Manufacturer of wooden and plastic moulded products to the healthcare and other sectors. Turnover £5.7m , Headcount 42

Business situation

This business had a stable performance for a number of years but wanted to boost growth and increase company value. Whilst relatively small, the business was complex in respect of the products it manufactured and the number and structure of the markets it served. The healthcare market was dominated by a few large players who were significant customers, but who also controlled the sales and distribution of the products to retail and end users, making significant margin. Furthermore, these customers would often copy products using their own sales data to understand which products were the most popular. Over the years the business had diversified into several other products and markets but none of these were successful enough, or of sufficient scale, to provide a central focus for the business. The business found itself trying to spread resources thinly across many fronts and growth in its core market was constrained by market structure.

Advisory appointment

The business wanted to develop a strategic business plan to provide direction, clarity and focus such that the business could boost sales and increase it’s overall value. A full review of the business’s position including customers, competitors, markets, internal capabilities and operational and financial performance, threats and risks was undertaken the with MD and executive leadership team. Strategic growth opportunities were explored, analysed and selected. A new strategy was developed around five key pillars or strategic themes. Some products adopted a niche strategy, with new channels to market and direct selling to consumers. Other product families were restructured, simplified and sold to customers in a more “transactional” way. For the broader range of products and markets the product structure was rationalised, and marketing became targeted on the best opportunities. Marketing and sales resources were boosted and there was an increased focus on people aspects of the business and product innovation.