Spatial Planning and Growth Strategies

This assignment requires an in-depth analysis of spatial planning strategies, particularly examining the shift towards growth-oriented approaches. Students are tasked with evaluating these strategies, considering their impacts on sustainable development and exploring alternative perspectives like regional planning and smart growth.

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Consideration for evaluating growth opportunities with organisational context...................3
M1...............................................................................................................................................6
P2 Opportunities for growth applying Ansoff’s growth vector matrix......................................6
D1 ...............................................................................................................................................8
TASK 2 ..........................................................................................................................................8
P3 potential sources of funding available to businesses and discuss benefits and drawbacks of
each source..................................................................................................................................8
M2.............................................................................................................................................10
D2..............................................................................................................................................10
TASK 3 .........................................................................................................................................11
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business.................................................................................................................11
M3.............................................................................................................................................12
D3..............................................................................................................................................13
TASK 4..........................................................................................................................................13
P5 Exit or succession options for SME'S with their merit and demerit. ..................................13
M4.............................................................................................................................................14
D4..............................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning is very essential part of the business. It assist the business in increasing the
performance and stability in the business. every person or firm want grow in their life to move
from current position. Due to some business growth,society and the nation also develop.
Planning for growth is a plan of action which was undertaken to increase the revenue of the
concerned company (Barbour and Deakin, 2012). NM construction is involving in the business
of developing infrastructure of roads, hotels ,dams and so on. Under this assignment, NM
construction company is bidding a contract for British high commission for a written agreement
of fence construction service.
This assignment inform about the growth opportunities in the business. It provides a
synopsis on ans off growth vector matrix and source of funds with its merits and drawbacks. It
also highlights the business plan through which business able to make strategies and policies.
Along with this it convey about the exit or succession options for the small and medium scale
enterprises.
TASK 1
P1 Consideration for evaluating growth opportunities with organisational context.
Planing of growth is performed by every organisation otherwise business not able to
achieve its desired position. PESTLE is one of the method through organisation able to
understand external environment. Under this there is a discussion about the porter generic model
and how it can help the business to expand its firms size.
Porter generic model
Generic strategies can be practical applied to all types of business and products. Through
this model the business able to know what they can use as competitive advantage over its rivalry
firms. Competitive advantage can be in any form cost, differentiation, focus or in any other
mode (Beatley, 2014). The aim of the company is to use this advantage to increase the revenue
of the business.
In focus strategy consist of two variants focus differentiation and cost
Cost Leadership: This part indicate about the cost which should be low to increase the
sale. Cost advantage can be get by using high technology, low cost raw material and by reducing

transportation cost. By following this theory construction business able to survive for longer
period.
Differentiation : This strategy says that business need to modify its product by the help
of creativity and innovation so that they can enjoy competitive advantage over its rival. This
modification is done by adding some unique feature which was achieved by the research and
development department. Differentiation should be done only on the basis of consumer needs
and wants so business can earn high profit (Chen and et. al., 2014).
Focus : This strategy focuses on the one or more segment of the market but not the whole
market with one commodity. Focus is generally on the area or the market segment on which their
competitor has less concentration. Company can adopt any of the cost leadership and
differentiation according to preference. NM construction use this strategy for the welfare of their
organisation. This include two strategies which are given below-
Cost Focus : Under this strategy, cost is used to differ or separate particular segment.
NM construction can use cost differentiation in some product segment to increase their sale and
profit. For example: NM Construction can use this strategy for segmenting cost that will be
required for operating business in an effective manner. Like funds that will be used for doing
marketing, functions of operations etc.,
Differentiation Focus : This strategy is adopted to differentiate the chosen particular
segment from other in respect of product. Separation of the product is done on the basis of
customer need.
PESTLE Analysis
This analysis discuss about the external factors of the environment which affect the
business in both positive and negative way. External factors are those which make alteration
according to the situation prevailing in the society. These factors are as follows-
Political factor : This aspect include various factors like tax policies,labour law and
monetary policies which create large or big effect on company operations (Eddleston and et. al.,
2013). NM construction have to follow all government rules and regulation whether by their own
will or by pressure. These laws should be followed at the same time when it comes in the society
without focusing on positive and negative impact.
Economical factor : Inflation and recession create a big effect on the business. When
inflation take place company suffers a huge loss because the product price get increase of same

