Williams Performance Tenders: Growth Planning and Expansion Strategies

This report provides a comprehensive analysis of growth strategies for Williams Performance Tenders, a shipbuilding SME. It begins with an introduction to the company and its goals for expansion. The report then delves into key considerations for growth operations, including an analysis of internal and external factors using Porter's Generic Model and PESTEL analysis. It examines competitor analysis to identify competitive advantages. The report further explores the Ansoff Matrix as a strategic tool for planning growth, evaluating strategies such as market penetration, product development, market development, and diversification. The assignment includes discussion on sources of funds, business plan for future expansion, and exit or succession options for the company. The report concludes with a summary of findings and recommendations for Williams Performance Tenders' future growth and success.

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
ACTIVITY 1 ..................................................................................................................................3
Key consideration for growth operation.....................................................................................3
Ansoff Matrix.............................................................................................................................6
ACTIVITY 2....................................................................................................................................8
Sources of funds..........................................................................................................................8
ACTIVITY 3 ...................................................................................................................................9
Business plan for future expansion ............................................................................................9
ACTIVITY 4..................................................................................................................................12
Exit or succession options ........................................................................................................12
CONCLUSION .............................................................................................................................14
REFERENCES................................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
It is the aim of every organisation irrespective of its size or kind to achieve the maximum
level of growth and expansion. Planing for growth is basically done to enable the business to
plan for future development and bring it on path of success and growth both in terms of size and
revenue (Growth Strategies in Business, 2019). It helps in proper utilisation of resources of
organisation to achieve the desired goals and also to become better and superior than competitors
existing in the market. This report focus on the planing for growth of Williams Performance
Tenders. It is a SME,engaged in shipbuilding and headquartered in Berinsfield, United Kingdom.
It was founded by two brothers, Mathew and John Hornsby and it was named as Williams
Marine in 1995. Later on, it was joined by a new partner Roy Parker in 2004 and the name also
get changed as Williams Performance Tenders(Albert, 2017). This assignment includes key
considerations for growth options and also provides the information about different sources of
funds and their impact on an organisation. It also includes a business plan and exiting strategy
that can be adopted by an organisation.
ACTIVITY 1
Key consideration for growth operation
Proper planning is must for expansion and growth of organisation. Planing is needed to
analysis the strengths and weakness of an organisation as well as to understand the marketing
strategies and plans of competitors that helps in getting more competitive advantages. Proper
planing also help in grabbing new opportunities prevailing in the market and ensure future
growth and expansion. Williams Performance Tenders is also planing for growth. They are
planning for massive expansion of their business, therefore they need to conduct a proper
strategic planing. This provides a systematic process to determine the vision for future and also
helps in identifying best suited objective and plans(Angotti, 2018). This also provide a sequence
of activities to achieve the desired goals and reach the set targets of expansion. Strategic planing
includes proper analysis of internal and external factors of an organisation through Porter
Generic Model and PESTLE Analysis. It also includes analysis of competitors to remain ahead
of them.
Porter Generic Model

This model is provided by Michael porter to determine and decide the direction and
strategy for an organisation. According to this a company must have clear vision and objectives
to become able to beat or defeat the competition prevailing in the market. Michael has mentioned
the four strategies that helps in maintaining better or superior position in market as compared to
other competitors. It provide a great help in conquering or overcoming competition. The
strategies provided by this models are as follows:
Cost Leadership: For attaining cost leadership efforts are made to manipulate or reduce
the cost to get a competitive privilege in the market. This can be possible either by decreasing
cost of production to earn more profit or by charging comparatively less prices from customers
to increase the share of target market. The basis aim of both is to keep the cost of product as low
as possible to attract more customers and thus ultimately increasing the profit. If Williams
Performance Tenders try to achieve cost leadership they have to reduce the cost of
manufacturing of ship which may result in quality degradation, thus not a good option as it might
not liked by customers(Birkin, Clarke and Clarke, 2017).
Differentiation: The main aim of this process is providing something different and
exclusive product to its customers. Therefore the main focus is on product and to make it more
attractive, unique and superior than current existing product. This can be possible by adding new
features product or by changing its size, look or colour. This strategy seems to be most suitable
for Williams performance tenders as it will attract more customers and help in increasing its
profitability.
Cost Focus: For this organisation aim at charging the lowest price from customers or
target market to get their attention. To achieve this organisation make efforts to analysis what
target customers actually wants and try to satisfy that need with minimum possible resources.
This is not suitable for Williams performance tenders as it focus only on a small market, thus not
much suitable for expansion.
Differentiation Focus : This strategy focuses on providing most exclusive and unique
products to target or niche market. It aim at providing most unique features in a product to
establish a brand name or to earn the loyalty of customers in target market(Bongaarts, 2016).
This strategy is not good for Williams performance tenders as it focus only on niche market
thus, it restricted the scope of expansion.

