Planning for Growth: A Review of Literature

This assignment involves a review of literature on planning for growth in different areas such as business, urban development, and resource management. It requires analyzing articles, journals, and books to identify key concepts, strategies, and challenges related to planning for growth. The selected sources cover topics like smart growth, growth poles strategy, life stage differences in family firms, understory protection, natural resource boomtowns, multi-objective reliability growth planning, and more. This literature review aims to provide an overview of the current state of knowledge on planning for growth and its applications across various sectors.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Evaluating growth opportunities and considerations within an organisational context....3
P2.Evaluate the opportunities for growth applying Ansoff's growth vector matrix...............6
TASK 2............................................................................................................................................8
P3.Assess potential sources of funding available to businesses and discuss benefits and
drawback of each source........................................................................................................8
TASK 3 .........................................................................................................................................11
P4. Design business plan for growth which include financial information and strategic
objectives for scaling up a business......................................................................................11
TASK 4 .........................................................................................................................................17
P5.Assess exit or succession options for a small business expanding the benefits and
drawback of each option.......................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
In the current business environment, growth is necessary for each and every organisation
to sustain in marketplace. It can be possible if a management of a company do effective planning
to attain organisation goal and objective (Barbour and Deakin, 2012). When an organisation
plan to grow or expand their business in national or international market, they have to plan
various things accordingly such as resources, funds, investors, products and so on. A company
can plan a growth in any type such as expanding business in national and international market,
introducing new technology, design new products and services and many more. An organisation
selected for this assignments is Guildford Tyre Company which is a private limited company
incorporated on 29 June 1976. There are various type of products and services they are offering
such as air conditioning, batteries, brakes, vehicles diagnostics, exhausts, repairing of
mechanical, mobile tyre fitting and wheel alignment. Topics covered in this assignment are
evaluation of growth opportunities, various methods by which organisation access funds and
development of business plan. Along-with this, it include different ways thorough which a small
business owner can exit their business.
TASK 1
P1.Evaluating growth opportunities and considerations within an organisational context
For small business enterprise, it is difficult to grab appropriate marketing and expanding
opportunities in effective manner (Brinckmann, Grichnik and Kapsa, 2010). In this case,
managements of small business have to develop and design effective business plans and strategy
so that they analysis market in effective manner and get benefits and advantages. Guildford Tyre
Company is a small scale business with approx 51 to 200 employees. It is necessary for them to
plan strategies in effective manner so that they grab market opportunities in effective manner.
For organisation growth and success there are certain factors which are explain below:-
Competitive advantages:-
It refers to the situation which allow an organisation or country to produce or
manufacture products and services of similar value at a low price in desirable fashion.
Guildford Tyre Company is a small scale company and it is duty of their manager to design
effective planning strategy so that they gain competitive advantage in effective manner. To get

higher competitive advantage, respective company follow some strategies which are explain
below:-
Competitive advantage as a foundation of growth
To get competitive advantage as a foundation of growth such as resource, capabilities and
core competences Guildford Tyre Company use Porter's Generic strategy model, which is
describe below:
For every business it is necessary to evaluate and analysis their market positions and
values in an industry. By which they can make changes and innovation easily in their planning
and strategies. Guildford Tyre Company use Porter's Generic strategy model to analysis market
and values in appropriate manner by using its four generic strategies- Cost leadership- It is one of the most important strategy which help a company to create
effective position in target market by offering products at low price (Burton, 2010).
Guildford Tyre Company use respective method to analysis market and their target
audience through which they able to know requirement and demand of product, where
respective company want to expand. In according to this company decide the price of
products which can be sale as low price but product and services is of good quality so
that they attract customers in new market. Differentiation leadership- In this products and services offer by company is of unique
feature which attract audience in huge numbers. When Guildford Tyre Company will
follow this, they design products and services which have unique feature and technology
which attract customers in new target market. If respective company do innovation in
design of tyres and other products which influence and encourage customers to purchase. Cost focus- In this company target niche market audience and offer them products and
service at lowest price (Chapin, 2012). In this, company analyse market and demand of
customers and then develop products which is low in price but fulfil need and demand of
audiences in effective manner. Guildford Tyre Company will conduct market analysis
and evaluation and then design their products according to requirement and offer that
product at low price. In this they focus on particular market and then design their
products accordingly.
 Differentiation focus- According to this a company design products and services with
unique feature and by taking consideration of a particular target market. It means

