Business Strategy of AIRDRI: An Analysis using PESTLE, Stakeholder Power/Interest Grid, VRIO, McKinsey 7s and Porter's Five Forces Model

This report analyses the business strategy of AIRDRI using various strategic analytical frameworks such as PESTLE, Stakeholder Power/Interest Grid, VRIO, McKinsey 7s and Porter's Five Forces Model. It evaluates the internal and external factors that influence the company's strategy and recommends appropriate growth platforms and strategies.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1......................................................................................................................................3
An overview of the organisation and analysis which should include mission, vision,
objectives, and core competencies of the organization.........................................................3
Evaluate, assess, and critique various factors that have been considered while
formulating strategy, applying PESTLE analysis.................................................................4
Evaluate the role of
strategy in achieving the relevant strategic direction, as well as gauge on stakeholder
analysis using stakeholder Power/Interest grid model..........................................................5
Evaluate, assess, and critique various factors that have been considered while formulating
strategy, also applying appropriate strategic analytical frameworks to assess the internal
environment............................................................................................................................9
SECTION 2....................................................................................................................................10
Evaluation of the different types of strategic directions available to the organisation.
In this section present your analysis under the realms of Porter’s strategy model as
well as Bowman’s strategy clock........................................................................................10
Loss of Market Share- The mentioned strategy is used by the company when they have the
fear of loss in the market share. To make their product recognisable in the operational market
they opt the standard pricing to being competitive and stay relevant in the performing market
(Setiawan, Choerunnisa, and Widyastuti, 2021). ...........................................................12
Justify and recommend the most appropriate growth platform and strategies such as
Hybrid strategy, Diversification, and Vertical/horizontal integration for your chosen
organisation.........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
A business strategy is the inclusion of various decision and actions that used by
companies to fulfil their goals in the operational market. These detailed business strategies
covers all the operational areas of business through which managers enhance the organisation
operations. Therefore, it work as a backbone for businesses which form an effective roadmap
according to the company set of goals. In instance the mentioned report will discuss the business
strategy of AIRDRI.
AIRDRI is a renowned organisation in hand dryer business. The respected company was
founded in 1974 in Oxfordshire UK by Peter Philipps and Peter Allen. The respected company
offers the number of designed hand dryer that enhance the beauty of wash room. In regard to this
the respected report is the inclusion of multiple section which is divided into 1 and 2. the first
section will evaluate the internal as well as external analysis regard to the respected company
operations. It highlights the various detailed model such as PESTEL and stakeholder analysis.
Further the report will also evaluate the factors that influence the formulating strategy. In relation
to the first section the next section will devise the strategic plan that demonstrate strategic
direction through various strategic theories and model (Kong, and et. al., 2020).

MAIN BODY
SECTION 1
An overview of the organisation and analysis which should include mission, vision,
objectives, and core competencies of the organization
AIRDRI is one of the selected company in the hand dryer industry that provides the
reliable hand hand dryer to its potential customer. The respected company generate the efficient
business model which consistently identified the market requirement and used them in order to
provide the efficient product in their operational functions. The respected company offers the
wide range of designed hand dryer which suits every washroom. In instance to this the
mentioned company also evaluate their business function by the time. They entered in the
elevator door business as well as also developed air and surface sanitisers range (Travis, and
Hodgson, 2019). In regard to their core business operation which is selling the hand dryer, below
are the brief discussion of company vision, mission and Aim which will highlight their business
operations core competencies.
 Mission- AIRDRI is on the mission to improvise their dryer series by making them more
reliable and environment friendly. To achieve such milestone the respected company has
the dedicated research and development team that focus on innovating the unique
products.
 Vision- The mentioned company have the clear vision to focus on the innovation
practises in their business operation to provide the efficient products in the market. By
the time company is aiming to enhance its business operation through growing their
popularity.
 Objectives- AIRDRI is planning to enhancing its operational market by reaching out in
more community. They also working on creating the more energy efficient product in the
operational market.
 Core competencies- The mentioned business has been engaged in the hand dryer
industry over 45 years. Hence, they developed the wide range of reliable hand dryer
which are durable ans sustainable.

