Business Planning and Growth Strategies

This assignment provides a comprehensive review of business planning techniques and growth strategies. It includes a list of relevant sources, including academic articles and books, that discuss various aspects of business planning and growth, such as the Ansoff Matrix and business plan development. The summary also highlights the importance of business planning in achieving sustainable growth, with a focus on key concepts like smart growth, urban planning, and strategic spatial planning.

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..............3
TASK 2............................................................................................................................................6
P3 Assess the potential sources of funding with benefits and drawbacks..............................6
TASK 3............................................................................................................................................7
P4 Business plan for growth...................................................................................................7
TASK 4..........................................................................................................................................10
P5 Assess exit or succession options with benefits and drawbacks.....................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth refers to overall innovative strategies or techniques which assists in
formulating plans leading to achieve business goals and objectives. It is an important aspect for
an individual and an organization to increase their brand image along with profitability to attain
success (Eddleston and et. al., 2013). The present reports is based on ABC Solutions which deals
in networking, internet and intranet software development services. In this assignment, the
company is coming under a contract with Intranet Solutions “West Midlands Combined
Authority” for bidding. It will focus on key considerations of evaluating growth opportunities
along with identifying various potential sources of funding through their advantage and
disadvantages. This include a business plan to attain growth which involve overview of the
company, mission, vision, financial information and other relevant factor of the same. The exit
or succession options in respect of given firm will be discussed in the report as well..
TASK 1
P1 Analyse key considerations for evaluating growth opportunities
The growth opportunities are required to be identified so that they can be capitalised at
correct time for improving brand image in market. There are various kinds of factors which are
needed to be thoroughly analysed to known about their favourable or unfavourable condition in
respect of business. It is necessary to observe and evaluate overall internal as well as external
components to take suitable actions for facilitating growth opportunities for company in terms of
improving number of sales or profits. In context to ABC Solutions, they are required to analyse
properly about key considerations to evaluate chances of growth which are beneficial for bidding
contract and some of them are explained below:
Resources – This refers about different types resources which are used to carry out
various operational activities or procedures in proper manner to generate desired outcomes. It
include several resources such as raw material, labour, machines, software, equipment and many
more (Mahmoudi and et. al., 2013). Moreover, it is essential to utilise overall available resource
in more effective way which facilitates to create better outputs successfully. In terms of given
company, they can apply more creative way to utilise sources to make better quality of services
to attain satisfaction of customers to grab more profits share in market.
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Core competences – This include criteria of observing competitive firms and then
analyse difference between services to evaluate an opportunity of attaining growth in business. It
involve better presentation of facilities or quality of products which can be improved by
implementing an efficient strategies for making own brand more effective as compared to other
competitors. The ABC Solutions can analyse efficiency of other brand and can apply more
effective techniques which is beneficial for bidding contract to attain better profits for the same.
Porter's generic strategies -
Cost Leadership Strategy – This refers to establishment of an appropriate pricing strategy
which is affordable by people through providing better quality of services as compared to other
competitor present in market (Valler, Phelps and Wood, 2012). However, it provide support to
brand for maintaining its improved position in market than another competitive firms. In case of
ABC Solutions, they can increase their brand image in market as it is helpful for bidding
contracts in terms of getting more response by clients. Reducing cost of services helps to grab
more number of customers for company as compared to competitors which results into achieving
better outcomes.
Focus Strategy – This can be explained as to focus on different market place to apply
innovative ideas in present services to fulfil needs of people appropriately. It is an effective
policy to concentrate on different markets and grab profit share successfully. The selected
company can adopt this strategy to gain more market share achieving more number customers
from different geographical areas which is profitable for bidding contracts. Moreover, they can
focus on niche market segment and fulfil their demands in a customised manner by charging
premium pricing.
Differentiation Strategy – There are various kinds of companies which are producing
same services in market to fulfil similar needs of customers. It it essential to apply something
creative and unique into services or goods to make them differentiated with other brad sin
market. In terms of ABC Solutions, they are required to adopt this technique and apply better
ideas to add more features to intranet & networking services for increasing attractiveness of them
from others in terms of which facilitates to built different image in minds of people.
Additionally, the given firm can maintain their unique identity of company which an opportunity
for bidding contract (Kraaijenbrink, Ratinho and Groen, 2011).
