Quantum Technology: Planning for Growth, Funding, and Exit Strategies

This report focuses on the strategic growth planning of Quantum Technology, a small enterprise offering marketing services to technology companies. It begins by outlining key considerations for evaluating growth opportunities, emphasizing the importance of resources, capabilities, and competitive analysis, including Porter's Generic Strategies. The report then utilizes the PESTEL analysis to examine the external environment, considering political, economic, social, technological, environmental, and legal factors influencing the business. Subsequently, the report applies the Ansoff matrix to identify growth strategies such as market penetration and product development. The report also explores potential funding sources for the organization and culminates in the development of a business plan for growth, including an exit and succession strategy. The report provides a comprehensive overview of the strategies and considerations essential for the sustainable growth of Quantum Technology.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities and justify these considerations 1
P2 Opportunity for growth by using Ansoff matrix...............................................................4
TASK 2............................................................................................................................................6
P3 Potential sources of funding for organisation..................................................................6
TASK 3............................................................................................................................................8
P4 Business plan for growth...................................................................................................8
TASK 4..........................................................................................................................................10
P5 Exit and succession strategy for small business..............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Planning for growth is considered as the strategic activity which helps the firm in
developing its business for growth purpose. In this top management of the organisation prepares
guidelines for the manager which is required to followed by whole staff along with the business
manager. It helps the organisation in achieving its business goals and objective in given period of
time in effective manner. This given report is based on the Quantum technology (Albert, 2017).
It is the small enterprise which offers its marketing based services to the technological
companies. In this report, Ansoff matrix is elaborated with its different strategies that are helpful
for the company its growth. In addition to this, various potential sources of funding are
elaborated with their advantages and disadvantages. At the end, this report is going to develop a
business plan for growth which will enhance growth rate of the small firms (Albert, 2017).
TASK 1
P1 Key considerations for evaluating growth opportunities and justify these considerations
A company can grow through capturing the opportunities but it needs to plan according
to the the present state and future expectations that tells it what efforts are needed put in order
to explore the growth opportunities. An effective planning plays an important role to to reach
out towards the goals and objectives. Quantum Technology Marketing is a company which has
established to provide marketing services for technology companies. The firm came in inception
as a small scale organization but it can attain the success with the planning that maximizes
profit. There are some key considerations that can be focused to attain the growth of the
business and competitive advantage as well. An organization can grow with the expansion of its
services in other countries where it seeks the opportunities. It can can be elaborated as -
Resource – To attain the objective it should be determine that the firm have appropriate
assets. Because resources are the major requirement of the business which are needed to
accomplish the task. As the Quantum Technology Marketing requires the funds that is essential
to organize the marketing campaigns, through the promotional webinars. It also requires staff
which assist to attain the objectives and goals (Allmendinger and Haughton, 2012).
Capabilities and core competences – A company should analyse the capabilities of its
employees and other resources such as the investors. The workers and financiers are the major
resources of an organization and it is essential to know that what are their abilities that can
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assist them to explore in the new market. For an example, investors are required to expand in
new country and therefore a company needs to embrace the amount to launch a business. The
funds should be available to the Quantum Technology Marketing to explore in the market and to
operate in the new area because the insufficient money can hold the firms operations and
functions . This can create obstacles in the processing of a company. Hence, it will be good for
the Quantum Technology Marketing to embrace the resources whether they are employees who
will carry out activities or the investors which provides funds to attain the goals and objectives.
The firm should also know the competition because it needs to focus on strength and
improvement area where expansion can be done to attain the competitive advantage (Barbour
and Deakin, 2012).
Porter Generic Strategy
Porter generic Strategy is used to recognise the area in the competition market to
perform better from the rivals. This models specifies the direction where Quantum Technology
Marketing can move to achieve the goals.
Cost leadership – Cost leadership can be define in the broad segment that attains the cost
advantage for the products and services. Because Quantum Technology Marketing can offer it
services at the lowest prices to sustain in the market towards that the customer attracts can easily
attract towards that. To attain the competitive advantage the firm can easily reduce the cost of the
services.
