Smart Growth Planning and Company Liquidation

This assignment delves into the realm of smart growth planning, covering various aspects such as California's Senate Bill 375, comprehensive planning, and strategic spatial planning. It also touches on company liquidation, including its advantages and disadvantages, and references relevant studies and articles from journals and books. The assignment aims to provide a thorough understanding of these concepts for better policy formulation and development in the long run.

PLANNIG FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating the growth opportunities.................................................1
P2 Identification of growth opportunities by the use of Ansoff's growth matrix........................4
TASK 2............................................................................................................................................5
P3 Potential sources of funding and their advantages and disadvantages..................................5
TASK 3............................................................................................................................................7
P4 Designing business plan for growth of organisation..............................................................7
TASK 4............................................................................................................................................9
P5 Exit and succession option for small business.......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning for growth means making strategies which are competent for growth of
organisation. In this different strategies are framed which plays essential role in development of
association. To take business at hype, there is requirement of planning by top level managers and
subordinates to act accordingly. There are many areas such as operations, productions, which
helps to run business operations in smooth manner (Barbour and Deakin, 2012). Manager has to
make alteration in their business operations, so growth prospects can be open for organisation.
This report is based on printing press “Pixel and Prints” which initially deals in printing
newspaper, but they are thinking to expand business through printing magazines. They under a
contract name as “Print and Distribution of South Lakeland” for selecting sources of funds. In
this report there is discussion about evaluation of growth prospects, methods of raising funds,
business plan, exit and succession policy.
TASK 1
P1 Key considerations for evaluating the growth opportunities
“Pixel and Prints” is a small firm which deals in newspaper printing. This organisation
has machines for printing newspaper, now they are thinking to come with print magazines. These
days there are many types of magazines such as sports, fashion, cooking, kid’s magazines so
there is scope of expansion of business. This is opportunity of growth for “Pixel and Prints”.
Managers analyse market and then final to start printing magazine.
In printing sector, customer satisfaction can be achieved through good printing quality,
clear font, etc. which makes magazine popularise in society. So to get positive outcome
managers of “Pixel and Prints” has to keep these factor in mind. Managers of “Pixel and Prints”
has to analyse demand and then print magazines as per requirement (Chapin, 2012). Porter's
Generic Strategy is used by “Pixel and Prints” to analyse market and then strategies are framed.
Porter's Generic Model performed by managers of “Pixel and Prints” are as under-
Cost leadership strategy- In this strategy, products are priced at affordable price, so
customers can afford it. “Pixel and Prints” has to make price of printing reasonable, so customers
want to avail services. When cost of printing s cheap then profits of “Pixel and Prints” increases.
This helps to make good and long term relations with customers. This can be done through
proper planning and actions are taken after analysing market. For e.g. channelize distribution
system, proper facility of warehouse, etc.
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Illustration 1: MICHAEL PORTER'S FIVE GENERIC STRATEGIES
§§
(Source: MICHAEL PORTER'S FIVE GENERIC STRATEGIES, 2018)
Cost Focus strategy- As per this concept, there is difference in cost charged with
customer. According to this concept manager must fix price according to buying power of
customers. This helps to provide different price product according to purchasing power of
consumer. This helps to provide satisfaction to every customer. “Pixel and Prints” has solution of
every kind of customers.
Differentiation focus strategy- There must be some difference according to demand of
customers. This helps in satisfying customer demand as per their choice. “Pixel and Prints” can
use option of paper quality for printing magazine. This makes product according to expenditure
capacity of customers (Christofakis and Papadaskalopoulos, 2011). Differentiation focus strategy
helps in increment demand of customers and their satisfaction level.
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Differentiation strategy- Differentiation strategy means to provide product which is not
similar to competitive brand. This helps in creating good image in society. Managers of “Pixel
and Prints” has to focus on innovation so they can come with new concept. New changes and
innovations can be done by making analysing market. These days’ changes are taking place very
frequently, so “Pixel and Prints” has to accept alteration for customer satisfaction.
With this strategy it is easy for managers of “Pixel and Prints” to analyse market. As
there is much competition, so policies has to framed according to market trends. There are many
farces which affects business operations (Eddleston and et. al., 2013). These factors include
internal as well as external factors such as management, customer, political factors, etc.
Managers of “Pixel and Prints” has to alter business operations accordingly, this helps in smooth
running of business. PESTLE analysis helps to analyse external factors affecting business.
