Southern Business Technology: Planning for Business Growth Report

This report focuses on planning for the growth of Southern Business Technology, a telecommunications company. It begins with an introduction to the importance of growth planning for businesses, particularly SMEs, and outlines the company's background. The report then delves into assessing growth opportunities using Porter's generic strategies (cost leadership, differentiation, and focus) and PESTEL analysis (political, economic, social, technological, legal, and environmental factors). The Ansoff matrix is applied to explore market penetration, market development, product development, and diversification strategies for future growth. The report also examines various sources of funding, including bank loans, peer-to-peer lending, crowdfunding, owner's funds, and borrowed funds, and their implications. Finally, the report touches upon business plan elements and assesses exit or succession options for small businesses, discussing their benefits and drawbacks.

Planning For Growth

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Main concern for assessing growth opportunities.......................................................................3
Opportunities for growth by adopting Ansoff growth matrix.....................................................5
various sources of funds and their implication to business.........................................................6
Business plan for growth of business..........................................................................................7
Assess exit or succession options for a small business explaining the benefits and drawbacks of
each option..................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journal................................................................................................................12

INTRODUCTION
Planning for growth is considered as a process in which business make effective plan in
order to achieve goals as well as objective in stipulated period of time. In present context it is
analysed that small as well as medium business is necessary for success as well as growth of
economy and also it offer large platform for bringing innovation in order to increase whole
performance of Organisation in an effective manner. This report is carried upon Southern
Business Technology. It is determined as a company which operate their business in
telecommunication industry and it is founded in the year of 1965. This report discuss about the
main factor for assessing growth as well as opportunity of Organisation in an effective manner.
In addition to this Ansoff matrix is used for strategic planning for future growth of the company.
Furthermore it is necessary to assess different sources of fund to achieve leading position at
marketplace. And it is necessary to improve the strategic plan and identify different method
through which small business can determine succession as well as exit option (Aganbegyan,
2019).
Main concern for assessing growth opportunities
It is necessary for every organisation to make effective plan in order to achieve goal as
well as objective in stipulated period of time. Southern Business Technology offer a variety of
communication system like mobile services, super fast internet as well as telephone and many
more. Therefore for planning in an effective manner the company adopt Porter generic strategy
as well as PESTEL analysis in order to make effective strategy which is going to be mentioned
below:
Porters Generic Strategy: Porter generic strategy is used by organisation that helps
them in knowing the direction in which they operate their different activities and function of
business organisation in an effective manner. There are four strategies which are given by
Michael Porter in order to gain competitive advantage of rival firm at Marketplace. Therefore the
four tactics which provide direction to southern business technology that is given below:
Cost Leadership: In this strategy the business organisation focuses on providing superior
quality product at lower cost in order to achieve more and more profit during the period of time.
There is wide variety of communication services which is provided by southern business
technology such as super fast internet, mobile phone services as well as many more. Therefore

through cost leadership strategy the company offer superior quality products and services at
relatively low cost to its customer in order to achieve favourable outcomes.
Differentiation: It is necessary for company to offer unique as well as innovative product
and services to its customer in order to target large number of customer at Marketplace. Southern
Business Technology focuses on adopting a specific strategy for achieving success and brings
innovation in order to provide superior quality product and services to its customer in order to
gain competitive advantage of rival firm at Marketplace. They focus on providing innovative as
well as unique product and services to its customer at affordable cost in order to retain them for a
longer period of time (Bae, 2017).
Focus on cost: In this tactics, the company target niche market and offer goods and services
at relatively low price. It helps the Southern Business Technology to provide the product and
services as per the need of customer at affordable cost and achieve competitive benefits over
rival firm during the period of time.
Differentiation focus: This is strategy is connected to target market and emphasized on
unique as well as innovative product as well as services. It helps them in building a strong brand
image and reputation of company in front of customer at market place. In context of Southern
Business Technology, they emphasized on providing unique as well is innovative product in
order to gain competitive benefits.
From the above mentioned strategy it has been analysed that Southern Business
Technology uses differentiation strategy in order to offer unique product and services to its
customer in London Market (Rydin and Tate, 2016).
PESTLE Analysis: PESTEL analysis is used for assessing external environmental factor
which imposes direct impact on success as well as growth of organisation which is going to be
mentioned below:
Political: Due to frequently change in the government policy it is not necessary for
organisation to change their policies, rules as well as regulation of company as per the
government that results in decreasing productivity within business organisation.
Economical: Due to stability in inflation rate it helps Southern Business Technology in
buying innovative software at low cost which attract the customer and manage the growth of
business organisation

