Identifying Growth Opportunities for Airdri Ltd: A Management Report

This management report focuses on identifying growth opportunities for Airdri Ltd, a company specializing in hand dryers. The report begins with an introduction to management and its role in achieving organizational goals. It then identifies the organization, industry, and research objectives, followed by a discussion of data collection methods using secondary sources. A literature review explores ways to identify growth opportunities, the importance of growth, and challenges in implementing growth strategies. The internal analysis includes SWOT and VRIO analyses to assess Airdri Ltd's strengths, weaknesses, opportunities, and threats, as well as its internal capabilities. The environmental analysis covers external factors impacting the company. Strategic analysis provides a framework for growth, leading to a proposed growth strategy. The report concludes with a summary of findings and a list of references.

AS1 Management Report

Table of Contents
Topic................................................................................................................................................3
Introduction......................................................................................................................................3
Organisation/Industry/Topic area identification..............................................................................4
Research objectives..........................................................................................................................4
Data collection and analysis.............................................................................................................5
Literature Review.............................................................................................................................5
Internal analysis...............................................................................................................................6
Environmental analysis....................................................................................................................8
Strategic analysis...........................................................................................................................11
Growth Strategy proposal..............................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

Topic
To identify the ways in which growth opportunities can be identified. A case study on Airdri Ltd.
Introduction
Management within an organisation can be defined as activities with the help of which
the co-ordination among the efforts of the employees as well as the strategies can be ensured.
This enables the organisation in accomplishing their overall objectives and goals so that they can
ensure growth and success of the organisation. The management of the organisation are
responsible for various functions such as planning, organising, controlling and coordinating
among different activities to be undertaken (Vinayakumar, Poornachandran and Soman, 2018).
Along with this they are responsible for determining various opportunities for the business along
with various threats that can adversely affect their planned actions with the help of various
frameworks. Such frameworks facilitates in determining the impact of the external factors within
the business environment and the industry as well as enables in analysing the internal capabilities
of the organisation with the help of which they can identify the capabilities and overall
competencies of the company.
With the growing level of competition for each and every organisation it has becomes
crucial to analyse their business environment on consistent basis as this enables them to plan
necessary actions to manage the impact of various situations. The managers need to undertake
the analysis of various resources held by them in context of sustainable competitive advantages
that they are offering to the organisation. This facilitate them in ensuring that they take necessary
actions for the effective utilisation of the resources as with this they can offer better services to
the customers as per their need and expectations. It enables the organisation in ensuring that they
take competitive advantage over others by categorising their resources according to their utility.
For a medium sized organisation such as Airdri it is crucial to analyse their internal and external
market along with analysis of the risk associated with the business as with the help of this they
can plan for their growth strategies. In this management report analysis of various factors
affecting the organisation are discussed so that they can determine opportunities and threats for
the company.

Organisation/Industry/Topic area identification
The organisation which is taken in this report is Airdri Ltd which was founded in 1974
and is located in Oxfordshire (UK). The company designs highly reliable, energy efficient and
beautifully designed hand dryers which also produce low sound and can be used at various
places like public wash-rooms, hotels etc. The hand dryer can also be customised based on the
requirements and frequency with which they are used so that energy consumption can be
minimised while maximising the customer satisfaction (Alvesson and Spicer, 2019). In order to
identify new market opportunities and to plan for growth it is important that growth opportunities
are identified and analysed by using efficient models so that it can strategically achieve its
objectives.
Research objectives
In order to select effective growth opportunities for Airdri Ltd it is important that the
research is based on pre-determined objectives which can help in efficiently analysing the data
based on these objectives so that high quality results can be achieved. It is important that
research objectives help in meeting the overall requirements of the project by understanding the
concept that is to be researched so that methods can be applied which can help in achieving data
from authentic and reliable sources. Following are the objectives which can be achieved in this
report:
 To explore the ways which can help in identifying growth opportunities in market.
 To understand the significance of growth for an organisation. To determine the challenges that can affect growth strategies of organisation.
Research questions
Based on the research objectives that are identified it is essential that research questions
are formulated that needs to be addressed while conducting the research so that data collection
can be done which can be analysed. These research questions can also help in gaining
information regarding the topic so that a strategic direction can be given to the overall study so
that desired outcomes can be achieved within desired time:
 What are the ways that can help in identifying growth opportunities in market?
 How important is growth for an organisation?
 What are the challenges that can impact the implementation of growth strategies in an
organisation?

