Planning is the process of making strategies for achieving the required goal. Planning for growth is the activity which helps business in making plans for increasing their revenue. This supports business in utilising available resources with proper allocation in order to achieve organisational goal for growth purpose (Barbour and Deakin, 2012). This report is based on Dega Broadcast System. It is the small & medium sized enterprises which serves technical installation facilities from past 25 years. This report discusses about various types of growth options for this company with different sources of funding with there positive & negative aspects. Several business plan available for operational activities in order to achieve organisational goal. Exit strategy of Dega Broadcast System has been also elaborated with options for ending procedure.
P1 Key consideration for evaluating growth opportunities in business
In small and medium enterprises its important for the company to evaluate different option for growth in the market. Risk is the part of growth which can be reduced by opting proper strategies for long run profit, security & stability. Dega Broadcast System is small and medium sized enterprises which provides technical installation facilities, consultancy services, system designing & covers event. Objective of the company is to concentrate on providing quality products & services to its customers and build long term relationship with them. This helps the company in connecting to its existing customers & attract more new customer's which increases the opportunity of growth for it. Management team of the company plans to provides exceptional services to its customers for achieving the goal (Brinckmann, Grichnik and Kapsa, 2010). Dega Broadcast System focuses on going for collaboration in order to increase their opportunities towards the other segments. This increases no. of option available for the company several industries. You can take help from assignment writers
Importance Of Business Growth:- Business is all about changes, its nature is dynamic. For business growth internal factors as well as external factors are analysed which helps in identifying available opportunities. For evaluating all the factors, company needs to give priority to growth instead of success. Business growth of Dega Broadcast System depends on following key statistics factors
- Turnover: Companies growth depends on its turnover which reflects the financial position. Its important for Dega Broadcast System to increase their business transactions which can be done by grabbing attention of more no. of customers. According to the current report, Dega Broadcast System has fixed asset of approx £150. This shows that the company needs to concentrate more on increasing its financial value for business growth. Its turnover can be raised by grabbing available opportunities in the market.
- Staff: Dega Broadcast System hires highly skilled employees and also provide training to its existing employees to their skill development which turns in the positive growth scenario for the company. Skilled employees are completely familiar with the whole procedure of manufacturing quality products to meet the standard of company. Skilled staff helps the company is achieving current goals and also increases the parameter of future goal to be achieved for business growth (Burton, 2010).
- Competition: Every organisation has its own competitors which affects business profitability. It can become the vital problem for company. Management team of Dega Broadcast System focuses on improving their quality by using advance technology. High competition helps the company in more concentrating on their own strength to differentiate themselves from the rival companies. The company has opted acquisition, mergers and joint venture to overcome the competition issue & convert it into an opportunity for the future growth.
- Diversification: Diversification is process of expanding business for its growth. It can be in many forms, such as introducing new product in new area, manufacturing of product as per customer demand to avoid excessive stock. Dega Broadcast System is looking for growth by identifying opportunities and capture towards the motive of expansion. For this the company is working on customer research to make new product as per their requirement. Management team has developed their previous strategies in order to new market with new product. Innovation with respect to products, services and new market has increased the opportunities for growth.
- Market Share: It refers to the part of the marketplace covered by single company & organisation. Dega Broadcast System is focusing on garbing more customers to increase their market share. In addition to this, the company also attracts new customers with their innovative products which can be done by knowing customers requirement, wants & needs and weakness of the rival companies. From the past records of Dega Broadcast System, it is analysed that this company is growing constantly. Its growth rate was approx 7.9% in 2017 which helps Dega Broadcast System in its expansion and move forward towards growth.
- Collaboration: When one company joins its hand with the other company for the purpose of business expansion. It is the best option for business growth & minimises the competition. Dega Broadcast System can go for merger, Joint venture, Acquisition, and partnership as it helps the company in effective decision making process. Joint forces will support the company in Grabbing opportunities in emerging market (Chapin, 2012). Dega Broadcast System should combine with the other companies of different industry to achieve their profitability goals & increase their command over other industries to cover maximum no. of customer's.
P2 Opportunities for growth applying Ansoff's growth vector matrix
In market place number of opportunities are available in front of DEGA BROADCAST SYSTEM in which they enhance their overall performance level. Along with this, they having various development opportunities to enhance their brand image at market place. In this context, Ansoff's growth matrix play vital role in determining growth opportunities in order to develop various department of the firm. This matrix includes four areas such as market penetration, product development, market development and diversification. All these will helps in enhancing the chances of attaining goals and objectives. All these are as follows:
Market penetration: It is one of the important strategy through which company offer existing products in existing market with the purpose of attaining desirable growth at market place. In context of this, DEGA BROADCAST SYSTEM focus on enhancing their market share by delivering quality services to their customers in order to attain success. For this, firm also use various effective promotional tools to advertise their services in front of customers. With the help of this strategy company easily capture larger market share form its rivals. This is possible by satisfying customers needs and wants (Christofakis and Papadaskalopoulos, 2011).
