Planning for Growth: Zippy Stitch's Expansion Strategies and Analysis

This report provides a comprehensive analysis of growth strategies for Zippy Stitch, a UK-based tailoring business. It begins with an introduction highlighting the importance of business development and planning. Section A focuses on key frameworks for evaluating growth opportunities, including PESTLE analysis, Porter's generic strategies, and Ansoff's growth vector matrix. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors influencing growth. Porter's generic strategies are discussed to achieve competitive advantages. Ansoff's matrix is applied to evaluate market penetration, product development, market development, and diversification strategies. Section B explores exit and succession options for small businesses, examining the benefits and drawbacks of each. The report concludes by summarizing the findings and providing references. The report uses Zippy Stitch as a case study, discussing its potential expansion into new markets and services, and offers valuable insights into business planning and strategic decision-making.

Planning for Growth

Contents
INTRODUCTION.......................................................................................................................................2
SECTION A................................................................................................................................................3
Key frameworks for evaluating growth opportunity................................................................................3
Evaluation of opportunities for growth through Ansoff’s growth vector matrix......................................5
Business plan for growth.........................................................................................................................6
SECTION B................................................................................................................................................8
The exit and succession options for a small business explaining the benefits and drawbacks of each
option......................................................................................................................................................8
CONCLUSION.........................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Each business considers development a fundamental component for its endurance and
more benefits. Little firms make progress toward medium, medium firm’s endeavors to get
enormous. Furthermore, getting ready for development assumes a significant job in this.
Development arranging is a procedure that encourages the entrepreneurs to plan and track their
development. From the plans they try to make the sub plans in which they divide the task into
small activities. There are various sources available with the organization in respect to the
expansion for their business. Expansion brings up the growth and increases the base for
customers. We have choose the option 2nd where we have taken a small and medium size
organisation, as a reference this report has taken an example of Zippy Stitch. Zippy stitch is a
stire in which the stitching work takes place. The stores are capable of stitching the curtains,
pillows covers, dresses, restyling and much more. The store is located in the UK.
This report discuss about the framework for evaluating the growth of company, the sources from
where the organization can raise its capital and the growth opportunity. The report also discuss
about the various sources for entering into new markets along with their advantages and
disadvantages.
SECTION A
Key frameworks for evaluating growth opportunity
PESTLE Analysis for Growth Opportunities:
It is device of key change the board that is applied by business supervisors to recognize
and decide the effect of outer condition and investigate the key patterns and changes in the
outside condition of an association. It very well may be utilized to decide the development open
doors for SMEs in the accompanying way:
Political factors: It alludes to the administration arrangements or the degree of government
intercession in a business domain. Political factors can be considered to recognize any
development opportunity by business supervisors of SME.
Brexit and nearby development: Brexit have come about into an open door for neighborhood
entrepreneurs and different SMEs to expand their deals and income by offering the current scope
of items in different markets which were prior ruled by other European organizations.
Economic factors: These incorporate factors, for example, work rates, import-trade charges,
pace of capital etcetera. Economic factors present an open door for SMEs to give high caliber of
items at significant expenses because of an ascent in the degree of family unit salary.
Cost administration methodology: A lessening in the pace of enthusiasm for advances acquired
by SMEs is a chance to offer extra limits and increment the income and benefits.

Social factors: Changing requests and patterns in utilization conduct impact the procedure of
dynamic by business associations.
Item advancement: It presents an open door for the administration of SMEs to take into account
these dynamic needs by imaginative and creating items as indicated by the requirements and
desires for the shopper that can be recognized by leading successful statistical surveying.
Technological factors: Technological advancement and improvement in the previous decade
have been one of the most critical factors introducing different open doors for development and
improvement of SMEs.
Social media advertising: With the utilization of innovation, for example, social systems
administration and broad communications promoting, the administration of SMEs can build the
possible clients and spread data about the items and administrations being offered by the
organization to generally dissipate clients.
Legal factors: Legal factors, for example, rules and guidelines as for creation, producing,
exchange exercises likewise present development open doors for private companies.
Legal consistence: For instance, consistence with the legal and legal necessities while item
fabricating is an open door for item advancement and boost of income for the organization.
Environmental factors: Environmental security and controlling the natural parity are factors
which present an open door for SMEs to improve generosity by diminishing discharge of green
house gases and carbon impressions.
Eco-accommodating items: With restricted creation speculation, it is workable for the
administration of SMEs to offer eco-accommodating scope of items in new markets to expand
showcase favourability and altruism for business development and advancement.
Porter's generic strategy:
Porter's generic strategy depicts that how an organization can accomplish upper hand
inside the commercial center. Porter depicts four techniques that can be utilized by organizations
of all sizes so as to accomplish edge over contention and for planning systems to grow their
business.
• Cost leadership: - This strategy propose firm to offer item and administrations at
moderately low cost in target showcase which help in accomplishing higher piece of the overall
industry. Utilizing cost leadership strategy Zippy stitch News Limited can catch bigger piece of
the pie which thus will help in working business activities at generally lower cost as contrast
with its rivals.
• Differentiation:- Under this strategy porter proposed that a firm can accomplish higher
piece of the pie by offer the item having some one of a kind component which isn't at present in
the market. This strategy requires high statistical surveying just as development and capacity to

