Gekko Partners: Growth, Funding, Business Plan, and Exit Strategies

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Planning for
Growth
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Analyse key consideration for evaluating growth opportunities and justify these
consideration within an organisation context.........................................................................3
P2. Ansoff Growth Matrix......................................................................................................6
M1. Discuss the options for growth using a range of analytical framework to demonstrate the
understanding of competitive advantage within an organisation...........................................7
D1.Critically evaluate specific options and pathways for growth, taking into account the risks
of each option and how they can be mitigated.(Devi and Dixit, 2016).................................7
TASK 2............................................................................................................................................8
P3. Different sources of Funding with their advantages & drawbacks..................................8
M2. Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context. ..........................................................9
D2.Critically evaluate potential with justified argument for the adoption of a particular source
based on organisational needs................................................................................................9
TASK 3..........................................................................................................................................10
P4. A Business plan for the organisation..............................................................................10
M3: Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations;.......................................................................12
D3: Provide critical evaluation of the exit or succession options for a small business and
decide an appropriate course of action with justified recommendations to support
implementation.....................................................................................................................12
TASK 4..........................................................................................................................................13
P5: Assess exit or succession options for the small business explaining the benefits and
drawback of each option. .....................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Effective planing is required in every organisation so that businesses can grow as well as
developed in a defined manner. Companies perform activities and functions with an aim to gain
high profits and this can only be achieve if the higher authorities of particular organisation
planning effectively (Beatley, 2014). Management team of companies formulates plans and
strategies in order to do market analysis and gain competitive edge at marketplace. This
strategies assist them to gain success within the market and remain for longer time frame. In
addition to this, the companies gives guidelines as well as authority to all the subordinates so that
positive outcome can be bring out which leads to attainment of organisational goals. In these
present report, Gekko partners which is a consulting firm is chosen as base company. It offers
various services such as product demonstration, compliance auditing, training, strategic services
and many more services. It is a small enterprises which is located at United Kingdom. The
current report discuss about the keys which an organisation uses to examine growth
opportunities. With this, a brief description about Ansoff growth matrix is cover in this report.
Furthermore, the different sources of funding with their benefits as well as disadvantages is
discussed. At last, it covers a business plan, exit or succession strategies for small businesses is
mentioned in the report.
TASK 1
P1: Analyse key consideration for evaluating growth opportunities and justify these
consideration within an organisation context.
A small business units required various resource which helps them to increase the sales
and profits and have a good growth in the market. The organisation who wants expands its
business is depends on the financial situation, competition in the target sector and even the
government regulation. In the context of Gekko partner Inc. company uses different modes to
growth in the market by providing market consultancy services to the investors(Agarwal and
Gupta 2015).This company operates in UK and Ireland giving merchandising and compliance
auditing and strategic services.
Porter's generic strategies: Under this strategies, companies are guide how to pursues
the competitive advantages in the target market. Gekko partner have three or four strategies like
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either lower cost than its competition, differentiated itself in market or either focus under two
segments like cost and differentiation focus.
Cost leadership: under this strategies, firm sale its product under low prices to become
low cost producer in the market. Here company take advantages of cost over the market to
remain above average performer in the industry. Their can be different structure of the industry
like proprietary technology and etc.
Differentiation: Here company position its product as unique in the industry which are
valued by the purchaser in the marketplace. The company chooses some of the important
attributes about the product and services which are identifiable for the buyers and make sure that
such strategies are advantages for the organisation(Ashish and Narinder, 2015).
Focus: under this strategy, company concentrate on the particular market and
understanding the dynamics of the market and unique need of the customer within the market.
Gekko partner Inc. provide unique product which are low in cost and are well specified by the
market. Because of the unique in their product, they tend to build strong loyalty among their
customer. Further, focus has two approach such as cost and differentiation focus, where cost
focus seek for cost advantage in the target segment and other focus seek differences in the target
segment. Cost exploits differences in cost behaviour while differentiation focus exploits the
special needs of buyers in target segments.
