Growth Strategies and Risk Assessment for Airdri Ltd: A Report

This report focuses on growth planning for Airdri Ltd, a UK-based company specializing in hand dryers. It begins with an introduction to planning and its importance for business objectives. The report then undertakes a PESTLE analysis of the UK market to identify key factors influencing Airdri Ltd's growth, including political, economic, social, technological, legal, and environmental factors. Next, it evaluates growth opportunities using Ansoff's growth vector matrix, recommending a market development strategy. The report further discusses growth options using Porter's generic model, suggesting product differentiation for competitive advantage. Finally, it critically evaluates specific growth options, addressing associated risks and mitigation strategies, and concludes with a summary of findings and recommendations. The report utilizes various analytical frameworks and provides a detailed overview of business development for Airdri Ltd.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1: Analyse key consideration for evaluating growth opportunities and justify them within an
organisational context.................................................................................................................3
P2 : Evaluate the opportunities for growth, applying Ansoff's growth vector matrix................5
M1: Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage in context of company................................................6
D1: Critically evaluate specific options and path ways for growth taking into account the risk
of each option and how they can be mitigated............................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals.....................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Planning is the management process of think about activities needed for accomplishment
of specific and desired business objectives (Biddle and Taylor, 2018). It is important for
company's growth to plan each and everything in a systematic and effective manner.
Airdri Ltd. is a small scale enterprise of England, UK which provides hand dryer with
considering customer's comfort. Longevity, reducing noise, easy to use, low consumption of
energy are the services included in the product.
In this report pestle analysis discussed to identify key factors for growth, recognized
expand opportunities with use of ans-off's model. Further, porter's generic approach applied to
understand the competitive advantages for company, ways are explained to overcome risk
founded in business extension.
TASK1
P1: Analyse key consideration for evaluating growth opportunities and justify them within an
organisational context.
With respect to identify key thoughts that have direct impact on growth of Airdri Ltd,
pestle analysis of UK is undertaken for finding opportunities of company's successful expansion.
Affecting factors in development of organisation are as under :
Political :- This factor consists of governmental stability, tax rate, foreign policies,
monopoly, labour laws and more. These affects company's success in positive as well as negative
ways. Following are the impacts of this factor on Airdri Ltd :
 Controlled and low corruption, effective government policies stand for political
stability of United kingdom. This creates positive impact in terms of company's
business expansion in different areas of nation.
 Country's good relations with foreign countries also build many opportunities for
the development and exploration of firm.
Economical :- Inflation, exchange rate, interest rate, employment etc. all stands for
economic power of a nation (Birkin, Clarke and Clarke, 2017). UK's diverse market, popularity
as a preferred destination for foreign direct investment, communicates the economic growth of
the country. Impacts of economic situations on company are addressed below :

 Diversity in market brings several benefits for organisation to introduce its
products in different markets.
 UK is popular place of foreign investors which stands for numerous extension
possibilities for company.
Social :- This factor consider population rate, income level, cultural differences, buying
habits and health consciousness of people, educational background etc. (Bridge and Dodds,
2018). increasing population and income level of United kingdom's mankind rises the demand
for more products. With respect to Airdri Ltd following are the advantages of this element of
pestle analysis :
 rising need of consumers creating the opportunities for enterprise to develop
more products to fulfil the expectations of end users.
 Enhancing production and manufacturing generates the possibility for company
to grow business.
Technological :- Elements such as- producing products, distribution of goods & services,
use of internet and robotics included in technology factor. This affects organisation in numerous
ways. These impacts are as under :
 UK have world's developing research and development centres. Advanced
technological infrastructure of nation facilitate the exploring chance for
company.
 People of nation are more technology driven. This brings the significant impact
on business.
Legal :- Health and safety laws, consumer rights, competitive legislation, labour laws of
a country affects the business enterprises running within it. In terms of Airdri Ltd there are some
impressions on company :
 Through protecting individuals from being different against age, colour,
gender etc. organisation can take advantage of fulfilling legal conditions
on nation.
 Another important benefit is to expand business by maternity & paternity,
sick leaves, minimum wage, holiday pay in order to perform legal
obligations.

Environmental :- This factor considering weather and climate conditions, pollution, use
of water and energy resources, reducing the use carbon etc. (Gurumurthy, 2018). there are
various environmental laws of UK such as- climate change , pollution, wildlife laws that affects
the growth of company in certain ways :
 Airdri can grow its business and build a strong brand image by avoiding use of
carbon and plastic in its products. This added an value in making country
pollution free.
 Company can also expand its business within several areas of country through
producing eco friendly products and services.
Pestle analysis of Airdri reflects the best and significant opportunities for company in
respect of developing and introducing new products and expanding the business in several other
areas of nation.
P2 : Evaluate the opportunities for growth, applying Ansoff's growth vector matrix.
Ansoff's matrix is a strategic tool used for planning the future of organisation which helps
in successful evaluation of best suited strategy (Honig and Samuelsson, 2020). It is developed in
1965 by Igor Ansoff to assist enterprises in entering into new industry and expanding business
into existing. In terms of finding the opportunities for future growth of Airdri Ltd four aspects of
this model are applied below :
Market penetration :- It is the first and most important strategy of this matrix. When an
organisation wants to introduce new products in their existing portfolio within well known
market then this is best strategy to use (Ward, 2016). This helps in increasing market shares
from old products and services. There are some positive aspects of it such as- low risk, no need
for extra cost. On the other hand some negative aspects are also addressed like minimum growth
opportunities. It only suites when there is a scope of increment in market shares for existing
products.
Market development :- When a company targets a new market for existing market this
strategy is best for apply. This is significant approach for expanding business into different
region. There's high investment required due to advertising and marketing of existing products
into fresh markets. Risk factor is also high in this strategy because of higher cost involved in
entering into new areas. Numerous growth opportunities are available in this approach.

