Planning for Growth: A Business Report on MS Software Technology

This report examines growth strategies and funding options for MS Software Technology, a small company providing various IT services. The report analyzes key considerations for evaluating growth opportunities, including competitive advantages and Porter's generic strategies. It then assesses growth opportunities through the Ansoff Matrix, considering market penetration, market development, product development, and diversification. The report also explores potential sources of funding, including internal and external options like asset sales and bank loans. Furthermore, it touches upon the design of a business plan and the assessment of exit or succession options for the company. The report provides a comprehensive overview of the company's growth prospects, market position, and financial strategies, with the aim of providing useful insights and recommendations for the company's development. The report concludes with a discussion of the challenges and opportunities faced by the company in achieving its growth objectives.

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....................................................4
TASK 2............................................................................................................................................5
P3 Potential sources of funding...................................................................................................5
TASK 3............................................................................................................................................7
P4 Design a business plan...........................................................................................................7
TASK 4............................................................................................................................................9
P5 Assess exit or succession options for a small business..........................................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................10

INTRODUCTION
Planning is a key component for every businesses throughout its existence. Every
organisation considers the business plan and reviews it on regular basis. They ensure about
effectiveness of plan and inspect it continuously to meet business goals and requirements.
Organisation also reviews its current performances for the purpose of identifying most likely
strategies as well as techniques to achieve growth and success as well (Barbour, E. and Deakin,
E. A., 2012). Business plan play crucial role in utilising available resources by allocating them in
different activities and it also help in arranging appropriate funds so that business can be
operated and develop sustainability. This report is based on MS software technology that deals in
various services including web developing, web designing, servers, internet solutions, mobile
application, and software application in the marketplace. They are coming under the contract for
bid with NHS foundation trust regarding formulating software that facilitate in converting CDS
data into XML format. The assignment will define about key consideration for growth
opportunities and methods for accessing funds within organisation.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities
Every business firm consider an appropriate plan for the purpose of accomplishing their
common targets or objectives. It is essential in maximising size and wealth of the firm by
evaluating growth opportunities and grab them effectively, so that better outcomes can be
achieved. MS software technology is a small company that provide different kinds of services to
the customers such as internet solutions, cloud computing, web developing and designing,
network servers, database management, joomla, drupal, CMS (Content management system) and
many others application at reasonable prices so that customers can get such services and satisfy
their desired expectations (Beatley, T., 2014). This is a small firm which recently launched and
have limited market share. Therefore, they are focusing on expanding business at other areas for
capturing broad market and increase shares where required adequate knowledge, informations,
resources and plan for getting success. Planning contains various elements or aspects like
resources, tools and equipments, strategies, funds, time, quality and technologies that required to
achieve growth and sustainability for business development as well. Some major aspects of
measuring growth and benefits that are mentioned below:
1

Competitive advantages: It can be defined as the condition that allow a company for
producing better quality of goods and services with adding high values, extra features at lower
price and in desirable fashion. These situations support to generate higher revenues and earn
more profits as compare to other competitors. It can be beneficial in analysing the growth
opportunities and sustain market by adopting better strategies and techniques effectively (Chen,
B., and et. al., 2014). There are various attributes included in competitive advantages such as
cost structure, quality factors of products or services, branding, distribution network and
intellectual property and customers services. It helps in increasing brand image and goodwill
among competitors with appropriate manner.
Porter's generic strategies: This is also most important aspects that assist in evaluating
growth opportunities and developing business in well manner. Porter's generic strategies
generally used for determining the direction or strategies of the organisation. In this defined that
company have to choose the clear course and adorable techniques in order to be able for beating
competition and attain set goals or objectives. It involves four major strategies such as:
 Cost leadership: In this consider the broad market size which are to be targeted by the
company and sell their products at affordable prices. There are two option that must be
undertake by the MS software technology for adopting suitable strategies such as keep
2
Illustration 1: Porter's Generic Strategies 2017

