Planning for Growth: Strategies, Funding, and Exit Options

This report focuses on planning for growth, specifically examining key considerations for small businesses like Langland Advertising. It analyzes growth opportunities using Ansoff's matrix, including market penetration, product development, and diversification, while also incorporating PESTLE analysis to assess external factors. The report explores various funding sources such as crowdfunding and peer-to-peer lending, outlining their benefits and drawbacks. Furthermore, it presents a business plan for growth, followed by a discussion of exit and succession options, including their merits and demerits. The report emphasizes the importance of strategic planning in achieving business goals and increasing profitability, particularly through the use of digital technology and competitive analysis.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examine key considerations of small business in evaluating growth opportunities.........1
P2 Analyse the opportunities for growth using ansoff's growth vector matrix......................3
TASK 2............................................................................................................................................5
P3 Display different source of fund and their benefits and drawbacks..................................5
TASK 3............................................................................................................................................7
P4 Prepare a business plan for growth...................................................................................7
TASK 4............................................................................................................................................9
P5 Present exit or succession option for a small business with their merits and demerits.....9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
Planning stands to be one of the most crucial aspect in the organisation which assures that
goals and objectives are fulfilled. Planning is a method through which business able to achieve
its desired position. Every enterprise should continuously review their plan to know that whether
it able to meet their needs or not. Planing for growth support organisation in increasing its
profitability (Barbour and Deakin, 2012). Langland advertising design and marketing Ltd is a
advertising agency who involves in healthcare promotion activities. As per the present time the
company is planning to enhance its market by using digital technology. Langland is a private
company which is incorporated on 30 July, 1991 at Windsor, United kingdom. At present it has
approx 100 employees. In this report there is a presentation of various growth opportunities
which business used in order to grow in external environment such as ansoff's matrix and pestle
analytical model. It also define various source of fund which organisation use in order to gather
the money for carrying out different activities. Moreover, business plan is prepared which help
enterprise to achieve its goals. Beside, this it furnish different types of exit and succession plan
which small business used in order to fulfil customer needs.
TASK 1
P1 Examine key considerations of small business in evaluating growth opportunities.
Langland advertising design and marketing Ltd is a marketing company which is seeking
for the growth opportunities in the marketplace. In present world everyone want success and
growth for which they make all efforts to achieve it. This goal can be achieved by satisfying
demands and wants of the customer. Planning for growth present a guideline which business
used in order to set its standard aim after knowing its present position. Business can reach to its
desired position by providing quality service to the customer through use of digital technology.
Langland advertising design and marketing Ltd provide their services in such a way that their
clients get large number of patients at their premises. Landmark and advertising design and
marketing should provide different qualitative services as compared to their rival firms in order
to earn competitive advantage. Business should make proper analysis of all external and internal
factors so that they can achieve growth (Brinckmann, Grichnik and Kapsa, 2010).
Porter's generic model : This model can be used by Landmark and advertising design and
marketing in order to increase its growth opportunities. The respective can attained its desired
1

position by lowering its cost or by offering different services to the customer. Landmark and
advertising can use this method in order to increase its market share and for developing a
reputation.
Cost leadership : At this strategy business provide qualitative product and service at the
low cost in comparison to its competitive firm. Generally, this benefit is availed by the company
though economies of scale, new technology,efficient logistics and low cost resources (labour,
materials, facilities). Langland advertising design and marketing can use this method in order to
attract large number of clients and retain present customers which are in form of organisation.
For example : Use of social media is most effective and reasonable tool through using which
organisation can increase its market share.
Differentiation : Under this strategy organisation make changes or add new features in
their product and services which are different and unique for their industry to attract the
customers. Landmark and advertising design and marketing can change in their services by
using different and effective methods of promotion. The company can charge premium prices for
offering different services to them (Burton, 2010).
Focus : Under this strategy focus is always on those areas which have no or less
concentration of the rival firm. Focus strategies generally concentrate on the niche market by
understanding its various factors and the needs of the customer. It can enhance the performance
of the Landmark and advertising company. This approach is divided into two parts which are as
follows : Cost focus : This strategy says that organisation should focus on their pricing of the
services so that it stand them, separate from their competitive firm. When product or
service is provided at low cost than quality should not be compromised.
 Differentiation focus : Landmark and advertising should focus on their services and its
efficiency so that it can create separate image in the large numbers of competitive firms.
It is recommended for this organisation to use cost leadership theory so that avail growth
opportunities in the market which are further supported with the use of digital technology tools.
PESTLE ANALYSIS
 Political factors : Business before starting its working in some country firstly understand
the political condition of that country. Every nation has various rules and regulation
which business have to follow in order to establish operational activities. If the political
2

environment is unstable than organisation can't able to achieve its desired productivity
and performance (Chapin, 2012). Landmark and advertising should understand the
political condition of their client country before planning their actions regarding
promotion to achieve the desired target.
 Economic factors : There are various economical factors that have major impacts in the
business such as economic crises, fluctuation, inflation and deflation, GDP rate and
growth rate. These have significant impact on the advertising agencies as they influence
purchasing power of people along with flow of money in the market. Company have to
make adequate strategies and action plans for enhancing growth in critical situations with
well manner.
 Social Factor – This can be described about different cultural or religious values of
people which influence their behavior of purchasing and selecting particular products.
Moreover, the given company should take care of such beliefs of people while conduct
promotional activities with the help of digital tools.
 Technological factor – There are different types of technological software, applications,
machines which can utilized by Landmark and advertising design and marketing to
conduct promotional events more effectively to gain desired results. The undertaking of
the contemporary digital tools will be helpful to an organization in enhancing market
share.
 Environmental factor – This involves to look after certain environmental problems like
global warming, pollution, extinction of species. The consideration of the ecological
factors helps a business in eliminating disruption in the business operations.
 Legal factor – This includes several legal rules and regulations which should be
followed by selected company to conduct each process of marketing (Christofakis and
Papadaskalopoulos, 2011).
P2 Analyse the opportunities for growth using ansoff's growth vector matrix.
Ansoff's growth vector matrix :
Ansoff growth matrix support organisation in increasing their market share and profit
margin by entering into new market or launching new product and services. This method is
developed by Igor ansoff in 1957. This model is adopted in the business in order to increase its
market position.
3

(Source : ANSOFF MATRIX FOR EVALUATING GROWTH OPPORTUNITIES, 2018)
Market Development : Under this method organisation want to achieve its growth by
entering into new market with the existing product. There are many ways which organisation
used in growth strategy such as new geographical market,new product dimension,different
distribution channel etc. It is the most riskiest strategy as compare to market penetration because
the market is fully unknown for the company. Landmark and advertising design and marketing
can use this method to increase their clients and earning high profit through venturing into
untouched market. The respective company can use online channels to sell their product and
services at new geographical region as it involve low cost.
Market Penetration : It is a method under which firm increase their market share by
existing product into current market share. The condition under this is less risky as compared to
other strategy because the customers understand the company products and quality. Firm can
enhance their market share,sales and customer loyalty through making small changes in their
existing services and product (Eddleston And et. al., 2013). For Landmark and advertising design
and marketing this method is appropriate for their business because they have to make small
variation in their existing service to attract the customer which cost very low. They can provide
the service at the low price by using the digital media. It is most advantageous method for the
4
Illustration 1: ANSOFF MATRIX FOR EVALUATING GROWTH OPPORTUNITIES