Evaluate, assess, and critique various factors that have been considered while
formulating strategy, applying PESTLE analysis
PESTEL ANALYSIS
 Political- To enhance the business operations in the UK market the respected company
need to raise the fund or loan. In context to this the respected company majorly rely on
the research and department company that engage in innovating the product for
competitive advantage. Hence, such practice in the operational function need the high
investment that can be possible without taking the loan. In instance the high interest rates
that implied by the government on corporate companies make it hard for the business to
raise the convenient fund (Nurmi, and Niemelä, 2018). Due to such scenario the
respected company can face high operational cost due to such political decision.
 Economic- After the COVID 19 the UK economy growth rate is impressively
recovering. Hence, it is the clear sign of consumer ability to spend on specific product.
The respected company has the advantage to influence the individual through their vast
range of product. On the hand the UK government has implied the BREXIT law in their
economy which ultimately creates some complexity for the business operations. The
respected company now can face the higher surcharge in importing the material from
Europe.
 Social- After the coronavirus the demographic Trend of UK shifting towards the use of
products which are more reliable and maintain hygiene. In regard to this the respected
company offers the range of hand dryer that help the people to eliminate the multiple
touch in drying the hand. Their product also kills the bacteria by throwing the anti
bacterial rays.
 Technological- One of the major advantage that the respected company have in their
business operation is due technology advancement. The respected company always focus
on innovation and technology advancement. Hence by following the mentioned practises
in their business operations they provided the wide range of hand dryer. In instance such
practice helps the mentioned company to become leader in the UK market.
 Environmental- in the today era one of the major concern that countries facing is
environment degradation. In relation to decrease the environment impact, the UK
government implied several guidelines for companies that operate in their economy. In

regard to this the respected company company consistently shifting their range of
products towards the sustainability.
 Legal- The government of UK address the multiple laws and regulation which need to be
follow by the operational companies in their economy. Any breaches in these laws can
cause the high fine and lawsuit to their businesses. In regard to the company operation the
respected organisation need to follow the employee labour law, intellectual law, working
hour laws etc. these laws need to be addressed by the respected company seriously in
their business operations (Zentner, and et. al., 2020).
Evaluate the role of
strategy in achieving the relevant strategic direction, as well as gauge on stakeholder
analysis using stakeholder Power/Interest grid model
Stakeholder analysis
Stakeholder analysis is one of the main framework that used by the companies to
prioritise their stakeholder on the behalf of power and interest. In regard to this below are the
brief discussion of respected company;
 high power high interest- These are the people that have the high power to influence the
decision making of company as well as also engage in the company operation due to
their high interest. These types of stakeholder need to be managed closely. Executive and
department head of AIRDRI deploy under this section.
 high power low interest- These type of stakeholder have the high power on the business
decision but they aren't indulged in the company activity due to their lower interest in
organisation function. These stakeholder need to be tackle cautiously as they have the
power to impact the business operations. Customer and sponsor comes under this
category.
 low power high interest- In this mentioned category those people are consider that have
the low power to influence the business decision but have the higher interest regard to the
company operation employee, supplier are considered in the mentioned category
(Pelyukh, and et. al., 2021).

 low power low interest- These type of stakeholder haver the low power and low
interest in regard to the business operation. Hence, the respected company need to
monitor these type of stakeholder more closely.
VRIO
BASIS Valuable Rare Inimitable Organised
Innovation Yes Yes Yes yes
Marketing Yes No no No
Supply chain
management
Yes No No Yes
technology yes no yes yes
Valuable
 Innovation- The respected company majorly rely on the innovation. Their research and
development department creates the efficient products that helps them in cater the
targeted market more significantly.
 Marketing- Through the marketing resources the mentioned company generate the
demand for their product. Hence, it plays a vital role in attracting the customer towards
company product which makes the marketing more valuable.
 Supply chain- By the use of supply chain management the discussed company perform
their operational more significantly. It helps them in managing the company operations
from manufacture to deliver in the market to their selling partners (Hujainah, and et. al.,
2018).
 Technology- IN order to create the reliable and efficient hand dryer, AIRDRI uses the
adaptive technology that helps them in making the unique product in the operational
market.
Rare
 Innovation- The respected company heavily invested in the research and department to
get the unique and efficient product in the market. Their research and development
department studied the market need and use such data in their operational activity in
order to develop the rare product.

Inimitable
 Innovation- The discussed company patent all their innovation to eliminate the threat
of imitation.
 Technology- According to their business function the mentioned company developed
the adaptive technology which is not possible for their competitors to imitate. They
heavily invested in making the unique technology that provides them advantage to
perform efficient function in the competitive market.
Organised
 Innovation- The respected company has the highly skilled staff in their research and
development department that insures to perform the function in a organised and efficient
manner.
 supply chain management- The discussed company supply chain management plays
foremost important role in their operational functions. All the activities in this particular
department divided according to abilities that provides the advantage to the respected
company to perform their functions smoothly.
 Technology- The technology that used in the operational functions are manages by the
highly trained peoples. The respected company runs the training program in their
operation functions the develop the needed skills in their employee (Abdolshah,
Moghimi, and Khatibi, 2018).
The Mckinsey 7s model
The respected model is used to analyse the various part of the organisation functions . It
provides the assistance to create the efficient functions by determining suitable ways.
1. Strategy- The mentioned business uses the differentiation strategy in their business
operations by providing the unique and sustainable product in the operational market.
The respected company provides the wide range of products that have some unique
features. Hence such procedure helps the respective company to cater the market more
effectively.
2. Structure- Functional structure are used in the mentioned company operations. By the
mentioned structure the respected company organise the different different department
according to their expertise. Hence it assist the company to focus on each department
more efficiently.

