Clarasys Ltd: Strategic Planning and Growth Opportunity Analysis

This report analyzes the growth strategies of Clarasys Ltd, a consultancy firm, focusing on market analysis and strategic planning. It explores the key considerations for evaluating growth opportunities, including cost leadership and differentiation strategies, utilizing Porter's generic strategies. The report also delves into external analysis using the PESTLE framework, examining economic, social, technological, legal, and environmental factors impacting the business. Furthermore, it applies Ansoff's growth matrix, evaluating market penetration, market development, product development, and diversification strategies. The report concludes by highlighting the importance of differentiation and market development strategies for Clarasys Ltd's continued growth, emphasizing the significance of adapting to market dynamics and leveraging opportunities for expansion.

This strategy is followed by management of Clarasys Ltd which are as explained:
Cost leadership – This can be consider as low cost strategy where business
organisation need to provide their products and services at lower cost than their rivals.
This strategy can be adopted by management Clarasys Ltd where it can get competitive
advantages by providing consultancy services at lower cost. Such strategy will allow the
business to capture high market share and image of business by keeping low prices which
attracts clients more.
Differentiation leadership – This strategy consider as effective strategy in which
organisation need to introduce from unique products and services than rivals. If Clarasys
Ltd adopt this strategy, then it need to provide unique services to its clients than rivals.
Herein, management should bring new and unique services in their consulting
organisation which can attracts customers and increase the outcome than competitors.
INTRODUCTION: Planning is the main function of management which states what
need to do and how it be done in order to accomplish the business goals. This is
intellectual process which is used by business organisation to take effective action and
maintain the organisational profitability.
P1 Key consideration for evaluating growth opportunities
Planning is consider as important action which is designed by top executives in order to
maintain the effective performance and increase the organisational productivity. This
contains vision, mission and objectives which can be accomplished by implementing
planning in effective manner. This is the process of determining future course of action
which helps to understand about goals and objectives. In context to Clarasys Ltd
management are running their business by making effective plans and evaluate the
growth opportunity for SME's for the purpose of upgrading living standard of people. To
understand the growth opportunity of chosen organisation Porter's generic model is used
that is defined as:
Porter's generic strategy:
This model is consider as valuable model which is used by business organisation
for the purpose of getting competitive advantages and earning higher profits. It helps to
identify the suitable strategy which gives long term success to business corporation. This
framework is helpful to increase the performance of small business and make efforts to
covert in large organisation.
Planning for Growth

Political factor – This factor is under the control of government which includes
policies, plans, tax rates, government regulation and political stability of country. After
Brexit the European country has separated from UK which impacted positively as it
established its business in political stability which give opportunity to increase the
production. On the other side change in political stability became a challenge for
organisation that need to follow while running a business which may affect the operation.
Economical factor – This comprises with growth and development of country by
focusing on inflation, interest rate, population growth and GDP rates which has impacted
on business. After Brexit, the interest rate has been decreased which benefited Clarasys
Ltd to run their business and develop it effectively. This support the business organisation
by proving consultancy services.
Cost focus – This strategy means organisation focus on cost in niche market
segment where it provides products and services accordingly. In other words, in cost
focus firm seek cost advantage in target segment which helps to gain the competitive
advantages. This strategy can be adopted by Clarasys Ltd through providing consulting
services in target segment which can improve the business activities. Herein, organisation
need to provide their services at low prices than relatively firm which compete in target
market.
Differentiation focus – This is another strategy of porter's model which means
focus on unique features and products that can fulfil needs and demand of target segment.
For adopting this strategy by Clarasys Ltd need to bring some new features in their
services within target segment that can help to compete with its competitors and give
more advantages. Under this differentiation focus exploits the special needs of customers
in target segment which helps to get growth opportunities.
From the above discussed strategy Clarasys Ltd has adopted differentiation
strategy which is appropriate and valuable strategy, will help to get the business
opportunities in market. As this organisation, serves number of clients from small to
multinational corporation which helps to enhance the productivity by increasing number
of clients in UK. By using this, B2B clients are enjoying tailored consultancy advice on
business process, project management and business change which helps to take the
competitive advantages. This strategy is chosen by Clarasys Ltd because it provide
weekly coaching sessions and career development programme which increases capability.
Therefore, this is an opportunity for organisation to grow the business by providing
unique services.
External analysis – This is a framework which is used to stay on the top trend and event
in competitive market. There are some factors which are involves in external factor
impacts the operation of business organisation and maintain the growth of business. This
includes PESTLE analysis which helps to make and implement the decisions and become
more competitive. In Clarasys Ltd PESTLE analysis is done by management which are as
explained:

