Planning for Growth: Williams Performance Tenders Report

This report examines the crucial role of planning in the growth and development of small businesses, emphasizing the importance of strategies and policies to increase market share and profitability. It analyzes key considerations for growth, such as understanding customer requirements, offering pr...Read More

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
1.1 Analyzing and evaluating key consideration for growth and opportunity and justifying
consideration within organizational context...........................................................................1
P2 Evaluating growth opportunities by applying Ansoff's growth vector matrix..................3
LO 2.................................................................................................................................................4
P3 Assessing the potential sources of funds available to business and discussing their benefits
and drawback..........................................................................................................................4
LO 3...............................................................................................................................................10
P4 Designing business plan for growth and development of financial information and strategic
objectives of a business........................................................................................................10
LO 4...............................................................................................................................................14
P5 Assessing exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................17

INTRODUCTION
Planning plays crucial role in growth and development of small business. Organisation
implements different strategies policies which, increase market shares and profitability.
(Hawkey, 2017). Effective planning will reduce cost of operations and increase the profitability.
Further, this project discusses about important considerations that will help organisation to grow
and develop.
Ansoff's growth vector matrix is a strategic planning tool, which provides guidelines to
help the top level management to potentially utilise resources of funds that are available to
business. It helps businesses to determine various types of growth strategies like market
penetration, market development, product development and diversification. It is very helpful for
the management to grab growth opportunities from market. At the end, this project discusses
briefly about process of winding up.
LO 1
1.1 Analysing and evaluating key consideration for growth and opportunity and justifying
consideration within organisational context
Williams Performance Tenders is operating in UK. This company offers wide range of stylish
products and services. Growth opportunities refer to as investments made by organisation in
order to expand their business operations. They focus on increasing their market share by selling
new goods and services. Entrepreneur evaluates and identifies their resources and capital in order
to expand businesses (Kalra and Gupta, 2014). Williams Performance Tenders is a company,
which has turnover of £1.3 billion with 26 employees.
Some important consideration for growth and development of this organisation are given
below.
 Understanding requirement of customers: It is significant to understand the needs of
customers. Williams Performance Tenders target customers from different segments of
market. Effective communication helps in establishing good bonds with customers. They
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can collect feedback about products from customers. This will identify requirements and
needs of buyers in businesses.
 Offering creative and profitable services to their customers: This establishment is
required to change existing offer on products and services in order to garb new growth
opportunities. They must offer profitable deals to customers. For example, Williams
Performance Tenders offer combination of products plus free services. This will help
smaller companies to increase their market share.
 Effective Communication: This company can use social media and websites to
communicate important messages to customers. Globalisation has helped business to
establish worldwide relationships with customers (Lee and et.al., 2015). Williams
Performance Tenders uses official website to spread awareness about their new products.
 Assess your foundational assets: This organisation should critically evaluate assets and
inventories. Williams Performance Tender record all monitory assets like buildings,
machines and non-monitory assets like relations with customers and suppliers. Evaluation
of assets help an organisation to increase productivity and increase size of operation.
Factors that are significant for evaluating growth opportunities of Williams Performance
Tender.
 Competition with other organisations: There are many other firms in market that are
selling same types of products. New entrants tend to increase level of competition in
market. Williams Performance Tender can gain competitive advantages with the help of
pricing method. It can adopt various methods to target market to sell their products.
 Incentives: There are various types of incentives, which are to be considered before
making plans related to growth and development. Government charges less import duty
on some products. Williams Performance Tender offer some tax wavier products to
customers in order to increase their base.
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 Diversification: It invests their money in different projects, which are outside the frame
work. Business is divided in different structures like horizontal, vertical (Love and Roper,
2015). Williams Performance Tender invested money in different structures and
departments in order to expand their business activities.
 Integrative strategy: Business implements combination of two or more strategies, which
allow it to grow and expand vertically or horizontally. Williams Performance Tender
increases the market share by acquiring services from new suppliers and distributors.
Horizontal growth will help them to capture new business.
 Market research: It should conduct market research in order to analyse feasibility of
business. This will help in evaluating the resources and effectively by utilising them
(Ways to Fund Your Small Business, 2018.). Williams Performance Tender conduct the
financial assessment to identify personal savings for initial investment. It helps in
evaluating financial assets.
