Planning for Growth and Business Development

The provided assignment is related to planning for growth and business development. It involves exploring different strategies for planning and growth, such as business planning, smart growth planning, and others. The assignment requires analyzing various research papers and studies on planning for growth, including those related to small firms, urban management, and product development. Additionally, it involves examining the challenges of planning for growth in different contexts, such as South East Queensland, Scotland, and China. The assignment aims to provide a comprehensive understanding of planning for growth and its importance in achieving success.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key consideration for evaluating growth opportunity..............................................1
P2 Evaluate growth opportunity by implementing Ansoff's growth matrix...............................4
TASK 2............................................................................................................................................6
P3 Potential sources of funding available for enterprise and its advantages & disadvantages...6
TASK 3............................................................................................................................................7
P4 Design a business plan for growth.........................................................................................7
TASK 4..........................................................................................................................................10
P5 Assess exit or succession options for small business and its advantages and disadvantages
...................................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is an important part for every company as it play a very main role for
accomplishing all the business activities properly. It will assist in determining policies according
to market situation (Planning for growth, 2017). Accomplishing all the activities as per policies
which are made by firms for achieving goals and objectives. By using advance technology, the
company will be able to deliver innovative services and simultaneously enhance operations of
an organisation. R&R Catering is being undertaken in this assignment. It is an organisation
known to be provide food and catering services in market of United Kingdom. It will aid in
providing fast services to their customers in an effective way for the growth of enterprise
activities. In this report it involve the business plan for the enterprise success and growth. Along
with this key consideration for evaluating growth opportunity by using competitive and external
analysis . Their are various different sources of funds which are adopted for raising more funds
for accomplishing business operations properly.
TASK 1
P1 Analyse key consideration for evaluating growth opportunity
In this changing environment, each company wants to gain better competitive advantages
for making a business successful within the market for a long period (Barbour and Deakin,
2012). An assessment of internal pitfalls and potential in the enterprises for enhancing success
changes and make a informed decisions. Supervisor need to find out opportunities for the growth
within the market by using several tools and tactics. R & R Catering is grabbing an opportunity
for providing lunch time services in St Michael's Church School. Some more ways of finding out
growth opportunities for targetting market by using two tools and tactics which are as follows:
Competitive analysis: It is an important part of making a business plan. By this, company can
introduce a innovative dishes by which they will make their food different from others. This
analysis will show how workers can able to achieve the growth opportunities. Management need
to evaluate its rivals.
Resources: This company owns talented and skilled workers with high experience which are
beneficial for the organisation. As they are using innovative ideas for increase buyers
satisfaction.
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Capabilities: This organisation is expertise in giving the advertisement on social media, TV,
radio and print media which aid them in communicating with targeted customers.
Core competences: R & R Catering is giving its services at cheaper rates with its quality which
aid them in beating its rivals and attracts higher number of buyers (Brinckmann, Grichnik and
Kapsa, 2010).
Porter's Generic Model
R & R Catering is using this model which will assist in showing alternative approaches
through which competitive advantage in the operating market could be achieved.. This model
reflects the choices made in the context of growth opportunities. It is divided into 4 parts which
are as follows:
(Source:Porter's Generic Model, 2017) Cost leadership: This strategy is based on increasing profits through cutting cost at the
time of charging average cost of R & R Catering. Various firms adopt this strategy with
the purpose of raising market share by reducing cost along with this they are still earning
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Illustration 1: Porter's Generic Model

reasonable margin of profits on every scale. It consists a leader in the context of prices as
well as sustaining competitive advantages for a long time. Differentiation leadership: It involve in making of unique goods and services which is
different from their competitors. As it will help R & R Catering in grabbing higher level
of customers. This strategy relies in enhancing brand image, features, durability and
functionality which value to their buyers (Burton, 2010). Cost focus: If R & R Catering will adopt this technique thus to focus on understanding
the changing market and niche market. It will help in satisfying buyers wants and needs
in an effective way. In this, company will give low price goods to a small group or niche
market of people. It aid in accomplish many others buyers from external market due to
getting a goods at low cost.
