Planning for Growth

Planning for Growth INTRODUCTION 1 TASK 11 P 1 Key considerations for evaluating growth opportunities 1 P 2 Evaluation of the opportunities for growth by applying Ansoff’s growth vector matrix 5 TASK 26 P 3 Possible sources of funding available to businesses and its advantages and disadvantages6 TASK 38 P 4 Business plan for growth that includes financial information and strategic objectives8 TASK 49 P 5 Hardware Exit or succession options for a small business along with its benefits and drawbacks 9 CONCLUSION 10 REFERENCE

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Key considerations for evaluating growth opportunities.................................................1
P 2 Evaluation of the opportunities for growth by applying Ansoff’s growth vector matrix 5
TASK 2............................................................................................................................................6
P 3 Possible sources of funding available to businesses and its advantages and disadvantages.6
TASK 3............................................................................................................................................8
P 4 Business plan for growth that includes financial information and strategic objectives . .8
TASK 4............................................................................................................................................9
P 5 Exit or succession options for a small business along with its benefits and drawbacks. .9
CONCLUSION..............................................................................................................................10
REFERENCES ............................................................................................................................11

INTRODUCTION
Planning is a fundamental concept which is used in each and every sector for
accomplishing any task. It can be simply defined as a process of thinking regarding some
activities that is needed to reach an ambition (Lo and Beunen, 2013). The main motive of
creating a plan is to achieve growth and development in particular sector. Therefore, it can be
said that planning is very import factor in the world of corporate. In- fact, it is considered as
pillar of an organisation since without generating proper plan, a company can not attain its aims
& objectives. The current report is designed for elaborating the importance of planning for
attaining growth. In this context, an enterprise named ' JS Hardware Suppliers' is taken which is
dealing in mechanical industry. They are supplying different raw materials for manufacturing
railway station platform tractors, forklift trucks, etc. Recently, the owner of the organisation is
joining with 'Provision of Mechanical Handling Equipment'.
TASK 1
P 1 Key considerations for evaluating growth opportunities
Every small and medium sized enterprise requires opportunity of growth in order to enlarge its
commercial actions drastically. JS Hardware Suppliers is chosen for the present case study i.e.
dealing in the mechanical and hardware industry. The organisation deliver distinct manufacturing
raw materials forklift trucks, platform tractors etc. The organisation is emerging in the UK
market through opting through supplying value-added services to their clients. The firm is also
wishing as well as attempting to garb golden chances for expanding their business and gaining
huge sum of profits. In order to catch such opportunities, this is vital to concentrate on aspects
associated with measuring growth level and gaining chance of development. These aspects can
be better understand by examining below mentioned points :
Competitive advantages : This refers to the state of achieving advantage over rivals. It
is acquired by manufacturing quality based products and services and offering the same at
minimum cost to expected customers (van Assche, 2013). In addition to this, companies should
also deliver greater benefits as well as such kind of services that justifies expensiveness. They
ought to add more values in their merchandises so that people get attracted towards goods or
facilities provided by them in comparison to other competitors. There are various strategies
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which is commonly adopted for seeking competitive benefits. Some of those are described
below:
Porter's Generic Strategies : Porter has recommanded four 'generic' business schemes
that can be applied for gaining high level of rivalries advantages. These are following :
 Cost leadership : According to this strategy, firms should produce inexpensive products
& services in order to lead specific industry (Porter’s Generic Strategies, 2017). This has
been seen that most of the consumers generally prefer low cost merchandises along with
better quality or high standard. Thus, for seeking attention of large number of users,
ventures ought to develop products of minimum budgets so that person falling under each
section of society i.e. rich or poor could purchase that easily. For instance: JS Hardware
Supplier can provide their service at lowest cost to increase their demand in marketplace.
This will lead towards gaining higher growth and develop the company in the large
market place. They are providing high quality based products at affordable rate which
assist in attracting national as well as international customers.
 Differentiation Leadership : This strategy is usually utilized for attaining large
commercial targets so as to gain highest level of competitive advantage. Herein,
organisation choose a criteria that is being used by purchasers within marketplace and
position or maintain its business for meeting such criteria (Wood, 2012). It is to be noted
that the term differentiation is linked with charging a higher cost for manufactured
products. This is mostly done by creating extra value added merchandises and delivering
the same to customers. Enterprisers used to design most expensive goods and services in
order to sell the similar at premium prices. They can give justification of offering
expensive goods by showing their extremely high manufacturing costs. For e.g. JS
Hardware Supplier can differentiate their services on the grounds of user to meet specific
outcome. If company produce unique type of hardware product so they can grab the
opportunities for gaining high profit and income. It can help in attracting large number of
customers towards company products and services.
