Planning for Growth: Evaluating Opportunities and Funding Sources for Airdri

This report discusses growth opportunities and funding sources for Airdri, an exclusive hand dryer manufacturer in the UK. It evaluates key considerations for growth using BCG and GE matrix, analyses Ansoff growth vector matrix, and explores potential sources of funding with benefits and drawbacks. The recommended source of funding is venture capital, which provides more funds without claiming any right over the assets of the company.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Planning for growth is very crucial to develop strategies in order to access organisational
activities systematically. Appropriate planning and implementation is helpful to make
organisation benefits. It assist to make required changes to give a strong competition to rivals. In
this report, the selected company is Airdhri which offers exclusive hand dryers to citizens of UK.
A number of growth opportunities have been covered in this report to attain organisational goals.
MAIN BODY
P1 Evaluate key considerations to grab growth opportunities for the company
Recent market scenario demands business to grab opportunities to earn profit. In SME
company, growth opportunities need be evaluates. To evaluate the growth opportunities,
manager of the company is using BCG matrix and GE matrix to examine organisational growth
opportunities. It is already explained below:-
Bostan consultancy group matrix
BCG matrix is highly applicable to develop strategies and gather knowledge regarding
performance of manufactured products which relies upon market share and market growth of
organisation. It is very useful long term planning to make organisational benefits. Potential of
products is obtained with the approach of this matrix. This matrix consist of four quadrants
which are mentioned below:-
Star product: Company manufacture high share and high growth products in market to
earn benefits. Airdri manufacture exclusive dryers as a star products in order to make profit.
These exclusive dryers are manufactured according to customer requirements. Manufacturing
exclusive products assist to increase sale to make organisational benefits. Dryers are
manufactured with advanced technology to attract customers to buy products.
Cash cows: It coinsist products having low market growth with high market share. In
reference to Aidri, the organisation have highest market share with low innovation. The product
is being changed into star products with the help of continuos investment.
Question mark: It consist of services and goods, having high growth and low market
share. In reference of Aidri, the manufactured products have not introduced in a big market but
have some new innovations, are refereed as question mark. Promotional actvities need to be
conducted to conver question products into star products. Promotional activities are required to
1

make people aware of benefits of products. Performing promotional actvities is good to increase
market share.
Dogs: A dog product is considered as a product having low future growth and low market
share. In reference of Adiri deprive form one segment of business in order to invest in cow and
star products.
GE matrix: It is also called nine cell grid matrix. In reference of Adiri, the matrix is
applicable to analyse the attractiveness of the business unit in order to increase number of
customers. It is explained below:-
Invest/grow: High market product and industry attractiveness have been analysed under
this cell. In references to Airdri, company invest more into those products which have high
attractiveness and product market with the purpose to make profit. Company always look to
manufacture products which make profit.
Hold/selective: GE quadrant matrix consist of products with question mark which mean
products, attracts customer. These products are less active to capture the market. Company need
to introduce new innovations and invest more and more with the purpose to capture more market
to make profit (Farr and Bailey, 2019).
Harvest/divest: This includes segment of business which has least attractiveness and
poor performance. It includes dog products of BCG matrix and that is why organisation requires
to stop investing money with the purpose of growth.
P2 Analyse the opportunities for growth by using Ansoff growth vector matrix
The Ansoff growth vector matrix is also known as market growth matrix. It is considered
as a strategic tool to evaluate and invest strategy to implement for growth of the organisation.
Market penetration: Organisation apply strategies to penetrate the market which helps
company to grow with the help of manufactured products. In order to increase market share and
make profit, the manage of the company by lowering the cost price of manufactured products. In
reference of Airdri, company is performing promotional activities, putting advertising and
lowering cost prices to increase its market share. Company is making efforts to capture larger
position in the market. Organisation is manufacturing products to satisfy customer's needs. This
strategy will help company to have larger market share in such a competitive market where rivals
are also competeteing to acquire same market to increase their market share.
2