Guildford Tyre Company design products with unique and special feature to attract
particular target market audiences. According to this, respective company produce goods
according to demand and requirements of their focused target audiences.
By analysing all strategies the Guildford Tyre Company management decide to use or
select differentiation focus strategy in which they design products according to demand of their
focused target audience of France in which they are expanding. When company expand in new
market they able to attract more numbers of customers which help them in enhancing
profitability in more effective and appropriate manner.
Competitive advantage with opportunities for growth
To analysis the external environment and identify opportunities for Guildford Tyre
Company use PESTEL analysis (Christofakis and Papadaskalopoulos, 2011). It is use to
understand growth of market or decline, business position, potential and description for
operations. PESLET in context of respective company is explain below:- Political- When a company want to expand their business in international market they
have to evaluate respective company political factors, which includes policies, law, rules
and regulation, barriers for new entries and so on. When Guildford Tyre Company plan to
expand their business in France they conduct study about it and make plans according to
rules and regulations of respective country. This will help them in conducting their
business in smooth and appropriate manner. This help respective company in identifying
and grab opportunities in effective manner by under taking political evaluation. Economical- It refers to economical factor of a country which a company want to expand
it may be in domestic or international. So when Guildford Tyre Company plan to expand
their business in France they do analysis of respective company economical status by
which they able to know purchasing power of the customers. Through which they can
design strategies according to economic rate. By this respective company can analysis the
economical status of country and its populations and economic condition of France is
good which seems as opportunities for them. Social- It refers to the beliefs and values of populations and it include various factors
such as population growth, health concern, age distributions and many more (Eddleston
And et. al., 2013). When Guildford Tyre Company plan to expand business in respective
country they evaluate and analysis the society by which they able to understand about

buying trends of respective country. The social factor of France is seem as opportunities
for respective company because they audience of France appreciate innovative products. Technological- It refers to the technology advancement of the a company to expand their
business in another market. Guildford Tyre Company do research about technology
awareness of respective country and plan strategy according to it so that they attract more
customers with innovative products and service. The population of France like to use
innovative product so it can be opportunities for respective company because they do
innovation in their products on regular basis. Environmental- These are those factors which are related to the surrounding such as
weather, climate and climate change. These factors mainly affect tourism, farming and
insurance industry. Guildford Tyre Company conduct research about environmental
factors and plan their product process according to it so that process didn't hamper due to
climate change. The environment factors didn't affect manufacturing of tyres on large
basis which seems as opportunities of respective company.
 Legal- This factors include different laws which a company has to follow to conduct its
business operations and functions such as discrimination law, consumer law, antitrust
law, employment law and health and safety law (Grover, Bokalo and Greenway, 2014).
When Guildford Tyre Company plan to expand their business in France they must
understand respective company laws so that they conduct their business smoothly and
effectively. It can be come up as some barriers because legal factors of respective
company change according to time which may affect production process of Guildford
Tyre Company.
After evaluation of all the factors Guildford Tyre Company able to know that social and
technological factors is more effective and appropriate for them. By using these techniques
respective company able to make appropriate decision and plans which help them in attaining
goal and objective in appropriate manner.
P2.Evaluate the opportunities for growth applying Ansoff's growth vector matrix
Ansoff's growth vector matrix is a tool for strategical planning which provide guideline,
through which senior managers and executives design effective strategies for future growth and
expansion. It is a mostly used techniques by which a company identify various opportunities to
enhance their sales and profit. By it a company can evaluate there present positions of its