Differentiation strategies – It is also based on broad segments as it is concentrated on to
achieve the customer in wide perspective. Quantum Technology Marketing can opt for
differentiation strategy which provides products and services with some additional features
which makes the product distinct from the rivals. For an example, if the company is offering the
marketing services to other companies then it can offer content with the SEO that makes the the
product different from others. As it is not offering by the competitors and that is good for the
company because it is offering the additional attributes which can attract to more customers that
wanted to purchase for the special services. The customer can also pay the premium price for this
extraordinary features.
The differentiation strategy states the product should be different from the existing products of
the competitors . If the firm is delivering such features then customers can pay the premium price
for the services.
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Focus Strategy – Focus strategy refers in the narrow section target market. In this
strategy Quantum Technology Marketing can focus on cost advantage or differentiation. The
cost advantage will cater the customer who are seeking for the low cost product whereas the
differentiation refers to attain the customer satisfaction by providing the extensive products. So
the major focused is on getting the customers by applying both of the strategies. The company
can focus on the differentiation because the advanced feature the customer can attracted towards
the services.
PESTEL analysis
PESTEL analysis refers to external environment that has a significance impact on the business
and therefore, it needs to be consider in order to identity the growth in the marketplace (What is
PESTLE Analysis? A Tool for Business Analysis, 2018).
Political factors – These are are implemented by the government such as the policies
and laws. Policies are the major support of a business such as the tax rates that have to be pay by
every business organization to run a company successfully. But if the tax rates are high then it
become hard to sustain a business for a long run. There are some policies which also help the
companies to enter in the new market like foreign direct investment. Quantum Technology
Marketing can enter in the new market if the nation supports FDI (Eddleston and et. al., 2013).
Economical factors - A country has two growth factors such as GDP and per capita
income. If a nation has increasing per capita income then it will also provides an opportunity for
the market as the people can enhance their buying nature. These two factors can increase the
profit of the Quantum Technology in such countries where financial condition is stable and
growing. Because the financial state of nation supports to in the growth of business but if the
country has low economic values then it can impact on an organization. As it can be define as if
people of has high income then can spend their earning on their luxury but if they have low
income then will have a less purchasing power and it will impact on the growth of the business.
Social factors – Social factors are depends on the preferences, choices and living style
of the people. If people has good living style then they would like to purchase the quality
products. In order to grow in a new market the Quantum Technology Marketing should foucs on
the core values of a country as they can reduce the prices of their products and services because
customer can easily attracted towards the low prices. If the company is new in the market then to
attain the attention of the local customers the company can keep the low prices that can capture
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the wide range of customer that will help to sustain in the market. If the customer are satisfied
with services then they can promote the firm to others because the mouth of words builds a
reputation of the company.
Technology factors – As Quantum Technology Marketing is offering its services to the
technology companies and therefore, it can utilize the techniques to improve the profit of that
company and its own as well. For an instance, the company can adopt the internet of things
which will assist to stay connected with its resources, investors and customer. The IoT can help
to connect frequently and this will also enhance their proficiency at workplace. The customers
can also take the advantage of this facility because they can communicate with the Quantum
regarding their requirements and ideas. As much as customers interact with the firm they can
build a strong relationship with the firm and that is beneficial for the company as well.
(GlockJaber and Zolfaghari, 2012).
Environment Factors – It is necessary for every company that they follow the
environment rules because if they harm the environment then it will make a bad impact on the
residents of the country and that is not the good for the Quantum Technology Marketing. They
should support the environment activities that also make their presence strong among the people
and also gain the increasing number of clients. The company should protect the environment as
they cannot harm the environment by disposing the electronic waste that will generate the carbon
and ultra violate that is harmful for the environment (Goodfellow, 2013).
Legal factors – Legal factors are the laws which abides the Quantum Technology
Marketing to run a business in the market in a particular way. For an example, the company has
to follow the equality act that restrict the company to violate the laws for the employee. The
company should follow the equality act that states that the firm should not discriminate the
employees on the behalf of their diverse background, gender, race and color. Along with this
there are several laws which have to be follow by Quantum Technology to run a business in
effective manner.
