Strategic Planning and Growth Opportunities for TXO System Limited

This report provides a comprehensive analysis of business planning and growth strategies for TXO System Limited, a telecommunications company. It begins by outlining key considerations for evaluating growth opportunities, including resource capabilities and core competencies, and then delves into competitive analysis using Porter's Generic Strategies and external environmental factors via PESTLE analysis. The report explores the Ansoff growth vector matrix, identifying strategies like market penetration, product development, market development, and diversification. It further examines various funding sources, such as bank loans, and their respective benefits and drawbacks. The report also includes a business plan overview and discusses exit or succession options. The content is intended to guide TXO System Limited in making informed decisions to achieve its business objectives and sustain growth in the competitive telecommunications market.

Planning For Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P 1. Key considerations for evaluating growth opportunities for the organization.........................3
P.2 Ansoff growth vector matrix identifies the growth strategy to retain in market. It includes
the following four strategies ......................................................................................................7
P3 Various sources of funding with benefits and drawbacks ....................................................8
P4 Business plan ......................................................................................................................11
P5 Exit or succession option.....................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
For any business it is very important to have an effective planning which can help them
in growing their business in the market and helping them in achieving their goals and objectives.
Planning also is also involved in the creation and maintenance of a strategic plan which requires
conceptual skills of their employees working there. For any organization it is very important to
have a proper planning and management whether it is a small or big business. It is important for
the company to do a lot of planning before implementing any new ideas into the management
system. Having an effective planning helps the organization to manage their work effectively.
Planning business is a systematic procedure which includes various steps, such as, organizing,
staffing, directing and controlling employees and management of organization.
Present report will focus on various topic related to the planning of business of TXO
System Limited to work effectively. In this it will describe about various key considerations
which is used for the evaluation of growth opportunities for the organization in the market. It
will also explain about different sources which is available for funding their business planning in
the market. Apart from these it will also discuss about the business plan for the company and
various ways which can be used for the exit or succession options for any business.
MAIN BODY
P 1. Key considerations for evaluating growth opportunities for the organization
TXO System Limited is a telecommunication company which provides professional
telecom asset management services and consultancy to their customers to enjoy their services. It
is very important for the organization to maintain their core competency in order to work
effectively which helps them to compete with their competitors present i the industry. This is
also crucial for TXO system limited to maintain their business environment. For growth of any
business, following key aspects should be considered, such as their resources and capabilities
and core competencies of their organization as it plays an important role in the making of their
business (Bridge and Dodds, 2018).

In the present market there are so many strategies which can be used by the organization
to increase their business and to in evaluating their strength and weakness which is very useful in
expanding the business. These strategies can include, porter generic which is used to identify the
competitive analysis and PESTLE analysis is used to understand its external environmental
factors which can affect them.
 Porter Generic Competitive Strategy: This is the strategy which is used to help TXO
service limited to effectively analyze their competitors that are present in the market. This
strategy can also be helpful in planning strategies which can enhance their overall
performance. As the organization is planning to bring some new plans in their service at
affordable price for their customers, this will help them a lot to study its market. The four
factors which is included in this strategy is explained below:
 Cost Leadership: This is the process which is used to increase their market by reducing
the prices of their products in order to attract more customers. This is an effective
strategy which will give positive impact to their business. Charging lower prices will still
help them in making a reasonable profit on each sale because of the reduced costs of their
packages.
 Differentiation: This strategy is used to provide products that unique from their
competitors by giving them some new and innovative products and services. It can be
achieved by implementing good research and development. It will help TXO in
delivering a high-quality products or services to their consumers (Porter's Generic
Strategies, 2018).
 Cost Focus: This focus strategy is related to the pricing strategy of their products and
services. The prices of their services should be accordingly which can be easily
affordable by their consumers. It will help them in increasing their customer rate and
profitability rate as well. Focusing on their cost can be very helpful for them in increasing
their business.
 Differentiation Focus: In this process, company focuses on different markets to deliver
their products. Their product or service should have some unique feature which can
attract their customers. This strategy often involves strong brand loyalty among
consumers.

For TXO service Limited Cost Leadership Strategy will be very beneficial if they apply
this into their system as they are planning to introduce a new package at affordable price to their
customers will give them a positive response. This will also help them to analyze their customers
needs and preferences which can be used in building this cost leadership strategy to get better
outcome (Porter's Generic Competitive Strategies, 2018).
 PESTLE Analysis of TXO Service Limited: This method is very useful for company to
understand different factors which can be highly crucial for them and can have a great
impact on their organizational functions. So, they have to follow these factors in order to
work properly in the market. TXO service Limited gives services related
telecommunication, so it is very important for them to analyze the factors which can
affect them while introducing new packages which will provide facilities like, broadband,
DTH and free calling (PESTLE Analysis of the Telecommunication Industry, 2016).
Political Factors There are various political which can affect TXO service limited,
such as,
Illustration 1: Porter's Generic Competitive Strategies
Source : (Porter's Generic Strategies, 2017)

