Planning for Growth: Evaluating Strategies and Sources of Funds for Softwire

Economical factor: The financial flow of the nation in respect of the organisation lies on the
economic landscape. According to the World Bank UK is 5th big economy in the world. The other
taxation policies and finance regulations focuses on balancing the inflation rate according to their
set target. UK has the higher GDP and its economic flow is diverse which enhances the foreign
direct investment (FDI) by overseas industries and financial businesses (Sarin, 2019). This gives
opportunities to developing SMEs. The great economical infrastructure of the nation makes the
Softwire capable for the further expansion and enlarging the segment of potential consumers.
Social factor: There is a massive rate of literacy as well as the per capita income of each sector is
also high. This gives an open marketplace for the new SMEs to initiate with their product. The UK
has been declared as the world's 3rd best country. Its because of the society is quite progressive and
people are multicultural. Softwire can work in the way of promoting innovations for the better
product and services for its growth and popularity in the market.
Technological factor: Being the most developed country UK has the most futuristic technologies.
The technical sector helps to grow the business on a wide level as compared to the traditional
methodologies of work. There are many large- small industries which are involved in multiple E-
commerce activities. UK has the strongest telecom infrastructure among the world, that can be
actively responsible for the growth and promotion of SMEs. Softwire is basically a tech oriented
company and with these quality it gets positive chances to acquire the larger market share through
various digital platforms.
Environmental factor: Certain issues responsible for the weather and climatic conditions that
affects the business and social surroundings are the environmental factor. In the current time as it is
clear that the world is going through serious climate changing conditions. Corporations are required
to take positive initiative in such way to minimize the effects of the problem. Softwire can also
promote the environmental friendly work process and economic work structure, as it will help in
increasing the high morale of the respective firm. In addition to that the UK has already taken the
several measures in way to promote the sustainability in production development.
INTRODUCTION
Planning is the process of deciding in advance the course of action to be achieved in a particular
period of a time (Sweeney, 2019). Softwire company is one of the leading SME in UK which
deals with software designs, digital solutions and advisory services to some of the UK's popular
brands. The aim is to serve the clients in a best possible manner by providing high level software
designs.
The report covers key aspects of growth using Ansoff matrix in the context of Softwire.
There are different sources of finance through which firm can meet the financial requirement. The
report provides a detailed structure of business plan of Softwire firm in UK and its objectives,
financial plan and the complete overview of a company. This report comprises of comparative
evaluation of exit or succession methods of a concerned firm.
P1: Analysing key considerations for evaluating growth opportunities and justifications in
organisational context.
In the broad segment of technological market there is a high competition and multiple
opportunities for growing SMEs. In an established software firm like Softwire, its external
environment and internal working culture effects the overall growth of organisation. The key
factors for the consideration of development can be the two major elements of managerial analyses
and researches are PESTLE analyse and Porters strategic forces (Guevara, 2019).. PESTLE
analyses is the systematically framed tool used to analyse the macro environment of business in it
is defined hereby in reference for the Softwire Pvt. Ltd.:-
PESTLE Analysis
Political factor: Political element consists of the elected government, ruling and opposition
groups whichever can affect the business. UK is said to be the most powerful country as it has a
constant ruling party since a long time. The stability of party plays an important part among the
industrial level. As policies and law of trade in the country works same every year it offers major
assistance for the business oriented SMEs. Softwire can also attain the opportunities by focusing
on other environmental elements and increase its productivity and growth.
Planning for Growth

Cost Focus strategy
A business can moderate the cost as per its demand and need to seek advantages
from market. Specific focus on the targeted segment is done to ensure the effective cycle
of sales and revenue (Stanley,2019). If Softwire adopts the cost focus strategy it would get
many development chances to build the product growth in the competitive market terms.
Differentiation Focus strategy
It is the important tool for SMEs by which the organisation can achieve the
maximum attention from the targeted segment of market. Differentiation focuses on to
providing the product and services in a unique way. In the case of implication of this
strategy, Softwire would get a lot of help for the brand promotion and identification
among the heavy rush of particular segments.
Being a continuous growing SME Softwire should consider the differentiation
strategy, to create the distinctive brand image for itself and implementing the standards of
quality in its products and services.
Legal factor
The last and the foremost element of PESTEL analyses which comprises of laws and
legal regulation that are responsible for the expansion and survival of the business entity. Being a
digital service provider Softwire is obliged to follow the UK cyber laws. UK has the most
systematic and flexible trading laws, as such laws are equally transparent for the country as well as
for its citizens. Thus for the Softwire it would act as a tool for enhancing more transparent and
systematic process, which will maintain the dignity and discipline of the company.
Porter Generic Strategy
The four generic strategies of Porter will help to take the decision to set up the major plan
of action, which are discussed as below:-
Cost Leadership Strategy
The survival of any business relies on its earnings, from every sales operation the
company demand optimum profit in minimum cost. As the product can be in lead by taking correct
costing decisions (Perloff and Wingo, 2019). If Softwire applies the cost leadership strategy it will
reduce the cost. The sale of the product with effect from standard market price, will attain the high
profit and less quality. Thus it can enhance the quality and low down the product pricing which
would effect in high sale growth but less profit earning.
Differentiation strategy
In the high competition of market there are less chances to enhance the revenue from
each product but the brand and its services can be highlighted to obtain the positioning into market
segment. Differentiation strategy stresses on making the product and brand image distinctive in the
market. If Softwire follows this strategy the product packaging and brand display will be more
attractive. The respective firm would get an opportunity to present the product with great USPs in
market providing the genuine information regarding the quality and products specialization.