Unicorn Grocery: Business Plan for Sustainable Growth and Funding

This report examines the growth strategies of Unicorn Grocery, a small grocery store in London. It begins with an analysis of key considerations for growth, including competitive analysis, digitalization, customer research, and employee retention. The report then evaluates growth opportunities using the Ansoff matrix, exploring market penetration, market development, product development, and diversification strategies. Potential sources of funding, such as debt equity, are discussed along with their advantages. Finally, the report designs a business plan for growth, and assesses exit and succession plans. The report emphasizes the importance of strategic planning and financial management for sustainable business expansion, particularly for small enterprises like Unicorn Grocery.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key considerations for growth............................................................................1
P2 Evaluation of opportunities with the help of Ansoff matrix..................................................2
TASK 2............................................................................................................................................5
P3 Potential sources of funding along with their benefits and drawback...................................5
TASK 3............................................................................................................................................7
P4 Design a business plan for growth ........................................................................................7
TASK 4............................................................................................................................................9
P5 Assessment of exit and succession plan for a business along with their merits and demerits
.....................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Growth in business is referred as broadening and magnification in operations of a
enterprise (Planning for growth, 2017). It is a primary goal of a business to enlarge their
operations in the economy so as to attain higher level of profitability. The enlargement of
operations can be done by achieving economies of scale for a small enterprise. It is essential for a
business to systematically plan growth activities so that they can be carried out in an ideal
manner. The business before planning conducts thorough analysis of the market so that its
position in market can be identified. This assignment takes into consideration the working of
Unicorn Grocery. This is a small business operating within economy of United Kingdom. This
assignment aims to identify the growth opportunities in market. Various sources through which
funding can be availed will be discussed in the report. Also, development of business plan will
be carried out that will define the ways in which business operations can be escalated.
TASK 1
Unicorn Grocery is a grocery store located in London. This retail outlet was established
in the year 1996. The number of people working with this retailer are 70. It is a small enterprise
which caters the needs of people in organic foods and drinks along with household, grocery and
body-care items. The revenue attained by this small scale enterprise were recorded at 7 million
euros. This award winning retailer has been successful in carrying out its objective and now
looking for opportunities as well as approaches in the market to enlarge their operations so that
they will be able to serve a large market.
P1. Analysis of key considerations for growth
It is essential for a business to analyse the external and internal business factors so that an
enterprise will be able to formulate a strategy to carry out business (Pallagst, 2010). It is defined
to me the measures which are to be undertaken by a business to expand its operations affecting
overall position in the market. Unicorn grocery is a small scale retailer and definitely aims to
initiate growth measures for a business. It is crucial to plan these activities so that crucial
activities are allotted with time and resources to ensure that they are carried out in ideal manner.
The major strategies which can be adopted by a business are as follows:
In-depth competitive analysis: The first major strategy which can be adopted by a
business carry out an examination of the important factors in the operating market. This analysis
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will help in identifying the areas in which other retailers struggle. The sectors in which rivals are
not able to perform well must be emphasised to create a distinct brand image of the company.
The catering of products and services which are not offered by the major rivals will help in
advancing among the same and generate better revenue for business (Valler, Phelps and Wood,
2012).
Incorporation of digitalisation in business: This is another major strategy which can be
employed by a business. The preference of digital platforms in small business is comparatively
lower. The common ways through which technology is introduced is development of online
shopping portal and business's website can be updated as well. This feature will equip a business
with competitive advantage over its rivals.
Customer/ Market Research: It is essential for a business to conduct market research on
a regular basis. This research will help a business in gathering information about customer's
buying habits, age, education, trends and preferences. The thorough understanding of persona of
consumers assist a business in planning its long term future endeavours. It will also aid a
business in anticipating the future demands and circumstances of business.
Aggressive recruitment and retention strategy: Employees provide a definition to the
organisation. A competent workforce ensures favourable future for a business and vice versa
(Wu, 2015). This feature defines the importance of employees for a small business. Therefore, it
is essential for a business to employ aggressive recruitment and retention practices so that a
business will be able to build a workforce that helps a business in attaining its objectives. When
planning for long-term, a business must make sure they are critically examined and management
is sure to carry that forward accompanied a capable and loyal workforce. Another reason which
supports this consideration is that employees help a business in attaining superior position in the
market which is difficult to be imitated by rivals.