Product development: It is related to organisations, about to launch new products in the
market in the same market in which company is already leading. This strategy is applicable to
introduce new products in the market when organisation has already the suitable information to
meet with customer's needs and satisfy them to make organisational profit. People love to buy
products, acquire less space and easily accessible and thus company is also launching products as
per the need of customer's requirements to make profit (Saide and Sheng, 2021).
Market development: The strategy is associated with organisations who are planing for their
business expansion across the world. It is very useful for companies, planning to introduce their
products in local area and other nations. Company is continuously manufacturing and
introducing new products to capture a larger number of customer to make good market image
and make profits. Market is selected on the basis of preference of customers, taste and
demographic areas to make larger amount of profit. The selection of new markets also depends
upon the number of rivals already present in the market. Manager of the company examines the
current market scenario to expand the business. This analysis is based on the various factors
which effects the organisational activities. This factors are analysed to expand the business
effectively in order to make profit. Company can introduce its products into a international
market where people is looking for exclusive hand dryers. Company is planning to introduce its
products into a new market segment of UK due to Betrix economy to build business stronger to
capture new market.
Diversification: It is a strategies applicable to introduce a new product in the market
which company have not catered and dealt before. There are two types of diversification
including related diversification and unrelated diversification. The business launch new products
in new market in related diversification but the company introduce the products in the same
industry where as unrelated diversification is defined as diversification where company launches
a new product or service in new market. Market diversification strategies are implemented with
the purpose of capturing a new market and expanding business across the world. Company is
also about to launch a vacuum cleaner and air purifier as a innovative product in the market.
With the help of this strategy company will be able to attract customers towards the product with
the purpose to make profit. prevailing market is made for diversification research which help to
know about the customers needs and satisfaction.
3

As per the above discussion, it cab be analysed that company is developing and
implementing market strategies for the growth and expansion of the business. Airdri is
introducing new products in the market where the customers is demanding the product and
willingly paying to buy innovative and exclusive products. With the help of this strategies Airdri
can capture larger market which will help company to sustain in the market for a long period of
time.
M1 Opportunities for growth for Airdri to make organisational advantages
In order to make competitive advantage, company should adopt cost leadership strategy.
Company should make innovative and low cost products in order to make profit. It always helps
company to make capital for the further investments.
D1 Evaluation of the options with associated risks
It has been analysed that cost leadership strategies is helpful to make profit but rivals also
lower their cost price to attract customers to their products. Competitors also reduce their cost
price to make advantages. Market development strategies are also helpful to make money but has
a risk of meeting with the customers demands.
TASK 2
P3 Potential sources of funding for the businesses with benefits and drawbacks of each methods
All the organisational activities are effecting conducted to manufacture quality products
and services to with the purpose to offer these products to target organisational goals. Various
methods of funding is used to expand the business. Financial resources are very important to run
the business effectively. A number of methods are used as financial resources to expnd the
business. Sources used by Airdri to expand the business, are mentioned below:-
Internal source for finance:
it is defined as method for funding where funding is done internally which helps to
minimize the risk for the business. Internal sources consist of money generated form cash sales,
reinvestment of earned profits, sale of fixed assets and many others. Airdri make some
disadvantages and advantages with the help of internal resources.
Advantages Disadvantage
 This method assists the company to  It may hinder the daily cash need
4

have the power in control and does not
involves dilution of control.
 This source assist the organisation in
the in raising goodwill and planning
process.
 It assist company to reduce the
investment in overall project.
 It ensures safety for the company to
lose the control over the ownership and
also prevent any force which is
extrinsic.
availability in the existing business of
the company.
 As funds are less to pay to the creditors
the chances of bankruptcy enhances for
Airdri.
 This may result all the cash invested in
the market which makes company
cashless.
 In internal finance, no taxation rebate is
given.
External source of finance: The source is related with the fund generation by using extrinsic
activities. In order to arrange funds, company may use external financing to expand the business
along with suitable amount of cash. A number of methods used for external financing is
mentioned below:
Bank loan: Company can also get the loan sectioned from the bank at minimal interest. It
is considered as an agreement between person who takes loan and by whom loan is being
sanctioned. In order to arrange fund to expand the business Airdri is taking bank loan. There are
several advantages and disadvantages associated with the bank loan have described below:
Advantages Disadvantages
 For Airdri bank loan could be a best
means of finance which is quite
relevant for the company to cover the
losses which may have been
experienced by them in past. By
considering the amount of bank loan in
the working of the Airdri
administration can utilise these in
 On the other hand, Airdri should be
aware about the risk which are
associated with bank loans, as it
required some assets to be kept as
guarantee. Along with this company
have to start paying off the loan in the
form of instalment, which is followed
by certain amount of interest. This may
5

