Planning for Growth: Evaluating Opportunities for Southern Business

This report provides a comprehensive analysis of growth planning for Southern Business Technologies, a telecom service provider. It begins by identifying key considerations for evaluating growth opportunities, including Porter's generic competitive strategies and PESTLE analysis. The report then explores Ansoff's growth vector matrix, detailing market penetration, product development, market development, and diversification strategies. It further examines various sources of funding, such as bank loans, overdrafts, and crowdfunding, outlining their benefits and drawbacks. The report includes a business plan, and concludes with a discussion of exit and succession options. The report aims to provide strategic insights for effective business growth and sustainable development.

PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1. Key considerations for evaluating the growth opportunities................................................1
P.2. Ansoff's growth vector matrix identifies the growth strategy to retain in market. .............4
P3. Various sources of funding with benefits and drawbacks ...................................................5
P.4. Provide the business plan for the organizations ..................................................................8
P5. Write the exit and succession option for the organization..................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
For every organization it is very important to have sound planning for effective working.
The sound planning in an organization helps in growth of business. Before, implementing the
new ideas an organization should do lots of planning about it. Business planning is systematic
process which involves all managerial function in it. This report will focus related topics
regarding planning for the growth for Southern business technologies. This report will describe
about various strategy which are used to evaluate growth opportunities. It will also provide
deeper insight of the sources of financing which organization can use to raise its funding. Apart
from that it will also discuss various exit and succession option for growth of business.
P1. Key considerations for evaluating the growth opportunities
Southern business technologies are a telecom service providing organization, which
provides telecom services to customers. One of important thing of organization is to maintain
core competencies in order to survive in cut throat competition in the market. For southern
business technologies it is very important to continue their business environment. Following are
key aspects of business should be considered inside the organization (Wu, 2015).
Different market uses the various strategies to enhance productivity of their organization,
and to evaluate their strengths and shortcomings. The two strategies are PESTLE analysis which
helps organization to understand about external environment and second one is Porter's generic
which helps to estimate competitive analysis.
Porter generic competitive strategy
Porter generic strategy helps Southern businesses technologies in effectively analyzing of
competitors presence in markets (Scarborough, 2016). This also helps in planning of strategies
which helps organization to enhance overall performance. As firm wants to introduce some more
services which can be affordable by all customers. The strategy helps in systematic study of
market. Porter generic consisted of four factors which are discussed under-
Cost leadership: This process involves reduction of cost of product and services in order
to attract customers. This process is used to increase market share by lowering cost so that more
and more customer can be attracted towards new services (Barnett, 2017). This strategy helps the
firm positively. Due to the lower cost of services helps them in increase of sale of their new
product and services.
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Differentiation: This factor of porter generic model helps Southern business
technologies to make uniqueness from competitors of product and services. With the help of
innovation and creativity organization can differentiate its services from competitor (Keehan and
et.al., 2015). With the help of implementation of good research and development process firm
can achieve the good result of their services. R and D process helps the Southern business
technologies in furnishing a high quality services or products to their customers.
Cost focus: This factor mainly focuses on the pricing strategy of the product and services
(Krueckeberg, 2018.). It ascertains that the prices of the new product and services should be
affordable by the customers. It helps in the enhancement of profitability as well as attract more
customers. Southern business technologies should maintain its cost very efficiently, so that it can
meet the goals of organization and all the expenses and produces good amount of profit.
Differentiation focus: This factor for porter generic strategy aims at focusing on
different markets to introduce their product and services. It emphasizes that the product of the
organization must be unique so that more and customers can attract. The differentiation focus
strategy often involves strong brand loyalty among customers.
For southern businesses technologies the cost leadership strategy will be suitable
if they use in their system because they are planning to bring new services at very much
affordable prices with lots of perks and benefits. This strategy is also beneficial in analyzing their
customer’s taste and preferences which helps organization to build strong cost leadership for the
better outcomes.
PESTLE analysis: this strategy is very much auspicious for organization to understand
the changing environment. It is very important to study the external environment if one want to
stay in the market (Gupta and et.al.., 2015). The environment is dynamic which keeps on
changing. To fight in the market and maintain the position it is very important to have a
systematic study of the environment. Southern business technologies provide the telecom
services for them it is essential to know about all the factors which can affect them. The table
presents the factors that can affect the organization-
Factors Description
Political
factors
Following are the factors that can affect the southern business technologies-
 Organizations are bound with certain rules and regulations of the
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government which always effects the working of the organization.
 Laws of government have always restricted on tariffs and phones that
can be easily produced by telecommunication industry.
Economic
factors
Following are the factors which can affect the southern business technologies-
 Inflation, growth of economy, and the change in interest are having
great effect on telecommunication industry.
 Growth in population increases the usage of telecommunication
resources.
 Recession
Social factors  Following are the social factors which can affect the organization -
 Changes in consumer taste and preferences may affect the firm.
 Telecommunication industry have a huge monopoly they are in take
care of both product and services.
Technological
factors
Following factors are discussed under-
 Telecommunication industry needs to update their systems and
working patterns with the latest tools and technologies.
