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 profitable services, and effective communication, particularly within the context of Williams Performance Tenders. The report delves into Ansoff's growth vector matrix, a strategic planning tool used to determine market penetration, market development, product development, and diversification strategies. It also assesses various sources of funding available to businesses, including personal sources, bank overdrafts, external grants, and venture capital, outlining their advantages and disadvantages. Furthermore, the report covers the design of business plans, financial information, strategic objectives, and exit or succession options for small businesses. The report uses PESTAL analysis to assess the political, economic, social, technological, environmental, and legal factors affecting the business. This comprehensive analysis provides valuable insights into fostering business growth and development.

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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