product because the raw material get available at the high cost. In such a situation there is a
chance that some competitive firm acquire your market by availing product at low rate.
Social factor : The company need to modify the product according to customer taste and
preferences. If NM construction unable to fulfil the consumer demand than it creates wrong
impact on company's image (Galland, 2012) . It means that when firm do construction at some
place the they should consider the views for which they work.
Technological factor : NM construction need to modify their technology time to time so
that hard work can be easily done by employees and further they concentrate on other work. Due
to this there is a decrease in the labour intensive techniques which increase productivity of the
organisation. It is very difficult to upgrade technology after every time it should be upgrade only
after few interval because there is a huge amount involve in buying and installation which create
wrong impact on the company.
Legal factor : NM construction should follow all rules and regulation regarding
employees recruitment and health and safety. This is compulsory for the organisation to make its
employees satisfied and happy otherwise it lead to absenteeism and increase labour expenditures.
Environmental factor : With the increase in awareness in the society people want to buy
the environmental - Friendly product which improve company's reputation. NM construction
should reduce use of polythene and take care of emission which take place in their sites. The firm
should do minimum utilization of the resources. They should use three R's which are
reduce,reuse and recycle so that business can improve its market presence.
SWOT analysis
Strengths Weaknesses
 NM construction have efficient workers
because of which expenses of the
company reduces.
 Whatever work the firm is doing is
under deadline because of which
company is having a good standing
with its customers.
 Along with this, NM construction is
providing best quality services and
 Over-dependence on other resources for
executing their plans such as financial
help is one of the biggest weaknesses of
the company.
 Not getting work on a regular basis can
act as one of the weakness because
company can find difficult in achieving
its set targets in a speculated time

facilities which is enabling them in
sustaining a better position at market
area.
frame.
Opportunities Threats
 By adding new sections in the
company, firm can develop new
opportunities as this will help them in
performing their activities in a better
manner.
 Other than this, monitoring the market
environment on a regular basis can
assist firm in providing better services
and facilities.
 In construction business, whatever
threats come are basically in
collaboration such as decrease in
economy, employee's turnover etc.,
 Therefore, sudden change in economic
policies is one of the biggest threat
which can be faced by NM
construction.
M1
Company can have various kinds of choices for making their business grow and achieve
success. One of the most crucial element is making proper planning so that every action can be
done in a smooth manner. Other than this, it also helps in taking proper information related to
advance technology that company can use for getting effective results.
P2 Opportunities for growth applying Ansoff’s growth vector matrix
Business can expand its area only after fulfilling their customer needs and wants. The
firm can grow its undertaking after locating it stores at a different place which is in the
customer's reach and also by using modern techniques (Levy, 2016). For developing, firm can
use different approach on the basis of different situation and business structure. In relation with
NM construction they are using Ansoff matrix which is assisting them in operating its business
in a systematic manner and executing their plan in a better way. Here through Ansoff matrix
business exploit the opportunities of the marketplace.
Ansoff's matrix

Source: Ansoff's Matrix
Ansoff's growth vector matrix help the management and authority to expand their
business. This model is developed by Igor ansoff who is from Russian America. It describes
about the four strategies which can firm can used to survive and grow. This matrix is also known
with product/market expansion grid through which policies and strategies.
Product development : This stage has moderate risk because business organisation
launching completely new product and services in the current market. The aim of introducing
new product is to acquire the competitors customer's and enhance their own share of clients. This
technique should be native where people are already know about the old product of the brand
(MacLeod, 2013)). Due to this they easily acquire new product as they have trust on the brand.
NH Construction can use this method when market need some new commodity to make strong
presence of the brand. Modification or innovation in the product enhance the chance of the
survival and growth.
Market developments : When undertaking want to increase their sale then they establish
existing product into new market. This technique is more unsafe as compare to other segments
because entering in the unknown market. Concerned organisation can enhance its number of
clients through different pricing strategies, types of packaging and labelling,new distribution
channel and so on. NH Construction can introduce its existing product in new region only after
making necessary alteration or modification.
Illustration 1: Ansoff's Matrix

Diversification : This stage is most riskiest stage among all other stages because in this
completely new product is introducing in the new marketplace(Schetke, Haase and Kötter,
2012). When the business choose this type of action to expand its share then they are taking
large amount of risk which can gave them more profit or less profit or even loss. It involve risk
because company does not have any knowledge about the taste, preference and habits of that
particular region. Firm can get the best advantage after analysing the proper risk and gain in it.
NH Construction can also increase their sale and revenue through producing and introducing
new product into brand-new market. Correct balance between risk and reward gave long term
benefit to the organisation.
Market penetration : It is situation which is less risky among all the other stages. under
this efforts are made to increase sale by launching existing product and service in the existing or
current market. The company can achieve its goals through increasing usage of product with
some extra feature and by increasing number of clients through promotion,advertising,personal
selling etc. Promotion should be done effectively so that sales increase. NM construction can
increase its commodity demand by accomplishing extra needs and wants of the customer. The
respective company should use their fund their fund in more research so that they are able to
provide existing product with additional benefit.
Therefore, with the help of Ansoff matrix, NM construction will get to know about
different approaches through which company can establish and sustain their business in different
locations. For example: with the help of market penetration company can re-launch their
products in existing and current market. This will help them in increasing their sales and
profitability in a stipulated time frame.
D1
In the growth and development of business process a company can face different kinds of
risks. Therefore, in relation with NM construction while establishing its business into new areas
they are adopting Ansoff Matrix through which company is getting various approaches that are
required to be considered for operating its business successfully.

