Quantum Technology Ltd: Planning for Growth and Development Report

This report provides a comprehensive analysis of Quantum Technology Ltd, a UK-based marketing services provider for tech organizations, focusing on growth planning. It begins with an introduction to the company and its objectives, followed by an examination of its competitive advantages, including skilled employees and effective marketing services. The report assesses market opportunities using Porter's Generic Strategies (cost leadership, differentiation, focus) and PESTLE analysis to evaluate external factors. It then applies Ansoff's growth vector matrix (market penetration, product development, market development, diversification) to identify optimal growth strategies, recommending market penetration. The report further assesses financing options, including bank loans and loans from friends and family, and recommends a business plan, including company overview, products and services, mission and vision, and situational market analysis. Finally, the report briefly touches on exit or succession strategies for small businesses.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................2
PART 1............................................................................................................................................2
Explicate the basis of competitive advantage for business..........................................................2
Assessment of the opportunities accessible to business..............................................................3
Assessment of options for growth, apply Ansoff’s growth vector matrix with assessment of
risk of each option.......................................................................................................................4
An assessment of options for financing growth..........................................................................5
Recommendation for business.....................................................................................................6
PART 2..........................................................................................................................................10
Exit or succession strategy for small business...........................................................................10
Conclusion.....................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Primary objective of organisation is to gain success as well growth within market. A
strategic course of action which endows assistance upon an enterprise for carrying out growth as
development of entities is regarded as planning for growth (Albert, 2017). Major responsibility
of top executives is to furnish employees with supervision and guidance by which organisation
can align with long term objectives of growth. This report is based on Quantum Technology Ltd
for acknowledging and gaining knowledge with respect to planning for growth. It is a small
enterprise which provides marketing services to tech organisations which are based in UK. This
assignment deals with Ansoff Matrix and growth strategies which can be utilised by firm. Along
with this, different sources of finance are illustrated with their strengths and weaknesses.
Furthermore a business plan has been provided.
PART 1
Explicate the basis of competitive advantage for business
Competitive analysis: The initiative taken by organisation for evaluation of various
strategies of rival organisation. With respect to Quantum Technology, external analysis has been
carried out by management for making improvements in their existent services by which they
can intensify their sales within market (Allmendinger and Haughton, 2012). It has been
evaluated that the major resources are skilled and experienced employees who carry out their
responsibility in an effective manner by which satisfaction levels of customers of Quantum
Technology can be intensified. Firm possess ability to serve IT sector with their valuable
services of marketing. A core competency of Quantum technology is to provide effectual
services to their customers at reasonable as well as affordable prices through which they can
acquire more number of clients.
Assessment of the opportunities accessible to business
Every organization must examine market in effectual manner for finding out crucial
variations in firm by which overall effectiveness can be enhanced. With respect to this,
management of Quantum Technology is making use of diverse framework; they are Porter’s
generic strategy and Pestle analysis for analyzing opportunities which are available to
organization (Barbour and Deakin, 2012). They are elaborated below:

Porter’s Generic Strategies: These strategies are responsible for gaining competitive edge
in target market. It includes different strategies, they are explicated below:
Cost leadership: Quantum technologies can have competitive edge by providing marketing
services at minimal cost through which more numbers of customers can be attracted towards
their services (Beatley, 2014).
Differentiation: Within this strategy, Quantum Technology emphasise on furnishing unique
services through which customers interest can be influenced.
Focus: This strategy is basically formulated for particular segment of customers.
Furthermore, they are classified in two parts they are cost focus as well as differentiation focus.
In context of Quantum Technology, the organisation can make use of cost focus strategy for
reduction of prices for services provided by them within a specific market scope. In case of
differentiation focus, the organisation must bring in innovative services with respect to targeted
section.
With respect to above mentioned strategies, Quantum Technology can opt for cost
leadership by which they can grab attention of most of the people’s.
PESTLE Analysis
Pestle analysis is carried out for analyzing impact of external factors on organization in both
positive and negative aspects (Eddleston and et. al., 2013). The manager of Quantum
Technology has carried out Pestle analysis to understand impact of external environment on
business. All the external factors are mentioned below:
Political: Variations within political situations prevailing in United Kingdom will create an
impact on operations of Quantum Technology. As alterations within taxation policies of UK will
lead to enhanced cost of their services.
Economical: The recession period has created wide range of opportunities for Quantum
Technology as due to this various firms has fired their employees in bulk. This created an impact
on them and they started moving to have their own business. This provided Quantum
Technology with an opportunity to provide services to those entrepreneurs by carrying out
marketing of products which are being offered by them through the usage of effectual marketing
strategies (Glock, Jaber and Zolfaghari, 2012). As a result, they (entrepreneurs) will be
contributing within growth of customers’ of Quantum Technology within market of UK.

