Planning for Growth: Williams Performance Tenders Analysis

This report provides a comprehensive analysis of growth strategies for Williams Performance Tenders, an SME operating in the boat and jet manufacturing industry. It begins by evaluating key considerations for growth opportunities, including the company's competitive advantages and the application of Porter's generic strategies to achieve cost leadership, differentiation leadership, differentiation focus, and cost focus. The report then utilizes PESTE analysis to assess external environmental factors influencing growth, such as political, environmental, technological, and economic factors. Furthermore, the report explores various sources of funds and their impact on the business, along with a proposed business plan and an evaluation of exiting options. The analysis incorporates frameworks like Ansoff's matrix to evaluate market penetration, market development, product development, and diversification strategies, ultimately aiming to provide recommendations for sustainable growth. The report highlights the importance of cost leadership and product/market development strategies for Williams Performance Tenders' future success.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysis of key consideration for evaluating growth opportunities for company......................1
Sources of funds and their impact on business...........................................................................6
Business plan.............................................................................................................................10
Exiting options..........................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Today, in the competitive market, each company need to prepare a plan for its future
growth. A plan for growth contains each area where a business can gain the opportunities for
growth. It also contains the strategies and tactics with the help of which a business can achieve
its organisational goals easily. Williams Performance Tenders is a small medium enterprise
(SME) which was founded in 1995. The company has 36 employees and works for tendering jets
and produces boats and supply them in all over the world. The study includes an evaluation of a
growth plan by using various analytical frameworks and gaining growth in the competitive
market. It also describes various sources from where company can grab funds along with the
recommendation as to recommend the best source of fund to be used by business. Further, the
study also shows a business plan for the purpose of providing considerable growth to the
organisation and a critical evaluation of the various options that can be adopted by company for
its success and a justification for the purpose of helping company in deciding the appropriate
action for its future growth is discussed in the report.
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MAIN BODY
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Report
To, Head of Strategic Planning Department
from, Junior Manager
subject: Report showing planning for growth
Analysis of key consideration for evaluating growth opportunities for company
Competitive advantages
The term competitive advantage can be defined as the ability of the company to earn
more profit from the market as compare to its competitors. Williams Performance Tenders have
capability of having a strong research team within the business. further, it also have a strong
marketing team which help it in effectively compete with its competitors. It need to gain the
competitive advantage for the purpose of attaining sustainable growth in the future (Kumar and
Pansari, 2016). In this regard, it has to develop various strategy which could help it in growing
smoothly in the market. Development of strong strategy for the business can be analyzed with
the help of Porter's generic strategy model as under:
Porter's generic strategy model
For the purpose of planning for the growth of business, porter's generic strategy model
can be applied by the company as it provides numerous strategies through which company can
grab numerous competitive advantages. These competitive advantages can helps the Williams
Performance Tenders in achieving its overall organisational goals in more effective way.
This model provides following 4 strategies which could help the business in gaining the
competitive advantages:
 Cost leadership: Strategy of cost leadership says that company should develop
strategies for becoming the lowest cost producer (Wang, 2015). Producing low cost
directly influences the profitability of the company. William Performance Tender should
develop strategy to control the wastage of cost of each stage of manufacturing process
and having the best control over it. It need to avoid the wastage of raw materials and
other resources used in the manufacturing process. It can develop the following strategy:
▪ Development of high level of productivity within organisation.
▪ Utilization of the highest capacity of all resources.
▪ Use the latest technology in the production process.
A better cost control strategy development in the company would lead in developing cost
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leadership within the organisation.
 Differentiation leadership: This strategy makes the company in developing plans for
the business as to develop some uniqueness in the business. William Performance
Tender should innovate some products to develop some uniqueness in them or should
develop some unique boats and jet as per the customer's preference. It would result in
attracting the buyers towards its boats and jets having unique quality which would lead
in generation of leadership quality of business within the competitive market.
In this regard, adoption of this strategy will enhance the strength of business in the
competitive market. It will help the company in having a considerable growth in market.
 Differentiation focus: Adoption of this strategy can help the William Performance
Tender in adding more values in the products of the company for its buyers. As per this
strategy, organisation should segment its customers and develop new boats and jets that
are completely different from its competitor's product. It would definitely result in
targeting large number of group of buyers.
