Business Growth Plan: Southern Business Technologies Analysis Report

This report provides a comprehensive analysis of Southern Business Technologies' growth strategies, focusing on key considerations, funding sources, and business planning. The report begins with a VRIO analysis and PESTLE analysis to evaluate the company's internal resources and external environment. It then explores growth opportunities using the Ansoff matrix, considering market penetration, market development, product development, and diversification strategies. The report also delves into potential funding sources, including personal resources, family and friends, and asset finance, discussing the benefits and drawbacks of each. Furthermore, it outlines a recommended strategic direction for the company, emphasizing a cost leadership strategy. Finally, the report touches upon exit or succession options for the small business context. The report aims to provide insights into strategic decision-making for sustainable business growth.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Key consideration for growth option (LO 1)...............................................................................1
Key considerations for evaluate growth opportunities and justify it in organisational context..1
Opportunities for growth with applying Ansoff matrix.........................................................3
2. Sources of funds and their implications to the business (LO 2)..................................................4
Potential sources of funding available to businesses and discuss benefits and drawbacks of
each source.............................................................................................................................4
3. Business plan (LO 3)...................................................................................................................6
Design business plan for growth which includes financial information and strategic objectives
................................................................................................................................................6
4. Existing strategy (LO 4).............................................................................................................10
Exit or succession option for small business and define benefit and drawback of each option
..............................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
In the business planning can be defined as the initial consideration which taken to
determine systematic development of operations and functions. In this way, long term goals and
objectives easily accomplish to increase profits and revenue. Better values also successfully
develop that helps to promote activities in larger area of market. Furthermore, planning also
assists to the enterprise to avoid certain random activities (Rahman, Taghizadeh and Ahmad,
2015).
Present study based on Southern Business Technologies which deals in telecom industry
and provide different types of communication services as well. They successfully develop
operations and functions to regulate desired level of outcomes to attract several customers in the
business. The vision statement of Southern Business Technologies is “To become the best and
leading global company that provides technological solutions”. Its mission statement is “To
improve the sales by 20% in next 10 years.” (Southern Business Technologies Ltd, 2019).
For gaining insight information of the present report, it covers growth opportunities that
are successfully developed with key consideration in the enterprise. Furthermore, it includes
potential sources of funding that is available to business and discuss benefits and drawbacks of
these sources. Moreover, it demonstrates business plan for growth that involve financial
information and strategic objectives. At last, it discusses about exit or succession option that is
available for the business.
1. Key consideration for growth option (LO 1)
VRIO analysis of for Southern Business Technologies.
Resources Value Rare Imitation Organization Competitive
advantage
Opportunities
within the E-
commerce space
utilising the
current IT
capabilities.
Yes No, many
competitors
are investing
in IT to enter
the e-
commerce.
The analytics
and AI can be
difficult to
imitate.
It is just the
initiation for
the company.
It can provide
sustainable
competitive
advantage.
Brand awareness Yes Yes, Southern No The company Sustainable
1

business
technologies
is known to
be a leading
brand in the
industry.
has used its
leading brand
in different
segments
competitive
advantage
Local and global
presence
Yes Yes Possible to be
imitated by
competitors
Yes, it is one
of the most
diversified
organisations
in the
industry.
Providing
strong
competitive
advantage
Access to cheap
capital
Yes No Can be
imitated
Not been
totally
exploited.
Not
significant in
creating
competitive
advantage
PESTLE analysis Political factors: Political factors consist major risk for Southern Business Technologies.
This is because, there is one of the traditional risks for the industry which is related with
regulations, network licensing, etc. These issues affected to network operators and effect
has been felt by equipments and service providers (Medudula, Sagar and Gandhi, 2016). Economic factors: Role of economic factors is just important in context of telecom
industry. In this regard, recession create major impact on Southern Business
Technologies. Economic recession mainly impact on the selected enterprise. Social factors: Social factors create deep influence on industry and its profitability.
Connectivity also successfully developed which includes work and entertainment. Hence,
use of internet based services continuously grown so that social media positively impact
on Southern Business Technologies to influence customers. Modern generation
2

