Planning for Growth Report: Analyzing Growth Opportunities for SBT

This report analyzes the growth opportunities for Southern Business Technology (SBT), a telecommunications company. It begins by identifying key considerations for analyzing growth opportunities using Porter's Generic Strategies and PESTLE analysis. The report then applies the Ansoff Matrix to evaluate market penetration, product development, market development and diversification strategies for SBT. Furthermore, the report explores various sources of funding available to businesses and their implications. A business plan for growth is developed, considering existing strategies and the telecommunications industry. The report also examines succession options for small business owners. The report covers the importance of planning for organizational success and includes an analysis of how SBT can achieve competitive advantages, increase market share, and adapt to external factors, concluding with a review of the overall growth strategy.

Planning For Growth

Table of Contents
TASK 1............................................................................................................................................3
Key Consideration for analysing growth opportunities..........................................................3
P2 Opportunities for growth using Ansoff growth vector matrix..........................................5
TASK 2 ...........................................................................................................................................6
Different sources of funds and their implication to business ................................................6
TASK 3............................................................................................................................................9
P4 Business plan for growth of business................................................................................9
TASK 4 .........................................................................................................................................10
Existing Strategy..................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Every business requires a productive and attractive planning which lead them to
accomplish their organization goal in an effective and efficient manner. In current scenario of
competitive marketplace, it has been viewed that small and medium size business plays a vital
role in the growth of country’s economy as it provide enormous platform for employment,
growth and innovation which enable firm to improve their overall performance (Alden, 2016).
However, in order to achieve the same, an attractive or challenging planning state is required
which helps them to expand their market share or size within prescribed time limit in a better
way. For this report, Southern Business Technology is considered which one of the leading
company in Telecommunication industry is and it is commenced in the year of 1965. It produces
communication system like telephone, mobile services superfast internet, SIP ad many more and
serves across UK. This study includes examining key element for evaluating company’s growth
opportunities as well as apply Ansoff Matrix to identify the potentiality of firm to enhance their
market share. Moreover, analysing various sources of funds to acquiring the best positioning
among industry, develop a strategic plan and assess various ways in which small business owner
can exist or succession option is also mentioned here.
TASK 1
Key Consideration for analysing growth opportunities
Planning is very important for achieve success and show effective performance of any
company not only for organisation also for individuals. It is consider as starting stage of any
managerial function and it is mainly used for interpreted as a process to produce a strategy as per
the requirement. It can help to achieve desire goals and objectives.
Southern business technology is part of telecommunication industry which is dealing into
communication system such as telephone, mobile services and superfast internet. There are
identified of some circumstances which can help to get development accusative -
Porters Generic Strategy – It is defined as primary finding to get profitability in
business which is based on above and below the industry average. It is understand that above
average profitability related to long run is sustainable competitive advantage. Porters generic
strategy mainly applied to understand the direction of a company (Arku, Yeboah and Nyantakyi-
Frimpong, 2016). Michael Porter utilise four strategies that will select by company according to

industry. Southern business technology believe that a clear course in reference to compete with
the competition (Porters generic strategy, 2019). Cost Leadership – On the basis of particular strategy company focus on the lower cost in
their industry. They can get benefits of cost and depend on the structure of a company.
There can consisting of economic scale, ownership technology, preferential access to raw
material (Babafemi, 2015). With the help of this strategy Southern business technology
can set low cost of their products and get advantage by using different pricing strategies.
In this growth strategy, the management of the respective firm can set an average price by
analysing its high and low prices products. On the other hand they can set low price by
monitoring the pricing strategies of all the firm telecommunication firms. It help in
gaining competitive advantages to the company. Differentiation – There are targeting to large market when company have products or
services with unique characteristic. It is helping to make products as well as services
exclusive and possible. It make more impressive as compare to other products which is
provided into competition. Southern business technology can apply specific strategy to
attain organisational growth and success and apply research and development by
analysing the needs and demands. For this they can make innovation so that they can
deliver and transfer high quality products and services. For example, this company can
also make and produce mobile accessories like phone cover, screen guard etc. and make
differentiation in its business. With in this, the management of respective firm can
diversification in their products and their features such as high quality cameras, software
etc. which can be beneficial to the company to provide competitive advantages. Focus on cost – According to this strategy, the respective firm can target to niche market
and provide products on lowest price. Southern business technology can do analysis to
monitor the fluctuations of market activities and wishes of the consumers. They are
ensuring the costs remain low which can help to attract customers and gain competitive
advantage in efficient manner. Under this strategy, the administration of the firm can
select a specific sector and industry where they can offer their products and services are
low cost to gain competitive benefits.
 Differentiation focus – The particular strategy related to target a niche market and focus
on their products and services which has unique features. The particular strategy can be

