Key Considerations for Evaluating Growth Opportunities - Ansoff's

TASK 1

P1 Analyse key considerations for evaluating growth opportunities

There are different types of opportunities and risks that are introduced in market according to various trends that are helpful for companies to attain better profitability. It is necessary to carrying out an effective as well as efficient research of market scenarios accordingly. This will help to determine possible problems and chances to gain better profits for an organisation (Beatley, 2014). In case of Fordway Solutions They can also follow new trend of innovative or advanced technology to boost up standards of their services to attract new customer along with retaining the current ones properly for achieving better growth of business. It is observed that several key considerations are there which are supportive to evaluate growth opportunities for the Fordway Solutions that are discussed below:

Competitive advantage

The company is required to make an effective and unique strategies that helps in are prepared to improving their brand image in market in front of customers to gain more clients for organisation along with desired benefits. It is considered as major factor which is necessary to be focussed to attain growth of business. Fordway Solutions is required to build more efficient planning to carrying out operational activities for increasing profitability. 

• Resources and capabilities: This can be described as various kinds of resources such as financial, raw material, buildings, vehicles, transportation, storage facility, machines and factory. Apart from this, efficient skills or abilities of human resource available in enterprise is considered into capabilities of business. Fordway Solutions has an appropriate strategy as they utilise all sources on corrective manner and allocate tasks to employees as per their field of expertise to attain better productivity of services to satisfy customers.
• Core competencies: The term core competency refers to an effective tool of management through which they can combine available resources and capabilities of staff members to provide an appropriate value or service to clients of Fordway. (Chen and et. al., 2014).

Porter's Generic strategies

This theory was primarily introduced by Michael Porter that includes three approaches and called as generic strategies such as cost leadership, differentiation and focus. Fordway Solutions can also utilise this model which is given below:

• Cost leadership: The term cost leadership includes preparation of effective strategies to manufacture desired products or service at reasonable price to grab more market share. It is mandatory to fulfil demands of potential clients with efficient pricing policies of an enterprise.
• Differentiation leadership: This can be described as to implement several unique or innovative features into services to make it different from other brands. Thus, it will facilitate to build separated image of company in their minds.
• Cost focus: This factors includes to concentrate on pricing of firm by evaluating competitor's rates and apply require beneficial modifications to get higher profits as well (Eddleston and et. al., 2013).
• Differentiation focus: The Fordway Solutions have to concentrate on quality of it's services and put efforts for improvement that helps to attract new consumers. Which results in profit maximisation of Fordway.

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PESTEL analysis

• Political: The political factors includes several government decision regarding policies, market regulations, norms of political- parties which impacts on operational activities of business. Hence, Fordway Solutions analyse such rules and changes in terms to overcome with them by making accurate strategies to reduce negative impacts of the same and achieving for growth. 
• Economic: This can be described about taxation, interest rate, inflation, currency exchange and unemployment rates fluctuates which effects the business which are risky or beneficial as per situation for an enterprise. These factors are favourable in different markets that facilitates to attain growth of Fordway Solutions.
• Social: The social factor involves different religious or cultural values of people which impacts on productivity of company. Social stability in mind set ups of people will help to accept concept of new IT services which is provided by Fordway Solutions that support to gain success of business.
• Technological: There are different types of technological methods or tools are introduced which are beneficial for improving better profits. Fordway Solutions can apply advanced technique to boost their regular productivity as well as profitability.
• Environmental: This refers to various issues regarding natural environment which facilitate to introduce several rules to save environment and for reducing other relevant problems (Gall and et. al., 2012). Hence, these norms are necessary to be followed by companies to attain growth of business.
• Legal: The various kinds of rules and regulation which are made legal authorities or government that includes several employment laws, health safety etc. Thus, such norm are necessary to be followed by Fordway Solutions to run business successfully for achieving growth.

Development of products: This refers to boost up quality or features of product which helps to attract new customers and improve brand image to attain development. Hence, the Fordway Solutions can achieve success through implementing better features to services by attracting fresh clients along with profitability.

Portfolio strategies:

The portfolio strategies that can be utilised by Fordway Solutions are as follows:

Boston Consultancy Group Matrix

• Stars: This involves those products or services that have best market share along with earning higher profits are known as stars (Levy, 2016).
• CashCows: The cash cows It includes such products which have their monopoly in market and they become leaders along with creating better profits more than they consume money.
• Dogs: This refers to such firms or small enterprises that have low market share as well as less growth rate of business.
• Questionmarks: These can be considered as those sectors that have large growth prospects but less market share.

Product life cycles:

The product life cycle includes certain phases like introduction, growth, maturation and decline. Thus, all these stages provide support to determine correct time to take an appropriate action towards possible risks or opportunities (MacLeod, 2013). This will facilitate to reduce issues and improving productivity of Fordway Solutions.