 Basic needs in smartphones must be covered like caller ID, voice mail,
messaging etc.
 Telecommunication is moving towards the wireless business.
Legal factors Following are legal factors which can affect the Southern business
technologies-
 Different countries have different policies which can effect while
import and export.
 Legal issues of the country can affect the working of the organization.
 Issues with government, monopoly and customers can affect the
business.
Environmental The environmental factors which can affect the organization are as under -
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factors
 Change in climatic condition and global warming restricts the services
to reach the customers.
 In the telecom industry changing often, one cannot assure about which
technology will stay, be advance, or discarded.
P.2. Ansoff's growth vector matrix identifies the growth strategy to retain in market.
It includes the following four strategies
Product development (existing market + new product)
Market penetration (existing market + existing product)
Diversification (new product+ new market)
Market development (existing product + new market)
Market penetration
The reason behind the success of Southern business technologies is its ability to keep
lower price to grab the markets. Market penetration means existing product in existing market I.e
selling the same product to the same customer. Customer can be retained by finding new
techniques and innovative ways (Kono, 2016). After building its name, now the main aim of the
organization is to penetrate and trigger out all top opportunities that can be capitalized. To
enhance its services southern business technologies needs to penetrate the market.
Product development strategies
Product development strategies includes the development of services and products. To
fight with the competitor, it is very important to keep on changing with the environment that
means to retain the customers' loyalty, an organization has to come up with the innovative
products and services (Mason, 2015). This strategy includes variation of the services and goods
to sell the customers
Market development
Market development means to develop the market with existing. Market could be
developing by targeting new areas and fresh customers. In this growth strategy organization tries
to sell the existing product to the different customer in different areas. Southern business
technologies can do the expansion of the business by identifying the target market and the
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innovative way to sell them (Scarborough, 2016). Market can be identified by knowing about
the customers’ needs and preferences, lifestyle etc. By implementing exciting pricing strategy,
making distribution channel strong and brand building etc.
Diversification
Apart from product development strategies and market development strategies, southern
business technologies have now switched to the related diversification strategies to continue the
fastest growth strategies (Barnett, 2017). It is a high risk strategy because in this organization
attempts to sell new product to the market. To implement this strategy successfully southern
business technologies need needs to take the help of marketing consultant. Diversification can be
beneficial when the organization has a strong supply chain management. For instance –
outsourcing from IBM.
Therefore, southern business technologies should adopt the market development
strategies, where the organization can develop a new market which helps it to expands its
business to the different countries across the world. This strategy involves the very low risk
because in this strategy the service is known to the customers (Keehan, and et.al., 2015). If the
customers want to check the efficiency of services, they can easily examine, with the help of
customers feedback.
P3. Various sources of funding with benefits and drawbacks
Following are the sources of the funding available for the southern business technologies.
Bank loan
Loan from the bank is the good source of funding in an organization. Loan provided by
the bank is the safest and easiest way to raise the finance. Bank sanction the loan on the basis of
security and some legal document (Krueckeberg, 2018). Before sanctioning of the loan bank do
the strict analysis of the company record and the future plan and identify that organization is able
payback the borrowed amount or not.
Benefits
 Bank does not take the ownership of the organization.
 Lenders became obligation free after the payoff of debt.
 Interest rate do not vary until your payoff all your debt.
Drawbacks
 For sanctioning the loan, the organization should have some substantial records.
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 There is a little possibility to seizure of personal assets.
 Due to high rates of interest organization can't get the enough funding to meet business
needs.
Overdrafts
It is a short time credit facility provided to the organization by the bank to withdraw the
amount more than its balance. On providing these services bank charges the interest up-to certain
amount that have been withdrawn by the client. Even if there is less balance in account, one can
easily take the fund. It is the best facility because if the organization do not have funds for the
activity it can take from the bank and do not stop the working.
Benefits
 Less balance or no balance cannot stop the working of an organization.
 Payment can be done easily and there is less paperwork.
Drawbacks
 Overdraft facility have high interest rate as compared with loan.
 The process of reduction of limit is there.
 If the organization cannot able to pay the withdrawn amount, bank seize the assets of
your company.
Crowd funding
Crowdfunding is the little amount of capital from the common individual to finance new
business (Pelham, 2017). It increases the connectivity with the large number of people and
creates the vast network through various social media platforms and different crowdfunding
websites.
Benefits
 It does not take any beforehand fees and the fastest way to increase the funds.
 Through the large connectivity with the investors, provides feedback and guidance for
further working
 With the help of process of finance investors become the loyal customers through process
of finance.
Drawbacks
 Once the organization reaches its target, the financed amount will automatically return to
the investors
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 The process to raise the fund is done by the websites and if the business is not registered
under the patent act anyone can steal the concept.
 Fear of the damage of reputation if the project will not success.
Peer to peer lending
This is a method of lending the money from your peers or colleague for short span. In
peer to peer lending methods funds are raised without the help of any financial institution or debt
financing organization. This method is known as the fastest way to increase the source of
finance. This method does not need the involvement of third person but includes more time high
risk and efforts.