connectivity helps to the chosen business which is favourable for them (Saha, Islam and
Hoque, 2016). Technological factors: In Southern Business Technologies, technological factors play
very important role because it influences deeply. It is central point of the success of the
selected enterprise. It is core of productivity which helps to gain the latest trends and
grow positively with fast connection. In order to gain competitive advantages, it
influences positively that is important for generate high range of benefits at workplace
(Saha, Islam and Hoque, 2016). Legal factors: Globally legal compliance increase risks in Southern Business
Technologies. This is because, manager of the chosen business need to focus on laws that
are essential to complied with (Frue, 2016).
 Environmental factors: Environmental factors consist protection of business
environment with determine certain rules and regulations. With this aspect, level of e-
waste generated with services and equipments providers. Hence, industry is focusing on
waste management with minimising environmental footprint (Binsfeld, Whalley and
Pugalis, 2016). Southern Business Technologies focuses on recycle their device so that it
helps to focus on reducing waste in the business environment.
Key considerations for evaluate growth opportunities and justify it in organisational context
Porter generic strategy used to determine direction of the enterprise. In this consideration,
4 strategies can be successfully implemented in Southern Business Technologies. With respect to
beat with competition, it is important to choose one of the best from it: Cost leadership: In order to target in large market, it is essential to offer the lowest price
which is opt to keep low cost. Therefore, it has been ensured that larger market share with
average price is one of the important considerations which helps to keep low cost for
Southern Business Technologies. In this way, substantial investment for different
resources is needed at workplace such as financial and human resource (Medudula, Sagar
and Gandhi, 2016). Differentiation: Differentiation determined target in broad market for high demand of
product. In this way, products and services considered unique features to make exclusive
as possible (Medudula, Sagar and Gandhi, 2016). More attractive than comparable
products offered with competition. In Southern Business Technologies, differentiation
3

considered with innovation, process efficiency, use of technology, etc. Furthermore, they
need to concentrate on marketing and R&D to increase benefits of unique services. Cost focus: When target market exists in little competition, focused market offer the
lowest the best possible price. In this strategy, Southern Business Technologies need to
choose target to understand dynamics of the market. Hence, cost remains low for services
of the chosen business (Oughton, Frias and Cleevely, 2018). Therefore, string branding
and marking skills helps to the company to gain competitive advantages.
 Differentiation focus: When target market is in little competition and focused market,
products and services developed with unique features. Therefore, this strategy includes
strong brand loyalty of customers that is important to ensure that Southern Business
Technologies determined unique products to stay ahead with competition.
Recommended strategic direction for the company
In order to ensure future success in the highly competitive market Southern Business
Technologies can implement the most favourable cost leadership strategy. The company can
provide low price services by effective supply chain management and use of resources. The
services provided by the company is already utilised by huge number of customers in many
areas. Therefore, it can lower its prices by minimising cost to become a low -cost leader in the
Telecom industry.
Opportunities for growth with application of Ansoff matrix
In order to determine successful opportunity in the business, Ansoff matrix focused
which is present for potential products and markets. In order to considering ways to grow
existing and new products or services of Southern Business Technologies, there are following
possible product market combination successfully develop: Market penetration: In this strategy, firm seeks to achieve growth with existing products
in current market segment to enhance market share. With respect to determine
opportunities for growth, it is the least risky so that firm's existing resources and
capabilities. In growing areas, market share maintain in resultant for growth. As a result,
opportunities increases to reach capacity limits. In Southern Business Technologies,
existing services successfully develop with less price that assists to increase positive
results in it (Mustafa and Waheed, 2016).
4