Product development: It is also an effective strategy which help business organization at the time of expanding their products and services. For this, company needs to make and implement an effective plan and use digital technologies. This will helps in increasing customers base with the company. In context of DEGA BROADCAST SYSTEM, they evaluate customers taste and preferences before making as well as producing new services. By this company can easily provide satisfaction to larger number of customers by delivering quality services as per their requirements. With the help of this, company capture customers attention towards its unique services. This will contribute in enhancing market share of the company at market place.
Market development: It is another strategy in which company determines new areas where hey get opportunities to improve their brand image. In context of DEGA BROADCAST SYSTEM, they serve their quality services in new market with the purpose of inviting various customers. In this they try to make their products affordable and also implement new distribution channel to deliver their quality services to end customers (Eddleston And et. al., 201). This will aid in increasing the chances of attaining success at market place and at the same time also established competitive image as compare to its rivals.
Diversification: This strategy is more important which help business organization to attain growth in market place. By adopting this strategy DEGA BROADCAST SYSTEM easily serve their quality services to customers as per their needs and wants. Along with this, company also implement diversified techniques with the purpose of delivering their services. It helps is creating positive brand image at market place and at the same time also create strong customer base.
Hence, all these areas of Ansoff matrix can help in enhancing brand image of the company and also determine the ways to improve their product quality as well. With the help of this, DEGA BROADCAST SYSTEM can easily make their brand image more popular.
M1 Different range of analytical framework
Evaluation of business is important for capturing all the available opportunities of growth. PESTLE analysis of Dega Broadcast System helps in finding the external elements which affects its expansion plan. Several growth opportunities are provided through this analysis are as follows:
- Political: This factors includes political condition of United kingdom which influences the company. It supports company in identifying the opportunities raised by political stability of the country which helps in the growth.
- Economical: This factors supports in best mode of financing that can be used by the company for growth purpose.
- Social: This factor helps the Dega Broadcast System in grabbing the opportunities favoured by cultural trends, population & demographic changes etc.
- Technological: Dega Broadcast System can capture available opportunities by adapting advance technologies for growth purpose.
P3 Evaluating Sources of Funding for business and their advantage and disadvantage
Funding can be defined as providing financial support to the company in monetary terms or by servicing like time & effort. In return of funding company shares its profit with the one who provides fund. There are several sources of funding which can be opted by the Dega Broadcast Systems for their expansion are discussed below:
Personal investment: In this investor is the owner who invest his personal money in business for its expansion. Its easier for the owner to invest money as per the requirement.
Advantage: Owner has full control on his business and can use its money without anyone else's involvement (Grover, Bokalo and Greenway, 2014). Dega Broadcast System can go for this source of funding as in this, the company is not required to share its profit.
Disadvantage: In personal investment risk is non shareable. Owner of Dega Broadcast System will have to face bad phase of business alone. Lack of outsider involvement can miss valuable advise & mentorship which are important for every business.
Venture capital: This source of funding refers to the capitalist who invest money in the business for equity. Dega Broadcast System should go for this method as they get huge capital without any partnership and in exchange they provide good rate of return to their venture capitalist.
Advantage: This is the form of investment which can also offer expertise advice for business growth. It will help Dega Broadcast System in arranging quick funds & opens wide scope for future partners & investors.
Disadvantage: It can be proven negative for Dega Broadcast System as in some situation company have to give large piece of ownership or business to the investor because of their huge funding. It reduces company's profitability ratio (Hough and et. al., 2010).
Bank Loans: It is the famous & well known option for funding. Dega Broadcast System can get bank loan easily as they have reputed bank history which helps them in getting it faster. This involves lots of documentation but its safer as compared to other options.
Advantage: Bank provides various types of options to the company as per their requirement. Its the safer option & is faster if Dega Broadcast System has qualified whole procedure. Bank do not control or interfere in business decision making process which is proven to be positive' impression for the company.
Disadvantage: Dega Broadcast System has to go through lots of legal documentation that is time consuming process. The company is required to pay timely instalment for their loan, any delay in this can affect asset which is under banks authority.
Friends & Family: In this, fund is raised from the friends & close relatives for business growth in return company shares equity with investors or give profit to them. This source of funding is more dependent on the company's networking & relationship with its close associate. Dega Broadcast System should work hard on its good terms with friends & close associate to get funds.
Advantages: Its the fast source of funding with less documentation which saves time. Dega Broadcast System can enjoy flexible mode of payments, as investors are close friends only.
