PLANNING FOR

GROWTH
Contents
Introduction ..................................................................................................................................... 3

LO1 ................................................................................................................................................. 4

P1 ................................................................................................................................................ 4

P2 ................................................................................................................................................ 5

M1 ............................................................................................................................................... 6

D1................................................................................................................................................ 7

LO2 ................................................................................................................................................. 9

P3 .............................................................................................................................................. 10

M2 ............................................................................................................................................. 11

D2.............................................................................................................................................. 11

LO3 ............................................................................................................................................... 13

P4 .............................................................................................................................................. 13

M3 ............................................................................................................................................. 14

D3.............................................................................................................................................. 16

LO4 ............................................................................................................................................... 18

P5 .............................................................................................................................................. 18

M4 ............................................................................................................................................. 21

Conclusion .................................................................................................................................... 24

References ..................................................................................................................................... 25

List of Figures

Figure 1: Business modules for company ....................................................................................... 4

Figure 2: Ansoff Matrix for growth ................................................................................................ 5
Figure 3: Growth Strategies ............................................................................................................ 7
Figure 4: Decision making model ................................................................................................... 9

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Figure 5: Failure Reasons ............................................................................................................. 18
Figure 6: Prevention Methods ....................................................................................................... 19
Figure 7: Different Exit Techniques ............................................................................................. 20
Figure 8: Liquification Techniques ............................................................................................... 21
Figure 9: Acquired by others ........................................................................................................ 21
Figure 10: Timely Liquification.................................................................................................... 22
Figure 11: Open market Sellout .................................................................................................... 23
Figure 12: Family Business .......................................................................................................... 23
List of Tables
Table 1: Benefits of Ansoff Strategy .............................................................................................. 6
Table 2 : Risk analysis and mitigation process ............................................................................... 8
Table 3: Different sources of investments .................................................................................... 11
Table 3 : Strategic Intent of the company ..................................................................................... 13
Table 4 : Sources of funding ......................................................................................................... 14
Table 5 : Frameworks for Telecommunication Company ............................................................ 15

2
Introduction

In current case, as an employee of Telecommunication Company called “Plan.com”, different

cases and aspects of such small-scale businesses are being analyzed for growth and development
of an organization. Such small-scale business as also called small scale enterprise that has a smaller
number of members or employees to work with. These organizations are likely to take less amount
of profit than a complete corporate organization. Such businesses also get special benefits from
governments, depends on laws and policies of different regions.

Taking care of our business as plan.com is business telecommunicator company which provide
different type of telephonic services to business org like VIOP, broadband, mobile, and desk
phones, etc. what makes them different is that they use latest technology to provide services. A
business plan for

such an organization would likely to include different options for financial approach and its further
growth.

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LO1

The telecommunication company i.e. plan.com is responsible for delivering telephone, internet,
television along with many other services to the customers. It is a very upholding business that
goes through an immense level of growth throughout its phases (Moen et al. 2016).

Figure 1: Business modules for company

P1
Plan.com is a telecommunication enterprise dealing with various services around the area. The
business growth of the organization is depended on many factors (Zambon et al. 2019).

1. Setting Goals
The organization is dealing with telecommunications to its customers. The vital need of the
business is to set the goals numerically i.e. targeting the customers who are interested in the
services and financially i.e. recommending the economic solutions and improve earnings of the
company to receive a good annual revenue.
2. Using high impact marketing
Marketing has been a very helpful and effective way of promoting a business. It is a major key
factor for evaluating growth of the telecommunication company.
3. Targeting customers
Targeting a specific set of customers who show a keen interest in the telecommunication services
can be good for the eventual growth of the organization. Its main purpose is to improve the
networking and connections to the customers. Targeting customers is possible through emails,

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push notifications, using social media for collecting data about the customers, putting up banners
around established companies where potential employers work, etc.
4. Finding best practices
Complete transparency with the clients earns client’s or customer’s trust in the company and its
services. Communication with the customers should be very effective and processes to help them
run smoothly to gain their good perspective towards the firm.
5. Benefits from referrals
Giving additional services to the customers on special occasions makes the customers intact with
the company. Their trust and belief in the company grows stronger while they enjoy the services
provided by the firm. Giving hamper prices along with the products and celebrating occasions with
the customers adds revenue to the annual income (Jain, 2018).
P2
The matrix is given by Ansoff to evaluate the opportunities needed for the company’s growth. This
strategy is used to maximize a company’s profit and occupy more market (Yin 2016). It gives
stability for the large-scale development of the company. The main principle of Ansoff Matrix is
to perform an analysis of the products and markets.

