Report on Unicorn's Growth Strategies, Funding and Exit Options

This report provides a comprehensive analysis of growth strategies for the fictional company, Unicorn. It begins by identifying key considerations for evaluating growth opportunities, including competitive advantages, market development, product and service development, and diversification. The report then applies Ansoff's growth vector matrix to explore growth opportunities, including market penetration, market development, product development, and diversification. It also examines potential sources of funding available to businesses, such as shares, bank loans, smart leases, angel investors, and bank overdrafts, along with their respective benefits and drawbacks. Furthermore, the report includes a business plan outlining financial and strategic objectives for Unicorn's growth. Finally, it explores small business exit or succession options, considering the benefits and drawbacks of each. The report aims to provide a practical guide for businesses seeking to expand and achieve sustainable growth.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Key considerations for evaluating growth opportunities..................................................1
P2 Opportunities for growth applying Ansoff's growth vector matrix...................................3
LO 2.................................................................................................................................................5
P3 Potential sources of funding available to businesses and benefits and drawbacks of each
source......................................................................................................................................5
LO 3.................................................................................................................................................7
P 4 Business plan including the financial and strategic objectives........................................7
LO 4.................................................................................................................................................9
P 5 Small businesses exit or Succession options....................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth is the main part of business from that the business of Unicorn can be
expanded and take growth in the market. This report introduces the consideration of evaluating
the growth opportunities and also justify these considerations within the Unicorn context. The
report also covers the opportunities of growth in a business with the help of Ansoff's growth
vector matrix. The potential sources of funding are also there for expanding or exploring the
business with benefits and drawbacks. This introduction also involves the business plan of
Unicorn to growth and financial information about scaling up the business from strategic
objectives. The report also covers the exit and succession options for the Unicorn with the
benefits and drawback of each option.
LO 1
P1 Key considerations for evaluating growth opportunities
It is important for Unicorn to evaluate its growth opportunities to find position in the
market place. It becomes a priority nowadays for the organization. The growth can be measure
by looking some statistics of the Unicorn such as turnover, market share, profits, sales and staff
member numbers. Even if organization growth is going good but it is important to keep finding
new opportunities for the business growth (Kumar, 2016). Growth opportunities help business to
develop its strategies and plans also to expand the business with productivity and profitability.
Here are some growth opportunities for Unicorn:
Competitive advantage:
The basis of competitive advantage is a foundation for growth such as resources,
capabilities and core competences. Small business has many competitors which means business
need to focus on opportunities from which it can be expand or find ways to compete the other in
the market. Unicorn can make strategies and plans from evaluating the present business growth
and use it as a future opportunity advantage. Unicorn can also evaluate the capabilities of its core
competitors to ensure its market position and able to make changes according to it.
Business market development
Market is the area where the business sells its existing products. There are many ways to
approach the market segment and make according strategy such as new product dimension,
packaging, all new geographical markets, new distribution channels and difference price policies
to attract different type of customers or creating new market strategies. The business owner
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should think about the market development strategy before implementing the following aspects:
profitability of new strategy, will it requires, research to understand the customer and channel
distribution. Market development can be divided into three parts and these are targeting the
customers, assessing their needs and demands, good communication with them and building a
community (Pallagst, Mulligan, Cunningham-Sabot, and 2017). Unicorn can develop new
market where they are able to provide products and services to people. It will help in expanding
in new market as well.
Product and service development
Product development is the opportunity to expand the local business. Product
development involves making new products and launch it to existing market for the attention of
the customers. The old products can also redevelop for the market product strategy. The new
products with new changes and improvements will compete with the others and create good
impression upon customers. The product development strategy carried some quality
improvements in the product such as better, bigger, stronger and attractive with style
improvement. The new product will develop according to the need and demands of the
customers which attract the existing one's also to buy the latest version of products and services.
By this Unicorn can attract new customers and retain old ones. This will help them to develop
large customer base. Moreover, it will be useful in targeting new people as well.
