Business Strategy Report: Strategic Analysis of Talon Outdoor Agency

This report provides a comprehensive analysis of Talon Outdoor, an advertising agency, focusing on its business strategy within the UK market. It begins with an introduction to strategic management and the significance of SMEs, highlighting the importance of leadership and management principles. The report then analyzes Talon Outdoor's business environment, utilizing PESTLE analysis to assess political, economic, social, technological, and legal factors. It further explores the company's competitive advantages, value creation strategies, and strategic issues, incorporating the Ansoff matrix for growth analysis. The report examines Talon Outdoor's sales performance, challenges, and opportunities within the competitive advertising landscape. It emphasizes the need for adapting to the changing customer preferences, technological advancements, and legal regulations within the UK market. Overall, the report aims to provide insights into Talon Outdoor's strategic positioning and recommendations for future growth.

BUSINESS STRATEGY

Table of Contents
BUSINESS STRATEGY.................................................................................................................1
INTRODUCTION ..........................................................................................................................3
Report and TASK1 introduction............................................................................................3
TASK2.............................................................................................................................................6
Analysis of the business environment and the nature............................................................6
TASK3...........................................................................................................................................10
Competitive advantage of the organisation and value creation ...........................................10
TASK4...........................................................................................................................................15
Strategic issues and Ansoff strategy.....................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Report and TASK1 introduction
Strategic management is the formulation as well as the implementation of the plans by
the top level management to execute effective operations in the organisation. The steps and the
procedure for the analysis of the environment are the core aspect of this report. The small and
medium sized enterprises have to introduce many qualities related to the growth and
sustainability in the market.
According to (Freeman., 2010) Small and medium sizes enterprises are the those king of
business where the firm has some limits in the trading and its business transactions. These
enterprises are considered as the innovative and competitive for the current market. This are the
firms which are offering many opportunities and are helpful in the generation of the revenue of
the nation. These type of businesses mostly employee people around 250 and the annual turnover
does not exceeds 50 million euro. In very small offices they only employees 10 people
altogether. Small and medium sized enterprises are very well designed to accompany the social
policies as well. Micro enterprises have only around 10 employees, small enterprise has 50
people as employees and medium sized enterprise have 250 employees in the operation activity.
Management and leadership knowledge
As we are studying the strategic management it is very necessary for the organisation to
know about the need of management and leadership acts in the operations. Leadership implant
strategic planning holistic management as well as the coordination. 14 principles of the
management are the very important aspect of the operations of the sme,s where as Porter's
survival theory is the basic strategy that is must in the survival aspect of the organisation. The
organisation always wishes for maximisation of its wealth and market sustainability. The firm
also wants to face all the challenges in effective manner and give tough competition to the
rivalry's(HittIreland and Hoskisson., 2012). Leadership is the act where a leader get things done
by others and that too those words which they don't like and then they do the task with their own
will.
Therefore the organisation must have proper management and leadership knowledge to
attain the objectives of the organisation. The success and the failure all depends on the actions of

the leader if there are ineffective leader then the chances of survival in the cut throat competitive
market. There are different styles of leaders according to the needs the leader has to perform
their roles and responsibilities.
Uncertainty ambiguity and limits
 Agile influence- It is the ability of the leader in which he/she feels empathy with others
and surroundings where they are functioning. It is the understanding of other's behaviour,
situation and thoughts by the leader. The strategic leader have to consider these things so
that they can be able plan the circumstances in proper manner(Hill Jonesand Schillin.,
2014). The leader is one who has all the authority and responsibility towards the team and
hie subordinates.
 Agile intelligence- In this the leader behaves in a creative and innovative manner to
handle the critical situation. To face the complex situation in the small and medium sized
enterprise the leader has to storm his brains and create new and innovative ideas to cope
up with the struggles and thrives of the operations(Hodgkinson and Healey., 2011).
Combination of the innovative thinking as well as the problem solving techniques the
leader can be solve and manage many issues of the employees as well as the organisation.

