Unit 42: Planning for Growth: Growth Opportunities for SMEs Report

This report analyzes growth opportunities for SMEs, focusing on the impact of Brexit and strategies for expansion. It begins by exploring the use of the Boston Consulting Group (BCG) and GE/McKinsey matrices to identify growth opportunities, detailing their histories, differentiations, and applications within the context of Dogan London Ltd (DLL). The report then assesses Ansoff's growth vector matrix, evaluating market penetration, product development, market development, and diversification strategies. It further examines various sources of funding, including crowdfunding, peer-to-peer lending, and venture finance, alongside their respective advantages and disadvantages. The report also includes a business plan identifying strengths, opportunities, values, ethics, and exit strategies to provide a comprehensive understanding of business growth and sustainability. The conclusion emphasizes the importance of strategic planning and financial management in achieving growth objectives.

PLANING TO GROW

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
PROJECT PART 1......................................................................................................................................4
Explaining use of Boston Consultancy Group and GE/Mckinsey matrix to determine the best growth
opportunities............................................................................................................................................4
Assessing of Ansoff’s growth vector matrix to evaluate growth opportunities........................................7
Explaining the sources of funds along with benefits and drawbacks.......................................................9
PROJECT PART 2....................................................................................................................................11
Strategic objectives................................................................................................................................12
Areas of strengths..................................................................................................................................12
Identifying opportunities-......................................................................................................................13
Values and ethics...................................................................................................................................14
Sources of finances................................................................................................................................15
Assessing exist strategies along with its advantages and drawbacks.....................................................16
CONCLUSION.........................................................................................................................................18
REFERENCES..........................................................................................................................................19

INTRODUCTION
Planning to grow is one of the crucial activities that gives assistance in developing
business practices. In the current scenario, company plan adopts several approaches to identify
opportunity so that with help of competitive advantages can be achieved. The current report has
selected Dogan London Ltd (DLL) which is furniture manufacturing organization of required
location. This is private ltd organization based in United kingdom. The current case study will
give emphasis on Boston Consultancy Group and Mckinsey matrix through highlight its history
and differentiation between both techniques. Present report will include GE and BCG to identify
opportunities in the given context. Ansoff matrix will be utilized to identify the significant
opportunities through emphasizing on all its four strategies. Report will comprise advantages and
disadvantages of sources of finance to meet current scenario. The present case study will include
business plan through identifying strengths, opportunities, sources of financing, values & ethics,
exist strategies, etc to provide deep knowledge regarding the same.
MAIN BODY
PROJECT PART 1
Explaining use of Boston Consultancy Group and GE/Mckinsey matrix to determine the best
growth opportunities
History
Boston Consultancy Group Matrix (BCGM) was introduced in 1968 by Bruce Henderson
which helps with long term strategic planning to provide guidance to identify growth
opportunities. GE Matrix is nine cell portfolio of strategic business unit which has been
propounded by McKiney & company consultancy group in 1970s. It gives insights about two
dimensions evaluating attractiveness and company’s strength regarding position in market.
Dogan London Ltd (DLL) organization can take this into practice for evaluating the
opportunities prevailing in market for growth.
Differentiation

The both type of matrix are widely distinct from each other which helps in understanding
deep knowledge regarding the same.BCG matrix is growth share model representing
development & market share enjoyed by the firm. Whereas, GE matrix implies multifactor
portfolio that assist firm in making strategic choices in respect to product lines based on their
position in the grid. The most important differentiation that required to be taken into practice is
that BCG considers market share & growth (Hossain and Kader, 2020). On the other side,
business strength and attractiveness are two kinds of actor which are focused by GE matrix. The
main objective of BCG matrix in DLL will be to aid organization to deploy its resources among
various business units. Crucial goal emphasized by GE is to prioritize investment among various
firm units.
Evaluating growth opportunities through applying both matrix in the context of DLL
Boston Consultancy Group Matrix
It is one of the important strategies utilized by organization to determine the process of
allocating monetary resources in its functional areas. Dogan London Ltd can take this tool into
practice to evaluate its effectiveness and performance of its business functional units. It is
executed by categorizing in form of stars, cash cows, question mark or dog. DLL can utilize this
particular technique to allocate its funds into its working segments into effective structuring. It
will enable it to have higher market growth rates and greater potential to move towards success.

