Urban Planning Theories and Practices

This assignment delves into the world of urban planning, examining various theoretical frameworks and their practical implementation. It covers topics like landscape expansion, environmental policies, growth planning, transportation infrastructure, and the influence of planning consultants. Students will analyze case studies, research trends in urban development, and explore the challenges and opportunities facing cities today.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration for evaluating growth opportunities ........................................................1
P2 Ansoff matrix for growth opportunities.................................................................................4
TASK 2............................................................................................................................................6
P3 Assess the potential sources of funding available to businesses............................................6
TASK 3............................................................................................................................................7
P4 Develop a business plan and communicate how you intend scaling up a business...............7
TASK 4..........................................................................................................................................10
P5 Succession options for small businesses..............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth is a strategic process that allows business to plan and monitor
growth of their enterprise. It enables business to allot required resources to adapt changes in
industry or market. It helps companies to achieve goals by their present actions (Wu, 2015).
Present report is based on A David & Co. Ltd., which deals in food and beverages industry and
provides production and distribution of fruits. Company offers fresh fruits, bakery items,
vegetables and ready to prepare products to schools, caters, restaurants, and government
contracts. This report focuses on evaluation of growth opportunities through Porter's generic
model, PEST analysis and ansoff growth matrix. It explains about different types of potential
sources of funding and their benefits and drawbacks for small medium enterprises. This project
also explains succession options for business and their advantages and disadvantages for same.
TASK 1
P1 Key consideration for evaluating growth opportunities
Every business or organisation plan to grow as early as possible so that it can survive and
compete with other businesses . A David & Co Ltd a food and beverages company offering
different type of product range like cheese bread, bakery, dairy, frozen food, catering etc. In
future the company want to grow their business by the help of different marketing techniques
such direct selling, email marketing, digital marketing etc. Among these three technique the
most effective and useful one is the marketing of product through digital medium of technology.
In last few years the digital technology has made great impact in the marketing field and some of
them uses, cloud technology, social media, artificial intelligence to grow and develop their
businesses.
Competitive advantage- It is an advantage over different competitors by giving the
product with higher value, low price and better services when compared to other company.
Every companies goal is to achieve competitive advantage over its challenger (Viitanen and
Kingston, 2014). Assets, characteristics and different abilities of the company are the pillars and
strength of the company, so the competitive intelligence which includes action, to analyse and
distribution of different product in an intelligent way is always needed to gain the competitive
advantage over other. Porters generic competitive strategies shows the way to attain competitive
advantage from rivals.
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Porter's generic competitive strategies
For the long run of the business and to gain competitive advantage over other there are
two basic type of advantage an organisation can have which have lower cost and differentiation
in the column, of chart and target in the broad and narrow sense placed on the rows. The generic
strategies are as follows.
(Source: Porter's Generic Model, 2018)
Cost leadership - The method in which objective is to produce the large scale of product
in lower cost as possible. A David & Co Ltd can make this happen by selling their product at
the least price or to the equal to price of the average selling price in market and can achieve the
lowest cost of the product and can make or enjoy the best profit compared to other companies
(Mehmet, 2014). As by profit business can grow at every level and make development in aspect
of the company.
Differentiation- It aims to differentiate their product to the other company by producing
completely different product.. It targets the market with small number of segments. Just to make
the commodity unique and giving preference to some special or regular customer differentiation
is done. It is all about charging some premium pricing for their best product. A David & Co Ltd
can give special preference to the target costumer by considering their different choices and
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make them feel special. Which will help company to grow and develop their strategies regarding
the different customer in various region.
Focus - Here focus means concentrating on the specific area or part of market. It comes
with two strategies cost focus and differentiation focus. Cost focus takes advantage of cost in the
particular target of market segment. While differentiation focus aims to make the product to
differentiate in the different target segment (McLean, 2018). The target segment have their
customer with the unusual needs while cost focus will improve the satisfaction level of the buyer
as they are paying of value for money product. A David & Co Ltd can make focus on the target
customer regarding their latest choices, different product demand etc.. It will help the company
to grow in the bigger level and the overall versatility of the company would be increased which
helps in growth of the company.
