Crosel Software: Planning for Growth, Funding, and Exit Strategies

This report analyzes Crosel Software Limited's growth strategies, focusing on market analysis, funding, and business planning. The introduction highlights the importance of strategic planning for revenue growth and sustainability. Task 1 examines key considerations for evaluating growth opportunities, including competitive advantages and Porter's generic strategies, specifically focusing on how Crosel Software, a small firm, can gain a competitive edge. Task 2 evaluates growth opportunities using Ansoff's Matrix, exploring market penetration, market development, product development, and diversification strategies. Task 3 identifies potential sources of funding, considering both internal and external options for a project bid. Task 4 focuses on designing a business plan, essential for securing funding and guiding growth. Finally, Task 5 assesses exit or succession options for the small business. The report offers a comprehensive overview of the challenges and opportunities Crosel Software faces in achieving its growth objectives, providing insights into market dynamics, financial planning, and strategic decision-making.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key consideration for evaluating growth opportunities...........................................1
P2 Evaluate the growth opportunities through Ansoff Matrix....................................................3
TASK 2............................................................................................................................................5
P3 Potential sources of funding...................................................................................................5
TASK 3............................................................................................................................................6
P4 Design a business plan...........................................................................................................6
TASK 4............................................................................................................................................8
P5 Assess exit or succession options for a small business..........................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Planning for growth may be concerned with business activity in which owner consider an
appropriate plan and track for achieving organic growth in revenues. It is very helpful function
for organisation that allowing to allocate available resources and utilise them in better ways so
that various changes can be adapted in the industry. For proper planning, several strategies and
tactics are to be considered for growth which focus on key drivers to generate revenues. There
are different organisations who focused on making effective plans for the purpose of achieving
long term goals or sustainability within firm (Barbour, 2012). This report is define about crosel
software limited company which provide various services such as web designing, internet
solutions, mobile application and various servers to the customers. They are going to bid for a
contract under NHS Foundation trust for the purpose of formulation of software which helps to
convert CDS data in a XML format. Assignment consider growth opportunities with Ansoff's
matrix.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities
In the modern era, organisations are trying to maximise their market size or growth with
help of adoption of new techniques and strategies so that better results can be achieved. These
are essential to create good position with strong brand in the market place. Crosel software
limited is dealing in different kinds of technologies or software services such as web designing,
networks servers, internet solution, cloud computing, database management systems, computer
languages and many more applications at reasonable costs. It is small firm which newly started
and captured limited market so they are trying to maximising their wealth or increase size
through expanding businesses in broad market areas (Deakin, 2012). Therefore, it is needed to
undertake some necessary informations and effective tools or techniques that helps in bringing
adequate changes so that business can be developed in an appropriate way. In the planning
process, management considers different components such as tools, equipments, strategies, time,
efforts, available funds, technologies and many more for enhancing growth and achieve
predetermined goals or objectives in an effective manner. These are most important factors that
helps to the company in better development. There are some major aspects to measure growth
and benefits such as:
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Competitive advantages: it is helpful component that company undertake to measured
organisation's growth. Crosel software is a small and medium enterprise which provide different
services as like software application, web developing, web designing, computer languages and
cloud computing and internet solution etc. it has introduced newly in the UK market so they are
focusing on capturing market as well as reaching at potential customers by creating appropriate
strategies to develop the business. On the other side, there are lots of competition in the
particular market place so it is difficult to survive among strong competitors (Beatley, 2014).
Therefore, it is necessary build good image by using various tools and promotional strategies so
that company can achieve competitive advantages within defined time period.
Porter's generic strategies: it is another major aspect that must be undertake for
measuring particular growth of the firm. This model generally considered by many of
organisations for the purpose of identifying actual position and value of firm in the competitive
market. It is beneficial in determining major changes that can bring effectiveness and efficiencies
in business operations by formulating strategies and action plans as well. In this involves various
components such as:
 Cost leadership: This is associate with marketing position and goodwill that can be
increased by adaptation of effective strategies and promotional plans. It can be possible
through identifying customers with their desired needs or wants that satisfy from
company's products or services. therefore, Crosel software limited is giving services in
effective and affordable prices so that more customers can be targeted because it will
helps in generating higher revenues or incomes in an appropriate manner (Chen, 2014).
