Business Development: Planning for Growth and Strategic Analysis

This report delves into the critical aspects of business growth and development, focusing on the strategic planning process for a small business. It begins by identifying key considerations for evaluating growth opportunities and justifying them within an organizational context. The report then applies Ansoff's growth vector matrix to analyze various growth opportunities, followed by an examination of different analytical frameworks for growth. It proceeds to explore potential sources of funding available to businesses, discussing their benefits and drawbacks, and culminates in the development of a detailed business plan for growth, including the selection of investment strategies and the setting of strategic objectives. Finally, the report assesses exit or succession options for a small business, explaining their benefits and drawbacks. The report provides a comprehensive overview of the tools and strategies necessary for effective business growth, including the use of Ansoff's matrix, funding strategies, and business plan development.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities and justify within an
organizational..............................................................................................................................1
P2 The opportunities for growth applying Ansoff's growth vector matrix.................................3
M1 Option for growth using a range of analytical frameworks..................................................4
D1 Evaluate specific option and pathways for growth...............................................................5
TASK 2............................................................................................................................................5
P3 Potential sources of funding available to businesses and discuss benefits and drawbacks...5
M2 & D2 Evaluate potential source of findings with justified arguments.................................7
TASK 3 ...........................................................................................................................................7
P4 Develop a business plan for growth.......................................................................................7
M3 &D3 Detailed business plan for growth and selecting investment, setting our strategic
objectives.....................................................................................................................................8
TASK 4............................................................................................................................................9
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks....................................................................................................................................9
M4 & D4 Critical evaluation of the exit or succession option for a small business...................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Business is one of the effective commercials activity in which an organization set their
goals and objectives to attain the growth in appropriate manner. In this several goods and
services produce and exchanged in one person to another for generating money. It is an
occupation for the individuals top get higher success at market place by delivering values for the
customers. For getting maximum advantage various tools and methods used by the business.
Merger and acquisition play important role in making the effective operation which aid in
achieving the competitive advantage (Stanilov and Sykora, 2012). For making any kind of
business strategy, it is more important to undertake appropriate research to identify the current
market trends so that implementation of merger and acquisition is effectively. Small business
enterprise is also an important part of the business in which various opportunities are evaluated
that contribute in economy growth. For developing the growth business plan is crucial for
implementing the best strategy so that organization can easily attain the success. Present report is
best on growth and development tools which is used by the business to make effective
operational activities. Ansoff's growth vectors matrix is also mentioned in this report to measure
the opportunities in effective way. Along with this business plan for growth is also discussed in
this project.
TASK 1
P1 Key considerations for evaluating growth opportunities and justify within an organizational
In this the 4COM company need to develop their growth for they they set their business
goals and objectives to achieve success in the market. Cited company is small business which
used various tools to maintain the better sustainability in their process. All the methods and tools
in SME's aid in evaluating the growth opportunities. For development of economy growth SME's
play important role which aid in covering all the aspect that contribute in overall success of the
company (Viitanen and Kingston, 2014). It is more important for the business to use effective
strategic and planning so that they get best benefits in their activities. In this the strategic
planning is a effective tools which is set by the company before implementing their operational
activities. With the help of this company easily attain pre- set target in an appropriate manner.
There are some effective products as well as elements of strategic planing which aid to the
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4COM to attain their target in effective way. The main target of the company to make a plan
which aid in making positive work environment. Environment issue and trends: In this action various components are aid in influencing
the company growth in effective manner so that firm easily attain goals and objectives
(Waterhout, Othengrafen and Sykes, 2013). Environment issue and trends are the major
part of the firm which aid in evaluating the overall performance. It include staff members,
their skills and various available resources to completing all the task in effective manner.
A effective strategic planning adopt the environmental aspect and appropriate
information which define the surrounding of the business. Need survey: It is more important process of the company in which the company
undertake various research and survey to gather all the relevant information from the
clients. This process aid in setting all the organizational goals and objectives in
appropriate manner. Mission statements: It is also an important for the company which define before
evaluating operational activities (Whelpton, Campbell and Patterson, 2015). Mission
statement define that what the company want for generating the profitability. General objectives: In this the company define their objectives to fulfil their clients needs
which aid in developing the overall growth. It define the aim which set by the company
in specific time frame with available resources. Basically it is an effective tools which
helps in evaluating the strategic planning and activities.
