Planning for Growth: Airdri Limited's Business Development Report

This report focuses on the growth strategies for Airdri Limited, a successful SME in the UK. It begins with an introduction to growth planning and the company profile, highlighting its establishment and business in electrical equipment. The main body analyzes key considerations for evaluating growth opportunities using PESTLE and Porter's Five Forces, and explains different growth strategies such as market penetration, product development, and diversification using the Ansoff Matrix. The report also covers funding sources for the organization and outlines a brief business plan. Finally, it explores exit strategies for small businesses, concluding with a summary of the findings and a list of references.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context. ...................................................................3
P2 Explain the different growth strategy which can be used by the selected organization....5
LO 2.................................................................................................................................................7
P3 Explain the different funding source for the organization................................................7
LO3..................................................................................................................................................8
P4 Explain the brief business plan of the selected organization............................................8
LO 4...............................................................................................................................................11
P5 Explain the different strategy which can be used at the time of the exit for small business.
..............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth refers to the activity that supports the firm to develop plan and tracking
the growth in terms of revenue of the business. Developing a plan for the growth helps the
organization to allocate the resources for adapting to the changes that are happening in the
industry due to intense competition or due to advancement in technology. Small and medium
enterprises are independent firms that employ very few workers, it requires less amount of funds
to start business venture etc. (Wu, 2015). The Report is based on Airdri Limited. It is one of the
enterprise that is listed in top 100 successful SMEs by Thames Valley SME 100. It was
established in year 1974 in Oxfordshire, UK. It was founded by 2 entrepreneurs that are Peter
Allen and Peter Phillips. Company deals in various types of electrical equipment like Hand dryer
etc. Currently the annual turnover of Airdri Limited is between £2 to £10 million (Kumar,
2016).The Report will outline various strategies for growth of the company with the help of
Ansoff Matrix, PESTLE analysis etc. Further, it will describe business plan of the firm that will
include strategies objectives, financial information etc. It will also explain various sources from
which company can raise funds. At last, the Report will highlight different exit options for small
business.
MAIN BODY
LO 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
Growth opportunity for the organization can better be understand by evaluating the market
as this is the palace where generally opportunity for is presented. PESTLE and the Porter's five
forces implication are the best model to uncertain the same.
PESTLE
Political Factor: This are the factor in which there is a influence from the political party
in the business. This factor always help the Airdri as in the UK the government is helping the
SMEs in establishing the business which has helped the organization, UK government has also
helped the Airdri in providing the fund whenever the company was under the need of the money
at a low rate. As the UK government Support the SMEs to establish in the UK it is good
opportunity for AirDri to expand the business.

Economic Factor: This are the factor which relates to the factor that are affecting the
business due to economic condition in the country. Airdri has good oppourtunity to expand as
the inflation rate and the tax rate in the UK always prefer the local company which is good sign
for growth (Adi, 2015).
Social Factor: This is the factor which affects the organization due to social environment
of the country. This will offer good opportunity for Airdri as there is a good trend of the Hand
dryer in the UK mainly in the old age people..
Technological Factor: This is the factor which has affected the business very badly in
the last couple of the years as in the rapidly changing environment there is a vast change in the
technology of the production and as the Their are many technique which is available in the
rapidly changing market for the AirDri to get a competitive advantage.
Legal Factor: This is the another factor which has affected the business from the starting
stage itself as laws of the UK has somehow stand tall in hampering the profit margin of the
business as the labour law and the consumer law are to strong that the company has to change the
function of the business according to the same which eventually affects the business in a
negative way. At the same time legal factor will offer the good opportunity for the business as
the legal factor will safe guard the business.
Environment Factor: As there is good demand of the environment friendly production
the market it is good opportunity for the business to grow as AirDri used to produce the
environment friendly product only. (Carraher, 2018).
Porter's Five Forces
Competition in the industry (High)
Airdri has to face the good amount of the competition in the industry as there are many
big market leaders just like iconic, Ceramix are ruling the market and the goodwill of the
competitor are also helping them. But at the same time it offers the good opportunity for the
Airdri as the Price is the thing which will helped the Airdri in attracting the customer toward the
company as at the price at which the product is sold by the company is too good as compare to
the other.
Threat of the new entrants (low)
This is the force which generally does not affect the Airdri as there are many less
company who are looking to come in the industry as they are afraid of the big company who are