Figure 2: Ansoff Matrix for growth

(Source: Yin 2016)

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The figure above represents the Ansoff matrix used in the growth of the company. It helps the
manager of the firm to evaluate its strategies in a scientific and effective way (Candra, 2018).
The main features and functionalities of Ansoff’s matrix incorporated in business are:

Table 1: Benefits of Ansoff Strategy

S. No Growth Strategy Opportunities for growth

1. Market Penetration Management is forced to do the risk assessments and manage expected
risks if they have a direction to go on.

2. Market If one strategy fails, it has multiple paths to take the business further to
development i.e. it has multiple strategies to walk on.

3. Focus on Growth It focuses more on the growth of the business so there is no fallout in
the middle of the business.

4. Diversification It uses a new strategy for the new set of customers.

It utilizes current capital for approaching new markets.

M1
Organization goes through various growth in terms of economy, financial, social, etc. Being in the
competition with other major firms in the market is not always easy to tackle. Trying different
techniques and methods to deal with the customers and making them choose your company needs
a lot of strategical changes throughout the year. (Zambon et al. 2019).

PESTLE analysis of the company is done to evaluate the growth and development of the company.
This process includes a complete analysis of the competitor’s firm/company. To be one step ahead
of them gives our company an advantage of getting more customers. Knowing about the
competitor firm’s economical costs on the services they provide will benefit us in knowing our
market strategically. PESTLE refers to the analysis of political, economic, social, technological,
legal and environmental factors of the company.

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D1
Small companies aspire to grow their business and expand it to different cities. The strategies are
implemented for the regular growth of the company in many ways. These are associated with the
Ansoff’s growth strategies (Yin 2016). Since the growth of every company depends upon the
financial factors of the company. Few other growth methods are given as follows:

Figure 3: Growth Strategies

1. Penetration Strategy- Existing products are used to reach the same market by lowering
prices.
2. Expansion and development of market- This strategy entails selling the existing products
to the new market.
3. Expansion strategy of products- Technology to build the same product is changed and sold
in the same market.
4. Acquisition of different companies- Buying another company to expand an existing
company’s growth is incorporated in this growth strategy.

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Risk Analysis and mitigating risks

Table 2 : Risk analysis and mitigation process

(Source: Júnior & Chaves 2015)

S. No. Risks Impact type Factors Prevention measures

1. Losing clients’ Medium High rates in the The risk can be overcome by
ownership prices maintaining prices with
respect to a competitor firm.

2. Not able to High It is followed by Changing client’s mindset

maximize losing client’s about the service and the
customer value ownership products.

3. Newmarket Low New markets and Engaging more with the

structures may afresh set of regulators.
lack in employers and
regulatory customers
certainty
4. Long term Medium Slow growth in the The properties having slow
investment area. growth should have new
strategies to work on.

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LO2

Even small businesses like Telecommunication Company need different sources of funding.
Business Organizations like Plan.com are needed to be required for business strategies for
generation of funds. The analysis of different kinds of funding methods and their ways of
generating them. For setting up such business telecommunication service providers, a huge amount
of funds is required. These funding are vitally important when it comes to a company’s growth.
The main methods for decision-making process are as follows:

 Analyzing starting alternatives for investments

 Project effectiveness
 Giving ranks to the alternative methods

Figure 4: Decision making model

(Source: Puška et al. 2018)

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P3
For such a big telecommunication farm, there are following funding methods that is available for
generation of funds. There are basic methods used by small business

1. Bootstrap Approach

In this approach funds that are given to us are generated by company partners itself. They collect
all the money they can apply to this business. Money that is used by company is coming from the
bank accounts, savings accounts, credit cards, etc. It’s generally a company’s money where they
can take their actions over it. Chances are like a business may likely to require more funding.

2. Getting help from family colleagues and close friends.

Getting help from family is always beneficial for company to get the funds easily. No need to
worry about the negotiation’s terms with family or friends. These deals can easily happen as a
family is not going to interfere in business. Friends in some cases will be more beneficial as they
can guide you with their experience in such field if any.

3. Taking loans for different banks

Banks are always there if no other sources of funding is left. It will require you to have proper
presentations prepared for the business plan and their goals and working methodology. Banks
generally provide loans on their terms as they can even want to take share of the company or even
interfere in decision making.

4. Crowdfunding

Crowdfunding is the method of taking a small amount of money from a large number of peoples.
There are done by taking bits of help from internet by using the methods of funds generation. It
works with social media marketing and could create more funds in business.

5. Angle investors

There are individuals with lots of money and interest in investing in such business. These are
experienced peoples who can give guidance about business. There focus is only on the money
asset of organization. On exiting them are one getting money (Sazonov et al. 2016).

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6. Venture Capitalists

There are investors similar to angel investors as they also have lots of money but only invest in
exchange to taking share of the company. Such people generally work in groups to operate a
business and provide different kind of investments.

