Strategic Growth Planning for SMEs: A Case Study of Airdri Ltd.

This report assesses Airdri Ltd., a leading manufacturer of commercial hand dryers, and its strategic approach to growth. It applies various frameworks like VRIO, Porter's Generic Strategies, SWOT, PESTLE, and the Ansoff Matrix to analyze the company's competitive advantages and market position. The report identifies cost leadership as a suitable strategy for Airdri, suggesting that reducing product costs could attract more customers. It also explores funding sources available to SMEs and discusses the importance of adapting to external factors like sustainability and hygiene awareness. Diversification is highlighted as a potential strategy for expanding the business into new economic markets, increasing sales and customer base. The report further touches upon succession planning within family businesses, concluding with the significance of strategic planning for organizational success.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Overview of respective organisation...........................................................................................3
Small and Medium-sized Enterprise (SME)...............................................................................4
VRIO Analysis............................................................................................................................4
Porter's Generic Framework........................................................................................................6
SWOT Analysis..........................................................................................................................7
PESTLE Analysis........................................................................................................................7
ANSOFF Matrix..........................................................................................................................8
TASK 2............................................................................................................................................9
Sources of funding available to SMEs........................................................................................9
Types of sources..........................................................................................................................9
TYPES OF SOURCES:.................................................................................................................11
RECOMMENDATION............................................................................................................12
TASK 3..........................................................................................................................................12
TASK 4..........................................................................................................................................16
Exit: success and failure............................................................................................................16
Growth and succession in the family business..........................................................................17
Succession Planning..................................................................................................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Growth in business environment is determined as a point or situation of expansion where
a business organisation attains additional units of sale of products or services. For instance, this
process includes development of strategic plan as well as execution of determined plan towards
achievement of goals and objectives. The plan of action taken into consideration is comprised of
various factors and aspects that results in impacting upon organisational success and growth. In
addition to that, these essential factors and aspects include organisational structure, quality of
products, purpose of organisation, pricing strategies, etc. Airdri ltd is a leading manufacturer of
commercial hand dryers engaged in providing a variety of quality hand dryers. Products offered
by respective business organisation could be easily found at restaurants, cafes, public wash-
rooms, etc. This report assessment will be comprised of insightful information and knowledge
contributed with the application of various different frameworks and models. Furthermore, it will
be further highlighting several factors and aspects which impact upon organisational growth as
well as leading to future opportunities for expansion with context of respective business
organisation.
MAIN BODY
TASK 1
Overview of respective organisation
Airdri has been established in the year 1974, by two mechanical engineers in order to
provide innovative and creative product to customers. The respective business organisation is
engaged in providing Best in class energy efficient products which incurs small amount of
energy and could be operated with just 200 watts. Hand dryers offered by respective organisation
are claimed to be eliminating 98% of micro airborne organisms which further contribute towards
health of people in society (Airdri, 2022).
Representatives engaged in management practices in respective business organisation are
determined at achievement of organisational goals and objectives. For instance, planning for
growth plays a crucial role in ensuring organisational success and growth with consideration of
factors and aspects in development of efficient strategies to be implemented in carrying out
operations and activities. In order to ensure growth of business organisation, Airdri is determined

at providing customers with premium quality of hand dryers with elegant designs in order to
attract higher amount of customers towards the same.
Competitive advantage is determined as attributes or quality of an business organisation
which facilitates in manufacturing and supplying better goods or services from their major
competitor brands in the market. For instance, attractive and elegant designs as well as variety of
products offered by the respective organisation is determined as their competitive advantage over
other competition brands in the market.
Small and Medium-sized Enterprise (SME) , as well as variety of products offered by respective
organisation,
Small and Medium-sized Enterprise is determined as business entity operating upon a
small or medium scale. For instance, SMEs in a business organisation are referred to those
entities who operates with less than 250 employees and a annual turnover within 50 million
euros. Being a SME, Airdri offers their products within geographical boundaries of United
Kingdom.
VRIO Analysis
Resources / Capabilities Valuable Rare Inimitable Organised
Elegant designs Yes Yes - Yes
Human Resource Yes Yes Yes Yes
Finance Yes - - Yes
Intellectual property Yes Yes Yes -

Figure 1: VRIO: From Firm Resources to Competitive Advantage, 2016
(Source: VRIO: From Firm Resources to Competitive Advantage, 2016)
RESOURCE ANALYSIS
Elegant designs  Valuable: Elegant and attractive
designs of hand dryers provided by
respective organisation contributes
additional values in attracting
customers towards the same
(Ariwibowo, Saputro and Haryanto,
2021).
 Rare: These elegant designs are rare as
it provides competitive advantage to
respective organisation over other
competitors.
 Organised: Airdri is determined at
serving customers with attractive

designs of products.
Human Resource  Valuable: Skilled workforce engaged
in workplace of respective organisation
which contribute additional values
towards respective organisation.
 Rare: HR representatives of respective
company are determined at selection of
employees upon a specified criteria.
 Inimitable: Workforce of Airdri cannot
be copied by other competitive brands
in the market.
 Organised: Employees engaged in
respective organisation are provided
with opportunities to initiate efforts
with best of their potential (Vargas-
Hernández and López, 2021).
Finance  Valuable: Efficient strategies in
decision-making of finance contributes
various values to respective
organisation.
 Organised: With the efficient
allocation of acquired funds, respective
organisation ensure achievement of
organisation goals and objectives.
Intellectual property  Valuable: Intellectual property of a
particular organisation results in
providing various values towards
respective business organisation.
 Rare: With copyrights and patents,
respective organisation secures their

