Growth Opportunities for RGB Communication: An Analysis

This report analyzes the growth opportunities for RGB Communication, a UK-based audio visual and technical distributor. It covers key considerations for growth, opportunities through Ansoff's growth vector matrix, potential sources of funding, and a business plan for growth. The report also includes a discussion on succession and exit options for small businesses.

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Table of Contents
INTRODUCTION...........................................................................................................................1
Key considerations for examine growth opportunities within the organisational context.....1
Opportunities for growth through applying Ansoff's growth vector matrix..........................4
Potential source of funding and their availability in business, along with discussion of
drawbacks or benefits of each source.....................................................................................6
Business plan for growth........................................................................................................7
Succession and exit options for small business with their drawbacks and benefits.............11
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Planning is one of the most important factor of every business which is made by people
to achieve organisational goals. With the help of planning business can enhance their overall
sales and revenue in a suitable way. As with this, it will supports to think about new tools and
techniques which is applicable on business for better success in future. Apart from this it is the
method of developing strategies or plans which helps business to enhance their position at
marketplace (Beatley, 2014). Wherein, SME's plays very essential role for developing better
ways of economy conditions within the country. For this effective planning helps to SME's in
order to gain overall market share effectively. The present report is based on RGB
communication which is a audio visual and technical distributor that has responsibility to
represent their overall manufacturing functions in front of people. In order to give presentation
they displays various things like meeting room signage, connectivity with technical items,
controllable database, video conferencing and so on. All these services given by this company
within the UK. Furthermore, discussion will be based on analysis of growth opportunities with
the Ansoff's model. Along with there are so many sources of funds by which business plan has
been developed with different exit and succession options will get covered.
Key considerations for examine growth opportunities within the organisational context.
Growth is the constant aspect that are linked with the business management as it is liable
for the support for making sure the sustainability in field of market for longer period of time. In
reference with RGB communication, they always used audio and visual services in order to
expansion of business across the globe. Along with this, firms always used different kinds of
communication network for employees by which they can communicate to people within the
organisation and outside the organisation (Barbour and Deakin, 2012). As respective firm having
good market presence within the UK so that they have chance to expand its business within the
geographical area. Therefore, it is essential for managers of this company to make better services
or plan of action to meet overall objectives easily.
Competitive Advantages: These advantages refer to the overall situation of business
which is liable for increasing firm's production. In reference with RGB communication firm, that
is responsible for developing effective tools and strategies to gain competitive advantages. There
are some key elements, those are given below:
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 Capabilities: In this element respective firm has ability to supply innovative and unique
services with affordable price to the large number of customers.
 Core competencies: As per this company has better quality of products by which they
can give satisfaction to customers to gain competitive advantages (Denton, Forsyth and
MacLennan, 2017) .
 Resources: As this company have higher skilled or experienced employees so that they
are liable to offer effective services.
Therefore, it is necessary for RGB communication to follow all these advantages by
which they can easily expand their business. Additionally, by having competitive advantages this
respective brand can easily facilitate actual services for customers like docking stations, security
cameras, media servers and so on. Therefore, all these resources are taken by RGB
communication that also includes in different terms like human resources, online medium and
unique technologies or financial resources. On the basis of this company can easily achieve their
goals or objectives. In order to better understanding of this topic Porter's Generic strategies and
PESTLE analysis are mentioned below:
Porter's Generic Strategy
It refers to the particular frameworks that shows the different tools and strategies which is
being utilised by the companies in order to gain competitive market. With the help of unique
strategies they can have appropriate knowledge by which they can get higher profits. This
generic strategy includes in four strategies that supports overall organisation (Chapin, 2012).
With the help of this they can expand their business in geographical areas and able to gain
opportunities of growth. All four strategies are explained below:
Cost leadership: It refers to the growth strategy which is mainly associated with the
overall quality of firm's services which is given by the organisation. In order to opt this strategy
RGB Communication can make effective cost advantages to give better satisfaction for
customers. By having this strategy leaders can make appropriate cost strategies within the
specific time frame.
