Report on Planning for Growth for Quality Solutions - Unit 42

This report provides a comprehensive analysis of growth strategies for Quality Solutions, a small to medium-sized UK-based company seeking expansion. It begins by exploring key considerations for evaluating growth opportunities, including the application of the Boston Consulting Group (BCG) matrix and the Ansoff growth matrix to assess market positioning and strategic choices such as market penetration, product development, market development, and diversification. The report then delves into potential sources of funding, highlighting the advantages of bank finance. Furthermore, it examines the development of a business plan to support growth initiatives and discusses exit and succession strategies. The report aims to provide a detailed overview of approaches that can support Quality Solutions in achieving its growth objectives, offering valuable insights for strategic decision-making.

Unit 42: Planning for
Growth
Table of Contents

INTRODUCTION.................................................................................................................................3
LO 1......................................................................................................................................................3
Key consideration for evaluating growth opportunities.....................................................................3
LO 2......................................................................................................................................................7
Potential sources of funding..............................................................................................................7
LO 3......................................................................................................................................................9
BUSINESS PLAN.............................................................................................................................9
LO 4....................................................................................................................................................11
Ways for exiting the business..........................................................................................................11
CONCLUSION...................................................................................................................................14
REFERENCES....................................................................................................................................15

INTRODUCTION
Planning for growth is defined as forming growth strategies in respect to the
company. Growth is about to improve the profitability of company in such a way that
company can entertain more profitability and financial outcomes. This report is based on the
case study of the Quality solutions. This is the key small and medium size organisation based
in United Kingdom. Company is looking to expand its growth opportunities. Henceforth,
report will emphasis over the key consideration associated with the growth opportunities
associated with the company. Different growth opportunities available with the company will
be analysed in this project that will support the company in achieving the growth for the
business operations of company. This report will also address the potential sources of funding
in respect to the organisation. Furthermore, this project will analysis the precise business plan
that can support the company to entertain growth opportunities in the market. This project
will also discuss about the exit and succession strategies that company can channelizes in
against to the business operations entertained by the organisation. All different approaches
that can support the company in achieving the growth objectives of company will describe in
this project.
LO 1
Key consideration for evaluating growth opportunities
Growth is about to improve the potential of the company to entertain profits against
the business operations channelizes by the company. This indicates that company try to make
the respective strategies that will support the organisation to improve its profitability and
sustainability target in market. Following are the different models that can be utilised by the
company to entertain growth in the market.
Boston consultancy group matrix
Boston consultancy group matrix is a strategic model that indicates about the position
of the organisation in respect to entertain profitability and growth opportunities in the market.
This model segregate companies in different segments indicate as star, dog, cow and star
category on the basis of the overall performance of the company in market. This indicates
that with the support of assessment in respect to the performance of company all companies
and brand are segregated into different categories (Hodgon and Hoque, 2017). The segment
company entertain in this category directly influence the performance of the organisation. On

the basis of the category company is associated under this model all different strategies and
approaches company channelizes to entertain growth in the respective market.
Dog
Dog is the brand that contain low market share along with the low growth rate. These
are the brands that do not share any effective amount of market share along with sharing only
the restricted growth rate. Both growth rate and market share are low in this category. All
such companies’ part of this category requires strong strategies to improve the overall
performance of the organisation in the respective market segment. The brand part of this
category requires strong strategic choices that can support the companies in entertaining more
effective growth opportunities in the respective market segment (Al Mamun and Hasan,
2017). Quality solutions do not associated with this category on the basis of the Boston
consultancy group matrix model as the sector of company is information technology sector
that contain huge market share and also the growth rate of the sector is among the major
growing market share part of the business environment. The entire sector caters effective
growth opportunities to the businesses operated under the respective market sector.
Question mark
Question mark is the companies that contain low market share under the high growing
market. These are the companies that are small in scale of business operations and contain
low market share even if the sector is growing rapidly under the business environment.
Quality solutions is associated with the information technology sector tat is among the highly
growing market sector associated with the business environment. As the company is small
and medium scale which further indicate that company contain a very small share of market
in the overall turnover of the information technology sector in United Kingdom
(Rakhimzhanova, 2019). The conditions to be associated with this segment are fulfilled by
the company. Due to the agreement of the condition under these category Quality solutions is
associated with this category of brand as per the requirements of the Boston consultancy
group matrix model. Company needed to plan effective strategies that can support the
company to enhance its growth rate or market share in order to entertain the high growth
potential of the market.
Star

