Planning For Growth

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).