Planning For Growth

This report discusses the importance of growth planning for businesses and how it helps in adapting to changes and staying competitive. It analyzes key considerations for evaluating growth opportunities using BCG and GE matrix. It also evaluates growth opportunities using the Ansoff growth vector matrix. Additionally, it explores potential sources of funding for businesses and their benefits and drawbacks.

Planning For Growth

INTRODUCTION
Growth planning is important element for every business, it is a considerable strategy
which is helpful for the business in order to plan and record the proper planning. Growth
planning helps the business so that to adapt significant changes which is essential for the
organisation to deal with the competitors. The company taken for this report is Airdri which is a
manufacture of hand dryer and working in UK. This report includes the numerous growth
opportunities with business plan and succession option so that to get competitive edge in the
market.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities.
In the current business environment the business is needed to have high profit ratio and
appropriate growth by offering their product or service to the customers (D’Ambrosio and
Gianfrate, 2016). Growth opportunities in SME company is required to be evaluated for this
marketing manager of Airdri is examining those market opportunities with the help of BCG and
GE matrix, which are explained as under:
Bostan consultancy group matrix
BCG matrix is helpful in having long term planning over strategies and providing
knowledge about high and low performance of the product or services which is dependent on
market growth and market share hold by the company. This matrix is the approach by which
potential of the product can be obtained. BCG matrix is having four quadrants which are
explained as under:
Star product: These products includes which are having high growth and high share in
the market as by selling products to their customers. In context of Airdri star products includes
the type of dryer which is having high sales ratio and the dryer which earn the high profit for the
company. The top priority of Airdri is to maintain the quality of star products so that profits and
sales can be increased.
Cash cows: This quadrant includes the products which is having high market share but
low market growth. In the context of Airdri the products which are having lowest innovation but
still hold market share are included in this product (De Roo and Hillier, 2016). By providing

continuous investment and innovations the product can be converted into star product in order to
grow in the market.
Question mark: These products includes those goods and services which are having low
share in the market but having high growth. As in context of Airdri the products which are
having new inventions but currently did not capture big market are considered as question mark
product. For making question product a star product Airdri is required to perform promotional
activities in order to spread awareness so that to enhance market share of their product (Drover
and et. al., 2017).
Dogs: Under this quadrant the product which is having low market share and low future
growth is considered as dog product. In the context of Airdri the company will divest from these
segment in order to invest more money in star and cash cows product.
GE matrix: This matrix is called nine grid cell matrix that is totally dependent on product
attractiveness and business units. In Airdri this matrix is utilised in order to examine the
attractiveness of the industry and business unit. GE matrix is explained as follows:
Invest/grow: Under this cell high industry attractiveness and high market of product is
seen. In the context of Airdri this category includes those products which are having high
attractiveness and product market, so for this company will invest more in these kind of product
so that to capture market.
Hold/selective: This quadrant of GE matrix involves question mark product which shows
that the product is high in attractiveness but less active in capturing market. For capturing more
market and make the product a star product the company is required to invest and to introduce
new innovations.
Harvest/divest: This grid involves the those units of the business which is having poor
performance in the market due to least attractiveness. In the context of Airdri the dog products of
BCG matrix are included in this grid so the company should stop investing in this segment in
order to grow.
P2 Evaluate the growth opportunity by applying Ansoff growth vector matrix
The Ansoff growth vector matrix is better known as market growth matrix, that is
considered as a tool so that to used for investigating and evaluating strategy for growth of a
business (González-Uribe, 2020).

Market penetration: Strategy for market penetration is used by the companies which
wants to grow in the current market and with their current products. The manager of the
company make plans in order to enhance the market share and profit by penetrating the product
or service in the market by lowering prices. As in context or Airdri the manager is making
strategies to penetrate the market such as lowering prices, putting advertising and promotional
efforts and activities, in order to capture larger market size and position the offered services and
products by them in the minds of the customer. Further any rivals can also be acquired in the
same market so that to increase the market capture so that this will help Softwire to have larger
market share with the purpose to cater more customers with high profit earning ratio (Kim and
Kim, 2017).
Product development: This strategy is associated with those companies which are
planning to introduce some new product in the same industry in the same market in which they
are currently dealing. Under this strategy the new product is introduced when the company is
having appropriate knowledge about the emerging needs of the consumer and they are having an
innovative product so that to satisfy those neds of the customer. With the purpose of Airdri the
marketing manager plans to develop new products such as portable hair or hand dryer in order to
make the product compact so that to used by everyone in the market. In current market people
tend to buy those things which occupy less space and have huge utility so Airdri is planning to
develop product as according to the need of their target customers and earn profits.
Market development: This strategy of market expansion is related to those companies
which are planning to explore some new market in order to capture the market in a new nation or
local areas. As in this strategy company plans to enter in a new market segment with their
existing product so that to earn higher revenue by catering larger audience so that to get
sustainability in the business and competitive edge in the market. The new market is decided on
the basis of demographic areas, taste and preference of the customer about the product of the
services offered by the company and the number of rivals present in the market. For market
development the marketing manger of Airdri analyse the market on the basis or various factors
so that to make efficient market expansion plan. Airdri can enter in some global or local market
where the needs of the public is arising for their manufactured hand dryers. As due to Brexit
economy of UK is fluctuating so Aidri is planning to enter into some international market in
order to capture new market with stronger business.

