Family Firms and Life Stage Considerations for Growth

This research paper critically examines growth strategies in urban and regional planning, with a focus on evaluating approaches like smart growth and growth poles. The study explores the implications of these strategies for sustainable development and considers challenges such as economic pressures, environmental concerns, and social dynamics. It also highlights life stage differences in family firms' growth plans, using case studies from Greece to illustrate regional applications. The paper provides insights into how urban planners can balance various factors to achieve strategic growth while addressing modern challenges.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration for evaluating growth opportunities in business......................................1
P2 Opportunities for growth applying Ansoff's growth vector matrix.......................................3
M1 Different range of analytical framework..............................................................................4
TASK 2............................................................................................................................................5
P3 Evaluating Sources of Funding for business and their advantage and disadvantage.............5
M2 Sources of Funds for business..............................................................................................7
TASK 3............................................................................................................................................7
M3 Business plan........................................................................................................................9
TASK 4..........................................................................................................................................10
P5. Exit and succession option for small business....................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is the process of making strategies for achieving the required goal. Planning for
growth is the activity which helps business in making plans for increasing their revenue. This
supports business in utilising available resources with proper allocation in order to achieve
organisational goal for growth purpose (Barbour and Deakin, 2012). This report is based on
Dega Broadcast System. It is the small & medium sized enterprises which serves technical
installation facilities from past 25 years. This report discusses about various types of growth
options for this company with different sources of funding with there positive & negative
aspects. Several business plan available for operational activities in order to achieve
organisational goal. Exit strategy of Dega Broadcast System has been also elaborated with
options for ending procedure.
TASK 1
P1 Key consideration for evaluating growth opportunities in business
In small and medium enterprises its important for the company to evaluate different option
for growth in the market. Risk is the part of growth which can be reduced by opting proper
strategies for long run profit, security & stability. Dega Broadcast System is small and medium
sized enterprises which provides technical installation facilities, consultancy services, system
designing & covers event. Objective of the company is to concentrate on providing quality
products & services to its customers and build long term relationship with them. This helps the
company in connecting to its existing customers & attract more new customer's which increases
the opportunity of growth for it. Management team of the company plans to provides exceptional
services to its customers for achieving the goal (Brinckmann, Grichnik and Kapsa, 2010). Dega
Broadcast System focuses on going for collaboration in order to increase their opportunities
towards the other segments. This increases no. of option available for the company several
industries.
Importance Of Business Growth:- Business is all about changes, its nature is dynamic.
For business growth internal factors as well as external factors are analysed which helps in
identifying available opportunities. For evaluating all the factors, company needs to give priority
to growth instead of success. Business growth of Dega Broadcast System depends on following
key statistics factors
1

 Turnover: Companies growth depends on its turnover which reflects the financial
position. Its important for Dega Broadcast System to increase their business transactions
which can be done by grabbing attention of more no. of customers. According to the
current report, Dega Broadcast System has fixed asset of approx £150. This shows that
the company needs to concentrate more on increasing its financial value for business
growth. Its turnover can be raised by grabbing available opportunities in the market.
 Staff: Dega Broadcast System hires highly skilled employees and also provide training to
its existing employees to their skill development which turns in the positive growth
scenario for the company. Skilled employees are completely familiar with the whole
procedure of manufacturing quality products to meet the standard of company. Skilled
staff helps the company is achieving current goals and also increases the parameter of
future goal to be achieved for business growth (Burton, 2010).
 Competition: Every organisation has its own competitors which affects business
profitability. It can become the vital problem for company. Management team of Dega
Broadcast System focuses on improving their quality by using advance technology. High
competition helps the company in more concentrating on their own strength to
differentiate themselves from the rival companies. The company has opted acquisition,
mergers and joint venture to overcome the competition issue & convert it into an
opportunity for the future growth.
 Diversification: Diversification is process of expanding business for its growth. It can be
in many forms, such as introducing new product in new area, manufacturing of product as
per customer demand to avoid excessive stock. Dega Broadcast System is looking for
growth by identifying opportunities and capture towards the motive of expansion. For
this the company is working on customer research to make new product as per their
requirement. Management team has developed their previous strategies in order to new
market with new product. Innovation with respect to products, services and new market
has increased the opportunities for growth.
 Market Share: It refers to the part of the marketplace covered by single company &
organisation. Dega Broadcast System is focusing on garbing more customers to increase
their market share. In addition to this, the company also attracts new customers with their
innovative products which can be done by knowing customers requirement, wants &
2

