Report: Evaluating Growth Opportunities for Quantum Technology

This report delves into the growth strategies of Quantum Technology Marketing Group Limited, an advertising and marketing service provider for the IT sector. It begins by outlining key considerations for evaluating growth opportunities, including competitive analysis using Porter's Generic Models and external market analysis employing PEST analysis. The report then applies Ansoff's growth vector matrix to identify opportunities such as market penetration, product development, market development, and diversification, recommending product development as a suitable strategy. Furthermore, the report explores various funding sources for the organization, assessing their positive and negative impacts, and proposes the design of an effective business plan for growth. Finally, it assesses succession or exit options for a small enterprise, weighing their advantages and disadvantages, providing a comprehensive overview of growth planning for the company.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities..................................................1
P2 Opportunities for growth applying Ansoff’s growth vector matrix..................................4
TASK 2............................................................................................................................................5
P3 Sources of funding for organisation..................................................................................5
P4 Design a business plan for growth....................................................................................7
TASK 4..........................................................................................................................................11
P5 Assess succession or exit options for small enterprise with its advantages and
disadvantages........................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................14

INTRODUCTION
Planning for growth refers to the strategic activity that helps the organisation to plan for
revenue generation for the business growth. It works as the guidelines for the business manager
to influence its employees or team mates in order to achieve organisational goals and objective.
For effective planning for growth, it is required by the manager to evaluate all the external and
internal factors which have influence over business growth. Planning for growth involves various
factors like profits, employees, sales turnover, external and internal market environment etc. This
report is based on Quantum Technology Marketing Group Limited (Albert, 2017). This company
is providing advertisement and marketing services for IT sector such as digital services,
advertisement, promotional events for companies. In this report, several option for growth
opportunities are evaluated with the motive of achieving organisational objectives. Different
sources of funding available for the organisation with their positive and negative impact are
evaluated to opt suitable option. Apart from this, effective business plan is formulated in order to
provide appropriated strategies which are essential for growth in this advertisement agency.
TASK 1
P1 Key considerations for evaluating growth opportunities
Business environment is very dynamic as it is influenced by the external and internal
factors. Every business is started with the motive of running it for long term. It is the
responsibility of manager to evaluate the market place as well as internal team to identify the
future growth opportunity. In addition to this, manager have to formulate appropriate strategies
for the business to overcome the future problems and asses the future availability of the business
growth. For better and effective result, it is necessary to implement these strategy and also utilise
the resources properly in order to achieve desired growth (Barbour and Deakin, 2012). In context
to Quantum Technology Marketing Group Limited, two different tactics are described below in
order to identify opportunities for growth.
Competitive analysis: This is termed as the essential part of the marketing plan as it helps
the manager in identifying their own positive and unique side of the product which differentiate
them from the competitors. In relation to Quantum Technology Marketing Group Limited Group
Limited, this firm have opted porters generic strategy to analyse the external competitors as well
as internal environment like skills and ability of employees, availability of resources at
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workplace. This strategy also guides the manager that how employees can be utilised to capture
and utilise market growth options. Management team of this enterprise have to evaluate external
rivals and their internal strengths as well as weaknesses and create the business plan for growth
accordingly as per the required priorities. Competitive analysis supports the business to achieve
their required business goals and objective and provides the options and methods to overcome
the upcoming business problems (Beatley, 2014). Business environment is dynamic in nature so
its business model can be changed according to the changing competitors and their impact on
home business.
Porter's Generic Models: This model helps the organisation to know their financial
position that whether it is growing or decreasing with effect of external and internal
environment. In context to Quantum Technology Marketing Group Limited,, this model supports
the manager in identify the alternative options which can be used to capturing external targeted
market place and utilise growth opportunity.
Cost leadership: It is the strategy of increasing profit generation by reducing the price of
product to capture more number of customers. Quantum Technology Marketing Group have
used this strategy in order to improve their profit ratio and increase market share with the
nominal range of profit margin. The firm offers several type of discounts to its customers to
compete the competitors with motive of leading the market as well as customer’s attention for
long period.
Differentiation leadership: This strategy involves the changing and updating of the
internal business environment in terms of modifying the products and services to make them
unique and differentiate it from the rivals. Quantum Technology Marketing Group Limited is
using latest technology and unique methods of marketing for spreading the information of client
more effectively (Chen and et. al., 2014). It emphasizes on brand image directing improvement
in features and modification in product as well as services.
