Airdri Company: Strategic Growth Plan, Funding, and Exit Options

This report focuses on the growth strategy of Airdri Company, a UK-based manufacturer of hand dryers. It begins with an introduction to planning for growth and its importance in gaining a competitive advantage. The report analyzes key considerations for evaluating growth opportunities, including resource management, capability, and core competency, and applies PESTLE analysis and Porter's generic model to assess external factors and strategic positioning. It then evaluates growth opportunities using the Ansoff matrix, exploring market development, product development, diversification, and market penetration strategies. The report assesses potential funding sources for businesses, including crowdfunding and bank loans, outlining their advantages and disadvantages. Furthermore, it includes a business plan for growth, incorporating financial information and strategic objectives for scaling up the business. Finally, the report evaluates exit and succession options for small businesses, discussing their pros and cons to provide comprehensive insights for strategic decision-making. This report is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration for evaluating growth and opportunity and justify it with organisation
context ........................................................................................................................................1
P2 Evaluate opportunity for growth applying growth vector matrix .........................................4
P3 Assess potential source of funding available to businesses with benefits and drawbacks of
each source .................................................................................................................................5
TASK 2............................................................................................................................................7
P4 Build a business plan for growth includes financial information and stratgeic objectives for
scaling up business .....................................................................................................................7
TASK 3..........................................................................................................................................10
P5 Evaluate Exit and succession options for small business with their advantage and
disadvantage..............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Planning for growth refers to a strategic tool that helps the business to grow and enhance
their revenues with their limited resources. This terms helps in gaining the competitive advantage
within the marketplace. It is very attractive to adopts the changes and enhance the image of the
brand in the market. This report includes the Airdri company that is one of the leading business
in UK that deals in manufacturing the hand dryers that is very reliable and place a great comfort
to the users. Due to Brexit this firm is planning to expand their business in the England with
modification in their hand dryers so that they earns a maximum amount of profits. It can includes
the Ansoff matrix that helps in grow their business by adopting best strategy. Further it includes
PESTLE analysis that helps in showing the various opportunities so that its easy to identify best
source of funds for growing the profits and revenues. At last it explains the exit and succession
options for the small business with their pros and cons so that organisations may easily identify
the best source(Hu, 2016).
TASK 1
P1 Key consideration for evaluating growth and opportunity and justify it with organisation
context
Basis of gaining competitive advantage
There are various resources that helps in gaining the competitive advantage for the Airdri
company some of them can be shown underneath.
 Resource- It is a significant term that helps in gaining the competitive advantage for the
Airdri and it includes human resource, advances use of technology, manage and maintain
monetary resources etc. that helps the firm to work effectively and gaining all the
objectives(Park and LaFrombois, 2019).
 Capability- This term helps the Airdri to examine the capability of resources so that
they can gain the overall objectives and helps in longer sustainability of the company.
 Core competency- This stratgey for gaining the competition is suggest that firm can
examine appropriately the needs and wants of the customers so that offering the products
to them is easy.
For evaluating the growth opportunity manager of Airdri needs to follow the PESTLE
analysis that helps in analysing the various external factors that can be shown below.
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PESTLE Analysis- It defines the tool of macro environment in which companies needs
to scan their external factors by using six frameworks that included below.
 Political factor- This factor includes the policies related to government laws and
regulation, tax policy, fiscal policy etc. due to Brexit in UK political condition is not so
stable due to this Airdri can face the issue to operate their business outside UK but it
create a opportunity expand their business in UK and purchase the raw material from that
so that they can save their import cost due to this their production cost also lowers. Due
to this large base of customers get attracted(Leick and Lang, 2018).
 Economical factor- This factor includes the inflation rate, spending power of customers
etc. in UK due to Brexit customers power of purchasing is not so high. In case of Airdri
they can lowering their cost of the product and also providing employment to the
unemployed person so that they can spend more. This term gives the opportunity to work
effectively on low cost and attracting the customers for gaining more profits.
 Social factor- It involves values, beliefs, perception and taste of the customers in society.
People of UK are very conscious related to hygiene and health this factor creates
opportunity for Airdri as they deals in selling Hand-dryers that will attracts the large base
of customers so that company may enjoy large amount of profits and revenues.
