Southern Business Technologies: Evaluating Growth Opportunities Report
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AI Summary
This report provides a comprehensive analysis of growth strategies for Southern Business Technologies, a telecommunications company. It begins with an introduction to the importance of planning for business development. Task 1 focuses on evaluating growth opportunities through PESTLE analysis and generic strategies, including cost leadership, differentiation, and differentiation leadership. Task 2 explores the Ansoff growth matrix, evaluating market penetration, market development, product development, and diversification strategies. Task 3 examines funding sources like bank loans and crowd funding, assessing their advantages and disadvantages. Task 4 delves into designing a business plan for growth and financial information. Finally, Task 5 explores exit and succession strategies. The report concludes by summarizing key findings and recommendations for Southern Business Technologies' sustainable growth and future success.

PLANNING FOR
GROWTH
GROWTH
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Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Key considerations for evaluating growth opportunities.................................................3
P2. Ans off growth matrix......................................................................................................6
TASK2.............................................................................................................................................7
P3. Sources of funding...........................................................................................................7
TASK4.............................................................................................................................................9
P4. Designing a business plan for growth and financial information.....................................9
TASK4...........................................................................................................................................11
P5. Exit and succession strategies for the organisations......................................................11
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Key considerations for evaluating growth opportunities.................................................3
P2. Ans off growth matrix......................................................................................................6
TASK2.............................................................................................................................................7
P3. Sources of funding...........................................................................................................7
TASK4.............................................................................................................................................9
P4. Designing a business plan for growth and financial information.....................................9
TASK4...........................................................................................................................................11
P5. Exit and succession strategies for the organisations......................................................11
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Planning is very important and plays a vital role in the growth and development of the
business. For every business to be successful proper planning is very necessary because this will
help in establishing a roadmap for the company through which the set objectives and goals can
be achieved. The organisation undertaken for this report is Southern Business Technologies
which has started its business operations from the year 1965 and deals in providing
telecommunication services. This report will explain the different key consideration which needs
to to be taken into account when growth opportunities are evaluated. It will focus on assessing
different methods through which organisation access funding. The report will also develop a
business plan and communicate the manner in which the business can scaled up. The last part of
the report will assess the different manner in which the small business can exit or succeed the
business.
TASK1
P1. Key considerations for evaluating growth opportunities.
Leading business with success is not an easy task, it requires various aspects of planning
and other necessary options which are important for evaluating the growth opportunities for the
business. Therefore, for Southern business technologies, the internal and external business
environment analyses will be done. This will help in evaluating and knowing the different
internal external factors which are good for the business and which creates hurdles. So, it will
ultimately help the business in analysing the different growth and development opportunities.
PESTLE Analyses
The framework of PESTLE will help in identifying and analysing the external business
environment. It consist of various political, economic, social, technological, legal and
environmental factors. By assessing and evaluating the impact of theses factors the Southern
business technologies will be able to frame certain policies and programs in order to enhance
their growth and development. Therefore, PESTLE will helps in identifying and analysing the
macro environmental factors. The following are the factors discussed below:
Political factors: Under the assessment and evaluation of political aspects the
government intervention and rules and regulations of the government are taken into
consideration. It involves factors like terrorism, taxation policy, subsidies, etc. This will
Planning is very important and plays a vital role in the growth and development of the
business. For every business to be successful proper planning is very necessary because this will
help in establishing a roadmap for the company through which the set objectives and goals can
be achieved. The organisation undertaken for this report is Southern Business Technologies
which has started its business operations from the year 1965 and deals in providing
telecommunication services. This report will explain the different key consideration which needs
to to be taken into account when growth opportunities are evaluated. It will focus on assessing
different methods through which organisation access funding. The report will also develop a
business plan and communicate the manner in which the business can scaled up. The last part of
the report will assess the different manner in which the small business can exit or succeed the
business.
TASK1
P1. Key considerations for evaluating growth opportunities.