PEST Analysis: It is a strategies tool, used by the companies to discover, organise and
track macroeconomic factors which can impact the operational activities of the business in
present and in future also. Under this, various external factors will be discussed such as political,
economic, social and technological forces. Gekko partner inc. use PEST to evaluate how strategy
are formed and how such polices fit into broader environment. To provide overview of external
factors influences the organisation. This analysis is useful for the company who needs to gauge
current and future market(Bailey and et.;al., 2014).
Political: under political aspect of PEST analysis focus is on the government policy,
corruption, foreign trade policy, tax policy, trade restriction and various legal factor which effect
the operations functioning of the organisation. This factors affect the economy, specific industry
and the organisation , main policy include tax and employment laws which have impact on the
company.
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Economic: under this analysis, overall forces have impact on the performance of the
organisation. such forces are inflation in the market, industry growth, international interest and
exchange rate, change in the taxation of the income,labour costs impact, changes in the monetary
policies and etc. Gekko partner make sure that their have a good legal procedure in its
organisation so that they can minimum the side effect changes of economic factors.
Social: Here social attitudes, buyer behaviours and trends in the market have a huge
impact on the organisation and the target market. Under this factors, Immigration from different
place, family structure, religion, cultural taboos , income limit, leisure and shared beliefs are
include in this analysis of PEST. This have a great impact on the productivity of the company as
buyer have different perspective about the product and services of different target
market( Belleville, Ashley and Ozarska, 2016).
Technological: under this technologies are used within the organisation to increase the
performance of the organisation by implementing new technology in the operation activities in
the system. Technology can affect the way product are made in the organisation, distribute them
into target market and help in marketing the product and service in the market. some of the
factors which are included in this factors are research and innovation, consumer access to
technology, remove of obsoleted technology, intellectual property regulation and various other
incentives.
Competitive analysis: It is a statement of the business mission and visions which are top
be achieved in the present as well as in the future. The main aim of the competitive analysis is to
determine the strength and weakness of the competitors within the same market. This strategies
will provide a distinct advantage and control can barriers that can be develop in order to prevent
competition from entering the market(Chang and Joester,2015, 2014).
Resources: under this stages, companies make sure that they uses available resources to
the fullest to have a competitive advantages in the market. Organisation provide better use of
resource to have efficient productivity in the market. There are various resource such as human
resource, raw material and technologies which helps in achieving the goals and objective of the
organisation. Organisation can make best use of available to have a competitive advantages in
the marketplace.
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Competition : under this strategies, companies tries to have a competitive advantages
over another companies present in the market. Companies know their strength and weakness
which are to taken care to reduced the side effect of the changes in the organisation. Strength are
used to expanded the productivity of the operation activities in the management team.
Capabilities: under this area, capabilities of the organisation are match with the
opportunity present in the organisation. companies have to perform to their full capacities in the
environment to have a competitive advantages in the market. Target segment are made according
to needs and wants of the customer and produce such goods and service then distribute them in
the market and have advantages over the competitor in the organisation(Zhang and Guo, 2015).
P2. Ansoff Growth Matrix
It is a framework that assist top level management, marketing team as well as executives
in developing the future growth. This matrix was proposed by Igor Ansoff who is a business
manager and a good mathematician. The another name of this matrix is market expansion matrix
and the product grid (Birkin, Clarke and Clarke, 2017). Ansoff matrix discuss about four
strategies which include market development, market penetration, product development &
diversification. In addition to this, Ansoff matrix assist companies by providing appropriate
guidelines which further leads to achievement of desired goals. With relation to Gekko Partners
Limited., acquisition of this matrix by higher authorities assist them to gain knowledge about
market trends as well as market conditions. Ansoff matrix helps them to build those strategies
which take them to the step of success. Ansoff matrix strategies is discussed below in context to
the company:
Market Penetration: In this strategy, the company emphasise on existing market and
offers the same existing product. The main objective to acquire this strategy is to raise as well as
maintain market share. For instance, companies conducts loyalty schemes so that consumption of
their product is raised by existing users. In relation to Gekko partners, the top level management
decides to follow this strategy and offers their current product at existing marketplace (Bridge
and Dodds, 2018). They used sales promotion as well as advertising in order to enhance sales &
profitability of the company (Damodar and Mehta, 2018).
