Trinity Ltd: Analysis of Growth Strategies, Funding, and Succession

This report provides a comprehensive analysis of growth strategies for Trinity Ltd., a grocery retailer based in London. It begins with an introduction emphasizing the importance of planning for future growth, followed by an examination of various models such as PESTLE analysis, Porter's Gene...Read More

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1 Explain the different growth strategies using different models........................................1
P2 Define ansoff model for the growth opportunity of the company ....................................4
M1 Discuss the options for growth using a range of analytical framework?........................5
D1 Critical evaluation of specific pathways to growth taking the risk into consideration?..5
P3 Define the various sources of fund with its advantages and disadvantages .....................5
M2 Evaluate potential sources of funding and justification for the adoption of the appropriate
source of fund?.......................................................................................................................7
D2 Critically evaluate the potential sources of funding with justification argument for the
adoption of particular source ? ..............................................................................................7
P4 Design a business plan for the growth of the company ...................................................8
P5 Define the various successions and exit strategies with benefits and limitations ............8
M4 Evaluate the exit or succession options for a small business comparing the options and
making valid recommendations? .........................................................................................10
D4 Provide critical evaluation of the exit or succession option for the small businesses and
decide the course of action appropriate with recommendations ? ......................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
It is very important for the business organisation to plan for the future growth and success
of the business organisation.. it is very important that the company focus on the use of various
models and strategies. The planning for growth consist of the use of various models by the
organisation in order to identify the grown opportunities for the business enterprise. It is very
important that the organisation analyse the various internal and external factors which can
influence the organisation. It is very essential for the organisation to expand its business in an
effective way so that the company can earn higher profits and revenue. This is the report which is
based on Trinity Ltd. Which is the grocery retailer located on London area. This is the most
famous retailer and needs to expand its business in other areas. (Park, Y. and LaFrombois,
M.E.H., 2019). This report will include the various topic such as pestle analyses, porters generic,
BCG matrix, ansoff, the various sources of fund, business plan and at last the entry and exit
strategies for the organisation.
Explain the different growth strategies using different models
It is very important for the business organisation to evaluate its growth opportunities by
using the various models. The various aspect of the external factors need to be identified for the
organisation in order to work in an effective manner, there are various models which is
considered in context of Trinity Ltd. Which is the grocery retailer store.
PESTLE ANALYSIS
This is the tool which is used by the business organisation in order to identify the
influence of the various external factors which can impact the business organisation and its
operations. It is very important for the business enterprise to analyse the different external factors
. The various factors and their impact is dissect below in context of Trinity LTD :
 Political- This is the factor which is related to the extent to which government policies
may interfere within the business organizational and its operations activities. Such factors
include trade policies, tariffs etc. it is very important for the business organisation to
consider various government policies which are imposed with the specific country. It was
identified that the Brexit move has impacted the Trinity LTD in certain ways. The
company was not able to retail in an effective manner.
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 Economical= This is the factor which is related to the performance within the economy
which has a direct impact over the business organisation and its operational activities.
Such factors include direct taxes, inflation rate etc. it has been identified that eth
pandemic and the impact of the coronavirus has impacted where the inflation rate was
high in the economy and the income was low which impacted in the purchase of the
products and services. This has impacted the Trinity LTD. In numerous ways. Also due
to the lockdown the grocery retailers has high demand of the food products which was
positive sign for the company. (Bagheri, and et.al., 2018)
 Social- This is the factor which is related to the current trends in the market and has a
influence over the business organisation and its activities. Such factors include the
lifestyle, behaviour etc. it is very important that the marketers of the Trinity Ltd focus on
the various current trend and the preferences of consumers in order to meet their needs
and expectations. This has a great influence over the business and sales because it is very
important to understand the customer choices within the products of the business
organisation.
 Technological- This is the factor which is related to the innovation and development
around the world and has a influence over the business organisation. such factors include
digitalisation, automation, research and development etc. it is very important for the
organisation to adopt to the latest technology in order to attract customers. It is identified
this is the most effective factor which can impact the organisation in both positive and
negative way. In context of Trinity LTD. It is very important that the company focus on
online delivery in order to attract customers.
 Legal- This is the factor which is related to the certain laws which need to be followed by
the organisation and has a influence over the business operations. Such factors include
employment laws, safety laws etc. it is very important for the Trinity LTD. To consider
this factor and adhere to the laws which the United Kingdom. It is identified that equal
wages law which is important for the company need to consider in order to have a
positive impact of business operations.
 Environment- This is the factor which is related to the surroundings within the
environment which have a influence over the business activities. Such factors include
weather conditions, sustainability. In context of the Trinity Ltd. It is identified that the
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company is responsible for adopting the sustainable practices in order to attract
customers. This is most important for the organisation in order to avoid any strict actions
from the government authorities. (Gaffikin, L. and Engelman, R., 2018)
PORTER'S GENERIC MODEL
This is the model which is used by the business organisation in order to identify the
suitable business strategy for the organisation. There are three different strategies which can help
the company to have growth and success. The various strategies are discussed below;
 Cost leadership- This is the type of strategy which can be used by the business
organisation by reducing the prices of the products and services in order to attract
customers. In this type of strategy the company tends to increase its sales and revenue. It
is the most important strategy for the organisation so that they can make higher profits.
 Differentiation- This is the strategy which is considered the most effective strategy for
the business organisation in order to have growth and success. In this type of strategy the
company focus on making its products and services different from its competitors. It is
very important to have a uniqueness and different form the competitors so that customers
can be attracted.
 Focus- This is the strategy where the company need to decide whether it will adopt the
cost leadership or differentiation strategy in order to attract customers. It is very
important for the organization to focus on a particular aspect so that they can achieve
organisational goals in an effective and efficient manner.
From the above strategies it has been concluded that Trinity Ltd can focus on the differentiation
strategy where they can offer the variety of products of different brands in order to attract
customers. The company can also focus on the differentiation by adding value to its products in
effective manner.
BOSTON CONSULTING GROUP
This is the tool which is used by the organisation in order to categorise their products into
different categories. This is the model which will help the organisation in analysing its different
categories of product and in which matrix they lie in. Star – This represents business units having large market share in the fast growing
industry.
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 Cash cow- This represents business units having large market share but in slow growing
industry. Question mark- This represents having low relative market share and located in high
growing industry.
 Dog- This represents businesses having weak market share in low growth markets. They
neither generate cash nor require huge amount of investment . (Wang, Y., Liu, Y., Li, X.
and Chen, J., 2019)
Define ansoff model for the growth opportunity of the company
The model Ansoff is used by the business organisation in order to identify the different
growth opportunities. This is the model which consists of the four strategies which can be taken
into account by the company in order to develop their business and have growths and success.
There are different strategies of this model which is mentioned below;
 Market penetration- This is the market strategy which can be taken into account by the
business organisation in order to incrassate their sales and revenue. In this type of
marketing strategy the company focus on the decrease of the pricing of the products and
serveries in order to attract the existing customers
 Market development- This is the type of strategy where the business organisation focus
on the new market or the new customers with the existing products. This is the suitable
market strategy where the company will able to adopt to the new market and also will be
able to tartare new customers. This will help in growth of the company.
 Product development- This is the type of strategy where the company focus on the new
products or services in the existing market. this is the another strategy which can b
considered by the organisation by developing the new products in order to attract the
existing customers of the business organisation.
 Diversification- This is considers as the most risky strategy where the company focus on
the new market with new products or services. It is analysed that the company need to
find out the new target customers and also include the new products in the market in
order to increase the growth and sales and revenue of the business organisation.
From the above discussed strategies it is suggested that the Trinity LTD. Can focus on the
market development strategy in order to have growth and success of the business organisation.
This is the most suitable strategy where the company can open the retail store at some other
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location which will help in increasing the productivity and this will help the company in making
higher profits.(Chaduvula, H. and Das, D., 2019)
Discuss the options for growth using a range of analytical framework?
It is identified that the market development strategy is most suitable for the Trinity Ltd.
In order to increase the sales and revenue of organisation. It is the most suitable strategy for the
growth of the business enterprise. From the various strategies which will help the retailer to
expand its business in effective way. The company will able to target new customers where they
can increase the sales and earn higher profits.
Critical evaluation of specific pathways to growth taking the risk into consideration?
It is very important fr the organisation to consider the various external factors which can
influence the organisation and its operational activities. There are various factors such as
political, technological which has a risk for the growth and development company in the other
areas. There are different aspect for the growth of the organisation which need t be considered
Define the various sources of fund with its advantages and disadvantages
It is identified that there are various sources of fund available for the business
organisations which they can take into consideration for the growth and development of the
business activities. It is very important for the owner to know the various availability of financial
sources in order to have the growth of the company. The various sources of funds available are
discussed below;
Bank loans
This is the type of source of fund which is available for every individual. In this type of source
the individual can take a bank loan in order t conduct and organisation and its operations
activities. This is the type of loan where the individual need to have a account in the bank and
there are several procedures which need to be followed in order to take a loan. It is considered as
the most easy way to have the source of fund in order to increase the growth of the business or
have an investment within the organisation.
Advantages
 The owner of the business organisation has a full control where there is no interference of
the bank within the operations of the business Enterprise.
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 The bank loan have the flexibility where the owner can take the loan at any point of time
Disadvantages
 There is security which is termed as collateral security which is kept by the bank.
 At times it is time consuming process because there are certain formalities which need to
be completed in order to take a loan from the bank.(Cobbinah, P.B., Asibey, M.O. and
Gyau, N.B., 2020)
Angel investment
This is the type of source of fund which is considered as the company which helps or
provides the fund to the startup or the organisation in return of the ownership equity. They
provide one time investment or an ongoing capital injection to help the business move through
the difficult early stages.
Advantages
 It is less risky than the debt financing. Unlike other loans it does not require to pay
invested capital in the case of business failure.
These investors are not difficult to find because there are several companies and groups who are
providing funds to small businesses.
Disadvantages
 It has a loss of having a complete control over the business as a part of owner.
 The profits is being shared by the angel investor .
Venture capital
This is considered as the form of the private entity where the organisation provide the capital to
the small businesses.. these are considered as the other financial institutions and well known
investment banks where they find the long term growth within the business organisation.
Advantages
 From this type of source of fund the individual can raise the large amount of capital in
order to build the organisation and have growth strategies. It is identified that venture capital organisations invests in the organisation there is the
regular payments which increase the goodwill of the company.
Disadvantages
 The owner can loose the ownership as the control is taken by the venture capital.
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 The business is expected to scale and grow rapidly. This increases the pressure for
performing better. (Zhao, L. and Liu, F., 2020)
From the above various sources of fund it is suggested that the Trinity Ltd. Can focus on
the bank loan as a source of fund in order to have the growth of the business organisation. This is
the most suitable source of fund for the company in order to increase its market share. This is
considered as the most easy way in which the owner can take a loan and repay after wards. This
is the way in which the company will have full control over the business and also it will able to
expand its organisation in an easy and effective way.
Evaluate potential sources of funding and justification for the adoption of the appropriate source
of fund?
There are different sources of funding which is discuses above. It is suggested that the
organisation can focus on the use of the bank loan as a source of fund in order to expand its
business in an effective and efficient way. It is very important that the organisation focus on the
most suitable and easy way which is bank loan and the organisation has less risk of this type of
source of fund. The bank loan has several advantages by which the organisation will able to
achieve growth and success.
Critically evaluate the potential sources of funding with justification argument for the adoption
of particular source ?
The organisation has the several options available in the market for the sources of fund
such as bank loans, angel investment, venture capital. Every source of fund has its on merits and
demerits. It is the responsibility of the manager to analyse and identify which is the most suitable
option for the organisation which can be according to the nature and type of the business
Enterprise. It is suggested that the organisation can choose bank loan as a source of fund in order
to have the growth for the organisation. as the Trinity Ltd. Is the grocery retailer and it needs
funds for the expansion in the other areas. The loan is a easy way for the business enterprise.
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Design a business plan for the growth of the company
Here is the business plan designed for the Trinity Ltd. Company where it needs to expands its
business in other areas.
Executive summary- There is the plan for the Trinity Ltd. Where the grocery retailer shop
needs to expand its business sin the other areas. This will help the organisation to increase its
brand value . This is the plan which has been designed in order to achieve the growth and
success for the organisation. (Wattanasaeng, N. and Ransikarbum, K., 2019)
Business overview- Trinity Ltd. Is the small business organisation which is located in the
London area. This is the small grocery retailer which serves the variety of products. The
company needs to expand its business by increasing the market area and serve the best quality of
products and services to its customers.
Mission- In order to provide with the products and services to its customers.
Vision- the vision of the company in to achieve the long term growth of the organisation by
expanding the market in the other areas.
Objectives-To increase its profits and sales by 20 percent.
Funding- the company can use the bank loan as in order to take funds in order to increase the
market share and invest in the growth of the business organisation.
Growth strategy- it is suggested that the company can focus on the market development in order
to increase the sales and revenue. This is the growth strategy which will help the company to
increase market share and develop the success of the organisation by targeting the new
customers.
Budget
Define the various successions and exit strategies with benefits and limitations
It is very important for the organisation to plan for the exist and succession portions in
any case. This is important because the organisation might have the success where it should be
prepare for the further steps. In case of the exit there should be plan for the organisation in order
to to shut down the organisation. There are various exit and succession options available which
are discussed below;
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Succession - This is the most important function fr the business enterprise where the
organisation should be prepared with the options of the succession. This is related to the way
where the organisation might be facing the success as its expanding. In the other market. this is
possible when the organisation might having the good amount of sales. The various options of
succession are discussed below;
 Franchising- This is the type of the expansion for the company where the organisation
can give the franchise to the other person in order to increase the market. This is ben
given as the company shares the products and services to the other company with the
same name.
Advantages- There is less risk involved in the franchising for the organisation.
Disadvantages- it includes restrictions on conducting business that the local market cannot adopt
to change. Licensing- This is defined as the expansion of the organisation is case of the succession
of the organisation. In this type of plan the company can give the copyright of the
manufacturing process of the organisation to another company. This helps in the growth
of the business.
Advantages- The owner of the business will need not to incur the cost of production , promotion,
packaging or selling the products or services.
Disadvantages- The owner might loose control over the products including promotion,
packaging and selling. Merger and acquisition- this is the succession plan which can utilised by the
organisation. In this type the company can have a joint venture or merge the business
with the other brand in order to promote the products or services in an effective way.
Advantages- It can create new growth opportunity and a large market share .
Disadvantages- The company acquiring this plan can have a disadvantage if having the
communication gap because of the different culture of the other organisation.
From the above discussion of the various succession options it is suggested that the Trinity Ltd
can adopt the licensing as a succession plan where it can expand its business in the new market.
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This will help the company to adopt to the new strategies in order to increase their sales and
revenue.
Exit- This is the plan which need to be considered by the organisation in case its feels like the
business is no longer profitable. There are several options available for the exit of the company
which are discussed below:
 Selling to the third party- The company can adopt this option where it can sell the
business to the another party who can invest and make it profitable.
Advantage- The owner of the organisation can negotiate in terms of prices in order to sell the
business to the another party.
Disadvantage- this is the time consuming process. Dissolved – This is the exit strategy if the business plan does not work properly. This is
the most final decision which can taken of liquidating the business and selling of all the
assets . If this is taken into consideration it need to be kept in mind that all the debts
should be cleared.
Advantages- This is one of the simplest and quickest method among the all other options.
Disadvantages – The owner will not able to get the biggest return on investment with this option.
From the above options it is discussed that the Trinity Ltd. Can adopt the dissolved as a
exit option in order to close the business if it is not profitable for the company and the owner.
This is the suitable option for the organisation in order to retain with the profits which is already
earned by the company.
Evaluate the exit or succession options for a small business comparing the options and making
valid recommendations?
It is very important that the organisation focus on the various exit and succession plan in
order to make the growth in a sustainable manner. This is very essential because the company
need to analyse the different strategies at the right time. This plays a major role for the growth of
the company.
Provide critical evaluation of the exit or succession option for the small businesses and decide
the course of action appropriate with recommendations ?
It is recommended that for the succession the Trinity Ltd can focus on the licensing in
order to expand its business whereas in the case of exit strategy the company can adopt the
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dissolve of the organisation. This will help the business organisation in both the aspect. It is very
important for the company to adopt to the strategies.
CONCLUSION
From the above report it has been concluded that it is very important for the organisation
to analyse the internal and external factors which can impact the organisation. In today's world it
is important that the Trinity Ltd can focus on the various strategies in order to expand its
business in an effective and efficient way. It is suggested that the organisation can adopt the
market development strategy for the growth and success.
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