Business Growth Report: Evaluating Opportunities and Funding Sources

This report provides a comprehensive analysis of business growth, focusing on the UK-based network equipment manufacturing firm, Britannic Technologies Group. It begins by analyzing key considerations for evaluating growth opportunities, such as potential, infrastructure, market, competition, leg...Read More

PLANING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body...................................................................................................................................1
LO 1.................................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context. .......................................................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................3
LO2..................................................................................................................................................6
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................6
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business............................................................................................9
LO4................................................................................................................................................11
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................11
REFERENCES..............................................................................................................................14

Illustration Index
Illustration 1: Ansoff's growth vector matrix...................................................................................4

INTRODUCTION
Planning plays a very crucial role in growth and development of a business entity. It leads
to the suitable rise incapability and improving of performance of an organisation. A good
planning will help in effective rise in effectiveness of the firm to carry out business operations
and thus facilitates a rise in core competency of the organisation (Hollander, 2018). For the
report, Britannic Technologies Group is been taken in consideration. It is a UK based network
equipment manufacturing firm. The report will emphasis on various opportunities and their
proper justification. Besides this, various growth measures are been identified using the Ansoff's
growth matrix. The potential sources of funding available and their benefits are been discussed
along with drawbacks. Other than this, a business growth plan is been included with financial
information and strategic objectives. Other than this, proper exit or succession options is been
discussed with their advantages and disadvantages.
Main body
LO 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
Various growth factors are been taken in consideration that will help in good rise in
capability and growth of a business enterprise on the wider scale. This factors will help in
effective rise in the capability and thus support a good rise in meeting of targeted aims and
objectives of the company in a better way (Wu, 2015). Other than this, these factors support the
firm to have a better market opportunities to connect with its customer base. It will aid in good
growth and development of business firm which supports a good relation with stake holders and
have a good market share. Some major key considerations that are been taken in thought process
which help in evaluation of better development opportunities are as follows:
 Potential of growth: the firm has to look after its potential to expand and evolve it
business activities to a wider range. This helps the company to draft a strategic plan and
follow it in order to gain a good control over a great range of business operations and
activities. For instance, the Britannic technologies group will evaluate its potential to
grow and develop to a greater extent that will help in drafting a growth plan for meeting
its operational requirements. Also, this assessment will support an appropriate increase in
efficiency of firm to meet operational requirements of the organisation.
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 Infrastructure: a good infrastructure facility will support a suitable increase in meeting
of high quality business objectives. It will support an effective management of business
functions and activities, that are been beneficial for the organisation to improve their
performance. It will help in effective taking of orders, following up of plan and carry out
manufacturing facility in order to maximise their growth and profit margin. For instance,
as the cited firm manufactures the networking equipments, the well established
infrastructure will help the business firm to improve their performance by developing
high quality services and products, that supports increase in customer satisfaction level.
Besides this, it will help the firm to identify the operating costs and function accordingly
(Fulong, 2015).
 Market for goods and services: A SME will look after the proper management of
potential and manufacturing of effective goods and services that helps in suitable rise in
awareness among people about the products and services developed by the business
organisation. This helps the firm to set a good price structure for the firm. For example,
the Britannic technologies Group will look after the better planning of business
operations and activities that will support a good rise in capability and thus, will support
cited business entity to improve the performance and gaining of a good trade relations
with its customers on a wider level.
 Competition and competitive advantage: this is the very crucial factor that is been
faced by an organisation when operating in market. The firm will see through the suitable
rise in the operations and meeting of targeted operations. A better competition will
determine the capability of a business organisation to perform in market. Other than this,
it will give rise to better research and development at firm, helping the firm to come up
with new and innovative products and services for its customers. For example, as the
cited firm is operating in the networking and IT sector which has the highest number of
companies which will possess the competitive risk for the firm. Thus, the firm has to look
after the better adoption and management of strategic plan for the firm (Pradhan, 2017).
