Unit 42 - Planning for Growth: Evaluating Opportunities and Strategies

This report, focusing on Unit 42 - Planning for Growth, provides a detailed analysis of business strategies and growth opportunities for HITECH.com, a British software program agency. It begins with an introduction to the importance of planning and then delves into a SWOT and PESTLE analysis of HITECH.com, evaluating its internal and external environments. The report then applies the Boston matrix and Ansoff's growth vector matrix to assess growth opportunities, including market penetration, market development, diversification, and product improvement strategies. Furthermore, the report explores various funding sources available to businesses, discussing their benefits and drawbacks, and culminates in the design of a business plan for scaling up a business, incorporating financial information and strategic objectives. Finally, it examines exit and succession options for small businesses, outlining the advantages and disadvantages of each approach.

Unit 42 – Planning
for Growth

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
P1. Analysing the key considerations for the purpose of evaluating growth opportunities and
justifying those considerations within an organisational context...........................................2
P2. Evaluating the opportunities for growth applying Ansoff’s growth vector matrix in the
context of Choosen Company................................................................................................4
TASK 2............................................................................................................................................5
P3. Assessing the potential sources of funding available to the businesses and discussing
about the benefits and drawbacks of each source...................................................................5
TASK 3............................................................................................................................................6
P4.Designing a business plan for the purpose of growth which includes financial information
and strategic objectives for scaling up a business..................................................................6
TASK 4............................................................................................................................................8
P5. Assessing the various exit or succession options for a small business explaining the
benefits and drawbacks of each option...................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Small and medium enterprises corporations do the complete designing of business system before
redirecting to the implementation stage. It is necessary for organisation to do the complete
planning which allowed the business to make a good summary of inner and external
elements which survive inside the business structure. This report is based on HITECH.com
which is a British software programme agency. The purpose of making this report is to
discuss on diverse stories of enterprise and various strategies that help the organisation in
booming of the small and medium-sized employer. Along with this it also include the value
of opportunity is for of growth by applying Ansoff matrix. It also helps in finding the
potential sources of funding which are available for business organisations along with their
benefits and drawbacks. As said earlier it is necessary to do planning before starting a
business, this report shows a business plan as well which communicator how the
entrepreneur intended scaling up a business.
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TASK 1
P1. Analysing the key considerations for the purpose of evaluating growth opportunities and
justifying those considerations within an organisational context
The internal judgement of HITECH.com
SWOT analysis can be considered as a a tool of marketing which helps the organisation in
knowing about the micro factors of environment of business organisation by knowing about the
strength weakness opportunities and threats of an organisation. Below mentioned is the SWOT
analysis of HITECH.com:
Strengths: the most important resource in HITECH.com is a power which comes from various
orders factories which make furniture as a coding to the Purchase of customer. This is
impartially huge for the organisation as these facts allows the agency for keeping the sources
and putting effective the virtual conversation which a factor in interacting with factories.
Weakness: Universal organisational structure is the basic weak point of the organisation. The
company has been operated by way of 350 personnel who give the invitation to the
competitors. For example Harvey is using the organisation structure for their business
operations (Ramseur and et. al., 2018).
Opportunities: Currently HITECH.com is using normal procedures for the purpose of running
the commercial business. They have opportunity for using the digital technology so that they
can get the special order also from their clients in order to become a good manufacturer.
Threats: It is necessary for HITECH.com to give the proper guidelines and Awareness of new
machines and their means various sources and organisational functionality so that the
organisation can achieve the goals and objectives in an effective and efficient manner. These
factors are necessary to analyse while launching any new task in the organisation (Wijaya,
S.E. and Imran, M., 2019).
PESTLE judgement of HITECH.com
PESTLE analysis can be considered As a tool which is used by organisation for the purpose of
knowing about various external and macro environmental factors which include political,
economic, social, technological, legal and environmental factors. Below mentioned is the
PESTLE analysis of HITECH.com:
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Political Factors: HITECH.com is planning to declare a brand new business assignment. For the
same they have to follow all the political state of affairs of United Kingdom which include
labour issues, new government policies and many more.
Economic Factors: The management of HITECH.com is planning to take loans from banks. It is
necessary to we collect the financial scenario of United Kingdom (Pendleton and et. al.,
2017).
Social Factors: It is a huge challenge for the organisation to do the growth of business of
furniture production which must help the consumer by satisfying their needs.
Technological factors: They are making profit bye by Outsourcing orders and it is required to
provide to recall the technological capability is for manufacturing.
Legal factors: The laws of United Kingdom state various uses of Technology and this company
is must following those aspects.
Environmental factors: It is well known that the producers are from China. The business
organisations are required to follow the environmental legal guidelines of the country.
Boston Matrix
The Boston matrix can be defined as a model which is used to analyse the collection of
businesses and brands. This tool is especially used in marketing and business strategy. Under this
matrix the collection of product can be analysed. Below mentioned are the key issue of a Boston
matrix evaluation of HITECH.com
Stars: At this stage, the organisation is introducing new product and the management require
higher investments for the purpose of retaining a better market share.