Benefits
 Organization has the choice of lending by whom it wants to take.
 Risk diversification process.
Drawbacks
 The money is at high risk for the person who is giving amount.
 Constraint of time in peer to peer lending
Angel investors
These are the person who resides inside the organization and invest money. Angel
investors are those members which investment the little amount of capital in the business
(McKenzie, 2017). Angel investors can be the shareholders, or any employees etc. in an
organization. Angel investors are those which provide funding to the organization easily.
Benefits
 They do not need any collateral security.
 There is no need of payment.
Drawbacks
 The process of finding the angel investors is time consuming.
 Part of shares must be given to the angel investors.
Therefore, for the southern business technologies bank loan and angel investors are the
best way to increase the sources of finance. As they are easy and requires fewer efforts.
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P.4. Provide the business plan for the organizations
Southern business technologies are going to introduce new product and service. To
expand its business, the organization has decided for the development of product. They decided
to come up with the new refresh plan named Si-op I.e services in package. This package consists
of broadband with 5g speed, DTH, free messaging and lifetime calling.
Overview
Southern business technologies are the telecom industry providing all telecommunication
services to the customer. The company was formed in 1986. The organization deals with telecom
products and services.
Vision
The vision of southern business technologies is to serve dependable, safe and good
quality network telecommunication services 24*7 hours at every place for the socio economic
development. Further more the vision of the company is to cut the competition from the market
for that southern business technologies will think about to do merger with all the small
companies so that they can over come the competition.
They have also planned to move their business in entire world with high speed internet
and environment safe.
Mission
 The mission of the southern business technologies is to serve the vast coverage especially
in rural areas
 To serve extensive knowledge in different areas through multiplication of economical,
and good quality broad band services.
 To make the city global hub for telecom equipment producing
 To generate the career opportunity for the youth.
Marketing plan
Marketing plan is the part of over all business plan. To make the marketing strategy
strong it is very important for southern business technologies to have efficient marketing plan.
Marketing plan is a blue print of the covers the business advertising and the efforts for the
upcoming year. It includes the information about the current market position, target market
description etc. it is consisted of more historical data, future prediction of the activities which are
going to be implemented. It is a best way to do the working efficiently. As it provides the
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technique which helps southern business technologies to utilize all the sources efficiently with
the optimum use.. it can also used for identifying the strategies used for the further proceedings
in the organizations. For marketing plan southern business technologies has adopted 4Ps I.e.
product price place and promotion.
Product
The word consists of both product and services that is going to meet the customers’ needs
and wants. Southern business technologies is one the leading organization in the United
Kingdom. The firm provides various types of telecom assets and internet facility to its users
across the country. The different product that company will go to offer in its new plan are Si-op
landlines, PCO , Telephone facility and other value other services. The leading organization have
more than 15 million customers across the world who are using the landlines and other services
provided by the southern business technologies. Currently the firm is focusing on improving the
services provides by it by increasing the range of tower closed in one area. This product strategy
will help the organization in enhancing the product and services with the innovation.
Price
The pricing strategy focuses on very low charges. The organization has the pricing
strategy very cheap. Southern business technologies are providing facility of various services in
one package in comparatively low rate than the competitor. The firm do not take the installation
charges. The organization also provide specific offers to its customers.
Place
The southern business technologies are the oldest telecom industries which has
constructed its network across the country (Tian, and Li 2017). For the regular functioning it has
opened the offices with 30 circles to keeps an eye on functioning of the organization. To carry
out with customer problem southern business technologies has open various call centers so that
customer can file complain and get appropriate solution.
Promotions
There are various modes of the promotion that southern business technologies is using
like TV, media, prints, hoardings etc for advertisements (Kono, 2016). The organization has
many customers, and it does promotion in very limited way. It keeps on changing its logo to
attract the customer and to deal with the competitor. With fast moving digital era it has also
started social media platform with few promos.
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SWOT analysis
Strengths  Southern business technologies have higher brand visibility
 Southern business technologies introduce the innovative services
like, online recharge, bill payments.
 The selling capacity of Southern business technologies selling is 20
million per annum.
 Southern business technologies have large number of subscriber.
Weakness  An allegation from users had to face by Southern business
technologies.
 Market share is limited from other telecom players.
Opportunities  Cellular market of Southern business technologies can expand.
 Due to the strong presence, in the market latest and cheap cost
technology can be used (Pugalis and et.al., 2016).
Threats  New telecom player can enter with the low rates.
 Competitor can have used the portability to attract the customers.
Organizational plan
While making the organizational plan, southern business technologies has come up with
the recruitment process. The organization has taken the help of human resources' management.
With the help of HRM team they have opened the vacancies for required post where they have
gone for various process of recruitment like examining of resume, interview and selection
procedure (Krueckeberg, 2018). After the final selection they have organized the training and
development program for the new employees.
For tackling the marketing department, training has provided to newly selected employees under
the expert supervision of heads of marketing department. Same process has been followed with
other departments as well.
Jobs Descriptions
Director These are the agents of company appointed by the shareholders to handle
the day to day affairs of the company at top level.
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