QTR Transport Business Growth Strategies: A Comprehensive Analysis

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PLANNING FOR GROWTH
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Table of Contents
Introduction –................................................................................................................... 3
LO1 Key considerations for Growth options.....................................................................4
LO2 Sources of Funds and their Implications to the Business.........................................7
LO3 Business Plan.........................................................................................................10
LO4 Exiting Strategy...................................................................................................... 15
Conclusion..................................................................................................................... 17
References.....................................................................................................................18
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Introduction –
Small and medium-size enterprises are considered as small organizations whose
company size is not more than 50-250. They are independent firms with fewer
employees. Small enterprises are determined by two standards that are no. of
employees and resources they have. But different countries have their own standards to
qualify this identification. Small size business needs investors to grow their business on
a large scale. It’s a way to create possibilities to survive in the market, to nurture and
grow assets. Growing business in this tough competitive market is not an easy task.
Industries need to set their goals towards success and should design a business plan to
attract the investors towards their business. Investors are the persons that put his
capital into financial schemes with the expectations of profit.
The assignment highlights the journey of small marketers from start entering into the
market to set their foot and get profit from it. In the context of QTR transport, it is one of
the best UK’s leading warehouse companies that have started its organization on a very
low scale. But now it has marked its identity on the global market. Currently, The
Company is known By CM Downton – Thatcham that operates distribution services and
storage solutions worldwide.
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LO1 Key considerations for Growth options
In today’s environment, comfortable growth and profitability is not a guarantee for small
marketers. As technologies are getting advanced and this impacts on life cycle people.
In daily changing society business model has taken a new shape and it is important for
marketers to understand these changes and perform according to that. To achieve
sustained growth industry needs to follow some strategies.
Understand the Customer desire – The First thing to focus on is what customer wants
their expectations from the product and services according to their desire. But with time
Customers behaviour is getting changes as they want more and more. In the context of
a company when this kind of issue has occurred in front of Qtr Transport, company start
to redevelop their segment around customers to meet their expectations (Micah, et. al.,
2018).
Strengthen the manufacturing by investing in the right direction – Many times
companies only focus on production and these results in terms of loss in consumption
rate. Regardless of growth strategies, the company needs to focus on successful
execution.
Competitive Advantages –
As with the changing demand, companies are well focused to respond to this changing
environment. They are making efforts to get advantages from them.
The competitive advantages are defined as resources and capabilities that put a firm in
a better position in relation to their competitors (Higgins, et. al, 2019). Some strategies
have been developed which are considered as competitive priorities are –
Quality – Companies can get high margin with this competition as they just need to
focus on some points that should be included in their production. These are – Low rate
of defection, product equity, performance reliability, environment concern.
Low cost – The ability to manage the product cost with its equity. Also, maintain
effectiveness and value-added to production.
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Flexibility – Flexibility should be defined in terms of deploy and redevelopment of the
item according to conceptual changes. In concern of that companies should focus on
several features such as readjustment of planning tool and design.
Focus on customer priorities – Customers are the centre of every business. Industries
are more focused to fulfil their desire. It includes the customization of services,
communication support and dependable promises.
Globalization effect on competitive advantages –
Firms continuously facing the challenges to stay in the market but they are also getting
benefits from going global. Globalization is considered as a process through which
small business marking their identity on the global market. However being global
making them financially strong as well as they may encounter a few difficulties (Yin,
2016).
Globalization can be an opportunity for businesses to grow fast and make their brand
value. This will help small vendors to get good investors.
With influenced by the changing environment industries businesses determine
circumstances from day today. Because of this firm need to update their resources to
analyze business need. The detailed analysis of the marketing environment is called
PESTLE analysis.
PESTLE analysis consists of components that affect the changes. Each letter in
PESTLE indicates a set of factors that affect every industry somehow directly or
indirectly.
Here is the PASTEL analysis of Qtr Transport. Qtr specializes are fast, convenient and
reliable moment throughout the U.K. They are providing fully integrated transportation
facilities and specialize in distribution options. PASTEL is an important external factor
which is described below -
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P denotes Political Factor – The political factor is very important as it affects the whole
industry. A single change in any law like minimum wages taxation impacts the attire
business world. As companies were abiding with these rules made by the government,
they have to make changes in their business as per law.