Cash cows: It includes that product which has a low growth and high market share. HITECH
Company is required to take the advantage of cash cow so they are required to manage their
profit by continuing generating the cash flow so that company can move to the stars
(Ouyang, Y. and Li, P., 2018).
Dogs: It refers to those products having low market growth and low market share. The
organisation has to minimise the varieties of dogs which are involved in the business.
Query mark: It include those products which are high in demand but it requires a lot of
investment for the purpose of growing market share for beating the competition in the
market. The product of HITECH.com cannot be shown to the client because of less
investment.
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P2. Evaluating the opportunities for growth applying Ansoff’s growth vector matrix in the
context of Choosen Company.
For the purpose of evaluating various risks of the business organisation, HITECH.com use ansoff
Matrix for the same. In addition to this the company use it for the purpose of increasing methods
which are required for expanding the business. Ansoff Matrix can be defined as another tool of
marketing which help the organization in analyzing the market and the product for the purpose of
development and growth of complete organization along with the product or services. It include
four stages such as the market penetration approach, improvement of the market, diversification
and product improvement.
Below mentioned is the explanation of ansoff of matrix in the context of HITECH.com:
The market penetration approach: This method is used by the agency HITECH.com which
leads to the reducing risk in coincidence by introducing more efforts to the promotional
factors of the organisation (Olesen, K., 2017). This approach is very strong for the
organisation as it helps in the improvement of share of product in the market by introducing
the penetration pricing approach. Along with this it is also concluded that HITECH.com is
continuously focusing on promotional approaches so that they can attract the customers
towards their product and Organisation.
Improvement of the market: HITECH.com is using various strong techniques of a market place
development which include Advertising and Marketing. Also, competition in the market is a
very powerful, show the HITECH.com is required to gain and apply all the techniques of
improvement of product for the purpose of beating the competitor Harvey (Nogués and et.
al., 2019). They should do focus on the techniques which are adopted by the competitor
which help the organisation in beating the competition.
Diversification: This approach involves the selling over new product in the new market.
Hitech.com is moving towards the new territories for the purpose of selling their products.
They are required to do the study of Marketplace for the purpose of analysing the taste of the
customer’s full stop so that they can present their product in the same order (Sutduean and
et. al., 2019).
Product improvement: For the purpose of smooth running and attracting the customers towards
organisation it is necessary to do some innovations. HITECH.com is making various
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changes in their present merchandise. It can also be called as product line extension for stop
they are required to do some changes in the existing product or should innovator new
product. While the organisation is doing work on international level it is required to use the
new era for using new techniques of manufacturing which save the time.
Final Results of the Evaluation
At the end of Ansoff matrix, it is concluded that the HITECH.com have to use various
approaches and it is necessary for them to do the complete research for the purpose of analysing
the capacity of risk which can come from the competitors (Jawaid and et. al., 2018). It also helps
them in doing some changes in the product. The organisation is restricted to invest the complete
capital only in the 1 assignment. So the organisation has to invest less and does research well of
the product and market so that they can attract the customers towards the organisation. The
organisation should have to assess the various elements such as a merchandising of the product
and extra focus on income approach which is coming from New Market. From the evaluation it
is also found that the penetration approach is the best approach for the organisation as it is a new
organisation and they are required to attract the customers.
TASK 2
P3. Assessing the potential sources of funding available to the businesses and discussing about
the benefits and drawbacks of each source
HITECH.com is a brand new business and the organisation is required to be careful while doing
the investment and observing the economic resources which furnish to the organisation by
adding some money (Wang and et. al., 2018). Below mentioned are the various sources of
funding which are available to business along with their benefits and drawbacks:
Lease Finance: most important external supply of Finance is Lease finance under which
corporations do primary supply in foreign two into the small and medium sized businesses
so that they can establish a new business. It includes the tax benefit which is supply to lessee
for the purpose of accepting rent for an asset in place of shopping for it (Garnaut, C., 2020).
It also works as a factor of motivation to them. The important benefit of higher finance is
that there is no need of guarantee. Also it provides a safety for supplying the Asset that has
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been purchased. The drawback can be considered as it may in close with the flow of coins
for the purpose of meeting ordinary payments.
Loans from the circle of relatives and friends: That money which is borrowed by relatives and
friends for the purpose of investing in the business is known as internal loans. The best
benefit of these types of loan is that there is no need of providing any safety while taking
loan; mortgage form can be seen as a casual. Maybe there is a difference in interest rate as
well. The limitation of this source is that it contain the bills for past times but it may get
difficult to pay the borrowed money back to them. Along with this it creates a higher
opportunity to friends and relatives to interfere in the functions of business.
Financial institution overdraft: It is another source of finance through which hitech.com can
borrow money. In the present date it gives a current account and the payments so that the
organisation can use it for investing purpose (Fernando and et. al., 2019). It is necessary for
organisation to remain aware about the Financial Institutions overdraft as it is not always
related to drift of cash. It is beneficial in that situation in which year the organisation want
money quickly. The main drawback of bank overdraft is that the organisation has to pay
back the money on demand and with interest free which may be different from other
sources. The Financial Institutions are also required security by taking mortgage of Assets of
organisation along with the personal guarantee.
