Wiola Media Services Ltd: Business Growth Plan and Development Report

This report presents a comprehensive business growth plan for Wiola Media Services Ltd, a UK-based service provider. It begins with an introduction to planning and its importance, followed by an analysis of key considerations for evaluating growth opportunities, including Porter's generic strategies (cost leadership, differentiation, cost focus, differentiation focus) and PESTLE analysis (political, economic, social, technological, legal, environmental). The report then utilizes Ansoff's growth vector matrix (market penetration, market development, product development, diversification) to identify growth opportunities. It explores potential funding sources like bank loans and crowdfunding, detailing their advantages and disadvantages. A business plan with financial information is developed, and options for succession and exit strategies are discussed, including their pros and cons. The report concludes with a summary of findings and recommendations for Wiola Media's expansion, aiming to provide a strategic roadmap for achieving its growth objectives.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key consideration for evaluating growth opportunities.................................1
P2 Opportunities for growth using Ansoff's growth vector matrix........................................3
TASK 2............................................................................................................................................4
P3 Potential sources of funding with their advantages and disadvantages............................4
TASK 3............................................................................................................................................6
P4 Development of business plan for company's growth.......................................................6
TASK 4............................................................................................................................................8
P5 Succession and Exit plan for business along with its advantages and disadvantages.......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning is the process of developing goals and strategies of the company. It helps to
determine those element that can affect the operational activities of the organisation. It is done by
the managers of the organisation to deal future consequences and risk that might occur (Barbour
and Deakin, 2012). It is a problem solving tool that help the managers to resolve problems with
available resources. Planning refers to the identification of business opportunities to achieve
organisational goals. Wiolia Media Services Ltd is a service providing company which is mainly
based in UK. Company enters to a contract which is “Architectural, Structural Engineering,
Services Engineering and Cost Consultancy Services” to raise funds. This project report consists
various topics such as Porter's generic strategy, PESTLE analysis, Ansoff matrix, sources of
funding, business plan with financial information and option for succession and exit.
TASK 1
P1 Analysis of key consideration for evaluating growth opportunities
Planning is a process of determining future goals of the organisation and formulate
strategies to attain those goals. It helps to fill the gap of current position and desired position of a
company. Without planning a company cannot execute its operations. Wiolia Media Services Ltd
is a service providing company which is currently running its business in UK and willing to
expand its business in Scotland UK with upgraded services. The two key considerations to
evaluate growth opportunities are explained below:
Porter's generic strategy: It was developed by Michael Porter. It can be described as the
strategy which is implemented by the companies to follow the competitive advantage (Chapin,
2012). This strategy is very helpful for the enterprise because it can improve the productivity and
increase profits for the company by maintaining cost according to targeted consumer. Wiolia
Media Services Ltd must give emphasise of innovating in services, so feature of differentiation
can be achieved. There are four strategies that can be used by Wiolia Media Services Ltd.
 Cost leadership: This strategy is used by various companies to acquire more and more
customers by setting low prices for the products or services. Wiolia Media Services Ltd
can use this strategy to attract customers of US by providing them services on lower
prices as compare to competitors (An introduction to Porter’s Generic Strategies, 2015).
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 Differentiation: In this strategy a company desire to be unique in the industry along
some conceptions that are widely adopted by customers or buyers. Wiolia Media Services
Ltd can use this strategy while providing such services that are unique and new to the
Scotland UK market.
 Cost focus: This strategy is based on the concept of focusing on the cost while
introducing the product or service in the market. The company can set lowest possible
price for the services that attracts the customers and generate profits. Wiolia Media
Services Ltd should introduce its services with lower price in Scotland UK market so that
customer get attracted to services (Christofakis and Papadaskalopoulos, 2011).
 Differentiation focus: This strategy is concerned with the concept of launching the
products or services in niche market that are unique. To acquire Scotland UK market
Wiolia Media Services Ltd should introduce services that are unique as compare to other.
PESTLE Analysis: It is used by the companies to analyse the external and internal environment
and factors that can affect the sales and profits of the company. Wiolia Media Services Ltd can
conduct a PESTLE analysis to to analyse the environment of the market where it is willing to
introduce its services.