costs as low as possible or ensure regarding larger market share with average costs. The
best option is to keep the products or services costs as low for attracting more customers.
 Differentiation: In such situations, Company generally targets a broad market and they
have better quality or unique featured products or services which help in differentiating
them from other rivals (Eddleston, K. A. and et. al. , 2013). MS software technology can
make their product more exclusive and attractive rather than other products that offered
by competitors. There is required proper research and development, innovations,
knowledge and ability to deliver higher quality. Company should formulate better
strategies to identify its products and service's Unique Selling Points that facilitate to
develop particular business in competitive environment.
 Cost Focus: In this, organisations focus on niche market where little competition can be
found and they offer the products or services at lowest possible price so that customers
can afford easily. MS Software can consider such strategy and they can target a clear
niche market so that it would be easy and simple to understand customer's demands and
needs. This can be beneficial in identifying customers’ needs and understanding
dynamics of the market for providing better quality of services at low costs.
 Differentiation Focus: It is similar to above strategy as the target market is niche and
company offers unique features of products and services (Galland, D., 2012). This
strategy is beneficial in increasing strong brand image and make customers loyal towards
firm. MS Software is providing creative web designing and developing services which
has unique features so they can grab such opportunities and increase market share among
competitors. Therefore, it is necessary to undertake some major strategies and ensure
about its effectiveness so that better outcomes can be get.
Market share: it generally represent the percentage of an industry and its sales in the
market that earned by the particular company over a specified time period. Every firm focus on
increasing market share and growth so that they adopt various types of strategies and actions
plan to accomplish set goals or objectives in an effective way. Market share is calculated by
undertaking company's sales over the period and dividing by total sales of the industry over same
period. MS Software can increase its size as well as wealth by analysing growth opportunities in
the marketplace.
3

P2 Evaluate the growth opportunities through Ansoff Matrix
In the modern era, Every business firm consider several tools and techniques for
enhancing growth and achieve sustainability advantages in an effective manner. Therefore, they
focus on formulating plans and appropriate strategies to get success and accomplish targets as
well. Small and medium firms always looking for finding best opportunities in the marketplace
and grab them to develop business entities that facilitate to achieve competitive advantages.
Therefore, they it is necessary to consider effective plan with better strategies for the purpose of
increasing brand image and value of the firm (Levy, J. M., 2016). For portraying alternative
corporate growth strategy, Ansoff matrix one the best method that focus on organisation's
present as well as potential products and target market. In this, MS Software consider several
ways for growing business with the help of existing products and new products and in existing
market or new market as well. These can be understood by followings:
 Market penetration: In this strategy, company focus on enhancing growth and sales by
offering its existing products or services in the existing markets. They try to increase
their market shares in current scenario to achieve competitive advantages. MS software
technology can adopt this strategy for increasing sales of services to established
customers as well as finds new clients in the existing marketplace. They have to make
decision about promotional strategies and distribution channel for the purpose of
enhancing sales volume. Company can accomplished this by decreasing prices, modest
products refinements and increase promotions as well.
 Market development: In such strategy,company make plan for business expansion at
other place as they focus on entering into new marketplace with using existing product
or services. MS software has opportunities to expand business at different market by
offering its services at reasonable costs so that more customers can be targeted
(MacLeod, G., 2013). They can consider various ideas for growth enhancement such as
different customers segmentations, foreign market, and new areas as well as regions of
country. It can be get success if firm has unique products or services otherwise it might
be get sufficient outcomes.
 Product development: In the product development strategy, a company try to produce
new products or services and sell them into existing market for the purpose of achieving
growth. It involve the broaden of products range available in the existing market. MS
4

Software can consider this by adopting better strategies such as investment in research
and development to launch new products, and produce effective items and promote this
into marketplace. It will support in creating awareness among customers and help to
increase profits.
 Diversification: The diversification strategy is one the best way to increase market share
and generate profits with appropriate manner (Moseley, M. J., 2013). In this, company
make decision regarding producing new products or services into new market. This is
most risky strategy because products and market development must be required. MS
software can make new services regrading internet solution that will assist in high
growth and revenues with appropriate way.
TASK 2
P3 Potential sources of funding
There are required proper financial support and adequate funds that beneficial in running
entire business activities and operations as well. Finance is backbone of company because
without funds, it is not possible to run an organisation and achieve predefined goals or objectives
as well. MS Software technology is providing number of services at marketplace and it is a small
medium enterprise whose major objectives is that to expand business and maximise size as well
as growth with correct manner (Schetke, S., 2012). Therefore, they formulated an appropriate
strategies for improving business functions and operations in order to get succeed. They have
considered a bid for the contract of NHS after analysing the demands regarding formulation of
software so that they can convert CDS data into XML language with an efficient way. The bid
amount of organisation is £100K and the total amount which are available around £20K within
firm. Therefore, they are required to borrow some necessary funds such as £80K from any
internal and external sources. In the internal source, it includes fixed assets, retained earning and
many others. On the other side, external involved bank loans, venture capitalists and peer to peer
lending etc. it will be beneficial for MS software technology in raising more funds and generate
higher revenues in an effective manner. They can consider different contracts for the purpose of
growing in the market. The firm has chosen the source for getting sufficient amounts which is
£80K from various sources such as:
Internal sources:
5

