Report on Planning for Growth and Britannic Group Strategies

This report provides a comprehensive analysis of Britannic Group's planning for growth. It begins by examining the key considerations for evaluating growth opportunities, including competitive advantages, core competencies, and resource allocation. The report then evaluates growth opportunities using the Ansoff growth vector matrix, exploring market development, diversification, market penetration, and product development strategies. Furthermore, it assesses potential sources of funding, such as traditional bank loans, equity, and debentures. The report also touches on the importance of a business plan and concludes with a discussion of exit or succession options for small businesses. The report emphasizes the importance of strategic planning for sustainable business expansion and highlights the factors that influence growth decisions within a company, specifically Britannic Group. It provides a detailed overview of various strategies and tools that are crucial for business expansion and success.

PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Analysing the important considerations for evaluating growth opportunities.................1
P2. Evaluating the opportunities for growth...........................................................................2
LO 2.................................................................................................................................................4
P3. Assessing the potential sources of funding available to organisation..............................4
LO 3.................................................................................................................................................7
P4. Business Plan....................................................................................................................7
LO 4.................................................................................................................................................9
P5. Assessing exit or succession options for small business..................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is very much essential in order to expand the business. The planning process
includes determination of various resources which is required for expanding business. It is very
much important for the manager in an enterprise to reassess or evaluate the plan as well as
strategies. Small and medium sized enterprises include those companies which have few
business operations and operate at small scale. Small and medium sized enterprises have a wide
scope of growth. These firms have few employees. Still, small medium organisations have high
potential to grow but there is need of effective planning. Business plan is considered to be an
important activity that will drive an enterprise towards achievement of success and fostering of
growth. A development strategy planning approach encourages business entity to concentrate on
customer based strategy and high priority objectives. Business plan also allows manager to
measure the impact of various internal as well as external factors on operations or organisational
performance. Report has focus on developing understanding about factors which are required to
be considered by management when evaluating growth opportunities. It also emphasizes on
evaluation of the growth opportunities for Britannic Group Company.
LO 1
P1. Analysing the important considerations for evaluating growth opportunities
It is very much important for the manager in Britannic Group Company to consider
several factors when developing plan for growth. Britannic Group Company provides
telecommunications services. Some of these constituents are:
Competitive advantage: It is crucial for the manager in an enterprise to develop
business plans considering competitive strength of an organisation. Competitive strategy will
assist management in identifying the new methods or ways for increasing competitiveness. It will
help manager in the development of plan for strategies for eliminating the barriers which might
occur during expansion of business. A competitive advantage strategy will assist management in
identifying internal and external factors which have significant influence on business. In addition
to this, management when developing plan for expanding business should facilitate market
analysis. As competitive strategy will assist business entity in gaining the competitive advantage
in global market. It will also enable firm to develop the understanding about market as well as
explore and capture growth opportunities. Analysing the market activity will help manager in
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development of suitable plan and will assist in making suitable arrangements. Britannic Group
Company has restructured itself which has helped business venture in increasing the competitive
strength. Competitive strategy will help business entity in gaining the competitive advantage in
the market.
Core competencies: It is very much important for the manager in an enterprise to
consider this factor when formulating business plan for an organisation. The core competencies
of Britannic Group organisation is that business entity has team of highly talented as well as
skilled workforce. Another major core strength of an enterprise is that it has innovation skills
which has helped an enterprise in differentiating itself from that of its competitors. The other
core competency of firm is that it is a strategy long before their high-profile counterparts in the
north and west. In addition to this, business venture has clear objectives. Business entity also
utilises the advanced technology for communicating with clients and providing customers with
services. The business entity also have technical expertise. In addition to this, an organisation has
high potential to react faster to dynamic customer behaviour.
Resources: These are important elements or factors which are required to be considered
when creating plan for expanding business. Resources are also required for developing as well as
implementing plans or strategies. In context of Britannic Group, an organisation has sufficient,
expensive and highly valuable resources which firm can utilise for expanding business.
Other business strategies: It is very much essential for the management in an enterprise
to develop business plan considering other strategies. The purpose of an organisation is to
expand business operations and market.
Capabilities: An organisation has high potential to expand business and foster growth.
Business entity has innovation skills which have supported an organisation in gaining the
competitive advantage in market.