Before adoption of this strategy, it need to ensure the relevance, wants and demands of
the customers and also analyse that no other competitor is meeting those needs (Panwar, 2016).
This strategy can also generate the capability of company to charge extra price for the products
and reducing its customer's bargain power as well.
 Cost focus: In this strategy company sells lower cost products to a segment of
customers after achieving cost leadership. Further, similar products are also supplied to
the other segment of customers at higher price who are able to higher price for the
product. This strategy helps in meeting the competition of market along with increasing
profitability.
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PESTE analysis
A company can also attain a sustainable growth from grabbing opportunities from its
external environmental factors. PESTE analysis can help the William Performance Tender to
analyse the external environmental opportunities as under:
 Political factors: For the purpose of garbing opportunity from the political factors,
country need to have political stability. In UK there is lack of stability in the
Government. Due to which rules and regulations in the country keeps changing. It
results in frequently changing the plans and strategies of the William Performance
Tender (Salavou, 2015). A frequent change in the policies effects the efficiency of the
business and reduced the chances of growth in the market. Although, if changes in the
rules of country are in favor of company, for example, reduction in tax rate, or price of
any raw material used by business for manufacturing boats and jet, etc.
Therefore, political environment of UK does not provide much competitive advantages for the
growth plan of William Performance Tender.
 Environmental factors: Environmental factors includes the weather, location and
places in the world in which the company sells its product. The weather of UK is
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Illustration 1: Porter's Generic Strategy Model
(Source: Porter's Generic Strategy Model – Studio, 2018)

favorable for the purpose of boating. Additionally, there are many locations in all over
the world, which are favorable for using boats and jets as well. William Performance
Tender can innovate its boats and jets as per the needs of customers in all over the
world. It may provide differentiation leadership to it and a huge competitive advantages
as well.
 Technological factors: In today's world, technology is the major factor which could
provide opportunity of rapid growth to a company. William Performance Tender should
make frequent research on the technical advancement in the country. Use of the latest
technology may reduce the production process and cost of the business. It may provide
the organisation a cost leadership.
Hence, with the help of using the latest technology, company may gain the competitive
advantage of attaining cost leadership and attain the growth in near future as well.
 Economic factors: Economical factor includes inflation rates, saving rates, spending
power of population, etc. these factors directly influences the sales of company. In UK,
inflation rates are not high and its population also have a great spending power.
Therefore, favorable condition of this factor may provide a huge growth to the company.
In this regard, economic factors can provide a huge competitive advantage to
company.
Justification
From the above analysis, it can be justifies that choosing cost leadership strategy would
be best for the William Performance Tender. It would enable the company in being cost
efficient which would enhance the capabilities of having effective utilization of its existing
resources. Further, it also does not need any extra effort of the company (Campbell, 2017).
Adoption of the latest technology, innovation of management process can help it in gaining cost
leadership.
Further, it will also help in selling jets and boats in the market at low price containing
same quality as compare to the competitors. It will provide a huge competitive advantage to it
and will definitely lead in achieving the set goals of firm and attaining a sustainable growth in
the near future.
Evaluation of opportunities for growth
For the purpose of attaining growth, it is most important for any company to grab
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opportunities of the competitive market. For the purpose of analysing opportunities of the
market, William Performance Tender can use Ansoff's matrix plan as under:
 Market penetration: Market penetration provides strategy to sell more products to the
existing customers. It contains the lowest risk. As per this strategy, William
Performance Tender should maintain its current market share. It will result in growth of
it in the future. Many opportunities will arise in the market through which company can
gain competitive advantage and opportunities of growth.
 Market development: It is the strategy which provides the ways to enter into new
markets. If company adopts this strategy, it will start selling its boats and jets in new
regions. It will result in entering into a new geographical areas for the purpose of
increasing the market share and the profitability.
 Product Development: Product development describes the way to sell new product to
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Illustration 2: Ansoff's Matrix
(source: Marketing Theories - The Ansoff Matrix,
2019)

existing customers. This strategy makes the company to innovate its existing products.
