Report: Planning for Growth of Southern Business Technology

This report provides a comprehensive analysis of business growth strategies, focusing on Southern Business Technology, a UK-based telecommunications provider. It begins by exploring key considerations for evaluating growth opportunities, including resource analysis, core competencies, and the application of Porter's generic strategies (cost leadership, cost focus, differentiation focus, and differentiation leadership). The report utilizes PEST analysis to assess external factors influencing the business environment and employs portfolio strategies like the BCG model and product life cycle analysis. The assignment further evaluates growth opportunities using Ansoff's growth vector matrix (market penetration). It then delves into the sources of funding available for companies, discussing their advantages and disadvantages. A business plan is developed for the organization's growth, and finally, the report examines exit and succession options for small businesses. The analysis aims to provide a strategic framework for sustainable growth and success in the competitive telecommunications market.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key consideration for evaluating growth opportunities...........................................1
P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix..............5
TASK 2............................................................................................................................................8
P3 Sources of funding available for companies with its advantages and disadvantages............8
TASK 3............................................................................................................................................9
P4 Business plan for growth of organisation..............................................................................9
TASK 4..........................................................................................................................................11
P5 Exit and succession option for small business.....................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................14

INTRODUCTION
Planning is defined as systematic framework that manage entire business activities and
functions in appropriate way so that predetermined goals and objectives can be accomplished. It
consist various action plans and strategies which beneficial in operating business and perform all
tasks in better manner in order to get best possible outcomes. Planning is essential in achieving
growth and success because it defines set targets and arrange necessary resources as well as
provide guidance to accomplish it. Every businesses undertake appropriate plans for achieving
economies of scale and sustainability development as well (Brinckmann, J., 2010). This report is
based on Southern Business Technology which is a telephone systems and telecommunication
provider in the UK. This assignment will analyse key consideration for evaluating growth
opportunities and assess several methods for raising funds. In this develop business plan and
communicate for scaling up a business and achieve growth. It will assess the exit and succession
options for small business enterprises.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities
In the modern era, every business firms focusing on capturing market by formulating
appropriate plans and strategies that facilitate to achieve growth and success in well manner.
They carry out their business functions or activities and operate them effectively for generating
higher revenues or profits as well (Barbour, E. and Deakin, E.A., 2012). Company always try to
develop their size and wealth by utilising resources as it is essential in developing long term and
short term objectives that directly interlinked with organisational vision and mission. In present
time, tough competition can be seen in the market place and competitors are trying to enhance
reputations for surviving in competitive environment. Therefore, planning play vital role in
achieving competitive advantages in which they can adopt best promotional tools, modification
or new product development as well as utilise smart technology to perform entire tasks and work
wit effective manner.
There are required appropriate future plan for growth and success which can be possible
through carrying out research, investigations, surveys and study regarding particular market.
With the help of these, company can analyse competitors, customers choices and demands, tastes
and preferences and market conditions that facilitate to grab opportunities and achieve
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predetermined goals or objectives in better ways. These are essential in making decisions about
producing effective goods or services that can meet customers requirement and desired
expectations as well. On the other side, it is beneficial in taking leap in the market and attain set
targets which support in increasing brand values and reputation among competitors.
Resources: There are many resources are have by organisation like employees and
technological equipment’s which enables them to achieve their targets in successful manner.
Core competencies: It is considered as the combination of multiple resources and skills
have by organisation which provide competitiveness to their operations which helps to develop
distinctive identity in market.
There are defined some models and strategies that must be executed and implemented in
better manner to accomplish set goals. These are as followings:
Porters generic strategies:
It is best method for getting success and achieve higher growth as manager consider the
marketing strategies for identifying the various challenges and competitors so that effective plans
can be created. In this included four major components such as: Cost leadership: It is best strategy that company considered for achieving higher returns
on investments with help of setting best prices on their products or services (Grichnik, D.
