The major
risk associated with cost focus strtaergy ios decline in profitability of enterprise.
Differentiation focus:In context of SDK, business entity can position its goods or services in
niche market. Business entity should concentrate on targeting the specific segment, as this tactic
will provide enterprise an ease in fulfilling the needs as well as meeting the expectations of their
clients. Major risk associated with the difference focus strategy is decline in the sales of specific
good due to changesb in customer taste nad preference.
Differentiation leadership :In context of the SDK jewellers, an enterprise can gain competitive
advantage by providing the high value proposition by implementing the differentiation strategy.
Increase in cost is considered to be as the biggest risk associated with implementation of
Differentiation leadership strategy.

Pestle analysis
While developing the plan for growth, management in SDK need to address as well as
develop the understanding about the factors which might affect the growth opportunity of an
organization. Pestle analysis is the technique which can be utilized by management in SDK for
identifying the different variables which might influence the business development of an
enterprise are:
Political and legal factors: The new rules or policies implemented by the government in the
nations might bring growth opportunities for SDK. The favourable political conditions in nation
might provide firm an ease in promoting the goods or services which is very much essential for
fostering business growth. In context of SDK, an enterprise should follow all the regulations
such as employment as well as company law, labour law imposed by the government in the
nation, as it will assist them in gaining the support of political parties which is very much
essential in order to foster business growth (Solomon and Van der Westhuizen, 2018,).
Economic factors: It is the external variables which might includes income level of customers,
economic growth of nation, inflation, fluctuations in prices, exchange or tax rate. Changes in All
these variables also have significant influence on the financial performance of company. For
instance, increase in the sales tax rate can result into decline in the profit margin of an
organization. It is the factor which also have significant effect on the buying power of company..
In addition to this, decline in the exchange rate provide enterprise an opportunity to gain
financial benefit.
Social factors: Such variables includes changes in the buying pattern of people, changes in
demands and preference etc. Changes in social factors have significant influence on the demands
for the goods or services offered by firm. Increase in the trends of watches made up of gold has
assisted SDK jewellers in increasing sales and profitability. Increase in the awareness about skin
problem due to the wearing of gold as well as increase in impurity of gold has lead to the decline
in demand for the goods or services offered by SDK which has adverse effect on the growth of
an enterprise (Reid and Tadj, 2018). In context of SDK, an organization has opportunity to foster
business growth by selling goods or services with the support of online companies. An
enterprise can form strategic alliance with online retail form as this tactics will assist business
entity in selling its products or services to large number of customers .. It will also help an
organization in increasing sales and profitability.

Technological factors: It includes the advancement in technology which has significant effect
on the growth of enterprise. The emergence of new technology such as artificial intelligence has
provided SDK with an opportunity to foster business growth by providing customers with
innovative products or services. But there has been increase in level of competition as many of
the companies such as Asprey, beaver brooks in retail industry bare using the technology. In
addition to this, many of firm in retail sector by marking online presence has increase the
intensity of competition, due to which SDK is facing the issue in focusing on its business
functions that further has adverse effect on performance and growth of an organization.
Environmental factors: It is the external factors which includes weather conditions,
environmental law etc. which has indirect effect on growth of firm. Environmental law imposed
by the government in the nation has created the intense pressure on firm to bring improvement in
their business procedure specially in packaging. In context of UK, strict employment law such
has health as well as safety act, wage act , working hour act, labour law etc. implemented by
legal authority in the nation has created the immense pressure on companies in retail sector. New
legislations are pressuring the retail firm to bring changes in their business procedures. In context
of SDK, an organization need to take high initiatives for reducing the adverse effect of its
business operations on environment as well as society.
It has been found from the PESTLE analysis that there are ample amounts of business
opportunities for growth in the market which can be captured by the SDK company. As by
implementing the market development strategy, SDK can gain the customer loyalty and by
offering quality of goods can influence people to buy specific products or services. Firm by
applying the market development strategy can easily increase its market share (Kepczynski,
Sankaran and Dimofte, 2018). The main advantages of product differentiation is that it enables
business entity to deliver the high value propositions to customers which is very much essential
for business growth. In addition to this, product differentiation strategy also provide organization
an ease in fulfilling the needs as well as meeting the expectations of its client.
New products or services:
Creation of new goods or services is considered to be as foundation of business growth.
In context of SDK, it is required by enterprise to develop as well as introduce innovative product
in the market such as an organization can launch gold or diamond watch with new features such
as calling features.

As new product development strategy will provide SDK jewellers an ease in attracting more
number of customers. Management in SRK need to develop the understanding about product
life cycle, it will assist them in developing an appropriate plan for eliminating the barriers such
as insufficient resources or knowledge which might occur in creating new products. Product life
cycle is basically specifies the various phases which a product undergoes before launching in the
market.
The different phases included in product development are:
Introduction : It is phase in the product life cycle where SDK organization need to take high
initiative for generating the awareness about the gold or diamond watch with calling feature. An
organization can adopt the low penetration pricing strategy as it is the tactics which will assist an
enterprise in increasing the market share more quickly. Penetration pricing is the strategy where
the price of the products or services are kept low to rapidly reach a wide fraction of the market
and initiate word of mouth. The strategy works on the expectation that customers will switch to
the new brand because of the lower price.
Growth: This is a stage in the product life cycle where the marketing team in SDK firm will
require to put their all efforts in developing the brand preference among customers. At this phase
of product life cycle, an enterprise need to make huge capital investment on promotional
activities as it is very much crucial for successful launch of product in the market.
Maturity: It is the phase where there is decline in sales of specific product of company tghat is
gold or diamond watch with calling features . At this phase, SDK company by reducing the price
of goods in order to maintain its sales growth. In addition to this, product differentiation can
provide an enterprise in positively influencing people to buy specific products or services (Ye,
Xiao and Zhou, 2019. ).
Decline :This is phase in the product life cycle where there is tremendous decline in sales of
newly launched goods or services. At such stage of product life cycle, SDK company in order to
maintain the sale can position its goods in niche market. In addition to this, other option which
an organization can opt for is discontinuing the good.
Evaluating the opportunities for growth
The management in SDK jewellers can use the Ansoff growth matrix for identification
of different business growth options. Ansoff growth vector Matrix provides suggestions that

