Pacific Computers: Business Plan for Growth and Expansion Analysis

This report provides a comprehensive analysis of Pacific Computers' growth strategies, encompassing key considerations for evaluating opportunities through PESTEL analysis, and the application of the Ansoff matrix to identify market penetration, development, product development, and diversification strategies. It further examines various funding sources available to the company, detailing their respective merits and demerits. The report includes a detailed business plan for growth, outlining strategic objectives, financial information, and considerations for scaling the business. Finally, it explores options for succession and exiting the enterprise, evaluating the benefits and limitations of each approach. The report aims to guide Pacific Computers in making informed decisions for sustainable business expansion and financial management.

Planning for Growth

Table of Contents
INTRODUCTION.........................................................................................................3
LO 1 ..............................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify
these considerations within an organisational context..............................................3
Political factor:..........................................................................................................4
P2 Opportunities to grow using Ansoff matrix.........................................................6
LO 2...............................................................................................................................9
P 3 Sources of funding that are available to the Pacific Computers and its merits &
demerits:....................................................................................................................9
LO 3 ............................................................................................................................11
P4 Business plan for growth which includes strategic objectives, financial
information for scaling up a business......................................................................11
LO 4.............................................................................................................................14
P 5 Ways of succession and exiting for enterprises and its benefits & limitation: 14
CONCLUSION............................................................................................................15
REFERENCES............................................................................................................17

INTRODUCTION
Every business wants to grow and expand in the new market and increase its
market share. For growing business proper planning need to be done. Planning is a
strategic action taken by company to build a path through which its objective to
expand its business is achieved. It is a process where business allocates its resources
to adopt changes like digital disruption which differentiate company from its
competitors. Companies develop business growth plan by doing market research,
identify the needs of customer, available resources and competitors analysis. These
all factors help company to make effective business plan. Present report is based on
Pacific computers company which provide IT and Audio-Visual services to its
customers. Company innovates its products by implementing new technologies and
build a long-lasting relation with the clients. Report will contain the key
considerations in evaluating growth opportunities by doing PESTEL analysis, Ansoff
matrix. Study also includes various sources of funding available for expansion of
business and benefits and drawbacks of each source of fund. This will help company
in choosing the best way to source its business with funds. Further report also
contains a business plan where company states its mission, vision, objectives, SWOT
analysis, financial planning and monitoring and control to grow its business and
allocate funds properly. Lastly report contains succession or exit options stating
benefits and limitations of each option.
LO 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
Pacific computers
Pacific company is the IT sector company with leading share in UK. The firm
is providing IT solution in the United Kingdom. It has 6.1 million sales in years 2017
and 6.5 million pound sales in the year of 2018. At present the total number of worker

working with that firm is 30 thousand. PESTEL Analysis and Porter's Generic
Strategies on the company are discus below:
PESTEL Analysis of Pacific computers
Pacific computers are doing PESTEL analysis for identifying the growth
opportunities of the company through monitoring on the external factors of market
surrounding:
Illustration 1: PESTEL Analysis
(source: MARKETING THEORIES – PESTEL ANALYSIS,
2018)
Political factor:
These factor is concerns about the governments intervenes in the country's
economy. Political factors are concerns in terms of policies of government, political
stability or instability in market, taxation policies, law like trade law, labour law,
environmental laws etc. are included in the political factors. If there is any
fluctuation in such terms , it affects the market and business growth.
Economical factor:

Economical factor are the very important. It directly impacts on the overall
growth and profitability of the enterprise, and shows how the firm is performing in
market and its profitability (Sørensen, 2018.). It includes interest rates, economic
growth, inflation, exchange rates and so on.
Social factors:
It is also known as a socio cultural factors which concerns with the teats,
nature and preferences of the public. These factors show the particular interest as
accordingly to public like age distribution, career attitudes, population growth and so
on. These factors are directly affects the markets for the firm.
Technological factors:
It is depends upon the innovation and new technologies which may affects the
market and the management. There are three ways of technological factors that
affects the market are: new ways of productions, distribution and communication
with the target market segments (Ali, Mahmood and Mehreen, 2019).
Environmental factors:
Factors such as less availability of raw materials, targets, pollutions are
becoming important factors due to scarcity. These are the issues marketers has to
face, he more demand of the product is increases the more they have to needs the
resources in these sustainable sources.
Legal factors:
legal factors like equal opportunities, standard of advertisement, health and
safety, consumer rights and laws are the firm has to know that what is legal and what
not to doing business successfully and exist in the marketplace.
Porter's Generic Strategies
For achieving the sustainable competitive advantage the pacific computers has
to uses porters generic strategies which is discuses below:
Cost leadership-
Cost leadership consider targeting the large demand market and offers the
lowest or minimum possible price (Lambert and Oatley, 2017). Here the company
deal the product at the average industry prices to gain the profit which is higher than
their competitor and also below the average price to gain the market share.

