Planning for Growth

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1: Key consideration for evaluating the growth opportunity...............................................3
P2: Evaluation of growth opportunities using Ansoff's growth matrix..................................5
TASK 2............................................................................................................................................8
P3. Sources of funding with their advantages and disadvantage. ..........................................8
TASK 3..........................................................................................................................................10
P4 Business plan for growth of the business........................................................................10
TASK 4..........................................................................................................................................15
P5.Succession or exit plan for small business with its advantages and disadvantages........15
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Planning is termed to be the most vital component for the business which supports the
association in deciding in advance about the business growth and operations. Planning is
predetermined activity which business needs to perform in order to identify what should be the
goal of the business and what necessary steps towards the achievement of that goal must be
taken. To gain sustainable growth and development it is crucial for the association to plan for
their organisation growth. SME's are coined as small and medium size enterprise which deals in
operating their business operations on a small scale. The assignment is based on Airdri Ltd. That
deals in the manufacturing of Hand dryers. Completion of the reports will consist the study about
various sources which is required for the funding and key consideration for the growth.
Additionally the reports also focuses on the formulation of business plan so that the expansion of
association can be done in the most significant manner. Along with this the study also examine
the methods of exits and succession of the organisation from market.

TASK1
P1: Key consideration for evaluating the growth opportunity.
Planning is refers to as the foundation for the association as this would supports
organisation in attaining their goals and vision which have been targeted. This provides
organisation with appropriate plans and strategies. Predetermined plans will also empower the
association in analysing their actual business performance to their standard set for the
performance (Barbour and Deakin, 2012). Association like Airdri Ltd. Will also give their
emphasis on the development of the correct idea and scheme so that defined vision can be
attained. Below mentioned are the ways which are implemented and adopted by the business of
Airdri Ltd. -
Porter's generic strategy:
Porter's generic model is considered to be the most valuable model used within the
business associations in order to earn a competitive advantage in comparison to their rivals.
Implementation of Porter's generic model will also assist the business to undertake steps for
enhancing their performance in the competitive era. These stages are as mentioned:
Cost leadership strategy : This is also refers to as the low cost strategy. Adoption of this
strategy will enable the organisation of Airdri Ltd in easy attainment of the competitive benefits
in compare to their potential competitor. This will also allow the business to capture larger
section of the market by keeping low prices of their products and services.
Differentiation : This strategy of the model calls for the manufacturing of the products
with some unique features and qualities according to the demand of the customers. Production of
the product with some innovation will also leads to the increased customer base, increased
competitive advantage of the Airdri Ltd. By increasing the profitability too(ZHANG, ZHAO and
CHEN, 2013).
Cost Focus- Cost focus is termed to be the strategy which is being implemented on the
niche or the narrow segment of market. this strategy is most probably used buy the business to
gain the competitive advantage within the niche market so that the business of Airdri Ltd. Can
produce the product considering their customers demand and satisfaction level.
Differentiation focused: This is the most important stage of the porter's generic model
which is considered by the association as this strategy will enable the business in their
documentation of the appropriate plans and strategies so that the customers mind can be captured