Planning for Growth in SMEs: Key Considerations, Growth Opportunities, Funding Sources, and Succession Options

This report discusses growth planning for SMEs, examining key considerations for assessing different growth opportunities, analysing growth opportunities by applying Ansoff growth vector matrix, potential business funding sources with their advantages and disadvantages, and assessing succession and exit options. The report focuses on Airdri, a UK-based manufacturer of hand dryers, and includes strategies for market penetration, product development, market development, and diversification. The report also discusses internal and external sources of financing, including bank loans and crowd funding.

Planning for Growth

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Examine key considerations for assessing different growth opportunities...........................3
P2) Analyse growth opportunities by applying Ansoff growth vector matrix.............................5
TASK 2 ...........................................................................................................................................7
P3) Potential business funding sources with their advantages and disadvantages......................7
TASK 3............................................................................................................................................9
P4) Frame a strategy to promote growth involving objectives of plan and financial information
for growing up a business............................................................................................................9
TASK 4..........................................................................................................................................12
P5) Assess succession and exit options for the business explaining the drawback and benefits
of the each..................................................................................................................................12
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Growth planning is crucial component for every business, which is detailed as strategic
business associated activities that enables business owners and leaders to plan and keep a track in
their revenue. This allows business to assign their limited resources toward a centred effort to
adapt to alterations in the organisation and distinguish from other competitors within the
business world. Growth planning aids in making plan and record their proper planning for
business growth and fecundity. Growth planning aids business to adapt crucial alterations that is
essential for organisational growth and their further dealings with their competitors. The
organisation considered for this report is Airdri which chiefly manufactures hand dryers and is
established in UK. This report comprises various growth opportunities associated with business
plan and succession choices to acquire competitive edge in the market (Adam and et. al., 2020).
TASK 1
P1) Examine key considerations for assessing different growth opportunities
In the present business scenario, the business is required to have high fecundity and
appropriate offerings and related services to consumers that is associated with organisational
growth. Growth opportunities in SME organisation is required to have assessed for the manager
of the marketing of Airdri. Airdri is assessing and analysing the business market opportunities
with the aid of BCG and GE matrix, and they are discussed as under:
Bostan Consultancy group matrix:
BCG matrix aids in acquiring elongated planning over strategies and giving efficient
knowledge about the product performances that is totally dependent on the market growth and
share hold by the organisation. This matrix is a significant approach that has potentials of the
product and further can be achieved. BCG matrix encompasses four division and they are
discussed as under:
Star product: This product mainly comprises products those have high growth and share
within the business market by selling the products to their consumers (Allaix and et. al., 2021).
With regards to Airdri, star products comprises the type of hand dryer that has high sales ratio
within the business market. In addition, it is considerable that the organisation earns high
fecundity for the organisation. The top precedence of Airdri is to hold up top quality products so
that the fecundity can be enhanced and sales can be inclined.

Cash cows: This division details about product having high share of market and low
market growth. With regards to Airdri, the products that are less innovative and creative but still
holds market share are majorly included in this division. Continuous aid in the investment and
innovations to products, the products can be converted in star product to grow their business
market.
Question mark: This division involves products that includes good and services which
holds low market share but having high growth. With regards to Airdri, the products are having
new innovative and creativity to their products but does not grow or hold up position in the big
market are majorly recognised as question mark products. To make the question product a star or
top product, Airdri is required to execute promotional activities and other plan of action to spread
awareness to elevate market share of their product.
Dogs: Under this division, the products that holds low market share and low future
growth is chiefly recognised as dog product (AYBEK, 2020). With regards to Airdri, the
organisation will chiefly hold a position in divesting from these components to invest more on
the star and cash cows products.
GE matrix: This matrix is considered as the nine grid cell matrix that totally depends on the
innovation, creativeness and attractiveness of the product and the respective business unit. In
Airdri, this matrix is utilised to assess the very attractiveness of the organisation and the business
unit. GE matrix is discussed as under:
Invest/grow: This cell includes high organisational attractiveness and raised product
market. With regards to Airdri, this cell includes products that holds attractiveness and product
market. In addition, the organisation will include investing more in these products that will aid in
capturing business market.
Hold/selective: This GE matrix division includes question mark product that majorly
demonstrates that the product holds attractiveness but are less efficient in capturing market base.
To accomplish capturing of more market and designing a star products, the organisation needs to
invest more and bring forth new innovations and ideologies to their products.
Harvest/divest: This grid comprises business units that has poor market performance in
market due to less attractiveness in the product (Bondarenko and et. al., 2021). With regards to
Airdri, the dog product is encompassed in this grid so that the organisation stops to invest more
in this segment to grow.

