Giacom: Ansoff Matrix, Funding, Exit and Succession in SMEs

This report discusses Giacom's growth opportunities through Ansoff Matrix, funding options, exit and succession strategies in SMEs. It explains the advantages and drawbacks of each option. It also covers the business plan, SMART analysis, and financial plan.

UNIT-42 Question
TABLE OF CONTENT

INTRODUCTION 3
Ansoff Matrix for growth of business 4
Defining funding and factors that provide in small medium enterprise 5
Explaining exit, succession and their benefits and drawbacks in business of small medium 6
Determining several terms and procedure 7
CONCLUSION 9
REFERENCES 10

INTRODUCTION
The report is based on Giacom company which is located in the UK and provides various
facilities driven by them towards leading as an IT company. Their main purpose is to satisfy
customers and give them productive services to increase their growth as an SME organization. In
these defining opportunities of growth to expand their business and Ansoff matrix analysis in it.
Funding, succession and exit of small medium enterprise, also determining business plan,
summary about firm and several ways in order to evaluate contents of above questions regarding
organisation. Through discussing these helps in expansion of business to grow their company.
Expansion opportunities
For expanding business opportunities in Giacom they should do several things such as for

consumers they may build their organization in a good place where customers can easily travel
and reach their organization. Without facing any difficulties in their area and helps in expansion
of their business. When it comes to a new field is important to make a group of people effective
in order to expand their business (Jayawickreme and et.al, 2021). Then vendors by connecting
from them helps in suggesting new ideas, creates innovative skills in order to continue their
services in new areas as the company is IT based who provides softwares and other services to
their customers. Lastly, acquiring contracts by engaging with more and more people helps in
determining what to do and what not in business that may create problems for their organization.
Advantages:
There are benefits of it in accordance to expansion opportunities for business which help in
determining their growth in case. That are explained below ;
• Rise resources and assets- It helps in growing companies by their sources and stock that
increase their productivity of Giacom, from several ways by increasing their capability of
business (Stock, 2021).In happening this leads to build good infrastructure for their
expanded stock from which consumers attract towards their services.
• Provide more sales and profits for firm- By growing their business increases their
productivity and is able to gain more profits for firm in order to enhance their goods. That
raises their sales of products as they give them various new technologies as leading IT
companies towards expanding business.
• Develop new consumers- They create more customers towards their services by
developing their sectors in various areas that attract people in the company. By attaining
new clients helps in enhancing organization in different fields of criteria.
Disadvantages:
In growth of business some consequences are also there, that affect company in several ways
through changes as implicated in drastic ways. Such as defined below;
• Arise of scarcity in cost- By purchasing new tools and resources for enhancement of firm
may need more money for buying it (Wu and et.al, 2021.). In order to do so, collection
costs from different sources develop risk due to which shortage of money arises in their
business.
• Decrease customer- In order to expansion of company, quality of services is neglected
due to which declines their consumer and may create loss for organization because they
only focus on rising production from which quality is not evaluated in business.
• Fall of control- As a company expands, they have to perform different roles and
responsibilities , due to providing services in several areas. By which loss of control
arises in their workplace and they are not able to manage each thing.

