5. (Ex 7) CEOs Strategic Plan Flashcards
When was CEO strategic plan made?
Oct 21 by CEO Felicity Darchon
When was the strategic plan announced?
2017
What did the strategic plan set out?
Company aspirations for KPI’s
- Annual growth in revenue by 4%
- Annual gross profit increase of at least £250k/yr
- Generating +ve net cash flow after all operating, investing and financing activities
How did WWL aim to achieve their strategic plan’?
- To innovate the products, processes and service offering
- Whilst maintaining our financial health, and addressing risks in the competitive environment
How has the economy impacted their strategic plan
In principle nothing has changed in terms of what WWL aim to achieve
But dramatic events of last 2 years have severely impacted the business
Has meant LT plans can sometimes be rendered meaningless
WWL has emerged from recent challenges more capable than ever, thanks to resilience of its people
What were the expectations for revenue 4 years ago?
Expectations were that the market demand would remain flat from 2017 - 2022
But due to emphasis on high-quality wool-tased carpets and mix of client type, WWL expected better-than-average growth of 4%
How has revenue growth compared to expectations?
4% revenue growth annually was more challenging than anticipated
Significantly below revenue growth aims in 2020 and 2021
What are the current indications about the market growth from 2022 to 2027?
2% growth per annum
Based on buoyant property market and favourable economic conditions (both of which are v difficult to predict)
How is WWL going to achieve their 2022 revenue goal?
Need best-case improvement in business env, with gains in business confidence and consumer confidence
This would translate into resurgent property market
But all relies on wider economic and political stability
Whilst a faster recovery scenario is plausible, also need to be prepared for a slower recovery scenario
What does WWL need to do going forwards to achieve LT objectives for revenue growth?
Need to ensure the business continues to be agile in a dynamic and competitive env
Need to create profitable, cash generating business
Need to recognise the importance of key stakeholders: employees, clients and suppliers
What is WWL’s strategy to achieve their 2022 revenue goal?
Continue to seek opportunities for growth
Ensure that processes are efficient and profitable
Must manage risks and put mitigation plans in place
What are their 4 innovation focuses?
Product innovation
Process innovation
Service innovation
Innovation in people
Describe how the company carries out product innovation
Continue to demonstrate innovative skills through ongoing new design work
Evidenced by award winning products and installations
PP carpets venture = further evidence of product innovation. Taken into new market segment
Continuing to explore innovative product development to stay ahead of rivals
What is WWL’s focus for process innovation?
Critical aspect of their competitive advantage and reputation = ability to fulfil orders on time
E.g. often purchasers have booked a fitter and may need to vacate their homes. So any delays are v frustrating
WWL have invested in sophisticated cutting and logistics process (carpet is manufactured, cut to size and stored in anticipation of set delivery date)
Offer high speed delivery, helps retain existing clients without having to compete aggressively on price and win new clients
Carpet manufacturing technology is evolving all the time, so needs constant investment to stay ahead of rivals
How was service innovation improved?
In 2019-2020, attempted to enhance loyalty of customers by solving their problems, so invested in warehousing and logistics infrastructure
Good move, as in 2021 expanded warehousing capacity and enabled WWL to store products for clients until they needed it
Clients benefit as holding less inventory, reduces with WC needs & frees up cash
By enhancing cutting technology, clients have less waste, improving their margins and so enhances client retention