It is required by the manager in Britannic Group to concentrate on development of new
product. As this strategy will assist business venture in increasing the sales and profitability. In
addition to this, management in Britannic Group organisation can adopt the portfolio strategy as
this will help business entity in accomplishing financial objectives which is very important in
order to foster development.
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P2. Evaluating the opportunities for growth
Ansoff growth vector matrix is considered to be an effective tool which can be utilised
for evaluating the growth matrix. It is also considered to be a communication tool which supports
management in developing the suitable growth strategies. Ansoff growth vector matrix highlights
the four options which can be utilised by company for fostering growth or expanding business. It
also helps manager in identifying the risks associated with implementing particular growth
strategy. The different growth strategies provided by Ansoff growth vector matrix are product
development, diversification, market improvement and penetration.
It is required by manager in Britannic Group to consider various factors such as business
objectives and need of resources when selecting strategic option. Different strategic options
available with Britannic Technology Company are:
Market development: This strategy is recognised as growth strategy that identifies and
develops new market segments for current products. This marketing tactics will assist an
enterprise in targeting new customers. By utilising this strategic option, Britannic technology
organisation can target market or can explore the areas in existing market. This strategy will
assist business entity in selling the existing products or services to attract more number of
customers. It also assists an organisation in increasing customer base. An organisation should
target different geographical markets at national as well as global level. Marketing segmentation
strategy can be adopted by the business entity. By utilising this strategy, firm can easily identify
their target customers or market. Manager in an organisation should include marketing mix as
this activity will provide an enterprise an ease in positioning their product. Market development
strategy also help firm in identifying the suitable market for positioning goods.
Britannic organisation can grow by leveraging their product knowledge to reach new
customers. You probably have spent time. In addition to this it is required by marketing manager
in an organisation to conduct market research at regular interval of time. As investigation
strategy will help business entity in identifying the needs of customers. It will also assist an
enterprise in exploring as well as capturing various business opportunities.
Diversification: This market expansion strategy involves high risk. This strategy or plan
is generally utilised by the firm for selling innovative products or services to new customers.
Diversification strategy assists an enterprise in increasing market share and fostering growth.
Britannic organisation can enter into new market by introducing the new item or adopting the
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low pricing strategy. Business entity can utilised the unrelated diversification strategy. As this
strategy will assist an organisation in reducing the effect of competition on business operations.
The main advantage of diversification strategy is that it helps in reducing the potential losses of
your investment portfolio from concentrating all your capital under one type of investment.
Market penetration: Purpose of implementing marketing penetration approach is to sell
more of same products or services in same market. It is required by the marketing manager in
Britannic Technology organisation by formulating the new marketing strategy for influencing
more number of people for buying goods or services offered by company. Presently, Britannic
Technology Company has introduced loyalty schemes, seasonal discounts and offers in order to
attract more number of customers. In addition to this, manager in Britannic organisation can use
Boston matrix as a tool for determining the products which require more investment.
Product development: This is considered to be the most effective growth strategy which
requires less investment as compared to market development. By selling the innovative products
to customers, firm can gain their loyalty.
Among the various growth strategies, Britannic technologies’ organisation can implement
product development strategy. Product development strategy will assist business venture in
increasing the demand for its products. Product development strategy will support business entity
in differentiating itself from that of competitors. It will also help an enterprise in gaining
competitive advantage in market and achieving good position in an industry.
Manager in Britannic Technology Company is required to conduct risk analysis as this
will assist them in identifying the risks associated with implementation of specific strategic
option.
LO 2
P3. Assessing the potential sources of funding available to organisation
There are different sources from where an organisation can raise capital or financial
resources for fulfilling the need of operations and also for expanding business. The business
entity can raise funds by issuing shares or stock to workers or public. It is required by manager in
Britannic to develop the appropriate strategies for attracting investors. Management can develop
and share new business ideas as this strategy will help firm in attracting more number of
investors and influencing them to make investment. Other sources for raising the finance are:
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Traditional bank loan: It is recognised as traditional method or technique used for
raising financial resources. By utilising this source of finance, business entity can seek loan from
bank or other financial institutions. Bank loan is considered to be the cheapest option for raising
financial resources as compared to other sources. In addition to this, an organisation is required
to pay principal and interest amount on a loan.
The major disadvantage of this source of raising capital is that business entity has to fulfil
strict requirements. In some cases, company might have to face difficulty in getting the loan
approved.