 Legal consideration: the firm has to follow certain obligations and actions that will help
in suitable meeting of business ethics and etiquettes on a wider extent. Various employee
and work related operations are been required to be taken in consideration that will help
in proper following of business rules and regulations, that are been set by government
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and trade unions, in a very effective manner. The following of laws will also help in
improving the rules and regulations at the workplace. It will also help in development of
a legal framework within cited firm to improve their performance. For example, the
mentioned enterprise will see through it that its equipments and network systems don't
violate any legal obligation, that can lead to conflict and security threat for its clients
firm.
 Financial viability: the budgeting and monetary resources are also required to be
considered by a business entity for better developing of firm. The management of
organisation will look after the available funds and their proper utilization of available
resources. Majority of the economic resource will be spent on marketing, research and
development of new products, transportation of goods and services and training of
employees. Thus, in such case, the firm has to make a proper plan in order to consider
effective growth and expansion of business. For instance, executives at Britannic
Technologies group will look after the proper making of financial plan for the company.
 Technological limitations: the technologies are also required to be maintained within the
firm in order to handle the operations. As the firm works in technological field, this will
help in meeting of targeted aims and objectives. For example, Britannic Technologies
Group will look after the better adoption and implementation of the latest technologies
that will support a better expansion of business activities (Hollander, 2018).
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
The firm has to look after the effective assessment and utilization of opportunities of
growth. Hence, the proper implementation of Ansoff's growth vector matrix which will help the
cited firm in effective identification of the expansion opportunities of the firm. The Ansoff
matrix will support an effective management measure that will help in improving the core
performance of the business entity. The finding of the growth objectives and measures will help
the firm to handle the business activities to a greater extent. The evaluation of different
opportunities are as follows:
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 Market penetration: it is the effective setting up of the plans and operations that will
include the usage of existing product and services within existing market. This helps in
saving financial resources available within the firm. It is the approach to promote the
available goods and facilities and thus help in improvement of performance. It his
approach the revenue can be either increased or decreased, depending on the quality of
the offerings by the company. Other than this, it facilitates a proper selling and generate
a moderate amount of revenue of an organisation. Under this, the personal selling
strategy can be followed in order to increase its customer base (Wu, 2015). For example,
Britannic Technologies Group will follow this approach in an effective and significant
manner that will help in significant entry of the firm in an existing as well as a new
market. It will involve the usage of existing product range of the company to promote
their enterprise to a greater extent.
 Product development: This approach of Ansoff's growth matrix will help in effective
handling of the operations and evolving a better product and service that will help a
business enterprise to manufacture a new product or service for the existing market. It
will help in improving the core performance of the cited firm. The product is been
developed or been altered in order to meet the changing requirements of the customer
base. It involves a significant work by the research and development department of a
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Illustration 1: Ansoff's growth vector
matrix
Source: The Ansoff Growth matrix, 2018

business enterprise. For example, Britannic technologies Group will follow this strategic
growth method that will help the enterprise to increase the business operations and
activities that will help the firm to develop an effective product and service for its
customers. Besides this, it will help in gaining a good customer satisfaction level and
helps in good revenue generation (Floyd, 2015). Although, this approach is been used by
a business enterprise like the cited business entity only when the firm in financially viable
to carry out the research and development process.
 Market development: This approach of Ansoff's growth vector matrix will help the firm
to improve the performance of the organisation by developing the supportive
environmental and customer base in a new location for its existing product portfolio and
thus will help in effective growth and development of the business activities in a very
effective way. The selling of the existing products in a new market will only be possible
if the company has the good reputation in its current operational market. This will also
help in suitable rise in the revenue of the company and help the firm to have more
consumers for its products and services. For an instance, Britannic technologies Group
will follow this approach of Ansoff's matrix in order to expand its business activities that
are been performed by the firm to gain a good rise in the efficiency to meet the
operational requirements of cited networking firm and meet its customers expectations.
Other than this, the expansion measure under the market development will help the firm
to improve the market performance in a better way (Paterson and et.al., 2016).
 Diversification: It is the most critical approach that will impact the performance of the
business operations to a greater extent. It is an approach to launch a newly developed
product in a fresh market. This approach has the major advantage that it provides a
business entity a suitable advantage to be a market leader and dominate the sector by
being the first at trade place. However, it is a cost and time consuming approach and
needs deep rooted risk assessment in order to avoid or minimize the loss. For example,
the cited networking firm will use this approach by developing a new range of
networking equipments for the consumer in foreign market. This will help the entity to
not only get the proper and bigger customer base but also a chance to get the foreign
exposure that will increase the performance of the business entity on an international
level. Other than this, it has a higher risk factor (Ying, Chaolin and Xiaojiang, 2014).
