Strategic Planning for SME Growth: A Comprehensive Report

This report delves into the critical aspects of planning for growth within Small and Medium Enterprises (SMEs). It begins by emphasizing the significance of strategic planning for achieving future objectives and increasing profitability. The report analyzes key considerations for assessing growth opport...Read More

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Some key consideration to analyse growth opportunities................................................1
P2: Various growth opportunities through the use of Ansoff matrix.....................................3
TASK 2............................................................................................................................................6
P3: Various sources of funds..................................................................................................6
TASK 3............................................................................................................................................8
P4: Business planning in order to make growth ....................................................................8
TASK 4..........................................................................................................................................11
P5: Various modes a SMEs can analyse during existing any business ...............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is an essential part of every business decision-making. It is applicable for all
types of organisation such as small and medium size. In order to increase its profitability as well
as growth they need to make a well organise plan that can help to attain future aims and
objectives (Sharifi and et. al., 2014). It is a strategic organisational tasks that can guide business
owners to make plan for future projects in regards to incur better productivity. Through this,
companies can utilise resources in best and effective manner towards centred efforts in order to
deal with necessary changes those are seen in industry.
This project report provide crucial information about SMEs and various steps those are
taken in order to make certain improvement in their daily operations. Understanding of Ansoff
matrix in the manner to analyse various growth opportunities and sources of finance that are
mention under this specific report. A systematic business plan in made in accordance with
developing small businesses so that they can growth in best and appropriate manner.
TASK 1
P1: Some key consideration to analyse growth opportunities
In every business organisation, few things are needed to be consider in context to
measure productivity of 4Com plc. For the purpose of making plan in accordance with small
business organisation, it is essential to have complete information about their operational
activities. It is an effective assessment is a systematic procedure that target all those main aspects
that are widely impact the performance of an organisation. It has been analyse that 4Com plc is
associated with delivering best services to every customers through its valuable products. In this
manner, few crucial tools and techniques can be eventually effective in order to make sustainable
outcomes for the company (Blackburn, Hart and Wainwright, 2013). It is the responsibility of
small business enterprises to use techniques in more accurate ways so that chances of getting
higher profitability can be enhanced.
It has been observed that economy growth for small and mid size organisation is not
getting so effective because they are not getting sufficient amount of support and financial help.
The primary objectives of these organisation is to modify business functions in more reliable
manner so that growth opportunities can be increase. Without having proper strategies regarding
growth for their business company's cannot attain their vision and mission in set period of time.
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It is necessary to take some critical decisions so that problems can be resolve in more effective
and easy ways. Growth is vital for 4com plc so that they can remove up-coming risk those are
not able to fulfil their set objectives.
Competitive analysis: In the manner products can be more attractive and suitable in
accordance with other company's. It is the primary responsibility of managers to make
improvisation in techniques of production that can separate them from another company. The
chances of getting competitive advantages can only be attain if they sort few modification in
products features and design (Porter, 2012). One of the best ways, it can be resolve is through
cutting down prices of products and services those are fixed by 4Com plc in order to attain
competitive benefits.
Turnover: In some business firms, maximum focus is given on incurring large profit
through selling of productions. The more they sale chances of getting larger revenue can be
enhanced. These sorts of impacts could be more assertive in order to measure growth of an
organisation. In this way, resources of 4Com plc can be utilise in more effective manner.
Market share: Few other consideration is associated with the market share of the
company they are generating with their production of products. If the position of company is
more sufficient enough to meet its debts obligation during one year of time. They happens to be
in perfect position in terms of market share.
Profitability: The best of part of every business growth planning is that companies are
always trying to create opportunities for generating profit with its limited resources. The success
growth can only be attain if they are effective enough to meet out its day to day expenses those
are helpful them to reach at its destination (Planning for growth, 2017). In order to increase
standard of living of people as well as society they need to make wide range of products and
services those are of superior quality as per the requirement of customers.
Latest technology: It has been identify that good results can only be attain, if 4Com plc
is having modified techniques to produce goods. With the help of latest technology they can able
to produce more products by limited resources (Leigh and Blakely, 2016). By this, they enable to
make decision in order to attain competitive advantages over other company's those are in same
business operations.
In current time, IT is playing a dominant role in solving every issues those are affecting
business growth as well as its production capabilities. These are making ways to combine people
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together with other companies so that they can directly convey their grievances. It is more
reliable in order to develop products as per the demand of customers.
Collaboration: With the help of proper this consideration, 4com plc can be make more
superior quality of products with the combine efforts of people and operational department. This
results in increasing profitability through increase in total sales in an accounting year. There are
various entry modes available to a company so that their business be expend into other parts of
the nation (Juergensmeyer and Roberts, 2013). Some of them are merger and acquisition,
licensing, FDI and joint venture. By selecting any of the methods one can enhance its total
revenue as well as market share. Every vital decisions needs to be exchange in between people
and other concern parties those are involve in growth planning.