Social: United Kingdom is a socially active where most of the people make use of social
media channels. This acts as an opportunity for Quantum Technology, as social media is the
strongest and only promotional tool which is used by them. This will lead to creation of
affirmative impact on organisation for connecting wide range of employees for carrying out
promotion of products as well services of their clients (Goodfellow, 2013).
Technological: Quantum Technology can opt for latest technologies for carrying out their
promotional activities. This is due to the reason that United Kingdom is advanced country in
terms of technology that possesses all the crucial resources which are associated with
technology. It makes easier for Quantum Technology to approach for technological tools which
are required by them in effectual manner. This will lead them to acquire more number of clients
as well as customers towards services provided by their clients.
Assessment of options for growth, apply Ansoff’s growth vector matrix with assessment of risk
of each option.
Ansoff growth matrix is one of the most effectual marketing tools that guides business
organisation for selection of appropriate growth strategy. In context of Quantum Technology,
there manager has carried out effectual Ansoff matrix to identify best strategies for themselves
by which they can attain growth in an impelling way (Grover, Bokalo and Greenway, 2014).
These strategies have been explicated below:
Market penetration: As per this growth strategy, organisation can grow by furnishing
existing services within a market area for enhancing market shares. In context of Quantum
Technology, management of organisation can opt for this strategy as they are attentive with their
clients as well as services which will aid them to enhance performance of their sales by
influencing large number of customers which are present with market.
Product development: In this strategy, business is required to furnish new products
within existing market for attracting maximum number if clients towards services furnished by
them. Management of Quantum technology can go for this strategy by maximising their
marketing services within UK. These services must be developed as per requirements of their
existent customers. As a result of this, the organisation will able attract number customers
towards them (Lewis, 2013). Along with this, it will also lead to enhancement in performance of
sales quickly which will lead to increased profitability.

Market development: As per this strategy, business entities can grow in an effective
manner while launching their existing products within new market. With respect to Quantum
Technology, organisation can grow their business easily by launching existent services outside
United Kingdom in order to approach wide range of customers (MacLeod, 2013). New
customers can accessed which will lead to enhancement in performance of sales of organisation
in an appropriate manner.
Diversification: It is the risky strategy for Quantum Technology as business strategies are
needed for introducing new products within a new market. This is very risky as well as
expensive for smaller enterprises.
With respect to growth strategies, it has been found that market penetration strategies are the
best option for Quantum Technologies. It is due to the reason that organisation need not have to
spend extra expenses. They have to make extra efforts for finding out new customers within
existing market (Mitchelmore and Rowley, 2013). For an example, management of Quantum
Technology can identify new customers within United Kingdom for approaching diverse sectors
from technological organisations. This approach can be utilised within educational institutes and
healthcare sector for enhancing number of customers. It will lead them to improvisation within
performance of sales thereby profitability of entire organisation can be improvised in an effectual
way.
An assessment of options for financing growth
It is extremely essential for an organisation to grow from time to time and ensure that
profit is made. With reference to Quantum Technology, they are planning to approach healthcare
sector as well as educational institutes as their clients for whom they will be offering marketing
services. For this management of organisation is to identify appropriate way for funding option.
There exist various sources of funds that are available for small businesses at low interest. Some
of them are explicated below:
Bank Loan: A loan is given by bank to any organisation and in return they have to pay
some interest on the amount which they have taken from bank. There exists a specific
department for loan which is responsible for furnishing services for their customers (Moseley,
2013). Along with this, security is taken by bank and the essential criteria must be accomplished
by Quantum Technology. They can also make of option by which they can enhance their funds.