and Kapsa, D., 2010). Southern Business Technology has decided to provide better
quality of telecommunication products or services at reasonable costs so that customers
can afford and satisfy their desired needs or wants in well manner. Cost focus: It is another best strategy where company make decision to lowering the
costs in small market segment so that targets can be achieved. Southern Business
Technology has considered niche market for understanding better to customers needs and
expectations (Burton, P., 2010). Therefore, they set low costs or prices on their products
and telecommunication services. they focus on building strong relationship among people
as well as targeted customers for achieving long term objectives. Differentiation focus: This strategy also adopted by various companies for the purpose
of attracting number of customers towards innovative as well as creative products. It is
essential ins differentiating products from other competitors so that customers can be
satisfied and loyal. Southern Business Technology can undertake this strategy for
modifying products so there is required to implement innovative ideas and creativity into
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practical form for enhancing productivity. Southern Business Technology is providing
different telecom services including telephonic services, mobile, phone systems, high
speed broadband connections and line rental at lower price which differentiated from
other competitors products.
 Differentiation leadership: In such strategy, company charge premium price over their
products by focusing on extensive market so that they can achieve competitive
advantages. They produce better quality of products or services and sell those in higher
costs with adding some unique features, extra values and many more. It is beneficial in
providing better experiences to the customers in an adequate manner (Chapin, T.S.,
2012). Southern Business Technology also can adopt this strategy but they have required
to analyse the market and achieve sustainability in the market investment. Some major
elements included in this such as better quality of products, promotional channels,
distribution networks etc.
Hence, Cost leadership will be suitable for the Southern Business Technology as they can
achieve competitive advantages with generating higher returns on investment in adequate
manner.
PEST Analysis:
This strategy generally used by marketers for the purpose of analysing external factors
and its impacts on the business activities which restricted in profitability and operations as well.
There are some elements of PEST such as: Political factors: In this factors, several rules and regulation are included that
formulated by the government of country. Therefore, it is necessary to consider such
legal rules and legislation by Southern Business Technology for the purpose of
implementing ideas and strategies in better manner (Christofakis, M. 2011). They must
be aware about legal policies and legislation for telecommunication sector that can
affects from various political factors and impacts as well. Company can achieve best
possible outcomes if company is stable otherwise they can face decline stage due to
unstable. Economic factors: In this considered those environmental factors that have direct
impacts on the company's profitability as well as sales turnover. It included critical
economic crises, fluctuation, inflation, growth rates and GDP of nation that can affects
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on the Southern Business Technology so, they have to cope up with some fluctuations
for achieving growth in the marketplace. Social factors: This is another factor that must be considered by the organisation
because it is associated with societal people and their tastes, fashions, trends, lifestyles,
and culture etc. Therefore, Southern Business Technology have to understand about
potential customers and their current tastes and preferences so that better products or
services can be produced to meet their requirements.
 Technological factors: In the modern scenario, technologies are being adopted by
various business organisation for achieving higher growth. Southern Business
Technology also focus on keeping up to date their tools or techniques so that
competitive advantages can be achieved in an effective manner (Papadaskalopoulos, A.,
2011). Company considered digital technology for running business operation and
functions which have positive impacts on the telecommunication services. customers
can easily interacts and get products or services at anytime and anywhere through
technology.
Therefore, It would be easy to attain set targets and grow business by Southern Business
Technology because PEST will support in analysing competition and targets customers. They
can find out various risks and threats through appropriate study of macro environment. They can
face different types of changes and challenges due to environmental impacts so it is necessary to
formulate effective plans and strategies for the purpose of achieving best results and outcomes.
Portfolio strategies – BCG Model
Star – In this, company can determine the growth opportunities for business development
and increase sales of particular products so that better image can be made into customers mind.
Every business firms try to capture market and create effective position among competitors so
that profits and revenues can be generated in an effective way (Eddleston, K.A. And et. al.,
2013). Southern Business technology can grab opportunities and increase goodwill among
targeted customers by satisfying their desired needs or wants.
Cash cow – In this situations, products generally remains constants where products do
not grow as well as stable but company have better market image and shares. Southern Business
Technology has opportunity to build good image among competitors and achieve higher growth
by considering appropriate action plans and strategies as well.
