Planning for Growth: Southern Business Technologies Report

This report focuses on planning for growth within Southern Business Technologies. It begins by identifying key considerations for evaluating growth opportunities, including competitive advantages, core competencies, resources, other business strategies, and capabilities. The report then applies Ansoff's growth vector matrix, exploring market penetration, market development, product development, and diversification strategies. It delves into potential funding sources, outlining their benefits and drawbacks. Furthermore, the report includes the development of a business plan and assesses exit or succession options for a small business, explaining the advantages and disadvantages of each. The report provides a comprehensive overview of strategic planning for business expansion and sustainability.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. key considerations for evaluating growth opportunities.......................................................1
P2.opportunities for growth applying Ansoff’s growth vector matrix........................................3
TASK 2............................................................................................................................................5
P3. potential sources of funding available to businesses and their benefits and drawbacks .....5
TASK 3............................................................................................................................................7
P4.Business Plan.........................................................................................................................7
TASK 4..........................................................................................................................................10
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option. ........................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is a process which includes considering all activities which are necessary for
achieving desired goal. It includes creating and maintaining a plan that comprises of many
aspects one of them is psychological that needs conceptual skills. There are even many couple
of test for measuring the capability for planning as well. It is known to be a fundamental
property for intellectual behaviour. There are many processes which are involved and are
regarded as essential for multiple of occupations. Every field requires planning which facilitates
a firm to accomplish all the goals and objectives in limited time period. The effectiveness and
efficiency of a company gets boost up with a great planning that leads to run smooth business
activities (Scarborough, 2016). It is an essential part in the techniques which are related to
project and time management, also considered as preparation of a sequence that includes all the
action step, adopted to accomplish certain aim. It act as a map that provides guidance for
operating every task accordingly and syncing it with other in a coordinative manner. Also,
individual gets to know about related progress by providing measurable standards.
In the following report, there are many aspects which have been included such as key
consideration for growth options, sources that provides funding and their related implications in
business. An effective business plan has been discussed with clear strategic objectives; along
with this existing strategies in Southern Business Technologies.
TASK 1
P1. key considerations for evaluating growth opportunities
It is very essential for all managers who are serving Southern Business Technologies to
focus on the developing plan which is required for growth perspective. There are many
components which are discussed as below:
Competitive Advantage- It is essential for every manager in a company to formulate
business plans which can be considered as the strength for competing in the market. The
competitive strategy leads to successfully assist all activities related to management for
identifying other new ways or methods that increases their competitiveness in order to hold a
successive position that increases the base of consumers. It also leads to implements such tactics
which eliminates every barriers arising due to expansion of business across the world. This is
facilitated by the analysis of market needed for getting all related information for developing a
particular plan that can lead to increase the efficiency of the business and would bring many
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opportunities for flourishing in future. Competitive strategy facilitates in gaining business entity
to achieve a recognition in global market. It develops an impactful understanding of market
along with the exploration and capturing several growth opportunities. Analysing all the
activities which helps mangers for developing a perfect business plan and provides an idea for
making associated arrangements. Competitive advantage highlights the company in a market
which leads to provide a different image among customers so that one can prefer (Antero, 2015).
Core Competencies- It is very important for the management of a company to consider
all such factors which are involved in making business plan for the company. The core
competencies of this firm is; skilled and talented employees who focuses on providing quality
service to consumers in an innovative manner. Another one can be considered as the thinking of
out of the box concept that leads to discover several new inventions that has been included in the
services for creating an effective differentiation in telecommunication market. Apart from these
they have always worked according to the strategies which they made for accomplishing goals
of an organisation. They have advanced technologies that increases the efficiency of every task.
Resources- The are essential elements that are needed to consider while formulating
certain plans which focuses on business expansion. Resources are required as an input for
completing task and for implementing strategies in current scenario. With respect to Southern
Business Technologies, company has sufficient amount of valuable and expensive resources
which provides quality result while focusing on the concept of sustainable development. There
are many kind of resources such as exhaustive or non exhaustive therefore they concentrate on
this aspect and make strategies accordingly and used them accordingly in definite proportion.