Advantage: Bank is responsible for giving loan to organisation at ostensible rate of interest.
Organisation can return that amount by some instalments within stipulated time frame.
Disadvantage: The documentation procedure for bank is time consuming and if an
organisation is not able to pay instalments then their security can be corrupted (Osiyevskyy and
et. al., 2013).
Friends and Family: This loan is taken from family and friends for increasing their funds. It is
very easy option as they do not take any kind of security. Quantum Technology can opt for this
option for raising their funds. It is the best method for small organisations.
Advantage: It is complimentary option for raising funds as in this case security is not
needed in this process as well as hardly any documentation occurs.
Disadvantage: When organisation is not able to return amount within stipulated time frame
then the problem will be raised. By these family members as well friends will start interrupting
in the process of decision making (Schetke, Haase and Kötter, 2012). In this process the relations
will be suffering.
With respect to above mentioned sources of diverse funding, it has been observed that bank
loan is the best option for raising the funds by which organisation can have large amount of
funds by which expenses of business can be carried out in an appropriate manner.
Recommendation for business.
Business plan is a written document which acts as a blueprint for organisation by which
appropriate guidance can be given to business manager while formulation of trenchant strategies.
In context of Quantum Technology, it is suggested to manager of this organisation to follow the
following business plan by which growth can be achieved quickly:
Overview of the company: In year 1938, Quantum Technology was incorporated. They
deal with furnishing marketing services to technological organisations. It is the UK’s best
marketing oriented organisation who delivers their services in UK as well as its periphery areas.
Products and services of company: The business entity renders highly attractive services
to their customers that also comprises of marketing campaigns, etc. These services are provided
to technological organisations (Ward, 2016).
Mission and vision: The mission statement of Quantum Technology is to emphasise on
influencing interests of their probable customers through rendering high quality services within

market so that maximum revenue can be generated. The vision statement comprises of becoming
a leading marketing organisation around the world.
Situational market analysis: Owner of Quantum Technology focused on carrying out
effectual situational analysis for improvising their knowledge with respect to strengths of
organisation and available opportunities in the market for growing business in smoother way
(Wey, 2015). In this context strengths and opportunities are described in an elaborated way:
Strengths Opportunities
 Quantum technology owes strong
relationship with its customers that id
developed with their effective
marketing services that have been
developed in the past.
Maximum number of marketing services
of this company is based on advance
technology that helps those marketing products
and services of clients with maximum number
of customers (Zhang and et. al., 2013).
 This business enterprise can expand its
business by introducing their services
in other countries too.
 Quantum technology can also increase
its number of clients by approaching
other fields of industry such as schools,
hospitals, colleges etc.
Formulation of budget: After carrying out situational analysis, other step of business
plan is to develop a budget for all the activities. The estimated budget for Quantum Technology
is presented below:
Pre launch cash budget