convey high caliber. Differentiation strategy help Zippy stitch News Limited in accomplishing
upper hand and in pulling in enormous number of clients.
• Cost focus:- In cost focus strategy organization focuses on specialty showcase and gives
item at most reduced conceivable cost. Organization make progress in this portion just on the off
chance that they have total information about market elements and need and inclinations of
clients. Under this strategy Zippy stitch News Limited can provide food enormous number of
individuals with item at low value which help them in catching bigger market.
• Differentiation focus:- Under this strategy organization offer items to specialty advertise
having some extraordinary highlights. Differentiation focus strategy requires brand dedication of
client with the goal that firm can stay serious in showcase. By utilizing this strategy Zippy stitch
News Limited can offer special item inside new commercial center which help them in creating
most extreme income and to evade future rivalries.
These are the techniques given by Porter which an association can use so as to accomplish upper
hand over contention. Zippy stitch news constrained is a SME built up in UK which distribute
paper and magazines and now it needs to grow its business activities by including an extra unit
for book printing and distribution in Australia. From the over all systems cost focus strategy is
generally reasonable for the Zippy stitch news, in which organization can offer their
administrations at moderately low cost from that of contenders. This will help in accomplishing
Zippy stitch news in drawing in bigger number of clients at new spot and in accomplishing upper
hand.
Evaluation of opportunities for growth through Ansoff’s growth vector matrix
This framework is introduced by Russian American name Ignor ansoff. He was a great
mathematician and an entrepreneur (Barbour and Deakin, 2012). He concocted this idea. Ansoff
grid is an apparatus which helps the organization's officials, ranking directors & the else vital
factors in framing procedures for next development. The framework has around 4 strategy
which are as follows:
Market Penetration: This strategy seeks focus upon offering the existing or the same products
in the existing market. Here the company aims in increase in the market share through increase
in their sales. The company takes the help of advertising, promotional activities, discounts,
offers, and much more so that they can attract more and more customer for their products. As in
the case with Zippy Stitch, the company can increase its sells through adoption of various
promotional and discount activities; this can enable the firm in increasing its market share. The
discount offers will attract the customers and buyers and would make them for availing the
services of the organization. This strategy is opt by the firm when they want to operate into the
existing market and they has to make their customer base strong. Such promotional activities can
end up being an extraordinary bit of leeway (Kumar, 2016). Or on the other hand the store can
likewise think of limits in which it offers its types of assistance at limited sum by keeping the
quality consistent. In like manner, the above stated firm could likewise do their publicizing &
advancements into region in which the individuals get obscure.

Product Development- It focuses on presenting latest products in the current market. Here the
organization expands itself by familiarizing with new products with their current market. In this
organization provide food the current place. This is achievable by showing interest in an
innovative work office. In this strategy the firm or the business tries its best to bring up a new
and innovative product into the existing market. As in the case with Zippy stitch, the
organization can bring up new services along with the existing services into the existing target
market. The company with this can also increases its customer base. The new product or the
services are been developed in this strategy which can help in increasing the market growth for
the firm.
Market Development- It is the strategy in which the organization targets into the new market
with its existing products. In this strategy the firm seeks focus on expansion. They bring
expansion through entering into new markets with the use of various approaches or sources like
exporting, licensing, partnership, joint ventures and the so on (Colantoni and et. al.,2016). While
entering into the new market, the firm has to take the use of various advertising and promotional
events and activities so that they can educate the people about the services they have to offer to
them. As in the case with Zippy Stitch, the organization can use the licensing or partnership for
expanding its business into new markets.
Diversification- It is the strategy in which the organization aims at a new market with the whole
new series of product. In this the organization first performs the market research about the
market in which it is planning for putting its steps. After conducting the proper research the
organization analyse the needs and wants to the people of that market. Through analysing this the
organization detect the trends and needs to targeted market and then they produces the produces
or the services accordingly. Diversification is of two types. One in the market where the factors
of that market is quite similar to the factor of existing market. And second the market where all
the factors are totally different from any of the existing market. As in the case with Zippy stitch
the company can opt for the market which it believes in that market their company can perform
very well (Galland, 2012).
These all are the development systems of Ansoff network which help Zippy stitch news
in choosing future game-plan for their business extension. Among above clarified systems
broadening is the best appropriate development procedures for Zippy stitch news as they need to
grow their business tasks by presenting new assistance inside the new nation for example Joined
Kingdom. Expansion help organization in accomplishing worldwide nearness with higher brand
picture and being a high hazard better yield technique organization have a chance to accomplish
higher income utilizing it.
Business plan for growth
Planning for business is outline of thoughts & exercises which will be work into
association. It could be commonsense & hypothetical methodology; which are in demand for
firm its development. Getting clear about vision just the strategic it is significant to investigate