PESTAL analysis:
Factors Details
Political To invests money in different projects, which
are outside the frame work compliance with
legal frameworks is needed. Williams
Performance Tender invested money in
different structures and departments in order to
expand their business activities which can be
direly effect by the political influence and
Investment in nation where the relation are not
good can be difficult.
Economical Williams Performance Tender increases the
market share by acquiring services from new
suppliers and distributors. Horizontal growth
will help them to capture new business, this
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can directly get affected with changes in
economic condition and framework of nation.
With increase in inflation the prices of the
goods and service of the firms also increase
directly affecting profit figures.
Social To attract the consumers the firm can change
existing offer on products and services in order
to garb new growth opportunities. They must
offer profitable deals to customers. For
example, Williams Performance Tenders offer
combination of products plus free services to
influence the buying behavior of the buyers.
Technological Engaging in application of new and latest
technology the organization can increase its
profitability as well as market share as with
technological advancements the firm get
competitive advances at the market place.
Environmental With effective CSR and sustainability
performance consumers and government can
be attracted, as shoppers are attracted toward
organic products which reflect that company
do practice in direction of protecting the
environment.
Legal Company need to comply with all laws,
legislation, regulations and standard for
smooth running of the business and avoiding
legal complications.
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P2 Evaluating growth opportunities by applying Ansoff's growth vector matrix
This is a strategic planning tool, which provides the framework to help top level management.
This theory is named after Igor Ansoff. It helps businesses to determine various types of growth
strategies like market penetration, market development, product development and diversification.
It is very helpful for the management to grab growth opportunities from market.
According to Ansoff there are four alternatives of growth.
1. Market penetration: This company put efforts to capture the market with the help of
existing products and services. In other ways, it struggles to increase market share in
current market condition. This strategy helps Williams Performance Tender to identify
new customers in existing market.
2. Market development: This strategy help organisation to grow and expand their market
and operate globally. Williams Performance Tender continuously alter pricing policy, to
grab the attention of new buyers. They make changes in existing policies in order to
create new segment of market for customers. Merging of distribution channel helps an
organisation to sell their products in other countries (Scarborough, 2016).
3. Diversification: They introduce new products in market to increase market share. It is
quite difficult for business to develop both market and product. Implementation of this
strategy is risky because organisation is entering in completely new market. Williams
Performance Tender has strong market strategy, which tends to be profitable to business.
4. Product development: This strategy helps an establishment in designing new products
and services, to achieve growth in targeted market. On the basis of feedback, organisation
modify or innovate their existing products. Williams Performance Tender introduces new
products in market to satisfy customers demands. This will help to increase customer
base. Size and nature plays major roles in deciding strategies related to growth and
development.
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LO 2
P3 Assessing the potential sources of funds available to business and discussing their benefits
and drawback
Business should have enough resources to start, diversify and develop. They must have
strong business ideas and capacity to grow in the future. There are various techniques which help
group in identifying growth opportunities. Good corporate plans grab attention of investors.
Availability to funds help organisation in achieving long term objectives of business (Blackburn,
Hart, and Wainwright, 2015). Williams Performance Tender is a small business operating in UK,
it has net-worth of £25.33 million. There are various sources from which organisation can make
funds available.
Personal sources: organisation critically evaluates the financial resources in order to identify
their personal savings. Every entrepreneur considers personal sources before starting up any
business. Williams Performance Tender have personal savings in the form of cash and kind.
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Advantage
This is the easiest way to arrange funds for the business where all savings belong to
owner. There is no requirement to pay any interest.
Disadvantage
Entrepreneur is responsible for loss and profit of organisation. They bare all risk related
to business. Personal savings are generally in small amount.
Bank overdraft
This facility is given by bank to customers in which they agree to overdraw amount from
current business account (Cowling, Liu and Ledger, 2016). Bank overdraft is a type of short term
loan that help business to meet current requirements.
Advantages
This is the most economical source for funds. Banks charge small amount of fees in over
draft. It helps Williams Performance Tender to maintain flow of cash. Overdraft is available
quickly as compared to normal loan.
Disadvantage
Small organisation finds difficult to arrange funds from overdraft because they have
lesser amount of capital. Bank has set minimum over draft limit and these cannot exceed that
particular limit.