various ways to reach the profitability. rise the principal amount which has
been taken by Airdri as loan to fulfil the
activities in the business.
Crowd funding: In this method of funding, the finances are obtained in small amounts
from general public and investors of various sizes for the purpose of financially assisting the
business organisation. There are various different websites where crowdfunding as a source of
obtaining finance is utilised to fund the new venture and even promote the exclusive
entrepreneurial talents. The benefits and drawbacks of this are given below:
Benefits Drawbacks
 It is obtained with very less efforts to
be put by the business and the cost
involved to process this funding source
is nominal (Ozanne, Ballantine and
Mitchell, 2020).
 It is acquired by investors who are
positively affected by the products of
the business and want to invest in the
business to assist it in its future growth.
 Obtaining crowd funding is not easy
and hence is only accessible when the
products of the business are unique and
exclusive as per the prevalent markets
requirements.
 The business goodwill of Airdri can get
affected in a negative aspect if it fails to
impress the investors in the market for
generating crowdfunds.
Angel investors: financial support is giving to small scale business so they can earn large
profit. These investors are known as angel investors who assist small scale companies to grow.
There are several advantages and disadvantages associated with the investment, mentioned
below:
Advantages Disadvantages
 Assets of the company is not involved
ion this investment so there is no risk
associated with company's assets.
 It is not suitable for small businesses
because it is a method which involves
huge investment so .
 It is very tough to meet with angel
6

 Company only need to pay share the
profit. There is no need to pay the loan.
It is also beneficial with the financial
aspects.
investors because it creates barriers for
the organisational activities.
 The process of decision making can
become tough for the company because
Airdri may loose the hold over
proprietorship of their business.
In order to expand the business in the local market of UK, company can get sanctioned
their loan from bank. Airdri is an organisation, having enough amount of money to invest to
meet with the regular cash requirement. This help company to pay the bank instalment with the
help of planning appropriate financial strategies. Sanctioned bank loan will assist company to
expand the business and make profit (Mather, 2020).
M2 Evaluation and Justification for recommended source of fund
The most appropriate source of funding considered is venture capital. It is the most
suitable because it provides more funds in comparison to other investors. These investors do not
have any right over the assets of the company. Venture investors provides more funds to the
organisation where as angel investors claim for high return.
D2 Analysis of recommended source of fund in context of Airdri
In context of Airdri, venture capital is considered as the best source of investment. Airdri
is a very small scale up company and want to expand the business. Venture investor is best sorce
available for the company as per its financial requirements. Company need to develop strategies
with venture capitalist before the investment.
TASK 3
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business
Business planning consist of all the aims and objectives of the company need to be
targeted in a specific period of time. All the functional and strategic activities is summarised to
make a business plan. A business plan also includes financial planning and aspects of the
company with the purpose to expand the business to make profit.
Executive summary: Airdri is an organisation which manufactures advanced technology
hand dryers to meet with the customers requirements. It was introduced in the year 1974. the
7

