Planning for Growth and Development

This assignment involves a comprehensive review of research papers on planning for growth in different contexts. It includes a meta-analysis on the relationship between business planning and performance in small firms, as well as studies on growth poles strategy, planning for life stage differences in family businesses, and integrated distribution systems planning to improve reliability under load growth. The assignment also touches upon urban and regional planning in China, smart growth strategies, and challenges faced by urban planners in natural resource boomtowns.

Planning for Growth

Table of Contents
INTRODUCTION....................................................................................................................... 2
TASK 1....................................................................................................................................... 3
P1. Key considerations for evaluating the growth opportunities..........................................3
P2. Identification of growth opportunities by the use of Ansoff's growth matrix.................4
TASK 2....................................................................................................................................... 7
P3 Potential sources of funding and their advantages and disadvantages.............................7
TASK 3....................................................................................................................................... 9
P4 Designing business plan for growth of organisation.......................................................9
P5. Exit and succession option for small business.............................................................10
CONCLUSION.......................................................................................................................... 12
REFERENCES.......................................................................................................................... 13
INTRODUCTION
Every business organisations need to plan all operational activities in a proper manner. It
plays an important role in increasing growth and success of business in a given period of
interval. Therefore, management of a company is required to determine all factors present in
business environment which impact on operations. It will help in making good plan which
includes strategies, policies and all activities through which goals and objectives of an

association can be accomplished. Further for attaining growth and success of a business, digital
technology also plays a vital role (Barbour and Deakin, 2012). In this context, a report has been
prepared on Hotpoint Company of UK. This firm deals in manufacturing sector and serves
electronic appliances for domestic purpose like refrigerator, fridge, cooler and more. Currently,
it wants to expand business in international market by adopting digital technology in working
system. Therefore, this assignment recommends a business plan for achieving such goal of
company. In addition to this, application of Ansoff's growth matrix for promoting products of
enterprise also
TASK 1
P1. Key considerations for evaluating the growth opportunities
Hotpoint is a manufacturing firm of UK which serves best quality of electronic home
appliances in UK and European countries. Due to increase in competition, sales performance of
this firm decreasing at high rate. So, it needs to makes modification in business production and
manufacture new products having latest features. Therefore, current aim of this firm is to serve
new commodities at marketplace and expand business at international level. In this process,
manager of this firm needs to analyse current situation of marketplace, demand of customers as
well as opportunities through which it can attain set target (Li, Mobin and Keyser, 2016). By
determining these phases in a proper way, for further procedure superiors of firm are required to
formulate an appropriate planning. It would help in taking proper decision as well as developing
strong strategies and policies. For attaining good success this company needs to implement
digital technology. Digitalising the business is helpful for all type enterprises especially technical
firms to produce innovative and creative products. Therefore, it plays an important role in
developing small sectors and moving their entities on international level. Along with this, for
creating modification, a firm needs to made a proper discussion with employees and inform
them what changes will be going on in working system so that they can prepare themselves for
the same. Some major growth opportunities available in marketplace for Hotpoint Company by
implementing digital technology are:-
Competitive advantage: An organisation has various departments which performs
different-different roles in improving performance of business (Grover, Bokalo and Greenway,
2014). Therefore, in this context, introducing digital technology in working system aids these
divisions to carry out their operations in an effective way. Operational management gets benefits

in utilising resources in a proper manner. While production department gets chance to
manufacture good products as per requirement of customers. In the same manner, marketing
sector uses digitalisation for promoting products or services of association in a large marketplace
easily. Thus, all these things show that digitalisation helps in improving overall performance of a
company. It further aid firms like Hotpoint to grab more attention of customers and convince
them to buy its commodities. It would in attaining competition in a large manner.
New products and services: By using latest technologies and its services helps a firm in
making good connection with customers. Through this, such enterprises can understand need and
desire of people as well as can take their feedback also about services delivered by them. These
processes aid industries to make modification in business structure and serves new products as
per requirement of consumers (Hough and et. al., 2010). In addition to this, introducing new
techniques in working system, provide opportunities to workers in developing knowledge and
learns something new.
P2. Identification of growth opportunities by the use of Ansoff's growth matrix

