Business Growth Strategies for Southern Business Technologies

Desklib provides solved assignments and past papers to help students succeed.

Planning for Growth
1

Table of Contents
Introduction.........................................................................................................................................3
LO1.......................................................................................................................................................4
P1. Analysis of key consideration for evaluating growth opportunities and justify these
considerations within an organisational context................................................................................4
P2 Evaluate the opportunities for growth applying Ansoff's growth vector matrix............................5
M1. Discuss the growth of the options using a range of analytical frameworks to demonstrate the
understand of competitive advantage within an organisational context.............................................6
D1. Critically evaluate specific possibilities and pathways for growth, taking into account the risks
of each option and how they can be mitigated...................................................................................7
LO2.......................................................................................................................................................8
P3 Assess the potential sources of funding available to business and discuss the benefits and
drawbacks of each source..................................................................................................................8
M2 Evaluate potential sources of funding and justification for the adoption for appropriate sources
funding for a given organisational context.........................................................................................9
D2 critically evaluate potential sources of financing with justifies arguments for the adoption of
particular sources or combination of sources, based on corporate needs.........................................10
LO3.....................................................................................................................................................11
P4 design a business plan for growth that includes financial information and strategic objectives of
scaling up a business........................................................................................................................11
M3 Develop an appropriate and detailed business plan for growth and securing investments,
setting our strategic goals,strategies and relevant frameworks for achieving objectives..................12
D3 presents a coherent and detail's business plan that demonstrates knowledge and understanding
of how to formulate, apply and achieve .business goals successfully..............................................13
LO4.....................................................................................................................................................14
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks of
each option......................................................................................................................................14
M4 Evaluate exit or succession options for a small business comparing and contrasting the
prospects and making strong recommendations...............................................................................17
D4 Provide a critical evaluation of the exit or succession options for small business and decide an
appropriate course of action with justified recommendations to support implementation...............18
Conclusion..........................................................................................................................................19
References..........................................................................................................................................20
2

Introduction
In this report, we are analysing the tools and techniques of planning for growth in the
Southern Business Technologies. It is Headquartered in UK provides communication
services. Initially, we are evaluating the growth opportunities available in the market using
different researcher's models for our company to expand and also the evaluation of which
possibility is best suitable for the business. After the review and selecting the opportunity the
next step is to find and arrange the funds for implementations of the selected opportunity in
upcoming section of this report this evaluation is explained. The next question is arise after
arranging the fund is developing the plan for the business to start the process of
implementation of a project in next section after arranging the fund this process is explained
and at the end, the explanation of successful or compulsory winding up or exiting the
business is explained via different methods.
3

LO1
P1. Analysis of key consideration for evaluating growth opportunities and justify these
considerations within an organisational context.
It is important that a company should grow and develop. The company that is SMEs is a
private company, not a public company, means it only works as a private company and for
small industries. Southern Business Technologies is a SMEs company.
For generating new business opportunities here are some pointers for growth and
development of Southern Business Technologies
increases in financial and technical risk and increase the liability of the company. The
expansion of the company leads the growth and more profit for this organisation. For the
growth of the company, Southern Business Technologies have to ready to handle the
responsibility which is increasing with the growth in the company there must be good minded
employees who can provide the knowledge to the customer and can manage risk in the
companies (Love & Roper, 2015).
Employs should have excellent knowledge of technical work. The company should provide
training, guidance and experience to the employee's .the company should have understood the
customer need that what they want to buy or what they want to know about the company. The
direct competition analysis according to demand and purchasing situation. It is very
important to define supply of the product. There are some types of analyses that are direct
competition analysis, indirect competition analysis, analysis of some other industries etc.
4

P2 Evaluate the opportunities for growth applying Ansoff's growth vector matrix.
According to Ansoff here it shows four types of opportunities of growth that is
Market development – according to market development it targeting a new market or new
areas for the existing market .in this market seller's sale same product to the different people.
Product development in this market seller sells many types of product to the same
customers it like be different varieties, or repackage of old products.
Market penetration – in this market seller try to sell the same product to the same customer.
Diversification-in this market the company enters a new market with a new product in this
market the product development is required there are two types of diversification
Related diversification and unreeled diversification, in related diversification there was
potential energy to be, and in unrelated, there is no potential energy to be realised.
The matrix developed applying by mathematician and business manager (Kowalkowski, et.
al., 2015). By Ansoffs strategies, the Southern Business Technologies will be growing by
these four steps that are market development, product development, market penetration, and
the last is diversification.
5