Sales of Assets: This can be effective source for arranging and managing funds whenever
required within organisation. In such method company consider their physical resources and
assets that are to be sold to get appropriate financial resource in limited period of time. MS
Software can gain sufficient funds by utilising its available resources and assets so that business
can be run in an effective manner (Haase, D. 2012). In this included land, old equipments, tools,
machinery and many others which support in raising or generating funds around £20K.
Advantages
 Company can use this method with effective manner because there is no required to fulfil
some legislation and legal regulation as well. There is no necessary to pay any kinds of interests on funds.
Disadvantages
 It can create difficulties for small medium enterprises as they can face several problems
during arranging funds because of limited resources. It takes more time to sell the assets and arrange funds so it is a slow method.
External sources
Bank loan: This is best method or procedures to arrange funds by considering bank loans
so that company can generate funds whenever required. MS Software can take loan form bank as
per their needs and requirements as well (Kötter, T., 2012). With the help of this method, the
company has raised funds approx £60K. Company have obligated and responsible to pay such
interest with fixed rate to the bank on loan every year.
Advantages
 This is easy and quick process to raise funds for business purpose.
 Company can take advantage and generate higher funds at the time of needs so that
business activities can be run and get positive returns.
Disadvantages
 The major disadvantage of this is that company have to pay off interest to bank at any
cost and situations, even if they are not getting higher revenues.
In addition of this, bank loan is more effective method of funding because it helps MS
Software ca easily take loan from bank at the time of requirements. This will directly contribute
in running whole activities of the company is appropriate way and also increase the chances of
attaining positive results.
6

TASK 3
P4 Design a business plan
Every organisation focus on adopting suitable strategies by considering various
alternatives and make decisions to select best one among those for the purpose of achieving
predefined aims or objectives as well. It is also helpful in shaping the organisation by providing
adequate support so that business can be developed. Planning consist various aspects such as
time factors, budgets, available resources and its requirements, strategies, tools or techniques,
path goals, methods and procedures, manpower to accomplish set goals (Todes, A., 2012). MS
Software has to undertake some necessary elements and areas to formulate effective plans such
as mission, vision, aims and objectives, proper guidance, instructions, resources and many others
to run business activities and get positive results as well. On the other side, planning is also
helpful in analysing environment and its impacts such as macro and micro that affects on the
organisational profitability as well as productivity, it included economical, environmental,
political, social and technological so it is necessary to undertake these aspects while formulating
any business plan. Here are defined a business plan of MS software technology in detailed form
such as:
Executive summary: There are require to form an appropriate plan and business report
where mentioned details about required funds, capitals, resources, technologies and many other
for the purpose of attaining set goals or objectives in an effective way. As per the contract, MS
Software is going to prepare a business plan for managing and expanding its operations at
different level (Valler, D., 2012). It will support in performing entire task and activities of the
firm in an effective manner that facilitate to accomplish particular goals. There is needed
appropriate staff with skilled workforce so that sales can be maximised and it also support in
handling customers with their problems to provide ultimate solution.
Overview of the firm: MS Software Technology is a small business entity that deals in
number of services such as software applications, web designing and developing, internet
solution, and many others in the market place. Their main purpose is to satisfy customers desired
expectation by providing effective software services at reasonable prices. They try to build good
relationship and networks with customers to make them loyal towards products or services. it
was established in the year of 2014 and some group of engineers come together with bringing
more innovative ideas and creative thinking to starts the venture.
7