TASK 2
P3 potential sources of funding available to businesses and discuss benefits and drawbacks of
each source
NM Construction is a small business which involve in developing infrastructure for
various organisation and for people of society(Todes, 2012). Under this they are going to rise a
bid for acquiring fencing contract of £40 k of British high commission. In this contract company
want the guarantee and maintenance service. For bidding a contract they would require £40 k for
which they only need £20 k to borrow from other and remaining they have already with them(£
20k).The amount can be borrowed from any of external and internal source on the basis of their
structure and need.
Sources of fund is the mediator through which business can raise it additional amount for
operations. Money is very essential part of business with skill and knowledge without which
business can't go long way. There are various ways through which enterprise gather fund like
bank loan,peer to peer lending,equity,debentures and loan of credit etc. NM construction can
borrow the fund of £ 20 k from any of the below sources of the fund-
Furthermore, potential funding can be categorised into two sections and these are Internal
and external therefore, to understand it more in a better manner both of the factors are explained
in a better manner.
External Factor
Bank loan : When the money was not excess in the organisation then it can borrow from
any financial institution and bank. The amount is repaid on the discussed schedule taken place
between lender and borrower. under this loan is provided on the basis of the past credit history
which tell the person capacity to repay. The enterprise can arrange £ 10 k from this source.
Advantages : Interest rate is fixed earlier so that businesses or borrower can estimate the
total amount which they need to pay in the future. It is generally comes with fixed period due to
which bank does not have the right to recall it in between (Valler, Phelps and Wood, 2012)
Disadvantage :Paying interest and with loan amount is very difficult for the
organisation who runs on a credit basis or when prompt payment is not received by the customer.
Under bank loan there is a prepayment penalty, which borrower have to pay when repaying the
loan amount before the completion of the tenure.

Bank overdraft : This is a facility under which business can withdraw the money over
the limit . It was provided with current account to the business only. Facility depends upon the
working capital and credit worthiness of the borrower. NM construction company can borrow
remaining £ 10 k from here to maintain a equal balance of interest in the firm.
Advantages : Under this facility, undertaking can withdraw the money even in the case
of negative balance. It includes minimal paperwork which have the biggest merit because in
others there is a lot of documentation which have to be fulfilled by amount taker(van Assche, Lo
and Beunen, 2013).
Disadvantage : Overdraft facility sometimes provided after taking some security which
are shares,inventory so that they use it to repay the loan amount. Cost involved in overdraft is
much higher than other source of finance because it supply fund in a very less time which is even
for one- two days.
Internal Factor
Peer to peer lending : Peer to peer lending get completed after providing fund to some
unrelated person through online portal. Under this no property is taken from borrower in respect
of security. The lending time period ranges between one to five years.
Advantages: Under this no prepayment penalty is charged from borrower on paying
before the fixed time interval. It is beneficial for the person who bank loan is rejected due to past
credit history can take it from here and can satisfy their needs and wants. It charge very low
interest rate which was not involved in many other sources of fund.
Disadvantage: If the company has less credit score than they are not able to get loan at
less interest rate which harm the business profitability. To lend from here business should make
their credit score good so that they can't have to pay high amount of interest.
Own Savings: In order to establish a business mostly every individual having some
savings. This helps a person in running its business during their initial years. Therefore, in
relation with NM construction, owner of the company is having appropriate funds and in
addition to this, they are taking help from their family members if there is insufficient amount of
money.
M2
Funds can be generated from various sources with the help of which company can
execute their plans in an effective manner. Some of the sources are bank, financial institutions

etc., In recent times these sources are very common and mostly chosen by companies so as to
establish their business in an effective manner. In relation with NM construction they can choose
these kind of institutions for gaining profits in stipulated time frame.
D2
In this current market area, there are various kinds of technologies that are available in
the market and it help company in operating their business in a better way. But there are some
complications as well which firm can face while performing their operations such as less time,
insufficient funds etc., Along with this, legal issues can also create problem for firms in doing
their business.
TASK 3
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business
Business plan – A business plan is formal statement of business goals, objectives which
has to be attainable and plan for achieving them. This includes background information of
company and team efforts for reach with desired goals and targets. There are various aspects
such as financial budgets, path, goals and instruction and other management techniques for
reaching with desired goals in effective manner (Allmendinger and Haughton, 2013). Business
plan play an essential role in formulating different activities and enhancing income so company
can grow in better way. It is useful for firm so they can solve any type of issues and problems in
implementing plan for achieving best possible results. There are required to determined various
factors which can directly impact on company such as policies, environmental factors and so
more.
Company overview - NM construction is the company which developing infrastructures
of roads, dams, hotels and so more. In this assignment, NM construction firm is bidding a
contract which are related to British high commission for written statement of construction
facilities or services (Kumar, 2016).
Vision – “To reaching with highest level of set organisation goals and targets in effective
manner”.

