Airdri Ltd: Business Plan for Sustainable Growth and Funding

This report analyzes Airdri Ltd, a manufacturer of hand dryers, focusing on planning for business growth. Task 1 evaluates growth opportunities through Porter's generic strategies (cost leadership, differentiation) and PESTEL analysis, considering political, economic, social, technological, legal, and environmental factors. Task 2 explores funding sources, discussing their advantages and disadvantages. Task 3 details a business plan for growth, and Task 4 examines succession and exit strategies for SMEs, outlining their pros and cons. The report utilizes Ansoff's growth matrix to assess market penetration, market development, product development, and diversification strategies. The report aims to provide a comprehensive overview of strategic planning for business expansion and sustainability.

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

and the name and image of the brand in the mind of the customers can be strengthen. This will
also empower the association to make plans to expand their business by launching new product
so that customer base can be built.
Conclusion: As per the above mention all the strategy the Airdri limited will focus on the
cost leadership strategy in order to gain competitive advantages and customer base through
keeping the prices of their product lower than the rivals. This strategy helpful to achieve growth
and compare their product with another organisation and according to that prepare effective
strategy.
PESTEL analysis
Every business is affected by some factors while their operations these factor can either
be external or internal. To determine these factor the PESTLE Analysis is done where all the
factors associated with the political,economical,social,technological, legal and environmental are
considered. Airdri Ltd. Will focus on the adoption of the PESTLE analysis in their business in
order to reduced the risk that are associated with these factors and are also impacting the
business revenues and sales margin(Fahlvik, Elfving and Wikström, 2014). Components of
PESTLE analysis are :
Political factor : Political factors are the one which are under the control of the
government. This involves the formulation of the policies and plans . Business of Airdri Ltd.
Will be benefited with benefited with the political factor by gaining a sustainable growth and
opportunity as the economy of the UK is stable so this will be advantageous.
Economical factor : Economical factors are those which are related to the factors which
are for the development of the economy such as inflation rate, growth rate, GDP rate etc. as the
economy of the UK is developing very rapidly it will be advantageous for the business of the
Airdri to grow and develop their business with increased amount of profits. This will also
support association in sustaining their business in the competitive market for the longer duration
of time(Li, Mobin and Keyser, 2015).
Social factor : Social factors are those which involves the needs, customs, belief, values
etc. So the business of Airdri must focus on the frequently changing demands and expectation of
the client so that the business can retain in the competitive market by fulfilling all their
customers needs.

Technological factor : These factors are those which involves technology innovation
and up gradation. The business must focus on the manufacturing of the products with new and
updated technology so that business can full fill their customers needs by the installation of the
new and up graded technology in the business.
Environmental factor : This involves all those factors which impact the business in a
consistent manner either in favourable manner or unfavourable manner. So in order to maintain
the consistency and better environment the business of Airdri Ltd. Must give their emphasis on
the following of all the laws and systems in the best possible manner.
Legal Factor : The business of Airdri must focus on the implementation of all those laws
and regulation which have been enforced by the government in order to protect the employees as
well as their customers wants needs, desire etc.
Conclusion: As per the PESTLE analysis it is determined that there are different factors
that impact on the business operation in positive and negative manner so according to that take
further steps and prepare strategies.
P2: Evaluation of growth opportunities using Ansoff's growth matrix.
Ansoff's growth Matrix : This matrix is the one which has been framed in order to aid
senior managers, employees, marketers to plan the strategies which will leads the business
towards the growth and development. It also helps the business in gaining some advantage that
will support the association in competing other rivalry firm(Lu and Yu, 2014). Strategies of
Ansoff's matrix adopted by the business of Airdri are as following :
Market Penetration : This strategy of the Ansoff's matrix involves less risks as the
association here seeks to grow their business with the existing product in the same market so that
the business can grow their market share significantly. Organisation like Airdri Ltd. Will adopt
this strategy so that the sustainability of the business in the market can be maintained for a longer
span of time.
Advantage
 This will increase the sales and revenue margin of the business as the association is
already familiar to the to the existing market situation and their customers demand.
 By providing the products at the lower prices than the competitor the business can easily
capture the large market share. As customers are more attracted towards the lower prices
of the items.(Sharifi and et. al., 2014).

