Planning for Growth

This document discusses the importance of planning for growth in a business and explores various options for development. It evaluates growth opportunities using the Ansoff matrix and measures possible sources of financial support. It also provides insights on designing a business plan for growth.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Assessment of the particular options for development.....................................................3
P2 Evaluate the growth opportunity by applying Ansoff matrix...........................................4
P3 Measure the possible source of financial support available for the business and discuss
pros and cons..........................................................................................................................5
P4 Design the business plan for growth.................................................................................6
P5 Discuss assessment of the different exist or succession alternative for business..............7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Planning is primary for the success of any business as the company has to follow the plan
in order to reduce risk and uncertainty present in the organisation. A business plan create focus
of vision of the organisation and unite employees to achieve common goal in the well define
manner (Beza and et., al., 2019). The report is based upon network critical solution which leads
the mesh business with the changeless creation and unique modular design. This report describe
about the different growth opportunities with the help of Ansoff matrix. Business plan is
essentials as this help in analysing the vision and the mission of the company effectively.
MAIN BODY
P1 Assessment of the particular options for development
Growth and evolution is consider as the essentials factor for organisation to expand
business. For constant growth company have to improve the select of good and services which is
proportional for earning profit. Further the company can use most of the effective measure such
quantum engineering and also monitor the impact and the effect which is developed in the
extrinsic environment. For constant growth and development Network critical solution
management should manage the time efficiently as this help achieving the organisational goal in
limited time frame.
Proper management of timing allows business to determine which responsibility is the
most important. Apart from this, organisation can set the goal for the business as this provide
proper vision to employees and leaders of management to achieve desire aims and objective.
Porter generic model:
This model indicate how the company pursues the competitive advantage across the
chosen marketplace. The company tend to focus on one primary objectives to make sure for the
proper growth and expansion. In this model company like Critical network solution must provide
can choose different option such as scope through which company can offer wide variety of
product to the selected customers and help in creating better market share effectively.
Cost leadership: With the help of this model organization have the option to overcome
the problem of cost of the company. The prime source of cost is totally depend upon the structure

of the company. IT sector is one of the largest sector in the present world so it become essentials
for Network critical solution to take measure for cost prevention like optimum utilization of
resources. Further in this company wants to expand the business by providing low cost products
to consumer. Along with this, management has to focus on the economies of scale, proprietary
technology, preferential access to the raw material and the other factor. This help organization to
strength the market reach and it create a sustainable business for longer time duration. The firm c
can also survive by cutting down the cost which help in increasing the sales as well as revenue
for the company.
Differentiation: In the stage company think about the unique and different way of doing
business and also provide dimension for purchase and it is highly valued by users. Network
critical solution must use develop unique product and a different way which help organisation to
develop the brand image. Along with this company can charge high price for uniqueness with the
premium price. The management of Network critical solution must target those consumer where
the price sensitivity is low or the market is saturated. The firm should figure out different ways to
attract the consumer and satisfy there requirement by identifying the needs of the individual.
Company must use different types of strategies to differentiate it from the rivals present in the
market.
Focus: This aid in narrow down the competitive scope within the industry and tailor it
strategy for providing better services. In the context of Network critical solution management
should focus on cost which is consider as the essential elements for expansion. This exploit
difference in the cost behavior in the segment while differentiation emphasis on special needs.
Further companies needs to separate the strategies for the big companies due to small market
condition and focus on the specific audience as to create better services environment. Along
with this, company can focus on innovation which provide unique services to consumer
effectively. The management of company can focus on the niche market and improve the
services as to create brand image in the minds of customer. The company should narrow down
the product and lower down the volumes as this tend to reduce the bargaining power of the
suppliers.
P2 Evaluate the growth opportunity by applying Ansoff matrix
This model provide detail explanation about the growth and development model. It is
important for the Network critical solution through which company can capture large market

share and also aid in developing new product and make further changes in the business(Pan and
et., al., 2019). This model help in effective marketing planning which he used to expand the
business to expand the business through developing new product and services for betterment and
growth. In the context of Network critical solution is one of the most widely used marketing tool
as this help in increasing opportunities for the companies increase their sales through the
alternative combinations of new markets. Various kind of maturation strategies of this model is
used for the pursuing the context of Network critical solution:
Market penetration: In this process company use its product in the existing market in
order to grow the enterprise and aiming to make profit with the help of market penetration
strategy. For the organization like Network critical solution company can decrease the price to
attract the existing or the new customer. Further entity can improve the promotional activities
and increase the distribution. Along with this, it is consider as less risky as the leverage to many
existing resources and the capabilities . In the growing market, the company tend to grow by
maintaining the market share if the competitors reach the capacity limit. As there is market
penetration network critical solution must provide use strategies for the constant growth.
Product development: In this stage firm create a new good to provide the active market.
This basically refer proper research and improvement for enlargement of the commodity range.
Hence Network critical solution must put emphasis on creating new product which is essential to
cater the existing marketplace. Strategic partnership with the other firms help in gaining access
for the new product to meet the end needs for the existing market. Along with this, company
must use conduct proper research regarding the needs and wants and make sure to improvise the
plan to fulfill the needs and wants of customer effectively. Entity can increase its strength by
providing new product and services to the existing customer. This also carry new risk which
must be taken care by management of company by focusing on the product rather than focusing
on the market.
Market development: In industry evolution strategy the firm enter the new market with
the present commodity. This include expanding new geographical area, customer segment as to
expand the business. Network critical solution solution must cater to different customer segment
and provide them better quality product and services to the user. Further company can enter into
new domestic market for exposure. It also need consist the pursuit of additional market segment
or entering into new market. The developing of new product may be consider as the effective