already present in the market. This opens the good opportunity for the Airdri to cover the local
market as the big competitor are not that spread in the UK in the market area coverage.
Bargaining Power of the Supplier (High)
This is the force which generally affects the Airdri as the big organization in the industry
used to take the raw material at good quantity which eventually helps them in getting the big
discount and in the case of the Airdri it does not happen which eventually reduces the profit
margin of the Airdri which eventually affects the business in the negative way. At same time it
also opens the opportunity for the business as the Airdri used to purchase less raw material the
risk of damage is also minimize.
Bargaining Power of the Customer (Moderate)
This is the force which generally affects the organization as the customer are having the
different organization option to select from it eventually affects the organization sells in the
negative way as customer generally looks at the good reputation company to buy the product of
the same but the it opens the opportunity for Airdri as Airdri is able to earn the good name so
that the company can attract the customer toward the product.
Threat of the substitute products (Low)
This is the force which generally does not affect the business as there is no such substitute
of the Hand dryer in the real which has resulted in the positive way for the organization. Which
has also opened the opportunity for the business to pursuit with the same line of the product for
the longer period of time..
P2 Explain the different growth strategy which can be used by the selected organization
Airdri can use the different way to expand their business and can take the help of the
Ansoff's matrix for seeing the different aspect of the expansion.
Market Penetration: Company can introduce the new strategy and the policy in the
market to increase the sale of the product in the existing market itself it will help the company in
touching more customer as compare to the past as more customer will be aware of the company
product as compare to the past. The company has to make sure that the company is using the
correct tag line and the message to be promoted for the product so that the customer is more
interested in looking the product and buying the same. Company can also change the packaging
or the structure of the product in such a way that it attracts more customer as compare to the past.

In the Airdri case company can promote the same product with the different tag line to catch the
eye of the customer.
Market Development: It is the another strategy in which company can expand by selling
the existing product of the company into the new market, with the sole motive of connecting
more customer at once. Airdri can do it by looking at the market which is more suitable for the
product of the company and then finding out the target customer which can be targeted about the
product. The company also can introduce the new product in the market at a low rate as to attract
the customer toward the company. Airdri also has to make sure that the company uses the best
marketing policy which is available to them to promote the awareness of the product in the new
market. In the case of the AirDri the company can look to cover the rural or the developing local
market by promoting the awareness in that location. (Dale, 2019).
Product Development: It is the another strategy which can be used by the Airdri for the
purpose of the expansion in this the company has to manufacture the new product in the market
by looking at the opportunity which is present in the market and need to develop the product
according to that. Airdri also has to make sure that the product which is developed is by the
company is new in the nature and the customer in the market is demanding the same product to
satisfy the self need, company can do this by improving the quality of the product of the
organization or by developing the product with the help of the latest technology. The company
can use the different operation tool to implement this strategy in the market as it will decrease
the wastage of the raw material and will also help in increasing the efficiency of the production
in the Airdri. In the case of the Airdri the company can look to bring the Hair Drier with the
Hand drier as there is a good demand in the UK market.
Diversification: It is the another strategy which can be used by the Airdri in the expansion
of the business in this the company can move into the new market with the new product to be
offer to the market so that the company is able to cover the greater market area with the help of
the product which is already in need by the public of the new market. This policy can be
implemented by the help of the strong market research and the knowledge of the market in which
the company is intending to go.
The best strategy for the Airdri will be the Product development as the company is in a good
financial position so company at this time can take the risk of introducing the new product line.