needs and weakness of the rival companies. From the past records of Dega Broadcast
System, it is analysed that this company is growing constantly. Its growth rate was
approx 7.9% in 2017 which helps Dega Broadcast System in its expansion and move
forward towards growth. Collaboration: When one company joins its hand with the other company for the
purpose of business expansion. It is the best option for business growth & minimises the
competition. Dega Broadcast System can go for merger, Joint venture, Acquisition, and
partnership as it helps the company in effective decision making process. Joint forces will
support the company in Grabbing opportunities in emerging market (Chapin, 2012). Dega
Broadcast System should combine with the other companies of different industry to
achieve their profitability goals & increase their command over other industries to cover
maximum no. of customer's.
Porters generic model
Porter's Generic model: This model is being utilised by organisations when it they wants
to look at their position where they are standing. Therefore, at the time of planning for growing,
DEGA broadcasting should determine how many rivals of them are present at marketplace that
can affect the expansion or operations. Porter's generic strategy model of DEGA broadcasting is
done beneath:
Cost leadership: One of the crucial factor of Porter's generic strategy model, which aid in
uplifting the profit margins and helps in reducing price of products. With the help of cost
leadership, DEGA broadcasting company can lower down the cost of services that are being
offered by them. Logistics of a company and if they are having good capital to invest then this is
being considered as a strategy that may aid organisation in hitting their targets.
Cost focus: In this strategy major emphasis of organisation is on targeted market place
and customers needs. In context to Dega broadcast System, its manager focuses on providing
technical installation services to the customers according to their requirement at reasonable price.
This will grab the attention of the cost oriented customers.
Differentiation: This is another strategy which specifies modification and alteration in
items and services which are made in according to requirements of people and competitors. Dega
boradcast system uses unique tools and latest technologies to provide installation services to
3

clients. Company add features and improve services by conducting training sessions and
seminars to have skilled and competent people which provide quality products to people.
Differentiation focus: This is one of the crucial marketing strategy that can be adopted
by small medium enterprise. Differentiation focus is assist DEGA Broadcasting company in
knowing strategies that are being adopted by other and rival companies. Although this provides
with variation in business operations but it creates problem in analysing whether the procedure is
valid or not.
P2 Opportunities for growth applying Ansoff's growth vector matrix
In market place number of opportunities are available in front of DEGA BROADCAST
SYSTEM in which they enhance their overall performance level. Along with this, they having
various development opportunities to enhance their brand image at market place. In this context,
Ansoff's growth matrix play vital role in determining growth opportunities in order to develop
various department of the firm. This matrix includes four areas such as market penetration,
product development, market development and diversification. All these will helps in enhancing
the chances of attaining goals and objectives. All these are as follows:
Market penetration: It is one of the important strategy through which company offer
existing products in existing market with the purpose of attaining desirable growth at market
place. In context of this, DEGA BROADCAST SYSTEM focus on enhancing their market share
by delivering quality services to their customers in order to attain success. For this, firm also use
various effective promotional tools to advertise their services in front of customers. With the
help of this strategy company easily capture larger market share form its rivals. This is possible
by satisfying customers needs and wants (Christofakis and Papadaskalopoulos, 2011).
Product development: It is also an effective strategy which help business organization at
the time of expanding their products and services. For this, company needs to make and
implement an effective plan and use digital technologies. This will helps in increasing customers
base with the company. In context of DEGA BROADCAST SYSTEM, they evaluate customers
taste and preferences before making as well as producing new services. By this company can
easily provide satisfaction to larger number of customers by delivering quality services as per
their requirements. With the help of this, company capture customers attention towards its
unique services. This will contribute in enhancing market share of the company at market place.
4