and set up an appropriate blue print which will helps association in lessening clashes and
blunders. Subsequently, it speaks to an unmistakable picture about objectives and targets that are
to be accomplished in future.
Overview
Zippy Stitch, a fitting and adjustment organization headquartered in UK. Organization for the
most part bargains in fitting of items like coats, jackets, pants, shirts and so forth. In this manner,
it has generosity for offering a decent assistance among the clients and customers. As the
business has successfully establish in offline platforms , they also has started taking the online
orders where the customers can put their product specifications with details and can receive the
order. At online platform also, slowly but steady the organization is facing success. The brand
has started creating a positive value and the demand for this services and products is increasing
day by day.
Mission and vision: Every organization has a mission and vision which it forms and stands by it.
All the strategies which are made by the organization gets surround by these mission and vision.
The zippy stitch has the mission to provide the best quality stitching to their customers. They
vision of the organization is to expand the business through gaining the trust of people by
proving them the best quality stitching services. The mission and vision are set for the long term.
It should be unique and out of the box for any organization (Williamson and Parolin, 2013).
Situational Analysis- this is concern with a technique that delineates & decides the external and
elements that could influence by the firm. Specific inside & outer elements get included that has
straight effect at business efficiency, benefit & deals income & development. Along these lines,
Zippy Stitch is additionally expanding the organization. The SWOT analyses of Zippy Stitch are
as follows:
STRENGTH
· It has solid contender for the opponents
as a result of offering great types of
assistance just as an appropriate time
the board to its clients.
· Prices are moderate of item which
pulls in more clients and builds brand
mindfulness.
WEAKNESS
· Expansion organization gets delayed
because of that assets gets out of date.

OPPORTUNITY
· The company has the opportunity to
get itself opened at various places for
expansion. This can bring a huge
growth into the business.
· Company can also go for partnership
where it can tie the hands with the
company who already has establish
into that market.
THREATS
· Technologies are expanding
everywhere throughout. These are the
frequently said that embracing of
advances improves the labor job.
Because of utilization propelled
machines fitting and adjusting
organizations are closing down along
these lines, Zippy Stitch ought to
receive new techniques to defeat with
this circumstance.
STP Approach- Association utilizes numerous methodologies so as to pick up development and
improvement in business. Thus, STP is one of them which are for the most part utilized by
substances which disentangles their market segmentation process (Deng, Fu and Sun, 2018). STP
is explained as Segmentation, Targeting, Positioning which are referenced beneath.
Segmentation: Segmentation refers to an activity in which the organization divides the
market on a various basis. This basis can be of domestic, economic, social, and geographical and
the so on. The organization divides the market so that they can easily detect the market in which
they can put their feet. Through segmentation the market gets divided and it becomes very much
easy for the company to differentiate the market and go for the place where they can easily detect
the market which they want to target from the available alternatives.
Targeting: In this, fragment of market is focused on which has more noteworthy yield than
others. This predominantly center on simple entry, quality and cost of the item. It relies upon a
few premises of factors to target which market, for example, segment, pay, age and sexual
orientation (Ozanne, Biggs and Kurowski, 2014). In targeting the organization choose the market
from the available alternatives. They choose the market such that they believe they can establish
their services or product offered. The company in this stage finales the market in which it want to
target.
Positioning: Each association needs its items to set at some situation in the market. Positioning
of an item mirror an extraordinary picture in the objective fragment. There are various kinds of
positioning, for example, re-positioning, marking and item positioning. It relies upon item and
market to trigger or embrace which sort of positioning.