LO 2
P3 Explain the different funding source for the organization
Fund or the money for the organization said to be live blood for the organization as funds
is require at every stage of the business operation. Airdri will also require the good amount of the
fund in running the business activity of the business, Airdri has variety of the source to choose
from. Some of the source of the funding is as follows:
Own Capital: The Airdri can invest the own money into the market which the company
has earned from the operation in the past. The company can invest the money by the reserve
which was made by the company from the past profit. This source will help the company in
saving the tax or interest which need to be paid on the other source of the income as it is the own
money the owner also not have any sort of the risk of it. But at the same time it can affect the
business also as the use of the money for the new project will hamper the working of the old
product also as the cash reserve for that product will be reduce (Grutters, And et.al., 2017).
Venture Capital: It is the another source of the funding which can be used by the Airdri in
this source there are many institutions which is used to provide the help to the SMEs in
establishing the business both in the financial way and the information way. This source will
help the company in taking help of the Venture capitalist in making the policy for the business as
they are having the good idea and the experience of the market, but at the same time it will also
decease the profit of the business as the venture capital sometime takes the part of the profit from
the individual organization income in total.
Loans: It is the another source of the funding for the Airdri as it the government of the UK
is promoting the privatization in the UK and helping the SMEs to grow in the market, they are
providing the low rate or interest loan to the SMEs so that they are able to grow in the market
very easily and as the organization is having very good credit rating and the very good overdraft
facility available the company can go for it as they will be getting the loan at a low rate as
compare to the other business. This will help the business in getting the large amount of the fund
as compare to the other source but at the same time it will also create the problem for the
business that the fund which is provided by the bank used to be repay at a fixed time otherwise
the rate of the interest used to be high as compare to the other source of the income (Perera,
2017).

Share Capital: This is the another source of the Finance which is available for the Airdri
in which company can issue the share of the company and can ask the public to apply for the
share. This source will be very liable as the risk in this source is the minimum but at the same
time this source will create the problem of the interference in the decision making of the
organization as all the shareholder force the company to make the decision which is in the favour
of the shareholder.
Airdri can also looks for the government subsidies as the government of the UK used to
provide the subsidies for the SMEs as they are promoting more and more SMEs in the UK as
SMEs contribute very positively in the development of the country economy.
LO3
P4 Explain the brief business plan of the selected organization
Business Plan
Executive summary
This Plan will highlight the objective of the Airdri company to bring the wireless Hair
dryer in the market. Further this plan highlights the STP, PESTLE and the SWOT for the product
to understand the validity of the product briefly. Further this report highlights the Budget with
the minimum capital requirement and in the end the report highlights the marketing mix which
need to be applied by the Airdri in promoting their product in the market (McKeever, 2016).
Objective
Specific: specific objective is to bring Hair Drier can be operated without the wire and will
consume very less electricity
Measurable: The objective is measurable as the company will see the outcome of the product
with other company product.
Attainable: The goal is attainable with the help of adopting new technology which is used by
competitor.
Relevant: It is relevant as there is a good demand of the product.
Time bound: The objective need to achieve by one year.
STP

Segmentation: Airdri will be dividing the all customer into the different group on the
basis of the result of the survey that is the people who are having the need, person who are not
having the need and who are not sure .
Targeting: Airdri now will be targeting the segment of the people having the need and
also who are not sure about the need of the product.
Positioning: It is the last stage the company will now look to position the product in front
of the segment by promoting the product with the attractive tag line and will also promote the
need of the product in that segment.
PESTLE
Political Factor: This product will successfully defend the political factor as the product
is more environment friendly and the UK government is promoting the environment friendly
product it will eventually result in helping the product (Wolf, 2015).
Economic Factor: This is the factor which will also help the product as the inflation rate
and the tax rate is at a positive side which will eventually reduce the cost of the product.
Social Factor: This is the factor which will be also on the positive side as there is a good
trend of the hair dryers specially among the women in UK.
Technology Factor: The company will take the help of the technology only in
developing the product for the organization but the company has to make sure that the company
regularly evaluate the success of the selected technology.
Legal Factor: The company will be affected by this factor as the company will need to
higher the more worker which will eventually increasing the cost of the company as the
minimum wage rate in the UK is too high as compare to the other country.
Environment Factor: The company will able to defend this factor as the new product of
the company is environment friendly and will consume the less electricity in the functioning of
the product.
SWOT
Strength: Airdri biggest strength is the price of the product of the organization, as Airdri
used to sell the product at very low rate as compare to the other competitor in the market. The
second biggest strength of the company is the quality of the product which is offered by the
company to the customer as Airdri always make sure that the product is off a best quality as