Market development: It is another strategy in which company determines new areas
where hey get opportunities to improve their brand image. In context of DEGA BROADCAST
SYSTEM, they serve their quality services in new market with the purpose of inviting various
customers. In this they try to make their products affordable and also implement new distribution
channel to deliver their quality services to end customers (Eddleston And et. al., 201). This will
aid in increasing the chances of attaining success at market place and at the same time also
established competitive image as compare to its rivals.
Diversification: This strategy is more important which help business organization to
attain growth in market place. By adopting this strategy DEGA BROADCAST SYSTEM easily
serve their quality services to customers as per their needs and wants. Along with this, company
also implement diversified techniques with the purpose of delivering their services. It helps is
creating positive brand image at market place and at the same time also create strong customer
base.
Hence, all these areas of Ansoff matrix can help in enhancing brand image of the
company and also determine the ways to improve their product quality as well. With the help of
this, DEGA BROADCAST SYSTEM can easily make their brand image more popular.
M1 Different range of analytical framework
Evaluation of business is important for capturing all the available opportunities of
growth. PESTLE analysis of Dega Broadcast System helps in finding the external elements
which affects its expansion plan. Several growth opportunities are provided through this analysis
are as follows:
 Political: This factors includes political condition of United kingdom which influences
the company. It supports company in identifying the opportunities raised by political
stability of the country which helps in the growth.
 Economical: This factors supports in best mode of financing that can be used by the
company for growth purpose.
 Social: This factor helps the Dega Broadcast System in grabbing the opportunities
favoured by cultural trends, population & demographic changes etc.
 Technological: Dega Broadcast System can capture available opportunities by adapting
advance technologies for growth purpose.
5

TASK 2
P3 Evaluating Sources of Funding for business and their advantage and disadvantage
Funding can be defined as providing financial support to the company in monetary terms
or by servicing like time & effort. In return of funding company shares its profit with the one
who provides fund. There are several sources of funding which can be opted by the Dega
Broadcast Systems for their expansion are discussed below:
Personal investment: In this investor is the owner who invest his personal money in
business for its expansion. Its easier for the owner to invest money as per the requirement.
Advantage- Owner has full control on his business and can use its money without anyone else's
involvement (Grover, Bokalo and Greenway, 2014). Dega Broadcast System can go for this
source of funding as in this, the company is not required to share its profit.
Disadvantage- In personal investment risk is non shareable. Owner of Dega Broadcast System
will have to face bad phase of business alone. Lack of outsider involvement can miss valuable
advise & mentorship which are important for every business.
Venture capital: This source of funding refers to the capitalist who invest money in the
business for equity. Dega Broadcast System should go for this method as they get huge capital
without any partnership and in exchange they provide good rate of return to their venture
capitalist.
Advantage- This is the form of investment which can also offer expertise advice for business
growth. It will help Dega Broadcast System in arranging quick funds & opens wide scope for
future partners & investors.
Disadvantage- It can be proven negative for Dega Broadcast System as in some situation
company have to give large piece of ownership or business to the investor because of their huge
funding. It reduces company's profitability ratio (Hough and et. al., 2010).
Bank Loans: It is the famous & well known option for funding. Dega Broadcast System
can get bank loan easily as they have reputed bank history which helps them in getting it faster.
This involves lots of documentation but its safer as compared to other options.
Advantage: Bank provides various types of options to the company as per their requirement. Its
the safer option & is faster if Dega Broadcast System has qualified whole procedure. Bank do
not control or interfere in business decision making process which is proven to be positive`
impression for the company.
6

Disadvantage- Dega Broadcast System has to go through lots of legal documentation that is
time consuming process. The company is required to pay timely instalment for their loan, any
delay in this can affect asset which is under banks authority.
Friends & Family: In this, fund is raised from the friends & close relatives for business
growth in return company shares equity with investors or give profit to them. This source of
funding is more dependent on the company's networking & relationship with its close associate.
Dega Broadcast System should work hard on its good terms with friends & close associate to get
funds.
Advantages- Its the fast source of funding with less documentation which saves time. Dega
Broadcast System can enjoy flexible mode of payments, as investors are close friends only.
Disadvantage- Less documentation can become the reason of misunderstanding & disputes
between the investor & owner which spoils the relationship. Dega Broadcast System will only
receive capital investment in the form of fund. They do not receive any kind of guidance &
expertise advice which might be beneficial for the company.
Angel investors: They are the one who gives fund in exchange of equity shares with the
authority of involvement in decision making process. Angel investors generally invests in small
firms and reserve their seats among board of directors. Dega Broadcast System can utilise the
advice of these investors as they are highly experienced.
Advantage- Expertise advice & guidance are beneficial for the Dega Broadcast System. Angel
investors have good management & knowledge which they use in business. In addition to this,
they also share their experience & networks for business expansion (Keough, 2015).
Disadvantage- Negative side of this can be seen as investors owns the board of director seat, so
they are authorised to participate in decision making process. In some situation, Dega Broadcast
System can be forced to loose control at some point over the business.
Dega Broadcast System provides technical installation facilities. Its has spent approx 25
years in this service industry. The company has gone for the personal investment among the
several sources of funding options. Its completely self financing & fully independent company
which do not share any of their responsibility & profits with the outside investors.
7

