Strategic Growth and Funding Analysis for Vectair Holdings Limited

This report provides a comprehensive analysis of Vectair Holdings' growth opportunities. It begins with an introduction to strategic business planning and evaluates growth opportunities using PESTLE and Porter's Five Forces analyses. The report then applies the Ansoff Matrix to identify growth strategies such as market development, market penetration, product development, and diversification. It explores potential sources of funding for business expansion, discussing the advantages and disadvantages of each, including personal savings, investors, and loans. Furthermore, the report outlines the key components of designing a business plan for Vectair Holdings, encompassing financial and strategic objectives. Finally, it examines exit and succession options for the company, considering their benefits and drawbacks. The report concludes with a summary of the key findings and recommendations for Vectair Holdings' future growth.

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Evaluation of the growth opportunities in the context of the Vectair holdings.....................3
P2 Ans off matrix for growth opportunities ...............................................................................5
P3 Potential source of funding in the business with its advantages and disadvantages of each
source..........................................................................................................................................7
P4 Designing a Business plan for Vectair Holdings Limited.....................................................9
P5 Exit or succession options of the Vactaire holdings with its drawbacks and benefits........12
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Planning for growth is the strategic thinking about business. It is one of ways to develop
business. This can happen by applying changes in the company. By this, organisation can
generate revenue for its entity. Market is changing on regular basis with new technologies
implemented by entity. It can create chances of development for it.
This report will discuss key considerations for the growth opportunities. It will study Ans
off Growth Matrix by evaluating the opportunities for growth. There will be potential sources of
funding which are available in business. It will discuss about making business plan, which
includes financial and strategic objectives. This study is about exit and succession options with
its advantages and disadvantages.
P1 Evaluation of the growth opportunities in the context of the Vectair holdings
For reviewing growth opportunities various plan are made to develop company. There are
two ways for developing of entity. These are PESTLE Analysis and Porter five forces model
Pestle analysis for analysing the external environment of the organisation. Both analyses can
help in finding out the loopholes in Vectair Holdings. This company is operating on the hygiene
products for the people.
PESTLE Analysis of the Vectair Holdings is:
 Political factors - this is one of the factors, which is helping the company to make its
development. It directly impacts on entity which is making the working complicated
because of this factor. In this factor changes of the rules and regulations. If government
makes the changes in tax policy then organisation whole working will change. If some
changes are made on the trade policy will directly affect the sales of the Vectair
holdings. Therefore, business place must be chosen wisely that can prevent from this
type of continuous changes (Rudolf and et.al., 2018).
 Economic factors- this factor has long termed effect on any company. These are
dependent on the market conditions. At the time of inflation in that case product prices
are increased and buying capacity of the consumer is decreasing. It will affect the profits
of company. This factor includes interest rates, foreign exchange rates, inflation rate and
many more. In inflation, product prices are more and vectair holdings have to face very
difficulty in selling the goods (Campbell, 2017). Purchasing power of the buyer is not

that much to buy products and their fully focus is on the saving of product. Company
has to make new strategy for facing this type of the situation.
 Social factors - it includes demographics, population, cultural trends, lifestyle affect the
selling of firm. As Vectair is operating in hygiene products and in that case
segmentation of the market is made on basis of the products they are targeting for which
age group. It is based on age, gender, income, place, buying behaviour.
 Legal factors-in this factor changes in the law are affecting the business. Like labour
law, consumer law, safety law and many. In Vectair Holdings, employees are doing the
business in hygiene products and if its related law changes then it will be difficulty in
operating in that situation.
 Environmental factors - this factor is not only related to the climatic conditions but it
has a wider meaning. While doing the business its working is affecting the surrounding
environment. Like waste material while making the goods smells bad and it is affecting
the society. Its adverse impacts on the air.
 Technological factors - this includes using of advanced type of technology which can
improve in quality of the product. This will help in selling of products due to its
attractiveness of the goods. It can be change in packaging, labelling, branding and more.
Vectair Holdings is also implemented in their company.
Porter’s five forces
 Competition in the industry- in every industry, there is competition due to the
competitors. The more will be contenders risk can also increases. All firms which are
under the same industry making similar products. Price wars and grabbing the
opportunity is common (Rudolf and et.al.,2018).
 Potential of the new entrant - if company is fully established in that case chance of
enter of the new firm are difficult. Vectair Holdings is well established firm in that case
there is no threat of the new firm in industry,
 Power of the customer's- clients of any industry has power to make the company
products more popular or nowhere. These are the persons who are buying the products
and through them only entity is earning the profits.
 Power of the suppliers- if there is only one supplier, in that case an organisation has no
chance to purchase its raw materials from them only. In middle of the financial year, if

