Strategic Thinking Report: Buttles' Plc Business Development Analysis

This report provides a strategic analysis of Buttles' Plc, a construction company, focusing on the application of strategic thinking to improve its market position and profitability. The introduction defines strategic thinking and its importance for business success, particularly in setting goals and identifying opportunities and risks. The main body of the report includes an overview of Buttles' Plc, its operations, and its competitive landscape. It then analyzes the company using Bowman's Strategy Clock framework, evaluating various strategic positions like low price, differentiation, and hybrid strategies to identify the most suitable approaches for Buttles' Plc. The analysis considers the company's existing strengths and weaknesses, as well as the competitive environment. Finally, the report offers specific recommendations for Buttles' Plc, emphasizing differentiation and focused differentiation strategies, especially in the Kentish Town market, to enhance customer satisfaction and gain a competitive advantage. The recommendations focus on product quality, delivery services, and competitive pricing strategies to improve business performance.

Strategic Thinking

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Overview of company............................................................................................................3
Framework Analysis...............................................................................................................3
Strategical analysis and recommendations to Buttles' Plc for moving business in a proper
direction..................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic thinking can be defined as an ability of a business to come up with effective plans
to meet organisational objectives successfully. This would help entrepreneurs to review policy
issues, set goals and determine priorities, perform long term planning as well as identify potential
risks and opportunities (Goldman and Scott, 2016). The present report is going to make a
discussion on some strategic thinking where a company can develop plans, to gain high
profitability. For this process, Buttles Plc is taken, which deals in construction sector. It is an
independent Timber and Builder’s Merchant that headquarteres in London in 1919.
MAIN BODY
Overview of company
Buttles Plc is one of the longest established company of London, which is known as best
timber and builders’ merchants. It has given employment to near about 70 employees who are
much skilled and experienced in respective field. It purchases materials from leading
manufacturing companies of UK at effective and competitive price and then provide the same to
end customers on right price. This company mainly recognised the opportunity to diversify its
business at intense marketplace (Shapira, Ketchie and Nehe, 2017). Through adding a full range
of building materials like blocks, bricks and underground drainage, including a fleet of crane-
offloading vehicles, it has become a successful timber as well as builder’s merchant. Its
customers mainly include local developers, national house builders, public sector organisation,

general contractors, national house builders and more. Offering products to these customer aid
respective merchandiser in getting profitability. But due to presence of many competitors
Kenham Builders, SRAYMAX London Ltd. and more, Buttles’ Plc is facing lots of issues in
generating revenues. Therefore, its managers are concerned to develop effective strategic plans
in order to get an edge over its competitors.
Framework Analysis
Strategic thinking refers to a set of processes that shows the manner in which business
persons can think about ways to gain assess as well as create future for getting sustainability in
business. In context with Buttles’ Plc., in order to identify a perfect marketplace or particular
product, strategic thinking is considered as an extremely valuable and effective tool. By applying
the same within business, it can arrive at decisions to accomplish business objectives in certain
period of time. For this purpose, it is essential for business developer of given company to
possess a set of critical skills. They need creative and high thinking to develop an action plan
with clear goals to meet requirement of business and more. With this assistance, managers have
adopted the concept of Two Dimensions of Bowman’s Strategy Clock.
This framework shows how an organisation can acquire a good position at marketplace by
developing innovation in its product and service, which is based on two dimensions. Here, on
one hand, this model concerns on price and on other hand, it emphasizes on perceived value as
well. Therefore, by looking at various combinations of these two dimensions, the Bowman
Strategy Clock provide eight possible strategies (Wolf and Floyd, 2017). All these strategies
mainly divide into four main quadrants, that are displayed in a clock, as shown in given figure.
These strategies offer the most competitive advantage, where a company can implement any
strategy among eight fundamental strategic positions. It includes low price and low added value;
low price; hybrid; differentiation; focused differentiation, risky high margins; mono-policy and
loss of market share. This would make business person able to better analyse the marketplace
and evaluate current strategy accordingly. Therefore, by concerning on these strategies and
evaluating the position of business in given marketplace, managers of Buttles’ Plc can make
changes in operational activities and improve its competitive position (Bowman’s Clock, 2018).
To develop strategic thinking and identify the product category where, developing strategies can
give opportunity to respective company in attaining a good position, managers need to concern
on following eight main strategies:-

