Strategic Planning for Urban Growth

This assignment explores the complexities of managing urban growth through strategic planning. Students are required to analyze various strategies, policies, and case studies from renowned sources such as Planning and Environment, Urban Studies, and Cities. The focus is on sustainable settlement growth, implementation of environmental targets, and the implications of localism on urban planning. Specific attention should be given to Ansoff Matrix for strategic analysis.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for growth opportunities and justification regarding such context....1
P2 Opportunities for growth by analysing Ansoff Matrix......................................................2
M1 Options for growth using a range of analytical framework.............................................4
D1 Critically evaluate specific pathways for growth by taking various risk in consideration5
TASK 2............................................................................................................................................5
P3 Potential sources of funding with drawbacks and advantages..........................................5
M2 Adaptation of suitable source of funding.........................................................................6
D2 Critically evaluate potential sources of funding...............................................................7
TASK 3............................................................................................................................................7
P4 Business plan for growth include financial position and strategic objectives...................7
................................................................................................................................................9
M3 Formulation of suitable business plan for growth and securing investment....................9
D3 Knowledge about business plan related with accomplishment of business objectives....9
TASK 4..........................................................................................................................................10
P5 Exit and succession option for small business................................................................10
D4 Critically evaluation of such options with suitable recommendation.............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is an essential factor for business which have to take in account by authority so
that they are going to make their activities systematic in nature. Growth of an association is
completely based on suitable planning structure of business operations (Barbour and Deakin,
2012). This project stated about planning for growth concept in which various determinants are
discussed properly related to growth and planning concepts by taking an example of Diageo
whom want to innovate their products and services into market with a new product whose name
is Essence Drink which is flavour lassi. There are various key considerations are identify which
are related with an organisation growth opportunities. Along with this for grabbing more and
more development opportunities business requires more and more fund. Through this project,
business also become able to determine various sources of funding which have to take in account
by managers in order to make operations effective. Thus, growth require appropriate business
plan which will need to implement by managers properly with scaling up activities. Moreover, it
also stated about various options of success and exit which will have to take in account by owner
of a business.
TASK 1
P1 Key considerations for growth opportunities and justification regarding such context
There are various options are determine which are related with growth. Business have to
determine all of them in an appropriate manner and take suitable actions for them through which
an association become able to expand their business operations in a suited manner (Beatley,
2014). Several major options or considerations for growth opportunities for Essence Drink are
determine as follow: Competitive advantage: One of a major option for growth is competitive advantage.
Business can facilitate their development only through gaining competitive advantage in
which they present themselves differ from others. Essence Drinks already work properly
at small level where they are delivering diverse flavour drinks. This enables them in order
to gain competitive advantage and this flavour lassi delivery stated as core competency
for business. Analyse external environment: Another major consideration which facilitate growth to
small business association is analysing external business environment properly. PESTEL
1

framework have to adopted by an organisation in an appropriate manner through which
they are going to organise growth opportunities properly (Chen and et. al., 2014).
Essence Drinks have to conduct an external analysis through which they can compete
into keen competitive market and make their strategies and plan according to such
environment nature. New product development: Another major concern which enables business tyo get grow
an develop is developing a new product into market. For this management have to
determine stages of NDP along with they can also evaluate the product estimated life
through applying product life cycle method. Essence Drink have to launch a new product
at new market world so that they can gain competitive advantage of this section which
enables them to grow and get developed properly.
 Collaboration: Whenever an association wants to maximise their number of operations in
a new market world they have to take a key consideration in account which is
collaboration of an organisation with others. There are various options are provided with
this context which are merger, acquisition, joint venture, strategic alliance etc. which are
termed as major option for growth for a business. Essence Drink can merge their
operations with some other venture so that they can manage their growth properly as well
as many success options lead to get come in front of them.
These are several key considerations which have to take in account by business in market
so that they can manage their growth properly and expand their number of operations as well as
their profitability also get enhance. Along with this, business also have to apply relevant models
and framework by analysing various models of opportunities. One of the best suited option or
technique to determine option for growth is Ansoff Matrix which enables managers of Essence
Drink to take appropriate actions related with their growth and development.
Pestle Analysis:
Pestle analysis must be conducted by Diageo in order to determine and evaluate the
external factors that may influences the operations and growth of an organisation in UK
economy.
Political: The political fluctuations in UK economy is stable and the nation has a
transparent legal structure which brings beneficial results to Diageo. Due to this stability, the
launching of Essence Drink may achieve success and growth within shorted period of time.
2