M2 Sources of Funds for business
There are different sources of funds which are used by management in order to ensure
effective business activities by providing funds to various departments. The different sources of
funding and their benefits are evaluated below as:
 Crowd Funding: This factor consists of raising funds from the general public. This is one
of the time consuming method and also the objectives which are formulated cannot be
changed without the consent of public (Pallagst, 2010).
 Bank Loan: This is the most vital factor as it results in raising funds from different banks
for their business ventures related with expansion of business activities. This is the
secured type of loans that are accessed by business.
TASK 3
P4 Designing Business plan
Business is a systematic framework designed in the motive of achieving organisational
goal for new business. It is the written document which includes planning regarding financial,
operational and marketing point of view. Dega Broadcast System has designed systematic plan
for its employees which they have to follow in their work. All the activities covered in this must
have to be followed in expected time which is finalised earlier. Business plan also ensures that
the invested money should be used in the planned manner which avoids the wastage of money &
also helps employees in utilising the investment in the effective manner to fulfil company's
requirements for achieving expected goal.
Business plan of Dega Broadcast System for the growth is made with the motive of
achieving their goal are discussed as follows:
Company overview
Dega Broadcast System comes in small medium & enterprises which provides technical
installation facilities in the service industry from last 25 years. It is self financing company that
believes in providing quality product & services to its customers which helps them in
maintaining long term relationship. The company ensures high standardised products to remain
trustworthy image among its customers as well as in this industry. This company deals in system
designing, event coverage, installation services and consultancy services.
Mission and Vision statement – The vision statement of Dega Broadcast system is to
become leading broadcasting company of UK by applying new and innovative techniques. On
8

the other hand, the vision statement of the company is to fulfil customers' needs and wants in the
best possible manner so as to gain high competitive edge.
Strategic objectives: Main motive Dega Broadcast System are discussed as follows:
 Delivering services with high quality for maintaining healthy relationship with customers
for long term (Li, Mobin and Keyser, 2016).
 Providing services as per the requirement of the customers. To adapt advance technology in order to grab opportunity available for growth.
Products & services:
Dega Broadcast System offers several times of services such as technical installation,
designing of system, consultancy services and event coverage. Employees of the company are
specialised in designing with the latest technology. This company has strong relationship with its
suppliers helps in maintaining the updated records of contact procedure, product information and
support details. Dega Broadcast System is famous for its exceptional services which helps the
company in building strong relationship with the existing customers & persuade new customers
to join this company.
Internal analysis – It encompasses with internal strength and weaknesses of an
organisation thus to improve them accordingly. The analysis supports to identify future growth
opportunities as well as threats which can affect company's existing marketing condition in
positive and negative manner. Following is defined internal analysis of : -
Strength
 Having strong market image due to effective quality of services.
 Large distribution channels which will support in supplying products at large markets.
 Implementation of new and innovative techniques of production.
 Flexible relations with managers; it reduces chances of conflicts and disputes.
Weaknesses
 Lack of availability of funds
 Untrained workers and low market experience
 Less importance to planning and research & development activities.
Opportunities
 Emerging market trends
 Entering into new markets through globalisation
9

 Improvise quality of products and services
Threats
 Competition with multinational companies Political condition of the country and economic downturns
Segmentation of target market -
It is essential for small business organisations to determine the target market selection
thus to sell products and services accordingly. Selection of target audiences supports Dega
broadcasting system, to satisfy needs and wants of customers in the best possible manner. In
addition to this, the firm has decided to sell drinks online and offline both methods. It is focusing
upon local markets and provide products at lower rates; it helps in attaining and retaining large
group of customers towards company (MacLeod, 2013).
Financial information of the company -
At last, while developing a business plan, management is required to identify financial
information of the firm thus to ascertain the amount which will be spend on various activities and
tasks. Thus, financial position of Dega broadcasting system, is strong cause it is established a
successful business the person is able to invest high amount on investing business activities and
operations of the company. In addition to this, having sufficient funds supports in proper
allocation of resources in the best possible manner as well as acquisition of digital technology in
working processes. It results enhancement of business goals and objectives in a certain time
period.
[Dega Broadcast System]
Cash Flow Statement
For the Year Ending 31/12/2017
Cash at Beginning of Year 22,500
Operations
Cash receipts from customers 4,25,875
10