Social: Furthermore due to change in the lifestyle, taste, and preferences as well as
culture of market frequently. Therefore it is difficult for Southern Business Technology to
change their policies as per the need and requirement of customer. It imposes negative influences
on productivity and profitability of company in future time period.
Technological: The Southern Business Technology focuses on implementing advanced
technology in order to provide innovative software to its customer for achieving goal as well as
objective in stipulated period of time. They satisfy the need and wants of customer which helps
them in achieving leading position across the world.
Legal: Southern Business Technology focuses on adopting employment law and they
provide equal wages to its staff that help in increasing growth as well as success of organisation.
Environmental: The company focuses on protecting environment so that they introduce
innovative software in order to protect the environment and eliminate waste is in order to
manage productivity at market place.
Opportunities for growth by adopting Ansoff growth matrix
Ansoff matrix is adopted by company to provide strategic direction for future success as
well as growth of the company. In context of Southern Business Technology there is various
strategies which is going to be mentioned below:
Market Penetration: In this is strategy the company emphasize on selling the available
product in existing market. The primal purpose of this tactics is to boost present market share of
goods and services. For this purpose it is necessary to make integration of different competitive
pricing strategy, publicity, personal selling as well as sales promotion and so on (Capello and
Nijkamp, 2019).
Market Development: In this strategy the company focuses on providing the existing
product in the innovative market. It is considered as a risky strategy in which they target the
customer in new market. For this purpose they adopt different methods like packaging,
geographical market new distribution channel as well as many more.
Product Development: In product development strategy the company focuses on
providing innovative product in existing market. The manager of company makes effective
research in order to identify the need and want of customer. And they want bring innovative
product in order to satisfy customer at Marketplace

Diversification: Diversification strategy is very risky stage because herein the company
focuses on providing new product in the new market place. Therefore the company can take high
risk in order to gain favourable outcome in future period of time.
From the above mentioned strategy it has been identified that Southern Business
Technology adopts diversification strategy in order to provide innovative product in new market.
various sources of funds and their implication to business
It is necessary for organisation to analyse the different source of fund in order to operate
different activity and function of Organisation in an effective manner. For introducing new start-
up or business it is necessary for organisation to have finance as per the size as well as type of
organisation. The business cannot start their operation and activity in an effective manner
without money. In present context of UK market it is analysed that SME plays an important role
for increasing success as well as growth of economy during the period of time. Therefore
Southern Business Technology need source of finance in order to operate the different activity
and function in an appropriate manner and gain profit in future period of time. There is different
method which is adopted by Southern Business Technology in order to run their business which
is going to be mentioned below:
Bank Loan: Bank loan is determined as the basic form of source of fund through which
the small business takes loan. In addition to this it is necessary for organisation to provide
security in order to take loan in the form of guarantee provided by Enterprise (Dickey, 2018).
This kind of loan is taking for investment in fixed assets such as land and building, plant and
machinery. For this purpose, the bank charges less interest rate it and enterprise operates their
activity and function of Organisation in an effective manner. Apart from this, there are various
advantages and limitation of bank loan which is given below:
Strengths: The main advantage of the bank loan is they charge less interest rate in order
to provide huge amount of fund to new enterprise as a loan. In this method the investor can
follow evolution which help firm in boosting its brand through various networks.
Weaknesses: It is necessary for taking bank loan is to follow several terms as well as
condition can be considered as a main disadvantage for the company. For taking bank loan it is
necessary for company to provide security such as their property in order to taking loan can be
considered as a major weakness for company of organisation get failed.