P2) Analyse growth opportunities by applying Ansoff growth vector matrix
The Ansoff growth vector matrix can be chiefly considered as the market growth matrix
which is a tool utilised for investigating and assessing the major strategy for business growth.
Market penetration: Organisation utilise strategies for market penetration and desires to
grow more within the present business market and with their effective current products. The
manager of the organisation majorly frames plans to incline the market share and fecundity by
penetrating market by lowering their product and service's prices. With regards to Airdri, the
manager is framing organised strategies to penetrate the market by lowering the product's prices,
putting efforts in advertising and promotional efforts and associated action plans to capture huge
market base and positioning their offerings of product and services to consumers.
Product development: The organisation holds strategies those are planning to introduce
their new innovative product within the same organisation and market where they presently hold
dealings with. This strategy bring forth new products when the organisation is known of the
emerging consumer needs and requirements (Chen and et. al., 2022). The organisation has
innovative products and services to satisfy the very needs of the consumer. With regards to
Airdri, the marketing manager decides to design new innovative products such as portable hair
or hand dryer to make the product compact that could be utilised by the consumer. In present
market, consumers tends to purchase such things to which would occupy less space and have
high utility. Hence, Aridri is planning to design their product as according to the requirements of
their target consumer base and to accomplish their organisational fecundity.
Market development: This market expansion strategy chiefly details organisations who
are exploring to capture new market base in some new origin or other local regions. This strategy
majorly details about entering new market segments accompanied with tier existing products and
services. In addition, this is planned to accomplish more consumer base and earn higher revenue
with larger audience to acquire business sustainability and mark business edge within the market.
The new market is basically based on several basis and they include demographic area, taste and
other consumer preferences (Coskun and et. al., 2018). For the organisational development and
growth, the manager of Airdri, assesses business market on the various factors make an efficient
plan of market expansion. Airdri can enhance their market base by entering into some local or
global market where consumers needs is arising for their manufactured hand dryers. Due to

Brexit economy fluctuation within the nation, Airdri is planning to put in efforts in entering into
global market to capture new market with stronger business market.
Diversification: This strategy is mainly associated with those organisations that are
ready to introduce their new innovated product which was not bring forth in the business market
before and they have not dealt with and also they have catered before. This is majorly divided
into two types and they include related diversification and unrelated diversification. With related
diversification, the business mainly explores new markets and their market with new product and
but within the same organisation into which they are dealing with. On the contrary, unrelated
diversification is mainly classified as diversification where business planning is made to get into
the new market with innovated new product and of other organisation (Gumel, 2019). This
market strategy diversification is adopted to accomplish some new market base and also to aid
new innovated product. With regards to Airdri, the organisation is mainly plotting plans to get
into the new market with some new inno0vative product such as vacuum cleaner or Air Purifier.
With this, the organisation will be able to attract new consumer base and to foster their market
fecundity with effective market share within the market business. In addition, this will aid the
organisation in generating new market revenues that would foster the organisational growth and
business development. For diversification, investigation of the prevailing market is to be framed
to it is easy to analyse the needs and requirements of the consumers.
After the aforementioned discussion it is conferred that Airdri is planning to utilise their
market strategies associated with market development as their growth strategy. With this
strategy, the organisation is planning to get into local markets within the nation that is UK. In
addition, as the organisation is based in UK, this will be easy for them to capture new markets
for their present products and services (Guyader and Piscicelli, 2019). To accomplish this
strategy, Airdri is plotting out to get into the market where the product demand is at peak and
consumer is majorly willing to pay for the innovative product that will be produced within the
market. This will foster the organisation to capture local markets and this will incline the
organisational sustainability and fecundity.

TASK 2
P3) Potential business funding sources with their advantages and disadvantages
Business is detailed as an organisation which is chiefly engaged in the commercial and
other professional activities. Business mainly works for the economic activities that involves
product manufacturing and providing services to their efficient consumers that exist in the target
market to make revenue for the organisation. To accomplish this intent the organisation mainly
requires funds and sources for funding (Kukartsev and et. al., 2019). To develop plan of
expansion and serve the very purpose, organisation utilises several measures to accomplish
funding. This funding process encompasses numerous measures such as internal and external
financing sources. The method used by Airdri to accomplish for their funding for their market
expansion is discussed as under:
Internal source of funding
This method raises fund from the internal source of organisational business and fosters in
creating less risks for their business (McCall, 2021). Internal sources of financing majorly
includes sale of fixed assets, associate money that is generated from the cash sales, divest of
earned fecundity. By taking finances from internal sources of financing, Airdri will accomplish
major advantages and disadvantages which are discussed as under:
Advantages Disadvantage
 This method will efficiently provide
Airdri, the right to uphold and carry on
the power in oversighting the business.
 This source aids in the organisation in
amending effective plans for the
fecundity and planning process and
inclining the goodwill.
 This method majorly assists Airdri to
decline the organisational total cost
(Park and LaFrombois, 2019).
 This can hamper the need of
availability of routine cash within the
business of Airdri.
 There is no provision for taxation
rebate.
External source of finance:

This source of financing is detailed with fund generation by the aid of some or the other
extrinsic factors of activities or operations. Airdri can efficiently opt for external financing to
majorly set up funds. In addition, this will aid the organisation in expansion of their market
within with effective help of proper cash availability. Some of the external financing methods are
discussed as under:
Bank loan: Bank loan is an agreement between two efficient assets, the on is the person
or the organisation and they have efficient applied for the loan. And the opther one is the bank
itself where it is pre decided that the loan will be paid at the given time with interest applied or
paid in instalments within the specified time limit. If the organisation, Airdri is taking any loan
from the bank as their source, then the organisation may acknowledge with major advantages
and disadvantages and they are discussed as under:
Advantages Disadvantages
 Bank loan is considered as very
inexpensive and trustworthy finance
methodology which efficiently aid in
asset and loss of capital for the
organisation Airdri.
 This is considered as a flexible method
and the organisation Airdri can invest
their capital wherever they want to
invest 9Sukma and et. al., 2019).
 This majorly creates the base of proper
financial planning within the Airdri.
 This can be sometimes a risky method
as bank loan is safeguarded with some
asset of the organisation Airdri.
 This may be difficult to pay instalments
when there will be issuances in
insufficient cash flow.
Crowd funding: This financing method is small sum of capital that is collected from
huge investors to aid them with assistance to their newly established business with the help of
other digital media advertising as a mediator. There are advantages and disadvantages which is
examined by acquiring funding loan within Airdri, and they are discussed as under:
Advantages Disadvantage
 This funding source is majorly put in  Crowd funding is generally not easy to

by applying very little efforts and
processing low cost.
 The crowd funding is majorly
accomplished with such investors who
shows interest in their product or
services of the organisation. This will
aid in becoming a client for prolonged
time in Airdri.
acquire.
 Airdri's goodwill can be negatively
impacted through this project and
failure of the product and services can
also be faced by the organisation.
Angel investors: When financial aid is provided to small startups by individuals and
have large net value within the business market then such kind of assistance is known as angel
investor. By adopting this method, Airdri can come up with major advantages and disadvantages,
which are discussed as under:
Advantages Disadvantages
 Airdri will hold no risk in this
methodology.
 And there as such no need pof repaying
loan as angel investors majorly shares a
part in fecundity 9Sukma and et. al.,
2019)
 (Yu, 2019).
 This is not suitable for small businesses
as this methodology involves large
businesses.
 Airdri will not be able to accomplish
the angel investor provision easily.
Airdri can opt for bank loan and get their financing for expanding their market and that
would aid in the huge fecundity of the organisation in UK. This organisation has loads of capital
to accomplish their daily needs of cash to pay their instalments of bank loan by maintaining
proper financial strategies. Bank loan can efficiently have proper plans over their expenses to
incline their fecundity and monthly instalments repayments.

TASK 3
P4) Frame a strategy to promote growth involving objectives of plan and financial information
for growing up a business
It is important to meet all achievements on a stipulated period of time. Business planning
is the sum of functional and strategic activities which a company needs to be followed in a
sequential manner to promote growth of a business. Here a business is discussed with the
intention to expand the business.
Executive summary: Airdri company focus to bring technologically advanced hand
dryers in market which are designed to accommodate in wash rooms of malls, restaurants, and
hotels (Jensen and Creinin, 2020). Airdri hand dryers are having a beautiful designs and works in
energy saving mode. This company has introduced almost seven ranges oh hand dryers in
different range. This strategy can help the company to expand their business effectively.
Vision: The company has a vision of increasing customer demand and provide ease to
customer by availing dryers in all local market in UK.
Mission: Airdri company is on a mission to open up new outlets by covering other
markets in UK to increase their approach to the customers.
Goals: Airdri company aims to enhance their sales by making customer trust and
providing them, standard quality hand dryers which helps to promote brand image and increase
customer value throughout the business (Sell and et. al., 2018).
Objective:
Airdri adopted a SMART objective to expand their market:
S- Specific: The company plans to increase customer value to increase goodwill of their product.
M- Measurable: The company increases the customer base by 205 and sales by 15%.
A- Attainable: The company aims to provide appropriate training to marketing staff.
R- Relevancy: Airtdri will be able to enhance sales, customer value, market share, and goodwill
of company.
T- Time bound: The company has planned to achieve the predetermined goals till the mid of
2023.
STP model: This model is helpful for the company to address most profit giving segment of the
business. This model helps the Airdri to position themselves in a profit earning atmosphere.