External sources
Organisation gets various types of grants to establish new business. This is given by local
authorities and government agencies in order to promote operations. In order to develop industry
in backward areas, the government provide grants. Some institutions help businessmen to launch
new productions.
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Advantages
This plays a major role in the growth and development of industries which are situated in
backward areas. It helps an entrepreneur in implementing new business plans and policies.
(Barnes and et. al., 2015). Organisation are not required to pay back this grant and no interest is
charged.
Disadvantage
It is difficult to identify financial institutions, which will grant loan to small business.
This will tend to increase competition in market because new business is considered more
important than other.
Venture capital
Private equity group provides funds to small and medium size organisations. Williams
Performance Tender used this source in earlier stage of business start-up. This help to grow and
develop new companies. Venture capital provide funds to all angles of business. Inventors invest
large amount and expect high rate of return on investment.
Advantage
This provides capital to new business in order to establish and develop organisational
structure. This helps to take important decisions related to business.
Disadvantage
An entrepreneur loss control over key decision of business operation. It is complex
procedures and small organisation face difficulty in arranging funds. Identifying right investor is
a complicated task for new business.
Invoice discounting and invoice factoring: organisation outsource some of their activities to
external organisation. On the basis outstanding invoices, business is able to arrange funds for few
days. This way businesses can meet up current businesses requirement. Services consist of cost
like administration charge, interest, etc.
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Advantages
This is the quickest and fastest source of funds which are available to organisation.
Factoring companies help organisation to maintain smooth cash flow. It is the cost effective
technique adopted by organisation (Chapin, 2015). This strategy provides competitive
advantages to Williams Performance Tender. It helps in identifying the creditability of the
business.
Disadvantage
This reduces the borrowing power of customers because invoice is not available.
Customers prefer to direct deal with suppliers.
Trade credit: business organisation purchase goods from outside companies in order to manage
business operation. Suppliers provide products or services in credit to their customers. They
expect to receive payment on a later date. Trader generally offer credit period of 30 days to
maintain circulation of current working capital. Trade credit helps Williams Performance Tender
to arrange short term funds. Suppliers risk their future working relationship with businesses.
Advantages
This requires less amount of capital in order to start up a business. It is significant for
entrepreneur with less amount of capital. Trade credit facilitate business to currently buy
products and pay later on. This provides time to businesses to focus on other key issues like
marketing strategies etc. This help organisation performs all business operation smoothly and
efficiently. For example, Williams Performance Tender arrange funds with the help of trade
credit (Claessens, and et. al., 2014).
Disadvantage
If organisation fail to meet up deadline of trade credit, this will create their poor
reputation. It is difficult for new firm to arrange funds from this source.
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Hire purchase and leasing: Business can acquire without paying any consideration. They have a
right to use asset for a specific time. Williams Performance Tender can arrange some funds by
leasing their assets. In this process, business is paying rent for using machine and equipment.
Advantages
Organisation can use assets without paying full consideration or amount. This provides
facility of utilising cash for some other important business purposes. Some assets are too costly;
this provide facility to spread the cost over the period. Business can carry out short operations
with the help of leases. This help in reducing the cost of maintenance and increasing overall
profitability.
Disadvantage
Sometimes, leasing of equipment is more expensive as compared to buying of it.
Businesses can claim capital investment only after 5 years or sometimes even more than that.
Williams Performance Tender enter into a long term agreement to lease equipment. This contract
is a complex process (Esteban-Guitart, and Moll, 2014). Businessmen do not become owner of
assets even after paying monthly instalments.
Bank loans: organisation can arrange loans by providing bank with security and prospects of
business. This is amount borrowed by for definite period, with the intention to repay back. The
duration of repayment depends upon the size, length and structure of business. Financial
institutions can negotiate terms and conditions of loan. Short term and long term are two types of
loan. Banks has different loan packages depend upon the requirement of organisation. If business
is risky, they will charge high rate of interest.
Advantages
they are the most reliable source of finance because repayment period is agreed in
advance. Organisation can purchase equipment or machine using loan. Williams Performance
Tender pay interest on the sum borrowed for purchasing asset.