Nowadays every business corporation is focusing on implementing the concept of sustainable
development which focuses on utilising the resources in such a manner which leads to save some
proportion of it for future purpose (Fleming and Hawes, 2017).
Other Business Strategies- It is important for managers of a firm to include every
strategies which can make the plan more effective such as nowadays apart from focusing on
consumers and profitability, company focuses on corporate social responsibilities which lead to
provide them more positive image in market. Other tactics can be related to improvising the
aspect of business such as providing various benefits to the customers as well as employees that
results in making the bond stronger with them which is regarded as beneficial for company.
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Capabilities- An organisation provides shall have high potential for expanding their
business and fostering their growth. Any business entity should focus on the concepts such as
innovative skills which has lead the company to gain competitive advantage over competitors in
market. Management of Southern Business Technologies should concentrate on the
development of new product and modifying the new one with the introduction of new features
and following the strategies such as market development in which one improves the product
features to make it more effective for usage. Apart from this one should try to enter in new
markets across the world to make themselves as recognisable at global position, it is very
effective as leads to increase the consumer base which provides them many benefits and increase
in profitability (Mayo,2015). All these strategies facilitates in the process of growth which is
done by an effective planning and considering all such factors; identifying and eliminating all
obstacles for making the business more prominent.
P2.opportunities for growth applying Ansoff’s growth vector matrix.
This matrix is known to be an effective tool which is required for forming various
strategies that can provide benefits to the company in many ways. Therefore, by using this
communication tool one can provide support to the management for making effective plans that
can lead to boost up the business growth. The Ansoff Matrix provides the company many
features for strategic planning that formulates a framework for helping all executives, marketers
and senior managers for leading towards the future growth. It states that a particular business
leads to attempt for growing in future aspect which majorly depends upon the market and the
products. As these are considered to be the most important elements for making any kind of
strategies that can be beneficial in many ways. There are many opportunities which are discussed
as below:
Market Penetration-
This strategy leads to focus on new market which is completely strange to the
organisation. It provides many opportunities for growing and increasing their value in future. In
the market penetration it focuses on entering the alien market with their existing product which
can be through collaboration with local companies or as an individual entity (Sandada, Pooe and
Dhurup,2014). This is a risky practice but if successfully implemented can lead to provide many
benefits. The market penetrations leads to achieve four major objectives:
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 Maintaining and increasing the share of market for current products which can get
achieved through applying the combination of many strategies which are related to
competitive pricing, promotion of sales, advertising and also more resources which can
be dedicated for personal selling.
 Securing the dominant position in market growth.
 Restructuring all mature markets by effectively eliminating all competitors but this would
requires a promotional campaign that should be more aggressive and must be supported
by all pricing strategy which can be designed for making all markets unattractive for
other competitors.
 It leads to maximise the usage of all their existing buyers by implementing the loyalty
schemes which would lead to retain all the loyal customers (Ward, 2016).
Market penetration can be considered as an effective strategy which leads the business to
a new track without loosing any originality. The business should focuses on competitors and the
needs of the customer but performing investigation.
Market Development- Market Development is another strategy for growth where a business
focuses on selling the existing products an services in the new market. It has following goals
which are discussed as below:
 Focusing on new geographical markets such as exporting the products to another nation
which will definitely enters in a new market.
 Introducing new dimensions of product or packaging in order to attract more customers.
 Forming new channels of distribution which effectively moves the products and services
from the manufacturer to retailer.
 Adopting several different pricing policies which can lead to attract new customers by
creating segments in market.
It is regarded as a risky strategy as compared to market penetration which leads to the
targeting of many new markets which are completely unknown to producers.
Product Development-It mostly deals with modification of the current existing product
by changing its various features which can be its appearance or adding up some new concept to it
which makes it much more effective and better. It aims for introducing complete new products in
market. The strategy which requires for developing the new product may include implementing
new competencies and other requirements fr the business in order to develop some modified
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products that can lead to appeal the customers in the existing market. This strategy can lead to
develop a particular product which needs to get differentiated in order to survive in a market for
remaining competitive (Bryson, 2018). It is very suitable strategy for future growth of a business
which is needed to be differentiated for remaining competitive. A successful strategy which is
implemented for developing the product mostly emphasis on:
 Company mainly focuses on research and development along with that works on
innovative concepts.
