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The report will look into Willmott Dixon Group and its current business performance and its ability to meet the demands of the business environment over the next five years. The report will also highlight the various elements of the business environment.

Extracts from this document...

Introduction

Jabar Amjid N0138800 Organisation Management Contents Executive Summary........................................................................ Introduction.................................................................................... Present Industry Climate................................................................... Review of Business Environment......................................................... Willmott Dixon Group........................................................................ Business Streams............................................................................ Sectors.......................................................................................... Key Factors of the Company.............................................................. Business & Current Strategy's............................................................ Current Strategy.............................................................................. Analysis of the Sectors..................................................................... Balance Sheet................................................................................ Business Plan & Strategy for increasing Business.................................. Financial Implications of the suggested Strategy.................................... Conclusion..................................................................................... References..................................................................................... Biography....................................................................................... Appendix 0.1 Ratios.................................................................................. 1 PEST Analysis....................................................................... 2 SWOT Analysis...................................................................... 3 4 P's.................................................................................... 4 4 A's.................................................................................... 5 Porters Five Forces of Competitors............................................. 6 Anoff Matrix........................................................................... 7 Willmott Dixon Balance Sheet 2008/09 Executive Summary The report will look into Willmott Dixon Group and its current business performance and its ability to meet the demands of the business environment over the next five years. Construction output was cut by an estimated 13% in 2009. It was predicated total job losses between 2008 and 2010 are expected to reach 375, 000 by less than 100,000 by 2014. The Construction Skills Network report also warned of marginal output declines for this year, and predicted that consistent "slow and steady" recovery would not begin until 2011. Over the whole of the 2010 to 2014 period construction output is expected to average 1.7% growth each year. Willmott Dixon Group is one of the leading construction and related services companies in the UK. The company is involved in building and design, building maintenance, interiors, space solutions and property management. The Willmott Dixon group is privately owned construction and property development company responsible for a diverse range of projects in both private and public sectors. The strategy the group have adapted for the past few years was to focus more on public sector work as it was more of guarantee rather than private sector. This has worked for the group as they have grown dramatically in size and turnover has increased over the years which will help the group achieve a turnover of � 1 billion by the end of 2010. ...read more.

Middle

Liquidity Ratios Values Description Current Ratio 1.18 This ratio measures the ability of the business to meet its maturing obligations, but concentrates on balance sheet measures for example how many times can the firm can cover its maturing obligations (current liabilities) from its current asset base (cash and 'near cash' assets). Willmott Dixon can cover its current liabilities with its current assets, though the margin is not great. On the other hand, it is not investing too much in 'unproductive' current assets. Current Ratio Graphs- 1999 - 2008 Willmott Dixon Group BAM Nuttall (Competitor) Comparing Willmott Dixon's current ratio with Bam Nuttall UK contractor is weaker as Bam's is 1.35 and Willmotts is 1.18. This could be due to Bam having a lot more assets then Willmott Dixon. From looking at the graphs both companies ratios dropped in 2007 and then picked up 2008. Moreover, both graphs illustrate that over time the current ratios have grown. Debtor Ratio 24.84 (days) This shows how long, on average, the company takes to collect the debts owed to it by customers who have purchased their goods on credit. Willmott Dixon are doing quite well as there ratio is 24.84 days which is above industry average of 28 days. This is advantage for the company as they can use the money in other parts of the business or put it in the bank to build interest. Debtor Ratio Graphs- 1999 - 2008 Willmott Dixon Group BAM Nuttall (Competitor) The graphs highlight that Willmott Dixon have a better debtor ratio of 24.84 days compared to Bam having a 46.73 days. From looking at Willmott Dixon graph the figures illustrate that they are quite good in collecting debt back compared to there competitors. Creditor Ratio 64.42 (days) This shows that it takes Willmott Dixon an average of 64.42 days to pay of its debts. It is good that they keep this figure up as they can use the cash in areas were it is needed or keep it in the bank to build interest. ...read more.

Conclusion

The reason for this that the company know there market and products well so why not become the best at what they do. Market Penetration Market Development � Maintain or increase the market share of current products - this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling � Secure dominance of growth markets � Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors � Increase usage by existing customers - for example by introducing loyalty schemes A market penetration marketing strategy is very much about "business as usual". The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. There are many possible ways of approaching this strategy, including: � New geographical markets; for example exporting the product to a new country � New product dimensions or packaging: for example � New distribution channels � Different pricing policies to attract different customers or create new market segments Product Development Diversification Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. * Diversification is the name given to the growth strategy where a business markets new products in new markets. * This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. * For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. ?? ?? ?? ?? 1 ...read more.

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