Differentiation strategy-
For the development of the product as well as services offers a unique features
and this allows the company to charge as premium price for the product .because of
the uniqueness of the product supplies increases the prices and this leads to pass
along the costs to its consumers who are unable to find the alternative of the product
easily. It requires the good research and the development also the innovation and the
capability to deliver the high quality trade good.
Differentiation focus-
Here the company looking head first to discover the cost advantage with the
specific characteristic of the product ,this includes brand loyalty among the
consumers. it is very crucial to ensure about the product.
Cost focus-
Cost focus is also the lower cost strategy which highlights on the narrow
market. It also offers the lowest prices (Sørensen, 2018). Here by knowing dynamics
of the market and also the wishes of the costumers, a company can ensure the low
cost of the product. Here the firm had to focus on the cutting down the cost of
production by which it can be earned more and more profitability.
P2 Opportunities to grow using Ansoff matrix
It is a marketing strategy used by pacific computers in identifying growth
possibility by the use of its potential markets and products. It refers to a strategic
planning matrix which provide a framework of future growth to senior managers,
executives and marketers (Aldana and Ruz, 2017). Company use these matrix in
evaluating growth opportunity to increase sales and enter in new markets by
gathering large pool of potential customers. In Ansoff matrix there are 4
combinations of product and market which is shown as follows.

 Market penetration: In this strategy pacific computers want to achieve
growth in the current market through existing product. The main aim for using
this growth strategy is to increase market share of the company. Market
penetration strategy is less risky because it invest existing capabilities and
resources of the company. In a fast growing market it is necessary to maintain
the market share because it will result in growth. Company also finds existing
opportunities to expand its business globally. Pacific computers need to use
this strategy to increase market share by entering in new markets. By entering
in new market company is able to generate more revenue by supplying its
product to customers in different geographical areas. By using this strategy
company gain loyal customers and creates a long-lasting value in the mind of
customers. Pacific computers need to use new technologies in their products
and services so that firm targets potential customer by fulfilling their needs.
Company could increase sales through aggressive advertisement by
decreasing price of products, acquisition of competitor and innovating
products (Rizea, 2015).
Illustration 2: Ansoff-matrix
(source: Ansoff matrix, 2019)

 Market development: Aim of this strategy is to target its existing product in
new market segment. Organization need to target new market in various
geographical region to sell its existing products in order to attract new
customers. This strategy is powerful in the growth of the business because
pacific computers have core competencies in the specific products and it is
beneficial for the firm to target new markets since organization know the
result (Bellamy and et.al., 2019). It is also a barrier to use these market
development strategy because if new customers does not like the service
provided by the company than it may suffer loss. This kind of strategy will be
successful when firm has unique product or service, when new market is not
different.
 Product development: In this strategy organisation develop new products or
services and target existing customers. It is beneficial of company to use this
strategy for growing its business because firm already knows the needs and
perception of the customers and build and innovate products according their
needs. This makes easy for company to introduce the new product in the
market where firm knows its strengths and weakness. Pacific company need
to use this strategy, it will be very effective for the business to earn more
profits and maximize the sales. Organisation need to develop or innovate its
existing products so that customers are satisfied. If company introduces whole
new product in the market then there is a risk and chance of failure of the
product or service. Product development refers to a process of extending the
range of products of a particular firm. Pacific computers need to extend its
product range or innovate it by investing in research and development
department, by doing joint ventures with other companies.
 Diversification: This is a type of strategy where organisation diversify its
business by entering in new markets by producing new products. By using this
strategy company makes an effort to grow its market share. It has a high risk
because company need market development as well as product development.
Pacific computers need to use this strategy for growing its market share and
expand its business (Aldana and Ruz, 2017). Company may face high risk but

it can be compensated if firm earn higher return. There are 2 types of
diversification related and unrelated. If company do related diversification
which means company remain within the familiar markets and if a company
do unrelated diversification then firm moves into new market which it has not
experiences before. Thus is has high risk. If pacific computers want to
diversify its business in new markets than firm need to have a clear picture
about the market, its competitors, strategies, products etc. it is beneficial for
company to adopt related diversification because company is already familiar
with the existing market and knows the needs, preference of the customers.
LO 2
P 3 Sources of funding that are available to the Pacific Computers and its merits &
demerits:
Every business needs fund to survive and expansions in the market. Different
countries have different source of financing. There are many ways to finance the
organization, it allows the proprietor to choose the best solutions of funding that are
fit in their needs and wants. Following are the sources of funding in the firm to
development and expansion of the business.
Business credit cards:
Credit card facility for business is very convenient facility for the Pacific
Computers. But it has threat of stealing and fraud and it can leave the firm
undefended of such situations. It is best for those businesses who need fund quick and
for regular expenses like purchase, maintenance and purchase of equipments etc. It
facilitates in management of cash out flow and inflow of the firm and also track the
daily expenses (Kumar, 2016). It is very necessary to consider the interest rates which
were applied on such cards, some bank leaders are give interest free time period on
business credit cards.
Merits of business credit cards:
 There is 0% interest charged on purchases if the firm makes full payment in
each month.
 It is very easy to gets the card, card were provide in 72 hours of application.