Product Development: Herein, companies offers unique and new products and services
to the existing market. In order to effectively acquire this strategy, an organisation needs to build
new products and competencies which assist the to easily bring their new product at existing
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marketplace. With reference to Gekko Partners, the company tries to make addition in their
offerings which gives customer more choices to like their brand. In addition to this, the company
uses pricing strategies in order to develop awareness in the market about their new offerings.
This will increases sales and the profitability level of Gekko partners.
Market Development: In this strategy, Organisation targets new market with their
existing product. This strategy consist higher risk as compare to market penetration strategy
because it targets new market. In context to Gekko partners, the higher authorities took decision
to approach other cities of United Kingdom with their current product as this will raise their
customer base level (Byrne, Sipe and Dodson, 2014). In order to gain the interest of customers
and to build awareness, the company uses different ways of communication such as social media,
advertising and so on. Moreover, raising in the level of customer base directly increases the sales
performance of company(Damodar and Mehta, 2018).
Diversification: herein, companies approach to new markets with their new services as
well as products. This strategy involves high risk because company enter in those segment which
they have no experience. In relation to Gekko partners Ltd., the marketing team of company
focuses on identifying needs of market and as per they offers new services at marketplace.
After gaining knowledge about all four strategies, it is stated that Market penetration is
useful as well as feasible for the company which assist them appropriately to grow in the market
and raise profitability level.
M1. Discuss the options for growth using a range of analytical framework to demonstrate the
understanding of competitive advantage within an organisation
In the complex environment, company have to face different challenges regarding how to take a
competitive advantages in the market. Their are various method which provide the best suitable
solution in the organisation to generates more profits in the long run.
D1.Critically evaluate specific options and pathways for growth, taking into account the risks of
each option and how they can be mitigated.(Devi and Dixit, 2016).
There are various method to expand the business in the market like company can go for market
development means introducing the new product and services in the organisation. Product
development is good for the growth of the organisation in the marketplace. Taking good control
of external factors like political,social, technologism and etc. have a great impact on the growth
of the organisation in the market.
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TASK 2
P3. Different sources of Funding with their advantages & drawbacks
Every company require funds to run business activities in a define as well as appropriate
manner. Nowadays, organisation have a lot of options through which they can borrow money for
their businesses and enhance their business presence as well as functions. By the assistance of
this sources, company can properly develop their market presence which automatically raises
their level of profits (Chen and et. al., 2014). With reference to Gekko partners Ltd., the
management team of company decides to do expansion of their businesses and targets new
market as well. In order to enhance business operations, company require money a well as funds.
The higher authorities identifies sources through which they can takes funds and performs
business activities appropriately. With this, they also try to find out which source of funding is
beneficial for them and saves their cost. The appropriate sources to borrow money is described in
detail below with their pros and cons and relation to company:
Personal Savings: It is one of the best options of sources of funding as it saves the
interest amount which a company can give to third party in return of their money. Saving
in the cost of company directly enhance the level of profit. In addition to this, personal
saving did not require ant documentation process as well as legal verification, thus it
saves the time of higher authorities also.
Advantages:
The benefit of adopting this method of funding saves the money as well as time of
company. With this, there is no interference of others and does not required any kind of
permission. Moreover, it is the feasible and fastest method to borrow funds for business
operations.
Disadvantage:
The major drawback of personal savings is it consist of high risk as the loss can be bear
by the owner only (Keough, 2015). Moreover, the time and money gt wasted and the
business performance level can be declined at marketplace because of decrease in
company market share.
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Bank Loan: It is termed as amount which is funded by banks or some financial institutions. The
companies take loan from financial institution and return the whole amount with interest amount
which is specified by bank at the time of taking loans. The banks grant loans by taking some
security from the companies such as property papers, gold, shares and so on. The main reason to
take security is to avoid any kind of misconduct. With relation to Gekko partners Ltd., the higher
authorities acquired bank loan option to take funds and increases their operations. In addition to
this, bank loan is the feasible as well as safest mode to take money (Kumar, 2016).
