Planning For Growth

This presentation discusses the importance of planning for growth in a systematic and effective manner. It explores key considerations for evaluating growth opportunities, options for growth, and the evaluation of specific options using strategic tools like Ansoff's matrix and Porter's generic model. The presentation also includes a SWOT analysis of Airdri Ltd and concludes with the significance of planning in implementing business activities.

Planning For Growth

Table of Content
• Introduction
• Key considerations for evaluating growth opportunities
• Evaluation of growth opportunities
• Options for growth
• Evaluation of specific options
• Conclusion

• Planning is the management process of think about activities needed for accomplishment
of specific and desired business objectives (Biddle and Taylor, 2018). It is important for
company's growth to plan each and everything in a systematic and effective manner.
Airdri Ltd. is a small scale enterprise of England, UK which provides hand dryer with
considering customer's comfort. Longevity, reducing noise, easy to use, low consumption
of energy are the services included in the product.
Introduction

With respect to identify key thoughts that have direct impact on
growth of Airdri Ltd, pestle analysis of UK is undertaken for
finding opportunities of company's successful expansion.
Affecting factors in development of organization are as under :
• Political: This factor consists of governmental stability, tax rate,
foreign policies, monopoly, labor laws and more.
Key considerations for evaluating growth
opportunities

• Economical :- Inflation, exchange rate, interest rate, employment etc. all stands for economic power
of a nation (Birkin, Clarke and Clarke, 2017). UK's diverse market, popularity as a preferred
destination for foreign direct investment, communicates the economic growth of the country.
• Social :- This factor consider population rate, income level, cultural differences, buying habits and
health consciousness of people, educational background etc. (Bridge and Dodds, 2018). increasing
population and income level of United kingdom's mankind rises the demand for more products.
CONTINUE….

• Technological :- Elements such as- producing products, distribution of goods & services,
use of internet and robotics included in technology factor. This affects organizational in
numerous ways.
• Legal :- Health and safety laws, consumer rights, competitive legislation, labor laws of a
country affects the business enterprises running within it.
CONTINUE….

• Environmental :- This factor considering weather and climate conditions, pollution, use
of water and energy resources, reducing the use carbon etc. (Gurumurthy, 2018). there
are various environmental laws of UK such as- climate change , pollution, wildlife laws
that affects the growth of company in certain ways:
Airdri can grow its business and build a strong brand image by avoiding use of carbon and
plastic in its products. This added an value in making country pollution free.
CONTINUE….

• Ansoff's matrix is a strategic tool used for planning
the future of organization which helps in successful
evaluation of best suited strategy (Honig and
Samuelsson, 2020). It is developed in 1965 by Igor
Ansoff to assist enterprises in entering into new
industry and expanding business into existing.
Evaluation of growth opportunities

In terms of finding the opportunities for future growth of Airdri Ltd four aspects of this
model are applied below :
 Market penetration :- It is the first and most important strategy of this matrix. When an
organization wants to introduce new products in their existing portfolio within well
known market then this is best strategy to use. In terms of respective firm can launch
hair dryer in order to attract new customers and retains old ones. This will helps to
increase market share of business and creates growth opportunities.
Continue…

 Market development :- When a company targets a new market for existing market this
strategy is best for apply. This is significant approach for expanding business into different
region. Airdri is to enter into different areas of UK with existing product which leads to
broad market size of business and build brand reputation. This saves the cost of
development of new products and goods and helps to attract new customers.
CONTINUE….

 Diversification :- It is the last but not least approach of Ansoff's growth vector matrix. This
strategy is applied when an organization wants to introduce a new product into a fresh market. In
context of Aridri can develop new product “hair dryer” and promote it in different areas of United
Kingdom so as to explore business and gain higher profits and market shares. This is costly but
effective strategy that brings higher growth of business.
CONTINUE….

• Here porter's generic model is used to identify the
growth options for Airdri Ltd in terms of getting
competitive advantages. This model helps the
organisation to analysing and understanding the
competition and choosing the best strategy for
gaining benefits over rivalries (Leick and Lang,
2018).
Options for growth

There are three major strategies of this discussed below :
Cost leadership : This strategy allows companies to set low prices for the products and
services for getting competitive benefits in respect to become lowest producer in the
industry. There are two ways for Airdri to apply cost leadership. In context of respective
business cost leadership helps to attain customers with satisfying their needs more so as
to grow business for future sustainability.
CONTINUE….

 Differentiation : It permits organization to differ its goods as compare to competitors.
Through producing unique and specific products or by launching modified features of
existing items added a value for company to enjoy aggressive advantages over challengers.
Based on differentiation Airdri uses beautiful designs with energy efficiency to suit every
washroom this makes it different form other players like Favite, Rite Track. This helps to
build effective brand image & goodwill within the market which creates huge awareness in
front of customers.
CONTINUE….

Focus : When company's focus is on its niche market this strategy best suited for the
situation. As per this approach business firms can focus only on cost leadership of
differentiation. Cost leadership allows enterprises to enjoy customer loyalty which increases
the sales. While, differentiation plays significant role in gaining competitive advantages
through setting high sales prices which lead to profit and revenues of firm. In context of
respective firm focus strategy helps to retain concentration on one strategy at a time so as to
gain higher possible benefits of each strategy. This will helps to sustain business for future
and helps to take beneficial results.
CONTINUE….

• Strengths • Weakness
Strength
• Use of renewable sources in its products.
• High brand image within then sector
• Effective quality of its products shows the strength of
respective firm.
Weaknesses
• Limited product portfolio reflects as the weakness of
respective business.
• Employee conflicts creates internal weakness of
Airdri.
Opportunities
• Due to lack of global presence respective business
has an opportunity to expand internationally.
• It has an opportunity to enhance brand in front of
local customers by lowering its prices.
Threats
• Increasing competition from local business
enterprises creates threat for respective organisation.
SWOT Analysis

• Risk is the uncertainty involved in application and implementing any strategy or activity
that affects the entire business of company (Papageorgiou and et. al., 2019). Possibility of
bad happenings considered as risk. If Airdri Ltd adopted the cost leadership strategy there
is a risk related to decreases of profits due to setting lower selling prices for its products.
Evaluation of specific options

It is summarized that planning plays vital role in implementation and application of
different activities of business. Pestle analysis performs significant role in analysing the
political, economical and other conditions for knowing the growth and expand opportunities
for company.
Conclusion

• Biddle, N. and Taylor, J., 2018. Indigenous population projections, 2006-31: Planning for
growth. Canberra, ACT: Centre for Aboriginal Economic Policy Research (CAEPR), The
Australian National University.
• Birkin, M., Clarke, G. and Clarke, M., 2017. Retail location planning in an era of multi-
channel growth. Routledge.
• Bridge, J. and Dodds, J.C., 2018. Planning and the Growth of the Firm. Routledge.
References

Thank you