Unit 42: Strategies for Business Growth and Financial Planning Report

This report focuses on business growth planning for Aggregated Telecom (8ell), a telecommunications service provider. It begins by identifying key considerations for evaluating growth opportunities, including competitive advantages and Porter's Generic Model (cost leadership and differentiation strategies). The report then applies Ansoff's growth vector matrix to explore opportunities for market penetration, product development, market development, and diversification. It examines potential sources of funding for businesses, discussing their benefits and drawbacks. A business plan for growth is presented, incorporating financial information and strategic objectives. The report concludes by exploring exit or succession options for a small business, explaining the benefits and drawbacks of each, providing a comprehensive overview of strategic planning for sustainable business expansion.

UNIT42 Planning for Growth

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Key considerations for evaluating growth opportunities....................................................................3
P2 Opportunities for growth applying Ansoff’s growth vector matrix.....................................................7
TASK 2.......................................................................................................................................................8
P3 Potential sources of funding available to businesses and benefits and drawbacks of each source......8
TASK 3.....................................................................................................................................................10
P4 Business plan for growth that includes financial information and strategic objectives.....................10
TASK 4.....................................................................................................................................................12
P5 Exit or succession options for a small business explaining the benefits and drawbacks...................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Growth planning is strategic business activity which allows entrepreneurs to plan for and
measure organic revenue growth. This enables organizations to focus its limited resources on
focused attempt to react to business changes brought on through digital disruption as well as
differentiate themselves from competition.Every business, from the beginning to the end, relies
heavily on planning. Every successful firm focuses on the day assessments of its business
strategy in order to forecast future development (Baldassarre and et. al., 2020). Small businesses
must first assess their current performance before developing policies and plans which will help
them grow in future market.Every business strives to improve its brand image in
the marketplace. To achieve this, the organization must adopt and also develop proper goals to
ensure that the entire process runs smoothly. With the aid of this, firm can simply increase its
profitability in the marketplace.The current report is related to Aggregated Telecom (8ell) and
this company provides the effective communication services to other firms in UK. In this report
will be discussing about the Opportunities for growth applying Ansoff’s growth vector matrix.
There will be identified the Potential sources of the funding which available to businesses and
benefits and drawbacks of each source.
TASK 1
P1 Key considerations for evaluating growth opportunities
Aggregated Telecom (8el) is a small entity that offers telecommunications services to
individuals so that they may communicate with one another. Its major purpose is to achieve its
business aims and objectives in a reasonable amount of time. Growth possibilities aid in
enhancing an organization's productivity and also profit margins.Planning for growth enables
businesses to deploy resources efficiently in response to changes in the external environment
caused through digital disruption as well as to separate themselves from competitors. Planning
assists small businesses in gaining more market share and increasing income in a short time. This
is critical for Aggregated Telecom (8el) to recognize both internal and external elements in order
to grow their business. Planning is vital and beneficial in completing activities in a methodical
manner in order to obtain greater growth chances (Clifton and et. al., 2020). With assistance of
this, a corporation may achieve specific targets within a certain time frame.Implementation of
advanced technology supports in the development of small businesses and provides this

organization with options to deliver excellent telecom services. In context to this, growth
opportunities are available for the Aggregated Telecom (8el) given below:
Competitive advantage
In compared towards its strong competitors, a corporation wants a more favorable
position in order to make profit. Aggregated Telecom (8el) is required to develop an effective
telecommunications plan in order to connect with a larger number of individuals. This will be
beneficial in attracting a big number of customers to company and successful in gaining a
competitive advantage for the organization.
Porter's Generic Model
This model explains how a company seeks a competitive advantage throughout a certain
market area. The business's relative position inside the sector determines whether firm's
profitability is higher or lower than industry average.Porters' generic model was used by
Aggregated Telecom (8el) to show if a company's profitability is high or poor (De Bruyckere and
Everaert, 2021). In 1980, this model was created. A corporation can seek a few of two sorts of
competitive edge such as lower expenses than its competitors or distinguishing along its
customer-valued parameters in order to fetch higher price. A corporation can also select between
two sorts of the scope like focus or sector, with the latter allowing this to sell more products to a
wide range of market groups.The Porters' generic model explains how a company might get a
competitive advantage in a given market. This demonstrates the numerous options made in terms
of growth potential.
Cost leadership- Cost leadership refers to a company's goal of being the lowest-cost
producer inside its industry. Cost advantages can come from a variety of places, depending on
industry's structure. The quest of economy of scale, proprietary technology, privileged access to
raw resources and other considerations may be among them.If Aggregated Telecom (8el)
employs this method, this will assist to improve larger levels of profits through lowering prices
while charging estimated price of enterprise. Different companies use this kind cost leadership
approach to increase their market share by offering low pricing while yet making a decent return
on each service they provide. This serves as cost leader and aids in maintaining a competitive
advantage for a long period (Harrison, 2020).

