Planning for Growth - Analysis of Key Considerations, Growth Opportunities, Funding Sources and Business Plan for Airdri

Planning for growth

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1- Analysis of key considerations for evaluation of growth opportunities................................1
P2- Evaluation of growth opportunities with the help of Ansoff growth vector matrix..............2
M1- Justification of growth alternatives utilising various frameworks to showcase the
competing benefits in context to the organisational scenario......................................................4
D1- Measurement of growth alternatives along with the risks attached......................................4
TASK 2............................................................................................................................................4
P3- Potential sources of funding along with the benefits and drawbacks of the each method....4
M2- Assessment of prospective funding sources.........................................................................7
D2- Evaluation of possible funding options and selection of one as per requirements...............7
TASK 3............................................................................................................................................7
P4 – Designing a business plan for growth..................................................................................7
M3- Elaborated business plan for growth and investment collection........................................10
D3- Producing an in-depth business plan for formulation, application and achievement of
objectives...................................................................................................................................10
TASK 4..........................................................................................................................................10
P5- Assessing of exit and succession options for business operation about the benefits and
drawbacks..................................................................................................................................10
M4- Measurement of exit or succession choices.......................................................................11
D2- Effective judgement for exit or succession alternatives.....................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth is an important aspect for sustainability of each and every business
operation. Growth planning strategy facilitates the planning and recording of strategies related to
planning for growth. These strategies enable the business operation to fulfil their organisational
aims and objectives to be able to deal with competitors. This report highlights the company
Airdri, a UK based company dealing in manufacturing and supplying of hand dryers (Linnik and
et. al., 2020). The discussion also revolves around numerous growth opportunities along with the
implementation of an effective business plan strategy for the organisation to be on a competitive
edge.
TASK 1
P1- Analysis of key considerations for evaluation of growth opportunities
In recent times, it is crucial for a business operation to have high profit ratio which is
followed by appropriate growth measures by offering their products and services to their targeted
customers. The marketing manager of Airdri is required to evaluate the growth opportunities
along with the help of BCG and GE matrix. This analysis is explained as follows:
Boston consultancy group matrix
BCG matrix involves the use strategies for long term planning and knowledge about
market share and growth which depends upon the performances (whether high or low) of
products and services offered by the company (Globocnik, Faullant and Parastuty, 2020). The
potential of the product can be determined by BCG matrix analysis. The four quadrants of BCG
matrix is explained as follows:
Star product: The products included in this matrix have high growth and high share in
the marketplace because of its targeted customers. The company Airdri consists of a dryer
consisting of high sales ratio which mainly earns profit for the company (Brunetta and Caldarice,
2020).
Cash cows: This particular quadrant consists of products which have high market share
but a low market growth. The products at Airdri with the lowest innovation do not have much
market growth but they have a high share in the market (Papageorgiou, Petrakis, Ioannou and
Zagarelou, 2019). With continuous investments and appropriate innovations these products have
the potential to convert themselves into star products followed by high market growth.
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Question mark: This quadrant includes good which have low share but a high market
growth. The new inventions at Airdri will be considered question mark products. To be able to
convert themselves into star products, the company is required to perform promotional activities
for advertising the products to its targeted customers. These promotional activities will ensure
the enhancement of market share of the products at Airdri.
Dog: The products under this quadrant have low market share along with a low
possibility of future growth (Young, Rosenstiel and Henderson, 2020). The company Airdri, is
required to invest more money in this segment for converting these products into star and cash
cows products.
GE Matrix
This matrix is also called as nine grid cell matrix. This nine grid matrix depends on the
attractiveness and units of the product. The explanation about GE matrix is explained as follows:
Invest/Grow: The products which have high attractiveness along with high market of the
product. The organisation, Airdri, will invest more in products with high attractiveness and high
market share. The organisation will invest in these products to capture the market share.
Hold/Selective: This particular grid consists of business units which are least attractive
which explains their poor performance. The business organisation is required to convert these
units into star products for the capturing the marketplace. This can also be done by introducing
new innovations.
Harvest/divert: The units have poor performance in the marketplace due to lack of
attractiveness. The dog products of the BCG matrix of the business organisation Airdri will be
included in this grid (Linovski, 2019). Therefore, the company must not invest in these business
units for growth.
P2- Evaluation of growth opportunities with the help of Ansoff growth vector matrix
The Ansoff matrix, also called market growth matrix, which is considered an effective
tool for the investigation and evaluation of growth strategies in planning for growth of a
business.
Market penetration: The strategy for market penetration includes the use of strategies
which will help the company grow within the marketplace with their current products. The
manager of Aridri is required to make appropriate plans for enhancement of the market share and
profit. The manager of Aridri will lower the prices of current products along with promotion of
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