Value Proposition: This is among the most crucial features which set an enterprise apart
from its rivals. An enterprise should always emphasise on providing value goods and services to
the customer. This will ensure that they are satisfied with offering of enterprise and will remain
loyal with the same. Value proposition will help in enhancing brand value for the business.
Consideration will help a business when planning for growth and works as marketing message to
people.
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P2. Evaluation of opportunities with the help of Ansoff matrix
Opportunities in context of a business refer to the chances which lie with a business to
enlarge their operations. A business is facilitated with numerous chances to grow in the target
market but it totally depends upon their suitability to select the one which will invite fruitful
outcomes in terms of revenue (Ziari and et. al., 2012). The opportunities are to evaluated
considering all the factors which are important to a business. This is done so that an enterprise is
able to adopt an approach which carries highest degree of relevance. It is necessary to opt for
suitable one as it carries a power of uplifting and drowning a business. Unicorn Grocery is
supplied with numerous opportunities to expand their operations through implementation of
digital measures in business functioning. Ansoff matrix provides four quadrant for growth which
can be determined by an enterprise.
It is referred as a major strategic tool which is employed by a business when they plan to
initiate the growth activities. This tool is basically used by the manager and owners of business
who are looking for guidelines and directions to expand their scale of operations. It defines the
number of strategies which can be employed by a business such as penetration, market, product
development and diversification.
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(Source: Ansoff Matrix, 2017)
The various strategies of expansion given by Ansoff Matrix for Unicorn Grocery is as follows:
Market development: this is the first quadrant for growth offered by Ansoff matrix. The
term market development defines to enter into new market with the existing offering of the
enterprise (Barbour and Deakin, 2012). It layman terms, it refers to selling existing products and
services of a business to prolonged group of people. Market development of an organisation can
be defined in terms of enhancement in the geographical distribution of offering of an enterprise.
In context of Unicorn Grocery it is now catering its services in the Manchester, United Kingdom
exclusively. It can now open a retail store in another area of United Kingdom followed by a
suitable marketing tactic so that it is able to attract new audience. The same organic offering of
the company is now offered to relatively new prospects in different market.
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Illustration 1: Ansoff Matrix

Market Penetration: In this quadrant the product and market are the one in which an
enterprise is existent at present. This growth opportunity of the matrix states to sell more of the
goods and services to present market (Brinckmann, Grichnik and Kapsa, 2010). An enterprise
aims to increase quantities of sales to existing consumers. Unicorn Grocery can employ this
growth quadrant to sell more of offering with the help of constructing a suitable marketing
tactics. This business is already doing well in the Manchester further applied with suitable
promotional programme it will results in better sales revenue for the enterprise. However they
maybe a marginal decline in the profit margin of the company. For instance this small scale
retailer can offer discounts to people on major holiday which will have a direct impact on the
sales revenue for this business therefore serving its purpose.
Product Development: this growth opportunity relates to development of a product which
will be offered to existing customer of this enterprise. Unicorn grocery is already catering its
services in domains such as organic, foods, drinks, groceries and body care products. The areas
which has been untouched by this business is home care segments. The business does not needs
to replace exiting offering and can add this as a additional commodities which are offered to
people (Burton, 2010). This strategy will help a business in enhancing their scale of operations
and provide growth opportunities as well. This product development will results in attracting
new customers to store and garnering additional revenue for the business.
Diversification: It is last quadrant among the four which states that in order to achieve
growth a business must venture into new markets with latest products. This growth opportunities
provides a chance to the business to start afresh. When considering in case of small enterprise, it
is referred to be the most risk oriented and least preferred approach (Chapin, 2012). Unicorn
grocery is a profitable retailer when it comes to offering organic product and grocery items and
possess a brand value in the same. This enterprise can venture into new market by offering
retailing facilities for technology oriented products such as home and kitchen care appliances as
a strategy for them to attain growth.
