Teleducation: Report on Growth Strategies, Funding and Business Plan

This report examines the growth strategies and financial planning of Teleducation, a small enterprise providing educational and training tools. It begins by identifying key considerations for evaluating growth opportunities, including the use of digital technology and competitive advantages. The report then applies Ansoff's growth vector matrix to analyze market development, market penetration, product development, and diversification strategies for Teleducation. Furthermore, it explores potential sources of funding, such as equity finance, debt equity, and peer-to-peer lending, evaluating the advantages and disadvantages of each. Finally, the report addresses the development of a business plan for growth, incorporating financial information and strategic objectives, and discusses exit or succession options for small businesses, outlining their respective benefits and drawbacks. The report aims to provide a comprehensive overview of the factors essential for Teleducation's sustainable growth and success in a competitive market.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities.......................................................1
P2 Opportunities for growth applying Ansoff’s growth vector matrix.......................................3
TASK 2............................................................................................................................................5
P3 Potential sources of funding available to businesses.............................................................5
TASK 3............................................................................................................................................6
P4 Business plan for growth that includes financial information and strategic objectives.........6
TASK 4............................................................................................................................................8
P5 Exit or succession options for a small business and benefits and drawbacks of each..........8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
In business growth is regarded as magnification as well as broadening in operations and
activities. It is main aims of company to enlarge its business operations in an economy in order
to generate more profitability. It is essential for business to develop growth related plan
activities in order to carries them systematically. In this, planning plays necessary role in growth
and success of business activities. It is helpful in identification of factors and also develop better
policies on the basis of market conditions (Brinckmann, Grichnik and Kapsa, 2010). This present
report is based on Teleducation. It is a small enterprise which provides educational and training
tools. As this organisation takes in context for the purpose of bidding. Under given report
mention about key consideration from examining growth related opportunities. Potential
sourcing of available funding to business and also drawbacks and benefits of every sources will
be mention in this given report.
TASK 1
P1 Key considerations for evaluating growth opportunities
Teleducation is small size firm and it deals in offering effective training tools. It provides
tools for educational and training tools to institutions and community centres. Its objective is to
expand the business activities along with operations by innovation educational tools like
projector, video editing software etc. It will be helpful in capture the large market share and also
achieve competitive advantage. For development of business, it is necessary for Teleducation
organisation to determine internal and external factors. In context to this, attracting more
customers towards its training and education tools is helpful in enhancing sales along with profit
level. From enhancing profit, there can be more growth related opportunities achieved by
companies. Through planning, Teleducation organisation can achieve its objectives related to
various aspects such as funding sources, execution of digital technology, factors available at
market and many others (Chapin, 2012). Planning gives better opportunities to business
concerned to process and also policies that guide the staff members towards attaining tasks.
Digital technology helps business firms to increasing productivity of business in significant
manner. Execution of digital technology helps in contribute towards growth of small size
business and it gives better opportunity to firm for manufacture new services. There are some
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growth related opportunities available for Teleducation organisation to execute digital
technology given below:
Competitive benefits- Under this, there is a need to management of Teleducation firm
to develop better plan related with execution of digital technology in business to perform all
functions. Each department of this firm got advantages because of using advance technology. In
context to this, there is an opportunity to production department to make improvement in
education and training services (Christofakis and Papadaskalopoulos, 2011). It helps in attract
large number of consumers towards firm. On the other hand, marketing function has an
opportunity to develop and adopt the modern technology to interact with people such as internet
and social media. In this present time period, every person is connected with social media from
all over the world. So, it will be easy to firm to use social media in business. These all
developments will be helpful for Teleducation to perform in better way as comparison to its
other competitors and achieve the competitive benefits at market place.
Collaboration- It refers to working action with some one in order to manufacture
something. In this, there are many growth related opportunities available like joint venture,
strategic alliance, merger and acquisition etc. From this, firm can joining hand with the other
whose performance is better at market place and use advance technology in business.