Star are the brand that contain high market share in the high growth oriented market.
They are the star category brands which contain huge growth potential. This category brands
always dominate the entire business environment or many ties tey are the leader of the market
sector. These brands drive the movement in the associated market sector. As the name itself
indicate that these brands are always a aggressive leader of the entire market (Irtaimeh, Al-
Azzam and Al-Qura'an, 2016). Other companies associated with the sector follow the
practices of the star category brands. Quality solutions are associated with the information
technology sector but the market share of the company is minimum due to small scale of the
business operations of organisation. Company can grow immensely in the sector with the
support of suitable strategic choices that ca allow organisation to expand the scale of
business. Due to the company is not able to meet the condition so the organisation does not
belong to this category.
Cash cows
The companies covered under this category contain high market share even in the low
growing market segment. The companies part of this category are the dominator in the
respective market segment. In order to become part of this category it is important for the
organisation to have the strong brand image which can support the company to entertain huge
profitability even if the market growth of the sector is slow.
Quality solutions is associated with the question mark category of this model as the
company contain the low market share even the sector contain huge and aggressive growth
rate.
Ansoff growth matrix
Ansoff growth matrix model is a key model associated with the business growth. If
the companies aim to improve the growth potential than it can use this model so that more
advanced growth opportunities company can entertain in against to the business operations
entertained by the company (Mullin, 2017). This model cover four different strategic aspect
that can be channelizes by the company if they look to expand the business outcomes of the
organisation. Strategic direction such as market penetration, product development, market
development and diversification are available in front of the organisation to entertain more
volatile growth options in favour of the organisation.
Market penetration

Market penetration is among the key strategic choices associated with the Ansoff
growth matrix model. This strategic direction guide company to improve the market share of
the products offer by company in the existing dealing market. Company offer quality
discounts, benefits, gift vouchers and other such strategies to improve the market share under
this strategic choice (Hillebrand, 2020). Company do not look to enter in the new market
sector under this strategic choice. Management try to improve the scale of business in the
existing market sector. Market penetration is an effective strategic choice available with the
company in order to entertain growth in the respective market sector.
Product development
This strategic choice part of this model guide company to introduce new products in
the existing dealing market. This is about to launch new products in the existing dealing
market. This is an expensive choice to entertain growth against the business functions
channelizes by the company. This option allow the company to invest in the product
development activity so that new products can be developed by the company so that better
growth option can be channelizes by the company.
Market development
This strategic choice is about to enter in the new market with the support of the
existing product segment of company. Under this strategic option company look to expand
the business operation in new market (Tsaplin and Pozdeeva, 2017). Product line of company
remains the same under this strategic choice only the market scale of the company gets
stretched. This is an important strategic direction that allows the organisation to entertain
more growth opportunities in against to the business operation entertained by the company.
Diversification
Diversification is among the key strategic choice available with the company. Under
this strategic option company try to introduce in new product in the new market sector. This
is a huge strategic choice that company that contain huge amount of financial risk.
Diversification is very risky in nature as it requires huge investment of financial resources of
the company in expanding business in new market sector along with developing products to
offer the associated customer segment of the respective market.

Quality solutions can entertain market penetration as its strategic choice. This would
allow the company to offer products of company at better prices. Company can offer quality
discount to improve the sale under this strategic option. This strategic option would allow the
company to improve its market share and growth rate with the existing products of company
by offering them in the existing market of the company. This choice is further not an
expansive option available with the company as company is already cauterizing its business
in the respective market (Evansluong and Ramírez Pasillas, 2019). Quality solutions are
currently offering products under the United Kingdom so this option will allow the company
to utilise the market of United Kingdom for selling its existing information technology
products. Discounts, vouchers, gift card and many such strategies company will get to
channelizes against utilising this growth option. This furthers not an expensive growth option
available with the company which would allow the organisation to entertain growth in the
respective dealing market. In the short run this strategic direction would support the
organisation to achieve it business objectives. Company will also get competitive advantage
under this strategic choice by boosting the sales growth of company in the existing dealing
market.
LO 2
Potential sources of funding
Funding sources are denoted as the approaches company can utilise to collect and
generate the funding requirements of company. This involves different sources which
company can entertain. All different funding option carries its own strategic advantage and
disadvantage which also need to evaluate by the company in order to avail the respective
strategic choice.
Bank finance
Bank finance is among the key funding option available with the company that can be
channelizes by the company in order to fulfil the funding requirements of company. Ban is a
safest way to collect and generate financial resources of the company. Bank takes security to
allocate financial resources and funds to fulfil the funding requirements of company. Bank
charge interest at the specific rate of interest that also minimum than other private financer
which also provide advantage to the company in order to collect financial resources for
various business requirements of company. Bank also give facility to for close the entire loan

