Growth Strategies for Telecom Plus: A Business Report

This report provides a comprehensive analysis of growth strategies applicable to Telecom Plus, a telecommunications company. It begins by outlining key considerations for evaluating growth within an organizational context, emphasizing the impact of digital technology. The report then delves into the application of Ansoff's growth vector matrix, exploring market penetration, market development, new product development, and diversification strategies. Furthermore, the report examines potential funding sources available to businesses, detailing their respective benefits and drawbacks. A significant portion of the report is dedicated to designing a business plan and assessing exit or succession options for a small business, with a focus on Telecom Plus. The report concludes with a summary of the findings and recommendations for sustainable growth and strategic decision-making.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth in organisational context and their impact on
digital technology........................................................................................................................1
P2. Ansoff's growth vector matrix for evaluating opportunities for growth ..............................3
TASK 2............................................................................................................................................6
P3 Potential sources of funding available to businesses with benefits and drawbacks of each
other.............................................................................................................................................6
TASK 3............................................................................................................................................7
P4 Design a business plan...........................................................................................................7
TASK 4..........................................................................................................................................10
P5 Assess exit or succession options for a small business with benefits and drawbacks of each
other...........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Now a days, every business organisation is focused to plan all its activities and operations
in order to perform effectively in the target market. Small business organisations are now
becoming a growing industry in UK; but such firms do not have high sales volume. Planning
factor is really helpful for business organisations in gaining long term growth and success. It is
fundamental for small scale industries in order to extend at global level in a certain time period
(Barbour and Deakin, 2012). Planning for growth gives strengthen to all business activities and
operations. Telecom Plus is the chosen business entity in this present assignment; it deals in
electricity, land line, gas, broadband and mobile services to public. Firm was regulated in the
year 1996 and its overall revenue is £744.7 million. Apart from this, assignment will describe
key considerations to evaluate the growth opportunities. Furthermore, different sources of
funding for a business will also be included in this report.
TASK 1
P1 Key considerations for evaluating growth in organisational context and their impact on digital
technology
Growth and development is the major key factor for every commercial entity that has
taken into account by the top management. Business expansion is the only one thing that aids a
firm to grow and diversify at vast level so as to generate high sales revenue and profitability.
Apart from this, growth could be a risk and uncertainty, therefore managers have to plan their all
strategies and policies so as perform effectively in target market. There are different
considerations defined that are used by every organisation in order to achieve high growth and
advancement (Beatley, 2014). Some of these are:
 Market share – It is the basic element that is considered in planning process. Every firm
wants to increase its market share and grab high competitive advantage rather than its
competitors. It is also helpful in bringing customers by supplying them new and unique
products. Along with this, to create comprehensive image of market and accomplish
strong position, some aspects have to be analysed, such as who are the targeted buyers of
Telecom Plus. It can be done through market research towards clients who are provided
with cloud services, bandwidth network and other IT services. It help in increasing the
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profitability and productivity of the company and help in achieving the growth of the
firm.
 Profitability – In order to expand the market area, companies also tend towards joining
other businesses. It is accessible in enhancing the market share of the firm as well as the
decision making process. Small business enterprise like Telecom Plus are improving its
profitability through partnership, franchising, joint ventures, mergers and acquisitions.
For example- by successful franchising, business organisations can easily promote
themselves in the international market and bring numerous customers. Apart from this,
with the assistance of merger and acquisition, strategic alliances can be made by two
business entities through in a pervasive manner (Chen and et. al., 2014). It will be
helpful in delivering high quality products to customers and improvising the
manufacturing procedure of company. Secondly, it can also reduce the workload by both
organisations which will contribute in making relevant decisions or conclusion as well as
optimum allocation of resources. At last, if employees are working with other colleagues
then it can also improve their skills and knowledge in a particular field. This help in
making improvement in the profitability of Telecom plus and positively affect the growth
of the firm.
 Advanced technology – In this modern era, small business organisations like Telecom
Plus are adopting new tools and techniques for the production. It aids them in gaining
high growth and profitability in an effective manner. Customers are also attracted
towards new technologies which give them higher level of satisfaction. In firm's context,
it has been obtained that companies are moving towards digitalisation and adopting IT
sources for the production process. Therefore, the firm has to provide certain services, i.e.
cloud services and many others. It helps companies to be succeed and grow at
marketplace by improving their business practices. This encompasses with high amount
of funding as per small business enterprise but it is proved as worth due to effective
outcomes after transforming company into digital working environment. In Telecom
Plus, it is most important and beneficial for the growth and development of the company
because in current time most of the organisation use advance technologies so that they
can make improvement in their business and it is helpful for the growth of the firm.