Market and consumer research- It is necessary for company to conduct the market
research on continuous basis. Research is helpful for business to determine needs and demands
of consumers. Through this, company can develop the long term plan for getting advantages in
future.
New services or products- Execution of digitalization in business is helpful in make
improvement among the staff members and develop positive relation with consumers. Before
develop the new services, it is necessary for firm to know about the current trends. It will be
helpful in develop new services in education and training sector (Coale and Hoover, 2012). In
new services,company should make some innovation so that more people can be attract towards
it. Through this, sales and profit of Teleducation firm will be enhanced.
Hence, these all main considerations which give methods to firm to achieve the future
growth in competitive market. Teleducation execute all give factors in business to accomplish set
objectives and aims which contribute towards achieving competitive benefits from its
competitors.
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P2 Opportunities for growth applying Ansoff’s growth vector matrix
Ansoff growth matrix refers to strategic planning tool that gives framework in order to
help senior managers, marketers and executives to devise strategies for future business
development. There are many different growth related opportunities available towards firm by
execution of digitalisation in business operations. Teleducation company has better opportunities
to make its products innovative and make quality of education tools better In order to determine
growth opportunities, Ansoff growth matrix plays a necessary role (Eddleston, and et. al., 2013).
Business is effectively facilitate with better chances to target the new market and based on
suitability to choose one that can enhance productivity of business. In this, opportunities are
analysed through include all those factors which are necessary for business. There are different
expansion strategies provided through Ansoff growth matrix for Teleducation given below:
Market development: IT is first strategy for growth provided through Ansoff matrix.
Market development means to enter in new market with present offering of firm. In this,company
sell its current services at new market place with a motive of achieving success. Under this, firm
can get many opportunities to increase its brand image in competitive market. As comparison to
other strategies, it is not more risky. Its main focus on maximise market share through adopting
better market related strategies. It will be helpful in increase the consumers value. In order to
this, market development strategy can be explained in term of increasing in geographical
distribution of services of company. In regards to Teleducation, it starts providing its services in
London, United Kingdom. Now, it can start its other store in other United Kingdom area by
following effective marketing tactic.
Market penetration- It refers to selling crevices and product in particular market in a
successful manner. In involves activities which are used to enhance market share of specific
service. Under this, market share and product are one under which firm is exist currently. It
states that sell large number of services and products at existing market. Company motive is to
enhance sales by providing current services in present market place (Foglesong, 2014). In
context to this, company can promote its goods with a motive of capture attention of consumers
towards services. Teleducation is small size firm and it gives education and training services in
market of United Kingdom. This firm performs well in London by applying better promotional
programmes. This will be result in increase sales for company.
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(Source: Ansoff matrix, 2018)
Product development- It is concerned with developing product will will provided to
current consumers of firm. Teleducation is focus on providing better training and education tools
so that every person can connect with the each other in world. There is no requirement to replace
the current offerings and also can be add some additional features which can attract consumers.
In context to this, it helps business to increase operation scale and give effective growth
opportunities (Hough and et. al., 2010). This growth strategy is helpful in attract large number of
consumers and retain existing at market place. For developing new services, Teleducation use
advance technology in business to make services better.
Diversification- It refers to process of firm varying or enlarging its product range or
operation field. It is necessary strategy and helpful in developing business operations as well as
achieve the competitive benefits. Teleducation adopted this strategy to give the diversified
services which helps in interacting people with each other. Diversification strategy gives chance
to business for fresh start. In context to small firms, this strategy is regarded as least preferred
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Illustration 1: Ansoff growth matrix

and risk oriented approach. Under this, there is more risk involved as comparison to other growth
strategies. Teleducation can venture in new market through providing training and education
tools to large number of people.