Differentiation: As per this strategy respective company can get appropriate advantages
within the market by making innovative products for consumers. With the help of better quality
of products this situation can develop effective relation in between customer or firm (Grover,
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Bokalo and Greenway, 2014). In relation with RGB Communication, they are offering large
number of services to customers. It helps them to increase their overall brand image in front of
people and also increase market share of an organisation.
Cost focus: According to this organisations mainly concentrates on the niche markets
and provide various products and services at lower price within the rural areas. In which RGB
Communication fulfil customer's needs and demand in a perfect way.
Differentiation focus: According to this organisation can easily concentrates on their
working environment within the appropriate place. Wherein, RGB Communication acquire
various tools and techniques for their overall business system. On the basis of this they can
differentiate their goods and services form others and provide better goods and services for
customers.
Therefore, these strategies are an essential term for RGB Communication in respect to
gain competitive advantages in an efficient way. On the basis of this they can aid different plans
or strategies to make unique goods and services. For this management of this firm is needed
several techniques for increasing their business in an effective manner.
PESTLE Analysis:
It is the process of strategic tools and techniques which is mainly utilised by firms for
gaining knowledge related to internal or external factors of business. In relations with RGB
Communication, they are following some factors, given below:
Political factor: It is an important factor which is based based on government within the
process of analysing different activities related to environment, taxation and so on (Galland,
2012). In UK there are so many opportunities for RGB Communication by which they can
expand their business in another country following differentiate rules and regulation related to
government.
Economical factor: According to this factor there are various components like inflation,
foreign exchange rates, interest rate etc. In context with UK economy, they are very strong by
which small businesses can easily increase overall growth of their business. In reference with
RGB Communication economic factors are much essential to grow its business. For betterment
of future this respective company should deals in various products such as racks, projectors,
speakers etc. on the basis of this they can fulfil customer's requirements in an effective manner
(Levy, 2016).
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Social factor: This factor is based on the life style and current trends within the
appropriate country by which companies can deliver their goods and services easily. In context
with RGB Communication they are applying advancement of culture in their work to satisfy
consumer's desire and wants. With the help of this they can enhance their overall profits and
growth in an appropriate manner.
Technological factor: Technology advancement is rapidly growing within the firm and
enhance business opportunities. In context with RGB Communication, with the help of advance
technology they can make their online presence to increase overall growth of firm. It also
increases customer's satisfaction towards the organisation. By this company able to enhance their
productivity.
Opportunities for growth through applying Ansoff's growth vector matrix.
This matrix is given by H. Igor Ansoff who is responsible to given proper guidelines for
executives or managers during the designing the overall strategies of an organisation by which
business can increase their growth. RGB Communication is using this matrix in order to develop
unique strategies. This matrix briefly explained below:
(Source: Ansoff Matrix, 2019)
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Illustration 1: Ansoff Matrix

Market Penetration: It is the process of successfully selling a goods and services within
the appropriate market. It is evaluated by the overall amount of sales volume of existing product
or services as compare to targeted market for that goods and services. As per this market
penetration is the key element for a particular business by which firms can enhance their overall
growth strategy with the help of Ansoff Matrix. In context with RGB Communication, as they
are dealing in technological sector, so that they have chances to grow properly (Hollenbeck, Noe
and Gerhart, 2018). On the basis of this they can increase their profit in a perfect manner.
Therefore, RGB Communication wants to influence customers in a positive way by giving them
better quality of goods and services.
Product development: According to this strategy, every business require to bring unique
goods and services for expansion of business. In reference with RGB Communication, in order to
development of product they are looking forward by adding some new and unique features
within the goods. Along with this by having this types of uniqueness they can better results in
future. Apart from this they can create customers awareness towards the products in a proper
manner. This helps company to enhance their overall productivity.