Leading business with success is not an easy task, it requires various aspects of planning
and other necessary options which are important for evaluating the growth opportunities for the
business. Therefore, for Southern business technologies, the internal and external business
environment analyses will be done. This will help in evaluating and knowing the different
internal external factors which are good for the business and which creates hurdles. So, it will
ultimately help the business in analysing the different growth and development opportunities.
PESTLE Analyses
The framework of PESTLE will help in identifying and analysing the external business
environment. It consist of various political, economic, social, technological, legal and
environmental factors. By assessing and evaluating the impact of theses factors the Southern
business technologies will be able to frame certain policies and programs in order to enhance
their growth and development. Therefore, PESTLE will helps in identifying and analysing the
macro environmental factors. The following are the factors discussed below:
Political factors: Under the assessment and evaluation of political aspects the
government intervention and rules and regulations of the government are taken into
consideration. It involves factors like terrorism, taxation policy, subsidies, etc. This will
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have a positive impact on the southern business technologies if the government of the UK
minimises the rate of tax because with this the company will be able to get an opportunity
to provide new products and services to the customers.
Economic factors: The economic factor is related to the profitability and financial
stability of the company. The factors which needs to be considered under this are
inflation, deflation, recession, etc. This will affect the Southern business technologies
negatively because during the period of inflation, the prices of each and every product
will go up and customers will prefer to spend only on useful services. This will bring
down the level of profit for the company. Thus, this factor is one of the most important in
evaluating the growth opportunities for the business.
Social factors: The social factor consist of buying attitude, social beliefs and customs,
etc. of the customer. This plays a very important role for Southern business technologies
because it helps in knowing that which products are preferred more by the customers. For
instance, at present the customer needs quick speed of internet because everything is
technology enabled so the company will have positive impact of this and this will help in
developing certain products and services.
Technological factors: It is one of the most prominent factor and in telecommunication
sector this has a huge role to play for enhancing the growth and development of the
Southern business technologies. As the demand of customers are changing everyday so
this gives an opportunity to provide innovative products and services like 5G network,
touch screen landlines, etc. to the customers which requires concentration on research and
development department of the company.
Environmental factors: The business organisations are working for the corporate social
responsibility which enhances their brand image and goodwill in the market. It includes
factors like use of recyclable materials, thermal and nuclear power, solar power, etc. So
this will have positive impact on Southern business technologies because, the company
will be able to make use of solar power plants which will help in controlling and
minimising the emission of carbon. Furthermore, the effective use of recyclable materials
will help in proper control and minimisation of wastage that will contribute in the
protection of environment.
minimises the rate of tax because with this the company will be able to get an opportunity
to provide new products and services to the customers.
Economic factors: The economic factor is related to the profitability and financial
stability of the company. The factors which needs to be considered under this are
inflation, deflation, recession, etc. This will affect the Southern business technologies
negatively because during the period of inflation, the prices of each and every product
will go up and customers will prefer to spend only on useful services. This will bring
down the level of profit for the company. Thus, this factor is one of the most important in
evaluating the growth opportunities for the business.
Social factors: The social factor consist of buying attitude, social beliefs and customs,
etc. of the customer. This plays a very important role for Southern business technologies
because it helps in knowing that which products are preferred more by the customers. For
instance, at present the customer needs quick speed of internet because everything is
technology enabled so the company will have positive impact of this and this will help in
developing certain products and services.
Technological factors: It is one of the most prominent factor and in telecommunication
sector this has a huge role to play for enhancing the growth and development of the
Southern business technologies. As the demand of customers are changing everyday so
this gives an opportunity to provide innovative products and services like 5G network,
touch screen landlines, etc. to the customers which requires concentration on research and
development department of the company.
Environmental factors: The business organisations are working for the corporate social
responsibility which enhances their brand image and goodwill in the market. It includes
factors like use of recyclable materials, thermal and nuclear power, solar power, etc. So
this will have positive impact on Southern business technologies because, the company
will be able to make use of solar power plants which will help in controlling and
minimising the emission of carbon. Furthermore, the effective use of recyclable materials
will help in proper control and minimisation of wastage that will contribute in the
protection of environment.
