Planning for Business Growth INTRODUCTION: A Case Study of Allied Worldwide Ltd
24 Pages5546 Words306 Views
Added on 2020-10-22
About This Document
1 P1 Providing key considerations of company while evaluating growth opportunities There are various considerations which are used by a SME so that it may be able to initiate healthy growth in the best possible manner. The opportunities for growth is needed for Allied Worldwide Ltd, which is engaged in providing IT solutions to clients and will be helpful for garnering profits by enhancing its market share which is the ultimate goal. Competitive benefits- The organisation is required to be efficient in providing services to customers so that they may be able to
Planning for Business Growth INTRODUCTION: A Case Study of Allied Worldwide Ltd
Added on 2020-10-22
ShareRelated Documents
Planning for Growth
INTRODUCTIONPlanning for business growth is required so that SME can achieve desired growth andobjectives. Present report deals with Allied Worldwide Ltd providing IT services to customersand enhancing level of satisfaction. Key considerations for growth opportunities are discussed.Furthermore, Ansoff's growth vector matrix is devised. Sources of finance along with merits anddemerits are discussed. Business plan is prepared for the future course of activities. Successionoptions and there benefits and drawbacks are discussed. Thus, overall growth of business can bemaximized and expansion may be obtained in effective way. P1 Providing key considerations of company while evaluating growth opportunitiesThere are various considerations which are used by a SME so that it may be able toinitiate healthy growth in the best possible manner. It is essentially required for the growth of acompany that may not be hampered and it can easily achieve desired objectives quite effectively.The opportunities for growth is needed for Allied Worldwide Ltd, which is engaged in providingIT solutions to clients and will be helpful for garnering profits by enhancing its market sharewhich is the ultimate goal. Key considerations are listed below-1. Competitive benefits-The organisation is required to be efficient in providing services to customers so that theymay be able to satisfy and enhance level of satisfaction up to a great extent (Chaston, 2015).Competencies are part of the businesses and it is needed that Allied Worldwide Ltd paves itsown way by attaining customers in effectual manner. Competencies in context means thatmodern IT services are provided by it and as such, for having competitive advantage,organisation requires implementing production skills so that firm may attain more market share.This is required by providing quality services to clients and thus, competitive benefits can begained quite effectually. For achieving this, cost of operations can be alleviated with the help ofimparting better IT services and outreach competitors with ease. 2. Enhancing products and services-Technological advancement is an integral part of an organisation by which it may be ableto enhance its product portfolio (Alviniussen and Jankensgard, 2015). This eventually helps toattain competitive advantages. Allied Worldwide Ltd can easily taste success by enlargingservices portfolio and thus, rivals can be outreached and customers may be benefited in the best1
possible manner. New services are required to be provided so that business may be effectivelyachieving growth and eventually accomplish desired objectives. 3. Collaborating with other firm-Collaboration is another useful consideration by which a firm can accomplish growth and profitscan be effectively multiplied. This will be helpful for Allied Worldwide Ltd as it can mergewith another IT solutions provider and thus it may attain desired profits as strength of employeeswill get doubled. It is useful for SME as availability of finance is limited which restricts it toexpand its operations in the best possible way. Hence, with the help of collaborating with goodprofitable firm, growth expansion may be accomplished without any difficulty and thus, profitscan be maximized with ease (De Sousa, 2017). 4. Growth Options-There are numerous options by which an organisation can achieve growth in effectivemanner. Since, a firm engaged in IT field has various digital media platforms that can be usefulfor garnering attention of customers. It can be attained by offering discount on services by whichthey may attract and sales are enhanced in a better way. Furthermore, quality of services shouldbe effective so that clients may be satisfied and profits are enlarged in effectual manner.Forecasting for further expansion of operations can be achieved by the business and thus, healthygrowth is accomplished with the help of such options. Porters Generic Strategy ModelThere are four strategies involved in Porters Generic Strategy Model which can beimplemented by organisation. They are stated below-Cost leadership-This strategy enables Allied Worldwide Ltd to quote lower prices so as to attainleadership in market in form of more customer base. This will help company to achievecompetencies such as economies of scale and good amount of sales revenue. However, profitswould be low in short-run but will be helpful for organisation in long-run as customers base willincrease.Cost focus-2
Similar products are prevailing in the marketplace where company can make availablethe same at lower prices in order to grab share. It is generally done in small market segments soas to attain low-cost advantage.Differentiation focus-Here, also similar products are prevailing but through this strategy, organisation aims todifferentiate its services within smaller market segments which helps it to accomplish increasedprofits as customers get attracted to firm and financial performance also maximises with ease.Differentiation leadership-It is adopted by company with the aim to target larger markets and to achieve competitiveadvantage through differentiating services and products across whole industry. In it, usually,premium prices are charged as products are much reliable, durable and of premium quality whichincreases customer satisfaction up to high extent.From all above mention points, Allied Worldwide Ltd uses porter's generic method forevaluating growth because it is used to determine the competition advantages in a market. In thisporter’s generic strategy, cost leadership is mostly used because it will be used to quote less priceof products which will lead to increment in sales and furthermore, helpful for analysingprofitability of organisation is effective or not. While, PESTLE analysis is done for assessingexternal environment so that shortcomings can be overcame. PESTLE Analysis (External environment influence)Political Factor:Sudden change in tax rate of corporate tax applicable by taxation authority of UKdecrease the profit of company.Sudden change in government laws in IT services industry such as IR35 legislation alsoaffect the rate of product of Allied Worldwide company.Economical Factor:Inflation rate also affect the sales of a company.Social Factor :3
Sudden change in customers behaviour will affect the sales of Allied Worldwide.Company should always use different IT products in order to attract number ofcustomers.Technological Factor: Allied company uses all the latest new technologies such as Javascript, HTML and XMLin their company because it deals with IT field.Almost more than half of the people depends on latest technologies.Legal Factor:Company follows all the legal laws such as discrimination law, Equality law etc. This isaffecting organisation as it has to follow all norms and ignorance of the same may lendcompany into difficulties mainly discriminating employees on gender basis.Environmental Factors:The company always focus on sustainability factors which is considered the biggestenvironmental factor such as Green IT practices so that no wastage may be dumped insurroundings affecting environment.There are various opportunities which exists on the basis of Pestle such as real-time datais basically an important technological advancement which may have positive influence oncompany. Green practices of IT will have competitive advantage to Allied Worldwide Ltd as itmay reduce wastage and environment could be kept clean. Furthermore, it will be able toconduct proper practices having competitive advantages over rivals. Moreover, through costleadership option, it can easily expand into Europe, Germany as demand of business services arebeing increased in these nations. Cost leadership is appropriate on the basis of PESTLE analysis made which provides thatit will quote less price of IT business services and will be able to attain higher customer's base.Thus, by using this growth option, it may accomplish business goals. The rationale behind thechoosing cost leadership is that company is an SME and competition is fierce, implementingsuch strategy, it will grab customer's attention and thus, profits will be maximised leading tobetter financial performance. 4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
(Doc) Planning for Growth - Assignmentlg...
|15
|4743
|76
(Solution) Planning for Growth Opportunities- Assignmentlg...
|18
|4542
|78
UNIT 42 Planning for Growth : Assignmentlg...
|18
|3993
|204
Financial & Economic Literacy for Managers Reportlg...
|11
|3304
|75
Unit 42 Planning for Growth - Doclg...
|15
|3690
|368
UNIT 28 Launching a New Venture Assignment - Adorable Hotellg...
|16
|4579
|350