Planning for growth Assignment Softwire Ltd
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Added on 2020-07-22
Planning for growth Assignment Softwire Ltd
Added on 2020-07-22
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Planning for growth
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Key considerations for evaluations of growth opportunities and justification..................1P2 Opportunities for growth applying Ansoff's matrix for Softwire......................................3TASK 2............................................................................................................................................5P3 Potential sources of funding available to business along with their benefits and drawbacks.................................................................................................................................................5TASK 3............................................................................................................................................7P4 Business plan for growth including financial information and strategic objectives.........7TASK 4............................................................................................................................................9P5 Exist or succession options for small business determining the merits and drawbacks.. .9CONCLUSION.............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONPlanning for growth is analysed as strategic business activity which provides an ability tothe business owners to make plan and track the organic growth in their business revenues. Itmainly provides the businesses to allocate their limited resources towards a centred effort inorder to adapt to changes within industry driven disruption and make differentiation from marketrivals (Eddleston and et.al., 2013). Strategies and tactics which are included by owners in theirgrowth plan concentrates on the hey business driver of revenue generation. Present report isbased on evaluation impact of digital technology supporting small business growth andinnovation. For conducting research, Softwire Ltd is selected that delivers bespoke softwareengineering, digital design solutions and consultancy services to some top most UK brands.Company was formed in year 2000, present company has grown to 130 employees and turnoverof around 13 million. In this report, there are some key consideration for evaluation of growthopportunities for Softwire are discussed along with the valid justification. Further, variouspotential sources of finance available for the organisation are also determined along with theirmerits and drawbacks. TASK 1P1 Key considerations for evaluations of growth opportunities and justification.In order to make successful plans for achievement of growth in business, organizationneeds to identify various important business opportunities available for organisation. Digitaltechnology is one key factor which is continuously supporting small business enterprise towardsattainment of growth and innovation. In this context, business of Softwire is also based on use ofnew and latest digital technologies for providing software solutions services to their leading UKclients. There some key considerations have been identified that needs to considered byorganisation for evaluation of growth opportunities such as:Competitive advantage: These are conditions that enables a company to develop itsproducts and services at equal values but a lower price or in more desirable options.These conditions allow the productivity entity to generate more sales as compared tocompetitors (Moseley, 2013). For making growth plans, employers of Softwire needs toconsider competitive advantage they have over their rivals. They need to analyse theircore competencies such as High quality products, qualified customers service capability,newly designed software and customer satisfaction etc. 1
Environment analysis: While making growth plans, Softwire also needs to consider thefactors in external business environment that provide influence on their business growthand innovative. These factors are political, social, economical, technological, legal andenvironmental (Chapin, 2012). Further, technological factors generates positiveinfluences through creation new and latest software development opportunities. This aidsthe Softwire to meet expectation of its clients and generating higher revenues in market. Generic strategies: A competitive advantage over competitors is gained by offeringconsumers greater values, either by means of lower prices or by providing greaterbenefits and services that justifies higher prices. While making growth plans, companyalso needs to consider strategies suitable for them to adopt and achieve growth in salesalong with earning higher revenues. These important strategies are cost leadership,differentiation leadership, cost focus and differentiation focus. In this, Softwire canapply cost leadership strategies to become low cost producer in IT industry and maintainits dominate position in market on competitors. Products and services innovation: While making plans to achieve growth in IT sector,employers of company needs to consider ways to innovate their products and services.This aids the organisation to influence its potential customers in market for installingtheir new and latest technology software relates to cyber security and other businessSoftware (Ziari and et.al., 2012). By carrying out innovation in engineering, IT andconsultancy service company will be able to achieve high revenue and making plan forbusiness expansion. Relationships: Having positive relationship with necessary customers, partners, hires,investors etc. will save a lot of time, reduce costs and risk. Without having exitingrelationships, Softwire will not able to evaluate its growth opportunities in market. Theyneed to develop positive relationships by meeting their requirements and supply qualityservices at lowest possible prices to enjoy higher profitability. Portfolio strategies: For evaluation of growth opportunities, company needs to analyseits strategies which they applied while making their product portfolio for customers. Itimplies that company needs to have an appropriate range of products and services in theirportfolio. For example: Products portfolios of Mobile companies starts from low tohigher range of products which enables the users make selection. In this, Softwire needs2
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