 Differentiation focus: In this, R & R Catering purpose is to make their foods in an
creative manner for attracting numbers of buyers. It means different food will produce for
special customers of market segmentation. Their are various small enterprises adopting
this techniques in achieving higher level of profits in niche market.
R & R Catering is adopting differentiation focus and cost strategy for developing low
cost dishes of food in an creative manner by using new techniques for targetting market.
Organisation who adopt focus technique will help in accessing capital which require in investing
on new unique strategies for bringing its low cost.
External market analysis
In this extrinsic surrounding, there are some elements which affect on enterprise
operations and activities in indirect and direct way (Chapin, 2012). Therefore, it purpose is to
find out all negative forces to execute and create imperative decision which aid in future success
and growth as well. Here it is analysed by using PEST analysis within the R & R Catering for
enhancing the enterprise growth techniques. It is explained in detail below:
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(Source: PEST Analysis, 2018)
Political factors
Their are some elements, like as tariff rates, tax
reforms, health regulation and so on. affect the
activities of business. i.e. if health grading
system in their country has make some changes
than R & R Catering have to adopt these
changes for getting higher rating (Christofakis
and Papadaskalopoulos, 2011).
Economical factors
This factors also gave impact on business
operations like as economy health and
minimum wage rate. i.e. company cannot
control these components but it is necessary to
react and assess them properly. If minimum
wage is increasing then firm have to show that
how many workers can they reasonably afford.
Social factors
These components enhance the awareness
within local area. As their should give the
dishes as per their customers demand. Like as
they have to provide quality food, clean
surrounding, healthy dishes and many more
gave impact on business activities.
Technological factors
It is a very main factor which keep on changing
which gave influence on business operations.
Hence know waiters can no longer rely on
paper and pen as R & R Catering have to apply
a new computer system for accomplishing
activities.
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Illustration 2: PEST Analysis

P2 Evaluate growth opportunity by implementing Ansoff's growth matrix
In order to find out upcoming opportunities it is needed for management to analyse
enterprise capabilities, strength, direction, strategies and knowledge of proper resources of
organisation. In small enterprises, they always tend to enter within new markets for grabbing
future opportunity (Eddleston and et. al., 2013). Hence, Ansoff's Matrix is an best growth
opportunity strategies which concentrate on companies potential and present food dishes and
buyers. By implementing various ways to grow new and existing goods and markets. Their are
four strategies of this model are as follows:
 Market penetration: In this, company seeks to adopt growth within previews goods in its
existing market segments with the objective of increasing market share. Therefore, this
strategy is treated as low risk of technique as it leverage organisation available
capabilities and resources.
(Source: The Ansoff Model, 2013) Market development: In this strategy, firms seek the growth by selling their dishes within
new markets for more catering orders. This strategy choice are pursuit within new
geographical area. If companies are having a strong competencies then they can develop
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Illustration 3: The Ansoff Model

their food dishes within new markets in an effective way. Organisation can able to deal
within a target market in an effective way. Product development: In this, company develop innovative and new food dishes for
selling them in existing market. This strategy can be effective as if their strengths are
related to buyers demands (Grover, Bokalo and Greenway, 2014). This tools and tactics
will give new opportunities and growth to organisation as if new food dishes will able to
achieve customers demands and requirements. i.e. In the industry of R & R Catering,
supervisors can decline their time within market along with this it also enhance the
buyers quality and services.
 Diversification: In this strategy, company can grow by diversifying its enterprise within
new markets with their new goods and services. Therefore, this strategy is little bit risky
as it need both product & market development which can be outside the core
competencies of organisation. Additionally, firms is not having any ideas about new
preferences and market of their buyers. i.e. R & R Catering can enter into new
geographical area by providing healthy dishes to buyers.
