Ansoff's Matrix and Urban Planning Strategies

This assignment delves into the world of urban planning, focusing on the application of Ansoff's Matrix as a tool for strategic decision-making. The document covers various aspects of urban planning, including smart growth, sustainable settlement growth, and place branding. It also touches upon the use of Ansoff's Matrix in planning for distributed wind generation and transmission expansion. Additionally, it references several studies and research papers that explore the implications of localism on planning for economic development and the importance of strategic spatial planning in urban growth. The assignment aims to provide a comprehensive understanding of how Ansoff's Matrix can be utilized in urban planning strategies.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P 1 Key considerations for evaluating growth opportunities.................................................1
P 2 Possibility for growth by applying Ansoff’s growth vector matrix.................................4
TASK 2............................................................................................................................................5
P 3 Possible sources of funding available to businesses and its benefits and limitations......5
TASK 3............................................................................................................................................7
P 4 Business plan for growth that includes financial information and strategic objectives...7
TASK 4............................................................................................................................................9
P 5 Exit or succession options for a small business along with its advantages and
disadvantages..........................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is the act of thinking and deciding about specific task in order to accomplish
target and reach determined goals. This is similar to making strategies for achieving goals and
ambitions associated with any business. It has noticed that around all the enterprises used to
make proper plan before starting their commerce at a new place or existing one. This report is
designed to depict the importance of planning for growth. In this regard, a small health-care
home named 'Positive Aura' is considered which is going to work under the agreement offered by
'Psychotherapist Services'. This association wants to develop itself so that it can earn name as
well as fame along with huge sum of profitability (Barbour and Deakin, 2012). Thus, herein
evaluation regarding growth opportunities is highlighted by using different methods such as
competitive analysis and Pestle analysis. In addition to this, for understanding about
opportunities for development, Ansoff's matrix is being applied.
TASK 1
P 1 Key considerations for evaluating growth opportunities
Psychotherapist Services has launched a contract and looking for potential suppliers who
can provide treatments affiliated with psychology. By examining opportunity of growth, Owner
of ‘Positive Aura' had accepted this bid and become ready to deliver similar services. This is to
be noted that it is a small heath care organisation which is offering treatment to those people who
are mentally disturbed and suffering from the phase of depression. For acquiring effective
chances of development, it is vital to consider the way of running a successful business. This can
be interpreted by observing below listed methodologies:
Competitive advantages: This is the technique of defeating competitors by applying
certain strategies and aggregating more income in compared to them. One of the effectual means
of gaining competitive benefits is Porter's Generic strategies. Porter has recommended four
generic commercial schemes which can be adopted by 'Positive Aura' in order to overcome their
rivals (Beatley, 2014). These are discussed below:
 Cost Leadership: By executing this strategy, company can become lowest- cost
producer in particular sector. This is thought as the appropriate way of acquiring rivalries
advantages since herein the price of deliverables is made low in order to attract
customers. All people wish to purchase cheap & best products. For instance, by offering
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facilities at cheapest prices, 'Positive Aura' can seek attention of huge crowds in relation
to their challengers. Thereby they can easily enjoy the benefits of competition.
 Differentiation Leadership: This plan is completely opposite of above one since
according to this scheme, services is being delivered at high costing or premium prices
for creating differentiation amongst rivals. 'Positive Aura' can implement this by serving
depressed people at higher prices (Chen and et. al., 2014). But they have to give
justification regarding doing the same. In this context, entrepreneur should show the best
quality of therapies which is being provided by them in competitive market. After this,
they are having the ability to give expensive treatments.
 Cost Focus: This can be applied by 'Positive Aura' for focussing on niche market (i.e.
little competition but focussed market) by delivering facilities related to health at lower
possible cost. They should select a clear niche marketplace for targeting. Afterwards,
they have to
 understand the dynamics affiliated with that market and demands of patients. By this
way, they can successfully attain the competitive profits (Leigh and Blakely, 2016).
 Differentiation Focus: By using this plan of action, an organisation can reach its aim of
being different or unique in existing marketplace. This will also help in attaining
competitive advantages. For accomplishing the mission of becoming differentiated,
'Positive Aura' has to concentrate on niche marketing strategy. This is done by focussing
on particular targeted segment within market location and satisfying civilians by giving
good quality services at premium rates.
