The growth of any business is a long-term practice that requires a lot of resources and expertise. I’ll try to persuade them by laying out my 5-year strategic growth plan, which will prioritize long-term rather than short-term results while reaffirming the company’s original ethical and environmental values. Plan of Action (Five Years) the mission, objectives, plans, tactics, and actions of a firm are all part of the strategic planning process. This plan will be a strategic road map that guides the business to achieve its long-term objectives, make more investments and make more revenue, factors that describe the growth of a business. The objective of our organization is to build a future where humans and the environment coexist.
Objective – Through well-defined strategic planning, the SMART (Specific, Measurable, Achievable, Realistic, and Time-Bound) goal is to enhance profitability by at least 15% per year while safeguarding the environment over five years.
As a result of the challenges posed by climate change and other external variables that may have an impact on the world we live in, a rising number of people or potential clients are drawn to the idea of businesses taking greater social and environmental responsibility. Several countries throughout the world are gradually supporting this by passing laws that promote social and environmental awareness and punish noncompliance. This will help me make a stronger case when presenting the 5-year strategy because it will allow the company to be in business for a long period. I must remain steadfast in my opinion that the company’s principles must come first, and profits will follow because the longer the company is in business, the more possibilities will present themselves.
A public debt offering, such as the issuance of bonds, is an alternative to a public offering. In exchange, Dottie’s Grocery would be required to pay interest to investors on a defined schedule and rate through the coupon rate. It’s worth noting that IPOs are more expensive than corporate bonds since stock investments are riskier than bond investments because capital gains are not guaranteed, dividends are discretionary, and stockholders have a claim to the company’s assets in the event of default (Cole and Sokolyk, 2018). I would have a higher Weighted Average Cost of Capital if Dottie’s Grocery chose this method. Choosing corporate bonds, on the other hand, would provide Dottie’s Grocery with tax benefits as well as the independence to manage the business.
Although tactics based on social and environmental values will inevitably entail expenses, I will describe them in such a way that they can be considered an investment. I’ll underline to them the enormous benefits of the company’s ethical and environmental ideals, such as a favorable reputation and solid corporate alliances, as well as community relations, which have helped it get to this point. If the shareholders aren’t happy, I’ll have to find another investor that believes in the company’s objective and vision. The guarded financial approach would lead to increased transparency in financial reporting if Dottie’s Grocery was listed. The corporation would be expected to submit quarterly and annual reports, for example. Market risk, legal actions, and payment defaults and controls would be included in quarterly reports, while equity holdings, subsidiaries, and changes with accountants, incorporations, and stock plans would be included in annual reports.
Furthermore, the lack of financial capacity that prohibits the company from competing in the industry is the reason I permitted shareholders and/or investors into the company. Operating with business partners who have distinct objectives, missions, and visions, on the other hand, is not sustainable in the long run since it will result in poor planning, communication, and cultural confrontations as a result of the goals discrepancies, sabotaging growth possibilities. Additional debt for Dottie’s Grocery could harm the company’s financial position; for example, greater interest payment duties could lead to a risk of default. This might happen when the company’s sales drop, leaving it with insufficient cash to repay bondholders, (Fairfax, 2019).
Reference
Cole, R. A., & Sokolyk, T. (2018). Debt financing, survival, and growth of start-up firms. Journal of Corporate Finance, 50, 609-625.
Fairfax, L. M. (2019). From apathy to activism: The emergence, impact, and future of shareholder activism as the new corporate governance norm. BUL Rev., 99, 1301.
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