Cost focus: This strategy emphasize on the targeted market and requirement of the
customers both. Manager of the Quantum Technology Marketing Group Limited focus on
proving the marketing services to the customer as per their needs and wants at low cost.
Marketing services are uniquely designed by company to attract more number of clients.
Differentiation focus: This strategy concentrates on the specific buyer or the targeted
group. In context to Quantum Technology Group Limited, marketing services are made with the
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innovative ideas for the special buyer of targeted market segment. This leads to generate
profitability for the company.
Quantum Technology Marketing Group Limited can use the cost leadership and
differentiation focus strategy to improve their market position and attract more number of
customer by providing them innovative and unique services at low cost (Eddleston, and et. al.,
2013).
External market analysis: This analysis involve the factors of the external environment
which affects the business and its operations. Quantum Technology Marketing Group Limited
have used PEST analysis to analyses the macro environment that influences its business and
growth structures.
Political factors Economic factors
This involves this influence of political factors
on the business environment such as foreign
trade policy, environmental laws, tax policies,
employment laws etc. In context to Quantum
Technology Marketing Limited
Group,Marketing, this firm can be affected by
the change in political policies like tax policies
and labour law as this company deals with
many number of company and employees.
Economic factors have higher influence over
the companies and its business growth as it
includes several factors like inflation,
economic growth, disposable income of
customers, exchange rate etc. Disposable
income of the customers might impact the
Quantum Technology Marketing Group
Limited in positive and negative manner both
as marketing strategies are completely relies on
customers spending level.
Social factors Technological factor
Every organisation is related to socio-culture
factors which includes beliefs and nature of the
people or customers (Goodfellow, 2013). In
relation to Quantum Technology Marketing
Group Limited, all the marketing and
advertisement should be made with the
intention of not harming the sentiment of social
belief of the culture
Technological factors influences the business,
market place and customers. Quantum
Technology Marketing Group Limited can opt
advance technology in terms of communicating
and reaching its customers smoothly. As
effective marketing is all about promotion and
connective massive population with less
spending. Advance technology has made
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marketing work easier and has positive impact
on the business of this firm.
It has been concluded that Quantum Technology Marketing Group Limited have several
options for growth like advance technology is the best opportunity as it will be easier for the
organisation to communicate with the customers and aware them about the products in effective
manner.
P2 Opportunities for growth applying Ansoff’s growth vector matrix
Main objective of Quantum Technology Marketing Group Limited is to make effective
growth strategies in order to run their business for long term. It is essential for manager of the
firm to identify future growth availability by knowing the internal strengths and weakness of the
company which involves employee’s potential as well as products uniqueness. In relation to
Quantum Technology Marketing Group Limited, its manager is required to evaluate external
market structure for introducing new strategies of marketing to grab more number of customers
in order to expand their business. For identifying the opportunity for growth in external
market,Ansoff’s growth vector matrix is used to know the growth ratio whether it is for long
term or not (Grover, Bokalo and Greenway, 2014). This matrix is divided into four different
kind of strategies which help in analysing availability of opportunities and these are evaluated as
below:
Market penetration: This stage of Ansoff matrix states that the business wants to
increase its market share by developing its sales of the existing products in current market place.
In relation to Quantum Technology Marketing Group Limited, manager of this firm should
concentrate on improving their number of marketing tender in current location to grab more
customers for increasing market share. It’s easier for the company to increase the market share as
they are familiar with the market as well as their marketing strategies helping in persuading
people in adapting their services.
Product development: Under this, firm should expand its business by launching or
introducing existing product in the new market. Business can be expanding its markets by
opening their new offices in new country or cities. In context to Quantum Technology Marketing
Group Limited, this firm can introduce its existing marketing plans and strategies in new cities of
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United Kingdom by opening their branch offices (Lewis, 2013). This will help the company in
its expansion and can also grab the customer of those region.
Market development: In this, companies are introducing new product in the existing
market. This involves the involvement in research and development department which is done by
analysing the customer and their taste and preference of the existing market segment. In context
to Quantum Technology Marketing Group Limited, manager of the firm should evaluate the
preferences of the customer in choosing the marketing company. This will help them in
improving and modifying their existing product and also supports in building new marketing
strategies for grabbing attention of more number of customers (MacLeod, 2013).
