The Role of Planning in Business Growth

This document provides a comprehensive analysis of the role of planning in business growth. It delves into different aspects of planning, including urban planning, rural planning, and management strategies. The assignment covers a range of topics, from the importance of amenity in metropolitan growth to the first mover advantage of solar module players in Indonesia. It also examines the influence of planning consultants on local comprehensive plans and the challenges faced by planners in Fort McMurray, Alberta, during a natural resource boom. Furthermore, it discusses how planning can lead to compact urban forms and the experiences of planners in the real world.

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysing consideration for evaluating growth opportunity within Unicorn grocery and
impact on digital technology..................................................................................................1
P2 Evaluating the opportunities for growth applying Ansoff's growth vector matrix for
Unicorn grocery......................................................................................................................3
TASK 2............................................................................................................................................5
P3 Assessing the source of funds available to Unicorn and also their benefits and drawbacks. 5
TASK 3............................................................................................................................................7
P4 Designing a business plan for growth includes financial information and strategic
objectives for scaling up Unicorn grocery..............................................................................7
TASK 4............................................................................................................................................8
P5 Assessing the exit or succession options for Unicorn and explaining the benefits and
drawbacks of both...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In this era of development planning is very essential as without making any plan for
the business enterprise about the financial need or the sales or anything organisation cannot
growth with the potential. Planning for the growth is that strategic activity which assist the
management to evaluate the growth and the amount of revenue generated. The present report
is about Unicorn grocery which evaluates the growth opportunities in the given market and
the impact of technology on its products. Ansoff's matrix is used to analysis how Unicorn
grocery can introduce new product in existing market, existing product in existing market,
new product in new market and existing product in new market.
TASK 1
P1 Analysing consideration for evaluating growth opportunity within Unicorn grocery
and impact on digital technology.
Making the business plan is the most essential part of organisation and for its growth
as well without which the organisation cannot sustain. Business plan are also reviewed
regularly as per the part and plan of business to see whether it has achieved the target. To
keep reviewing the current performance on continues basis and identifying the strategies for
its growth (Bunker, 2015). Unicorn grocery is Manchester's cooperative grocery store which
is controlled democratically by owners and sells fresh and processed foods and drinks.
Unicorn is largest and independent food groceries in UK with an annual turnover of around
£7 million and also the winner of Best Local Food Retailer in 2008 by BBC radio. For the
evaluation of growth and the strategic planning Unicorn firstly need to set goal what it need
to achieve in long run then it considers the growth opportunities in market. As a grocery store
and dealing in a number of products Unicorn can grow faster in the market by just maintain
the loyal customers and easily identify the growth opportunities. Unicorn grocery mainly
focus on organic, regional and fairly traded products and to provide the best quality product
to its customers. There are many factors which Unicorn grocery considers while evaluating
the business growth opportunities and how much practical these factors are in the growth.
Infrastructure- there should be good and easy approach to infrastructure like roads,
water, electricity and telecommunication services so that they all are not adding up in
the operating cost of Unicorn grocery (Daubenfeld,2014). If these operating costs will
be minimum then surely the profits of firm would be maximum. Infrastructure also
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include the building in which the grocery store is running should be best suited for the
employees as well as the customers coming to purchase.
Price structures- the main consideration is that of the value of the goods and service
in terms of money available in Unicorn grocery. If the price of the goods are very
affordable for customers then they will be buying the goods from Unicorn grocery
only. As the goods which it sells are very much subjected to constant inflation in this
situation the price structure will change.
Competition and competitive advantage- if there are many grocery stores operating
in the market with the same kinds of product then that would be a threat to business.
Moreover, if the said competition is in a healthy way then it will go along with the
way in controlling price of goods offered for the public. But if competition level is not
high Unicorn must consider that as an opportunity to get reasonable market share.
Personnel, training and management- in Unicorn grocery it is very vital to analysis
the amount and quality of personal required in the sustainable growth and also to train
and develop them (Frank and Reiss, 2014). Unicorn grocery should evaluate the cost
of hiring, ability of personal and training and development of human resource. If the
management is very efficient in Unicorn then the business will certainly succeed.
