Urban Growth Planning and Business Expansion Strategies

The assignment is focused on understanding the importance of urban growth planning and business expansion strategies for small businesses. It involves analyzing external factors using PESTLE and Ansoff's matrix, identifying future opportunities in the market, and determining funding sources such as bank loans or angel financing. The document also highlights the significance of a business plan in capturing customers' attention and expanding activities in the market place.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration for evaluating growth opportunities and justify these consideration.......1
P2 Opportunities for growth applying Ansoff's growth vector matrix.......................................3
TASK 2............................................................................................................................................5
P3 Potential source of funding available to businesses and discuss benefits and drawbacks.....5
TASK 3............................................................................................................................................6
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business...................................................................................................................6
TASK 4............................................................................................................................................7
P5 Assess exit or succession option for a small business explaining the benefits and
drawbacks of each option............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Planning is one of the important aspect for every business organization to accomplish the
goals and objectives. Mainly, it refer to the preparing strategies and plan that help in capturing
future opportunities in market place. In addition of this, SME's also play a vital role in enhancing
the economic growth of the nation (Abolhasani and et.al., 2016). By preparing a plan, small
organization can easily attain desired growth at market place and at the same time also capture
larger market share from its rivals. Present report is based on Spring taste catering, is new food
company that operate its business in UK. The main aim of this firm is to provide best catering
services to the customers as per their requirements. It also entering into a contract that is related
to the catering services with The University of Leicester for innovation hub. This report
discussed about the key consideration for evaluating the growth opportunities and different ways
to funding for the business. Along with this, business plan is mentioned in this report that
includes business strategic objectives and ideas. At last, ways of exiting and succession is also
discussed here.
TASK 1
P1 Key consideration for evaluating growth opportunities and justify these consideration
Growth is important for business organization to sustain in market place for period of
time. This will contribute in enhancing the market share of the company and customers base as
well. In context of this, Spring taste catering is a small company that provide catering services
for innovation hub of The University of Leicester with the aim of expanding their business in
market. In this, the company has opportunities to enhance its market share by providing healthy
and organic food services to the customers because now days consumers are more aware towards
the health issues. This is beneficial for the company to capture market share by delivering
healthy and organic products to the customers in market. Apart from this their are some key
consideration that help business to evaluating the growth opportunities in market place. These
can be understood by following points:
Porter's generic strategy:
It is an important strategy that determine how a business can ascertain competitive edge
from its rivals in market. Mainly, porter's generic includes four strategies that can be used by the
company with the aim of enhancing their performance level and establishing competitive image
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at market place. It also help business organization to expand its activities by analysing actual
performance and growth as well. All the strategies of Porter's can be understood by following
points:
 Cost leadership: This type of strategy is related with the high quality products at low and
affordable price. In this, company needs to deliver their best services to customers at
reasonable cost. This will help in attaining competitive advantages from its rivals. In
context of Spring taste catering, it can serve its food services at affordable cost by
reducing the manufacturing cost. By this they can easily enhance their market share from
its rivals.
 Differentiation: Under this strategy, company needs to manufacture unique and
innovative products that not available in the market. By this, company easily capture
customers attention towards its offerings. For attaining the same, Spring taste catering
can do appropriate research and use innovative ways to produce quality and best products
to their customers as per their needs. This will directly contribute in capturing lager share
and at the same time also make strong customers base.
 Cost focus: Under this, company focus on the niche market and produce products at
lower cost to fulfil customers unique needs and wants. By this Spring taste catering can
easily invite large number of customers towards their food services and established their
competitive image.
 Differentiation focus: This strategy states that, company needs to produce unique food
products that is totally differentiate from the competitors products. It help company to
enhance profitability level at market place. By using this strategy, Spring taste catering
can capture customers attention and also gain higher market share from its rivals.
As Spring taste catering is small company that take catering contract for innovation hub
of University of Leicester to increase its growth at UK market. In this, company can adopt cost
leadership strategy in which they provide quality products to their customers at lower cost
(Ahmed and Bramley, 2015). By this company will be able to easily invite more and more
customers and at the same time also be able to attain competitive image at market place.
PESTLE analysis:
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It is also an important consideration through which Spring taste catering can easily
determine the influence of external factors that have direct impact on the organization activities
and growth as well.