Diversification: Under this, enterprise is introducing new product or services in new
market segment. It is considered as the riskiest strategy opted by the company as in the product
as well as market both are new and requires lots of development. Quantum Technology
Marketing Group Limited should launch new marketing strategies in new cities of United
Kingdom which can help the business in capturing new customers and develop their brand name
in new place.
Among all the above mentioned strategies of Ansoff Matrix, Quantum Technology
Marketing Group Limited should use product development strategy as the strategy of business
growth opportunity. Quantum technology is a small enterprise, so it is beneficial for this
company to introduce its marketing services in new market place. This provides opportunity to
the company to grab new customer of new market and build their brand name. It will also help in
the growth of the business in terms of monetary benefits as well as business expansion. In
addition to this, Quantum technology can also market development as it involves introduction of
new product in the existing market. In this, manager of Quantum Technology should analyse
needs and wants of the customers introduce new promotional activities in the same market. It
will also increase its product range.
TASK 2
P3 Sources of funding for organisation
Main objective of every organisation is to grow fast and develop their business level.
Business growth requires to adapt the available opportunities in the market place which can be
used as the option (Mitchelmore and Rowley, 2013). Funding is the tool and necessity of the
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business which plays a vital role in the organisation. Small businesses require lots of various
sources of funding to fulfil their regular working practices and for their business growth. Several
sources of funding can be used by the Quantum Technology Marketing Group Limited i.e.
evaluated as below:
Personal investment: This is the first and foremost choice of the business owner as it
involve personal money of the business person. It is might be the long term as well as short term
commitment. In context to Quantum Technology Marketing Group, its owner can invest the
money according to the requirement of the business. It’s easier method of collecting fund as it
does not involve any other person.
 Pros- Personal investment is termed as the fastest mode of funding as it does not require
the permission of any one. It is the quickest mode of funding and in this, fund can be
collected at any time. Quantum Technology Marketing Group Limited Group can use this
funding according to the situation and want of the business (Moseley, 2013). Rate of
interest is quiet nominal as compared to other sources of the funding.
 Cons- If the business fails, complete loss will have to bear by the owner. Risk sharing is
negligible as compared to the other sources.
Bank loans: Major function of the bank is to provide loans to its customers. It is essential
source of funding for the small businesses as it provide at reasonable rate of interest. Quantum
Technology Marketing Group Limited can get various other benefits for raising their funds from
the banks as it gives governmental benefits to the company.
 Pros- It is secure and safest source of raising fund. Government is providing extra
benefits to the business in order to help the small business owners. Quantum Technology
Marketing Group Limited can take loan from the bank at reasonable rate of interest.
Amount is paid in the form of instalment which is easier for the company.
 Cons- Bank loan requires lots of documentation which consumes time of the company. It
is riskier as if the instalments are not paid on the appropriate time, bank will charge extra
rate of interest and can also authorised security in the form of property.
Friends AND Family Loans: Business owner can also generate fund by borrowing
money from their family and friends. It is easier as compared to bank loan as it does not involve
any legal documentation (Osiyevskyy and et. al., 2013). Quantum Technology Marketing Group
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Limited should ask its family members and friends to invest in their company. This can also
provide companies’ shares to the family and friends.
 Pros- It requires less amount of legal documentation as the fund is borrowed from the
personal relation only. It does not require any security to persuade investor for the loan.
Fund raised from the family and friends does not initiate any interference in decision
making process.
 Cons- Investment from the family and friends can ruin the personal relationship of the
business owner with family. This source of funding misses the valuable advices as
investor have no knowledge of the business and invested only for the personal terms.
Angel investors: These investors are the one who are interested the business and owns
knowledge and skill regarding the business. Their main objective is to improve the business
productivity in order to achieve high rates of returns. Quantum Technology Marketing Group
Limited can use angel investor to raise their fund and can get valuable advises from these
experienced and skilled employees.
 Pros- Investors are skilled and have deep knowledge of the business. Quantum
Technology Marketing Group Limited can use valuable advises of these investor in their
business decision making process and enhance their business growth (Schetke, Haase and
Kötter, 2012).
 Cons- Angel investors are sometimes interfering a lot in the business decision making
process which affects the business growth. Sometimes business owner has to agree with
the decision of angel investor as they invested in the business.
