Relove Technology Ltd: Planning for Growth Strategies Report, UK

This report provides a comprehensive analysis of growth strategies for Relove Technology Ltd., a telecommunications equipment supplier in London. The report begins by exploring key considerations for evaluating growth opportunities, including McKinsey's 7S framework, and then delves into the Ansoff Matrix to identify potential market development strategies. It further examines various sources of funding, such as personal financing, bank loans, and issuing shares, and justifies the selection of a bank loan for the company's market development strategy. The report also includes a sample business plan for expanding into the Japanese market. Finally, it discusses succession options for a business owner. The analysis is structured to provide actionable insights for Relove Technology's strategic planning and future growth.

Planning for
growth

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1: Key considerations for evaluating growth opportunities...................................................................3
P2: Ansoff Matrix.....................................................................................................................................4
TASK 2..........................................................................................................................................................5
P3: Potential sources of funds.................................................................................................................5
TASK 3..........................................................................................................................................................7
P4: Business Plan.....................................................................................................................................7
TASK 4..........................................................................................................................................................9
P5: Succession options for a business......................................................................................................9
CONCLUSION.............................................................................................................................................10
REFERENCS................................................................................................................................................12

INTRODUCTION
Planning for growth is a strategic activity which is performed by different types of
business organizations so that they can make a plan to achieve higher growth rate in the future
time period and can stay ahead of their various types of competitors without problems and issues.
This will make sure that they are able to achieve their goals and objectives and can maximize
their level of profits for achieving growth (Baschat, 2018). For this report, Relove Technology
Ltd. has been selected. It is a telecommunications equipment supplier in London, United
Kingdom. In this assignment, detailed analysis will be made on analysis of key considerations
for SMEs, various methods used by organizations to access funding. Also, specific analysis will
be made on development of business plan and assessment of various ways through which a small
business owner can exit the business and the implications of each option.
TASK 1
P1: Key considerations for evaluating growth opportunities
There are various types of key considerations which the organizations are required to take
to evaluate the growth opportunities which are available. Relove Technology’s managers can
make use of the following model for this purpose-
Mckinsey’s 7s framework-
This framework makes use of different internal elements of an organization to look at its
design. It identifies that whether they are effectively aligned and allow the organization to
achieve its objectives (Colantoni and et.al., 2016). It can be used by the management of Relove
Technology so that they are able to analyze the various elements of their company in the context
of achieving higher growth.
There are different types of elements in this framework. The detailed analysis of these
elements is as follows-
 Strategy- It refers to the plans which are made by the organizations so that they are able
to achieve their short-term and long-term goals and objectives. Relove Technology can
make use of the right strategies and therefore make sure that it is able to achieve higher
growth in the future time period.
 Structure- It means the way a particular company is organized. This is quite important as
it establishes hierarchy in an organization and therefore ensures higher-level of efficiency
as well as effectiveness. The managers of Relove Technology can make sure that they are
able to set a right structure in the organization which will lead towards more productivity
and thus the company will achieve higher growth.

 Systems- It refers to the way daily activities and procedures are structured by the staff to
get the job done. The management of Relove Technology can make sure that they set a
right system in the company which helps them in achieving higher growth rate in the
future time period.
 Shared values- It means the core values of the organization. These are extremely
important for it because the right values have to be framed to make sure that the company
can achieve higher growth rate. Thus the managers of Relove Technology are required to
pay attention to them.
 Style- It refers to the style of leadership which is adopted by the organization (DODDS,
DIMANCHE and SADOWSKI, 2018). This is crucial for an organization because the
leaders play an important role in making sure that the company achieves a higher growth
rate. The management of Relove Technology is required to make sure that they are able
to use the right style of leadership.
 Staff- It refers to the employees of the organization and their general capabilities. The
efficiency and effectiveness of the staff of the organization has to be ensured so that the
goals and objectives of the firm can be achieved without problems and issues. The
managers of Relove Technology can make sure that they are able to motivate the staff to
perform at its best so that the growth opportunities can be used in the right manner.
 Skills- It refers to the actual skills and competencies which are displayed by the workers
of a company. The management of Relove Technology can make sure that the skills and
competencies of employees of the organization are enhanced effectively and efficiently
so that the goals and objectives are achieved and the higher growth opportunities are used
in the right manner by the organization without problems and issues.
P2: Ansoff Matrix
Ansoff Matrix can be used for the purpose of strategic marketing planning and thus it can
be used for the purpose of looking at various opportunities to grow the revenue for a business
through developing new products or services or “tapping into” new markets (Gounaridis,
Chorianopoulos and Koukoulas, 2018). It can be used by the managers of Relove Technology for
identifying growth opportunities for the future time period.
The different types of elements of this matrix can be analyzed as follows-
 Market penetration- In this strategy, the organizations can look at selling more of their
existing products and services in the existing customer base (Gumel, 2019). This strategy
can be highly useful for the companies to effectively increase their level of profits in the
future. The management of Relove Technology can make sure that they are able to
achieve their desired goals and objectives and ensure higher growth rate through this
strategy.
 Market development- In this strategy, the companies can take the route of entering into
new markets. This strategy can be useful for the organizations to enter into profitable
markets and thus maximize their earnings there. The managers of Relove Technology can