Market for goods and services- Unicorn grocery should analyse the potential and
actual market for its goods and services that it would be selling. The market
opportunities should also be defined and must be kept in consideration while planning
for growth of Unicorn grocery.
In today's world where technology has evolved very much that it has been used in
every field of work. Advancement in technology and digital market is there in every
market as without this business can not grow or even start. Unicorn grocery is also
using the digital technology in its development and growth of business. Digital
technology is simply the use of online platform for marketing and advertising business
on a global market which can be accessed from anywhere.
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P2 Evaluating the opportunities for growth applying Ansoff's growth vector matrix for
Unicorn grocery.
Illustration 1: Ansoff's growth vector matrix
[Source: Ansoff's growth vector matrix, 2017]
Ansoff's matrix is a tool of planning which help executives, senior management
and marketing team to form the future strategic planning for growth. This matrix is
commonly known as the product or market grid or matrix which have the 4 options for
growth which match the existing and new products with existing and new markets. It
lay down the risk which a particular growth strategy is exposed to as moving from one
grid to another (Hulbert, Gilmore and Carson, 2013.). Unicorn grocery also follow
Ansoff's matrix which help it in the planning of the growth of grocery in long run
divided into new and existing market.
 Market penetration- it means selling more of same products to the existing
customers in the existing markets. Market penetration help Unicorn grocery to
find new and more products to the same customers and existing markets which
increase customers loyalty and grow customer lifetimes values. Market
penetration tries to increase the market share and profits of Unicorn grocery in
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current market scenario. Market penetration can be done by decrease in price,
increased in promotion and distribution of products and acquiring or merger of
a rival firm in the same market.
 Market development- this means growing of the market with the same
existing products. Market development can be done by finding new customers
like in different geographic location which can be a new country or a new
region as well. Unicorn grocery if is selling soup for babies can also now sell
the soup with the same brand but for adults but only if the existing baby soup is
profitable for it (Keough, 2015). Development of market is done either by
different segments of customers or selling of the products in new regions or
countries. Market development is successful in the situation where Unicorn is
having a unique product and also if in existing market the product is profitable.
 Product development- it means bringing new products in the existing market
where the company is operating and earning profits. Unicorn by selling the new
products to the existing customers can gain more from the same customers only
and no need to go in the new markets. Product development is mainly done by
the customers valuable feedback or with the help of market research only.
Product development can also be the factor for growth opportunities for
Unicorn grocery which can make it more successful.
 Diversification- this is a very different and totally new thing for company this
includes new market and new products. Unicorn by launching whole new
product in the whole new market can also grow its market opportunities.
Diversification is the riskiest strategy of market growth as it involves a lot of
money, time and technology for bringing new products in new markets (Loh
and Norton, 2015). This strategy work only when the company is having a
strong foundation with a superb supply chain or which is very large in terms of
profits.
The Ansoff's matrix is used by Unicorn grocery to determine the best strategies for
increasing sales and profits with existing customer, new customer, existing market and
new markets. The available amount of assets, market positions and infrastructure will
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tell which of the strategy is best suited for Unicorn. Unicorn must use the Ansoff's
matrix on yearly bases to see whether company need to improve or adjust existing
products or services or to explore the new markets.
TASK 2
P3 Assessing the source of funds available to Unicorn and also their benefits and
drawbacks.
Funds are all financial resources mainly in form of money or can also be time
and efforts to meet the goals of an organisation (Mahmoudi,2013). Source of fund are
the said origin form where an organisation can obtain funds including credit,
donations, grants, loans, government sources, savings and franchising as well.
Unicorn grocery also can obtain funds from all these sources and grow its business in
the market.
