Planning for Growth

PLANNING FOR
GROWTH

INTRODUCTION
Planning brings changes in the business and it looks so important for the business plan.
Planning helps in the connote of growing a business. It focuses on the business goals and
detailed information about the organisation. Preparation mention to the evolution of plan of
action, classification of goals and assumptions of cognitive state (Wynn, 2017). It is an
intellectual process which describes the objectives and build various course of action. Small and
medium enterprises are those companies who have fewer employees and share less market.
Small businesses is a concept of sole trade, start-ups etc. Purpose of these business is to survive
in the market with their strategies and initiatives. Generally, those organisations are considered
as a small business who have 500 or less than 500 employees according to Small Business
Administration (SBA). Airdri is one of the 100 successful businesses in Thames valley which
deals in hand dryers and elevator door detection and situated in Witney, UK. This projection
report consist different subject such as Porter's generic strategic model, PESTLE analysis,
Ansoff's growth vector matrix and origins of financial support etc. Business plan for maturation
which includes elaborated content and strategical impersonal for business and derivative for
successiveness or exit for small businesses with welfare and disadvantage.
TASK 1
P1. Analysis of key considerations for evaluating business growth opportunities and justification
of these considerations
Generally, companies use strategic plans for growth and these are in the form of written
document which is used to communicate goals with employees (Kumar, 2016). To gain the
competitive advantage Airdri can consider various strategic models. This model determines the
profitability of company in the sustainable environment. To analyse the competitive advantages
company can use Porter's Generic Strategic Model.
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(Source: Porter's Generic Strategies, 2019)
Porter's Generic Model: This model is related to the business actions and describe that they are
narrow or broad. Competitive advantages are owned by business over competitors by
contributing goodness and services at lower prices to customers (Kouba, 2017). When company
applies these strategies in product development then this result in three generic plan of action:
Cost Leadership: This strategy involves that being a leader in business environment by
cost fluctuation by which firm will become lowest producer (Denton, Forsyth and MacLennan,
2017). In this company target broad market and offer lowest price. Company keeps cost low as
much as possible and make sure that they will acquire large market within the average prices.
Airdri adopt this strategy by cutting down its production cost. In this company has two options,
either they can set high prices to earn profit or low prices to acquire market. There are various
ways by which company can adopt this strategy such as optimum outsourcing of goods, produce
innovative products at low cost etc.
Differentiation Strategy: It allows firm to be different and unique by creating attractive
and different products in comparison to its competitors (Sarin, 2019). To get success using this
strategy requires good creativity, by doing research of market segments and ability to deliver
high quality products. Uniqueness allows firm to change its premium price for their ideas,
innovation and company can develop its customer base as customers does not shift to substitute
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Illustration 1: Porter's Generic Strategies