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Legal factors: The term legal means dealing with laws and regulations. It includes
factors like consumer law, labour law, etc. The Southern business technologies will have
a positive impact of adopting these laws because it will help in protecting the rights of
customers and also employees will feel safe and secure which will regularly motivate
them to work for the betterment of the company.
Therefore, the above discussed factors will provide various negative and positive impact on
the telecommunication sector which will help the Southern business technologies in effectively
attaining the business goals and objectives.
Generic strategies
The generic strategies are developed by the Michael Porter which helps the company in
determining and evaluating the level of profitability. The Southern business technologies will
adopt such technologies because it will in knowing the level of competitive advantage for the
company. The following are the strategies which are described by the Michael Porter:
Cost leadership: This strategy is concerned with providing the low cost products and
services to the customers in the telecommunication industry. By adopting this strategy,
the Southern business technologies will be able to produce large scale products at lower
prices. This help them in achieving the low cost producer tag in the respective industry.
With this, they will be able to tap various customers.
Differentiation: The strategy of differentiation is concerned with providing
differentiated and unique products and services to the customers. There are two segments
of this strategy namely, cost focus and differentiation focus. In cost focus, the Southern
business technologies will emphasis on one or few market segments and provides low
cost products to such markets. Where as in differentiated focus, the business organisation
aims to create differentiation in one or a small number of target market customers.
Differentiation leadership: Under this strategy, the Southern business technology will
target the much larger segments of the market and aims to accomplish the competitive
advantage with the help of differentiation across entire industry. It will provide superior
quality products, create strong brand recognition in the market, use different promotional
tools and methods, etc.
From the above motioned Porter generic strategies, the Southern business technologies
can gain the competitive advantage over its competitors.
factors like consumer law, labour law, etc. The Southern business technologies will have
a positive impact of adopting these laws because it will help in protecting the rights of
customers and also employees will feel safe and secure which will regularly motivate
them to work for the betterment of the company.
Therefore, the above discussed factors will provide various negative and positive impact on
the telecommunication sector which will help the Southern business technologies in effectively
attaining the business goals and objectives.
Generic strategies
The generic strategies are developed by the Michael Porter which helps the company in
determining and evaluating the level of profitability. The Southern business technologies will
adopt such technologies because it will in knowing the level of competitive advantage for the
company. The following are the strategies which are described by the Michael Porter:
Cost leadership: This strategy is concerned with providing the low cost products and
services to the customers in the telecommunication industry. By adopting this strategy,
the Southern business technologies will be able to produce large scale products at lower
prices. This help them in achieving the low cost producer tag in the respective industry.
With this, they will be able to tap various customers.
Differentiation: The strategy of differentiation is concerned with providing
differentiated and unique products and services to the customers. There are two segments
of this strategy namely, cost focus and differentiation focus. In cost focus, the Southern
business technologies will emphasis on one or few market segments and provides low
cost products to such markets. Where as in differentiated focus, the business organisation
aims to create differentiation in one or a small number of target market customers.
Differentiation leadership: Under this strategy, the Southern business technology will
target the much larger segments of the market and aims to accomplish the competitive
advantage with the help of differentiation across entire industry. It will provide superior
quality products, create strong brand recognition in the market, use different promotional
tools and methods, etc.
From the above motioned Porter generic strategies, the Southern business technologies
can gain the competitive advantage over its competitors.

P2. Ans off growth matrix.
The Ansoff growth matrix is a kind of marketing planning model which helps in defining and
determining the growth and product strategy. This is one of the most important strategy which
helps the Southern business technologies in assessing different growth and development
opportunities. Under this, there are four different strategies which can be adopted the company
and they are discussed below:
Market penetration: Under this strategy, the Southern business technologies will work
to sell the current products and services of the company in the same market. This strategy
carries a very low risk because there is no innovation or investment and also the product
is not sold in different market which lowers the cost of promotion for the company.
Though such products have some saturation limits when the products reaches to the
maximum level.