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On the basis of these approaches, the firm can effectively expand its market, meet
customers needs and demands and have a good sustainability in market. Besides this, it will
encourage the company to develop high quality innovative products and services that will
support a good rise in the compatibility and thus will support a good rise in compatibility to meet
the operational requirements to facilitates a good strategic growth and development of the firm.
Other than this, it will help in effective growth and development of the business firm to a greater
extent.
LO2
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
In order to set up and run the business effectively, the firm has to see through the
effective funding and gaining financial resources that will support execution of various business
related activities and actions and will help in improving the performance of the firm to a larger
extent (Wynn, 2017). Different measures and actions for gaining the funds are been taken in
consideration by the business entity which thus help in suitable rise in meeting of business
operations and activities to a wider extent. The various sources, through which the organisation
will get the monetary resources will influence the firm in a big way. Some major resources of
financial help that can be considered by Britannic Technologies Group with their advantage and
disadvantages is as follows:
Personal saving and assets: this involves the effective utilization of the private
commodities and valuables that are been taken in appropriate thought process by the firm. The
personal savings and assets will be owned by the entrepreneur himself and thus will help in
proper handling of the business operations and actions to greater extent. This can be considered
as the primary or initial source of funding for the firm and thus will help in kick starting the
business activities by an enterprise (Li, Mobin and Keyser, 2016). Other than this, as the money
is been personally owned by an individual, it can be utilized accordingly as per the wish of the
entrepreneur. Besides this, the owner is not required to pay any sort of interest on the capital
owned and invested within the enterprise. It has following Advantage and disadvantages:
Advantages:
 It can be utilized as per the wish of the business owner or the entrepreneur to grow and
expand its business.
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 The owner is not required to pay the interest to anyone like the bank or credit firms.
 Also, as the money used and invested is personal, it is not required to be shared with
stake holders.
Disadvantages: it will have certain disadvantages too such as:
 If the loss occurs, the investor or business owner will lose all the belongings.
 It can't be used for the retirement account or for covering the bankruptcy charges.
 Gaining the immediate return from their investment is quite difficult and time consuming
process.
Investors: They are the major source of funding for a business organisation that will help
in suitable rise in the capability of a business enterprise. It is the best way to expand the business
operations and run a great deal of trade activities. Investors are the people who simply provide
their money to a business and wait for their returns to be gained in the form of revenue or profit
generated by the company (Beatley, 2014). They can also constituent a part in a company in
form of stake holders. Other than this, they provide the financial support a to a firm when in
need. They have following advantage and disadvantage.
Advantage:
 They are the active part in business and accessible source of finance for the company,
when in need.
 They reduce the risk of loss to be bear by the entrepreneur all alone.
 They help in business expansion and growth along with sharing of risks.
Disadvantages:
 They demand certain extent of control over business activities within a firm.
 They are required to be kept happy in order to consistently gain the investment in the
future (Ross and et.al., 2014).
 Other than the return of their investment, they are required to be provided with a small
share in company's profit and revenue, that is been gained.
Bank loans: the loans from the private banks are the another source of funding and
gaining the financial stability in market. For a SME like Britannic Technologies Group, it is an
easy way to secure the credit that helps in executing the business activities but for the larger
enterprise, they ask to leverage an asset like real estate infrastructure or inventory. They provide
the support when the expansion plan of the company is bigger. This will help in improving the
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financial condition and supports an enterprise to grow and develop the trade activities of the
firm. They are the most stable source of gaining funding. They have the following advantage and
disadvantage:
Advantages:
 It is a secure source of money to run the business activities.
 It helps in keeping the cash in hand while running the business activities, providing a
sustainability and to a SME or business enterprise (Mason, 2015.).
 They help in surviving the business in case of down period of the business activities.
Disadvantage:
 The biggest drawback that they possess is that even if the business is not working, the
entrepreneur has to pay out the interest on its loan.