P2: Various growth opportunities through the use of Ansoff matrix
In case of 4Com plc, they need to adopt best suitable techniques that can help them to
generate better results in coming time. Ansoff matrix is an essential aspects that can guide SMEs
in right direction. It has been seen that plenty of sources and methods are available with the
company's in order to make business operations more effective for longer time. This specific
requirements those are crucial for incurring growth opportunities in more reliable mode so that
chances of gain can be increase.
Most SMEs companies have accurate plans to grow its business and enhance sales or
revenue. Therefore, there are crucial techniques can be utilise by companies that are use for
implementing a growth planning. All those methods which is useful in order expand business at
global level is necessarily required to be implement so that competitive knowledge and growth
would be enhance.
Opportunities: It is known as the potential to create something innovative that consists
modification in skills, technology, economy and social and demographic conditions. These is
said to be business concept that provide reliable outcomes in order to generate profits if its is
turned into real goods and services (Whelpton, Campbell and Patterson, 2015). It is concern with
individual that recognise various opportunities and make use of company's resources by its
innovative ideas in order to start a new venture. In order to analyse specific market entry modes
through which people can implement their inner abilities to do something new that would be
more beneficial for them.
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In order to make expansion plan into other parts of the country they need to use either of
any mode such as licensing, joint venture, merger and acquisition and so on. Although, before
formulating any plan they needs to conducts a well organise market analysis so that to
understand present situation of customers requirements. For this purpose mention below analysis
can be utilise:
 SWOT analysis
 PESTLE analysis
 BCG Matrix
 Ansoff- matrix
Out of all the above techniques, the most reliable information can be gettable from
Ansoff- matrix. It is so because every information related with market demand and customers
requirement would be easily fulfilled. As per this particular analysis, a firm could connect its
marketing strategies with its common plan direction and identify various alternatives those are
demanded by 4Com plc. This process is essential for the propose of making decision at every
level in an organisational hierarchy. The long term chances of attaining opportunities can
become more with combine effort of people as well as leaders.
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Illustration 1: Elements of Ansoff matrix
(Source: Ansoff matrix, 2017)
Market penetration: It is known as perfect growth strategies wherein the 4com plc
seeks to sold current products into on going market. This must be done with the aim of accretive
whole market share. It can be only be possible when a company make sales to present customers
within a set develop market. Because of penetration needs huge expenditure on promotion and
other personal selling it is difficult to make changes as per the demand of customers.
Market development: This specific planning is formulated by the company's when they
decide to sell its current goods in the latest market. It is a perfect growth plan in which 4Com plc
can determine and formulate new markets for the purpose of making new development in the
products (Wynn, 2017). This particular strategies is much more risky than perfect market plan is
entering into a new market for which market does not have any specific knowledge.
Product development: A growth planning is one which a company seeks through
introducing a new products in an establish market segment. The 4Com plc is stays in the current
market but increase wide range of products those are offered through various mode in order to
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expand market. It any new products generate positive return to the company in the form of
additional sales the market share prices would increase gradually.
Diversification: As per the name suggested, it is well organise planning under which the
company can enters into the new market with formulation of new goods in the market. In this
particular planning, 4Com plc can either begin or adopt a business which is unrelated to present
product line and market place. It is also known as the most riskiest strategies out of other one.
Competitive advantages can only be attain through determining favourable position of an
organisation which seeks in respect to be more gainful a compare to their rivals. In order to
maintain better competitive benefits an organization must be able to present wide comparative or
crucial value that their competitors in order to attain desire objectives. Sustainable benefits use to
refers well maintaining position over the longer period of time. It would assist in developing
better image in the marketplace and increase future earning potential.
TASK 2
P3: Various sources of funds
Finance is an essential part of every business organisation. Without having proper
sources of finance a project cannot be get completed. It is applicable for every organization such
as SMEs those are working for the motive to increase profitability. Sources of finance is help the
company's to balance there planning of project in more effective and efficient manner. For the
purpose of expansion and growth it can be ascertain through taking crucial process to make
decision more reliable (Moseley, 2013). There are plenty of sources through which funds can be
raised. Such as internal and external sources. With the use of every sources a company can
generate certain benefits and limitations. In small or mid size organisation these are more reliable
to enhance their business performance so that they can increase efficiency in more quick time.
Internal sources: These are mainly related with internal department of an organisation.
Funds can be arrange from various sources from employee contribution, retained profits, sales
from assets and services etc. These can be categorise into various ways such as:
Owner's capital: These types of costs are use during the time of starting new business in
any parts of an organization. This accounts indicate total assets a 4com plc is owned by the
owners instead of creditors. Such kind of sources are use by mainly sole traders.
