Planning for Growth: Business Development Report for LMA Recruitment

This report analyzes the growth strategies of LMA Recruitment, a company specializing in recruitment solutions across various sectors like HR, IT, and finance. It begins with an introduction outlining the importance of growth planning and the company's background. The report then delves into key considerations for examining development possibilities, utilizing PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors impacting the company's growth in the UK market. Porter's Generic Model is applied to evaluate competitive advantages, focusing on cost leadership and differentiation. Ansoff's Growth Vector Matrix is studied to evaluate market penetration, market development, and product development strategies. The report also explores sources of financial support available to businesses, discussing their advantages and disadvantages, and formulates a business plan with financial data and strategic objectives. Finally, it assesses exit or succession options for small businesses, outlining their benefits and drawbacks, and concludes with recommendations based on the analysis.

Planning For
Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Key considerations for examining development possibilities...........................................1
Porter's Generic Model:..........................................................................................................2
P2) Study Ansoff's Growth vector Matrix in order to evaluate development for growth. ...4
LO 2................................................................................................................................................6
P3) Sources of financial support accessible to enterprise and their advantages and dis-
advantages..............................................................................................................................6
LO 3.................................................................................................................................................7
P4 Business plan for development that involves monetary data and tactic goals for
measuring up a enterprise.......................................................................................................7
LO 4.................................................................................................................................................9
P5) Assess exit or succession options for a small business explaining benefits and drawbacks 9
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Administration design plan for development so that set standards can be achieved on
time. Also, emerging needs of the customers can be achieved in the set time frame. Every small
and big firm plan out growth strategies in order to survive for longer time duration in the
competitive world. Planning for growth is done in an administration by examining market
scenario and accordingly tactics and policies are framed. This report is based on LMA
recruitment and the founder was Jonathan Austin. This company provides solution related to
recruitment in Human resource, general insurance, information technology, finance etc. This
assignment covers Pestel analysis and Porters Generic model in order investigate growth
opportunities in the open market. Ansoff's growth vector matrix is studied so that effective
tactics can be framed to create tough competition for other businesses (Daniels and Lapping,
2016). Also, various sourcing of funding with their advantages and disadvantages are discussed.
However, enterprise idea including budgets and strategic objectives is formulated as well as exit
and succession plan with advantages and dis-advantages are highlighted.
LO 1
P1 Key considerations for examining development possibilities
To examine growth opportunities in the competitive market place enterprise conduct
pestel and porter's generic model analysis. By doing so strategies are designed accordingly which
results to best outcomes. Every small and big organization measures external environment before
entering into the market with their product. In order to sustain for longer time period pestel
analysis and porter's Generic model is adopted in order to create tough competition for others.
The key considerations such as pestel analysis is discussed for examining growth opportunities
in the market open market which are explained as follows:
Political factor: Tax policies, political stability, trade restrictions, foreign trade policies
etc. are political factors examples. Organization has huge growth opportunities in UK market as
there is political stability. By promoting their product on social networking sites more and more
potential customers can be attracted towards the goods. LMA recruitment provides solutions
regarding recruitment in HR, finance, IT etc. political stability aid the firm to increase their sales
ratio at a rapid scale. Political factor being stable in an country raises the business transaction
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globally due to which foreign exchange ratio has raised. This is the growth opportunities for
LMA recruitment firm in the coming years.
Economical factor: The economic stability of the nation helps the organization to grow
and flourish in the market (Güneralp and Seto, 2015). LMA recruitment is benefited by
economic stability as it helps to raise their profitability in the open market. Examples of
economical factor are, interest rate, tax rates, governmental activity etc. UK market price does
not fluctuate frequently due to which more and more customer base for the services is created.
Which leads to huge profits maximization in the competitive world. If the recession, inflation
rate, taxes, demand supply does not changes frequently they more and more business can trade in
the country and huge revenue can be gathered.
Social factor: Traditions, society taboos, policies, language, religion, customs etc. are
some of the examples of social factor. LMA Recruitment provides best solutions in context to
recruitment in finance, IT etc. UK people work in unity and adopts to modern culture effectively.
