Planning for Growth: Evaluating Key Considerations and Funding Sources for Airdri

Planning For Growth

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluate some key considerations to analyse growth opportunities in market.................1
P2 Analyse opportunity to growth by applying Ansoff growth vector matrix.......................3
TASK 2............................................................................................................................................4
P3 Discuss possible sources of funding for the business with drawbacks and benefits of each
selected source........................................................................................................................4
TASK 3............................................................................................................................................7
P4 Develop a plan for business growth which consist financial data and strategic objectives
for scaling up a business ........................................................................................................7
P5 To explain benefits and drawbacks, assess exit or succession option ............................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12
Books and Journals ..............................................................................................................12

INTRODUCTION
Planning for growth is a important aspect for every organisation, this is a
considerable strategy for every business to plan and record the planning in order to expand the
business and try to make maximum possible profit from it. Growth planning helps the business to
bring innovative and unique ideas and implement the ideas in effective manner by adapting
significant changes when need. It is important for a flourishing business to bring changes along
with time by keeping in mind; the needs and demands raised by the customers. The company
taken for this report is Airdri, this is a UK-based company which manufacture hand dryer. This
report will cover discussion about various strategies to promote growth in business (Mazzarol
and Reboud, 2020). It includes business plan and succession option in order to get competitive
advantage in the market.
TASK 1
P1 Evaluate some key considerations to analyse growth opportunities in market.
In competitive business environment every organisation tends to make high profit ratio to
sustain and grow in market. In business; firm or organisation is a service provider and customer
is a service user. SME company needs to be evaluated by considering various dimensions for
growth opportunities. In context to Airdri, it is important for the organisation to analyse the
internal and external environment of the market to understand and grab the opportunity to grow
(Sparkman, 2018). Marketing manager of Airdri tends to examine for market opportunity with
the help of GE nad BCG matrix, which are discussed below-
Bostan consultancy group matrix
BCG matrix is helpful for long term planning over strategies and give knowledge about
high and low performance of the service or product which depends on market share and market
growth of company. By using the approach of Bostan matrix one can identify the potential of the
product. BCG matrix is considered to have four associated quadrants which are mention below
as;
Star product: These are the products which are highly demanded by customers,
contribute in attaining high share and high growth in market. In reference to Airdri, star products
are the range of dryers which give high sales and earn maximum profit in relevant market and
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help company to increase its market value and share. Airdri mainly focus to provide high quality
products to their customers to sustain and attract customers by increasing sale.
Cash cows: This is on of the BCG quadrant includes the product which helps the
company to maintain high market share but comparatively low growth in market. In reference to
Airdri, the products which are having high market share even with lowest in built innovation are
included in this section. By investing more and modify product to make it innovative can
increase its demand remarkably and converted into a star product to enhance its growth in the
market (Awode, 2020).
Question mark: These are the products which include those services and goods which
stand in the position of having low market share but having high growth in the market. In
reference to Airdri, the products which have been designed innovatively and considered to be
new invention but still unable to capture and attract big market are considered as question mark
product. In order to convert a question product into a star product Airdri is required to promote
their product by giving offers to make people aware and increase popularity of product which
may help in increasing market share of product.
Dogs: This quadrant contains the product which are having low share in the market and
are not supposed to give a considered growth in future as well. In reference to Airdri the
company tends to divest from such products and plans to make more profit by investing in cash
cow and star product.
GE matrix: This matrix is also known as nine grid cell matrix. It exclusively depends on
business units and product attractiveness. In Airdri this matrix can be helpful in analysing the
attractiveness of the business unit and relevant industry (Liguori, and Pittz, 2020). GE matrix is
mentioned below-
Invest/grow: Under this section, height gained by the product and industry attractiveness
is observed. In reference to Airdri this quadrant supposed to indulge those products which are
having high demand and attract more customers, so these products are considered to be effective
to make more investment in order to capture market.
Hold/ selective: This cell involves question mark product which shows that the product is
able to attain high attraction but unable to hold market. In order to make a strong hold to the
market and make it fall into category of star product the company needs to make more
investment and focus on product to make it innovative.
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