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 Diversification – It is also an imperative method of gaining high growth and proficiency.
Diversification is the method in which companies are moved in the new market with its
new products. But, there is a risk of getting failure as if customer would liked or disliked
the new products of the company. Along with this, diversification helps small business
organisations like Telecom Plus to grab market opportunities in a certain time period.
Although in encompasses various issues because of lack of resources. But firms can
easily achieve growth if business strategies and policies are well planned and analysed in
a systematic way (Wu, 2015). In diversification, risks can come through different sources
such as lack of finance, customer’s perception, etc. It is also an appropriate component
which is effective for the development of the firm by using various methods.
Therefore, if Telecom Plus is adopting all these key considerations then it can easily
achieve its goals and objectives within certain time period. There are certain digital technologies,
with this changes can easily made in the nature of working process of entire association. It also
reduces work stress of management and increasing performance level or productivity at
workplace.
P2. Ansoff's growth vector matrix for evaluating opportunities for growth
In order to grow and diversify in the target market, there are different techniques used by
companies by which their operations can be made more effective and appropriate. This aspect is
assistive in doing things in a corrective manner towards growth and development of organisation.
Besides this, growth is also related with risk or uncertainty which cannot be controlled. Thus, to
deal with this situation, management needs to develop an action plan and adopt imperative
strategies. Business environment has various opportunities that help in the enhancement of
annual turnover and sales. Therefore, small entities can use a variety of planning tools such as:
 SWOT analysis
 PEST analysis
 BCG matrix
 Ansoff matrix
In this, ansoff matrix is the most suitable technique in order to deal with future situations.
It aids in ascertaining business goals and objectives within stipulated time period.
Ansoff's matrix: - Ansoff's matrix is strategic planning that renders hypothesis to
management and improving the effectiveness of working activities. It develops enforcement
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within organisation cultural so that all people can work accordingly. In other words, Ansoff's
matrix is the base that is generally in order to compare the relationship between marketing
strategies as well as general strategic directions (Eddleston and et. al., 2013). In context of
Telecom plus, this matrix works as a marketing planning tool so as to gain high proficiency and
growth. It suggest a business how to grow in market either by new products or by existing
products. Ansoff's matrix is classified into four categories, such as-
(Source: Ansoff Matrix,2015)
Market penetration – As per this context, small business organisations can growth its
market share through offering in its current market by using imperative channels of promotion.
Its main objective is to find out new customers and provide them qualitative products. Telecom
plus is presently supplying its services into its existing British telecom market. Along with this,
market penetration strategy can maximise the market share of the company. For example- current
products could be supplied by sales promotion, advertisements, competitive pricing strategies
and other ways that are related with personal selling. Market penetration strategy can also driven
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Illustration 1: Planning tools and technqiues

out competitors; in this context market should be restructure and management need to make a
promotional campaign that reinforcement by certain pricing strategies.
Market development – It is the procedure in which business are identified new markets in
order to sell its products and services. Tin this context, business organisation can launch its
offerings into geographical areas in order to grab more and more consumers over the world. For
example- Telecom plus can sell its products and services though online market. It also helps a
company to reach large number of customers. Along with this new market areas also increases
firm's performance level as well as productivity, so that it can easily produce at large level and
yield higher profitability (Galland, 2012). Market development strategy also emphasis on
attractive packaging. For instance- if Telecom Plus is designs impressive products and packaging
tools at new marketplace. Through which firm can be transformed into digital process. While
entering into new market, managers also have to look out pricing policies; product costs should
be affordable. Therefore, every customers can easily use and get its benefits.
New product development – The core concept of new product development is related to
generate something new and innovative for customers which gives them higher level of
satisfaction. Now these days, people only prefer to take those goodies which are unique or novel.
Furthermore, new product development approach devotes to achieve firm's goals and objectives
in an impressive manner. In this competitive business environment, it is necessary for telecom
companies to produce new products and modify the existing ones in order to attain and retain
customers for long term period. It helps in differentiating products from competitors for
remaining successful and competitive. It is fundamental for Telecom plus to develop a successful
product development strategy because it can affect on market share as well as the whole working
process. Before introducing any product in market, managers have to examine customers needs
and wants. For this purpose, research and development department is highly responsible for
getting detailed information about target and potential buyers. However, it would let Telecom
plus to get first place in market, hence the chances of monopoly will be also expand.