 By getting in depth insight of all the needs of their targeted customers
 By holding a secure position in market.
Diversification- It is regarded as very risky strategy which is adopted by the company in
order to produce the products in a portfolio in order to maximise the product line. This is
regarded as risky because the business gets permanently shifted to a new market in which they
might have little or no experience. A business can lead to adopt a strategy for diversification but
it should be based on a clear idea related to what it can expect for gaining the strategy and an
assessment for potential risk honestly. However , the right kind of balance must be maintained
for every risk ans reward and apart from these marketing strategy for conducting diversification
can be rewarding in any ways.
TASK 2
P3. potential sources of funding available to businesses and their benefits and drawbacks
There are various sources from where the company can successfully lead to raise the
capital or their financial sources that are required for accomplishing the needs which are required
for operations and also to expand the business. Several enterprise can laid to raise the funds
through issuing stock or shares to public or employees. It is very essential for managers in
Southern Business Technologies (Macaulay, 2018). For formulating appropriate strategies
which can attract al investors. Management can lead to develop and also share every new
business ideas which appropriate strategy can help to achieve it by attracting huge number of
investors and also influencing them for making investment. Some of the sources for raising the
funds are discussed as below:
Bank Loan-It can be recognised as the traditional method which is mostly adopted for
raising the resources which benefits their financial positions. They can lead to utilise the
financial sources that every business firm can seek for taking loan from any particular bank or
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several banking institution. It is considered as the cheapest option which is available for
maximising the funds that are required for conducting various operations in a company. In this
the company has to pay the principal amount and the interest amount on a loan.
The major advantage which is associated with it is it an be availed any time and is
regarded as the cheapest option for funding. As many bank loans are providing low interest to
these loans for supporting business activities. There are many schemers which are introduced by
the government who are helping all the small enterprises to get fund (Dalton, Dalton and
Cangelosi, 2016) .
There are also some disadvantages which are associated with it such as this source which
is used for raising their capital has to fulfil every criteria which is very strict. In some cases the
firm might get difficulty in getting the loan approved.
Equity- It is known to be an effective source which is leading to raise the financial funds
for an enterprise. The equity is known as an appropriate option as it does not takes any extra
charges from the company. The Equity financing can be one of the main options for fund to
those companies who are operating on at small scale. It is regarded as those internal sources
which act as a business that leads to raise the fund effectively.
Advantages
Some of the major advantages for utilisation of the equity as it does not lead to create
any obligation of repayment on them. It is known to be considered as a source which is
permanent for utilising which can be used by the firm for raising the required amount of fund
which is needed for the fulfilment of those needs of business . In this addition, equity finance
can provide all those leverages to management for continuous concentration for accomplishing
all those desired objectives. It also allows for maintaining the complete control on the leverage
ratio. It also facilitates the firm for preventing all financial issues and also helping in
improvement of the performance of organisation (Sahebjamnia, Torabi, and Mansouri, 2015).
The major benefit for raising any capital from the equity is it leads to provide help for improving
the credit rating of a firm.
Disadvantages
The major drawback for utilising the equity can be obtaining of financial resources which
is requires many statutory compliance. The sources leads to include many huge expenditure
which can be required for raising the funds. There is another major disadvantage which is
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acquiring the financial resource from equity equals to weakening of existing control of
shareholder (Magasi, 2016).
Debentures- This is known as another source from where Southern Business
Technologies can raise their funds effectively. They lead to utilise this method in which an
enterprise can lead to raise the funds capital with the issuing of socks or shares for public. It is
known as a source which is used for raising the funds which are of long term. Th director of a
company can further lead to protect the money through securing a fixes or a variable type of
charge on particular debentures. Some can set charges which includes all the tangible kind of
assets that can be property, plant, machinery , land or a plant. There are can be many assets
which cannot get sold by a company which either can lead to repay the loan for full or can
obtain the consent for sales from any holder for debenture.