technique to expand the business and provide core competencies with there rivals. If the
company enters in the new market it has more risk than the market penetration strategy.
Enterprise has to increase the fund which help in expand the business effectively as to capture
large market share.
Diversification: In the marketplace alteration strategy, the firm enter a new market with
completing new product. Although such kind of steps are risky of Network critical solution
should indulge in proper market research to avoid uncertainty present in the market. The
company can do diversification on the basis of related and unrelated aspect. This is require lots
of planning and strategies to diversification of there product. The management of organization
must emphasis on current and future trends as understand the market and customer needs as to
provide new diversified product to the company. The main advantages of diversification consist
of high potential to gain the foothold in the attractive industry and also reduces the risk from the
company and also from market.
From the gather information this has been analyze that Network critical solution must use
product development as it reduce the risk and also dominate the market by unique product and its
services. Product-development is essentials for the company to reduce rivals present in the
market and entity can improve there customer base. Along with this it force the management of
the company had to focus on the risk and move towards the certain direction. It also laid down
the possible strategies for the company as to provide new product and services to consumer. Te
manager of the company has to identify the high level of risk which is beneficial for avoiding the
risk and uncertainty of the company.
P3 Measure the possible source of financial support available for the business and discuss pros
and cons
Proper funding is essential for the company in order to expand the business and its is
prime factor for running business smoothly. There are different funding sources present in the
market and company can chose the best suitable source as per the need and requirement. The
management of Network critical solution should focus on expansion by the proper use of
funding.
Bank loans:
This is the most widely use source for funding use by the company to enlarging business.
Bank loan comes with the low interest rate and the legal agreement take place between bank and

client. Bank avails various kind of loan such as short and long term loan from which Network
critical solution have to choose for expanding the business. There are some advantaged and
disadvantage as follows:
Benefits: These are more flexible than other loan option and it does not require any paper
work. Further the bank charge low amount of interest rate from the borrower and it also comes
with installment which ultimately reduce the burden of the company. Unlike with the equity
finance where the business issues shares, and banks do not take any ownership position in the
business. In this case the bank personnel to get involved in any aspect of running business to
which the banks grant loans. Further the provide company full rights to the business with the no
external interference. Along with this bank loan is temporary and the organization has not to pay
any amount after the repayments is done.
Drawbacks: In some cases, if the loan are bolted towards the assets of the business for
the personal and professional level. The interest rate is high which increases the actual amount
for the company which creates financial burden for the organization. Another major drawback pf
the bank loan is that they are very difficult unless they have proper record of business. Bank are
careful to lend the money as they make sure that each and every aspect of borrowers which is
consider as the lengthy process. Along with this, business borrowers have to provide personal
guarantee, which means in the case if the company can not pay the loss bank have right to seized
there assets.
Family and friends:
This is the most easy and common method which can be used by the company for
expansion of the business. This kind of funding depend upon the relationship rather than the
assessment of the feasible for the business. Network critical solution can take funding source
from friends as it is risk free.
Benefits: This help in faster funding process and it also help in reducing the risk for
repayments. Along with this is easy for the borrower as this help in providing flexible option for
the individual for the payment of the installment. This allow lower interest rate for the company
as bank charge high interest rates. Further the friends and family can agree to increase the
repayments duration which help in company to have more time to repay the payment. Apart
from this family can seek the lower return and its provide satisfaction of helping the friends or
family member who are in need. They may enjoy as the part of the business formation process