Diversification
Diversification is a strategy in which business or company launch their new products and
services into the new markets. This is a risky strategy that business has no idea of new market
and experience but also can be an opportunity for the business in terms of new market, new
customers, new brand image, acquisition of firm, licensing of new technologies etc. Unicorn can
diversify into new markets with new products. They can select a particular area and then offer
new products to people.
Technologies and innovation
In this modern world the technologies, techniques and new innovations are taking place
for business growth opportunities. Unicorn can adopt new techniques and technologies for their
business to make effective and developed products for their customers and can grow their
business effectively. The new innovations in the market segments allow a business to make
effective changes according to the business requirements. Unicorn can use advance technology
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to improve product quality. The company can install new software and applications which will
result in generating new services. Besides this, by developing new IT company can expand their
area of operation.
Strategies and plans
The strategies and plans can be an opportunity for the business to expand its business.
The right implementation of strategies and plans according to the business help it to make
necessary changes and also the new techniques from which Unicorn can increase its productivity
and profitability. Strategies and plans should be according to the business current position and
taking advantages of the future opportunities. Unicorn can change their strategy according to
market conditions. They can take tactical, operational, etc. strategy and implement them. It will
be support them in maintaining their performance in the market.
P2 Opportunities for growth applying Ansoff's growth vector matrix
Ansoff's growth vector matrix
It is commonly known as the product grid or matrix. It has four elements which are for
the growth by matching up existing and new products and services in the new market. It also
helps to understand the risk factor while moving one from another matrix. It is market strategic
tool which link market strategies to its general direction (pugalis, Townsend, Gray, and
Ankowska, 2016). This matrix includes four growth strategies which are market penetration,
development of market, product development and diversification.
Market development
The best approach for attracting new customers towards market is the development and
improvement in the market segment. The new customers can be defined by the new locations,
country or can be new demographic. Market is the area where the business sells its existing
products. There are many ways to approach the market segment and make according strategy
such as new product dimension, packaging, all new geographical markets, new distribution
channels and difference price policies to attract different type of customers or creating new
market strategies. Unicorn can enter in new market which will help in attracting more customers.
Product development
Product development is creating new products and services or improve the existing ones
for selling the customers. Product development is the opportunity to expand the local business.
Product development involves making new products and launch it to existing market for the
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attention of the customers. The product development strategy carried some quality improvements
in the product such as better, bigger, stronger and attractive with style improvement. The new
product will develop according to the need and demands of the customers which attract the
existing one's also to buy the latest version of products and services (MacLachlan, Biggs,
Roberts, and Boruff, 2017). Unicorn can develop new products to fulfil customer needs.
Diversification
Diversification is a strategy in which business or company launch their new products and
services into the new markets. This is a risky strategy that business have no idea of new market
and experience but also can be an opportunity for the business in terms of new market, new
customers, new brand image, acquisition of firm, licensing of new technologies etc. the business
can run well with this if the business is already has a great foundation.
The fourth stage of this matrix is market approach: from above three market growth
which is, market penetration, product and service development, and diversification is approaches
to reach the new market instantly with effectiveness. Unicorn can diversify into new markets
with new products.
Collaboration
Collaboration is a network of business or group which have agreed to cooperate for
achieving business objectives. Working collaboratively can make significant contribution
towards the success of business and manage to deliver benefits for business such as saving costs,
increasing sales, transferring knowledge, new market approach, increase capabilities and
capacity with effectiveness and efficiently (Pennock, Poland, and Hancock, 2016). Here are
some benefits of collaboration as below: unicorn can collaborate with other companies which
will enable them to expand. The company can emerge in new markets by partnering with others.
Financial benefits
Financial benefits include increasing in export sales and domestic, a joint venture for
achieving larger contracts and reduction in costs from resources sharing. Unicorn can work in
partnership which will help in generating more profits.
Human capital
The benefits for the members are that they can develop their employees skills and
capabilities, increase the employment and motivate the staff for doing their best for the Unicorn.
Develop new process
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Joining a new network can help business to develop and improve innovative products and
services. It also helps business to measure the market place and position of the firm with
identifying all new customers and allow them to compete more effectively.
Intellectual capital
The intellectual capital of a business may benefit through sharing information, research
and development in collaboration activities, designs. This will help firm to increase its
capabilities and capacities.
