(Solved) Planning for Growth Opportunities Assignment

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities.....................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..............4
P3 Assess the potential sources of funding with benefits and drawbacks..............................5
TASK 3............................................................................................................................................7
P4 Business plan for growth...................................................................................................7
TASK 4............................................................................................................................................9
P5 Assess exit or succession options with benefits and drawbacks.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth refers to a strategic business process which provide support to make
effective plan of action to achieve better outcomes. It render help to allocate available resources
and tasks in an appropriate manner which facilitates to achieve success of business. Moreover, it
is necessary to make efficient strategies or policies through innovative ideas to improve
productivity of an organization. The present report is based on ABC Software Agency which
conduct online investigation to identify person and businesses to assist backgrounds checks,
screening & collection activities (Eddleston and et. al., 2013). In this assignment, the firm is
coming under a contract with “Medicines and Healthcare products Regulatory Agency” for
bidding. It will focus on key considerations of evaluating growth opportunities along with
applying Ansoff's growth matrix. There are several kinds of sources of funding for given
organisation are also described with their benefits and drawbacks. The business plan and exit or
succession options of a company is given below.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities
There are different types of internal and external factors of an organisation which impacts
on overall operational activities as per different circumstances of market. It include to observe
and analyse required elements thoroughly to determine possible chances which can provide
support to business in order to boost up productivity or profitability on regular basis. Moreover,
these opportunities are necessary to be identified in terms of improving brand and achieve
competitive advantage in market. In context of ABC Software Agency, they are required to
analyse several components to evaluate growth opportunities which are explained further -
Resources – This can be described to analyse available and required resources in an
organisation to make an appropriate strategy of utilising them in proper way. It is necessary to
conduct an optimum use in different types of sources to generate maximum outputs from them.
In case of given company (Mahmoudi and et. al., 2013). It is required to generate potential
growth opportunities in order to enhance brand image in market by appropriate management of
resources along with fulfilling actual desires of company. Moreover, this organisation has several
resources including raw material, staff members, funds, software, applications which are helpful
to conduct operations properly.
1

Core competences – There are different competitive firms which are surviving in present
scenario of market then it is essential to analyse their creative strategies which may impact
negatively on sales of an organisation. Meanwhile, it is important to generate more effective
policies in order to avoid effects of competitors along with creating beneficial chances to gain
competitive advantages of given company. Moreover, they have certain core competencies such
as collective learning, production skills and technological resources including desired software or
applications.
Porter's generic strategies – This theory was proposed by great thinker named as
Michael Porter around the year 1985 in a book “ Competitive Advantage: Creating and
Sustaining Superior Performance”. This strategy can be utilised by given organisation through
focussing on relevant factors of this model which are as under -
Cost Leadership – This can be described as to focus on overall cost of production by
analysing various operational activities as well as procedures to improve quality of products
(Valler, Phelps and Wood, 2012). It include to provide more effective services to people in order
top fulfil their actual needs, wants and demands at reasonable cost among different competitors.
In context of selected company, they are required to make their investigation results much
efficient by using software at specific price which is easily affordable by customers to achieve
satisfaction that generate an opportunity of improving profitability.
Differentiation – This can be explained as an important aspect to make own services to
be unique and different from others so that uniqueness of brand is itself become tool of
promotion. It provide support to make a separate image of company in min d of people which
always motivate them to make decision of purchasing in favour the same (Kraaijenbrink,
Ratinho and Groen, 2011). In case of selected enterprise, they can make different sign of
identification of their business concern through modifying certain factors which create a
beneficial chance to attract more consumers towards brand.
Focus:
 Cost focus – This include to focus on cost of services to minimise them in niche market
so that other competitors will not able to adapt the same. It is helpful to attract new
customer towards brand and increase sales which is favourable opportunity for ABC
Software Agency for achieving success.
2