Diversification: This strategy is related to those enterprises or business which are ready
to introduce a product in which they have not dealt before and in that market in which they have
not catered. This is of two type which is related diversification or unrelated diversification. In
related diversification the businesses explore new markets with new product but in the same
industry in which they are dealing. On the other hand unrelated diversification is classified as the
diversification where the business is planning to enter in the new market with a new product of a
different industry. This strategy of market diversification is adopted in order to capture newer
market with the help of newly introduced product. In the context of Airdri the company is
making plans in order to enter in the new market with some new product such as vacuum cleaner
or Air purifier. By this company is able to attract new customer in order to have more market
share so that to generate larger revenues for the company (Lampadarios, Kyriakidou and Smith,
2017). For diversification research of the prevailing market is to be made so that it is easy to get
to know about customer need so that to enter in the market.
As after the aforementioned discussion it is concluded that the Airdri is planning to use
market development strategy as their growth strategy. Under this strategy the company is
planning to enter in the local markets of UK, as the company is originated in UK so this will be
easy for the company to capture the new markets with their current products. As for this strategy
Airdri is planning to enter in that market where demand so their product is at peak and the
customer is willing to pay for their innovative product in the new market. By this Airdri is able
to get capture in other local markets as well due to which sustainability of the company will
increase.
TASK 2
P3 Potential sources of funding for the businesses with benefits and drawbacks of each methods.
Business are working for those economic activities which includes manufacturing goods
and providing services to the customers which exist in the target market so that to generate
revenue for the company. So for serving this intent the company requires funds and sources of
funding, in order to serve this purpose and develop expansion plan company uses several
methods to get funding (Yanuardani, 2018). In the process of funding numerous methods are
included such as internal source of financing and external source of financing. The method used
by Airdri in order to get funding for their market expansion is explained as under.

Internal source for finance:
This is referred as the method of fund raising in which the fund is raised from the internal
sources of the business which creates lesser risks for the business. Internal sources includes sale
of fixed assets, money generated from cash sales, reinvestment of earned profits etc. By taking
finance from internal sources Airdri will have some advantages and disadvantages which are
explained below:
Advantages Disadvantage
 This method provides Airdri the right
to uphold and perpetuate the control
and power in supervision of the
business (Lichfield, Kettle and
Whitbread, 2016).
 This source help the company in the
planning process and in raising
goodwill.
 This method assist Airdri to decrease
their total cost of overall projects.
 It provide safeguard to Airdri from
weakening control over ownership by
restricting any extrinsic force.
 It can hamper the availability of the
routine cash requirement in the
business of Airdri.
 The possibility of bankruptcy increases
for Airdri as funds are short to pay to
the creditors.
 This may lead to some of the
department stay lack of cash as all the
additional cash is invested in market
expansion.
 No taxation rebate is given in internal
finance.
External source of finance: This source is associated with generation of funds with the help of
some or other extrinsic operations or activities. Airdri can opt for external financing in order to
arrange funds,by this the company will be able to expand their market with the help of proper
availability of cash. Numerous methods of external financing is explained below:
Bank loan: Bank loan is an agreement between two party the one is the person or
company who has applied for the loan and other is bank itself with the consensus to pay the loan
amount is some pre decided instalments within the specified time limit. If Airdri is taking loan
from bank as a source then they may acknowledge with some advantages and disadvantages
which are explained as follows:

Advantages Disadvantages
 Bank loan is an inexpensive and
trustworthy method of finance, which is
helpful in capital loss for Airdri.
 It is a flexible method, as Airdri can
disburse the financed amount of money
in the areas which they want to.
 It creates adoption of proper financial
planning in Airdri as for the settlement
of instalments. So the company will be
able to plan their expenditure in order
to save money for instalment.
 It is a risky method as bank loan is
secured with some asset of Airdri so
non payment of the loan will be riskier
for the company's assets.
 The instalment are required to be paid
immediately after sanctioning of the
loans irrespective of the usage of the
financed money by Airdri.
 This may be difficult to pay instalments
by Airdri in the situation of
inappropriate cash flow.
Crowd funding: Under this method of financing small sum of money is gathered from
different and large size of investors in order to provide assistance to the newly established
business by the help of social media as mediator (Lin and Lin, 2016). So many websites are
operated in order to provide crowd funding to the new venture and to promote entrepreneurial
skills. Some advantages and disadvantages which are monitored by taking crowd funding loan in
Airdri are explained below:
Advantages Disadvantage
 This source of funding is generated by
applying less efforts and less cost of
processing.
 The crowd funding is obtained by those
investors which are interested in the
product or service of the company so
by this the investor can become the
client of the Airdri for long time during
the period of processing of crows
funding.
 Crowd funding is not easy to obtain, it
is obtained only in those cases when the
product or service is innovative and
unique as per the prevailing market
needs.
 The goodwill of Airdri can be
negatively influenced when the project
or product is not succeed in the market
for which crowdfunding is exercised.

Angel investors: When financial support is provided to tiny and small start ups by those
individuals which are having large net value in the market then this kind of assistance is called
angel investors. It is a single time investment, in which all the financial needs are covered which
is needed by the start-ups in their initial timings. By adopting Angel investment, Airdri may
come out with some advantages and disadvantages as well, which are explained as under:
Advantages Disadvantages
 In angel investors no risks are hold by
assets of Airdri as this doe not involve
asset mortgage.
 There is no requirement to repay the
loan as angel investors share a part in
the profits. So this reduces the loss of
capital for Airdri.
 As it is a method which involves huge
investment so it is not appropriate for
small businesses.
 For Airdri it is not easy to get an angel
investors so this may create troubles for
the business of them.
 Airdri may loose the hold over
proprietorship of their business, so the
process of decision making can become
tough for them.
Airdri can choose bank loan in order to get financing for their market expansion in the
local markets of UK. Airdri is a company which is having sufficient capital to meet up their daily
need of cash so they can pay the instalment of bank loan by having proper financial planning
over the business (Milošević, Mihajlović and Stojanović, 2019). Bank loan will help Airdri in
order to expand their business without any interventions, so they can disburse the loan amount in
the area where they require to. Bank loan will help them to have proper plans over their
expenditure as monthly instalment is required to be period.
TASK 3
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
A business plan includes all the objectives and achievement of the business which are to
be met within stipulated time period. Business plan is summarisation of all the strategic and
functional activities which a company is planning to follow for growth and expansion of the

business. Further a business plan includes aspects of the company and all the financial planning,
forecasting and budget preparation in order to the path of expansion.
Executive summary: Airdri is a company which deals in technological advanced hand
dryer. It was founded in 1974 by Peter Philipps and Peter Allen in UK, they both are engineers
by profession. Airdri is manufacturing hand dryers which is designed beautifully and saves
energy so that to accommodate every wash room. The company is introducing huge ranges of
Hand dryer on the basis of emerging demands of customers. The company is having seven
ranges of hand dryer such as Quantum, Quad, Quest, Quazar, Quote, Quarto and Quartz. Now
the company is planning to expand their business in some more markets of UK in order to make
their business stable in the local market and to enhance market share so as to increase goodwill.
Vision: The company is planning to expand their business so that to enhance customer
base and ease of the customer in order to availability of dryer in all the markets of UK.
Mission: Mission of Airdri is to open up new outlets in the other markets of UK where
they are not serving and to enhance approachability of the customer over their manufactured
products (Peprah, Mensah and Akosah, 2016).
Goals: Airdri is aiming to increase the sales by providing standardised products that
result into increase in customer value and brand image which can bring sustainability in the
business.
Objective:
Airdri is planning to have SMART objective for their market expansion:
S- Specific: The company is planning to enhance the sales and customer value in order to
increase goodwill.
M- measurable: the company wants to increase customer base by 205 and sales by 15%.
A- Attainable: For this objective company is providing training to the existing marketing staff
and recruiting new.
R- Relevancy: After attaining these goal Airdri will be able to enhance the goodwill and market
share.
T –Time bound: The company has planned to achieve these goals by the year 2022.
STP model: This is the model which is helpful for the company in order to identify the segment
which is most profit giving and captivating for the business of Airdri. This model assist the