Equity: It is considered to be an effective source of raising the financial resources by an
enterprise. Equity is considered to be as an appropriate source of raising funds or capital as it
does not contain any extra charge on them. Equity financing is one of the main funding options
for companies operating especially at small scale. It is also recognised as internal sources from
where business entity can raise funds easily.
Advantages:
The major advantage of utilising the equity is that it does not carry repayment obligation
on them. It is considered to be as permanent source utilising which the firm anytime can raise
funds for fulfilling business needs. In addition to this Equity finance provides that leverage to the
management to continuously concentrate on accomplishing desired business objectives. Equity
financial sources allow management to have complete control on leverage ratio. It helps an
organisation in preventing the financial issues and helps in improving organisational
performance. The major benefit of raising the capital from equity is that it helps an organisation
in improving credit rating.
Disadvantages:
The major drawback of utilisation the equity for obtaining financial resource is that it
require a lot of statutory compliance. This source also includes major expenditure which are
required for raising the funds. The another major drawback of obtaining the financial resource or
capital from equity is that When a business entity raises funds via equity, it weakened the
existing shareholder’s control (Armstrong,Kotler and Brennan, 2017). In addition to the above
drawback, the major disadvantage of utilising the equity for obtaining financial resources is that
it investors is a permanent obligation.
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Debentures: This is another sources from where Britannic technologies’ company can
raise funds. By utilising this method, an enterprise can raise capital by issuing shares or stock to
Public. It is the source for raising the long-term funds. Directors in a company can further protect
their money by securing a fixed or variable charges on the debenture. Set charges includes
tangible assets such as property, land, or plant and machinery. These assets cannot be sold by an
organisation either repaying the loan in full, or obtaining consent for sale from the debenture-
holder.
Advantages:
The major advantages of raising the financial resource from different sources is that it
provides Valuable financial protection. Other benefit of utilising this source is that there is that
business entity has to pay fix interest rate. Debt as a source of finance has an indirect benefit
which is gained by existing business owners.
Disadvantages:
The major disadvantage of utilising the debenture as a source of raising capital is that
there is no flexibility in obligation to make interest payments on the debenture. Other important
drawback include lack of management freedom to control or utilise the assets of company.
Personal saving and interest: This source is considered to be as an effective way of
raising the fund.
Advantages:
Saving money is advantageous because it provides company an opportunity to get an
extra source of income. Personal saving also supports business entity in getting the higher return.
Disadvantages:
Utilising the capital for fulfilling the business need, can put an organisation in strain. It
might also have negative impact on business performance as well as operations. In addition, to
the above drawback , other disadvantage of fulfilling financial needs by utilising the personal
saving is that the limit sum of financial resources can be obtained.
Trade credit: This is recognised as the external source of working capital financing. It is
considered to be important source for catering the routine business requirement. Trade credit is
defined as the credit extended to an organisation by suppliers.
Advantages:
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The major advantage or benefit of this method or source of raising capital is that firm can
take delivery of materials, equipment or other valuables without paying cash.
Disadvantages:
The major disadvantage of utilising the trade credit is that, if company fails to pay the
money on time, such situation might have negative influence on company reputation.
Government grant and loans: The Small medium enterprise can seeks financial
assistance from legal authority in the nation. It is considered to be as an appropriate source of
raising funds as government charges lower rate of interest (Hui and Tsang, 2014). An
organisation can also seek financial support from external investors
External investors: Britannic technologies’ company can utilise this source for obtaining
the funds for catering the business needs. Example of external financing includes selling the
shares of an organisation, investment by big companies and loan from bank, etc.
Advantages:
The major advantages of external financing is that it enables business entity to prevent
the use of business financial resources which can be utilised during the financial or economic
crisis.
Disadvantages:
Loss of ownership and control is considered to me as the major drawback of raising the
financial sources from external financing. The other disadvantage of this source is that Debt
financing has associated interest payments and business entity might have to face difficulty in
paying high interest rates on a loan.
LO 3
P4. Business Plan
Mission and Vision
Company’s vision is to impart quality networking equipment in the telecommunication
sector to the customers in effective manner. To satisfy customers and gain good market share
quite effectually.
Aim and Objectives
Aim: To provide better products and services to consumers
Objectives:
 To impart quality transmission equipment for communication
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 To attain healthy gross profits in short time span
 To maximize satisfaction level of customers
Overview
Britannic Group Ltd is engaged in communication and networking equipment sector and
provides goods and services to increase customer satisfaction in the best possible manner. Public
transmission and switching equipment are provided by organisation.