 Differentiation focus – The differentiation focus refers to make product exactly unique
or different to other competitive firms so that no one firm can compete the same. In
context of selected enterprise, they can make their investigation facilities in different
manner from their competitors within niche market which create a beneficial opportunity
for them to attain growth of business.
PEST analysis
Political Factor – This can be described about a political environment of particular area
where operations of business are carried out as it may impacts negatively or positively on the
same. It include government policies which are not fixed and they will get changed or modified
as per different flexible authorities of differentiated political parties. Moreover, they make
various norms or policies which are suitable and impacts on operations as well as profitability of
business get fluctuated in respect of given organisation. For example, stable political situation
provide a favourable chance to given firm in order to grab more profit share in particular market
area.
Economic Factor – This include several economic elements such as taxation, inflation,
interest rate and growth rate which is helpful to analyse possible scope of profitability of
company in particular area (Grover, Bokalo and Greenway, 2014). Through evaluating economic
condition of specific country, an appropriate decision of conducting operations can be taken
which generate profitable opportunity to gain success of ABC Software Agency. Additionally,
favourable conditions are also beneficial for bidding.
Social Factor – There are different types of people who are living in country with their
own different religion, culture or values which impacts on their every small and large decision of
their life,. Similarly, their cultural belief or norms are also applied while they are making
decision of purchasing specific services in market. In case of ABC Software Agency, they are
required conduct promotional activities to improve their goodwill along with avoid to hurt
someone's personal values or beliefs which is helpful top gain trust of customers by creating
favourable image in the market
Technological Factor – This refers to various kinds of technologies which are utilised by
different organisation to fulfil their daily needs as they are helpful to increase quality of products.
It include to adopt several effective as well as efficient technology such as better information
system, accounting machines or biometrics to make easy and quack in regular routine work of
3

business. In context of given organisation, they are required to adopt investigation software for
managing their services and records of clients for future reference which are helpful to conduct
further investigations as well (Chapin, 2012).
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
The procedure of evaluating growth opportunities for a business is very important but to
select better theory of analysing the same is more beneficial and time saving. There are various
types of models or theories which are used by business concerns through selecting most
favourable ones to get better options of attaining growth opportunities. Moreover, it provide help
to boost up regular productivity as well as profitability in order to grab more profits share of
market along with achieving satisfaction of customers. In case of ABC Software Agency, they
can utilise Ansoff’s growth vector matrix for evaluating growth factors including several
strategies which are as follows -
Ansoff's Growth Vector Matrix
(Source: Moore, 2018)
4
Illustration 1: ANSOFF MATRIX

Market Penetration – This strategy indicates to improve sales of current product in
present market only by attracting more people towards brand. The given company can utilise
more effective marketing techniques to gain more number of clients which create an opportunity
for increasing sales of services in same market area along with boosting up profits (Ziari and et.
al., 2012).
Market Development – The market development policy refers to selling the present
product into new market areas which facilitates to grab more profit share along with increasing
clients for company. The selected enterprise can target fresh market place in order to increase
sales of their current services or maintaining better profitability which is favourable for attaining
growth of business.
Product Development – This can be described as a technique in which different product
will be introduced in same market to enhance business which is growth opportunity for the same.
ABC Software Agency can propose fresh service with an innovative idea which is beneficial for
bidding. This organisation basically works for investigation services therefore they can introduce
special intelligence software that helps them to identify advantages and disadvantages of health
care products in order to grabbing maximum opportunities easily.
Diversification – The term diversification refers to introducing new services in fresh
market areas for selling it to prospects. It has new concepts in order to fulfil modified needs of
clients along with expanding business to make brand more strong among different competitors.
The given organisation can adopt this strategy in order to enhance business at large level for
achieving growth successfully (Todes, 2012). The ABC Software Agency can diversify their
products and services by introducing special intelligence software in market that provide minor
to major information of each and every health care products to their specialist in a small
duration.
For ABC Software Agency, diversification strategy can be more beneficial because
through this they can introduce new services in diverse market easily. The given organsation is
required to adopt the strategy of diversification which provide support to them for grab more
market area for increasing profitability. It has been evaluated that diversification create an
opprtunity for ABC Software agency in terms of expanding busines at large level. However, it
will facilitate to attain growth of business which results into success of the brand respectively. In
addition to this, the selected company should establish an effective plan of action for
5