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Disadvantage
Bank has strict terms and conditions regarding repayment of loan. If business do not
repay the amount on time and this will create insufficient flow of cash. Loans are secured by the
assets of business; this will lead to risky situation for assets of Williams Performance Tender if
they fail to repay the amount. Bank provides loans on the basis of financial position and asset.
LO 3
P4 Designing business plan for growth and development of financial information and strategic
objectives of a business
Executive summary
Williams Performance Tender offer wide range of stylish products and it is operating in
business. Operation of industries are owned and managed mutually by members of an
organisation. Williams Performance Tender has 900+ shareholders, interested in every activity of
business. They are operating worldwide and has 800+ stores in UK and England (George, Gahan
and Prabhu, 2016). They focus on providing quality services to customers.
Objectives
This organisation is operating globally and it is owned and managed mutually by its
people. Given below are some objectives of Williams Performance Tender.
 They focus on satisfying demands of customers by providing them with quality products.
 Establishing new business in different parts of UK and England.
Strategies
Minimising their operational costs. They have expanded business operations online, in
order to increase the customer base. Organisation focuses on establishing good brand
image and reputation in front of public. Effective communication strategies will help
Williams Performance Tender to build up good relation between customers and them.
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Marketing
Williams Performance Tender will focus on implementing their strategies to satisfy the
desires of customers. Marketing plans will support to promote new products in market. Good
advertisement will benefit trade to capture new market. Dealings follow marketing strategy to
increase selling of their products. Marketing is an important function of business management.
Market analysis
This helps in analysing different dimensions of market. Williams Performance Tender
analyses global environment in order to identify strengths, weaknesses, opportunities and threats
(Haughton, 2015). Close examination of market situation help business to make important
decisions.
Competition
It is significant for organisation to analyse the level competition in market. There is
various manufacture, that produce similar products and services. Williams Performance Tender
implement strategies related to growth and development of product and market. Innovative
techniques will help buyers to differentiate merchandise.
Website and technology
In current market, situation technological advancement plays a major role. Organisation
operates business online, this will decrease the cost and maximise profitability. Technological
advancement helps to improve and modify existing products in order to satisfy demand of
customers. This has created positive impact at the workplace. Williams Performance Tender
provide online facility to customers. Ordering the product online will save time and cost.
Business earn huge amount of profits from their online stores.
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Funding and use
To grow and expand business, entrepreneur identify funds and resources available in
business. They critically analyse resources of organisation and utilise them effectively. Funding
is an activity, which provide financial resource like money and other valuable resources to
business. Funds can be generated from internal and external sources. Williams Performance
Tender draft plan to use funds in different situations. Cash flow statement represent the financial
position of the organisation. they can arrange funds from different types of sources like financial
institutions, equity (Hawkey, 2017). This help in dividing funds among different activities of
business like operating, financing and investing.
Given below is the part of cash flow, which shows division of funds of Williams
Performance Tender.
Contingency £2 billion
G & A £1.5 billion
Payroll £1 billion
Marketing and Strategic Alliances £3 billion
Total £7.5 billion
Revenue streams
Business requires a huge amount of revenue to grow and expand their operations.
Williams Performance Tender conduct perform different types of events like advertising, value
added services and product management. Organisation perform activities, which will generate
continuous revenue for a specific period of time. This provide an opportunity to firm for
increasing their profits, with the help of addition income. Accounting department measures and
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reports the revenue generated from business activities. The Top level management monitors the
process of generating revenue.
LO 4
P5 Assessing exit or succession options for a small business explaining the benefits and
drawbacks of each option
Businesses implement the succession planning in order to grow expand their professional
operations. They choose exit market after incurring losses. Exit plans are made, when an
entrepreneur wishes to close or exit the market. They can sell their business to individual or
organisation. Williams Performance Tender has made exist plans in order to leave current
market. There are different advantages and disadvantages of exist planning.
SELLING TO THIRD PARTNER
Critical evaluation of financial factors has helped the management to identify financial
position of business. Accounts department compare and measure financial records. Williams
Performance Tender is not able to meet cost of operations and they are facing continuous loss.
Business is not performing effectively and losing their brand image in market.
Management has decided to sell assets, raw materials and products to third person or
organisation. They will be legal contract between both parties regarding sell of business. Buying
individual prefer to carry out this process smoothly and quickly. Third party analyse all assets
and liabilities of the business (Lee and et. al., 2015). Agreement transfer ownership and
possession to the third party. Williams Performance Tender can sell bushiness to employees,
partners or any other person interested in business.