Product or market development :- Another crucial strategy of Ansoff's matrix is used
when a firm wants to introduce a new product into existing market in order to explore business.
This is a best method for companies who have high market shares. There are numerous
possibilities of success in development and launching of latest products. This creates the positive
impact on enterprises. On the other hand it has some negative aspects such as- high investment
and high risk. These are addressed as drawbacks due to requirement of promoting, marketing and
distributing of new product.
Diversification :- It is the last but not least approach of Ansoff's growth vector matrix.
This strategy is applied when an organisation wants to introduce a new product into a fresh
market. There are chances of highest growth and greatest risk of failure at the same time. It is
used by financially strong companies who can invest money on research & development for
successful launch of product and also have ability to bear loss of defeat (Hu, 2016).
As per the above analysis of Ansoff's matrix it is found that each and every strategy is
suitable in particular conditions. For instance market penetration is worth in launching modified
product into old market. Market development best suited for introducing new goods within new
markets. Product development stands for launching new product for expanding business.
Diversification performed wider role in establishing innovative items into new market. With
respect to growth opportunities for Airdri Ltd it is suggested to adopt market development
strategy due to greater opportunities for succeed. Risk is low as compared to new product
development and diversification methods.
M1: Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage in context of company.
Here porter's generic model is used to identify the growth options for Airdri Ltd in terms
of getting competitive advantages. This model helps the organisation to analysing and
understanding the competition and choosing the best strategy for gaining benefits over rivalries
(Leick and Lang, 2018). There are three major strategies of this discussed below :
Cost leadership : This strategy allows companies to set low prices for the products and
services for getting competitive benefits in respect to become lowest producer in the industry.
There are two ways for Airdri to apply cost leadership. One is through eliminating production

and manufacturing cost or by reducing the selling cost of the product. This leads to sale and
revenues of the firm.
Differentiation : It permits organisation to differ its goods as compare to competitors.
Through producing unique and specific products or by launching modified features of existing
items added a value for company to enjoy aggressive advantages over challengers. This
increases the growth possibilities of firm.
Focus : When company's focus is on its niche market this strategy best suited for the
situation. As per this approach business firms can focus only on cost leadership of
differentiation. Cost leadership allows enterprises to enjoy customer loyalty which increases the
sales. While, differentiation plays significant role in gaining competitive advantages through
setting high sales prices which lead to profit and revenues of firm.
For Airdri Ltd it is recommended to use product differentiation strategy for getting
competitive benefits. Because company has a brand reputation over 40 years of offering reliable
and durable products with consuming low energy and power. Thus, company doesn't need to use
low cost prices in order to make customer base.
D1: Critically evaluate specific options and path ways for growth taking into account the risk of
each option and how they can be mitigated.
Risk is the uncertainty involved in application and implementing any strategy or activity
that affects the entire business of company (Papageorgiou and et. al., 2019). Possibility of bad
happenings considered as risk. If Airdri Ltd adopted the cost leadership strategy there is a risk
related to decreases of profits due to setting lower selling prices for its products. By choosing
differentiation option creates uncertainty for company in terms of product failure due to
introducing unique and specific item. This factor also leads to high investment and material cost
used in producing & manufacturing innovative goods. These risks are overcome through
promoting the specific by before made. For instance company can communicate and market new
features of a product through visual demographies on social media platform before final
production. This is cost effective as well as fastest medium of informing customers about goods
and services. It will help the company in getting feedback from users.

CONCLUSION
It is summarised that planning plays vital role in implementation and application of
different activities of business. Pestle analysis performs significant role in analysing the political,
economical and other conditions for knowing the growth and expand opportunities for company.
Analysing and evaluating Ansoff's matrix also essential in identifying exploring possibilities of
organisation. For successful operation of enterprise it is suggested to adopt product
differentiation strategy of porter's generic matrix. Marketing and promoting of products before
manufacturing is recommended to minimise the risk of goods failure.

REFERENCES
Books and Journals
Biddle, N. and Taylor, J., 2018. Indigenous population projections, 2006-31: Planning for
growth. Canberra, ACT: Centre for Aboriginal Economic Policy Research (CAEPR),
The Australian National University.
Birkin, M., Clarke, G. and Clarke, M., 2017. Retail location planning in an era of multi-channel
growth. Routledge.
Bridge, J. and Dodds, J.C., 2018. Planning and the Growth of the Firm. Routledge.
Gurumurthy, K., 2018. Business Transformation Planning for Leaders: A Tactical Roadmap for
Achieving Profitable Growth with the Highest Return on Capital. CRC Press.
Honig, B. and Samuelsson, M., 2020. Business planning by intrapreneurs and entrepreneurs
under environmental uncertainty and institutional pressure. Technovation, p.102124.
Hu, R., 2016. Planning for growth: Urban and regional planning in China.
Leick, B. and Lang, T., 2018. Re-thinking non-core regions: planning strategies and practices
beyond growth.
Papageorgiou, G. and et. al., 2019, September. Effective business planning for sustainable urban
development: the case of active mobility. In ECIE 2019 14th European Conference on
Innovation and Entrepreneurship (2 vols) (p. 759). Academic Conferences and
publishing limited.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.