Fordway Solutions Growth Strategies: A Business Report

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Planning for growth
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Table of Contents
Introduction.................................................................................................................................................3
Lo 1.............................................................................................................................................................4
LO 2............................................................................................................................................................8
LO 3..........................................................................................................................................................11
LO 4..........................................................................................................................................................15
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19
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Introduction
This report defines about the key considerations or the ways used by the Fordway solutions
which are UK based organization that shows how to gain the competitive advantages with the
help of the various considerations, the report shows the various risk & disadvantages of using
these considerations and how these risks can be reduced.
The report reflects the sources of funds and their implications in the business and also
recommended the chosen source with justification. The report describes the business plan used b
the organization for the growth, achieving the objective, methods of securing the investment and
other ideal business plans.
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Lo 1
Considerations that helped in the evaluation of growth in the organization
Evaluation of the growth opportunity is a very important task of an organization as it helps in the
development of the organization. Evaluation of the growth opportunity provides various ways
through which an organization can progress towards achieving the goal by adopting certain
strategies and plans. The key elements of evaluating the growth are important especially for the
small and medium enterprises as these elements can show them the growth opportunities through
which they can grow and gets recognition in the market. Fordway solutions come under the small
and medium enterprise category which is the part of the Thomas valley region in the united
kingdom. They have adopted several strategies or ways for the evaluation of the growth
opportunity in the organization. They made the market research to find these growth
opportunities in the market by evaluating the performance strategy of the competitors and also
the demand in the market (Euromonitor international, 2019).
The considerations used by the Fordway solutions for evaluating the growth opportunities are as
follows:
• Consumer segmentation – for analyzing the demand in the market Fordway solutions
understand the characteristics of the consumers such as age, gender, occupation, income and the
other variables such as attitude, value, and lifestyle. It provides a way to the company through
which they can do their operations to provide the services in the market as per the customer's
characteristics.
• Purchase situation analysis – this consideration involves various questions such as when
doing people but the product of the Ford way solutions, where do people make the purchase and
how do they pay. By looking at all these aspects it helps the company to know how the consumer
buys the product or services and the company can position the product or services appropriately
(Euromonitor international, 2019).
• Direct competition analysis – Fordways solutions knows about the market in which they are
performing. They have analyzed their competitors to whom they are competing through which
they can find the important growth opportunities in the market. This consideration helps in
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solving various questions such as what are the products or services of Fordway solutions which
are growing significantly, what is their value proportion and what are the competitive advantages
over them.
• Analysis of the complementary products and services - Fordway solutions monitor the
performance of the companies which are complementary to their own. the trends of the
complementary products in the market are taken into account for making important investment
decisions of the organization. For example – a company that deals with the coffee machine
should have insight knowledge about the different types of coffee sales in the market.
(Euromonitor international, 2019)
• Indirect competition analysis – Fordway solutions analyses various growth opportunities by
analyzing the substitute industries. For example – if there is a decrease in the airfare, airlines can
look into the consumer segments supplied by the means of other transport. They can analyze the
buses and trains, routes which are in demand and price of the tickets which help them to
determine the price of the tickets which will pursue the customers to travel on a plane instead of
buses or trains.
Pestle method analysis of Fordway solutions
Political analysis – They concentrate on the rules, regulations and the policies implemented by
the central and the state government which helps in ensuring the growth opportunities. The
management of the Fordway solutions makes sure that the production or goal of the company
should contribute towards the development of the country (Professional academy, 2019).
Economic analysis
Analysis of the economy is an important factor for the finding of growth opportunities in the
market. This also involves the focus on the economic condition of the company which helps in
the establishment of stable plans and strategies.
Social analysis
It involves the analysis of the peoples in the society, which further helps in identifying the
growth opportunities in the market. Various ways are used to persuade people to buy the
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products and services from Fordway solutions. This analysis helps to make a strategy to get
people’s attention.
Technological analysis
Technology puts a big impact on the development of the growth of the organization. Fordway
solutions have analysis about the various technological trends in the market and adopted various
new and advanced technology which further generated the growth opportunities for them as well
as the improvement in finding the innovative ideas of using the technology (Professional
academy, 2019).
Environment analysis
Fordway solutions have made sure that their operating functions should not harm the
environment as this is also an ethical situation of the business. Various environmental policies
help the organization to find the growth opportuniti8es in the market.
Legal analysis
This analysis shows the boundaries up to which the organizations are restricted to perform such
as doing any kind of the unethical activities, these boundaries further helps the organization to
set their operations and function with proper verification of the process which further helps in
finding the errors made in the firm.
Swot analysis of Fordway solutions
Swot analysis helps in finding the weakness, strength and the opportunities in the market which
helps in improving the organization by finding the solutions to the weaknesses and using the
opportunities for the growth (Yuan, 2013).
Strength
This analysis state that Fordway solutions involve strong communication in the organization
between the managers or owners and the subordinates. Due to the important conversations within
the organization, it helps the management to take important decisions for the organization’s
development (Yuan, 2013).
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Weakness
Although Fordway solutions are popular in the market it lacks the connection with the other
industries in the market which can be harmful to the companies during the period of crisis as no
one would be there to fund the company.
Opportunities
There are various opportunities for the Fordway solutions which help them to attain growth such
as the demand for their products in the market and increased advertising of their products (Yuan,
2013).
Threats
There various threats along with the advantages of the Fordway solutions which can hamper the
growth of the organization such as the selling of same kind of the product by the other industries,
government interventions in the organization can slow down the growth of the organization and
implementation n of several laws which can stop the growth of the organization.