For A David & Co Ltd the best suitable method to grow could be differentiation as
there are various company in UK (United Kingdom) offering similar product and almost similar
pricing so they need to differentiate with them by target segmentation and by using the digital
technology in which different zones using social media platform like Facebook, Instagram to
grow and remain in contact with people And can also use the artificial intelligence technology
which can automatically address the choices of customer and helps them in making choice of
their product (Eyvindson and Kangas, 2015). As with time there are chances of business to
spread out and can use the cloud technology to save and share data when there would be
requirement at any time. So by using these digital platforms A David & Co Ltd can grow to the
optimum level with its full potential.
Pest analysis -The type of analysis that uses various factor which are usually on the far side of
the control of firms and sometimes becomes threats and opportunity to the company. For this
reason, we have to analyse them to know each and every aspect of company.
Political Factor - This analysis includes the political environment in which political
stability, tax regulation, different industry safety regulation etc. are analysed. A David & Co Ltd
can take the tax benefits which comes in policy of UK government to grow effectively. For
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SME's(small medium enterprises) threat could come in legal frame work in the form of high
cost.
Economical Factor- It covers all the costs which comes in monetary measure such as
economic rate of growth, labour cost, rate of interest, unemployment rate etc. In A David & Co
Ltd Growth opportunities are there during low inflation and interest rate as it eases the process
of loan if a company wants to spread itself (Liu and et. al., 2014). While threats will appear
when country is suffering from low exchange rate of currency and high rate of interest.
Social Factor-It covers different social problem, issues regarding it and current trends in
the present and also cultures, education, fashion and demographics. A David & Co Ltd can grow
better in region having the entrepreneurial spirit among the business people and threats can come
in the form of culture where people do not accept their product as their culture not allow to use
them.
Technological Factor -These are the variable which impact the business operations. As
technological change impact over all businesses. A David & Co Ltd can grow their business
while responding to the technological change by giving their services through totally new digital
technology like getting order from far places through mobile or computer application (De Roo,
2017). Threats can come in the form of digital fraud and from hacker who could breach the
private information of the company.
P2 Ansoff matrix for growth opportunities
Ansoff vector matrix: This model was developed by Igor Ansoff. Businesses use this
model as a strategic tool to identify growth opportunities for their company. It also identifies risk
associated with different strategies. This matrix includes 4 strategies for growth by introducing
new and existing products with new and existing market or customer base. A David & Co. Ltd.
Can use these strategies for analysing growth opportunities which will help company to become
leader in market. The following are 4 strategies for growth: Market penetration: This strategy is used by companies to focus on existing market by
selling existing products into existing market. Company can increase their market share
by using competitive price strategies, sales promotion and other promotion strategies
etc. It will increase consumer loyalty by providing them quality products. A David &
Co. can use this strategy by using digital technology for growth of company like cloud
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technology for storing and sharing information of their existing customers for
maintaining relations with them. Market development: This is use to attract new customers for serving existing products.
New customers can be identified by geographic location like: approaching new
customers in domestic or international market. It is more risky strategy as company is
approaching new consumers. A David & Co. can use this strategy by identifying
distribution channel and using new product technology (Carrozza and Russo, 2014).
Company can use Artificial intelligence for product growth and innovation, social media
will help them to identify new customers, provide way for communicating and creating
relationships with domestic and international consumers. These technologies will assist
them in identifying opportunities for growing their business. Product development: Organisations use this strategy to grow by offering new or
innovative products to its existing customers. Company requires to have competitive
advantages or development of new technologies to innovate or introducing new
products. A David & Co. use this by identifying opportunities for product demand and to
satisfy that demand business can use research & development. They can improve
quality, packaging, manufacturing processes and by addressing consumer feedback. This
company can use Internet of things for integrating organisation structure, Artificial
intelligence for improving their products and company use this for being ahead in
competitive environment by introducing new products and services.