The diffusion of innovation: This is kind of theory that render help to know about beneficial terms of any new idea or concept that facilitate to improve better profitability and growth of business of Fordway Solutions.

P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix

There are different types of opportunities which are required to be identified at correct time by thoroughly observing and analysing market trends. This is essential to utilise several efficient methods or tools for determining beneficial chances that may facilitate to achieve better growth for business. The Fordway Solutions can use Ansoff's growth vector matrix that is given below:

Ansoff’s growth vector matrix

This can be described as an effective model which is usually applied to understand several risks and opportunities for market expansion as well as growth of business. In case of Fordway Solutions, they can determine efficient opportunities and grab them to improve profitability in proper manner. Several factors of this matrix are as follows:

• Market penetration: The term market penetration is to sell product to present customers in same market area (Moseley, 2013). It includes to build more appropriate strategies to improve quality of services for attracting fresh clients and make them loyal towards brand. Fordway Solutions can boost up their growth of business through increasing quality benefits of their IT services to consumers.
• Product development: This refers to focus on current product and put effective efforts to boost up quality of them as per desires of clients to attain satisfaction. Fordway Solutions should implement several innovative techniques to develop their services and increase their brand image successfully.
• Market development: The factor of market development considers to build more effective strategies or ideas for introducing new concept in market as well as to expand business for gaining more profits on regular basis. Fordway Solutions can enhance their enterprise by applying efficient techniques an achieve growth successfully.
• Diversification: This can be considered as an essential component as it indicates to introduce fresh product or service with new idea to get higher returns. Fordway Solutions can launch unique IT service according to modified needs of customers to grab more market share properly.

Identifying and mitigating risk:

There are various kinds possible risk that should be analysed by firms and take appropriate actions towards them to reduce their negative impacts (Schetke, Haase and Kötter, 2012). Determining forthcoming problems is beneficial because it provides time to think and make correct policy to get rid off easily from such issues. The term mitigating risks can be described as to assess, plan and then sort out risk to decrease their effects on operational activities. Fordway Solutions can identify forthcoming issues and then put effective efforts to solve them properly which facilitate to attain growth successfully.

Exploiting technology and digital platforms:

In present scenario of digitalisation, there are different types of technological methods or tools are introduced which are helpful to conduct business more effectively as well as efficiently. In case of Fordway Solutions, they deals in IT services and can improve their productivity as well as profitability through implementing advanced technological methods. They can expand business by utilising several digital platforms for marketing and selling purposes (Todes, 2012).

Collaborations

• Mergers: When two same levelled firms collaborate with each other and both dissolves their actual brand name and establish a new mergers enterprise with fresh name then it is called merger. It is beneficial to Fordway Solutions in terms to grab more market share to earn better profits.

• Acquisitions: A large organisation will purchase the any small or medium business and then it will known by the brand name of buyer company then it is considered as an acquisition.

Joint Ventures: This refers to legal partnerships amongst two or more companies where both will invest to build thief entity with new concept for competitive advantage (van Assche, Lo and Beunen, 2013).

• Strategic Alliances: This can be described as a partnership in which both firms can use each other's core strengths. It includes certain factors such as proprietary processes, intellectual capital, research, market penetration, manufacturing and distribution capabilities to improve growth of business.

Benefits of Horizontal Integration:

The term horizontal integration can be described as an effective technique in which firms acquire similar enterprises to boost up market share and profits. Hence, it will includes several methods such as mergers, acquisitions and hostile takeover that can be used by Fordway Solutions for enhancing growth of business. Benefits of this technique are improved market share & profits, better quality of service and increase industry & client information.

Benefits of Vertical Integration:

This refers to a kind of business strategy that helps to expand firm by gaining ownership of company's previous supplier or distributor (Valler, Phelps and Wood, 2012). It includes two sections of integration like forward that involves to take ownership from distributors and backward in which suppliers are considered. Fordway Solutions can utilise this policy to enhance their business through vertical integration. Benefits of this techniques are increased competitiveness, greater process control, increased market share, increased supply chain coordination and decreased cost.

Partnerships in Value chain:

The value chain partnership refers to number of firms which are working together on particular product or service for making it much efficient to fulfil actual desires of customers. They all put required efforts together in order to satisfy market demands relevant to specific goods. Fordway Solutions can utilise this tool or concentrating on IT services and make more effective to complete expectations of customers. 

Potential of franchising:

The franchising includes a person called as franchisors that provides right to the franchisee to an individual and several rights to distribute its products, techniques and trademarks for a percentage of gross monthly sales and royalty fee. The Fordway Solutions can apply this method to expand their business in different market along with earning better profits as well.