P2 Opportunity for growth by using Ansoff matrix
Ansoff matrix is considered as the strategic tool which help the top management of the
organisation to formulate effective strategies for future business growth. This concept was given
by Russian American Igor Ansoff. It is also considered as the marketing plan for the firm. In
relation with the Quantum technology, its owner majorly focuses on expanding the business for
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long run. For this, its manager is analysing the external market situation to identify the growth
opportunities available at market place. In addition to this, internal analysis also helps Quantum
Technology to find out the strength of their services which differentiate them from the
competitors. In order to understand the growth opportunities for this enterprise its manager have
used Ansoff vector matrix. In this four different strategies are evaluated for identifying the best
available strategy for Quantum technology. And these are evaluated as below:
Market penetration: This strategy refers to increase sales of the existing product at same
market place for purpose of improving market share.(Allmendinger and Haughton, 2012).
According to this strategy, manager of Quantum technology should evaluate the market and find
out more number of customers. This will help the firm in expanding their targeted customers and
also provide new marketing tenders that will improve market share. This strategy is beneficial
for the firm as they are familiar with the market environment as well as customers taste and
preference.
Product development: This strategies suggests to introduce or launch new product in the
existing market. Developing new product is most beneficial strategy to increase the business at
market place as its provides new variety to the customers in product range which attract them
towards the organisation. Manager of Quantum technology can opt this strategy by offering
customers new variety in the marketing services according to their need and wants (Barbour and
Deakin, 2012). In addition to this, its easier for the firm to grab the attention of customer of same
market as they are already serving their services and customers are familiar with enterprise.
Market development: This strategy of Ansoff matrix states that its better for the
organisation to capture the new market with the existing product. It beneficial for the firm to
analyse the external market to find out new market that is best suitable for business growth.
Quantum technology can use this strategy for its growth. In addition to this, it is most
convenient strategy for growth to gain the trust of new customers with existing offering.
Employees of the firm are familiar with the marketing services and can persuade customers with
more effective manner to enhance business growth. For example: Manager of this provide its
services in the periphery countries and cities for expansion and should target customers available
in the surrounded area.
Diversification: This strategy refers to introduce the new products and services at new
market place. This strategy of Ansoff matrix is proven as most riskier strategy for the
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organisation as both the products and market are new. Its difficult for the employees to influence
the customers and make them trust on the company. This strategy is non beneficial for Quantum
technology as it is small enterprise and cannot take risk at the initial stage. It will difficult for
the firm to compete other companies in new market and attract the customers for using their
services (Beatley, 2014). This strategy also involves lots of investment for introducing new
services and establishing them at new market place.
From the above mentioned strategies market penetration is the best suitable growth
option for Quantum technology. By following strategy of market penetration this firm can
increase its sales of the same services in the existing market. For this, manager of the
organisation should evaluate the market place and target new customer.
For example: Quantum technology can target new sectors like hospitality and health care
industry to grab the customers available of this era.
TASK 2
P3 Potential sources of funding for organisation
It is essential for every organisation to grow their business with high profitability. For
this, it is required by every organisation to increase their fund for performing and accomplishing
business objectives on the given period of time. In relation to this, Quantum technology is
planning to expand its customer by targeting healthcare and hospitality sector. For this its
manager have to evaluate best suitable funding option for business with less interest rate
(Eddleston and et. al., 2013). There are various sources of funding available for the small
business which offers funds at approximately similar interest rate but have their own drawbacks
and merits points. Some of them are evaluated as below:
Personal saving: In this, owner of the firm invests his personal money in the business.
This is the most convenient source of funding for the small business as it does not take
documentation and legal procedure. In context to Quantum technology, its owner can invest its
personal saving to fulfil the requirement of the business without involving any external authority
in this process. Advantage: Personal saving is the bes option for raising the fund as it does not give right
to the external person to interfere in the decision making process. Apart from this,
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Quantum technology can opt personal funding as it can be used used anytime for
grabbing best opportunity. Disadvantage: In some it is not beneficial for the firm as if the business will not grow or
face financial problem then the invested money of the owner will be wasted.
Bank loans: Banks usually provides loan to its people at nominal interest rate. It is
considered as the best source of funding as amount of the loan is returned in the instalments at
fix period of time.(Glock, Jaber and Zolfaghari, 2012). Advantage: Bank provides funds according to the need of the customers and also gives
them several options in returning the amount. Apart from this, bank does not involve in
the decision making process of business that maintains the privacy of the business. Disadvantage: It involves lots of documentation work which consumes lots of time. Its
quite harmful for the business owner as if in case the instalments are not paid on time
then bank may authorised the property which is used as the security purpose in loan
process.