Among the above mentioned sources of funding Quantum Technology Marketing Group
Limited have to choose bank loan to raise their funds as it is the safest mode of funding. Bank
loan provides funds to the business in with the legal procedure at nominal rate of return. Rate of
interest is fixed and will not be changed as per the changing market scenario. Property used by
business in the form of security for getting the approval is secure with the bank which will be
revealed in the future when all the instalments will have paid. By opting bank loan as the sources
of funding, Quantum Technology Marketing Group Limited can develop their business and grab
the upcoming opportunities.
Trade-off theory: It is considered as the idea which used by the organisation for
choosing how much equity finance and debt finance is required to balance costing and profits. It
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helps the organisation to manage the availability of funds with debts and equity at single time for
the business growth.
P4 Design a business plan for growth
A business plan is a written description which acts as roadmap of the company. It
provides guidance to managers as they can perform numerous tasks and activities in systematic
manner. In addition to this, business plan emphasise on explaining what's new in company which
is going to do and it will accomplish its goals and objectives (Ward, 2016). An adequate business
planning supports to seize market opportunities and gain high competitive edge. It is essential for
managers to determine all internal and external factors which can affect company's market
position in future.
Following is discussed business plan of Quantum Technology Marketing Group Limited
-
Overview of the company - Quantum Technology Marketing Group Limited provides
marketing services for technology companies in United Kingdom and internationally. The firm
was established in 1998 thus having great past experience gives it to attain and retain more
multinational companies (Wey, 2015). The core competency of Quantum technology is having
trust of best known brands over the world.
Products and services of the company – It provides services ranging from account-
based marketing and event registration to promotional webinars and demand generation.
Quantum Marketing has a 20-year heritage in the technology sector. In addition to this, it also
organises research and development campaigns for well-known brands and provide them
information about current market trends and customers needs.
Mission and vision – The mission and vision statement of Quantum Technology
Marketing Group Limited is to deliver effective digital marketing services to multinational
associations as they can easily reach to their target audiences and gain high competitive edge. In
order to attain this aim, the company is focused on attaining and retaining interest of strong
brand by giving them discounts on promotional campaigns over the world.
Situational market analysis – In this stage, managers are tending towards assessing
internal and external market opportunities thus explore itself over the world. For Quantum
Technology Marketing Group Limited, situational analysis will support company to identify
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market situation and make strategies accordingly (Zhang and et. al., 2013). In this relation, firms
are required to demonstrate their own strength and opportunities which are stated as under -
Strength Opportunities
 Quantum Technology Marketing Group
Limited has established in market since
1998, as the firm has great market
experience which supports it to be a
well-known marketing industry across
the world. It gives a new brand image
to company and helps in attaining and
retaining clients for long run.
 All marketing campaigns of the firm
are based on digital engagement and
nurturing; which gives clients
maximum market reach.
 Intel, TATA, Dell, Blackberry, Oracle,
Samsung, Sage, SAP, BT and other
multinational companies are the main
clients of Quantum Technology
Marketing Group Limited Group
Limited group.
 New technologies are coming up in
marketing and advertising field.
 Having opportunity to increase market
share and position over the world.

 Classic inbound and outbound
telemarketing
Formulation of budget – After assessing strength and opportunities, business owners
focus on formulating an annual which defines how much amount will be spend on all working
activities and tasks (ZHANG, ZHAO and CHEN, 2013). While preparing budgets, employers
have to identify cash inflow and outflow within business in order to make necessary
modifications in this process.
[Quantum Technology Marketing Group Limited]
Cash Flow Statement
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For the Year Ending 31/12/2017
Cash at Beginning of Year 22,500
Operations
Cash receipts from customers 4,25,875
Cash paid for
Inventory purchases (1,58,252)
General operating and administrative expenses (10,658)
Wage expenses (1,05,852)
Interest 8,502
Income taxes 18,780
Net Cash Flow from Operations 1,78,395
Investing Activities
Cash receipts from
Sale of property and equipment 35,564
Collection of principal on loans
Sale of investment securities
Cash paid for
Purchase of property and equipment (45,821)
Making loans to other entities
Purchase of investment securities
Net Cash Flow from Investing Activities (10,257)
[42]
Financing Activities
Cash receipts from
10