companies attempt to grow based on market. It is the matrix which can be utilised by
management in SDK jewellers for analysing as well as planning their strategies for fostering
business growth. As per the Ansoff matrix there are various options which can be adopted by
SDK jewellers for fostering business growth these strategies are :
Market penetration : It is the growth strategy in which companies mainly emphasizes on
selling its existing products into existent market. In relation to the SDK jewellers and
organization can adopt the market penetration strategy as it will assist an organization in
increasing market share for the current goods that is diamond or gold watch with calling
features. sell by them. An enterprise can achieve its objective of increasing market share by
adopting the competitive pricing strategy or cost leadership pricing strategy . In addition to this,
business entity will also need to concentrate on advertisement for goods or services as well as
sales promotion. Marketing team in an enterprise is required to invest most of their resources on
personal selling as it is the tactics which will help them in accomplishing the objective of
increasing sales and profitability. SDK jewellers must concentrate on restructuring a mature
market by driving out competitors, for that the company should concentrate on aggressive
promotional campaign (Leick and Lang, 2018). Loyalty scheme can be introduced by firms for
attracting the customers. The strategy of market development is all about business as usual. In
context of SDK, an enterprise need to gain information about competitors as well as requirement
of customers. Marketing team in an SDK jewellers need to conduct the market research as this
tacit will help an organization in gathering of essential information related to topic.
Market development: business entity can opt for increasing its retail outlet in more number of
countries. Sdk jewellers can form strategic partnership with other firms such as Asprey, beaver
brooks for selling their gold or diamond watch with calling features to customers. In addition to
this, SDK jeweller can adopt the various pricing policies for attracting customers.
Product development: It is the strategy where company launches new good in the existing
market. Product development strategy can be adopted by the SDK jewellers, as it will help them,
in gaining competitive advantage (Argenti, 2018.). SDK jw3eweller canm launch gold or
diamond watch with calling features. SDK organization in order to launch new products that is
gold or diamond watch with calling features in the market is required to develop additional
competencies. An organization by introducing new good in the market can attract the customers
in existing market and could easily influence people to buy goods or services. The marketing

team in SDK organization can conduct the market research as this tactic will help them in getting
the idea for new product development.
Diversification: It is considered to be as other effective growth strategy where an enterprise
promotes its new goods that is jewellery in new market. Diversification strategy is considered to
be as most effective strategy when an organization wants to increase market share (Sun, Wu and
Yang, 2018). It is considered to be as one of the risk strategy as an enterprise is expanding its
goods into unknown market. In context of SDK, an organization need to have a clear idea about
the target which they have to achieve by implementation of diversification strategy. The
marketing team in an organization is required to conduct the risk assessment before planning to
enter into specific market. The market diversification can be quite risky but highly rewarding
strategy.
Illustration 1: Product life cycle

LO2
Assessing the potential sources of funding available to businesses.
Funds are considered to be as very much essential resources that are required for
establishing as well as managing the business. The financial resources are needed for performing
the different business operations. In context of SDK, the source from where an organization
obtain fund is through selling of goods or services. Financial resources can be referred to as
funds available with business for spending. Proper management as well as utilization of financial
resources are required for operating business in efficient manner as well as for promoting
business. Funds are needed by company in order to purchase machinery, equipment, technology
for providing better services to customers. There are lot many options from where SDK jewellers
can raise funds from such as bank , equity, angel investors etc. It is very much essential for
finance manager in SDK jewellers company to select suitable options for obtaining the funds in
order to meet capital requirement, as due to inappropriate selection of funding options business
entity might have to face various financial issues. Financial decision taken by management in an
organization can have direct as well as significant effect on the long term growth of an
enterprise. The different sources of funds are:
Banks: It is one of the traditional type of business finance. Financial institution's money to an
entrepreneur on the basis of value, business Plan as well as ability of company to pay back loan.
Such source of raising the funds is most suitable for those firm who have good history of credit.
Bank loan is among one of the most reliable as well a trustworthy source of raising finance.
Advantages :
The main benefit of raising funds through bank loan is that by suing such source an
organisation can borrow high amount of money for long period. In addition to this, other
advantage of bank loan is that it consist of less amount of interest as compared to other sources
of funding that are available to business. In relation to the SDK jewellers, an organization can
use bank loan as a source of raising funds for expanding business.
Disadvantages :
The biggest drawback of this source of raising funds is that it has not been designed
considering the small business. In addition to this, other disadvantage of bank loan as a source of
finance is that an enterprise have to fulfil lots of formality for raising funds which could be quite