 Technological factor- In today's world customers are more advanced and excited to use
the new technology. In case of UK, people are very attractive to use and feel the new
technology this will positively affect company Airdri because they can adopts the latest
technology in their hand dryers so that they can attracts the large base of customers and
grow their market share.
 Legal factor- This factor includes the laws and regulation that was imposed by the
government for the welfare of employees so that they work effectively. In case of Airdri,
if manager can follow the equality law for their workers than they can capture more
opportunity for gaining the more profits within a specified time period.
 Environmental factor- It involves the guidelines relating to use the resources that are
not harming the environment. In case of Airdri, manager need to properly follow the
environmental law. This helps in creating the opportunity for expanding the business in
the country and gaining large base of customers.
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Porter's generic model- This is an effective strategic tool that helps the company to gain
the competitive advantage in market. In context if Airdri, this generic model can be elaborated
below(Deng, Fu and Sun, 2018).
 Cost leadership- In this strategy company can sell their goods and services at relatively
low cost so that they can easily target the market and achieving the goals of earning
more profits. In case of Airdri, adopting this strategy helps in achieving the short term
objectives by retaining the customers and gaining more profits.
 Differentiating- In this aspect, firm can differentiate their product range for gaining the
competitive advantage. In case of Airdri, this strategy is suggesting that manager can
offers the new offering to their customers so that they can enhance their market share
and beating the competitors by attracting large base of customers that is more essential to
place their position in the market in current environment. .
 Focus- It includes two framework that is cost focus and differentiate focus. In this if
manager of Airdri can adopting the cost focus strategy than they can provide the
varieties of offers by reducing the price of their producty6s so that large base of
customers are retained with the company and firm may enjoy large profits. And if
manager can follows the differentiating strategy than it will helps in attracting the new
base of customers and retaining t6he old onne and also helps in beating the competition
within the marketplace.
By analysing the above generic model of Porter's Airdri manager can adopts the
Differentiating strategy so that they can gain the competitive advantage and earns a high amount
of profits. It bis the major aim of the organisation because it helps in grow the market and longer
sustainability within the current marketplace(Lê and et. al., 2016).
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P2 Evaluate opportunity for growth applying growth vector matrix
Ansoff's matrix: It refers to an strategic planning that is used by the companies for
capturing the future growth by earning a high amount of profits and revenues. It involves four
approaches such as market development, market penetration, diversification and product
development. In context of Airdri, this term is very effective for manager in evaluating the
growth for the firm that can be shown below.
 Market development- This framework is very effective as it suggest that growth of the
business by developing the new market with their existing product so that company make
new base of customers and earns a high amount of profits. In case of Airdri, if manager
can expand their market in the new place with their exiting offering than they can make a
new segment of market with more new customers due to this enterprise may enjoy large
amount of sales(Güneralp, Perlstein and Seto, 2015).
 Product development- In this strategy organisation may develops the new products
within the existing market so that they gain the competitive market and maximise their
profits and revenues in the same market with their innovative goods. In context of Airdri,
if company need to follow this strategy than it helps in gaining the customer base and
competitive market so that they can sustain in the marketplace for a longer period of time.
 Diversification- It is one of the risky strategy for the SME type firm because in this
business they expand the market with new product. In case of Airdri, if manager can
adopts this strategy without making full and effective research than they will face major
loss but at the same time it also helps in gaining more profit and longer sustainability.
 Market penetration- This aspect shows that in this strategy company can lowering the
price of their goods and services for earning more profits. In case of Airdri, manager can
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lower the price of their goods by providing varieties of offers to their customers so that
they can attracts the new customers also due to this company may enjoy large revenues
and more market share(Crow, 2015).
By evaluating all the strategies manager of Airdri can adopts the product development
strategy in which they can enhance their market by introducing the new product in England. This
helps in earning more revenues and profits by attracting the loyal base of customers and enhance
the image of brand.
Discuss options for growth using range of analytical framework to understand competitive
advantage
There are different methods and approaches that helps in enhancing the growth of Airdri
but the manager can adopts the market development strategy so that they can place their position
strong in the industry and also attracts new base of customers. In this PESTLE also helps in
analysing the opportunities within various sectors so that manager of Airdri can identify the
development of firm.