company is changing its suppliers then it will be costly to the entity that's why firm has
made long-term relationship with the suppliers and this will help in future as well. In
Vectair Holdings, has already made long-term relationship with the suppliers which are
helping them to easy supply of the raw material.
 Threat of the substitutes - if there will be lot of substitutes for same products then
buyers can switch anytime. Therefore, entity must ensure that quality, quantity of
product is good and then only customer will not switch to other firms (Sanchez, 2018).
Vectair Holdings is follows Porters five forces which are helping the firm for development. It is
helping to analyse entity loopholes and recovers them as much as earlier.
P2 Ans off matrix for growth opportunities
Ansoff Matrix is a tool for the growth of an entity. It is helps in finding out ways through
which company can make development by grabbing opportunities. This will help in reaching
success. It was invented by H. Igor Ans off in 1957.
There are four stages involved such as Market development, Market Penetration, Product
Development, and Diversification that is very helpful for the company.
 Market Development - it refers to targeting the new market and it will support in
maximising sales and popularising products. Just try to sell the products to new people.
Through this, product is recognisable in market and helps in increasing brand value of an
entity. For this finding out the ways through which new opportunities and threats are
identified and help in growth of the company (Rudolf and et.al.,2018). Entity can use
more channels from which product can reach to customer. It can be on line as well as off
line, through retailers and whole sellers. It can also be via agents or intermediaries.
Vectair Holdings is selling its hygiene products by various modes which helps in
making the goods popular. For this, segmentation of the market is done through age
group, culture, gender, place etc if product is needed to rebrand or repositioning of the
product then marketing is better option for this.
Diversification- it means the product is diverse as well as customers who are buying the goods
are also different. They are trying to reach new clients and help them to increase sales of product.
It can be risky in selling the products of hygiene in new place but chances of earning profit and
loss are equal (Olesen and Carter, 2018). This force of porter can be facilitative in expanding in

business. Many companies use this factor to grow its business. Vetair Holdings has also tried to
sell its products in new market so it can prosper its operations in other places.
 Market Penetration -in these products are similar and sold to the same clients which is a
bit difficult in this competitive market. For this many sales techniques which are used by
the company to attract customers. It is one of the strategies which is increasing the loyalty
of consumers towards the organisation. There are more methods from which increase of
sales takes place are offers, discounts and many more. It will attract customers to buy the
product. Many products use low pricing strategy which is helping entity to cover the
mass market coverage. To maximise sales public relation is more important which is
helping the entity to generate more opportunities of development if the product. Like
owner must analyse the product and identify which has potential of becoming successful
and which is not. Through this firm get to know about chances of survival of the product
and its investment needs. For Vectair Holdings is the company is selling its products by
using more promotional methods. It is more facilitative in handling the sales of the
product. This entity is also determined chances of survival of the product which is more
helpful in taking the decision of investment.
 Product development- it means goods which firm is selling requires the innovation or
additional features for selling the product (Sanchez, 2018). Clients is bore by seeing the
same products and now trying the to switch to different firm. Changes can be made in the
packing, labelling, branding, adding some new features and many more which is helping
in the product development. Product development is made by considering the taste and
preferences of customers. It will help in making to grow more customer of firms which
will help in achieving the objectives of the company. In the Vectair holding also working
on the products which requires adopting changes in product. After some additional
features are added then only product is sold in market. It will be helpful in making the
company to grow more.
P3 Potential source of funding in the business with its advantages and disadvantages of each
source
For starting of the business or expanding money is needed. It is helps in making the
company to grow more. For choosing the correct finance source is the toughest job. It has lot of
risk involves. Through this only people get chance to show the talent via their business. it is

more helpful in supporting the businesses, now there are many billionaires who want to invest in
the new business. They want to represent talent of the people to all and help in making the entity
more successful. There are many entrepreneurs who have good ideas but lack of fund didn't want
to become their idea prosperous. There are many sources of funding which is helping the entities
to flourish their idea. Some of them are :
 Personal saving and assets- it is one of the source of fund which organisation already
have. It is owners saving and assets which enhance of the sources of funding. It is more
helpful due to no extra cost is charged in getting it (Zhu and Tang, 2018). Extra costs
means interest or sharing of the returns with investors. Assets of the person can be fixed
assets and current assets. In fixed assets land and building, machinery or any immovable
property which has more working life. It is one of the main source of fund in the
company. It is one of the most reliable source of the company. From this more sources of
revenue can be generated. It can be more helpful due to its prices appreciate after some
period. It will be more helpful in usage of this fund in the business.
Drawback - in this all the savings which has been saved for more time period is all gone and
there are few chances of getting back it. the saving which can be used in the business as pension
for the old people. It can be helpful in situation of the bankruptcy and in emergency
circumstance.
 Investors- if firm has good idea and just lacking behind in the funds then persons who is
having the funds will see the balance sheet and if they are satisfied in that case only they
will provide or invest in the company. He is the person who is taking all the risk because
he has belief in the idea and which is helpful in growth of the business (Sanchez, 2018).
There are two types of investors one is the silent investors who just invest money in the
business and wait for getting its returns. Other one who is investing in business and help
as an active partners (Zhu and Tang, 2018).
Disadvantages - in this type of source of fund owner of the business needs to happy the
investors. Now interference of the investor increase in the business (Rijal and et.al., 2018). Some
control of the business is in hands of that person. Like risk, profit is also shared with investors.
 Bank loans
It is common method by which Vectair Holdings can raise finance in the best possible
manner. Generally, principal amount is to be repaid by the firm along with interest accrued on