The expansion of business in this nation will directly raise market value in the eyes of the
customers. Due to which goodwill is uplifted in the eyes of the customers. By following social
activities effectively business can be expanded in other segments as per the need and demand of
the customers. And more job opportunities can be created for the local people.
Technological factor: Advancement in technology provides growth opportunity in terms
of productivity. LMA recruitment adopts modern tools and techniques in their services due to
which set goals are achieved on time. This provides growth opportunities in terms of
employment as well. Using of out dated technology decreases the market value and profitability
ratio respectively. UK market welcome new and modern technology on priority level. Adoption
of modern technology improves the productivity of the business and are able to expand the
business in other nation. By doing so income and purchasing power of the people raises at a
rapid scale.
Environmental factor: Climate, pH level of soil, pH level of water, pollution etc. are
examples of environmental factor. UK market welcome recycle product and less of plastic bags
as they hamper the environment (Khan, 2015). LMA recruitment avoid paper work and adopts
eco-friendly tools to meet the emerging needs of the customers. By adoption of eco-friendly
tools there are huge growth opportunities for enterprise in the competitive world. It directly leads
to raise in productivity ratio. Firm by using eco-friendly techniques will be able to save the
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surrounding from depletion. By doing so the labour working condition will be raised as well as
huge profit will be generated.
Legal factor: This factor provides growth opportunities in terms of retaining or hiring
capable and skilled employees in the firm for longer time period. Profit margins, wages act,
employment act, product transportation etc. are legal factor examples. UK legal laws are very
strict and does not permit to violate this factor. All this helps LMA recruitment company to
retain potential employees in the administration which results to productive results. Following
legal norms in the working premises build positive image in the market due to which other samll
business will be interested to merge with them due to which working criteria will be raised at
tremendous scale.
Porter's Generic Model:
Porter's-generic-tactics helps the administration to determine whether organization
profitability ratio is below or above the industry average. This model assist the organization to
gain competitive advantages by providing them quality services with less or cheap price against
rivalry in the cut throat competitive world. Here, this particular model has four forces which aid
the firm to offer great value to its customers by lowering the prices of the product or services as
compare to its competitors. LMA recruitment is a small medium firm providing better solutions
of recruitment including, Information technology, Finance, Human resource etc. Porters Generic
model is adopted by this company in order to evaluate growth opportunities in UK market.
Model is explained as follows:
Cost Leadership: In this particular case, it is a position where the organisation
accomplishes superior profits by lowering its costs in the market place (Kumar, 2016). However,
LMA recruitment provide solution regarding the recruitment in finance, Human resource,
Information technology etc. at very nominal rate as compared to its competitors prevailing in the
market. This resulted LMA recruitment to capture huge market ratio due to which huge profit is
maximized at a large scale. By doing so huge market ratio is captured as more job opportunities
is created to meet the needs of the customers.
Differentiation Focus: Here, company focus on their target group for designing of
goods and services by adding innovative and unique features LMA recruitment Company
provide solution regarding recruitment of finance , human resource etc. by analysing need and
demand of their target market. By differentiation of services it can create huge growth
3

opportunities to survive in competitive market with their innovative and new products or
services. which can directly assist to rise profits and sales revenue at a large scale. It helps the
firm to hire skilled employees so that distinguished services offered can be achieved on time. As
well as set objectives can be achieved.
Cost Focus: This strategy of Porter's, focus on a niche market segment by lowering the
cost for its services in the market place. LMA recruitment charge low price from their potential
customers and provide effective solutions. Due to which best results are achieve in short time
duration. They do market analysis before introducing services at a low price . By doing so more
customer base is raised for the services and firm plan to come up with innovative idea. Due to
which firm focus more on research and development work in order to generate loop holes of
others as their opportunities. This is a great opportunities for business in the cut throat
competitive world (Lee and Cowling, 2015).
4

Source: Porter's Generic Strategies, 2018
Differentiation Focus: Purpose of this force is to cater to a narrow segment of a market,
by identifying needs and wants of their prospective customers and fulfilling it through product
and services differentiation (Porter's generic model, 2018). In context of this respective
company, high quality services were being provided to various companies regarding recruitment
in finance, human resource etc. so as to meet their emerging demand in the competitive. This
helps in understanding market growth, position of business, descriptions of operations.
