Quantum Technology Ltd: Planning for Growth and Expansion Strategies

This report provides a comprehensive analysis of growth planning for Quantum Technology Ltd, a SME specializing in marketing services and developing into a tech organization. The report delves into key considerations for growth opportunities, utilizing competitive analysis, Porter's generic strategy, and PESTEL analysis to assess the external business environment. It evaluates the Ansoff growth matrix to identify suitable expansion strategies and explores potential sources of funding, including retained earnings, debt financing, and equity financing, along with their associated advantages and disadvantages. Furthermore, the report includes a business plan and discusses exit or succession plans for the small business, highlighting innovation as a key driver for growth. The analysis emphasizes the importance of differentiation strategies, particularly through the engineering of quantum effects and next-generation technologies, to attract a broader customer base and achieve sustainable competitive advantage. The report concludes by emphasizing the role of product development, leveraging quantum effects to enhance services in healthcare, education, and other sectors.

Unit 42 – Planning for
Growth

Executive summary
The current project is based on the topic of planning of growth that makes an important part
of all business organisation. Growth is important and vital to remain sustainable in business
environment along with ensuring effective competitive strength. Current project is conducted on
is Quantum technology Ltd which is operating as a SME that is engaged in the providing the
marketing services and soon develop to tech organisation that is situated at Lincolnshire, United
Kingdom. Beside this, current report comprises of discussion about key consideration for growth
opportunities through the help of competitive analysis. Beside this, use of Porter’s generic
strategy and PESTEL analysis has been also made to analysis about the external business
environment. Along with this, an evaluation of Ansoff growth matrix is also made along with the
potential sources of funding which supports improved growth and better financing of firm.
Beside this, a business plan and exit or succession plans for a small business are also included in
current report which provide a detailed information about how a SME focus on coming with
innovation for better growth.
Table of Contents
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Key considerations for evaluating growth opportunities along with justification.........1
Analysing opportunities for growth through applying Ansoff growth vector matrix.. .4
LO 2.................................................................................................................................................5
Potential sources of funding available to businesses along with benefits and drawback5
LO 3.................................................................................................................................................7
Business plan for growth......................................................................................................7
LO 4...............................................................................................................................................10
Assess exit or succession options for a small business along with the benefits and
drawbacks...........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth is mainly related with the preparation of plans, policies and
strategies that are being adopted by a firm to secure sustainable growth and competitive
advantage within the target market to have higher success and growth (Black and Steiner, 2021).
The organisation selected for current project is Quantum technology Ltd which is operating as a
SME that is engaged in the providing the marketing services and soon develop to tech
organisation that is situated at Lincolnshire, United Kingdom. Quantum technologies are
expected to have applications across multiple future multi-billion-pound industries in many
markets and sectors: Quantum timing devices, Quantum gravity sensing devices, Quantum
positioning systems, Quantum secure communications, Quantum enhanced imaging, Quantum
computers. Beside this, the current project comprises of analysis of key consideration for growth
opportunities through the help of competitive analysis, Porter’s generic strategy and PESTEL
analysis. Further, an evaluation of Ansoff growth matrix is also made along with the potential
sources of funding. Beside this, a business plan and exit or succession plans for a small business
are also included in current report.
LO 1
Key considerations for evaluating growth opportunities along with justification
Growth is most imperative and essential aspect for all business organisation that tend to
provide assistance and direction towards higher sustainability and competitive. With respect to
the Quantum technology Ltd they are exploiting the naturally occurring quantum effects and
driving a new generation hitherto impossible devices to gain improved level of growth along
with focusing on systems from breathtakingly powerful medical imaging devices to entirely new
methods of computing to solve currently intractable problems through the help of engineering of
quantum effects into next-generation technologies (Cosenz and Bivona, 2021). Apart from
having improvement in the quality of products and services, effective planning is required by
Quantum technology Ltd to have better direction and growth in business environment in a
feasible manner. Therefore, the key consideration that needs to evaluated by Quantum
technology Ltd to have higher growth opportunity are discussed and evaluated below with proper
justification:
Competitive analysis
1