3. System- AIRDRI has defined system that helps the company ro manage and perform the
day to day business activity more efficiently. The respected company follows the
designed tools and method that ensure the management performance efficiency. By such
method all the department activities are considered and evaluate according to the
company goal.
4. Shared value- The core value of the mentioned company includes accountability,
quality, heritage as well as honesty. The manager of the respected company ensures that
all the business operations were follows the moral standard. The mentioned company also
encourage the diversity in their operation.
5. Style- They follows the leadership style in their operational functions in order to involve
and engage the employee according to the goals of the company. The mentioned style
helps in encouraging the employee morale to attain the company goal in a more
productive manner.
6. Staff- The respected business have the sufficient number of employee in their business
functions that have the different roles and responsibility in the operational functions. The
respected company hired the employees according their position requirement. The
respected company has the dedicated system that identifies the company requirement and
align with the recruitment process (Tennent, 2020).
7. Skills- The mentioned company has the defined workforce with the high skills and
knowledge. By such efficient talent the mentioned company performs its task more
effectively in the operational market. By such talent the mentioned company developed
the unique and innovative product in the operational market that determine their strong
marker existence.
Evaluate, assess, and critique various factors that have been considered while formulating
strategy, also applying appropriate strategic analytical frameworks to assess the internal
environment
Porters five forces model
Competition in the industry(HIGH)
The mentioned company performs their business operations in the highly competitive
market. There are number of competitors in the UK market that offers the same services. In light

to the fact company creates the unique identity in their operational market through their wide
range of product. But still their competitor deploying the efforts in order to manipulate the
respected company market (Meijuan, and Jiangdi, 2020). Hence, due to such scenario the
respected company operations considered in the high competitive market.
Potential of new entrants into the industry(LOW)
AIRDRI has in the market from over 74 years. They uses the number of unique
approaches and strategies to cater the operational market more efficiently. The mentioned
company also creates the loyal customer base that creates the strong market appearance.
Therefore, it is not possible for the new entrants to enters in the mentioned industry. One of the
foremost reason is that it requires the high capital to establish the company operation. Secondly,
innovation is the main key that helps the organisation to cater the market. In light to the fact it is
not easy for the new entrants to generate such functions in their operations.
Power of supplier(LOW)
The mentioned company have the number of choices in regard to select the supplier for
their business functions. Hence, it decreases the potential power of supplier. The respected
company has generated the efficient functions thorough their innovative approach that decreases
the effectiveness of supplier. Due to such scenario the mentioned company functions completely
not rely on the supplier. Therefore, the respected company can easily switch to another supplier
due to low switching cost. Hence, all these factors make the supplier power low in regard to the
mentioned company.
power of customer(Moderate)- The mentioned company have the vast number of customer
base that purchases it product. They also deployed the number of resources in order to attract the
customers towards their operational functions. In regard to this the mentioned company uses the
digital marketing, investment in research and development department in order to understand the
customer need. Hence, all these activities is performed by the company for generating the decent
customer base. The mentioned company provides the best design product to its customers as well
as their product are more reliable then other competitor. Due to such scenario customer cannot
shift to other brands product easily. Therefore, the power of customer is moderate.
Threat of substitute product(Moderate)
One of the main advantage in the mentioned company operation is that they have the
unique and wide range of product that provides the choices to its customer to select. Customer

