Detailed Analysis Report: Lion Hudson Publishing, UK SME

This report provides a comprehensive analysis of Lion Hudson, a small publishing company in the UK, examining its background, growth strategies, and current challenges. The report utilizes secondary qualitative research to explore the company's development, including its adoption of a product development strategy within the Ansoff Matrix. It assesses the company's current situation, considering factors like recent ownership changes and the impact of online publishing. A PESTLE analysis evaluates the political, economic, social, technological, legal, and environmental factors influencing the business. The report concludes with recommendations for the future success of the SME. The analysis includes the entrepreneur's background, research process, aims, and objectives. It also analyzes the environmental factors impacting the operations of the business. The report also discusses the growth and development of the business till date and the current situation as faced by the SME.

Running head: UK SME
UK SME
Name of the Student
Name of the University
Author Note

1UK SME
Executive Summary
The main aim of the report is to throw light on the manner in which the firm is performing and
how the SME has undertaken various initiatives to ensure success. The SME which has been
selected for the purpose of the analysis can be understood to be the Lion Hudson which is a small
publishing company in the United Kingdom. The report discusses its overall growth strategy
along with the discussion on its strategies and factors influencing its operations. Certain
recommendations for its welfare have been provided.

2UK SME
Table of Contents
Introduction......................................................................................................................................3
Background of the SME..............................................................................................................3
Background of the entrepreneur..................................................................................................4
Research process..........................................................................................................................4
Aims and objectives of the report................................................................................................5
Findings...........................................................................................................................................5
Growth and development of the business till date.......................................................................5
Current situation as faced by the SME........................................................................................6
Evaluation of environmental factors............................................................................................7
Assessment of growth and development strategy of the business.................................................10
Government support schemes as available to the business...........................................................10
Conclusion.....................................................................................................................................11
Recommendations for the future...................................................................................................11
References......................................................................................................................................14

3UK SME
Introduction
Background of the SME
The Lion Hudson can be understood to be a small enterprise which is essentially involved
in the publishing of the quality literature which is largely dedicated to the Christian Faith. The
enterprise engages in publishing books for the adults and the children under the different
imprints. These books can be understood to be the Lion Books, Lion Children`s Books, Lion
Fiction and others (Britishchambers.org.uk 2020). These reflect a Christian worldview to the
general audience while the other variants such as the Candle Books and the Monarch books
support various Christian families, communities as well as individuals in the spiritual and
devotional lives. The books of the enterprise are very popular and are widely available in 200
languages around the globe. In consideration with this, the International co-edition publishing
can be understood to be the strength of the enterprise whereby more than half of the sales are
engaged in export markets. The enterprise provides quality services and is owned by the AFD
Group (Companieshouse.gov.uk 2020).
In consideration with this, the Lion Hudson publishes various many award winning as
well as talented authors. The enterprise is thrilled to have them as a part of their family. The
enterprise has been given various opportunities and recognition awards for their outstanding
contribution and the UK Christian Resources Together which was the Publisher of the Year.

4UK SME
The logos of the variants
(Source: Companieshouse.gov.uk 2020).
The enterprise has undertaken considerate initiatives to ensure that they will successfully
be able to reduce their overall environmental impact. In association with this, it can be stated
critical to ensure that the enterprise prints the books on paper which are largely sustainable. In
consideration with this, it can be essentially mentioned that, the enterprise engages in considerate
printing work which further assists them in ensuring overall welfare. In addition to the printing
services as provided by the enterprise, the enterprise also provides a variety of sales
representation, distribution and production, sales and PR services (Lionhudson.com 2020). In
consideration to this, the firm holds publishing rights for the titles on the website and considerate
illustration of books.
Background of the entrepreneur
The Lion Hudson publisher has been sold to a new division of the AFD group mentioning
that the jobs of the 15 remaining staff members is still there. In association with this, the
company has gone into administration in February with the FRP advisory as appointed by the
administrators in order to engage in effective management. In association with this, it can be
mentioned that the AFD group is owned by David and Alison Dorricott which aims to provide
the IT related and management solutions all across the United Kingdom.
According to Lionhudson.com (2020), AFD Group provided the most viable solution. In
association with this, it can be effectively stated that, these owners are the viable owners of the

5UK SME
firm and with their diligent vision and response; the enterprise will be able to attain its overall
goals and objectives in an adequate manner.
Research process
In this report, the research strategy which has been adequately followed for the study can
be understood to be the Secondary Qualitative research strategy. The report will be using the
secondary method of data collection and this will then be followed by the qualitative method of
analysis whereby the author has aimed to engage in the descriptive analysis of the different
growth as well as the overall strategy being applied by the enterprise and in consideration with
this, the current situation as faced by the SME will also be discussed critically. This shall then be
followed by the analysis of the different ways in which the enterprise will be able to engage in
successful operations and the environmental factors affecting the operations of the enterprise
shall also be discussed critically.
Aims and objectives of the report
The primary aims and objectives of the research can be mentioned to be as follows:
1. To engage in understanding the Growth and development of the business till date
2. To analyze the current scenario or challenges if any which are being faced by the
enterprise?
3. To understand the environmental factors affecting the operations of the firm.
4. To gain an understanding of the ways in which the industry can prosper in the long run
and ensure entrepreneur success.

6UK SME
Findings
Growth and development of the business till date
In order to understand how the enterprise has been growing to a greater extent, it
becomes effective to mention that, the use of the Ansoff Matrix will be made (Ansoff et al.
2018). The Ansoff Matrix can be understood to be a valid tool which helps in understanding the
different growth strategies which are generally undertaken by any enterprise to ensure that they
are being able to perform well in the long run and in consideration with this, they are being able
to ensure long term success (Morden 2016). In association with this, it can be stated critical to
mention that the Ansoff provides four different strategies which relate to the Market
development strategy, whereby a firm decides to expand to a new market, the product
development strategy, whereby the firm decides on expanding its opportunities by extending the
product line in the existing market, the market penetration, whereby the firm applies aggressive
strategies so that they are being able to sell the goods in the market and the diversification
strategy whereby a firm is essentially required to sells new products in new markets (Barrow et
al. 2018).
In association with this, it can be critically stated that, in the case of the Lion Hudson, the
journey of the growth and development of the firm can be related to that of the Product
development strategy (Lionhudson.com 2020). Earlier, the firm was simply involved in the
publishing of Christianity books and services, however, it is the recent history that the firm is
now involved in the consideration of the consulting activities along with formation of a hub of
the different authors as involved. It is in line with this, that the different initiatives of the
enterprise are targeted towards ensuring that they are being able to extend their current

7UK SME
operations and provide the different users with adequate facilities as to ensure successful
operations.
Current situation as faced by the SME
At present the company is in good hands. The owners of the SME had been changed
recently and this lead to the laying off of various jobs of the employees and at present there are
only 15-16 members as involved in the working of the enterprise (Blundel and Lockett 2011). In
consideration of this, the situation is for this moment contained and the new enterprise which has
been taken over the SME has formulated a series of plan which will help them in ensuring that
the rebound of the company can be done (Petty et al. 2010). However, the firm faces a consistent
threat of succumbing to pressure in association with the online books and publishing initiatives
which have been issues.
In association with this, it is relevant to state that, the external services as being provided
by the enterprise require time to be successful and in association with this, it is critical to
mention that, adequate steps have to be taken by the enterprise so as to ensure long term welfare
(Bridge, O’Neill and Martin 2012).
Evaluation of environmental factors
In order to gain an understanding of the different environmental factors which are
impacting the operations of the business, this section will highlight the PESTLE Factors
influencing the operations of the firm (David and David 2016). The different environmental
factors which have been chosen for the purpose of the business can be stated to be as follows:
 Political

8UK SME
 Social
 Environmental
 Technological
 Legal and Environmental.
The PESTLE analysis can be understood to be the tool which is used to understand those
factors which have a critical influence on the overall operations of the enterprise. This tool helps
in understanding how the revolving factors influence the business and how these can be dealt
with accordingly.
Political factors: In the United Kingdom, the main concern of the book publishing and the retail
is that the government has been the management of sales, consumer aspects and associated
patents and IP standards. The Office of Fair trade can be understood to be the authority which is
largely responsible for managing the different operations. The main role of the office is to ensure
that the consumer needs are met with and the consumers are held accountable along with the
retailers (Deakins and Freel 2009). It protects the consumers with the help of certain consumer
protection laws and initiatives. In addition to this, there are several issues pertaining to the IP
and Patent issues which have to be abided by the enterprise in order to ensure effective
operations.
Economic factors: The economic factors relate to those factors which largely determine the
purchasing power and associated factors impacting the operations of the firm. The economic
concern which emerges in the book and publishing industry can be referred as to the pricing
business. As the pound of the United Kingdom is against the Euro and the United States Dollar
and in association with this, it is essential to mention that the enterprises are suffering worldwide

