Harvey Water Softener's Growth Strategies

This assignment examines Harvey Water Softener's current situation, including its market position, challenges, and opportunities. It analyzes factors impacting the company's growth and proposes strategies to enhance profitability and market share. Recommendations focus on adopting innovative technologies, building a creative workforce, and implementing effective management practices.

Small and medium
enterprises

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Nature of entrepreneur behind the venture .................................................................................1
SMEs start up processes ..............................................................................................................2
Business concept and any source of competitive advantage ......................................................3
The current level of demand and competitive environment .......................................................4
Growth and Development of business to date ............................................................................4
Challenges of managing and running the business .....................................................................5
Growth and development strategy of SMEs ...............................................................................6
Support of government for measuring and overcoming the challenges .....................................7
CONCLUSION................................................................................................................................8
RECOMMENDATIONS ................................................................................................................8
REFRENCES ..................................................................................................................................9

INTRODUCTION
Small and medium sized businesses are enterprises which maintain revenues, assets or
number of workers below certain beginning. Every nation or economic company has their own
explanation of small and medium sized business. SMEs play important role in future economies.
Small and mid enterprise make 80% of the new jobs in emerging economies (Wynarczyk and
et.al., 2016). This study is based on the Harvey Water Softeners. It is the one manufacturer
which is delivered softened water by removing hardness minerals from mains water supply.
Report will explain the nature of entrepreneur behind the venture, SMEs start up processes. It
will state business concept and any source of competitive advantage. The aim of this report is to
growth and development of small medium enterprises in the UK.
MAIN BODY
Nature of entrepreneur behind the venture
The Harvey Bowden is the founder and chairman of Harvey Water Softeners in the UK.
The life of Bowden unlimited characters. His finding to enjoy life has taken him from quite
childhood. It took special type of person to point problem which was presented to him by his
wife the situation of hard water. Therefore, Harvey invent solution which would aid hundreds of
thousands of homeowner. He is started long before that though in simple farmhouse in 1949 on
the Cornish Farm. The young Bowden followed this disaffected characteristic from birth which
is being an unexpected surprise for his parents (Harvey Bowden: Biography of an Inventor,
2018). During his early school years in Looe where he effort with learning disability, he knew
that his future lay in businesses instead of education.
In order to that, his father, is baker who had rotated to farming during second world war
and had passed on the entrepreneurial spirit to his son. In early years, it took grit and discovery to
get the business off the ground. Bowden had both and he speedily became the largest water
softener installer in the field. In early days, it was just him and his trusty Transit van as he
distributed the word about building soft water and installing every softener himself. Therefore,
Harvey Bowden make efforts for producing the water softener by removing the minerals for
taking care of health and safety of consumers in the marketplace (Hillary, ed., 2017. This kind of
development help to raise the profits and market share of the Harvey Water Softener.
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SMEs start up processes
Harvey Bowden has started the Harvey Water Softener when they point the specific
problem which related to hard water then he invent solution which would aid thousands of
householders. Harvey trying his hand an electrician then tyre-fitter then plumber. They has
always changed his life forever in 1975. at that time, his wife bought water softener than he was
immediately regenerate to the benefits (Bruhn, Karlan and Schoar, 2018). He was built for
homes in hand water areas, this home appliance was not familiar to many back then and Bowden
saw chance. Later, he starts selling water softener door to door in working where he was living.
After Harvey Water Softener was born in 1978. The entrepreneur of selected company is to
determine different factors for starting up the enterprise which involves
Identification of new chance:
It is necessary to identify and determine the new chance of new enterprise. Therefore,
Harvey Bowden explore both external and internal resources. In the internal resource, he was
identified that people has many problems related to hard water like skin issue, other diseases.
Also, he was determined the recent trends of water softener which is involved in external
resource. This help to raise the profits and market share of business in the UK.
Identify the innovation process:
After recognise new opportunity, an entrepreneur needs to determine the innovation
process which involves looking trends in custom, observing other demand and requirements,
fresh utilization of known goods and highly familiar with goods itself (Massaro and et.al., 2016).
With innovation, Harvey convinced for starting new business which water softener in the UK.
This help to raise the profits and market share of business in the UK.