 Position 1: Low price and low added value- This strategic position of Bowman’s model
emphasis more on volume of sales. Here, companies need to offer products on low price
or low valued model to get highest share in marketplace (Baumgartner and Rauter, 2017).
Therefore, organisations offering products or services on lowest price, gain chance for
getting the same. In context within cement construction sites, offering building materials
on such price often leads to perceived negative value of business by customers. As
products like building and sheet materials, landscaping, tools, fixing & iron monger,
kitchen and bathroom furnishing etc. could not offer on lowest price, because people will
make questions on durability and quality of such products. Therefore, Buttles’ Plc cannot
implement such strategy for position itself in intense marketplace.
 Position 2: Low price- Implementing this strategy, organisation can be positioned itself
as producer of large quantities and their products are more valued. But selling goods at a
low price, leads Buttles’ Plc to get low profit margins as well on individual products
(Pherson and Pherson, 2016). Since high volume of output may generate high
profitability but this position might regard as cheaper market leaders, because it focused
on cost minimisation, use economics of scale, cheap and fast production etc. As prices
are pushes down therefore, margins for Buttles’ Plc also become low, which may put
negative image for quality of its products.

(Bowman Clock Strategy, 2018)
 Position 3: Hybrid- A hybrid strategy of Bowman's model combines all certain aspects
of low price and product differentiation, that utilizes the strengths of both above
mentioned strategies for adding value of business for targeted customers. A hybrid model
attracts consumers by offering related products and services of business at a lower or
reasonable price rates, by creating differentiation in the same, which is difficult to
imitate by others. Therefore, implementing such strategy may prove beneficial for
Buttles' Plc to gain high performance. But as it is difficult sell its variety of concrete
products on lower price. Thus, in this regard, manager thinks to concern on another
strategies of same model.
 Position 4: Differentiation- The main goal here to execute such strategy in business is to
offer customers with maximum level of perceived value. For this purpose, company
needs to concern on product quality also, that plays an essential role in building the brand
image of business (Pattinson, 2016). In this context, top quality of concrete and other
building materials as well as deliverable service with loyalty and robust brand awareness,
Illustration 1: Bowman Clock Strategy

will probably best-placed to Buttle's Plc in competitive marketplace for attaining high
prices and added-value in business.
 Position 5: Focused differentiation- This targets to position of a company at the utmost
price levels of its products or services, where customers willing to purchase the same by
perceiving high value. In context with merchandisers that deals in timber and building
industry like Buttle's Plc, this positioning strategy is generally embraced by luxury
brands. Such organisations mainly target to attain best prices at competitive marketplace
by targeted segmentation and distribution. As products of respective company are highly
priced and its target customers are willing to purchase the same at any cost. Therefore,
implementing such strategy in successful manner, give opportunity to attain result in
utmost profit margins.
 Position 6: Increased price/ Standard Product- It is the most high-risk positioning
strategy, where a company can set high prices of its products, without adding extra efforts
in products to perceived value (Young, 2016). If targeted customers are willing to
purchase the commodities or services of an organisation at high prices, then it will gain
opportunity to such organisations to gain high return on investment. But due to intense
competition at concrete business, ultimately customers can discover a better-positioned
builder that offers its products having more perceived value at less price. Therefore,
being able to retail goods at a premium price without differentiation is hard to sell for
Buttles' Plc in competitive market.
 Position 7: Mono-policy or Higher price, lower value- This strategy proves effective
when there is less competition or presence of substitutes in marketplace. Along with this,
customer willing to purchase such product in monopoly situation or isolated market.
Therefore, it focuses more on needs rather than wants of people. In this regard, as there is
an intense competition at era where Buttles' Plc operates its branches like Kentish Town,
so implementing such strategies may put negatively on its profitability. As people have
many option to complete their needs on affordable price. Thus, respective company needs
to concern on other strategies of Buttles' Plc.
 Position 8: Low value/ Standard Price- It is also known as loss of market share
strategy whereby, a company concerns on taking an inferior goods and pricing it for
matching the value proposition of substitute products. Therefore, it may considers as