According to above discussion of strategies, R & R Catering is adopting a diversification
and product development strategy. In diversification strategy, R & R Catering is increasing their
enterprise in new areas of United Kingdom and product development will aid in making a
creative and healthy dishes for customers.
TASK 2
P3 Potential sources of funding available for enterprise and its advantages & disadvantages
R & R Catering is an small business which provide various kinds of catering services in
different prices. Currently firm get an government contract which is named as St Michael's
Church School catering contract. As it need a supplier who can give lunchtime services of
catering to their students. Actual bid of this government contract is £120K but the budget of R &
R Catering is £20K. So, remaining amount company will choice a best source of raising funds
which are given below:
Bank loan: It is one of source from where company can raise their funds for accomplishing their
contract successfully (Hough and et. al., 2010). In this, R & R Catering can take a bank loan at
the fixed interest rate. It is very simple as well as easy way of raising finance for accomplishing
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enterprise activities. Firm will get lots of advantages as loan is given by government to small
companies such as subsidy, interest free loan and many more. Its advantages and disadvantages
are as follows:
Advantages
 Bank loan is very easy and simple source of funds for accomplishing small business
activities.
 Various advantages are given by bankers when organisation take a bank loan for
enhancing their enterprise operations (Keough, 2015).
 It give low rate of interest as compared to another sources of funds.
 This source is very much secure as it give the guarantee of loan as well as there is no
discrepancy in providence.
Disadvantages
 It is necessary for bank loan to follow all rules and regulations with their mortgage
properties. It is not so easy to follow every rules along with this if firm fails then they
have to face the legal actions and penalties. It gives lots of tension and burden at the time of making payment of loan. Along with this
if firms will not able to pay the loan then banker can disposed off their mortgage
property.
Crowd computing: This source of funds are used by R & R Catering for raising their finance for
accomplishing the business activities properly. In this, it involve about having finance from
different peoples of the nation. This approach will aid in achieving the concentration of
particular person on enterprise operations (Li, Z., Mobin and Keyser, 2016). As it will assist in
working as a tools of marketing as well. Its advantages and disadvantages are as follows:
Advantages
 It is a best source of raising funds to achieve the reaction of public in the context of
increasing enterprise operations.
 This source involve in achieving valuable marketing form and media attention.
 Crowd funding is beneficial for organisation and it doesn't have much strictness.
Disadvantages
 Crowd funding consumes time in getting finance from different numbers of peoples.
 It is difficult for firms to manage the finance properly.
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 It became typical for company to take the stakeholder permission.
TASK 3
P4 Design a business plan for growth
Business plan involve the procedure of making a proper plan in which organisation
mentioned its mission, objective, vision etc. which are needed to meet companies objectives ad
targets as well (MacLeod, 2013).
R & R Catering will create a business plan for increasing their catering services by using
latest and innovative technology which are given below:
Background of firm: R & R Catering is an organisation which is providing catering
services within United Kingdom. It is an small company start up by investing £20,000. This
gives employment to 50 workers for accomplishing business activities.
Recently they get the government contract of providing lunchtime catering
services to students. Along with this firm use latest and innovative
technology within their enterprise functions.
Mission:“To provide healthy and quality food to their buyers for attaining customer
satisfaction”
Vision: “To be a most known catering service provider that focus on
quality and creativity”
Strategic objectives: Important strategies objective of R & R Catering are:
 To find out innovative and creative ideas for their dishes
 To apply latest equipments and technology for enhancing enterprise To make a online business website for increasing their profits and sales
STP Analysis: It is the familiar approach within modern marketing techniques where,
STP stands for Segmentation, targeting and positioning. Respective model is useful for R&R
catering while creating marketing communication plans. Because it assist marketers to prioritise
propositions as well as in developing or delivering personalised and relevant messages for
getting engage with different audiences.
 Segmentation – In the population get differentiate within several groups for analysing
their requirement. R&R catering company so they are segmenting customers within three
parts corporate sector, event companies and children of working parents.