They focus on pricing strategies and utilise resources to reduce cost that results high
returns while running firm.
 Differentiation leadership: It is required to create effective goods or services and sell
them to rights customers for meeting their desired expectations. The major element is
unique selling point (USP) which differentiate one firm from another. There is necessary
to consider USP while producing products so that number of customers can be attracted
towards firm. This is essential to enhance sales volume and increase higher revenues
within limited time period. Crosel software is providing various types of software
application and services with better qualities at affordable prices that helps in creating
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demands and raise customers for goods or services. it create good brand image among
competitors in better way.
 Cost focus: This is effective strategy for capturing market and increase shares that
companies undertake to occupy better position in well manner. In this, they focus on
bringing changes and modify products or services as well as alteration in business
process so that best possible outcomes can be gained. There are required effective
strategies and action plans that will be beneficial in attaining long term objectives.
Therefore, management considers customers needs or wants and their capacities to invest
amount of funds for maximum satisfaction so that company cans fulfil their basic needs
and meet desire expectations in efficient way (Eddleston, 2013). This is very useful in
utilising available resources by allocating them into various activities so that
predetermined goals or objectives can be achieved.
 Differentiation focus: In such component, company consider the quality of its goods or
services that attracts huge audiences towards particular organisation. This is essential in
enhancing growth and sales in adequate manner due to better quality of products or
services as well. Crosel Software generally undertake to get attentions of targeted
audiences and attracts them towards company's products or services so that profitability
and productivity can be enhanced in effective manner.
Market share: Every business organisations wants to increase its market shares and
growth to survive in the competitive environment. They try to adopt best methods or tools to
generate higher profits or revenues so effective strategies are required to accomplish goals or
targets. Crosel software is dealing in various services and application in which requires more
innovative ideas or technologies so that performances can be improved (Galland, 2012). In the
present time, many of firm, focus on adopting cloud computing technologies to record or save
data with safe and secure manner.
P2 Evaluate the growth opportunities through Ansoff Matrix
There are different types of organisations who focus on developing business by adopting
best strategies and producing plans so that they can increase market shares or growth within
defined time period. In the corporate field, there are several opportunities for small and medium
enterprises for creating good image amongst competitors and maximise its wealth by running
business operations in well manner. They can make strategy to build strong customers base and
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brand image by expanding business at different place and diversify it into another area or field so
that growth can be enhanced. Management consider the business strategies and action plan for
developing business operation and function as they focus on increasing its size or growth
throughout expansions and diversification as well. These are essential to make better position in
the market place and generate higher revenues or profits in an adequate way. Crosel software has
undertaken best approach such as Ansoff Matrix for identifying opportunities to grow business
firms and create more customers for achieving competitive advantages such as:
 Market penetration: In this defined the particular goods or services that are to bes sold
into existing marketplace. Company consider this aspect to create maximum customers
and attract them for increasing sales volume (Levy, 2016). They try to make effective
strategies and better plans for provide better quality of products or services by adding
additional features and sell to targeted audiences so that they will be satisfied in an
appropriate manner. This is beneficial in making customers loyal towards firm due to
selling services at reasonable costs which will support in achieving long term benefits.
Crosel software company also does same to build effective relationships among
customers as well as build trust in better way. They undertake several promotional
aspects to create awarenesses among target customers and influence their behaviour to
buy products.
 Market development: In this stage, company decided to introduce its existing products
or services into new market. They undertake different strategies and appropriate plans for
entering in complete new market. It is necessary to make better action plan so that
predetermined goals or objectives can be achieved. Crosel software can increase its brand
image and reputation through generating growth or market shares.