Marketing strategy
Marketing strategies are required so that products may be promoted quite effectually.
Without proper marketing tools such as advertising, sales promotions and related tools,
customers may not be lured towards company (Gurran and Bramley, 2017). Hence, it is required
to choose appropriate marketing mix for gaining customer attention and attaining sales from
target markets.
Investment securing
Finance is the blood of organisation and without it, operational activities cannot be
performed. The equity will be used in accomplishing operational tasks. On the other side, debt
financing would be utilised for meeting expenditures and for expanding operations. Hence,
through adequate investment methods, profitability can be enhanced in a better way.
Rivals' Analysis
Competitor's analysis is required so that strategies may be identified of rivals. It would be
helpful in attaining clarity about rival's strategies which will be useful in implementing well-
structured plan of action to attain competitive advantage. This would be beneficial in
accomplishing target market customers and thus, Britannic Group Ltd will be able to produce
good quantum of profits in future course of action.
Pestle analysis
Pestle ananlysis nis conmsidered to be as an effectiver tool which assist manager or
leader in identifying trhe factors which might have impact on business operations.
Political factors : Policies form,ulated as well as implemed by legal authority in the nation can
impose limits or create opportunities for business growth in the remote or macro-environment. In
context of Britannic group , business entity has gaibned suypport from goverment in form of
nfrastructure development . Legal authorutry has allowed business entities to enter to new
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market and capture other opporetunities.political external factors create opportunities for growth
and expansion in the industry
Economic factors : cahnges in these variables have direct as well as significant impact on the
finacial performance of an organisation.The increasing disposable incomes in developing
countries are a macro-environmental factor that leads to opportunities in the industry
environment. The decreasing information asymmetry is attributed to customers’ ability to
compare products based on the widespread availability of information, especially online
information that empowers customers in influencing the business.
Social factors: Changes in trends and living pattern increasing adoption of mobile devices
maintains opportunities for an organisation operating in communication and networking sector
to grow. Changes in Socio cultural factors have lead to the increase in demand for
communications and networking services. It has allowed Britannic company to increase its
profit margins.
Technological factors:There are opportunities for global business growth and expansion based
on the technological external factor of the widespread development of information and
communications networks worldwide. For instance, Britannic company invest in operations in
new markets to expand its business, based on the availability of new wireless
telecommunications infrastructure.
Legal factors : There are several norms that imposes a threat and opens an opportunity in the
industry environment. In context of Britannic company is prohibited from engaging in mergers.
Enviromental factors: these consituent have direct impact on business operations.Enviromental
factors can improve business sustainability.
Future services
Britannic Group Ltd Company is planning to develop Cloud-hosted omni channel
platforms for positive and productive inbound as well as outbound customer communications.
Business entity is further planning to improve the connectivity and network design for providing
valuable services to its clients. In addition to this an organisation also intends to deliver or offer
fully integrated voice, email, video, conferencing, messaging and real-time communication
solutions to big companies.
Financial Projections
Forecasted Cash Flow Statement of Britannic Group Ltd for consecutive years
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Particulars Year 1 Year 2 Year 3
Sales Revenue 90000 95000 96000
Opening cash balance 12000 22323 34595
Total cash accessible 102000 117323 130595
Expenditures
Cash Spent on
operations 5600 6000 6500
Advertising expenses 6007 6500 6600
Salaries and Wages 5650 6008 6507
Office supplies 3000 3200 3300
Legal expense 4000 4500 4600
Charges by bank 1000 1000 1000
Miscellaneous
expenses 3000 3020 3210
Withdrawals by firm 6420 6500 6562
Equipment bought 45000 46000 43008
Total payments 79677 82728 81287
Ending cash balance 22323 34595 49308
The financial factors must be taken into account so that company may be able to project
regarding requirement of funds in the future course of action. In relation to this, cash flow
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statement is prepared highlighting cash position of organisation in effective manner. The
forecasted statement for next three years is formulated showing that sales revenue would be
90000 in first year, would increase to 95000 and 96000 in further two years consecutively. The
opening cash balance and closing will be maximized as predicted in the cash flow statement.
Cash has increased as it will be 22323 in Year 1, 34595 in Year 2 and 49308 in next year. Hence,
positive cash flows would be generated by organisation.