 Market development: Market development is one of the best aspect that helps to make
growth in business with targeting existing products into new market. In this regard,
additional market segment develop by Southern Business Technologies to attract more
people (Bhatti, Abareshi and Pittayachawan, 2016). Therefore, they can establish their
operations in new areas such as America, Singapore, China, etc. Product development: Product development strategy seeks with development of new
products that targeted in existing market segments. Therefore, it helps to lead with
innovative functions and operations to target specific customers (Ansoff matrix with
different growth strategies, 2018). For instance, Southern Business Technologies develop
new product that is targeted to existing customers with increase market share. For
instance in the chosen business, new services such as wireless services successfully
implemented to increase market share.
 Diversification: Diversification is the most risky from all these strategies so that it
requires both product and market development outside the core competencies of the
enterprise (Saha, Islam and Hoque, 2016). In this consideration, it can be stated that
diversification is reasonable choice for Southern Business Technologies when there is
high risk compensated to gain more return.
2. Sources of funds and their implications to the business (LO 2)
Potential sources of funding available to businesses and discuss benefits and drawbacks of each
source
Potential source of funding available in front of the business that helps to run its day to
day activities. In this regard, it can be stated that business owners can access appropriate amount
of fund to grow and operate in successful manner. In Southern Business Technologies, proper
management of working capital helps to better control and maximise strong relationship by
seeking extensive terms (Medudula, Sagar and Gandhi, 2016). Different sources of funding that
are available in the enterprise are as follows: Personal resources: It is traditional avenue of funding that being more difficult to access
business owners looking to make more growth in the business. It includes, cash savings,
using personal credit cards, mortgages on residential properties. Main advantage of this
source to Southern Business Technologies is more immediately accessible with using
5

personal resources that is cheaper source of finance. However, if business fail personal
resources could lose which are taken from home ad personal possession (Medudula,
Sagar and Gandhi, 2016). Family and friends: Sometimes, potential resources can be access from family and
friends. Therefore, with the help of personal network every organisation can get more
success with source of finance. With the help of seeking loan and offering pay an interest
rate higher than offer, return for investment will be successfully gained in Southern
Business Technologies. Advantage of this source in the business is that from family and
friends finance can be easily raising which is relatively easy to fulfil personal trust as
well (Satyanarayana, Rao and Naidu, 2017). Business plan is also available to increase
opportunity at workplace. However, there is danger in raising fund because nature of the
relationship will change from business transaction. Asset finance: Asset finance is the funding source which is generally based on concept of
either preserving cash or speeding to access it. It also consists invoice discounting,
factoring and funding of assets purchase in Southern Business Technologies. Main
advantage of this method is that source of finance is available to gain more recognition.
As a result, it represents significant advantages for more profitability and effectiveness.
On the other hand, it creates disadvantage to the chosen business because there are
several new players entering into the market to allow businesses to raise finance against
selected invoice (Six sources of equity finance, 2018). Venture capital: Venture capital is also known as private equity finance. In this context,
venture capitalists look to invest larger money in return for equity. It is one of the often
used for high growth businesses destined in stock market. Advantage of this tool to the
selected business is that long term funding in exchange for shares of its equity
successfully developed. High growth potential advantages successfully gained to expand
and develop new products in Southern Business Technologies. However, there is one
disadvantage that is business need to secure them when venture capital is used as source
of finance (Trappey and Trappey, 2017).
 Crowdfunding: Crowdfunding is one of the important source of venture capital where
number of people invest, lend and contribute small amount of money in business or idea.
This money generally combined that helps to reach funding goals. Each individual backs
6

with idea in Southern Business Technologies to receive reward or financial gain in return.
This method generally take place with website so that online payment will be
successfully manage to offer different services (Binsfeld, Whalley and Pugalis, 2016).
Advantage to considered this source of finance in the business is that benefits and risks
can be easily examined which give advice on this type of finance. It is one of the right for
the selected enterprise. However, main disadvantage is that more information and support
is needed for implementation of these aspects at workplace.
3. Business plan (LO 3)
Design business plan for growth which includes financial information and strategic objectives
In order to design business plan for growth in Southern Business Technologies, growth
can be successfully develop with ascertained financial information and strategic objectives.
Different steps are design as follows: Executive summary: In the present business plan of Southern Business Technologies, it
can be stated that different kinds of services successfully provided in the business. In this
regard, wired telecommunication activities considered by the enterprise. Furthermore,
description of different services continuously promoted within the organisation with
using innovative and new product development. Moreover, it regulates different activities
that helps to compete with different enterprises (Korchagin, Korneeva and Nikitina,
2015). Description of the business: Southern Business Technologies is communication sector
business which deals in telecom industry. It is small size of business which demonstrate
company's line of business and provide communication services as well. It is
incorporated from 15th November 2001 with registered operations and functions. The
provision of communication services successfully developed with call charged,
broadband and mobile solution. Mission and vision statement of the organisation: Southern Business Technologies has
vision to attract several numbers of customers and develop their operations as large
aspect in the enterprise (Rahman, Taghizadeh and Ahmad, 2015). With this regard, they
have determined mission to implement wireless services in all over the areas where
7

