Unit 42: Business Growth Planning and Strategy for Unicorn Company

This report presents a comprehensive growth plan for the Unicorn company, a UK-based retail business. It begins by evaluating growth opportunities, including market expansion through online services. The report employs tools such as PESTLE and SWOT analyses to assess the company's competitive advantages and market position. Ansoff's growth vector matrix is applied to explore market penetration, market development, product development, and diversification strategies. The report then assesses various funding sources, including bank loans, venture finance, and personal savings, evaluating their benefits and drawbacks. A detailed business plan is designed, encompassing the company's concept, mission, vision, objectives, and marketing strategies, supported by PESTLE and SWOT analyses. The plan focuses on online expansion and effective distribution channels. Finally, an exit plan for the small business is outlined, providing recommendations for future growth and success. The report concludes by summarizing key findings and recommendations for the Unicorn company's strategic growth initiatives.

Unit 42– Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1. Evaluation of key growth opportunities..........................................................................3
P 2. Ansoff’s growth vector matrix........................................................................................4
LO 2.................................................................................................................................................4
P 3. Assessment of various sources of funding......................................................................4
LO 3.................................................................................................................................................6
P 4. Designing a business plan..............................................................................................6
LO 4...............................................................................................................................................11
P 5. Exit plan for small business..........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Growth planning is a strategical business plan which helps in enabling business owner to
expand their business to the completely new market in order to earn greater revenue and profits.
This helps organization to allocate various limited resources in order to adapt to various external
and internal environmental factors.
This study will highlight and evaluate the growth possibility of the company with the
help of impelling tools such as PESTLE, SWOT and Ansoff matrix. This helps in effectively
demonstrating the competitive advantage of the organization for future growth and success.
Furthermore, this study also evaluate various methods to raise funds for smooth functioning of
the business. This report will also develop a business plan for scaling up the organization. It will
also include an exit plan for the small business with valid recommendations.
Unicorn company is a retail company store in Unite Kingdom. It mainly deals in wide
range retail products such as grocery, clothing, toys, home appliances, etc.
LO 1
P 1. Evaluation of key growth opportunities.
Unicorn company mainly deals in various products such as clothing, groceries, home
appliances, toys, etc. It has wide scope all across UK and is planning to expand its business to
the new sector by targeting complete new market (Li, Mobin and Keyser, 2015). It focuses on
expanding its business to various different sectors to attain competitive advantage in the market
for long term success and development. The company will focus on expanding its business by
delivering online services to its end customers. Unicorn company has wide range of resources
available to them which gives them a competitive advantage. It also has core competencies such
as effective communication, teamwork, effective problem solving skills, organized, stress
tolerance, work standards, effective decision making skills, etc. in order to reach greater heights.
The company has wide various market opportunities in order to grow and expand their business
at a higher level.
There are several factors which affect the efficiency of the company which mainly
comprises of political, social, technological, legal, economic and environmental factors which
hampers the performance and productivity of the Unicorn company.

The company will develop effective organizational structure in order to perform all the
the activities in an efficient manner (Denton, Forsyth and MacLennan, 2017). It also focuses on
developing new range of products to make the goods available at a large scale.
Growth opportunities helps in improving the quality of the employees to the full potential
which in turn results in high operational growth. Integration of new and advanced technology
helps in attainment of high level of market by effectively understanding the various business
factors. Reviewing the goals and objectives of the business helps in attaining higher market share
in various international markets.
P 2. Ansoff’s growth vector matrix.
It is an effective growth matrix that helps business in developing and growing business in
new sector by delivering effective services and new range of products to the potential customers.
This matrix focuses on present and potential market and products of the company. It helps in
seeing various potential growth opportunities for the business (Ansoff Matrix. 2019). This helps
in penetrating the growth markets which helps in turn results in high performance. This helps
company to attain higher market share using effective growth strategies.
Market penetration: This is an effective strategy where organization focuses on to sell
the existing range of goods in a present market. The organization will focus on growing its
market share by selling more goods and services to the existing market. This will lead to higher
sales, revenue and market share of the company.
Market development: Market development is a plan of action which focuses on targeting
new market by selling existing range of products to the prospective customers (Gurcaylilar-
Yenidogan and Aksoy, 2018). It is an effective strategy for small business enterprise where they
can expand their business to the completely new market which helps in catering higher customer
base and market share. This helps in developing new distribution channels to reach end
customers.
Product development: It is an effective strategy where the organization focuses on
developing wide range of products in order to deliver the goods in an existing established market
(Dawes, 2018). The company focuses on developing new range of products which helps in
attracting large customer base in an existing market.
Diversification: This strategy focuses on diversifying the company by developing new
range of products and selling them to the completely new market where the organization does