When a company introduce digital technology in business then there are many growth
opportunities generated through which it can accomplish its set target in a limited period of time.
Through such opportunities it can develop products or services as well as can create
differentiation in them also. It will help customers to can easily compare commodities of a firm
with others and opt a best one out of them. In context with Hotpoint Company, its management
has used Ansoff's growth matrix for identification of opportunities available at marketplace to
make its electronic goods better than others (Keough, 2015). In addition to this, it gives various
applications of different strategies through mentioned industry can develop its working system
and work of departments. This matrix has consisted four areas as market penetration, product
development, market development and diversification. It helps in overall improvement of
business and achieves set targeted on time in a desired manner. Thus, procedure of these four
applications of Ansoff growth matrix can be described as below:
Market penetration: It is one of a main growth strategy procedure in which a company
used to sell its existing commodities in same marketplace where it has established business. This
method provides various different strategies and procedure through which Hotpoint can
improves its sales performance. It provides some tricks that aid organisations in gaining attention

of customers towards commodities and convince them to buy the same. In this procedure,
managers of present enterprise used to sale its appliances on various impressive discounts. This
firm has used to offer existing goods on 30% to 40% discounts. In electronic market, customers
always seek to get appliances on discounts as such products are available on high cost. So,
strategy of selling goods on affordable prices helps in satisfying needs of consumers as well as
improves sale performances.
Product development: It is another phase of business strategy which aid industries in
grabbing more attention of customers (Eddleston And et. al., 2013). In this procedure, Hotpoint
used to add some more features in its existing goods and make new products also having latest
technology. Before developing production, this firm has made a proper planning like till what
extent they need to make modification so that products can satisfies demands and needs of
customer in a proper manner. In addition to this, to develop good connection with customers it
used to interact with them by effective communication method and timely get their feedback or
suggestion through which alteration can be done in appropriate way.
Market development: After making new commodities and develop the existing one, this
strategy has assisted Hotpoint to sale them in new market area. This strategy helps in identifying
area where such products can easily be sold on desired rate so that high return on investment can
gained. Thus, it aid firms in covering a large market share. In addition to this, this method also
entails with some tricks to promote brand name in a wide manner. Through this procedure,
marketing department of enterprise can determine situation of marketplace, determine needs of
customers and their purchasing power, identifies price strategy of rivals and more. All these
procedure help in building strong strategies through which given company get attention of loyal
consumers and retain them with products for a long period of time. In addition to this, it also
used online procedure of marketing for selling its products to customers who are living at distant
places in effective manner.
Diversification: This is the last but most important strategy of growth matrix technique.
It helps firms to diversify products of own from other companies who are selling same
commodities in similar market area (Chapin, 2012). In this procedure, marketing department of
Hotpoint use to make aware customers about new technology and features of electronic products
as well as entails them benefit of the same.