Peer to peer lending: In this source of fund the individual person take loan from the other
financial institution as well as intermediary. It is considered as taking money without any formal
institution as well as intermediary. Therefore there are various website which is used for making
connection between the investor as well as borrower. There is some favourable and adverse
impact of peers to peer lending which is going to be mentioned below:
Advantages: The main advantage of peer to peer lending is that they provide loan with
less rate of interest because of having too much competition at market place.
Disadvantages: The main disadvantage of this peer to peer lending is that the government
does not provide any kind of protection to lender in term of default of borrower.
Crowd funding is the method that help in raising money for an individual person or
business organisation by gathering the different donation from friend’s families as well as any
other business and many more. It increasing awareness regarding crowd funding that is
beneficial for business organisation.
Owner’s fund it signifies finance which is contributed by the owner of organisation as well as
the profit is reinvest in organisation and also help in raising the fund through equity share.
Borrow Fund Organisation borrow the fund and taking loan from the various financial
institution and these kind of finance is taken from the different sources such as from financial
institution debentures and many more.
From the above mentioned different source of fund the Southern Business Technology adopt
bank loan in order to operate their business activity and function in an effective manner. It is
considered as a cheap as well as cost effective method and provides favourable outcomes in
future period of time. Therefore they focus on improving the whole performance level in order to
achieve competitive benefits over rival firm at Marketplace.
TASK 3
P4 Business plan for growth of business
A business plan is considered as a written document which helps the organisation in order
to operate different activity and function in an effective manner (Fabos, 2019). It is discussed
about how the business plan comply the vision, mission as well as objective or financial
information of the organisation. Southern Business Technology focuses on making effective
business plan in order to achieve competitive benefit over rival firm at Marketplace. It also helps

in attracting large number of customer and shareholder during the period of time which is going
to be mentioned:
Vision: The main vision of Southern business Technology is to achieve leading position
across the world.
Mission: The mission of the organisation is to provide innovative as well as high quality
product and services to its customer in order to satisfy them
Strategic goals: The goal of the organisation is introduce innovative product for boosting
infrastructure of Organisation in London Market in an effective manner. It increases brand image
as well as level of performance of company in front of customer at market place. The other
objective is to increase the profit by 40% in upcoming 5 years. Furthermore Southern Business
Technology focuses on spreading their market across the world in order to gain profit in future
period of time. Therefore their focus is on operating the business activity and function in an
effective manner.
Objectives: The main objective of organisation is to boost the sales by 30% by launching
innovative product in upcoming time period. It helps in increasing the current share of market by
10% for promoting the strategy in relation to promotion of business organisation.
Company Summary: Southern Business Technology. It is determined as a company which
operate their business in telecommunication industry and it is founded in the year of 1965.
Products: The Company focuses on providing the telecommunication services to its
customers for satisfying them. They also make appropriate research for analysing the strategy
which is made by the competitors and also they focus is on extensive research for gaining
competitive advantage.
Financial Information: It is necessary for organisation to make effective business plan in
order to assess the need of Finance in future period of time. The success as well as growth of
organisation depend upon the business plan because it help in organised effective marketing
research in order to operate their different function as well as activities of Organisation in an
effective manner. Therefore they can run their business by using various methods like internal as
well as external to achieve financial goal (Jafarnezhad, Salmanmahiny and Sakieh, 2016).