TASK 2
P3 Potential sources of funding available to businesses
Finance is regarded as most necessary component for firm. It assures that operations of
business are to be run in error- free as well as smoothly. In order to conduct business activities,
there is a requirement to Teleducation to manage funds (Keough, 2015). United kingdom
government formulate different strategies or policies to operate activities and operations of small
firms. Government provides some amount to small size organisations so that they can start their
businesses. Through this, they can gain long term advantages in easy manner and also retain at
market place for long period of time. It is essential for entrepreneur to find out the better funding
sources with motive of operate activities of business systematically. Teleducation is bidding for
Community Learning Project & Partnership. As Teleducation is small company so there is a
requirement to borrow money for finish contract because it has been £20,000 to invest and
required to borrow amount of £2,60, 000. Under this, there are key sources by which they can
keep proper funds to finish contract of Teleducation given below:
Equity Finance- IT is a finance forms and main objective is to increase capital through
selling the ownership rights of business ( Li, Mobin and Keyser, 2016). As comparison to debt, it
is more preferable and beneficial.
Advantages
Minimum burden on members- This benefits is availed under this source of increasing
capital. Being burden of profitable business is shared through new developed equity
stakeholders. If business will earn more profit then it will shared through owners.
Creditability risk- If in case businesses do not posses correct creditability in order to avail
the finance from debt sources then in this case equity is more effective.
Disadvantages
Conflict- Under this, equity shareholders intervene in operations of business that change
manner under which functions are to be conducted in firm. It will make changes in working
styles and vision which leads to conflict in firm.
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Share profits- It is a min drawback and under this profit is earn through firm and it will
be segmented between owners in set ratio (MacLeod, 2013). Teleducation is more profitable
business and there is a responsibility to segment current members.
Debt equity- It is more preferable income sources and can availed through small firm. In
this, debt investors do not contemplate rights in business functioning except for situation like
winding up and bankruptcy of business. It is long term loans availed through from from bank.
Advantages
Tax advantage- Debt sources is helpful in giving the tax benefit. Amount paid in interest
form is tax that is deductible which assures about the declines of business.
Retain control- It is other advantage facilitated by the debt funding. Individuals which
manage firm able to run business as well as decision making.
Disadvantages
Collateral- It is a main disadvantage for selecting this approach that there is a
requirement to business to deposit the collateral security to the banks in context to use finance.
Qualification- It is related to credit score that stimulate business to provide loans.
Teleducation firm dominate to renowned name so it is complex to arrange money for this
(Mehmet, 2014).
Peer to peer lending- It is beneficial method and concerned to the debt financing as firm
in order to borrow funds without executing and also using any type of institutions. It helps in
minimising middle person involvement but it consist more time as well as risk.
Advantages
It is fast and easy procedure because it deals through online process of application, it
involves minimum rate of interest as comparison to the traditional institutions.
Disadvantage
It provides minimum finance as comparison to financial institutions and other banks. It is
not valuable than the credits which enhanced rate of interest rates.
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TASK 3
P4 Business plan for growth that includes financial information and strategic objectives
Business plan refers to document that consist operation and financial objectives of firm.
This entails detailed plans as well as budgets which displays about achieve future objectives and
aims. Business plan is helpful to identify practicality of business model.
The top management prepare business plan and manager works on implementing that
plan at workplace. In context to make improvement in producing educational and training tools,
management of Teleducation company develops plan (Mitchelmore and Rowley, 2013). In this,
before prepare business plan, there is a requirement to firm to conduct investigation in market in
order to getting accurate and relevant data. Under this, there are stages involved in business plan
mention below as above:
Overview of company- Teleducation company deals in the education and training. The
size of this firm is small and it provide its services in London city. This company is going to
assistance for bidding for Community Learning Project & Partnership.
Product and service- Generally, this Teleducation firm provides training and education
tools such as mobile applications, video editing software, projectors etc. to community centres
and also institutions. These are helpful in provide better training to students in context to enhance
their skills and abilities in better manner.
Mission and vision of company- Mission statement of Teleducation company is to
provide the better quality of training and education related tools to institutions (Olesen, 2014).
On the other hand, vision statement of this firm is to educate people in all over world.