Growth objectives: Every company set some objectives which it wants to achieve in
specific period of time. Growth objectives of MS software technology can be understood by the
following points:
Short term objectives
 To promote the development of various software and its related services consisting
information technology. To provide value added data based communication services
Long term objectives
 To provide better solution to its target customers to achieve their satisfaction and to
sustain in market.
 To position itself as a successful technology software firm in UK market.
Products and services: MS software is dealing with different varieties of products or
services such as web designing, website development, CMS, Joomla, Drupal, cloud computing,
Servers, computer languages, internet solution, and mobile application in the UK market (Phelps,
N. 2012). Therefore, company is trying to expand its business and operations at another
marketplace for creating better image among competitors.
SWOT analysis of MS software:
Strengths:
 MS Software is focusing on customers relationship and try to manage and maintain by
satisfying their needs and wants.
 Company has strong customers base and good reputation in the marketplace. They are providing various products and services at reasonable costs.
Weaknesses:
 There are some lack of resources that restricted to generate higher revenues and profits
within an organisation. They have poor market image as compare to other competitors that also a big weak point
for the firm.
Opportunities:
 Company can expand its business at other marketplace or areas that facilitate to increase
market share. Digital technology will support in enhancing growth and competitive advantages.
8

Threats:
 There are various competitors in the marketplace that can be biggest threats for the
company.
PEST analysis: Political: There are different types of political factors that have major impacts on the
business such as changes in various rules, regulation, policies, duties, tax rates, and
procedures that controlled by the government of UK (Wood, A., 2012.). It is required to
undertake such factors for dealing in the market place. Economical: In this defined various fluctuation in the economy that can affects on the
company's profitability and revenues such as inflations, deflations, GDP rates, growth
rates and other changes. Social: There is necessary to consider the customers requirements, their choices, tastes
and preferences regarding particular products or services (van Assche, K., 2013). MS
Software have to understand this to increase sales volume. Technological: it is also required to keep up to date various technologies and adopt
advanced one for running business.
Formulation of budget
Particulars Amount
Paid search 44%
Search engine optimisation 54%
Video advertising 57%
Employees training 66%.
Financial resources require to achieve growth
Total forecasted budget
Particular 31/12/18 (£) 31/12/19 (£) 31/12/20 (£)
Manufacturing cost 3000 - -
Promotional expense 1000 500 600
Advertisement 1000 500 500
9

expense
Cost of adopting new
technology
500 500 500
Catalogues 500 500 500
Total Cost 6000 2000 2100
From the above given information it can be interpreted that MS software technology
require 6000£ is the starting year of its business.
TASK 4
P5 Assess exit or succession options for a small business
There is necessary to formulate adequate plans and strategies so that business be
developed within time frame. MS Software can consider various alternatives for their business
growth and successions as well which depends on the best strategies. It can facilitate to bring
effective changes to accomplish goals.
Liquidation: In this, company make strategy to sell out its business or handover to the
other person so that appropriate funds can be generated (Lo, M. C. and Beunen, R., 2013). They
get liquid funds like cash, banks or cheque etc. Company can face several critical situations such
as bear losses and economic crises and many others. Advantages: This is simple and easy mode to arrange adequate funds for fulfilment of
requirement. Company sell its assets to get liquidity.
 Disadvantage: it is necessary to have knowledge about value of the physical resource
before selling out.
Acquisition: In this, company decide to exit from marketplace by acquisition from other
organisation. Advantages: In this, company are to be acquired by large firm at higher costs.
 Disadvantage: The major drawback of this process is distraction from operations.
Strategies for successful planning:
10

 MS Software should be maintain bottom up an top down communication approach which
helps in making successful planning. With the help of this, workers are provide feedback
towards the strategic planning to attain positive outcomes.
 Adequate staff and skilled employees are required for achieving growth.
CONCLUSION
From the above report, it has been analysed that Every business organisation is focusing
on creating good image and brand values into customers by providing better quality of goods or
services so that long term profits and objectives can be achieved. Business plan play a crucial
role in getting best possible outcomes and accomplish set goals with an appropriate manner. In
this undertaken a small firm named MS Software technology and defined that how they apply
various strategies and action plans for getting higher growth and competitive advantages in an
effective way.
11

REFRENCES
Books and Journals
Barbour, E. and Deakin, E. A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Chen, B., and et. al., 2014. Robust optimization for transmission expansion planning: Minimax
cost vs. minimax regret. IEEE Transactions on Power Systems. 29(6). pp.3069-3077.
Eddleston, K. A. and et. al. , 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Galland, D., 2012. Is regional planning dead or just coping? The transformation of a state
sociospatial project into growth-oriented strategies. Environment and Planning C:
Government and Policy. 30(3). pp.536-552.
Levy, J. M., 2016. Contemporary urban planning. Taylor & Francis.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
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
Macmillan UK.
12

Online
Porter's Generic Strategies 2017.[Online]. Available through
<https://www.sketchbubble.com/en/powerpoint-porters-generic-strategies.html>.
13