 They have to follow various rules and regulation which is
mandatory for them to apply in their company.
 This is a big political fight between government, service
providers, and the people.
Economic Factors There are various economic factors which can affect TXO service
limited, such as,
 Changing pattern of interest rate, inflation rate and taxes has a
huge impact on their business.
 Increasing the usage of telecommunication resources.
 Recession can also be a huge reason of economic factor.
Social Factors: There are various social factors which can affect TXO service
limited, such as,
 Change in the purchasing pattern of their customers has
affected them a lot.
 Presence of huge monopoly in the industry (Kemp, 2018).
Technological Factors There are various technological factors which can affect TXO
service limited, such as,
 Working as a telecommunication industry it becomes very
important for them to update their system with the latest tools
and technologies.
 They should ensure that basic needs in smartphones, like
voicemail, caller ID and messaging are covered properly.
 They should provide their services which has latest and trendy
technology in them, such as, broadband facilities.
Legal Factors There are various legal factors which can affect TXO service
limited, such as,
 There are various legislation issues which can affect their
business.
 Policies related to different countries can also affect them in

importing and exporting of telecom products (Bryson, 2018).
 There are also many legal rule and regulation which has to
applied in the organization to work effectively, for example,
employment law, labor law, etc.
Environmental Factors There are various environmental factors which can affect TXO
service limited, such as,
 The major factors which can affect the is the change in
climate and global warming, which can interrupt their services
to reach customers.
 They should work according which is not affecting the
environment.
P.2 Ansoff growth vector matrix identifies the growth strategy to retain in market. It includes the
following four strategies
Market penetration (existing market + existing product)
Product development (existing market + new product)
Market development (existing product + new market)
Diversification (new product+ new market)
Market penetration
One of the important parts of success of TXO Ltd is its potential to keep price down to
capture the market. Market penetration includes selling of the same product to existing
customers. TXO Ltd retains its customers by finding innovative ways. Once company builds its
name, now its main aim is to penetrate and find out all topportunities that can be capitalized.
TXO Ltd has made a good reputation in terms of its functions. The company has to make
penetration strategies by enhancing its services and pushing product. For example: TXO Ltd
entered in broad band and fixed phone line market (Kemp, 2018).
Product development strategy
Development of market strategy includes the development of products and services. To
retain in competitive market, it is very important to create innovative products and services for
customers. The growth of development of market for TXO Ltd is possible. They offer goods
and services which are not sold in market. Product development includes the new product and

variation of innovative product to sell to present customers. An organization should lookother
ways to enhance the products and improve it if require. For example:,IPLC product.
Market development
Development of market means the developing the market by the existing services. Market
can be developed by targeting new market and fresh areas. In this market development strategy
company, company tries to sell more of the same things to the different people. TXO Ltd can
expand their market by identifying target and finding the new way to sell them. TXO Ltd can
find market by identifying the customer’s needs, lifestyle and preferences. Develoment of
market can be done by implementing the exciting pricing strategy, strong distribution channel,
brand building, etc. For example: TXO Ltd is also looking for overseas market. Company has
already made its presence in various countries (Kemp, 2018).
Diversification
Apart from market development strategies and product development strategy, TXO Ltd
has slowly switched to related diversification strategies to sustain the fast growth rate of the firm.
Diversification is also known as highest risk strategy. in this diversification strategy Company
tries to sell new product to the market. This move can be successfully done with the help of
marketing consultant of the TXO Ltd . Diversification can be helpful when company has a strong
supply chain management that can be easily adopted. For example: out sourcing with IBM.
TXO Ltd should go for the market development strategies where it can develop a new
market which expands its business to different countries. This strategy is a risk free
strategy,where the product is known to every customers If the customer wants to check product’s
efficiency, they can easily examine, with the help of customers feedback (Levy, 2016).
P3 Various sources of funding with benefits and drawbacks
The various sources of funding which TXO Ltd can use for meeting monetary
requirements are as follows -
Bank loan
For TXO Ltd private bank can be the good source of funding. Loans are provided by the
financial institutions. One of the financial institution is bank as well. Banks provides the loan on
the basis of security and some legal document. Loan is a very easiest and simplest form to
increase the source of funding. A str analysis is done by the bank of companiies financial and
futures plans to identify the debt servicing capacity of the company. In addition, if your company

is not doing well, it may protect your most important personal assets by declaring the bankruptcy
(Li, Mobin and Keyser, 2016).
Benefits
 The ownership position is not overtaken by bank.
 Once a loan has been paid off, the lender became obligations free. Interest rate does not change, in fixed rate loans for the life time.
Drawbacks
 Bank does not sanction the loan if there is no substantial track records.
 In some cases, there is a possibility to seizure of personal assets.
 Sometimes the high rates of interest can't get enough funding to meet business needs.
Overdraft
Bank overdraft is ttemporary credit facility to tbusinesses extended by bank to the clients
to take the fund more than in excess of balance. By providing this facility, bank charges interest
for the amount that is withdrawn by client. In bank overdraft, bank refrain time limit and timing
to pay back the excess money which is withdrawn by the client. Even if in account there is no
balance, you can easily withdraw the money. TXO Ltd can choose overdraft option to increase
its sources of funding (Mason, 2015).
Benefits
 Bank provides facility to review and adjust level of overdraft facility for short term basis.
 It tackles mismatch timing of the fund flow. There is less paper work and payment can be done easily.
Drawbacks
 The rate of interest is much higher than t loan in overdrafts.
 In overdraft, there is a risk of reduction in limit.
 If company fails to meet the payments of overdraft, then this facility can seize the assets
rigorous or other collateral.
Crowd funding
Crowd funding is small amount of capital from the individuals to finance new business. It
provides a vast networks of people through various social media platform and crowd funding
website to create a strong bond between investors and entrepreneurs (McLean, 2018).
Benefits