Market development: In this strategy, the Southern business technologies will work to
sell the current products into the new market. This includes the new geographic location,
and it is good option if the core competencies of the particular products are easily
available in the new location at lower prices. Though, this strategy is quiet risky because
the business is going to be expanded in new location which creates the uncertainty of the
results.
Product development: In this strategy, the company works on selling new products to
the existing market. This strategy is quiet good for the Southern business technologies
because, it will help in bringing new and innovative products to the customers because
they are very demanding and requires innovative products and services. This has the
benefit to the company that it is already known to the customers but also carries the risk
because there is an uncertainty associated with the products and services.
Diversification: In this strategy, the new products and services are marketed to the new
market. This is highly risky strategy because under this the Southern business
technologies will need to deal with situations where there is high level of risk associated.
On one hand this will provide an opportunity to the company to enter into new market
segment and new product line and on other hand it creates the problem of uncertainty that
whether the new market will accept the company or not. This also needs lot of investment
in innovation and promotional activities.
The Ansoff growth matrix is a kind of marketing planning model which helps in defining and
determining the growth and product strategy. This is one of the most important strategy which
helps the Southern business technologies in assessing different growth and development
opportunities. Under this, there are four different strategies which can be adopted the company
and they are discussed below:
Market penetration: Under this strategy, the Southern business technologies will work
to sell the current products and services of the company in the same market. This strategy
carries a very low risk because there is no innovation or investment and also the product
is not sold in different market which lowers the cost of promotion for the company.
Though such products have some saturation limits when the products reaches to the
maximum level.
Market development: In this strategy, the Southern business technologies will work to
sell the current products into the new market. This includes the new geographic location,
and it is good option if the core competencies of the particular products are easily
available in the new location at lower prices. Though, this strategy is quiet risky because
the business is going to be expanded in new location which creates the uncertainty of the
results.
Product development: In this strategy, the company works on selling new products to
the existing market. This strategy is quiet good for the Southern business technologies
because, it will help in bringing new and innovative products to the customers because
they are very demanding and requires innovative products and services. This has the
benefit to the company that it is already known to the customers but also carries the risk
because there is an uncertainty associated with the products and services.
Diversification: In this strategy, the new products and services are marketed to the new
market. This is highly risky strategy because under this the Southern business
technologies will need to deal with situations where there is high level of risk associated.
On one hand this will provide an opportunity to the company to enter into new market
segment and new product line and on other hand it creates the problem of uncertainty that
whether the new market will accept the company or not. This also needs lot of investment
in innovation and promotional activities.
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From the above discussed different strategies, the best strategy which must be adopted by
the Southern business technologies are product development. This will help the company in
staying competitive in the market and keep bringing the new and innovative products as per the
needs and requirements of the customers.
TASK2
P3. Sources of funding.
Funds plays a very important role in the growth and development of the market. This is
because no business activity can be effectively directed and leads to fulfilment of business goals
and objectives without adequate funds. For this, there are various sources of funds which can be
adopted by the Southern business technologies in order to meet the daily requirements,
promotional activities, innovation, etc. So some of the sources of funds are discussed below:
Bank loan: A bank is financial institutions which fulfils various needs and requirements of
the business organisation. The Southern business technologies can adopt this source of fund
because under this, the company will receive the money from the bank and in future the full
repayment of amount can be made on a specified date with due instalments and fixed interest
rates. These loans are time bound and good source of fund for small organisations.
Advantages Disadvantages
The bank loan money which business gets is
based on the importance of the business and its
perceived capability to service the loan by
making timely payments with proper interest
which will help Southern business technologies
in establishing proper control over the
activities of the company.
One of the major drawback from the bank loan
is that it is very difficult to obtain. The
procedure for obtaining a bank loan is very
lengthy and difficult. It requires some
collateral security which needs to be mortgage
with the bank and in case of non repayment of
loan the bank will acquire the control over that
security.
The bank loan is temporary in nature and once
it has been completely paid off then the
business owner of Southern business
technologies will have no obligation to the
financial institution.