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TASK 2

P3 Potential sources of funding

There are different types of organisations are running in current scenario of changing trends of market having their own idea or concept. They carried out various kinds of activities or procedures own regular basis effectively to attain required outcomes. It is important to gain different types of resource which are mandatory to run a business in which the most important source is funding which is backbone of any firm. For every single aspect, it needs some amount of money and if any issue will a rising then also it requires funds to sort them out them efficiently. Best thesis help from experts at the best price.

Decision making for investment:

This refers to gain an appropriate amount of capital for start up of business by making master budget to implement for conducting operational activities in proper manner. It includes several factors which are essential to be analysed such as pay back period and net present value along with overall expenses of business. Hence, the Fordway Solutions required to focus on all these components to make budget for carriedying out business in correct way and expand it to earn more profitability as well.

Sources of finance:

There are different kinds of sources from which any funds can be arranged to conduct business more effectively as well as efficiently to gain desired outcomes on regular basis. Fordway Solutions can collect money various resources that are as follows:

• Bank loans: This refers to an easy source to collect funds in which bank provide money as loans at specific interest rates that should be return by firm in particular given period of time.

• Crowdfunding: The term crowdfunding can be described as to collect small amount of money to large number of people to gain sufficient funds which are necessary for investment.

• Peer to peer lending: This refers to method of collecting desired amount of funds through online platforms where lenders will match with borrowers and gain money for investment by mutual conversation of them.

• Angel and venture finance: The angel and venture finance can be described about those individuals who are capable to provide sufficient funds which are necessary to invest in business.

TASK 3

P4 Design a business plan

The business plan refers to written document of plan of action in which all effective strategies or policies are mentioned to be followed for attaining desired gaols and objectives successfully. It is kind of blueprint of various steps that are required to be completed in correct manner to fulfil regular targets of productivity as well as profitability of an organisation. The Fordway Solutions also requires top build an appropriate business plan to expand it for earning better profits along with achieving desired growth of an enterprise properly. A business plan is given below:

Executive summary:

The given business plan is based on the IT company named as Fordway Solutions that provides various software services to customers and fulfil their demands in proper manner. They have their own unique and effective strategies or policies for carrying out business in correct direction and earn better outcomes on regular basis successfully.

Overview of the company:

The business plan will discussed about Fordway Solutions that has business of IT services and provides several benefits to consumers properly. It basically deals in information technology consultancy activities and renders supply, installation and support of computer systems, software and computer networks.

Vision and mission:

The vision of this company is to improve their strategies and techniques in more effective as well as efficient way to expand business and become most preferred company amongst people. Mission of Fordway Solutions is to provide more beneficial IT services to consumers and complete their expectations properly.

Stakeholders:

The different stake holders are employees, owners, suppliers, customers, government and shareholders which are helpful to provide important feedbacks and suggestions. Hence it will facilitate to put an appropriate action towards certain opportunities or risks and gain desires benefits by IT company Fordway Solutions.

Successful entrepreneurial strategies:

There are different kinds of strategies that are applied by entrepreneurs that provide support to achieve success in business. In case of Fordway Solutions, they can utilise several methods such as study the competition, research about new product, tackle with certain problems of business, listen to client's feedbacks and so on. Thus, all these strategies are helps to improve probability of company and facilitate to attain growth of business successfully.

The above data shows the net profit and funds of an organization which is left at the end of the year.

TASK 4

P5 Assess exit or succession options for a small business

The several ways to exit and succession for small business like Fordway Solutions are given below:

Exit routes for successful business

Selling or floating of business:

In this part, it is kind of exit technique in which the shares of business are sell being sold to stock market and open to public for investment. It can used by companies to know about actual value of business which is supportive to sell it in an appropriate amount. 

Valuing the company:

This refers to an exit method in which set of procedures of applied to calculate an economic value of business to sell it in proper manner. It will render help to understand an accurate value of company which facilitates to take correct decision of right time and buyer to sell the business.

Areas of potential conflict:

This can be described as strategy to success in which potential areas of conflicts can analysed to reduce negative impacts of them to earn desired outcomes effectively. It will facilitates to reduce negative impacts of problems between employees to maintain peaceful and healthy working environment in company.

Succession planning:

In this part, it is necessary to build more appropriate plan of action conduct business properly that facilitate to attain better profits. This will help to put efforts in correct direction to achieve desired goals of business.

Cultural issues:

Several cultural issues are also raised between employees which impacts on operational activities that are required to be decreased. Thus, it will help to establish better cooperation amongst staff members that results into desired benefits. Moreover, peaceful working environment will supportive to achieve targets with better outcomes on regular basis.

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CONCLUSION

The above report had concluded that the term planning for growth can be described as a strategic business activity that allows people to conduct their firm to attain desired productivity and profitability. It is necessary to determine all possible forthcoming problems which is beneficial because it renders proper time to think and make correct technique to get rid off easily from such issues. It is important to gain different types of resource which are mandatory to run a business in which the most important source is funding which is backbone of any firm.

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