Dogan London Ltd can utilize this tool to offer its product to market according to its
growth rate. Organization will be in position to take strategic decision through identifying
prevailing opportunities. Company can assess the opportunity via assessing cash demands for
products and its development cycle in order to allocate resources. The structured format of this
particular matrix comprises four segments that shave distinct quality to make firm
understandable about particular opportunity and threat (Yahya, Khatami and Al Khansa, 2020).
Question mark indicates that products of Dogan London Ltd may not generate profits unless the
organization decides to invest resources to constant or growing market share. Highly liquidity is
expected by so firm can assess that it can contribute in achieving the success or not. Stars are
favorable units of organization that can be boost by DLL through appropriate investment and
aids in achieving profitability. There is market saturation can be seen which indicates firm to
determine extent of development it can achieve. Cash cow part of BCG matrix gives assistance
in generati8ng interesting profits and cash but needs some about of investment by BCG matrix in
turn to have appropriate future growth. Dogan London Ltd may achieve development via
assessing its profitability attaining from this specific segment. In addition to this, dogs segment is
part of Boston Consultancy Group Matrix (BCGM) that is concerned with products positioned in
a declining market & highly competitive which are become burden for organization. Identifying
unprogressive component with this particular part of matrix becomes possible as such type of
products becomes difficult to maintain due to expensive nature.
Mckinsey matrix
It is another form of strategic tool that can help Dogan London Ltd to derive significant
knowledge regarding best growth opportunity. It comprises nine segment and each play very
important role in measuring business unit strength against industry attractiveness. Dogan London
Ltd may implement it to make proper evaluation of competitive advantages prevailing in
industry that are obtained by firm to lead in sector. In addition to this, the factors that gives
information regarding sector competitiveness include market size, growth, political, economical,
social, legal, technological, buyers & sellers power, rivalry, threat of substitute & new entrants,
level of differentiation, etc.

This matrix estimates results on the basis of green, yellow and red color that refers to
invest grow, selective earning and harvest divest respectively. The invest grow strategy indicates
moderate to highly competitive position within industry (Semenchuk and Vasiliha, 2020). In this
scenario DLL can derive massive potential to grow. Earning strategy shows low to moderate
competitive positing in sector. It means that DLL has less attractiveness to sector therefore
getting relatively lower opportunities. GE matrix get completed by including harvest strategy
that refers to lower differentiating advantages that is making its products less attractive and
require higher modification to its investment procedure. This represents lessening growing
opportunity.
From the evaluation it can be recommended that BCG matrix is suitable for Dogan
London Ltd for having appropriate knowledge of prevailing opportunities .The mentioned
approach can help DLL to obtain ability to overcome challenges occurring due to adverse impact
of Brexi ton company. of DLL’s products are prevailing in start segment of matrix that has high
market share & growth. Company can meet its targets in effective manner by focusing on this
tool. It is being SME Company it can suggested to firm to largely focus on other segments as it
can derive potential opportunities to have sustainable position in industry.

Assessing of Ansoff’s growth vector matrix to evaluate growth opportunities
It is one of the tools utilized by organization to make appropriate strategies to attain
development. There are four types of strategies included in this particular form of grid that gives
information regarding risk associated with each plan. In addition to this, Ansoff Matrix includes
product, market development & penetration and diversification (Loredana, 2017). All of these
four strategies give information related to potential opportunities company can utilize to develop.
Market Penetration
The one of the crucial part of Ansoff matrix is market penetration strategy as it helps
company to meet its objectives sin effective manner. There is various type of organization that
pay attention on market penetrating strategy irrespective of their scale of operations. It is
executed by firm via offering existing products to prevailing market in order to increase market
share through implementing penetration technique (What is Ansoff matrix? 2021). In addition to
this, it can be exerted by Dogan London Ltd in number of forms such as decreasing prices to
attract a new customers . Increasing efforts of organization in promotional and marketing
activities to provide higher level of awareness is one form of technique. Acquiring competitors
in the same market can as well utilized while implementing this technique by DLL.
Product Development
In this type of strategy DLL can cater the new products in existing market to get
attention of customers. It is suitable for those firm who ahs ability to innovate and appropriate
research & development skill. It can be utilized by DLL to sustain in market through paying

higher consideration on customers’ changing taste & preferences (Sukma, Lubis and Utami,
2019). In the current scenario it is important for entity to have such approach in order to get
competitive advantages. Dogan London Ltd is small scale origination as it has very strong
competitors in London that are as well operating in international platform so giving
consideration will be beneficial. It can be obtained through investing in R&D, acquiring
competitors, forming strategic partnership with strong participant of industry.
Market development
Dogan London Ltd can enter into new market with existing product through taking this
particular tactic into practice. It is successful for those companies that have appropriate
technological support, potential customers’ new market, etc. DLL can concentrate this strategy
on develop its presence on another platform for meeting its objective of higher conversion rate,
market share, etc. it can be done by catering different customer segment, new domestic market
and global platform.
Diversification
Firm enters a new market with innovative product it is one of the riskiest strategy in
Ansoff matrix. This is widely utilized by organization that has potential of bearing high risk such
as product failure in market due to entry of substitute, changes in industry regulations, etc. It
provides higher revenue once Dogan London Ltd has succeeded in meeting its objective. In
addition to this, DLL can adopt it to have economies of scale through continuously providing
higher customer satisfaction a by offering suitable products. In addition to this, this is significant
part of Ansoff matrix that is widely used by large multinational organization operating on larger
scale as they deal with higher risk so mitigating becomes comparatively easy via executing it.
Ansoff Matrix is one of the important tool that provides guidance to entity like DLL in
time when company is facing challenges due to Brexit. This particular technique can help
company to identify opportunity in order to increase conversion rate and gain higher
profitability. From the evaluation of four strategy of this specific matrix it can be interpreted that
company is getting various opportunities but one of the crucial strategy that can provide higher
sustainability is market penetration. In addition to this, penetrating ill allow it to cover larger
share of market via understanding need and affordability. . It will as well give assistance in