Strategic Objective: To ensure proper providence of quality training and educations tools
according to their needs and the trends present in market to improve their market base by 20%.
Situational analysis- It includes collection of information and data regarding strengths,
weaknesses, opportunities and threats.
Strengths
 Its main focus on enhancing education level of people by offering them effective
quality tools.
 Well established at market place and also better brand image.
 It has an ability to deal with change.
Weaknesses
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 Teleducation company does not have much funds.
 It uses obsolete technology in business.
 It provides its services in limited area.
Opportunities
 Teleducation firm has an opportunity to expand its business in other areas or
countries.
 It can adopt and use new technology in business to make some innovation.
Threats
 Regulatory and tax structure.
Budget
For doing an internal analysis, there is a need to manager of Teleducation firm to develop
better plan for identify amount to spend on various activities (Pallagst, 2010). If budget will be
proper then in this case, firm can conduct all activities in better manner. Budget of Teleducation
mention below:
Particulars Amount
Marketing activities
Advertising 40000
Direct selling 25000
Sales promotion 10000
Total 75000
Cost of service
Training tools 5000
Educational guides and booklets 2200
Creation of platform for simulation 3500
Total 10700
Resources allocation- It is important for manager of Teleducation to allocate various
resources which are needed in context to execution of business like technical, manpower, human,
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funds etc. Firm should have all resources in properly so that plan can be implemented in
systematic manner.
Implementation of plan- It is a last stage and under this, whole business plan is to be
regulated with firm through interacting with all staff members. At the time of implementation,
management of this organisation include all employees (Todes, 2012). In context to this, it will
be helpful in make required modifications in plan on the basis of current market trends and needs
and demands consumers.
TASK 4
P5 Exit or succession options for a small business and benefits and drawbacks of each
In this modern era, succession and exit both are necessary for each business company and
also based on organisational position and performance. These both plays necessary role in firm.
Companies make profit for the purpose of successful at market place (Valler, Phelps and Wood,
2012). Exit plan of business with benefits and drawbacks mention below:
Acquisition: It is a min exits strategy adopted through business at the time of looking to
exit from market. In this, it is necessary to search the right acquirer. In context to this, acquisition
is buy of single company through other.
Benefits
 Under this, company may select acquisition as route for gaining competencies as
well as resources presently not held.
 It helps in minimize the entry barriers.
Disadvantages
 The main limitation of acquisition is unrelated diversification.
 It may cause distraction from the operations.
Liquidation: It refers to winding up company through selling its assets to transform them
in cash in order to pay unsecured creditors of company. Under this, decision can be developed
through managers or owners of business (Wu, 2015).
Advantages
 It is natural and easy process.
 In this, invested funds can focus on develop new business related opportunities.
 There is no restructuring and redundancy cost involved.
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Disadvantages
 There is a need of repaid the loan accounts of directors.
 Assets of business can not sustained.
 Productive teams and staff can be lost.
 It will result in reducing goodwill of Teleducation firm.
Development of employees- In an organisation, staff members plays a necessary role to
achieving objectives and enhance productivity with in given time period. There is a requirement
to provide training to employees and developed them for increase their performance. Firm can
provide incentives as well as rewards to assure that tasks should be carried out in better way
(Ziari and et. al., 2012).
Advantages
It can facilitated through business by adopting advance technology that will be helpful in
provide competitive advantage to business at market place over strong rivals.
Disadvantage
If firm will not use advance technology in business then in this case it can develop
negative impact. On the other hand, if services are not according to demand of consumers then it
can hamper on reputation of company.
CONCLUSION
It has been concluded from the above given report that planning for growth is an
important aspect for small size firms. Before plan about the future, it is necessary for company to
measure internal as well as external environment to develop better policies. Under this,
Teleducation can use technology in business to gain competitive advantage as comparison to
other competitors. Under this mention report studied about the business plan for growth that
consists strategic objectives and also financial information for scaling up business. In this, firm
used Ansoff’s growth vector matrix to determine better growth related opportunities.
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