TASK 2
P3 Potential sources of funding and their advantages and disadvantages
Expanding business in other locations and countries is most important priority of a
company. Every industry wants to make its business globalised through which it can improve
sales performance and gets higher return on investment. Therefore, for attainment of such
objectives in needs to make a proper plan through which all activities can be done in proper
manner. But to attain such goals and objectives in a desired manner, a small firm like Hotpoint
needs to arrange proper funds first (Christofakis and Papadaskalopoulos, 2011). Without
sufficient amount of finance, it cannot operate further activities of business operations in an
appropriate way. In addition to this, for attaining success this manufacturing industry needs to
adopt latest technology in working system also. It would help departments of company like
HRM, operational and production management etc. to do their functions in a proper manner.
Thus, for enhancing capabilities, expanding business market, promoting goods and more, this
enterprise needs to identify sources from where it can get funds on easy rate of interest. Some
sources available in marketplace are bank loan, peer to peer lending, crowd funding and so on.
All these sources have own terms and conditions, therefore, managers of Hotpoint are needed to
identify procedure of each as well as importance and drawbacks. It would help in choosing best
one from all. Some sources of funding available in marketplace of UK are:
Sources Procedure Advantage Disadvantage
Bank loan It is the most easiest
method of fulfilling
the requirement of
funds for a company.
In this procedure, an
association can take
loan from banks on
easy terms and
condition. In addition
to this, since
increasing rate of
Rate of interest on
bank loans is much
low. It is the most
secure method as
compared to others.
In order to take loan
from banks, a firm
requires to follow all
rules and regulations
of them. In addition to
this, these loans are
available on mortgage
of their properties or
assets.

SME’s contributes a
large share in
increasing economy
rate of UK, so
government has
provided support to
such firms by
arranging funds on
low rate of interest
(Burton, 2010).
Crowd funding This method is also
beneficial in acquiring
proper funds for an
enterprise. This
source used to take
funds by number of
individuals of a
country. In this
method, a company
take loans from small
investors who will
further takes a share
in profitability of
them.
This method is latest
innovation in funding
as well as the fastest
way of raising funds.
Investors make
investment and track
progress of business
which helps in
promoting brands in
more economical
way.
As compared to other
traditional ways,
crowd funding is not
an easier process for
raising funds. In this
type of funding, a
company needs to
secure its confidential
data and innovative
ideas with an
intellectual right. As
leakage of
information can be
happened.
Thus, Hotpoint firm used to take loan from investors as it is easy to pay them returns
against their investment.
TASK 3
P4 Designing business plan for growth of organisation
Formulating proper business plan is an important and complex procedure for
management of a company. It includes various activities and procedures like mission, vision,

details of business and more (Brinckmann, Grichnik and Kapsa, 2010). In addition to this, it also
includes planning of the each activity and function in terms of operation, production and
marketing in an appropriate manner. It helps in completing a project in given period of time as
well as produce desired outcomes in a better manner.
Thus, Business plan for Hotpoint Company for expansion of business through digital
technology is mentioned as beneath:
Company Description
Hotpoint is a manufacturing firm of UK which serves electronic domestic products in
marketplace. It includes products like washing machine, refrigerator, electric toaster and more.
This firm is one of a leading organisation which is known for its innovation (Chapin, 2012). It
sales commodities on affordable price rate as well as on instalment also.
Mission: The mission of Hotpoint is to expand business operations in international market and
covers a large share. The management has formulated various plans and strategies like
implementation of digital technology for increasing profitability.
Strategic objectives:
 To introduce digital technology in organisational system for future growth
 Manufacturing high innovative products
 Development of products as well as differentiate them in proper manner for attaining
competitive advantage
Internal analysis
This technique entails internal strength and weaknesses of an association through which
managers can determine opportunities for acquiring which are available for them by
implementation of digital technology. Thus, some major strengths and opportunities of Hotpoint
Company are:
Strengths
 Innovative and high featured products reflect its major strength.
 This firm has large distribution and networking channels which aid in distributing goods
in big market.
 Creating modifications on regular basis with trends of markets helps in grabbing more
attention of employees.
Opportunities