Interest rate which are required to be charged
by the bank for the small business
organisations are quiet high which will create a
problem for Southern business technologies.
the Southern business technologies are product development. This will help the company in
staying competitive in the market and keep bringing the new and innovative products as per the
needs and requirements of the customers.
TASK2
P3. Sources of funding.
Funds plays a very important role in the growth and development of the market. This is
because no business activity can be effectively directed and leads to fulfilment of business goals
and objectives without adequate funds. For this, there are various sources of funds which can be
adopted by the Southern business technologies in order to meet the daily requirements,
promotional activities, innovation, etc. So some of the sources of funds are discussed below:
Bank loan: A bank is financial institutions which fulfils various needs and requirements of
the business organisation. The Southern business technologies can adopt this source of fund
because under this, the company will receive the money from the bank and in future the full
repayment of amount can be made on a specified date with due instalments and fixed interest
rates. These loans are time bound and good source of fund for small organisations.
Advantages Disadvantages
The bank loan money which business gets is
based on the importance of the business and its
perceived capability to service the loan by
making timely payments with proper interest
which will help Southern business technologies
in establishing proper control over the
activities of the company.
One of the major drawback from the bank loan
is that it is very difficult to obtain. The
procedure for obtaining a bank loan is very
lengthy and difficult. It requires some
collateral security which needs to be mortgage
with the bank and in case of non repayment of
loan the bank will acquire the control over that
security.
The bank loan is temporary in nature and once
it has been completely paid off then the
business owner of Southern business
technologies will have no obligation to the
financial institution.
Interest rate which are required to be charged
by the bank for the small business
organisations are quiet high which will create a
problem for Southern business technologies.
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Crowd funding: This is a new concept in the business market where the business
enterprise gets funded through a series of small operations and donation from the various small
investors. In exchange of this the business organisation makes a commitment to deliver a niche
or equity share in the organisation. This will be used by the Southern business organisation in
order to get funded for their small projects. Furthermore, this is normally done through online
mode where the company can host the campaign for crowd funding.
Advantages Disadvantages
The crowd funding bears a low level of risk
because it involves very low investment for the
Southern business technologies. Furthermore,
there is nothing required to do if the business
fails to meet its objectives and goals.
On contrary, by using this source of fund, the
Southern business technologies faces various
problems because it is largely time consuming.
The company will also required to invest more
on carrying out the various marketing
campaigns.
The crowd funding is based on technologies.
And this helps the Southern business
technologies in tapping the large number of
customers for the organisation. Apart from
this, the social media plays a major role in
spreading the crowd funding which can be
adopted by the company.
There is risk associated of failure because
many campaigns fails to fulfil the goals and
objectives. Furthermore, the Southern business
technologies will require to bear the high fees
for launching the campaign which makes it
quiet expensive.
Angel financing: Angel financing is done through high net worth individuals who have
the capability to provide financial banking for the small start up and entrepreneurs. They provide
the funds which can be used by the Southern business technologies for the one time. It is
regarded as the primary source of funds for many small business organisations and start up
companies. This fosters innovation which helps in transforming the business into the higher level
of economic growth.
Advantages Disadvantages
The primary advantage which will be
experienced by the Southern business
By using this sour of fund, the Southern
business technologies will face the reduction of
enterprise gets funded through a series of small operations and donation from the various small
investors. In exchange of this the business organisation makes a commitment to deliver a niche
or equity share in the organisation. This will be used by the Southern business organisation in
order to get funded for their small projects. Furthermore, this is normally done through online
mode where the company can host the campaign for crowd funding.
Advantages Disadvantages
The crowd funding bears a low level of risk
because it involves very low investment for the
Southern business technologies. Furthermore,
there is nothing required to do if the business
fails to meet its objectives and goals.
On contrary, by using this source of fund, the
Southern business technologies faces various
problems because it is largely time consuming.
The company will also required to invest more
on carrying out the various marketing
campaigns.
The crowd funding is based on technologies.
And this helps the Southern business
technologies in tapping the large number of
customers for the organisation. Apart from
this, the social media plays a major role in
spreading the crowd funding which can be
adopted by the company.
