Planning for Growth Assignment - 'Technocrazy Software'

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse key considerations for evaluating growth opportunities and justify.......................1
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..................4
TASK 2............................................................................................................................................6
P3. Assess the potential sources of funding available to businesses with benefits and
drawbacks....................................................................................................................................6
TASK 3............................................................................................................................................7
P4. Design a business plan for growth that includes financial information and strategic
objectives.....................................................................................................................................7
TASK 4............................................................................................................................................9
P5. Assess exit or succession options for a small business explaining the benefits and
drawbacks....................................................................................................................................9
CONCLUSION.............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Planning is essential for a business because its supports to grab the growth opportunities.
A firm should develop an effective strategy in order to run a business with certain objectives and
goals. If a company wanted to achieve these targets, then it should prepare strategic plan which
aid to assist in growth. "Technocrazy Software" is a small company and develops software and
apps for various organization. Thus, it is planning to grow in the marketplace and that's why it is
bidding for Blood Tracking System project of NHS South West – Acutes to grab the growth
opportunities (Eddleston and et. al., 2013). The report covers the key considerations and growth
opportunities for a business. It also comprises of Ansoff's growth matrix, funding sources,
business plan along with exit and succession options of a business.
TASK 1
P1. Analyse key considerations for evaluating growth opportunities and justify.
"Technocrazy Software" is a small software and app development company and it is
renowned name in its field. After working so hard and getting prodigy experience it is planning
to seek the opportunities in the market that can enhance its business and reputation as well. As it
is a small firm that's why it should analyse some key factors which can support it for the growth.
These key considerations are mentioned below -
Resources – "Technocrazy Software" is seeking for the growth opportunities so it should
analyse its resources such as funds, machinery, equipment and human resources. As it bidding
up to come under the contract of NHS South West – Acutes to develop a Blood Tracking
System through which they can track the sources who can donate their blood when needed. For
an example, it keeps tracking the blood banks, employees, patients and other people who are
willing to donate their blood for a noble cause (Keough, 2015).
Core competences – "Technocrazy Software" is working on Blood Tracking System
which is its own kind of distinct project. There is less competition in the market because this is
an innovation which is adopt by a few companies or hospitals to track a medium of blood.
Although there are several other competitors exists in the market who are working in the same
field but it is about NHS which provides free of cost treatment to the people. It is also working
for human well being and that's why "Technocrazy Software" is putting effort to develop more
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effective app. So that it can give a better service to the needy ones without facing any issues as
the other apps are doing.
Porter's generic strategies
It has three strategies that can be applied on any size of an organization. "Technocrazy
Software" can adopt any of these three strategies that are focused on broad and niche market to
attain the customers attention (Moseley, 2013). These strategies are given below -
Cost leadership – The core purpose of the cost is to gain the competitive advantage
which can be attain through increasing sales of the product. It can be achieved in two ways such
as reducing the prices in order to increase the profit but charging an average price from the
customers. On the other hand, it can use to increase the market share through selling an app on
the lowest price. In this situation the firm is still making a profit because of the reduced cost of
the product. "Technocrazy Software" can opt any of these cost leadership strategies to target a
broad segment of market where it can earn profit and increase the revenue.
Differentiation – In this strategy "Technocrazy Software" seeks to make its software and
apps unique in some instance. Differentiation is concentrated on making a product discreet from
other with some special attributes which are valued by the customers and company itself.
"Technocrazy Software" can identify the needs of its clients so that it can provide them a better
solution of their problems. The customer can pay the premium price for fulfilling their
requirements and render an app according to their needs (Chapin, 2012).
Focus – This strategy is used to emphasize on niche market segment to gain the
competitive advantage. "Technocrazy Software" is pivoted on the narrow marketplace in which
the company can provide the products on the basis of two variables such as the cost advantage
and differentiation. The company can adopt one of the two aspect through which it can gain the
profit in the targetted market area. For an example, "Technocrazy Software" can develop Blood
Tracking System with a special feature that use to track the sources of blood through GPS
(Global Positioning System) and it also stores their information for the future use. It's customers
are the hospitals and other institution which are working for the human well being such as NHS.