 Strategies: This is an important action which used by the company to reach their target in
appropriate manner. It should be specific process in which all the direction are mentioned
to achieve long term goals and objectives. 4COM also used specific strategies in their
planing process which aid in achieving the competitive advantage in appropriate way.
All these components are the best part of strategic planning which helps the company to
evaluate their growth and development. It also define that how a company attain their specific
goals by implementing strategic planning process in their operational process. It is more
important for company to use all the various tools before measuring their overall performance.
Along with this digital technology is also an effective for the company to analysis their actual
action and also compare with their competitors (Wu and Hamada,2011). With the help of this
they easily set their strategy to get competitive advantage from its rivals. So that 4COM
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company set their strategies and effective planning which aid in running their operation activities
in effective and efficient manner (Yu, Wang and Li, 2011).
P2 The opportunities for growth applying Ansoff's growth vector matrix
Evaluation of the business is more important to identify the opportunities for their growth
which aid in achieving the success in market place. For this company use effective methods and
tools to measure their overall performance that contribute in generating the benefits in
appropriate manner. With the helps of Ansoff's growth vector matrix 4COM easily evaluate their
performance of the market. This theory is more effective and play important role evaluation
process (Allmendinger and Haughton, 2013). In this the manager can easily measure their
productivity in the market. This approach include four areas where a company implement their
strategies which are market penetration, product development, market development and
diversification. All these are better part of the strategic planing that are related to the marketing
strategy which define the existing products and market of the company. The fore market
strategies are as follows:
(Source: John Dudovskiy, 2014)
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Illustration 1: Ansoff's growth Matrix

Market penetration: In this strategy the company sell their existing products in the existing
market in order to generate higher profitability. In this 4com plc needs to develop a new strategy
so that more and more customers are attracted to use their products and services. By using this
strategy company increase their market share by delivering their existing quality products in the
current market. For this company fine new and effective ways to enhance the number of
customers and get their loyalty toward the company as well as its products (Browning-Aiken,
Ormerod and Scott, 2011). 4Com use more effective marketing promotion to enhance their
goodwill which directly affect on the company share in the market place. They add values for the
customers to attain their higher satisfaction in effective way.
Market development: In this strategy company find new market from their existing products.
With the help of this company easily capture larger market share fro its rivals. For example
company use internet for selling their products in front of large number of customers. Entering in
new market helps in defining lots of opportunities to set their market in order to get higher
competitive advantage in appropriate way.
Product development Strategy: In this the company focus on the customers needs and wants and
provide them accordingly. With the help of this strategy firm introduce new products into
existing market. It ensure that how new segments are meet he customers needs as compare to
competitors. They use effective process to define new products to their customers to that they
easily fulfil their customers needs. By using this strategy 4com easily attract the existing
customers which aid in increasing the sale and get higher profitability in the market.
Diversification: Under this strategy that define new products for new customers which can helps
in taking more benefits in effective manner. It is more risky approach because products and
market both are new so that they wants to effective growth to develop their process in order to
get success in the market (Dimitriou, 2013). For this is needs to use effective process and
technology to set their products and image in the market.
By applying Ansoff's matrix 4com easily measure their growth in the market. For this
they also able to evaluating the best marker strategy in order to higher competitive advantage
that aid in achieving the predetermined target in given time frame.
M1 Option for growth using a range of analytical frameworks
For attain the competitive success various ways are available for the 4com in which they
use advance technologies to get the competitive advantage in effective manner. It is possible
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when they deliver quality as well as new services to their customers which aid in increasing the
customers loyalty as compare to another companies (Frenkel and Orenstein, 2012). They also use
various promotional activities to increase the awareness regarding their services which aid in
inviting more and more customers towards the company.
D1 Evaluate specific option and pathways for growth
In this several effective strategies are available in the market which aid developing the
company growth in appropriate manner. In this the organizational audit is an effective process
which is used by the company to evaluate their growth and get higher success in the marketplace.
