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WWL: A CEO's Strategic Plan' blog post Felicity Darchon (CEO) Oct…
WWL: A CEO's Strategic Plan' blog post
Felicity Darchon (CEO) Oct 2021
5 Year Strategic Plan: announced in 2017 -
KPIs:
:check: Annual revenue growth
4%
:check: Annual gross profit increase
£250k
- :star: linked to the staff bonus threshold
:check:
Positive
net cashflow
Revenue road map :checkered_flag:
Previously (2017):
Had expected above-average growth of 4% 2017-22.
Origional revenue target for 2022 was
£20.5mil
Very unlikely to be hit
Possibly consider re-evaluating the 2022 target to more realistic target
Current market indications:
Average market growth 2022 - 27:
2%
(but hard to predict - property market / economic conditions)
Strategic revenue gap:
Emerged over the last couple of years
Very ambitous to expect gap to close for 2022 goal
Must be prepared for a slower recovery
Looking ahead:
Business agility
Competitive environment
Long-term objective: "create a profitable cash-generating business"
Still recognise the importance of key stakeholders :silhouettes:
Employees
Clients
Suppliers
Innovation - the plan to achieve the KPIs :tada:
Product:
Innovation seen in on-going design work
Evidenced in award-winning products and installations
Diversification into PP carpet
Process:
Competitve advantage - ability to fulfil orders on time
WWL invested in cutting process where carpet is cut to size & stored ahead of fitting for scheduled delivery date
High delivery speed
High client retention without needing to compete agressively on price & win new clients
Tech developments - an area WWL needs to stay ahead in to keep compeitive advantage
Therefore must continue to invest in
Service
Expanded warehouse 2019/20 -enable WWL to store products for clients until needed.
Service for retailers - benefit by holding less inventory themselves
Cutting technology reduces waste for clients therefore retailers can protect their own margins
People
Focus on retaining and developing people
Staff CPT and bonus schemes - incentives and rewards for high performance and skill across the company
In house design team - highly skilled team
Marketing - can be learned as part of CPT
:warning: Risk Management:
Key risks facing WWL now
1. Cyclical Business
High correlation between fortunes of WWL's sector and underlying business cycles.
2. Economic Uncertainty
buyers seeking mid-priced carpets trading down to more affordable floor covering due to econ uncertainty
3. Client concentration
WWL increasingly reliant on bespoke work
4. Competitors
powerful UK rivals
low priced overseas imports
well-resourced innovative new entrants
5. Suppliers
WWL is reliant on a single wool-based yarn supplier & single distributor
6. Seasonality
:
Seasonal business & manufacturing capacity constraints requires WWL to build inventory ahead of demand
7. Sustainability
:recycle:
traditional carpet manufacture is a fundamental challenge to environmental sustainability - trad carpets are made to be durable.
This may impact WWL's business sustainability
:lock: Mitigation
Sound financial planning
Diversity of clients
Innovation in product design & dev
Low operating gearing
Diversity of clients
Innovation in product design and development
Diversity of clients
Innovation - product design
Diversity of clients
Active supplier management
Sound financial planning
Diversity of clients
Low operating gearing
Innovation in product design and development
Sound financial planning
Communication strategy
Clear environmental policies
Sustainable business model