Illustration 2: Source of Fund
[Source: Source of Fund, 2017]
 Bank borrowing- lending from bank are the first source of fund which
Unicorn or any other organisation regard to as it the easiest way. Bank
borrowing may be short term, medium term or can be long term also but for a
specified period only. Short term lending includes an overdraft which Unicorn
can withdraw on a daily basis within a set limit as agreed by the bank and
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interest is charged on the amount withdrawn. Short term loan also can be for
three years and to be paid after three years can be paid before as well. Whereas,
medium term loans are for a period of 3 to 10 years the interest rate is charged
on a set margin with the size of margin and credit standing of Unicorn. The
merit of bank loan is that it is very easily available to the customer with a
specified documentations and rate of interest is also reasonable (Mappangara
and Simanjuntak, 2014). But is also difficult to obtain without good track
record or a clean cibile of the customer and inflation rates affect the rate of
interest of the loan.
 Leasing- By this type of source also funds can be obtained as this is an
agreement between two parties namely lessor and lessee which states that there
is any capital asset owned by lessor and used by lessee for a said amount of
money. The amount, repayment time, term, purpose and security all are laid
down under the agreement between them. Lease is mainly a form of rent which
include the assets like plant, machinery, cars and commercial vehicles, office
computers and equipment as well. Benefit is that lessee has to pay a fixed
amount of money to the lessor during the whole course of the lease agreements
ignoring the rate factor (McDonald and Wilson, 2016). It also has a major
drawback which include that whether the lessee is using that asset or not
whether asset is giving any sort of profit or not the lessee has to pay the fixed
every time.
 Government capital- government to all kinds of small and medium business
enterprise provide some cash grants and other forms of direct subsidies for
development of the national economy. Government sets up many corporations
which help small and indigenous business in the country especially in the area
of high unemployment. Government grants assist them by providing money
support to the company and help them in growing faster in the economy.
Drawback of this is that government grants are generally stopped if there is any
change in the government structure or in the ruling party.
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 Franchising- in this type of source of fund franchisor is ready to pay a some of
amount to the franchisee to operate a local business under the franchisor trade
mark or name (Rudolf, Kienast and Hersperger,2017.). The franchisor will pay
a part of initial investment the cost of franchisee outlet to him and franchisee
will contribute a share of investment. Benefit to franchisee is that he obtains the
ownership of franchisor business on an agreed number of years. Whatever loss
of the name or brand because of franchisee is held to franchisor as the brand is
ultimately that of franchisor.
TASK 3
P4 Designing a business plan for growth includes financial information and strategic
objectives for scaling up Unicorn grocery.
Planning for the growth of company is very essential without which the
business cannot sustain in the long run. Just planning for growth is not enough for the
business but reviewing it on a continues basis to ensure the targets are met are also
important. After reviewing is done on regular basis it is important to identify the key
growth areas which entrepreneur wants to target then to again built up the business
plan for growth. Business plan in Unicorn will help it to consider the source of funds
from where it can get the fund whether will be taking loan or will take the property on
lease. Also, play a vital role in allocating resources in a business that how will the
leased property be used in the development of the business (Shaw and Goodrich,
2014). Unicorn will likewise see that the set business objective is achieved or not and
in which specified direction is organisation is going.
A good business plan includes the marketing aims and objectives, operational
objectives, financial information and the strategic objectives. Also include what the
business is doing, how will it develop and where businessmen want it to go. A
business plan for growth include the financial information which are the profits and
loss of Unicorn, all cash inflow and outflow forecast, prediction of sales and the
audited accounts of that financial year. This all financial information is nowadays
needed to be published in the local newspaper or on company's official website.
Forecast of sales, profits and loss and the revenue generation of Unicorn help to
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produce a perfect business plan for the company and its growth. Strategic objective
includes the planning done where to invest, what to do and how to achieve the goal of
Unicorn if it is certainly launching a new product in the market. Strategic plan also
considers objective, vision, mission and targets of Unicorn and that too in each area of
business. The sophisticated business plan regards the organisational as well as
departmental goal of Unicorn and its departments.