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Question mark – In this stage, company focus on creating various strategies and action
plans for the purpose of surviving from tough competition. They can face complex situations as
per the marketing images and reputations as products can grow and have effective growth but
minimum returns are getting by them. Therefore, Southern Business Technology are required to
conduct survey for analysing market trends, competitors, customers choices and situations for
creating better position.
Dogs – There is negative impacts of this stage as company can face critical circumstances
due to fall in sales, decline position and decreasing in profitability as well. In this, products
growth and market shares are poor that can affects on the company's success (Grover, B.E.,
2014). Therefore, it is required to consider effective strategy that facilitate to operate business
and its functions with well manner.
Product life cycle:
 Introduction stage: It is first stage where products are to be introduced and launched at
the marketplace. There may be find any lengthy process because it takes time in
generating growth. The reason behind this, as lack of awareness regarding particular
products or services.
 Growth stage: In the next phase, products generally started to grow and taking place on
customers mind by creating awareness among them. It can be beneficial stage for the firm
as they can develop their business and promote it in accurate manner.
 Maturity stage: in this phase, business has strong reputation and occupied better position
among competitors and achieved maturity stage. They have to maintain and manage their
position by formulating plan and strategies so that competitive advantages can be get.
 Decline stage: At this stage, company face various difficulties and complexities due to
declining business as they bear some losses as well as decrease sales or profits (Bokalo,
M. 2014). Company make decision and strategies such as sell out their business, mergers,
acquisition, take over and wind up from marketplace.
P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix
In the present time, Every organisation are trying to capture the market and achieve
higher growth. There is necessary to make appropriate strategies and actions plans for occupying
better position in the market place. Southern Business Technology is dealing in various
telecommunication services including telephonic services, mobile, phone systems, high speed
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broadband connections an line rental at lower price so that customers can easily consumes such
services and satisfy their needs in well manner. It is listed among top 100 SMEs in the region by
Themes Valley SME 100, United Kingdom. They also focus ons adaptation of various changes
and implement strategies with the help of Ansoff's Matrix. Some components of this model is as
followings such as:
 Market penetration: In this, company make strategy to sell their products and services
into existing marketplace. They try to enhance market shares and achieve growth by
using different promotional tools and techniques so that better outcomes can be achieved
(Greenway, K.J., 2014). Southern Business Technology is also focus on increasing sales
volume by modifying existing products and add some unique features, values that
facilitate in attracting more customers and satisfy their desired needs or wants.
 Market development – Company make decision to launch their goods or services into
new marketplace for the purpose of enhancing sales volume. It can be beneficial for the
organisation in attracting huge audiences and generating higher growth or revenues as
well. Southern Business Technology has opportunity to expand business in another areas
to provide better services at lower costs.
 Product development – in this, company focus on introducing new products into
existing marketplace. Southern Business Technology can grab such opportunities and
create better image among competitors with the help of coming up new featured products
or services to satisfy customers needs or wants.
 Diversification – In this, company focus on making strategies regarding diversify
business into other areas for satisfying customers desired needs or wants in well manner
(Hough, P. and et. al., 2010). Southern Business Technology always consider demands of
customers and introduce new products to fulfil their needs and requirements.
The best strategy for Southern Business Technology is market penetration and it will be
beneficial for management because organisation have appropriate knowledges about various
conditions and situation of current market. There may be wide opportunities to arrange and
manage available resources effectively such as:
Collaboration:
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In this defined the combination of two or more organisation that come together for
completing any task or objectives. It is closely related with cooperation in which appropriate
support has been given to them including financial, other resources, and technologies as well.
Mergers
This is an important method of collaboration in which small firms combine hand with
large organisation and collaborate with them so that best possible outcomes can be achieved
(Keough, S.B., 2015). Both companies merge by undertaking any particular agreement and come
together for a common purpose so that higher returns can be get. Advantages: This is beneficial for both organisation as they can accomplish targets as
well as achieve competitive advantages so that synergy can be maintained among them.
 Disadvantage: it has major impacts on business productivity that can be harmed by
merging. Employees may be dissatisfied and uncomfortable for working at another
environment.