Another term associated with this law is the tax rate. If the tax rate decreases it directly
impact the industry in terms of profit. Government has provided a license to the Qtr
Transport to run their services (Yin, 2016).
E – Economic Factors – Economical changes also connected with the cost of company
items that it exports to another company. A Qtr Transport Company supply the products
outside the country and the product cost is also depends on transportation. If the
economy changes or increased then it affects the individual item cost as well.
Sometimes change in the economy can be a benefit for the industry as it brings new
opportunities for career growth.
S – Social Factor – Social factor defines the marketing visibility of the company. It
depends on public behaviour and change in their demand. When Qtr was introduced it
has no market value, with time it improves his existence in the market so that let people
talk about the company. When a company becomes memorable and get the public
demand then PBT can’t do anything. To solve this issue company start to change its
policies and improve its transportation services as where other companies take 48
hours to deliver product QTR perform the same task in 24 hours.
T – Technology Factor – Technology has a vital role in expanding business on a global
search. With the changing society, the IT market has become a need for people.
Nowadays technology becomes a need for every business. In transportation, a tool is
used to scan the items called scanner that are technology-oriented. And the industry
needs to update its equipment’s with the changing environment and ensure their
reliability and working.
L – Legal Factors – Companies are very much aware of the legal terms they have to
follow. Legal factors have a major role in every section (Anderson and Eshima, 2013). If
the organization has bound up with some contracts and services towards another one,
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then they have to be in their terms no matter how these affect the company value. The
same thing goes with the FBT as they have to full right to take action against the
customer who broke their contract policies.
E – Environmental Factor – There are some cases when environment affect the
company services and in result of that it is marked as a question on companies
commitment. For example - Sometimes due to heavy rain the transportation van gets
stuck and delayed by their actual time.
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LO2 Sources of Funds and their Implications to the Business
Finance can be termed as the blood of a business. No business can run effectively
without effective finance (Anderson and Eshima, 2013). The managers and leaders are
more considerable and viable toward sources of finance. In the event of organizing the
financing in business, the requirement of analyzing the various set of financing is very
essential. Financing and funding are the most effective and important functions of a
business. A light of understanding of the financial condition of Qtr transports is clearly
visible on a business landscape. The fundamental sources of finance in the business
must be identified by the mangers and leaders of an organization.
Generally, the investors and creditors often found the organization on the basis of
goodwill and its accomplished desires. The stakeholders are also more likely to get
attracted towards the most recognizable organizations which could give them desired
return on investment. The need for understanding the financing system in this
assessment is very important to highlight critical aspects of Qtr transports. The
techniques and concepts of generating the sources and funds for the company their
managers have applied are prominently out of the box but still, each factor in the
business has their pros and cons. The business of Qtr transports has included different
sources of finance but it has also some benefits and drawbacks in enabling them as
mentioned below:
Proprietors’ investment
The very common and primary sources of finance perhaps each business obtains
because being a small-medium enterprise, the investment from investors is the best
possible method to arrange sufficient capital to start up the business (Anderson and
Eshima, 2013).
 Benefits: The use of own cash and funds helps to remove all the strings and risk
from the business. The owners are only eligible participants who share the profit
according to the sharing ratio. They do not require to give any interest, no
repayment rescheduling, no travelling expense for meetings, no convince to any
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stranger to investing in the company. Personal financing is the easiest and fast
financing in enabling the business to grow.
 Drawback: In converse, there are numbers of disadvantages also through which
the business can affect in negative terms. The personal investment can totally be
risked by the owners and bearer of all the losses is also the owners. The owner
can easily lose their entire savings by investing in a business.
Investors and banking institutions
The business mainly called ventures and also named as angel investors are the main
participants of involving this financing (Kogan, et. al., 2017). Qtr transports are also one
of them which arrange their financing and funding from such sources. According to the
going concern concept of an accounting standard, this can be the tremendous sources
of finance.