make sure that they are able to enter into new markets and therefore achieve a higher
growth rate in the future time period without problems and issues.
 Product and Development- In this strategy, the organizations are required to ensure the
way they can use to develop new products and services. The management of Relove
Technology can make sure that they are able to achieve higher growth rate in the future
time period without problems and issues. Thus this will lead to higher level of efficiency
as well as effectiveness. This can ensure that the firm is able to use the growth
opportunities and thus achieve a strategic edge over its competitors.
 Diversification- In this strategy, the companies are required to make sure that they enter
into new markets with new products and services, increase their sales with existing
customer base as well as acquisition (Hu, 2016). The managers of Relove Technology
can use this strategy effectively and efficiently by ensuring that they are able to achieve
their goals and objectives without problems and issues.
The use of these strategies-
 The Market Penetration strategy can be used by the organizations by identifying how to
increase their sales within the market effectively and efficiently. If the managers of
Relove Technology want to use this strategy then a right approach is required to be
adopted by them.
 The Market Development strategy can be used by the companies by making sure that
they are able to enter into new markets without problems and issues. If the management
of Relove Technology wants to adopt this strategy then a right market is required to be
identified.
 The Product Development strategy can be used by the companies as they make sure that
they bring the necessary improvements in their existing products and services. The
managers of Relove Technology can make use of this strategy by bringing the necessary
improvements in their various products.
 The Diversification strategy can be used by the organizations by making sure that they
enter into an entirely new market with new products and services. The managers of
Relove Technology can make sure that they can effectively use it by entering into entirely
new markets with new products and services.
Justification- The managers of Relove Technology should make use of Market Development
Strategy by identifying a new market and entering there for ensuring growth.
TASK 2
P3: Potential sources of funds
There are various sources of funds which an organization can use for using different
types of growth opportunities (Kühn, 2018). Some of them are explained as follows-

Personal financing-
Personal financing is a source of finance in which the proprietor makes use of personal
savings to start a business or to diversify it. It can be used by the managers of Relove
Technology by using the savings of the company to invest in future growth opportunities.
Advantages-
 There is no burden of payment of interest in this particular source of finance and thus this
is an advantage for the companies.
 There is no delay in getting the funds as the funds are own and can be used as per needs
and requirements.
Disadvantages-
 This source of finance is limited in monetary terms and cannot offer high amount of
money for investment in growth opportunities.
 This source of finance can decrease the reserves of a company which can create problems
and issues in the future time period.
Bank Loan-
Bank Loan can be used by the businesses to avail the various growth opportunities which
are available (Lê and et.al., 2016). In this way the businesses can make sure that they get
the funds and can achieve the desired goals and objectives. The managers of Relove
Technology can use this source of finance to get funds to meet their varied needs and
requirements.
Advantages-
 Bank Loan provides the desired amount of finance to the businesses and thus they are
quite useful for them.
 Bank Loan provides the flexibility of repayment in installments which can be good for
the businesses.
Disadvantages-
 There is a heavy payment of interest on the Bank Loan which can create a disadvantage
for the businesses by increasing their expenses.
 Different banks also demand that the businesses keep collateral security with them for
availing a loan.
Issue of shares-

Issue of shares refers to issuing a part of equity of the company to the investors for the
money which they have invested (Li, Li and Endter-Wada, 2017). The managers of
Relove Technology can make use of this source of finance to raise the funds as and when
required for carrying out their various types of activities.
Advantages-
 In this source of finance, a company can aim to get more money for the purpose of
investment in growth opportunities.
 In this source of finance, there is no burden on the company for the payment of interest
which can result in savings in expenses.
Disadvantages-
 This source of finance can dilute the equity of the company and therefore there will be
more interference in decision-making.
 Issue of shares involves a lot of cost and this cannot be afforded by certain companies
and thus this is a disadvantage.
Justification- Relove Technology should use Bank Loan for its growth strategy of
market development because this will make sure that the managers are able to get more
sources of funds for the purpose of growth of the company and thus this will make sure
that the company is able to achieve its goals and objectives.
TASK 3
P4: Business Plan
A business plan is a guide which outlines the goals of the business and roadmap of
achieving them in the future time period (What Is A Business Plan? – Meaning & Components,
2019). It can be prepared by the managers of Relove Technology so that they can fulfill their
goals and objectives in the future time period without issues and problems.
Scenario- Relove Technology’s managers want to expand their business in Japan with
their existing products and services. For this they want to prepare a business plan which will act
as their roadmap for the future time period.
Business Plan-
Particulars Details
Executive Summary This business plan will focus on the various aspects which the company
is required to oversee in order to diversify its business in Japan.
Mission The mission of Relove Technology is to provide good products and
services to its clients by charging a fair price.
Vision The vision of Relove Technology is to make a name of itself in the field