company in order to position themselves so that they can earn high profits and apply all the
marketing strategies. Airdri is using STP model so that to recognise those segment of the market
in which they can develop their product.
Segmentation: Under this stage of STP framework the market gets divided into segments
which posses consistent qualities and needs in order to fulfil the need of target market in a
considerable manner. Airdri can divide segments of the market on the basis of demographic
location and behavioural features, by this demands of each and every segment can be determined
in an effectual manner (Pike, 2017).
Targetting: Airdri will focus all their marketing strategies on the local areas and they
will try to establish joint venture from owners of malls and construction building which are
needed hand dryers. This will help the company in targetting the market in a sequential manner.
Positioning: Airdri will try to place their product with the help of open up new stores so
that to make their hand dryer easily available for every customers. By this positioning manner
they will be able to provide their product to customers in the new segment without any obstacle.
Resource allocation: This activity is important as resources are allocated to each activity
of the business so that to get growth and success in the business.
Total estimated budget: This is necessary to set an approximation of budget which will play an
efficient role as determinative of all the expenses that are required for the coming project.
Particular 31/12/20 (£) 31/12/21 (£) 31/12/22 (£)
Implementing technology cost 11000 11000 12000
Promotional expense 10000 12000 13000
Installation of machines 15000 16000 15000
Shop expense 10000 12000 10000
Training charges 9800 10000 11000
Total Cost 55800 61000 61000

Cash flow statement: This statement is helpful in determination of flow rate of liquid funds in a
business that is a factor in analysing the financial position of the entity. Further a cash flow
statement includes the liquid outflow which are paid off by the company in lieu of liabilities or
investments.
From the above cash flow statement it is clearly concluded that Airdri is having
sufficient liquid funds present so that to pay of their liabilities and all recurring expenses, that is
helpful for the company in getting sustainability for the long term. The company is having cash
flow of $1300, $200, $7700 for the years 2023, 2022 and 2021 that truly reflects the appropriate
financial position of Airdri (Pratono, Ratih and Arshad, 2018).
Monitoring and controlling: In a business unit the process of monitoring and
controlling is required for having proper control and execution over market expansion plan. This
is to be evaluated that all the available resources are properly used in the business so that to get
maximum outlay in minimum cost. Airdri is using indicator of key performance in order to have
control over the project and to monitor the project so that to obtain the best quality to their
customer.

TASK 4
P5 Asses exit or succession options for the business explaining the benefits and drawback of
each.
Succession planning is a procedure under which role of owner and leader is transferred to
any other leader or owner of some other company. This is a safe conduct for the business to run
without any obstacle as after any full fledged experienced working personnel leaves the company
or when the business is in the need of any restoration (Smither, Houston and McIntire, 2016)(.
Various methods of succession planning is explained as under:
Acquisition: Acquisition is categorised as the activity where one company is purchased
by another company as part or full purchase of shares, by this the purchasing company gets the
power of decision making of seller company. Acquisition give permission to the purchasing
company in order to take decisions without taking approval of seller company.
Advantages Disadvantage
 This help the business in order to get
more competence in the market by
acquiring new resources.
 This lead to fast expansion and
broadening of the business which
makes the financial position of Airdri
more sound.
 This insert new competent human
resource team due to which new
expertise get into the business of Airdri.
 By the introduction of new workforce
in the business new ideas comes into
Airdri which make the expansion easier
and innovative.
 The acquisition cost is high and lead to
loss generation to purchasing company.
 Due to combination of two companies
cultural and religion conflicts may arise
which may hamper the internal working
of the company.
 As after incorporation of two or more
companies into one the cost of running
may increase for Airdri.
Merger: It is a procedure under which one business is integrated in the business of
another company in order to enhance efficiency of the business and financial capacities. Merger

