Growth Opportunities and Funding Sources for Desklib

This article discusses growth opportunities and funding sources for Desklib, an online library for study material. It analyzes key considerations for evaluating growth opportunities, evaluates funding sources, designs a business plan for growth, and assesses exit or succession options for a small business. The article also covers subjects such as competitive advantage, Ansoff matrix, bank loans, overdrafts, and voluntary/compulsory winding up.

Workflow

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Analyse key considerations for evaluating growth opportunities..........................................3
Evaluate the opportunities for growth....................................................................................5
Assess the potential sources of funding available to businesses............................................6
Design a business plan for growth..........................................................................................7
Assess exit or succession options for a small business........................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Growth planning is one of most important strategic business activity that helps to owners
of firm to plan and coordinate the growth opportunities by revenue. By allocation of limited
resources by centred efforts to adopt changes in positive manner in an industry through digital
disruption by differentiating from the competitors. For an organisation accomplishing growth
opportunities is very much important to remain always in competitive edge. This assignment rely
on the Airdri that are one of most effective product that is hand drying machine by identifying
the major gaps in the market. This report is based on the major considerations to evolute the
opportunities to attain growth by Ansoff matrix. It also includes the kinds of sources to raising
funds with their benefits and drawbacks of each source to prepare the business plan that includes
the financial and strategic objectives. Further it evaluate exit or succession options for the small
business with their advantages and disadvantages to get optimum outcomes.
TASK 1
Analyse key considerations for evaluating growth opportunities.
For a firm it is very much potential for them to evaluate the major growth opportunities
that is very much obligatory to remain always competitive in the marketplace (Albert, 2017.).
Growth opportunities should be accessed by using various kinds of tools and techniques that are
by PESTEL analysis, Ansoff matrix that give major insights that particular firm can attain large
market share. With that matrix differentiation, cost leadership and focus they can enlarge
business opportunities. In context of Gekko partners that is well known marketing consultancy in
both retail and B2B channels.
Competitive advantage:
To attain competitive advantage organisation have to plan and coordinate each and every
important attribute by assigning roles and responsibilities in positive manner (Arzaghi And
et.al ., 2017.). In context of Airdri they have vast opportunities to enlarge business opportunities
that are as follows:
with the help of Porter's generic model organisation can evaluate each and every attribute to grab
the growth opportunities in positive manner with the help of Porter's generic model that are as
follows:
Cost leadership:

Cost leadership is one of major attribute to get important attribute to cut down the cost in
comparison to the major competitors so that organisation can achieve competitive advantage. In
context of Airdri while expanding in the market of Spain they can choose cost leadership
strategy to adopt one of best strategies that reduces operating cost of an organisation.
Differentiation:
It is one of most important kind of strategy in which organisation offers one of best and
differ products and services in comparison to their fierce competitors to remain always
competitive in the marketplace (Chen And et.al ., 2014.). In context of Airdri by using the
differentiation strategy by adding some feature in their existing product or bring new product
into market helps them to attain desirable objectives.
Focus:
Organisations that focus on that strategy produce products and services particularly for a
niche market by properly evaluating the needs of the market and consumers by developing
unique or low cost specified products that helps to enchant their attention (Cullingworth and
Caves, 2013.). All are very much important for an organisation to determine the goals and
objectives of the organisation to remain always competitive in the marketplace. In context of
Airdri that aimed to expand in the market of Spain rely on the strategy of focus in which they
build products and services as per demand of particular niche market.
To evaluate the competitive advantage it is very much necessary to evaluate with the help of
PESTLE analysis that are as follows:
Political factors:
Political factor is one of most important for an organisation to evaluate the political
power of the country in which organisation operates. Airdri aimed to expand in the market of
Spain by examining the each and every factor such as plan and policies, rules and regulations
and barriers while operating in the market. In context of UK in which Airdri operating they faces
some kinds of tax regimes and effect of Brexit that bring fluctuations in prices that hinders the
self interest of an organisation.
Economic factor:
Economic factor consist of the expansion of the business in the market by evaluating each
and every factor in which credit rates, interest rates and purchasing power of the consumers and

