Analysis of Growth Strategies and Funding Options for AriDri Company

This report provides a detailed analysis of growth strategies and funding options for AriDri Company, a small to medium enterprise. It explores key considerations for analyzing growth opportunities, including the Boston Consulting Group (BCG) matrix and Ansoff's growth vector matrix. The report identifies various funding sources, such as crowdfunding, peer-to-peer lending, and venture finance, evaluating their pros and cons. It also discusses the development of a business plan for growth, incorporating financial information and strategic objectives. Finally, it examines exit or succession options available for small businesses, including their benefits and drawbacks. The report aims to provide a comprehensive understanding of the growth planning process for AriDri Company, including financial considerations, strategic objectives, and potential exit strategies.

Planning for Growth

Contents
Part 1...........................................................................................................................................................3
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
P1 explain the key considerations for analysing several growth opportunities and justify them............3
P2 Determine the opportunities for growth............................................................................................4
M1 what are the options for growth while using a range of analytical Framework in order to take
competitive advantage from the market.................................................................................................5
P3 Sources of funds with their pros and cons..........................................................................................5
M2 potential sources of funds which can be adopted by the chosen organisation.................................7
Part 2...........................................................................................................................................................8
P4 design of business plan for growth which must include a financial information and strategic
objective for scaling up a business..........................................................................................................8
M3 develops an appropriate business plan for the growth of the company and securing the
investment in order to set out the strategic objective in an appropriate framework for attaining their
targets.....................................................................................................................................................9
P5 exercise exit or succession options which are available for the small business organisation. Explain
their benefits and drawbacks..................................................................................................................9
M4 determines exit or successive options for small business companies and contrasts the options and
makes a valid recommendation.............................................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Part 1
Introduction
Business is an organisation in which the entrepreneurs are engaged in the process of
buying and selling of goods and services so that they can generate revenue from it. It is important
for every business enterprise to develop their plan so that they can determine the techniques
which can be adopted by them in order to achieve their set goals. Growth planning are some of
the strategies which can be adopted by the business organisations in order to develop or plan and
track the operations of the business (Agapiou, Lysandrou and Hadjimitsis, 2017). This
assignment is based upon a small medium enterprise which is AriDri company. There are several
growth and opportunities which are determined in this report with the help of ansoff matrix
model. There are many options which can be adopted by the company in order to determine the
competitive advantage and Pathways for the growth and also how they can be mitigated. The
Chosen organisation has several sources of funds which helps the company to raise their capital.
The business plan is also discussed for growth which includes the financial information and
strategic objective and lastly the exit or succession options which are available for the small
business Enterprises with respect to their pros and cons.
Main body
P1 explain the key considerations for analysing several growth opportunities
and justify them
Boston consulting growth matrix is the model which was founded in the year of 1968 by
BCG's founder. This model is used by the organisation in order to determine the portfolio of
Business and brands as it is the most popular tool which helps the company while attaining their
ultimate objective (Alvarez and et. al., 2017). The model is discussed below:
 Starts: there are several products and services which have a high growth in market as
compared to the growth of the products and services of the Rival firms. This factor is
used by the company in order to invest more so that they can have a sustainable growth
into the market. Eventually when they grow at a lower rate than they become a cash cow.

 Cash cows: this factor is disposed of the low growth products with higher market share in
the competitive market. In this the organisation is required to invest less as they are
mature and successful already in the market (Ansoff and et. al., 2019). They are only
required to manage their business operations at the regular basis so they are only required
to manage their business operations at the regular basis so that the company can attain
there profit at the regular basis and this helps in developing a strong cash flow within the
Enterprise to become a star.
 Question mark: these are search types of goods which have low market operations but
have a high growth in market. This requires a sustainable investment to grow and expand
their business so that the company can defeat the competitors easily and grab a good
image of the brand in the market.
 Dogs: it is the factor in which the products which have low market share are not so
attractive and possess low growth in market. So it is important for the companies to
encourage the cash to break even but they are rarely used by the investors.
P2 Determine the opportunities for growth
Ansoff's growth vector matrix model
The Ansoff's matrix model is the model which is used by the company's to determine and
analyse the strategies so that the company can attain sustainable growth while providing their
goods and services to the targeted customers. This model was published in the year of 1957 in
Harvard Business Review. The model is discussed below:
 Market penetration: it is the primary stage in which the company used to focus on
increasing the existing product into the existing market place where the companies are
dealing.
 Product development: in this stage the company used to focus on introducing the new and
innovative products to the existing customer so that it will be beneficial for the
organisation as it helps them to satisfy the needs and wants of their targeted customers in
a better manner.
 Market development: in this stage the company used to focus on entering into the new
competitive market with the existing product in order to target the new customers
(Bagheri and et. al., 2018). This is also helpful in order to develop a positive brand image
into the market.