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 Targeting – R&R catering company is targeting office going people because they don't
have much time to cook food. Along with this, respective firm is offering healthy food so
they can target health conscious people also. Positioning – It is necessary for R&R catering to take position in the competitive business
environment which can be possible through health with taste, high rate services and
maintaining quality standards.
Financial information: R & R Catering is a small company starting their business by
investing £20,000 within their business. For raising more finance company is using various
sources of funds such as bank loans and crowd funding for completing business functions
properly. But here firm cannot exceed their funds by £300,000. Therefore, financial budgets
for opening its ventures are given below:
Particulars Amount(£)
Promotions 10000
Advertisement expenses 15000
Implementing new technology cost 30000
Rent for place 15000
Total 70000
Measures for monitoring and evaluating progress: For monitoring as well as measuring
the business plan R&R Catering are considered some measures for achieving their goals and
objectives. The above business plan can be monitored and evaluated by controlling and
measuring place of the business and identify needs of customers. It will help respective company
in long term sustainability within market area.
TASK 4
P5 Assess exit or succession options for small business and its advantages and disadvantages
Succession and exit option involve two important things which depend on its survival
growth and performance of organisation. As per this they decision the continue or terminated of
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their firm (Pallagst, 2010). For example: if company is facing continuous loss from past 5 years
along with this there are no any chances of gaining profits then it is better to terminated. Some of
the ways through which managers of R & R Catering can dissolve or continue in future.
Several method of exit business
Liquidation
If the firm is facing continuous loss in business for 5 past years and supervisor of R & R
Catering forecast that there is no chances of earning profits. With this demand of revenue
consequences properly dissemination of information and data to BOD of R & R Catering for
showing exit of company. Advantages: After liquidation, companies director will be more liberal from each
legislative activities which has outline against the company cannot ascertain to pay their
debts. Disadvantages: Organisation director require to trade existing companies assets in
context of making creditors payments in the form of dividend (Todes, 2012).
Several ways of succeeding business Delegating task to expertise workers & avoid micromanaging: Director of company
require to delegate main work to their staff members in the term of their knowledge and
skills by meeting their profitable results. Using development and incentives programme
which help employees to contribute much in meeting companies objectives and goals. It
will assist in gaining competitive advantages and stable position.
 Internet use: Buyers are the lifeline of enterprise which aid in meeting growth and
success in accomplishing higher buyers which are exiting within market. hence R & R
Catering require to use several functions for attracting buyers (Valler, Phelps and Wood,
2012). Development of company by using online websites of business as well as catering
services and promoting tool by using online marketing.
Advantages
Workers of firms will get high level of business advantages by feeling secure as well as
safe about buyers employability which aid in raising morale and motivation of workers.
Disadvantages
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If firm is facing continuous loss then manager will continue with a hope of earning
profits in future. It will assist in enhancing expenses as well as liabilities of organisation which
decrease the firms reputation.
CONCLUSION
As per above report it has been concluded that applying a innovative and latest
technology of catering services will contribute in business growth. Supervisor need to find out
opportunities for the growth within the market by using several tools and tactics. The model of
Ansoff's matrix involve four main strategies which are market penetration, product development,
market development and diversification. Manager of enterprise require to show the performance
of company and communicate to BOD of company. It is management responsibility to select a
best source of arranging funds for effectively accomplishing of business activities by using
crowd funding and ban loans. It is important for supervisors to defined the areas for increasing
their enterprise as well as sustaining high opportunity of growth. In this, also prepared a business
plan which involve mission, objective, mission and so on.
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REFERENCES
Books and Journals
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pp.70-86.
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castle? A meta-analysis on contextual factors impacting the business planning–
performance relationship in small firms. Journal of Business Venturing. 25(1). pp.24-
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Chapin, T.S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
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Christofakis, M. and Papadaskalopoulos, A., 2011. The Growth Poles Strategy in regional
planning: The recent experience of Greece. Theoretical and Empirical Researches in
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Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms.
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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
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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.
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
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Online:
Planning for growth. 2017. [Online]. Available Through:
<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>
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