Business Analysis

It may sound obvious but in order to plan for the future a business needs a very clear understanding of where it currently stands.

Many businesses do have clear and accurate knowledge of their current position but many more do not. It is easy for an established business to have a perception of their situation based on how things used to be or how things have always been. However, situations within the business, markets and customers are continually evolving so perceptions can soon become out-dated and inaccurate.

AMS will work with business owners and management on a detailed business analysis that will create a sound basis for the strategic planning process.

This would typically involve an in-depth analysis of revenue and margin (£ & %) by;

• Product Groups / Type
• Product
• Market / Sales Channel
• Customer

Trends within each would also be assessed to clarify any seasonality issues and future opportunities and threats.

The analysis would look at both the direct and indirect costs associated within each of the above to identify the short and longer term issues that need addressing.

In addition, it is important to prepare a detailed competitor analysis comparing products, pricing and market coverage with your own offering. This would be used alongside your own buiness analysis to assess your relative strengths and weaknesses versus your competition.

Example of what a business analysis can reveal.

A Midland manufacturer were selling huge numbers of a product in 5 colours to a major UK retail chain for many years. The business analysis proved that 2 of the colours were very low volume and could be dropped, the direct profit margin was almost zero and the addition of in-direct costs showed this section of the business was making a loss. Equally importantly, the perception that this was the star customer meant that they got good customer service while other profitable customers received very poor service levels as a result.

A price increase was agreed with the customer, the number of colours supplied was reduced by 2 (40%) and the level of overall customer service was improved significantly.

Business owners and managers can now focus on the key areas of targeted development by product type, product, market / sales channel and customer. They can also address issues that are identified as being a distraction to this focus and reduce the complexity within the business,

The in-depth business analysis is used as the basis of the strategic planning process.

                  Analyse – Focus - Plan