reducing the impact of Brexit to derive sufficient attention of customers. The objectives of
getting higher profitability and sustainability can be attempt by firm through major consideration
on suggested approach.
Explaining the sources of funds along with benefits and drawbacks
Business of every scale requires funds in order to derive smooth functioning in turn
objectives can be accomplished. There are several sources of funds can be utilized by
organization to obtain fro carrying forward its business activities. The Brexit has negatively
impacted United Kingdom which has made organization to obtain sufficient funding in turn its
influence can be reduced. There has been increased in required capital to meet objectives of
DLL which can be fulfilled by giving emphasis on crowding funding, peer to peer lending and
a venture finance. Dogan London Ltd need to evaluate benefits and drawbacks associated with
each option so that desirable performance can be obtained.
Crowd Funding
It is one of the suitable options for Dogan London Ltd as it can help it to obtain achieve
small amounts of funds from larger number of participants. It helps in deriving sufficient capital
for carrying particular project in effectual manner. In addition to this, Brexit impact can be easily
overcome by implementing crowd funding for having capital in order to derive smooth
functioning. There are several platforms available that give business opportunity to attain
sufficient amount of capitals so that all internal as well external issues can be dealt in desirable
manner. Selecting this particular mode of sourcing can enable DLL to have variety of
advantages. Firm should pay attention of drawbacks also to mitigate risk and derive positive
outcome.
Benefits
 It is one the method offering fast raising finance with no upfront fees. Dogan London Ltd
can achieve attention of media via implementing valuable efforts in marketing. This gives
chances to interact with stakeholders and get knowledge regarding opinion and feedback
of company’s product. It helps in accessing firm’s directional growth and taking
improvement actions can be exerted.
 Full control through structuring crowd funding can be done by avoiding forfeiting
monitoring while raising finance (Sources of funds, 2021). It provides opportunity to have

how to structure the campaign, amount of money, way of conducting, etc. There are
dozens of platform available which gives various options to DLL to fulfill its objective of
having capital.
Disadvantages
 The one of the crucial threat associated with this source of finance is scrutiny and
rejection. Dogan London Ltd has good idea does not guarantee that it will obtain
required funds to meet its purpose of emerging on platform.
 The risk of failure is there as it has possibility of leaking valuable information by
competitors. There are thousands of companies utilizing this option for acquiring capital
so it can provide threat to DLL.
Peer to Peer Lending
P2P Lending is form of funding that permits borrowers that can take out loans from
organization or individual which are investing. This is basically taking the loan from individual
investors that are ready to provide capital through viewing the ideas even with less credibility. In
addition to this, Dogan London Ltd may borrow monetary resources from investors rather than
taking from market as it will provide variety of benefits to meet predetermined goals (Shrotriya,
2019). DLL can utilize this approach to overcome its shorter requirements without impacting its
credibility in industry. Specified organization has to pay origination fees which is basically % of
loan took and in case of miss payment specified organization will be obligated to incur late
charges. It has certain limitations as well that need to be emphasized by DLL to get deeper
knowledge about the same.
Pros
 Dogan London Ltd can attain the biggest benefit of having lower interest rates as there is
greater competition among lenders.
 Higher returns to investors can be provided by DLL that can increase its credibility and
trustworthiness. Attracting investor for further purpose become possible by having this
particular advantage. It can be achieved as there will be no impact on credit score of
Furniture Practice Ltd.

Cons
 There is high credit risk so DLL should be aware of having alertness regarding the
default probability of their counterpart.
 Dogan London Ltd may face time constraint due to non availability of immediate cash for
utilization. It results in declining efficiency of process related to operational practices.
Venture Finance
It is types of private equity that is widely utilized by organization as it helps companies to
get funding through identifying growth potential. It is usually provided by well established
investors, banks and other financial institution (Yi, Li and Zhang, 20210). It comprises equity,
participating debentures and condition loan types for meeting the objectives of organization.
Dogan London Ltd can derive several advantages and limitation through executing this form of
practice in company.
Advantages
 This provides opportunities for expansion that is useful for DLL as it’s a small scale
organization so implementing it can provide assistance in reducing initial cost associated
with functional areas.
 Venture financing gives opportunity to enhance networks & connection that can aid DLL
to attain guidance via having expertise opinions. It is one the trustworthy option for
obtaining capital.
Disadvantages
 There is dilution of control & ownership as it includes long and complicated process of
continuing organizational practices in effective manner.
 Overall cost of financing becomes expensive for company in turn efficient processing get
negatively influence.
PROJECT PART 2
Developing a business plan and communicate how individual intend scaling up a venture: