Business Growth Planning for Langland Advertising & Design

This report examines the growth strategies for Langland Advertising & Design, an advertising agency. It begins with an introduction to planning for growth and focuses on key considerations for evaluating growth opportunities, including competitor analysis, resource assessment, and the application of Porter's Generic Strategies, specifically cost leadership. The report then applies the PESTLE analysis to understand the external factors impacting the business. The Ansoff Matrix is used to identify potential growth opportunities, followed by a discussion of funding sources and the development of a business plan. Finally, the report analyzes succession and exit strategies for the company, considering the benefits and drawbacks of each option. The conclusion summarizes the key findings and recommendations for Langland Advertising & Design's future growth and development.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Key Considerations for the Evaluation of Growth Opportunities........................................1
P2) Application of Ansoff Matrix...............................................................................................5
TASK 2............................................................................................................................................7
P3) Potential Source of Funding for Businesses.........................................................................7
TASK 3............................................................................................................................................8
P4) Business Plan for Success.....................................................................................................8
TASK 4..........................................................................................................................................10
P5) Critical Evaluation of Succession and Exit Situations for Langland Advertising & Design
...................................................................................................................................................10
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for Growth is explained as the strategic business activity that helps the
entrepreneurs in making an increment in their revenues and incomes by tracking and planning for
them. The company chosen for the completion of this assignment is Langland Advertising &
Design which is situated in Windsor and is providing advertising services to their customers.
Currently, the employees working in this organisation are approx 66. The following assignment
will start with making its focus on the key consideration for growth opportunities for the
organisation and will also provide justification in the context of chosen organisation. In addition
to this, it will also make its focus on the identification of possible growth opportunities for the
organisation with the help of applying Ansoff Matrix in the organisational context (Albert,
2017). The focus will also be made on the identification of potential sources with the help of
which an organisation it will be possible for the business to make sure about its growth along
with their benefits and drawbacks. Further, the business plan will also be developed wit the
strategic objectives and scaling up the business. Lastly, the discussion will be made about the
exit and succession situations for small business explaining the benefits and drawbacks for the
options provided below.
TASK 1
P1) Key Considerations for the Evaluation of Growth Opportunities
Planning can be defined as the function with the help of which an organisation draws a
blueprint of their future activities which are they will perform. It is not related to a single concept
in the organisation but there are many other concepts for which planning can be carried out. In
the case of the following organisation, Langland Advertising & Design which provides their
customers with advertising facility do also have some growth opportunities that could help the
organisation in making an increment in their revenues and incomes. The discussion of the
evaluation of the available growth opportunities has been provided as under:
Competitors Analysis:
The explanation of the following analysis has been provided in the sense of making an
assessment of current strengths and weaknesses of the other businesses such as competitors of
the organisation. So it is better for make plans for future and make suitable strategies for the
growth and betterment of the organisation with the help of analysing the current market
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situations (Angotti, 2018). The company could also have benefit out of this as with the help of
good strategies as compared to the competitors, it will be possible for the company to achieve
competitive advantage over the competitors and for this purpose it is important for the
organisation to make their consideration about their resources, capabilities, competencies so that
they could be made unique enough to gain competitive advantage over the competitors and
ensure their long term survival and growth in the marketplace. The discussion of the following is
provided as under:
Resources: In the first point, the main resources needed in the following business for its growth
is the skilled employees which is personnel and the financial resources as in the service sector,
financial resources are needed more and these will surely help in the growth and development of
organisation. The personnel in an organisation will also help in its development as the skilled
employees will provide the organisation with new and innovative ides which will prove to be
beneficial for the growth and development of the organisation.
Capabilities: Langland Advertising & Design Organisation is providing their customers with
personalised advertising such as by making the advertisements in accordance with the needs and
demands of their customers. In addition to this, it also provides their customers with some
suggestions in order to make the look of the advertisement more attractive.
Core Competences: The customised service provided by the organisation are not much high in
their prices that are not affordable for their customers (Beatley, 2014). In other words, the
offering provided to the customers by the organisation are economical and affordable according
to the prices charged by the organisation. As the other companies are also not providing these
kinds of personalised services to their customers which is positive point for Langland
Advertising & Design Company that could help in fostering the rate of growth and development
of the organisation.
PORTER GENERIC MODEL
Michael porter who was a well renowned economic researcher explained the generic
strategies that are useful to examine the competitive behaviour. 4 main strategies are provide to
maintain advantages and better position in market over competitors. Langland advertising and
design is a healthcare advertising agency in United Kingdom. Porter's generic strategies can be
used by this company to decide the direction(strategy) of their organisation. This tool provides 4
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strategies that provides help to conquer or overcome the competition prevailing in the market.
The four strategies are as follows:
Cost leadership
To gain cost leadership in the market production costs are manipulated which provides a
competitive edge in market. This can be done through either by charging low prices for product
from customer to increase the market share or other way of cost leadership is by reducing the
cost of production to increase the amount of profit earn. Any organisation can attract a larger
market share by charging low prices which definitely increases sales and company imagine. An
organisation can keep costs at minimum level by reducing unnecessary expenses on books, and
other unwanted expense (Byrne, Sipe and Dodson, 2014).
Differentiation
Differentiation is a process of making product as much exclusive as possible. This
includes highlighting the product uniqueness and attractiveness to draw the attention of potential
customers. This aim at making product more attractive and superior than products offered by
competitors by promoting it's durability or general utility. For proper implementation of
differentiation strategy, a efficient marketing and promotions team is required for crating brand
image and highlighting its uniqueness. This also require timely and continuous research and
innovation. Its become important to remain flexible to remain adaptable for changing market and
hence lowering the risk of defeat coming from competitors.
Cost focus
This aim at targetting a focused market by offering the lowest price possible. This can be
done through properly understanding the dynamic of niche market and by analysing the wishes
of consumer which also provide help in maintaining cost at low level. This aim at maintaining a
balancing between production cost and delivery (Chen and et. al., 2014).
Differentiation focus
In this strategy focus is again on a niche market but here organisation focuses more on
unique feature of product or service. This also include creating a high brand image and loyalty
among customer. It is important to maintain product uniqueness to always remain ahead from
possible competitors. To increase brand image this strategy focuses more on unique needs of
buyer and maximize its efforts to full fill that needs.
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From the above discussion this can be concluded that Langland advertising or designing
should adopt cost leadership strategy which helps in increasing market share by providing
offering or services at lower cost and also reduces the cost of unwanted and unnecessary
expenses or action. Both the actions (increased market share and reduce cost) will increase the
sales volume and ultimately increases the profit of Langland (Denton, Forsyth and MacLennan,
2017).
EXTERNAL ANALYSIS
The External Analysis of an organisation is done with the help of PESTLE Analysis. The
following analysis is used in order to know about the impact of macro environmental factors on
the working of an organisation whether in the positive or negative way. The application of this
analysis on Langland Advertising & Design has been provided as under:
Political Factors: These are those factors which impacts upon the working of an organisation
due to changes in the governmental rules and regulations, policies and some more.
The following organisation will be impacted by the governmental policies and stability of
the country. In case of long term political stability in the country it will be possible for the
organisation to make long term policies for their own organisation which will help them in
moving continuously in one direction for a long period of time.
Economical Factors: These are those factors which impacts upon the working of an
organisation due to changes in the interest rates, disposable incomes of customers and some
more (Janssen and et. al., 2014).
For Langland Advertising & Design, it is possible that the organisation will be impacted
by the disposable income of the customers as the increase in their income will lead to greater
profit for the organisation and in the case of decrease in the income, it will lead to decrease in the
profits of the organisation. Hence, the economical factors also impacts upon the working of an
organisation.
Social Factors: These are those factors that impacts upon the working of an organisation due to
changes in the taste and preferences, faith, belief of people.