potential products and market. Guildford Tyre Company conduct evaluation through Ansoff's
growth vector matrix through which they able to know their current positions and make
strategies according. Description of Ansoff's growth vector matrix in context of respective
company is mentioned below:- Market penetration- It refers to the situation when a company want to grow in existing
market with existing products and services. It means they want to enhance there current
market scenario (Hough and et. al., 2010). This involve increment in company market
share in existing segmentation of market. This can be possible when a company enhance
their sell of products and services in existing market. It can be done by increasing
customers awareness about products, decrease price of products, increase promotional
activities and so on. The respective company can select this strategy when they want to
enhance their market share in existing marketplace with existing products. Market development- It is a situation when a company want to expand into new market
by using existing products and services. This strategy is mostly used and successful
because for new market respective product is new and unique. A company can use this
strategy successfully by including several factors such as innovate packaging according
to culture of country, identify new distribution channel, adopt different pricing policies
and so on. This strategy is use by Guildford Tyre Company when they want to expand in
new marketplace with existing products and services. This can be possible when a
company do different segmentation of customers, target foreign marketplace and many
more. Product development- It refers to the strategy when an organisation wants to introduce
new product and service in existing marketplace to achieve growth and expansions. This
concern about extending the ranges of products and services within present market of
company (Keough, 2015). This can be possible when various activities such as invest and
conduct research and development, introduce new innovative product, acquisition of
rights to manufacture someone else product and service and many more. The Guildford
Tyre Company can use this strategy when they want to introduce new product with some
innovation in the existing market place.
 Diversification- It represent the situations when a company want to expand in new
market with new products and services (Li., M. And Keyser2016). It is most risky

strategy because here both market and offerings are new, so there is a possibilities that it
can be not succeed in marketplace. In this situation has to do appropriate research so that
they able to develop appropriate product and strategy. Guildford Tyre Company can
select this strategy when they want to target new audiences of new country or
marketplace with new products and services. To make this possible they have to do
appropriate research and promotional activities so that they attract more audiences for
their products.
The Guildford Tyre Company can select market development strategy in which they
expand their business in France with their existing products and services. This is appropriate
strategy for respective company because it is less risky and successful strategy. By this company
able to introduce new ranges of products and able to analysis market of France. Along with this
they able to attract customers and enhance profitability.
TASK 2
P3.Assess potential sources of funding available to businesses and discuss benefits and drawback
of each source
Guildford Tyre Company Ltd. Which provides some services such as brakes, batteries,
wheel alignments and so on to their customers. With the purpose to enhance their growth and
success into marketplace (MacLeod, 2013). Sources of funds are referred as a means through
which company increase their operations and also the long term working capital. For starting any
types of businesses, funds are required. It is not possible for every entrepreneur to invest huge
amount for entering into market. Therefore, it is needed for them to evaluate overall funding
sources by which business can be set up and can grow. Some sources of finances are mentioned
below:
Bank loan: This is considered as the common sources of finance that are arranged for
SME's. It is the funds that company borrow from bank for definite period of time and also sum
fixed interest are charged on it. Guildford Tyre Company can raise funds by taking loan from
bank as it is secured and interest that is paid to bank is deductible in tax. This also help them to
expand their business successful.
Benefits:
 It generally have lower rate of interests as compare to another financial sources.

