Growth Strategies for SMEs: A Case Study of TXO Systems

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PLANNING FOR GROWTH
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1 SOME OF THE KEY CONSIDERATION SME’S.........................................................4
P1 EVALUATING GROWTH OPPORTUNITIES AND EXPLAIN THESE
CONSIDERATIONS...................................................................................................................4
P2 EXPLAINED THE OPPORTUNITIES FOR GROWTH WITH THE HELP OF APPLING
ANSOFF’S GROWTH VECTOR MATRIX..............................................................................8
M1 OPTIONS FOR GROWTH BY USING THE RANGE OF ANALYTICAL
FRAMEWORKS.........................................................................................................................9
TASK 2 DIFFERENT TYPE OF METHOD THROUGH WHICH THE ORGANIZATION
ACCESS FUNDING AND DIFFERENT TYPE OF FUNDS......................................................11
P3 POTENTIAL SOURCES OF FUNDING AND DISCUSS BENEFITS AND
DRAWBACKS OF EACH SOURCE.......................................................................................11
M2 POTENTIAL SOURCES OF FUNDING...........................................................................13
TASK 3 BUSINESS PLAN...........................................................................................................14
P4 AND M3 BUSINESS PLAN FOR GROWTH AND SOME DETAIL INFORMATION OF
BUSINESS PLAN FOR GROWTH AND DEVELOPMENT.................................................14
TASK 4 VARIOUS WAYS A SMALL BUSINESS OWNER CAN EXIT THE BUSINESS
AND THE IMPLICATIONS OF EACH OPTION.......................................................................16
P5 SUCCESSION OPTIONS FOR A SMALL BUSINESS.....................................................16
M4 CONTRASTING THE OPTIONS AND MAKING VALID RECOMMENDATIONS....17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
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INTRODUCTION
There is much different type of opportunities which will explain towards some of the active
improvement and starting of the latest set of the business which will explain different parts of all
over the world (Adner et al., 2016). The main motive of this report is to identify and evaluate
some of the effective set of the procedure or some methods which will help the small and the
medium size of organization for their improvement. With the help of a different set of the SME
organization, the huge level of the investment will be explained towards some of the
implementations of the different set of the strategy and some process which will help to make the
stability of the organization in the competitive environment (Adner et al., 2016).
In the entire report one specific organization was focused that is TXO system. The main motive
of the organization is to serve professional telecoms asset management services and consultancy.
This company belongs to the telecommunication sector (Adner et al., 2016). The company was
established in 2005 with some limited employee in their organization. They have only 31
employees in their organization. The main vision of the company is to provide the technology
and telecoms network assets all over the world (Adner et al., 2016). The TXO system is one of
the largest telecom network assets management company. They are mainly responsible for the
fair circular economy. They will also acquire some of the sustainably to reused, resold and
recycled for the betterment of the organization and provide a more sustainable planet for all.
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TASK 1 SOME OF THE KEY CONSIDERATION SME’S
P1 EVALUATING GROWTH OPPORTUNITIES AND EXPLAIN THESE
CONSIDERATIONS
The different set of the small business like TXO system needs to make some of the effective
improvement plans with help of implementing some of the effective different strategies to handle
and improve the latest set of the chance for the entire business environment with the main motive
of meeting some of the competitive hurdles effectively (Bianchi, 2015). The company applies
many different types of opportunities in their organization to identify all the development and
growth of the organization with the help of a huge amount of the profit generation (Bianchi,
2015).
Competitive Benefit: the organization makes some of the partnership with others to expand their
business in the competitive market.
PORTER’S GENERIC COMPETITIVE STRATEGIES
Michael Porter gives some set of theories and concept. Based on the two different factors the
environment of the business will be identified. With the help of this, the cost advantages and the
differentiation advantage will be also identified (Bianchi, 2015). The company name TXO
system serves different type of approaches to the organization for increasing the quality of the
product and some of the services in the market to satisfy the need and wants of the customer
(Bianchi, 2015). For attaining maximum profit and some development in the organization, many
different types of resource and the ability of the employee are the need for providing some of the
competitive advantages to the company in the market (Bianchi, 2015).
RESOURCES:
The main motive of the organization is to serve professional telecoms asset management services
and consultancy. This company belongs to the telecommunication sector. The TXO system is
one of the largest telecom network assets management company (Burns et al., 2016). They are
mainly responsible for the fair circular economy. They will also acquire some of the sustainably
to reused, resold and recycled for the betterment of the organization and provide a more
sustainable planet for all (Burns et al., 2016).
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ABILITIES:
Some set of the different abilities are explained by the TXO system and with the help of
marketing the company can easily analyze the set of the different strategies and procedure. On
the other hand, they will make some latest and innovative set of technology and some political
factor in the organization (Burns et al., 2016). It includes the management, modification, and
qualification of an organization.