not have any existence. This is one of the risky strategy of Ansoff matrix because new products
are sold to the completely new market (Kingsnorth, 2019).
Unicorn company will focus on expanding their business through market development.
The organization will focus on selling existing range of products to the new market using
effective distribution channels to reach end customers. This leads to higher growth and
productivity fort the business.
LO 2
P 3. Assessment of various sources of funding.
Bank loan: It is an effective source off funding where the business can take loan from the
bank at the specific rate of interest. This amount must be payable to the bank every month at the
stipulated interest rate charged by the bank (Lehner, Grabmann and Ennsgraber, 2015). It is an
effective source of funding for SME's. The money has to be paid back to the bank within
stipulated period of time.
Benefits of Bank loan
Bank loan is an effective source of funding because it is easy and flexible strategy to get
loan from the bank (De Marco,2019). It is also beneficial as it is cost effective and it is also
beneficial as it gives advantage on tax benefits.
Drawback of Bank loan
It is a complex and a time consuming process, as it requires too much of documentation
work. The interest has to be paid at a regular intervals regardless of the fact whether business is
making profit or loss. Another major disadvantage of bank loan funding is that the interest loan
charged is very high.
Venture finance: Venture capitalist firm is a private equity organization which provides firms to
the company that have high potential to grow in the future. The venture capitalist firm take an
equity hold in the organization to take risk of carrying out and financing the project. This helps
company to finance their company with the help of venture capitalist firm for smooth functioning
of the business. The venture capitalist agree to fund the company in return of some profit share.
Benefits of Venture finance:
Venture capitalist firm helps in giving business expertise which helps in effective
decision making. They also provide with additional resources and provide active support which
leads to greater success and growth (Drover and et.al., 2017).

Drawback of Venture finance:
It has loss of control because business is partly controlled by the venture capitalist firm,
and they take a major role in shaping up the business. Benefit from venture capital financing can
be recovered in the long run (Mitchell,Palacios and Leachman, 2015).
Personal savings: This is an effective source of funding where the owner of the business use
their personal savings, investment, income sources and other assets in order to carry out the
activities for future growth and expansion of the business.
Benefits of Personal savings:
It gives business more control over the finances of the organization. It will help in
retaining the full ownership of the business (Brau, Cardell and Woodworth, 2015). It helps
company in avoiding the interest expenses which helps in avoiding excessive spending. The
major advantage of personal savings is that the funds are readily available.
Drawback of Personal savings:
The major disadvantage associated with personal savings is that the owner has a
withdrawal limit and can take out money only to some extent. The owner of the business can
spend the savings of the company which may lead to personal debt and bankruptcy.
The Unicorn company will opt for bank loan as it will help them in getting access to the
money by paying instalment within regular interval of time (Wilkins, Gardner and Chapman,
2016). The interest paid on the loan is tax deductible and also the ownership of the business is
not transferred. This funding method helps in smooth functioning of the organization for future
growth and expansion.
LO 3
P 4. Designing a business plan.
Business concept: The Unicorn company is a retail company which mainly deals in
groceries, clothing, home appliances, furniture, oil, gas, toys, etc. the company focuses on
expanding its business to the new market with an effective distribution and supply chain channel.
The company focuses on delivering goods online by integrating effective advanced technology
like social media platforms, automated technology, artificial intelligence, mobile application,
company website into the organization. Making goods available online helps in catering large
number of customers in United Kingdom.