Social factor – It comprises with customs, needs, values and believes which may affects
the business. Clarasys Ltd is focusing on changing demand of its clients who needs
consultancy services and provide them unique services which helps to get the benefits in
competitive market helps to improve the business.
Technological factor - This factor comprises with innovation and up gradation
which is most important for organisation to use this and increase the productivity. By
using new technology Clarasys Ltd provide attractive services to its client as it provides
online services through official website which become an opportunity for organisation to
increase the business activities and sustain in competitive environment.
Environmental factor – This factor is connected with environment which gives
favourable and unfavourable results. Clarasys Ltd is assisting its client to build green,
environment sustainability roadmap and reduction of carbon footprint which give
opportunity to grow the business in competitive market.
Legal Factor – This is also important factor which has impacted on business of Clarasys
Ltd as it following the safety standard, equal wages and other laws which helps to
growing the business and maintain it profitable.
It can be understand Clarasys Ltd is grabbing opportunity of political, social and
technological factors which helps to grow the business and maintain continuous growth
effectively.
P2 The opportunities for growth by applying Ansoff's growth matrix
Growth matrix is consider as one of best framework which is used by
organisation for growth the business in competitive market. Every organisation wants
growth opportunities so they can use their talent and increased the organisational
profitability. This also helps to gain the competitive advantages which supports business
and maintain the good position of corporation. Clarasys Ltd is adopting Ansoff's Growth
matrix for getting growth opportunities, are as explained:
Market Penetration – This is less risky strategy which has adopted by
organisation to grow the business by bringing existing products in same market. Clarasys
Ltd can adopt this strategy by selling its services in existing market which is already
established. Herein, it can decrease the prices of its services which may attract customers
and increase the production. The advantages of such strategy is Clarasys Ltd can increase
product demand and market share by reducing the prices of services, using promotional
channel etc. which can help to add more clients and increase productivity. This may be
challenge for corporation is reduction of new product and existing market which switch
the customer from organisation to other. Moreover, this decreases the goodwill level of
business firm.

It may be benefited for chosen organisation as it can survive in competitive market by
introducing new services through investing in research and development and meeting with
customer's needs. This bis associated with some limitation that such strategy is requires
high investment and customer base which reduces profit level of organisation.
Diversification – This strategy is related with diversification in which new products are
introduced in new market which helps to develop the business effectively. By adopting
this strategy Clarasys Ltd can get growth opportunity through introducing new services in
new market and develop the business in effective manner. This give benefits to chosen
organisation as new services in new market attracts customers and keep in touch which
helps to improve the productivity. The disadvantage of this strategy are highly risky and
cost effective which consume cost of setting new services in new market. Moreover, it
build customer base become challenge for organisation.
Clarasys Ltd is emphasising to implement the market development strategy which
is competitive and suitable strategy because in this it introduce its consulting services in
new market which attracts new customers and build strong relationship with them. Here
is, management need to develop the new market for consulting services and building
customer base which helps to increase the profitability. Moreover, organisation grab the
opportunity to sustain in competitive business by selecting a effective market segment that
increases number of customers.
Market development – This strategy is used to take advantages of selling products and
services in new market which influence existing as well new customers. Clarasys Ltd can
use this strategy by expanding their consulting services in to other market which can help
to attracts customers and increase productivity. This may be benefited for chosen
corporation as it helps to to increase the services by proving products in different
customer segment and entering in to domestic market which increases production and
profitability. Disadvantage of such strategy are highly risky and costly to set the business
in other market which can give negative results. Moreover, people are having different
needs and demand in services which may create challenges.
Product development – In this, firm seek to introduce and launch new products
and services in their existing market which make happy customer to get new experience.
By using this strategy Clarasys Ltd have an option to grow effectively by introducing new
services in their consultancy company.