Recommendation
The company focuses on adopting innovative technology for providing innovative services
to its user in relation to telecommunication services. It helps them in save time and efforts which
is made by the organisation during the particular phase of time period. It assists in providing
High Quality Services to its customer for retaining them for a longer period of time.
TASK 4
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option
Every business organisation go through favourable as well as adverse impact decreases the
productivity as well as profitability in future period of time. In present context there are various
businesses who want to exit to their activity and function in operating their Organisation in any
manner and it describe their success as well as failure and in other case owner grip back from the
condition (Lee, 2016).Therefore in order to survive in competitive business environment it is
necessary for organisation to provide superior quality of product at affordable cost as per the
needs and wants of customer. It helps them in increasing success as well as both of organisations
in future period of time and also aid assistance in achieving competitive benefits over rival firm
at marketplace. In reference of Southern Business Technology there are various ways which
displays the capability as well as competence in handling several activity and operation of
business organisation in effective manner. Therefore there is different method which is used by
the company in relation to existing strategy that is going to be mentioned beneath:
Voluntary winding up: The voluntary winding up is considered as a process in which
company close their activity and operation of organisation. They focus on distributing their
assets to its creditor and the remaining amount is given to its shareholder. This is divided into
two categories voluntary as well as compulsory winding. The difference among these two are
voluntary winding up does not take interference of court in any activity of business. In case of
compulsory winding up all the process related to closing the business is determined by Court.
Therefore there are some benefits as well as limitation of voluntary winding up which is going to
be mentioned:
Advantages Disadvantages

The main advantage of voluntary winding up is
there is no involvement of law and regulations
in order to close the business.
The main disadvantage of voluntary winding
up is to there is no assets through which it is
possible for organisation to start innovative
business. All assets available will be sales off
by offering dividend to its creditor.
Merger and Acquisition: The merger and acquisition are considered as the integration of
business organisation in which two organisations perform their function as a one which is
determined as a merger of company (MacDonald, 2018). Whereas, in case of acquisition the firm
taken over by another company. The Merger integrates to organisation to operate their business
as a one in order to increase profitability in future period of time. In term of acquisition, the
small organisation will take over by the larger one. Moreover there is different kind of benefits
as well as drawbacks which is going to be mentioned below:
Advantages Disadvantages
The main advantage of merger and acquisition
is it helps the small firm in order adopt
innovative technology for providing unique
product and services to its customers and also
help in gaining competitive advantage of rival
firm at Marketplace.
If the correct administration of alteration as
well as execution of merger and acquisition
getting delayed thus it result in enhancing the
cost can be considered as a major disadvantage
for the company
Integration: When the organisation carries their activity and businesses by Merger it is
easy to describe the nature as well as kind of integration depend upon the function of each
company as well as also describe their operations in supply chain of industry. Furthermore there
is different kind of integration such as forward, vertical, backward as well as horizontal which
imposes direct impact on profitability as well as profit productivity in future period of time.
Moreover, the main goal of business integration is to achieve the objective in a stipulated period
of time. In addition to this there are various advantages and drawbacks of integration which is
going to be mentioned below:

Advantages Disadvantages
The retail chain conducting effective research
in order to collect the information through
integration which increases productivity level
in future period of time is considered as the
main advantage for company.
 There are certain flexibility created in
integration is that if the two companies
integrate then it is not possible for firm to
describe the brand to its customer in an
effective manner.
From the above mentioned different method, it has been analysed that merger and
acquisition provide profit as well as productivity of Southern Business Technology. It also helps
them in increasing sales as well as achieving competitive benefits of rival firm at Marketplace
(Price and Nelson, 2018).
CONCLUSION
On the basis of above mentioned report, it has been analysed that it is necessary for
organisation to make effective planning in order to achieve goal as well is objective in stipulated
period of time. In present context it is analysed that small as well as medium business is
necessary for success as well as growth of economy and also it offer large platform for bringing
innovation in order to increase whole performance of Organisation in an effective manner. In
addition to this there are various elements which provide guidance to business organisation to
grab opportunity as well as minimise threat. Along with this Ansoff matrix is adopted by
organisation to provide strategic direction for future growth of the company. There are various
source of finance used by the company such as bank loan as well as peers to peers lending and
many more in order to accomplish objective stipulated period of time. At last it is necessary to
develop effective business plan for increasing the performance level of company in future period
of time.