 Diversification: It focuses on introducing new products in new markets. This helps
company in growing as it will increase company's market share and customer base. It is
very risky as business has no experience in that market. A David & Co. can use this
strategy as it will help them in identifying opportunities to change their process or
infrastructure (Loh and Norton, 2015). They can do diversification in two ways: Related
and Unrelated Diversification. In related diversification, company creates synergy
between existing business and new market or products. As it helps organisation to create
smooth business process by connecting with other firms. In Unrelated diversification,
company connects with businesses which are in different business. By these two
company can grow with help of other businesses as it will help in better providing better
processing.
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From above discussed growth strategies A David & Co. should choose Market
development strategy. As this company deals in Food & Beverages industry. It has opportunity
to grow their business in domestic as well as international market. Use of digital technology will
also help business to grow in new market like use of Artificial intelligence of innovation in
product, Social media to connect with consumers, Cloud technology for storing and sharing
information of customers and Internet of things to integrate organisation structure to provide
homogeneous services round the word (Frank and Reiss, 2014).
TASK 2
P3 Assess the potential sources of funding available to businesses.
Many companies are looking to grow or expand their business, but get confused on the
best source of seeking funds for their purpose. There are many options for ideal source of
financing which can be an overwhelming process.
Angel investor - Those are wealthy individuals who provides funding in exchange for a
share of equity in the business. Such type of investor invests in highly risky companies, typically
before those companies have any revenue or profits (Hobbs, 2016). Most of the angel investors
are private individual and public holding firm also. Benefits – Angel investor offers valuable advice and guidance since they have experience
in an industry. They have flexible business terms (Sources of Small Business Financing,
2018).
 Drawbacks - There might be a situation to lose cSources of Small Business
Financingontrol of your business to some extent.
Venture capital - Venture capitalists are investors who put in a considerable amount of
money in exchange for equity in the business and get return when the business goes public or is
acquired by another company. Benefits - Venture capitalists not only provide funding, but also offers expertise and
mentorship to help developing the business (Wolf and Floyd, 2017). They also gives the
business immediately credibility and opens door to a wide network for future investor
and partner.
 Drawbacks – They may be forced to give up a large chunk of your business due to the
significant amount of funding provided.
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Bank loans – These are popular source of funding for many small as well as large
businesses. Before applying for a bank loan, it's important to ensure that you must well-educated
about the various option available, and the interest rates that come with each option. Benefits - There are different funding option depending on your needs. The funding
process is relatively quick if you qualify. One doesn’t have to give up control of the
business.
 Drawbacks - It requires lot of documentation, which can be tiring and time-consuming.
Small business administration loans - This involves funding from a government
administration devoted to assisting small businesses to succeed (Pugalis and et. al., 2016). SBA
help small businesses to get capital and ensures that a certain percentage of contracts are
awarded to the small as well as large businesses. Benefits - It helps in improving relationship between lender and borrower. It increases
chances of obtaining a bank loan if the SBA loan is properly managed.
 Drawbacks - There are strict qualification guidelines. Interest rate would be high in
comparison with bank loan.
TASK 3
P4 Develop a business plan and communicate how you intend scaling up a business
A business plan is a formal statement of business goals, reasons that are attainable, and
plans for reaching them. It also contains background information about an organisation or team
attempting to reach those goals. Written business plan is often required to obtain a bank loan or
other financing.
Company overview - A David & Co Ltd. Provides production and distribution of fruits.
The Company offers full range of fresh fruits, vegetables, exotic produce, ready prepared
products and bakery items and are delivered on a daily basis to hotels, restaurants, school and
governments contract (Grange, 2014). Company provides online ordering services to their
partner on 24 hours’ basis.
Mission & vision statement - A vision statement of A David & Co Ltd is commitment
towards customer service, Quality, Excellence, Teamwork and Respect. Mission statement is to
provide customers with first class products and service and excellence in their work, exceeding
all expectation for customers and staff alike.
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Strategic objectives - A David & Co Ltd has set an objective to raise personnel
management in the company with advanced manpower policies. Company has adopted a plan to
expand their business in terms of better customer service, efficient delivery system and
developed infrastructure in order to become successful and profitable.