There is risk associated of failure because
many campaigns fails to fulfil the goals and
objectives. Furthermore, the Southern business
technologies will require to bear the high fees
for launching the campaign which makes it
quiet expensive.
Angel financing: Angel financing is done through high net worth individuals who have
the capability to provide financial banking for the small start up and entrepreneurs. They provide
the funds which can be used by the Southern business technologies for the one time. It is
regarded as the primary source of funds for many small business organisations and start up
companies. This fosters innovation which helps in transforming the business into the higher level
of economic growth.
Advantages Disadvantages
The primary advantage which will be
experienced by the Southern business
By using this sour of fund, the Southern
business technologies will face the reduction of

technologies is that they will not required to
pay the monthly repayments by adopting this
way of financing.
control over the resources and the practices.
This is because after receiving funds through
this source, the company will be need to
consult them while taking each and every
decision.
Apart from this, it helps in providing a support
for the future funds which is easily available.
There is proper guidance and support for the
company which will help them in deciding
whether to go for this option of not.
Majority of the anger financers adopts multiple
start-ups which makes the venture over
extended in terms of time.
TASK4
P4. Designing a business plan for growth and financial information.
Business plan is the set of written document which helps in providing the guidance and
roadmap for the company in order to achieve the business goals and objectives. It is very crucial
to have proper business plan for the Southern business technologies so that the attainment of
business objectives can be done effectively and efficiently. For this, the Southern business
technologies will frame a business plan to enhance the growth and development of the company
in the following manner.
Objectives, mission and vision
Mission: The mission statement for the Southern business technologies is “ to develop
the robust and secure telecommunication network and services with special focus on the
lower class people of the market”.
Vision: The vision statement of the company is “ to provide, secure, reliable and most
affordable with higher quality network services”.
Business objectives: The objectives of the business are SMART which means specific,
measurable, accessible, reliable and time bound. So the objective of the Southern
business technologies is “ to attain the success and growth with new products and
services which will increase the sale by 10 percent by the end of 2019”.
SWOT Analyses
pay the monthly repayments by adopting this
way of financing.
control over the resources and the practices.
This is because after receiving funds through
this source, the company will be need to
consult them while taking each and every
decision.
Apart from this, it helps in providing a support
for the future funds which is easily available.
There is proper guidance and support for the
company which will help them in deciding
whether to go for this option of not.
Majority of the anger financers adopts multiple
start-ups which makes the venture over
extended in terms of time.
TASK4
P4. Designing a business plan for growth and financial information.
Business plan is the set of written document which helps in providing the guidance and
roadmap for the company in order to achieve the business goals and objectives. It is very crucial
to have proper business plan for the Southern business technologies so that the attainment of
business objectives can be done effectively and efficiently. For this, the Southern business
technologies will frame a business plan to enhance the growth and development of the company
in the following manner.
Objectives, mission and vision
Mission: The mission statement for the Southern business technologies is “ to develop
the robust and secure telecommunication network and services with special focus on the
lower class people of the market”.
Vision: The vision statement of the company is “ to provide, secure, reliable and most
affordable with higher quality network services”.
Business objectives: The objectives of the business are SMART which means specific,
measurable, accessible, reliable and time bound. So the objective of the Southern
business technologies is “ to attain the success and growth with new products and
services which will increase the sale by 10 percent by the end of 2019”.
SWOT Analyses
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The SWOT analyses is the framework which helps in identifying the internal strength and
weakness and external threat and opportunities which will help the business organisation to
attain the competitive advantage for the company. The following is the SWOT of Southern
business technologies discussed below:
Strength
The company has strong brand
recognition which helps them in
enhancing the overall growth and
development.
It has higher class of workforce who
are able to generate new and innovative
products and services and satisfies
customers.
Weakness
The Southern business technologies
faces the problem of funds due to
which they are able to restrict the
growth and development of the
company.
Poor network coverage area is again
one of the major drawback which
requires the company to serve
negatively to the people.
Opportunities
The company has an opportunity to
expand the business into the new
geographic location.
It also has an opportunity to exploit the
various available resources available in
the market and obtain a share and
establish the image.