Diversification – In this element, new products are sold into new market. The prime
objective behind this is growing the revenue graph of the company. It relates with risk factors as
if Telecom plus does not have any experience of performing in new market as well as customers'
taste. After all this, if business organisations wants to endorse diversification strategy, then the
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firm needs to clearly analyse market trends so as to grab higher competitive advantage (Levy,
2016).
As per the above analysis it can be analysed that diversification is the beneficial for
digital companies and reach them into international level in a certain time of span. There should
be an equal balance among rewards and risks, this marketing strategy can be successful. In this
growth and development strategy, there are high risk but high growth is also.
TASK 2
P3 Potential sources of funding available to businesses with benefits and drawbacks of each
other
In order to establish a new business or to expand existing new ones; finance is the
fundamental aspect. It helps managers to deal with adverse situations in an effective manner.
Having strong finance is the life blood for every corporate association. So that , companies can
choose various ways of funding that are stated as under: -
Sources of findings: - Personal savings and assets : - If an organisation has its own personal savings and assets
then it can easily deal with adverse situations. Therefore, the acquisition costs of the
company also get minimise. Behind this, the major benefit is company's does not need to
take bank loans and pay higher interest rates (MacLeod, 2013). Major drawback is if
managers is utilised its all personal saving into business it will provided them huge
returns in future. Investors – If a business organisation has large number of investors or shareholders then
it can easily gain improve its financial capital. Investors take a certain percentage of
profits and then invest their money into business. For example – if Telecom plus wants to
expand its business then it generate money from its investors. Through which firm can
easily gain high competitive advantage and growth in a certain time period. It major
advantage is an individual does not need to bear all losses and risks; it is divided into
different people. Beside this, the disadvantage is shareholders puts a control upon all
business activities or operations. It can also hamper the decision making process of the
company.
 Bank loans – It is also an excellent way to raise business capital. In context of small
business organisation, they can take loan form, government and other private financial
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institutes (Moseley, 2013). Apart from this, for large scale business organisations bank
loan is given for mortgage like equipments, properties etc. Its major benefit it aids people
to keep cash in hand so that working operations can be managed in proper manner.
 Venture capital – Its major benefit is it can raise substantial amount and company get
advantage from specialists investor support. Its brings discipline for business
management and strategy. On the other hand, major drawback of venture capital it
requires high rate of return and investment often supported by a high level of bank debt
within business.
 Crowdfunding – It helps entrepreneurs get feedbacks and identify the validity of their
ideas whereas its disadvantage is crowdfunding may lead business owners to disclose
business details or intellectual property by exposing them to competitors.
 Business angels – Its major benefit are – long term investments and share risks as well as
rewards. Drawbacks of business angels are they put a control over the business which can
hamper decision making process of the firm.
 Share capital – It brings broader base of shareholders and equity rather than debt = lower
risks finance structure. Whereas its disadvantage is – equity cost is higher than debt.
TASK 3
P4 Design a business plan
Every organisations are required to develop a proper business plan so as to get higher
proficiency and market position. As per the above discussion, it has been clarified that business
planning is the important function; it would aids in diminishing all issues and problems which
are occurred while completing tasks or actions. In this perspective, management needs to prepare
a business plan so as to meet their basic goals and objectives. Through which, the current
performance of the company can also be analysed. Furthermore, the plan have to developed for
certain time of period and renewed regularly by higher authorities. Senior managers of Telecom
is prepared a business plan so as to boost up the current performance level of the company.
While developing any business plan managers have to do market research in order to get more
relevant and accurate information (Schetke, Haase and Kötter, 2012). It helps management to
align activities or tasks among all employees. Beside this, the core purpose of the plan should be
also determined in order to get better outcomes in future. Below mentioned are certain steps
which are involved in business plan: -
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Executive Summary - Business plan is a formal report of a firm which states which kind
of efforts are made up in order to achieve vision and mission. But it should be considered that
strategies have to be dominant, thus the chances of getting successful can be increased. In this
report, Telecom Plus has prepared a business plan in order to manage all working activities in
proper manage and accomplish business goals and objectives in a certain time period.
Overview of the company – Telecom Plus is one of the famous business organisation in
all over the world; it deals in telecommunication services. The firm is listed on London stock
exchange. Along with this, Telecom Plus was founded in 1996 and it is using multi level
marketing model in order to deal with customers in an effective model. The main products of
the firm is- 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.