Basis “Pixel and Prints”
Political Political factors include involvement of
governmental parties in running business.
There is requirement of approval of
governmental party to expand business. In case
of change in political party, there are
possibilities of change in organisational
methodologies.
Environmental Environmental factor includes policies which
are relevant for paying back to society. “Pixel
and Prints” must use methods through which
solar energy can be saved and utilised. There
must be use of recycled papers.
Social Social factors involve analysis of demand or
trend which is current in market. As there is
difference in requirement of customers, so
managers of “Pixel and Prints” has to select
approaches which helps to increase sales.
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Technological In technological factor, internet facility, easy
communication channel is emphasised. This
helps in ease at working place as well as
customer satisfaction is possible. “Pixel and
Prints” use intranet through which information
can be delivered. It is easy for managers of
“Pixel and Prints” to communicate and analyse
their demand. Nano graphic printing
technology is used for printing magazine.
Legal There are some laws such as employee’s
remuneration act, safe and security act, etc. for
employees. This helps in smooth running of
business and actions are performed in
accordance to legal norms. In case of any miss-
happening “Pixel and Prints” is liable under
specific law.
Economical Economical factor involves finance related
elements. In this tax rate, inflation rate,
exchange rate, etc. are involved. “Pixel and
Prints” deals in export of magazines, which has
import export duties implied on it.
P2 Identification of growth opportunities by the use of Ansoff's growth matrix
“Pixel and Prints” is a small firm which gets affected because of change in demand of
customers. They have to alter policies in order to satisfy demand of customers. “Pixel and Prints”
has to analyse market and actions has to be taken according to market trends. There are
possibilities that due to change in demand of customer’s manager has to motivate their
employees. Ansoff's Growth Matrix is one of the best technique to know growth prospects for
organisation. Ansoff's Growth Matrix for “Pixel and Prints” is as under-
Market penetration- As per this approach there is requirement of some technique which
are important for selling existing product among existing market (Grover, Bokalo and Greenway,
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2014). This is one of the safest approach to market existing product among customers. This can
be done through more and more promotional events. “Pixel and Prints” deals in newspaper
printing business, so they have to market newspaper in terms of paper quality, printing, etc. This
helps to increase faith of customer in “Pixel and Prints”.
Market development- As per this concept, existing product is marketed among new
consumers. This helps in increment in sales and profits. There is requirement of introducing
existing product in front of new consumers. “Pixel and Prints” has to market newspaper among
old age people, so sales of organisation can be increased. This helps to work according to market
trends and actions are performed in appropriate way. This can be done when some news related
to old age people is printed (Hough and et. al., 2010).
Product development- In product development there is introduction of new product in
present market. This can also be done by entering in other segment. “Pixel and Prints” are
entering in magazine printing segment, so this must be market among existing customers. This
help to satisfy customer need. There is satisfaction of customer at one place, so competition also
increases. Printing of magazine must be marketed among existing customers. So demand of
printing magazine increases.
Diversification- In diversification, there is launching of new product among new target
market. This is one of the best technique to enter in new market. There are possibilities that some
customer may prefer to avail magazine printing services, while some don not prefer. But
thistechniques helps to cover vast customer base. “Pixel and Prints” can contact to new people in
order to take contracts for printing magazine.
From the above discussion it is clear that “Pixel and Prints” must use product
development and diversification. This helps organisation to increase sales and profits. It is
essential, to make policies which are effective and significant for growth. Managers of “Pixel
and Prints” are thinking to undertake contract “Print and Distribution of South Lakeland” for
raising funds so with the help of diversification managers able to market magazine printing unit
among new customers. While with the help of product development it is easy to market
magazine manufacturing among existing customers. This helps to increase faith of customers and
helps in maintaining good relations with them (Keough, 2015).
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TASK 2
P3 Potential sources of funding and their advantages and disadvantages
“Pixel and Prints” deals in printing newspapers. Now managers are thinking to expand
business by entering in magazine manufacturing unit. It is important to plan resources such as
machinery, finance, training, etc. so business activities can be implemented in proper way. In
order to raise funds managers of “Pixel and Prints” enter in a contract “Print and Distribution of
South Lakeland”. As per analysis there is requirement of £300,000. Out of this total fund,
£20000 they invest through internal source that is ploughing back of profits. While remaining
£280000, they are thinking to raise through external sources that is 50% through peer to peer and
20% through bank loan and remaining 30% through crowd funding.
