Business Growth Strategies for Quantum Marketing Group

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PLANNING FOR GROWTH
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Contents
LIST OF FIGURES.............................................................................................................................3
INTRODUCTION............................................................................................................................. 4
LO1.................................................................................................................................................5
P1 AND M3................................................................................................................................ 5
M2............................................................................................................................................. 8
LO2.................................................................................................................................................9
P3 AND M2................................................................................................................................ 9
LO3............................................................................................................................................... 11
P4 AND M3.............................................................................................................................. 11
LO4............................................................................................................................................... 15
P5 AND M4.............................................................................................................................. 15
CONCLUSION............................................................................................................................... 20
REFERENCES.................................................................................................................................21
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LIST OF FIGURES
Figure 1: Quantum Marketing Group Logo....................................................................................4
Figure 2: Porter's Generic Strategies............................................................................................. 6
Figure 3: Quantum Marketing Group Financial Analysis..............................................................12
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INTRODUCTION
Small Medium Enterprises (SMEs) are independent organizations that hold a few numbers of
employees and are small firms that are not subsidiaries of already existing huge organizations
(Weber et al., 2015). Over the years, SMEs have been noted to have been established at a rapid
rate across the globe and have been contributing higher to the world economies.
Through this report, an overview of the key areas through which the business can gain a
competitive advantage in the market has been given. The report shall also cover the
determination of opportunities that are available for the growth of SMEs through the
application of various models. Through this report, assessments of various options that are
available for financial growth of SMEs have also been identified and various recommendations
have been made for the same.
Quantum Technology Marketing Group Limited is a UK based small business enterprise which is
a privately owned organization that was established in the year 1988 (Quantum Marketing,
2019). The organization provides marketing services for the technological organizations which
are based in the UK. It assists organizations with a wide range of marketing services for
conducting B2B businesses.
Figure 1: Quantum Marketing Group Logo
[Source: Quantum Marketing, 2019]
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LO1
P1 AND M3
For analyzing the growth opportunities that are held by an organization in the competitive
market, it is essential to understand the different considerations that the firm shall be
undertaking for making effective decisions. To analyze the market, the application of various
models and frameworks has to be done by Quantum Marketing Group, some of which have
been applied in the following:
Porter’s Generic Model
The use of this model can be done by Quantum Marketing Group through which it can
determine its own profitability in the market and adopt an appropriate measure for its
enhancement. Based on the scope of the organization and the competitive advantage it holds in
the market, the strategies can be divided into four categories which are as follows”
 Cost Leadership Strategy
Through this strategy, Quantum Marketing Group can lead into the market through
providing the services at very low costs so that it can lead the market through
economies of scale and increasing the profitability accordingly (Bell et al., 2017).
 Differentiation
This strategy can be adopted by Quantum Marketing Group by providing innovative
services to its customers and position itself uniquely into the market so that it can highly
be preferred by the customers and its market share can be increased by providing
distinctive product than that of the competitor.
 Cost Focus
This strategy can be used by Quantum Marketing Group by focusing on a niche segment
of the market and give rise to the organization's profitability by reducing the costs. In
this, the focus is kept particularly over a specific segment of the market (Salavou, 2015).
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 Differentiation focus
Through this strategy, Quantum Marketing Group shall understand the needs and
requirements of the customers to fulfill them by providing with a differentiated product
(Tanwar, 2013). In this strategy, the focus shall be kept over providing a different
product to a specific segment of the market by Quantum Marketing Group.
Figure 2: Porter's Generic Strategies
[Source: Salavou, 2015]
PESTLE Analysis
PESTLE Analysis has to be used by Quantum Marketing Group so that it can analyze the external
factors of its environment and determine its impact over the business operations of the
organization (Yüksel, 2013). This analysis holds six factors that shall be impacting the business
of Quantum Marketing Group, which have been described in the following:
 Political
The political factors in the UK have been in support of the growth of SMEs in the country
and have assisted the organizations with easy establishment and funding facilities so
that its operations can be conducted efficiently (Cadle et al., 2014). Though the
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government policies of the UK have been impacted negatively due to Brexit, the
organization still holds benefits through the external political factors.
 Economic
These factors shall be impacting the profitability of Quantum Marketing Group on a
huge basis. The inflation rates in the UK have been declining due to which the
profitability of the organization can be assisted (Jurevicius, 2013). Along with it, the
employment rates have also increased through which the organization can be assisted
with highly skilled employee force.
 Social
Social factors also hold a strong impact on the business operations of Quantum
Marketing Group. SMEs have been supporting the organizations in increasing the
employment in the country due to which a positive social image is also built up in the
market and society is benefited from the operations of the organization (Perera, 2017).