Critically evaluate specific options and pathways for growth taking into account of risk of each
options and they can mitigated
By analysing the above strategies that is based on PESTLE and Ansoff's matrix it is to be
critically evaluated that there are various methods and approaches for Airdri but they can adopts
the product development that may contain some risk that if the company research cannot do
properly that cannot gain the profits and growth. In this PESTLE analysis also generate some
risk for the small and medium size organisation because it does not give clear and appropriate
facts for that due to this manager of Airdri face some type of difficulty in selecting the
appropriate strategy for their business(Olesen and Carter, 2018).
P3 Assess potential source of funding available to businesses with benefits and drawbacks of
each source
A propaganda about sources of fund is emphasis about the company perspective where
they measure the requirement of fund allocate to reduce the uncertainty.
There are three major types of sources of fund which can assort by the Airdri Company: Crowdfunding Source: According to this source of funding related with any business
project or having professional objective which is collected from the large number of
people as in small range of amount. As in the context of Airdri Company perspective,
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they approach the crowdfunding tactics through business lenders, relatives or financial
institution(Ahmed and Bramley, 2015).
◦ Advantage: In Crowdfunding, any business formation can easily target their money
raise criteria from their project.
◦ Disadvantage: It does not provide any other alternative to raise funds as well as it is
comprise the probability of uncertainty. Bank Loan: As in this service a individual promoter can acquire a loan from banking
industry as Business loan for certain period of time. Airdri company can opted for the
loan services from the United kingdom banks where they have opportunity to getting
favourable loan services in return it will generates the capitalism.
◦ Advantages: Through the business context the bank loan having a positive side it
process as legally along with it will helps to reduce the external taxes.
◦ Disadvantages: It is having a limited time to return the loan within interest to the
bank as per allotted duration of time.
 Public Deposits: According to this concept of public deposits which drives about the
receiving of fund from public, company's shareholders and workforce. As per the
consideration of Airdri company they could collected from their employees as well as
shareholder within the assurance for better returns.
◦ Advantages: On the sources of the public deposits it provide the low rate of interest
and flexible enough facilitates on trading services.
◦ Disadvantage: There are many implication as threats by investors to the banking
resources and challenges faces by capital marketing.
By considering better sources of fund for Airdri company scenario as Bank Loan
services where it would be legal regulates through government policies and business loan can
easily accessible and optimise for fulfilling the objectives.
By evaluating the effective sources of funding with justification adopt for an appropriate sources
of funding.
In the analysation about sources of funding is comprises three major funds which can be
acquired through many alternative services for better business expansion. In this Airdri company
determine most easier and flexible money services optimised by the venture to consummation
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the objectives in better way, Banking loan services will be appropriate sound to access and there
would no risk of threat as well as the instalment should be deposited in time(Dierwechter, 2017).
Critically measure potential sources of funding with justification in context of organisation
needs.
Through above summarisation related with Airdri company perspective for examine the
sources of funds where many alternative are having their presence in the business environment
which individual selects as per their own networking and easiest capable enough to presumes the
funding service for their business objective.
TASK 2
P4 Build a business plan for growth includes financial information and stratgeic objectives for
scaling up business
Business plan- This term defines the written plan that is outline for gaining the specified
goals and earns a high amount of profits and revenues. It includes various terms like vision,
mission, objectives, segmenting, targeting, positioning and evolution and implementation etc. in
context of Airdri this term can be explained below so that firm may enjoy the higher
growth(Sadun, 2015).
Company overview- Airdri is one of the prominent SME firm in the UK that deals in
manufacturing of Hand-dryers. They operates their hand dryers up to 200 watts that is longer
than the rival firms. This helps in making it cost effective so that they can enjoy large amount of
profits and revenues. Now company want to expand their business profits and revenues in
England for this firm may develop their products and offerings in their hand-dryers series so that
peoples are attracted towards it(Perveen and et. al., 2017).
Vision- The mission of Airdri is to become a largest company in the UK by satisfying
the demands of customers. They provide the standard quality products that helps in cleaning the
environment.
Mission- The major mission of Airdri is to offered the quality products that is sustain for
a longer time and can be fit in every type of wash room so that customer prefer that and company
may face the higher growth and sustainability in the marketplace.
Objectives- The main objective of the Airdri is to become a world famous hand dryers
that is designed for the welfare of customers so that they feel hygienic in other places too. Their
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major aim is to enhance the profits by 15% and sales by 20% by developing the new product
and attracting the new customers.