 Agile leadership- A leader who has the capability of facing the situation of the three
major things – complexity, ambiguousness and uncertainty. The leader has lots of
responsibility along with his title. He not only needs to think but also he has to plan how
the thinks has to be planned and executed.
Introduction of the organisation
An advertising agency, often referred to as a creative agency, is a business dedicated to
creating, planning, and handling advertising and sometimes other forms of promotion and
marketing for its clients. Advertising agency is generally independent from the client it may be
an internal department or agency that provides an outside point of view to the effort of selling the
client's products or services, or an outside firm. An agency can also handle overall marketing and
branding strategies promotions for its clients, which may include sales as well.Talon Outdoor
limited is an advertising industry serving in United Kingdom. It is a brand which deals in
advertising basically in small level as to survive and grow in the market. It has about number of
shareholders who are registered. This company is said to be as the Northern Independent

Association. It is helps all the advertising in its development and distribution. The motto of the
organisation is to support the community of the nation and surroundings. It keen to help the
advertising and helps in making true and unique identity in the society(Hair and et.al.,2012).
Talon Outdoor's turn around gains as survey study is very much happy with its number of
stakeholders. It reported that the sales has increased by 6.5%. Its advertising sites raised from
3000, and a frequent growth is seen by the end of the year. Talon Outdoor has improved in the
distribution and the services of its products. The firm is seeking for the improvement of the
product, services and the value of the organisation.
Apart from the competitors they need intensive support from the start ups operation and
independent groups. He also said that the frequent improvement in the advertising recruitment is
a result of the distribution that is made yet. Adding he said the firm is seeking for the more
opportunities to welcome many more advertising to provide services. Competitor of Talon
Outdoor in advertising has also critisiing it as it is growing in the market. The tough market has
become for both the advertising er. All the strategies are renewed as to compete in the market.
With the help of the leadership skills and management principles Talon Outdoor is competing the
market in very effective manner(Ackermannand Eden., 2011).
Sales ratio of Talon Outdoor company
Share price (bid) % profit Sale value Actual profit
139.20 -21.32% £1,392.00 £-377.20
156.60 -11.49% £1,566.00 £-203.20
165.30 -6.57% £1,653.00 £-116.20
170.52 -3.62% £1,705.20 £-64.00
174.00 -1.65% £1,740.00 £-29.20
177.48 0.32% £1,774.80 £5.60
182.70 3.27% £1,827.00 £57.80
191.40 8.18% £1,914.00 £144.80
208.80 18.02% £2,088.00 £318.80

TASK2
Analysis of the business environment and the nature.
Small and medium sized enterprise being small in its nature faces many issues related to
the operations and there are many factors that influences the functioning of the organisation.
Environment is the major influencing factor that the firm has to consider the most(Aula., 2010).
Environment is the factors whether internal or external that are influencing the operations and the
functioning of the environment. The sum total of all the factors that are positively or negatively
affecting the business operations.
There are basically two types of the environment, they are as follows-
1. Micro environment- This type of the environment are factors which are affecting the
functioning of the organisation in the individual level. Within the organisation the factors
that hampers the working such as the employees, the policies of the organisation, the
suppliers, the customers and the stake holders of the organisation.
2. Macro environment-This is the factors which affect the operations of the organisation in
the large level as the international level. The overall factors that plays a vital role in
running the small- medium enterprises. To study the factors the pestle analysis can be
carried out by the organisation(Zhouand Wu., 2010).
PESTLE analysis- This analysis help the organisation to understand the factors of macro level
that influence the operations of the organisation. PESTLE analysis of Talon Outdoor
 P(political)- There are large areas where the political factors can affect Talon Outdoor.
The political factors are those issues that are related to the nations political governing
parties. The rules and the regulation changes according to the ruling party. Hence as the
party or the governing body changes the new norms and policies also get changed, which
sometimes are in the favour of the organisation but many a times these changes can affect
the organisation's functioning in very bad manner. It affect the operations very critically
that it become very difficult of the organisation to survive in the market. The tax plays a
very important role in the political environment. The changes in the rate of the tax affect
the trades that are done by many small scale firms. Talon Outdoor be in an sme sector the
chances of the tax impact upon them are also in high ratio. Interest rates are again a
political factor that if get change the operations of the organisation form top to bottom get