By examining above mentioned strategies, 'Positive Aura' is suggested to follow cost
leadership scheme as this will help them in attaining more competitive advantages. This is more
suitable and appropriate in context of the organisation as cost effective and value added services
can assist in
PESTLE Analysis: This is considered as a fantastic tool in the arena of business since it
helps in underpinning the impacts of various external factors upon the performance of
organisation (Eddleston and et. al., 2013). These factors sometimes resist the rate of growth or
sometimes assist in acquiring achievements in particular industry. 'Positive Aura' should
concentrate on the implications of these exterior factors since they are going to start a new
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business of delivering therapies to depressed and psychologically disturbed people. The
influences of external business factors are following:
 Political factor: This will give positive impact on the performance of 'Positive Aura' as
government commonly used to frame the legislations associated with heath and care
associations for the welfare of common public as well as health - centres. For example,
minimum taxes are being charged by governing bodies of UK in medicines, therapies &
so on. But some of the alterations in governmental policies such as modifying bills and
plans related to healthcare antagonistically influence on the working of corporations.
 Economical factor: 'Positive Aura' would be influenced by different economic elements
such as unemployment, interest rates and inflation. Any of the alteration will change the
degree of spending done by patients or consumers (Gall, 2012).
 Technological factor: The development in the area of technologies has presented so
many opportunities to organisations dealing with health sector. By the introduction of
modern tools, software and machines, the professionals can easily detect the disease and
recommend medicines to sufferer. 'Positive Aura' is also taking help of digital techniques
for treating their customers in order to give proper result after treatment.
 Social factor: This is to be noted that health-cares entirely depends on the changes
happen in public views and demographics. If people will not feel safe and secure while
taking psychological facilities, then they may not prefer to take therapies from 'Positive
Aura'. As a bad result, sales rate will go down and company has to face great loss.
Therefore, in order to cope with similar situation, this health-care home should satisfy
patients by giving them best therapies (Porter, 2012). Thus, these factors impact
negatively on growth of venture.
 Environmental factor: This has found that in different places of United Kingdom,
climatic condition is not consistent. Changes in weather took unpredictably which
negatively effects on the working of 'Positive Aura'. For example, occurrence of sudden
disasters like flood, drought, earthquakes, etc. become a cause for death of huge number
of people. This death rate will lower the selling scale of this health-care home (Levy,
2016).
 Legal factor: Some of the norms made by legal body of UK impacts on the overall
performance of 'Positive Aura' since each member of corporation has to follow policies
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framed by government. For example, Health and Safety Act 2010 give privilege to each
worker as well as customers. If facilities mentioned in this law is not full – filled by
organisation, then they will be punished according to the norms of legislation.
P 2 Possibility for growth by applying Ansoff’s growth vector matrix
Ansoff's matrix is also known as Growth Vector Matrix. This shows how to apply
products and services in different types of market for achieving success and improvement in their
business. There are four strategies which can be applied for proper growth. The explanation of
those schemes are described below:
Market Penetration: As per this plan, enterprise can try to enlarge their businesses by
offering existing facilities and products to users of existing marketplace. This is mainly done for
improving the market share of organisation (MacLeod, 2013). For example, Positive Aura can
also do market penetration by giving therapies to people living in local and regional place.
Product development: According to this strategy, a firm should manufacture new goods
and services for selling the same in present market – location. The main motive of applying this
technique is to improve the quality as well as structure of existed merchandises in order to attract
large number of audiences. For instance, Positive Aura can deliver other services related to
health within existing market location.
Market development: This is used when corporation wants to work within a new market
place wherein they have not worked ever. Then enterprisers can develop and enlarge its existing
marketing capabilities by searching for new marketplace and supplying their already
manufactured products to estimated customers (Ansoff’s Matrix, 2017). For example, Positive
Aura can expand their business by providing psychological therapies to people living outside
UK.
Diversification: In this strategical management, an owner of business can magnify itself
by manufacturing new goods or services for a completely different market location. But there is
great risk of failure since venture will go to a total variant site for securing their position by
designing innovational products and services (Zhang and et. al., 2013). For instance,
Diversification would be done by offering different healthcare services except psychological one
to those civilians who are surviving in abroad.
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(Source : Ansoff’s Matrix, 2017)
By viewing above written strategies, this is recommended that 'Positive Aura' should
implement 'Market Penetration' strategy so that they can work for the upliftment of local or
regional people by catering them psychological treatments (Moseley, 2013). This also helps them
in expanding their current growth and income since after few time periods when more civilians
get aware about the services offered by them.
TASK 2
P 3 Possible sources of funding available to businesses and its benefits and limitations
Funding is essential for running any business properly and efficaciously. Without
adequate funds, an enterprise cannot even start a single work associated with their commerce.