Evaluating new business chance:
After recognise invention procedure, Bowden needs to evaluate new business chance
which is very necessary to systematic analysis of different risks like long term profits and
feasibility associated with business. Also, Harvey needs to determine market knowledge relating
to demand possibility, present and future size of market, techniques of distribution and quality
control. With this, Bowden can be started new business which is Harvey Water Softener in the
UK. This help to raise the profits and market share of business in the UK.
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Business concept and any source of competitive advantage
The business concept is to supply the water softener by removing the magnesium and
calcium present in water supply through procedure of ion exchange which is turned it from hard
water to softened water. By softening water, people can secure home from deadly build up while
also removing limescale and better skin, hair of their family (Lee, Herold and Yu, 2016).
Therefore, Harvey Bowden was started new venture which is Harvey Water Softener in the 1975.
In order to that, an entrepreneur can follow source of competitive advantage for increase market
share and profitability of new venture in the UK.
Competitive advantage is determined that when two or more companies compete within
similar marketplace, one organization possesses competitive advantage over their competitors
when its gains a haunting larger rate of profits. It appears from internal sources when firms have
larger creative or innovative capacities and from external sources around modify consumer
deficiencies , prices and technology change. There are mainly three source of competitive
advantages like cost leadership, differentiation and focus which are4 utilised by entrepreneur of
firm.
Cost leadership:
It refers firms gives reasonable value at the lower price as compared to their competitors.
Companies utilise this source constantly improving operational efficiency. It normally refers
paying their employees less (Brunswicker and Vanhaverbeke, 2015). If the venture is able to
manufacture similar quality good but sell it for less, it provides them competitive edge over other
company. Thus, it gives price value to their consumers. This provides lower manufacturing cost
over those of other challengers.
Differentiation:
It refers deliver better advantages than competitors. Company can accomplish
differentiation by giving specific or high-quality good. Another technique is to deliver it faster.
In this source, entrepreneur of Harvey Water Softener will need powerful research, improvement
and design thinking to make creative thoughts. These developments to products and services can
involve delivering large quality to customers.
Focus:
It refers to entrepreneur realise and service their target markets better than competitors.
The key to successful focus source is to select very unique target market (Bouazza, Ardjouman
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and Abada, 2015). Selected SMEs utilise this technique normally focus on requirements of the
consumer and ways of improvement their goods and services day to day life. In this method,
some companies can let consumers provide their inputs for their goods and facilities.
The current level of demand and competitive environment
Increasing cares over global climate changes as well as population levels are enhanced
demand of well-being, hygiene and safety where water treatment plays wider role. There are high
level demand for water softener which is growing from residential and commercial users, water
and waste water treatments plans to remove the mineral like calcium and magnesium from hard
to soft water. It is anticipated to support the growth of international market softener market.
Furthermore, increase awareness between consumers related with the harmful influences of hard
water on appliances and on well-being of mankind is dynamic sales of water softener across the
world-wide. Fast manufacture is directly effective quality of water (Memili and et.al., 2015).
Thereby, government is investing into focused plans for water softeners which is mainly driven
through the introduction of advanced and creative water softening instruments characteristics
with anti-scaling, Wi-Fi enabled with self cleaning tech.
Growth and Development of business to date
Over the two previous years, Harvey water softener have step by step undertaking
structure change in the manner so that they produce the water softener. Now, company able to
see the important effect these changes after investing more than £2.5 million in new
manufacturing tech over two year. Company have had on their production as they approach the
end of this programme and continue to develop (Volery, Mueller and von Siemens, 2015). In
relation to encourage and decrease the manual procedure includes in manufacturing each water
softener, they have shared 100% of their production back to the UK with wider majority done in-
house.
Enhanced output and quality:
By automating the procedure of manufacturing, Harvey Water softener have raised their
manufacture output by 15% with taking on additional staff. In order to that, an automated
manufacturing line removes the risk of human mistakes (Wynarczyk and et.al., 2016). Therefore,
they has decreased the amount of failure finding during final machine from 40 per week to just
four (Research and development, 2018). Now, company is producing the Harvey Water Softener
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in larger quality and high quantities. This kind of research and development help to raise the
profits and market share of Harvey Water Softener.
Innovative manufacturing:
The investment of Harvey Water Softener in innovative tech which has involved 3D
printing and state-of-the-art injection moulding machine. Now, company can transform thought
on paper into working images, in juts three days and for much lower cost. They can foresee any
future issues with goods and eliminate any breaks before production takes place by making these
models and testing them out. It is integrating the utilisation of 3D printing tech into procedure of
manufacturing which has positioned at the head of UK manufacture (Hillary, ed., 2017). This
kind of research and development help to raise the profits and market share of Harvey Water
Softener.
