Telecom Plus: Analysis of Growth Strategies and Funding Report

This report provides a comprehensive analysis of Telecom Plus's growth strategies, examining key considerations for organizational expansion in the context of digital technology. It delves into the application of Ansoff's growth vector matrix, evaluating opportunities for market penetration, product development, market development, and diversification. The report further explores various potential sources of funding available to businesses, including investors, personal savings, venture capital, and bank loans, along with their respective benefits and drawbacks. Additionally, it outlines the design of a business plan and assesses exit or succession options for a small business, considering their advantages and disadvantages. The analysis emphasizes the importance of strategic planning, market share, profitability, technological advancements, and diversification for sustainable business growth and development. The report utilizes the Telecom Plus case study to illustrate the practical application of these concepts within a real-world business context. The report concludes by highlighting the significance of adaptability and strategic decision-making for long-term success.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1Key considerations for evaluating growth in organisational context and their impact on
digital technology........................................................................................................................1
P2Ansoff's growth vector matrix for evaluating opportunities for growth ................................3
TASK 2............................................................................................................................................5
P3 Potential sources of funding available to businesses with benefits and drawbacks of each
other.............................................................................................................................................5
P4 Design a business plan...........................................................................................................7
TASK 4............................................................................................................................................8
P5 Assess exit or succession options for a small business with benefits and drawbacks of each
other.............................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is important for every type of business this can be related to overall activity of
business as well for operation department also. It can be done in order for performing effectively
for achieving goal and objective of business along with target market. Small business helping in
growth and development of economy (Barbour and Deakin, 2012). Apart from this small
organisations provide employment opportunities to several peoples and also help in raising living
standard of owner and their family members. Planning is necessary in enterprise for carrying
their day to day activity in effective manner. Thus, it will help in achieving goal and objectives
along with attracting customers. This assignment is based on Telecom Plus which is founded in
1996 and key people of this are charles Wigoder and Andrew Lindsay. Although, products
serving by the same company are broadband, gas electricity, Landline telephony, mobile
telephony. Revenue of Telecom Plus is £744.7 million. Below mention report describe how
planning will help in growth and development of small scale business.
TASK 1
P1Key considerations for evaluating growth in organisational context and their impact on digital
technology
Growth and development is needed by every organisation for this all the activities of
business is managed by top level management. Expansion of business is the thing through which
company can grow as well diversify their business at several level. This will help in generating
high profit volume and sales (Beatley, 2014). Growth and expansion of business come with
several uncertain risk, for minimising all these manager have to do planning in such a manner
that organisation can achieve it target market and customers. There are several considerations
defined that can be utilized by every association for achieving high growth and advancement.
Few of them are given below:
 Market share- every company want to increase their market share which can be possible
with proper planning which include aims, objectives, vision and goal of business. This
can be possible when customers are satisfied with the products and services Telecom Plus
is serving as well these must be according to requirement of customers. Unique and
innovative products and services attract and satisfy customers and target market which
directly help in enhancing market share. Moreover, to create comprehensive image of

market along with accomplishing strong position, few aspects have to be analysed, like
who are target buyers of Telecom Plus (Chen and et. al., 2014). This process can be done
through market research towards the client to whom services are providing like cloud
services, several IT services and Bandwidth network.
 Profitability- this is the term which is required by every kind of organisations for sustain
in this competitive business environment. It can be possible when Telecom Plus
expanding their business and with proper decision related to increasing market share of
the enterprise. Same company is small business enterprise are improving their their
Profitability through Joint Venture, merger and acquisition, franchising, partnership and
many more. For Instance, with the help of franchising Telecom Plus can expand their
business at international level which assist in enhancing market share and profitability.
On the other hand, when merger and acquisition take place two companies work together
because of this they are more helpful in providing high quality of goods and services to
customers along with improving their manufacturing procedure. Apart from this there are
several other benefits also besides profitability such as this can assist in reducing work
load. When employees are working with their colleagues this will improve their skills and
knowledge.
 Advanced technology- new or innovative technology is adopting by Telecom Plus in
their production purpose. Which help them in completing work on time in effective
manner that gives direct impact on high growth and increasing profitability. Advance or
updated technology easily attract customers toward it and these give high satisfaction to
them. Now a days companies are moving toward digitalisation and implementing several
Information technology services for their production process. Apart from this new
technology help in doing production in effective manner with wastage of resources and
minimum uses of funds.
 Diversification- with diversification companies go in new market with their latest
products along with this it is an imperative method of increase high profit and proficiency
(Wu, 2015). Although, in this there is chances of getting failure because if customers
don't like products and services offering by Telecom Plus then this will results in failure.
Along with this, diversification aids small business in many ways like grabbing several
market opportunities in specific time period. But planning of diversification done in

