Planning for Growth: Evaluating Opportunities, Ansoff's Matrix, and Funding Sources

This report discusses the key considerations for evaluating growth opportunities, including the use of the BCG matrix. It also explores growth opportunities through Ansoff's growth matrix and discusses potential sources of funding for business. The report provides insights into different funding options and their benefits and drawbacks. The strategies and funding options discussed in the report can help businesses plan for growth and achieve their goals.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1: Key considerations for evaluating growth opportunities.......................................................3
P2: Growth opportunities through Ansoff's growth matrix.........................................................5
P3: The potential sources of funding business.............................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Growth is one the main factor which organization have to achieve because through this it
can achieve high customer count which will provide high profit margin. Quality solutions is the
London based training and consulting provider which provide effective training to its customers.
Analysis of key consideration for growth opportunities is done in this report with the proper
evaluation of growth opportunities with the help of Ansoff's matrix is done in this report.
Evaluation of potential sources for funding is also analysis in the report with effective analysis of
different benefits and drawbacks for various sources.
MAIN BODY
P1: Key considerations for evaluating growth opportunities
It is very important for organizations to grow themselves in such a way that they are able
to increase their customer count by which high profit margin is achieved. Thus BCG or Boston
Consulting Group (BCG) matrix was developed in the year 1968 which is used to identify the
portfolio of the company which will help it to develop its investment plans for long term period
(Scriba, Netea and Ginsberg, 2020). The matrix is having four quadrants which are used to
identify the growth opportunities for company in long terms. Thus in order to identify the growth
opportunities Quality solutions has to analyse the growth rate of its products and services in
terms of relative market share. Through this company will be able to segregate between the
services which are providing competitive advantage and which are not. Once the company is
able to segregate between the type of services then these can be categorized in four different
quadrants which are as following.
Source: Martin, M., 2020
Illustration 1:
BCG Martix

Dogs-
This segment showcases the sector of the company which is having low growth and low
market share because of which company can reduce its investments in this segments of activities.
This is important because dogs are considered as cash traps because they are having
comparatively low growth and also have high amount of cash requirements because of which
company may have to face deadlock in its cash investments. Thus these business units are
considered as the prime candidates for divestitures (Kates and et.al, 2020). These it is
recommended to Quality Solutions that it must develop a organizational structure in such a way
that it is able remove the units which are considered in this dog segment by which it can reduce
its expenditures.
Question Marks-
The business units which fall in this quadrant are having high business growth but have
limited market share because of which they are having high amount of cash requirements and
also have fewer returns. Thus Quality Solutions have to make sure that it develop a
organizational structure in such a way that it is able to convert the business units which fall into
question mark in such a way that they are able to utilize their high growth in such a way that cash
requirements can be reduced and also high returns can be achieved, or convert these into stars.
Stars-
These are business units which are having high level of market share and also generate
high amount of cash as well due to which company is able to increase the probability of goal
achievement and also is able to achieve high level of returns from the investments. Thus
company has to invest in stars by which it can have high growth rates and but stars require large
amount of cash requirements and also it is having customer attraction because monopolies and
new-to-market because of which company has to make sure that stars are having high sales
otherwise they may turn into cash cows (Kilpeläinen and et.al, 2018).
Cash Cows-
These are the market leaders of the company which are able to generate high amount of
cash in return as compared to its consumption, cash cows contains business units which are
having high market share but have low growth prospects. Due to high returns cash cows provide
the capital requirements for the company which will provide effective funding to convert
question marks into stars. With that since cash cows are the market leaders due to which it

provide effective funding for organizational activities like research, corporate debts and also pay
dividends to shareholders. Through this Quality solutions can achieve its organizational goals
and improve its working in front of customers by which high returns can be achieved.
P2: Growth opportunities through Ansoff's growth matrix
Ansoff matrix is an strategic planning tool which is used by organizations to identify their
product and market potential in such a way that company is able to achieve high level of
profitability. Ansoff matrix and BCG matrix are two theories which are having a lot of
similarities but the main difference between the two is that BCG matrix provide companies a
guide that which product or services has to be provided more attention and investment
(Chintalapati, 2020). Whereas Ansoff matrix focuses on the growth and risks associated with
each one. Following is the Ansoff matrix for evaluating the growth opportunities for Quality
solutions.
Source: CFI, 2020
Market development-
Market is the name given to business strategy in which business tend to increase its
geographic reach in new market with existing products because of which it is able to increase its
customer count (Suciati, Kurniawan and Iswahyudin, 2020). This strategy will be beneficial for
I
llustration 2: Ansoff Growth Matrix