Market development: In the current scenario business firms rapid increasingly by
offering various goods and services in different areas. As per this organisations can increase their
business and attract customers easily. In relation with RGB Communication this has been
analysed that the owner of an organisation always used appropriate tools and techniques to reach
new customers in an effective way. It will improves the overall sales of an organisation, by this
they can meet business goals by increasing overall profitability appropriately.
Diversification: It is not an effective strategy for RGB Communication as that executes
on the new planning like introduction of mew product and services in an effective manner.
Therefore, in this strategy company is not able opting new strategies for diversification growth
so that they required to invest fund at higher level to overcome failure chances.
According to the above growth strategies, it has been concluded that market development
is the better option RGB Communication to grab overall marketing opportunities and able to
increase profits and sales.
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Potential source of funding and their availability in business, along with discussion of drawbacks
or benefits of each source.
In order to achieve business growth, business always based on the huge sources of fund,
that's why it is necessary to ensures that people is generally available to deliver different kinds of
options within the particular time frame (Mitchelmore and Rowley, 2013). Wherein, sources of
funds have wide concept in relation with business to accomplished goals. Whenever firms
looking for planning for growth than it is necessary for them to make appropriate strategies for
betterment of future. On the basis of this they can develop organisational cash flows to provide
effective liquidity levels in a perfect way. In context with RGB Communication, they have
purpose to make unique strategies to staying long times at marketplace. For this there are few
options, those are given below:
Bank loan: It termed to the financial structure through which loan can be followed by the
the financial section or orientation. In terms to it medium sized management require overdraft
that can be refer on existing account.
Merit: It is highly flexible in aspects due to the people who do not need to face any sort
of problems from bank. As it might not suitably effective for RGB Communication to modify
their sum of money that are borrowed in an effective time limits.
Demerit: In this large assets it is require with the overdrafts and flexible aspects of loans
that might be turn in the slow development of the management.
Overdraft: It termed to the extension of credit form of a leading institution which is
applicable when account balance is zero. Overdraft always allowed the overall account holder in
order to continue money withdrawing at that time accounts has no funds.
Crowdfunding: It termed to the global exercises of funding a project and undertaking by
the maximising small number of money from the higher term of people. Hence, it is the form of
crowdsourcing or lots of option of finance.
According to the above analysation it has been observed that RGB Communication
dealing in hardware along with it is operating various services within the UK. In order to expand
overall business they needs various terms like venture financials, bank loans, overdrafts and lots
of funding sources (Moseley, 2013). On the basis of this they can opt various strategies or
techniques in order to gain appropriate goals and objectives. Apart from this they can maintain
their overall functions of liquidity on the day to day basis. Therefore, all these terms are much
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essential for this respective business industry. By having this types of loans system they can
easily expand their business to achieve targeted goals.
Business plan for growth.
Business plan always shows in the form of written document which is usually developed
by the overall management team of an organisation. It is generally prepared for business growth
or development that includes in various steps. Business plan for development has responsibility
to make few changes within the organisation and giving some instructions to employees. On the
basis of this any business can show their overall effective functions within the perfect manner. In
regards with RGB Communication, it has been observed that this respective organisation have
lots of factors by which they can increase overall performance of business. In order to better
understating there are few key elements of business plan, those are given below:
Executive summary: In reference to the RGB Communication which is UK company and
deals in diverse products. Along with this they also consist various technologies or services by
which they can expand their business at higher level across the globe (Pred, 2017).
Vision: According to RGB Communication, they have purpose to make heir employees
best within the organisation, along with always coordinated between team members in an
effective manner. Wherein, hardware is very important aspects in which people are responsible
to take take their appropriate decision in regards with future betterment.
Mission: As per this RGB Communication provide different kinds of better quality
products in order to satisfy customers in a perfect way. With the help of this mission company
can get their desirable results appropriately.
Values: Within the RGB Communication management team depends upon the
transparency by which employees behave positively in an organisation, along with they always
ready to helps other team members by having transparency in an effective manner.
SMART Objectives: “To analyse overall sales performance of RGB Communication
which is around 20% across the globe and becoming one of the best organisation by social
media.”