LO 2
P3 Potential sources of funding available to businesses and benefits and drawbacks of each
source
There are so many funding resources for starting a business or between the business to
take financial advantages in present and future (Leao, Huynh, Taylor, Pettit, and Perez, 2017).
Here are some sources of funding for Unicorn:
Shares
Shares are the convertible things from which business can take money from the
shareholder. Shares are the assets of the company which is purchased by share holders by money
and business can find a source of funding from it. The drawback of share is that sometimes,
shareholders purchase the shares and not able to give money instead they return the shares of the
business.
Bank loan
Bank loan is available for all kind of business firms for starting a new business or
expanding the business in the market. This is also a good source of funding which can be
utilizing for the business activities. The drawback of bank loan is that it charges the interest upon
loan and security of its money is also mentioned in case of debts.
Smart leases
Smart lease are those which business sell or lease their properties for requirements of
cash or working capital. The personal or business assets can be lease to anyone and accept cash
instead of the property value. The drawback of smart leases is that if the business is not able to
free his property from the leaser than it will be sold by them to receive their money. The cost of
lease is little higher from the bank loans.
Angel or private equity
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Private equity is the selling of ownership for getting business off the ground. It means a
respected industry executive who is interested to invest a reasonable amount to your business
venture is also a funding source for the Unicorn. The drawback of this funding is that the
decisions are affected and the management slightly disturbed because of the ownership
diversification (Husain, Patierno, Zosa-Feranil, and Smith, 2016).
Bank overdraft
Bank overdraft is a service provided by the bank to their customers that their customers
can take or borrow money from the bank according to their previous transaction records. The
quantity of the borrowings depends upon the credits and transactions of the customers. The
drawback of the bank overdraft is that the money allotted by the banks are limited according to
the transactions.
Customers
Customers are also a source of funding that they can give business some advance
payments for their assumptions. Advances are also demonstrated the level of business to operate
the business operations. Funding by the customers in the form of advance payments for resources
is the advantage for the Unicorn to expand its business activities. The drawback of customers is
that they can also borrow the products and services instead of cash purchasing.
Friends and family members
The simple way for funding resources is the friends and family members. The
entrepreneur can take money to run his business from his friends and family members which can
help him to run cash activities in the business (Kelliher, Shanahan, and Whiteoak, 2017). The
drawback of this function is that sometimes the cash is not available to friends and family
members that they are not able to give money and become helpless.
Factoring
Factoring is an also a source of funding with a little investment. In this function the bank
collects the money from third party on behalf of the entrepreneur that he needs to pay some
amount from his collecting money which is decided by the bank. This can available the funds for
the business. The drawback of factoring is that sometimes bank is also not able to collect the
money and charged the procedure money from the business or property owner.
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LO 3
P 4 Business plan including the financial and strategic objectives
Executive summary – This business plan has explained future strategy that will help Unicorn in
expanding in other markets. Also, it has discussed about marketing strategies that company will
follow in order to do so. Besides this, competitor analysis has been done. Moreover, financial
plan have been described which will enable business to attain their goals.
Business background- The sited establishment belongs to financial sector which provides
different kind of financial investment option to its clients. It provides both open and close ended
designed investment funds to variety of investors (Unicorn asset management. 2016). The
company is located in the Charter house. It was established in 2000 and operates only in Europe.
Vision – To satisfy investor requirements by providing close and open ended investment.
Smart objectives –
 Specific- To raise sales by 10% in 1 year.
 Measurable- To increase number of customer
 Attainable – to expand in large area.
 Realistic- To increase customer base by 3 %.
 Time bound – To generate more revenue within 3 months.
Market analysis – It has been analyzed that there are many companies that exists in financial
market. So, there is intense competition among them. So, each company offers variety of
investment services to businesses and people. Besides this, there are no entry and exist barriers.
Thus, it makes it easy for them to operate in financial sector.
Competitive analysis- This is done to find the competition within the market. By doing this the
competitor’s strategy and their weakness in selling the products is find out. This in return is
useful for finding loops holes that are prevailing in the competitor’s strategy so that these can be
rectified and used in Unicorn strategy for attracting the consumers. The strategy can be made by
analyzing the future return of every investment and then providing them to customers. Offering
discounts on commission taken can also be done in order to attract the customers.