M1. Discuss the growth of the options using a range of analytical frameworks to
demonstrate the understand of competitive advantage within an organisational context.
Example of Ansoff matrix can be taken. The competitive advantage means gaining profit
over the competitors by offering great consumer value by providing offers on the high-quality
product, services of the products is known as competitive advantage (Achtenhagen, et. al.,
2013) .in the competitive advantage Southern Business Technologies have to bring new
products with is competitors so that thy van more profit in their company by offering the
offers for the products with low rate and right products .the company get right margin with
more benefit In their company the company should launch the same product with different
function’s and techniques so that they can attract the customers through their product .it is
goo’s for the customer as well as sellers the company should provide facilities like online
selling, direct selling.
6

D1. Critically evaluate specific options and pathways for growth, taking into account
the risks of each option and how they can be mitigated.
In most of the cases growth is very important for the small enterprises as well as our
company are also SMEs. For Southern Business Technologies growth is very important in
enterprises. In SMEs strengthen is very important for small enterprises not only for the
owners but also for the stakeholders, trainers, and working employee since small enterprise
depends on the trust on each other between the employs and owners of the company. Some
enterprises must have slow growth so in the enterprises there must be a risk with the
companies, but most of the time they are successfully grown as they efficiently increase their
work. Risk-mitigating is the planning of process by developing actions and options to
forwarding opportunity and control problems to project objectives.
Risk mitigation is the process of go throughout the risk mitigation action (Achtenhagen, et.
al., 2013).
Risk, mitigations goes throughout the tracking identifying risk, identifying nee risk and
evaluating risk process. And get effectiveness throughout the project.
Some loans which can help us to mitigation risk are:
Avoid: this adjustment can help us by changing in the schedule, changing in the fund, and
technical requirements
monitoring: checking the environment in the company for changes nature of the company.'
7

LO2
P3 Assess the potential sources of funding available to business and discuss the benefits
and drawbacks of each source.
Growing or starting a small business, there is very much need for money. There are so much
of sources of financing that company can explore from the bank. The company can take short
term finance that bank can approve to the company (Christensen, et. al., 2016). Sometimes it
offers long term financing. There are advantages and disadvantages of finance that is short
term and long term finance. the benefits of funding is that it does not involve only ready cash
in hand in savings and checking out the accounts but also provides less liquid
investment
The best advantage of financing is that no interest charged like any repayment. Personal
finance is an easy and fastest way to score funding funds from investors and banks. Wealthy
individual and ventures capitals are another sources of financing for starting of the company.
For business or expanding the companies, it is enough that funding to funding of more
significant part of the company it covers all the needs of the business. However, financing is
the best way for the growth of the market. Bank loans are also a good source of funding of
(Christensen, et. al., 2016). It is normally easy to take lab from a bank, but the bank will
charge the interest and want repayment from time to time. Funding is essential for the small
business and organisation an excellent financial company have a more and more chance to
grow to finance is the vital need for the company to make a futuristic plan. Southern Business
Technologies can take loans from the bank and fulfil the needs go the company and
employees and decreases the expenses of the company. The first stage to growth goes the
company is financing.
8

M2 Evaluate potential sources of funding and justification for the adoption for
appropriate sources funding for a given organisational context.
A funding plan is a document to establish funding objectives and increase strategies to
achieve them. Generally, this plan is generating for growth of revenue and assets and other
financial problems for success funding plans make the objectives and goals by identifying the
key of customer attributes (Beltramello, et. al., 2013). A funding plans performs a best when
it's done in its regular bases once company can complete these financial plans there was no
problem in future the investors can also help for company growth from investing money for
the company business plans tells about the framework for the company and provides marks to
see the goals achieved by the company.
The investors are outliners of a business plan carefully and keep the company on the track.
Most of the things of a company depend on the commercial work of the company. For small
companies funding aid is very important because the low expenses of the company, provide
an excellent salary to the employs and trainers, provides technical facility there are more
things which relate to funding. The company have right financial resources (Beltramello, et.
al., 2013). A good financial company like Southern Business Technologies does not look for
small expenses that small companies think as much because big companies have already
excellent investors and useful financial services. Sometimes the policies of the company
should also depend on the financial system, and it will never be changed. if the company
make the plan before starting that how and where commercial will be used it is better for the
small companies the planning comes on the first stage of companies, and business the
company's owner should meet with investors bankers for the financial growth of the small
companies
9