Threat
The company faces threat from big
telecommunication industries and
companies like Vodafone, Virgin, etc.
The political threat which creates the
problem of taxation can affect the
company adversely.
Segmentation, targeting and positioning
Segmentation: The term segmentation is concerned with dividing the market as per the
similar characteristics. Therefore, the Southern business technologies will segment the
market on the basis of demographics, where they will tap those people who have lower
income groups, who wants affordable prices of products and services.
Targeting: The term targeting is concerned with the putting emphasis on a group of
customers for whom the company is producing products and services. Therefore, the
weakness and external threat and opportunities which will help the business organisation to
attain the competitive advantage for the company. The following is the SWOT of Southern
business technologies discussed below:
Strength
The company has strong brand
recognition which helps them in
enhancing the overall growth and
development.
It has higher class of workforce who
are able to generate new and innovative
products and services and satisfies
customers.
Weakness
The Southern business technologies
faces the problem of funds due to
which they are able to restrict the
growth and development of the
company.
Poor network coverage area is again
one of the major drawback which
requires the company to serve
negatively to the people.
Opportunities
The company has an opportunity to
expand the business into the new
geographic location.
It also has an opportunity to exploit the
various available resources available in
the market and obtain a share and
establish the image.
Threat
The company faces threat from big
telecommunication industries and
companies like Vodafone, Virgin, etc.
The political threat which creates the
problem of taxation can affect the
company adversely.
Segmentation, targeting and positioning
Segmentation: The term segmentation is concerned with dividing the market as per the
similar characteristics. Therefore, the Southern business technologies will segment the
market on the basis of demographics, where they will tap those people who have lower
income groups, who wants affordable prices of products and services.
Targeting: The term targeting is concerned with the putting emphasis on a group of
customers for whom the company is producing products and services. Therefore, the
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Southern business technologies will target the people who want low and affordable
telecommunication services.
Positioning: The positioning strategy is the one through which the company is able to
establish their brand by defining the unique feature. Therefore, the positioning strategy of
the Southern business technologies is concerned with delivering the new and innovative
products which are served by big brands at comparatively lower and affordable prices.
Budget
The budget is defined as the total amount of money which is required to get the fulfilment
of business objectives and goals. The following is the income statement of the Southern
business technologies:
TASK4
P5. Exit and succession strategies for the organisations.
Every business organisation has certain exit and succession strategies because no business
can run for the longer period time with same style and manner.
Exit strategies
The exit strategies are the one which are adopted by the business organisation in order to
win up the business due to the negative profitability and poor sales in the market. There are
various exit strategies which can be adopted by the Southern business technologies and some of
them are discussed below:
Liquidation: Under this strategy, the business closes up and all the assets are sold off.
For the small organisations like Southern business enterprise, this is the most suitable option
where the performance of the company is dependent on one or few individuals only.
Advantage: This strategy is the most simple to use and helpful for the Southern business
technologies in wounding up the business rapidly.
Disadvantage: The liquidation has the lowest return which is to be generated at the time
of sale. Furthermore, the second hand used equipments are depreciated and valued at much lower
prices compared to the ongoing market prices. The creditors are the people who have the
authority to first claim the funds generated from the sale of the assets.
telecommunication services.
Positioning: The positioning strategy is the one through which the company is able to
establish their brand by defining the unique feature. Therefore, the positioning strategy of
the Southern business technologies is concerned with delivering the new and innovative
products which are served by big brands at comparatively lower and affordable prices.
Budget
The budget is defined as the total amount of money which is required to get the fulfilment
of business objectives and goals. The following is the income statement of the Southern
business technologies:
TASK4
P5. Exit and succession strategies for the organisations.
Every business organisation has certain exit and succession strategies because no business
can run for the longer period time with same style and manner.
Exit strategies
The exit strategies are the one which are adopted by the business organisation in order to
win up the business due to the negative profitability and poor sales in the market. There are
various exit strategies which can be adopted by the Southern business technologies and some of
them are discussed below:
Liquidation: Under this strategy, the business closes up and all the assets are sold off.