can select the product according to their requirement. On the other hand the respected company
performs in the highly competitive market in which other companies also deploying the effort in
creating the innovative product. Hence, customer have the choices to shift to other brands
product.
SECTION 2
Evaluation of the different types of strategic directions available to the organisation.
In this section present your analysis under the realms of Porter’s strategy model as
well as Bowman’s strategy clock
Porters generic model
 Cost leadership strategy- The cost leadership strategy is the process in which businesses
focuses on reducing the price of their product in order to attract the customers towards
them. The mentioned strategy includes the number of other factor to implement it in the
business operations. In regard to this the organisation need to adopt efficient approaches
that provide assistant in order to decrease the operational cost. It also includes the
detailed strategic plan in which businesses deploy their function according to the market
situation.
 Differentiation strategy- In this mentioned business strategy organisation focuses on
providing the different product and services in compare to its competitors in the market.
The respected company uses the mentioned pricing strategy in their business operations.
The respected has the research and development that collect the reliable data according to
the customer need as well as gap in the operational market that can be fulfil through the
innovative product. In regard to this the respected business creates the different product
by using the reliable informations. Due to such strategy the respected company has the
advantage increase their customer base by entering in the market as well as they can
charge the premium price on their product.
 Cost focus Strategy- The mentioned strategy is the evolution of cost leadership strategy.
The respected strategy focus on niche market in which business want to perform and the
cost refers to pricing in which company form the product on a attractive cost. This
mentioned strategy helps the company in order to generate the loyal customers towards
their product.

 Differentiation Focus strategy- The respective strategy is the evolution of the
differentiation strategy. In this mentioned strategy a business enters in the niche market
by its unique product or service. It helps the businesses to cross selling within marker as
well as also gives the assistance to switch the market more efficiently.
Bowman’s strategy clock
1.Low Price and Low Value Added- In this mentioned category companies focus on
pricing factor not on quality. The mentioned strategy is used in order to cater the market
on price basis. It helps the organisation in order to attract the customer towards their
product on the basis of price. In this type of operations businesses provides the inferior
quality of products that perceives only less value.
2.Low Price- In this mentioned strategy companies focuses on delivering the large
quantity of product on an justified price. Companies provide the quality product to their
customer on an attractive price. The profit margin on every sell is very low. But due to
high output volume companies generate the huge profit in their operations functions.
3.Hybrid (Moderate Price/Moderate Differentiation)- the mentioned strategy is one of
the efficient technique in which business offers the quality of product on a moderate price
and product also differ from the competitor. Hence, the mentioned model helps the
company to attract the vast number of customer to make them loyal one.
4.Differentiation- In the mentioned model company aim is to provide the product that
fulfil the market gap. By the mentioned practice organisation attracts the customers
towards their product with their unique identity. In regard to this the respected business
can use the mentioned model in their business operations in order to make the unique
identity in the target market.
5.Focused Differentiation- The mentioned strategy is used in position a product on
utmost price level. By the use of focused differentiation strategy companies encourage
the customer to buy their high perceived value product in compare to their competitors.
Through the help of marketing, segmentation and target promotion strategies companies
transform the potential customer into loyal one.
6.Risky High Margins- The mentioned strategy is one of the high risk positioning
strategy in which company didn't add anything extra in the product in regard to their high
price range. This strategy is not beneficial in long run. Consumers purchases the product

only till they find the suitable replacement. Through this strategy companies can earn the
high margin for a short period of a time until a substitutes available in the market.
7.Monopoly Pricing- Companies which create the monopoly position in the operational
market are less concerned about pricing and competitors actions. Consumers majorly rely
on the company product and have the limited alternatives. The profit earning ratio is high
sue to monopoly in the market. It is difficult to position such strategy in the market
because in many economies regularity bodies did not promote monopolies in their
operational market in order to encourage the fair pricing.
Loss of Market Share- The mentioned strategy is used by the company when they have the fear
of loss in the market share. To make their product recognisable in the operational market
they opt the standard pricing to being competitive and stay relevant in the performing
market (Setiawan, Choerunnisa, and Widyastuti, 2021).
Justify and recommend the most appropriate growth platform and strategies such as
Hybrid strategy, Diversification, and Vertical/horizontal integration for your chosen
organisation
From the analyses of above discussion it can be suggested that the respected company
need to adopt the differentiation positioning strategy in their operational functions in order to
create the unique identity. Through the discussed strategy the mentioned company can cater the
market through their wide range of unique products. As discussed in the above report their
product are more sustainable and innovative in compare to their competitors.
CONCLUSION
From the analysis of above report it can be said that business strategy plays a vital role in
evolving the business operations of company. By the effective business strategy companies can
easily perceive their goal more efficiently as well as can also get the competitive advantage. In
regard to suggest the suitable business strategy to the respected company, various factors were
analysed. Through the help of various model and framework such as PESTEL ANALYSIS,
Stakeholder analysis, VRIO, the Mckinsey 7s model, Porters five forces model internal and
external environment were analysed. Furthermore, Porters generic model and Bowman’s strategy
clock were implied in order to recommend the suitable business strategy according to their
business functions.

REFERENCES
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