affected. If the rates raises then is become difficult for Talon Outdoor to borrow money
from the different financial institutions(Nixonand Burns., 2012).
 E(Economical)- It is another macro environmental factor that influence the operations of
the organisation. As the global financial crises occurred in 2007, showed a negative
statistical figures in the graph of GDP Growth rate. Economy defines the wealth situation
of any of the nation. The firm Talon Outdoor serves its products and services in the
United Kingdom, hence the economy of the nation will influence it as well the
international market of the economy also contribute in the individual level. The change in
the currency rate is one of the economical factor that affect the organisation in its smooth
functioning(Barney., 2012). The trade of Talon Outdoor become difficult in the
advertising ing of the different goods and products. The demand and the supply of the
products and the services in which the firm is dealing mismatches and if it does not
satisfy the needs and the demands of the customers then the economy of the business also
get affected very badly. Due to the inflation the earning power of the customer get
affected and in result the business operations also get influenced by them.
 S(Social)- The society is becoming very advanced in a very frequent manner. With the
changing time the tastes and the preferences of the customer are changing fast. It is very
necessary for the organisation to meet the needs and the demands of the customers. As
the target market is vast therefore the organisation has to focus on all the targeted group
and concerning their tastes, choices and the most important factor the culture of the
market and availing them the best options available. The culture and the social value are
very important, the organisation should not harm any of the values of the society.
Cultural diversity's are taking place in many regions of UK, therefore keeping them in
mind the organisation has to focus on its business function otherwise the situation of
challenges takes place(Lucas., 2010).
 T(Technological)- Technology is the most considerable factor now a days, as because the
innovations and invention in the field of technology is very much in boom. This is the
major factor now a days that has to be considered by the organisation. Talon Outdoor is a
small and medium sized enterprise therefore it become difficult for the firm to afford for
such new expensive machines and tools that can help in the growth and helps in the

increase in the productivity. With coming up of many new technologies it also become
very difficult for the organisation and its employees to understand the needs and the use.
 L(Legal)- In the international market there are many legal factors which directly or
indirectly affect the advertising industry. There are many laws that the government of
UK has imposed to check the illegal activities that has been carried out by many firm.
Although Talon Outdoor is not doing any kind of the illegal act but the law of the
government has influenced the operation of the cited organisation as well(Molina-
Azorin., 2012). The restrictions upon various products in the market has also affected the
advertising of them.
 E(Environmental)- This is the environment in which the activities of the organisation is
hampered by the natural calamities. The natural causes like the flood, tsunami, landslide
earthquake. These are the factors which can not be imagined that when will it occur. The
products in the advertising can not be protected if such situation occurs, this may lead to
big loses for the organisation.
Opportunities and threats
Opportunity- SWOT analysis helps the organisation in knowing and figuring out the
opportunities that are present the in market for Talon Outdoor. By doing the research in the
market and the rate of the sales of the firm in market the organisation may find number of the
opportunities(Cinquiniand Tenucci., 2010). Opportunities that Talon Outdoor can get is online
business reference site, chance of fulfilling the needs and demands of the unsatisfied customers,
tapping the untapped markets.
Threats- Threats are the external factor of the organisation which influence the organisation's
operations. Threats such as the decrease of the demand by the customers, increase in the
competition, price hike by the competitors and recession. These are the problems that can be
faced by Talon Outdoor.
Akshara Advertising is public advertising sector in India and . The first advertising outlet was
established in 1991 in Mumbai. Akshara Network (known as Akshara or Akshara Network for
Development Support Services) is a not-for-profit development support organization working in
India, is initiated by practicing development management professionals to fulfill the need for
support in the livelihood development sector.