Mission – “To provide quality workmanship and effective customer service and maintain
the highest level of professionalism and honesty in their relationship with our customers, worker
and merchandiser”.
Objectives – There are some objectives of NM construction company:
 To provide excellent customer services
 To satisfy their client needs and requirement as per their demand
 To reaching with desired company goals and objectives
 To increase the sales of NM construction by 15% in 6 months. To improve market share of company by 25% in 1 year.
SWOT analysis of NM construction company:
Strength:
 The firm provide various services to the customers at affordable price
 They are making strong relationship with their partners such as suppliers and builders. They are mainly focus on developing good materials and construct strong building so
that customers are attracted towards them.
Weaknesses:
 In this, lack of finance or inadequate funds can develop issues in business activities and
functions. They have poor image in the large market place.
Opportunities:
 Company are mainly focus ion attracting their investors so there is chance to invite
foreign direct investment in an organisation.
 Most of the organisation are using latest techniques and methods so they are perform
their activities in better manner (Wey, 2015). They can easily expand their business in other location for increasing market growth and
size at higher level.
Threats:
 In the large market place, there are various competitors who are also providing similar
services or facilities to the customers.
There are different external factors which create issues and barriers within an organisation.

M3
While operating a business, business plan plays an important role as it helps company for
establishing its business in a systematic manner. Along with this, it assist firm in identifying
resources that are important to be considered so as to deal with different aspects within the
market area. Therefore, it help company in understanding its strengths and weaknesses or the
places company have to work on so as to provide better services and facilities to its valuable
customers.
D3
For attaining success, making strategies is very important and for this planning plays an
important role. This enables organisation in understanding the variables who are required to be
managed or provided directions in order to accomplish business activities in an effective manner.
Strategies that are formulated primarily aid company in focussing on quality, shortcomings and
openings through which better opportunities can be gained.
TASK 4
P5 Exit or succession options for SME'S with their merit and demerit.
There are various methods which NM construction can use for their growth and
development in the environment. Exit or succession options are as follows-
Merger and Acquisition : In merger two companies come together can form completely
new firm to increase its market presence against its competitor(Chen and et .al2014). Acquisition
take place when some big company take over small bushiness organisation to fully explore
opportunities present in the market. Acquisition take place because the firm want to incre4ase its
market share and profitability. Both of them undertaken by selling the assets,by sharing of
knowledge and skills and exchanging the shares.
Advantages : Due to M&A business able to get control and power over the marketplace
which increases their sales directly. It also provide the different skill and knowledge which help
business to survive for a longer period. Due to large number of skills and technologies business
decrease the risk rate.
Disadvantage : Sometimes merger take so much time that it increase the cost of the
company and make heavy losses to the business. Duplication of the work happen because of the
merger of same field businesses (BlackburnHart, Mand Wainwright2013).

Liquidation : Business sell off its assets when they not find themselves in the capacity to
pay its dues. Under this assets are sold to repay the amount of the creditors and the secured
lender on the basis of their priorities in the business.
Advantages : Workers or employees are liable to get the salary amount and remaining
incentives whether liquidation take place voluntary or compulsory. Amount is generally in the
form of redundancy and arrears wages. After liquidation directors get free from their
responsibilities and threatening calls.
Disadvantage : The amount which was taken by the directors are to be repaid in the
same way like it was debt of the institution. The repayment should be done by the company as
early as possible by the liquidator at the time of liquidation.
M4
In order to make business successful, it is crucial that an individual gives time and use
effective resources that are available. This will help in delivering best results and outcomes and
aid owner of the company to take its business to next level. Furthermore, this can be done by
formulating strategies and action plan according to the needs and requirements of business.
D4
For making business effective in nature it is important that company have set objectives
and goals on the basis of which strategies can be developed. Therefore, it is crucial that while
operating business an individual knows every component that can provide benefits or can
hamper business operations as well.
CONCLUSION
As per the above described report, it can be concluded that planning is one of the most
effective procedure which assist in increasing company growth and development level. Planning
can be define as thinking process where strategies are undertaken for various business functions
and activities. This is required plan for making higher business growth because of strong rivals
through this management determine different aspects for relevant planning that is useful for
generating high income and revenue for an organisation.

REFERENCES
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