proper manner which directly helping in accomplishing goals and objectives of business.
Their are several risk in diversification such as customer's perception, no proper finance
and many more (Eddleston and et. al., 2013).
Thus, Telecom Plus is implementing all these key consideration which help in easy
achieving goals and objective of business in particular time period. All such aids in reducing
work stress level of management with enhancing performance as well productivity at workplace.
P2Ansoff's growth vector matrix for evaluating opportunities for growth
Ansoff Matrix is tool for doing strategic planning and it is the framework which help
senior manager, executives along with this marketers devise for growth of business in future. It
also called as Product- market matrix and this is one of the most using marketing model because
it focus on growth. In simple term it can be said that Ansoff's matrix is based on comparison of
relationship between marketing strategy and general strategic directions. Telecom plus used this
matrix as their marketing tool for gaining growth and high proficiency. The same matrix give
suggestions to company that how they have to grow in market with new products and also
existing goods. Ansoff's matrix is classified into four categories market penetration, product
development, market development and diversification. Explanation of these are given below in
the context of Telecom Plus:-
Market Penetration- This is the strategy through which organisation can tries to grow
existing market through existing goods and services. In general term it can be said that market
penetration tries to increase market share of company in current scenario. Although, the same
strategy help in maximisation of market share of the Telecom Plus. For example: existing goods
can be sale through advertisements, sales promotions, personal selling, competitive price strategy
and several other ways (Galland, 2012). All these can be achieved through:-
 Increase in promotion and distribution support.
 Price decrease
 Acquisition of a rival in the same market.
 Modest product refinements.

(Source: Ansoff Matrix,2015)
Market Development- in this step company find new market for selling their goods and
services. In this circumstance, Telecom Plus enterprise can establish its goods and services into
geographical areas in order to snatching more and more consumers from the entire market. For
illustration- Telecom plus can offer their products and services with the help online market. It
also aid a firm to reach large number of customers (Levy, 2016). Along with this new market
region also enhance firm's performance level along with the productivity, so that it can easily
produce at sizeable level and return higher profitability. The same also emphasis on attractive
packaging. For example- telecom Plus use tool of new and attractive packaging when they are
selling their goods and services in market. Market development can be accomplished through:-
 Foreign market
 new area or region about of the country.
 Various customer segments
 industrial buyers for a good that was previously sold only to the household.

New Product Development- this procedure says that new product development is related
to development of something new and innovative for customers which make them satisfy.
Because now a days people want to purchase only these products and services which are unique
and attractive in looks. Moreover, new product development approach devotes to accomplish
goals and objectives in an impressive manner. In competing business environment, it is essential
for telecom organisations to produce new goods and make some modification in the existing
ones in order to achieve and keep on customers for long time period. It assist in distinguish
products and services from their competitors for maintaining successful and competitive. It is
cardinal for Telecom plus to create a successful product development strategy because it can
impact on market share along with the entire working process. Before bringing new product and
services into the market, managers have to do market research for examine or identifying
customers needs and wants because this is the thing which help in satisfying customer. For
completing this procedure department of research and development is responsible for every
information which is related to need and wants identification of customers. All the same, it
would let Telecom plus to gain first place in market, hence the chances of monopoly will be also
grow.
Diversification- core concept of diversification is that Telecom Plus are selling their new
products into new market main objective of doing this is to enhancing or increasing revenue of
the company (MacLeod, 2013). This term is full of risk because if customers not like that good
then enterprise will fail in achieving new market and also in grabbing customers. Instead of this,
if same association are doing diversification then they have to do market research. Thus,
Telecom Plus can identify need and wants of customers. When there is equal balance between
risk and rewards, then only marketing strategy can be successful.
TASK 2
P3 Potential sources of funding available to businesses with benefits and drawbacks of each
other
For starting a new business there is requirement of funds or also for expanding also.
Finance is the backbone of enterprise without this no business can survive in market. When
Telecom Plus have proper finance they can compete with several adverse situations in effectual

