Growth Strategies for Southern Business Technologies Report

This report provides a comprehensive analysis of Southern Business Technologies, focusing on its growth potential and strategic planning. It begins by identifying key considerations for evaluating growth opportunities, including financial feasibility, risk assessment, market research, and competitive advantages, alongside PESTLE and SWOT analyses. The report then applies the Ansoff growth matrix to evaluate expansion strategies like market penetration, product development, and diversification. It delves into the implications of analytical frameworks for competitive advantage, examining target markets, competition, and consumer benefits. Furthermore, the report evaluates specific options and pathways for growth, including adaptation and mitigation strategies. It also explores potential funding sources for Southern Business Technologies, justifying the adoption of appropriate funding models and critically evaluating different options. The report culminates in developing a business plan for scaling up objectives and assessing exit or succession options for the small business, providing recommendations for succession and justifying these recommendations. The report utilizes various models and matrices to develop suitable plans for effective business opportunities.

PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Key consideration for growth opportunities evaluation for Southern Business Technologies
................................................................................................................................................1
P2 Application of Ansoff growth matrix to evaluate growth opportunities...........................4
M1 Implication of analytical framework for competitive advantage.....................................6
D1 Evaluation of specific options and pathways for growth.................................................7
LO2..................................................................................................................................................7
P3 Ascertaining the potential sources of funding for Southern Business Technologies........7
M2 Justifying the adoption of appropriate sources of funding...............................................9
D2 Critically evaluation over sources of funding based on several arguments...................10
LO3................................................................................................................................................10
P4 Developing a satisfactory business plan for scaling up objectives of Southern Business
Technologies.........................................................................................................................10
M3 Designing an appropriate business plan.........................................................................13
D3 Presenting the coherent details relevant with business plan...........................................13
LO4................................................................................................................................................14
P5) Assess an exit or succession options for a small business explaining its benefits and
drawback...............................................................................................................................14
M4 Recommendation of succession options for a small business.......................................15
D4 Justification and recommendation relevant with succession of business.......................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Planning and developing the strategies plays main role in ascertaining the impacts of
various operational activities. It enables the managerial professionals in analysing the current
market requirements as well as determining the internal efficiencies to meet such demands and
wants of consumers. In the present report there will be discussion based on analysing the internal
business scenario of Southern Business Technologies and making suggesting decision for better
expansion of the operational functions of entity. Moreover, it consists of various plans and
operations that will be adequate and efficient for the entity in terms of meeting the goals. There
will be used of various models, growth matrix etc. which in context with makes suitable plans for
fetching effective business opportunities.
LO1
P1 Key consideration for growth opportunities evaluation for Southern Business Technologies
To develop the fruitful operations in the business which is consisted of various plans and
operations that are needed to be determined. Thus, such identification will be assistive as per
identifying various opportunities for growth. In relation with demonstrating the effective growth
plans and opportunities for Southern Business Technologies there is need to have consideration
over various factors such as:
Financial Feasibility:
To demonstrate and identify the financial aspects of the business which are consists on
various records in the accounting books and the financial statements. Thus, the demonstration
based on identifying ability of firm in making investments as well as meeting its debts. It also
comprised with analysing the short and long-term solvency which will be attractive top investors
in terms of investments decisions (Light and et.al, 2017). On the other side, a sound economic
condition of entity will be assistive as per meeting the targeted aims in the right time as well as it
enables firm in over coming from debts. Hence, analysing the revenue, expenses, capital
structure and reserves for the future will be helpful for better acknowledgement about financial
aspects for Southern Business Technologies.
Risk assessment:
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There are always been risks which are associated with the business operations and being
the obstacles in meeting the targets. Identification of various risks such as financial risks, internal
or external issues, etc. are the factors which affects business operations (Onen and Eminoglu,
2013). Thus, monitoring each activity performed in Southern Business Technologies with proper
records will be assistive in terms of over-coming with the issues and making suitable changes in
the operational practices.
Market Research:
Business are performing with the motive of going concerns which have effective control
over operations that will be useful and effective as per making sound operational activities. It
provokes professionals in analysing the market environment and changes which are needed to be
adopted by the firm (Business Opportunities, 2017). In relation with developing the operational
functioning of the entity there will be consideration of various objectives and requirements of
firm.
Competitive advantages:
There have been various cases and targets of the organisation which are need to be
considered in the positive manner. The prices, product line as well as consumer redundancy are
needed to be appropriate or better than the competitors stated in the environment. Moreover, it
will be helpful and appropriate for the entrepreneurs in relation with making suitable business
plans and strategies to meet competition (Pannicker and Mehta, 2016). Motive of earning higher
revenue as well as profitable gains which will be appropriate as per making operational changes
in the economy.
Analysing the consumers:
Analysing the growth of entity in relation with making suitable changes in operational
practices as well as managing the operational criteria of business in a most profitable and
adequate way. Designing the products and services which meets the required wants and needs of
consumers in the most desirable way (Shujaa Addin and et.al, 2017). It comprised wit
developing the operations of entity in meeting the targeted aims at the right time.