Quality Solutions because due to the events of Brexit in which UK's decision of leaving EU has
forced organizations to pay taxes in the areas which were freely available before Brexit.
Therefore company must increase its apprentices in other locations because through this
company will be able to increase its brand awareness and since customers are somehow aware of
company's performance in other areas because of which risk of failure reduces and high chances
of profitability can be achieved.
Diversification-
This stage arises when company tend to enter into new market with new product because
of which chances of failure is very high because customers are not aware of company and its
products because of which organizational sales are also reduced (Nugraha, Putri and Suprihanto,
2018). Quality solutions may use this this stage and tend to increase their engagement in other
fields as well by which company can increase its engagement in other market share as well by
which company will be able to attract wide range of customers towards the organization and by
which profit margin can be increased. This is necessary for company because due to events of
Brexit the customer count of the organization is reduced and due to which customer count has
reduced and therefore in order to maintain its strong economical background company has to
provide new and rare products to new targetted customers.
Market Penetration-
When company provide existing products to existing customers then it is called as market
penetration. Less amount of risk is associated in this because customers are well aware of
company's working capabilities and company is also aware of customer requirements because of
which high level of trust can be seen in this case. Thus it is necessary for Quality Solutions that it
continue to provide its services to customer because through this company can maintain its brand
awareness and maintain customer's engagement with the company by which chances of brand
switching can be reduced.
Product Development-
In this company tend to provide new products to existing customers because through this
company will be able to maintain customer's engagement with the organization. Thus through
this company can also increase the chances of attracting new customers from existing market
towards the organization by which organizational sales can be increased (Abdurakhmanova and
Rustamov, 2020). Therefore Quality Solutions has to make sure that less amount of risk is

associated in this, therefore company can try this for evaluating new product's performance
before implementing this in new market. Through this company can evaluate the effectiveness of
new products and also at the same time maintain customer engagement.
P3: The potential sources of funding business
There are numerous number of funds available for developing business. It is most important to
know about different types of funding and here are some of them:
Small business administration loan- This is dedicated to government management which help
small business for developing them. It obtains capital, but might be acted to guarantor on loans
for small business (Pakhnenko, 2019). As they are developed through education, training and
advertising along with ensures government contracts and support for small business. This might
help Quality solution for develop them from many aspects and while by taking business loan
they can easily help their company for competition in market.
Benefits- Make proper use of SBA for increasing chances for receiving bank loans. It helps to
improve relationship between local borrowers and lenders.
Drawbacks- They have strictly mandatory guidelines for SBA loans as they look previous data
before providing loan and some young company could not often.
Angel investors- These investors who provided fund on the basis of financing exchange for
share of equity in Quality solutions. As they often time works for organization teams and invest
with each other or might be invested on their own for more benefits. Angel investor in Quality
solution are more serious than compare to other types of friends, family etc. as they usually less
serious than other business.
Benefits- In Quality solution they have angel investor with more experience and helpful in giving
guidance along with instruction. As they are more flexible in business with some common
agreements.
Drawbacks- Angel investor have forced to take some shares of company, due to this there might
be high risk and have less follow up for investing (Kabakchieva, 2020).
Friends and family- Potential sourcing funding might be available from friends and family for
setting up business. This investment plays important role because in these loans are based on
personal relationship and have accurate understanding of business plan. In Quality solution for
developing their existing business they can take loans from their well-known with more benefits.
As company have best parts to obtain loans rather than other source of funding.