Economical: UK economy is more stable now after the Brexit issue and the growth of
economy also increases rapidly which creates lots of growth and expansion opportunities to the
Diageo. Due to this, the profitability and sustainability of company also increased which is good
sign for them.
Social: In UK, the people are more educated and aware about their consumptions that can
harm their healthy lifestyle. Thus, launching new product by Diageo i.e. Essence Drink which is
a flavoured lassi gets more success in market which directly makes positive impact on the
profitability of company.
Technological: Diageo is using advanced and latest technology in their production
process along with adoption of digital platform in order to promote their offerings. Thus, it will
help their new product to easily get huge customer strength using an effective promotional tools
such as social media, TV advertisements etc. which increases the growth and expansion of
business.
Environmental: Diageo is launching new flavoured lassi product without exploiting
environment through avoiding usage of plastics. Along with this, operations of company also in
accordance with the environmental laws which brings easiness for company to achieve growth in
the UK market.
Legal: UK government encourages small and medium sized business to growth through
providing relaxations in their legal requirements. Thus, it provides an opportunity to Diageo to
achieve growth and success through launching new products by following the legal laws of the
nation.
P2 Opportunities for growth by analysing Ansoff Matrix
Small business growth are concerned with expansion of number of activities by business.
It is essential for an organisation to manage their profit margin through expanding number of
operations into keen competitive market world (Eddleston and et. al. , 2013). It is essential for an
organisation to manage their activities properly with a planned structure so that each and every
option get grab properly which support an association to grow. Managers evaluated that growth
only become possible when they enter into new market world or by enhancing number of
operations. Moreover, they can also introduce more number of products into existing market or
by targeting new customer group (Galland, 2012). Essence Drink managers have to understand
this and have to apply Ansoff Matrix Vector so that business become able to generate more and
3

more profit for the business and sustain at market for long term context as well with higher
revenue. For entering into new market world, Ansoff matrix vector get used through which
analysis of market get done properly which have to take in account by every developing business
(Ansoff Matrix – The growth share Matrix of Ansoff, 2017):
 Market penetration: This concept stated about a business when they are going to enter
into a new market world or when they are targeting existing customer by modifying their
products and services. It is essential for business managers to understand this concept
properly and penetrate into market world with all their level of energy. This enables them
in order to make things correct and accomplish all objectives properly. Essence Drink are
already dealing at small level and if they are going to improve their products range but in
same market world then their number of customer get increase as their revenue also get
enhance but they will not lead to make their operations accommodate at vast level. Market development: A major thing which is related with business expansion is
concerned with market development (Levy, 2016). Managers have to determine the key
area or a market which support them in order to gain suitable market share and then
prepare strategies in order to deal with them. Market development is not a easy thing and
it really required more and more appropriate working by preparing suitable objectives
and targets. Thus, for expansion at further level, managers have to determine emerging
market of a country and take suitable steps to enter into such world. Essence Drink want
to maximise their revenue of business and for this they want to determine such market
world where they can expand their operations (MacLeod, 2013). For this context, India is
4

determine as most emerging market so that they are going to gain maximum growth
opportunities. Product development: For this context, business have a platform where they can develop
new product into a market or if they have sufficient fund or their existing products get
liked by people then they can improve qualities of such existing products. The best
example about product development is concerned with Apple iPhone where company
years per years making innovation in their existing products. Essence Drink have an
opportunity where they are able to make improvements in their existing products.
 Diversification: The last step of matrix vector is all about when an association will lead
to enter into a new section. This require more and more funding as well as risk of failure
is high. Association do not have any sort of idea related with such opportunity and they
really need some more number of experts of specialised person when any growth
decision is required. Essence Drink can launch themselves in a hospitality section as well
but for this they really need more and more fund to execute vast range of operations.
On the basis of Ansoff matrix vector, Essence Drink can adopt market development and product
development option where they can enter into new market world where they are more able to
establish their existing product with some more quality features addition. This enables them in
order to accomplish all goals and targets in an appropriate and effective manner by enhancing
their revenue as well.
M1 Options for growth using a range of analytical framework
For gaining the growth it is essential for Essence Drinks to take competitive advantage in
which association have to organise a PESTEL analyse and evaluate that they are utilising each
and every resources in an appropriate manner or not. One of a best manner for growth is
collaboration and for that management have to determine the emerging market as well as analyse
the nature of such market world (Moseley, 2013).
Essence Drink want to expand their number of operations in India which is termed as
emerging market and managers identify that political situation of a country are favourable in
nature as from past few years government is stable in nature and this get continue for next 5
years as well. Along with this, within next few years, India will consider as young country in the
world. Thus, their economical condition is good in nature because many people believe in
savings not in expenses (Schetke, Haase and Kötter, 2012). Social culture may impacted business
5