 Diversification: in this stage the organisation used to focus on capturing the new market
place by introducing their new product so that they can attract the new customers towards
innovative products.
AriDri has chosen market penetration as it is the less risky while on the other hand the
diversification is the most risky option. As in this option the company has to provide a new
product to the new marketplace so there are higher chances for the company to fail in such a
situation.
M1 what are the options for growth while using a range of analytical
Framework in order to take competitive advantage from the market.
AriDri company used to analyse several opportunities while adopting suitable strategy as
it helps them to have a sustainable growth into the competitive market. BCG matrix models used
by the organisation in order to determine the resources and develop it into the various units of the
company. It is the model which helps the organisation to analyse a single measure as it is the
simplest model (Burillo, Chester and Ruddell, 2017). This model helps the company to
determine the growth with respect to their share in the competitive market place and also helpful
in order to defeat the competitors from the market.
P3 Sources of funds with their pros and cons
It is important for every type of organisation to determine the best source of funds as it
helps them to raise their capital. There are several sources of funds which are mentioned below:
Crowd funding source of funds: it is the type of a source of funds which can be adopted
by the small organisation so that they can raise their funds from a large number of people from
the marketplace. This type of Concept is similar to the mail order subscription as it refers to the
internet registries.
Advantages
 It is the fastest way for the organisation in order to raise funds with no upfront fees.
 This platform is also helpful in order to take feedback and expert guidance from the
audience so that the company can improve their strategies while adopting their ultimate
goals.
Disadvantages
 It is not the easiest way to raise funds as compared to traditional manners.

 It is difficult for the companies to manage the risk of damage with respect to the repeated
forms and people.
Peer to peer lending: it is another type of source of funds which can be adopted by the
company as it is also online services where the sites used to match the lenders with the borrowers
(Ekanem, 2019). These functions are operated with lower overhead and provide achievement
services so that it will be easy for the organisations to raise funds. This is beneficial for the
lenders to get a higher return as compared to the Savings and investment with respect to their
goods and services.
Advantages
 It is the online application from peer to peer lending as it is the platform which is
available on the internet. It is just taken a few hours to meet with the lenders with
borrowers as it is combined with an automated matching process.
 It has the lowest access rate. It is used in providing direct money to the borrowers
through this platform.
Disadvantages
 It is the platform where the borrowers have to pay the application fees in order to apply
for the loan with banks and other traditional options as in this they are typical in carrying
an arrangement fees.
 The investing of sources of funds has to remove the underwriting process as it was used
in the pass a Credit check so that the borrowers can ensure that the organisation has a
credit working.
Venture finance: it is mostly used by the startups company. In this investors use to invest
their capital in business for a longer period of time (Eriksson, Hansen and Winther, 2017). The
capital amount which was invested by the people is called a venture capital and investors can be
called a venture capitalist.
Advantages
 It helps the company to expand their business while having an investment in capital. This
helps them to expand their business operations. The people who are investing as a
venture capitalist are themselves ready to take the rest of the risk that it will be for a
longer term success of the organisation. This is also helpful in order to take expert advice

which is beneficial for analysing the strategies which can be used by the company and do
attain their common goal in an effective manner.
Disadvantages
 The venture capitalist used to provide capital for a small company and in return they take
the equity of the company. This helps them to earn a tremendous amount of profit from
the small organisation as they become part of the company on the board. It is important
for the people to make decisions so that they can protect their investments in a better
manner.
 The startup company's owner should first present a detailed business plan to the person
who is investing under venture finance. This is used by the venture capitalist in order to
analyse the business in which they are investing their money so when they are agreed to
go ahead while verifying the details of the business which was shared by the owners of
startups. It can be also said that it is the lengthiest process in order to raise a refund.
M2 potential sources of funds which can be adopted by the chosen
organisation
The above discussed are the several sources of funds which can be used by any of the
organisation but the crowd funding is the fastest moth so it can be says that it is a potential
source of funds which can be adopted by the chosen Organisation in order to raise their funds as
it is helpful for the company in order to expand their businesses with a smooth functioning. It is
one of the best ways to increase the funds in the company. In this type of source of funds the
company can raise the funds by issuing an application to a large number of people with the help
of online platforms. It is treated as a valuable form of marketing as the platform also helps in
attracting the targeted customers (Karaevli and Yurtoglu, 2018). It is also used in order to take
the feedback from the audience so that the company can determine the loopholes in their
products and services so that they can improve that into an effective. AriDri has a good image in
the competitive market so it will be easy for them to attract the targeted customers and the result
will be enhancement of their sales.

