Planning for Growth

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key considerations for evaluating growth opportunities.............................................................3
Ansoff matrix:..............................................................................................................................5
Sources of funding available to business and discuss pros and cons of each source...................6
Business plan...............................................................................................................................8
Exit strategies for a business: ....................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth should be the priority for every business because business is started with the
aim of success and growth. Victair holdings is known for their world-class products as they
manufacture aircare and hygiene products and supply in many sectors. The company is focusing
on sanitary disposal, hand washing etc. This study will discuss growth opportunities of the
company (Pakhnenko, 2019). Further will evaluate growth opportunities by using ansoff matrix,
will access the potential source of funding available to business with pros and cons. It will also
discuss business plan for growth which include financial information and objectives for scaling
business and will discuss exit and succession options for the small business by giving benefits
and drawbacks of options.
MAIN BODY
Key considerations for evaluating growth opportunities
Before developing a new business, SMEs require identifying growth opportunities.
Without identification of growth opportunities, companies may face several problems and also
can fail in development. There are several factors that needs to be considered while developing a
new business in the market. Competition is increasing day by day because of globalization and
technological changes. So, Vectair holdings that wants to develop business by providing
hygienic products, requires identifying some factors that include:
Political: Vectair holdings provides hygienic products and now in this situation, people
require hygiene products and tools to the great extent. It is saying that happiness comes from
healthy body. Governments are also supporting such companies to the great extent. So, this
factor is beneficial and supportive for Vectair holding company.
Economic: Economic condition of the UK is not as like before. After Covid-19 lock
down, it is facing several problems (Perera, 2017). Government of the UK is providing
employment opportunities to people for improving economy. Vectair holding will also have to
strive hard but by making use of cost leadership strategy it can remain in the competition.
Social: It is other main importation factor that needs to be considered by companies that
want to expand and develop new business. In this regard it is found that people are becoming
health conscious and after Covid-19 they protect themselves. So, this factor is beneficial and
Vectair can increase its sales and take growth accordingly.

Technological: In this regard, it is found that companies in this sector are striving hard
for being in the competition. The reason behind this is technological development. It is putting
pressure on small and medium size companies to invest money in technologies. So, before
opening and developing a new business, Vectair holdings requires considering this factor. It also
requires investing in technologies for becoming successful (Marshall and et.al., 2017).
Legal: There are several rules and regulations related to health and safety. For becoming
successful and protecting against lawsuit, Vectair will require implementing all policies and
guidelines while producing hygienic products. It can help it out in improving image and
becoming successful as well.
Environmental: In the context of this factor, it is known that people prefer to buy
products from companies that maintain CSR. So, in regard of this factor, importance of
sustainability and CSR is known. By producing products, making use of natural resources to
some extent.
So, from the above discussed factors it can be said that by evaluating and considering all
these factors, Vectair can develop its internal strategies and can grow in the market.
Porter's generic growth strategy
With the help of Porter's generic, growth opportunities can be identified. Porter's generic
model can help this company out in selecting the best strategy as per the financial stability. It can
make it able in being in the competition and accomplishing goals. As per this model there are 4
strategies such as:
Cost leadership: In this strategy, company focuses on becoming the low cost producer in
this industry. This strategy is beneficial for large organizations that strives hard for being in the
competition and attracting customers. It is believed that when customers get same quality of
products at average of the market pricing or lower prices then they are more likely to become
loyal. For becoming the lowest cost producer company requires high level of productivity, high
capacity utilization and use of technology in production process.
Cost focus: It is another strategy in which company seeks a lower cost advantage in
small number of market segment. Products are as like other companies in the same industry.
Such products are acceptable to customers (Porter's Generic Competitive Strategies, 2016).
Differentiation: In this growth strategy as per this porter's generic model, business
focuses on targeting larger markets for achieving competitive advantages. In this strategy,