apply by company to build strong brand loyalty between different types of customers. It
is essential to assure about their product present in unique way and remain specific in
market, in order to ahead of possible competition. In reference to Southern business
technology can concentrate on their products to become unique in market and get
competitive advantage by making focus on divergence strategies (Greenlee, Edwards and
Anthony, 2015). For example, Within this, the management of the company can target
youths and college students because they have craze bout mobile phones. If the company
manufacture high quality camera in its mobile phones then it can help in increasing sales
and gaining competitive advantages form the market.
As per the above alternations, Southern business technology can adopted differentiations
to increase growth and introduce new product in London market. By making differentiation in its
products with the help of high quality camera. Because it can highly purchased by youngsters
abd students due to craze of selfie and photography. It can provide a specific market to the
company.
PESTLE Analysis – This analysis based on the external factors which can influence to
business activities in effective manner. The Southern business technology apply particular tool in
order to understand about those activities which is directly connected to telecommunication.
Political – This factor influence Southern business technology such as change in
government policy and rules and regulation can affect its business as well as growth (Baker and
Holt, 2017). If government is not stable in UK than manager of Southern business technology
has to adopt new policy of government as result low productivity and lack of growth chances
within organization.
Economical – This means stability in inflation rate can impacts positively on Southern
business technology business such as by similar inflation rate that helps to purchase new
software at same rate which help to influence customers and maintain growth of business
industry.
Social – This means changes in culture and lifestyle can impacts negatively Southern
business technology business like manager of such company need to make some changes
according to customer demand and needs which is difficult for organization.
Technological - Southern business technology is a technology based company that
brings new techniques and software in such company. Changes in technology helps to meet with

customer as well as entity needs and also helps to achieve goals. With the help of this factor it
can grow globally and also enhance development of organization (Gurran and Ruming, 2016).
Legal – Southern business technology follows employment law in which it pays equal
wages to their employees that helps to influence them and they works for long term. So this
factor is helpful for Southern business technology that leads for continuous growth of business in
such company.
Environmental – This factor is related with environment in which Southern business
technology company launch new software which keeps safe environment because it reduce the
cost of wastage and maintain productivity. By following this factor organization can also on
mass production for development and growth of business entity.
P2 Opportunities for growth using Ansoff growth vector matrix
Ansoff's product/market growth matrix advise that every business wants to growth so
they are attempting various ways to get growth. It is mainly depending on the new and existing
products in new and existing market. The result come that the Ansoff product is a broadcasting
of advised growth strategic that can set in particular guidance as per the requirement of business
(Ansoff Matrix, 2019). Southern business technology apply these different types of strategy to
get success - Market Penetration – It is also known as growth strategy that can focus on the sale out of
existing products into existing market The main objective of this strategy to increase
current market share of their products (Berkowitz, 2016). For this need to combination of
competitive pricing strategies, publicity, sales promotion and perhaps more resources
devoted to personal selling. There are no risk and it is not appropriate to provide success,
growth and competitive advantages to firm because the existing products are sold in
existing market. Market Development – It is defining as more risky strategy because business sale out
their products into new market. So there is need to target customers as per the
requirement. There are including possible ways like new geographical markets, new
product dimension or packaging, new distribution channels and various pricing strategies.
Southern business technology can also make growth and success in its business by
launching its business and products or services in to new market or geographical
locations where it is not operating its business.