As per the above discussions, this can be concluded that for Williams Performance
Tenders, product differentiation is the best strategy to achieve the maximum level of profitability
and future expansion. They are currently dealing in ships or jet manufacturing so there are
having a great scope to introduce some innovative features and advance technology to make
their jets or ship more comfortable and convenient for customers. But this also having a risk as it
might be possible that changes made in the product may not liked or appreciated by customers
and hence can lead to huge losses for the company.
External analysis
For achieving its targets and goals of expansion a company also have to focus on external
factors of market. Analysis of external factors can be easily done through PESTEL analysis as it
provide all relevant information about different factors of external environment in which an
organisation works. Different macro -elements of environment included in PESTEL model are:
Political: This factor refers to the attitudes of political persons and parties and level of
stability in political environment(Branch, 2018). Political factors may have positive or negative
impact on business as it represents both influences or restrictions and also provide opportunities.
The political environment of UK is quite stable hence providing more opportunities to Williams
performance tenders to prosper and grow.
Economic: Economic factors include rate of inflation, deflation, purchasing power of
customers, prevailing prices, etc. the economic conditions of UK are quite well and thus it is
having a positive impact on growth of Williams performance tenders. The purchasing power of
people of UK is high so that they can afford buying a luxurious jet or ship.
Social : These factors mainly focuses on belief, local culture, faith, buying habits and
taste and preferences of customers and people. The people of UK are quite modern and advance,
and hence aim at buying quality product with new and updated features. This also lead a positive
impact on growth of Williams Performance Tenders as they are providing good quality boat or
jet with up to date features.
Technological: These factors are related with technological changes which have a great
impact on every organisation(Bridge and Dodds, 2018). Being a manufacturing company it is
necessary for Williams Performance Tenders to remain up to date about the changes taking place
in field of technology.

Environmental: These are the factors showing the effect of business activities on
physical environment. It is mainly concerned with the damage a business is causing to
environment through emission of harmful substances or gases or in any other way. Williams
Performance Tenders keep a proper check that their activities should not harm the environment
and always try to minimize the damage caused to environment. They always focus on sustainable
development ,which helps in creating a good image in minds of customers.
Legal : Legal factors are related with the compliance of legal laws and regulation. It is
must for every organisation to follow the legal rules and regulations. Legal laws of UK are
slightly strict crating a little issue for expansion for Williams Performance Tenders, but know
they are having all required permissions to plan its future expansion(Channon and Jalland, 2016).
Competitors analysis
The main reason behind the competitors analysis is to know more about the current
competitors and make an understanding about strengths and weakness of competitors working in
the same market. This help in getting a good position in the market and also keep the
organisation ahead from competitors. After analysis of competitors, it become easy to use all the
available resources in the best possible way to defeat them. The main areas where a organisation
can focus to have competitive advantage over its rival are:
Resources : It includes all the assets that a company is having like its employees,
machinery, etc. An efficient and proper use of resources can helps an organisation to achieve all
its target. Williams Performance tenders is making best use of its available resources to achieve
its target of future growth and expansions.
Capabilities : It includes the strength and opportunities of an organisation over its
competitors. The bets quality and luxurious product provided by Williams Performance Tenders
is its capability providing it a good position in the market and attracting more customers for
them(Colantoni and et.al., 2016).
Ansoff Matrix
It is an significant marketing tool that is utilised by organisation in order to analyse and
plan strategies for growth and development. It is invented mathematician H. Igor Ansoff. It also
determines various risks associated with each strategy. Williams Performance Tender can use
Ansoff model for utilising strategies and implementing them for further growth of an

