I am having Hard time to produce business proposal for this case. Can you please help? Thank you

Description of the Problem or Opportunity

ARQ Group's liquidity position has been a cause for concern, as the company's current ratio has been declining in recent years. The company's capacity to satisfy short-term financial obligations and its ability to invest in growth possibilities might a poor liquidity position impact both. The company's current ratio dropped from 1.06 in FY2018 to 0.72 in FY2019, showing a decrease in the company's capacity to pay its bills in the near term. This could risk the company's financial stability and lead to potential difficulties in obtaining financing for future growth initiatives. To address this concern, ARQ Group should focus on improving its cash flow management and strengthening its financial position (Susanto, 2020). The company could consider reducing its debt levels, optimizing its working capital, and improving its profitability. Additionally, to lessen its reliance on a single source of income and increase its resistance to market volatility, the firm should diversify its revenue sources. By taking these steps, ARQ Group can improve its liquidity position and increase its financial stability, supporting its future growth initiatives and increasing its ability to compete in a rapidly changing market.

Defining Business needs

Global IT Service Market

Demand for big data analytics, cloud computing, and services connected to digital transformation is projected to rise in the coming years. ARQ Group is well-positioned to take advantage of market growth possibilities because of its solutions in the IT services industry, which include professional services for data and analytics as well as mobile application development (Gonalves & Rosendahl, 2022). To properly capitalize on this expansion, the business must, however, keep ahead of industry changes and make investments in new technology and services to satisfy changing consumer needs. To take a bigger portion of the developing industry and keep up with competitors, ARQ Group must also concentrate on boosting both its local and international clientele (Rousseau & Rousseau, 2021). The ARQ Group may position itself for long-term development and success in the dynamic IT services sector by continuously evaluating and responding to market changes and client demands.

Identify at least three options that can implement the identified needs.

Option 1: Debt Reduction and Working Capital Optimization

One strategy for enhancing ARQ Group's liquidity situation would be to concentrate on lowering its debt levels and maximizing working capital. Several methods, including cost-cutting, efficiency-improving, and investigating potential new sources of income, can be used to accomplish this (Gonalves & Rosendahl, 2022). For instance, the business may improve its terms with creditors and suppliers, take cost-cutting measures like simplifying processes and eliminating waste and look into new market prospects to increase income. By concentrating on these actions, the business may decrease its reliance on debt and increase cash flow, which will enhance its liquidity position and support its long-term financial stability.

Option 2: Investment in Research and Development

Another choice for ARQ Group would be to concentrate on investment in research and development if they wanted to keep ahead of the competition in the cloud computing market and take advantage of the growth potential in this industry. This may entail making investments in the creation of fresh cloud-based technologies and solutions as well as developing a highly qualified staff that can provide these services to clients (Rousseau & Rousseau, 2021). This might be accomplished by working with universities, research organizations, and technology businesses through external collaborations as well as internal training programs. ARQ Group can remain ahead of the competition and take a bigger piece of the expanding cloud computing industry by investing in research and development.

Option 3: Expansion of Client Base

Another strategy for ARQ Group to capitalize on the rising demand for IT services is to concentrate on developing its domestic and global clientele. This can entail creating fresh alliances with businesses in the sector, promoting its products to a larger audience, and establishing connections with significant market participants (Dewanti & Yulianthini, 2021). Furthermore, ARQ Group can concentrate on enhancing its product offerings in fields like big data analytics, cloud computing, and digital transformation, which are seeing increased demand in the IT services industry. The ARQ Group can position itself for ongoing development and success in the competitive IT services sector by growing its clientele and enhancing its income sources.

Recommend one of these options and justify your selection.

Our suggestion would be to concentrate on lowering ARQ Group's debt levels and maximizing its working capital out of the three choices. The principal problem of the company's falling liquidity position, which is the major element impacting the company's capacity to engage in growth projects and preserve its financial stability, is addressed by this option, making it the ideal decision (Salazar Quesada, 2022). The company's capacity to pay its debts quickly and maintain its long-term financial stability will be enhanced by lowering its debt burden and making the most of its working capital. This may be accomplished in a number of ways, including cost-cutting, efficiency-improving, and looking into potential new sources of income. The business may decrease its reliance on debt and increase its cash flow, for instance, by negotiating better terms with suppliers and creditors, putting into place cost-saving strategies like simplifying operations and cutting waste, and looking into new market possibilities. Additionally, the company's capacity to secure funding for upcoming expansion efforts will benefit from strengthening its liquidity position. It will be simpler for the firm to secure funding for expansion projects if it has a good liquidity position, which will inspire trust in the company's capacity to manage its finances among creditors and investors.

In conclusion, the optimal course of action for ARQ Group, in light of the company's main worry over diminishing liquidity and the support it provides for its long-term financial health, is to reduce debt levels while maximizing working capital. The firm will be better positioned to engage in growth projects and boost its capacity to compete in a market that is changing quickly by strengthening its liquidity position.

Bellow is the proposal template. Thank you A LOT

		PROJECT PROPOSAL TEMPLATE
PROJECT NAME
EST. START DATE		EST. FINISH DATE
PROJECT SPONSOR		DEPARTMENT
EXECUTIVE SUMMARY
DESIRED OUTCOME
ACTION TO COMPLETION
BUSINESS VALUE AND BENEFITS OF PROJECT
RISKS OF NOT DOING THE PROJECT
RISKS INVOLVED
PROJECTED MILESTONES with Dates
PROJECTED SCHEDULE
PROJECTED BUDGET
PROJECTED TEAM AND RESOURCE REQUIREMENTS
PROPOSAL MAY BE WITHDRAWN IF NOT ACCEPTED BY DATE OF
ACCEPTANCE OF PROPOSAL
AUTHORIZED CLIENT SIGNATURE		DATE OF ACCEPTANCE