Angel investors: These investors are the one who provide funding to small businesses
and in return shares the equity on the basis of their invested amount. Angel investors are highly
experienced and also owns lots of skills which are helpful for in the business growth
(Goodfellow, 2013). In context to Quantum Technology, this firm can opt angel investors as it is
planning to expand its business in healthcare and hospitality sector. These investors can also
provide their innovative ideas for business expansion and also helps in decision making process. Advantage: These investors are comfortable with the flexible business policies which
helps the organisation in modifying their policies according to the requirement of
business. Valuable advice and guidance of angel investors helpful for the organisation in
order to achieve its goals and objectives. Disadvantage: Angel investors owns the authority and power that involves them in
decision making process. Sometimes this authority is non beneficial for Quantum
technology as these investors may harm the goodwill by taking wrong decision.
Friends and Family: Its beneficial for the small business to raise their fund from the
friends and family members as they can give the fund in less time without asking for any
security. Quantum technology can use this source to raise their fund as it is a small enterprise and
does not take risk of giving its property as the security.
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 Advantage: It does not involve any documentation and security to increase the financial
funds. This funding option is fast in process that will fulfil the requirement of the
business on quick basis.
 Disadvantage: If the amount is not returned on the given time period it may affect the
relationship with friends (Grover, Bokalo and Greenway, 2014). Another disadvantage of
this funding options is that money lender may interfere in the essential decision of the
business and harm the profitability of the business.
From the above potential sources of funding Quantum technology should raise its fund
from bank loan. In relation to this firm, its the safest mode of increasing the funding level of the
organisation as it involves legal procedure. Along with this, interest rate provided by banks are
nominal and fixed. Quantum technology use this option for developing their business and
achieve the upcoming opportunities available at market place.
TASK 3
P4 Business plan for growth
A business plan is considered as the blueprint of the firm which guides the manager in the
formulation of strategies. It is in the form of written document which helps the manager in
guiding its team to perform every task according to the given instructions with in the given time
period. It is required by every organisation to analyse the external and internal forces to design
adequate business plan for growth (Lewis, 2013). Business plan of Quantum technology is
elaborated as below:
Overview of the company: Quantum technology was started in 1938 and offers
marketing service in technological sectors. Services of this organisation are available in United
Kingdom and its periphery areas which attracts the customers of other countries too. It is
considered as one among the reliable companies on the basis of its past record.
Products and services of company: This enterprise offers marketing services to the
technological companies. Apart from this, its services also includes accounting based
promotional events, several campaigns are organised for large organisations and other
promotional activities on the basis of customers requirement.
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Mission and vision: Mission and vision statement of Quantum technology emphasize on
the providing high quality services to its clients in order to satisfy the needs and wants of the
customers.
Situational market analysis: In this, manager of the Quantum technology emphasize on
analysing external and internal factors in order to identify the strength of the services and find
out opportunities available at market place for the growth. Strengths and opportunities of this
organisational re evaluated as below:
Strengths Opportunities
 Quantum technology has effective past
experience which helps in
understanding the need of the
customers in appropriate manner.
 Marketing activities are more based on
advance technology which covers
maximum targeted audience and
popularise the products of customers.
 Quantum technology can expand its
business across the world by increasing
its number of branches in other
countries (MacLeod, 2013).
 Latest technology can be adopted by
this organisation to increase its market
share.
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Formulation of budget: After evaluating the opportunity and internal strength of the
organisation another step is to make the budget for the business activities and task
(Mitchelmore and Rowley, 2013). This budget plan is prepared on the basis of the requirement of
each sectors. Budget of Quantum technology is evaluated as below:
From the above mentioned cash flow it has been interpreted that Quantum technology have
adequate fund which can be used to pay all the liabilities and debts. This organisation have to
pay taxes to every year. Cash in hand of 2015, 2016, 2017 are $102203, $200354, $238503
respectively and its average income of previous three year is $72001.
Identification of targeted market: It refers to the market where the organisation is
planning to expand its business and willing to grab its customer. Targeted market is identified by
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