Products & services - Products of A David & Co Ltd are fresh fruits, vegetables, exotic
produce, bakery items and cleaning supplies for delivery basis. Their partner include healthcare,
hotel & restaurants, event caters and schools.
Situation analysis - It refers to a collection of methods that managers use to analyse an
organisation's internal and external environment to understand an organisation capabilities,
customers and business environment (Lomas and Wood, 2017). For this, SWOT analysis is
conducted by executives of A David & Co Ltd to analyse company's weakness, threat and take
steps to overcome it. It includes:
Strength - One of the major strength is first class customer's experience with online order
system delivering different kinds of food products and cleaning supplies. Products are used by
suppliers of 123 countries with BRC Grade A Global Certification. There is a community spirit
group by A David & Co Ltd to maintain their customer loyalty and connect with them at one
place.
Weakness - No direct connect with customer because they are limited to particular types
of supplier. As a result, It will increase margin issue with supplier in the future depends on rise
in prices of their products.
Opportunities - As discussed above, there is no direct selling to customer. A huge
opportunity for A David & Co Ltd exists here for opening new retail outlets and units under UK
market in an initial stage, if succeed, then globalize to different parts of world.
Threat - There would be a severe competition in the future and especially price war. For
tackling this threat, opening new retail outlet is a suitable decision to grow in the market, but
there is a involvement of huge cost for implementation of this strategy.
Financial information - Cash flow statement is prepared by A David & Co Ltd to know
the sources of funds raising through various investors/financial institution/banks and record
outflow of funds made by company. It will help company to realize liquidity and long-term
solvency of a company (Lynch, 2016). It will help A David & Co Ltd to record their investment
raised and actual return on investment(ROI). It facilitates to prepare sound financial policies and
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helps to evaluate the current cash position. CFS will be made at end of the year to record cash
outflow and inflow and annual position at the end of the year.
A David & Co Limited
Cash Flow Statement
For the Year Ending 31/12/18
Cash at Beginning of Year 22,500
Operations
Cash receipts from customers 4,25,875
Cash paid for
Inventory purchases (1,58,252)
General operating and administrative expenses (10,658)
Wage expenses (1,05,852)
Interest 8,502
Income taxes 18,780
Net Cash Flow from Operations 1,78,395
Investing Activities
Cash receipts from
Sale of property and equipment 35,564
Collection of principal on loans
Sale of investment securities
Cash paid for
Purchase of property and equipment (45,821)
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Making loans to other entities
Purchase of investment securities
Net Cash Flow from Investing Activities (10,257)
[42]
Financing Activities
Cash receipts from
Issuance of stock
Borrowing
Cash paid for
Repurchase of stock (treasury stock)
Repayment of loans (42,585)
Dividends (45,850)
Net Cash Flow from Financing Activities (88,435)
Net Increase in Cash 79,703
Cash at End of Year 1,02,203
TASK 4
P5 Succession options for small businesses
Now days every company needs to know their position in market to be competitive
enough. Companies needs funds in order to expand their business. When company has enough
funds for expansion than they opt for succession options. If company do not have funds for
expansion than it opts for exit options. A David & Co. is a small medium company; company
has two options succession or exit. Company choose among these options according to
opportunities available in market for their company. The following are succession options for A
David & Co.:
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Merger and Acquisitions: These are major aspect in financial word. It means
consolidation of business. Merger refers to combination of two companies, who operates in same
business and are in equal size (Xiang and et. al., 2015). They identify advantages of other
business which they will have after merger like increase in sales, productivity and capabilities
etc. Both firms create new venture and become partner in new business. In Acquisition, one
company purchases another company and acquire its operations and decision making rights. It
buys all shares, stocks and other assets of target company. As each company has some benefits
and drawbacks Mergers and Acquisitions also has following advantages and disadvantages: Benefits: It will help in increase economies of scale as production function of both
companies will combined and It will reduce cost of production. This will enhance
market share and financial resources. It can help in improving distribution capabilities
by expanding their service area. Merger reduces competition in market . Drawbacks: Employees loss their jobs due to increase in number of employees,
difference in corporate culture of both companies, increase in liabilities as if new
company has debt than other company has to pay that debt.