organisation. It will also help this organisation in finding out what risks it can bear while using
such strategies. The four strategies of Ansoff Matrix are as follows-
Market Penetration- This strategy refers to increasing sales of an organisation in
existing market and with present products. It can be done in different ways like lowering price of
products, increase various techniques of promotion, putting more efforts in distribution system,
and so on. In this strategy, neither a new product is introduced nor there is market expansion.
Williams organisation can adopt market penetration by lowering prices of its existing products or
by investing and using effective promotional strategy(Dierwechter, 2017). This will result in
increasing sales and maximising profits.
Product Development- This strategy means developing product or creating something
new for an organisation. This can be done in two ways, firstly by introducing latest product in
market and secondary by innovating existing products. The basic aim of developing a product is
that it increases market share and it aids in meeting competition. For development of new
product, Williams Performance Tender can take the help of research and development
department or it can simply acquire latest product existing in market and alter it by adding some
new features. This organisation is planning to launch a new product which is a new jet to meet
customers requirement.
Market Development- It means that a company enter into a new market with existing
products available. In this, market is new but products are old. It can be done by various ways
like geographic, regional or customer segmentation. This organisation can use this strategy in
order to enter into a new market(Gallent and Tewdwr-Jones, 2018). The basic way of entering
into new market is entering into global market. Williams Performance Tender can expand its
business internationally in order to attain large share of market.
Diversification- This means entering into a new market with new products. In this, the
product is also new and market is also new which makes it the riskiest strategy among all
strategies of Ansoff model. Basically it is a combination of market development and product
development. This organisation can use this approach by launching latest product in a new
market.
From the above explanation, it is concluded that the most beneficial strategy which
Williams Performance Tender can adopt is Product Development approach. It will increase its
sales which will result in increase in profits. Moreover, the company is planning to launch a new

product to meet customers expectations by providing more comfort and reach to innovative
techniques.
ACTIVITY 2
Sources of funds
Finance is the backbone of every organisation without which it can not run its business.
Sources of fund basically denotes the places or people from where an organisation can fulfil its
financial needs to run the business properly. An organisation should always focus an creating a
balance between equity and debt while deciding about sources of funds. The different sources of
finance available for Williams Performance Tenders are discussed below with their advantage
and disadvantage:
Retained or personal earnings: Personal savings or borrowings from close family
members or retained or old profits of organisation is the cheapest and most easiest way of
financing a business plan(Horowitz, 2017). Williams Performance Tenders can make use of its
retained earnings or profits earned from past business activities for its future expansion, as it
does not require any extra efforts for getting finance.
Advantages : It is the most cheapest way and does not needed to put any assets of company as
security and also avoid interferences from any third party.
Disadvantages : The amount of retained earnings is mainly not sufficient to meet the business
objectives and also risk of failure is completely born by organisation alone as no one is their to
share the loss.
Bank Overdraft : It is the amount that a customer or business organisation can overdraw
from its current account. It is mainly useful to full fill short term finance needs. At present this is
the best suitable source for Williams Performance tenders as they are having a facility of bank
overdraft with their bank and they still did not make use of that facility so it will be easy for them
to use overdraft facility up to the prescribed limit.
Advantages : It is the easiest way to get finance for a short period of time as no extra formalities
are needed and it is provided at minimum charges up to short term as per the facility provided
and as per terms and conditions of bank(Kemp, 2018).