 The inability to play the dues on time may lead to penalties and legal actions against the
firm
 The assets that are been leveraged by bank in return of loan are been take over by bank in
case of bankruptcy.
Governmental grants: As SME's and small businesses like Britannic Technologies Group help
in improving the economy of the nation. Hence, in this case, they are liable to get the proper
legal support that helps in the suitable rise of the operations and meeting of trade activities that
help in superior growth ad expansion of a business activity (Rudolf, Kienast and Hersperger,
2018). However, they are been given only on the home state or country level. They are the no
interest funds provided by the government for free, without any leverage or placing of asset.
Other than this, they help in good rise in expansion capacity of the firm. The governmental
grants have the following advantages and drawbacks:
Advantages:
 They are legalised, and valid way to get the funds for the business expansion.
 They help the companies to start up a new venture or to expand its business activities.
 They help the firm to get the firm according to their budget.
Disadvantage:
 They have many restrictions and are not available for every business type.
 It is based on the governmental budgets and thus, may alter from year to year.
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 Although being a government guaranteed loan, it is required to be pay back, no matter
how the business performs (Bridge and Dodds, 2018).
LO4
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
An effective business plan will help the firm to decide its business activities and generate
a good amount of revenue that will further help in its good expansion and meeting of business
operations that are been taken by the firm in order to improve its trade activities and hence will
support a good growth and development of the firm. The business plan for Britannic
Technologies Group will involve the following components:
Executive summary:
The business plan for Britannic group will help in suitable rise in the effectiveness of the
firm that will facilitate its expansion and growth on a higher and effective way. The business
plan will cover the issue of expansion of its trade which can be attained by effective business
strategies that are been followed by the firm (Lê and et.al., 2017). The market is good for the
networking and digital technologies but the firm is susceptible to face a stiff competition due to
presence of many other firms in the same field of operations. At present the firm has the good
financial stability that helps the firm to improve its performance and thus leads to its expansion.
Business description:
Britannic Technologies Group is one of the leading SME of UK that is working in
communication and networking manufacturing sector. The company provides the tailored
solutions to their clients for their communication and networking issues. The firm has the work
strength of 69 employees. In previous year, the company had the turnover of about £9.51
million.
Market analysis:
As the firm is operational in the technological and IT equipment sector, it has the major
market in home as well as on international level. The development of technological hubs and
increase in networking solutions, the company has an open trade place to operate and expand its
business activities that will help in suitable rise in effectiveness and efficiency of the firm to
perform business activities (Ward, 2016). In the current scenario, there is a huge need and
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requirements of the networking tools and gadgets. Thus, in this case, the cited business entity has
a good opportunity to grow.
The key customer base of the organisation will be the firms that wok on networking and
IT services. Besides this, other customer base is also included. In the future, the company can opt
for developing the networking tools and gadgets in the future to improve its performance and
carter larger number of customers. However, the competition it has to face is very harsh. As
more and more companies are entering in these business segment, the cited enterprise has to
think of alternative technologies or develop some innovative product or services, in order to
maintain its sustainability in market place (Husain and et.al., 2016).
Market strategies: In order to expand its business, the firm has to improve the performance and
meeting of the targeted goals and actions will help in suitable rise in the handling of the business
operations that will facilitate a good rise in its effectiveness. The Britannic technologies Group
will look after different strategies as per Ansoff's growth Vector matrix can help the firm to
expand its trade activities. Various marketing approaches can be taken in consideration by the
firm that will support a good rise in capability of the firm and increase its market share by
promoting its products and services. The strategies which are meant to be afforded by the
company in order to be effectively followed by the firm.
Competitive analysis: the major purpose behind the competitive analysis is to determine the
strength and weakness of its competitors in order to make the suitable strategies. The
identification of drawbacks in the competitor's strategy and help in developing a new one to enter
in a new market. Beside this it helps in identification of limitations that can impact the running of
business and thus help in finding appropriate solution. In order to have a good competitive
assessment of its rivals, the firm has to recruit more employees to perform the analysis and
develop a good contacts with its suppliers to improve the performance (McRae, 2016).