So it will be help for such organization and because of these attributes in the tracking system it
can also serve the best to the target customers.
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(Source : Porter’s Generic Strategies, 2018)
"Technocrazy Software" should opt for differentiation focus strategy through which
can attract more customer as it is offering the best suitable solutions for their apps and software
that are valuable for them (Mason, 2015). For this, they can pay the premium price against the
attributes which are incorporated with the app and software.
PEST analysis
These factors are beyond the business organisation but has a significance impact on the
organizational activities and that are given below -
Political factor – "Technocrazy Software" should analyse the political condition of the
country where it is seeking for the expansion. As these factors affects the business of a company
because of the rules and regulations of the country. Brexit is one kind of political issue which
impacts on the small and medium business organisation which broadens the opportunities for the
growth (Beatley, 2014).
Economic factor – This is the most impactful element of external environment which
affects "Technocrazy Software". If a country has higher income, then it would be beneficial
for the company to expand its business in such country because the customers will also able to
spend in luxury products.
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Illustration 1: Porter’s Generic Strategies

Social factors – "Technocrazy Software" needs to recognize the purchasing behaviour,
interest and lifestyle target customers. As it helps to identify their nature of investment that
indicates that what are their perceptive to spend on the products and services. If they have higher
income, then they can purchase the products that can fulfil their requirements on premium prices.
Technological factors – These aspects are the most crucial factor that supports in the
growth of the business. As there are various competitors in the market who are capturing the
clients with the help of technology and that's why "Technocrazy Software" should adopt such
technologies that can assist them to attain the growth opportunities (MacLeod, 2013).
These are the key considerations that should be focused by "Technocrazy Software" in
order to grow with effective planning to capture the opportunities.
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
Ansoff's growth vector matrix suggests growth for a business and product on behalf of
existing and new market and goods as well. It has a four strategies that are given below -
Market penetration : It needs an immense strategy to enter in a market where same
products are already available. This is difficult to acquire a position in the market with the same
kind of products. In order to penetrate in a market "Technocrazy Software" needs to promote the
company through various ways such as advertising, sales promotions, competitive price
strategies and so on. The firm can apply aggressive promotion because it have to increase the
market share with a combination of all of these market penetration strategies. It will raise the
sales of the company because the firm will be visible to its target market and customer can reach
to it easily.
Market development – In this strategy "Technocrazy Software" can establish a new
market with existing product. The firm can sell present products in the new country where it can
find a opportunities to enhance the profit (Li, Mobin and Keyser, 2016). "Technocrazy
Software" can provide its software and app development services through launching a website in
a new country to target new customers.
Product development – This is one of the most crucial strategies which is used to
introduce a new product in the existing market. "Technocrazy Software" can conduct a research
to identify the needs and requirements of the customers in order to develop such software and
apps that can appeal to the target market. It will help the company to know the insights of the
market that aid to support them in innovation of their existing software with additional features.
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This will introduce a unique attribute that can capture the attention of the people and remain in
the competitive market.
Diversification – "Technocrazy Software" can gain the competitive advantage by
adopting this strategies. Diversification is the most risk taking strategies but at the same time it
can be game changer because when a business enters into a new market with a new product it
has equal chances to gain and lose. In order to escape from the loss "Technocrazy Software"
should be prepare a perfect strategies to enter in the new market and the product should be quite
different from other. So that the firm can augment its profit in new marketplace (Goodfellow,
2013).
"Technocrazy Software" can attain the opportunities by applying any of these strategies
that can incline the profit and revenue of the firm.