The manager of the Quantum technology Ltd has conducted an external analysis to
evaluate about the different growth and expansion strategy adopted by its rival companies to
remain ahead of them in order to secure higher sustainability and growth in business
environment. To gain competitive advantage in the business environment the Quantum
technology Ltd has focused on effective management of its resources which comprises of skilled
employees and use of improved and more automated technology (Eyvindson and Kangas, 2015).
Further, the Quantum technology Ltd also have exclusive capability of serving IT sector that
enhance its growth opportunity along with core competency of providing most effective
marketing services for its customers at reasonable prices which supports improved growth
opportunity for Quantum technology Ltd.
Beside this, to have better assessment and evaluation of the opportunities available in the
current business environment the managers of the Quantum technology Ltd has made used of
porter’s generic model and PESTLE analysis, a description and justification for which has been
provided as below:
Porter’s Generic strategies
Making use of Porter’s Generic Strategy is justifiable for Quantum technology Ltd as it
allows analysis of the strategy which provides higher competitive edge within the target market.
The man strategies that can be adopted by Quantum technology Ltd to gain higher competitive
strength and improved growth in the target market are discussed and analysed as below:
Cost Leadership- As per this strategy higher competitive strength can be gain by
Quantum technology Ltd through offering its services at a lowest cost in the market which
attracts a larger number of customers.
Differentiation- It comprises of focusing in the unique and most exclusive services in
order to influence higher number of customer interest to ensure improved growth and higher
productivity for Quantum technology Ltd.
Focus- This strategy is suitable and justifiable for Quantum technology Ltd to target a
specific segment of customers that is further bifurcated into two parts i.e. cost and differentiation
focus. The Quantum technology Ltd can adopt cost focus strategy to attract larger number of
customer through reducing cost of its services within a nice market scope (Friedman, 2021). On
the other side, the Quantum technology Ltd can adopt differentiation focus to attract a nice
2

customer based through producing and introducing innovative services through improved
engineering.
With respect to above analysis, adoption of differentiation strategy is seemed most
suitable to target a larger number of customers through having improved in its services through
applying better engineering for providing exclusive and more efficient services.
PESTEL analysis
Use of PESTEL analysis is justifiable and suitable for Quantum technology Ltd as it
supports better analysis of key factors of external environment to effectively evaluate and
analysis the present business opportunity to have better growth.
Political- The randomly changing taxation practises is leading an adverse impact on the
growth of the Quantum technology Ltd as it need to revise its tax structure on random basis
which ultimately leads to higher cost of operations.
Economical- Due to the Brexit and current global pandemic of Covid-19 the economy of
UK is facing recession and tough times that is creating certain issues for Quantum technology
Ltd. But, still this slowdown of economy is creating an opportunity for Quantum technology Ltd
to work within a low cost structure that leads to more efficient business operations (Huang and
Zhang, 2014).
Social- The society of UK is highly active on social media and other online platforms and
always supports and open for new and innovative ideas that is creating many growth
opportunities for Quantum technology Ltd. Use of social media marketing and innovative
technology is offering an effective way for Quantum technology Ltd to attract and cater larger
number of customer for its exclusive and innovative services (Janssen and et.al., 2014).
Technological- Use of latest technology can be made by Quantum technology Ltd to
have improved promotion and marketing of its improved engineering of quantum effects that
comprises of next-generation technologies. Thus, improvement in technology and engineering
level is offering many growth and expansion opportunity for Quantum technology Ltd.
Environmental- Making use of renewable resources and focusing in reduction in carbon
emission and other harmful substances is leading a positive impact on the growth of Quantum
technology Ltd (Leigh and Blakely, 2016).
3

