Strategies for Successful Planning

The report highlights the significance of planning in maximizing organizational growth and success. It defines planning as a thinking process that involves making strategies for business activities. Effective planning is essential due to tough competitions, and management considers various key factors for appropriate planning. The report also mentions the benefits of digitalization and employee development in achieving particular goals or objectives.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key consideration for evaluating growth opportunities...........................................1
P2 Evaluate the growth opportunities through Ansoff Matrix....................................................3
TASK 2............................................................................................................................................4
P3 Potential sources of funding...................................................................................................4
TASK 3............................................................................................................................................6
P4 Design a business plan...........................................................................................................6
TASK 4............................................................................................................................................8
P5 Assess exit or succession options for a small business..........................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Planning play vital role in business growth and success. Many of organisation considers
planning activities that helps in achieving long term sustainability and increase market share of
the company. Planning may be defined as thinking process in which strategies are to be
undertaken regarding business activities. The purpose of planning is to attain goals or objectives
with achieving economies of scale within small enterprises as well (Barbour, 2012). This report
is based on ABC construction company which provide various services regarding constructing
building, infrastructures, and architecture services in the UK. They are focusing on working on
the basis of contracts and their bid is £150,000. This report will evaluate growth opportunities
and justify consideration with application of Ansoff's growth matrix. This will assess sources of
funds for business development. There is requirement to make plans for growth by considering
financial information and strategies as well.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities
In the present scenario, every business firm try to develop their function or operation in
broad level so that maximum outcomes can be achieved. There is an increased competition in
the market because there are organisation which are offering similar products and are
undertaking plans to improve their market share (Deakin, 2012). It is necessary to make plans for
business growth because of tough competition. On the other side, companies make decision to
expand business into at another countries and diversify in other field so that market can be
captured by the organisation. ABC construction firm is providing number of services regarding
construction of buildings, manufacturing, architecture etc. but it is a small and medium enterprise
that plan to expand business in different areas of market. It is required to make adequate plan
regarding developing firm and manage entire activities or functions in an effective manner.
Management undertake several factors during planning procedures such as available resources,
funds, strategies, tools or techniques, and time for achieving particular goals or targets in better
ways. It can be understood by undertaking some major components that support in measuring the
higher growth and long term benefits such as:
Competitive advantages: This is one of the major aspect for developing firm as ABC
construction is a small medium enterprise so they required to achieve superior position in the
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market. It can be possible through appropriate strategies and action plan that can affects on the
business development and get higher results in well manner. Management have to set their future
goals so that they can build different ways to meet that particular aims or objectives within
defined time period.
Porters generic strategies: It is another factor that must be determined to make better
plans for business growth. It helps in identifying values of firms and its position among
competitors as well (Beatley, 2014). With the help of this, company can bring several changes by
effective planning and adoption of strategies. In this consist various aspects such as:
 Cost leadership: It is related with marketing position that can be occupied through
appropriate strategies. ABC construction required to identify potentials customers with
their particular demands or needs regarding constructing strong buildings with reasonable
costs so that they can attracts more clients by adopting suitable pricing strategies.
 Differentiation leadership: In this defined the unique selling points (USP) which
organisations use to increase sales volume and attracts huge audiences towards firm.
ABC constructions is serving construction facilities or services with effective qualities
such quality product at lower costs which support in creating good image and positive
reputation in an efficient manner.
 Cost focus: It is most effectual strategies regarding market where firms consider some
modifications to get higher profits. Company make strategy and plans by undertaking
customers needs, demands so that they can provide them better products or services to
meet their desired expectations (Chen, 2014). It is beneficial in managing costs with
utilisation of available resources so that competitive advantage could be availed.
 Differentiation focus: In this, ABC construction required to focus on their goods or
services qualities so that sales can be increased in well manner. This is essentials to get
customers attentions and attracts them towards firm for enhancing profitability and
productivity as well. The consideration to cost is given less and efforts are directed into
making sure that distinct offerings are catered.
Incorporation of digitalisation in business: There is required to improve digital tools
and technologies to make business functions smooth and operate various activities to run an
organisation. Small businesses can be developed by using digital tools or technologies because it
helps in performing different function to obtain better outcomes. ABC can undertake this factor
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and use for creating own websites, online marketing and other software application for managing
entire business operations in an effective way.
Market share: This is most common goal for every business firms. They focus on
making better strategies to enhance growth and sales volumes so that markets can be captured.
Management of organisation provide new services in market through application of innovative
technologies (Eddleston, 2013). This will provides the opportunity to the organisation is to
accomplish their objectives in effective manner. Basically, cloud technology is used to improve
the data storage power of organisation.