Disadvantage : If overdraft balance is not meet on time, interest charged on remaining balance is
quite high and also the organisations are not allowed to exceed their overdraft limit and it is also
a signal that business is losing its control on finance.
Business angels : They are also know as angel investors. They are basically the rich
investors wishing to invest in business for earning high returns on their share. Williams
Performance tenders is having a good business image thus it can easily arrange investors for
financing its business expansion.
Advantages : The business angels mostly having a good knowledge about business and market
thus they can provide good suggestion for making good decisions that can help in achieving the
target.
Disadvantages : It is not always easy to find sufficient amount of investors and extra interference
of business angels can be some time hazardous for business.
Bank loan: To get loan from bank is good option for financing a business. Loan is
basically a sum of amount or money taken as borrowings from a bank for a definite period of
time on pre decided interest rate(Kouba, 2017). The amount of loan and other criteria depend on
the the size and operation of business. This can be good option for Williams Performance tenders
to get a loan from bank. The advantages and disadvantages of this options are:
Advantages : The biggest benefit of bank loan is that they are most reliable source as terms are
pre decided in written form and it also not require giving a part of business to someone else.
Disadvantages : Mostly loans are not flexible as conditions are pre decided and they are also
secured and business security.
From the above discussion,it can be evaluated that bank overdraft and loans are most
suitable for Williams Performance tenders to finance its expansion process and to develop a new
innovative product as huge amount of money is needed for that and the banks are the most
reliable financial organisation for that financing purpose and also provide loans on nominal
interest rate.
ACTIVITY 3
Business plan for future expansion
Business plan is mainly the strategies in written description form stating about the future
goals and objective of organisation. It also provides the way that how objectives and goals can be

achieved in best possible way(Krueckeberg, 2018). Williams Performance tenders is planing for
massive business expansion. For that purpose they are adopting the strategy of product
development, by offering a new unique and luxurious Jet to its customers. The ultimate objective
of expansion it to increase the sales and earn more profit.
Overview
Williams Performance Tenders is basically a SME dealing in manufacturing of boats and
yachts. It is currently employing near about 36 employees. It is providing best
quality and luxurious jet and yachts with proper safety measure and equipments to
its customer(Kumar, 2016.). It also focused on giving some additional features and
uniqueness in its product to give more comfort and convenience to its customers.
Mission
The mission of Williams Performance Tenders is ,“ To ensure future success
and expansion of business”. For this purpose they are aiming at providing best
product with more unique features and innovative idea, help full in attracting more
customers that will ultimately increase its market share through increase in sales.
This also confirms future growth and profitability.
Vision
The vision of organisation is,“ To become to leading shipbuilding or jet
manufacturing company of UK”. To achieve this Williams Performance Tenders is
providing maximum customer satisfaction through most comfortable and luxurious
products and offerings. They also focus on the safety of customers by providing all
safety measures in yachts and jet.
Objectives
objectives are the pre decided goals and targets that an organisation wants to
achieve in specific period of time. The main aim of Williams Performance Tenders
is achieving maximum level of expansion for that following objectives are set by
them:
1. To increase the number of customers by approximately 20 % in coming 1
year.
2. To make a overall increase in sales of organisation by 15% in coming 8
months.

3. To make a increase in growth rate by achieving 10% rise in profitability of
company in almost 1 year.
Methods used for financing of project
Finance is the most important factor for any business plan, because to
conduct or to perform any activity money is needed( Lambert and Oatley, 2017).
Williams Performance Tenders
wants to expand its business and planing for launching a new luxurious product, hence required a
large amount of money. This need cannot be fulfilled with retaining earnings or personal savings.
Therefore it has to take help of some eternal sources like business investors, bank loans and
overdrafts, etc. Image of this organisation is good so it can attract investors to finance its project
but it might be possible that it has to face interference of these investors in taking business
decisions, that might create issue in future(Mazza, 2017). Therefore the best options for
financing is bank loan or availing the facility of bank overdraft. Banks are more reliable as
compared to other financial institutions and also provide loans Advantages And Disadvantages
Of Mergers And Acquisitions. 2019.at low interest rates and also for long period of time. This
helps in reducing the cost of financing, thus increasing the profits for organisation and helps in
achieving the objectives in specific time period.
Sales strategy
Sales strategy is made to achieve the desired level of sales i.e. for increasing the sales
volume. This can be done through advertising and promotion of product or through creating a
good brand image of organisation. For increasing its sales volume Williams Performance
Tenders is aim at fulling all need and desire of customer through delivering a best quality
product. They are making sufficient use of promotion and advertising to highlight the new
features and advantages of its product and organisation(Rigas and Nawar, 2016)
Budget and financial analysis
Budget is a written document providing an estimation about revenue and expenses for a
specific (mainly 1 year) period of time. Williams Performance Tenders is launching a new
luxurious jet, for that purpose a estimated or forecasted budget is prepared as follows.