Strategy- In order to survive in the financial market it is important that the company is able to
market its investment plans so that the customers are attracted towards it. More efficient the
investment plan of the Unicorn will be more will be the customer satisfaction. This will be useful
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to achieve the objectives and goals. More attractive marketing will show that how effective the
features and characteristics of investment plan are. Moreover effective marketing develops value
perception of products which in result helps in identifying the image of the company. This leads
to increase in goodwill of Unicorn. In today's digitizing world most of the company use digital
ways in doing marketing of the products. Unicorn must use cheap digital modes of marketing the
plans or must make their own mobile application (Rakodi,, 2014).
Marketing plan- It provides the long term growth run to the business. In this the development
strategies regarding the expansion of business is made. The Unicorn can expand their business
into different countries in which they are not operating. The countries like Middle East in which
the financial market if often stable. They should start developing portfolios by segmenting the
customers i.e. for low risk taking they must develop small portfolio, for high risk other and so
on. They should hire financial experts which can help in analyzing the future return of every
fund. Also they can launch their own mutual funds in order to gain more market share.
Operations plan- To identify the roles and responsibilities of each department it is necessary to
make a management plan. This helps in describing that what each department has to do and
when they will do. It eliminates the disputes and issues that arise between various departments.
Formulation of policies and procedures of every department will improve their performance and
it will lead to achievement of overall objectives. Every department in Unicorn will be having
their own objectives to be attained and for this they will be allocated budgets which will contain
both capital and expenses. The resources are allocated according to the task and roles of each
department (Bushnell and et.al., 2015)
Financial plan- In order to execute the above mentioned plan that has been made for the growth
and development of Unicorn a strong and effective financial plan is needed. A financial plan
usually refers to budget for the next year. The plan can be made by analyzing the past records
and financial statements of Unicorn. A good plan will improve the financial performance of
Unicorn and they will be able to make growth in the market. The making of financial plan
suggests that the resources available to execute the growth plan are sufficient or not. It also helps
in finding the differences in resources that are required and shows the different sources of
financing the additional funds. On the basis of financial situation, Unicorn will be able to select
the best source of funding. This will show the positive or negative effect on assets of Unicorn
after the sourcing. The objective is to increase sales by 10% in one year.
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Financial plan
Cash flow statement
Year 2017 Year 2018
Operations
Cash from customers £1500 £1300
Wage expenses £200 £400
Income £800 £300
Investing activities
Sale of land £1000 £800
Cash paid £750 £500
Financing activities
Borrowing £1200 £400
Bank loan £2000 £400
LO 4
P 5 Small businesses exit or Succession options
A business started by any individual may get failed and later there are many options
available to exit (Blackburn, and et.al 2013). These options help in easy exit of business from the
market.
Merger and acquisition- in this the owner of the business decides to sell the entire business to
other larger firm. The merger and acquisition is done by signing an agreement which contains
complete terms and conditions that has to be followed by both the firms. The small business
owner can also involve in deciding the operations of company if it has been mentioned in terms
and conditions of agreement. The larger companies get the advantage of gaining the market share
by acquiring the small firm. The advantage is that the human resource and property of both the
firms get combined which helps in better productivity and performance of whole enterprise.
This helps in creating a new business model in the market. The disadvantage is the clash of
culture increases conflicts and affect productivity of employees. It creates distraction among the
senior level management as they do not get agree on one decision.
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Liquidation- in this the business owner decides to liquidate its firm by selling the assets. It is
done in a situation in which the business is struggling for growth in the market and the strategies
made by them fail due to competitors influence in the market. This is the rarest thing that is done
by the business. The values of assets are evaluated and is distributed to various people. The first
one are the creditors because company owns them money and the last one are the shareholders.