Advantages:
Bank loan is the most safest and secured method of sources of funding. It involves
documentation and verification which ensures security. Moreover, Banks offer so may
options to repay the money which is feasible as well as convenient for the companies.
Disadvantage:
The major disadvantage of banks loan is it consumes time of higher authorities in
verification and documentation process. Changes in one of the document require changes
in each and every document issued by bank.
By the assistance of above given methods of funding, it has been analysed that Bank loan is
feasible and appropriate for Gekko partners as it is safe and secured method to take loans for the
organisation.
M2. Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context.
In the context of Gekko partner inc. company has different source of funding in the market like
taking loan form the bank and from friends and family. Personal saving can be also be used as a
loan in the business activities. Raising fund from inside employees is also important source of
raising fund in the organisation. Formulating various policies and regulation which helps in
increasing the performance of the organisation(Gamal, Abdel Ghaffar and Alghezwy, 2016).
D2.Critically evaluate potential with justified argument for the adoption of a particular source
based on organisational needs.
With the references of the Gekko partner inc. company make sure that they proper facilities to
have great source of funding in the organisation. There should be proper flow of cash in the
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management team and work should be carried effective in the organisation to achieve the goals
and objectives in the long run.
TASK 3
P4. A Business plan for the organisation
It is basically a blueprint of the activities as well as operations which is needed to
perform to complete the task effectively. Business plan assist companies to assigned the task to
the subordinates appropriately and in a defined manner so that organisational goals can be
attained within time frame. It also involve strategies which is followed by the employees to do
tasks appropriately (Lambert and Oatley, 2017). With reference to Gekko Partners Ltd., the
higher authorities creates plans that involves several factors which are as follows:
Background of the company: Gekko partners is a small organisation and offers its
service in United Kingdom. It is a consulting company that offers services such as compliance
auditing, marketing services, strategic services, experiential auditing, product demonstration etc.
The offering of such services raises sales as well as market share of the company. The company
tries to expand its operation in other parts of UK and for which they use various strategies such
as personal selling, advertising, social media and so on. This assist them to gain the eyes of large
audiences and raise their sales appropriately.
Vision: “ To gain the leading position of best marketing company globally” is the vision
of Gekko partners Ltd.
Mission: The mission statement of Gekko partners Ltd, is “ To build lifestyle of people
by offering high quality and unique services within marketplace”.
Situational Analysis: This analysis is used by companies to identify their weaknesses as
well as strength. With reference to Gekko Partners Ltd., the higher work on this analysis with an
aim to gain insight about their weaknesses. The opportunities & strength of company described
below:
Strengths Opportunities
The higher authorities of company uses
innovative & advanced technology at
workplace in order to offer good
quality service & to gain attraction
Gekko partners Ltd., have the
opportunity to enhance their operations
in the overall market of United
Kingdom as it will raise their market
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from ample number of people (Piro,
2016).
share. (Lee, Pavkov and McCue-Weil,
2014).
Company can also enter into new
segment and targets new market in
order to enhance their sales &
profitability level.
Budget Formulation: It is the next step for developing effective business plan. Herein,
the top level management of Gekko Partners develops a budget so that business function can be
performed effectively. The Budget is mentioned below:
After analysing the above stated statement of cash flow, it has been analysed that
company pays takes on continuous basis and the income of Gekko partners Ltd. is around
$72001 (Sarin, 2019).
Target Market: The company is basically targets local citizens of United Kingdom as
the company mainly exist in UK marketplace.
Resource Allocation: It has been stated that resource allocation takes place after
analysing the requirement as well as needs of departments prevailing in the company.
Execution and controlling of plan : Herein, the plan is executed by the management
team of company effectively. In addition to this, managers of Gekko Partners Ltd. Checks and
monitors the activities on regular basis and compare it with the standard measures so that work
should be finished within time frame and in a defined manner (Wu, 2015).