There are many advantages of it such as raising up of financial resources from various
sources that can lead to provide effective financial protection. There is a presence of fix interest
rate whereas the disadvantages can be that it has no flexibility.
TASK 3
P4.Business Plan
Overview of business plan
Southern Business Technologies are strong and established provider of the solutions for
communications for business around 20 years. They focus on improving the level of
communications with customers. They are the sellers of business phone system , call and line
solutions and apart from that provides business mobile phones (Argenti, 2018). With the
emergence of smart technologies now they are focusing on providing smart watches which can
get connected with the mobile phone and can provide the customers various kinds of notification
instantly.
Goals / objectives
 To maximise the shares of company by 15% in the economy of market.
 To increase the profit by 10% within six months
 To make the promotion of Smart watches more effective in target markets.
 To increase the sale of the new product
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SWOT analysis
Strength
 20 years of excellence in
telecommunication sector.
 Affordable prices of services over
others
 Skilled developers with 100+
combined years of experience in
Information Technology.
 Market leader and innovator
Weakness
 Lack of latest technology in smart
phones communications
 Less markets covered
 Vulnerability to many risks
 Little experience in market of digital
watches
Opportunities
 Increasing demand of Smart Watches
 Availability of less features in Smart
Watches
 Less competitors
Threats
 Strong Brand Recognition of
competitors
 Dynamic nature of digital markets
PESTLE analysis
Political- Tax policies of the digital equipments can be more as compared to other products
because many sub parts of the product are important which has very high trade taxes affecting its
cost for productivity.
Economical- The production as well as the sales is affected by the many factors in an economy
such as inflation rate and recession which directly affects the demand of any digital product as
they are considered to be very costly (Jansen, 2017).
Social-Choosing wrong market segments can affects the sale of the product as the area which is
technological advance might have more requirement of digital watches as compare to others.
Technological -Dynamic nature of digital market leads to develop a pressure for coping up with
latest technology.
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Legal-There are many requirement of legal permission for government , some of them are not
easily granted.
Environmental- Location of the plant affects the productivity of the product. There fore location
must be kept in concern before establishing any plants.
Marketing tactics or mix
Product- The product which is to be launched by southern business technologies is a smart
digital watch
Price- The pricing strategy which would be followed by the company would be skimming
pricing strategy as they will target only upper class level of competitors.
Place-The places will be all urban metro cities where people are aware and fond of digital
technologies.
Promotion- The promotion will be conducted through digital marketing and personal selling.
Competitor’s analysis
The greatest rival of the company is Britannic group who has a strong customer base in
digital services and uses the latest technologies for making all devices smart according to the ned
of the customers.
Financial plan
Particulars Year 1 Year 2 Year 3
Revenue from Sales 90000 95000 96000
Opening cash balance 12000 22323 34595
Total cash 102000 117323 130595
Expenditures
Amount for operations 5600 6000 6500
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ExpensesforAdvertising 6007 6500 6600
Wages and Salaries 5650 6008 6507
Supplies for Office 3000 3200 3300
Legal expense 4000 4500 4600
Bank Charges 1000 1000 1000
Miscellaneous expenses 3000 3020 3210
Withdrawals 6420 6500 6562
Cost of Equipments 45000 46000 43008
Total payments 79677 82728 81287
Ending cash balance 22323 34595 49308
The above financial explains the invest is needed to be increased in consecutive three
years which is from 9000 to 96000 apart from which there are many expenses which is needed to
be subtracted from it that leads to provide an idea of how much the remaining will be left and the
profit will be increased from 22323 to 49308.
TASK 4
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.
Southern Business Technologies.
Succession planning contains the success to a business to the company providing a
business planning handles by the business employees. Success getting to a business by doing
hard work, business observe their planning by management changes and their daily needs of
work by understanding the business (Brinckmann and Kim, 2015). It is a process of
understanding and developing the business with new leader and communicate with each other.