founder of the company is Peter Allen and Peter phillips in UK. Both the founders are engineers
by their profession. The company always introduce innovative and exclusive products in order to
attract customers to their products. The company has introduced different range of dryers
including Quad, Quazar, Quartz, Quantum, Quarto, Quote and Quest. In order to enhance the
market share and goodwill company is planning to expand the business in local areas.
Vision: The organisation is expanding the business to enhance the number of customers.
Business expansion will help the company to increase the sale and availability of dryer in the
market.
Mission: Airdri is planning to have new outlets in the market to expand the business. Company
wants to expand the business in the market where rivals are not serving the same products.
Goals: The main of the company is to enhance the sale of products and offer standardised
products to customers to maintain a good market image. This will also help company to sustain
for a long period of time.
Objective : SMART objective are being planned by Airdri to expand the business,
S- Specific: In order to increase the goodwill, company is planning to increase the sale and
customer values.
M- measurable: Company wants to enhance sale by 15% and customer base by 205.
A- Attainable: Company provides appropriate training to the new joiners and old employees to
target the objectives.
R- Relevancy: Targetting these gaols will Airdri to increase the market share and goodwill.
T –Time bound: Company has a specific time to accomplish the objectives.
STP model: This model is applicable yo identify the part of the market in order to make more
profit. It is helpful for business to rectify part of the market which is captivating and profit giving
for the business of the company.
Segmentation: STP structure the market get separated into different parts under this
stage. On the basis of demographic, location and behavioural features, Airdri can separate the
segments. With the help of this partition, demand of every individual segment can be analysed
effectively (Ghaderi, King and Hall, 2021).
Targetting: Airdri will emphasise on all the strategies, help to develop and expand the
market. The company is trying to introduce joint venture from constructing building and owners
of malls, require hand dryers.
8

Positioning: The company wants to introduce products to new stores in order to attract
customers to the products.
Resource allocation: The activity is very crucial for growth and development of the
company.
Total estimated budget: It is very crucial to determine an approximate budget which
plays a significant role for the success and growth of the company.
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
M3 Detailed Business plan including strategies and vision of company for expansion of
business
Business plan refers to a brief explanation of mission and vision of all the required
business strategies. It includes aims and objectives, financial data, monitor all the organisational
activities. As per the adapted growth strategies, it includes mix strategies of organisation.
D3 Business Plan explaining the efforts of company to apply strategy in achieving the
objectives of the business
As per the size and suitability of the organisation and consider all the risk factors for the
company. Cost leadership and market strategies help business to sustain in the market against the
rivals and increase the profit. It also helps to increase the market share. Market mix strategies
help to monitor all the factors affecting the business.
9

P5 Evaluate succession or exit options to the business describing the benefits and drawback of
all.
Succession strategies is a process in which role of leader or owner is referred to different owner
or leader of some different firm. It is a very safe option to the firm to run with no any disturbance
as later any totally fledged experienced personnel left the organisation or when the firm is in the
requirement of any reconstruction (Yanuardani, 2018).
Succession planning Different approaches is described as under:
Acquisition: It is described as the activity in which one organisation is bought by another
organisation as segments or total purchase of stakes, through this the the buying organisation
achieves the decision making power of seller organisation. Purchase provides permission to the
acquitting organisation in order to make decision without any approval of the seller firm.
Advantages Disadvantages
 Increased credit value increases the
availability of financial resources.
 Trade restrictions can be removed in
order to get traditional market share.
 Because of the combination of the two
firm religion and cultural conflicts may
arise which might disturb the internal
working of the firm.
 The purchasing price is lead and high to
loss produce to acquisition fi
Merger: In order to achieve efficiency of financial capacities and business, this
procedure is used to merge the business of the organisation with another one. There are two types
of merger including horizontal and vertical. Horizontal merger deals with merging two business,
manufacturing same products where as vertical merger deals with merging two business with
different manufactured products. There are several advantages and disadvantage associated with
merger are given below:-
Pros Cons
 It helps to improve the
performance of the company
because of improvement in level of
production in economic measure
 This thing impact negative to the
company, because customer is not
satisfied with their products and
services
10

which occurs to create value over
cost to Airdri.
 It helps to increase the credit value
of the company, so that they are
able to achieve their become easy
for the company(Faisal, Albrecht
and Coetzee, 2020)
 This technique supports the
company to promote their brand
and increase their productivity thing
things assist the company to
compete in the market.