 It is a convenient source of financing.
 In this, none of assets will be at risk.
 It helps to track firm's daily expenses.
 It also facilitates to manage all the cash inflow & outflow of the organization.
Demerits of business credit cards:
 It can be more expensive because of high interest rates.
 If the balance were not paid timely every month, that it is hard to handle & it
can be very high.
 It is suits in small expenses amount, so if there is need of huge sum than it is
not suitable for the business.
Crowdfunding:
It is the very popular way of financing in current era of the United Kingdom.
It helps to raise the fund from the crowd by facilitating the platform to share the new
ideas or project ideas with the public and those public investors who attract and
impress and wants to invest in such idea will be invested. It works like on a particular
site of crowdfunding business need to share their plan and goal and after that firm
needs to set a target of amount that will in need for such plan. It is totally upon the
firm that how they effectively promote their plan in front of the crowd and how they
were bucked up them for investment.
Merits of crowdfunding:
 It is the quickest mode of financing the business.
 It is good for attracting media via this platform and it is also a form of
marketing.
 By sharing of idea on social media, firm can get proper guidance from the
public and can use such guidances to improve it.
 Through the process of financing, investor might becoming the loyal customer
of the organization.
Demerits of crowdfunding:
 It needs more efforts to attracts the investors to invest in such projects or
ideas.
 Failure in the projects leads to spoil the goodwill of organizational.

 If the firm does not protect their ideas with copyright then anyone can steal
the project and steal the concept of the firm.
 If the organization do not match with the registered target of fund than they
did not get a single coin from the source.
Bank loan:
Bank loan is very old way of getting fund for the enterprises. Bank were give
loan to firm on the basis of value of plan and after checking the ability of repayment
of the amount. It is most safe way for Pacific Computers to chasing fund for the
business. Bank will check and track the records and financial statements of the firm to
ensure that the business is performing well and reputed to repay the loan. It is the
most used method for raise fund.
Merits of bank loan:
 It is time-tested and trustworthy way of gathering fund.
 It facilitates the large purchase and expansion of enterprises.
 Interest of loan can be deductible on taxes.
 Enterprise can repay the loan before the date, when there is no use of such
fund.
Demerits of bank loan:
 Banks were checking lots of terms before granting loan.
 It is a time-consuming process.
 Loans are not granted for huge period and it is very difficult to renewal of
such loan.
 Banks can also demand the part of assets as a security.
LO 3
P4 Business plan for growth which includes strategic objectives, financial
information for scaling up a business
Executive summary: Business plan will include the ideas, strategies and
financial information regarding the company. Company sets a clear path through
which it will achieve its goals. Business plan will contain information about the

company, mission, vision, its objectives, financial information, its SWOT analysis
and monitoring and control.
About the company: Pacific computers was established in 1996. It provides
services related to computers and consultancy (Bellamy and et.al., 2019). It is a
leading Audio-Visual and IT company. Organisation has high experience in
installing, designing and supporting wide range of services. Firm continuously invest
in time and ensures that experience and knowledge is the leading border for both
current and growing technology.
Mission: To be a trusted IT and Audio-Visual supplier and build long-lasting
relation with all its customers and provide innovative solution to the clients, so they
gain competitive advantage to reach on top of the market.
Vision: To become a market leader in the IT sector and fulfil the needs of
customers with just one call.
Objectives: To grow its business and increase its market share by targeting
markets and fulfil the needs of customers.
SWOT Analysis:
 Strength: Pacific computers have highly skilled employees who provide
services to its client. Company invest in training and development of its
employees so that they adopt the changes easily which motivates employees
in performing good and increase the profits of company. Company also has
good brand image as its builds long-lasting relations with customers. Firm
innovates its products and services which results in high satisfaction of
customers. It provides quality of services by following quality standards,
strong relation with suppliers and cost-effectiveness. Company also has good
marketing strategies which help them in targeting right customers.
 Weakness: There are some weakness of the company as well. Pacific
computers need to do its financial planning properly so that all the funds are
allocated equally and utilized effectively and efficiently (Aldana and Ruz,
2017). Enterprise need to tackle the challenges by making strategies and