William Performance Tender can innovate its boats and jets as per the buyer's need
(Pulaj, Kume and Cipi, 2015). It would also result in selling an innovated products
which will reduce the bargain power of the customers. In this way, this strategy may
also help the company for attaining opportunities for the growth purpose.
 Diversification: Adoption of this strategy makes the company to enter into new market
with new innovated products. It is the most risky strategy of this model. If company
adopts this strategy, it will innovate its jets and boats and sell them into new market at
which it does not have its market share. This strategy may provide high gain to the
company, if the company innovates its boats after having a complete analysis of choice,
needs and demands of the population to which it wants to sell its product. On the other
hand, failure of this strategy may result in a huge loss to the company.
Therefore, it can be analysed that adoption of product development and market
development strategy can provide huge growth to the Williams Performance Tender. Innovation
of new boats and jets as per the needs of customers will enhance the uniqueness of the product
and attraction of more customers towards the company (Kuppuswamy and Bayus, 2018).
Further, entering into new market will also result in enhancement of opportunities of grabbing
market share and opportunities to customers as well.
Sources of funds and their impact on business
Sources of funds
For the purpose of planning for growth, it is most important task for Williams
Performance Tender to find out various sources from where, it can generate funds whenever
they need it. There are many sources through which company can generate funds. Although,
choosing the best source of funds may provide the company cost efficiency in the future.
Williams Performance Tender can lend money from various sources like:
Bank loan:
It is the most secure way to take funds on credit. Williams Performance Tender can
advance a lump sum amount for a both long term or short term. Banks takes some security
against the money advanced to the company.
Benefits:
 This source facilitates a huge amount of fund to the company for the growth
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purpose.
 It can be taken for either long term or short term, as per the need of company.
 Banks are the safest source of taking funds.
Drawbacks
 For the purpose of advancing money from bank, company need to have a
sufficient property which could be granted to bank as a security against the
advance.
 Company need top follow a lengthy procedure of bank before taking funds.
 Interest rates of bank loans are comparatively high.
Overdraft:
Overdraft is a facility of banks to its current bank account holders. With the help of this
source, bank account holder can withdraw cash from the bank above the current balance of the
account. Although, banks sets a limit upto which overdraft can be taken by the account holders
(Jones, 2018). As per the given case study, bank have provided the overdraft facility to take
overdraft upto £2.0 million.
Benefits:
 It is the simplest way to raise the fund for the growth purpose.
 Risk involved in this source is equivalent to nil.
 It also does not contain higher interest rates (Wei and Lin, 2016).
Drawbacks
 Williams Performance Tender can raise funds upto the limit provided by the
banks only.
 For enjoying overdraft facility from any bank, it is necessary to have a current
account in the specific bank.
 Overdraft is a short term source of finance. Therefore, it can not provide huge
funds to the company.
Crowdfunding:
Crowdfunding can be define as taking funds for a particular project from large number
of people. With the help of this source of fund, company can raise fund from modest
individuals on internet.
Benefits
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 This source of fund does not involve any additional fees.
 Raising funds form online source can also help the Williams Performance
Tender to do marketing about it.
 Company can also determine the consumer's attitude towards it.
 It does not need any lengthy procedure to raise funds.
Drawbacks
 To raise fund, from online source, company need to develop a growth plan
which have ability to attract the customers and on which they can rely.
 Each project can not get response of large number of investors.
 Further, in case company fails to raise funds, its market reputation may also fall
off.
Peer to pear lending:
It is another form of crowdfunding. In this source of finance, both borrowers and
investors meet on the online platform. Borrower raise funds from those investors who wants to
lend their money on an agreed rate.
Benefits:
 Raising funds from this source may provide cost efficiency to company.
 Company can be able to raise funds at lower rate of return.
 It can raise fund without taking a long time.
Drawbacks
 It involves a huge risk.
 Company may need to give higher rate of return to the investor, in case they
agree upon that term.
 No laws have been made to protect the interest of both party.
Angels:
Angles are those investors who invest in the small businesses. These investors are
wealthy people who have specialization in their own filed (Lampadarios, 2017). Along with
lending funds to the company, they also provide their experience and networks with the help of
which company can have a sustainable growth. Further, they may also ask for the supervision
power within the company in exchange of the money landed to it.
Benefits:
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