 Political: These factors can be used to find out that which government policy and law
will affect the business. There are various political factors that can affect the business of
Wiolia Media Services Ltd in Scotland UK, those factors are trading policies, inter
country relations, internal political issues.
 Economical: These factors directly affect the economy of a country that can affect the
profitability of the running business within the country. There are various economical
factors such as taxation, economic changes etc. that can affect the business on Wiolia
Media Services Ltd in Scotland UK, as it has h strong growth rate as compare to UK , so
it is a good opportunity of the company to grow its business in Scotland UK (Grover,
Bokalo and Greenway, 2014).
 Social: These factors are based on customer's taste and preferences. It directly affect the
demand of customers. Wiolia Media Services Ltd should conduct proper research of the
market before introducing the services in Scotland UK market. It includes work ethic,
cultural barriers, trends etc.
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 Technological: It can be defined as the innovation in the technology that can affect the
buying behaviour of the customers. Wiolia Media Services Ltd should focus on the
current and updated technology while launching services in the market. It includes
competitors technology, research and innovation, maturity of technology etc.
 Legal: These are the laws that can affect the business directly. If Wiolia Media Services
Ltd want to expand its business in Scotland UK then it have to follow the laws and rules
that are imposed by the legal authority of the country on various industries.
 Environmental: It is related to the surrounding environment, that include climate
change, sustainability, location etc. Scotland UK strictly follow environmental protection
rules, so it suggested to Wiolia Media Services Ltd to follow the rules that help to
develop a positive image in the market (Hough and et. al., 2010).
P2 Opportunities for growth using Ansoff's growth vector matrix
Ansoff's growth vector matrix is a model that is used by companies to make strategic
decision, set objectives, attract customers and maximize profits. It helps to identify the risk of
various policies that are implemented by the company. Wiolia Media Services Ltd can use
Ansoff's growth vector model to determine potential customer and set a positive image in the
mind of customers of US. This model includes four different strategies that are explained below:
 Market penetration: In this strategy the company desire to attain growth with existing
products or services in its current or existing market place and focuses to increase its
market share in existing market. This can be achieved by providing more variety of
updated services to the customers or finding new customers in existing market. Wiolia
Media Services Ltd can target new customers in existing market because it will cost less
and company already have the knowledge about the taste and preferences of the
customers. So the marketers do not have to spend more monetary resources on marketing
of the services (Keough, 2015). Disadvantage of market penetration is reduction in sales.
If Wiolia Media Services Ltd remains consistent to their services then there are
possibilities customer may shift to other competitive brand in search of innovative
services.
 Market development: This strategy is related to the sales of existing products or
services in new market. In this strategy companies tries to expand their business with
existing services in targeted market. With the help of this strategy, Wiolia Media Services
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Ltd can expand its business in new market by providing existing services to the prospect
customers. It is very beneficial for the companies to attain higher level of success in
various markets because target market of Wiolia Media Services Ltd gets enhanced. This
will also help to acquire more and more customers in different market places.
 Product development: This strategy include the introduction of new products or services
in existing market. The company can introduce new and updated version of services in
existing market and get success. Managers of Wiolia Media Services Ltd can improve
quality of services such as use of online sources to conduct business and interact with
clients. This decision is very critical, company should take this decision if the company
has a good brand loyalty. Wiolia Media Services Ltd can also launch updated services in
UK it self to acquire more market share. This will cost less because the products are
offered to the existing market where the company has already established a positive
market image (Li, Mobin and Keyser, 2016). When new product is lunched in existing
market, then there are possibilities of failure of new services or possibilities of consumer
dissatisfaction. This proves to be disadvantage of product development .
 Diversification: It is applied by the companies when it is willing to introduce new
products or services in new market. This strategy totally relates to the situation of Wiolia
Media Services Ltd. Because it is willing to . It provides the opportunity to the company
to launch new product in new market and increase possibilities of long term profits. This
strategy requires a lot of research and investment in that particular market in which the
company is willing to introduce a new version of updated services.