 Technological
Technological factors have benefitted the most to Quantum Marketing Group as the
firm has been providing technical services to its clients. The technological; factors have
helped the organization in enhancing its technologies to save the time of clients and
increasing efficiency.
 Legal
Being an SME, legal requirements that have been implied by the government of the UK
have to be followed by Quantum Marketing Group so that it can gain the advantages for
the same (Salavou, 2015). However, the organization has been supported by the
minimum requirements of the legal system in the UK.
 Environmental
Environmental factors have to be considered by Quantum Marketing Group while
conducting its operations so that it can fulfill its social responsibility and lead towards
sustainable development of the industry (Yüksel, 2013).

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M2
Opportunities that are held by Quantum Marketing Group can be assessed with the application
of the Ansoff Matrix through which the organization can identify four major areas of
development, which have been described in the following:
 Market Development
Market development can be used by Quantum Marketing Group through identifying
another potential market wherein it can provide its B2B solutions to the customers
(Schawel and Billing, 2018). Through this strategy, it can expand into new markets of the
UK.
 Market Penetration
This strategy shall allow Quantum Marketing Group in providing the existing services in
the existing market through the development of an innovative marketing strategy to
attract a higher number of customers by providing services at attractive prices
(Gurcaylilar-Yenidogan and Aksoy, 2018).
 Product Development
The strategy of product development can be used for developing its business by
providing new services in the existing market (Dawes, 2018). Through this strategy,
Quantum Marketing Group shall be adding a new range of service to its existing services
range so that customers can be provided with higher satisfaction.
 Diversification
The growth opportunity can be taken by Quantum Marketing Group by expanding its
business into a new market by providing new services. Though this business opportunity
holds the highest risk for the organization, it can also result in higher profits by
diversifying its reach to the new market with the help of an innovative range of services.
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LO2
P3 AND M2
Determining the sources of finance stands of huge importance for Quantum Marketing Group
because it holds a huge impact over the cash flow and profitability of the firm (Burns and
Dewhurst, 2016). There are various sources of finance through which Quantum Marketing
Group can generate finances, some of which are being described below:
Government Subsidies
Government subsidies are a major source of finance for Quantum Marketing Group being an
SME through which government can fund the business of the organization given to the fact that
the major requirements of the grant are being met by the organization (Burns, 2016). These
grants by the government of UK assist easy availability of funds for Quantum Marketing Group
and can be used for successful conduction of operations.
Advantages
 Low interest rates
 Trusted source of funding
 Easy repayment methods
Disadvantages
 High eligibility criteria’s
 Limited amount of funding
Venture Capital
This form of funding can be gained by Quantum Marketing Group through which funds can be
availed through private investors who are willing to invest into high potential businesses with a
perspective of long-term growth of the organization (Cowling et al., 2012). Being a
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technological marketing organization, it would be easier for Quantum Marketing Group to gain
funds through this source.
Advantages
 Strong financial backup
 Gain guidance and expertise
 Achieve additional resources through venture capitalists
Disadvantages
 Lower control over the business
 Long process of funding
 High expected results
Angel Investors
This form of funding can also be taken by Quantum Marketing Group through which an
individual or an organization holding spare investments invest into the small business with a
perspective of higher return over investments (Begenau and Salomao, 2018). This form of
investment is mostly one-time and is preferably taken in the initial stages of business through
sources with personal bonds.
Advantages
 Lower risks of default
 Low collateral requirements
 Higher access to expertise
Disadvantages
 Difficult to find this form of investment
 Higher rate of return is required
 Low structural support
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LO3
P4 AND M3
Executive Summary
This business plan has been made for Quantum Marketing Group through which the
organization can be assisted with the expansion of business opportunities for increasing
profitability and reach in the market (McKeever, 2016). The plan consists of objectives that are
to be attained and various analyses that have been done to ensure its appropriate application.
It shall include SWOT Analysis, financial plan, strategic objectives, risk analysis, etc.
Objectives
In the following are the objectives framed for Quantum Marketing Group:
 To develop services based on the demands of the customers
 Provide higher satisfaction level to the customers
 To increase the overall productivity of Quantum Marketing Group
SWOT Analysis
Strengths
 Automation of services
 Higher customer satisfaction
 Innovative use of technologies
 Highly skilled workforce
Weakness
 Poor financial planning
 Low investment
 Inefficient research and development
Opportunities
 High technology advancements
 Lower inflation rates
 Online platforms of services
 Diversification of service range
Threats
 Increase in strengths of competitors
 Rigid environmental laws to be
followed
 The rapid change in technological
trends
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