the same. This implies that along with main loan amount, interest is paid by the company and as
such, firm is required to paid the amount in a better way. This implies that business is required to
pay further payments.
Advantages
 It is advantageous because interest accrued can be calculated as interest rate is fixed.
 The main merit is that as compared to others, it is a cheaper source of finance.
Disadvantages
 Debt burden increases as more of the amount is to be paid on regular instalments.
 Liquidity position and solvency gets affected if default is made by firm.
 Retained earnings - It is another source of raising funds from the profits attained in a
previous year. This means that firm can easily attain source of funds in effective manner.
The retained earnings are provided in relevance to profits earned and certain margin of
the same is retained by company. Hence, it is quite useful way to attain funds. It is useful
source of finance as no burden arises to pay amount to stakeholders of the business.
Advantages
 It is advantageous as no external party is involved in providing funds.
 It is suitable for attaining desired funds and no burden prevails to repay funds.
Disadvantages
 Retained earnings is not liked by investors as dividends are not paid to them because
profits are not distributed which disheartens shareholders.
 It leads to over capitalisation as more of funds are there which can lead to wastage of
funds.
P4 Designing a Business plan for Vectair Holdings Limited
In relation with operating the business activities in the market there will be suitable
development and enhancement of various operations which will be attainable and adequate as
per making raise in the operational efficiencies and ability to meet the challenges in the market.
Thus drafting a business plan which is consists of all the information such as market analysis,

operational analysis, financial feasibilities and the strategies to meet the competition in the
market.
Background & Overview:
Vectair holdings is currently operating in hygienic products which will be served in UK.
Professionals are approaches towards expanding the business operations throughout UK on both
segmentation such as Online and in retails (Zhu and Tang, 2018).
Vision and Mission:
Objective of Vectair Holdings is for facilitating the hygienic products in the market with
consideration of appropriate environmental sustainability as well as development of operations
for having successive growth. Considering the profitability rise in the revenue band turnover they
have approached towards operating the business in online and retail trade practices.
Marketing concept
Marketing mix
MARKETING MIX OF VECTAIR HOLDINGS – hygienic products
vectair system are a leading technological innovator, manufacturer and supplier of air
care and hygiene products in a number of sectors worldwide. They are delivering sanitary
products, air freshening scent, hand washes, skin care etc. the marketing mix consist of product,
price, place, and promotion.
1-PRODUCT- Vectair holdings is a global brand name in antiseptic solutions, hand
wash, soaps and sanitisers. Antiseptic liquid is the original product under vectair holdings (Wu,
2018). It is used in wounds to prevent it from germs. Apart from the broad product categories in
its marketing mix, vectair has its product line according to the country's needs.
2- PRICE- Vectair uses a varied of pricing strategy in its marketing mix. The product are
priced competitively but having slight high price than brand like dettol or savlon.
3- PLACE- Vectair has a remarkable distribution all across the globe. Its product are
sold more than 150 plus countries in entire world. It also uses the direct channel where it
provides direct deliveries to the customers who place bulk orders like hospitals. It is also
available in Amazone, flip-kart etc.