while earning the returns similar to those provided by the company.
Drawback: Family and friends provide the funds without assessing the flaws or the
vision of the company. Apart from this, it only the capital investment but also reduce the
visibility of the organization. There is been lack of clarity in as it don’t require the same legal
documentation as those provided by a banking company or other investor. However, the lack of
clarity can be detrimental if borrowers and lenders have different expectations. Beside this there
can be tax issues where friends or family have may neglect to consider the effect of a loan which
have tax liability. There can be social awkwardness and if the company fails to repay the loans
to the friends as this can hamper the future relation with the customer.
Crowdfunding:
This involves the funding where the company takes little sum of money or capital from
the ample number of group usually with the help of internet. Such kind of funding are collected
with close friends and community. Many organization use crowdfunding as this is the practice of
funding the project by raising the funds from the different people. The network critical solution
can use such method as it is consider less risky and help to expand the business effectively.
These people called investors, and they contribute the amount depend upon there capabilities
effectively. It reaches more audience because someone who starts a fundraiser campaign has a
lot of followers/support and the supporters persuade their networks to garner more reach.
Benefits: It has the potential for expanding the business by attracting large number of
investors which help in raising the funds for expanding the business effectively. The another
advantages of crowdfunding is that company can get huge amount of attention, on the social
media and else where as this help to grow beyond the what the money is raised effectively. Apart
from this company can raise the funds by pitching the idea which also aid in creating brand
image in the minds of customers. This also make customer brand loyal and help in organization
to expand the business effectively.
Drawback: This require time and dedication before result may be realized . It is also an
lengthy process and it loose the control to some extent. Another disadvantage of crowdfunding is
that if the amount does not reach to the as per the expectations the company has to refund the
amount which decrease the reputation of the company. Failed projects risk the damage to the
reputation of the business and the people who have pledged the money. Over the crowdfunding

platforms charge high fees for the contribution and these fees are minimal which reduce to
attract more and more customers.
P4 Design the business plan for growth
Network critical solution: Network critical track the system for observation the business
with the regular creation and specific modular design (Wey, 2019). This is an united kingdom
based company which provide traffic monitoring device and visibility solution for the enterprise.
The product allow the company to safely connect monitoring, security and the performance tools
across the virtual network.
Mission: The mission of the organization is to provide quality product and services to the
users and develop the brand image.
Vision: To carry out the business activities organisation must use proper ethics with the
intention of increase lifetime loyalty of the company.
Strategic objectives: This is essential for the company to develop the strategies which
assist in offering the firm eventually grow and expand the business in the well define manner.
The company like Network critical solution should focus on the product development and
improve the quality to capture large market share.
 To maximize the income of the organization by 10% in coming 5 years.
 The administration of the organization can also make idea of accelerate market share by
5% in 2 years.
Source of investment: There are various origin through which company can use for
expand the business. Network solution can use banks loan which is important for the company as
it has easy procedures for availing loan . Further this also aid entity as it does not charge high
interest rate for the company.
Budget planning: This include financial plan for the firm and accordingly future prospect
and work related activities are carried forward. Network solution must prepare budget for proper
optimization of resources and detail information is given below:

P5 Discuss assessment of the different exist or succession alternative for business
Here are different kind of scheme which are executed by the company for succession and
plan. Succession plan is monitor with those sections in the administration which needs to turn
over the operation of the institution (Sarin, 2019). The manager of Network solution should
improvise the plan as it minimizes the risk and uncertainty.
Winding up:
This take place when the system is in loss and it is unable of delivering proper product
and services to the user. It involve procedure of liquidation of assets and liabilities. Profit and
disadvantage of it are as below:
Benefits: The major advantage of winding up the assets and other liabilities are secured
and it is done in a proper legal manner which reduces conflict among the stakeholder. The
another advantage to voluntary liquidation is that, once the company is dissolved the sales of its
assets distributed among the creditors and the remaining the unsecured the business liabilities
which are not personal and guaranteed to be written. Further it reduce the chance of legal action
which reduces the pressure which is often create the brand image in the minds of consumer.
Drawbacks: This is consider as the lengthy and time consuming process. Depending
upon the process it may create a statutory repetitiveness for the company. In case the
management of the company can enforce the debt if they are unable to reach an agreement for
the repayment. The another disadvantage is that company top management will be responsible to
the payment of directors and the different owners as well as stakeholder. If organization fails to

provide the money to shareholders as there can be legal action can be taken which is consider
take time and reduce company projection.
Merger and Acquisition:
This refers to the process of change of technology and operational activities between two
companies. It is most common method which is used by the different entities as for capturing
larger market share. Merger and acquisition help administration to increase the market share for
longer time duration.
Benefits: Cause of merger and acquisition open the vast market and it provide chance for
Network critical solution to improve the technology and expand the business for gaining higher
sales and revenue. Another advantage of this method is that it allow the increased value
efficiencies of the new entities which provide new shape of the returns and also provide cost
saving of the company. Further company can use the resources effectively and aid organization
to gain competitive advantage for the longer time duration. The biggest advantage of the tax
benefits which help in increasing the monetary leverage and utilize alternative tax benefits for
the company.
Drawbacks: When the firm indulge in merger and acquisition this create mis
management in the organization . Along with this, it also leads towards resistance for change for
the employees which comes difficult for the management to carry out the operational activities
smoothly. The major drawback of the mere and acquisition is that they reduces job losses which
company may shut down due to under performing segments of the company. Sometimes this
may lead to dis economy of scale for the new company and company may lose the control over
the activity.
CONCLUSION
As per the given information this has been summarised that the planning is important for
the growth. In order to understand the market Ansoff matrix has been used which provide the
detail information about the market and the product for improvement. Apart from this company
can use bank loan for the funding as it provide low interest loan for business expansion. Business
plan is important for the company which help in providing proper vision and mission of the
entity.

REFERENCES
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