Joint venture: It is a kind of agreement between two or more business entity to joint
their resources for completing specific task. It can be for short-term or long-term. They form
new legal business entity and share control and ownership (Lee, 2014). These entities are
responsible for all profits and losses. Following are benefits and drawbacks of joint venture: Benefits: It provides access to rare resources and new technology. Both parties share
risks and enables company to enter into new market. It offers synergy benefits like
financial and operational synergy.
 Drawbacks: Partners in joint venture have different goals and objectives. Difference in
culture and management style leads to poor co-operation and integration. Less flexibility
because they work on basis of mutual agreement.
CONCLUSION
It is concluded from the above report that planning for growth plays an important role in
development of the business enterprise. There are several strategies that can be followed like
evaluation of growth opportunities, PESTLE analysis and preparation of effective business plan
as this may help in growing the business in an appropriate manner. As we all know that every
business need funds to bear all expenses in order to expand their company at domestic as well as
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international level. This report has suggested A David & Co Ltd to generate funds through
various sources mentioned in the report. For succession of business, there are various strategies:
merger and joint venture. Both are relevant to expand business effectively but at some extent
because of benefits and advantages together in case.
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REFERENCES
Books and Journals
Wu. F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
Viitanen, J. and Kingston, R., 2014. Smart cities and green growth: outsourcing democratic and
environmental resilience to the global technology sector. Environment and Planning A.
46(4). pp.803-819.Sources of Small Business Financing. 2018
Mehmet, O., 2014. Economic Planning and Social Justice in Third World Countries(Vol. 75).
Routledge
McLean, M., 2018. Understanding your economy: Using analysis to guide local strategic
planning, Routledge.
Eyvindson, K., and Kangas, A., 2015. Evaluating the required scenario set size for stochastic
programming in forest management planning: incorporating inventory and growth
model uncertainty. Canadian Journal of ForesSources of Small Business Financingt
Research. 46(3). pp 340-347.
Liu, X. and et. al., 2014. Simulating urban growth by integrating landscape expansion index
(LEI) and cellular automata. International Journal of Geographical Information
Science. 28(1). pp 148-163.
De Roo, G., 2017. Urban Environmental Planning: Policies, instruments and methods in an
international perspective, Routledge.
Carrozza, G., and Russo, S., 2014. Dynamic test planning: A study in an industrial context.
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Loh, C. G. and Norton, R. K., 2015. Planning consultants’ influence on local comprehensive
plans. Journal of Planning Education and Research. 35(2). pp.199-208.
Frank, K. I. and Reiss, S. A., 2014. The rural planning perspective at an opportune time. Journal
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Hobbs, F. D., 2016.Traffic planning and engineering: Pergamon international library of
science, technology, engineering and social studies, Elsevier.
Pugalis, L. and et. al., 2016. New approaches to growth planning on larger-than-local scales.
Journal of Urban Regeneration & Renewal. 10(1). pp.73-88.
Grange, K., 2014. In search of radical democracy: the ideological character of current political
advocacies for culture change in planning. Environment and Planning A. 46(11).
pp.2670-2685.
Lomas, G. M. and Wood, P. A., 2017.Employment Location in Regional Economic Planning: A
Case Study of the West Midlands. Routledge.
Lynch, A.J., 2016. Is it good to be green? Assessing the ecological results of county green
infrastructure planning. Journal of Planning Education and Research. 36(1). pp.90-
104.
Xiang, Z. and et. al., 2015. Adapting to the internet: trends in traveller's use of the web for trip
planning. Journal of Travel Research. 54(4). pp.511-527.
Lee, N., 2014. The creative industries and urban economic growth in the UK. Environment and
Planning A. 46(2). pp.455-470.
Wolf, C. and Floyd, S.W., 2017. Strategic planning research: Toward a theory-driven agenda.
Journal of Management. 43(6). pp.1754-1788.
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