Harvey Water Softener has raised workforce by 20% in the last year and invention has
played important role in the growth and development of business in the UK. Company is
investing in future of the venture and their employees. They will continue to strengthens these
modification and control their position as innovator long into the future. It will allow to aid more
houseowners experience, the benefits of softened water which is creating cleaning greener, water
tastier and power bills lower for consumers. This kind of research and development help to raise
the profits and market share of Harvey Water Softener.
Challenges of managing and running the business
At the time of managing and running the business, Harvey Bowden who is founder and
entrepreneur of Harvey Water Softener faced many challenges like technology, number of
workers, capital requirements, low brand awareness and consumer demand within the UK.
Bowden run and manage the business within his father, therefore, changes in thoughts,
generation will effect on managing and running the business (Bruhn, Karlan and Schoar, 2018).
These challenges effected on business expansion of Harvey Water Softener at the international
level in relation to growth and development of business.
Generation difference:
It is the largest problem when traditional and modern people working together in relation
to running and managing the business. This kind of issue affect on overall the business.
Therefore, Harvey Bowden and his father have different thoughts and innovation which is
directly effected on business. In relation to, Harvey has modern thoughts and his father has
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tradition ideas, so that it impact on management of business. These challenges effected on
business expansion of Harvey Water Softener at the international level in relation to growth and
development of business.
Lack of consumer demand:
Over previous year, there is lack of demand by consumer of water softener that is also
highly effected on managing and running the venture. Now, there are highly level of demand of
consumer for water softener which is more beneficial and profitable of business. This impact on
sales and profits of business (Massaro and et.al., 2016). These challenges effected on business
expansion of Harvey Water Softener at the international level in relation to growth and
development of business.
Lack of technology:
It is the major challenge faced by entrepreneur and its business. Technology is the most
important part of water softener. Therefore, lack of technology is highly effected on managing
and running the business in the UK. This directly impact on demand of goods and services in the
market. Thus, innovative technology play important role in water softener which help to sales
and profits of business. These challenges effected on business expansion of Harvey Water
Softener at the international level in relation to growth and development of business.
Capital requirement:
The lack of capital requirement is the also major challenged while running and starting
the new venture in the UK. Therefore, Harvey Bowden has needed the more capital for effective
managing business. This impact on sales and profits of business (Lee, Herold and Yu, 2016).
Thus, there are high capital requirement in the business which is beneficial and profitable for
growth of business. These challenges effected on business expansion of Harvey Water Softener
at the international level.
Growth and development strategy of SMEs
The small and medium sized enterprise like Harvey Water Softener adopt the strategies
for growth and development of business at the international market. Growth strategies involve
joint venture, merger and acquisition or strategic alliance which are utilised by the Bowden for
growth and development of new venture at the global level (Brunswicker and Vanhaverbeke,
2015). This can help to expand the Harvey Water Softener at the upper level.
Joint Venture:
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It is the main growth strategy which is utilised by small-medium sized enterprise. A
business management in which tow or more partners agree to pool their sources for the aims of
achieving particular activity. Task can be new business or other business action. Each of
respondents are responsible for profits, losses and costs linked with it. Business is its own
organization, separate and apart from the partners other business interests (Bouazza, Ardjouman
and Abada, 2015). Therefore, Harvey Water Softener can be follow the joint venture which has
many of advantages like wider business success to direct on their core competencies because
when venture becomes jack of commercialism. This can allow to business to offer their
consumers whole new field of services without losing direction on their capabilities and
particular services. This can help to expand the Harvey Water Softener at the upper level.
Merger and Acquisition:
It is the another growth strategy which is utilised by small-medium sized enterprise. It
means occurs when two separate company combine forces to make new and joint company.
Meanwhile, acquisition means to the take over of the one organization by other. Merger and
acquisition can be completed to expand firm or gain market share in effort to make value of
shareholder. Therefore, Harvey Water Softener can be follow the merger and acquisition which
has many of advantages like tax benefits, enhance monetary advantage and use alternative tax
benefits (Volery, Mueller and von Siemens, 2015). The aim of acquisition is to create the
incorporated organisation more valuable than total of values of the pre-incorporation firm. This
can help to expand the Harvey Water Softener at the upper level.