Identification of targeted market: The target market for Quantum Technology is health
care sector & educational institutes.
Allocation of resources: Resources will be assigned to each and every department as per
their needs (ZHANG, ZHAO and CHEN, 2013).
Implementation of plan: The entire business plan will be executed by organisation by
analysing all these steps within a team of key persons and it can be altered depending upon
requirements.
PART 2
Exit or succession strategy for small business
Every organisation is initiated by their primary motive for attainment of their objectives as
well as goals within specified time duration. These goals and objectives aims at growth &
development of entities within a speedy manner. To assist growth of organisation manager is
responsible for carrying out overall evaluation of market as well as find out the significance of
making alterations within services and products (Ziari and et. al., 2012). It will assist to enhance
levels of contentment which is gained by customers and also creates a significant impact on
positioning of entities within the market. But due to the impact of external forces, it has become
almost impossible for organisations to attain their targets within timely duration. In such cases,
various businesses have opted for exit approach for their firm due to constant losses which are
borne by the entity. It looks better for this organisation to formulate exit so that they need to bear
further losses. With respect to Quantum Technology, they are supposed to execute success or
exit strategies according to prevailing conditions in the market. For selecting appropriate and
relevant strategy, management need to acquire knowledge associated with the same. They are
provided below:
EXIT STRATEGIES
Organisations operating in a corporate world needs to have relevant and adequate profits
by which they can survive as well as sustain in market for longer duration of run (Albert, 2017).
It is seen that in cases whereby management of an organisation is unable to meet its cost, they
are required to execute winding up of business and thereby exit operations from the confines of
market in order to save itself from losses in future course of time. Different strategies are

available for organisation while going for exit approach. It is explicated below along with their
merits as well as demerits:
Liquidation: This can be referred to as the legal process whereby owner of the business
carries out sale of all the assets in order to pay off the debts before formulating exit
(Allmendinger and Haughton, 2012). Within this exit strategy, main aim of owner is the
maintenance of reputation even after the execution of liquidation. This can be formulated by
Quantum Technology in order to maintain its goodwill even after its wind up. Advantage: This is regarded to be the best way in which a company can easily come out
of financial crisis that has constantly been affecting the name and market positioning of
brand. Further, this strategy also assists in raising the goodwill in case the owner intends
to restart the business in future course of time.
 Disadvantage: Here, assets are unable to be sold at a higher price owing to the fact that
shareholders as well as creditors claim the property and intend to authorise it in
accordance with sharing ratio and credit amount.
SUCCESSION STRATEGY
These comprises of strategies which are available as an option for organisation to
minimise financial burden and elevate their position within the market. Succession strategies are
responsible for providing assistance to entities by which they can intensify their reach within
market along with their revenue figures (Barbour and Deakin, 2012). They are illustrated below:
Use of internet: According to modern scenario, it has become easy for organisations to
make use of internet by which they can carry out expansion of operations of business by the
usage of social media. Youth makes use of internet as a part of their lifestyle on daily basis.
Quantum Technology makes use of internet for promoting their business activities within United
Kingdom. Apart from this, they make use of internet as a marketing tool for promoting services
provided by them. Advantage: Data and information can be rapidly spread in an effectual manner and also
provides an enhanced way through which maximum number of people can be reached
out. Disadvantage: Excess usage of internet opens up the door for malicious attacks and
hacking which means that security is at stake (Beatley, 2014).

Merger and acquisition: This is a major strategy of organisation in which one firm
merge with other to expand the view point of services furnished by them. This can act as best
strategy and can be opted by Quantum Technology so that they can improvise financial issues
they are going through. Advantage: By this organisation will be able to raise the capital which will directly lead
to improvisation within profitability of organisation (Eddleston and et. al., 2013).
 Disadvantage: This strategy is complex which acts as its biggest disadvantage. It makes
difficult for employees to work with other person to accomplish their organisational goals
and objectives which hampers performance of entire organisation, thereby leads to
decrease in productivity.
Conclusion
From above it can be concluded that, effectual planning is needed for growth of business in
rapid way with minimum chances of bugs in them. To attain a growth in a smoother manner, it is
necessary for organization to emphasize on carrying out market analysis in an effectual manner
for identifying favorable situations within market and also potential threats present within the
market for organization. In addition to this, bank loans seem as an effectual source of funding for
small business which aids entity for enhancement in their capital.

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