Disadvantage: Less documentation can become the reason of misunderstanding & disputes between the investor & owner which spoils the relationship. Dega Broadcast System will only receive capital investment in the form of fund. They do not receive any kind of guidance & expertise advice which might be beneficial for the company.
Angel investors: They are the one who gives fund in exchange of equity shares with the authority of involvement in decision making process. Angel investors generally invests in small firms and reserve their seats among board of directors. Dega Broadcast System can utilise the advice of these investors as they are highly experienced.
Advantage: Expertise advice & guidance are beneficial for the Dega Broadcast System. Angel investors have good management & knowledge which they use in business. In addition to this, they also share their experience & networks for business expansion (Keough, 2015).
Disadvantage: Negative side of this can be seen as investors owns the board of director seat, so they are authorised to participate in decision making process. In some situation, Dega Broadcast System can be forced to loose control at some point over the business.
Dega Broadcast System provides technical installation facilities. Its has spent approx 25 years in this service industry. The company has gone for the personal investment among the several sources of funding options. Its completely self financing & fully independent company which do not share any of their responsibility & profits with the outside investors.
M2 Sources of Funds for business
There are different sources of funds which are used by management in order to ensure effective business activities by providing funds to various departments. The different sources of funding and their benefits are evaluated below as:
- Crowd Funding: This factor consists of raising funds from the general public. This is one of the time consuming method and also the objectives which are formulated cannot be changed without the consent of public (Pallagst, 2010).
- Bank Loan: This is the most vital factor as it results in raising funds from different banks for their business ventures related with expansion of business activities. This is the secured type of loans that are accessed by business.
P4 Designing Business plan
Business is a systematic framework designed in the motive of achieving organisational goal for new business. It is the written document which includes planning regarding financial, operational and marketing point of view. Dega Broadcast System has designed systematic plan for its employees which they have to follow in their work. All the activities covered in this must have to be followed in expected time which is finalised earlier. Business plan also ensures that the invested money should be used in the planned manner which avoids the wastage of money & also helps employees in utilising the investment in the effective manner to fulfil company's requirements for achieving expected goal.
You may like this sample:- Major Operators of UK Hospitality Industry-Audley Travel
Business plan of Dega Broadcast System for the growth is made with the motive of achieving their goal are discussed as follows:
Dega Broadcast System comes in small medium & enterprises which provides technical installation facilities in the service industry from last 25 years. It is self financing company that believes in providing quality product & services to its customers which helps them in maintaining long term relationship. The company ensures high standardised products to remain trustworthy image among its customers as well as in this industry. This company deals in system designing, event coverage, installation services and consultancy services.
Mission: Mission of the firm is to develop business & grab huge market share which can be achieved by giving high quality services to its customer's and building long term relation with them.
Strategic objectives: Main motive Dega Broadcast System are discussed as follows:
- Delivering services with high quality for maintaining healthy relationship with customers for long term (Li, Mobin and Keyser, 2016).
- Providing services as per the requirement of the customers.
- To adapt advance technology in order to grab opportunity available for growth.
Products & services:
Dega Broadcast System offers several times of services such as technical installation, designing of system, consultancy services and event coverage. Employees of the company are specialised in designing with the latest technology. This company has strong relationship with its suppliers helps in maintaining the updated records of contact procedure, product information and support details. Dega Broadcast System is famous for its exceptional services which helps the company in building strong relationship with the existing customers & persuade new customers to join this company.
Internal analysis – It encompasses with internal strength and weaknesses of an organisation thus to improve them accordingly. The analysis supports to identify future growth opportunities as well as threats which can affect company's existing marketing condition in positive and negative manner. Following is defined internal analysis of : -
- Having strong market image due to effective quality of services.
- Large distribution channels which will support in supplying products at large markets.
- Implementation of new and innovative techniques of production.
- Flexible relations with managers; it reduces chances of conflicts and disputes.
- Lack of availability of funds
- Untrained workers and low market experience
- Less importance to planning and research & development activities.
- Emerging market trends
- Entering into new markets through globalisation
- Improvise quality of products and services
- Competition with multinational companies
- Political condition of the country and economic downturns
Segmentation of target market -
It is essential for small business organisations to determine the target market selection thus to sell products and services accordingly. Selection of target audiences supports Dega broadcasting system, to satisfy needs and wants of customers in the best possible manner. In addition to this, the firm has decided to sell drinks online and offline both methods. It is focusing upon local markets and provide products at lower rates; it helps in attaining and retaining large group of customers towards company (MacLeod, 2013).
Financial information of the company -
At last, while developing a business plan, management is required to identify financial information of the firm thus to ascertain the amount which will be spend on various activities and tasks. Thus, financial position of Dega broadcasting system, is strong cause it is established a successful business the person is able to invest high amount on investing business activities and operations of the company. In addition to this, having sufficient funds supports in proper allocation of resources in the best possible manner as well as acquisition of digital technology in working processes. It results enhancement of business goals and objectives in a certain time period.