Thus, this is considered as soul of a corporation since without funding or capitals, a company
can't exist in corporate world. 'Positive Aura' is small sized firm which is running its healthcare
association at United Kingdom. They want to expand their commerce in UK for attaining
effective growth in medical field. But attaining their dream, they are not having adequate amount
of money; due to the same reason, head of this venture is not able to run its business
appropriately. In order to cope with existed situation, they have started working under a contract
named as 'Psychotherapist Services'. They have done this by bidding on the agreement published
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Illustration 1: Ansoff’s Matrix

by them. On the other hand, this association is not having as much amount of revenue which is
needed to bid that contract (Schetke, Kötter and Haase, 2012). They are having around £20,000
for carrying on their business project. Whereas the total sum of money required for doing bid is
between £80k - £100k. At the same time, the therapies that will be offered to customers are
expensive in nature. Thus, for dealing these situations, it is clear that head of this health-care
home needs £60 to 80k more. This condition can be meet by taking assistance of different
sources of funding because from that company will receive desired quantity of revenues without
facing difficulties (Crow, 2011). Afterwards, they become able to run their asylum efficaciously.
In this regard, some of the important sources of funding that can be utilised by 'Positive Aura' are
mentioned below:
Peer - to - Peer lending : This is a technique of debt financing that makes able a person
for taking borrow as well as lend the revenue without using any official financial institutes. On
the another hand, loans are being taken by and given to known people such as friend, family
members, relatives, etc. This is why it is also known as crowd - lending or social lending.
'Positive Aura' can utilise this method for the purpose of aggregating monetary values in order to
meet the criteria of that bidding. They can borrow money from their friend circle, cousins and
other relatives, families or other known person (Todes, 2012). This methodology consist of some
advantages and disadvantages also which is listed below:
Benefits :
 People can invest their savings or other revenues that will be tax free.
 Loaners feel free and comfortable while taking currencies from a familiar person.
 This process is so simple, long documentations is not required here.
Limitations:
 Loan takers might have to wait for a long period of time so as to collect cash
amounts.
 The money received from providers will not be covered by the FSCS (i.e. Financial
Services Compensation Scheme).
 This may be un - trustable source of funding.
Loans from Bank: This is another method of borrowing money which is totally opposite
from above one as there is no role of relatives and familiar people except playing the part of a
guarantor. Money is being borrowed from an authorised financial institutions such as
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governmental and private bank (Valler, Phelps and Wood, 2012). 'Positive Aura' can use this
source for receiving adequate amount of revenue. They can take desires sum of money from
different banks existing in UK. Various advantages and disadvantages comprised by this
methodology are discussed as follows:
Advantages :
 Trustable source of borrowing as well as investing.
 Eliminate or reduces the overall rate of online crimes like fraud, hacking, theft, etc.
 People can attain as much amount of money as they want.
Disadvantages :
 Takes a lot of time
 Very lengthy process
 Involves more documentation work
TASK 3
P 4 Business plan for growth that includes financial information and strategic objectives
Business plan is considered as the pillar of any organisation. Without making correct
commercial strategies for running any venture, business may get fall down after some time.
Therefore, each and every corporation should design proper business plan (Beunen, 2013). An
appropriate commercial strategy of 'Positive Aura' is presented below :
Overview of organisation : Positive Aura is a health-care home which was established
in the year of 2012 in United Kingdom. This falls under the category of small and medium sized
enterprises. This venture is expertise in providing psychological therapy to expected patients
especially who are in deep stress.
Aim & objective of corporation : 'Positive Aura' wants to make a strong position in the
sector of psychotherapist industry by providing effective treatments to estimated patients. The
objective of this venture is to earn large sum of money by serving well to those people who are
mentally unbalanced (Chen and et. al., 2014).
Mission Statement : 'Positive Aura' desires to earn fame in the field of psychology.
Additionally, they also wish to enlarge their business activities in other nation.
Vision Statement : 'Positive Aura' are trying to meet each aim, objectives and vision by
garbing all contracts related to psychology.
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SWOT Analysis : This is treated as an important technique for getting aware about the
strength, weak sectors, opportunities of future for development and existed threats also. SWOT
analysis of 'Positive Aura' is following :
Strength :
 Company gives special therapies to customers for immediate recovery.
 Work are skilled and talented since they understand as well as value the emotion of
patients.
Weaknesses :
 Lack of appropriate number of workers.
 They are not able to compete their challengers.