 Product Development – According to this strategy sale out new products into existing
market. There is required the development of new competencies and need to develop
business to change in the products. A successful product development includes of
research & development and innovation, being first into market. Southern business
technology can also utilise this strategy in its business with the purpose of gaining
success and and make diversification in its products and product line. They can also make
innovation in the features of its existing products such as developed high quality camera.
There are high risk in comparison to market development strategy.
 Diversification – This is an built-in risky strategy due to business is moving into markets
in which it has little or no experience. In the context of the business select particular
strategy because it provides clear idea about what it expects to gain from the strategy and
an honest assessment of the risks. Whatever, develop right balance between risk and
reward. Southern business technology can adopt this strategy in its business and launch
its new or innovative products in to new market to gain growth. There are high risk
because product and market both are new so it is not clear that the product is liked by the
customers or not.
As per the above defined information, it can be summarised that the management of the
company can implement product development strategy in its business with the motive of gaining
success and attaining growth of the company. It can be helpful for the company to provide
competitive advantages from the marketplace.
TASK 2
Different sources of funds and their implication to business
One of the biggest challenges for entrepreur and small business owners is finding the
funds necessary to launch and eventually grow their business in an attractive way. However,
financing is needed to start a business and ramp it up to profitability as the financial need of
company varies according to the type and size of business and an organization cannot function
without containing enough amount of funds as well as to attain sustainable profitability ratio.
According to the current scenario of UK market, SMEs is rapidly growing and it plays a crucial
role in an enhancement of nation economy (Wu, 2015). Moreover, Southern Business
Technology is one of the boosting company among UK marketplace which requires a best

sources of funding their operation and also to obtain profit maximization within prescribed time
limit without any hindrances. Some of the various ways which Southern Business Technology
can apply into their business operation are discussed below:
Bank Loan: Under this, it is considered as one of the most common form of loan capital
for a business as it provides medium or long term finance (Biddle and Taylor, 2018). Along with
this, bank will usually require that the enterprise provide some security for loan, although in the
case of start-up or small business often comes in the form of personal guarantee provided by
entrepreneur. Moreover, it is mainly good for financing investment in fixed assets such as plant
and machinery, land and building and also they charge at lower rate of interest that a bank
overdraft. However, some of the pros and cons of bank loan which impact company proficiency
and that is explained below:
Strengths Weaknesses
 It is regarded as one of the fast way to
raise finance with no upfront fees
which help business to pitch project
through online platform can be valuable
form of marketing and result in media
attention.
 Under this, investors can track progress
which assist firm to promote brand
through their network
 It will not necessarily be an easier
process to go through compared to be
the more traditional ways of raising
finance i.e. not all projects that apply to
crowd funding platforms get onto them.
 If organization fails to protect their
business idea with patent or copyright
in that case anyone can view firm
profile on a crowd funding site as well
as can steal the entire concept.
Peer to peer lending: Under this, it enable individuals to obtain loans directly from other
personalities, cutting out financial institution as the middleman. In other words, it is a form of
direct lending of money to individuals or businesses without an official financial institution
participating as an intermediary in the deal. Along with this, websites that facilitate peer to peer
lending have greatly increased its adoption as an alternative method of financing. However, it
connects borrowers directly to investors as the site sets the rates or terms and enables the
transaction (Sarver, 2015). Furthermore, most sites have a wide range of interest rates based on

creditworthiness of the applicant. Moreover, there are some of the positive and negative effects
are given below:
Advantages Disadvantages
 It give higher returns to the investors as
P2P lending generally provides higher
returns to the investors relative to other
type of investments.
 Peer to peer lending loans usually come
with lower interest rates because of
greater competition between lenders
and lower origination fees (Dagnino,
King and Tienari, 2017).
 Peer to peer loans are exposed to high
credit risks. Many borrowers who apply
P2P loans possess low credit ratings
that do not allow them obtaining a
conventional loan from bank.
Therefore, a lender should be aware of
default probability of their
counterparty.
 The government does not provide
insurance or any form of protection to
lender in case of borrowers’ default.
Angel Investor: It is typically an individual or a high worth personal investor who
provides funding or financial support for startup or small business in lieu of a stake in ownership
in company. Along with this, the persons will be usually among family or relatives of
entrepreneur. Apart from investing money, angel investors share their knowledge at critical
stages. Moreover, they provide loans on relatively easier interest rate, unlike venture capital as
well as they look for defined exist strategy or acquisition or initial public offering for the
development of company productivity. An angel investor is a form of equity financing which
looks for a return of 25 percent or more. Additionally, it fills the gap between small scale
financing provided by family and friends and venture capitalists. Some of the benefits and
drawbacks of angel finance which is given below:
Benefits Disadvantages
 One of the big advantage from angel
investment is that it is less risky than
debt financing (Greenlee, Edwards and
Anthony, 2015). Unlike a loan,
 The primary drawback of using this
method reflect in the loss of complete
control as part owner as they say how
the business is run and will also receive