Total forecasted budget
Particular 31/12/19 (£)
Manufacturing cost 900000
Promotional expense 500000
Advertisement expense 300000
Cost of adopting new
technology
1000000
Catalogues 300000
Total Cost 3000000
Estimated need of finance is £3.0 million. So it has planned to use £1.0 million from
retained earnings and arranging £2.0 million from bank loan and overdraft.
Allocation of Resources:
For timely achievement of organisational objectives, it is necessary to properly allocate
the resources of organisation between different departments and for different jobs as per the
requirement. To achieve desired level of growth and expansion proper co ordination of human,
technical, physical and financial resources are required(Tian and Li,2017 ). It is also necessary
that workforce must perform its task in most efficient and effective way.
Implementation and controlling of Plan:
For positiver results proper implantation of plan is must. And only implementation is not
sufficient timely performance check i.e. controlling of plan is also necessary. This help is
ensuring that whether work is going s per plan or not and also provide sufficient time for taking
corrective action if required.
ACTIVITY 4
Exit or succession options
Every business organisation wants to run its business for a long time, but some time due
to some negative results or other issues business needed to plan for its exit or succession.

Reasons for business failure can be like inadequate planing or not able to meet the customers
desires, insufficient profits, high cost of operations, etc. Not having an effective succession plan
can also lead to failure of organisation(Walker, 2017).
Succession options
Mergers and acquisitions: To get optimum market share and growth organisation plans
for merger and acquisitions. The main of this is to get a bigger market share and increase in
productivity(Advantages And Disadvantages Of Mergers And Acquisitions, 2019.). It also
provide more financial strength to get stronger and superior than competitors.
Advantages
It provide more control over market and helps in getting strengths of other organisation in form
of more efficiency and profitably. It also reduces the risk of failure and provide more financial
base for expansion.
Disadvantages
This can increase internal competition between the employees of two organisation may lead to
conflicts and confusion. Thus can have a negative impact on productivity and profitability.
Strategic Alliance : It refers to establishing a business relationship between two or more
entity to achieve their business objective more efficiently. Both the entities maintain their
independent status and only made their part of contribution in alliance for mutual benefits.
Advantages
It provides many organisational, economical and strategic advantage. As it helps in reducing risk
of failure by distributing it between members of alliance provide accessibility to more skilled
employees and better techniques without losing its own identity(Ward,2016).
Disadvantage
It can create a felling or sense of dependency in mind of employees which can hamper their
performance. This can also lead to access of alliance member to highly confidential information
of an organisation which can be misused.
Exit options
Sometime it becomes difficult to run a business in practical business environment might
be due to market uncertainty, boredom with activity, financial uncertainty, regular losses, etc. at
that owner is left with selecting a best exit options that can give it best price and profit for that
business(Wynn, 2017).

Liquidation: It is a legal process in which all the assets of an organisation are sold to pay
back the creditors and if amount left than to amount is also paid to shareholders.
Advantages
It is the simplest way to exit a business and as legal authority are involved so chances of disputes
are also reduced.
Disadvantages
The first right on amount earned by selling the assets is given to creditors and hence reducing the
return on investment for owner(Birkin Clarke and Clarke, 2017).
Selling of business in open market: It is most popular exit strategy. When an owner
finds that now it is not possible to control or run the business and time for retirement has came,
then the business owner puts it for sale at a certain fixed price(Angotti,2018).
Advantages
It is more profitable for owner as value of assets and goodwill can be easily negotiable at the
time of sale, providing more returns on investment.
Disadvantages
It is difficult to fix or calculate the selling price for an business which might be result in losses if
not calculated properly.
CONCLUSION
From the above assignment, it has been concluded that planning for growth options for
the organisation is important as it provides the organisation with the way of developing and
expanding their business. It is necessary for all business even for SME to conduct proper planing
before going for expansion of business. In addition to this, it is also concluded that this helps in
reducing the chances of failure and also helps in effective achievement of goals and objective.
Form this assignment need and importance of Porters generic model, PESTAL model and Ansoff
model can be understood that how these model provides a effective analysis of different internal
and external factors, necessary for expansion of an organisation. Lastly, the conclusion has been
made that how business plan is effective in achieving an organisational goals. This also provide a
understanding about different exit and succession options.

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