4- PROMOTION- vectair spends heavily on advertising. It uses paid media of
communication like radios, television print adds as its marketing mix promotional strategy. It
used to publish its own articles in newspaper regarding the hygiene. On image building part it
also participates in CSR activities. They also use a platform like Facebook and twitter for their
promotion.
Competitor analysis & Target market:
Vectair Holdings have various rivalries stated in the market which are competing the
business in a way of generating the profitable gains and management of operations. However, to
bring the qualitative products and services among the buyers they have to meet the challenges
and have to be better than the rivalries such as Northwood Hygiene Products, Cleaning, Hygiene
Distributors Ltd etc.
Operational structure
organisational environment:
In relation with analysing the consumers needs and preferences accounting to products
there will be preparation of effective operational plan (Rijal and et.al., 2018). Vectair Holdings
have approached towards appointing the highly talented and skilled workforce who would
analyse and ascertains the requirements of their buyers and bring the effective changes in
operations.
Financials feasibility
Budgeted cash flow statement:
FORECASTED CASH FLOW STATEMENT
Particulars
Initial
invest
ment
Janu
ary
Febr
uary
Mar
ch
Apri
l May June July
Aug
ust
Sept
emb
er
Octo
ber
Nove
mbe
r
Dece
mbe
r
% sale per
month
0.04
%
0.04
%
0.04
%
0.03
%
0.03
%
0.03
%
0.03
%
0.03
%
0.03
%
0.03
%
0.02
%
0.02
%
Total Buyers 2500 2625
2756.
25
2894.
06
3038.
77
3190.
70
3350.
24
3517.
75
3693.
64
3878.
32
4072.
24
4275.
85
Sales Product Onli Onli Onli Onli Onli Onli Onli Onli Onli Onli Onli Onli

ne ne ne ne ne ne ne ne ne ne ne ne
Selling price 26 26 26 26 26 26 26 26 26 26 26 26
Total
revenue
6500
0
6825
0
7166
2.5
7524
5.625
7900
7.906
25
8295
8.301
5625
8710
6.216
6406
25
9146
1.527
4726
562
9603
4.603
8462
891
1008
36.33
4038
604
1058
78.15
0740
534
1111
72.05
8277
56
% sale per
month
0.05
%
0.04
%
0.04
%
0.04
%
0.04
%
0.03
%
0.03
%
0.03
%
0.03
%
0.03
%
0.03
%
0.02
%
Total Buyers 2200 2332
2471.
92
2620.
24
2777.
45
2944.
10
3120.
74
3307.
99
3506.
47
3716.
85
3939.
86
4176.
26
Sales Product
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Retai
ls
Selling price 15 15 15 15 15 15 15 15 15 15 15 15
Total
revenue
3300
0
3498
0
3707
8.8
3930
3.528
4166
1.739
68
4416
1.444
0608
4681
1.130
7044
48
4961
9.798
5467
149
5259
6.986
4595
178
5575
2.805
6470
888
5909
7.973
9859
142
6264
3.852
4250
69
Total cash
inflows
9800
0
1032
30
1087
41.3
1145
49.15
3
1206
69.64
593
1271
19.74
5623
3
1339
17.34
7345
073
1410
81.32
6019
371
1486
31.59
0305
807
1565
89.13
9685
692
1649
76.12
4726
448
1738
15.91
0702
629
CASH
OUTFLOWS
Machineries
in plant 1500 0 0 700 0 0 1200 0 0 800 900 0 0
Repair and
maintenance 250 250 250 250 250 250 250 250 250 250 250 250
Equipment 300 0 0 0 350 0 0 860 0 0 842 0 900

Promotional
activities 420 420 420 420 420 420 420 420 420 420 420 420
Staff Salaries 850 850 850 850 850 850 850 850 850 850 850 850
Total cash
outflows 1800 1520 1520 2220 1870 1520 2720 2380 1520 2320 3262 1520 2420
Net cash flow -1800
9648
0
1017
10
1065
21.3
1126
79.15
3
1191
49.64
593
1243
99.74
5623
3
1315
37.34
7345
073
1395
61.32
6019
371
1463
11.59
0305
807
1533
27.13
9685
692
1634
56.12
4726
448
1713
95.91
0702
629
Beginning
cash balance 3500 1700
9818
0
1998
90
3064
11.3
4190
90.45
3
5382
40.09
893
6626
39.84
4553
3
7941
77.19
1898
373
9337
38.51
7917
744
1080
050.1
0822
355
1233
377.2
4790
924
1396
833.3
7263
569
ENDING
CASH
BALANCE 1700
9818
0
1998
90
3064
11.3
4190
90.45
3
5382
40.09
893
6626
39.84
4553
3
7941
77.19
1898
373
9337
38.51
7917
744
1080
050.1
0822
355
1233
377.2
4790
924
1396
833.3
7263
569
1568
229.2
8333
832
P5 Exit or succession options of the Vactaire holdings with its drawbacks and benefits
Exit options means now entity is not earning that much profit and now decided to shut
down its business (Lynn, 2018). For shutting down of the business there are more options like
winding up, file for the bankruptcy, liquidation of the business, selling of the stake to investors,
find the acquire r.
 Sell the stake to the investors - in this exit option owner is selling its shares to the
investors due to the situation of the shutting down of the business. It is one of the options
from which company can gain money and give it to the creditors.