SDK Jewellers Growth Strategy: A Business Development Report

Desklib provides solved assignments and past papers to help students succeed.

PLANNING FOR GROWTH
1

Table of Contents
Introduction......................................................................................................................................3
Key considerations for Growth options...........................................................................................4
Sources of Funds and their Implications to the Business................................................................7
Business Plan.................................................................................................................................10
Exiting Strategy.............................................................................................................................14
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
2

Introduction
This report will be discussed the concept of the growth and opportunities of the company. The
research will be based on the chosen company, i.e. SDK Jewellers. It is the online retail business
of exclusive and expensive watch. It service is the only United Kingdom. The report will be
divided into four tasks. In the first task, it considers how the business recognizes and evaluates
its growth. Due to this, the business will inspire to achieve its future goals and objective. The
second task will be discussed the concept of funding per the financial helps to the business. The
various sources will be discussed, and in the last, the preferable sources will be discussed in
detail. The third task will be enlightening to the business plan of SDK Jewellers. It includes
management, organizational structure, marketing and its funding concepts. In the last task or
fourth task will be focused on an existing strategy which helps to sustain in the market for a long
time. Learners will understand the complete concept of business growth and progress.
3

Key considerations for Growth options
SDK Jewellers is an online retailer of UK. It was established in 2007 and Jewellery, and Jason
Todd designs the watch. It aims is to grow in a wide area and accomplish company strategies.
There are various plans which are needed to implement for improvement and development of the
company.
The company need to understand customer demand and expectation. For implementing a new
strategy and achievement, customer needs to involve with the market trend. It helps the company
to offers such designs and quality, which is most popular in the market. It helps to increases the
customer rate and maximizes the level of quality.
Proper implementation of feedback explores the opportunities of the business.SDK Jewellers
consider the customer feedback and evaluate what the major lacking factor which is faced by the
customers. Identifies the weak point and resolve it accordingly by which they can minimize the
impact of the weakness of the business (Ramji and Etowa, 2018).
The most crucial significant factor for the business is to establish a good relationship with the
suppliers, customers and investors. It considers its growth by evaluating the total supplier rate
and overall selling rate.
If the organization optimises the use of resource and no loss of human resources, another
resource will be considered as the growth of the organization.
The organization used Ansoff Matrix for evaluating the growth of the organization. In this
strategy, the organization compares its product or other market product according to the market
strategy. By the help of this organization identifies its growth and opportunities. This process
considers the four levels, such as:
Product Progress: This method helps to develop or improve the product. The improved or
developed product maximizes the sales rate of SDK Jewellers. The trendy design of Jewellers
and watches helps to attract a new customer. It improves the previous sales rate of the business.
4

It explores the opportunity for earning more revenue and substantial production in the industry
(Dawes, 2018).
Market Development: The growth of the organization will be considered when it explores its
strategy according to market development.SDK Jewellers provides its Jewellery and watches
within the nation only (United Kingdom).
Market Penetration: This method helps to enhance the sales rate of the same type of product. So
SDK Jewellers need to execute new plans and activities. It also helps to achieve the increment in
market share of service or product (Jochem, et. al., 2018).
Diversification: It is a corporate strategy that enters into the new market which doesn’t currently
operate the business of the same product or service.SDK Jewellers have the opportunity to adapt
to the retailer store in the UK market of Jewellery and watches.
Framework to demonstrate
The establishment of a framework is considering properly setting the operational activities. It
helps to provide management to perform each task in the business. It also manages the
competition with competitors.SDK Jeweller is following the set framework to accomplish the
business goals and short term objectives.
Technological: According to the recent trend, most of the business is working with the new
technology to enhance the area of working and developed a new strategy in the market. Online
retailer business acquired various technology and element in the promotion, marketing,
transaction, funding. Artificial intelligence reduces the majority the risk and saves time in the
industry (Mallet, et.al., 2019).
Social: SDK Jewellers served area is the only UK, so its primary focuses on the demand of UK
people. They are fashion freak towards their Jewellery and watches. And interest to adopt new
products as well. So, it needs to offer carious designed by the famous designer using the right
quality resources and provide some discounts offers as well.
Economic: It is the most important factors to run any business.SDK Jewellers faces various
fluctuations in financial situation. So, it requires adopting quality resources and manufactures the
5