Diversification is adopted by Wiolia Media Services Ltd in order launch services in
Scotland. This helps in increasing profits and sales. They can compete with other services
providers also.
TASK 2
P3 Potential sources of funding with their advantages and disadvantages
Wiolia Media Services Ltd is a self owned enterprise that primarily deals in providing
business management services. In order to attain growth and expand business, company requires
to introduce new services. The firm is having £20,000 with it and the remaining amount of
£40,000 requires to raise through various sources of funds which are defined below:
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Bank Loan: It is the most common source of getting funds and fulfil financial
requirements. The amount which is borrowed by an individual from bank for specific period of
time, a fix rate of interest requires to be paid on it. Bank change certain amount of interest on the
given loan money. For Wiolia Media Services Ltd, bank loan is one of the feasible and most
profitable source of finance that helps in fulfilling its capital requirements as interest paid is tax
deductible on loan money (MacLeod, 2013). Schemes such as zero interest rate loans, etc. are
effective for small business.
Advantages
 Bank loan is easily available as compared top other funds. Another advantage of this financial source is digitalization which makes it easy for
clients to apply for loan and get it easily. By introduction of banking application as well
as online banking facility, paper work is reduced and clients are not require to fulfil extra
formalities. By keeping in view the continuously increasing competition, banks introduce
several attractive schemes and offers loan at less interest rate that motivate people or
businessmen to apply for loan (Moseley, 2013).
Disadvantage
 Clients needs to pay interest of bank loan on time. In case of delay or non -payment of
interest amount or loan money, bank is legally liable to seize assets of that individual. For taking bank loan, borrower is require to lend some kind of collateral security in the
form of mortgage against the amount borrowed by them. Loan is not sanction until and
unless this clause is not fulfilled by individual who is applied for loan.
Crowd Funding : In this, internet source of transferring funds is the way by which
individual can borrow fund from large group of people. Crowd funding is an emerging
alternative funding source. It uses wide population network by social media, websites and other
official portals which gives a common path to investors and entrepreneurs. It provides an
advantage to business person of raising fund from number of individuals who wants to invest on
good business . Along with digitalization, it makes easy for Wiolia Media Services Ltd to fulfil
its capital needs (Pallagst, 2010).
Advantages
 With increasing trend of digitalization, crowd funding is seen as one of the easiest way
and cost effective way of raising money without paying any upfront charges.
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 By this source, entrepreneur gets an opportunity to reach suitable investors whose vision
is similar and interested in investing in a viable business.
Disadvantage
 Crowd funding is the source in which various legal formalities are involved that requires
to be fulfil by client. Although being a cost effective way of raising fund, its procedure of
getting funds is quiet complex.
 There are possibilities of not getting complete fund from crow funding, so possibilities of
bad impact on brand image.
TASK 3
P4 Development of business plan for company's growth
Business Plan is a written document which tells about path way to expand business. This
is the technique which is used to plan further business activities by analysing resources required
to achieve targets (Todes, 2012). Business operations can be performed in effective way with the
help of guidance. This business plan helps to provide set standards in order to enhance business.
There is requirement of many financial as well non financial resources. In business plan there is
discussion about objectives of business, capital requirement, budget, etc. Business plan of Wiolia
Media Services Ltd is as under-
Executive Summary
Wiolia Media Services Ltd deals thinking to expand business at Scotland UK. Managers
of Wiolia Media Services Ltd are in biding contract to raise funds. They think to expand
business within 1 year and target consumer are youngsters and corporate world.
Vision & Mission:
Vision: To provide affordable services with integrity, intelligence and innovation to its
customers.
Mission: To uplift sales up-to 10% in next 1 year through expansion.
Objectives strategies costs:
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Strategic objectives: Objective of Wiolia Media Services is to scaling up their business in
Scotland UK through increasing consumer base and sale. Wiolia Media Services Ltd is able to
enhance organisational competencies. This can be achieved by proper planning by managers
and providing proper guidance to workers. Strategic objectives helps organisation to work as
per set targets. Managers of Wiolia Media Services must set objectives by SMART. SMART
objectives means specific, measurable, achievable, realistic, time bound. It can be measured in
terms of increment in clients and profits. This targets is achievable within 1 year i.e. by
September 2019. This helps to expand business with proper planning an d within specific time
period.