 Cost Focus : According to this ventures should concentrate or pay attention mainly of
costing factor. By offering products at affordable prices, owners of business can build
stronger customer base in comparability to their potential rivals. Hence, it is clear that for
achieving competitive benefits; firms should deliver merchandises at minimum prices.
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Example, JS Hardware Supplier, by focusing over cost of product can attain business
goals set by company. The company gain growth when they are focus on cost strategy in
which they required to make affordable price that are suitable for all the buyers.
 Differentiation Focus : By applying this plan of action, company can establish a strong
position in particular niche market segment. The main reason of doing the same is to
build a unique brand image amongst buyers. In this process, firms should apply
segmentations methodology for targeting specific type of users (Phelps, 2012). It will
definitely help in acquiring competitive advantages and earning high amount of revenues.
For e.g., JS Hardware Supplier can focus over particular niche of product adding distinct
value in product to thrive in competitive edge. They are producing unique design of
products which are required by buyers and they also offer such type of hardware items in
the market areas. The firm can easily get their customers if they concentrate on
developing unique products.
From observing above based strategies, this is suggested that 'JS Hardware Suppliers'
ought to implement 'Cost Leadership' scheme at their workstation. As this association is dealing
with mechanical sector, they should create raw materials like tyres, engines parts, motors, fuels,
oils, lubricating agents, etc. at lower prices in order to supply the similar products or machineries
at affordable rates to customers. By doing so, they can acquire highest level of competitive
benefits.
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(Source : Porter’s Generic Strategies, 2017)
PESTLE ANALYSIS : This is considered as an important tool for analysing the growth
of a business. Herein, impacts of external factors existing in market environment is evaluated for
finding the current position of organisation within particular industry. The discussion on
influences of various business factors are presented below :
Political factor- This involves effect of governmental affairs upon the commercial
activities of an organisation. In context to mechanical industry, some of the policies made by
government is giving negative impacts on working and growth of whole enterprise (Valler,
2012). For example, imposition of high level taxes on trading of machineries parts. Due to this,
huge amount of money existing in 'JS Hardware Suppliers' is getting expended in very small
interval of time. But the UK Govt. is providing subsides to small and micro size organisations
which is beneficial for JS Hardware Supplier as this can help in managing sources of funds in
lower interest rates and can aid in prosper in the competitive market (Wood, 2012).
Economical factor : This is related to the economic conditions of a place whereby ventures
are operating their businesses. If rate of inflation associated with economy of country will rise,
then it would definitely antagonistically affect on the firm's pricing policies. Thus, consequently
purchasing capabilities of buyers along with supply models of JS Hardware Suppliers will also
get impacted. After Brexit, GDP rate of UK has increased which is leading to upliftment in
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Illustration 1: Porter’s Generic Strategies

individual's per income capita. This is a growth opportunity for JS Hardware Supplier as this has
increased purchasing power of civilians of country.
Social factor : Such factors comprises of traditional trends, taste of civilians,
demographics, living style, population analytics, etc. These all affects on performance as well as
growth nature. For example, in a country like United Kingdom, purchasing trends of buyers
mainly concerns with mechanical field as at those places people prefer luxurious facilities in
context to transportation. Thus, demand of machineries affiliated with trains, trucks & many
more is rising day on day. This is catering large number of opportunities for growth and
expansion of those small & medium sized enterprises which are involved in manufacturing of
raw materials associated with vehicles, trains, etc. Hence, it can be depicted that societal factors
are influencing positively on development scale of JS Hardware Suppliers and assisting them in
enlarging their commerce efficaciously as well as effectively.
Technological factor: This type of component is pertaining to innovations in technological
area which might effect on operations of entire mechanical industry in optimistic or antagonistic
way. This is referring to automation, technological cognition and research & development in
similar arena (Todes, 2012). Hence, Introduction of modern techniques for creating machines is
impacting positively on working of JS Hardware Suppliers. Workers are now become able to
develop innovation parts of machines by utilising existing digital technologies. In additional to
this, productivity of organisation is also increasing in drastic manner that ultimately helps in
raising profitability level. Technology is getting vast each and every day i.e. leading to numerous
pros and cons to an organisation. JS Hardware Supplier has been rendered growth opportunities
by the advancement of technologies as this is leading to low production expenditure and high
revenues with more value-added finished goods (Kötter, 2012).