The choices of people also changes from time to time and due to this reason, it becomes
important for the organisation to make regular changes in their products and services so that they
could perform better and could be able to achieve the objectives of the business. The
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advertisement designs of Langland Advertising & Design should also be developed frequently to
maintain their level of customers and to convert the potential customers into the real one.
Technological Factors: In the following factors, the consideration is related to changes in the
technology such a related to the changes in producing goods and services of an organisation and
some others also (Horowitz, 2017).
Everyday, there has been some improvements in the technology and with the passing of
time, the technological advancements are increasing and making the competition more severe
and intense. So in case the technology of rival company will enhanced than this will impact
negatively on the working of Langland Advertising & Design.
Legal Factors: When some special laws, rules and regulations are being implemented by the
organisation in relation to a special business and the impact of this can be positive or negative
related to misleading advertisements or any other.
The company is doing advertisement business, likewise the government has also
implemented some rules and regulations in order to prevent the customers from being mislead
from the advertisement. So fulfilment of the concerns of government will bring positive and non
fulfilment will bring negative consequences for Langland Advertising & Design.
Environmental Factors: These are those factors that impacts upon the working of an
organisation due to the impact that has been created by the organisation on the environment such
pollution (Keough, 2015).
However, the working of this organisation is not impacting much on the environment but
the contribution made by the company towards environment will help in creating good brand
image of the company in the minds of customers.
P2) Application of Ansoff Matrix
It is a tool which is used by an organisation to analyse and plan various strategies for
growth and also determine risks which are associated with each strategy. This model helped
many marketers to identify risk associated with their business. Here, Ansoff Matrix will be
linked with an UK company named Langland advertising and design. This company is an
healthcare advertising agency with different campaigns and digital services. The four strategies
in Ansoff Matrix are-
Market Penetration- This means increasing sales of an existing product in present
market. This can be done in a number of ways like decreasing cost of a product , increasing
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promotional activities, or by increasing efforts of distribution. Market penetration can be done in
Langland advertising and design by increasing promotional activities of services they are
providing. They can promote their services with the help of social media. This will attract
various customers who are looking for such services (Mazza, 2017).
Product Development- It means developing or introducing new products in existing
market. This approach can take place in different ways like investing in Research and
Development or by acquiring new product from market and altering it accordingly. This will
help marketers to acquire more customers as they will be attracted towards new product and its
features. Langland Advertising and Design can also invest in developing their services in order
to attract more consumers.
Market Development- This approach means entering into a new market with existing
products. It can be done on regional basis, geographies, customer segment basis and so on. This
strategy can become successful when the firm have latest technology or consumer in new market
are more profitable. Langland Advertising and Design is an UK based company but it can
expand its business internationally. This company can enter into foreign market and introduce its
services there through promotion.
Diversification- This is the most riskiest approach among all approaches of Ansoff
model. It means entering into a new market with new products. Marketers using such form of
marketing are risk takers as it requires both market development and market development.
Langland Advertising and Design can easily use this strategy by extending its services in
hospitals, small clinics and all (Perveen and et. al., 2017).
From the above discussion, it has been concluded that the most appropriate strategy
which Langland Advertising and Design can apply is Market Development. The reason is that it
will help this company to expand its business in different areas. When the business will expand,
it will results in profit maximisation, which is very obviously beneficial to this enterprise. It can
be done on regional and geographic basis. The company must invest in promotion before
expanding its services regionally.
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TASK 2
P3) Potential Source of Funding for Businesses
Businesses have many options in order to raise finance for the growth and development
of their businesses. The expansion of the business of Langland Advertising & Design will be
made with the help of making new offices of the business at different places so as to make an
increment in the income and customer base of the company. So on the very basis, the discussion
of the possible sources of funding for Langland Advertising & Design has been provided as
under:
Bank Loan: The firs option is the taking a loan from the band such as by providing some details
and fulfilling some legal formalities so that the loan amount could be approved. Along with this,
a specified amount as an interest on the amount will also be charged. The advantages and
disadvantages of this option are provided as under:
Advantages: The main benefit of this option is about the instalment system which the bank is
providing as the amount of loan is to be paid in small instalment according to the amount of loan
taken.