Data collection and analysis
Data collection is the process of acquiring information from authentic and reliable
sources so that it can be analysed and interpreted which can help in reaching to valid conclusions
so that the research outcomes can be practically applied. Data collection can be done from
primary and secondary sources in which primary sources are questionnaires, interviews etc.
while the secondary sources are books, journals, articles etc. from where information can be
collected (Betschart and et. al., 2017). The collected data is then analysed based on the
knowledge of researcher so that research objectives can be achieved in an efficient manner. In
order to achieve research objectives so that growth opportunities for Airdri can be identified and
planning for the growth of company can be done, secondary sources will be used in order to gain
required data. Use of articles, books, journals etc. will be done so that highly reliable data can be
collected.
Literature Review
Ways to identify growth opportunities
As per the views of Paul, (2018), in order to continuously grow in market and remain
competitive so that its sustainability can be maintained over a long period of time, it is important
that growth opportunities are identified. Growth opportunities can be identified for a company by
analysing its internal and external environment so that the factors that can help the company to
grow in market can be used for the benefit company. Environmental analysis, competitive
analysis, market analysis, market research etc. are the ways through which changing needs and
wants of customers can be analysed which can help the company to grow. Company can follow
various strategies like market penetration, market development, innovation in products or
services of company and diversification so that it can take advantages of opportunities in market
to increase profitability of company (Garcia and et. al., 2015). Competitor analysis can also be
done for the company so that strategies of competitors can be analysed which can help in
identifying the ways in which competition can be dealt with in an efficient manner. Use of
various models and concepts can be done so that ways in which companies can identify the
opportunities for growth in market can be analysed so that the customer loyalty can be increased
along with enhancing profits of company.
Importance of growth for organisation

According to the view of Sampson, (2018), for an organisation to remain successful and
sustainable in market it is important that it continuously analyse growth opportunities so that it
can gain various benefits in market along with enhancing its profitability and productivity. The
company can also bring innovation in its products and services based on the changing
preferences of customers so that the loyalty of customers can be increased. It also help in
improving the brand image of company in market so that a competitive advantage can be
achieved which can help in increasing its market share. More number of customers can be
reached with the help of analysing the growth opportunities in market so that the sales of
company can be reached (Gold and et. al., 2017). A growing organisation also attract talented
employees in the company who help in improving its productivity through better utilisation of
resources so that the objectives of company can be achieved of company on time. It also help in
minimising risk for the company in market as through continuous growth the company can deal
with changing market situations in an efficient manner.
Challenges faced while implementing growth strategies
As per the views of Morten, (2020), every company needs a strategic plan so that it can
continuously grow and develop in the market and meet the requirements of its customers so that
their trust can increase in the company. It is important that growth opportunities are identified
and effectively implemented in an organisation so that it can achieve its objectives. There are
however various challenges that can b faced by the company while implementing a growth
strategy like formulation of weak strategy, ineffective training of employees which affect its
implementation, lack of resources, lack of effective communication etc. All these challenges
need to be identified so that strategic decisions can be taken which can help it in strategically
growing in market (Randa and Reyns, 2020). With the help of using effective strategies these
challenges can be minimised which can help in enhancing the growth of company in market
along with gaining a competitive edge along with improving its market share.
Internal analysis
With the help of internal analysis an organisation can analyse their strengths and
weaknesses so that they can plan their strategies which can facilitate them in managing the
impact. Also it is considered as an exploration of the competency of the organisation, their cost
position and viability of the competitiveness. For Airdri SWOT analysis and VRIO analysis is
undertaken so that their abilities and competency can be identified.