Environmental factor : This includes influences of surrounding whereby company exists.
It is also effecting on performance of JS Hardware Suppliers. For instance, sudden change in
climatic conditions, occurrence of natural disasters such as flood, drought, cyclone, excessive
rain, cold or summer, etc. acts as obstructers and generate hindrances in the way of achievement
and success. Thus, affect negatively on maturation rate of referred corporation. But JS Hardware
Supplier make optimisation of lean production approach to produce hardware products in regard
of reducing the waste amount and re-cycle most able resources. Hence, as people have become
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more environment friendly, this is beneficial for organisation as the company can thrive in such
positive environment of market positively in more rapid way.
Legal factor: Legitimate bodies of UK used to form rules and regulations for all those
companies that are running their commerce’s in United Kingdom. Therefore, they are leading
great impacts on development of firms like JS Hardware Suppliers. For example, Health and
Safety Act 2010 is settled by government for providing safer working environment to employees.
It is to be noted that if any of the association will go against principles made by them, they would
be treated as guilty and punishment may be given to those firms which proved to be a culprit.
This is a market challenges for hardware industry as organisations has been restrained by Govt.
to perform certain operations that directly and indirectly violates these codes of conducts and
legislations. Hence, this is proven as one of the market obligation for JS Hardware Supplier.
(Haase, 2012)
P2 Evaluation of the opportunities for growth by applying Ansoff’s growth vector matrix
Ansoff's Matrix is one of the famous strategy which is adopted by most of organisations
for attaining maturation. Actually, this is known as growth vector matrix because it gives
suggestion about how a business can be improved and expanded in minimum period of time.
This mainly consist of four matrices representing different plan of action. These are explained
below :
 Market penetration: As per this scheme, company should try to acquire growth by
existed merchandises and services within present marketplace. The primary motto of
implementing this strategy is to enhance market sharing ability.
 Product development: When any firm wishes to enlarge itself in an existing market
location, then they should use the idea of serving new goods or services to targeted
groups. This can be applied by manufacturing innovative products and catering that
lower prices to new users.
 Market development: Hereby, an enterprise commonly used to expand their business
in other market segments (Kötter, 2012). Entrepreneurs can take use of current goods
and services for seeking attention of newer customer base. Promotional activities should
be applied by ventures for creating awareness amongst civilians about their deliverables.
 Diversification: By executing this plan, an organisation can magnify itself by
diversifying into some new commerce’s. This is mostly accomplished by designing new
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trade goods and services for totally new market segment. It is treated as very risky since
an association will go to a different path by leaving the existing one.
By examining above mentioned techniques of carrying on strategical management, JS
Hardware Suppliers is recommended to adopt scheme of 'Product Development' at their work
premises since it will surely help them in attaining desired level of growth and maturation. For
implementing similar strategy, referred organisation ought to reconstruct raw materials affiliated
with mechanical industry. For reaching their predetermined goals and objectives, CEO of this
corporation can use the concepts of digital technologies by implying re- engineering procedures.
TASK 2
P3 Possible sources of funding available to businesses and its advantages and disadvantages
JS Hardware Suppliers is a small company which is aiming to increase its size by
attaining proper growth in upcoming days. For this, they are seeking for different sources of
funding in order to reach their target. Funding is treated as an indispensable assets of an
enterprise which is used for running businesses appropriately. In simple words, it can be depicted
as an adequate sum of money that is utilised for competing any task such as purchasing raw
materials, arranging training & preparation sessions for newly hired employees, giving wages to
personnel’s, implementing particular strategy, performing promotional actions and many more
works.