Mission: “The main mission of the company is to make goods available to the customers
at their door step. It gives them, convenient and happy shopping experience. “
Vision: “The vision of the company to expand its business to the new market to cater
large number of customers. Unicorn company focuses on delivering convenient and happy
shopping experience to the consumers.”
Business objectives:
The main objective of the Unicorn retail company is to expand business to completely
new market which helps them in increasing the sales, revenue, customer base and market share
of the company (Cacciolatti and Lee, 2016). The Unicorn company focuses on integrating
various effective information technology in order to deliver goods and services to the end
customers in an effective and efficient manner.
Marketing strategy
PESTLE Analysis
PARTICULARS HIGH/ LOW JUSTIFICATION
Political factors High Government changes its
policies and regulations
frequently (Patrutiu-Baltes,
2016). Trade barriers and tax
implications are few of the
major challenges faced by the
Unicorn business.
Economic factors Low The economic condition of the
UK, London is very good. The
better economic conditions,
stronger exchange rate, lower
inflation and interest rate puts
UK in a position and
advantageous position.
Social factors High Change in consumer
preference, trends and their

behaviour impose major
challenge on the business.
Change I the purchasing
behaviour of the customer
impose major risk on the sales
and revenue of the Unicorn
company.
Technological factors High Technology is dynamic which
makes it difficult for the
company for smooth working.
(Hasan and Ali, N.A., .
Environmental factors Low The company comply with
various environmental laws
and focus ion reducing carbon
emission and also to move
towards green environmental
services.
Legal factors High There are various legal laws
and legislations which affect
the growth and expansion of
the Unicorn company.
SWOT Analysis
PARTICULARS HIGH/ LOW JUSTIFICATION
Strength High The company comply with
various legal norms , CSR and
ethical business practice. The
company is at competitive
position as it focuses on using
advanced technology. It has

strong supply chain and
distribution channel.
Weakness Moderate The major weakness of the
organization is that it has to
expand the business in the new
market where the large number
of competitors already exist
(McKeever, 2016).
Opportunity High There is vast opportunity
available for the growth and
expansion of the business in
the new markets. It used
advanced technologies.
Threat Moderate Existing rivalry competitors
and change in customer
preference is the major threat
for the Unicorn business.
Segmenting: The Unicorn company will deliver all the goods and services to the
customer at their door step. The main market segment of the Unicorn company will be London
which helps in catering large number of customer and attain higher market share.
Targeting: The Unicorn company will target customers of all age groups, demographics,
age and gender (The segmentation, targeting and positioning model, 2018). This will help
company to cater ample customers which leads to high customer base.
Positioning: The business will focus on effective marketing and campaigning strategy
with the helps of advertisement in newspaper, television, brochures, social media platforms, etc.
in order to make people aware about their brand and the goods and services offered by the
Unicorn company.
Marketing mix:

Product: Unicorn company mainly deals in groceries, clothing, home appliances, toys,
oil, gas, furniture, etc.
Price: The price of the products will be reasonable and depends on the types of products
and the services. If they opt for online services extra delivery charges will be applicable (Ward,
2016).
Place: The Unicorn company will be established in the London and offer online as well
as retail store services at the high street London.
Promotion: The Unicorn company will opt for advertisement in television, newspaper,
brochures, social media platforms, etc. and various other campaigns to promote their business.
Competitor analysis
BASIS UNICORN COMPANY NISA COMPANY
TECHNOLOGY The unicorn company uses
advanced technology such as
integrated software technology
.
NISA company uses advanced
technology which gives
competitive edge in the
market.
SUPPLY CHAIN It focuses on delivering goods
online (Wilkins, Gardner and
Chapman, 2016).
NISA company does not
deliver goods online but has
established store in various
market of UK.
Financial budget plan
Particulars
Jan
uar
y
Feb
ruar
y
Ma
rch
Apr
il
Ma
y
Ju
ne
Jul
y
Aug
ust
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dece
mbe
r
Cash
inflows
Opening
cash inflow
700
0
113
00
169
16
226
48.5
6
284
98.1
8
344
65.
3
405
50.2
9
467
53.4
4
5307
4.99
595
15.0
6
6607
3.72
7275
0.92
Sales
revenue
120
00
122
40
124
84.
8
127
34
129
89
132
49
135
13.9
5
137
84.2
3
1406
0
143
41
1462
8
1492
0
Other 220 220 220 220 220 220 220 220 2200 220 2200 2200

income 0 0 0 0 0 0 0 0 0
Total cash
inflows
212
00
257
40
316
01
375
83
436
87
499
14
562
64
627
38
6933
5
760
56
8290
2
8987
1
Cash
outflows
Material
300
0
183
6
187
3
191
0
194
8
198
7
202
7
206
8 2109
215
1 2194 2238
Labour
270
0
270
0
270
0
270
0
270
0
270
0
270
0
270
0 2700
270
0 2700 2700
Other
expenses
220
0
228
8
238
0
247
5
257
4
267
7
278
3.70
2
289
5 3011
313
1 3257 3387
Administrat
ion
expenses
200
0
200
0
200
0
200
0
200
0
200
0
200
0
200
0 2000
200
0 2000 2000
Total cash
outflows
990
0
882
4
895
2
908
5
922
2
936
4
951
1
966
3 9820
998
2
1015
1
1032
5
Cash
deficit /
surplus or
closing
cash
balance
113
00
169
16
226
49
284
98
344
65
405
50
467
53
530
75
5951
5
660
74
7275
1
7954
7
LO 4
P 5. Exit plan for small business.
Exit plan is a strategy that helps Unicorn company to develop an effective exit strategy. It
mainly comprises of:
Liquidation: It is an effective process of liquidating or dissolving the business by selling
off all the assets to the claimants of the company. Liquidation is done when the company is in
huge debt or has become insolvent. This usually means company is not in a state to pay off its
liabilities and is bankrupt (McKenzie, 2015). The bankrupt organization cannot continue their
business after the liquidation process is finished. In case the company does not have enough
assets to pay off the debts to the creditors. Then in this situation creditors cannot claim their

money. For example, liquidation is done when all the assets of the company are used to pay off
the debts.
Benefits of liquidation
The major advantage of the company is that the creditors and employees of the
organization can claim their money (Pros and Cons Of Company Liquidation, 2018). Once the
process of liquidation is over the company will dissolve. Another major benefit is that there is no
redundancy and restructuring cost.
Drawback of liquidation
The company has to pay off the liabilities from the assets. The liquidation strategy once
started cannot be stopped (Reinhart and Sbrancia, 2015) . All the assets of the firms will be
ceased and will be uised to pay off the liability to the creditors.
Merger and acquisition: It is an effective strategy when two different companies come
together and form one different company. This is done when the strong company who has strong
financial position acquire weak company in order to use the assets and liabilities for future
growth and expansion. For example, Exxon and Mobil company merged together to form
ExxonMobil in order to perform together and create higher market share.
Benefits of merger and acquisition:
This strategy adds increased value to the business and also helps in gaining economies of
scale and attain higher market share by combining assets and liabilities of different company into
one ((Zhang and et.al., 2015). This strategy also helps in gaining higher competitive advantage
and higher customer base.
Drawback of merger and acquisition:
This strategy leads to market saturation and increased debt which leads to lower
operational productivity for the business. It is a complex and time consuming process as the
shareholders of the company may not agree with the merger.
Selling of business to the third party: This is an effective exit plan where three parties
are involved, such as, the seller, the buyer and the third party. This sis an effective strategy
where the assets, liabilities and revenue of the business is sold off to the third party. The business
is further carried out by the third party.
Benefits of selling of business to the third party