SWOT analysis
SWOT analysis is a internal analysis of an organisation that helps them in identification of its
strengths, weakness, threats and opportunities. SWOT analysis of Airdri Ltd will be shown as
below:
Strengths Weakness
Airdri Ltd is a SMEs but has strong brand
image in marketplace that effects on its
business operations and function. Another
strength of Airdri Ltd is they has strong man
power that helps them in attraction of large
number of customers and also in development
of its growth as well as success at international
level (Grancharova and et. al., 2018).
One of the main weakness of Airdri Ltd is lack
of promotion of its products that effects on
their sales and market ratio. This also reduce
the customer base and decrease their brand
image in customer's mind and in marketplace.
Lack of leadership is another weakness of
Airdri Ltd that impact in retaining of staff. This
is a major weakness that increase high high
employee turnover.
Threats Opportunities
Brexit and COVID 19 are situations that
impacts on business operations and functions
of Airdri Ltd. COVID 19 is a biggest threat for
Airdri Ltd because in this situation no one are
able to go to purchase products and most of the
people are loss their job. Because of no
employment, peoples are not able to consume
money in different products. This is a major
lose for Airdri Ltd and impacts on its growth.
There are different opportunities for Airdri Ltd
in improvement of its growth and success.
These opportunities are market development,
competitors vulnerabilities, technology
development and innovation etc. These are best
opportunities that will support them in
improvement of its growth at national as well
as international level.
VRIO
VRIO Analysis refers as an analytical technique brilliant for the assessment of company's
resources and therefore the competitive advantage. This is an effective models that helps
company in identification of its internal capabilities. VRIO Analysis of Airdri Ltd will be
described as below:

Resource/
Capability
Valuable Rare Difficult to
imitate
Is it organised
Financial
resources
Yes Yes No
Skilled workforce Yes Yes Yes No
Customer
experience
Yes Yes Yes Yes
From the above mentioned VRIO Analysis, it has been interpreted that financial
resources of Airdri Ltd are valuable and rare. This will helps company in its business operations
and functions. Company has skilled workforce that is an internal capability of company and
helps them in attraction of large number of customers and improvement of business image.
Customer experience is high in this organisation that is also an internal capability that is also
essential for growth and development of company at international and national level (Vogelmeier
and et. al., 2017).
Environmental analysis
PESTLE
With the help of analysis of the external factors the organisation can identify various
opportunities present for them within the market in which they are operating along with various
threats that can affect their operations. Due to this, organisation such as Airdri has to analyse
various external factors because this will facilitate them in devising various strategies for the
business that can enables them in accomplishing their growth objectives as well as in ensuring
their profitability and sustainability. To determine various growth opportunities for Airdri
PESTLE analysis will be undertaken as with the help of this Political, Economic, Social,
Technological, Legal and Environmental factors will be analysed (Ushigome and et. al., 2015).
On the basis of this various strategies will be formulated so that their influence on the operation
and plans for growth can be taken into consideration in advance. The PESTLE analysis for the
company is given below:
PESTLE Description

Political The political factors has direct impact on strategy formulation of
Airdri as the policies of the government has long term impact on the
company due to which their growth planning can get affected directly.
Presently the political situation within UK is stable and this implies
that the Airdri being small company will not get affected adversely
(Wolf and et. al., 2018).
Economic The economic factors include inflation rate, interest rate, foreign
exchange rate and economic cycle of a economy and they has direct
impact on the decision making of Airdri as they affect the aggregate
demand and supply within the economy. Due to BREXIT the economic
condition of UK is unstable and this will have impact on trade
agreements as Britain will not be part of European Union. This can
impose various trade barriers on them and this can become hurdle for
Airdri in accomplishing their growth objectives.
Social The social factors have direct impact on the demand of the products
and service as in this the taste and preference of the customers is taken
into consideration. The people within UK are more conscious of their
living standard and the quality of product that they are using and due to
this they spend a significant amount on various such product that can
improve their standard of living. Thus this implies that they have
opportunity to easily expand their business of hand dryers as people
has gradually started installing it at their homes as well (Thompson,
2020).
Technological With the changing technology Airdri gets adversely affected as the
product offered by them is based upon the technology advancement. In
UK people as well as organisation are technology savvy due to which
they accept the products with better technology. This brings
opportunity for Airdri to expand their business and ensure its growth as
they have technologically advance product such as hand dryers with
batteries (chargeable and non-chargeable batteries), with direct