M3 Business plan
Business plans are the preset parameters made by the management team of the company to achieve its goals & objectives. Business plan is made before starting the business, which helps the company in knowing all the positive & negative factors. It supports in overcoming the risky factors by finding out their solutions. Dega Broadcast System has made its business plan which helps all the employees to work in systematic manner efficiently. These plans have their own importance as it supports the company in securing their investment (Todes, 2012). This provides the appropriate framework for the employees which they have to follow in order to achieve their mutual goals.
P5. Exit and succession option for small business
Succession and option are regarded as two necessary things which are based on survival development and growth of an organisation. There is a requirement to manager of Dega Broadcast system to measure organisation performance and also interact with Board of Directors accordingly.
Different Methods for Exit Business
Sell business in the open market- When manager of an organisation decide to quit business then there should be an option to sell business in open market at the reasonable cost. It will be helpful for director of company to get actual value of business so that it can start a new business. Under this, business sell its all assets and liabilities (Mitchelmore and Rowley, 2013).
Goodwill be remain better and it will be helpful for firm to retain its existing consumers and also attract the new in an easy manner.
In context to compete with rivals, buyer can make some modification in whole business operations. From this, employment of current staff can be in danger and they can lost their jobs. Rivals of firm may buy business for know about consumer as well as financial information.
Liquidation- If firm regularly facing some issues as well as losses from pat years then in this case manager needs to be forecast that there will not chance to company to generate profit and also inform to Board of Directors of Dega Broadcast system.
After the liquidation, director of this firm will be free from any of the legal actions against company. It will live a liability to that to enter in to any new business with out bearing of any liabilities (Moseley, 2013).
There is a requirement to director of firm to sold current assets for make payment to creditors in the dividend form.
Different ways to succeed business
Use Internet sources- Consumers are regarded as life line of company that want to attain success of business by attracting the large number of consumers and gain competitive advantage at market place. In context to this, there is a requirement to Dega Broadcasting firm to adopt different activities so that people can be attracted towards firm. It can develop the website of company and promote its services by doing the online marketing.
Delegating work to employees- There is a requirement to manager of this organisation to delegate necessary work to capable or responsible staff members according to their specialisation and core competencies through which firm can gain profit. It is also helpful in motivate employees in an effective or better manner and from this they can focus on achieving the set aims of company.
Advantage of business succession
Staff of Dega Broadcast System get better benefit to be feel secure as well as safe regarding employability that aids in enhancing their morale and motivation. Through this, rate of employee turnover will be reduced.
Disadvantage of business succession
After facing loss, if firm decide to set up new business to generate profit then it can enhance expense or liabilities which can reduce reputation.
M4 Evaluating Exit and Succession options for small business
There are different points such as succession and Exit which are based on the performance of the business organisation. So the most important factor of firms is linked with performing all business operations in effective and planned manner so there can be sustainability factor in business performances. If business is not able to achieve their set goals and targets, then they are having just one option that is liquidation of their business activities. It is the most important duty of management in order to implement new and innovative technologies at work manner.
From the above mentioned report, it get concluded that small business associations are towards focusing on proper planning of working activities so as to attain organisational goals and objectives. It supports in identifying all those factors which affects planning process of companies. The coursework has stated main key consideration which should be measures to market opportunities, such as – competitive advantage, target market segmentation and so on, For this purpose, dega broadcasting system can acquire Ansoff Matrix which involves four components, such as – market penetration, market development, product development and diversification. There are various sources of funding having their own pros and cons, such as – bank loan and crowd funding etc. Furthermore, a business plan is developed by considering vision and mission statement of the company to attain future growth and success.
- Barbour, E. and Deakin, E.A., 2012. Smart growth planning for climate protection: Evaluating California's Senate Bill 375. Journal of the American Planning Association. 78(1). pp.70-86.
- Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms. Journal of Business Venturing. 25(1). pp.24-40.
- Burton, P., 2010. Growing pains: The challenges of planning for growth in South East Queensland. Australian Planner. 47(3). pp.118-125.
- Chapin, T.S., 2012. Introduction: from growth controls, to comprehensive planning, to smart growth: planning's emerging fourth wave. Journal of the American Planning Association. 78(1). pp.5-15.
- Christofakis, M. and Papadaskalopoulos, A., 2011. The Growth Poles Strategy in regional planning: The recent experience of Greece. Theoretical and Empirical Researches in Urban Management. 6(2). pp.5-20.
- Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms. Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
- Grover, B.E., Bokalo, M. and Greenway, K.J., 2014. White spruce understory protection: From planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.