Disadvantage
 As the in the market penetration the company seeks to grow with their existing products
in the existing market the chances for the innovation in the product reduce and new
market can not be covered.
 Decreased in the level of goodwill of the firm.
Market development: Market development is the concept which involves the growth of
the market to the other market segment so that the brands image of the company can be
strengthen. By the adoption of this strategy the business of Airdri can also expand their
organisation to the areas where the they are not operating.
Advantage:
 Development of the market will leads to covering of the larger section of the customers
as through market development the business can increase their customer base.
 The vision and the standard goal of the firm can be achieved easily within the given span
of time.
Disadvantage:
 Installation of the appropriate tool for the advertisement of the products should be done
so that the changing taste and preferences of the customers can be understood and can
get attracted towards the items easily(Grover, Bokalo and Greenway, 2014).
Product development: As the name suggest itself the strategy seeks to launch new
products in order to build their existing customers base in their existing market. This strategy of
the product development will enable the business to survive in the competitive market by
rendering them with number of the opportunity to grow their firm as well as the profit margin.
Advantage:
 The business will be termed as the higher competitors to their rivals by the launch of the
product with the unique and innovative feature so that the profit as well as the customer
base for the product can be increased in the best possible manner(Glock, Jaber and
Zolfaghari, 2012).
Disadvantage:
 The company needs to focus on building the customer base for the creation of the
demand and preferences for the new product in the market.

Diversification: This strategy of the models focuses on the manufacturing of variety of
products and services so that the expansion of the organisation and profit ratio can be done in the
best way. This strategy will support the business of the Airdri to introduce their new product in
the newer market segment.
Advantage :
 Through the concept of the diversification the business can easily increase their profit
and sales margin and can also attain a position of the growth and development by the
introduction of the new products in the same old market.
Disadvantage:
 Frequent changes in the demand will also leads to the decrease market value of the firm
and less profitability . This will also hinder the success of the business as due to much
fluctuation the standard and the actual performance can not be matched properly.
Conclusion: As per the above strategies it is concluded that Airdri Ltd. apply market
development strategy for larger section of the market. According to that covered and the launch
of the new product with increased mass and build in the most effective manner. The introduction
of the new item by the firm will also leads to increase level of the competition as the the product
which the firm is introducing is already existing in the market (Arzaghi and et. al., 2017). Along
with also select product development strategy due to provide product in existing product in
existing market because Airdri have experience and know how to handle of customers.
TASK 2
P3. Sources of funding with their advantages and disadvantage.
Funds for the business is very essential as this involves allocation of these funds in such a
way so that organisation can operate their operations in the best possible manner. Proper
allocation of the funds may leads the business towards a stage of success. The association of the
Airdri Ltd will focus on the allotment of the funds to their different functional department in
such a way so that from limited availability of the funds activities can be performed smoothly.
To generate funds the business have focused on the generation of funds from the different
sources these sources of funds are as mentioned below :
Internal sources of the funding : Internal sources of the funding is refers to the
arrangement of the funds in the organisation within its boundaries only. This includes extracting

of the funds from the sale of an assets, debt collection, credit collection, reduction in the working
capital of the business(Zhang and et. al., 2013).
External sources of funding: It refers to as the process where the funds are raised by
the organisation from the outside environment. These includes the extraction of the funds from
bank loan, overdraft, crowdfunding etc. Some sources of external funds are as mentioned
beneath :
 Bank Loan : This is the best source of funding as in this the amount is borrowed from
the bank and is promised by the client to pay the amount within the specific period of
time which have been stated. These amount can be borrowed either for the longer
duration of time or either for the shorter duration of time as per the individual
requirement.
Advantage :
 Bank loan is advantageous as this will provide the organisation as well as the individual
with the exact rate of the interest which has been fixed so that they can easily pay it
within the short duration of time.
Example: Raising funds from the bank will enable the business of Airdri Ltd. To repay it within
the specific period of time as the burden of the business to repay the loan will increase due to
which the effectivity to perform the operation smoothly will also increase(Wey, 2015).
Disadvantage:
 And the disadvantage of the Bank loan to the business is that if the business is not able to
pay the amount of their loan to the bank all the assets of the business can be seized.
Example : If Airdri fails to repay its amount of loan than the amount borrowed by keeping assets
as an security will be sold by the bank due to which the aim of the firm cant be achieved.
 Overdraft: Overdraft is termed as the mutual agreement between the parties regarding
the extension of their credit limits. This agreement is generally signed between the
company and the bank. Some pros and cons which are attached with the overdraft for the
business of Airdri Ltd. Are as follows:
Advantages :
 With the aid of overdraft the business can easily resolve their issues related to the
arrangement of the funds. Example : Through the help of the overdraft the business can