implementing strategy of diversification to enhance brand which helps to increase number of
customers for brand and profitability as well. These strategy can be beneficial for health care
organisation in order to identifying benefits of new products effectively.
P3 Assess the potential sources of funding with benefits and drawbacks
For every organisation, it is requirement of funds through which they can operate and
regulate their business operation or functions in proper manner. They need to collect finance
from different sources so they can smoothly run the business concern. ABC Software Agency
coming under the contract with “Medicines and Healthcare products Regulatory Agency”. The
maximum contract bid is 250K in which 20K is available in the company and rest of the 230K
are to be gathered from different sources. These are described as under:
Bank loans - It is one of the essential sources of collecting funds. Bank loan is the
important part of the system which help in managing and maintaining business operations in
effective manner. There are various types of bank loans which are required to meet the
expectation of people and fulfil all need of them in better manner (Mitchelmore and Rowley,
2013).
Advantages – The main role of bank is to provide cash at anytime to the people. A bank
loan assists a person or company in purchasing something which are require to them. It is the
main drivers of growth especially for public or private companies because such sector borrows
money for run their business in smoothly manner. ABC Software Company can also take loan
from bank for completing their project without any interruption.
Disadvantages – By taking loan, the company will be facing huge burden of paying
interest rate on their borrowings. The procedure for applied is very time consuming and lot of
documentation formalities need to be fulfilled. It is very complex to obtain bank loan unless a
person or company has credit valuable collateral. For ABC software, it is necessary for follow all
terms and conditions which are described in the form.
Venture capital – It is one of the most important source of borrowing funds for business.
in this, money is provided by investors for any company which has potential for grow and gain
profitability. The suppliers of venture capital assist in giving technical and managerial support to
the firm.
Advantages – For businesses, it is effective source of method which provides funds to
help in increasing growth and profitability (Barbour and Deakin, 2012). In addition to this, it will
6

provide valuable information, resources, technical support for developing business more
successfully in the operating market.
Disadvantages – In venture capital, a major share of the ownership goes to the investors
which takes away decision making power as well. The company investor is an an individual who
check information and consultation things on regular basis. ABC software company require to
take source from venture capital for continues growth and gain maximum profit.
TASK 3
P4 Business plan for growth
A business plan is the formal statement which helps in analysing company goals,
objectives and plan for reaching with desired objectives in better way. It mainly includes
background of an organisation or team who are achieving set goals and target of the firm. It is
that plan which are designed for reaching with potential growth of the company so that they can
gain its income or profitability. With the help of business plan, the company can examine its
current position where they need to make proper improvement in that areas in which they are
weak or try to develop them perfect (Schetke, Haase and Kötter, 2012).
Executive summary - A business plan is based on ABC Software Agency which is small
in size and they are deal in website, software applications and so on. The business plan includes
company mission, vision, SWOT analysis and marketing budget which analyse the actual
position of firm
Mission - The mission of company is "to enhance business growth of our customers with
developing creative design and development in devices of software programmes along with high
quality solution"
Vision - The vision of company is "to develop one of the best IT service provider
organisations in providing quality web and software development solution in the competitive
international market place".
Objectives :
The major objective for this buisness is, “To enhance the market share of the company by 5%
through offering improved software based services in the coming 5 months.”
SWOT Analysis :
7

It is the strategic method or technique which can be used for assist an individual for
identifying company strength, weakness, opportunities and threats in proper manner. It is internal
factors which can directly impact on business operations and its functions (Li, Mobin and
Keyser, 2016). . It is a set of framework which helps in identifying and analysing the internal and
external factors which have direct effect in viability of product, place, work and employees
performance. This method is used for examining the actual situation of firm in the current market
place and also assists them in improving their growth or development level.
Strength Weaknesses
 Use of updated and advanced
technologies by ABC Software
Company.
 Firm has strong distribution
networking channel.
 Company has strong presence in the
market place.
 Soft skill is a major challenge for firm.
 Lack of business advisory capitalist.
 Weak in developing new software at
rapid manner.
Opportunities Threats
 Try to expand in new market place for
gaining better growth or development.
 They can promote their software at
the international marketplace.
 There are various competitors who are
providing same type of services or
products such as XYZ Ltd, TP
solution, etc.
 Lack of creativity and fresh techniques
is a major threat for this business.
Marketing budget -
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 40000 10000 12000 25000 10000
8