way. Their are several ways through which company can raise finance. Some of them is given
below:-
 Investors- every organisation have several and large numbers of shareholders and
investors through these company can improve its financial capital. Telecom Plus want to
expand their business then there is requirement of funds which is generated through
investors (Moseley, 2013). Through this firm gain competitive advantage and growth in
specific time period. Main advantage of this is individual cannot bear all the losses and
risk along through several investors it is divided into different peoples. Along with this,
same activity also have disadvantage that shareholders take control of entries activities
and business operations.
 Personal savings and assets- every organisation have its personal savings and assets
which is important for dealing with any adverse situation. If owner have savings then in
urgent situation there is no requirement of financial borrowings company can use their
own funds and assets. Benefit in this is that there is no requirement of taking any bank
loans and on that interest amount paying.
 Venture capital- this is important source of fund raising mainly for technology
companies because for them it is not easy to raise funds directly from capital markets. It
take 3 to 5 years in liquidation of all its investment. Major advantage company get is its
investors supports whereas, major drawbacks is venture capital require high amount of
investment as well can support by high level of bank debt within business.
 Bank loans- when there is no chances of raising funds then bank is last option for small
scale business. Apart from banks there are some financial institutions, government bodies
also who provide such financial services. Advantage of this is people get cash in hand
which they can use in their operation activities. On the other hand drawback is that, on
the loan amount bank will charge some percent of money named as interest.
 Public Issue- this is also a way through which company gain funds from primary market
by issuing shares and debentures by public. New business can bring its IPO(initial public
offerings). For managing this work organisation can take help of merchant bankers.
 Bonds Issued by institutions- there are several types of bonds which can be issued by
organisation. For example: Retirement bonds, growth bonds, index bonds, regular income
bonds, step-up liquid bonds etc.

 Business angels- main benefit of business angels is to gain long term investment and
share risks along with rewards (Schetke, Haase and Kötter, 2012). Whereas, drawback of
the same is, they control entire business activity which can hamper decision making
procedure of the organisation.
TASK 3
P4 Design a business plan
Every company have to prepare proper business plan for working of their and also
achieving goals and objective in effective manner. From the above discussion it is already clear
that business plaining is important for running business in smooth way and also in generating
more and more revenue(Todes, 2012). below mention are some steps which which is involved in
business plan:-
Executive Summary- Business plan is a conventional report of a organisation which
states which kind of efforts are made up in order to accomplish vision and mission. But it must
be considered that strategies have to be controlling, thus the chances of getting successful can be
enhance. In this project, Telecom Plus has frame a business plan in order to carry off all the
activities of organisation in correct manner and achieve business goals and objectives in a
specified time period.
Overview of company- Telecom Plus is the organisation who is dealing in
telecommunication services along with this it is listed in London Stock exchange. The same
company is founded in 1996 and they are using several marketing model for dealing with
customers in effective manner as well in attracting customers also. Products in which Telecom
Plus are dealing land line and mobile telephony, electricity, broadband etc. The overall revenue
of the company is £744.7 million and its operating income is £36.7 million. Telecom plus has
been capture 20% market share of overall telecommunication market (Ward, 2016).
Product and service – main services and products they are offering is related to
telecommunication such as GSM, CDMA, enhance data rates for GSM evolution, high speed
packet access (HSPA), Wi-fi, data networks etc.
Industry analysis- there are several forms of industry analysis such as SWOT and PESTEL
analysis. For identifying external and internal factors related to business environment. Because
the environment in which business exist is dynamic in nature.