Benefits- Funds for Quality solutions available quickly due to having better relationship.
Potential survive for mutual curious in business to bring their loves one closer. In company
friends and family's loans are flexible and have numerous number of equity and pay methods
(Gui and Adriansyah, 2017).
Drawbacks- There might be some conflicts with their personal relationship and highly have
modest ability to appraise potential for Quality solution business, they attend to give proposal
because of their monetary shares in company. They normally convey nothing more to capitalist
likewise their first assets.
Venture capital funding- These funding is successful key for business. For Quality solutions
venture capital are investor who are inclined to put guardant a sizeable sum of wealth in
transaction for interest of company, but also their currency once get concern either that assume
by different institution or goes at national monetary fund. In company this funding as
professional investors which are all about money. They look for normal investment as they
provide different percentage of return on investment.
Benefits- Being taken sourcing from these funding they brought instant capital for company and
have vast networking of individuals including partners or future investor. It might be play
important role for Quality solution for developing their business and invest large sum of money
at once which provide expertise along with other resistance that helpful for company in growing
their business skills.
Drawbacks- Venture capital will take more about money and try to take important steps to see
return on investment along with some other company. They do not provide clearly direction to
Quality solution for their business and have no experienced of investment.
CONCLUSION
From the analysis in this report it can be concluded that in order to increase the chances
of goal achievement organizations have to increase their geographic reach by which it can
maintain customer engagement with the company and also achieve high brand awareness. But
company has to evaluate its product portfolio and market potential by which it can reduce the
chances of failure and effective marketing strategy can be develop.

REFERENCES
Books and journals
Scriba, T.J., Netea, M.G. and Ginsberg, A.M., 2020, December. Key recent advances in TB
vaccine development and understanding of protective immune responses against
Mycobacterium tuberculosis. In Seminars in Immunology (p. 101431). Academic Press.
Kates, M. and et.al, 2020. Adaptive immune resistance to intravesical BCG in non–muscle
invasive bladder cancer: Implications for prospective BCG-unresponsive trials. Clinical
Cancer Research. 26(4). pp.882-891.
Kilpeläinen, A. and et.al, 2018. Advances and challenges in recombinant Mycobacterium bovis
BCG-based HIV vaccine development: lessons learned. Expert Review of
Vaccines. 17(11). pp.1005-1020.
Chintalapati, S., 2020. BankBuddy. ai—Business Expansion and Marketing Dilemma: A Case
Study to Discuss the Ansoff Growth Matrix Concepts Combined with Business
Expansion Strategies for Expanding into Emerging Markets. Emerging Economies
Cases Journal. 2(1). pp.44-53.
Suciati, T.R., Kurniawan, D. and Iswahyudin, M.D., 2020. SWOT Analysis and Ansoff Matrix in
Creative Food Industry Business Development: A Study on Creative Food Business
“Komala”. Open Access Indonesia Journal of Social Sciences, 3(2), pp.69-76.
Nugraha, B.S., Putri, L.P. and Suprihanto, J., 2018. Krayan Heart of Borneo: Indonesian
Potential Tourism Destination Enjoyed by Malaysia. KnE Social Sciences. pp.118-129.
Abdurakhmanova, G. and Rustamov, D., 2020. VENTURE INVESTMENT ENVIRONMENT
IN DIFFERENT COUNTRIES ANALYSIS OF VENTURE BUSINESS IN
UZBEKISTAN. Архив научных исследований, (21).
Pakhnenko, O.M., 2019. Alternative sources of funding for innovative activities of business
entities. Przeworsk: WSSG.
Kabakchieva, T., 2020. Sources of Funding and Financing Opportunities for Agricultural
Business. Izvestia Journal of the Union of Scientists-Varna. Economic Sciences
Series. 9(3). pp.72-79.
Gui, A. and Adriansyah, I., 2017, December. Business Model for e-Funding in Creative
Industries. In Proceedings of the 2017 International Conference on Information
Technology (pp. 441-445).
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Online
Martin, M., What is BCG Matrix, 2020 [Online]. Available through:
<https://www.businessnewsdaily.com/5693-bcg-matrix.html>
CFI, Ansoff Matrix, 2020 [Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>
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