LO 4
P5. Assessing exit or succession options for small business
A succession plan is defined as the strategy formulated or adopted by business owner in
order to drive an organisation towards success. Whereas, business exit strategy is considered to
be as a strategic plan developed by an entrepreneur for selling business to investors. Exit
business strategy is usually adopted by business owner for minimising the stake in a business.
Succession planning is defined as the procedure in which company make huge
investment on human resource in order to allow employees to develop leadership skills or
qualities.
Many of business owners of small medium enterprise plans to exit the market due to the
two uncertain or unfavourable event. Small medium enterprise is recognised as those
organisations which have few business operations. Micro firms do not have technology which an
enterprise can utilise for expanding business. But these business venture has high potential to
attract as well as influence large number of investors to make investment. For micro business
unit, it is very difficult to maintain sustainability in highly competitive market or business
environment. Manager in Britannic Technology Company is required to conduct market analysis.
(Lafley and Martin, 2013). It will also enable management to explore as well as capture other
business opportunities. Manager in an enterprise should make contingency plan. As effective
market plan will assist business entity in accomplishing business objectives. For every
organisation success is the main achievement of all efforts which gives brand value, high market
growth, profit revenue etc. Effectiveness of the company can be measured in terms Of its power
or potential to expand business operation.
It is required by business owner rather to Escape from uncertain situations, they should
built team of highly talented and skilled workforce. As highly skilled working will help
management in dealing with different complexities business. In context of Britannic Technology
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Company, highly talented workforce has encouraged business venture to facilitate innovation
due to which firm has able to achieve success.
Both succession as well as exit business strategy have some fundamental elements such
as extensive tax planning, etc. Few constituents of succession plan are identification of person
who will be responsible for making major and important decision for business. It also involves
the selection of leader. The essential element of exit plan are detail or information about discrete
actions which are required to be taken in order to increase the value of business.
Britannic technology organisation operates as multimedia consulting company. The
Company specializes in internet marketing and offers its services throughout UK. Business
owner as well as manager in an organisation are required to form some strategic plans in order to
drive firm towards success as well as growth. It is required by human resource manager to create
the effective working environment, as this strategy or tactic will assist business entity in
attracting fresh talent. It will also support management in increasing the value of business.
Human resource manager should be assigned with the duties as well as responsibilities
for communicating the business objectives and defining the role of every employees. It is most
important for business owner to establish clear vision and mission, as this will help management
in developing the strategies.
It is required by an entrepreneur to make plan fort bringing the improvement in business
procedure and system. As this strategy will assist an organisation in ensuring success. There are
some factors which might force companion to exit such as increase in competition, changes in
economic situation, etc. Therefore, manager should identify these forces and is required to
develop some effective plan or strategies to deal with major changes' in external environment
which have direct influence on business. Overall, there are many plans through which an
organisation can easily exit the market or achieve successful plans as well Small scale business
have small market share and involves highly risk.Business entity can enter into joint venture with
other big companies, as this strategic option will assist an enterprise in increasing the
competitive strength (Lima, Robinson and Edwards, 2014). It will also help firm in ensuring
success. By utilising the joint venture strategic option, an organisation can get access to the
resources which are required for expanding business.
The exit option which business owner of Britannic Technology Company can use is to
sell the whole assets to open market. In context of Britannic technology organisation van
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entrepreneur has decided to exit market, during that time many investors and big companies
ready to overtake an enterprise. Another option top exit an industry is that business entity can
merge with other company.
CONCLUSION
It has been concluded from the report that small and medium sized enterprises have high
potential to foster growth and achieve success. Project has also concluded that changes in the
market situation and business environment have direct influence on the business plan of SMEs. It
has also been concluded that innovation and product development are two strategies which will
help an enterprise in development. Assignment has provided the detailed explanation about
different sources from where an organisation can raise finance for developing as well as
expanding business. It has been concluded from the report that equity is an effective source of
finance as this financial source does not carry extra charge on them. Study has also successfully
demonstrated the importance of business plan. Report has also highlighted the factors or
elements which are required to be considered by the manager in an enterprise when developing
business plan. It has been recommended to the manager in Britannic telecommunication
organisation to formulate suitable plans as well as appropriate strategies' for expanding business.
There are some sucession as well as exit stratergies has been suggested to the business owner of
small medium enterprise.
s
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Online
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Succession and exit strategies are NOT the same. 2016. [Online]. Available through:
<www.smallbusinessadvocate.com/small-business-article/succession-and-exit-strategies-
are-not-the-same-3145>.
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