TASK 2
P3 Potential sources of funding along with their benefits and drawback
Finance constitutes as a most crucial component for an organisation. It ensures that
business operation are carried out in a smooth and error-free manner. It is not only confined to
carrying out of daily tasks as it helps a business to avail the opportunities that exist in the
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operating market. By using the available financial resources in an ideal manner a business can
attain success in the market through recruiting and employing competent resources. The concept
of finance in the business relates with creating and utilising money to achieve organisational
objectives (Christofakis and Papadaskalopoulos, 2011). The rise in the existence of capital
market depicts the importance of funds for a small business enterprise.
In context of Unicorn grocery, it is owned and managed by a group of members/owners
in a flat business structure. All the members work on equal pay system in this enterprise. This
business is registered under worker Cooperative which defines manner in which business is
carried out.
Capital Planning is another important functions which is to be carried out. It is necessary
to formulate plan which is far-sighted so that policymakers are to be convinced. In context of a
small business it is important to consider factors such as needs, resources and contingencies
which may arise in the near future. The members have to decide the manner in which capital will
be introduced in the organisation. The consent of all the members is sought before incorporating
such initiative. Here listing down the major sources through which a co-op can raise capital i.e.
Debt equity: it is the most preferable sources of income which can be availed by a small
business. The debt investors does not entertain rights in the functioning of business except for in
situation such as bankruptcy and winding up of business (Eddleston and et. al., 2013). They are
referred to as long term loans which are availed by an enterprise from the bank. Unicorn grocery
can avail this source of funds as it is most easiest and convenient sources of finance.
Advantages
Major advantages which can be availed by opting for debt funding is as follows:
Retain Control: this is another most significant advantage which can be facilitated
through debt funding. The people who manage an enterprise are able to maintain their hold on
the business and decision making. Business can be managed in manner desired by the owners.
Tax advantage: the debt sources of raising capital helps in providing tax advantage. The
amount which is paid in the form of interest is tax deductible which further ensures that net
obligation of a business declines.
Easier Planning: As mentioned it is easier source of raising funds as it clearly defines the
amount which a business have to pay in forms of taxes.
Disadvantages
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Qualification: Qualification in this context refers to the credit score which persuades a
business to grant loans (Grover, Bokalo and Greenway, 2014). Unicorn possess a renowned
name therefore it may not be that difficult to arrange finances.
Collateral: The another major disadvantage of opting for this approach is that a business
have to deposit collateral security to banks in order to avail finance.
Equity Finance
This is another form of finance which aims to raise capital by selling ownership rights of
a business. This source of raising capital is sometimes more preferable than debt sources of
finance.
Advantages
The major advantages of opting for this approach are as follows:
Lesser burden on member: the most important benefit that can be availed in this source of
raising capital. The burden of being a profitable business is being shared by the newly introduced
equity shareholders. Even if the business is yearning profits it is to be shared by all the owners,
Enrichment: the equity shareholders can enrich the existing operating members with their
experience. It is essential to involve experienced individuals with the business so that they define
new approaches and insights of running a business (Hough and et. al., 2010).
Rise in creditability: if the business does not possess right creditability to avail finances
from the debt sources then equity sources of finance is more suitable.
Disadvantages
Share profits: The major drawback of this sources of funds is that profits which is
garnered by the business will be divided among the owners in defined ratio. Unicorn Grocery is a
profitable business therefore it is an obligation to divide the same among existing members.
Less control: the another shortcoming of this approach is that existing owners of this
enterprise experiences a decline in the control over actions and decision making of business. The
equity shareholders exercise their control over the business in return of their capital.
Conflict: it is mentioned that equity shareholders interfere in business operations which
alters the manner in which functions are carried out in business. This alteration of vision and
style of working leads to potential conflict situation in the organisation.
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TASK 3
P4 Design a business plan for growth
A business plan is a document which includes financial and operational objectives of a
corporate association. It entails budgets and detailed plans that shows how to attain future goals
and objectives. A business plan is prepared so as to determine viability of a business model. It
also contains overall financial projections and render predictions about company's performance.
Along with this, it is fundamental for business unit to formulate business plans for getting high
proficiency as well as market growth (Moseley, 2013).