 Products development: In this, company make strategy to develop its products and add
some more features to make them unique so that customers can be easily attracted
(MacLeod, 2013). Company make decision to introduce new product as well as modified
existing one by adding more unique feature or values which support in occupying
effective position among competitors and boost market shares by selling of new items
into existing marketing place. It is associated with customers and their satisfaction level
that generally fulfilled through meeting their needs, demands and desired expectations by
providing better products or services. Crosel software is focus on providing better
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services regarding internet, web developing or designing and database management
system so that customers can record their necessary informations or data and use internet
solution for better satisfaction as well. They have started to provide cloud computing
services for saving unlimited data in adequate manner.
 Diversification: This is another important factor which company undertakes to introduce
new products into new marketplace so that business can be diversified in other areas. It is
best method to capture broad market areas and increase size or growth by entering into
new marketplace (Moseley, 2013). Crosel software has also considered this model to
introduce new software services or applications in the market so that ultimate solution
can be provided to the targeted customers.
TASK 2
P3 Potential sources of funding
In the modern era, many of organisations are focusing on generating revenues by
operating business so that long term benefits can be gained. Financial support must be required
to run several business activities because without funds, company cannot be operated or
performed its functions in an effective manner. Crosel software is small organisation whose main
aim is to grow in market through identification of different clients in market. In this regard, they
decided to take contracts from external agencies to improve their business functions. Crosel
software provide bid for the contract of NHS where they demanded about formulation of
software which helps to convert CDS data into XML language (Schetke, 2012). The total amount
of bid which is made by organisation is of £100K. The total amount of money available with
organisation is around £20K. They need to borrow the amount of £80K from different internal
and external sources. Internal sources includes sale of fixed assets, retained earnings etc. These
have their own different advantages and disadvantages for small organisation. On the other hand,
the tools which are used under external source includes bank loans, peer to peer lending etc. This
will enables the small organisation like Crosel Software to raise funds through which they can
take different contracts and grow in market. The sources which are actually used by the
management of organisation in the process of acquiring funds of £80K from different sources
are defined below:
Internal sources
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Sale of assets: It is one of the effective source which provides the opportunity to the
organisation is to arrange the funds through utilisation of their own resources. This method of
internal source is used by Crosel Software for raising some amount of funds (Haase, 2012). The
assets which are sold by cited organisation includes old land and machinery and able to raise the
amount of funds around £20K.
Advantages
 To avail this method not required to fulfil any legal regulations. Not required to pay any amount of interest in return.
Disadvantages
 It is not possible always for small business organisation to have surplus assets to sell out.
 This is one of the slow method to raise finance
External sources
Bank loans: One of the easiest form through which firm can raise funds. This will
includes the process of taking of loans from bank as per their needs. Through use of this method
the amount of funds which is raised by organisation is around £60K. It is the obligation upon the
management of organisation is to pay interest with fixed rate every year.
Advantages The main advantage of this method is that it helps to raise funds at the time of need.
Through this they are able to get positive returns in future.
Disadvantages
 The main disadvantage of this method is that required to pay off interest even if they are
not able to generate profits.
TASK 3
P4 Design a business plan
In the present scenario, there are many of organisations who focused on adaptation of
strategies and making most favourable plans to run business and achieve specific goals in well
manner (Kötter, 2012). Business plans play vital role in drawing particular plan on paper as it is
known as blueprint that provide direction and instruction to the organisation in attaining set
target within defined time period. Management formulate plan in a a written document that
described about necessary resources which are required to achieve predetermined goals or
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objectives. It involved finance budgets, path, time frame vision or missions, proper guidelines,
objectives, goals, and many more for enhancing growth or revenues as well. There is required
adequate planning for developing firms by considering various tools or techniques to achieve
best possible outcomes. Planning also made for identifying different environmental factors that
have major impacts on the firm such as economical, political, rules or regulations and resources.
There are defined some major aspects for better business planning of Crosel Software limited
such as:
Executives summary: There is necessary to make effective business report in which
consider the necessary resources which required for developing firm and attain set targets
(Todes, 2012). For the particular contracts, Crosel software is preparing an adequate business
plan for the purpose of managing and maintaining entire business activities as well as tasks to
accomplish goals. Management also consider employees skills or knowledge while assigning
work among them to perform effectively.