easily attain their vision as overdraft to the organisation of Airdri will leads to immediate
availability of the funds(Porter, 2012).
Disadvantages:
 Overdraft may be sometime leads to disadvantage to the firm as to extent the limits of the
credit the business here is required to pay extra amount. Example : The association like
Airdri has to face the problem of the increased Debt ratio as the rate of the extra fees is
charged high.
Crowdfunding: It is the process which involves raising of the funds in the small amount
through the support of each and every individual. This process is valuable for the business as
well as the individuals. This scheme of raising funds is generally used by various social media
industries so that the money can be extracted from different different persons. Pros and cons
attached to crowdfunding are :
Advantages :
 This will enable the business of Airdri Ltd. in building their brand image in the mind of
customers by raising funds from each and every single within a short duration of time.
Example- Extraction of large amount of funds can support the business in successfully
attaining their goals and targets(Stanilov and Sykora, 2012).
Disadvantage :
 This concept of raising funds from the public is quite challenging as the general public do
not show much interest in this crowdfunding. Example- As the relationship with the
general public is not much strong this will create a huge problem for the business of
Airdri Ltd. To gather the funds(Sharifi and et. al., 2014).
Conclusion: Therefore, the above discussed various sources of finances enable Airdri
limited to acquire best positioning within competitive marketplace. However, crowd funding is
more suitable for business as it very cheap and effective with various benefits that leads them to
maintain their financial position among industry as well as provide positive perceptive over
public that improves the overall performance and helps them to gain competitive advantage. For
other sources required to pay extra interest rate which is not good for the business.

TASK 3
P4 Business plan for growth of the business
Business plan:
Executive Summary This business plan summarise the overall details of the company which
include vision, mission and strategic objectives. In addition, this plan
include the industry or market analysis, customer value proportion,
marketing strategy or operation plans.
Business Details New product: Hand dryers with fragrance systems
Vision: Airdri Ltd. Aims to capture the larger section of the market with
the expansion of their business through the introduction of their new
venture.
Mission: The Mission of Airdri Ltd behind operating their business
operation is to render their customers with the high quality of the
products so that their needs gets satisfied.
Objectives : Business operates their operations with the objective to earn
higher sales as well as revenue margin within the time period of 4
months by 10%. The business of Airdri Ltd. Also gives their great
emphasis on the covering 15% market share by 2021. In order to
satisfying their customers company implement SMART objectives (Lu
and Yu, 2014).
Internal or market
analysis
Company is small size which expected to grow market share by 15 %
before 2021.
Competitive Analysis:
Internal Analysis : To determine the internal circumstances the
business will mainly focus on the SWOT analysis which involves
strength, weakness, opportunity and threat which the business is facing
from its competitors
Strength
The business of Airdri Ltd enjoys
large customers base and market
Weakness
The Association may suffer from
the lack of knowledge to the

share as it provide the customers
with higher quality of products as
per their demand.
customers regarding the advanced
features and technology prevailing
in the market.
Opportunity
Airdri has the great opportunity for
the expansion of their business by
launching this advance technology
product in the market (Güneralp,
Perlstein and Seto, 2015).
Threat
Huge market competition to the
business of Airdri can be a threat
as this will leads to decrease in the
profitability of the firm.
Segmentation: Company segment the group on the basis of demographic
factors where it classify according to age, gender or education.
Targeting: Airdri target the demographic segment where they target the
young age group people. So they required hand dryer to dry their hand
and reach the place where they wanted to go.
Customer & value
proposition
It is beneficial for all group of people because at time of using wash
rooms they need to dry their hands before going outside of the toilet. So
Hand dryer with fragrance system help the customers to go out earlier
with good smell in their hand.
Market strategy Product: Company introduce Hand dryer with fragrance systems.
Price: £100.
Promotion: Product promotion should be done online, television or other
social media sites.
Place: This product placed in the Airdri stores as well as available online
through company's website.
People: There are various people include to the delivery of this product
such as sales persons, workers in the manufacturing units, digital
marketing team to handle online orders and customer query.
Process: Company follow the simple process to deliver their product