SECTION B
The exit and succession options for a small business explaining the benefits and drawbacks of
each option
Expansion brings growth to the organization. Through expansion the profit potential for
the company and its customer case gets increase. Also the brand start gaining the awareness and
positive responses from the market at which the company has just entered in. Various approaches
or sources for establishing the expansion of the business are as follows:
Liquidation:

Liquidation is an extremely regular leave procedure in present moment for SMEs where the tasks
and exchange exercises of a business association are closed, and resources are sold in the market
to take care of the liabilities. A basic assessment of the liquidation technique for the
administration of Marshfield Bakery is being done as follows:
Advantages:· It is where the business activities reach a conclusion by a characteristic procedure which
guarantees that no legitimate difficulty exists later on.· Under liquidation, terms and understandings of rent are finished on the date of liquidation
that guarantees no fixed installment in future in spite of closing down of business
activities.
Downsides:· Generation of the altruism sum is preposterous in the event of liquidation of a business
association which is its greatest burden.· In the procedure of liquidation, resources can either be sold at a value higher or lower
than the book an incentive to take care of liabilities which generally makes a danger of
loss of capital contributed by the proprietors.
Merger and Acquisition:
With regards to SMEs, Mergers and Acquisitions are regular leave system in the drawn out
where generally a worldwide enterprise gains the current SMEs to solidify the organizations at a
noteworthy cost. Acquisition has the essential goal of disposing of rivalry. The accompanying
advantages and disadvantages of Merger and Acquisition can be considered by the
administration of Marshfield Bakery:
Advantages:· It is the most beneficial leave technique in the drawn out where the entrepreneurs have
the chance to understand a decent sum and money related assets in the merger and
acquisition bargains.· With the assistance of converging with an enormous worldwide organization, SMEs can
acquire the advantages of economies of scale and additionally get an entrance to bigger
market and existing client base of the huge partnership.

Disadvantages:
• Merger and acquisition can result into restraining infrastructure force and decline in
the quantity of decisions for shopper that can influence the altruism and picture of a
business association over the long haul.
• In the setting of little and medium business associations, merger and acquisition can
result into loss of market character and picture for the organization which isn't
attractive by the administration of SMEs considering the difficult work and endeavors
which go behind foundation of a business association and formation of brand
mindfulness in the market.
Selling: It is consider as a generally mainstream and normal mechanism for getting an exit. In
this strategy the proprietor of the business sells his business in an open market. In this the
intrigued prospect comes show their worth which they are prepared to give for purchasing the
business. In this procedure of purchasing and selling the proprietor picks that candidates who he
accepts is prepared are giving genuine incentive to them. On the off chance that the business is
running at benefits or had generosity, at that point the incentive at its selling cost would be high,
however in the event that the business was running in a colossal misfortune, at that point the
incentive for the equivalent could be extremely less. In this the organization likewise has an
alternative to offer its business to another business.
Advantages: When the genuine incentive for business is taken out then the valuation of altruism
and of its benefits do get included for computing its actual worth. This fills in as in advantage for
the organization.
Downsides: It has been seen that finding a genuine purchaser or a possibility beyond all
detectable inhibitions advertise for business is a significant long and tedious procedure. Since it
is uncommon to discover the purchaser who is prepared to pay the worth which the vender needs
for its business.
Family succession: The family succession alludes to the exchange of ownership of business
when the started party gets resigned, unfortunate, or passing. In such cases the business goes to
their family part. The part to which the business gets moved currently should guarantee that the
duties and exercises into the business ought to be taken at a similar path as it was previously.
Advantages: The family succession has an advantage that the business gets into the family as it
were. It doesn't get moved into some other business or into obscure random gathering. As the

business remains into the family just, its tasks and its exercises runs at a similar path as it was
before without making any sort of contentions or disarrays about its activities.
Downsides: If the family individuals don't have the solid succession plan then the business may
stumble into difficulty. The families may confront the lawful issues, money related issues,
operational and the board issues when the succession arranging isn't clear and straightforward.
These issues likewise perishes the estimation of the business into the market, which incorporates
the altruism too. These things can unfavorably influence the business and its tasks.
Merger and acquisition can be an option which the Zippy stitch can use. In this option the
company can divide the risk associated and resources which are needed into the project.
CONCLUSION
From the report discussed above, the different key consideration for growth is been
discussed, for example Boston consultancy matrix and mckinsey model. The strategies which the
organization uses in respect for their growth has also been mentioned into the report. The report
also includes the business plan in which the STP of the company has performed. There are many
various or modes of entry for expansion some of them are exporting, licensing, joint venture and
the so on.
REFERENCES
Books and Journals