Financial information
Finance is needed to perform business operations in effective and efficient way. In order to
expand business, there is requirement of funds which can raised through internal or external
source. Managers of Wiolia Media Services are thinking to expand business in US. Hence they
enter into contract- “Architectural, Structural Engineering, Services Engineering and Cost
Consultancy Services”. Managers of Wiolia Media Services requires £300000 for business
expansion. Contract value is for £60000, £20000 is with manager remaining £ 280000 has to be
raised through bank loan, crow funding. When managers are able to get funds from these
sources then it must be invested in proper manner so business expansion can be in effective
way.
Total forecasted budget
Particular 31/12/15 (£) 31/12/16 (£) 31/12/17 (£)
Equipments cost 3000 - -
Promotional expense 1000 1000 800
Advertisement
expense
800 600 400
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Maintenance cost 800 700 900
Miscellaneous 500 500 500
Total Cost 6100 2800 2600
From the above discusses budget, there is requirement of equipments such as computer
telephones, internet, etc. in order to give better services. This cost will required in initial year
i.e. £3000. Hence this cost as £1000, £1000 and £800 in each year. Managers has to
advertisement through different media such as television, etc. This cost £800, £600, £400.
Maintenance cost are £800, £700, £900. At last miscellaneous cost for each year are same for all
three years i.e. £500. This budget forecast helps managers to make perform operations in
effective way through which objectives can be attained.
TASK 4
P5 Succession and Exit plan for business along with its advantages and disadvantages
Numerous options are available to owner of Wiolia Media Services Ltd that requires to
be consider at the time of taking decisions regarding closure or continue business activities and
operations in coming years (Valler, Phelps and Wood, 2012).
Exit ways:
Liquidation: This exit option can be considered by Wiolia Media Services Ltd when it
face losses from past some years and when their products are not demanded any more in market
and there is no scope to get stability in marketplace. In such situation, liquidation option can be
considered by firm.
Advantages Disadvantages
 After business liquidation, legal action
against firm is halted.
 Terms on hire purchase and lease
agreements are terminated at
liquidating date of firm which means
that there is no further payments
 All assets of business will be sold
which means there is no remaining
asset by which new business can start.
 During liquidation, loan amount of
directors must be repaid.
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required to be made.
Sell the business in open market: When owner don't want to close business and wants
to continue it, then they have an alternative of selling it to some other party in turn of certain
amount of money. It provides an advantage to owner of getting their actual investment which
they invest on business at the time of its opening (Wu, 2015).
Advantages Disadvantages
 In comparison to other exit options,
selling the business consumes less
time.
 Goodwill of firm is not influenced by
sell of the business.
 Possibility of getting lower amount on
selling of business is high as owner
may not get its actual amount of
investment mainly due to non-
performance.
 It becomes difficult for owner to design
proper promotion plan to develop its
image again in market.
Ways of succession:
Merger and acquisition: This is the most profitable and appropriate way to develop
product portfolio as well as brand value of company in market. It includes merging of two or
more ventures along with their operations aiming to diversify its reach and acquire large portion
of market share (Ziari and et. al., 2012).
Advantage Disadvantage
 Diversification of business products
and services becomes easy.
 It reduces costs and overheads of
company.
 Merger must be authorised by a vote of
the stockholders of each and every
organisation.
 Merger and acquisition is a relatively
maximum risk of failure.
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CONCLUSION
From the above mentioned information it has been concluded that planning is important
for the success and growth of company. In order to expand business operations and activities at
large scale, company use different models such as Porter's generic strategy, PESTLE Analysis
and Ansoff's growth vector matrix. All these are applied by the company to identify situation of
the country where business grow their operations and activities in successful manner. In this
company need appropriate amount of capital for running their operations in effective manner. As
they use different source of fund such as Bank Loan, Crowd Funding and many other. All these
are useful and valuable source for collecting accurate amount of capital. There are two ways such
as Exit and succession that effect on business performance and productivity in a direct manner.
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