As the people working in the organisation and outside it for the betterment of
Unicorn are for certain the stakeholders of Unicorn grocery (Ying, Chaolin and
Xiaojiang, 2014). All departments are set with their target and then budgets are
allotted to department from the financial department and they are set according to
organisational goals. Resources which are available with Unicorn grocery are capital,
people, land etc they all need to be effectively allocated to plan so that targets are
implemented. The targets which are set should be specific, measurable, achievable,
realistic and timely so that they are met and there are no loopholes remaining. After
the business plan is made and implemented it is time to review the plan that what was
the set target and what Unicorn has achieved at the end. Reviewing is necessary for
the correct business development and to check the progress of the plan and that of
business or the products.
Executives summary:
Unicorn is the cooperative grocery store located in Manchester's and is
controlled by the members and owners running the business. The business plan
include the overall business strategy and its product or service and staff
management.
Enterprise Description:
Unicorn is closely connected to the local sister company in the sale and
owns 21 acres or per urban growing land at Glaze bury. Unicorn is the largest
independent wholesale food groceries in UK and having annual turnover of
around £7 million. And won two national awards Best local food retailer and
best independent retailer.
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Product and service description:
Unicorn is popular for selling the fresh, dried and processed food and
drink and also the organic food. Its is also selling the household, body care and
general grocery items in the stores.
Industry analysis:
The industry in which Unicorn is operating is the food retail and
wholesale industry. This is a very growing and developing industry in today's
scenario.
Competition analysis:
As Unicorn is one of the largest independent wholesale and retail food
chain in UK and are having many competitors. Like NISA, Tesco which are the
leading competitors of Unicorn.
SWOT analysis:
Strengths
Convenient stores.
Overall brand equity.
Individual branded products.
Weakness
High rental cost
High staff cost.
Franchisee
Opportunities
Continued market development
Increased products offering
Exclusive product offering
Threats
Supermarkets moving to 24/7 hours.
Security.
Shoplifting
Marketing plan:
The marketing plan will be including the marketing mix of the company
and the promotional activities which Unicorn want to adopt for the specified
product or business plan.
Operation plan:
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The way it will be working and the operating in the market to gain the
maximum share and the minimum principles guiding the daily operations of
Unicorn.
HR plan:
How the HR of the company will be hiring the new staff for effective
working of the company. HR plan will include the selecting, planning and
recruitment procedure of Unicorn.
Budget:
For executing the business plan what will be the required budget for
Unicorn which is estimated to about £2 million and the effective allocation of
the budget to all the areas of operation is also required.
Estimated cash flow for the year 2019 half year will be as stated above
this show that each month cash flow is going to increase. This increase will be
due to good marketing and strategic plan of company.
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Liquidity:
From where the funds will be arranged and how much will be the
liquidity of the company is also important.
Further, marketing mix of organization is also been discussed to provide an
understanding about its strategies to achieve sustainable growth in retail
industry. These marketing of company basically involves four elements which
are discussed below:
 Products: It is the most important element of marketing mix which
focuses on the development of products after the analysis of the
preference of the targeted customers. In order to achieve objectives of
increasing the market share, the Unicorn is providing new and quality
products in order to satisfy the needs of customers.
 Price: This element of marketing mix focuses on the development of
policies to provide the appropriate quality products at reasonable price. It
involves the analysis of the buying power of the customers through which
the firm will understand the willingness of the people to pay in exchange
of products. With effective penetration pricing policy is able to attract
more customers and increase its sales up to 20% in next 6 months.
 Place: This element of marketing mix, usually provides a understanding
about the place at which the organization has its outlets. In present
context, Unicorn has established its outlets at prominent places where
they will gain the recognition of their target customers like Middle
income group people.
 Promotion: As per analysis, Unicorn needs has also an effective
promotional strategies so that they can provide information about their
products and services to their target customers. The promotional practices
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they are using like social media, direct mails, digital advertisement and
print media advertisement etc.
TASK 4
P5 Assessing the exit or succession options for Unicorn and explaining the benefits
and drawbacks of both.