business because they have all the information about the competitors and customer demands and
needs. By adopting this method the respective company can save the money of the research.
Product Development : It is a growth strategy under which business offer new product
and services in the existing market. Under this strategy business use new technology for
increasing their market share . The business can take advantage of this situation by offering
reasonable product, providing qualitative product and services. It is not beneficial for the
Landmark and advertising design and marketing because they are not able to provide a
completely new service in the existing market. They can make variation in their service but they
have no scope to bring completely new service.
Diversification : Diversification is the growth strategy under which business enter into
new market with new product. It is the most risk among all stages because company is
completely unknown about the customer demand and market culture. This method should be
adopted only by taking proper guidance from the expert (Grover, Bokalo and Greenway, 2014).
TASK 2
P3 Display different source of fund and their benefits and drawbacks.
Fund is the essential part of the business without which no activity can be carried out in
the working premises. The organisation and individual can borrow fund from their
relatives,friends or from any financial institution. The choice of the source generally depends
upon the organisation structure and procedures. Landmark and advertising marketing company
can gather fund from any of the below source.
Payback period – it is referred to the time which is being required to cover its initial
investments through saving and profits.
Net present value : It can be considered as calculation of the net present values of cash
inflows subtracting the cash outflows. The firm can calculate it to gain their value of money over
time which beneficial to maintain their future cash flow.
Crowdfunding : In the present scenario crowdfunding is a popular means by which
organisation able to raise small amount from large number of people quickly. This is a platform
through which large number of investors and borrowers come together to fulfil each other
demands and needs. Landmark and advertising design and marketing can use this method to lend
the money for implementing new techniques of the development.
5

Advantages :
 It is the fastest and cheaper way of raising fund which does not involve any fees.
 Crowdfunding is the best way of testing public reaction to their product and services. If
the public invest in our business than its a sign that the business idea work well in the
market.
Disadvantages :
 For gathering fund from the crowdfunding site it is necessary that business patent or
copyright their idea so that it can't be steal by anyone.
 If the business not able to achieve its target amount than business have to return the
whole fund to the investors and have to go empty hand.
Peer to peer lending : It is a social lending under which individual lend and borrow from
each other. The financial intermediaries such as bank and credit union (Hough and et. al., 2010).
Peer to peer lending is the person to person lending under which borrower and lender meets
through online platform.
Advantages :
 It does not involve any prepayment penalty if the borrower pay off its loan before its due
date.
 Under this method interest is charged at low rate as compared to other credit cards and
financial institution.
Disadvantages :
 It does not provide large amount like other financial institution provide.
 The person who have less credit score can borrow from this source. As it charge high
interest rate which will harm the company in the long run. If the business want to borrow
from this source than they have to wait and improve their credit score.
Bank loan : Bank loan is a popular means through which business able to gather fund.
There are various types of banks which have the capacity to meet the individual and financial
needs. Loan is not provided to everyone who applied it was issued to only those persons who
have good credit history and credit ratings. This type of assessment is taken place for
organisation and individual to know their repaying capacity of debt. Landmark and advertising
design and marketing can use bank loan in order to raise their fund for satisfying their needs
(Keough, 2015).
6

Advantages :
 In this interest rates are generally fixed so that borrower can understand the level of
repayment after the life of the loan.
 The biggest advantage of this method is that individual and organisation get the
deduction on the interest they pay on the bank loan. It helps borrower in saving their tax.
Disadvantages :
 Every financial institution such as bank , have strict regulation which borrower have to
follow in the same way. Otherwise, it will damage the company's credibility and image in
the market.
 Many a times business stuck in the big problem of paying monthly instalment because
they does not get money from their borrower and customer on time.
TASK 3
P4 Prepare a business plan for growth
Company overview : Langland advertising design and marketing Ltd work under
advertising and marketing agency. The main activity of the company is advertising the healthcare
sector. The organisation head office is situated at Windsor,United kingdom. It offers advertising
services for recruitment and retention of patient for clinical studies (Li, Mobin and Keyser,
2016).
Vision : The vision statement of Langland advertising design and marketing Ltd is to provide
best digital services and campaigns in the market place.
Mission : The mission statement of Langland advertising design and marketing Ltd is to serve
better healthcare advertising services including digital and campaign for recruitment and
retention of patients towards firm.
Objectives :
 The objective of the company is, “To improve the market share by 10% through utilising
digital media tools by December 2019”.
Swot analysis
Strength :
 It has strong relationship with customers and have good reputation among competitors so
that they can get success easily.
7