Part 2
P4 design of business plan for growth which must include a financial
information and strategic objective for scaling up a business
AriDri is the company which is engaged in manufacturing the hand dryers. It is very
important for the company to develop a strong business plan so that they can introduce a new
innovative product into the competitive market. A business plan is a formal written document
which is talking about a detailed discussion with respect to the goods and services which are
offered by the company and the process which helps the organisation to attain their common goal
within a specified period of time. The business plan is discussed below:
 Executive Summary: it is discussed about the business plan in which the companies
engaged in introducing a product and services and the reason behind that preparation of
the business plan (Lapping and Scott, 2019). The Chosen organisation is engaged in hand
dryers equipment used by the targeted audience in order to wipe their hands after the use
of the washroom.
 Mission: the company wants to become the forefront of high drive Innovation and
Technology for almost five decades and work in order to remain the same for a longer
period of time.
 Vision: it is determined by the organisation to expand their business around the world so
that they can provide better services to the customers.
 Objective: the main aim behind the foundation of the company is to provide highly
reliable and quiet energy efficient products and services to their targeted audience.
 Good and services: As it was already discussed the company is engaged in manufacturing
the hand dryers so that the customers can wipe their hands without using any tissue paper
(Lima and et. al., 2019).
 Target Market: companies used to target the higher income of people so that they can
easily avail their products and services from the market.
 Promotional strategies: there are several promotional activities which can be adopted by
the company but at present the company is engaged in digital marketing while promoting
their goods and services as this platform helps the organisation to reach a huge number of
people at the same time.

 Finance: there are several sources of funds which can be adopted by the company so that
they can raise their funds in order to get a smooth functioning. The Chosen organisation
has adopted a crowd funding source of funds as it is beneficial for the organisation in
order to raise their funds in an effective manner (Li and Jay, 2020). It is the most
important for small and medium size businesses to determine and strategy so that they
can locate the resources in an effective manner which helps the company to achieve their
set target within a specified period of time frame.
M3 develops an appropriate business plan for the growth of the company and
securing the investment in order to set out the strategic objective in an
appropriate framework for attaining their targets.
Every business organisation is required to develop a business plan so that they can secure
their investments and growth into the competitive market. It is required by the organisation to
manage and analyse appropriate skills and resources so that they can achieve their common goals
in an effective manner (Zhong and et. al., 2018). An organisation has also developed a business
plan which helps them to manage and analyse in order to allocate the resources which can be
used by the company while achieving their objectives in an effective manner.
P5 exercise exit or succession options which are available for the small
business organisation. Explain their benefits and drawbacks.
Succession planning is the process which can be adopted by the organisation in order to
have a proper planning so that they can survive for a longer period of time by having a smooth
transmission of ownership, leadership and management of a family business and assets for the
upcoming successive generation.
Benefits
 This planning helps the organisation to survive for a longer period of time as from
generation to generation (Zhang and Conejo, 2017).
 It is also helpful in creating the Legacy.
Disadvantages
 This might be possible for the family members to come under pressure in order to keep
the ongoing business into the competitive market even if they are not interested then also
they are supposed to carry forward the business as it is from generation to generation
(Wang and et. al., 2018).

 The family business relies on trust but trust alone is not the efficient measure in order to
resolve the disputes which are between the family members.
M4 determines exit or successive options for small business companies and
contrasts the options and makes a valid recommendation
It can be recommended from the above discussion that small business organisations must
adopt successive planning options in order to survive for a longer period of time (Saliminezhad
and Bahramian, 2020). The exit option talks about leaving the company from the competitive
market which is the most difficult option to be chosen by the organisation. With reference to the
Susan organisation it can be recommended that the company must adopt a successive planning
opportunity so that they can achieve their objective in a longer period of time (Obisi, Samuel and
Ilesanmi, 2020). This is also an opportunity for the business in order to expand it around the
globe.
Conclusion
It can be concluded from the above discussion on the assignment of planning for growth
is that it is important for every business organisation to determine their opportunities for growth
which can be availed by them within a specified period of time. The Ansoff's growth factor
Matrix models help the companies in order to determine the growth opportunities which can be
availed by them. There are several sources of funds which can be used by the organisation in
order to and hence their capital so that they can have a smooth functioning. It can be also said
from the above report that every business organisation is required to develop a business plan so
that they can analyse their strategies which can be used by them in order to achieve their
objective and also determine the competitive market. It is important for the organisation to adopt
exit or successive options.

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