M2
Different options are available to businesses like plan.com to generate funds to provide
telecommunication services to different business organizations. Such organization will also help
you in managing services if they like them.

The best methods for plan.com that can be recommended are:

Crowdfunding: Organizations like plan.com require huge network to be created on social media
and internet and internet plays a vital role in crowdfunding for business. So, social media and
different business communication methods can be used by this organization to gain further
investments.

D2
Table 3: Different sources of investments

(Source: Sazonov et al. 2016)

S. Source of Advantages of using this method Disadvantages of using this method

No. funds
1. Crowdfunding 1. It focuses on the 1. It gets hard to distinguish between
communication aspect as better the valid investors and the scammers
presenting of ideas on because crowdfunding is filled with
crowdfunding websites will scammers.
lead to better investments. 2. The company can get false reports
2. It can be used to check market about growth and development. It is
level in business as it will help important to know when your
in creation of strategies for company is actually growing.
market.

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2. Bootstrapping 1. It will give the company the 1. The main problem here is that the
of business total control to organization, company may run out of cash.
making the organization do 2. In a bootstrap business idea,
what they want with the diligence in work is really important
business. or the money invested in the business
2. There is also a good feeling might fail.
about the satisfaction of taking
your own decisions.
3. Venture 1. The money is with the client to 1. The investors will have a part on the
investors spend on the business stake of the company. They will
2. This investment process helps directly benefit if the stakes are high.
the company grow rapidly.

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LO3

The business of telecommunications deals with customers on daily basis. The company growth
depends upon the vision and mission of the company. Complete revenue including financial details
of the company are mentioned below:

P4
Table 4 : Strategic Intent of the company

Vision of the Company:

The vision of the company entails the idea of company becoming worldwide corporate to have an
outstanding approach to the customers and having the biggest market worldwide.
Mission of the Company:
The company wishes to be a major stakeholder in the market in the coming years to fulfill the values and
interests of the customers associated with the company.

Strategic Objectives of the Company:

 Maintaining corporate strategy
 Having and providing quality network to customers
 Increasing assets affiliated to the company
 Giving assured quality to the customers
 Establishing networking of personal computers (Blom, 2018)
Annual revenue of the Company:
The estimated annual revenue of the company is 30,000$.
Technologies used:
The company uses Integrated services digital Network (ISDN) for establishing communication.
Internet services use Virtual Private Network (VPN)
Telephone services use Asynchronous Transmission Mode (ATM)

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M3
The business needs to have major stakeholders for the investment in order to grow rapidly in the
market. The business will grow after having strategic planning, business unit strategic planning,
and scenario analysis.

The strategic objectives are fulfilled in the given revenue of the company. It will need funding
from various sources in order to expand the business to a great extent. The sources for funding can
be:

Table 5 : Sources of funding

S No. Source of Funding

1 Equity

2 Debt

3 Retained Earnings

4 Term loans

5 Venture Funding

6 Working capital loan

7 Letter of credit

8 Bank Loan

Our business is looking for investors who can help in the growth of the company. The proposed
plan to the investors will explain to them about the objectives of the company. The current working
technologies are demonstrated in front of them to make them know the worth of the business they
are investing in. The proposed plan will contain all the current details about the company
associated with the past information of the company as well. The assurance of the technology

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being used in the company is not outdated is given by the practices performed to the investors.
Investors are looking for a developing company which has a market reputation of having great
clientele and good services. The assurance of the company being the developing firm in the market
is given to the investors. Investors will only benefit from the company if it has the current revenue
in profit of what is spent. The future lookout in terms of investment totally depends on the
investors.

The frameworks on which Telecommunication Company works and fulfills its strategic objectives
are:

Table 6 : Frameworks for Telecommunication Company

S No. Frameworks

1 Business Process Framework

2 Information framework

3 Customer-facing services

4 Enhanced telecom operation map

These frameworks work in the latest technology which is insightfully very helpful for the growth
of the company. The older companies in competition are acquiring this technology to match the
level of a developing company. The major strategic objectives for the company’s growth are listed
below:

 Providing a quality network to the customers worldwide

 Be in competition with the major service providing companies in the market
 Extend the branches of the company to other cities as well.
 Increasing the annual revenue of the company
 Hiring quality employers who are capable of bringing customers in for a long time.
 Managing healthy relationships with the customers to keep them associated with the company.

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D3
The business plan proposed to the investors will somewhat be like this:

Executive Summary
The business is about providing telecommunication services to the customers related to
television, internet, etc. It intends to target the market of corporate people. The potential of the
business is very strong in terms of getting good market. Financial Requirement to expand the
business is 1 million dollars.

Enterprise Description
Our business plan.com is a telecommunication company providing services to customers around
the city. This business is chosen by a keen interest in this field. It is also an outgrowing field
which will give a good revenue graph to the company.