PESTLE analysis
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Political: As per evaluating the political environment of UK on which it can be said that
there have been various operational changes needed to be adopted by Southern Business
Technologies. Corporate taxation and various taxes are being payable by the corporate sectors in
UK which are basically collected by HMRC and the legislative general of the country.
Social: Developing the single package scheme in the market will be helpful for the
Society in terms of making seatbelt changes in the operations as well as designing the collective
approaches (Light and et.al, 2017). It comprised with the educational level and the life style of
the consumers in operating areas. Southern Business Technologies required to analyse the
market standard and develop the plans accordingly.
Economical: Analysing the information relevant with the economic standards of the
particular locational. Thus, UK is denoted as the developed nation in the world as the per capital
income is comparatively appropriate in generating suitable revenue to the firm.
Technical: The plan of Southern Business Technologies is for developing the comprised
package which will have features like, free calling, unlimited data usage and the DTH services
on which the revenue generation will be helpful and adequate in terms of meeting the goals of
firm (Onen and Eminoglu, 2013). There are various competitors stated in the market, so to have
adequate numbers of consumers there is need to be technically sound and effective.
Illustration 1: Pestle analysis for
Southern Business Technologies
(Source: PESTLE Analysis, 2018)
Legal: In relation with making the legal approaches on the business plan of Southern
Business Technologies it can be said that there are various techniques which are needed to be
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implicated and monitored for having better control over operations (Pannicker and Mehta, 2016).
Considering all the legal norms and regulation relevant with telecom services and industries
which are operating this business.
Environmental: Requirements of developing an effective business plan which have
effective information relevant with the wants and needs of consumer (Kerzner and Kerzner,
2017). Thus, it comprised with analysing the consumers preferences, wants and the over all
market of location where the business is going to initiate the business operations.
SWOT Analysis
Strength
 Good record of quality of phone call.
 Special focus on kind of assets which
belong to organisation are best
Weakness
 Deficiency of resources and employees
which will be affecting its operations.
Opportunity
 Intervention of government for
supplying subsidies as in this company,
forecasting of required products should
be done.
Threat
 New entrants or competitors
 Failing economy
 poor economic conditions
P2 Application of Ansoff growth matrix to evaluate growth opportunities
Preparation of strategic plans are basically comprised of various targets and tasks that
will have impacts on operations. Ascertaining the impacts of various operations which in turn
will be useful and adequate in meeting the targeted aims at the right time. It approaches towards
helping the Top-level managers, seniors and executive directors for analysing the requirements
and making suitable operational changes (Haaland and van den Bosch, 2015). Buy considering
Ansoff Growth matrix there will be suitable revenue generation and operational gains of the
entity which will meet adequate requirements.
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Illustration 2: Ansoff Matrix
Source: (The Ansoff Matrix, 2018)
Market Penetration:
This strategy comprised with adequate planning and strategies which will be based on
improving consumers of organisation on the previously existed market. Here, managerial
professional makes plan to improve sales such as reducing prices, increasing promotion and
distribution (Campbell, 2017). Ascertaining the techniques associated with the operations such as
reducing the rivalries stated in the market will be removed as it provokes acquisition.
Market development:
Firm approaches towards making expansion of business in new market which will be
adequate in terms of developing entity at geographical and country level (Kerzner and Kerzner,
2017). Here, managerial personnel in organisation needed to make specific plans and operational
development with considering market observation, accessing through the availability of
resources as well as management of firm's operations will be effective for better revenue
generation and designing policies for new place.
Diversification:
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In relation with rising the market share of entity where they seek for the observing the
market and making new changes in the operations such as products and services (Larimo and
et.al., 2018). Thus, as per the motive of business in making expansion of operations among
various markets there will be need of generating information and analysing the environment of
the location which will be helpful as per making suitable operational development.
Product development:
These techniques are comprised of making innovative changes in products. Thus, these
are the things which creates identity in the market and brings suitable operational tactics
(Taiminen and Karjaluoto, 2015). Goods and services which will be designed and developed by
the organisation are needed to be meet the consumer requirements as well as will be profitable to
entity in terms of beating the competition.
M1 Implication of analytical framework for competitive advantage
To develop the internal operations as well as external activities of business which in turn
will be supportive as per making profitable changes in the operations. Therefore, to beat the
competition or rivalries in the environment there is needed to have proper control over products
and services being offered by the organisation (van Niekerk and et.al., 2016). However, it
comprised with analysing three elements and factors of society such as:
Target market:
It acknowledges the target audience or consumers for whom the business in making
products and services. Designing such goods will be based on their requirements, convenience
and satisfactory desires. If all the requirement met by professionals them they will become able
to compete the world and generating the adequate numbers of buyers.
Competition:
In regelation with becoming the highly competitive in the world which is based on same
categories of products and services which requires analysing the existing competitors in the
world (Vértes and Bullmore, 2015).
Benefit:
6

It is based on analysing the consumers preferences and requirements from the company.
Thus, ascertaining such requirements will be effective in meeting the desired profits of Southern
Business Technologies.