PESTLE analysis of Akshara Advertising
 P(Political)- The political environment is the factor that has a direct influence in the
operations of the Akshara Advertising. With the increase in the efforts by the government
of India in stabilising the economy and the insurance of the tax return has enhanced the
money circulation in the market.
 E(Economical)- As the Indian economy is coping up from the recession the improvement
in the economy can also be seen and the organisation has also the impact through which
the sustainability is carried out. The economy at the international level is affecting the
operations of the organisation as the changes are taking place in the outer environment.
 S(Social)- the society as always wants the best products in the less affordable prices, the
impact of the society upon the functioning of Akshara Advertising has also influencing
in both the manner positive and negative.
 T(Technological)- As the international market is vast and the competition is also very
high therefore the advantage that the firm can take is by using the best technology of the
market the upgraded techniques has to be followed the organisation.
 L(Legal)- The firm has dealing in the international market then, the law and the
regulation that is been carried out in all the nations where it is dealing have to be
considered. There are no similarities in the laws of the different nations.
 E(Environmental)- The place the firm is operating should also be the factor that can
influence the working as because if the organisation is in such places where the cause of
the natural calamities takes place frequently then the organisation's work can be
hampered. Global warming, landslides, Tsunami and earthquake are some of the natural
calamities can affect a lot.
TASK3
Competitive advantage of the organisation and value creation .
Every organisation when performing its tasks and operations they have to to market
research so that they can know what are the strategies that the competitors are opt to compete
with others. Talon Outdoor also have some competitive advantage with which it competes in the
market and is able to sustain and survive in the current market conditions(Souitaris and Maestro.,
2010). The organisation must be following some strategies which helps them to differentiate

itself from others. There are some strategies which can be used by Talon Outdoor, the strategies
has been introduced by Porter.
The strategy of competitive advantage is said to be as the Porter's Generic Competitive
strategies.
1. Cost leadership- Here the firm tries to set the standard of the low cost producing firm in
the industry. The cost sources varies according to the nature and the structure of the
organisation. The strategies may include things like economies of scale, access to the raw
materials and the priority towards the technology(SWOT Analysis for advertising .2017).
The advertising industry that are low cost producer have to utilise the resources as best
possible way. If the performance of the organisation is able to achieve the objectives and
sustainability in the market then it is analysed that the industry is performing in very
appropriate manner.
2. Differentiation- Here the organisation uses strategies which make it different from other.
The customers services the products or the facilities that can make the organisation
different from the other firms of the industry. The firm chooses many traits and attributes
that is inculcated in the products and the services of the firm which creates a value to the
organisation and attracts the customers towards the firm(Freeman., 2010).
3. Focus- It has two dimension.
 Cost focus- In this strategy the firm focuses on the cost benefits from the target group of
the organisation.

 Differentiated focus- In the the organisation focus on the fact to make itself different ans
unique from its competitors.
Both the dimensions of the focus strategies shows the difference between the target group and
the other groups of the industry.
Value creation
It is very necessary for the organisation to adopt different criteria so as to attain the
customers attention and the objectives of the organisation. There are 5 ways by which Talon
Outdoor can create its value, they are as follow-
 Service- the organisation must provide the best services to the customers so that the
customers interest towards the firm get generated whenever they wish to buy any product
the name of Talon Outdoor should click in their mind instantly.
 Expertise- The firm should be having great knowledge for what they are delivering. The
people of the organisation should be so expert in their jobs
 Convenience- The organisation has to make the every aspect of the advertising very clear
and also has to provide convenient experiences to the customers.
Strengths and weakness
Strength-With the help of SWOT study the organisation is able to identify the strengths that can
be helpful in the effective functioning. The strengths as like assessing the capitals and bank
loans, wholesale prices and the unique products(HitIreland,and Hoskisson., 2012).
Weakness- The organisation may suffer if the brand does not get an identity in the market.
Consumer services may not be up to the mark.
Porters 5 forces
Porters five forces model is a model which is used in analysing and identifying the five
competitive forces which are essential for determining weaknesses and strength of an
organisation. These forces are:-