 Regular repayments of instalments increases the company credit scores.
Drawbacks:
 Borrower have to pay monthly instalments on time otherwise bank has rights to seize
their assets.
 Many strict legal formalities are need to be fulfil by people for taking bank loan.
Overdraft: This is facilitated when enterprises do their payments from business current
account exceeding the available cash balance (Mitchelmore and Rowley, 2013). This allows
businesses to acquire funds for short term. For Guildford Tyre Company, it is appropriate as
funds can be arranged rapidly and due to its flexible nature required amount can be withdrawn
any time.
Benefits:
 In this interest are charged only on overdrawn amount. It is flexible and can be arrange quickly.
Drawbacks:
 In this credit scores are damaged.
 In this bank can ask for the repayments of overdraft amounts anytime.
Crowding: These funds are raised through social media networks and online. In this
people ask to invest some amount of money into their business in exchange for some services or
equity (Moseley, 2013). With the help of this company can raise capital and invest in their
enterprise. For Guildford Tyre Company Ltd. it is not effective source of fund as there is high
risk and many legal formalities are involved.
Benefits:
 Successful crowdfunded projects can acquire good attention on social media, that assists
them grow. Pitching business by crowdfunding should be considered as a valuable marketing forms.
Drawbacks:
 It is considered as cost effective even though this includes many judicial formality and
complex process.
 In this degree of risk is high and uncertain for innovative ideas as it can be stolen in case
the firm do not have copyright.

Peer to peer lending: It is considered to be a financial innovation which connects
various borrowers those who are searching unsecured loans with investors and are ready to get
high returns (Pallagst, 2010). This allows individuals to lend and borrow certain amount of
money without any financial institutions. For Guildford Tyre Company Ltd. This source of
finance will not good option as it is unsecured and also not much helpful for expanding their
business.
Benefits:
 In this rates of interests are low as compare to traditional institutions of finance as well as
credit cards. In peer to peer funding, not any additional charged is applied on early repayment.
Drawbacks:
 Person who has not more credit score can not avail these sources of funds.
 In this tax free interests and large amounts of money are not available.
Angel finances: It is also known as the angel investor who facilitate finances generally
for start up businesses (Todes, 2012). This is for those businesses who are seeking for expansion
capital. It is appropriate for Guildford Tyre Company Ltd. As it did not ask for collateral as well
as security and also less risky.
Benefits:
 For this source of finance, collateral is not required.
 In this no monthly repayments and interest should be paid.
 It is less risky as compared to other debt financing.
Drawbacks:
 It has more control over the businesses.
 It takes longer time to find appropriate angel investors.
After evaluating all sources of financing, it is seems that Guildford Tyre Company Ltd.
should prefer bank loan as it is secured, its interest rate is low and increases the credit score if
monthly repayment is done on time. When they get appropriate amount of funds in less interest
rte they able to manufacture and offer products and services in attractive and effective manner.

TASK 3
P4. Design business plan for growth which include financial information and strategic objectives
for scaling up a business
To getting higher and successful, a company is required to develop appropriate goal and
objective for their business firm (Valler, Phelps and Wood, 2012). In a business organization,
there are several elements of planning process such as designing, monitoring, producing,
operating, controlling, implementing and distribution. By conducting these functions, a firm can
get competitive advantage easily and along-with this they can enhance their profitability as well.
For expansion of business, appropriate business plan is necessary which include information
related to organisation, policies, mission and vision and so on. Guildford Tyre Company is a
private limited company incorporated on 29 June 1976. There are various type of products and
services they are offering such as air conditioning, batteries, brakes and so on. They are going to
expand their business in France with products and services which they are offering. Business
plan of Guildford Tyre Company is mentioned below:-
Concept of business:-
This refers to the process which include informations related to company, products and
service, unique selling options, mission and vision, target area and audiences and so on. It may
also involves information related to new products or innovative products. Business concept of
Guildford Tyre Company is describe below-
 Organization's products and services: Guildford Tyre Company is small scale
enterprise in Guildford, united kingdom. This company provide products related to
vehicles such as air conditioning, batteries, brakes, vehicle diagnostics, exhausts, wheels
alignment, mobile tyre fitting and so on. All products are designed on basis of consumers
demand and needs. The target audience of respective company are other auto-mobile
companies who manufacture their car products.
 Mission and Vision of firm: Guildford Tyre Company provide products related to
vehicles and other things according to customers need. Mission of respective company is
develop and maintain market image by providing quality products and enhance
profitability of company. Vision of respective company is to provide quality innovative
products and services to their customers and fulfil their needs and demand in appropriate
manner.