STP- This term is relate to the marketing in which company can simply analyse and
bifurcates the market by using three aspects such as segmenting, targeting and positioning so that
company can evaluate their profits and sales easily. In case of Airdri, manager need to evaluate
the STP model for analysing the type of customers so that profits can be earn easily. It can be
briefing below.
 Segmenting- It is an essential term in which company can segment the market into
smaller sections according to their homogeneous nature. In case of Airdri, manager can
segments the market on the basis of demographic and behavioural nature. In demographic
nature Airdri can segment the market as per the literate people and family situation and
on the behavioural nature their habits, and style affects the most(Esmaeeli and et. al.,
2015).
 Targeting- For targeting the market Airdri can focuses on their segments that is
developed in their previous step, in this they targets the literate people who have
knowledge of using the products and also those who are very conscious about related to
hygienic. So that firm may enjoy large amounts of profits and benefits. For their hand-
dryers they generally targets the all age group people because it is the product related to
safe the people form harmful bacteria.
 Positioning- In this context manager of the Airdri can position their products and brand
image in the new market so that they can enjoys the high growth. For this they can adopts
the use of marketing channels like various promotional tools such as social media,
billboards, newspaper, television etc. so that customers get engaged with the company
and attracts towards the products. It bis very essential for company when they think to
develop the market for making more loyal customers.
Financial resources- It refers to an essential term in implementing every type of
strategic without it no activity can be performed in an effective way. In case of Airdri, manager
can make the financial budget to effectively achieved their target and getting the longer
sustainability within the marketplace. It is very important to examine appropriately all the
financial resources because it is the backbone of succeeding the business enterprise(Rudolf,
Kienast and Hersperger, 2018).
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Cash flow statement- It is important for Airdri to evaluate and make a cash flow
statement so that they can easily examine their inflows and outflows so that no extra expenses
can be incurred at the time of applying strategy. For Airdri cash flow statement can be shown
below.
Implementation- In developing the business case it is very important for the company
Airdri to implement the plan according to the set criteria because without implementing the
business case company cannot face the high growth and benefits. In this step manager can assign
the work as per the capability band ability of the employees so that task can be achieved within a
time period or in an effective and efficient way.
Evaluation and control- After implementing the plans and strategies Airdri manger need
to evaluate and control all the activities by using key performance indicator so that if there is a
need to modify the functions managers can take some corrective actions so that it can helps in
earning more profits and revenues.
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TASK 3
P5 Evaluate Exit and succession options for small business with their advantage and
disadvantage
For every small and medium size firm it is very signifiant to analyse the exit and
succession options so that they can deal with the various types of contingencies and functioning
of the company. These factors helps the business enterprise to deal and handle the uncertainty
that was occur in the future terms. In context of Airdri, manager can evaluate the various options
related to exit and succession of the company so that they cannot face the issues related to
financial terms. It can be shown below(Vogeler, Cichota and Beautrais, 2016).
Exit options – It defines those strategy in which company can make the plan for winding the
business and getting the financial resources so that they can indulge in some other project. In
case of Airdri. Some of the exit options can be elaborated below(Wear, 206).
 Sell in open market- It is most effective option for the SME firms in which they can
sale their business in the open market so that third party can buy it in return of some
monetary value. It is effective because it does not harm the image of the brand of
business venture because after purchasing by another person only the owner is changed.
◦ Pros- The main advantage of this type of option is that third and another party who
purchased the business getting the ongoing business due to this it will not affect the
brand image and goodwill of the firm.
◦ Cons- The major drawback of this options firm may sometimes loosed the
experienced and talented workers due to this operations of business may be affected.
 Winding-up- In this option company can sell their assets and capital so that they can
pay al their liabilities and expenses and after clearing the amount related to their expenses
firm may clear pay the rest of the funds in the shareholders.
◦ Pro- The main trump card of this option in the company is that it can helps the
directors of the business institution that they may free from their debts and liabilities
so that they can spend their future life freely(Blais,2015).
◦ Cons- Winding up business major drawback is that it may contain more time and
employees are getting unemployed so that economy of the country may be affected.
Succession option- It defines an effective term in which ownership and leadership power of an
organisation can be transferred to some other persons. In this Airdri wants to focus on preparing
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