Financial information: This is very much important information for every business in
order to gain knowledge about current scenario in regards with finance (Todes, 2012). Wherein,
RGB Communication required lots of fund to invest in diverse nations. For this they are needed
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to have sufficient funds like £25000 for investing and £200000 for expanding their business
around the world. With the help of this they can increase overall value of firm. Apart from this
bank loans are much important method to expansion of business within the UK.
Situational Analysis: This is always shows by the SWOT analysis, which is briefly
explain below:
STRENGTHS WEAKNESSES
 They are always giving effective
working culture to employees or
dealers as well.
 RGB Communication have potential
customers basis.
 They have employees with high
knowledge and skills to achieve their
goals.
 Sometimes company is not able to fulfil
consumers demand so that it negatively
impact on them.
 RGB Communication is not able to face
any challenges during the new entry
within the marketplace.
 Limited flexibility in costing method.
OPPORTUNITIES THREATS
 With the help of higher technology they
can expand their business in digital
marketing world (Schetke, Haase and
Kötter, 2012).
 By having proper knowledge or
information respective organization can
launch their new hardware concept in
market.
 In market each and every firm using
higher technical skills so that it can be a
threat of this respective organization.
 Modifications in company can
negatively influence business functions.
Formulation of budget: In the budgeting method for RGB Communication is developed
and explained below:
Pre launching cash budget for six months, which has been specified below:
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'Post launching cash budget
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From the above representative budget it has been specified that cash statement flow
within the RGB Communication, they are preparing overall tax payments from every year so the
value of hand cash can be increased easily (Ward, 2016).
Succession and exit options for small business with their drawbacks and benefits.
As per this it has been analysed that business environment termed to the global success of
growing new managerial actions. In the current, context such sort of management are flexible in
aspects and capable to accomplish suitable targets with the long sustainability in the field of
market. As per to the firms that can maintain their task and also concentrates on the candidates
performance. As each and every management has 2 types of option like exit and succession
strategies. As the exit succession strategy termed to the growth and identity of leaders who can
take duty to reach their suitable targets as effectively (Porter's Generic Strategies. 2018). As
with exit strategy is the plan that are executed by the managerial owners, trader or investor,
venture capitalist in respect to meet financial criteria towards the management. There are diverse
sort of the systems or techniques that are linked by RGB Communication for holding succession
strategies system, that are as follows -
Acquisition & Merger: During the period or arising some proceeding as with cases that
can be combine together for progression of business. For this situation it can be applied in
respect to take control for gaining advancement of future.
Advantage: It supports the business to accomplish their suitable targets in respect to gain
higher productivity or profitability in the field of the marketplace.
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Disadvantage: As per this experienced people can take place of leadership within the
marketplace.
Integration: In this concept there are total social unit of internal or external factors to
accomplish efficient targets in the management.
Advantage: It supports the business to enhance their global marketing share by having
high consumer base.
Disadvantage: It can be the drawback for financing huge number that leads diverse
things by carrying out so many management.
Now it has been analysed that all these strategies are the good process of various assets
together with drawbacks. So that in reference with RGB Communication they can use acquisition
or merger to increase their business within the globe. As per to the manner to accomplish their
targets that are capable to maximise the global term of the productivity. Hence, integration will
maximise the managerial productivity or profitability (Valler, Phelps and Wood, 2012). As with
by having sort of sources they can get time consuming procedure as effectively.
CONCLUSION
From the above representative report it has been analysed that planning is one of the
appropriate process for business as it develops different kind of activities to increase market
growth of an organization. Additionally, development of effective performance and plans helps
business to gain positive outcomes successfully. In order to meet organisational goals and
objectives firms are needed to have appropriate knowledgeable and informations by using
PESTLE & Porter's generic strategies. With the help of this firms can achieve their objectives
appropriately. Along with this there are various diverse sources like bank loan, crowdfunding
and so on by which they can manage their overall business operations. Wherein, business plan is
an essential aspect which carrying overall expansion of business operations at marketplace.
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REFERENCE
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