Investment 20000 12000 25000 25000
Total 40000 30000 24000 30000 35000
Marketing
expenditures
Advertisement 9000 8000 3000 8000 5000
Sales promotion 2000 8000 3000 7000 5000
Direct marketing 9000 8000 4000 6000 7000
Total 20000 24000 10000 21000 17000
Available balance 20000 6000 14000 9000 18000
9

TASK 4
P5 Assess exit or succession options with benefits and drawbacks
An organisation require to identify growth opportunities through which they gain
maximum income or profitability. There are two option arise with the company such as exit and
succession. ABC software selects succession option where they are adopting venture capital and
merger by which they can easily remain their position in the market. These are described as
under:
Merger - It is that method where two or more parties come together with all their assets
and resources for reaching towards common goals and objectives. it is the combination where
two parties are involved for offering shareholders of one firm security in acquiring company in
exchange of shares. It is the simple method to involve all companies assets and resources with
other organisation (Denton, Forsyth and MacLennan, 2017). There are various government
issues also occur at the time of merger such as always change in their policies and strategies so
company require following as per the demand. If ABC Software Company adopt this option for
growth so they can easily increase its market share as well as develop their market area.
Benefits Drawbacks
 ABC Software Company can easily
enhancing its customers base and
satisfying them by providing unique
goods or services.
 Diversification in the businesses.
 Reduction in competition when
company merge with their
competitors.
 For company, it is easy to make
money in rapid manner.
 Clashes of culture between various
types of organisation can occur.
 Sometime disputes or argument arise
among companies.
IPO (Initial public offerings) – It is one of the most effective method of succession and
it is a type of public offering in which company's shares are sold to the institutional investors. In
this process, the firm is sale its stocks to the general public for gaining income or money. These
type of shares can be further sold by investors through secondary market trading (Denton,
Forsyth and MacLennan, 2017).
10

Benefits Drawbacks
 Company gain financial benefit in the
form of increasing rate of income.
 IPO help in enhancing public
awareness of the firm towards their
stocks.
 High cost can be receive in complying
with regulation requirements.
 Firm is focus on short term result
rather long term growth due to huge
pressure.
CONCLUSION
From the above mentioned report it can be analysed that planning for growth refers to a
strategic business process which provide support to make effective plan of action to achieve
better outcomes. There are different types of internal and external factors of an organisation
which impacts on overall operational activities as per different circumstances of market. along
with this, there are various forms of models or theories which are used by business concerns
while selecting most encouraging factor and get better options of increasing growth
opportunities. Such models or theories include PESTLE, SWOT, Ansoff matrix and porters
generic model. For every company, it is requirement of funds through which they can operate
and regulate their business operation or functions in proper manner. Business plan is useful for
analysis company growth and development which includes mission, vision, SWOT analysis and
budget planning. ABC software selecting option of succession for making existence in the large
market place and gain higher income or growth in proper manner.
11

REFERENCES
Books and journals
Barbour, E. and Deakin, E. A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Chapin, T. S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1), pp.5-15.
Denton, G., Forsyth, M. and MacLennan, M., 2017. Economic planning and policies in Britain,
France and Germany. Routledge.
Eddleston, K. A. and et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Grover, B. E., Bokalo, M. and Greenway, K. J., 2014. White spruce understory protection: from
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Kraaijenbrink, J., Ratinho, T. and Groen, A. J., 2011. Planning effectual growth: a study of
effectuations and causation in nascent firms.
Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability growth
planning in early product-development stage. IEEE Transactions on Reliability. 65(2).
pp.769-781.
Mahmoudi, P. and et. al., 2013. Space matters: the importance of amenity in planning
metropolitan growth. Australian Journal of Agricultural and Resource Economics.
57(1), pp.38-59.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Ziari, I. and et. al., 2012. Integrated distribution systems planning to improve reliability under
load growth. IEEE Transactions on power delivery. 27(2). pp.757-765.
Online
ANSOFF MATRIX FOR EVALUATING GROWTH OPPORTUNITIES. 2018. [Online]. Available
through: <https://www.kgmoore.co.uk/strategy-tools-use-the-ansoff-matrix-for-
evaluating-growth-opportunities/>.
12