Ansoff Matrix for growth of business
By applying this model in organization of Giacom helps in growing firm in several ways that are;
Market Penetration- In regards to organization, they use this to sell their products in existing
markets who are already in firm to increase sales of business (Abuba and Ukachukwu, 2021). It
helps in attracting new consumers towards their services as they are IT company who provide
services such as new technology, software driven in the market that gives benefits for them.
Market development- As company grow their business by establishing new sectors, this provides
a strategy in order to make their products effective in areas by expanding their channel of
distribution, determining new sectors of geography that helps Giacom towards increasing
development opportunities in workplace of market.
Product development- In context to business, this helps in developing products in a new creative
way which attracts customers towards their services by determining new technology that enhance
productivity in different sectors.
Diversification- It refers to analysing new products in new markets by getting out their services
in workplace in diversified manner. As this company may use this strategy in order to expand
their business to increase growth opportunities for their firm. This is also considered as most
problematic because it creates risk for organizations in several ways through their diversification.
Benefits of this model- There are several advantages of it that identify in business as they
provide different characteristics to enhance their business (Setti, Junior and Estorilio, 2021). That
are;
• This helps in determining problems that may arise in business by examining to retailer
from going in other areas. It analyzes issues which develop in their process of growing
their business.
• They are considered as most effective source for growth in order to expansion of
company by providing planning from this framework.
• It is simply to understand and develop strategies for business.
• Also, provides possible outcomes for growing their company in sectors or workplace that
they adapt.
Drawbacks - This also arises disadvantages for business in their process of growing a company
from several criteria (Stenkjær and et.al, 2021). These are;
• They create consequences due to not occurring of porter’s five forces model in their
possession of this framework.
• It assumes in an accurate way that creates risk for organization towards expansion of
business growth by not determining it in proper manner.
• This is only based on theory that may develop towards not reaching an understanding of

their framework in better ways and create issues for them.
Defining funding and factors that provide in small medium enterprise
Financing is referred to as the cost that is required in business for buying of tools, equipment and
other sources for which funding is required (Zhang and et.al, 2021). For execution of plan, tasks,
projects etc. in order to run company effectively and efficiently through earning profitability for
them. It is used for process of proper allocation of resources, fulfilling needs of organization in
several ways to lead their business and expand.
There are several ways for funding of business in SMEs company to collect from different
sources such as bank loans, business angels, working capital etc. From which collects funds for
as per their needs in business, There are some benefits and drawbacks of these factors that is
explained below;
Bank loan- It is taken from bank for a particular period of time and paid in interest, this is used
by organization in regards to above firm. They help by providing for a longer duration of time
that after growing business smoothly firm can easily pay loans that they get from bank. There are
several advantages of it for organization such as they provide as reliable in order to which they
do not want part of company . They give loans for their organization requirement and they paid
after having cost that they earn from expansion of business.Also, have consequences that when
collecting money from they, decide period in which organization have to pay to them if they fails
to paid the amount they have to bear some extra costs which leads towards decrease in their
productivity.
Business angels- Their advantages are as they provide a source for expansion in growth of
business in return of sharing entrepreneurship of company (Croce and et.al, 2021). They have
major drawback for organization, due to not providing on regular basis of investment in order to
make them which creates problems for small medium enterprises.
Working capital- This is called private integrity funding as they are used when establishing a
business in new sectors or areas.Their benefits are giving huge numbers of funds to business for
their expansion and from which they are able to increase their resources of organization. One of
major disadvantages of it is consider lengthy process to provide funding for business through
several steps that are to be followed in getting finance from them.
Explaining exit, succession and their benefits and drawbacks in business of small medium
Exit opinion is refers to as a procedure that follows business when they finds no relevance in
their organization because of facing many drawbacks in firm and occurring loss due to which
they are able to close their company.

Succession is defines as an option in which an organization sells their firm to other members of
family or relatives (Socrates and Gopalakrishna, 2021.). In order to do so they feel satisfaction
by giving their business to their close ones whom they can trust and takeover when they have
costs for that.
As owner of small medium enterprise they can do so different option for exit in business if they
occurring drawbacks and losses in their organization. Such as liquidation, mergers, acquisition
are some options that they may use for existing in their firm.
Liquidation- As it helps firm by removing their duties from ownership and directorship in
organization that develop benefits for them in order to so exit from business. In this owner may
find other work or start their new business in refreshing by ideas. This also has disadvantages
due to this organization not being able to use their present company name in the near future for
their new organization or for any other purpose which has major consequences for them.
Merger- It provides several benefits for organization in several ways such as gives them the
opportunity to earn profitability for their organization by researching and development of
company through creating new services for their firm. Also, consequences are arise due to
providing less selection of choices for consumers because of which they decrease customers for
organization and decrease their sustainability in market.
Acquisition- Due to already gaining sustainability and presence in market when they come with
new organization helps them by decreasing obstacles of customers. As they connect to already
existing consumers for their new launch of products in new company and also increase
productivity that develop benefits for them. There is a drawback also because when it comes
with new brand value that hurts their existing services and due to which customers not find
useful for them by using their services in an effective manner. As leading consequences for
organization in a prospective way.
So, as SME company they have to face challenges and also determine benefits in their business
through exit of organization for a reason.
Determining several terms and procedure
Business plan- It is defined as strategy that is made with purpose of achieving aims and
objectives of business in several ways such as by describing business targets, goals for
establishing company to earn profitability in organization (Koundouri and et.al, 2021.). In which
several things are to be considered like summary of company, process that is to be followed by
firm etc. From which company is able to achieve their goals in determining all factors of it.
SMART Analysis- It is an equipment that is used in business by giving clarity, aims and targets
towards which achieves goals and objectives of organization. This may also enhance ability in