Therefore, it can be stated that without having proper amount of financial resources or
funds, a single task could not be performed within working sites. Hence, there is instant necessity
of acquiring satisfactory funding for JS Hardware Suppliers (van Assche, 2013). They are
creating various kinds of merchandises related to mechanical sector such as parts of motors,
lubricants, engines, tyres, etc. In order to gain growth and enlargement of business, owner of this
venture has involved themselves into a bid for making a concord with 'Provision of Mechanical
Handling Equipment'. This is done by analysing the demand of raw material or resources in
industry of railway – station platforms tractors, forklift trucks and work trucks. This has noticed
that the amount of bid for that contract is £30k to £37k. On the other hand, JS Hardware
Suppliers is having only £20k. Thus, for bidding on this agreement, firm basically requires £10k
more. For making bid, they decided to take borrow from few important funds from any external
or internal sources. These are nothing but the sources of achieving monetary values. The
potential sources of funding accessible to this commerce are described below :
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Peer - to - peer lending
It is a methodology related to debt financing which is enabling entrepreneurs for
borrowing as well as lending revenues. The beauty of this technique is that for an intermediator,
there is no requirement of any official financial institution (Haase, 2012). In - fact this is a
unique practice of loaning money from an individual or from other businesses via taking use of
online services. Thus, JS Hardware Suppliers can implement similar method for acquiring
required amount of currencies. This helps them a lot in running their business activities and
meeting each need of contracts.
Advantages :
 In context to investors, it gives extremely high returns that is around 11. 7 % up to 35 %
per annum.
 Accessibility to trustworthy creditors. Business owners can acquire loan at much faster rate since approval as well as processing
procedure of this methodology is very fast.
Drawbacks :
 Sometimes, there is a risk exist associated with the losing of revenues.
 Diversification is important in this case.
 Since online services is used, thus risk related to hacking and other internet crimes get
increases.
Loan from banks
People can also take loans from bank if they are not having adequate sum of money. This
is quite beneficial for small and medium sized ventures (Schetke, 2012). In existed case, JS
Hardware Suppliers can knock the doors of banks for attaining required funds.
Benefits :
 This is a reliable source of funding.
 Reduction in internet crimes like hacking, leaking of confidential data, fraud, etc. Accessibility to high amount of revenues according to the wish of loan takers.
Disadvantages :
 Quite lengthy since there is a long procedure of taking loans from particular bank.
 Consumes lot of precious time of entrepreneurs.
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 Requirement of guarantors if amount of requested loan is high.
TASK 3
P 4 Business plan for growth that includes financial information and strategic objectives
Business plan comprised of all activities which is going to be performed by specific
business association in order to achieve pre - designed aims and objectives. An effective
commercial scheme for JS Hardware Suppliers is presented below :
Overview of organisation :
JS Hardware Suppliers is a small firm established in UK which is offering raw materials
involved in mechanical industry. They are forming engines parts, motors, lubricating substances,
tyres, etc. for earning desired income and profit. This was developed in 2015 and are working on
different commercial contracts of their sector.
Aims and objectives of venture :
They are wishing to crack more and more agreements existed in UK and other nation also
for making business growth (Moseley, 2013). They want to establish a strong position in the
market of mechanical arena and are trying to make relationship with reputed and trustable
contractors.
Mission and Vision :
Mission statement : JS Hardware Suppliers wishes to satisfy the contractors by giving best
quality products and services.
Vision statement : Organisation wants to rule in the world of mechanical industry by serving to
all contractors in UK.
Swot analysis :
This is a crucial method of determining about current position of corporation at marketplace. The
discussion is following :
Strength :
 Skilled and talented employees are working for creating goods and services. Stronger and healthy relation is being maintained from consumers.
Weaknesses :
 Lack of few resources like funding. Having weak positioning in marketplace in comparison to rivals.
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Threats :
 Large number of competitors existing in UK. Occurrence of sudden natural disasters.
Opportunities :
 They can tie-up with various other firms for attaining growth and improvement.
 Company can introduce modern tools and techniques for creating innovative products.