 This enterprise can enter into new market area by manufacturing different electronic
products like TV of unique and latest features.
 Improve the quality of existing products
 Implementation of digital technology helps in moving business in international market.
Target market
This procedure helps in determining need and demand of people in a particular area (Li,
Mobin and Keyser, 2016). Therefore, Hotpoint needs to create market segmentation through
which it can understand purchasing power of each segment in a proper manner. In technical
business, a firm can attains its growth and profitability by selling its products through online and
offline sources both. Therefore, this firm needs to open more outlets in highly populated area as
well as use online technology to sell its commodities.
Financial information
Creating modifications, introducing digital technologies and making business globalise
require a lot of funds. So, Hotpoint needs to raise funds from different sources available in
marketplace. Its managers are required to formulate a proper budget plan and present the same in
a proper manner in front of investors. It would help in getting more funds from them.
TASK 4
P5. Exit and succession option for small business
Exit and succession option are taken as two important concepts for sustainability and
survival growth of an enterprise. Both terms are dependent on overall performance of a
company. Therefore, managers of Hotpoint are needed to analyse properly the present position
of this firm in marketplace, performance of it and more (Grover, Bokalo and Greenway, 2014).
Further, they should organise a conference meeting with Board of Directors of this enterprise,
investors and stakeholders and made a proper discussion with them whether they may continue
their business in certain terms and conditions or dissolve the same if profitability is not achieved.
There are ways through which managers of Hotpoint can dissolve or continue business in future.
Various ways to exit business:
Liquidation: In certain condition, if employers of a firm evaluate that there is no further
scope of running business successfully and attaining growth or profitability then in this condition
it is better for them to wind up the business.
Advantages:

In case of liquidation, after exiting from business, employers are free from all type of
debts if they did not give any type of legal guarantee to pay. It would lead them to start up a new
business with more innovative ideas.
Disadvantages:
In winding up business, for making payment to investors and creditors, board of directors
on enterprise are needed to sale its commodities, mortgage and existing asset on low rates
(Eddleston And et. al., 2013).
Sell the business in open market: In certain situation of exiting, directors of enterprise use to
quit their business. In this condition, they used to sell its business in an open market area on
specific price. It would help employers to analyse position and values of business in an actual
manner. It would lead them to generate innovative idea and turn it into new business concept.
Advantage:
It helps in evaluating value of such business in a particular area of market through which
may aid new owners to get attraction of existing and new customers easily.
Disadvantages:
For getting high competitive advantage, generally a company offers its products on low
rates. It impacts on profitability of whole business especially when selling price is much more
less than cost of production (Keough, 2015). In this condition, return on investment cannot be
achieved which affects overall performance of business.
CONCLUSION
It has been summarised from this report that planning for growth helps a company in
generating better outcomes. It aid firms to utilise resource and operating all activities in a proper
manner. In addition to this, a company can attain its high growth and profitability if it
implements digital technology in business operation. has huge impact on the growth of the
business operations.

REFERENCES
Books and Journals
Barbour, E. and Deakin, E.A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the
castle? A meta-analysis on contextual factors impacting the business planning–
performance relationship in small firms. Journal of Business Venturing. 25(1). pp.24-
40.
Burton, P., 2010. Growing pains: The challenges of planning for growth in South East
Queensland. Australian Planner. 47(3). pp.118-125.
Chapin, T.S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1). pp.5-15.
Christofakis, M. and Papadaskalopoulos, A., 2011. The Growth Poles Strategy in regional
planning: The recent experience of Greece. Theoretical and Empirical Researches in
Urban Management. 6(2). pp.5-20.
Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Grover, B.E., Bokalo, M. and Greenway, K.J., 2014. White spruce understory protection: From
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Hough, P. and et. al., 2010. The worker co-op sector in Canada: Success factors, and planning
for growth. Canadian Worker Cooperative Federation.
Keough, S.B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability growth
planning in early product-development stage. IEEE Transactions on Reliability. 65(2).
pp.769-781.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M.J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Pallagst, K., 2010. The planning research agenda: shrinking cities–a challenge for planning
cultures. Town Planning Review. 81(5). pp.i-vi.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Wu, F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
Ziari, I. And et. al., 2012. Integrated distribution systems planning to improve reliability under
load growth. IEEE transactions on Power Delivery. 27(2). pp.757-765.
Online:

Planning for growth. 2017. [Online]. Available Through:
<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>