P2 Evaluate the growth opportunities through Ansoff Matrix
In the modern era, many of firms looking for various kinds of opportunities for
expanding business and achieving growth. Corporate sector provide different chances to the
organisations for diversify their business in other fields and expand in other places that is based
on nature of business. It is essential in getting best possible outcomes while running business
operations. In this included different factors that play vital role in identifying numerous
opportunities for growing business (Galland, 2012). Therefore, it is necessary to manage entire
procedures by making effective plan and strategies to achieve competitive advantages within
limited time period. ABC construction can consider Ansoff's Matrix to determine various
opportunities in build reputations in the market place and provide better quality of services to the
potential customers. These are as followings;
Market penetration: It is concern with those goods or services that company sell to same
customers in the existing market place. They make strategies to attracts customers and make
them loyal towards firms. For the small firms, it is necessary to make better plans regarding
achieving potentials customers and increase loyalty for long term benefits as well (Levy, 2016).
Therefore, ABC construction has to penetrate particular market bys providing better construction
services to the customers for building good relation among them.
Market development: In such stage, organisations make decision to introduce their
products or services into complete new market by adopting several tools or strategies in an
effective manner. It is necessary to expand business with appropriate way so that company can
increase its size or growth in the competitive environment. ABC firm also can consider this for
expanding their business and provide effective construction services in better ways. This is
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beneficial for developing business among competitors and promote existing product into new
marketplace.
Product development: It is another important strategy which helps in introducing new
product or services into existing market so that company can boost its market shares and size in
an effective ways. It is depends on the market condition including customers choices, needs,
demands and competitors regarding particulars products or services (MacLeod, 2013). ABC
company is focusing on giving such facilities like constructing building with good materials,
improve infrastructures and many of services so that they can attracts more customers towards
firms as well. It is necessary to undertake many of tools or promotional strategies sol that they c
an introduced new products or services regarding construction and create awareness among
customers.
Diversification: This is most important components in this model in which new product
or services introduce in the complete new marketplace so that higher returns can be gathered by
the organisation. Many of firms considerer this model for achieving best possible outcomes
through adoption of new tools or techniques so that they can enter into new market place in well
manner. ABC construction company required to sell its services into other market place for the
purpose of expanding businesses in well manner (Moseley, 2013). In this needs to use best
promotional and marketing tools to promote particular business and its products within new
marketplace.
TASK 2
P3 Potential sources of funding
Finance play an important role in the business organisation as it is backbone of the firm.
Without funding, business can not be developed in well manner. There are number of activities
and business functions that can be perform through appropriate funds or capital. Therefore, it is
necessary to have various sources of finances to run business and its activities in smooth manner.
Management of organisation consider this factor as they focus on arranging funds and manage
financial resources to run operations so that particular goals or objectives can be achieved. ABC
construction company is serving several kinds of facilities or construction services by
undertaking some contracts or projects which are beneficial in increasing growth of the firm. To
acquire specific contract management of organisation provide the bid of £ 1500000. The total
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number of funds which are available with organisation is around £ 20000. Management of
organisation is decided to borrow the additional amount of funds which is around £ 130000. The
different type of methods which are basically available to raise funds are known as internal and
external (SchetkeHaaseKötter, 2012). The different sources which are covered under internal
includes share capital, retained earnings etc. On the other hand, External sources includes bank
loans, investors etc. The sources which are used by the organisation is defined below in detail:
 Venture capitalists: In this considered those investors who are ready to provide financial
services to the small and medium enterprises so that they can get higher returns as well as
long term growth from investments as well. Small start ups is growing fasts in the UK so
they are contributing more in increasing economy of country that support in generating
higher revenues. Venture capitalists become part of firms by by getting equity. They also
take part in making decisions regarding business activities.
 Debt equity: It is another major source of income which will support in bringing
appropriate funds to develop business and its potentials growth. Small and medium
enterprises generally undertake this source to arrange adequate capital from debt equity
but investors do not interfere in the business activities or functions regarding decision-
making. It support in various critical situations such as wind up and bankruptcy as well.
 Crowdfunding: It is best method to gets financial services with less interests. This is very
beneficial for organisation that helps in providing adequate funds for starts a particular
projects. It increase capital by using various techniques such as internet. It is best place
for collecting funds because number of people are available to invest their funds ins such
projects so that maximum returns can be get in an appropriate manner. It is going popular
due to online which helps in reaching at target customers (Todes, 2012).
 Share capital: it is related with capital funds that brings from exchange of shares of the
company. It is flexible or dynamic in nature that can be changed according to
environment and time. Companies generally issue their shares in the market places and
invited investors to buy such shares so that more funds can be collected. In this included
number of share capitals such authorised capital, subscribed capital and issued capital etc.
this is beneficial in bringing more funds and financial resources through issuing shares so
that company can survive in the marketplace.