irrespective of the feature of the product. The new product which will be develop will be bring at
the low price so that the Airdri do not loose the customer.
Weaknesses: The biggest weakness of the Airdri is that the company is not able to cope
with the technology change and face the problem of the less feature product to be offered to the
public which eventually result in losing the customer to the other competitor in the market. The
same in related to the new product as the company is adopting the new technology but has to
make sure that evaluate that on the regular basis.
Opportunity: opportunity which is presented by the market to the company is that the
company can use the technology to produce more efficient product with lowering down the cost
and also can produce the product which is needed by the consumer in the marketon the basis of
that only the company has adopt the new technology to develop the new hair drier. (Zhao and
et.al., 2016).
Threats: The biggest threat for the Airdri is the rapidly changing trend in the market as
the need of the customer used to change on the regular basis it gets difficult for the SMEs like
Airdri to change with the same. As the company is introducing the new product because of the
trend in the market, but also has to make sure that the company is looking at the trend at the
regular basis as it can be changed.
Securing Investment Techniques
Airdri company will be using the Approach experienced investors and will recruit well to secure
their investment.
Budget
Airdri will be requiring at least of 50,000 pound in launching the new product into the market.
Resources Rate in pounds
Rent of the warehouse, factory 8000
Utility bills 12000
Wages of the employee 15000
Travelling charges 8000
Miscellaneous expenses 7000
Total 50000

Marketing Plan
Product: The company will be introducing the hair dryer which consumes the less
amount of the electricity at the time of the charge and also works without any wiring.
Price: Airdri will be using the penetration pricing method in which the company will be
keeping the price of the product at the low rate at the initial stage so that the company can cover
the larger market area and then slowly will be increasing the price of the product.
Place: The company will be launching the product in the local market itself and if the
product will see the good response then the company will launch the same product in the other
area of the UK also.
Promotion: The company will be taking the help of the different promotional platform to
promote the product including the social media platform and the local platform like newspaper,
radio and the television advertisement (Kumar 2016).
Monitoring and Controlling
The performance of the product will be measured on the benchmark which will be decided
before hand itself and the original performance will be compared with that.
Controlling will be done with the help of recruiting the new and skilled employee in the Airdri.
LO 4
P5 Explain the different strategy which can be used at the time of the exit for small business.
It is never easy to closed the business for anyone that easily it requires the good strategy to
exit from the market. Some of the most common used strategy for the exit from the market are as
follows:Liquidation: This is the most commonly used strategy by the entrepreneur in the today's
scenario in which the owner of the organization used to sell all the assets of the business and
closed the functioning of the business. Generally, this type of the exit strategy is used by the
individual who is only decision maker in the organization or all the function of the business in
operated by the one individual only. This strategy is good when the owner need to closed the
business very quickly and this is a very simple and easy process to complete the task.
Liquidation also has some negative point also as the owner used to get the minimum return on
the investment which has been done by the owner.Liquidation over time: Liquidation over time
is the strategy in which the owner of the firm used to take out all the profit of the business and
then shut down the business in place of reinvesting the profit again in the business. The main

advantage which is brought up by this strategy is that the owner used to get the maximum return
out of the closure of the business. But the disadvantage which is brought by this strategy is that
the sale value of the business use to decrease as the profit has been extracting from the business,
it also creates the uncertainty among the shareholder (Hawkey, 2017).
Keeping the business in family: It is the another strategy which is used by the owner
generally this is the strategy is used for the business who are having their operation at a very
wide area and now is not able to maintain so they give their business to the other member of the
family. The big advantage of this is that it allows a smooth transfer of the business from one
owner to the other which helps the business in not losing the good amount of the time. But the
big disadvantage which is brought by this strategy is that it is not necessary that all the member
in family that they can carry out the business activity that smoothly.
Selling the Business to the employee: This is the strategy in which the business owner used
to sell the business to the employee of the business as the owner was not willing to carry on the
business. The biggest benefit which is brought by this is that the owner has to not wait to find the
new owner and the business transaction used to take place very smoothly. But the one of the
biggest disadvantage of this strategy is that it is not surety that the employee of the business is
suitably qualified to take over the business that smoothly (McKeever, 2016).
Airdri can use the Liquidation over time as the best strategy to exit from the market as it will
help the company to get the maximum outcome from the market.
CONCLUSION
After going through above report it has been summarised that the organization is at the good
position to expand the business. After that it has been summarised that there are many growth
strategies available in the market and the company can use any one out of that to expand the
business and also there are many source of the fund available for the organization and with the
use of that company can introduce the new product in the market and the report shows what can
be the market plan for that.

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