invested capital does not have to be
paid back in the event of business
failure
 It understands company and take a long
term view which enable them to
looking for a personal opportunity as
well as an investment.
a portion of profit during selling the
company operation.
 With debt financing, the lending
institution has no control over the
operations of company and takes no
share of profit.
Therefore, the above discussed various sources of finances enable Southern Business
Technology to acquire best positioning within competitive marketplace (Gurran and Ruming,
2016). However, crowd funding is more suitable for Southern Business Technology as it very
cheap and effective with various benefits that leads them to maintain their financial position
among industry as well as provide positive perceptive over public that improves the overall
performance and helps them to gain competitive advantage (Ivanov, 2019).
TASK 3
P4 Business plan for growth of business
Business plan
It define as a written statement regarding to business future and it tells that how to do
conduct business activities and prepare strategies. It is defined how a business plan follow a
business vision, mission, strategic objectives and financial information of a business. Southern
business technology is telecommunication sector company which is developed systematic plan to
get growth and gain competitive advantage which can help to attract customer as well as share
holders. Southern business technology can adopt market development strategy so the business
plan can also develop in this context.
Southern business technology Ltd- It is an active company which is founded in 2001 and
headquartered in Basingstoke, Hampshire, England. It is a SME enterprise where currently 5
active directors and 1 active secretary make their contribution in running and operating the
business of the company. It produces communication system like telephone, mobile services
superfast internet, SIP ad many more and serves across UK.

Mission – To carry out value for society, customers, stakeholders and all shareholders
with the help of innovative, efficient, neutral and quality management to share
telecommunications networks and substructure.
Vision – The main Vision of the Southern business technology to provide best services to
their customers and satisfy with super internet and other products.
Strategic goals – The strategic goals of the company to launch new products for increase
infrastructure of company at London market place in developing manner. As a result it will
increase performance and develop good brand value. Southern business technology can set
objective to spread out the market share which can help to increase profitability as well as
productivity in effective manner. It can be achieved after apply different approaches to their
business activities and control the formulation of business practice (Babafemi, 2015).
 To increase profit margin with 5% in upcoming 2 years.
 To make enhancement in the productivity of the company by 10% within 3 years. To make improvement in the customer base in 2.5 years by 4%,.
Source of investment- It indicates to those areas and sectors from where a company can
borrow fund to run and operate the business of the firm. There are various options such as
banks, financial institutes, family, friends and others from where Southern business technology
can borrow monetary fund to manufacture and make innovation in its new product.
Action plan- It refers to those plans and actions which are organised and performed by
the management of the company at the time of making innovation and producing new product
and service. In Southern business technology Ltd, the administration can formulate strategies
regarding production process, pricing strategy of the commodity and what channels will used by
the company to create information about the product such as internet, social media, Facebook,
Instagram, twitter etc.
Financial Information – The success f the business based on the business plan because
most of the companies produce plan on the basis of company requirement and there are
conducting market research. Southern business technology need to present the business activities
and these can be operated through different methods such as internal and external to get financial
goals.

Budget planning- It refers to the planning related to the finance in context of
manufacturing new product. In Southern business technology Ltd, the management of the
company can do budget planning and prepare budget for the production of innovative product.
They can prepare budget regarding raw material, required instruments, promotion cost,
advertisement, training and others.
PARTICULARS 6 months 6 months 6 months
Initial investment 12000 15000 18000
Borrowings(Bank loans, credits) 6000 7000 90000
Retaining earnings 7000 8000 9000
TOTAL 25000 30000 45000
MARKETING OUTLAY
Promotion activities 8000 10000 11000
Sales publicity 6000 10000 11000
Distribution and supply expenses 3000 10000 9000
TOTAL 42000 60000 76000
TASK 4
Existing Strategy
Each and every organization undergoes with positive and negative effect which directly
impact over their profitability and productivity ratio. In some cases, owners holds back with the
situation and on the other hand few tries to exit with business operation or function which
defines their failure and success. Moreover, to gain competitive advantage overcoming or facing
the risk factor lead an organization to achieve increased level of customer satisfaction as well as