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TASK 3
P4 Design a business plan
A business plan can be considered as the blueprint of various strategies and operational
activities of business that formulated in a written document. In this included several aspects such
as financial budgets, instruction, path or goals, vision or mission and other management tools for
achieving set targets in ans effective manner. Business plan play an important role in developing
activities and increase profits so that company can grow in adequate way. There is required
proper management of the business functions and its operations which will support in executing
plan to attain bests possible outcomes. It is helpful for the company as they can resolve any kinds
of problems or issues in better ways. Planning process must be done in effective manner so that
company can create its path or tracks to attain positive results. There are necessary tos considers
number of factors that can affects ons the firms such as environmental aspects, policies,
resources and many more. Here is defined a proper business plan for ABC construction such as: Executive summary: In this described about the business plan in which required a proper
formal reports. It considered the actual requirements of efforts or times which is
necessary to attain particular goals or objectives in well manner. For this contract, there
are required some funds, resources and equipments so that company can achieved its set
targets. ABC construction company is undertaking an appropriate business plan regarding
managing entire construction activities, operations and functions in well manner. They
are dividing their tasks or work as per the capabilities of employees so they they can
perform in better ways and accomplish particular goals within limited time period. Overview of the company: in this explain about the ABC company as it is construction
company that provide various services such as constructing buildings, infrastructures,
dam, houses and many more at affordable prices so that customers can satisfy their
desired needs and meet expectations as well (VallerPhelpsWood, 2012). It is small and
medium enterprise which have founded in the year of 2014 and it started by a group of
persons who comes from different construction company who have better knowledge and
experience so that they are managing entire business process in an appropriate manner. Products and services: the actual products or services of ABC firms are constructing
dam, buildings, architectures, materials and many more ins the UK so that customers can
be attracted to get such services and satisfied their desired expectation in an effective
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manner. They focus on creating better strategies and action plans to grab opportunities
and develop business at market place.
 Situational analysis: This is related with various internals and external factors that have
major impacts on the company and its operations. In this undertake SWOT and PESTEL
analysis that analyse some important factors which affects business as directly and
indirectly as well. These are as followings:
SWOT analysis of ABC construction company:
Strengths:
 This firm is giving several facilities and services to the customers at reasonable prices so
it has strong reputation is the particular market.
 They have good relationship with other partners such as builders, and suppliers.
 They focus on creating good materials and constructs strong buildings so that customers
can be attracted towards firms.
 They utilise their available resources in well manner by proper allocation among various
activities.
Weaknesses:
 There are lack of finance or inadequate fu8nds that cans create barriers in running
business activities in smooth manner (vanAsscheBeunen, 2013).
 They have low market experience and poor image due to small size of firm.
Opportunities:
 There are lots of opportunities for business expansions due to increasing market growth
and size so that small firms can develop its functions and operations at high level.
 Most of firms are focusing on adopting various digital tools or techniques so tat they can
make their activities in easy way.
 Company can attracts investors as there is chances to invite foreign direct investments
within firm.
Threats:
 There are lots of competition in the market that can bes biggest threats for the company
and it can affects on the profitability and productivity of the organisation.
Funding Requirement- Within it, the management of the company identified that how much
cost and fund required it for performing all the activities. For example, if this company is going
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to constructed a small coffee house then it required $60,000 and $ 90,000. so that it can earn
profit of 5% to 7%. But operating this business at large scale, the firm required more amount so
that it can run all the business activities properly.
Financial information-
Particulars Expenditure in percentage
Aggregation of raw materials 50 %
Promotional activities 33 %
Training and development
programmes
55 %
Execution of modern
technology and techniques
47 %
Manufacturing 35 %
Survey and investigation 45 %
Total forecasted budget
Particular 31/12/15 (£) 31/12/16 (£) 31/12/17 (£)
Implementing
technology cost
15000 - -
Promotional expense 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
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Cash Flow Statement-
PESTEL Analysis of ABC constructions: Political factor: in this include various political factors that have direct impacts on the
firms such as exchange rates, duties, policies and policies which formulated by the
government. Economic factor: It concern with those economical factors that can affects on the
company's profitability because It consist inflation rates, economic growth and
fluctuation as well. Social factors: in this consider customers values, choices and purchasing behaviours that
has major impacts on the business organisation. It is necessary to consider such factor for
growth of firm.
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 Technological factor: Every business required to adopt best tools or technologies so that
operations can be made in smooth manner.
TASK 4
P5 Assess exit or succession options for a small business
There is required to earn more profits or generates higher revenues so that company can
be developed. It is based on business performances which support in achieving growth and
objectives as well. Here are describe different ways for business development such as:
Liquidation: This is most important approach which is helpful for small and medium
enterprises. In this, owner sells its business to others for getting liquid forms such as banks, cash
etc. it depends on situations like company losses, economic crises and many more. Advantages: This is easy to get liquidation facilities for running business and its
operations in well manner. Individual sells its assets or business to another person in
favourable price (Galland, 2012).
 Disadvantages: it may be difficult to measure cash due of particular assets due to poor
values, and brands image.
Acquisition: It is another method of exit in which company can make strategies for
existing from market. Advantages: It can provide benefits to the firm due to acquisition of firm at higher price.
 Disadvantage: this is lengthy process because it takes more time in acquiring other
company.
Strategies for successful planning:
 Digitalisation is best mode for small business firms regarding development and growth.
 Development of employees also beneficial in achieving particular goals or objectives in
effective manner (Moseley, 2013).
CONCLUSION
From the above report it has been summarised that planning is a most specific process
that helps to maximise organisational growth and success. Planning may be defined as thinking
process in which strategies are to be undertaken regarding business activities. It is necessary to
make plans for business growth because of tough competitions so management consider various
10

key factors for appropriate planning which is beneficial in generating higher revenues or profits
as well.
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