amount along with part payment facility with no extra cost that also allow company to free
from all the dues in case the company could generate extra profitability against the business
operations entertained by the organisation (Roblek, Erenda and Meško, 2018). Different
features associated with the bak that make this funding source more reasonable in favour of
the companies. This funding source also efficient to generate both long term and short term
funding requirement of company. Bank is among the very traditional financial source that
allows company to achieve all its financial requirements in favour of the organisation.
Quality solutions can approach to the bank for fulfilling all its funding needs in order to meet
the need related to the growth plan of company. Organisation can collect funds for both
liquidity situation and the long run business finance. Tenure of the overall loan amount also
get adjusted under this funding source which also make this source more preferable in favour
of the company.
Crowd funding
Crowd funding is another suitable funding source that can be approaches by the
Quality solutions in order to meet the funding requirement of company. This involves issuing
shares in the public offering to raise funds. Quality solutions needed to list under the stock
exchange first to avail this funding option. Under this source company requires to issue either
equity share or preference shares to the people. Company can also issue debenture under this
funding choice. This funding option allows company to share the ownership of company as
the shareholder of company is identified as the business owners (Fier, Liebenberg and
Liebenberg, 2017). Company needs to give share under the profitability of the company
which also make this funding source as effective as it do not create any extra burden over the
liquidity of company in form of interest. It is also not necessary for the company to always
issue profit share for all its shareholders. This is a cheapest way to generate funds in short run
but in long run this is an expensive way to generate funds. Company also get option to buy
back its shares in order to control the ownership of the business.
Private investor
Private financer is another key strategic choice available with the company in order to
collect funds for all its funding requirements of company. Private financer is the price sector
undertaking that allocate funds for the funding requirements of company in the name of
business loan. They charge interest against the financial sources allocate to the company.
This funding source will allow the company to meet all its long term and short term funding

needs and requirement that can favour the business plan of the company (Marques and
Santos, 2017). The loan will be allocated over a specific time frame that will be repaid in
easy and convenient every monthly instalment system.
Strategic alliances
Company can also form strategic alliances in order to entertain funding option in
favour of the organisation. This involve formation of the strategic partnership and alliances
that can favour to the company so that all funding needs and requirements of company can
fulfill by the company. On the basis of the needs and requirement of company this option can
avail by the organization.
The above mentioned choices are available with the company in order to meet the
funding need of company to avail growth in market. All the above sources carry different
advantages and disadvantages that can provide different benefits to the company (Mwangi,
2019). On the basis of the needs and requirements and suitability Quality solutions can
choose the best possible option to fulfil the funding need and requirement of company.
LO 3
BUSINESS PLAN
AIM: Quality solutions has aim to functionally work on targets for further framing larger
new innovations among digital platforms services and also form informative growth goals for
competitive development.
VISION: The vision is to form multi disciplinary practices for building goodwill and
reputation for providing excellent advices to all companies’ business clients and for forming
competent profound fundamental growth within untapped horizons.
SMART objectives:
 Specific: Quality solutions shall specifically for bringing on dynamic market reach
among consumers and also evolve on new paradigms of innovation.
 Measurable: The objectives will be measurable and formed on for keeping
informative pace among work domains.
 Attainable: The objectives will be framed on to attain best metrics for bringing on
new scale growth within untapped arenas and also monitor its progress widely.

 Relevance: The relevant focus shall be put strategically to enhance its marketing
reach and also productively form informative functional pace widely
 Time target : The business plan is formed to be achieved in time period of 6 months
STP:
 Segmenting: The segmenting shall be done based on work growth efficacy for
informative market reach based on consumers preferences and enlarged market
domains (Gupta, 2019).
 Targeting: The targeting will be done by using best innovative scale efficacy for best
result oriented growth goals
 Positioning: The positioning will be done to keep monitoring and dynamic strengths
active among working goals, at Quality solutions
Areas of strength: The areas of strengths within Quality solutions can be analysed by
focusing on the fact that there is wider dynamic strength analysed within management for
larger productive goal formulation. It can be also analysed that the working potentialities and
new scale marketing potentialities within digital platforms is also one of the widely
acclaimed strengths. There is varied new scope metrics among business horizons for ken
functional growth and working towards dynamic working avenues which will enable further
expansion.
Identified opportunities of growth: There are various new opportunities for growth by
expanding on untapped horizons and also to competitively focus on building new parameters
of pathways for commercial growth within competitive domains. There is also dynamic
demand among business potential metrics where higher functional stronger scale of diversity
shall be formed.
Finance / Profit and loss forecast
Company is generating profitability and growth at the rate of 2% every year. Liquidity
position of the company is also strong which would help the company in addressing this
growth opportunities.
Sources of funds:
 Angel investors: The angel investors are one of the best sources of investments
within business funds for larger capital structure where they also provide competent