 Operational strategy: Guildford Tyre Company select customer driven strategy as an
operational strategy. In which they m,manufacture or design products and services
according to the demand and ned of customers. This is most effective operational strategy
to enhance marketplace share and profitability.
 Unique selling option: Guildford Tyre Company use private equity recapitalization as
their selling options. In this a company sell their particular portion of business to another
company for a time duration, it may of up to 3 to 5 years. It is a legal process and both
companies have to go through the agreement process. Such as respective company sell
their 80 % portion to another car manufacturing company. And then products of
Guildford Tyre Company is purchased by that manufacturing company.
Strategic objective: To Introduce existing business services in new market within 2 month in
order to maximise business sales approx. 30% more.
The Industry/ market analysis:-
For Guildford Tyre Company, it is required to analysis and evaluate effectiveness of their
products and services so that it fulfil the need and demand of customers as well as marketplace
(Wu, 2015). For this respective company conduct SWOT analysis, which help them in
determining strength and weaknesses of company (Ziari And et. al., 2012). Along-with this they
able to know about there opportunities and threats. SWOT of Guildford Tyre Company is
mentioned below:-
Strength Weakness
 The respective company provide
quality products at affordable price.
 They have strong Research and
development department.
 Employees are loyal and productive
and ready to acquire change.
 The respective company has loyal
customers which is big advantage for
them.
 Features of air conditioning is not to
advance as compare to competitive
company.
 Distribution channel is not effective.

Opportunities Threats
 Growing economy
 Use new technology and innovation in
products designing.
 Expand business in foreign countries.
 Introduce products related to motor
sports vehicles.
 Major threat for respective company is
cheap import of tyres and other car
products.
 Their are huge number of competitions
in respective industry.
Financial plan
Pre launch cash budget
Cash Flow budget
Particulars Feb Mar Apr May June Ju
Cash inflows
Investment
Credit sales 3000 3000 4500 1500 3500
Total inflows 3000 3000 4500 1500 3500
Cash outflows
Fixed : Equipment’s 2500 1500 2000 1200 1500
Variable : Direct material 300 200 300 150 500
Total outflows 2800 1700 2300 1350 2000
Net cash flow 200 1300 2200 150 1500
Opening balance 7700 7900 9200 11400 11500
closing balance 7900 9200 11400 11550 13000
August September October November December Jan

1000 2000 800 1200 1500 3600
1000 2000 800 1200 1500 3600
200 300 100 600 300 2000
400 500 100 100 400 300
600 800 200 700 700 2300
400 1200 600 500 800 1300
16100 16500 17700 18300 18800 19600
16500 17700 18300 18800 19600 20900
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250
21100 22400 24600 24750 26250 19350

Post launch cash budget
Particulars Jan Feb Mar Apr
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000
Total inflows 9200 2000 7500 3000
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500
Variable : Direct material 350 300 250 150
Total outflows 2850 1500 1750 2650
Net cash flow 6350 500 5750 350
Opening balance 0 6350 5850 11600
closing balance 6350 5850 11600 11950
May June July August September October November December
5000 6500 1200 3200 1500 8200 1250 3210
5000 6500 1200 3200 1500 8200 1250 3210
1100 1500 1200 600 500 500 1200 700
100 500 500 250 450 250 1300 500
1200 2000 1700 850 950 750 2500 1200
3800 4500 -500 2350 550 7450 -1250 2010
11950 15750 20250 19750 22100 22650 30100 28850

