Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Discuss the key considerations for growth opportunities within organisation context.........1
P2 Discuss the strategies of growth by using ansoff matrix ......................................................3
P3 Assess the sources of funds available with businesses .........................................................4
P4 Design a business plan...........................................................................................................6
P5 Exit or successions options along with their pros and cons...................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is deciding in advance the activities required to be performed to achieve a task
of an organisation
(Sweeney, 2019). It is a necessary activity in an enterprise that promote growth opportunities
and thereby enhancing the profitability and productivity of a business enterprise. Softwire is a
leading SMEs in UK that deals with software engineering, software designs and so on to meet
the requirements of the customers. The aim of a firm is to serve the clients in a best possible
manner by building strong brand name across the globe. This report is based on several growth
opportunities by using PESTEL and generic strategies of Porter's in the context of Softwire. It
also comprises of ansoff matrix that determine the competitive edge within the market. Also, this
report comprises of a overall business plan that provide the goal, vision, mission and its financial
structure within the software industry. This report also includes the entry or successions options
for a small and medium enterprises across the globe.
P1 Discuss the key considerations for growth opportunities within organisation context
In a digital era, there is huge competition and various growth opportunities for small and
medium enterprises as they render multiple ideas and innovative skills in a flexible
environment(Guevara, 2019). The internal and external analysis of Softwire has a major impact
on decision making in a macro environment and the development has taken place by taking
various factors into consideration like PESTEL and Porter generic forces. The PESTEL analysis
provide a systematic framework used to scan the environment is defined in reference of Softwire:
Political factors: This element consist of government policy, foreign trade, labour laws
and various taxation policies(Sarin, 2019). UK is the most political stable country in the world
and it is a multi party system. The exit of UK from European Union, namely Brexit has affected
the SMEs in various ways. The VAT increased from 17.5% to 20% which lead to increase in
prices as the law and policies in UK remain constant for large period of time. Softwire provide
best software development and follow the guidelines of existing ruling party that includes
conservative party and Labour party.
Economical factors: This includes various factors like level of employment, economic
growth, inflation rates and exchange rates(Perloff, and Wingo, 2019). UK is considered as fifth
largest GDP in the world that enhance the foreign direct investment across the globe. The
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corporation tax rate is 18% and the economic condition is affected by the Brexit that has caused
number of fluctuations in an economy. The prices of pound fall which lead to increase in the
prices of products. The advanced infrastructure sector in nation makes Softwire capable for
expanding their operations in different parts of the world to gain large access to customers.
Social Factors: these comprises of various aspects such as lifestyle, cultural barriers, diet
consciousness and so on(Stanley, 2019). The multicultural population in UK demand world
class facilities and many opportunities to the SME's around the globe. Softwire provide new and
innovative technology while considering the preferences of their customers thus this enhance the
growth and popularity within the market.
Technological factors: this includes level of technology, automation, Research and
development activities and so on. UK is most technologically advanced country in the world.
Softwire provide new and latest innovative software designs to meet the requirements of
customers in order to acquire a large market share within the market.
Environmental Factors: These includes climate, weather change and various
environmental policies. Government has taken various measures to protect the environment for
achieving sustainable growth within the country. Softwire provide environment friendly working
environment and minimise the waste by focussing on 3R's to gain sustainable development.
Legal factors: this cover various aspects that includes consumer protection laws, patent
and copyright laws and various health and safety laws that are responsible for the business
entity(Bates, 2019). Softwire is regulating the cyber laws and abide the rules and regulations of
government policies. The management of Softwire make ensure abidance with all legislations
within the software industry so that goodwill at global scale does not hampered.
Softwire has the multiple objectives with the aim to increase sales and profitability that
provide future growth opportunities in a digital platform. The respective firm implement the
strategy according to the market conditions in order to gain a competitive position within the
confine sector of UK. The four strategies of Porter would help the firm to take decisions in order
to gain competitive advantage within the software industry are described as follows:
Cost Leadership strategy: this strategy lay emphasises on capturing the large market by
keeping the prices low so as to gain large access of customers(Wey, 2019). If Softwire applies
the cost leadership strategy then it would minimise their cost. This boost the sales and enhance
the profitability of software industry and thereby provide the future growth opportunities of a
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