Peer to peer- This is the way in which funds are generated with the help of peer members
(Li, Mobin and Keyser, 2016). According to this team mates raise funds on its own with mutual
consent. In this approach bank are not present in between members.
Advantages Disadvantages
 In this there is equal collection of
money from peer members. This helps
to provide satisfaction to customers.
 This method is cheap as compared to
other sources. There is no need of
reviling information related to business
operations.
 Under this there is lack of information
related to usage of funds. Peer members
has no right to know portfolio from
“Pixel and Prints”.
 This method affects credit rating of
organisation.
Crowd funding: It refers to funding the project or business through funds that will be
acquired by general public or crowd, it is one of the most popular sources of funding. Crowd
funding can take place in various forms like making an Initial Public Offering to people through
stock market etc. or issuing debentures to people for the purpose of raising debt etc.
Advantages Disadvantages
The major benefit of crowd funding is that it
raises the reputation of organisation among
general public and at the same time provides
It is a costly way of raising funds and
formalities involved are too high as well.
Equity Dilution is also there is this type of
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easy access to funding to organisation. funding.
Bank loan: This is yet another form of funding for organisation, the organisation
approaches Bank for taking funds, the bank after considering the financial health and position of
the firm and making necessary collateral will issue bank loan to the firm, which has to be paid
back within specified period and with a certain rate of interest.
Advantages Disadvantages
The major benefits of bank loan is that there
are no dilution of ownership and it can be
easily paid back by the company if the rate of
interest is low and repayment terms are quite
flexible.
The rate of Interest can be high, thus higher
interest burden on company. There is a need of
Collateral in bank loan, the availability of the
same is not always possible with the
organization.
TASK 3
P4 Designing business plan for growth of organisation
Business plan is one of the important technique which helps in performing business
operations in effective and efficient way. Business plan helps organisation to plan activities in
order to achieve targets. This helps to perform business operations in effective and efficient way.
Employees are aware of actions which has to be taken (MacLeod, 2013). There is
synchronization in activities of workers. Business plan is guide for performing operations in
order to achieve set targets. As managers of “Pixel and Prints” are thinking to expand business in
magazine printing, so they have to follow business plan which helps to perform business
operations in appropriate way.
Vision & Mission:
Vision: “Pixel and Prints” vision is to come with best quality newspaper and magazine at
affordable prices.
Mission: “Pixel and Prints” wants to expand their business in different parts of country and
want to be leading brand in printing.
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Objectives strategies costs:
Strategic objectives: Strategic objective of “Pixel and Prints” is come with best quality printing
services. This helps to satisfy customers demand related to printing. This can be achieved with
the help of SMART objectives. As per this, objective must be specific, measurable, achievable,
reliable, time bound. As per this concept expansion of business in printing segment is specific
as it enhance one more business segment. This is measurable in terms of profits and sales. This
target has to be achieved within 1 year. This helps managers of “Pixel and Prints” to pan
business operations according (Mitchelmore and Rowley, 2013). There is requirement of
various resources such as human resources, finance, raw paper, machines, etc. so planning has
to be done accordingly. Thus, through this company is expected to enhance its market share and
to gain edge over its rivals.
Financial information
Finance is one of the important concept which has to be considered by managers of “Pixel
and Prints”. This helps to work in accordance to market trends (Valler, Phelps and Wood,
2012). It is essential to make policies which are effective and signifiant for growth of
organisation. There are different mode through which funds can be raised. So managers has to
select best source which are effective for growth of market. Managers of “Pixel and Prints” are
using internal as well as external sources such as retain earning, crowd funding, peer to peer and
bank loan. This helps to satisfy demand of funds so actions are performed in accordance to
growth of “Pixel and Prints”. Financial expenditure for printing magazine are as under-
Total forecasted budget
Particular 31/12/15 (£) 31/12/16 (£) 31/12/17 (£)
Machinery cost 3000 - -
Promotional expense 800 900 500
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Advertisement
expense
700 600 800
Machine Maintenance
cost
800 900 550
Miscellaneous 300 500 200
Total Cost 5600 2900 2050
From the above discussion it is clear that there is requirement of machinery cost at initial year
i.e. £3000. This cost is one time cost but machine maintenance cost is permanent and occur
every year. There is requirement of promotion of printing magazine in every year £88, £900,
£500. Advertisement expenses also occur every year i.e. £700, £600, £800. This helps in raising
profits and sales of organisation (Moseley, 2013). Miscellaneous expenses involve other
operating expenses associated with magazine printing. This also incurs every year with nominal
charges i.e. £300, £500, £200. This analysis helps organisation to reduce expenses so profits can
be increased.
