Strategic Planning for GEN2 SYSTEMS LIMITED: A Plan to Achieve Business Growth

The objectives of GEN2 SYSTEMS LIMITED are to lead business to the next level by attracting new clients, enhancing market share and profit margin ratio. The company can achieve this by introducing new electric measurement equipment, purchasing latest technologies, and promoting their business through local marketing agencies and digital marketing tools. To manage change effectively, the organization needs to establish proper communication, encourage good motivation and leadership, promote participative management, and assess training and development needs. Additionally, monitoring progress and using various tools such as total quality management, balance score card method, and value analysis are crucial to measure performance and identify issues.

Evaluation and Assessment of Small and
Medium Business Organization

1.2 Other comparative techniques for the analysis of company
Company can also undertake analysis of its business performance by using different
techniques other than financial ratio analysis (Grimwade, 2003). These comparative analysis
techniques includes setting of benchmarking, using of balance score card, Porter's five force model
and etc. in benchmarking technique different budgets are been prepared to measure the actual
performance with the standards. The budgets which are mostly used in small business organization
include sales budget, expense budget, cash budget, capital expenditure, production budget and etc
(Antony, Kumar and Labib, 2014). On the other hand, balance score technique is used to assess four
areas of the business financial, customer, internal business process and learning and growth of
business.
Other than this, it has also been identified that it is very essential for GEN2 SYSTEMS
LIMITED to examine the business in context of comparative analysis. It will facilitate management
to understand about the performance of business in current market. It will also provide firm an
information about the factors and techniques that can be utilized to have better success in
competitive market. In other words, it can be work that performance of enterprise can be examine in
context of trade name and public representation, satisfaction level of clients, financial execution,
variety of unique merchandises, speed of service, nature of workers, etc. Other than this, income,
cash flows and profit are few leading components that find out the correct performance of enterprise
in most suitable way.
Table 1: Business performance
PARTICULARS 2013 (Amount in £) 2014 (AMOUNT in £)
SALES 180, 045 225, 050
COST OF SALES 90, 000 110, 000
GROSS PROFIT 35, 000 45, 000
OVERHEADS 15, 000 20, 000
NET PROFITS 40, 045 50, 050
According to above profit and loss account it can be said that the company performance is
increasing day by day with rapid growth in profit ratio. The total revenue of organization has
increased by 10,000 Euros as compared to previous year. GEN2 SYSTEMS LIMITED is facing
issues due to high competition but organization can easily overcome that issues with a use of
comparative measures. It will provide better profits and success to firm.
Further, cited firm can also undertake comparative measures like profitability, sales volume and
non- financial measures. Further, by analysing the difference of two years, it has been evaluated that
the firm have implemented and undertake sound practice in order to increase their revenue as well

as profits. From the above table it has been clearly inferred that the sales, gross profit, overheads
and net profits have increased significantly. The reason behind this is that the employees are highly
motivated and they are focusing on achieving their individual as well as organizational goals and
objectives. This will also help GEN2 SYSTEMS LIMITED to get an competitive advantage over
their major competiitors.
3.1 Critically assessing the value of business objectives, business plans and associated action plans-
These business plans and objectives are genuinely achieved with the planning process (Fink
and Kraus, 2009). Objectives are the set targets which is collectively achieved with the help of
employees and managers. The hierarchy of objectives is a tool which generally helps in analyzing
and communicating the project objectives of the business venture. Hierarchy of objectives is a
structure which comprises of different elements and these are stated down under:
 Mission
 Strategic
 Functional
 Team
 Individual
An organization has been setup with the purpose of making profit by providing qualitative
nutrition food in the market. For example, a company’s goal is to make profit by availing qualitative
nutrition food (Froschheiser, 2010). Then it makes planning premises on the basis of internal and
external factors which will have influence on the business or product line. After that main
limitations of this product line will be identified like finance for manufacturing the product, human
resources requirement, materials, power and machinery. To overcome from this limitation company
will assert towards automated manufacturing system and this will reduce dependency over workers
also help them to achieve higher economies (Julian, 2008).
In the support of above statement it can be said that the GEN2 SYSTEMS LIMITED is
having a strong customer base and its focus is on gaining better brand image at international market.
Organization is having various objectives and goals that they are looking to accomplish in coming
years.
 It has been spotted that the key leading objectives of GEN2 SYSTEMS LIMITED is to
become leader in market.
 Company also aim to become most beloved electronic measurement equipments firm and
gain better market share in next 6 months (Froschheiser, 2010).
 Organization is also looking for better profit margin so that they can have enhanced
opportunity for business expansion in international market.