Operations and management plan: this will involve the proper assessment of the roles and
responsibilities and proper allocation of resources and funding in order to carry out the business
activities and operations performed by the firm. This helps the management of firm to effectively
divide the tasks or roles and responsibilities within the firm in an effective way.
Financial factors: in order to execute the business operations in an effective and significant
manner, the proper management of the financial resources will be carried out that will help in
proper rise in effectiveness and thus facilitates the operations and actions (Hess and Sorensen,
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2015). It supports in suitable rise in efficiency of business entity to carry out the trade related
operations in an significant manner. Various sources of funding ad their feasibility will be
evaluated and then the further strategy will be decided by the firm.
LO4
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option
Various exit or succession options are been taken in consideration by the business entity
that will help in good rise of various business activities and actions which will help in superior
growth and meeting of business operations on a larger level. The exit or the succession process is
been carried out by the firm when the business owner face difficulty or is unable to successfully
run the trade activities followed by firm. It will help it to improve the business performance and
thus facilitates an increase in significant market position for the company. Besides this, the exit
is a beneficial measure for the business entity when the company is on verge of failing or bent
bankrupt (Gunder and Hillier, 2016). Some major exit or succession options that will be followed
by Britannic technologies group with their advantages and disadvantages is as follows:
Liquidation: it is a sell all the asset strategy that will helps the business entity to get the proper
finance and monetary help in case of failing of trade activities. It is followed when the firm don't
have any other asset to sell. It helps in regaining the invested cost that is been implemented by
the business owner to start the business. Sometimes, it involves the selling of a business as a
whole. Its has following advantage and disadvantages:
Advantage:
 It is a very simple approach to follow.
 The business operations and actions can be easily executed finally for the good growth of
entity again.
Disadvantage:
 It is not a fruitful method to get the complete investment as a return and the profit are also
not regained (Kerzner and Kerzner, 2017).
 The disposal of assets can be a big issue that can impact the goodwill and business
relationship of firm in an adverse manner.
Initial public offering (IPO): it is the process of selling business to public. But its is a rare
condition and is been very less followed by a business operation. Also, it is dependent largely on
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peoples perception and the business conditions that are required to be booming and supportive. It
basically devalues the company. However, it helps the enterprise to sustain in market and run its
business operations and activities. It needs the suitable market environment in order to make it
feasible. It has following advantages and disadvantages:
Advantage:
 It helps the failing business operations to operate in market without being affected by the
processes (Zhou and et.al., 2017).
Disadvantage:
 It requires proper environmental and supportive condition to sell the business to public.
 It is majorly dependent on peoples perception towards the business entity.
 The business owner has to face tough pressure from the investors and stakeholders and
financial analyst.
Selling the business to employees of firm: this is the approach of firm to sell out its business
entity or a part of it to the candidates and employees. It is followed by the companies which don't
have a person for the succession. This helps in maintaining the functionality and the corporate
culture by the firm. Besides this, the business activities are not required to be altered and
provides the legacy ad business operations. It also involves the effective reward management.
This approach has following advantages and disadvantages:
Advantages:
 It is a limited approach due to diligence.
 Reward management for long term support of employees towards the firm, even in case
of failure.
 This approach promotes the business independence and better rise in trade activities
(Whelpton, Campbell and Patterson, 2015).
Disadvantage:
 There is a limited accessibility of management within the firm which can affect the price
and terms.
 Vendor can take back the proposal of selling the firm.
 Failed purchase attempt will impact the business performance and morale of the
employee's.
CONCLUSION
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Thus, this can be concluded on the basis of the firm that the effective handling of the
business activities can be carried out using the proper planning of business operation by a firm
like Britannic Technologies Group. This will help in suitable rise in handling of the trade
activities and operations on a wider scale. The report covered the details of various growth
opportunities and consideration. Besides this, various growth strategies is been evaluated using
the Ansoff's growth vector matrix analysis. The potential and appropriate sources of business
funding and their benefits and drawbacks are been evaluated. A suitable business plan is been
developed for the cited networking firm including the financial strategies and different exit or
succession strategies are discussed with their advantages and disadvantages.
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Online
The Ansoff Matrix, 2018. [Online]. Available through:
<https://www.executestrategy.net/blog/the-ansoff-matrix-helps-organizations-grow/>
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