sample first. If the demand for the same product maximizes, and then retailer needs to increases
further. Funding, loan, capital and profit are the only source of funding to the business. So, it
needs to implement according to which they can manger the activities and resource in an
optimum manner.
The online retail business has its own risk, which affects the growth of the market and minimizes
the opportunity of the company.
Security: E-commerce sites have the insecurity of hacking websites, credit card details, error in
data, and unprotected services are tackled by cyber fraud. Due to this risk, the customer is not
more reliable towards online services. The SDK Jewellers are working according to the policies
and legally. The proper implementation of security and accomplished complete transparent
protection from strong passwords are enabled to provide service to the customer. Still if there in
the case of uncertainty and losses its data, the business will compensate a considerable amount
(Barkatullah, 2018).
Product Warehousing: In online shopping, e-commerce business provides the guaranteed
deliver data to the customer, if they are unable to provide the product on the same date. It is
challenging to manage a customer complaint. Delivery wrong product or delay in the delivery
date. Its impact of the loss of customer is in the future, and it evaluates in the inappropriate
business practices in the business.SDK Jewellers maintain each and every activity by which they
will never face the situation of product related issues. These risks are fetching out the loyal
customer as well (Geiger and Stockinger, 2019).
6

Sources of Funds and their Implications to the Business
Funding is the most important factor for any business to accomplish its goal and objectives. For
production, manufacturing, marketing, promotion and other activities are required a huge amount
of fund in the business. Due to these reasons, businesses are identifying its various sources to
collect the fund or money. If a business collects from the various sources, it has its benefit and its
drawbacks. For considering these decisions, SDK Jewellers understand the entire as wise let the
source of funding.
SDK Jeweller is the most flexible online retail businesses which took it a conscious decision by
analyzing all the relevant factors. The funding is again a significant factor which helps to grow
the organization and implement the activities successfully. There are major types of sources
which can fulfil the fund's requirement of the e-commerce business. The most useful sources are
capital, bank loans, e-commerce grants, Venture capital etc.
Capital: It refers to the saving of the owner of the business which is implemented on the start-up
to initiate the business. Entrepreneurs critically took this decision in which the aspects and
choose wisely to invest its own money on the business. The benefit of this fund is that it doesn't
acquire any interest rates, but the drawback of this is if there is any the owner will lose its saving,
which is invested in the business.
Recommendation
• The business owner must invest the capital if there is a guarantee for the success
• Business needs to implement the money with the partner
Bank Loan: It is the most prominent way to collect or gather fund for the business. Each
business is run by the bank loan due to its reliability and single-digit interest rates.SDK Jewellers
are preferred to take bank loan because it is readily available to the business, and SDK Jewellers
has its brand image, which is a positive impact on banks. The benefit of this source is its
reliability and lowest interest rate. The drawback of this loan is if there is any cyber hacking in
7

which organization lost its al the transaction, due to this company will not be able to return the
investment (Gambacorta, et.al., 2019).
Recommendations
 When an entrepreneur requesting for the bank loan, the owner need to arrange or set the
properly required documentation with them
 The idea of business must be clear and present in very preventative manner by which
bank loan must be sanctioned easily
E-commerce Grants are the available option for the e-commerce business to request for the
fund. The nation helps to promote the start-up and e-commerce business to initiate the business.
It is provided by the commerce department, which enables them and motivates to accomplish the
business goal. Its benefit is that readily available and less interest rate for a more extended period
and its drawback is if the business will not be able to achieve the goal, the new of the business
need to return the fund by their savings (Golwalkar, 2019).
Recommendation
 Establish clear vision and mission of business
 Set the goals of business before requesting funds from the E-commerce Grants
Venture Capita: It is a unique technique to provide funding service to the new growing business.
Venture taking the risk to them to gives a large amount of fund and helps to grow the company
in the respective areas. It is the financial help and builds the financial portfolio of the venture.
The benefits of this fund are directed to the support from the large ventures and drawback is that
if the business will not affect successfully and not able to accomplish its goal. Repayment will be
a difficult task for the company.SDK Jewellers is connected with various venture because it sells
the expensive watch through its e-commerce site.
Recommendation
 Beware about the venture policies and strategy about venture capital
 The valuation must be reasonable, business need to build the trust towards venture
8