Differentiation leadership- Business's Differentiation Strategy focuses on distinguishing
its goods or services from those of rivals. This approach covers a broad range of topics, from
complete product variety to distinct features inside a main product.Aggregated Telecom (8el) is
capable of developing unique services that set them apart from competition. This also aids in
obtaining a larger number of clients. This approach focuses on increasing durability, brand
identity, features and usefulness of their products all of which serve to increase the loyalty of
customers.
Cost focus-Aggregated Telecom (8el) may use it to focus on specific areas as well as
understand how the industry is developing; this will help them meet consumers' needs more
effectively. Under this cost-cutting approach, the corporation will offer low-cost services to a
specialized market. This will aid in the adoption of additional buyers from external market since
individuals are receiving services at lower prices (Honig and Samuelsson, 2021).
Differentiation focus strategy- In differentiation strategy, a company aims to be
distinctive from its business on a few key aspects that customers value. This chooses one or more
traits that several buyers in a given industry consider vital then positions on its own to address
those demands in a distinctive way. It is compensated for its rarity with premium price.Firms
employ this technique to target a corporation's niche market, e.g. markets with minimal rivalry
and targeted markets; a company's prior attention is on developing new and inventive goods.
Customers' brand loyalty as well as market goodwill are at the core of the differentiation focus
strategy.To keep ahead of the competition and increase market sales, Aggregated Telecom (8el)
must differentiate the goods and make them available at the reasonable pricing. Furthermore,
delivering low-cost networking services is quite advantageous to businesses.
Aggregated Telecom (8el) is pursuing a differentiation and cost strategy in order to improve
lower-cost, well-defined services for market clients. Cost leadership is used by businesses to
attract a large number of clients and raise customer awareness of the offerings (Kim and
Newman, 2020).
External environment analysis
This is a strategic instrument and technique for determining external examination
of environment that has an influence on a company's performance level. There is indeed

measurement of sector, competition analysis and environmental forces within external
environment. Its major goal is to identify the elements that have a negative impact on industry's
profit level.Its major goal is to identify the elements that have a negative impact on an industry's
profit level. The PESTLE analysis of Aggregated Telecom (8el) mention below:
Political factor: In today's political climate, the telecom business is fraught with dangers.
Every country's regulations and regulations are distinct from one another.Organizations must
adhere to all legislation and laws while conducting business in other nations as a result of this.
Customer feels that the government and service providers must treat data and the internet equally
(Lucarelli and Heldt Cassel, 2020).
Economical factor: The telecom industry is influenced by tax rates, inflation and interest
rates. Expenses have an influence on the costs of any plan offered to customers.The importance
of the economic aspect cannot be overstated. Different groups will strive to keep working hard
regardless of the amount of labour and money they have put in.
Social factor: Consumer preferences and wants are evolving on a daily basis. As a result,
this is the obligation of Aggregated Telecom (8el) to implement changes in its services and
effectively meet their requests. It will aid in attracting a big number of customers and the
company will get a competitive edge in the industry.
Technological factor: Nowadays age, current technology is required for businesses to
expand their corporate daily operations in a methodical manner. Aggregated Telecom (8el)
organization employs advanced technology in its operations so that individuals may easily
communicate with one another anywhere in the globe without experiencing network problems.
Legal factor:The telecom industry is impacted by legal issues such as monopolies, the
government and customers. Every country's legal system is unique. Aggregated Telecom (8el)
determines legal system of country before transferring telecom products (Luhtala and et. al.,
2021).
Economical factor: Climate change and global warming may have an influence on
telecom items and their ability to reach customers. In terms of employment, this is vital for
businesses to adapt. This is critical for a company to consider public opinion at the market place.
This will assist the organization in gaining a competitive advantage.