For the small organisations like Southern business enterprise, this is the most suitable option
where the performance of the company is dependent on one or few individuals only.
Advantage: This strategy is the most simple to use and helpful for the Southern business
technologies in wounding up the business rapidly.
Disadvantage: The liquidation has the lowest return which is to be generated at the time
of sale. Furthermore, the second hand used equipments are depreciated and valued at much lower
prices compared to the ongoing market prices. The creditors are the people who have the
authority to first claim the funds generated from the sale of the assets.

Selling business to manager or employees: When the business is opting for closing then
it can be sold to the current managers or employees who have key interest in the
organisation.
Advantages: By adopting this strategy, the business can thrive as the employees will get
established business which are familiar and enthusiastic. Furthermore, managing and arranging
the long term buyout by employees will be able to maximise the loyalty and can greatly motivate
the staff to work hard in order to make business successful.
Disadvantages: The major disadvantage of this is that employees may not have enough
knowledge and qualification to carry on the operations of the business. Furthermore, the current
clients may not be satisfied with such changes and modification which can affect the company
adversely.
Sell the business in open market: This is one of the most commonly used exit strategy
for the small businesses like Southern business technologies. In this, during the certain period of
time when the owner decides to retire then they can the business open in the market at certain
price. And when they get the amount which satisfies them will help in moving on.
Advantages: The advantage of this strategy is to provide profits to the buyer and helps in
enhancing attractive sale and profitability. Furthermore, the asset and goodwill of the company
can be incorporated when the business is required to be valued for sale and this helps in
maximising the return for the business.
Disadvantages: A marginally profitable business is very difficult for sale because
finding the suitable buyer through the open market is a problematic. Furthermore, the business
can be very difficult to get valued and the selling price can be much lower than the expected one.
Succession strategies
In order to enter in some new business there are also some new strategies that could help
the business to make their entry in the new markets. The explanation of the strategies that could
help the organisation to make their entry in the new market are provided as under:
Merger: In the following strategy to make an entry by the business in the new markets in
merger. It is the situation in which an organisation makes their business to merge with the new
organisation so that it could become possible for the organisation to make their place in the new
market in which the organisation is trying to make their place. In addition to this, it also helps the
organisation to manage their risk with the help of other organisation as in the case of loss, both
it can be sold to the current managers or employees who have key interest in the
organisation.
Advantages: By adopting this strategy, the business can thrive as the employees will get
established business which are familiar and enthusiastic. Furthermore, managing and arranging
the long term buyout by employees will be able to maximise the loyalty and can greatly motivate
the staff to work hard in order to make business successful.
Disadvantages: The major disadvantage of this is that employees may not have enough
knowledge and qualification to carry on the operations of the business. Furthermore, the current
clients may not be satisfied with such changes and modification which can affect the company
adversely.
Sell the business in open market: This is one of the most commonly used exit strategy
for the small businesses like Southern business technologies. In this, during the certain period of
time when the owner decides to retire then they can the business open in the market at certain
price. And when they get the amount which satisfies them will help in moving on.
Advantages: The advantage of this strategy is to provide profits to the buyer and helps in
enhancing attractive sale and profitability. Furthermore, the asset and goodwill of the company
can be incorporated when the business is required to be valued for sale and this helps in
maximising the return for the business.
Disadvantages: A marginally profitable business is very difficult for sale because
finding the suitable buyer through the open market is a problematic. Furthermore, the business
can be very difficult to get valued and the selling price can be much lower than the expected one.
Succession strategies
In order to enter in some new business there are also some new strategies that could help
the business to make their entry in the new markets. The explanation of the strategies that could
help the organisation to make their entry in the new market are provided as under:
Merger: In the following strategy to make an entry by the business in the new markets in
merger. It is the situation in which an organisation makes their business to merge with the new
organisation so that it could become possible for the organisation to make their place in the new
market in which the organisation is trying to make their place. In addition to this, it also helps the
organisation to manage their risk with the help of other organisation as in the case of loss, both
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