Acquisition:
In this, large company make decision to acquire any small firms for the purpose of
increasing size and growth of the organisation. They can obtain resources, liabilities and assets of
other company to so that higher return can be get by the organisation. Advantages: This is best way to minimise the large competition and reduce its affects on
the business by acquiring such small firm in an effective way.
 Disadvantage: This strategy can create complexities and risks or uncertainties for
business because they share liabilities and assets so appropriate resources and funds
required to survive form various circumstances.
Joint venture:
There are defined various businesses who considered joint venture strategy for the
purpose of increasing level and size as well as growth of the firm (Li, Z., 2016). In this,
companies have to follow some legal; formalities and legislation to make an agreement. They
have to disclose their liabilities, past records, profits or losses and other assets for making joint
venture. Southern Business technology can undertake this for achieving success. Advantages: It is beneficial in launching new business by both parties as per the mutual
agreements or understanding. Profits and losses can be shared by them in effective
manner.
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 Disadvantage: people can face various problems and unsatisfactory while running
business operations. There may be arise nay disputes as well as conflicts between parties.
Company can achieve better growth and higher returns by formulating strategies that is
joint venture. It will be suitable in attaining competitive advantages by utilising available
resources in better manner.
TASK 2
P3 Sources of funding available for companies with its advantages and disadvantages
In every business organisation, finance is one of the important resource as it is known as
backbone of the company because without financial support they cannot run their business
activities and function (Mobin, M. 2016). It is necessary to have adequate funds and capital for
performing various task or work in an effective way for accomplishing predetermined goals or
objectives. Southern Business Technology is oldest company who focus on expanding business
at different area or location with the help of formulating effective plans. They have generated
their revenues around 4 millions Euros in 2007 to 9 millions Euros in the year of 2009 as per
the data. They worked hard and successful in making their name in Sunday Times Tech league
table. There are around 80 employees working who contributed more and put their efforts for
achieving growth and success. They focus on arranging funds to run business and its activities by
considering internal and external sources such as:
Internal sources:
Sales of assets: This is most common way to arrange necessary funds and generate
higher growth as in this, company decide to sell its some parts of assets for the purpose of
managing and maintaining funds so that company can run its operation without any interruption
(Keyser, T., 2016). Southern Business Technology can undertake this method for arranging
sufficient funds for providing effective telecommunication services to the customers. Advantage: company can make quick decision for funds arrangements as there are no
need to follow regulation and government procedures for selling internal assets of
organisation. They can save extra money or expenses such as interests or other premium.
 Disadvantage: There may be difficulties for small and medium enterprises that to sell
assets because of limited resources and other facilities.
External sources:
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Bank: This is very and approachable source for arranging and managing funds in well
manner. Small and medium enterprise can take loan from any other banks so that they can fulfil
their requirements within short time period. Southern Business Technology can undertake this
source for running their business without any delays and interrupts (MacLeod, G., 2013). It
would be beneficial in improving the business size and wealth so that better outcomes can be get. Advantages: It is bests method of collecting funds within as per the requirement of
business so that it can operate in smooth manner. They can gain best positive result and
higher growth so that company can achieve competitive environment.
 Disadvantage: The major drawback of this source is that company have to pay decided
interests to the bank as per the policies and terms. It can affects on the profitability which
can be restricted due to payments of interests on loan.
TASK 3
P4 Business plan for growth of organisation
In this defined an appropriate business plan that facilitate to achieve higher growth and
success in the future. Therefore, manager and directors have to focus on formulating better plans
and strategies so that they expand business at other areas. It is necessary to conduct research for
analysing problems, customers demands and competitors strategies for the purpose of getting
higher returns (Mitchelmore, S. 2013). Southern Business Technology can accomplish
predetermined goals by an appropriate plan and some major elements involved in this such as:
Mission: The mission statement of the Southern Business Technology is that provide better
telecommunication, broadband services and full speed of internet connection to customers for
satisfying their needs and desired outcome.
Vision: To provide better quality of products and services for building trust among customers.