Cost leadership is most suitable for LMA recruitment it will aid the enterprise to attain
set objectives in the set time frame. They provide quality services with low pricing due to which
huge customer base for the service is raised (Mazza, 2017)
P2) Study Ansoff's Growth vector Matrix in order to evaluate development for growth.
Ansoff's growth Matrix can be stated as tools which provides guidelines to top level
management in order to formulate growth tactics. This model plays a significant role in
upgrading the sales and profit sharing ratio in the competitive world. LMA recruitment adopts
5
Illustration 1: Porter's Generic Strategies

this model in their organization in order to better understand their position in the market and
accordingly frame strategies. Ansoff's Growth Vector Matrix is explained as follows:
Market Penetration: In this case administration grow in existing market with existing
goods and services. By doing so it enhance market shares of organization in existing
segmentation which is possible by serving it services in existing or current market place. This is
can be done creating awareness regarding services, lowering price, increasing promotional
activities. Market penetration can be adopted by LMA recruitment for increasing market share
with same market and products and services. In This firm engage workers in research and
development work so that innovative idea can be generated and competitive advantages over
revelry can be attained.
Market Development: In this situation administration want to expand in new market
with same existing goods and services in the cut throat competitive world. This type of strategy
is successful and used because for that market, good is different, new and unique. It can be made
successful by adoption of various factors such as innovative packaging, new channel of
distribution, adoption of multiple pricing strategies. It can be adopted by LMA recruitment in
order to grow firm in new industry place that is France with existing goods. Here, company
choose new market to attract customers so that potential customers can be bind for longer time
duration. By doing so firm make continuous improvements in their goods which is a growth
opportunities for them in the coming years (Morrell, 2018 ).
Product Development: Here, it is defined as tactics where organisation introduce new
goods in same current industry place to grow and growth in the global village . This focus on
expanding various category of goods and services in same market. It is possible when
organisation adopt different activities like conducting research and development, introduction of
new and innovative products, acquiring right manufacture for production and others. Such
strategy can be adopted by LMA recruitment for rising profits and gain in competitive market
against rivalry. In this case extra benefits is added to the services so that set objectives can be
achieved in the open market place. Skilled and unskilled workers are employed so that emerging
needs of the customers regarding the services can be meet.
Diversification: This is the strategy where organisation expand their business in fresh
industry with fresh category of products. The diversification strategy is considered as high risky
because market as well as products both are new which has high possibilities of not getting
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success. In order to adopt this strategy by LMA recruitment need to do proper research about
market, product, consumer requirements and others. Here, company create expansion
opportunities in the new market with unique service so that best outcomes can be achieved.
Hence, the LMA recruitment can select market penetration strategy for expanding
business in other country with same products and service. As it is less risky in the market as well
as provide high profits in the neck to neck competition.
LO 2
P3) Sources of financial support accessible to enterprise and their advantages and dis-advantages
To run the business successfully in the competitive market place adequate funds are
needed. Monetary value is the backbone of every organization and assist the firm top grow
successfully in the global market (Sarin, 2019). funds accessible in the industry from where
LMA recruitment can gather funds for their business are banks, family , relatives etc. The
available sources of finds are explained as follows:
Banks: LMA recruitment can collect necessary funds from bank. It is the easy and most
common source from where finance can be arranged for SMEs. Here, this type of funds is
borrowed from bank for particular time period as well as charge fix interest rate (Khan, 2015).
However, LMA recruitment can take funds from bank by taking loan which is secured and
interest paid to bank is deductible in taxes. By doing so LMA recruitment can expand their
business successfully across the globe By taking loan from the banks firm will be able to take
sufficient amount of fund which will help them to run the business smoothly.
Benefits:
 Low rate of interests is charged as compared to other funding institutions.
 Credit scores can be raised by the firm by regular payment of instalments.