(Source : Ansoff Matrix, 2018)
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Illustration 2: Ansoff Matrix

TASK 2
P3. Assess the potential sources of funding available to businesses with benefits and drawbacks
Finance plays a vital role for any organization because it aids to make a smooth workflow
of activities and operations. It is required at every stage of a business from the beginning and end
of a project. "Technocrazy Software" is bidding to get the contract from NHS South West –
Acutes, which is developing a Blood Tracking System. There is requirement of at least £100k to
grab the project from NHS South West – Acutes project but “Technocrazy Software" has only
£20k . Therefore, company needs £80k in order to invest on the system so it can borrow the
money from various financial sources (Lewis, 2013) . The remaining £80k will be used to
manage the entire project to develop a Blood Tracking System such as human resource, software,
apps, machinery and equipment. It will help to deliver the best product to NHS. There are
various funding sources that can provide loan to the "Technocrazy Software" in order to attain
the target but all of these has some benefits and drawbacks these are mentioned below -
Angel Investment – "Technocrazy Software" is seeking for the small amount of
finance and angel investor can be one of the best way to raise funds. As these are the people who
invest in the business to gain the higher rate of interest. They hold an equity in the company
against the loanable amount and if they do not have the amount then it provide from their group.
Benefits
 It is less risky than debt financing.
 The business does not need to pay back the loan if the firm gets fail.
 It provides contact within their group to get the investment.
Drawbacks
 The angel investors has the control over the business and the owner loses the authority on
the company when it fails.
 They participates in the organisational decision and demands for the profit while running
a company.
Bank loans - This is the most conventional mode to borrow money to invest in the
project. The entrepreneurs can lend the money from any nearest bank branch and the bank can
can approve the loan after some formalities (Lu and et. al., 2013). There are various options that
can be opted by the people to return the amount to the bank. The entrepreneurs needs to be return
the borrowed amount with a particular rate of interest.
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Benefits
 Banks has realistic strategies and clear plan to pay back the amount.
 The borrower can choose the payment mode and time duration of investment according
to convenience (Beatley, 2014).
Drawback
 Banks has strict rules and regulations to approve a loan that takes a lot of time for the
sanction.
 The entrepreneur cannot delay the instalments because it will create a burden on the
borrower.
TASK 3
P4. Design a business plan for growth that includes financial information and strategic objectives
"Technocrazy Software" is preparing a business plan which is essential to gain the
competitive advantage and sustain in the market for long time. There are several things which are
essential to be included in a business plan because every firm is originated with a mission and
vision (Sousa and Pinho, 2015). In order to sustain in the long run it needs to prepare a budget
plan that can support the organizational activities as well as it increase the profit of the firm.
Business plan for "Technocrazy Software" is stated as below -
Mission – "Technocrazy Software" came in inception with a mission to develop
innovative software and apps that can be beneficial for its clients and help them to enhance the
profit.
Vision – "Technocrazy Software" is emphasizing on its strategies to get the reach out on
the peak in the software industry. It is looking forward to be one of the renowned organization of
software and app development.
Objectives – The core objective of "Technocrazy Software" is to raise the profit and
revenue each year so that the company can gain the competitive advantage.
Segmentation – As "Technocrazy Software" is a small company and it is putting efforts
to reach to the niche market by applying segmentation strategies (Lu and Yu, 2014) . The firm is
looking for the opportunities to work with education, corporate and health sector institutions
which wanted to adopt technology across a particular geographical region.
Targetting – "Technocrazy Software" is targetting to the various institutions which
wanted to grow with time and make their work smooth with the help of technology. There are
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various sectors which wanted to enhance their productivity with technology such as hospitals,
construction companies and so on.
Positioning - "Technocrazy Software" is seeking to maintain a place in the market but to
attain its position the firm needs to use aggressive promotion (Sarver, 2015). So that it can get
the exposer among the targetted audience. There are numerous promotional activities that can be
adopt by the company in order to gain the business and sustain for a long run.