order to reach a company's targets, goals and aims of organization by clearly defining their
proper agenda for analyzing as they stand for in business.
For designing a plan for organization includes various factors from which it is easy to run
business that are explained below;
Executive summary- This small medium enterprise is established with purpose of enhancing
their service in IT sectors through innovating new technologies in order to expand their business
in more productive ways (Anker and et.al, 2021). From doing these helps in enhancing business
through their applying of several benefits and drawbacks that occurring in organization by
Ansoff matrix, exit and succession option which helps organization and also arise consequences
for them in distinctive ways. As it contains aims of making these report in order to enhance
growth.
Company summary- Giacom provides services as cloud based to several company of information
technology that creates bases for SME in order to enhance their production across UK. They
fulfills needs and requirements of consumers in order to provide them better facility to reach
towards aims and objectives of organization to achieve their goals. Also, by which attracts
customers towards their services by giving them several things. As they hear the needs of
customers. It is situated in UK and leading in three different sectors such as telecoms, cloud
based and billing of it. For achieving their goals, main purpose is to lead as an upgradation of
technology for associates who are with them in business.
Products- They provide several types of goods or services like software, networks that are used
in technology and many others from which gives sustainability for expansion of business and
enhance productivity of their business. Due to services of products they attract new customers
towards their organization.
Market analysis summary- As company is focusing on customers towards satisfying them and
enhancing their products under which market segmentation is there in which they target and aim
on different sectors of business. Towards which helps in growing their business in a productive
manner (Owusu and Alhassan, 2021.). Developing several plans for expanding business and
reach to attaining levels of it. Then comes trends of market as technology changes everyday in
day to day life, so they change according to takes place in environment by innovating their
technology in an effective manner. By doing these helps in growing business from which earns
profitability of business in different sectors by recognizing all factors of there. In these identified
requirements of customers, competitors that may create problems for them by decreasing their
sustainability growth in market or workplace.
Strategy and Implementation- In company by applying several strategies and implemented in
correct order towards which helps in maintaining smooth functioning of business in better ways
which provides Giacom to achieve their aims and objectives by proper implementation of plans

in organization.
Management summary - It is same as an executive summary that covers agenda of making an
organization more productive because of employees who put efforts in business. By leading and
providing new technologies to their customers and different sectors. Also, leads to build growth
opportunities in business.
Financial plan- In this strategy is made related to which describing all factors such as making
budget that is required in organization, cost, funds etc (Forsyth, 2021). from which helps in
maintaining flow of business and by proper estimation they lead to achieve objectives of
organization.
CONCLUSION
This report has been comprising of opportunities of growth in order to increase their business.
Also, apply models of Ansoff matrix to enhance business growth by providing different
opportunities in their company. In these has been included several sources of funds from which
organization collects for their firm in order to collect or purchase resources for their company. It
will also justify options of exit and succession in business that has been occurred due to facing
losses in business. Lastly, designing a plan for company to proper estimate the company in order
to achieve goals and aims of organization.

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