Drawbacks:
 Many legal formalities need to be fulfilled by individual while taking loan Lee, N.,
Sameen and Cowling, 2015)
 In return we have to provide security deposit to the bank. In case company is unable to
pay the amount bank can sold their assets and can repay the amount.
Overdraft: Organization can collect funds from other source which is overdraft. This facility is
provided to organization when they make payments from current account exceeding their cash
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balance. In this case funds are provided to the customers for short duration of time. LMA
recruitment can easily take funds from overdraft facility provided by bank. This facility helps the
company to borrow money immediately as and when needed. So that lack of funds does not
occur in the working function (Sarver, 2015)
Benefits:
 Interest rate is charged from overdrawn amount.
 As it is easy and flexible in nature funds can be arranged immediately (Siedentop and
Krehl, 2016).
Drawbacks:
 It decline their credit score as funds are taken from overdraft.
 Amount taken from overdraft facility can be asked anytime from bank side.
LMA recruitment take funds from bank as it is secure and safe to transect. By doing so
insufficiency of funds does not take place.
LO 3
P4 Business plan for development that involves monetary data and tactic goals for measuring
up a enterprise
Business plan is designed by LMA recruitment so that smoothly business can enter into
the market and potential customers can be pulled towards the services. Every small and big
organization prep[are business plan as per their product, objectives, budget etc. The business
plan is prepared by LMA recruitment firm which providing effective solutions of recruitment to
various administrations in context of finance, Human resource etc.
Company description:
LMA recruitment organization was founded by Jonathan Austin. This company provides
solution related to recruitment in Human resource, general insurance, information technology,
finance etc. to various organization. The idea came when Jonathan Austin attended a seminar
with top two companies. The owner was inspired by Servant Leadership Conference in USA in
the year 2000.
Executive Summary:
Business plan is a blueprint in which all the detail information regarding the new
product, marketing tools , targeted customers etc. are briefly explained. Smart objectives are
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formulated by the company and accordingly tactics are designed to achieve it in the competitive
world (Wey, 2015). As well as competitors are examined in the market scenario so that research
and development can be carried out accordingly. Swot analysis is studied in order to figure out
opportunities and threat prevailing in the market.
SMART Objectives:
 Increase sales ratio by 20% by providing best solution related to recruitment in Human
resource, general insurance, information technology, finance etc. in the coming one year.
 Raise in profit sharing ratio by 30% in the up coming three years by using modern tools
to address their quarries electronically .
SWOT analysis:
SWOT analysis helps LMA recruitment to search out opportunities and threat in the open
market. Here, strengths and weaknesses are highlighted so that relevant improvements can be
done accordingly. The SWOT analysis of LMA recruitment are discussed as follows:
Strengths: Large loyal customers are build with the LMA organization as they provide
best financial and recruitment services. . Low prices are charged and best solutions are given to
the organization regarding recruitment in finance, HR etc.
Weaknesses: Less research and development work is carried out in the market.
Increasing economy recession is the weak point in the intance competitive world. Due to which
business is unable to growth respectively.
Opportunities: Business can be spread with effective marketing activities across the
globe. By this LMA recruitment firm is able to capture huge market ratio .
Threats: Entrance of new business in the same field with innovative idea. Huge market
share being captured by existing company (Van den Berg, 2016).
Competitive analysis: LMA recruitment faces competition from various rivalry
prevailing in the market. There are neck to neck competition carried out in the market place and
firm strive to sustain in the market. By lowering the prices, and innovative services etc. tough
competition can be created for others. Porter's five force model assist the organization to study
the various rivalry prevailing in the market. And guide them to frame the strategies accordingly.
By analysing the market scenario LMA is able to build unique strategies so that competitive
advantages can be gained in the cut throat competitive world. As well as set objectives can be
attained easily.
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Finical projection: Banks, overdraft, family, friends, relatives, financial institutions etc.
the available sources from where LMA recruitment can collect funds. Cash is the backbone of
every organization in order to run the business smoothly. The insufficiency of funds can be
overcome by collecting money from theses sources and plan can be executed effectively (Wu,
2015). Organization prepare budgets by doing financial projection as well as cash flow
statement is prepared by evaluating the cash inflows and outflows. Budget is prepared so that
accordingly tactics can be farmed in the open market place.