FIGURE 1 RELATIONSHIP BETWEEN THE RESOURCE, CAPABILITIES AND
COMPETITIVE ADVANTAGE
[Source: Cecchetti, and Kharroubi, 2015]
INTERRELATIONSHIP BETWEEN DEVELOPMENT OPPORTUNITIES AND
COMPETITIVE BENEFITS
The macro-environment of the organization will be identifying with the help of a different set of
changes. With the help of this, some of the contributions are done for the development and the
growth of the organization effectively (Cecchetti, and Kharroubi, 2015). Some of the different
factors which will affect the overall business organization of the TXO system are explained
below:
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POLITICAL FACTORS
Based on the economy of the country the company will achieve political stability and the amount
of stored data. The company sells approx. 6000 parts every month all over the world. This is one
of the telecom companies all over the world so that they will increase in some of the corruption
levels (Cecchetti, and Kharroubi, 2015). The political stability of the organization will also be
affected by some set of taxes.
On the other hand, the political stability of the organization will be affected by some of the
problems to the wages legislation which involve the concept of the extra timing and fewer wages
(Cecchetti, and Kharroubi, 2015). The different set of regulation will explain the safety
regulation which will affect all the sector of the technology.
ECONOMIC FACTORS
The profit generation ability of the organization will highly be affected by the economic stability
of the country. Some of the issues are related to the increasing of the overall capital of the
organization to increase the economic growth of the organization (Cecchetti, and Kharroubi,
2015). With all these some different type of set is involved the rate of inflation, interest and
employment rate which will also define the growth and the stability of the organization based on
the economic environment (Chaston, 2015).
SOCIAL FACTORS
In the social factor, the company will provide some good quality of product and services to their
target customer to satisfy their needs and wants in this competitive market (Chaston, 2015). The
working condition of the organization will highly be affected by the skill level of the population
and some demographic problems. Some culture factor will explain the gender roles and this will
also play a very important role in all over the social impact on an organization (Chaston, 2015).
On the other side, the level of education will also make a huge impact on the standard of
education in an organization. The small and the medium size of the business will get lots of
motivation from the spirit of entrepreneurship and the broad view of society (Chaston, 2015).
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TECHNOLOGICAL FACTORS
This company is based on the telecom industry so the technological factor in the organization is a
normal thing. The company is providing much different type of product and services in such a
way that the price of the organization will explain the storage data which is effectively-identified
(Chaston, 2015). Due to the price of the technology will also affect the set of the strategy and the
procedure of the organization. The impact of the value chain will explain the development of
some innovation in the technological sector and the cost of the company (Chaston, 2015).
ENVIRONMENTAL FACTORS
The organization must have to serve many different sets of the procedure to achieve the top level
of the profit generation of the organization. The macro-environment of the organization will be
identifying with the help of a different set of changes (Chaston, 2015). With the help of this,
some of the contributions are done for the development and the growth of the organization in an
effective manner.
BCG MATRIX
The brand portfolio of the organization will be defined with the help of corporate planning tool.
This is involved some different set of the factor like market share and the speed of the market
growth (Chaston, 2015). The potential identification of the company will identify by using this
tool. This tool is divided into four different parts that are dogs, cash, cow, stars and question
marks. as compared to its competitor the lower portion of the BCG matrix explains in dogs. The
set of the company will define by the cash cow and the high level of the profit generation will
use for the future of the company (Eccles et al., 2017). The different set of industries will be
defined by the stars which have a high growth rate.
PRODUCT LIFE CYCLE
Product life cycle will explain the position of the product in the market. There is much different
type of stages in this where the product will stand in the market. The TXO system provides to
explain the different set of product lifecycle effectively in term of their development (Eccles et
al., 2017).
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P2 EXPLAINED THE OPPORTUNITIES FOR GROWTH WITH THE HELP OF
APPLING ANSOFF’S GROWTH VECTOR MATRIX
ANSOFF GROWTH VECTOR MATRIX
The set of opportunities are defined by the implementation of this type of matrix which is related
to all development and the growth of the organization. This is explained with the help of using a
different type of tools and techniques in the organization for identifying the different set of
opportunities and techniques which are applicable all over the organizational structure of an
organization (Eccles et al., 2017).
PENETRATION TOWARDS MARKET
This is one of the components of the growth matrix which will help on selling the product in the
company. TXO systems serve to sell their latest product and services by involving the risk which
is faced by the different set of competitors in the market (Eccles et al., 2017).