scale efficacy on start-ups and businesses for further scale expansion, by which
Quality solutions shall be able to be yielding higher structural innovation.
 Bank loans: This is also one of the keen finance-funding sources by which capital can
be resourced further and also working targets can be framed for strengthening capital
strengths further on varied domains and keen potential strengths.
Monitoring and controlling: The business plan shall be monitored by using best digital
platforms and new scale innovation among working domains for gaining feedbacks form
customers and also analysing new vision-oriented efficacy profoundly on the profits earned
within working domains (Hisrich and Ramadani., 2017).
LO 4
Ways for exiting the business
This section is as important as creating a business plan. The conclusion needs to be
mapped out. The exit strategy helps in making the most of the business. If the company is
facing success, the exit strategy facilitates by helping the substantial profit upon leaving. If in
case the business is not successful, the exit plan has the ability to limit the losses.
There are many ways in which Quality Solutions can exit its business which has its own
advantages and disadvantages which are as follows:
Selling of transferring to a family member
Some business owners want that the business stays with the family instead of taking
step back from the daily operations of the company. this is better than giving it to someone
else as the family will have the emotional touch with the business and they will try to save the
business at any cost along with gaining profit from the same (Pisoni and Onetti, 2018).
Pros: The owner will have plenty of time for grooming the successor. This helps in keeping
the transition smooth which makes less disruption possible. This also creates a sense of trust
and loyalty in the owners as they can trust on their family members more than others.
Cons: This can also bring in a lot of strain to the family and can lead to conflicts among them.
This happens sometimes that the employees or the business partners do not support the choice
of the successors.

Merger & Acquisition
The larger company which can benefit from the services will sometimes decide to
purchase the company in merging the two. Quality solutions can be benefitted from this exit
strategy as it has various benefits:
Pros: The buyer is in need of the product and service so the owner can sell it for high value.
The owners do not have any sort of restrictions for taking the money so they are free to ask
for high money. This can also be helpful when there is any type of struggle to the business as
in these times the merger can help saving it and keeping it afloat (Arora, Fosfuri and Rønde,
2020.).
Cons: The new management can take over as it leads to the job cuts. This also becomes
challenging in consolidating the culture of one’s family to the another. Due to these reasons,
the companies like Quality Solutions do not use this exit strategy.
Transferring to employees through ESOP
Under this exit strategy, the employee stock ownership plan (ESOP) can be used as a
stock equity plan which lets the employees in acquiring the ownership interest in a company.
the employees are allowed to buy the shares and well as stock in the companies like Quality
solutions.
Pros: This helps in motivating the employees to do what is considered to be the best for the
company. The employees will strive hard to perform the task for increasing the performance
and the productivity of the company. therefore, the business is mostly in the hands of the
people who are familiar with it and also who are very enthusiastic about each and everything
related to it. The employees play a major role in this as they are considered to be the assets of
the company who are most enthusiastic about each and every decision taken by the company
and are also impacted by the same (Cotei and Farhat, 2020).
Cons: If the companies decide to set the structure of the company under ESOP the this
becomes difficult and expensive for the setting up of business. This also takes a lot of time as

during the sale of any assets of the business and the other decisions, there is a need of the
vote of all the participants which becomes really time taking which creates problems in the
work-life balance of the employees in the company along with their motivation and
satisfaction.
Selling to the public via IPO
The IPO refers to the Initial Public Offering which is a type of exit strategy which
basically means to sell the stock to the public, the involvement of the most important process
which is shifting the company from privately owned to publicly owned.
Pros: This is considered as the most profitable exit strategies as it involves going in public
and exposing the goods and services of the company helps in gaining a larger profit and
higher customer base. It is also responsible for allowing for the high valuation i=on the
interest of the ownership.
Cons: This is also considered as the most expensive exiting strategies which becomes very
difficult to be implemented as it requires proper certain conditions. The businesses which are
small-to-medium are unlikely to succeed. The companies which get the larger profits are the
large companies.
Liquidate
This exit strategy is used when the companies do not find any exit strategy which best
suited the company. In these circumstances, the liquidation becomes the best option. This
involves the activities such as selling the assets, paying the debts and closing the business.
This sometimes become the first choice of the companies like Quality solutions (Gillain,
2016).
Pros: This process of exiting the business is considered to be simple and also can eb
accomplished immediately. This move helps the companies to get their cash right away.
Cons: The major negative point of this is it offers very less ROIs along with resulting in the
people being out of the jobs.

The Quality solutions must use the liquidate option for the exiting the business if in need as
this can be useful for the SME’s also and the others do not benefit much to the small and
medium enterprise.
CONCLUSION
The report focussed on the Quality solutions company which is a SME in UK. It
focussed on the key considerations which are considered by SME’s while evaluating the
growth opportunities. Boston Consultancy group matrix and the Ansoff matrix were used for
the same. This was followed by discussing various sources of funding which can be
beneficial for them along with mentioning the advantages and disadvantages of both. The
systematic business plan was made for enhancing the growth opportunities and to expand the
business. Lastly various exit strategies were highlighted and described.

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