 Political: It is one of the important factor that influence the organizational activities. As
political nature of UK stable, so it becomes easy for firm operate its business. It
positively impact on the Spring taste catering by providing them opportunities to
established their positive brand image at market place.
 Economical: After Brexit, economy condition of UK provide opportunities to small
business to operate their business at market with the purpose of attaining higher success
(Beatley, 2014). In this, Spring taste catering has chances of develop their operational
activities in appropriate manner. By this company can easily increase their market share
and profitability level as well.
 Social: It is related with the customers taste, culture, education which influence the
overall performance of Spring taste catering. As customers in UK market is more aware
towards the health issues in which is beneficial for the company to increase its positive
image at market and customers mind as well. As the company is going to provide organic
food so it would be beneficial for firm to operate its business in UK market.
 Technological: Under this, new and innovative technology provide benefits to the
Spring taste catering to produce quality and healthy food. With the help of this, company
can easily influence customers to buy its products. By this company can easily expand
their business at market place and capture high market share.
 Legal: It is important for Spring taste catering to follow all the legal rules and regulation
that are developed by the UK government. It is supportive in nature that support small
and medium size companies to grow their business at market.
 Environmental: This factor is important for company to build their positive image at
market place. Spring taste catering is provide food services to customers in which they
needs to includes all the environmental laws within their activities. This will help in
growing the business activities at market place.
P2 Opportunities for growth applying Ansoff's growth vector matrix
Every business organization wants to capture opportunities in market place by preparing
an effective plan and activities. In this context, Ansoff's growth matrix consider as an important
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tool which used by the company for strategic planning which directly contribute in implementing
future growth strategies. The main purpose of this matrix is to evaluate the ways to attain growth
by focusing on existing and potential customers (Eyvindson and Kangas, 2015). By this
company can easily enhance their productivity level at market place. For attaining the same,
Ansoff's matrix also support Spring taste catering to capture future opportunities in the market
place. This model includes 4 strategies of growth that can be understood by following points:
Market Penetration: Under this strategy, company focus on delivering existing products
in existing market that may help in enhancing overall profitability level of the company at
market place (Huang and Zhang, 2014). This type of strategy is beneficial for company because
of having proper knowledge about the customers taste and preferences. By this, organization
provide quality products to its existing customers at affordable cost. It directly contribute in
increasing customers base and market share as well.
Product Development: Under this strategy, organization produce the new products in
the existing market for capturing customers attention. Along with this, they can also implement
some modification within the products and its features. With the assistance of this, company can
easily fulfil customers needs and wants in order to establishing their competitive image at market
as compare to its rivals.
Market Development: Under this strategy, company can provide existing product in
new market that provide opportunities to the company to increase their profitability. Mainly it is
related with the growth strategy through which organization easily capture customers attention
but on the other hand it is more risky. Thus, it is important for organization to keep proper
knowledge about the customers and market trends before entering into new market. This will
help in enhancing overall sales at market.
Diversification: It is related to developing as well as launching new products in new
market with the aim of expanding business. When company use this type of strategy than they
needs more investment to produce new products in market. As it required more promotion and
advertisements to make customers aware towards the new product. In organizational context,
they needs to skilled workers and marketing department to evaluate the market trends. It help in
increasing the market share of the company.
From all these strategies, Spring taste catering can use Market Penetration because
company serve quality products in UK market with the aim of grabbing customers attention and
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at the same time also influence them to but its products. This will directly contribute in
establishing positive brand image at marketplace.
TASK 2
P3 Potential source of funding available to businesses and discuss benefits and drawbacks
Funding is one of the important aspect for every business organization to fulfil their
financial requirements. Mainly, it is consider as an important process that used by the company
with the aim of gathering adequate fund (Leigh and Blakely, 2016). By this company can easily
operate their operational activities in appropriate manner and at the same time also attain set
goals and objectives in stipulate time frame. In context of Spring taste catering, entrepreneur
already has £20000 to invest in business but they needs £300,000 to expand their business in UK
market. As there are some internal and external sources of funding which help Spring taste
catering to run their business in appropriate way. Mainly, company use both sources for
gathering £280,000 funds. All these resources can be understood by following points:
Internal sources: These are the sources that present within the organisation. In this
company raise fund by raising assets and another aspects that help them in operating its
operational activities in appropriate manner.