The advantage is that no legal action is taken for employees as all the debt is paid off . Also,
there is no issue of getting bankrupt by liquidation. The disadvantage is that there is a lot of
government interventions liquidating of firm. It is very hard decision taken as it affects the lives
of people who are associated with it. The cost involved in this procedure is also very high
IPO- the best and easy way to sell the share to the public. This helps in bringing large amount of
cash in the hands of owner within short time. The advantage is that the business can easily exit
and it does not require any extra efforts. The disadvantage is that the cost involved in IPO is very
high. Also company has to make disclosures and submit regulations regarding the IPO
(Eddleston, and et.al., 2013)
Friends- this business is sold to a friend or a person who is more experienced and have more
knowledge in running the business. The person is also able to successfully run the business as he
knows what to do and when. This generally happens in family business where one person pass
on the business operations to another. Therefore it can not be called as a merger or acquisition
because in this the two entities are not combining themselves. Its advantages are that the business
sold to friend whose skills and abilities are already know by the owner. There will be no regret
of selling it to friend or relative. Its disadvantage is that sometimes it may lead to issues and
conflicts between relatives or friends. This may hamper the relationship between them.
Life style exit- In this the business do not aim at growth or expansion rather than winding up the
business when there are no profits earned. This usually happens for the small scale or privately
owned business. The owner takes all the profit that is earned. This is also called straight forward
exit. For example consultancy firms, property dealers, etc. Its advantage is that the owner does
not have to pay a single penny to anyone. Its disadvantage is that a lot of tax has to be paid to the
government. When the business requires capital the money has already gone into owner’s
pocket.
Customers- the business can be sold to customers who are willing to do buy or do a business.
This can be done by asking the most loyal and trustworthy customers who are regular buyers of
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the product. This can also involve partners who are customers. It is also an easy way to exit from
business (Ward, 2016).
CONCLUSION
In this report the growth opportunities of Unicorn are analysed and within the context
which help to expand the business growth in any sector or changing the place of the business.
The Ansoff's growth vector matrix helps Unicorn to find and apply its opportunities to grow the
business and achieve its objectives. The sources of funding are also available for the business to
run it continuously and can take advantages of future opportunities with funding. The benefits of
each source and drawbacks are also mentioned that the firm can understand the suitable resource
for funding in the business activities. This report also designs a business plan for the growth of
the business and financial information with strategic objectives for scaling up the business
activities. The succession options are also there for the small business industry Unicorn to
understand the business activities and objectives with the benefits and drawback of each
function.
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REFERENCES
Books and Journals
Kumar, D., 2016. Enterprise growth strategy: vision, planning and execution. CRC Press.
Pallagst, K., Mulligan, H., Cunningham-Sabot, E. and Fol, S., 2017. The shrinking city awakens:
perceptions and strategies on the way to revitalisation?.
Pugalis, L., Townsend, A., Gray, N. and Ankowska, A., 2016. New approaches to growth
planning on larger- than-local scales. Journal of Urban Regeneration &
Renewal, 10(1), pp.73-88.
MacLachlan, A., Biggs, E., Roberts, G. and Boruff, B., 2017. Urban Growth Dynamics in Perth,
Western Australia: Using Applied Remote Sensing for Sustainable Future
Planning. Land, 6(1), p.9.
Pennock, M., Poland, B. and Hancock, T., 2016. Resource Depletion, Peak Oil, and Public
Health: Planning for a Slow Growth Future. Geographies of Health and
Development, p.177.
Leao, S.Z., Huynh, N., Taylor, A., Pettit, C. and Perez, P., 2017. Evolution of a Synthetic
Population and Its Daily Mobility Patterns Under Spatial Strategies for Urban
Growth. In Planning Support Science for Smarter Urban Futures (pp. 399-417).
Springer International Publishing.
Kelliher, A.C.M., Shanahan, M. and Whiteoak, K., 2017. Integrated water planning to enable
sustainable city growth. In SENG 2017: Sustainable Engineering Society Conference:
Engineering Sustainable Cities (p. 18). Engineers Australia.
Husain, I., Patierno, K., Zosa-Feranil, I. and Smith, R., 2016. Fostering economic growth equity
and resilience in sub-Saharan Africa: The role of family planning.
Online
Unicorn asset management. 2016. [online] Available through : < https://www.unicornam.com/>
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