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Succession for business is to continue with the hard work of a leading business and
assume the employees about the role of a business.
Business Success planning
Organisation provide a successful process for running our business and to ensure the
employees for developing our key to a company. It provide a smoothly trasition to a key for
leaders . It depends on the working of a business for the mangement and the employee working
on it.
Developing a Plan: For succession planning leaders and employees should discuss about the
business plan for the working. To develop the successful business the business should be develop
in a very success to an empolyee and can understand the business through a partner .
Benefits of succession planning : The business should be leading with the company that can
take the business and the company to the next level. The benefits should get business to the
success point of view. The contain the knowledge about the business success plan.
Drawback of Succession planning : It is hard to get anyone to take the employee in that
business for the success planning of a business. If selling the the business to other partner know
about business it can be approved to be as wrong for a that employee working (The Importance
of Business Planning. 2018.).
The business can get problem if it not worked properly by them.
Exit options : The exit option is not a process. It is a process to take time and discuss about
taking the right decision for business. This option can be the key occurs on the development or
the business plans. Exit option means to refers on the investment option.
Liquidation of business : This process is of selling the business to provide enough cash back to
the creditor. It is also a exit option for a business. This can be the reason for the employee to
work on it and pay not enough money.
Advantages of Liquidation Disadvantages of liquidation
 If the leader is going to do a fault in a
trading point of working in liquidation
post for the investigation of a business.
 If the company containing trading and
recognize the lose of a marketing
efforts in the company.
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Sell the Business: To sell the business to other partner this may can consider the co-owner for
the success planning . This type of planning used to help for the unknown type transition for the
business that would be sell to other business employee .
CONCLUSION
It has been concluded that for the growth of business it is very important that one should
should do effective planning which provides a map for certain activities that can be beneficial for
the company itself. there are many aspect in a planning which is needed to be considered because
it can provide an easy path for the accomplishment of goals and objectives of the organisation.
There are many key consideration of the growth such as competitive advantages which leads to
highlight the firm among the competitors in a market apart from that there are core competencies
of which the company must have watch and apart from these resources are an essential part
which is needed to be used in an optimal manner with the concept of sustainable development.
There are various strategies which are adopted by the company under Ansoff vector growth
matrix that leads to provide effective strategies which can be used for the purpose of growth such
as market penetration, market development, product development and diversification which have
there own associated risk factors that are needed to be concentrated. Also there are many sources
for raising the funds such as taking loan from the bank, debentures etc.
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REFERENCES
Books and Journals
Antero, M. C., 2015. A Multi-case Analysis of the Development of Enterprise Resource
Planning Systems (ERP) Business Practices. Morten Friis-Olivarius The Associative
Nature of Creativity.
Argenti, J., 2018. Practical corporate planning. Routledge.
Brinckmann, J. and Kim, S.M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal. 9(2). pp.153-166.
Bryson, J. M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Dalton, J. F., Dalton, M. A. and Cangelosi, R. R., 2016. Retirement planning and employee
benefits. Money Education (Me).
Fleming, D. E. and Hawes, J. M., 2017. The negotiation scorecard: a planning tool in business
and industrial marketing. Journal of Business & Industrial Marketing.32(4). pp.519-524.
Jansen, W., 2017. New business models for the knowledge economy. Routledge.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Magasi, C., 2016. Factors influencing business succession planning among SMEs in Tanzania.
Mayo, A., 2015. Strategic workforce planning–a vital business activity. Strategic HR
Review. 14(5). pp.174-181.
Sahebjamnia, N., Torabi, S. A. and Mansouri, S. A., 2015. Integrated business continuity and
disaster recovery planning: Towards organizational resilience. European Journal of
Operational Research. 242(1). pp.261-273.
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Sandada, M., Pooe, D. and Dhurup, M., 2014. Strategic planning and its relationship with
business performance among small and medium enterprises in South Africa. The
International Business & Economics Research Journal (Online). 13(3). p.659.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Online
The Importance of Business Planning. 2018. [online]. Available Through
<https://www.nasdaq.com/article/the-importance-of-business-planning-cm59436>
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