but India people loved lassi and thus, this enables Essence Drink to take more people response.
Hence, business have to implement their strategies properly according to market in which they
are able to introduce a new product at new market world for gaining competitive advantage.
D1 Critically evaluate specific pathways for growth by taking various risk in consideration
According to the...., risk in business at the time of growth are associated with each and
every consideration but managers and leaders have to take active participation in activities so
that they are going to mitigate them effectively. Essence Drinks managers identify two best
pathways for growth which enables to support them in long term growth but risk is associated
with each factor but it should have to get mitigate in an appropriate manner: Collaboration: According to.. whenever business lead to expand their activities into new
market they have to adopt a strategy of collaboration which support in making more
revenue. Essence Drink want to maximise their business activities and for this they have
an option which is merger. But a major risk associated with this consent is that chances of
conflicts between partners are high. For controlling this fact, both the owners have to
include each and every segment in a deed as well as create some jury members whenever
taking any judgement.
 New product development: As per the view point of..., it get determine that business
needs to adopt suitable strategies related with NDP so that they become able to deal with
diverse and dynamic business environment. Essence Drink wants to launch a new product
into market and for that they really need to target a new market world as well. But a
major risk behind launching a new product at new market is that business can suffer e
huge loss due to lack of promotion. For controlling this factor, collaboration can work as
an appropriate platform.
TASK 2
P3 Potential sources of funding with drawbacks and advantages
There are various methods of funding are determine which have to take in account by
business managers (Todes, 2012). It is essential to understand each and every factor of fund
raising sources so that suitable action would be carried down. Thus, potential sources of funding
for Essence Drinks are determine as follow with advantages and drawbacks of each. This enables
managers to take appropriate decision regarding the potential source of finance:
6

Source of funding Advantage Drawback
Bank loan: A major source of
finance is loan which get managed
through financial institutions and
banks. Hence, these are major source
of finance whom facilitate an
appropriate option for taking money
and pay back the amount with
interest charged on it as well. BY
raising fund through banks is a easy
thing and especially for small
business.
It is a easy source of
finance through which
many small venture
become able to establish
themselves at vast level.
This enables an
association to grow and
developed at appropriate
level.
A major drawback of this
source of fund is that many
people or business get failed
and they do not have
sufficient money to pay back
the interest as well as amount
of loan properly. Hence, they
become insolvent in nature as
well as their reputation in
society also get impacted.
Crowdfunding: Another source of
finance is crowdfunding in which
business can arrange money from
many people. In such context, social
media is a best platform where many
people provide and transfer small
amount in an association account.
This source of funding is
helpful for many
association as well as
many organisation
become successful in
nature by applying this
method. Advantage is that
more and more money
easily get arrange through
crowdfunding.
Limitation of this fund
raising technique is that
many time fraud activities
took place which affect the
trust of many people.
Angel financing An organisation gains the
extra knowledge and
expertise of the investors
along with their contacts
and funds.
An organisation provide to
allot shares to these
investors.
M2 Adaptation of suitable source of funding
Essence Drink management want to innovate their products range and quality in new
market world (Valler, Phelps and Wood, 2012). Thus, business managers have to determine
7