TASK 2
P3 Potential sources of funding available to businesses and discuss benefits and drawbacks
Funding are the more appropriate part of the company which helps in running the overall
process in effective manner. In absence of proper fund company can not able to execute their
activities (Gurran, Austin and Whitehead, 2014). So that it is important to maintain available
resource of the fund to get success in the market. For this 4com needs to know about all the
sources of funding so that they easily generate the capital. They use better activities in which
they easily invite the investors to invest their money which aid in executing their activities in
proper manner. They get fund from internal and external sources so that they properly operate
their services as well as process. With the helps of this company easily achieve their goals and
objectives in given time frame. Both internal and external sources are as follows:
Internal source of finance: This type of funds are related in side of the business. In this
employee contribute in overall operation to rise the fund so that company easily attain the profits.
One of the best advantage of using internal sources is to paying less interest to the business. With
the help of this company easily take best decision for all the short terms and long terms goals in
effective manner. Internal sources increase the company value in order to maintain the positive
image in the market place. It included various elements which used to generating the funds are as
follows: Owners capital: This is more effective and common tool to getting the finance in the
business. It is used by the company at their time of requirement of the money. In this
process company don't pay the higher interest and also secure their money in order to
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make better payment of the capital (Janssen and et.al., 2014). With the help of this
company save their money from paying higher interest. Retained earning: It is based on the companies surplus amount. In this situation the firm
cab easily used the owned capital for running their business. With the help of this
company fulfil their financial requirements and achieve their target in appropriate manner
and maintain their operational process in effective manner (Leigh and Blakely, 2016). Sale of current assets: This is also a main part of getting the finance by selling the
current assets. It covers the cash which able to generating the cash funds. It is depend on
the company to sale their assets at the time of managing their stock level. When the
company needs to get the money I this case firm use this tool to fulfil their needs.
 Debtors collection: It is an effective tool to get the finance for the business. In their the
firm collect the money from their debtors is called as debtors collection.
External source of finance: This type of funds are generate through the outsider of the
company. It include taking new business in which equity share are issuing for the generating the
funds for the company use. The best advantage of external sources is to allow the use of internal
finance but some time it create more obligation. There are some elements which are the part of
external sources are as follows: Bank loan: It is a common elements of the finance in which company easily fulfil their
objectives in effective manner. It define fixed amount for a fix rate and also fixed
repayments. The drawback of the bank loan is pay higher interest which more higher
from other finance. Lack of flexibility is also a big disadvantage of the loan. Equity shares: It is more important part of the business because it is main source of
finance. This type of share are regulated by the government bodies so that large scale of
companies used this finance in their process. Ownership of the share is one of the main
drawback of this type of source. Equity share are more costly than the debenture. This
type of share holders having voting rights and also have ownership of the company.
 Debentures: This term is more effective which is used by the company to rise their
capital. It is a long term security that rate of return is fixed (Lu and Yu, 2014). Basically
it is used by the larger company to acquire money to run their business effectively for this
they give fixed rate of interest. It is a type of loan which issue to the public to rise the
fund. For issuing this type of debt various legislation are required to the company.
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Both type of resources are common for getting the finance which h aid to the company to
execute their operation activities in smooth manner and get competitive advantage if appropriate
manner.
M2 & D2 Evaluate potential source of findings with justified arguments
Bank loan is one of the best source of the funding which is used by the 4com so that they
reduce the chances of arising the risk. One of the best advantage of taking loan at low interest
rate is that it is easily pay back in this case the company borrow the money from the bank
(MacLeod, 2011). It is an external sources in which the loan take by from any bank which aid in
getting the money for their requirement.
TASK 3
P4 Develop a business plan for growth
Planning is more important part of the business to set their goals and objectives in
effective manner. For achieving the growth continuously analysis of the business plan is more
important so that firm easily fulfil their requirements. Basically business plan is a document
which show the actual performance of the company also also define the effective strategies for
development of growth. On e of the best advantage of making a business plan is to define the
specific idea of the business that implement in the organizational activities to attain the success.
It include various elements which describe all the activities which performing in the organization
to achieve the success. All are as follows:
Mission:
By delivering quality products to the customers in order to satisfy their needs is a mission
statement of the 4COM.