Cash paid for
Inventory purchases (1,58,252)
General operating and administrative expenses (10,658)
Wage expenses (1,05,852)
Interest 8,502
Income taxes 18,780
Net Cash Flow from Operations 1,78,395
Investing Activities
Cash receipts from
Sale of property and equipment 35,564
Collection of principal on loans
Sale of investment securities
Cash paid for
Purchase of property and equipment (45,821)
Making loans to other entities
Purchase of investment securities
Net Cash Flow from Investing Activities (10,257)
[42]
Financing Activities
Cash receipts from
Issuance of stock
Borrowing
Cash paid for
Repurchase of stock (treasury stock)
Repayment of loans (42,585)
11

Dividends (45,850)
Net Cash Flow from Financing Activities (88,435)
Net Increase in Cash 79,703
Cash at End of Year 1,02,203
M3 Business plan
Business plans are the preset parameters made by the management team of the company
to achieve its goals & objectives. Business plan is made before starting the business, which helps
the company in knowing all the positive & negative factors. It supports in overcoming the risky
factors by finding out their solutions. Dega Broadcast System has made its business plan which
helps all the employees to work in systematic manner efficiently. These plans have their own
importance as it supports the company in securing their investment (Todes, 2012). This provides
the appropriate framework for the employees which they have to follow in order to achieve their
mutual goals.
TASK 4
P5. Exit and succession option for small business
Succession and option are regarded as two necessary things which are based on survival
development and growth of an organisation. There is a requirement to manager of Dega
Broadcast system to measure organisation performance and also interact with Board of Directors
accordingly.
Different methods for exit business
Sell business in the open market- When manager of an organisation decide to quit
business then there should be an option to sell business in open market at the reasonable cost. It
will be helpful for director of company to get actual value of business so that it can start a new
business. Under this, business sell its all assets and liabilities (Mitchelmore and Rowley, 2013).
Advantage
12

Goodwill be remain better and it will be helpful for firm to retain its existing consumers
and also attract the new in an easy manner.
Disadvantage
In context to compete with rivals, buyer can make some modification in whole business
operations. From this, employment of current staff can be in danger and they can lost their jobs.
Rivals of firm may buy business for know about consumer as well as financial information.
Liquidation- If firm regularly facing some issues as well as losses from pat years then in this
case manager needs to be forecast that there will not chance to company to generate profit and
also inform to Board of Directors of Dega Broadcast system.
Advantage
After the liquidation, director of this firm will be free from any of the legal actions
against company. It will live a liability to that to enter in to any new business with out bearing of
any liabilities (Moseley, 2013).
Disadvantage
There is a requirement to director of firm to sold current assets for make payment to
creditors in the dividend form.
Different ways to succeed business
Use Internet sources- Consumers are regarded as life line of company that want to attain
success of business by attracting the large number of consumers and gain competitive advantage
at market place. In context to this, there is a requirement to Dega Broadcasting firm to adopt
different activities so that people can be attracted towards firm. It can develop the website of
company and promote its services by doing the online marketing.
Delegating work to employees- There is a requirement to manager of this organisation to
delegate necessary work to capable or responsible staff members according to their specialisation
and core competencies through which firm can gain profit. It is also helpful in motivate
employees in an effective or better manner and from this they can focus on achieving the set
aims of company.
Advantage of business succession
Staff of Dega Broadcast System get better benefit to be feel secure as well as safe
regarding employability that aids in enhancing their morale and motivation. Through this, rate of
employee turnover will be reduced.
13

Disadvantage of business succession
After facing loss, if firm decide to set up new business to generate profit then it can
enhance expense or liabilities which can reduce reputation.
M4 Evaluating Exit and Succession options for small business
There are different points such as succession and Exit which are based on the
performance of the business organisation. So the most important factor of firms is linked with
performing all business operations in effective and planned manner so there can be sustainability
factor in business performances. If business is not able to achieve their set goals and targets, then
they are having just one option that is liquidation of their business activities. It is the most
important duty of management in order to implement new and innovative technologies at work
manner.
CONCLUSION
From the above mentioned report, it get concluded that small business associations are
towards focusing on proper planning of working activities so as to attain organisational goals and
objectives. It supports in identifying all those factors which affects planning process of
companies. The coursework has stated main key consideration which should be measures to
market opportunities, such as – competitive advantage, target market segmentation and so on,
For this purpose, dega broadcasting system can acquire Ansoff Matrix which involves four
components, such as – market penetration, market development, product development and
diversification. There are various sources of funding having their own pros and cons, such as –
bank loan and crowd funding etc. Furthermore, a business plan is developed by considering
vision and mission statement of the company to attain future growth and success.
14

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

16