Softwire: Business Plan for Growth, Evaluation and Succession

This report examines the growth plan for Softwire, a UK-based SME specializing in software design and digital solutions. It covers the application of the Ansoff matrix to identify growth strategies and explores various sources of finance. The report details a comprehensive business plan, including company overview, mission, vision, objectives, and market segmentation using the STP strategy. It also analyzes the marketing mix (product, price, place, promotion) for a new product, Data+. Furthermore, the report evaluates exit or succession strategies, focusing on integration and merger options, comparing their benefits and drawbacks. It concludes by recommending an integration strategy for Softwire, considering its potential impact on financial resources and overall growth.

PLANNING
for
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 &TASK 2...........................................................................................................................2
TASK 3............................................................................................................................................7
P4 & M3 Business plan for the growth and evaluation .........................................................7
TASK 4..........................................................................................................................................10
P5: Exit or succession strategy for Softwire with benefits and drawbacks..........................10
M4- Evaluation of exit or succession option for the SME by comparing and contrasting it with
recommendation...................................................................................................................11
D4- Critical evaluation of succession option for the SME with appropriate course of action11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning is the process of deciding in advance the course of action to be achieved in a
particular period of a time (Sweeney, 2019). Softwire company is one of the leading SME in UK
which deals with software designs, digital solutions and advisory services to some of the UK's
popular brands. The aim is to serve the clients in a best possible manner by providing high level
software designs.
The report covers key aspects of growth using Ans off matrix in the context of Softwire.
There are different sources of finance through which firm can meet the financial requirement.
The report provides a detailed structure of business plan of Softwire firm in UK and its
objectives, financial plan and the complete overview of a company. This report comprises of
comparative evaluation of exit or succession methods of a concerned firm.
TASK 1 &TASK 2
1

2

3

4

5

6

7

TASK 3
P4 & M3 Business plan for the growth and evaluation
A great business plan comprises of all the major factors which effects its operations from
launching a product to its post sale services (Holz-Rau and Scheiner, 2019). Such elements
include researches, analyses, and practising management models.
Overview of company: Softwire is the renowned software developing company in UK. It
is a fastest growing SME, that is famous for its new innovations in the software market. This
company will follow product development strategy, wherein it is soon introducing its new
software, under the name of Data+.
Mission: To provide the best and efficient software systems to clients and engaging with
more and more of potential market segment.
Vision: The long term vision of company is to become the leading software providing
industry in the nation. As also to expand the business on a global level.
Objectives: The organisation has set up targets and goals in respect of its new product. It
will achieve those objectives by following the product development strategy in the exciting
market as its specific objectives are:
 Increment in sales by 10 percent after the launch of new product.
 Promotion of the brand and product in overseas market
 Minimizing the cost by 5 percent on each unit
A vast scope of market segregation is there which can be used by the company for the
new products positioning. It will be analysed by performing the STP strategy for the product
which is discussed in brief as follows:-
STP: It is achieved by identifying the market place and segmenting it into a respective
share of new and potential customer (Herbert, 2019). As for the Data+ Softwire will have to
segregate the market and identify the professionals and other small firms as their potentials
customer. After segmenting the market demographically, it is necessary for marketing managers
to target the customer segment with effective product introduction. Targeting the occupational
group would be much difficult as they don't have enough time to look out for other options and
do not try to shift from other product. Management should also consider the behavioural basis
audience while targeting. The last stage in STP is the positioning in which the product is placed
into the targeted market place.. For the launch of Data+ it would involve the direct approach of
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company towards its customer. Positioning will be done by doing promotion and effective
marketing regarding the new product introduction .
Another important factor for the business plan of Softwire is to place its new product
Data+ by evaluating its marketing mix. It consists of the major 4 Ps of a company which are
described hereby:
 Product- Established in the tech market as a start up in 2000, Softwire has become a fast
growing company. It provides various types of product and services in various sectors
such as AI, governmental systems, mobile applications etc. but the Data+ will acquire the
new share of company's product line.
 Price- The pricing policy of Softwire differ according to market conditions, which is
quite effective for the business. For the new product Data+ the firm will introduce this at
the minimum price possible to acquire more of customer segment. It helps in creating the
cost standards flexible, which makes the company a well profit earner as well as a quality
service provider. Place- Being a service sector enterprise all the goods and services of Softwire are only
available at their authorized places, sale of Data+ will be performed on their official
website, social media and offices. Promotion- As it is a commodity providing company, a huge proportion of sales is
depends on its promotion. The promotional policies for Data+ will be limited but quite
effective in terms of enhancing the business.
Financial information In order to execute the overall plan there is a strict need of
money, to spend on the tasks and operations efficiently (Mishra and et. al., 2019). Here it is an
financial estimate to cover all the expenses of the new business plan:-
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Evaluation. It is done to ensure the level of success, and to monitor the tasks and outputs
for making a comparison among the actual performance and predetermined organisational
objectives.
D3- A Coherent and in depth business plan to acknowledge the formulation and planning of
business to achieve its objectives:-
The planning of the overall process with mention of each and every step is done to
understand the marketing formulation of a product in the market. It also includes the formation
of working flow and increasing the chances attaining the organisational goals, objectives,
Mission and vision of the company, its smart objectives the marketing mix of company’s
financial information (Werlang and et. al., 2019). Various analyses for the marketing is also
important which could be performed by using STP strategy and overall process evaluation.
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