15750 20250 19750 22100 22650 30100 28850 30860
Jan Feb Mar Apr May June July
1200 5000 2500 4500 1500 3500 4200
1200 5000 2500 4500 1500 3500 4200
2000 2500 1500 2000 1500 2000 200
300 300 200 250 360 250 500
2300 2800 1700 2250 1860 2250 700
-1100 2200 800 2250 -360 1250 3500
30860 32160 32360 33660 35860 36010 37510
29760 34360 33160 35910 35500 37260 41010
Interpretation: According to the financial plan of the company the credit sales of the
company increased day by day which may be higher risk for the regarding bed debts. In the end
of some of the months its net cash flow goes in negative or can say that excess outflow of cash
which also not much beneficial for the respective organization so that the business firm have to
take suitable action or implement appropriate strategy for rectifying the results.
TASK 4
P5.Assess exit or succession options for a small business expanding the benefits and drawback of
each option
When an organisation is not operating in effective manner and they are facing major
problems in their operations and functions form previous few years (Ziari And et. al., 2012).
Then in this case company can either close or dissolve the company operations or merge with

some other company to succeed in business operations. In the case of Guildford Tyre Company
they are facing problems in their operations, production process, quality, employees behaviours
and so on. So they decide to select succession option to survive in the marketplace. For that they
conduct evaluation process of various succession options, which are describe below:-
 Merger:- In this situation two existing company come together under legal agreement
and form a new organisation or combine their operations (Barbour and Deakin, 2012). It
is beneficial for a company because by it they can gain profitability and able to expand
their business in other market. Such as respective company merge their operations with
some another company, in this situation Guildford Tyre manufacture different car
products and another company fix those product in their manufacture cars. Their are both
advantage or disadvantage of merger which is explain below-
Advantage-
 It help company to operate their functions and operations at bigger level.
 When two company combinationally conducts their functions they can reduce and
eliminate their competitions form marketplace.
 By merger goodwill and market shares of both the companies will increase.
Disadvantage-
 Merger leads to job loss of both companies employees. When a small company merge with big one, there is occurrence of difference on the basis
of skills and ability of employees. Which leads to loss in employees productivity
 Joint Venture:- It is a situation in which a two business parties decide to pool their
resources to complete a specific project or task (Brinckmann, Grichnik and Kapsa, 2010).
These all process are done by consideration of legal law and rules. Such as let respective
company and another company decide to share their resources for a particular product
and services. By it both the company can give their best efforts to achieve their combine
goal and objective. The joint venture of companies is temporary basis and both parties
share risk and cost. There are also various advantages and disadvantage of joint venture,
which are explain below:-
Advantage-
 It provide both company an opportunity to gain new capabilities and expertise.
 In it risk and cost can be share in both partners.

 It help company various ways such as enter into new related business, new geographic
market and introduce new technology.
Disadvantage-
 To build right relations with partners, it take time and efforts and during this sometime
they face various problems (Burton, 2010).
 Sometime creating joint venture is more expensive than operating business alone.
The Guildford Tyre Company select merger for their succession option because it is
more appropriate for them. By it they can also able to operate their operational and functions at
international market. Which help respective company in manufacturing and servicing their
products and services in effective and appropriate manner. Along with this they able to enhance
their profitability ratio and market shares in appropriate manner.
CONCLUSION
From the above discussed topic it can be conclude that for analysing competitive
advantage as a foundation of growth a company can conduct Porter's generic strategy model and
to analysis to its opportunities and growth of expansion in national or international market they
can use PESTEL analysis. When an organisation plan to expand in foreign market they conduct
evaluation and analysis by Ansoff's growth vectors matrix through which they able to know
about opportunities of growth in international market. Financial resource is one of the major
resource which is required to expand business, for this company evaluate various sources of
findings such as bank loan, financial institutions and so on. After that they select appropriate one
for them which leads to expanding of business. To attract investors and customers company have
to design business plan which include information regarding financial sources and strategies.
Along with this it include company's mission and vision, pricing strategy, selling strategy, their
target audiences and market and so on. When a company facing major problems and issues in
their operations, then there is two options in front of them that is exit or succession. In exit they
can chose liquidation process and for succession they can select merger, joint venture and so on.

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.