Disadvantages: In the disadvantage of this option is that in case of late payment of the
instalment the bank charges extra amount from the loan taker as a compensation for the late
payment (Piro, 2016).
Personal Investment: The owner of Langland Advertising & Design can also make use of own
investment in the business in order to make the expansion of the business possible. The
advantages and disadvantage are provided as under:
Advantages: The main advantage of this option is related to no stress and tension of another
person. As in the case of personal investment, the individual do not suffer from any tension such
as repayment of loan to some other person or bank and due to this it becomes possible for the
individual to make good decisions about the business and ensure growth and development.
Disadvantages: In the disadvantage of this option, it is related to the negative consequences that
could demotivate the owner such low or no return on the investment made which will make the
complete investment done in the organisation as waste.
From the above discussion it has been made clear that the most suitable option for the
organisation to raise fund is the Bank Loan which have low interest rate and the collective
amount could be used for the expansion purpose of business without facing any deficiency.
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TASK 3
P4) Business Plan for Success
Business Plan can be defined as the strategy that has been adopted by the organisation in
order to now about the business, key players in the industry financial model that provides profits
to the organisation and many more terms. Langland Advertising & Design have adopted the
strategy of Market Development in order to make the expansion of the business possible. The
business plan for the expansion has been provided as under:
Overview of the Company
Langland Advertising & Design is a UK based organisation which is situated in Windsor.
Currently, the employees working in this organisation are approx 66 with the help of
organisation is running.
Products and Services
The company provides their customers with different advertisement services. Along with
these, personalised services are also provided to customers as per their need (Rodríguez-
Rodríguez and et. al., 2016).
Mission
To provide the customers with unique services ensuring proper customer satisfaction and
growth of business.
Vision
To become leader of Advertisement Organisations in UK.
SWOT Analysis of Langland Advertising & Design
Strengths Weaknesses
 Personalised services are considered
among the strengths of this business.
 Highly skilled employees are also one
among the strengths of the company.
 Low availability of finance with the
company is considered as weakness.
 Increased intervention of government in
the working as health products are
advertised.
Opportunities Threats
 The opportunity for Langland  Threat is related to the intervention of
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Advertising & Design is related to the
expansion of the business to the new
areas which will help in the growth and
expansion of the business.
government in the working of the
organisation as in these businesses, the
government is more attentive and
focused.
Identification of Target Market:
The business will choose a densely populated area of high class people living there so
that they could be attracted towards the products of Langland Advertising & Design. For this the
business will make focus on regular advertisements (Stein, 2018).
Allocation of Resources:
For the expansion process of Langland Advertising & Design, the company is required to
have suitable candidates that could make the proper analysis of the market so that the business
could be established at the place where the organisation will have the most benefit.
Implementation of Plan:
After making proper estimation about all the aspects, the need is about the execution of
the plan that has been prepared by the manager of Langland Advertising & Design.
Budget Estimation:
The following term can be defined as the estimation of all the costs which the business
will require at the time of working on a project. The discussion of budget for the following
project is provided as under:
PARTICULARS AMOUNT (in £)
Advertising Expenses £ 30,000
Other Expenses £ 17,000
Sales Promotion Expenses £ 5,000
Advertising Expenses £ 12,000
Miscellaneous Expenses £10,000
Total £ 74,000
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TASK 4
P5) Critical Evaluation of Succession and Exit Situations for Langland Advertising & Design
Every businessman plans in advance about their business succession and exit. The
association like Langland Advertising & Design Company will adopt the strategy of succession
in order to continue their business by transferring its ownership to another person or the
organisation (Van den Berg, 2016). This strategy would help the firm in developing the mind
map for attaining a position of growth. Here, the company will focus on expanding their business
to new industry which can lead to both affirmative as well as pessimistic view. The outcome of
the company depends upon how well the company is satisfying their customers by providing
them the products of low cost. Langland Advertising & Design Company will work on this
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