TASK 4
P5 Exit and succession option for small business
While running small business, there are possibilities of growth as well as failure. There is
requirement to frame policies which are concurrent as per market trends. Managers of “Pixel and
Prints” are planning for expansion of business in magazine printing, so it is essential to take
decision appropriately. There are different methods of expansion as well as exit from industry.
Various methods of exit are as under-
Liquidation - In case “Pixel and Prints” face losses, then they can go with the option of
liquidation (Pallagst, 2010). This is the best method under which all asset and liabilities paid off.
After paying all expenses remaining amount is distributed among shareholders and company gets
dissolved. There is no more existence of association.
Advantages Disadvantages
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 There is full and final satisfaction
liabilities and asset. There is proper use
of resources in order to settle all debts.
 Liquidation is proper legal method
which is effective and reliable for exit
from industry.
 Liquidation is time and cost consuming
process so managers do not prefer it.
 There are possibilities that employees
may ask for frequent payment of their
dues, this affects image of association
in industry.
Sell in open market- When business is not able to bear cost and run out of loss, then
managers can choose options of selling business in open market. In this some specified amount is
paid by buyer and business will run in the same name but owners gets replaced.
Advantages Disadvantages
Brand image will remain same as business will
continue in industry. There is increment in
profitability of “Pixel and Prints”.
Employees and other stakeholders may for
repayment of their investment, which affects
existence of “Pixel and Prints”.
Various methods of succession are as under-
Merger and acquisition- Under this method there is combination of two methods. This is
effective as business can grow with the name of two organisation. This organisation can be
related or unrelated. But there is proper settlement of assets and liabilities, so there is no problem
in establishing new organisation. Resultant organisation will be in name of combination of two
organisation. This options helps organisation to expand business with more resources and
customer base (Todes, 2012).
Advantages Disadvantages
 This options provides use of more
resources in effective and efficient
manner.
 Sale, profitability, operations are at
wider scale. There is increment in
capabilities, competencies of
organisations.
 There is requirement of formal and
legal policies in formation of new
organisation.
 There is lack of confidentiality in
business policies which affects
competitor’s product.
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 Customer gets best services, so there is
improvement in customer satisfaction
which helps to enhance image of
organisation.
 In merger there are bright possibilities
of conflict among employees and
employer. This affects overall
performance of resultant organisation.
Integration- In this options managers can think to join hands with some other business.
This helps to make business operations in more effective and efficient way. All the business
activities are planned and assigned in accordance to set targets and mutual goals.
Advantages Disadvantages
This is legal process, so there is process
registration of integration of business. There is
collaboration of skills, assets, etc. which helps
in running business in more effective way.
There are possibilities of conflict among
partners which affects working style of “Pixel
and Prints”.
CONCLUSION
Planning for growth as well as development of business is a very crucial aspect for any
enterprise. The management of any organisation has to make sure that effective as well as
efficient strategies are framed to take business forward and make it grow. There are various
aspects that needs to be planned for an organisation, these includes planning of funds, cost
structure, as well as effective and efficient management of human resources of the organisation.
Thus there is a need to have proper and effective knowledge of all the business aspects so that a
better policies and procedures can be framed by the organisation for overall development and
growth in the longer run.
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REFERENCES
Books and Journals
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.
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.
Hough, P. and et. al., 2010. The worker co-op sector in Canada: Success factors, and planning
for growth. Canadian Worker Cooperative Federation.
Keough, S. B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability growth
planning in early product-development stage. IEEE Transactions on Reliability. 65(2).
pp.769-781.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Pallagst, K., 2010. The planning research agenda: shrinking cities–a challenge for planning
cultures. Town Planning Review. 81(5). pp.i-vi.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Online
Advantages and Disadvantages of Company Liquidation. 2018. [Online]. Available through:
<https://www.begbies-traynorgroup.com/articles/closure-options/what-are-the-
advantages-and-disadvantages-of-company-liquidation >.
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