about a suitable source of finance through which association will lead to implement this thing in
an appropriate manner. One of a suitable source of finance is bank loan and issuing of shares at
market world. As a small business company in UK, Essence Drink already establish activities
properly as well as their quality of products are appropriate in nature. Hence, management have
sufficient fund for debt in which they can pay such amount for a one year. Hence, initial public
offering as well as bank loan are two best source of fund raising technique (van Assche, Lo and
Beunen, 2013).
D2 Critically evaluate potential sources of funding
According to the Ward, 2016, business need more and more fund when management
wants to expand their business idea or a project. Hence, it require sufficient money to execute all
operations in an appropriate manner. Thus, business managers have to evaluate all sources of
finance properly and then take suitable steps to deal with them in an appropriate manner. Essence
drinks manager determine that initial public offerings and bank loan are two best sources of
finance.
Initial public offering define as the process in which a newly establish association or
small sized organisation want to grow in market world and for that they issue shares on a first
time. Hence, Essence Drink can issue their shares at UK market where they are already working
as a reliable company whom products satisfy their number of customers. On the other hand, bank
loan is another major source which have to implement by business properly. As they have good
financial statement of past few years thus they are able to claim loan easily.
TASK 3
P4 Business plan for growth include financial position and strategic objectives
Essence Drinks is a product of Diageo which is one of a soft drink company of UK. Thus,
it is essential to prepare a business plan for a company as they want to expand their number of
operations in India which term as a emerging market (Wu, 2015). Hence, business managers
have to take financial information in an account properly along by inspecting all objectives and
aims in an effective manner. Revise mission and vision for Diageo are describe as follow
(Diageo, 2017):
Mission: A clear mission of a company is “Celebrating life everyday, everywhere” stated that
business wants to provide a sense of relief to each and every customer so that they become able
8

to maximise their profit. Thus, same scenario have to follow by an association in order to make
Indian customer more and more satisfied through delivering flavour lassi and some innovative
range of products.
Vision: It is compulsory for Diageo managers to evaluate their vision properly in order to make
their product attractive in nature. Some major vision for a company are:
 Produce high quality products
 Make necessary innovation in product range and quality
 Want to grab maximum market share
Values: Diageo wants to become a global
leader of soft drink market and for that there
are certain values are related with their
business which frame by considering
shareholders and stakeholders in account:
“Passionate about customer and consumer, be
the best; freedom of succeed; valuing each
other and proud what we do”.
Financial strength: Diageo have good financial
performance which is consistent in nature as
well as they are gaining good return.
Strength: Major strength for Diageo are
describe as follow;
 Value each other whether they are
customer of internal stakeholders
 Good financial return as well as
performance
 High range of products with suitable
quality
Opportunities: Diageo manager identify
several number of opportunities while entering
into emerging market is as follow:
 Increase market share
 Want to reach new market world
 Maximise revenue of business
Financial performance of a company stated that their net sales get increase as compared
to past years (Wynn, 2017). This stated that their products have good quality as well as range
which attract more and more number of customers. Their earning per share is also good which
stated that company performance from past few years is good in nature. Hence, they are able to
9

expand business operations at new market world, where they can choose merger as a option to
establish and then after few years they become able to deal by itself.
M3 Formulation of suitable business plan for growth and securing investment
Business plan includes mission, vision, strength and financial performance of a company.
It completely reflect about is that association able to manage and deal at market world. Hence,
Diageo wants to present a new product Essence Drink which is a flavour lassi and for this they
have to take suitable investment decision. Investment decision have to be associated with such
market which support in providing good return. Moreover, they also can use bank loan and
equity as two best source for fund raising. Hence, this business plan is suitable and support in
growth of an organisation as well.
10

D3 Knowledge about business plan related with accomplishment of business objectives
For achieving business objectives properly which is to be a global leaders, management
have to deliver and provide knowledge about their products to target customer (ZHANG, ZHAO
and CHEN, 2013). Many people think that business is already dealing in liquor products which
reflect negative image in general public of India. Hence, business managers have to promote and
advertise about an organisation properly as well as they also have to determine an association
which is more helpful and have good image in Indian market as well. Thus, by compiling
association with this technique, management become able to deal at market world in an
appropriate manner as well as their objectives get accomplish properly (Ziari and et. al., 2012).
TASK 4
P5 Exit and succession option for small business
Exit and succession options are two major thing which have to take in account by
business manager at the time when they are dealing in different context. Exit of an organisation
take place at such consent when all things getting changed and perform in adverse manner of an
association and impacts upon on an association performance as well. Succession planning refer
to as such process in which business changes their leaders, managers, objectives and targets
according to their growth.
The major reason behind every business failure is all about impact of an external
environment factor on a business performance . This get prevented through analysing
environment properly as well as make strategies according to that. Moreover, sometimes an
entrepreneur wants to shift up their practices to some other consents as well. This also consider
as a major reason behind exit of an organisation.
There are various kinds of exit options could be assess by business managers or owners
which they suppose to utilise in better and suitable manner. This lead to enables them in order to
facilitate exit properly. Hence, whenever any successful business lead to get exit or want to wind
up their operations, they need to determine several options which define as follow: Selling of business: One of a major thing through which successful business lead to get
drawn out or a owner could exit from it is selling of business. Owner have a right to sale
out their operational activity at any time. There are many individuals determine at market
11