As a growth opportunity, Aggregated Telecom can look for various procedures for
expanding their business in foreign land. For example; Aggregated Telecom can use
‘partnership’ as a method for establishing their business in the initial stage of their expansion in
a new area.Partnership is tending to be a process where a formal agreement is signed between
two or more parties in order to manage and operatebusiness so that maximum share of profits can
be gained. Other than this, ‘franchising’, is the other method for expanding business. In this, an
agreement is signed between franchisor and franchisee. Basically, franchisor under certain rules
and regulations grants or license to another party i.e., franchisee. Franchising is said to be a well-
knownmarketing strategy for expanding the business. Unlike other marketing strategy, ‘Mergers
and Acquisition’, has come out to be a promising marketing strategy for most of the company,
because the respective company gets an opportunity to either mingle with similar company or
they can acquire a different company. Thus, organisation can use merger and acquisition
interchangeably as per the requirement. Now, after discussing about all three-marketingstrategy,
here come the analysation of which one is best. According to Aggregated Telecom, “partnership”
will be one of the best options because the success rate in this is maximum, and there is profit or
loss it is shared between two or more parties whosoever is involved in the partnership agreement.
P2 Opportunities for growth applying Ansoff’s growth vector matrix.
In a competitive market, businesses must preserve and expand their superior market
position. As a result, senior management must evaluate numerous possibilities and
prospects to develop the company's business by improving its goods. It contributes to the
expansion of the client base.Ansoff's growth matrix suggests that businesses are trying to create
based on new and existing goods in both existing and emerging markets. This provides a
framework to assist senior managers, managers and directors in developing corporate plans
for future. Aggregated Telecom (8el) employs the Ansoff matrix in its company for greater
development potential (Mazzarol and Reboud, 2020).This is a marketing planning technique
which assists businesses in identifying commodities as well as developing a market growth
strategy. This is excellent marketing-related strategy application that encourages an
organization's marketing strategy with its strategic direction underneath this strategy. This
method is beneficial in identifying growth prospects. Strategies involves in Ansoff’s growth
vector matrix are given below:

Market penetration- This is a successful growth strategy in which a firm attempt to sell
their current goods inside the current market with goal of increasing market share. Firm increases
revenues to existing customers or finds new customers without making any modifications to
offerings. Aggregated Telecom (8el) offers individuals with telecommunication services such
that they could quickly integrate with one another.
 Advantage:It may result in rapid market spread and acceptance of company product.
If product is inexpensive and of comparable quality to competitors' items, it should
swiftly expand into the marketplace and be acquired by people.
 Disadvantage: This is not always sufficient to decrease the price of a product as much as
you would want. Product development can be costly at times, and smaller companies
sometimes strain to generate enough just to reduce process and marketing costs.
Market development- In this case, a company sells its present products and services to
new markets. Market segmentation is useful for identifying new client segments. This entails
pursuing more market segments. If company's core capabilities are more focused on certain items
in a certain market area, this is a more efficient or stronger growth plan.Different tactics are
included in growth plan, like new distribution channels, price strategies, new geographic
markets and also new product packaging. Aggregated Telecom (8el) will use this to extend its
present offerings in the new market. This is beneficial in attracting a big number of customers to
a new market (Olesen and Hansen, 2020).
 Advantage:Getting new clients, improved revenue, and corporate growth are all positives
of pursuing a market development program.
 Disadvantage: The big threat of market development is that it usually necessitates
investment in development, whether in the form of additional facilities or in expanding
marketing activities to new territory.
Product development- As a result, the firm has a solid market share in existing market
and may launch new items and services for the expansion. If the firm's customer base is strong,
the product will grow properly. The Aggregated Telecom organization innovates its existing
offerings. Product development may be accomplished by investing in the research and
development of different products, as well as acquiring the rights to create additional items in
order to appeal to an existing market.

 Advantage:The key benefit of product creation is that it can assist a business and products
in maintaining power with their customer base.
 Disadvantage:The drawback of research and development is that it could be expensive
because services are allocated by the company's Research & Development division;
several trials and testing are also carried out.
Diversification- This is a hazardous approach that necessitates both product development
and market development. As a result, the corporation enters a market with a new product.The
company either buys or starts a firm which is unrelated to present market and product line.
Aggregated Telecom (8el) is small enterprise that requires efficient resource allocation. This is
critical for a company's sales growth levels to improve to reach a broader market and expand its
customer base.
 Advantage:A diversified portfolio approach exposes an investment to resources,
industries, and equities that the investor would not have been exposed otherwise to.
 Disadvantage: The major disadvantage of diversification is that it may reduce quality
products that may reduce the profitability level.
As per the culture of AggregateTelecom, diversification will be the most appropriate
growth opportunity because there are many companies who are already giving their best services.
Thus, focusing on diversification, along with the services and facilities the company will be able
to attract more and more customers.
TASK 2
P3 Potential sources of funding available to businesses and benefits and drawbacks of each
source
Each firm need sufficient funds to carry out its commercial activities, allowing this to
achieve market success. As a result, it is critical for a company to determine the best choice for
borrowing funds. Finance is critical for firm to achieve its objectives in the marketplace. In this
environment, the UK government has developed a number of methods and regulations to help
small businesses run more efficiently. Furthermore, the government provides funding to small
businesses so that they may run their operations smoothly. With support of this firm, they may
get a competitive edge in the market but also keep it for a longer length of time. Aggregated