Purpose-
Businesses sell their assets and liabilities to individual or establishment that are ready to
purchase it. If an organisation is occurring losses from long duration, it is beneficial to close it.
Williams Performance Tender in incurring huge amount of loss because of not performing
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effectively. They are not utilising resources effectively, which has increased the operating cost of
business. Loss is a situation, where organisation is not able to meet the fixed cost of operations.
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Benefits-
Entrepreneur will be free from such business operations. Selling of existing business will
generate some amount of capital. They can use it as initial investment to start up new business.
They can merge with some big organisations in order to increase their efficiency level.
Drawbacks-
As business is operating loss, it is not necessary that owners of Williams Performance
Tender may get desired price. Third party can negotiate the amount of selling the business.
Sometime entrepreneur might have to accept price, which is below the cost of asset. It is very
difficult to find buyers to, sell a business running in loss.
WINDING UP
This is a legal system of shutting down a process which is followed by business. This
process involves selling out all assets and paying off to creditors. Winding up is refereed as a
situation of dissolution or ending of firm. Winding up is a mandatory situation and it is applied to
both public and private entity. All machinery and equipment of the business is sold to meet out
the current liabilities of organisation (Love and Roper, 2015). There is a remaining amount to be
distributed among the employees or partners of company. This process begun when business has
no longer desire pursue all its operations.
Purpose-
The main objective of winding up is to cease the legal existence of organisation. Business
stop its operation once it starts to incur continuous loss. Williams Performance Tender is going
to stop its performance because of inefficiency in business operation.
Benefits-
Business fulfils all legal obligations like paying of taxes and disposing off all assets.
Once all legal formalities are done, entrepreneur can easily wind up organisation.
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Drawbacks-
Winding up is a time consuming and complex process. This is legal process and all
activities are carried out in the court. It is very difficult to find potential lawyers to perform this
process. Partners of business become personally liable for the repayment of outstanding debts.
As in the case Williams Performance Tender directors are held liable for repayment of loans and
current accounts of employees (Scarborough, 2016). All assets are sold by an entrepreneur who
will have a minimum amount of capital to start new business.
CONCLUSION
This report concluded about factors that are significant for growth and development of
business. Williams Performance Tender identified the requirements of customers and
implemented various strategies. They made changes in existing policies in order to create new
segment of market for customers and along with, to identify new customers in the existing
market. Businesses are required to identify the current trends in market to satisfy the desires of
customers. Williams Performance Tender has implemented exit plan to leave the current market.
Technological advancement played a major role in growth and development of business, where it
followed a legal procedure of winding up, in which business sells out all assets and inventories to
meet up their liabilities and debt.
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REFERENCES
Books and Journals
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strategy and owner-manager characteristics. Journal of small business and enterprise
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Chapin, T.S., 2015. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning Association.
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Claessens, S., and et. al., 2014. Shadow banking: economics and policy (No. 12). International
Monetary Fund.
Cowling, M., Liu, W. and Ledger, A., 2016. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal. 30(7). pp.778-
800.
Esteban-Guitart, M. and Moll, L.C., 2014. Funds of identity: A new concept based on the funds
of knowledge approach. Culture & Psychology. 20(1). pp.31-48.
George, G., McGahan, A.M. and Prabhu, J., 2016. Innovation for inclusive growth: Towards a
theoretical framework and a research agenda. Journal of management studies. 49(4).
pp.661-683.
Haughton, G., 2015. Planning and growth. Changing Gear–Is localism the new regionalism,
pp.95-106.
Hawkey, J., 2017. Exit Strategy Planning: Grooming your business for sale or succession.
Routledge.
Kalra, M. N. and Gupta, S., 2014. Succession planning in smes: An empirical analysis.
International Journal of Research in Management and Social Science. 2(2). pp.124-166.
Lee, N and et. al., 2015. Access to finance for innovative SMEs since the financial crisis.
Research policy, 44(2), pp.370-380.
Love, J. H. and Roper, S., 2015. SME innovation, exporting and growth: A review of existing
evidence. International small business journal. 33(1). pp.28-48.
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Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
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