External sources: These type of sources are present outside of the organization as
company collect fund from various sources like angel funding, bank loan and so on.
 Bank loan: It is one of the common external source of funding in which company easily
gather adequate fund and operate their operational activities in effective manner. Under
this bank give loan to the business organization and also provide rate of interest for a
certain period of time. With the help of this, Spring taste catering can easily gather
remaining amount as it is an appropriate option for the company to fulfil its requirements
related with the financial amount.
◦ Advantage: One the main benefit of bank loan is that, it is cost effective for company
because the interest rate of loan is lower which help organization to save money.
◦ Disadvantage: The main disadvantage of bank loan is repayment burden on business
organization to raise the fund.
 Crowd funding: It is also an important source of funding which used by new venture for
collect enough fund for running their business (Liu and et.al., 2014). Mainly, it is done by
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online portals like websites, social media and many more. By using this method,
company can gather small amount from large number of people rather than gathering
huge amount of fund from small number of people.
◦ Advantage: The main advantage of this method is to attain people and media
attention towards the brand image of the company (Miguez, Rezende and Veról,
2014).
◦ Disadvantage: The main drawback of this method is that it includes legal formalities
that make this process more complex and difficult as well.
 Angel financing: This method is more effective for gathering funds in which investor
invest huge amount of fund in business with the purpose of attaining equity position.
With the assistance of this, company can easily improve their performance level. In
context of Spring taste catering, they can take support from the angel investors at the
time of fund requirement. By this they easily take contract from The University of
Leicester for innovation hub.
◦ Advantage: The main benefit of this method is that it is less risky for company as
compare to another methods.
◦ Disadvantage: On the other hand it could be costly for business organization to
gather fund.
TASK 3
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business
Business plan consider as an important document which define a new venture, its
products and purpose as well. It provide appropriate path through which company easily attain
their set goals and objectives in stipulate time frame. Thus it is important for Spring taste
catering to prepare and implement an effective plan to grab future opportunities. Mainly, it
includes company mission, vision, goals and objectives that support business at the time of
operate their activities in market place. In this context, the main purpose of preparing a business
plan is to invite more investors and customers as well (Pothukuchi, 2015). As Spring taste
catering is also tries to expand its business in new areas in which they needs to prepare an
effective business plan. It includes various aspect such as:
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Executive summary: Spring taste catering is small company which provide healthy and
organic food products to customers with the aim of enhancing profitability. In this, company
expand their business by producing healthy and organic food services in UK market for inviting
larger customers. Spring taste catering has £20000 to invest in business but they needs £300,000
to enter in contract catering services with The University of Leicester for innovation hub. For
attaining success company set various aspect and also implement which may help in enhancing
the brand image of the company at market place.
Vision: The main vision of Spring taste catering is to capture customers attention by
promoting better awareness towards its healthy and organic food products.
Mission: To provide quality and organic food products to customers at affordable cost is
main mission of Spring taste catering (Smith and et.al., 2014). By this, company easily increase
profitability level.
Objectives: The main smart objective of Spring taste catering is to expand its business
in other areas of UK market in upcoming 5 years. Firm wants to increase sales of products by
20% in next 2 years.
STP: It is an effective model consist three aspects which help business organization to
effectively analyse their offerings and also communicate to their specific group to attain
desirable profitability level.
Segmentation: Under this, company segment market on the basis of behavioural
segmentation where they target the consumers who are health conscious.
Targeting: In this company targeting specifically the customers who are health
conscious.
Positioning: Recently, Spring taste catering located at London in which they use market
penetration strategy to attract large number of customers by providing them quality products and
services at affordable cost. It attracts customers by providing them best catering services as per
their need.
For attaining the same, company launch a organic burger which help in inviting
customers. In this, Spring taste target to health conscious people like young generation and old
people as well who are more conscious towards their health . By this, company increase the
chances of gaining larger market share from its rivals.
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Financial information: It is important for new venture to raise their funds for expanding
as well as operating their business other areas. As Spring taste catering launch its new business
for delivering healthy and organic food products in market with the aim of enhancing their
overall growth. In context of this, entrepreneur has £20000 and they required £300,000 to
effectively run their business. For gathering rest of finance, company needs to use various
sources like, bank loan, angel financing, overdraft and many more to gathering adequate fund.
