Growth planning in Airdri Limited

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context. ...................................................................3
P2 Explain the different growth strategy which can be used by the selected organization....5
LO 2.................................................................................................................................................7
P3 Explain the different funding source for the organization................................................7
LO3..................................................................................................................................................8
P4 Explain the brief business plan of the selected organization............................................8
LO 4...............................................................................................................................................11
P5 Explain the different strategy which can be used at the time of the exit for small business.
..............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth refers to the activity that supports the firm to develop plan and tracking
the growth in terms of revenue of the business. Developing a plan for the growth helps the
organization to allocate the resources for adapting to the changes that are happening in the
industry due to intense competition or due to advancement in technology. Small and medium
enterprises are independent firms that employ very few workers, it requires less amount of funds
to start business venture etc. (Wu, 2015). The Report is based on Airdri Limited. It is one of the
enterprise that is listed in top 100 successful SMEs by Thames Valley SME 100. It was
established in year 1974 in Oxfordshire, UK. It was founded by 2 entrepreneurs that are Peter
Allen and Peter Phillips. Company deals in various types of electrical equipment like Hand dryer
etc. Currently the annual turnover of Airdri Limited is between £2 to £10 million (Kumar,
2016).The Report will outline various strategies for growth of the company with the help of
Ansoff Matrix, PESTLE analysis etc. Further, it will describe business plan of the firm that will
include strategies objectives, financial information etc. It will also explain various sources from
which company can raise funds. At last, the Report will highlight different exit options for small
business.
MAIN BODY
LO 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
Growth opportunity for the organization can better be understand by evaluating the market
as this is the palace where generally opportunity for is presented. PESTLE and the Porter's five
forces implication are the best model to uncertain the same.
PESTLE
Political Factor: This are the factor in which there is a influence from the political party
in the business. This factor always help the Airdri as in the UK the government is helping the
SMEs in establishing the business which has helped the organization, UK government has also
helped the Airdri in providing the fund whenever the company was under the need of the money
at a low rate. As the UK government Support the SMEs to establish in the UK it is good
opportunity for AirDri to expand the business.

Economic Factor: This are the factor which relates to the factor that are affecting the
business due to economic condition in the country. Airdri has good oppourtunity to expand as
the inflation rate and the tax rate in the UK always prefer the local company which is good sign
for growth (Adi, 2015).
Social Factor: This is the factor which affects the organization due to social environment
of the country. This will offer good opportunity for Airdri as there is a good trend of the Hand
dryer in the UK mainly in the old age people..
Technological Factor: This is the factor which has affected the business very badly in
the last couple of the years as in the rapidly changing environment there is a vast change in the
technology of the production and as the Their are many technique which is available in the
rapidly changing market for the AirDri to get a competitive advantage.
Legal Factor: This is the another factor which has affected the business from the starting
stage itself as laws of the UK has somehow stand tall in hampering the profit margin of the
business as the labour law and the consumer law are to strong that the company has to change the
function of the business according to the same which eventually affects the business in a
negative way. At the same time legal factor will offer the good opportunity for the business as
the legal factor will safe guard the business.
Environment Factor: As there is good demand of the environment friendly production
the market it is good opportunity for the business to grow as AirDri used to produce the
environment friendly product only. (Carraher, 2018).
Porter's Five Forces
Competition in the industry (High)
Airdri has to face the good amount of the competition in the industry as there are many
big market leaders just like iconic, Ceramix are ruling the market and the goodwill of the
competitor are also helping them. But at the same time it offers the good opportunity for the
Airdri as the Price is the thing which will helped the Airdri in attracting the customer toward the
company as at the price at which the product is sold by the company is too good as compare to
the other.
Threat of the new entrants (low)
This is the force which generally does not affect the Airdri as there are many less
company who are looking to come in the industry as they are afraid of the big company who are