DEVELOPMENT OF MARKET
The TXO system is using this type of strategy in the market. In this, the feasibility of the
improvement of the latest and some effective set of the product also explained. It wills also asses
some different type of services and product to the customer by explaining its marketing
opportunity (Hain et al., 2017).
DEVELOPMENT OF PRODUCT
The company faces many different types of problems during the new invention in their
organization. In this, the company was not so prepared to present themselves in the market
scenario (Hain et al., 2017).
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M1 OPTIONS FOR GROWTH BY USING THE RANGE OF ANALYTICAL
FRAMEWORKS
PORTER’S GENERIC STRATEGIES
Michael Porter gives some set of theories and concept. Based on the two different factors the
environment of the business will be identified. With the help of this, the cost advantages and the
differentiation advantage will be also identified (Hain et al., 2017). The company name TXO
system serves different type of approaches to the organization for increasing the quality of the
product and some of the services in the market to satisfy the need and wants of the customer. For
attaining maximum profit and some development in the organization, many different types of
resource and the ability of the employee are the need for providing some of the competitive
advantages to the company in the market (Hain et al., 2017).
Strategy related to the cost leadership
The TXO system is using this type of technique with the main motive to compete with the
marketing rival so that they will develop or increase their growth in the market. The rate of the
price is decreased by this type of strategy to attract some major number of the customer toward
some of the services and the different set of product which is provided by the company (Johnson,
2016). With the help of this type of strategy, the company will increase the sale of the company
through online business.
Figure 2 PORTER'S GENERIC STRATEGY
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[Sources: Johnson, 2016]
DIFFERENTIATION STRATEGY
The TXO system and the marketing implementation such type of strategy for the development
and the innovative set of services in and organization (Johnson, 2016). While implementing the
latest set of strategy in the market the organization will attract more and more customer towards
them.
FOCUS STRATEGY
The different strategy will increase the different set of facilities which are provided to the
customer by the TXO system. The main motive of the organization is to serve professional
telecoms asset management services and consultancy (Johnson, 2016). This company belongs to
the telecommunication sector.
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TASK 2 DIFFERENT TYPE OF METHOD THROUGH WHICH THE
ORGANIZATION ACCESS FUNDING AND DIFFERENT TYPE OF FUNDS
P3 POTENTIAL SOURCES OF FUNDING AND DISCUSS BENEFITS AND
DRAWBACKS OF EACH SOURCE.
There is a different type of decision are taken by the high-level authorities and investor explain
the number of funds which are required by the organization for taking a decision (Kauffman et
al., 2015). With the help of investment and the selection of the assets, a different type of decision
are combine in the organization and on the other handsome amount of money was distributed in
explaining some selective process od the decision making. There are two types of assets in the
organization those are long term and short term of assets (Kauffman et al., 2015). The different
set of the decision is taken based on the capital budget of the company which has been
explaining as the investment towards the long term assets of the organization (Kauffman et al.,
2015).
The main motive of explaining the systematic proposal is to explain the different set of the
decision which is related to the latest expenditure and capital that are applied over the programs
and some schedule (Kauffman et al., 2015). The company provides many different types of
techniques through which they will provide some product and services to their target customer.
On the other hand, another method which is used by the organization is a financial appraisal.
This will include some payback system with some time intervals (Kauffman et al., 2015). Some
of the most common techniques are defined by the payback system in the organization. At the
time of interval, the discounted payment period will explain.
With the help of investment appraisal, some of the investment-related with the project has been
analyzed which will explain that the project serves usefully or not in the organization (Kauffman
et al., 2015). The TXO system invests their money to purchase a new technology through which
there will be lots of improvement is done in the organization. Some major number of customers
will attract towards then company when they will invest some amount of money for the latest
innovation (Kauffman et al., 2015).
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FINANCIAL GROWTH SOURCES
In the financial growth, there is a different type of procedure and strategy which will explain the
financial condition of the services which are related to the money and different set of value.
Growth and development of the organization are identifying with the help of expiation of the
business. Some funds are required for the expanding of business that are :
BANK LOAN:
The TXO systems need a huge amount of money to expand their business in a large area. The
company also try to invent new techniques and use many different types of strategy in there
organization so that they will easily grow their business and get the maximum amount of profit.
The tax benefit will also explain by the bank loan.
VENTURE CAPITALISTS:
For the long term development, the Venture Capitalists will help the small business organization.
The cost of the organization will rapidly increase because of the equity share.
CROWDFUNDING:
In the crowdfunding, the small amount of money will raise by the many huge groups of people
with the help of internet. This is one of the alternative finance and crowdsourcing in an
organization. This is one of the most important sources because when the business was
established in the market this will help by providing them some feedback and some guidelines.
This will also increase the demand of the customer and this will gain the trust and loyalty of the
customer also.
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