many more. While expanding in the market of Spain it is very much necessary to evaluate the
necessary factor so that important steps should be taken to eliminate the negative effects of it.
Social factors:
In social factors consist of the taste and preferences of consumers in context of Airdri that
aimed to expand in the market of Spain for that they have to properly evaluate the emerging
needs and wants of them so that they successfully attain the organisational goals and objectives.
With the help of it organisation can be easily plan and coordinate to their employees to build
products accordingly.
Technological factor:
In technological factors consist of the usage of advance tools and techniques to give one
of best products and services to the new and existing consumers so that they obtain competitive
advantage (Galland, 2012.). In context of Airdri that aimed to expand in market of Spain have to
come up with the advance tools and techniques that helps to give pleasant experience to
consumer base to remain always competitive. In order to they bring innovation in their hand
dryers by using advance tools and techniques to get optimum outcomes.
After evaluating the all factors that give proper knowledge and information while expand in the
market, in context of Airdri that aimed to expand in the market of Spain so they have to properly
evaluate each and every aspect before enlarge business opportunities in positive manner.
Evaluate the opportunities for growth.
Ansoff matrix:
In Ansoff matrix consist of the major four sections that helps to deliver important
knowledge about growth opportunities that are as follows:
Market penetration:
Market strategy is one of most important strategy to achieve the growth by using the
existing products in the current market segment with aim of enhance the market share. In context
of Airdri they with the help of market penetration can enlarge business opportunities in positive
manner that they can enter into the new market with their existing product which is hand dryers.
With the help of that plan they can enlarge and enhance the scope of market to get optimum
kinds of results (Lambert and Oatley, 2017.).
Product development:

In that strategy the firm build the new product by targeting the new consumer base and
their existing consumers also. In context of Airdri by using the product development strategy
they can enlarge business opportunities by adding new range of product so that they can
compensate the demand of consumers in positive manner. In context of Airdri they by adding
new product into their existing product range can enlarge business opportunities. With the help
of that strategy organisation can easily leverage the strength by developing the unique products
and development by targeting existing customers.
Market development:
In that market development firm occupy the growth opportunities by target their existing
product for the new market and consumers so that they can reach at large no. of consumer base
by accessing their emerging needs and demands properly. In context of Airdri they can use that
growth strategy by using their existing product for the new consumers that are satisfy with the
product feature of it and pleasantly purchase their products and services. With the help of
additional market segment or other geographical regions they can develop one of best product
and services in the market-base to achieve optimum outputs.
Diversification:
In diversification the firm grow by diversify into new business by developing new
product in new market so that best opportunities should be grab by them (Lu, Wu, Shen and
Wang, 2013.).
After studying all kinds of growth opportunities it has been concluded that organisation
have to choose the market development strategy that are appropriate that Airdri core
competency related with the product such as Airdri hand dryers are very popular as for their
good services.
Assess the potential sources of funding available to businesses.
For an organisation while expand in the market it is very much necessary that
organisation have adequate funds with them if an organisation not have adequate funds then they
have to raise from the various sources by evaluating their advantages and disadvantage that are
as follows:
Bank Loan:
Bank loan is an common kind of funding tool that used by people or organisations that
wants funds in large quantity (Lu and Yu, 2014). A bank loan is an debt or an agreement

between a borrower and bank related to the certain amount of money that the borrower can
borrow and pay back in specific increments. In context of Airdri that aimed to expand in the
market of Spain so they have to raise funds from the various sources that have their own
advantages and disadvantages that are as follows:
Advantages:
The major advantage of bank loan that an individual or an organisation only need to
worry about the regular instalment on right time. This is the major advantage with overdraft that
an individual have to pay full amount when demanded by bank.
Disadvantages:
There are some kinds of disadvantages of Bank loan that hinders self interest of an
individual as well as organisation that strict requirements of some form of collateral, start ups
and existing businesses without any kind of assets found difficult to get the approval of loans
(Sharifi And et.al ., 2014.).
Overdraft:
Bank overdraft is an borrowing facility that attached with the bank account that set as an
agreed limit. It can be drawn at any time and most useful for the day to day expenses. So many
individuals and organisation use for their basic expenses with motive of managing the cash flow
of business to get competitive advantage in positive manner. In context of Airdri by using the
overdraft they raise the funds by at some extent only.
Advantages:
The main advantage of the overdraft that it is flexible in nature and it useful at time
which is cheaper than the loan.
Disadvantages:
Some disadvantages of overdraft that if an person arrange the facility of overdraft they
have to pay the urgent arrangement fee that are very much high. Bank also charge some fee if an
individual exceed the limit of overdraft without authority (Unkelbach And et.al ., 2014..).
Design a business plan for growth.
It is very much important for an organisation to plan and coordinate each and every
attribute to build one of best business plan. There are some important attributes of business plan
that are as follows;
the concept of business:

The main concept of business is to enlarge business opportunities by defined their
mission, vision and objectives. In context of Airdri they by coordinating attributes that are as
follows:
Organisational products and services:
in organisational products and services consist of the kinds of products and services that
they offer to their consumer base (Ziari and et. al., 2012). In order to Airdri their main product is
Hand dryers and they aimed to enlarge business opportunities in market of Spain.
Vision and mission of the business:
The major vision and mission of the business is to expand their products and services in
the market of other nation to remain always competitive in market-base. For that they aimed to
enlarge business opportunities in market of Spain by producing high techno oriented hair dryers
to get potential outcomes in positive manner.
Operational strategy:
To enlarge business opportunities it is very much potential for an organisation to give
customised experiences to consumers so that they remain always loyal towards organisational
products and services in positive manner.
Unique selling proposition:
USP is one of the most important aspect for an organisation by private capitalisation of
the assets in which products and services of the firm should be sold to other firm in 3 to 6 years.
Strategic objectives:
strategic objectives are very much important for an organisation to determine the goals
and objectives in positive manner that are as follows:
To produce one of best quality products and services to remain always competitive in the
market-base.
To enlarge business opportunities in the market by enhance the profitability 15% in upcoming 2
years.
Risk analysis:
While enlarge business opportunities organisation faces various kinds of risk that proved
harmful for organisation to remain always competitive in market-base. Some kinds of risk are
financial risk, risk of failure of project and many more (Young, 2013.). In that aspect Airdri

have to by using various standards such as Benchmarking, key performance indicator that helps
to eliminate factor of risk at maximum level.
Analysis of market:
To analyse the market organisation have to evaluate the own performance that give major
knowledge and information to get optimum outputs with help of SWOT analysis:
Strength:
The main strength of Airdri that they not have large market portfolio but they get
expertise in that single product.
Weaknesses:
The major weaknesses of Airdri that they sometimes fail to supply product and services
at appropriate time that shows ineffectiveness of their supply chain.
Opportunities:
The major opportunity in front of Airdri that they can enlarge business opportunities in
other markets too in which competition is low so they remain always in market.
Threats:
The main threat in front of Airdri that competitors of them have large product portfolio so
they are more efficient in the market.
Financial plan:

Assess exit or succession options for a small business.
For an organisation various kinds of exit or succession options that helps to determine the
business planning and their proper implementation to get optimum kinds of goals and objectives
that are as follows:
Voluntary/ compulsory winding up:
Winding up is an kind of process in which a company get dissolve and business ceases
their business as usual (Schetke, Haase and Kötter, 2012.). The main purpose of it is to sell off
stock, to pay off creditors and distribute remaining assets.
Advantages:
The main advantage of liquidation that after it company not liable to pay any kinds of
debts and mounting debt gradually become overwhelming.
Disadvantage:
While organisation get liquidated its assets and property sold to their creditors so that
they can recover their money from that property to get optimum kinds of outputs. It is very much
potential for an organisation to liquidate their procedures at appropriate time.
Merger and acquisition:

In M&A the tow companies get together that are more worthful in comparison than two
classified companies (Porter, 2012). It is an kind of combination of two firms that offers to their
shareholders firms security to acquire firm in exchange acquiescence of shares.
Advantages:
The main advantage of the M&A that firms can easily enter with their power and can
control over the whole market. They share the economies of scale by sharing the resources and
capabilities to enlarge business opportunities in positive manner.
disadvantage:
The major disadvantage is that sometimes it harms the experience of workers along with
workers in the leadership position that creates major loss of manpower skills and capabilities to
get desirable objectives. In context of Airdri in condition if they are not able to cope up with
emerging changes then they have to use M&A to remain always competitive in marketplace.
CONCLUSION
From the above report it has been concluded that for an organisation always planned and
execute the growth opportunities by examine each and every attribute in proper manner. With th
help of various tool and techniques such as Ansoff matrix, Pestel analysis can determine of best
opportunities in organisational context. With firm have to select one of best option to raise funds
so that potential outcomes should be achieved. Further they have to plan and accord with the
succession planning to get optimum kinds of output to remain always competitive in
marketplace.

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Online:
Ansoff Matrix 2019 [Online] Available through.
<https://getrevising.co.uk/grids/ansoffs_matrix>.
Project Management, project planning, templates and advice 2019 [Online] Available
through .<https://www.stakeholdermap.com/project-management/project-
funding.html>.
What is exit planning 2019 [Online]. Available through. <https://exitpromise.com/what-is-exit-
planning/>.