Planning for Growth: Evaluation of Growth Opportunities and Funding Sources

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluation of growth opportunity in macro environment.....................................................1
P2 Evaluation of growth opportunities in context with Ansoff Matrix model...........................3
TASK 2............................................................................................................................................5
P3 Identification of source of funding for business....................................................................5
TASK 3............................................................................................................................................6
P4 Suggestion of a new business plan........................................................................................6
TASK 4............................................................................................................................................9
P5 Assessment of various exit and succession options...............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Growth planning refers to various business activities that allows entrepreneurs or business
owners to formulate strategy or plan out for expansion of an organization. This approach helps
enterprises to utilize their limited resources optimally in different area of markets in order to
adapt changes prevailing in particular industry. Every small start-up owners desires to enlarge
their business in other locations in order to grab large market share and for long term survival.
AirDri Ltd is a small enterprise part of electrical/electronic manufacturing industry.
Company has been specialised in designing and manufacturing of air hand dryers products with
unique feature such as reliability, reduced energy consumption and noise reduction. The size of
company is about 51-200 employees and its headquarters situated in Oxfordshire, UK.
This report contains information related to the study of micro environment with help of
PESTEL and Porter's generic models with purpose of determining opportunities which help in
expanding Airdri business in UK. It explains the different growth strategies through Ansoff
growth model and state about potential sources of funds by which firm can raise its capital.
Further, it exhibits a business plan for growth along with exit or succession options (Akter and
et. al., 2016).
TASK 1
P1 Evaluation of growth opportunity in macro environment.
Macro environment consists those factors related to economy which exists outside from
an organization. These forces are related with whole economy of country over which firm has no
control. The success of organization is rely on how it can adapt and convert the changing
condition into its advantage. During planning for growth company required to consider
opportunities and threats prevailing in external environment which may influence their decisions
and business affairs. This analysis can be done by with the help of PESTEL analysis model
(Amran and et. al., 2016)
PESTEL ANALYSIS is a framework of understanding the factors related to external
surroundings and also determine intensity of how favourable these conditions are for company.
This represents political, economical, social, technological, environmental and legal forces.
1. Political Factors: UK is one of the strong nation across the globe with modern
parliamentary democracy system. The great strength of country is its political stability
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and good relation with other nations. Government of UK is taking corrective measures to
solve deteriorating economy. It create an opportunity for AriDri to expand its business in
other areas of UK as there are stable tax policies, easy way of raising funds etc. which
enables owner to generalize optimistic sectors to expand their business growth.
2. Economical Factors: UK enjoys powerful economic position as compare to other
nations with higher GDP growth in world. It has diversified economy with wide public
and private sectors and huge population enable small markets to generate high profits.
Sustain economic stability with increased foreign direct investments. All these factors are
creating lucrative opportunities which are favourable for AirDri owners to open its stores
at different locations to expand its market share (Bentley-Goode and et. al., 2017)..
3. Social Factors: UK dominates big consumer market and has multicultural population
which allows companies to evolve variety of exclusive products to meet different
religions needs. Country has most successful social venture of health care system across
globe as well as high quality of educational infrastructure which increases high standards
of living. This factor is favourable for AirDri and cultivate opportunity for company
because there are different class of people with distinct needs on basis of which firm can
extend their production activities in order to fulfil those demands and generate profits.
4. Technological Factors: UK is world's leading nation in technological enhancements as it
is a combination of financial and technological industry. These advanced factors offer
unlimited opportunities to AirDri owners to do business in UK and develop new
technology in order to provide best solution for their customers.
5. Environmental Factors: Government of UK, local bodies, NGO's and many other
charitable trusts conducted various programs and taken number of initiatives to reduce
adverse impact of economic growth as well as create awareness regarding environment.
This foster positive opportunity for AirDri to extend its business as it already produce
noise free and less energy consumable products.
6. Legal Factors: UK is a political stable country due to which there are limited or zero
chances of fluctuation in legal laws and standard regulations. AirDri can easily expand its
growth in different areas as UK rules and legislative acts are so effective and strong
which reduces the threat of loosing organizational secret policies (Higgins, Omer and
Phillips, 2015).
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