TASK 3
P4.Designing a business plan for the purpose of growth which includes financial information and
strategic objectives for scaling up a business
Executive Precis: HITECH.com is a new and growing the group which is offering our customers
with furnishings and various shapes of home accessories to the customers of United
Kingdom and the customers from Europe. This organization was launched in 2010 with £2.5
million investment.
Commercial Enterprise Information: The headquarter of this company is in Shanghai China and
the management wants to expand their business for the goods in overseas markets. The
objective of this organization is to provide the entire shapes of commodities to the customers
with the best prices (Bekun, F.V., Emir, F. and Sarkodie, S.A., 2019). The founder of this
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organization is Being Li, Julien Callede, Chloe Macintosh. The annual turnover of the
business has been £7.4 billion in 2017.
Customers Premise: The manufacturers and sailors of a country are creating various types of
product to Shoppers and it works for attracting a huge level of Shoppers for doing
purchasing of these articles of furniture corporations. A report has shows that the British
manufacturers sold £17 billion to the Shoppers of United Kingdom.
Marketing Strategy: Since, it is a new and rising business so it is necessary to use specialised
promoting tools so that the customers come to know about the company and products. On
the other hand the expansion of organization requires money which is restricted the mostly
quantity of the monetary resources reserve almost £300000. It is only because of
management that they are properly utilizing their resources for the purpose of growth of
business.
Operations Set up: HITECH.com has set up a aim of business growth. It is a necessary to
perform all the operations in a good and effective manner in order to set up the concerned
personnel of organization which leads to the achieving of all goals and objectives of
business. Along with this organization have various desire to attain their setup (Armaghani
and et. al., 2020). The organization has taken £300000 for the purpose of growth of
business. This company must add some innovation styles dinner present catalogues which
helps in the promotion of organization to the success by a bigger client.
Resources and finance: This Company wants to grow the business and want to expand the
business growth. So it is necessary to Tu to get various resources which include premises for
running the operations. Along with this they also have option for taking loan from various
sources. The company has been done the investment of £300000 in the new project of
organization (Zhou and et. al., 2019). It is also analyzed that the current situation of furniture
business in United Kingdom is positive. It seems that the Shoppers of United kingdom are
desperately ready to pay the cash. Because of this it is restricted that the Shoppers have to
pay £17.7 billion for the purpose of buying and article of furniture. The company has created
money protection for the next five years. They had decided that by the year of 2023 they are
going to show a average growth of hundred percent.
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TASK 4
P5. Assessing the various exit or succession options for a small business explaining the benefits
and drawbacks of each option
This part of the report has significant on the exit strategy which will be employed by the
HITECH.com. There are equal chances of success and failure as the business organisation is
new in the market (Amr, A.A., 2020). Below mentioned all the various Succession or exit
options small business along with the advantages and drawbacks of each option:
Sell off: When the earnings of the organisation fail and the management is not ready to invest
more in the resources. The organisation is required to sale they are all assets for the purpose
of paying off to the creditors. The benefit of this option is stata the company is still in the
position of setting down all the debts. Limitation of this option is that the organisation is
completely disabled to supply any product.
Liquidation: Under this option the organisation are restricted to sale their old assets which
include furniture, vehicle, building, workplace premises and many more for the purpose of
getting cash in the hand for paying to various creditors. This is possible only when the
organisation start new project since the organisation should take loan for that new business
project.
Bankruptcy: It is not confirmed that the new setup of business will work successfully. The
organisation has to take the loan from external parties. For the steam the corporate funding
suppliers may take the help of flow and file the case against them. In this situation it
becomes necessary to pay the creditors by doing evaluation of their assets and declare the
organisation as a bankrupt. In this case the owner is not restricted to pay the debtors
(Alvarez and et. al., 2017). The limitation of this option is that it will destroy the reputation
of organisation as well as the owner of business. Nobody will do again trust on them which
leads to the reduction of investors.
CONCLUSION
From the above report it is concluded that the organisation should do the proper planning
and make a rough diagram for all the resources while they are planning to start a new business or
expanding the existing business. Memory this report is showing the new business projects four
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primary company of United Kingdom i.e. HITECH.com. along with this it is also showing the
funding supply which is necessary to know about the start ups that how they can get them from
various sources for a new start up. It is also showing a business plan which is required to be dead
by the corporate HITECH.com. Furthermore it is also analysed that the organisation should plan
about their funding before starting the business. It may give the idea to the business owner of
challenges which are coming in the life of business operations. Also while exiting the business,
the organisation have to pay all the debts to the creditors. There are various options which are
useful for organisation while exiting. It is necessary for them to analyse all the options and see
all the benefits and drawbacks of each and every option and then select any best one. Same in the
case of finding sources, there are various options of funding resources. The management have to
analyse each and every option. They have to analyse the advantages and limitations of each
source and then select any one because they have to pay back to the creditors.
REFERENCES
Books and journal
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