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Implementing
technology cost
15000 - -
Promotional expense 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
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From the above it can be concluded that this are the estimated amount of expenses which
are required to effectively provide the services. By doing company will be able to collect
resources from various resources so that insufficiency of funds does not take place. Cash flow
statement is the average income determined is $ 72001 for three years. Whereas, $ 102203,
$200354, $238503 was the cash in hand for the year 2015, 2016 and 2017. By examining the
cash flow statement it can be determined that firm is having enough funds to pay back the debts.
LO 4
P5) Assess exit or succession options for a small business explaining benefits and drawbacks
The exist or succession plan for small business along with advantages and dis-advantages
are explained as follows:
Succession Plan:
Merger: This a part of succession plan, in this case two existing administration comes
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collectively under legal documentation and forming new one or combining operations. With help
of this options, organisation can gain profits and expand business in another market. LMA
recruitment can merge with other organisation working in the same field in order to raise
employees performance effectively and efficiently (Whelpton and, 2017). The advantage and
disadvantages are discussed as follows:
Benefits: Operation of functions perform at higher level. Due to which huge profit is
gained . However, Goodwill of organisation increases with help of merger as two join together
as one so the employees work more effectively and efficiently.
Drawback: Increasing the rate of jobs loss in both firm. It leads to raise in
unemployment in the society. Also, productivity reduces as merger take place and small
company is merge with large one. Due to which emerging needs of the customer are not fulfilled
on set time frame.
Exit Plan:
Liquidation: This refers to as mortgaging out the assets of the organization in order to
generate huge cash So that payment of creditors can be done in the market place. In exit plan
LMA recruitment decide to wind up the enterprise by commercializing all the assets and
repaying the debts of the firm (Horowitz, 2017).
Benefits: Sufficient amount of funds can be gathered. Due to which business operations
is carried out easily. Also, Debts can be pay back in the market because by liquidating the
property in return monetary amount is received by which debts can be repayed easily.
Drawbacks: Business is closed in the market place. Due to which unemployment
increases.
LMA recruitment has adopted merger succession plan in order to achieve the set
standards in the competitive world. As it is the most appropriate way by which huge profitability
and sales ratio can be increased (Wear, A., 2016).
RECOMMENDATION
The following are the recommendation which are discussed as follows:
 Firm should scan external environment like, political, social, technological, economical
etc. so that tactics can be framed accordingly.
 In order ton avoid insufficiency of funds company must search out available financial
institution so that funds can be gathered.
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 Enterprise should use several models to motivate the employees to raise productivity and
profitability.
CONCLUSION
From the above it can be concluded that Porter's generic model and pestel analysis helps
to investigate growth opportunities in the market. By doing so strategies can be designed
respectively and best results can be achieved accordingly. Also, Ansoff's growth Matrix is
adopted by the firm so that innovative services can be done accordingly and huge profits can be
gained. Various sources of funds such as , banks, overdraft are used by company to gather
monetary funds easily. Also, business plan is designed so that huge market ratio can be captured
and effective services can be served to the potential customers.
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REFERENCES
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conservation: A challenge for planning and governance in China. Ambio. 44(6). pp.532-
543.
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Kumar, D., 2016. Enterprise growth strategy: vision, planning and execution. Routledge.
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Sarin, M., 2019. Urban planning in the Third World: the Chandigarh experience. Routledge.
Sarver, D. M., 2015. Interactions of hard tissues, soft tissues, and growth over time, and their
impact on orthodontic diagnosis and treatment planning. American Journal of
Orthodontics and Dentofacial Orthopedics. 148(3). pp.380-386.
Wey, W. M., 2015. Smart growth and transit-oriented development planning in site selection for
a new metro transit station in Taipei, Taiwan. Habitat International. 47. pp.158-168.
Wu, F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
Horowitz, I., 2017. City politics and planning. Routledge.
Whelpton, P. K., Campbell, A. A. and Patterson, J. E., 2015. Fertility and family planning in the
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Online:
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ebooks.com/news/porters-generic-strategies/>
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