Overview of the company: Crosel Software limited is a small medium enterprise which
provide various products or services including application, web designing, cloud computing,
computer languages, internet solution and many more in the UK market. They focus on building
good relationship among customers so that they can be satisfied in effective ways. This firm has
founded in 2015 by some group of people who come up with innovative ideas, knowledge and
skills regarding tools or technologies.
Products or services: There are number of products or services that provided by Crosel
Software. They are giving software applications, mobile applications, internet solutions,
languages, networks or servers and many more in the UK market (Valler, 2012). Company is
focusing on creating better quality of goods or services at reasonable prices so that customers can
be attracted towards firms as well.
SWOT analysis of Crosel software:
Strengths:
 Company focus on customers needs or wants so they have better interpersonal
relationship with customers.
 Company has good brand image and reputations among competitors. Crosel software provide better quality of software services to the customers.
Weaknesses:
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 Company is facing financials problems due to lack of funds which affects on the business
performances. Poor image among strong competitors so it is difficult to survive in the competitive
environment (Phelps, 2012).
Opportunities:
 There are opportunity to increase market shares by business expansions.
 Digital marketing will bes effective to make smooth functions or activities of business.
PEST analysis: Political: it involves various political factors that affects on the business process such as
changes in taxes, duties, policies or procedures which formulated by government.
Company have to make strategy to build good relationship with customers. Economical: in this considered inflations rates, GDP, exchange rates that influences
company's profitability and revenues (Wood, 2012). Social: customers are biggest factors that affects on the company's sales as it is necessary
to identify their need or wants so that appropriate goods or services can be provided to
them. Technological: this is another external factors which must be considered while planing
for business growth. Crosel software also focused on adopting new tools or technologies
for running business operations.
Formulation of budget
Particulars Amount
Paid search 44%
Search engine optimisation 54%
Video advertising 57%
Employees training 66%.
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Implementing 15000 - -
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technology cost
Promotional expense 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
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TASK 4
P5 Assess exit or succession options for a small business
In this required to undertake different strategies and action plans for the purpose of
increasing growth and revenues. Company have to adopt best strategies that can bring
effectiveness and changes to develop business in an appropriate way.
Liquidation: it is suitable method for small medium enterprise as owner has option to
sell their business or handover to another for getting amounts in liquid modes such as cash,banks
etc. there are many critical situations which can be occurred in anytime as company losses,
economic conditions as well (Assche, 2012).
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 Advantages: It is easy method to get funds by selling small firm and fulfil requirements
in an effective way. In this, owner take decision to sell business assets to other individual
for liquidity.
 Disadvantage: it depends on the nature of business as it can be create complex situations
for measuring cash regarding firms due to decreasing values and poor reputations as well
(Beunen, 2013).
Acquisition: company can make decision to exit from particular market through adoption
of strategy. Advantages: In this, other company acquire the particular firm at highest costs.
 Disadvantage: it can takes more times for acquisition due to follow of lengthy process.
Strategies for successful planning:
 Company can undertake digitalisation for improving business growth and sustainability.
 Provide better training and developments to achieve set goals and objectives.
CONCLUSION
From the above report, it has been concluded that company consider proper planning to
increase market shares and long term growth. Many of firms focused on planning procedure to
operates business functions or activities that enable future growth and sustainability. This report
defined about Crosel Software limited which adopted various strategies for growing business in
the marketplace. There are lots of competition in the marketplace so it is necessary to make
effective plans and adapt strategies regarding developing firms in an appropriate manner. For this
purpose, companies have undertaken several modes of increasing market shares or growth such
as business expansions, diversifications and product development as well.
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REFRENCES
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University of Texas Press.
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Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
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sociospatial project into growth-oriented strategies. Environment and Planning C:
Government and Policy. 30(3). pp.536-552.
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Planning. Elsevier.
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for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
van Assche, K., Lo, M. C. and Beunen, R., 2013. A perspective on planning, smart growth and
place branding. In International Place Branding Yearbook 2012 (pp. 69-77). Palgrave
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