9UK SME
and as the printing capacity has gone down to a greater extent, it has led to an increase in the
printing expenditures which have been rising drastically and the rise in the paper prices have also
lead to an issue (Frynas and Mellahi 2015). As most of the readings of the different individuals
are now present on the online domain, it becomes essentially critical to state that this fall in the
demand and rise in supply has led to a considerate problematic scenario.
Social factors: The social factors can be understood to be those factors which affect the overall
thinking of the different individuals as present and tend to determine the value of the book
industry as well. As the trend of the value of the United Kingdom book market has been
decreasing to a greater extent (Fsb.org.uk 2020). The individual spending patterns have been
changing to a greater extend and they spend less money in purchasing books and more money in
instead purchasing e-books online. This has led to a loss of £100 million. In addition to this the
preferences of the different individuals have been changing to a greater extend and with respect
of this, this changing trend has affected the overall operations of the firm (Gov.uk 2020).
Technological factors: The technological factors relate to the factors associated with the new
type of printing technology and the growth of the offset printing mechanism. In association with
this, it becomes effective to consider that, the paper back releases, the mainstream press and
associated data has been decreasing to a greater extent. In association with this, the technology
has been rather helpful for the industry as it helps them in printing larger quantities at a lesser
price which will then lead to better offerings (Gov.uk 2020). Moreover, the technology has also
led to an increase in the overall online reading and e-books techniques which has greatly affected
the operations of the enterprise to a greater extent. The technology related to the print on demand
and the electric charge has been helpful.

10UK SME
Environmental factors: The consciousness regarding the environment has become very serious
and in consideration with this, it is effective to state that, all individuals now like to engage in
reading books which have been made the environmental friendly way (Rothaermel 2016). The
green printing and the eco printing as an aspect has become a rather popular concept which may
be helpful in ensuring that a minimum waste reduction procedure is engaged in. In line with this,
the concept of e-reading has risen as it does not inculcate any harm to the environment and leads
to better environmental solutions (Hill 2017).
Legal factors: The legal aspects which are required to be taken care of by the business can be
understood to be the aspects related to the issues relating to copyright and associated patents.
Many countries including the United Kingdom around the globe are subject to some obligations
which will assist them in maintaining parity at such times and ensuring overall success.
Assessment of growth and development strategy of the business
Hence, the business environment can be understood to be rather diverse in nature and it is
in association with this that considerate steps are required to be undertake by the business to
overcome these issues(Lasserre 2017). From the section undertaken previously, it was identified
that the enterprise makes use of the Product development strategy in order to grow and develop
its operations in the market. However, according to Jerichowriters.com (2020), the Product
development strategy under the Ansoff matrix strategy cannot be necessarily undertaken as a
sufficient strategy which can be made use of by the different businesses to carry out their
operations. The product development strategy requires adequate financial resources and
innovative capabilities which a firm may not be able to afford and hence, the product
development as a strategy may not be a sufficient strategy which is required to be carried out by

11UK SME
the enterprise (Socialenterprise.org.uk 2020). In consideration of this, it can be stated that the
Product development strategy which has been applied by enterprise is incomplete and in
consideration of this, it needs to apply other related strategies for its overall welfare such as the
market development and market penetration strategy (Lionhudson.com 2020). As there has been
a shift rewards the digital reading and online book formats, the publishers would be required to
ensure sufficient marketing techniques so as to bring about an adequate difference in the current
strategies and ensure that it is still being able to survive.
Government support schemes as available to the business
As mentioned earlier, the initiatives which have been undertaken by the government to
protect the different firms in the book industry can be stated to be the Office of Fair trade. The
office of Fair trade is an enterprise which is largely engaged in ensuring that the different
publishers are supported throughout and extends the support to the side of the different
customers as well (Socialenterprise.org.uk 2020). Moreover, the financial department of the
United Kingdom has a special sanction for the SME whereby they are provided with adequate
support in terms of infrastructure and technology capability as well.
Conclusion
Therefore, it can be rightfully mentioned that conducting a small business is not easy and
effective as well as the considerate initiatives as well as the steps need to be taken by the
enterprises in order to ensure that they are successfully being able to engage in successful
business activities. The report followed a simple format whereby the SME undertaken in the UK
was Lion Hudson. The report was focused on finding the manner in which the Lion Hudson has
been affected due to the changing environmental forces and the future steps and procedures