Mission- The mission statement of Telecom Plus is to offer effective and reliable services
by making improvement in te quality of its products and services to its customers at reasonable
price according their requirements.
Objectives- The objectives of this company can be to increase 15% sales within 2 years.
Strategies
Market analysis- It is an strategy which can be used by the management of Telecom Plus
to monitor the needs and demands of the customers and markets to fulfil the needs and demands.
STP- It is another strategies which can be used by the management of the company when
they launch new product in new market. Then it help in identifying the target audience, making
segmentation and positioning of the product. This company make segmentation on the basis of
age, income, gender etc. In targetting, it target employees, adults, professionals, organisations
etc.
Product and service – The main services of Telecom plus are – GSM (global system for
mobile communications, CDMA (code division multiple access), enhance data rates for GSM
evolution, high speed packet access (HSPA), Wi-fi, data networks etc.
Industry analysis- There are various forms of industry analysis, i.e. competitors analysis,
SWOT analysis, PESTLE analysis etc. so as to gain maximum and relevant information about
external and internal environment of the company. Apart from this, while conducting industry
analysis, management of Telecom Plus needs to determine the vision and mission of the
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company. In this relation, the vision statement of the company is to make Telecom Plus a
dynamic organisation and lead over the UK's telecommunication sector through proliferation of
telecommunication infrastructure. Beside the mission statement of the firm is to serve the nation
with the latest telecom services at low costs without compromising the quality. In order to
achieve its vision and mission, Telecom Plus is focusing on boost up the quality of products.
Competitors analysis- The analysis is conducted in order to examine who are the major
rivals of the company and what are their strength and weaknesses. The main competitors of
Telecom plus are – Idea, Airtel, Vodafone, RCom etc. all of these are the leading
telecommunication industries of UK.
Situational analysis – In this stage, managers can examine the current market position of
the company. While doing situational analysis, managers also have to evaluate those factors
which can hamper firm's performance in future (Todes, 2012). It can be done through SWOT and
PESTLE analysis.
SWOT analysis of Telecom Plus.
STRENGTH
A recognisable brand name that enable to
attain and retain customers for long time of
span.
Another strength of Telecom Plus is- it has
over 40000 independent distributors. It also
handles over 5000000 customers' account.
Good sales team helps in dealing with
customers in an effective manner.
It services include land line telephony, Moblie
telephony, gas, electricity, broadband,
electricity etc.
The utility warehouse brand is the primary
engine of revenue generation for Telecom Plus.
WEAKNESSES
As a small business organisation, the firm does
not have large international presence.
Haven't implemented itself in emerging
economies.
OPPORTUNITIES
The number of competitors is reducing
THREATS
Credibility issues and sluggish economy.
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Rising income levels
Enhancement in purchasing because of easy
online marketing options.
Enhancement of e-commerce market and
efficient potential growth.
Threat of new entrants or rivals
Strict government laws and regulations.
Scope for increased competition.
PEST analysis of Telecom Plus.
Political factors
Due to political instability in UK, it is very
difficult for digital companies to perform in
international market. British government has
prepared new laws and regulations that can
hamper business activities and operations of
Telecom Plus.
Economical factors
These factors involves unemployment,
financial crises, interest rate etc. Due to
economic crises in 2008, UK's public is not
able to spend more and more amount on
purchasing luxurious things. It can affect
purchasing power of people and reduces firm's
sales and productivity.
Social factors
In this modern era, it is very hard to recognise
needs and wants of people. Customers now
these days are preferred to get those services
which gives them higher level of satisfaction
(Valler, Phelps and Wood, 2012.). Therefore,
telecom companies have to produce effective
products which can meet needs and wants of
people in an effective manner.
Technological factors
due to technological advancement, there are
several tools and techniques of production are
easily available in market. It gives strength to
business activities. But it is not possible for
small business organisations to adopt all new
technologies.
Marketing sub-plan – The marketing sub-plan of Telecom Plus should be compatible
with others. It must focuses on achieving long term goals – it has to be general and set a broad
framework for moderate term plans. Marketing plans are flexible and adapt to changing needs
and wants of customers.
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Operation sub plan – Afterwards, managers have to plan their activities and operations
so as to deal with external environment in an effective manner. In addition, managers also have
to use different tactics in order to perform all working activities and tasks properly.
Human resource sub plan – In this, management plans requirements of human
resources. They need to ensure that staff members have enough capabilities to meet performance
targets of the company. For this purpose, company can provide training to existing employees
and hire others who have new and innovative skills.