Vision:
It is an statement which define the future aspect where company wants to see itself. Clear
vision helps in building trust with the employees and customers.
Value:
Preparing business plan is an effective process which aid in identifying the customers
needs and deliver value products accordingly.
Aim and objectives of marketing:
Purpose:
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The main purpose of making a business plan is to motivate their employees by providing
better opportunities to them so that they easily enhance their skills and knowledge (Makhamreha
and Almanasyeha, 2011). With the help of the company easily capture large market share from
its rivals and also increase trust with the staff members and stakeholders.
Operational information:
It define the day to day transaction which is perform by the 4com with efficiency.
Operational information provide a better path to all the non financial assets which impact on the
business activities. It include customers requirement about the products so that they effectively
delivered in order to get their satisfaction level.
Financial information:
It is an effective process which define all the financial information like profit, loss, sales
budget and cash flows which define the monitory results in the business (Mitsova, Shuster and
Wang, 2011). It define the actual structure of the company which is more easy to understand.
Summary:
It define all the activities which performing in the business organization to achieve its
goals and objectives in effective way.
Entrepreneurial strategies:
In this it is very important for the entrepreneur to undertake research to identify the
competitive in the marketplace. With the help of this they set their marketing activities of selling
their products. It aid in analysing that what type of products are offering to the customers. On the
other hand the niche market strategy is also an important strategy in which the specific products
are focused.
Along with this business plan is an effective document which helps in taking competitive
advantage in the market place. In this 4com company tries to deliver quality products to generate
their revenue as well as profitability. In this the investors of the company also give the better
suggestion for the company to make effective plan in order to develop business growth.
M3 &D3 Detailed business plan for growth and selecting investment, setting our strategic
objectives
Business plan is an effective aspect which helps in rising the fund by investing the money
from the investors (Owens and Cowell, 2011). In this company used franchisee process in which
they expand their business in market place. With the help of this company easily identify the
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customers needs and demand so that company easily modify their business plan in front of the
investors in appropriate manner.
TASK 4
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
Every business are exit their activities by reducing the profitability, more competitive
market and competitors and many more which directly affect the overall business activities. All
are the reason for exit the business (Pierce and Aguinis, 2013). Change in business environment
is also a reason to shut down the small business activities. In this situation company can use
various exit strategies in appropriate manner which are as follows: Shutting it down: It is based on the effective strategies because when the strategies are
not god then selling process is more difficult. It include assets selling, paying the debts
and many more which aid in exit the business. Selling the business: It is more important process of the person selling the business is
more difficult decision of an entrepreneur. It include the main fact the why they sell their
business. At the time of increase the market demand it is more beneficial for the owner to
get high profitability in effective manner. Selling a friendly buyer: In this condition a owner transfer their business to the relative
and friends (Porter, 2012). It is a type of sale but some time it create complexity because
the other person is not familiar with the business and not having proper knowledge. In
this the owner of the business easily formulate their business because they are more
aware about the target and process of the business.
 Succession planning: In this process a business owner spent their lots of times for
developing and growing their business and take better decision to expand their activities
in effective manner. For this impressive planning is more important to transferred the
business and also ensure about the process which implement in the business operation.
M4 & D4 Critical evaluation of the exit or succession option for a small business
Option are easily available for the business for exit the business. If small business
enterprise wants to exit their business in this case various options are available and after that they
take better decision. For taking any kind of decision it is more important to evaluate the scope
and also ensure that all the selling process are profitable for the company or not (Sousa and
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Pinho, 2015). At the time of selling process if owner of the business face any kind of difficulties
so that they adopt various new strategies for this case effectively.
CONCLUSION
From the above mentioned report, it can be concluded that business is an effective
concept which helps in achieving the growth in appropriate way. In this the 4COM company
needs to develop their growth in market by applying the effective strategies. Developing a
business plan is an effective activity of the company to set their target for achieving the success
in market place. In this report Ansoff's matrix are used by the company to evaluating the
opportunities for growth. It is manages duty to prepare a business plan to operate their
operational activities in better way. With the help of strategic planning process a company easily
attain their goals and objectives and take strong place in the market.
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