The sources mentioned above of funding are a useful approach which helps financial to the start-
ups or entrepreneurship to start the business efficiently. Considering these aspects, the most
appropriate way of funding is e-commerce grants which are provided by the country. Its interest
rate or no interest is comparatively lower than any other sources. Nation promotes business and
start-up by supporting financial and takes time to return the payment.
It is the most reliable service on which an owner can easily trust and adopt the policies because
the government itself establishes all these policies. It promotes the women empowerment as
well. It is the free money if the investment is small, but if it requires a large amount, then the
company need to go through the bank loan which is the next considerable source of funding
having a list of benefits. Like bank loans are sanctioned according to the demand and policies of
the bank. So, it is readily available for the large amount of loan.
The owner can return the bank loan by asking EMI, and its interest rate is also comparatively
low. There is no need to share the profit with the bank, which is done with the investors or
partners. Due to these significant reasons, bank loan and e-commerce Grants are the most
suitable for collecting fund for the business.
9

Business Plan
A business plan is a systematic approach which helps to plan for the future. It is related to
organization experience and achievements. Purpose of establishing a business plan is to set
actual objectives for upcoming years. It helps to analyse what organization really does and what
it can do. It is essential for the SDK Jewellers to make plans for the growth of the business. It
provides ideas for company business to find out the possible risks and protect to the store.
Summary of the organization
SDK Jewellers were founded in 1991. Founder of this online watch retailer is sham naib. This
Jeweller was renamed and changed into watch shop limited in 2013. Its headquarters in reading,
United Kingdom; its products are watches, Jewellery and sunglasses. Aurum holidays is the
parenting retailers and famous for its luxurious Jewels. It is also renowned for its sunglasses
with designers brands such as ray-ban, Nike and Armani. These retailers get many awards for its
products and excellent services. Company get online retail, sales field awards. The company
wants to enhance its business for growth and contribute its efforts towards company progress
(Hopp,et. al., 2018).
Marketing investigation
Business is based on a preconceived idea. There are various types of products provide to the
customers, which is watches, Jewellery and sunglasses. Management of the company focuses on
customer’s feedbacks and sales reports. Customers can easily purchase by pre-made Jewellery
and customized designs at its stores.
Comparative analysis
It is investigated that there are many competitors of this Jewellery retailers industry which
provide different types of Jewellery. It increases competition. SDK Jewellers focus on to
providing custom pieces according to the customer's needs and want (Kusumaningrum and
Hidayat., 2016).
10

11

Market analysis
In today world Jewellery is the fastest growing regions. In the modern era, Jewellery business
and watch, businesses play a vital role. It plays a dynamic role; it is investigated that this
business is most prevalent in women's. SDK Jewellers contribute its efforts in fashion and media.
Jewellers have mixed opinions towards the future and focus on qualitative products rather than
quantitative approaches.
Market segmentation
Jeweller's retailer’s focus on customer oriented and based on customers choices. It concentrates
on customer's needs and latest trends, which help to the retailers to provide the best possible
services for customers. It has decided to target various types of segmentation which include;
families, people from different age groups sectors, and new generations. Purpose of the market
segmentation of retailer's Jewellers is to dividing the market into various segments for growth
and upgrade business.
Marketing strategies
SDK Jeweller's retailers provide qualitative and luxurious products for its customers. Marketing
strategy is essential for it because it helps to enhance its business and support to achieve goals
and targets in future. SDK Jewellers must use four P's marketing strategy, which helps to
maintain its dignity and reputation. Product, price, place and promotion components market
analysis helps to estimate what retailer actually does for their business and what is necessary for
them.
Product: Retailers provide best services and customized Jewellery for its customers. They
focused on fulfilling customer's needs and followed the trends. The product should be the focus
on current trends and qualitative products (Stark, 2016).
Price: Retailers should focus on setting reasonable prices for their products. It helps to gain the
customer's interest and helps to increase productivity.
12