Support of government for measuring and overcoming the challenges
The Government of UK give support for measuring and overcoming the challenges which
has faced by Harvey Water Softener while starting new venture. Government needs to raise the
awareness of water softener as per the health and safety of public in the UK. Therefore,
government has regulated many of laws and guidelines relating to the water quality. The
government of UK regulate Drinking Water Regulation 2000 came into effect on 2003. thi8s
guideline explain if the standard for minerals is breached in sample taken from tap in domestic
premises, so that water organization will research to identify the reason of the break (Memili and
et.al., 2015). If the reason of break is the usage of softener within the sites, so that Harvey Water
Softener must notify the failure of consumer, reason and any activity that can be desirable for the
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customers to take in the interest of their well-being and safety. Also, it is advice from the
Department of Health.
In order to that, selected small-medium sized company follow all the regulations and
guidelines of government and department of health. In order to that, if the Harvey Water
Softener follow regulations relating to water, so that this kind of strategy help to overcome the
challenge that is lack of consumer demand and awareness. This kind of research and
development help to raise the profits and market share of Harvey Water Softener.
CONCLUSION
This report has summarised that nature of Harvey Bowden while they giving the water
softener by removing the minerals. It can be concluded that company use the growth and
development strategy like joint venture, merger and acquisition at the international level. It can
be discussed that challenges like lack of demand, technology which are faced by the selected
organization. Furthermore, report has completed that enhanced quality and innovative production
procedure that involves ion the development of company. It can be concluded that company
utilise the cost, differentiation and focus as source of competitive advantage in the market.
RECOMMENDATIONS
From the above report, Harvey Water Softener should follow differentiation and cost
source of competitive advantage within the business. Thus, it can give price value to their
consumers. This provides lower manufacturing cost over those of other challengers. This should
help to increase the value of products as compared to their challengers. Also, this source should
aid to increased demand of goods of selected company. As well, company should also follow
joint venture as strategy for development and growth at the international level. This kind of
research and development should help to raise the profits and market share of Harvey Water
Softener. Also, they should follow all the regulations and guidelines for taking care of health and
safety of people in the marketplace. This should help to enhance the profitability and
productivity of small-medium sized enterprise in the United Kingdom. Also, company should
adopt the innovative technology and creative workforce for effectively running and managing the
business. This kind of investigation and improvement can help to raise the profitability and
market share of Harvey Water Softener.
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REFRENCES
Books and Journals
Bouazza, A. B., Ardjouman, D. and Abada, O., 2015. Establishing the factors affecting the
growth of small and medium-sized enterprises in Algeria. American International journal
of Social science. 4(2). pp.101-115.
Bruhn, M., Karlan, D. and Schoar, A., 2018. The impact of consulting services on small and
medium enterprises: Evidence from a randomized trial in mexico. Journal of Political
Economy, 126(2), pp.635-687.
Brunswicker, S. and Vanhaverbeke, W., 2015. Open innovation in small and medium‐sized
enterprises (SMEs): External knowledge sourcing strategies and internal organizational
facilitators. Journal of Small Business Management. 53(4). pp.1241-1263.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Lee, K. H., Herold, D. M. and Yu, A. L., 2016. Small and medium enterprises and corporate
social responsibility practice: A Swedish perspective. Corporate Social Responsibility and
Environmental Management. 23(2). pp.88-99.
Massaro, M. and et.al., 2016. Knowledge management in small and medium enterprises: a
structured literature review. Journal of Knowledge Management. 20(2). pp.258-291.
Memili, E. and et.al., 2015. The impact of small-and medium-sized family firms on economic
growth. Small Business Economics. 45(4). pp.771-785.
Volery, T., Mueller, S. and von Siemens, B., 2015. Entrepreneur ambidexterity: A study of
entrepreneur behaviours and competencies in growth-oriented small and medium-sized
enterprises. International Small Business Journal. 33(2). pp.109-129.
Wynarczyk, P. and et.al., 2016. Managerial labour markets in small and medium-sized
enterprises. Routledge.
Online
Harvey Bowden: Biography of an Inventor, 2018. [ONLINE]. Available through. :
<https://www.harveywatersofteners.co.uk/about/harvey-bowden-biography-inventor>.
Research and development, 2018. [ONLINE]. Available through. :
<https://www.harveywatersofteners.co.uk/about/research-and-development>.
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