area whom want to purchase or merge their operations with successful organisations.
This could be done when an individual want to shift their operations.
 Valuation of company: Another exit option for a successful business is valuation. Owner
have to value out their business operations on timely basis which support them to
determine about good will of a company. This section enables and support in selling of an
organisation where an individual could exit out their running entity. If a valuation is in
positive consideration then owner try to sale it out as early as possible because it provide
them good price otherwise negative image could reflect in low valuation of a firm.
Diageo lead to get exit from market world at such consent when they are facing bad
condition of business. But according to business plan and past few years performance of a
business they just want to expand their number of activities. This create a succession option for a
business which facilitate growth and diverse range of opportunities for a business association.
Some other factors which impacted upon on a business performance and push them towards exit
is cultural issues (Eddleston and et. al. , 2013). Thus, management have to manufacture and
deliver such goods and products for their customers whom are according to their culture.
D4 Critically evaluation of such options with suitable recommendation
According to the author Chen and et. al., 2014, there are various exit options are
determine for an business which push an association towards negative concern. One of a exit
reason for a business is change in culture and society preferences which impacted an
organisation performance adversely. It is highly recommend that whenever business introduce
themselves at new level they really need to change activities and operations as per an culture
(Beatley, 2014). Cultural diversity is highly determine at such location like India where every
person belong to different religion. Thus, management have to manufacture such products and
services in which every culture and people opinion get take in account as well as they get satisfy.
For Diageo there are few number of growth and succession options could be revealed
which need to understand by management of a company so that better and supportive outcome
could be drawn. The two major thing on which business need to focus for managing their
business operations properly are: Cultural issues: One of a major reason behind worst situation for an organisation is
cultural issue. This get determine at the time of growth and development or with
expansion of number of operations. With change in environment, Diageo need to
12

determine the culture aspect of other country properly where they are going to expand
their number of operations. If they not going to frame suitable strategies for cultural
consideration then chances of negative inverse on operations could be determine. Hence,
to deal with this, management required to respect every aspect of society properly.
 Succession Planning: Another feature which enable and support an organisation to grow
and develop their number of operations is succession planning where authority need to
identify and develop new leaders when old one will going to get retire or leave their jobs.
This support in evaluating new pathways for doing work which assist in gaining better
results. For Diageo when they face worst situation could adopt succession planning
option which facilitate them to identify new and modern way of executing operations.
CONCLUSION
It get concluded from the project that planning for growth is a major thing which have to
take in account by a business association when they are going to expand their number of
activities at wide level. Business managers evaluated various considerations of growth in which
competitive advantage, NDP and collaboration are major concern. There are various options of
funding are also determine whom get analyse with their advantages and drawbacks. On the basis
of that bank loans and equity are two major options. On the basis of business plan, management
become able to deal with various things for executing business at new level.
13

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.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Chen, B., and et. al., 2014. Robust optimization for transmission expansion planning: Minimax
cost vs. minimax regret. IEEE Transactions on Power Systems. 29(6). pp.3069-3077.
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.
Galland, D., 2012. Is regional planning dead or just coping? The transformation of a state
sociospatial project into growth-oriented strategies. Environment and Planning C:
Government and Policy. 30(3). pp.536-552.
Levy, J. M., 2016. Contemporary urban planning. Taylor & Francis.
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.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
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.
van Assche, K., Lo, M. C. and Beunen, R., 2013. A perspective on planning, smart growth and
place branding. In International Place Branding Yearbook 2012 (pp. 69-77). Palgrave
Macmillan UK.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
14

Wu, F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
Wynn, M.G., 2017. Planning and urban growth in Southern Europe. Routledge.
ZHANG, J., ZHAO, D. and CHEN, H., 2013. TERMINATION OF GROWTH
SUPREMACISM AND TRANSFORMATION OF CHINA'S URBAN PLANNING [J].
City Planning Review. 1. pp.45-50.
Ziari, I., and et. al., 2012. Integrated distribution systems planning to improve reliability under
load growth. IEEE transactions on Power Delivery. 27(2). pp.757-765.
Online
Ansoff Matrix – The growth share Matrix of Ansoff. 2017. [Online]. Available through
:<https://www.marketing91.com/ansoff-matrix/>.
Diageo. 2017. [Online]. Available through :
<https://www.diageo.com/pr1346/aws/media/3960/diageo-2017-annual-report.pdf>.
15