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Retain earnings: It is total percentage of net earnings those are not paid out as dividends
but retained by company for the purpose of making reinvestment or payment of liabilities.
Advantages:
It is more flexible that can be reinvested in order to increase productivity of an
organisation.
Disadvantage:
 Opportunities cost is much more high.
 There are certain limit in case of investments.
Sale of stock: It is known as one of the crucial aspects of internal sources those are
owned by an investors. Few are some reasons through which stocks can be sold out is consists of
incurring profit, minimising losses and accessing cash.
Personal savings: These are said to be individual, owners and personal amounts which
are being invested for the purpose of starting new business in the market. They are directly
contributing to business growth (van Assche, Lo and Beunen, 2013).
Advantages:
These are happens to be more economical sources of finance which does not involve any
interest amount.
Disadvantage:
Lack of saving can affect the profitability of an organisation during the crucial stage of
development.
External sources: It is known as all those sources those are related from outside the
company. It can acquire the inputs under production process that means that a business is
availing as per the market prices planning. These can be helpful in delivering products to an
organisation. Types of external sources are:
 Venture capital: It is termed as best sources of financing that an investors use to
provided to a start up companies that believe that to earn future profit growth potential.
Mainly these are comes from investment banks and other financial institutions.
 Leasing: These are crucial sources of funds in which company can allot its property to
some other parties for certain period of time and in return they can get some interest. It
can guarantees to lessee, the tenant and make permission to lessor to make regular
payment of hold assets.
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 Bank overdraft: It is the most flexible borrowing that can facilitate on a certain bank
current account that is due on certain demand. It does not results in cash flowing into a
regular course of actions (Chen and et. al., 2013). Under this, interest is mainly calculated
on an regular basis, usually at a high rate on the total debit balance.
Advantages:
 It allows the company's to take out more funds than they actually have in their accounts.
Disadvantage: If these are use for the purpose of long time then it is can much more
expensive.
 Equity capital: These are known as invested amount in relation to debt capital which is
not being repaid to the investors in the normal course of action. It identify total risk
capital that staked by the owners during purchase of a an individual stock.
Advantages:
 It will be beneficial for the purpose of tax exemption.
 No-compulsion to the payment of dividends.
Disadvantage:
 High risk of interest is being paid for the amount of capital collected.
Justification:
As 4com plc is operating in telecom industry they need to have various sources which
can assists in increase their business for longer period of time. Option of hire purchase
transactions are one of the vital sources of finance available to the company. The products are
delivered through the owner to another person the agreement which a person used to pay agreed
sum in periodical instalment. Long term financing is also have sufficient amount of sources of
financing that are done for a specific period of more than 5 to 10 years.
TASK 3
P4: Business planning in order to make growth
Every business organisation, required a well organise process that can be use for the
purpose of making growth opportunities. If 4Com plc is a perfect position they wants to increase
its business in other parts of the nation (Li, Mobin and Keyser, 2016). In order to increase
goodwill and profitability they need a perfect plan that can help in generating better outcomes in
future times. Through the use of business plan one would seeks to attain the most advantages
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evaluation in between organisation requirements and steps they are going to follow in order
attain those objectives. Some of them valuable aspects are discuss underneath:
Executive summary:
A business strategies is summary of crucial document which consists of various
information regarding 4Com plc that would enter into global level through its current products
and services. This is mainly associated with digital technologies that are having plenty of
electronic products like broadband, mobile phones and other crucial services those vital in
decision-making. Under this plan, information about 4com plc digital improvisation is being
given more focused.
Overview of the company:
4Com plc is known as one of the best telecommunication services provider in UK. They
are related with production of digital handsets, call recording. On hold marketing and call
reporting system. They are having suitable impacts in delivering businesses in order to improve
telecom solution that have been applied to more than 10000 customers in UK. In the current
times they are engage with Salisbury. They are delivering best quality services on regular basis
from 1999, whereas, nearly around 300 staffs are currently working with them in order to
generate better outcomes for the company.
Vision: These are known as long term strategies that can be planned by companies to
attain those in allotted time period. They are predicted to become one of the largest digital
services delivery company in comparison to other.
Mission: It is related with short term planning of an organisation. 4Com plc is eyeing to
become more reliable and clear service provider.
Objectives: In order to make some crucial move in growth process. They need to
implement certain objectives those are being followed by the company (Ziari and et. al., 2012).
Some of them are mention below:
 To formulate digital technology for future growth opportunities.
 Development of idea that can helpful in increase moral of employees those are working
for the purpose of delivering better services to customers.
 Improvisation of policies for the purpose of producing new products in the marketplace.
 Starting online connectivity with extra facilities to surf more easy over the internet.
Products and services:
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There are some products those are being produce by 4com plc is mainly helpful for
officer people to operate their works in more specific manner. Some of them are HIHI ,
broadband and internet, software application and mobile handset. They are making main focus
on delivering proper connectivity and clear exchange of signal in order to communicate and
share data in more easy manner.