D1 Evaluation of specific options and pathways for growth
To develop the business operations in the most positive manner there are various factors
which are needed to be considered and analysed by the professionals. Mitigation of risks
associated with objectives of Southern Business Technologies will have suitable control over
operations (Ingley Khlif and Karoui, 2017). Considering two factors which will be helpful in
overcoming with various obstacles and organisational risks such as:
Adaptation:
In relation with changing the operational objectives of Southern Business Technologies
there are various operations and options which will be helpful in overcoming with the risks.
Adaptation of newer technologies, techniques and methods of performing operations will be
helpful to have suitable revenue generation (Light and et.al, 2017).
Mitigation:
To remove various elements which brings the risks into account based on the process of
mitigation. Removing chances of risks will be beneficial in managing the operation of Southern
Business Technologies (Onen and Eminoglu, 2013).
LO2
P3 Ascertaining the potential sources of funding for Southern Business Technologies
Identifying various sources of funding which will have their positive and negative
impacts on the business. Therefore, analysing such sources will be helpful to Southern Business
Technologies in relation with making suitable business plan (Pannicker and Mehta, 2016). Along
with this, it can be said that there are various internal or external sources which will be helpful as
assistive to the organisation in terms of having better control over operational practices.
Sources Advantages Disadvantages
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Investors  Collecting funds through these
sources which will be
adequate and appropriate for
the business as they will have
desired amount of funds for
the operations (Shujaa Addin
and et.al, 2017).
 Southern Business
Technologies will have
appropriate amount of revenue
and capital collection as per
selling the equity and market
share in the capital markets.
 It consists of making
payments of dividends on
the regular basis which will
be adequate and helpful to
the investors in terms of
retaining the profitable gains
over their invested capital in
the business.
 The payments of dividends
will reduce the amount of
revenue generated by the
company. Thus, on which
they have to suffer from
poor operating gains
(Campbell, 2017).
Owner  These are the initial sources of
gathering funds for the
operations (Advantage &
Disadvantage of Equity
Capital, 2016).
 Owner will do not charge any
interest of return over their
invested amount in the
business.
 It brings the counter effect
of sharing risks which in
turn impacts over reducing
the operating profitability of
the firm.
 There will be loss of control
as the owners will not have
appropriate control over
utilisation of the funds in
various activities.
Bank loan  These are the most flexible
sources through which the
business will have appropriate
 It comprised with strict
requirements on which the
business has to be clear on
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amount of capital funds.
 These are very cost-effective
terms that will be helpful as
per meeting the financial
resources as the firm will have
desired amount of revenue.
 It benefits the organisation in
terms of not making payments
to any taxes over loan.
what they are facilitating the
market which specify their
needs for loan.
 There has been repayment
burden on the loan taken by
them such as interest on loan
(Advantages &
Disadvantages of a Bank
Loan, 2018).
Government
Grants
 Government agencies and
financial institutions are
always in the support of small
medium size entities so to
facilitate the funds to them is
their prime operations.
 It is helpful for country in
terms of having better control
over GDP, economic rate as
well as per capital income.
 They do not charge any
interest or taxation over such
granted capital.
 There will be insufficiency
amount of funds.
 It comprised with various
difficulties in terms of
having such grants.
 Complexity incurred in
terms of acquiring the
adequate amount of funds
for the operational activities.
Recommendation: While evaluating different sources of finance it has been evaluated
that Southern Business Technologies is SME so it will be highly dependent on initial capital
invested and Government grants because there is special provision for SME sector.
M2 Justifying the adoption of appropriate sources of funding
To generate the funds from various operations which will be appropriate and helpful as
per meeting the financial requirements. Promoting the several sources through which Southern
Business Technologies will acquire a required amount of funds (Kerzner and Kerzner, 2017). It
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will be suggested that bank loan or investors will be a suitable stakeholder in terms of generating
the desired amount of capital. They only seek for financial disclosure and payments made by
organisation in meeting the targets.
D2 Critically evaluation over sources of funding based on several arguments
The basic need of organisation is for developing the operational criteria and strengthening
the entity in fighting competitive challenges in the environment. Thus, in relation with small
medium size enterprises there will be requirement of capital for operational activities (Taiminen
and Karjaluoto, 2015). Southern Business Technologies will have sufficient capital collection as
they approached towards bank loans, governmental grants and shareholder investment.
LO3
P4 Developing a satisfactory business plan for scaling up objectives of Southern Business
Technologies
Executive summary
The strategic plan is all about Developing it for Southern Business Technologies in
relation with the objectives of managerial personnel for promoting the business as well as
expansion of its operations. However, there have been various areas of operations which are
needed to be meet by the professionals and this plan is describing about team of cybersecurity
and for offering new packages in efficient and convenient aspect.
The Business summary:
Southern Business Technologies is planning to expand the business operations by
implementing various innovative plans and techniques to be used in the operations. They have
planned to offer new packages which will be cost efficient and convenient to the consumers in
terms of bringing them suitable services in a single package (van Niekerk and et.al., 2016). They
have demonstrated to bring the services like free calling, unlimited data usage, DTH services in a
single package. The concept behind launching such techniques is that there will not be
complexity and anxiety as per making payments to all the resources.
Objective:
 To increase sales by approx. 6%.
 To gain good reach in every place with affordable charges.
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