D2 critically evaluate potential sources of funding with justifies arguments for the
adoption of particular sources or combination of sources, based on organisational
needs.
Equity, debt, debentures, retain earnings, working capital loans, term loans, letter of credit
etc. they are the sources of funds which can be used in different places or different situations
in the company. These all funding based on the ownership and control, period and sources of
generation. These funds can be used in starting of the business. It was the very tough part of
all the efforts there are some more sources which classifies based on different parameters.
There are many companies to select for finance (Zamberi & Xavier, 2012). The process of
choosing the right source fiancé provides the in-depth for every source of fund. In the
Southern Business Technology point of view there will be three types of loans that is a long
term loan, medium-term loan, short term loan. The small companies can take medium-term
loan or short term loan in the starting of the business because small companies cannot be able
to take long term loan immediately because it can't make repayment on time.
Go external business sources, and internal sources are the two type of the generational go the
capital. These all types of sources suit on the different requirement basis in medium-term
small companies can ace loans like debentures and bond, lease finance, hire purchase finance
and in short terms sources company can use trade credit, factor services, bills discounting ,
advance received from the customer , working capital and loans from commercial banks in
the short term loan small companies have more choice of investments in the medium term
financing is gore the 3-5 years and short term finance is the fiancé for the less than 1 year so
it depends on the company that what it has to select which year is suitable to the company the
as we discuss above that there are two sources; external and internal sources the internal
sources provides retains profits, reduction or controlling of working capital, sales of assets
(Bewayo, 2015). And external sources provide equity, debt from banks or mortgage.
10

LO3
P4 design a business plan for growth that includes financial information and strategic
objectives of scaling up a business
Every successful business regular review the idea for the growth of the market. Planning is
the key to every small business for the development of the company. It is very important for
the business to plan for the future of Southern Business Technologies. Southern Business
Technologies need to take a new step for the progress and identified the growth areas that can
be targeted.
1. There is much importance of on-going business: an on-going business plan is when big
companies and investors want to see our business plans before the invested money or before
funding .a a good idea should set the course of the companies.
2. Plan and allocate resources effectively: the business plan plays an important role in
allocating resources in the business effectively when we review our business plans and
growth strategy we should go throughout the allocating resources that how we are using
resources in our company.
3. Target to implement the business plan: in this s company should use the target like
specific, measurable and achievable, timely and realistic (Bewayo, 2015).
4. When and how to review a business plan: once we drew plans we should go to that work
done, and we need to continually go through the work of the business it is important to plan a
and kept mind that major events in your business targets that place in the market for example
competition consolidation.
It can be said that traditional business plans has strict set rules .the best ideas are dynamic
when we are going to thinks a good business plans that how to l=earn a business is trust and
truth in the industry. It is very important in all the activity that there were trust and
truthfulness in the companies.
11

M3 Develop an appropriate and detailed business plan for growth and securing
investments, setting our strategic objectives, strategies and relevant frameworks for
achieving goals.
The business has to plan the business strategy for the growth and development of Southern
Business Technologies. Make the frameworks for achieving objectives an organisation that is
growing with hope to sustain that growth and technology of the business of the company.
Although the main aim of a strategic plan is to develop a plan, strategic plan take out us to
learn about the development of the business to share its strength and weakness and discuss
critical issues of the Southern Business Technologies.
Need for strategic plan: maybe Southern Business Technologies can face a critical situation
in the future and changed the environment for the services and may be simple we to continues
a business plan strategy (Eddleston, et. al., 2013).
the need for hiring a planning consultant: This queue deserves careful consideration for the
strategic planning growth of the business plan of the company. A consultant can move us to
the excellent strategy and keep everyone on the track reducing the opportunity of
complaining and other types of unproductive behaviour.
12