enlarge their market share in a productive style. In regard of Southern Business Technology,
there are several method or exit an industry which shows their potentiality or capability in
managing their business operation and function (Kinossian, 2018). Thus some of the ways of
exiting strategy are as follows:
Voluntary winding up: The winding up process brigs an end to a company because its overall
purpose is to allow for an orderly winding down of a company, the realization of its assets, the
distribution of its assets to any creditors and any excess to be returned to shareholders. However,
their process is classified into categories i.e. voluntary and compulsory winding up. The major
difference between among them are voluntary winding up does not involve the court process and
is largely initiated by shareholders. On the other hand, compulsory winding procedure require
court intervention in order to shutting or closing out the company completely. However, some of
the benefit and drawbacks of voluntary winding up are given below:
Advantages Disadvantages
 Under this, it generate outstanding
debts written off. However, an
organization being unable to repay
existing debts with no way of turning
the company around is a stressful
situation (Raymond and Adigwe,
2015). Along with this, if company is in
insolvent it does not permit to continue
with trade which offer them an escape
route from this no win situation.
 It assess accusation of wrongful trading
if an organization get caught in trading
during their insolvency nature. The
punishment includes a ban from acting
as a director for up to 15 years and in
serious cases prosecution through
courts and a prison sentence may ensue.
 There will be no remaining assets with
which to start a new business. All
existing assets will be sold off in order
to provide a dividend to creditors where
possible and for the insolvency
consultant to collect their fee.
Merger and Acquisition: These both element are defined as a combination of companies as
when two firm joint together in order to form one, it is termed as merger of an organization. On
the other hand, acquisition are one when enterprise is taken over by company. However, in
context of merging two organization combines together to create as one association and in this

companies end to exist and new firm is formed (Raymond and Adigwe, 2015). At the same time,
in case of acquisition, the acquiring establishment takes over majority stake in the acquired
enterprise and the company which is going to acquiring continues to be in existence. In merger,
companies are joint together which are in same size on the other hand in case of acquisition
larger firm take over smaller companies. Furthermore, there are various advantages and
disadvantages which is described below:
Advantages Disadvantages
 To become competitive, firms have to
be compelled to be peak of
technological developments and their
dealing application. By merger and
acquisition of a small business with
unique technologies, a large enterprises
will retain or grow a competitive edge.
 Economies of scale is formed by
sharing the resources and services
which is feasible both the parties as it
raised their buying power and longer
production runs.
 Merging two organizations that are
doing similar activities or functions
may mean duplication and over
capability within the company that may
lead to retrenchment (Routledge.
Sarver, 2015).
 Increase in costs might results if the
right management of modification and
also the implementation of merger and
acquisition dealing are delayed.
Integration: When two business are brought together through a merger or takeover, it is possible
to define the nature and type of integration based on the activities of each firm and where they
operate in supply chain of an industry. Moreover, there are various types of integration like
horizontal, vertical, forward and backward which directly influence their productivity and
profitability ratio. Furthermore, business integration is a strategy whose goal is to synchronize
information technology and business cultures or objectives and align those advancements with
company strategy and goals. Therefore, there are positive and negative impact of integration
which is explained below:
Advantages Disadvantages
 It creates predictability because more  The most shortcoming of integration is

information is available to organization
as it is more access to production
inputs. Retail channels produce real
time information that is not filtered by
third parties.
 It increases a brand‘s local market
share because it enable an organization
to control more of its supply chain
which leverage their specific benefits
that a local demographic may need.
that it reduces flexibility because
brands that work with several vendors
or contractors have certain flexibility
that integration does not provide and
also it render only few choices with
their supply chain (Rudolf, Kienast and
Hersperger, 2018). At the same time,
the business that uses third parties can
make changes whenever they wish
without maintenance costs within their
infrastructure.
However, from the preceding discussed method merger and acquisition is viewed as more
productive and effective for Southern Business Technology which enable them to attain
increased level of volume of sales as well as can gain competitive advantage with the
adaptability of innovation or advancement (Wiechmann and Bontje, 2015).
CONCLUSION
It has concluded from the discussed report that planning is vitally important to success as
t in helps in identifying goals, offer directions, uncovers the problems or threats, add
professionalism, gives clear perception in order to acquire best positioning among competitive
marketplace. Along with this, there are several key factors which plays as a guidance for every
organization while determining growth opportunities. Along with this, Ansoff Matrix is regarded
as a useful element as it is a communication tool which helps company to analyse possible
growth and development in a productive style. Moreover, in order to capture the best positioning
within industry various sources of funding like bank loan, peer to peer lending and many more
enable them to accomplish their business objective in an appropriate manner without any
hindrances. In addition, developing business plan allow company to enlarge their market share
and size as well as improves the overall performance of company.

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