Top management of Unicorn Grocery creates a business plan in order to improve
production level. Thus, before formulating any business plan, they are required to conduct a
market research for getting relevant data about market trends. The prime motive of a business
plan to get better future outcomes. Below describe some stages that are involved in business plan
of the company, such as-
Overview of the company – Unicorn grocery is one of the co-operative grocery store that
is located in Manchester England. The firm was founded in 1996 and now its overall turn over is
7 million. In 2008, it has won two awards, i.e. BBC Radio's 'Best Local Food Retailer' and Best
Independent Retailer.
Product and service – Basically, the firm sells dried, processed and fresh food and
drinking items. in addition, much of its products are organic and produce for household (Schetke,
Haase and Kötter, 2012). In order to keeping prices in line within supermarkets chain, Unicorn
grocery has become one of the leading independent food groceries in UK market.
Mission and vision of the company – The mission statement of Unicorn Grocery is to be
best food and beverage firm by offering consumers' love, create a performance based culture that
encourages and excited staff members. Apart from this, vision statement of the business
organisation is to help people around the globe eat and live better, offering the best brands with
best quality and products.
Situational analysis - This involves to gather the information about firm's strength,
weaknesses, opportunities and threats.
Strengthen -
 Ability to adapt the change markets
 Provide one service in exchange of the other
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 It is vertically integrated with food suppliers and manufactures
Weaknesses
 Weak online offer
 Weak loyalty program
 Lack of personalized couponing
Opportunities -
 Untapped rural market
 Rising income level level, for instance – increasing purchasing power of customers.
 Export potential
Threats
 Removal for import restrictions resulting in replacing of domestic brands
 Slowdowns in rural demand
 Tax and regulatory structure
Budget – After conducting an internal analysis, managers are required to prepare a proper
budget so as to determine the actual amount that is going to be spend on different activities.
Below mentioned marketing budget of Unicorn grocery, such as-
Particulars Amount
Paid search 44%
Search engine optimisation 54%
Video advertising 57%
Employees training 66%.
Allocation of resources – It is essential for managers of Unicorn Grocery to allocate
different resources which are required in order to implementation of a business plan, such as-
human, physical, technical and financial resources (Todes, 2012). For example- managers have
to identify financial requirement of the firm so as to fulfil all tasks and activities in an effective
manner. Apart from this, human resources should be also determined, managers have to fulfil all
training and development needs of staff members.
Implementation of the plan: - At last, the overall business plan is regulated with business
organisation by communicating it to all employees. This consultation helps in making necessary
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changes in the plan so as to make it more efficient and innovative. Moreover, business plan have
to be analysed regularly as per the market changes so that firm can easily achieve its goals and
objectives.
TASK 4
P5 Assessment of exit and succession plan for a business along with their merits and demerits
It is an important aspect for an business enterprise. It is totally dependent on business
performance to determine its future (Keough, 2015). A business yearning profits likely to be
succeeded. On the other hand an enterprise not earning ideal results is to be dissolved. The major
exit plans for this business along with its advantages and disadvantages are as follows:
Liquidation: the first major approach which can be employed by a business is liquidation.
It refers to selling of the assets of the company and further converting them into liquid form i.e.
cash and banks. In context of the organisation this decision is to be formulated by the
owners/managers of business.
Advantages: Major advantages of liquidating an enterprise is that this process is easy and
natural. It is the ends of business and there is no implication of transferring of control to other
party.
Disadvantages: the assets of the company are sold at their market value. Whereas certain
things which are not measurable such goodwill and brand reputation goes down in vain. Every
individual may not be happy with the manner things are carried out.
Acquisition: it is another major exit strategy which is adopted by business when looking
to exit the market. It is essential to find a right acquirer who will do justice to the enterprise. The
value of business is determined and owners ask for prices to acquirer (Li, Mobin and Keyser,
2016).
Advantages: The addition of the application of strategic value, It can get a business an
ideal price. If there are numerous acquirer it can lead to higher prices through bidding.
Disadvantages: This exit strategy is complex as it involves amalgamation of two different
business cultures. When looking it from short term perspective it tends to make life of a owner
unpleasant.
The strategies which can be employed by a business in order to plan succession are as
follows:
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