effective in such marketplace where trends changes in rapid manner. Along with this, it
also alienate the targeted customers also that results in loss market share as well. In this
regard, setting up a standard or lower price of a good with perceived value seems to be
implausible for Buttles' Plc to get an edge over competitors and win customer
satisfaction.
Strategical analysis and recommendations to Buttles' Plc for moving business in a proper
direction
Strategy mainly links the vision of a company with its reality that describes ways through
which it can accomplish the same. In context with Buttles' Plc, its main vision is “To increase
satisfaction of customers with landscaping range that creates beautiful and outdoor spaces”. The
main basis of strategic choice of Buttles’ Plc is mainly dependent on three main factors viz.-
Generic Strategy decision, Strategy Direction and Method of pursuing strategy (Goldman,
Schlumpf and Scott, 2017). Here, generic strategy decision shows the choice as the company can
positioned itself from competitors present at same marketplace. While, strategic direction reflects
alternative growth and direction i.e. choice of products or markets available to conduct a
business very well. While last aspect shows how they can pursue or execute such strategies to
gain competitive advantages. Therefore, using Bowman Strategy framework, managers can focus
on two main directions that are- differentiation and focused-differentiation. Both concepts help
in diversifying its business in competitive era (Barca, 2017). As this company operates its
business in six main branches within UK such as St Albans, Leighton Buzzard, Enfield,
Plumbers Plum Enfield, Kenish Town and Plumbers Plum Kentish Town. Therefore, to create
product differentiation it is recommended to its managers to concern on Plumbers Plum Kentish
Town, which is considered as one of the most famous place of London. This place is known for
its building site, innovative design and more. Henceforth, targeting customers of this area and
offer innovative products accordingly, will prove beneficial for Buttles’ Plc to position itself as
highest competitor in among other builders.
Differentiation can be defined as unique qualities of a product or service, perceived or
real and distinguished from others. Therefore, to make differentiation in own goods, Buttles’ Plc,
its managers should concern on how to get control or produce something that other builders do
not have, by designing a strong competitive strategy that exploit competitive advantage. For this
purpose, they have to identify what customer really wants to seek and they perceived value of

their business (Freedman, 2017). This would help in offering best quality of products
accordingly. In context with chosen market of Kentish Town, it has been evaluated that people
wants high quality product for constructing their homes or to make modifications. In this regard,
by delivering goods like bricks, block, aggregate, kitchen utilities and more for home furnishing
directly to end customers, will help in offer more attractive offers and gain their satisfaction,
because it will reduce extra charges for delivery. Along with this, supplying ready-mixed
concrete materials to end customers, is also one of the best strategy by which given company can
attain high satisfied customers.
Hereby, offering concrete products at competitive price helps in finding goods at best
rate, also give opportunity to Buttles’ Plc in gaining attention and retention of targeted audience
for longer period. because we always shop around to find you the best rate. Similarly, another
main strategy which is difficult for other builders to match are lifting service (Sadovnikova,
Pujari and Mikhailitchenko, 2016). As this company supply and package all its materials and
gods for loft conversion projects, which includes building and sheet materials, tiles, lead, timber,
flooring, plastic rainwater drainage, wallboard, insulation, roof windows and more, as well as lift
them into place through high-reaching cranes, consider as one of the best strategy. This would
help in delivering the loft materials straight within loft space or roof level scaffolding. But it
takes charges for this service because it is performed by specialist vehicles and drivers.
Therefore, negligible charges of such service that save time and money both, is also an extremely
cost-effective option which helps in creating differentiation from other builders present at same
marketplace.
Recommendations:
As both strategical options that are differentiation and focused-differentiation proves
beneficial for Buttles' Plc in attaining a good position at marketplace. But to gain sustainability
and high satisfaction of customers, it is recommended to this company to adopt the concept of
focused differentiation strategy. This would give opportunity to provide high perceived value of
its products or services benefits to targeted audience. For this purpose, its managers need to
concern for unique resources as well as core competencies, in order to adopt this strategy
(Moutinho and Vargas-Sanchez, 2018). Through creating difficulties of imitation like vehicle

tracking, loft lifter services and develop standard for safety, lawfulness, efficiency and
environmental protection, this company can also gain sustainability in business. For this
assistance, its managers are recommended to focus on identifying the gap analysis. This would
help in seeking out difference between actual position of business and where it wants to be.
Along with this, through gap analysis, they can also analyse where the product and market are
still rough, within same industry. Through this process, it proves beneficial in setting strategy to
develop market or adding more feature in existing services to enhance sales performance.
CONCLUSION
It has been comprehended from this project that in order to gain sustainability in
business, a company needs to develop better policies. By evaluating the competitors' strategies
and how they offer services at marketplace, organisations can generate more strategic options to
lead their businesses towards attainment of high growth. For this purpose, taking an appropriate
model, organisations can set price strategies and other services, as per requirement of business to
gain sustainability.

REFERENCES
Books and Journals
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management to develop a sustainable organization. Journal of Cleaner Production. 140.
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Young, L., 2016. Developing strategic thinking. Australian Army Journal. 13(2). p.5.
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Barca, M., 2017. Economic foundations of strategic management. Routledge.
Sadovnikova, A., Pujari, A. and Mikhailitchenko, A., 2016. Radical innovation in strategic
partnerships: A framework for analysis. Journal of Business Research. 69(5). pp.1829-
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Online
Bowman’s Clock. 2018. [Online] Available Through:
<https://thebusinessprofessor.com/knowledge-base/bowmans-clock/>.