M3: Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations;
In the context of Gekko partner inc. company has various method though which winding up can
be easily can be done in the beneficent for the both the company. Few method are liquidation,
sell the business to the friend, sell to the other business entity, transferring the business to family
business. Their are various pro and cons of the method depending upon the needs of the
organisation. Company can earn the net worth and sell the business activities in the organisation.
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D3: Provide critical evaluation of the exit or succession options for a small business and decide
an appropriate course of action with justified recommendations to support implementation.
In the market there are various method which are required in the performance of the winding off
the company. Some of the example are merger and acquisition, transferring the business to
family member, selling all the assets in the public, some of this method have different imopact
on the calculation of net worth of the orgnisation.
TASK 4
P5: Assess exit or succession options for the small business explaining the benefits and
drawback of each option.
There are various method which are used by the company to exist the business in the market. The
existing strategies are very important for the organisation so that right amount of net worth are
given to respective company. Some of the ways which helps in existing the business are
liquidation,merger and acquisition, initial public offering and selling the business to firendly
individual.
1) Liquidation method: under this strategies ,companies wind up its business by liquidation
method, here all assets are sale in the market and get the net worth of the company. They
sell all the assets and pay-off all the liabilities in the organisation.
Advantages: this is a simplicity form of winding up the operation activities in the marketplace.
Secondly, it take lesser time in winding up the business activities in the market?(Hellum and
et.al., 2015).
2) Merger and acquisition: under this method, winding up this done by following the
process stated into such method. Under this method, there is win -win situation for both
the company. The larger company takes smaller company by giving net worth to the
creditor and paying off the debts in the organisation.
Advantages: their net worth are calculated accurate and their take care of all the assets and
liabilities and various another legal issues are taken care in the organisation.
Disadvantages: this required lot of time consuming for calculating the net worth of the
company. First creditors are paid off then shareholder are paid off( Joseph, Janam,
Narayanan and Anil, 2017).
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3) Make it your cash cow: It is suggested to company if it is secure at marketplace and
stable in a business which has a pay off investors, steady revenue stream then an organisation
can find someone whom they have trust to run business properly and use remaining cash to build
another idea.
Interpretation of excel sheet
It is interpreted from the give excel sheet that cash flow statement consist of three main
activities that is operating, investing and financing as well. The net cash inflow of operating
activities in the year 2015 is 1,78,395. In the year 2016, it is 1,90,876 and in 2017, the net cash
inflow is 1,32174. In addition to this, investing activities shows the negative balance, which
means there is more cash outflow in comparison to cash inflow. The balance that is shown is -
10257, -4292, -4592 of the respective year 2015, 2016 and 2017. Moreover, financing activities
has a negative balance of -88,435 in the year 2015. Along with this, -88433 is balance of year
2016 and -89433 is shown of the year ending 2017.
CONCLUSION
From the above study, it has been stated that effective planning is required to develop by
higher authorities of organisation in order to gain success and remain at marketplace.
Development of effective strategy can lead an organisation to gain competitive edge against its
rivals. PESTLE framework is adopted by companies to examine the affect of macro
environmental factors on business activities as well as performances. With this, it has also been
identified that Bank loan is the most appropriate & feasible source of funding which provides
safety & security to the companies. Moreover, Market penetration strategy is refers as most
effective as it saves money as well as time of company and raise their market share. Situational
analysis conducts by management team of companies to examine weaknesses and then improve
it. Last, Social media is an effective strategy which plays an essential role in order to get success
within market place(Joseph and et.al., 2017).
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REFERENCES
Books&Journal
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Mehta, 2018)(Devi and Dixit, 2016)(Gamal, Abdel Ghaffar and Alghezwy, 2016)(Hellum and
et.al., 2015)( Joseph, Janam, Narayanan and Anil, 2017)(Joseph and et.al., 2017)(Lee, Pavkov
and McCue-Weil, 2014)(Su Shuo, Shen and Xin, 2014)(Zhang and Guo, 2015)
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