 Langland advertising design and marketing Ltd company have talented team and staff
members who are creative in designing particular advertisements for healthcare centre.
 Company has good working environment that support in creating more demands among
customers and provide advertisements services to them for their satisfaction.
Weakness :
 There are some internal factors of Langland advertising design and marketing Ltd that
directly affects on the creativity and innovation in designing of advertisements.
 The major weakness of advertising agency is that lack of methods of identifying
uniqueness of creative advertisements due to inappropriate knowledges and ideas
(MacLeod, 2013) .
Opportunities :
 Company has opportunity to expand business through utilisation of the digital media
tools so that promotion of healthcare organisation can be carried out effectively.
 The another benefit of Langland advertising design and marketing Ltd is that it can
undertake additional promotional activities to make more people aware about its products
and services.
Threats :
 There are many of competitors who giving these kinds of services to the other sector
including health care and many more so competition is increasing day by day.
 There are founded some external factors that have major impacts on the business so
advertising agencies also required to consider those aspects for achieving success.
Segmenting :
The segmentation area of Langland advertising design and marketing Ltd is entire health
care centre in the UK. This organisation is designing promotional and marketing activities on
behalf of healthcare institution. (Mitchelmore and Rowley 2013) .
Targeting :
The target segment for this business enterprise is healthcare institution. This organisation
have been taking use of creativity and digital tools so that promotion and marketing for the
institution is carried out in an effective manner.
Positioning :
8

Langland advertising design and marketing Ltd is trying to occupy better position among
competitors so that brand image can be created. This company is being positioned as low cost
and quality oriented marketing and advertising agency operating in the market of UK and USA.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 40000 10000 12000 25000 10000
Investment 20000 12000 25000 25000
Total 40000 30000 24000 30000 35000
Marketing
expenditures
Advertisement 9000 8000 3000 8000 5000
Sales promotion 2000 8000 3000 7000 5000
Direct marketing 9000 8000 4000 6000 7000
Total 20000 24000 10000 21000 17000
Available balance 20000 6000 14000 9000 18000
TASK 4
P5 Present exit or succession option for a small business with their merits and demerits.
There are different types of exit and succession methods which can applied by Landmark and
advertising design and marketing which are explained below –
9

Liquidation : This is a kind of exit method in which procedure of bringing a business to
end along with distributing assets to claimants. It involves simply to sell out the business at an
appropriate amount to other person by following legal process (Moseley, 2013) .
Advantages Disadvantages
It provide support to get an accurate amount of
business through which owner can fulfil
overall expenses.
A person do not have any right on their
business after selling particular concern in
future.
Merger or acquisition : When two firms collaborate with each other and dissolved
identity of both brand to make new merged company then it is called as merger. It case of
acquisition, large organisation purchase small or medium business entity then the new company
will be known by name of buyer business- concern.
Advantages Disadvantages
It helps in reducing competition if rival is
taken over and it is easier to raise money for
large business.
It may raise clashes of culture between
different types of bushiness occur and conflicts
can take place in objectives of differentiated
businesses.
Initial public offering : In this part, companies issue their shares of stock in front of
public and provide the opportunity to purchase the same for earning money. It is useful in
context of collecting large amount of capital in short period of time (Pallagst, 2010) .
Advantages Disadvantages
It is helpful is rising huge amount of funds in
less duration of time for business.
It will results into lack of privacy and mat loss
control over the company.
CONCLUSION
Every business planing to change their existing position to attain the desired objective. It
include discussion about several key considerations for evaluating growth opportunities such as
Porter's generic model with its factors and PESTEL analysis. This involves description for
10

Ansoff's growth vector matrix along with several elements like market development, market
penetration, product development and diversification. There are various kinds of sources which
can used such as crowdfunding, peer to peer lending and bank loan with their advantages as well
as disadvantages. It also involves business plan including essential components like company
overview, vision, mission, objectives, swot analysis, segmenting, targeting and positioning. At
last but not the least, exit and succession methods are mentioned like Liquidation, Merger or
acquisition and Initial public offering with advantages or disadvantages.
11