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PEST analysis
Political Factor – This can be described as new rule or regulations of government
authorities which is responsible for making favourable or unfavourable condition of particular
place. It is necessary to determine political stability of specific geographical area which is
suitable for conducting business and earn profits in given company. For example, UK
government have initiated some provisions and tax rebates which can be considered as an
opportunity to expand business. Similarly, government provide new policies for business
concerns which creates a profitable chance for improve good will which facilitates to get bid
contract easily.
Economic Factor – The economic factors refers to several elements including inflation,
custom duties, interest rates, taxation and growth rate which impacts on economy. However, all
of these components are helpful in terms to make an effective strategies to make them
opportunity for business and get better outcomes in selected company (Grover, Bokalo and
Greenway, 2014). For example, of inflation rates increased then ABC Solutions are required
reduce price of services which helps to boost up sales of brand which is helpful to gain biding
contract.
Social Factor – This include various cultures or religions along with consideration of
taste and preferences of people which impacts on their decision making of purchasing services in
market. It is essential for ABC solutions to conduct an effective as well as efficient promotional
activities carefully without harming religious values of citizens. Additionally, it will help to
increase number sales in market through attracting new clients towards brand which is
favourable for bid contract.
Technological Factor – There are different technological innovations which are observed
in market with new concepts and benefits which is an opportunity for businesses in order to
enhance the same to achieve growth. It include various kinds of effective machines, software,
applications, equipment etc. which are favourable for conducting operations in appropriate
manner to create desired outputs. In context of given company, they can adopt fresh and
innovative technology such social media, cloud computing and many more which helps to
improve effectiveness which is helpful to bid contract.
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P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
The opportunities of business are require to be evaluated by carrying out different
effective as well as efficient activities to determine favourable chances of gaining profits. It is an
important aspect to identify beneficial chances for company in terms of adopting suitable
strategies to boost up better profitability of business to attain desired gaols and objectives
successfully (Chapin, 2012). Moreover, different types of modals or theories are there which can
be utilised by given firm and one of them is described below:
Ansoff's Growth Vector Matrix – This model was primarily proposed by great thinker
named as Igor Ansoff in the year around 1957, he introduced an effective marketing strategy
including four factors such as market penetration, market development, product development,
and diversification. In context of ABC Solutions, they can utilise any one of strategy which is
suitable for their business to gain an efficient opportunity which is favourable for bidding
contract.
(Source: Ansoff Matrix, 2018)
Market Penetration – This strategy include criteria of attaining growth for current
product in existing market through applying more appropriate concepts. It involve to promote
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Illustration 1: Ansoff Matrix

present services in same market- place to attract new customers towards brand along with
retaining the current ones. However, it provide support for increasing profitability of given
company which is an opportunity to growth of business. Additionally, it is helpful for ABC
Solutions in grabbing competitive advantage which is favourable for bidding contract. It include
to promote present services of networking and intranet in current market area to improve
goodwill of brand.
Market Development – The market development can be described as to grab different
market areas through existing product which is helpful in boosting up profit share of business
(Ziari and et. al., 2012). It is a profitable opportunity as it provide chance to increase sales of
organisation and enhance brand image as well. In case of select company, they utilise their
current services and introduce them at different places to improve profitability and number of
customer
Product Development – This can be explained as to make an appropriate strategy through
generating new and innovative conception for introducing fresh product with unique idea in
existing market. It should be according to actual needs and wants of customers at reasonable
price. Moreover, it includes to establish an effective policy of providing better quality of services
at affordable rate and launch new product in market to grab more profit share. In case of selected
company, they can introduce fresh concept of networking services in market which helps to gain
a growth opportunity for bidding contract.
Diversification: At last but not the latest, this strategy include the criteria to introduce
new product in fresh market area for enhancing business to earn success. It is necessary to make
an accurate policy to manufacture different product with better idea in terms of providing better
quality at differentiated geographical areas to promote brand which is beneficial chance for
biding contract. For example, they can launch new software system as a cleaning application
along with feature of avoiding viruses in new market area which results in enhancement of
business.
The above mentioned discussion conclude that ABC Solutions can utilise strategy of
product development to increases effectiveness of networking, software and intranet services
with better quality. It is an appropriate technique with facilitates to boost up goodwill of brand
and facilitates to build strong position in market as compared to other competitors (Todes, 2012).