Objectives:
The Southern Business Technology is providing various communication services and
deals in broadband connection, mobile, phone systems and other telecommunication services in
the market place and they charge lower price ons their products or services that customers can
easily afford and get.
SWOT analysis of Southern Business Technology:
Strengths:
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 Southern Business Technology is providing various kinds of products and
telecommunication services at reasonable price which facilitate to generate higher
revenues.
 In this firm, human resource play vital role in accomplishing targets as employees are
putting their efforts into various activities so that task can be completed in well manner
(Rowley, J., 2013).
 Company is known as to 100 successful SMEs firm that dealing in several products or
services so they have good reputation in the Themes Valley area.
Weaknesses:
 The major weak point of this firm is that lack of available resources and improper
management of that, it is responsible in not achieving particular goals or targets.
 The another weakness of Southern Business Technology is that they have insufficient
funds so they are unable to adopt various technologies and digitalisation within
organisation.
 Not so good image among large competitors.
Opportunities:
 there is biggest opportunities for Southern Business Technology as they can expand
business at other places so that size and wealth can be maximised.
 They can take initiatives for investing more funds so that productivity an profitability
can be enhanced and they can make decision about diversification of business as well.
 They can consider various strategies such as joint venture, mergers and acquisition
which is essential in getting positive results and more benefits.
Threats:
 The biggest threats of Southern Business Technology are strong competitors that are
available in the marketplace (Moseley, M.J., 2013). They have required better strategies
to survive among competitive environment.
 Changing environment and various macro, micro factors can be create threats for
Southern Business Technology so it is necessary to analyse particular market condition
or situations for developing business.
Marketing budget
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Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 40000 10000 12000 25000 10000
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
Interpretation: There can be compare between actual and estimated budgets as high amounts of
funds required for conducting different activities and achieving competitive advantages. Above
table mentioned the requirement of funds which is high than other years.
TASK 4
P5 Exit and succession option for small business
Every business firm several kinds of situations that can be related with success or failure
so, they always ready to face any circumstances or challenges and try to survive from that
situations in effective manner. Company can select best alternative for business success and exit
from market according to conditions (Pallagst, K., 2010). They always focus on formulating
effective strategies and better action plans that beneficial in achieving higher growth and
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sustainability. Southern business technology is dealing in various telecom services so they focus
on attracting number of customers and maximise wealth for the purpose of increasing market
shares. Manager of company always considered available resources and appropriate funds for
running business activities as well as allocate them among task to attain certain goals. Southern
Business Technology can consider following strategies for succession and exit as per the
situations such as:
Liquidation: In this, company make decision to undertake best approach that facilitate to
accomplish targets because they consider appropriate needs, desires and requirement of business
(Todes, A., 2012). It is associated with liquidation where effective plans and strategies are
required so, management focus on recovering and surviving from various circumstances. Advantages: In this, company can raise its funds by selling some physical and valuable
assets so that business operations can be run in more effective manner.
 Disadvantage: There is necessary to have better knowledges regarding assets values and
its proper amount while selling otherwise, company can face losses due to selling at
lower price.
Acquisition: In this, company decide to depart the business from marketplace when they
are in dilemma and complexities due to bearing more losses, failure of business and many other
uncertainties. They make decision to exit from market and evaluate particular assets or liabilities
to run business organisation. Advantages: It is one of the best method for facing any challenges and get better
outcomes for the business (Valler, D., 2012). It can depends on the situations and
current position of business at marketplace where they formulate strategy regarding
acquisition.
 Disadvantage: There may be difficulties for firm that to exit from marketplace and
other organisation have to analyse sufficient funds or resources while making decision
about acquisition.
CONCLUSION
From the above report, it has been concluded that planning play crucial role in
developing business and achieve growth in future. There are required adequate strategies and
action plan for generating higher revenues. Many of firms consider study of environment to
analyse the situations and conditions of the market. In this assignment, it has described about
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Southern Business Technology strategies for growth and how they plan for getting success. In
this considered Porter generic strategies, Ansoff's matrix, PESTEL analysis and many other to
accomplish set goals or targets. There are defined some sources of arranging funds to run
business activities and function including internal and external.
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