This will directly contribute in maximizing the profitability level at market place.
TASK 4
P5 Assess exit or succession option for a small business explaining the benefits and drawbacks
of each option
Business environment play vital role in operating as well as executing activities of the
company in market (Exit Strategy for Your Small Business, 2018). The nature of business
environment is complex and unpredictable for the company. As it directly influence on the
profitability and productivity of the company. For this management may select the exit option to
exit from the market. In includes some ways along with advantages and disadvantages:
Liquidation: It is an process by which organization closing their business activities by
selling assets to repay creditors. By this company easily end the business.
 Advantage: The main advantage of this option is that it reduce the pressure of owner of
the company to repay debts. It also reduce the legal action for the business organisation.
 Disadvantage: One of the main drawback of this method is that once assets are sold than
it can not be retained. By this company reduce opportunities to use assets. Along with
this, company also lost their skilled and talented workers.
Sell the business in open market: It is also an option to end the business in which owner
sell their business to third party. In this, third party can be manager and employee of the
company who have interest to buy business.
 Advantage: The main benefit of this option is that it increase the motivation and loyalty
of the staff members to perform their task appropriately (Whelpton, Campbell and
Patterson, 2015).
 Disadvantage: On the other side, some time employees are not able to take over the
business due to their qualification and experience as well.
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From these strategies of exit, Spring taste catering can use sell the business in open
market option in which they sell their entire business in third party who can be manager and
employee as well. By this company can easily exit from the market.
CONCLUSION
From the above mentioned report, it has been concluded that planning is an activity that
consider as an process for business organization to attain future growth in market place. By
preparing effective plan, company can easily improve their performance and at the same time
also attain desired goals. In addition of this, for attaining growth company needs to determine the
external factors by using PESTLE and Ansoff's matrix. It help Spring taste catering to capture
future opportunities in market. Company also use various sources like bank loans, angel
financing and many more to gather enough fund to operate their business. For attaining
customers attention, business plan is also important for company through which they can easily
expand their activities in market place.
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REFERENCES
Books and journals
Abolhasani, S. and et.al., 2016. Simulating urban growth under planning policies through parcel-
based cellular automata (ParCA) model. International Journal of Geographical
Information Science. 30(11). pp.2276-2301.
Ahmed, S. and Bramley, G., 2015. How will Dhaka grow spatially in future?-Modelling its
urban growth with a near-future planning scenario perspective. International Journal of
Sustainable Built Environment. 4(2). pp.359-377.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Eyvindson, K. and Kangas, A., 2015. Evaluating the required scenario set size for stochastic
programming in forest management planning: incorporating inventory and growth
model uncertainty. Canadian Journal of Forest Research. 46(3). pp.340-347.
Huang, B. and Zhang, W., 2014. Sustainable land-use planning for a downtown lake area in
central China: multiobjective optimization approach aided by urban growth
modeling. Journal of Urban Planning and Development. 140(2). p.04014002.
Janssen, J. and et.al., 2014. Heritage planning and spatial development in the Netherlands:
changing policies and perspectives. International Journal of Heritage Studies. 20(1).
pp.1-21.
Leigh, N. G. and Blakely, E. J., 2016. Planning local economic development: Theory and
practice. SAGE publications.
Liu, X. and et.al., 2014. Simulating urban growth by integrating landscape expansion index
(LEI) and cellular automata. International Journal of Geographical Information
Science. 28(1). pp.148-163.
Miguez, M. G., Rezende, O. M. and Veról, A. P., 2014. City growth and urban drainage
alternatives: Sustainability challenge. Journal of Urban Planning and Development.
141(3). p.04014026.
Pothukuchi, K., 2015. Five decades of community food planning in Detroit: city and grassroots,
growth and equity. Journal of Planning Education and Research. 35(4). pp.419-434.
Smith, H.M. And et.al., 2014. River basin management, development planning, and
opportunities for debate around limits to growth. Journal of hydrology. 519. pp.2624-
2631.
Whelpton, P. K., Campbell, A. A. and Patterson, J. E., 2015. Fertility and family planning in the
United States. Princeton University Press.
Online
Exit Strategy for Your Small Business. 2018. [Online]. Available
through:<https://www.thebalancesmb.com/small-business-exit-strategies-2947988>.
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