SWOT analysis:
Strength: It has been observe that 4com plc is delivering best and more effective services
quality to its customers. These are done through providing proper solution to their queries those
are arises while using services.
Weaknesses: There are certain limitation that are affecting company performance . They
are planning to bring changes in their products and services but they are not able to do that
because of not having valuable resources.
Opportunities: It has been observe that they are having latest technologies that can be
helpful in order to make plan for getting future growth.
Threats: After making proper analysis, it has been seen that chances of getting
competitive advantages can be enhance if they are able to produce products in more effective
manner.
Market strategies:
Niche marketing: It is more effective marketing system through which 4com plc can
expand their market more accurately. Because there are least number of competitors are available
so that they having huge chances to increase profitability.
Marketing Mix:
It is related with all those marketing p's those are essential for success of an organisation.
Some of them are discuss underneath:
Product: It is a crucial items that is develop to statistic needs and wants of various
customers. As the planning is always done to increase profitability of an organisation through
offering better services to them.
Price: It has to be more economical prices which is being set in order to analyse that
every customers would be able to buy products of the company.
Place: It is very crucial part of the product mix. As the broadband services are need to be
available at every specific destination so that people can easily be able to customers.
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Promotion: In order to increase better market image of their products. Company need to
use various sources to promote their products by using advertising or other modes.
Financial budget: It is one of the more effective ways to collect data for the purpose of
making business planning. The total calculation of income and losses, budgetary control and
sales budgets and other crucial sources of information those are require during the time of
planning. According to 2016, total cash generated by the company is about £731000 which is
more than it was in last year.
Total forecasted budget
Particulars 2017-18 2018-19 2019-20
Implementing technology cost 10000
Promotional expense 5000 5800 4600
Advertisement expense 4500 12000 13500
Catalogues 1600 1700 4200
Training charges 6500 5300 7100
Total cost 27600 27100 31650
Growth plan: It is more specific for 4com plc in order to expand its total business
operation. Some of the other aspects are termed as market penetration, expansion and other
merger or acquisition.
TASK 4
P5: Various modes a SMEs can analyse during existing any business
It is a kind of situation under which a company is getting continuous losses from plenty
of years. This will forces the 4com plc to close their operation in order to control future losses.
There are various modes through which one can switch its day to day operation. Some of them
are mention below:
Shut down: It has been the situation, which arises with the company in those situation
where they are not able to operate and control its losses. Management of 4com plc has a stroke
because of minimum growth and profit earning ability of the company. This will make to take
decision to shut down its one of the units so cover its debts obligation.
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Drain it: Under this particular stage, company needs to take large amount of cash so that
they can come out from any core operations (Pallagst, 2010). These can be more risky that
cannot able to incur large huge investment return.
Sell out business: It is one of the most easy mode through which owners can sell its
business operations to anther parties. For the purpose of making payment of liabilities they need
to take such kind of decision-making.
Friendly buyout: According to this particular techniques company can transfer their
ownership to its relatives and other friends those are related with the family.
Effective succession or talent management is related with itself building a series of
branch that can assists in increase current business operations of an organisation. A failure in any
business plan ahead should not reduce the potential value of various company's. It is essential to
think more positively to meet their upcoming losses as well as to control their extra taxes. It is
necessary to think prior selection about more effective existing options which is more crucial for
the company.
CONCLUSION
From the above project report, it has been concluded that with systematic planning an
organisation can attain its growth opportunities in an effective manner. This project report
provide valuable information about various methods and techniques those are help in growth of a
business operation. A well organise business plan is made to determine better productivity for
the firm. Examination of various ways through which company can exist from their business
units are mention clearly.
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REFERENCES
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Leigh, N.G. and Blakely, E.J., 2016. Planning local economic development: Theory and
practice. Sage Publications.
Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability growth
planning in early product-development stage. IEEE Transactions on Reliability. 65(2).
pp.769-781.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
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Pallagst, K., 2010. The planning research agenda: shrinking cities–a challenge for planning
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Porter, D. R., 2012. Managing growth in America's communities. Island Press.
Sharifi, A. and et. al., 2014. Can master planning control and regulate urban growth in Vientiane,
Laos?. Landscape and Urban Planning.131. pp.1-13.
van Assche, K., Lo, M. C. and Beunen, R., 2013. A perspective on planning, smart growth and
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Whelpton, P.K., Campbell, A.A. and Patterson, J.E., 2015. Fertility and family planning in the
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Wynn, M.G., 2017. Planning and urban growth in Southern Europe. Routledge.
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Planning for growth. 2017. [Online]. Available Through:
<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>.
Ansoff matrix, 2017.[Online]. Available Through: <https://businessjargons.com/ansoff-
matrix.html>.
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