Legal- Many employment act and heath and safety act are being introduced and implicated
in UK that is creating a pressure on the Quantum technology Ltd to provide a safe and positive
workplace environment to its employees that is creating positive impact on their performance.
Analysing opportunities for growth through applying Ansoff growth vector matrix.
Ansoff Matrix is taken as most vital framework that provides effective analysis of range of
growth strategy for a firm which helps and supports enhancement in their sustainability in the
marketplace. The manager of Quantum Technology Ltd has also made the use of Ansoff Matrix
to determine about best strategy which supports better growth which are discussed as below:
Market Penetration- This strategy suggests that Quantum Technology can grow through
offering its present existing services in its present market areas through applying some more
effective marketing strategy in order to have increase in its customer base. It is least risky
strategy for growth as it comprises of providing a pre-existing service in within existing market
with the help of aggressive marketing strategy to attract and cater the interest of untouched
customers within the existing market (Liu and et.al., 2014).
Product development- This strategy focuses on offering a completely new and exclusive
product to the customers within the same marketplace with the aim of attracting larger number of
customers. Use of this strategy can be made by the manager of Quantum Technology to attract
larger number of customers for improved services based on better engineering and use of
quantum effects as next-generation technologies (Miguez, Rezende and Veról, 2014).
Market development- This strategy consists of looking at some new market for launch of
an existing product. Thus, adoption of this strategy by Quantum Technology comprises of
looking out for expansion at some new market by launching its services outside its current target
market which ensures improved growth through leading an improved market share and higher
customer base. Beside this, it has been analysed that the strong goodwill and brand image of
company with the existing products will helps and allow a company for effectively attracting
new customers at new marketplace which ensures improved growth and higher productivity for
the Quantum Technology (Okumura, Hashimoto and Fujita, 2021).
Diversification- It is taken as most risky strategy which consists of entering a new market
with new product thus, it is quite expensive and risky especially for a SME. Thus, adoption of
diversification is not suitable and much effective for Quantum Technology as being a small
4

enterprise making huge capital investment to introduce a new product and new market place is
not much suitable and justifiable for this firm.
Thus, on the basis of above discussion, implication and adoption of product development
strategy is most suitable and appropriate for Quantum Technology as it supports coming up with
improved services with the engineering of quantum effects that is considered as next-generation
technologies. Beside this, adoption of product development also crates better growth opportunity
for Quantum technology through enhancing scope of target customers by the way of offering
improved services in healthcare sector, educational sector and other sector through coming up
with more improved and better services which meets expectation and desires of larger number of
customers. Such as breathtakingly powerful medical imaging devices will resolve many
problems faced within the heath care sector and ensures improved services through solving
current problem of intractable in health care sector (Pothukuchi, 2015).
LO 2
Potential sources of funding available to businesses along with benefits and drawback
Finance and monetary funds is taken as the backbone and most essential aspect of any
business organisation that is needed to effectively operate the day to day business activities along
with meeting the future expansion and growth of the firm. The various sources of funds that are
available for the Quantum Technology Ltd are discussed as below along with the benefits and
drawback of each option.
Retained earnings
It comprises of the portion of the business profit that has been not distributed in the
shareholders in form of dividends and has reserved and stored back in the business for the
purpose of reinvestment or meeting some future needs. The main advantage and disadvantage of
retained earnings for Quantum Technology Ltd are discussed as below:
Advantages- Simplest and free of cost source of financing for Quantum Technology Ltd that
provides long term and permanent basis of financing. Helpful for Quantum Technology Ltd to
effectively meet and overcome the unforeseen contingencies along with facilitating money for
future growth and expansion (Wang and Meng, 2021).
5