Threats :
 Natural disasters
 High level of competition
Opportunities :
 Can merge with other hospitals
 Use digital tools and techniques
Strategic objectives:
Strategic objectives of Positive Aura want is to earn fame and develop their business
operation in various area by providing standard services to their patients. The SMART objective
is to expand their business by opening new psychological therapy clinic and earn profit of 10%
in 3 years.
STP analysis:
This stands for segmentation, targeting, positioning.
 Segmentation: This considered to distinguish the whole population into different age
group, gender and market. Respective firm segment all age group people and large
market in UK.
 Targeting: herein, those user are target who can maximise its profit. For example: Old
age people need psychological therapy more so it can enhance profit of their clinic.
 Positioning: This considered as strategic development of services in front of patients by
delivering effective quality of therapy.
Financial Information :
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As the objectives of Positive Aura to open new psychological therapy clinic n another
area. So respective company required to rise their capital fro introducing new clinic therefore it
can raise finance from many sources such as bank loan, peer to peer lending etc. it need £65000
from that it have £15000 remaining £ 50000 will acquire from financial sources. Thus, financial
budget for opening new clinic are explained below:
Particulars Amount(£)
Raw materials 16000
Promotional activity 9000
Training and preparation session 7500
Utilising of modern technology and techniques 12000
Fabrication and production 10000
Investigation 10500
Total 65000
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Illustration 2: Positive Aura Income Statement

Positive Aura is having the Total Assets about 1241.34 in the year 2018 and Total
liabilities is about 965.2 at the last financial year of the previous year.
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Illustration 3: Balance Sheet

Measures for monitoring and evaluating progress:
In order to measure and monitor the business plan, Positive Aura have to undertake few
measures so that they can attain their strategic objectives. All the above plan can be observed as
well as measured through controlling and evaluating area of business, considering demands of
patients. This aids respective company to sustain for longer period.
TASK 4
P 5 Exit or succession options for a small business along with its advantages and disadvantages
A company has to exit when they are not able to return back the borrowed money before
or on given deadline by the creditors or stakeholders. There are various approaches which are
used by Positive Aura company for exit and succession options in the business environment
(Blackburn, Hart and Wainwright, 2013). The methods are discussed in detail under below as:
Merger and Acquisition: The merger is related to a process of combining two
companies to become one, this helps to explore the opportunities from the business environment.
In case of acquisition one company takeover the other company to make strong presence in the
market. Both the merger and acquisition is done by increase the profitability as well the wealth
creation. This can be done through by purchasing assets, exchanging shares and skills (Wey,
2015).
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 Advantages : At a time of merger and acquisition business control can get increases.
This increases skills and technique of related business firm. Whereas, in acquisition it is
generally performed by takeover small business enterprise to become large firm.
 Disadvantage: When small business gets merged into a big business, it become problem
for small enterprise employees as they are not usual to handle such type of work.
Therefore, they require new skills to modify their skills.
Liquidation : This is a situation that are arises when business is not able to fulfil their
needs. In this case, all assets are sell to pay the creditors. In order to become insolvent and not
able to attain their responsibilities towards society and their employees (Allmendinger and
Haughton, 2013). This is generally adopted when a business has the capacity to earn more as
compare to running with their existing assets.
 Advantages: Employers get their salary amount and compensation whether liquidation is
done on the basis of voluntary or compulsory. They get amount in any form such as
redundancy payment, wages arrears and so on.
 Disadvantage: This is a major problem for employees that can be recovered from paying
any small amount because from this their living are on the stake. Generally, nothing gets
remained in hands of business as they sell everything to repay their debts (Kumar, 2016).
Therefore, company should adopt merger and acquisition method which provide them an
easy way to get exit from the market and succession while using other brand name.
CONCLUSION
From the above reference it has been concluded that planning is an eminent part for the
growth of a business organization. Every business wants to increase their productivity and
increase the enhancement of their current position. This can be done through effective strategies
and approaches taken by professional health care such as providing them treatment from latest
technology based equipment and many more. This will bring cohesiveness among workers and
reduce the labour intensive methods. Also, enlighten the sources that are used to raise funds
required for daily operations. These funds help business to bring an innovative idea to survive for
a longer period of time. Moreover, the above techniques are used to bear the risk associated from
the business organization can led to a positive outcome.
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REFERENCES
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Zhang, J.,and et.al., 2013. Planning for distributed wind generation under active management
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Porter, D.R., 2012.Managing growth in America's communities. Island Press.
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Online
Ansoff’s Matrix.2017. [Online]. Available through:
<https://thecimastudent.com/2016/11/16/cima-e2-ansoffs-matrix/>.
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