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TASK 2
P3 Assess the potential sources of funding with benefits and drawbacks
There are various kinds of sources of funds which can utilise by companies to raise
required amount of money for running business properly. It include several methods which are
used as per suitability for particular organisation to gain capital for carrying out overall
operational activities or procedures to generate desired outcomes on regular basis. However,
ABC Solutions are is coming under a contract with Intranet Solutions “West Midlands
Combined Authority” in which maximum bid is £300K. Moreover, £20K is already available
and the remaining amount of £180K is required to be borrowed by adopting different sources of
funds in which some of them are explained below –
Bank loan – It is the most suitable way of funding because the entrepreneur can apply
for the loan at any nearest branch. The borrower does not needs to worry about anything as bank
provides various kinds of loan with different payment schemes. The banks has agents that
completes all the formalities in order to get the approval.
Advantages Disadvantages
 The borrower has a wide range to lend
the money from bank.
 Bank loan is flexible as owner can
select the mode of repay the lending
money and number of instalment
according to their convenience.
 The borrower has to pay back the
interest amount within specific time
other wise the bank can charge penalty
for the delays.
 Formalities and documentation takes a
a long time for approval of the loan.
Venture capital – This can be explained as a kind of private equity which is considered
as a method of financing which is given by investors in small firms of start ups for attaining
better returns on the same (Mitchelmore and Rowley, 2013). In context to selected company,
they can adopt this method by attracting efficient investors to gain desired funds properly.
Advantages Disadvantages
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 This techniques is supportive to gain
large sum of equity and able to bring
wealth to business.
 In this case, the venture declines
managerial control which is being
possessed by business.
Thus, the given company can utilise bank loans as it more suitable for collecting funds
for business as it provides opportunity to pay amounts in various instalments. It is mostly
preferable as it is not become a burden and easily paid in divided amount successfully.
TASK 3
P4 Business plan for growth
The business plan can be explained as to make an appropriate formal statement of an
effective as well as efficient planning for attaining desired goals or objectives along with
beneficial techniques and strategies. It is necessary for making more accurate plan of action to
follow it properly as it provide correct direction to achieve better results through generating
required outcomes successfully. In context of given organisation, a business plan is as under -
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(Source: Business Plan, 2018)
Executive summary – This report is based on ABC Solutions which provide intranet
services to people and fulfil their actual needs, wants and demands in an appropriate manner
along with achieving satisfaction. It basically deals in networking, internet and intranet software
development services. It is essential to build more effective plan of action to complete targets
properly with creating desired outputs.
Mission – The mission of given company is better quality of intranet and other
networking services for evolving regional networking market through highly able and trained
professionals. It involve to deliver maximum value to customers, empower team of employees as
most prized asset and make sure about sustained growth of business (Barbour and Deakin, 2012).
Vision – The vision statement is to become one of the leading networking services
companies at global level through delivering world class standards of quality to class- A clients.
It also include to remain more preferable brand by people in market as compared to other
competitive firms.
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Illustration 2: Business Plan

Objectives – To become pioneer in networking industry and implement an effective as
well as innovative technique to boost up sales of networking services up to 10 % in next 15
months.
Segmentation – This can be described as to make various small groups of people in large
area of market to fulfil their modified demands properly. It is necessary to make an appropriate
segmentation of customer so that actual requirements can be completed successfully. The given
company make segments by using geographical segmentation of clients and fulfil their desires of
networking in proper way to satisfy them (Schetke, Haase and Kötter, 2012).
Targeting – The target market can be explained to focus on specific group of population
who are responsible for maximum percentage of profits of business and put efforts to retain
them. It is important to hold current clients while adopting strategies to attract new people
towards brand as it facilitates to gain improved profit share of market. In context to ABC
Solutions, they focus on their target people including business customers who mainly prefers
services and fulfil their needs properly.
Positioning – The positioning is an important factor which is necessary to be focused by
management of organisation to gain competitive advantage. It includes to make an efficient
technique to improve effectiveness of services in given company to sustain strong position in
market competition among various competitive firms. ABC Solutions can conduct effective
promotional activities including advertisement with helps of social media, banners, posters,
pamphlets, television etc. Meanwhile, it will facilitate to occupy place in minds of customers
through differentiating it from competitors to maintain position in market.