Ways to reduce these threats
By maintaining a stable and strong reputation in the market Fordway solutions can reduce the
risk of new entries and similar product producing competitions. By getting updated about the
different new laws in the country Fordway solutions can reduce the risk of government
interventions and continue with the pace of the growth.
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LO 2
Various methods of raising the funds
There are different methods of funding the Fordway solutions which are as follows:
Loans from the banks
For raising the funds and finances Fordway solutions can take the help of the banks which can
provide them loans, for some years commercial banks were providing the funds only for the
short term requirement such as the working capital of the company and ignored the long term
advances but nowadays there are various banks which provide the loans to industries for the
long term. Forway solutions can use this method as banks were the flexible organization for
raising their funds (Business management ideas, 2019).
Ploughing backs of earning
This method involves the investment of your profits of the organization so, forway solutions can
use this method for raising the funds and financing which helps in the improvement of the
business. This method especially helps in the depression period. since the Fordway solutions
were earning a good amount of profit they can use this method of investing the own profit.
Funding from government
Fordway solutions can approach the government for raising the funds as by explaining the proper
schemes of the company to the government and by impressing them they can get the required
funds from the government which can be useful for the growth of the organization. For even the
large amount of funds, the government would help the organization if they like the scheme
(Business management ideas, 2019).
Crowdfunding
This funding involves various investors who help in contributing to the capital of the firm. The
Fordway solutions can use various websites and other platforms that help them to find various
potential investors who can invest in their projects. For a short term basis, this method might not
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be useful as the investors would want their money back in short periods which can lead to the
failure of the organization (Belleflamme, et.al., 2014).
Angel investing
The organizations can raise their funds through this method as this involves the entrepreneurs
who are looking to invest the money which they have earned in their start-ups. Ford solutions
can use this method of funding as various large organizations such as Google, skype, facebook,
etc. have got their first funding from angel investors (Ding, et. al., 2014).
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Venture capital
This method of funding involves the venture capitalist who aims at investing in the early process
of the business for which they receive the equity in the business in which they are funding, also
they can get the combination of the equity. Venture capitalist involves a lot of losses so most of
the time they invest in the business which has got the high growth potential in the market (Da
Rin, et. al., 2013).
Getting a business partner
Sometimes the organization may not find the ways of raising the funds but they know someone
who can help them in raising the funds. In this case, they can take the help of the person by
making him the business partner. One of the examples is that 28% of the top business has got
seed funding from the co-founder. Selecting a business partner is another important criterion that
can either harm your business or help in making progress. So, it is important to ensure that both
the organization and partner should share the same business goals.
Recommendation of sources and justifications
For the growth of any business organization, funding or investment plays an important role in the
development of the organization as without these funds firms cannot survive for the long term
and even the crises time only these fundings can save the organization from falling.
There are several funding recommendations for the Fordway solutions which they can
adopt for growth:
• Fordway solutions can use the bank loan methods for raising the funds as it can be easier for
the organization as banks are flexible and are ready to provide loans for the long term basis.
• They can use the ploughing of earning method for raising the funds as the company earns
enough profits through which they can use for the reinvestment purpose in the business for the
improvement and growth of the organization.
• They can use the angel investors' funding as large no. of organizations have benefitted by
taking the investments from angel investors such as facebook and google. The company can
benefit because of the reputation of Angel investors in the market.
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• They can also use the method of government funding. As the government can provide them
the big amount to raise the funding if they can impress them with the project scheme they want
to develop for which they require the funds. But sometimes getting the funds from the
government is complex and time-consuming. So, the organizations have to decide accordingly
whether to take funding from the government or to ask somewhere else.
LO 3
Business Plan
This involves the written script about the future of the business, it is a document that contains the
planning process of the organization. It involves all the processes from the starting to the end
including all the resources, assets and the estimated profits of the organization. The plan shows
how an organization can reach its objective. There are various questions which included in the
planning process such as how long should the plan be, determine the goals and objective of the
business plan, what are the financial needs and all the marketing process which are to be used
(Entrepreneur India, 2019).
Details about the Business
Fordway solutions involve small-medium enterprise which is located in the Thames Valley
region of the united kingdom which provides the IT services and products to its customers or
clients. The organization has decided to expand its business by opening new stores related to the
IT product and services and also marketing its products through the media help.
The goal or the objective of the organization is to firm is to expand its business in the United
Kingdom which also helps in growth and development as well as the income which are targeted
to the increase of 25%.
Methods of securing investment
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There are various methods of securing the investment which is used by the Fordways solutions
which are as follows:
• First impression – many of the investors decide within the first 30 seconds of the discussion
with the management of organization weather to proceed or not. so, it is very important for an
organization to present itself perfectly because the first impression of the business idea is what
makes an impact on the minds of the investors (Startups, 2013).
• Strategy and vision – An organization has to communicate the strategy and the vision of the
business in such a way that is understandable to the investors. The organization should explain
all the competitive advantages of the particular area of the business by explaining the reasons for
getting success in those areas.
• Management team – An organization must provide the strength, capabilities, and
competencies of the business team through which investors can analyze the business function as
they get to know about the skills and experience that the organization can use for achieving
success.
• Trust and transparency – The faster way to lose the investors in to break the trust as they
want the organization to be honest and transparent. So, it is important for an organization to keep
the presentation true and should show both negative and positive aspects of the business as the
investors themselves know that there is no problem-free business (Startups, 2013).
Market and industry analysis
Ford solutions are the popular company which deals in the It product and services which have
got huge demand in the market due to which it has expanded its business by opening various new
stores and centers of the IT product and services. Its strategy involves the recruitment of the
skilled employees in the organization who a=can provide quality services to the clients and can
produce a good quality product which improves the profitability and helps in the growth of the
organization.
Marketing strategy
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