 Organization also looking to introduce some new measuring equipments that can provide
strength to its product line (Reid, 2007).
 To launch branch office at Asian market within one year so that they can have better
business opportunities at international market and attain some memorable achievements.
 To have advancement in number of loyal customer by offering them best in quality better
complementary services.
 Advancement in marketing actions to have better brand image and lead business to next
level.
3.2. Need to revise business plan and incorporate appropriate changes-
When the business plan would be revised following change would be considered- Examining budgets to be used- When the need about the revise of business plan would be
felt then the budgets which were framed earlier would be reformed as it would direct the
actions of business plan (Fink and Kraus, 2009).
 Different types of budget would be considered- There are number of budget which is
considered while revising business plan. The budgets which are mainly considered are as
follows-
 Master Budget-
 Operational Budget- It is collection of expenses, future costs and
 Cash Flow Budget
 Financial Budget
 Sales Budget
 Production Budget
 Capital Expenditure Budget
Master budget would be made in such a way that any change in one budget would reflect
change in all the budgets (Keyto, 2011). This will help in undertaking appropriate planning. The
cash budget would include all the expenses made for different activities like marketing, production,
operations and capital expenditure. After identifying and selecting appropriate budget, the business
plan would be finalized. It should be note that revising of business plan is very important task as it
helps in identifying and correcting flaws in the business plan (Reid, 2007).
In the support of this, it can be said that after accomplishing all objectives it is necessary for
GEN2 SYSTEMS LIMITED to lead business to next level. Key focus of organization will be to
attract new clients to have enhancement in market share as well as profit margin ratio.

 Company can easily have better customer base by introducing some new electric
measurement equipments. It will attract more customers and also bring better customer base.
It will assist clients to have correct measurements of their electric tools.
 Other than this, organization can also have focus on purchasing the latest technologies so
that product line and services can be enhanced in better way (Keyto, 2011). It will also
increase quality of products as well as customer base on high scale.
 Company can hire a local marketing agency to promote their business effectively at local
market. Organization can have use of social media and other digital marketing tools for
better promotion.
3.3 Action plan to implement changes
It has been identified that the proposed plan need some changes for better business
opportunities and attain long term success. It is necessary to make sure that changes will be identify
before its communication. Organization can implement some changes in plan -
 Getting ready – The one of issues is to identify when, where and how to start process. The
management will identify the issue regarding product/service portfolio, selling and
advertising schemes, organization construction and civilization or some other factors that
can have impact of change (Reid, 2007). The further steps taken will have consideration of
potential affects of changes. It will amend the business opportunities in better way.
 Goals and visions – It is necessary for organization to have their long and short term
business plans and well as their objectives. So all actions decided to perform must have
focus on accomplishment of goals (Nafukho, Graham and Muyia, 2009).
 Present environment – It is also necessary for organization to examine its internal and
external environment. It will make understand about the strengths and weaknesses,
opportunities and threats of firm. This analysis is beneficial to have better asses to potential
consumers and increase sales of products/services.
 Development of strategies – The strategies and decision will take on the basis of analysis. It
will make sure that success and profit of organization is increasing (Grimwade, 2003).
 Conduct policy review – At last it is also necessary to make sure that all the actions that are
going to be implemented are having proper review. This will assist to identify various issues
and provide ways to overcome it for better success.
4.2 and 4.3 Way through which change can be managed effectively
Managing of change is not a difficult task if it is managed in systematic and orderly way. A
manager of the business organization can manage change successfully by practicing following
activities-

 Establishing proper communication and coordination between the employees and different
department (Tribby, 2013).
 Encouraging good motivation and leadership in the organization.
 Promoting participative style of management.
 By following Kurt Lewin model, Mckinsey 7S Framework, Kotter's 8-step model and etc.
 Assessment of training and development need for change implementation.
In the addition to this, change management requires significant amount of time also that
personnel's can easily follow it and feel comfortable in environment. Management can have focus
on implementing change with a help of formal communication method. It will provide information
about the requirements and expectation of employees (Tribby, 2013). Participative and open
communication channel will make workers feel free to share their ideas and beliefs. The feedback
system can also be use for better response towards change. Other than this, appointment of outside
consultants for better training will also facilitate while dealing with change.
Monitoring is also key part of better change management. In the support of this, company
can also have focus over monitoring plan. The below table shows the time line for better monitoring
of goals and objectives accomplishment.
PARTICULARS TIMELINE
 To become leaders in local market  By the end of 2015
 To attain better market share in market  2015
 Introducing some new products  2015
 Best Services  Early 2016
 New Model  2016
 Loyal Clients  Mid 2016
 Gain Competitive positioning  By the end of 2016
Organization can have focus over various tools to measure performance and identify issues.
The classification of tools can be as total quality management, balance score card method, value
analysis. These models will facilitate in measuring the targeted and actual performance gape within
organization. The effective use of multiple methods will make sure that the actions are performed in
correct manner to accomplish goals and objectives (Reid, 2007). It will also ensure that the all
actions are having improved consideration of work standard. If any gape or issue occurred then
methods will provide information about weak areas that is affecting work and leading some issues
in goals accomplishment. Furthermore, it will help management to deal with issues and overcome
it.