Services provided by plan.com

Providing networking to the systems
Telephone service
Television service

Operating Area and companies

There is total number of 8 companies operating in this area from which 6 do not have the latest
technology to deal with the clients. That leaves two of the companies including plan.com in the
market to have the latest technology and a potential to grow the business widely. The competitor
business do not as many services as plan.com have.
Strengths of the company
The company provided good customer service support
It has on-call support
Plan.com entails and provides a high-quality network to access internet on the devices

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 Marketing strategy
Banner outside corporate firms
Social media platform
Advertisements on local channels
Newspaper article (Camilleri, 2018)
Human Resources
There are a total of 150 employees working in plan.com. The hierarchy follows from CEO, COO,
Management head, 6 Team Leaders and the employers under them. The company can have 50
more employers if it is extended to one more branch in the city.
Budgeting
Internet services require 50$ per client
Television Services require 80$ per client
Telephone services require 45$ per client
Total estimated budget taking ideally 100 clients:
Internet: 5000$
Television: 8000$
Telephone:4500$
Total: 175000$ (approximately)
The above-proposed plan will help in achieving the strategic objectives of the company. This plan
is proposed to the investors with some added functionalities as well. The investors can choose not
to invest in the company given their preferences. If that happens, many other funding methods are
proposed in the document which might help the company to grow. The various loan schemes give
support to small enterprises and help them be extended to different cities and become major market
holder enterprise.

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LO4

P5

Figure 5: Failure Reasons

There are several reasons that cause a business to fail measurably. Those such reasons are
mentioned here

1. The real value for business stays undelivered.

2. Proper money conversion is miserably failed.
3. Unable to maintain proper sails and run out of business.
4. The business plan created is not up to mark.
5. Work culture is not ethical for employees.
6. Lack of good leadership and management deeds.
7. Not being able to survive competition.
8. The connectivity to target audience in not proper (Mandl et al 2016).

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 Figure 6: Prevention Methods

Several methods can be used to prevent the business from failure.

1. Maintain the proper cash flow in business.

2. Always be ready for bad situation in business.
3. Make the business free form loans or debts.
4. Take proper SWOT analysis of business.
5. Creation of Robust business plan.
6. Future plans for business should already be prepared (Nair and Blomquist 2019).

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 Figure 7: Different Exit Techniques

If there is no case left to prevent failure from business then thing, we can do is to take
understanding from exit methods for business.

There are lots of exit plans. Exit plans should always be considered for business as it can help in
taking out all the profit from business and go on our own way.

The investors and business persons always take care on an exit plan form business.

Several techniques that are used are as follows:

1. Liquidation

2. Employees Sellout

3. Gradually Liquidation

4. Getting overtaken by others

5. Open market sellout

6. Keeping it in family (Lemley and McCreary 2019).

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M4

Figure 8: Liquification Techniques

Liquification is method where owner decides to quit the business and close at any point. In such
cases all the assets are sold in very less amount of time and could gain very less capital because of
low value of second hand assets. Negotiation is not needed in such cases as decision in taken by
owner. Owner can also restart business whenever he wants.

Figure 9: Acquired by others

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This is case where small scale business is acquired by other companies who are currently leading
in market. It is very beneficial for owners as they get to set their own deal for organization. Taking
exit form this strategy will lead to proper exit form company as you are no longer linked to
company. It a great time spending strategy as there are consequences with this idea.

Figure 10: Timely Liquification

It is a long-term process as it is going to take lots of time. In this process, owner stops spending
money in organization and starts to think of selling existing assets of company. It will to
maximizing profit in company.

The cons are that it will lead to losing the market value of business.

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 Figure 11: Open market Sellout

These techniques are what each and every owner can wish for. It is very beneficial for business as
it can lead to huge profits. Out of all exit methods, this is the hardest one and dream for each and
every business individual.

Figure 12: Family Business

There are cases where owner doesn’t want to leave the business but agrees to take exit. This is
very beneficial for such cases as a business will become your legacy (Brill 2017).

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Conclusion

Following assignments gave us a goal to analyze a small-scale business as plan.com was taken.
Plan.com is basically a small-scale company that provides business telecommunication related
solutions. Different aspects of this organization and its working methodology to improve and
increase the growth of the organization. Showcase of different sources of getting investments in
such organizations for business telecommunications. The different techniques for collaboration for
different companies for future benefits for scale up of company.

Using different sources for funding will also cost the freedom of decision making in the company.
Funding sources are properly analyzed and techniques for betterment of such cases in which gives
best approach in current situation. Benefits and disadvantages of different sources is also critically
explained for plan.com. As of plan.com business plan is designed and proposed with proper
financial guidelines according to such businesses. The plan also focusses on a different scale-up
approaches on the organization.

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