 Crowd funding is the fastest way to increase t finance with no beforehand fees.
 By sharing ideas with investors, provides a feedback and guidance forfurther working. Sometimes, investors become the loyal customers through the process of finance.
Drawbacks
 If the organization is unable to reach at the funding target, the pledged for finance will be
automatically returned to the investors.
 Crowd funding is done with the help of sites, and if your business is not registered under
the patent act, anyone can steal your concept.
 If project got failed, it will damage the reputation of business.
Peer to peer lending
Peer to peer lending is a method of financing the debt with colleagues for a short term. In
peer to peer lending, funds are raised without taking help from any financial institution or the
debt providing agencies. It is the fastest method of increasing sources of finance. In peer to peer,
there is not an involvement of third person in it, but it involves more time high risk and efforts
(Gielnik, Zacher and Schmitt, 2017).
Benefits
 It provides the choice for lending that means you will choose from whom you want to
lend to. It diversifies the risks.
Drawbacks
 The person who is giving amount, its money is at high risk.
 Time will be constraint in peer to peer lending.
Angel investors
Angel investors are those persons in an organization which provide a small amount of
capital to the business TXO Ltd can increase their source of fund by borrowing from the angel
investors.
Benefits
 Angel investors do not need any kind of collateral security. It does not need any repayment.
Drawbacks
 It takes time to find appropriate business angel investors.

 It requires giving the part of shares ofbusiness.
Therefore, two best sources of finance for TXO Ltd is angel investors and bank loan.
Both the sources are easy. Through the same, company will easily get the fund,without less
efforts.
P4 Business plan
TXO is going to launch a new product and services in one package . To expand its
business more effectively, TXO has decided to come up with innovative idea named Msop plan
I.e many services in one package. This package includes broadband with high 4g speed, DTH ,
lifetime free calling.
OVERVIEW
The TXO system ltd is the telecom asset management company. It was founded in 2005
in the UK. TXO deals with the telecom assets. It provide the technically sound and dedicated
project management of telecom network (Hollander, 2017).
VISION
 The vision of the TXO ltd is to provide dependable , secure, and good quality
converged telecommunication services twenty-four hours, at every place for an
accelerated comprehensive socio economic development.
Mission
 The mission of the TXO ltd is to provide a seamless coverage specially in remote areas.
 To create comprehensive knowledge in the different areas through multiplication of
affordable, and high quality broad band services across the nation.
 To make UK the global hub for telecom equipment producing.
 To create a career opportunity for the youth.
Marketing plan
For marketing plan TXO has gone for the 4Ps i.e product, price, place and promotion.
Product
Product includes both goods and services that is seems to met a customers needs and
demands. TxO is one of the leading companies in UK. TXO gives a different type of telecom and
internet facilities to its users. There are some product offering of TXO in its marketing mix are
landlines, (TxO landlines , PCO, Telephone facility , value added services etc.). the world class
infrastructure currently serving more than 20 million customers who used landlines broadband

services etc are set up by the TXO ltd. Currently TXO is focusing on the improvement of internet
service by increasing the range and building the tower closed in one area. The product strategy of
TXO is to grow and expand its technology with the innovation (Perkowski and et.al., 2017).
PRICE
The pricing strategy of the TXO ltd is very cheap. It is providing all the facility in one
package, with comparatively low rate than competitor. It also does not take the installation
charges
TXO LTD provides a specific offers to its customers.
Place
TXO ltd is one of the oldest telecom company which has established its network across
the world. For smooth functioning, it has divided the areas with 30 circles to keep an eye on that.
To deal with the customer problems TXO has opened the call centers in various places in the
world.
Promotion
The various mediums of promotion are used by the TXO ltd such as TV, prints, media,
hoardings etc for advertising. Txo have lots of customers, and it does promotion in very limited
way. To deal with competitor, it keeps on changing its logo with innovation, with growing digital
era it has also started the use of social media platform with few promos on it.
SWOT
Strengths  TXO ltd has high brand visibility
 TXO introduces the good value added services like , online
recharge , bill payments.
 TXO has the selling capacity of 38 million per annum.
 Large number of subscriber of TXO.
Weakness  TXO had to face the if there is an allegation from users.
 Having limited market share from other telecom players.
Opportunities  TXO can expand its cellular market.
 Due to the strong presence, latest and cheap cost technology can be
used (Pugalis and et.al., 2016).