SWOT Analysis
Strengths
 It has reasonable price for services which is affordable by people easily.
 It has more skilled and well experienced staff members having perfection in their
performance.
Weaknesses
 The communication is not complete between superior and sub- ordinate as well as lack of
mutual understanding is also which is required to get better outcomes.
 They have less effective techniques or procedures for conducting operations on regular
basis (Li, Mobin and Keyser, 2016).
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Opportunities
 They can adopt more innovation and efficient technology including social media, cloud
techniques and so on which facilitates to enhance effectiveness of their services.
 It can expand business by providing more varieties product or services to fulfil modified
desires of people which helps to gain more clients for brand for achieving better
profitability.
Threats
 It include specific system of working in given organization which is difficult to
understand and use which impacts negatively on daily outputs.
 Their technological equipments, software and applications are outdates and inefficient.
Budget -
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TASK 4
P5 Assess exit or succession options with benefits and drawbacks
There are various kinds of exit or succession methods which can be utilised by
organisations after analysing that which techniques is more suitable for them. In context to given
company, they can utilise succession methods which are as follows -
Merger and acquisition – When two firms get combined and make new business
concern with fresh identity then it is known as merger. However, when strong company will
purchase small firm then new business entity will known by name of purchaser organisation, it is
called acquisition. Thus, the selects firm can utilise this techniques to increase their brand image
and profitability to grab more market share successfully (Denton, Forsyth and MacLennan,
2017).
Benefits
 It is helpful to reduce rivalry if they are taken over and easily for raising funds for large
businesses.
 It facilitates to gain better skilled and well experienced specialists departments which are
beneficial for business growth.
Drawbacks
 It may results into several conflicts of clashes between different kinds of businesses
among staff members.
 It will facilitates to create issues of objectives due to having separate concepts of different
businesses.
Joint venture – This can be described as new business venture when two existing
organisations put their funds with same idea and establish third business- entity with new brand
name. Moreover, current businesses are running in their own way but they start new firm as
partners separately to earn more profits and this method can be adopted by ABC Solutions.
Benefits
 It is helpful in order to achieve benefits from local partner's local knowledge which
facilitates to take better decisions in business.
 The overall cost of operations and risks of business will shared between partners of
business.
Drawbacks
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 The shared ownership may generate conflicts which impacts negatively on growth of
business.
 It include lack of experience in new areas and it is less attractive to finance providers
including investors or shareholders.
The above mentioned succession methods have their own role which are implemented by their
effectiveness by business concerns. In context of ABC Solutions, they can utilise joint venture
for succession to earn more profit and boost up brand image in market to grab better profit share
as well.
CONCLUSION
The above report had concluded that planning for growth can be described as to make an
effective as well as efficient plan of action with innovative techniques to attain desired results
successfully. It include various key considerations for determine actual opportunities of business
including resource, core competencies and PEST analysis which are helpful to achieve growth of
business in proper manner. Moreover, it involve discussion about an effective or more preferable
model named as Ansoff’s growth vector matrix along with certain elements and determine that
more effective one for select firm is product development. It also described about several sources
of collecting funds in which bank loans are more favourable for given company as it is easy to
afford. The business plan is discussed including executive summary, vision, mission,
segmentation, targeting, positioning and swot analysis which is helpful to conduct it properly. At
last but not the least, succession options of business are mentioned in which most beneficial
method is join venture.
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REFERENCES
Books and journals
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.
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.
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.
Kraaijenbrink, J., Ratinho, T. and Groen, A. J., 2011. Planning effectual growth: a study of
effectuations and causation in nascent firms.
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.
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.
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.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South
Africa. Cities. 29(3). pp.158-165.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led
SMEs. Management Decision. 51(1). pp.83-96.
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.
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.
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.
Denton, G., Forsyth, M. and MacLennan, M., 2017. Economic planning and policies in Britain,
France and Germany. Routledge.
Online
Ansoff Matrix. 2018. [Online]. Available through:
<http://www.onceadaymarketing.com/expanding-your-markets-and-products/>
Business Plan. 2018. [Online]. Available through: <https://harbourassociates.co.za/business-
plans-for-loan-applications>
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