 Benefits: The most effective benefit or advantages of acquiring these sources of
finance is that investor always makes large commitments to the business to
finance and take care of the business in one fell swoop. The bank loans are the
easiest way to finance an organization by finding and discussing them about the
loan.
 Drawbacks: The acceptance of the high number of investors could lead to the
significant thrashing of independence also. In the other side, the bank will also
cross-check the cash flow statement of the organization to give loans (Kreer, et.
al., 2015).
Crowed-sourced funding
The recent funding of similar type of businesses is known as crowd-sources funding.
Being a small-medium organization, Qtr transports often deals with this funding. In order
to get the funding in business, they solicit numbers of small investors in the form of
shareholders or debenture holder. With the help of this contribution, the organization
continues its funding.
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 Benefits: The sum total of a large number of small investors become a large
number of contributions to investment and can lead the business to the next
level. This investment is far better than the funding from a bank or any other
source.
 Drawbacks: The biggest disadvantages in this funding are that funders are not
patient and they often seek for a quick return on investments (Ó Dochartaigh and
Svensson, 2013). The owners might not able to deliver expected returns to the
investors and may get failed to deliver new product development in the market
quickly.
Based on the above sources of funding the financiers often take very critical steps to
involve new sources of finance in the business. The main objective of increasing
funding in business is only increasing its recognition. A healthy organization can bring
many contributions to the economy of the country. In the global world of business, Qtr
transports are drastically changing their business practices by interrelating business
functions in the business. A set of conceptual theories and applications have stated that
the new technique of sourcing the business can bring new market share and increase
the wealth of the business. Similar to the transportation facilities and funding of the
business, their managers and leaders have applied very drastic challenges in financing
their leverage to the transportation services (Sainidis, et. al., 2019).
They have adopted different techniques to capitalize on their business and increase
their wealth. A set of knowledge has found that Qtr transports are participating in
generating funds for their beneficiaries and exploration of the workforce. The techniques
as follow:
 Value capture: According to the statistics, they are currently using this strategy
to capitalize on their business. They are adapting the technique of commercial
development with the help of commercialization in the business. The increment in
property taxes also increases in revenue.
 Public-Private partnership: The growing number of population is also
increasing the level of profit in transportation (Yang and Wang, 2019). According
to the stats, more than 25 states of the UK are becoming the partner of
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transportation facilities across the country and private companies are delivering,
financing or operating the services of Qtr transports.
 The infrastructure of funding: The dealing with small creditors and investors
they have adapted by exiting and floating of shareholder techniques. This
technique helps them to maintain sufficient numbers of shareholders in the
business. It also allows the new shareholders in the organization to be the part of
Qtr transports and utilize their funds by providing them the very impressive return
on investments.
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LO3 Business Plan
QTR Transport Ltd
Address: 302, New Greenham Business Park, Thatcham RG19 6HS, UK
Hours: Open 24 hours
Phone: [phone]
Website: https://www.qtrtransport.co.uk/home
Executive summary
A business plan for business shows its basic objective and future assessments (Li and
Chen, 2019). The business plan may include different aspects of the business which is
conquered by the management. Similarly, Qtr transports have also made a business to
extend their business and overcome the challenges in their functional areas. The main
objective of creating a business plan is to overcome the desired objectives with the help
of clear vision and logical thinking.
Qtr transport has a very clear vision or diversifying in order to globalize the business.
The exploration of business can be possible if they enable fast delivering services to the
customer with very digestible prices. The identification of their competency is very
necessary to measure the performance in order to meet the required potential for
providing higher quality services. The potential of Qtr organization can be found by
processing higher customer satisfaction and delivering ultimate services. In order to
make the perfect business plan, they required sufficient finance and other sources.
Objectives
The main objective of the company is to deliver higher quality services to the customer.
To accomplish their goals and objectives, Qtr transport is only required to involve
different aspects of approaches and strategies (Björklund and Forslund, 2019). A set of
conceptual theories is way too necessary to provide 24/7 services to customers. The
identification of the customers is very important to accomplish their objectives. In
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