SWOT analysis
It refers to the internal strength, weaknesses, opportunities and threats of "Technocrazy
Software". It support in decision making process of the firm because it can give hike to the
business. The SWOT analysis of "Technocrazy Software" as follows -
Strength "Technocrazy Software" is a software company and it has extraordinary staff
who has the best knowledge in their field.
 The company is aware about the changing trends and that's why it provide support for
the benefit of clients.
Weaknesses
 The firm has less funds to invest in projects.
 It has limited manpower who actually works on the projects.
Opportunities
 The firm can expand its business in the new marketplace where it does not exists.
 It can attain several large projects from the medium and giant organization that can
support to expand the business (Eddleston and et. al., 2013).
Threats "Technocrazy Software" is a new company that's why it is difficult task to get the
customers in the initial phase. As there are already renowned organisations exists in the market.
 There are several giants in the market which is the biggest threat for "Technocrazy
Software" because customers are already aware about them. So it is next to impossible
for the company to survive in the marketplace against the existing organisations.
TASK 4
P5. Assess exit or succession options for a small business explaining the benefits and drawbacks.
There are several exit and succession strategies for small business that should be
considered by the entrepreneurs. These strategies can be adopted by the people when it are
seeking to exit or handover the company (Keough, 2015.
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Exit
Liquidation : This is an important strategies to exit from the business. If can be opt by an
individual when there is no hope to recover the things. The firm can be convert in liquid form
through selling out the assets and rights of the company. After liquidation the firm will be
demolished and the owner will be set free from all of the liabilities.
Benefits
 The owner can pay off the all debts and will not have any due payments that will be paid
in the future.
 Only the machinery, equipments and other assets will be sold but building and land will
be acquired by the owner only.
Drawbacks
 The business reputation will be vanished in the marketplace.
 Assets are undervalued at the time of liquidation.
Succession
Joint venture – It is an agreement in which two parties agrees to combined the business
activities (Moseley, 2013). Both parties shares equal rights to take the decision and invest in the
projects so that the business can grow in an effective manner.
Benefits
 Joint venture minimizes risk factors for one company because both firms are equally
responsible to share the risk.
 The companies can attain joint investment because of equality in the decision making.
Drawbacks
 It has complex management because of the involvement of two parties.
 Joint venture can be a cause of financial and organisational risk for the involved parties.
CONCLUSION
From the above report it can be concluded that a business should try to plan to attain the
growth opportunities. In order to expand a business it should identify the market environment
through various strategies such as Porters generic strategies and Ansoff's matrix. These are
strategies which help to recognize the growth possibilities with different perceptive. The firm
should prepare an effective plan to run a business in an effective way and to sustain for a long
run.
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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.
Keough, S.B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Moseley, M.J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
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.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
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.
Goodfellow, T., 2013. Planning and development regulation amid rapid urban growth:
Explaining divergent trajectories in Africa. Geoforum. 48. pp.83-93.
Lewis, W.A., 2013. Theory of economic growth. Routledge.
Lu, C and et. al., 2013. Driving force of urban growth and regional planning: A case study of
China's Guangdong Province. Habitat international.40. pp.35-41.
Sousa, S. and Pinho, P., 2015. Planning for shrinkage: Paradox or paradigm. European planning
studies. 23(1) pp.12-32.
Lu, S. and Yu, S., 2014. A fuzzy k-coverage approach for RFID network planning using plant
growth simulation algorithm. Journal of Network and Computer Applications.39.
pp.280-291.
Sarver, D.M., 2015. Interactions of hard tissues, soft tissues, and growth over time, and their
impact on orthodontic diagnosis and treatment planning. American Journal of
Orthodontics and Dentofacial Orthopedics. 148(3). pp.380-386.
Online
Porter’s Generic Strategies, 2018. [Online]. Available through <https://research-
methodology.net/porters-generic-strategies/>
Ansoff Matrix, 2018. [Online]. Available through <https://www.smartdraw.com/ansoff-matrix/>
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