intellectual property.
 Inimitable: these intellectual properties
cannot be copied by any other
individual or organisation (Ngo, 2021).
The primary and major strength of VRIO framework lies in analysing and determining
various essential resources of a particular business organisation.
The determined resources could be further provided with additional efforts in order to
ensure organisational growth.
Porter's Generic Framework
Figure 2: Porter’s Generic Strategies: Differentiation, Cost Leadership and Focus, 2021
(Source: Porter’s Generic Strategies: Differentiation, Cost Leadership and Focus, 2021)

 Cost Leadership: This strategy is determined at increasing market share with reduction
in price as well as profitability of business organisation by reducing cost of production
(Ali and Anwar, 2021).
 Differentiation: This strategy is aimed at catering differentiated products that serves a
USP which is different from other competitors in the market.
 Focus: This strategy revolves around a specific segment of customers with two different
variants which are as follow:
o Cost Focus: In this particular strategy, a business organisation seeks cost
advantage by serving a specific segment of customers.
o Differentiation Focus: This strategy is aimed at a narrow customer base
or segment by providing them with better and differentiated product.
Cost Leadership is determined as most suitable and appropriate strategy for respective
business organisation to be taken into consideration for future growth and development.
Though, Airdri is providing quality products into market but these products are served at
quite higher prices as compared to other competition brands engaged in the same.
Furthermore, reducing cost of products will facilitate respective company in attracting
additional customers as well as retaining existing customer base (Okatahi and et. al., 2021).

SWOT Analysis
Strengths
 Elegant and stylish designs of
products: The respective organisation
has been providing attractive and
elegant designs of hand dryers in order
to attract higher amount of customers
(Benzaghta and et. al., 2021).
Weaknesses
 Higher cost: Products offered by
Airdri are quite expensive as compared
to other competition brands in the
market (Jonibek, 2021).
Opportunities
 Increasing awareness of cleanliness
and bathroom accessories: Increasing
awareness among people in society for
maintaining hygiene will facilitate in
Threats
 Market Competition: Being a part of
competitive business environment,
competition in the market including V
Jet, Heavy Duty, Dolphy, etc. results in

attracting customer base towards
products offered by respective
organisation.
being a major threat for respective
organisation in accomplishment of
desired goals and objectives
(Djellabi and et. al., 2021).
With the spread of awareness of cleanliness and hygiene, Airdri will be able to serve
customers with a variety of hand dryers with attractive designs.
PESTLE Analysis
Political Factors
 Political Stability: Being operating in the UK, Airdri is facilitated with economic
stability which further contributes towards carrying out operations and practices.
Economic Factors

 Increasing income: Increasing income of customers in society allows customers in
purchasing additional accessories in order to maintain better lifestyle. For instance, it will
result in favour of Airdri as customers will be able to afford their products (Thomas and
et. al., 2021).
Social Factors
 Awareness for hygiene: Cleanliness and hygiene are major concern of people which will
contribute additional values towards increase in sales for products offered by respective
company.
Technological Factors
 Advancement of technology: Implementation of advanced technological components in
carrying out operations and activities in order to produce quality products at lower cost.
For instance, it includes computer software, computer hardware, machinery, etc.
Legal Factors
 Corporate Business laws and regulations: The respective organisation is needed to be
abide by laws and regulations in carrying out their operations and activities. For instance,
there are various corporate laws and regulations including consumer protection, contract
law, employees protection, etc. which results in impacting upon business organisations
(Phan, 2021).
Environmental Factors
 Sustainability: Products offered by respective business organisation incurs small amount
of energy to be operated which facilitates in contributing additional values towards
sustainability in environment.
PESTEL Analysis framework results in identification and determination of external
factors impacting upon operations and activities of respective organisation.
With the spread of awareness of sustainability and hygiene, it results in creation of huge
opportunity for respective business organisation to attract customers towards their products by
highlighting these triggers in their efficient marketing practices (Sari and et. al., 2021).

ANSOFF Matrix
Figure 3: Understanding the Ansoff Matrix, 2021
(Source: Understanding the Ansoff Matrix, 2021)
 Market Penetration: This strategy is determined at increasing sales of existing products
of a business organisation in existing markets (Weiwei, 2021). For instance, reducing
existing prices and increasing promotional practices are primary considerations taken into
account for increasing sales of existing products of company.
o Advantages: Primary advantage of market penetration lies in attaining a
competitive advantage in the existing market with existing products.
o Disadvantages: Lower margins of profit, possible harm to brand image,
and pricing war are determined as major disadvantages associated with
market penetration.
 Product Development: This strategy is aimed at introducing new products into existing
market. Additional investment in Research & Development is taken into consideration in
order to design and develop new product to be served to customers in existing market.
o Advantages: Development of new product will facilitate in conquering
opportunities with changing market trends and consumer preferneces.
o Disadvantages: Risk factor and additional cost are major disadvantages
associated with product development.