Airdri prefer to adopt for STP Model to identify for the segments which can be be helpful in
developing the product.
Segmentation: In this STP segment the market is segmented into different divisions to
identify considerable qualities and needs which can fulfil the needs of the target market. Airdri
divides the market in demographic location and behavioural features.
Targeting: Airdri consider all existing marketing strategies and focus to establish joint
venture from owners of mall and under construction building which need to install hand dryers in
their property. This helps the company to target the market (Bondarenko and et. al., 2021).
Positioning: Airdri focus to open new outlets to avail their hand dryers in all market for
the customers.
Resource allocation: In this resource are allocated during each business activity to
achieve growth and success in the business.
Total estimated budget: This budget estimation helps to estimate all the expenses that are
required to establish the upcoming project in an effective way.
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
Total Cost 55800 61000 61000
Cash flow statement: This statement helps to determine the rate of flow of liquid funds within a
business which helps to analyse the actual financial position of the organisation. Additionally it
helps to determine the amount of money paid by company in form of investment and liabilities.

From the above statement it can be analysed that Airdri have sufficient liquid funds to
pay for their expenses and liabilities that can help company to sustain for a long run (Ghee,
2022). The company deals with the cash flow of $1300, $200, and $7700 for the years 2023,
2022, and 2021 that clearly reflects the stable and strong financial position of Airdri.
Monitoring and controlling: This factor helps in execute and control the strategies of
expansion over market. This helps to analyse the available resources used in the business. Airdri
prefer to adopt fir indicator of key performance to monitor and control the project in order to
provide quality to customers.
TASK 4
P5) Assess succession and exit options for the business explaining the drawback and benefits of
the each
Under succession planning role of a owner is transferred to the owner of another
company. This is supposed to be a safe conduct for the business to ensure smooth running
without any hurdles. Various succession method are discussed below-

Acquisition: In this activity, one company is purchased by another firm by purchasing
their partial or complete shares. Through this purchasing company acquires the decision-making
power of selling company.
Advantages Disadvantages
 Business get more competence in the
market by acquiring new resources.
 Acquisition helps the company to
expand and promote their growth
rapidly.
 New recruited human resource team
gives expertise to Airdri fro expansion.
 Recruitment of new workforce within
the company helps the business to
expand their reach through new, unique
and innovative ideas.
 The high acquisition rate results to bear
loss to purchasing company (O’Donnell
and Dahl-Popolizio, 2018).
 Merging of two companies may have
some religion and cultural disputes
which may impacts the internal and
working environment of Airdri.
Meger: In this procedure one business incorporated into business of another company
which helps to improve efficiency and financial capacity of company. Merger succession
planning consist of two types including; Vertical and horizontal. In vertical merger two different
industry incorporated together while in Horizontal merger business; two similar products or
industry get merged.
Advantages Disadvantages
 Enhanced production level increase
economical scale which can provide
benefits to Airdri.
 Increase credit value of company
facilitates the business to avail
sufficient financial resources.
 This helps to facilitate easy trade at
international level and provide
 Increment in market share leads the
merger planning to generate a
monopoly market. It impacts the
customer reach to a particular brand as
company itself become the price maker.
 Merger strategy can leads to reduce the
jobs on Airdri due to repetitive jobs.

opportunity to get international market
share.
Airdri is recommended to choose fro Acquisition option to expand business reach in a
new market. Acquisition may assist Airdri to use resources efficiently which helps the company
to increase customer base and set high brand values with good profits and higher goodwill.
Acquisition strategy will proved to be helpful for the business by providing satisfaction to the
customers along with opportunity to explore new market and attract new customer base towards
the brand (Abdullah, 2020).

CONCLUSION
From above report it can be concluded that proper planning to growth and expand the
business is a key to establish a successful business. With assistance of GE and BCG matrix, it is
possible to determine the existing growth opportunities in the market. These approaches are
beneficial in determining the effective ways and related profits in expanding business. Along
with Ansoff growth vector matrix one can opt for best possible strategy to bring best expansion
planning. Furthermore, funding sources are recognised to develop a marketing plan to make all
marketing strategies adhered to the plan. Then succession options are discussed which assist the
company to achieve more customer base and getting market sustainability.

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