Budget - Afterwards, an annual budget is created so as to decide the amount which will
be spend on all activities. There is given a 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 : - It refers with flexibility and adaptability of the company. For this purpose,
managers have to adopt a proper strategy through which it will gain market growth and success
(van Assche, Lo and Beunen, 2013). As per the above mentioned, Telecom plus is using ansoff's
matrix. As it is small business so that the market share of the company is low. In this perspective,
firm can use limited market growth strategy.
Financial sub plan – In this stage, it is seen that company have enough finance or capital
to perform all activities. There are different sources of finance, i.e. crowdfunding, ban loans etc.
Allocation of resources – After deciding budget, management has to allocate proper
resources in order to work effectively in market. There are various types of resources which must
be involved in business plan, such as- financial, human, technical, physical. For example- for
getting more productivity managers can increase the capabilities of their human resources by
providing training and development assistance to people.
Critical measures – Managers have to measure the performance level of their employees
and then provide them suggestions accordingly.
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Milestone schedule – a proper item schedule is prepared 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 implemented it is regularly
monitored by higher authorities so as to gain better future results.
Tactics- It refer to those strategies which are used by the company to resolve short therm issues
and problems. In Telecome plus, there are various tactics which can be used by this company
like making innovation in existing products and services, use offer and discount pricing strategy
etc.
TASK 4
P5 Assess exit or succession options for a small business with benefits and drawbacks of each
other
Every business owner is devoted certain time in order to prepare a succession plan for its
organisation. In this perspective, management can hire a specialists who is capable to run
smoothly all business activities. It is also beneficial in order to find out hidden issues and make
proper strategies in order to deal with negative situations. Business strategies are concerned with
long term growth therefore it takes proper time.
Succession options Options – Firstly, business owners have to look out all available options. As if the owner
dies or wants to retire; in this case proper strategies and policies have to be implemented.
Along with this, business owners have clear vision when they are transferring their
business to another; it helps in exploring working activities or operations at global level
(Ward, 2016). Beside the major drawback is the person who is taking business may not
be able to running business effectively. In Telecom Plus, it can be beneficial for the
company because if there are various option for exploring activities related to work then
it help in the success of the firm. Candidates – In succession planning, all candidates have to trained properly who are able
to deal with all market situations. Beside this, management can also hire well skilled and
qualified candidates so as to take over the business and run it in systematic manner. Its
major benefit is that Telecom Plus is not getting affected and chances of expanding are
increases. Whereas its demerit is the person who is taking the liability of cannot be fully
capable to work in an effective manner.
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 Evaluation – It is essential for small business entities to evaluate its current performance
or progress. It helps in reducing future risks and uncertainty therefore appropriate
strategies and policies can be made in an effective manner. Whereas, the disadvantage is,
if employees are not trained then they cannot work properly.
 Employees – Employees are the one of the important aspect for every business
organisation; they are liable for getting things done in better manner but dissatisfied
employees can affect the growth and success of overall organisation by reducing its
performance level or production.
Exit option Liquidation- This bis the close up shop and sell all the assets exit strategy. For small
businesses especially those that are dependent on the performance of the individual,
liquidation is sometimes the only option as there is really noting have to sell. If Telecom
Plus suffer within this position then it want to spend some time retooling your business so
that it can be operated by others. It is beneficial because it is simple process but second
hand business asset values for items such as machinery and equipment can be very low. Family – The dream of various business owners to keep their in the family ensures that
the legacy lives on an provides a living for their hires. It is good because when the owner
exist form the business then they do not worried because their business in secure hands.
But the disadvantage of it is that family member may not have the skills to take over the
business.
 Sell to another business-It can be another option through which an owner can exit from a
business to sell own business to another. Business can be buy other businesses foa ll
kinds of reasons like expansion, realizing synergies from complementary business
activities and others.
CONCLUSION
From the above mentioned report it has been concluded that every business organisation
needs to focuses on its planning process. It helps them to deal with future situations and achieve
goals and objectives in an effective manner. Along with this, while preparing business planning
there are certain key considerations that must be followed by Telecom plus, such as-
diversification, profitability, market share, advancement of techniques etc. Along with this,
management can uses Ansoff's matrix in order to expand itself in market by providing new and
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innovative services to customers. There are various types of sources of funding are available,
like, equity, investors, bank loan etc. A business plan have to developed by small business
organisations in order to examine all activities and actions properly.
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