company is operating. As a result, it helps to deal in innovative functions and operations
in systematic way. Description of services: The chosen business continuously expanded their operations and
functions with provision of communication services. With this consideration, it can be
stated that call charges, broadband, mobile solution, etc. (Pradhan, Arvin and Bahmani,
2016). In addition to this, Southern Business Technologies deals in supply, installation
and services of telephone systems which would be beneficial to incorporate different
kinds of telecommunication activities. Analysis of industry: Telecom industry consist different kinds of operations and
functions in telecommunication sector of UK. In this consideration, different businesses
operate to provide communication service provider that is more precisely
telecommunication service provider. It determined telephony and data communication
access in the market to create successful mobile network. UK is one of the largest
telecommunication market in entire Europe. With several global brand, this industry
penetrate market on extreme level to have a stronghold in the market. For example,
Southern Business Technologies, Lycamobile, GiffGaff, etc. Strong technology
consideration also assists to deal in larger areas of the market to serve better customers
(Stadnicka and Ratnayake, 2017). Competitors analysis: As previous analysis, it can be stated that in telecom industry has
wide competition in the UK market. With this regard, different businesses compete with
Southern Business Technologies such as TXO systems, Talk Talk group, Aggregated
telecom, etc. In order to increase profitability and considered effective operations in
competition, the chosen business need to focus on unique characteristics such as wireless
services to attract several people in the business. Human resource: Southern Business Technologies need to focus on human resources
who are skilled and pursue with more efficient operations and functions in
telecommunication sector of UK. They determine, recruitment, selection, performance
appraisal, etc. to increase revenue and profitability at workplace of the chosen business. Marketing activities: Main objectives of the selected business is to provide different
kinds of wireless services in all over the market. As a result, they need to concentrate on
promotion of these services to deal in large consideration (Binsfeld, Whalley and Pugalis,
8

2016). Social media is one of the important and useful tool that helps to attain desired
level of performances with different marketing activities in the business. On the basis of
innovative functions and operations, it can be stated that promotional activities
successfully implemented at workplace. Operational activities: Operational activities in the chosen business successfully develop
to attain overall goals and objectives for telecom operators which entails to improve
efficiency and effectiveness of network. In this regard, proper customer care and sales
operations implemented in improvement of capability building (Trappey and Trappey,
2017). For instance, procurement or business support functions. It is one of the important
process that is generally used to ensure maximum availability of telecom services. These
operations help to manage provision issues, network availability, etc. Financing activities: In order to accomplish goals and objectives, it can be stated that
financing activities includes setting of price, assessment of cost, etc. In this process,
review of activities implemented that helps to perform overall goals and ascertained with
future performances as well (Summanen and Pollitt, 2018). In Southern Business
Technologies, financing activities helps to increase credit worth to trade internationally.
As a result, amount must be paid for products and services which helps to deliver wired
telecommunication activities.
 SWOT analysis:
Strength Weakness
 Southern Business Technologies serve
for excellent customer services.
 The chosen business have strong sales
team which boost resource capabilities
in the industry.
 They are possess capabilities to deal
with competitive advantages.
 However, Southern Business
Technologies not deals in wireless
services.
 The company has very slow services
which is disadvantage of the enterprise
(Sharma, Medudula and Patro, 2015).
 Organisational structure is only
comparable with present business
model so that there is limiting to
expand operations.
9