Disadvantage- Higher retain earnings from profit might leads to issue of dissatisfaction in
the shareholders of the Quantum Technology Ltd along with leading threat of capitalization of
resources which is not good for the financial affairs of the Quantum Technology Ltd.
Bank Loan
It is taken as one of the most common form of long term as well as medium term financing
for a firm which comprises of taking a lump-sum amount of money from bank and other
financial institution.
Advantages- The rate of interest on bank loan is comparatively lower than other source of
financing along with ensuring safest and risk free finance for Quantum Technology Ltd as all the
information and conditions related with loan and interest amount are clearly stated and agreed in
written form.
Disadvantage- Requirement of a larger number of formalities is the biggest drawback
associated with financing of Quantum Technology Ltd through bank loan along with this it also
comprises of risk of sizing of security and collateral assets (Proag, 2021).
Angel Investors
It comprises of business tycoon and other growth investor who likes and tend to invest in
potential small and medium sized venture along with providing required assistance and capital
funding.
Advantage- The investment through angel investor is safer and more cost efficient for
Quantum Technology Ltd as compared with higher debts and loans and it also ensures timely
assistance and guidance from experienced professionals to have improved growth and success
level (Yu, 2021).
Disadvantage- Some time angel investors resulted in controlling and regular monitoring of
business operation that is risky for Quantum Technology Ltd as it leads to decentralisation of
actual power of owner and creates share of third party in company’s equity.
6

LO 3
Business plan for growth
The business plan basically comprises of a proposal and written document of an
organisation in which policies and business strategies of an organisation is discussed (Black and
Steiner, 2021). In context of Quantum Technology following business plan is developed by its
manager to supports improved growth and higher sustainability of this organisation through
emphasis on the product development with the help of communing up with the engineering of
quantum effects that is considered as next-generation technologies:
Overview of the company- The Quantum technology Ltd was incorporated in the year of
1938 situated at Lincolnshire, United Kingdom which was first started as a small business aim at
providing marketing services to its customers based on technological innovation. With time, the
Quantum technology limited has emerged as one of the best UK oriented marketing company
and thus, it started looking it some improved use of engineering and technology to support
creation and development of improved product to meet the expectation of customers across
various sector through making use of quantum engineering in effective manner (Cosenz and
Bivona, 2021).
Executive summary
The current business plan is focused on coming with the improved product to meet the
expectation of customers across various sector through making use of quantum engineering in
effective manner. Along with this, the current business plan is also focusing on facilitating a new
generation of quantum technologies has moved beyond simply exploiting naturally occurring
quantum effects now driving and enabling a new generation of hitherto impossible devices and
systems from breathtakingly powerful medical imaging devices.
Mission and vision
The vison of Quantum technology is, “To become top leading marketing company across
the world through applying effective technology in order to become top leading marketing
company across the world”. The mission of Quantum technology is, “To promote their transfer
to new sector through improved product development in order to provide scientific consulting
services to companies and investors in various fields of engineering” (Eyvindson and Kangas,
2015).
Situational market analysis
7

The manager of Quantum Technology ltd has made use of SWOT analysis to evaluate
about the present internal strengths and weakness of the firm along with analysing about the
external threats and opportunities which are stated as below:
Strengths
Highly skilled workforce is a greatest strength of Quantum technology Ltd along with
regular training and learning programs which supported achievement of improved growth and
success. Automation of activities and use of latest technology is also a strength of Quantum
technology ltd along with high level of customer’s satisfaction and superb performance in the
market (Friedman, 2021).
Weakness
Having high days’ inventory as compared with competitors is the biggest weakness of the
Quantum technology ltd along with not having proper forecasting of demand are the main
weakness. Beside this, lack of proper financial planning and insufficient investment in new
technology is also a weakness.
Opportunities
Effective use of technology and online channels are offering better way of promotion to
attract and cater larger number of customers. Beside this, improvement in technology and
engineering is also supporting huger growth opportunity for Quantum technology Ltd (Huang
and Zhang, 2014).
Threats
Intense competition and risk of new entrants is the biggest threat faced by Quantum
technology Ltd.
Formulation of Budget
In context of Quantum Technology, estimated budget for this company are stated as
below:
8

On the basis of above represented cash flow statement, it is depicted that Quantum
Technology is paying taxes every year and its cash in hand value for all three years that is 2015,
2016 and 2017 are $102203, $200354, $238503 respectively. On the other hand, overall income
of the company was around $72001.
Implementation of Plan
For proper implantation and execution of current business plan, use of KPI (Key
performance indictor) has been made by the managers of Quantum Technology Ltd as it leads a
better control and check on various activities and task along with the performance and efficiency
level of the employees (Janssen and et.al., 2014).
Conclusion
9