electricity etc.
Legal The legal implication has direct impact on the operations of the
organisation which has to be considered by the Airdri as this can
directly influence them in context of various legal proceedings.
Various laws related to trade practices are changing among the
countries due to BREXIT and this has direct impact on the operations
of Airdri. The operations of the company will get affected and this will
affect their profitability.
Environmental The government has been focussing upon various aspects related to the
environment so that they can manage the impact of the operations on
the environment. Due to various programmes and initiatives of the
government awareness among the people is growing and this has
affected the customers preference and this can be a threat for Airdri in
long run but with their eco-firendly business practices they can manage
its impact (Ryan and et. al., 2018).
Porter's Five forces
Porter's five forces model is an analytical tool that facilitate to understand the level of
competition within the industry along with level of profitability for the business as with the help
of this model the impact of major forces can be analysed that has direct influence on the
operations (Stagl and et. al., 2015). The analysis of five forces for Airdri are given below for
analysing the level of competition and understanding the intensity as well as aggressiveness of
the competitors.
Porter’s Five
Forces
Description
Threat of New
Entrant
This is the force with which the impact of new entrant on the
organisation can be identified. On Airdri the impact of any new entrant
is low as the product that they are offering has limited demand due to
which the possibility of any new entry is not much band the investment
from the point of view of small company is much.
Bargaining Power The bargaining powers of the suppliers within the industry is low and

of Suppliers this has positive impact on Airdri as the suppliers will not changes their
prices and this will ensure that the company's policies are not changed
frequently. Also the policy of self reliance of Airdri reduces the impact
of the suppliers on their business.
Bargaining Power
of Customers
Bargaining power of customers in context of the products offered by
the company is high as the customers preference is changing
consistently due to which it becomes crucial for them to take into
consideration their preferences (Singh and et. al., 2019).
Threat of
Substitutes
The impact of this force on the organisation is low as the number of
hand dryers makers are few which have specialisation of
manufacturing the same. This gives them advantage as they have
specialisation which the impact of substitution on them.
Existing Rivalry The impact of competitors on each and every organisation is high as
Airdri is a small company so they have limited resources to compete
with the large manufacturer and this affect the operations of the
company which will ultimately affect their growth.
Strategic analysis
Strategic analysis is related with analysing the environment in which a business operates
in a strategic manner so that better plans and decision making can take place which can help it in
growing in the market by minimising the impact of negative factors so that organisational goals
can be achieved.
Risk analysis
Risk analysis is a technique which helps an organisation in identifying the risks
associated with the course of actions that are taken by organisation so that these risks can be
minimised and strategies can be implemented in an efficient manner (Jacobson and et. al., 2015).
Risk Risk source Description Likeli
hood
of the
risk
Impact
of the
risk
Mitigation steps
Authorisation Market This risk is related with 5 1 This risk can be

restrictions development gaining authority from
the authorities so that
Airdri can offer its
products in other market.
It is important that this
risk is identified so that
permission of the
government can be
gained that can help it in
growing in market.
minimised by
taking
permissions
from authority
and analysing
the market so
that market
development
can take place
effectively.
Competition Market
development
While expanding in other
market Airdri can face
competition from local
companies which can
affect its productivity in
market (Panda, 2011).
4 5 Through market
research and
market
penetration
company can
offer its
products and
influence the
buyers along
with dealing
with
competition.
Technological
changes
Product
development
With the growing
advancements and
development in
technology Airdri needs
to implement the
changing technology so
that it can remain
competitive in market
5 5 Airdri can
merge with
other similar
companies so
that economies
of scale can be
achieved which
can help in