of supply of telecommunications equipments.
Core Values  To provide the products at a fair price in the market.
 To make sure that the needs and requirements of the customers
are met.
 To link the market together by creating a network.
 To make sure that the right products are supplied in the market.
Goals and
objectives
 To achieve a higher share in the market in the long-run.
 To maximize the level of profits in the future time period.
Marketing strategy Product- The products which Relove Technology is going to supply in
the market of Japan are telecommunication equipments. It will create a
network in the market.
Price- The company will follow penetrative pricing strategy as it is new
in the market of Japan. With this it will aim to capture the market of the
country and enhance its market share.
Place- The company has selected Japan for diversification. It is a
country which is advanced in technology and thus offers a good
opportunity to it for maximizing its level of profits.
Promotion- The company will make use of traditional as well as modern
techniques of promotion for targeting the clients in the market of Japan.
STP framework Segmentation- The company will target the clients in Japan through
geographical segmentation and will prepare specific strategies for them.
Targeting- The company here will target the customers and clients
according to their needs and requirements and will supply the required
products to them.
Positioning- The company will aim to position itself quickly in the
market of Japan and thus will make sure that it achieves higher growth.
Cash flow
Particulars
2021-
22 2022-23 2023-24 2024-25 2025-26
C/F 300000 600000 850000
105000
0
Inflows-
Cash Revenues 500000 600000 750000 800000
100000
0
Other Cash
Receipts 200000 250000 150000 200000 400000
Total 700000
115000
0
150000
0
185000
0
245000
0
Outflows-
Cash Expenses 250000 350000 400000 500000 800000
Other Cash
Expenses 150000 200000 250000 300000 400000
Total 400000 550000 650000 800000
120000
0
Surplus 300000 600000 850000
105000
0
125000
0
Budget Particulars Amoun

t
Admin Exp. 100000
Business Exp. 200000
Selling Exp. 150000
Other Exp. 100000
Total 550000
Strategies  The company is required to adopt aggressive marketing strategies
to thrive in the market of Japan.
 The company is required to prepare a specific strategy for its
competitors in the market of Japan.
TASK 4
P5: Succession options for a business
Succession planning is a process in which new leaders are identified by the current
management of the organization (Mobin, Li and Komaki, 2017). In this way the managers make
sure that they are able to identify the right leaders for leading the company effectively. Relove
Technology’s managers are required to make sure that they are able to do succession planning
which will make sure that they are able to achieve their goals as well as objectives without
problems and issues.
The succession options which are available for a business are as follows-
Designated Date Replacement- In this strategy, the businesses are required to look
forward towards replacing their leaders at a specific date (Rudolf, Kienast and Hersperger,
2018). Thus for this purpose a particular date is set when the leaders would be replaced with a
new set of leaders. In Relove Technology, the management can identify various talented
employees which will ensure that the company is able to get the right people to run its
management effectively.
Benefits-
 The use of this strategy makes sure that the businesses are able to get new leaders in due
course of time.
 The use of this strategy makes the designated leaders mentally prepared to take on the
challenging role of leadership.
Drawbacks-
 This strategy is not useful when the leadership requires immediate replacement.
 This strategy involves a lot of expenditure on the part of the company.

Target Date Replacement- In this method, there is a target date which is fixed by the
businesses to replace the current set of leaders (Suomalainen and Xu, 2016). The managers of
Relove Technology can make use of this method to replace their leaders when the time
comes.
Benefits-
 The use of this method allows the businesses to train the talented employees to take on
the leadership role when the time comes.
 The use of this method allows the businesses to change the dynamics according to the
leadership change.
Drawbacks-
 This method does not facilitate immediate replacement if required.
 There is a lot of expenditure which is involved on the training.
External sources- External sources can be used effectively by the leaders of the
organization to find their suitable replacement (Wear, 2016). The management of Relove
Technology can use this method to get talented people to assume the leadership role.
Benefits-
 Highly-skilled candidates can be selected for the leadership role of the organization
(Zheng and Lv, 2016).
 It saves the training cost which would otherwise be incurred by the organization.
Drawbacks-
 This method creates a disadvantage for talented employees within the organization who
wish to assume leadership role in the future.
 The new leaders who come from outside may face problems in managing the
organization.
Justification- Relove Technology’s managers are required to make use of Designated
Date Replacement method for succession planning. Thus, in this way they can plan for
the future time period and can identify those employees who are skillful as well as
talented and can take on the leadership role whenever required. This will ensure that they
are prepared to assume the leadership role when the time comes so that there is no
leadership vacuum created in the organization when the time to replace the current
leaders comes.

CONCLUSION
From the above report, it can be concluded that planning for growth is a strategic activity
which is required in every organization. This makes sure that the company is able to achieve the
desired strategic advantage over the competitors in the future time period in the market. There
are various key considerations for evaluating growth opportunities. Ansoff Matrix can be used
for evaluation of these opportunities. There are different sources of funds available for a
business. A business plan ensures that a roadmap is prepared for the businesses for the future
time period. Different types of succession options are available for a business which it can use
effectively and efficiently to replace its current set of leaders with new leaders when the time
comes.

REFERENCS
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