The business which is running on a smooth track of success will surely be
ready to take all the challenges and risk in the business. But if the business is on
declining phases of growth it will either plan to exit the market or would go for a
family succession. If the business is not having any successor then will plan to exit the
market and leave the business to start a new one. Unicorn grocery is not a family
business and also not having any successor to take the business forward or to take it
out from the declining phase so after its continues decrease in sale it will exit from the
market. To get the exit from the market or the industry it is necessary to get the exit
planned. Exit planning will include analysis of all the factors which will impact the
Unicorns business and the owners.
It starts from very long time as the exit is of a big concern to the owner and that
of the business (Zhou, 2017). Exit planning is from all aspect including the value,
employees, positions in the market. The drawback of exit is that if in the coming years
there are a scope of the business to grow then that would end after the exit of Unicorn
from industry. Whereas succession is that procedure in which businessmen identify
the potential successor of the organisation who can carry the business forward in the
development stage from the declining stage. Succession is generally given to the new
and emerging youth of the family who is equally qualified with the required potential.
The drawback is that successor may be or may be not that much capable as thought by
the businessmen and Unicorn instead of growing can come to an end as well. The exit
from the market will happen if the business is going on the continues loss the exit can
be done by many ways like:
Passing the business to family members:
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This is the easiest and most convenient way of existing from the marketplace if
Unicorn grocery is on the path of loss and the legal obligations. But before giving the
business to any family member there are some points which are need to be kept in
mind. Like from where the family member will be raising the money to get the
business, will they be able to manage the business and whether they are interested or
not and the most prominent is that to whom should the business of Unicorn be handed
over.
Purpose- this is very clear that the present owner is not been able to carry forward the
business and there is continuation of losses in the business. The amount of profit
incurred is not sufficient to pay off even the cost of products.
Merits- the same business will be there in the hands of the own family member only.
The business will go through the restructuring of the accounts and records.
Demerits- the losses if are carried forward in the new restructuring of the business will
be a wrong decision of the current owner.
Merger and acquisition- Merger is termed to combination of 2 entities forcing to
create new and joint management and acquisition is the takeover of one entity by the
other one. Both of them are also one of the option of company to succeed in future
which they can opt for.
Purpose- The main purpose for is to carry forward the vision and mission of company
at the time when present owner is not able to take that forward.
Merits- A merger occurs when two firms join together to form one. The new firm will
have an increased market share, which helps the firm gain economies of scale and
become more profitable. The merger will also reduce competition and could lead to
higher prices for consumers.
Demerits- Merging two companies can provide the firms with synergies and
economies of scale that can lead to greater efficiency and profitability, but it is
important to note that mergers can have a downside too.
Sale of the business- this means selling own business to another person or business
after which the current owner will not be having any say within transaction of
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business. This will be including selling of assets, capital assets, depreciable property
and other assets as well.
Purpose- This will be selling all properties and business related to other person either
to extract money from this or to just sell business.
Merits- The person would be having money inlue of selling his or her business to the
other one.
Demerits- the power and ownership of current will not be there for longer duration of
time.
CONCLUSION
From the above report on planning, the growth of Unicorn grocery is observed
that the process of planning is very important for the business to grow and expand. In
today's world where every product has the tough competition of their in the market it
is utmost important to do the planning for the success. There are many ways in which
Unicorn has been provided financial assistance or from where it can source funds like
government grants, bank borrowing, leasing and franchising. These all source of funds
can be used to develop and grow the business.
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REFERENCES
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Mappangara, D. and Simanjuntak, M.A., 2014. The First Mover Advantage of Solar
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Rudolf, S.C., Kienast, F. and Hersperger, A.M., 2017. Planning for compact urban
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Shaw, E.H. and Goodrich, K., 2014. Development of a Conceptual Framework.
Journal of Child Psychotherapy. 40. pp.73-89.
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Online
Ansoff's growth vector matrix, 2017, [Online]. Assessed through
<https://www.smartdraw.com/ansoff-matrix/> Assessed on 24th Oct 2017
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Source of Fund, 2017, [Online]. Assessed through
<http://www.fao.org/docrep/w4343e/w4343e08.htm> Assessed on 24th Oct
2017
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