is of two type horizontal and vertical. Under horizontal merger the two businesses are merged of
same product line or industry and in vertical merger businesses having different product line or
industry merged together. Some advantages and disadvantages of merger is shown as below:
Advantages Disadvantages
 Due to enhancement in level of
production economies to scale occurs
so which can create benefit over cost to
Airdri.
 Due to increase in credit value of the
company the financial resources
availability become easy for the
company Tallon and et. al., 2016).
 This helps in order to get an
international market share so that the
trade restrictions can be removed.
 This is helpful of having competitive
edge in the global and local market as
well for Airdri, which is helpful in
enhancing goodwill and customer value
at global and local level.
 If merger is vertical then the customer's
negative attitude towards the company
can hamper the goodwill and profits if
the company.
 This generate a monopoly market due
to increment in market share, which
impact the customer buying power
because the companies become price
maker.
 Merger can reduce the jobs in Airdri
due to repetitive jobs due to which the
expertise employees may be
disregarded.
Airdri may opt for option of Acquisition in order to expand their product in the new
market. Acquisition may provide assistance to Airdri so that to use their resources as per the
planned efficiency and allocation, this will help them in enhancing customer capture and brand
value with higher profits and higher goodwill. Acquisition may help the company to satisfy the
needs of their customer as new ways and new markets can be explored by Airdri in order to
attract new customers.

CONCLUSION
From the above detailed report it can be deduced that growth planning is necessary for
success of the organisation. With the help of BCG and GE matrix the growth opportunities
prevailing in the market can be recognised. These approaches are helpful in identifying the profit
and ways for business expansion (Wang and Lu, 2016). The Ansoff growth vector matrix is
helpful in selecting the best strategy for the expansion plan so that to earn more profits and
market share. Further after recognising expansion plan sources of arrangement of funds is
recognised in order to develop a market plan so that to make all the marketing strategies adhered
to the plan. At last succession option is given which help the business to get new heights in the
market by capturing more customer and getting market sustainability

REFERENCES
Books and journals
D’Ambrosio, M. and Gianfrate, G., 2016. Crowdfunding and Venture Capital: Substitutes or
Complements?. The Journal of Private Equity. 20(1). pp.7-20.
De Roo, G. and Hillier, J., 2016. Complexity and planning: Systems, assemblages and
simulations. Routledge.
Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A. and Dushnitsky, G., 2017. A
review and road map of entrepreneurial equity financing research: venture capital,
corporate venture capital, angel investment, crowdfunding, and accelerators. Journal of
management. 43(6). pp.1820-1853.
González-Uribe, J., 2020. Exchanges of innovation resources inside venture capital portfolios.
Journal of Financial Economics. 135(1). pp.144-168.
Kim, K.W. and Kim, M.S., 2017. An Empirical Analysis of Influence of Corporate
Entrepreneurship on Business Performance from the Viewpoint of SMEs' Growth. Asia-
Pacific Journal of Business Venturing and Entrepreneurship. 12(5). pp.13-28.
Lampadarios, E., Kyriakidou, N. and Smith, G., 2017. Towards a new framework for SMEs
success: a literature review. International Journal of Business and Globalisation.18(2).
pp.194-232.
Lichfield, N., Kettle, P. and Whitbread, M., 2016. Evaluation in the Planning Process: The
Urban and Regional Planning Series(Vol. 10). Elsevier.
Lin, F.J. and Lin, Y.H., 2016. The effect of network relationship on the performance of SMEs.
Journal of Business Research.69(5). pp.1780-1784.
Milošević, I., Mihajlović, I. and Stojanović, A., 2019. Dominant factors of SMEs failure-
multigroup confirmatory factor analysis. Serbian Journal of Management. 14(2), p.345.
Peprah, J.A., Mensah, A.O. and Akosah, N.B., 2016. Small and medium sized enterprises
(SMEs) accessibility to public procurement: SMEs entity perspective in Ghana.
European Journal of Business and Social Sciences.4(11). pp.25-40.
Pike, B., 2017. Mergers: What ethical leaders can do to help ensure success. The Siegel Institute
Journal of Applied Ethics. 4(1). p.1.
Pratono, A.H., Ratih, R.V.S. and Arshad, D., 2018. Does entrepreneurial autonomy foster SME
growth under technological turbulence? The empirical evidence from Indonesia.Journal
of Technology in Behavioral Science. 3(3). pp.170-178.
Smither, R., Houston, J. and McIntire, S., 2016. Organization development: Strategies for
changing environments. Routledge.
Tallon, P., Queiroz, M., Coltman, T.R. and Sharma, R., 2016. Business process and information
technology alignment: construct conceptualization, empirical illustration, and directions
for future research. Journal of the Association for Information Systems. 17(9). p.3.
Wang, H. and Lu, M., 2016. China goes global: The impact of Chinese overseas investment on
its business enterprises. Springer.
Yanuardani, M., 2018. Exploring Talent Management Potential in Digital-Savvy SMEs. The
Indonesian Journal of Development Planning. 2(2). pp.138-151.