Financial information :
Particulars Expenditure in percentage
Purchasing of raw materials 40 %
Advertisement 30 %
Training and development
sessions
53 %
Implementation of digital
technology
45 %
Manufacturing 32 %
Surveys 40 %
CASH FLOW BUDGET
Particulars Jan Feb Mar Apr May June July Aug
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500 1200 3200
Total inflows 9200 2000 7500 3000 5000 6500 1200 3200
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500 1200 600
Variable : Direct
material 350 300 250 150 100 500 500 250
Total outflows 2850 1500 1750 2650 1200 2000 1700 850
Net cash flow 6350 500 5750 350 3800 4500 -500 2350
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Opening balance 0 6350 5850 11600 11950 15750 20250 19750
closing balance 6350 5850 11600 11950 15750 20250 19750 22100
Sep Oct Nov Dec
1500 8200 1250 3210
1500 8200 1250 3210
500 500 1200 700
450 250 1300 500
950 750 2500 1200
550 7450 -1250 2010
22100 22650 30100 28850
22650 30100 28850 30860
Jan F eb Mar Ap ril May Ju n e Ju ly Au g S ep Oc t Nov D ec
0
5 0 0 0
1 0 0 0 0
1 5 0 0 0
2 0 0 0 0
2 5 0 0 0
3 0 0 0 0
3 5 0 0 0
6 3 5 0 5 8 5 0
1 1 6 0 0 1 1 9 5 0
1 5 7 5 0
2 0 2 5 0 1 9 7 5 0 2 2 1 0 0 2 2 6 5 0
3 0 1 0 0 2 8 8 5 0 3 0 8 6 0
C a s h fl o w s ta te m e n t fo r 1 2 m o n th s
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TASK 4
P 5 Exit or succession options for a small business along with its benefits and drawbacks
There are various exist options for SMEs such as liquidation, selling of the firms to
managers or employees, etc. These are explained below :
Liquidation :
This is the procedure of bringing a commerce to an end by sharing existed assets to
authorised claimants (MacLeod, 2013). When JS Hardware Suppliers is not able to return the
loans to its creditors, investors or stakeholders, banks, etc. then the process of liquidation will
applied. It comprises of certain benefits as well as limitations. These are following :
Advantages :
 This stops or eliminate a conflictual situation in an organised and legal manner.
 Workers can easily claim for their unpaid wages, notice pay, etc. If owners of company is under pressure of creditors or investors, they can close their
businesses by distributing presented assets to claimers.
Draw backs :
 Each and every thing which is owned by a limited venture got sold for paying loans.
 Dream of entrepreneurs get completely destroyed.
Selling of organisation to employers or workers :
When any enterpriser is unable to pay back the amounts taken from particular person or
bank, then he or she can sold their entire association to the interested staff members and
mangers. JS Hardware Suppliers can utilise similar choice for exiting from their business by
selling whole firm to expected employees or managers (Levy, 2016). This is proved to be
beneficial as owners of company can reduce the mental pressure as well as stress level and lead a
happy life afterwards. On the other hand, negative side of this option is that an individual get
complete broken since its dream will come to an end by their own hand.
Succession options :
This is the method of giving appraisals to an individual who are working for the welfare
of enterprise (Galland, 2012). JS Hardware Suppliers can apply this by increasing the value of
their personnels. For example, they could recruit qualified worker as a manager from the existed
workforces by observing their past performances at work premises. This is useful for corporation
since there is no need of travelling here and there for finding suitable employers. Thus, save a lot
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of time and money as well. On the other hand, by executing this process, company may suffer
loss in terms of creativity and innovation as already employed workers might lack in creative
minds.
CONCLUSION
By examining above report, it can be summarised that creation of plans before
implementing anything is important since it reduces the overall quantity of risk or failures.
Planning is generally done for achieving success and growth in corporate world. Each venture
should make appropriate plan for earning profits and doing development. Various exit or
succession options has been described in this report. Besides this, in this assignment, an effective
business plan is designed for attaining maturation. In this assignment, business plan has been
conducted of the organisation which includes overview, mission, vision, SWOT analysis, aims
and objectives and financial information. This will assist in identifying all the current data and
information regarding firm in better manner. There are various sources funds are required for
company which help them in smoothly running of business operations and its functions.
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REFERENCES
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pp.70-86.
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University of Texas Press.
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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.
Galland, D., 2012. Is regional planning dead or just coping? The transformation of a state
sociospatial project into growth-oriented strategies. Environment and Planning C:
Government and Policy. 30(3). pp.536-552.
Levy, J. M., 2016. Contemporary urban planning. Taylor & Francis.
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.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
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.
van Assche, K., Lo, M. C. and Beunen, R., 2013. A perspective on planning, smart growth and
place branding. In International Place Branding Yearbook 2012 (pp. 69-77). Palgrave
Macmillan UK.
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Online
Porter’s Generic Strategies, 2017. [Online]. Available through<http://www.free-management-
ebooks.com/news/porters-generic-strategies/>.
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