Competitors analysis- for sustain in market there is requirement of competitor analysis.
For Telecom Plus there are several competitors such as Airtel, vodafone, Idea, Rcom and several
more.
Marketing sub-plan – marketing plan must be compatible which help in achieving long
term goal of business. Along with this marketing plan should be flexible and easily adaptive for
changing need and wants of customers.
Operation sub plan – manager of Telecom Plus have to plan their activities in such a
manner so that company can deal with external environment factors in effective manner. Along
with this manager have to utilise several tactics for performing all activities in proper manner.
Human resource sub plan – human resource department have to take care of all the
activities in such a manner so that they can achieve goals and objectives in proper manner. For
this there is requirement of training to enhance skills and knowledge of employees.
Budget - Later on, an annual budget is formed for deciding the amount which will be
spend on all activities. Below given is the budget of Telecom plus, it is stated as under: -
Particulars Amount
Paid search 44%
Search engine optimisation 54%
Video advertising 57%
Employees training 66%.
Liquidity : -
Financial sub plan – this is important because finance is backbone of organisation.
There are several sources through which finance and capital of company can rise i.e. bank loans,
venture capital, crowdfunding and several other.
Allocation of resources – resources should be allocate properly so that which department
require how much resources for achieving their goals and objective. Department can be Finance,
Human resource, marketing etc.
Critical measures – performance should be measured of each and every employee
working in company. So according to that suggestions can be given.
Milestone schedule – a correct item program is formed for all activities and tasks, At
last, the overall plan is communicated within organisation so that employees can aware about all

policies and strategies of the company. After the business plan is enforced it is on a regular basis
monitored by higher authorities so as to achieve finer future results.
TASK 4
P5 Assess exit or succession options for a small business with benefits and drawbacks of each
other
Every business owner need time for preparing their business plan for success of
company. For this organisation can hire specialist who manage entire activity in proper manner.
Apart from this is help in identifying several issues through which enterprise can make
appropriate strategies and also for dealing with negative issues.
 Options: owner of company have to look or kept in mind all the available options. So in
some situations like owner retire or die then also proper strategies and policies can be
implemented (Valler, Phelps and Wood, 2012). besides this, owner of the enterprise have
clear vision when they are transfer their business to some other; it assist in expanding
working practices or operations at worldwide level. Apart from this, the major drawback
is the person who is taking business may not be able to running business effectively.
 Candidates: for successful planning, candidates must have to be trained properly so they
can able to deal with several market situation. So that management can placed or hire
such qualified candidates thus business can run their organisation in systematic manner.
Benefit of this is company getting chances of expanding their business and because of all
such things don't affect business in negative manner. Although, its drawback is the
person who is taking the liability is not be fully able to work in an effectual manner.
 Evaluations: It is important for small scale enterprises to evaluate their current
performance or progress. The same also help in decreasing future risk and uncertainty
through appropriate policies and strategies which is made in effective manner. Whereas
demerit is if personnels are not trained properly then they cannot work in proper manner.
 Family: Family is the crucial factor which is playing a important role in running a
business entity in efficacious way. Family assist in motivating and encouraging
businessperson as they do not mislay their hope and execute efficaciously at workplace.

Apart from this, if family is not supportive then particular person can not inspire and
encourage to take hazard and challenges.
 Employees: these are assets of company for completing day to day activity of business.
Employees are liable for getting things done in better manner but when personnels are not
satisfied then this can give direct impact on growth and success of entire organisation.
 Partnership: when each and every member is doing their work honestly and in ethical
manner this will directly give impact on growth and diversification of business all over
the world (van Assche, Lo and Beunen, 2013). Moreover when partners are involved in
conflicts then in such situation they cannot focus on operations which directly decrease
market image and reputation of enterprise.
CONCLUSION
As per the description of preceding given report it has been conclude that digital
technologies plays most effective role in developing organisational performance at market place
so each business is focused on adopting highly innovative tools and techniques which are more
effective for enhancing organisational performance. In today's modern business era competition
has reached to a extreme level, so firms are concern on applying new tools and techniques in
order to generate high profit through increasing their productivity and growth. In this modern
business era each individual is based on digital technology and spend their huge time on
improving their living standards. It is the fundamental responsibility of firm or its higher
authority to ascertain new market trend which have effectively impacted on market place and
influencing customers preferences and wants.