Telecom (8ell) is a small firm that requires funding to operate (Rahmafitria and et. al., 2020).
There are some of the potential sources of funding available to businesses with benefits and
drawbacks:
Equity finance- This is way of raising new cash by selling a company's shares to financial
institutions and institutional investors. This is a crucial factor for corporate organizations whose
primary goal is to raise funds through selling company’s ownership. Since it is more
advantageous and favorable to the firm.
Benefits- The key advantage of this strategy is that this increases capital through
lowering the load on business members. This is beneficial in easing the stress of debt
repayment.The business incurs no extra investment strain as a result of equity financing; yet, the
negative is significant.
Drawbacks- The primary disadvantage is that revenue will be divided equally among
employees and employers. As a result, it raises the risk level inside the company.Raising equity
funding is difficult, expensive, and time - intensive, and it may divert management's attention
away from vital business operations.
Peer to peer lending-It is also practice of lending money to individuals or businesses using
internet platforms that connect lenders and borrowers. This is one of most prominent methods of
bank loans in which firm borrows money without relying on any organizations. Since it
eliminates the need for a middleman.
Benefits- This approach is regarded as a simple approach even though it is based on an
online program. This also includes a minimal interest rate (Yeniaras, Kaya and Dayan,
2020).Another challenge that a peer-to-peer network faces is efficiency. Because each machine is
being accessible by other users, productivity will decline as the number of phones connecting to
the network grows.
Drawbacks-One of the major disadvantages is that it provides less funding than other banks
and financial institutions.It is hard to restore the data because it is spread across multiple
computer systems and there is no centralized server. Because each system is independently and
maintains its own data, it is difficult to provide basic safety in a peer-to-peer connection.

Bank loan- One of most prevalent types of capital loans for businesses is loan. This offers
long or medium-term financing. In this case, the bank sets a defined time for loan such as 3
years, 5 years, or 1 year. Businesses and consumers alike acquired money from banks for a
variety of reasons.
Benefits-When compared to credit cards as well as overdrafts, bank loans are probably
the simplest alternative. This gives customers with tax advantages.Borrowing costs may be fixed
for the duration, allowing you to know the number of repayments all throughout loan's life.
Drawbacks-The biggest disadvantage of a bank loan is the repayment load, as well as the
inconsistent number of payments.Larger loans will have certain terms & conditions or
constraints that company must follow, such as providing quarterly performance reports.
Crowdfunding- It is a preferable alternative for businesses who have strong networks and must
retain trust and loyalty before beginning operations. Crowdfunding is a method of raising
finances or capital through enlisting the help of a large number of people to contribute monies to
a project's services and products in exchange for equity.
Benefits-This is a simple and cost-free method of generating funds. Investors may track
their success because their networks will aid to stimulate the brand. Because of the financing
procedure, it became one of their most devoted consumers.Pitching a concept or business online
may be a beneficial method of advertisement and can results in attention from the media.
Drawbacks- With intellectual property rights, crowdfunding cannot protect a company's
ideas. Companies make mistakes with rewards as well as returns, implying that they can provide
more than that to business as well as investors (Young, Rosenstiel and Henderson, 2020).It will
not automatically be a simpler task than more conventional means of raising capital.
TASK 3
P4 Business plan for growth that includes financial information and strategic objectives
It is considered as an important written document that explains how the company intends to
achieve its goals. Information on the budgetary, operational, and marketing aspects are covered
in this section. A business plan is created in order to launch a new business in a different path. It
could aim for improvements in marketing as well as impression among taxpayers, the greater

community, clients, and consumers. In this context, there are some aspects that help in
developing an effective business plan in order to accomplishing competitive success at market
place (Galland, 2012). All these are as follows:
Overview of company:Aggregated Telecom (8el) is a telecommunications company that
provides services and solutions to businesses in the United Kingdom. This company was
originally founded and is of a small size. It offers a voice over transmission control protocol /
internet platform as well as CallPort for the corporate sector. This company delivers a system
based on a security solution. Approximately 50 employees work for this company.
Mission:The primary mission of Aggregated Telecom (8el) is to link people all around the
world by innovating telecom services and solutions.
Strategic objectives:The main goal of Aggregated Telecom (8el) is to provide greater
performance while meeting established goals. It intends to increase its profit margin from 20% to
30% during the next three years. It is essential that goals be SMART, which stands for specific,
measurable, achievable, realistic, and time constrained. Another goal of this organization is to
increase profits and expand operations on a wide scale while staying within budget.
Product and services:Aggregated Telecom (8el) offer telecommunications-related services.
The major services that this company provides are network security and security solutions. It
also offers its services to other organizations in order for them to function better and engage with
customers and other divisions.
Internal analysis:IT is required to identify the strengths and weaknesses of Aggregated
Telecom (8el) company in order to evaluate the effectiveness of operations. This allows the
organization to work accordingly, attempting to eliminate its weaknesses while also gaining
more prospects. For this, company undertake SWOT analysis in order to evaluate internal
analysis:
Strength Weakness
• This organization has a large
consumer base and a strong market
reputation.
• There are a huge number of
competitors in the telecom sector,
• lacks the necessary resources to carry
out its commercial operations and