 It creates monopoly in the market
because of increment in market
share, which impact negative to the
customer buying behaviour.
 Merger can decrease the jobs in
Airdri due to boring jobs due to
which the knowledge employees
may be omitted.
Airdri can adopt acquisition with the purpose of expanding business into different
markets of UK. Acquisition assist company to utilise the available resources in order to make
profit. Company may utilise the resources according to planned efficiency and allocation.
Acquisition always assist company to meet with the customer's needs in order to satisfy them to
make more and more profit. Airdri is exploring new market and ways to attract customers
towards the manufactured products (Brandebo, 2020).
M4 Comparative Evaluation of Recommended Exit or Succession option
It is very important for organisation to select best and suitable succession or exit options
in order to make profit. Sale of the business has been analysed as most suitable exit option for the
company. For small business, merger is more suitable option to grab opportunities in order to run
the business successfully.
D4 Evaluation of the Justification of Recommended option to Merchant & Mills
Merger expansion is recommended to the Airdri with the purpose to attract more
customers to make profit. Business want to expand internationally, franchising is more suitable
option. In order to avoid legal and official formalities, sale of the business is more suitable to
make exit.
11

CONCLUSION
From the above report, it can be concluded that planning fro growth is very essential for
the growth and development of the company. Companies utilises BCG and GE matrix to grab the
opportunities for growth prevailing in the market. In order to rectify the opportunities to expand
the business, these approaches are very useful. Ansoff growth vector matrix is applicable to
develop and implement best strategies to expand the business to achieve the goals of the
company. Capturing more customers helps company to sustain in the market for a long period of
time. Company ensure the adherence of strategies to the plan to get the sustainability.
12

REFERENCES
Books and Journals
Brandebo, M.F., 2020. Destructive leadership in crisis management. Leadership & Organization
Development Journal, 41(4), pp.567-580.
Faisal, A., Albrecht, J.N. and Coetzee, W.J., 2020. Renegotiating organisational crisis
management in urban tourism: strategic imperatives of niche construction. International Journal
of Tourism Cities, 6(4), pp.885-905.
Farr, M. and Bailey, D., 2019. Uniting business continuity management and operational risk
management. Journal of business continuity & emergency planning, 12(4), pp.294-300.
Ghaderi, Z., King, B. and Hall, C.M., 2021. Crisis preparedness of hospitality managers:
evidence from Malaysia. Journal of Hospitality and Tourism Insights.
Halan, D., 2021. E-tailers adaptation during early stages of “social distancing causing crises”: an
exploratory study. International Journal of Retail & Distribution Management.
Laitinen, I. and Ihalainen, J., 2022. Organisational learning during the coronavirus pandemic: A
case study on models for extended learning and complexity management. Journal of Adult and
Continuing Education, p.14779714221079367.
Mather, P., 2020. Leadership and governance in a crisis: some reflections on COVID-19. Journal
of Accounting & Organizational Change.
Ozanne, L.K., Ballantine, P.W. and Mitchell, T., 2020. Investigating the methods and
effectiveness of crisis communication. Journal of Nonprofit & Public Sector Marketing, 32(4),
pp.379-405.
Saide, S. and Sheng, M.L., 2021. Knowledge exploration–exploitation and information
technology: crisis management of teaching–learning scenario in the COVID-19
outbreak. Technology Analysis & Strategic Management, 33(8), pp.927-942
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.
13

Yanuardani, M., 2018. Exploring Talent Management Potential in Digital-Savvy SMEs. The
Indonesian Journal of Development Planning. 2(2). pp.138-151.
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.
Brandebo, M.F., Ghaderi, Z., King, B. and Hall, C.M., 20212020Faisal, A., Albrecht, J.N. and
Coetzee, W.J., 2020Ghaderi, Z., King, B. and Hall, C.M., 2021Halan, D., 2021Laitinen,
I. and Ihalainen, J., 2022Mather, P., 2020Ozanne, L.K., Ballantine, P.W. and Mitchell,
T., 2020Peprah, J.A., Mensah, A.O. and Akosah, N.B., 2016Pike, B., 2017Pratono,
A.H., Ratih, R.V.S. and Arshad, D., 2018Smither, R., Houston, J. and McIntire, S.,
2016Tallon, P., Queiroz, M., Coltman, T.R. and Sharma, R., 2016Wang, H. and Lu, M.,
2016Yanuardani, M., 2018Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin,
A. and Dushnitsky, G., 2017
14

15