THE AUDITED SME
FISSA
The Consultant :
Audit date 15/09/2004
The audited Company :
Company : Sitting Pretty Ltd
Address : WC House, Flush Lane, Stoke on Trent, UK …..
Tel /Fax : +44
Website: sitting.pretty.com
e-mail (if applicable): spms@yahoo.co.uk
Turnover: 0.84 MEuro T1 (< 7 MEuro)
Employees: 9 S2 (1-9p)
S3 (10 to 49p)
T2 (7 to 40 MEuro)
T2 (> 40 MEuro)
S4 (50 to 249 p)
Main sector of activity
This family owned business began selling hand painted wooden toilet seats at festivals and summer shows in 1995. The company then began selling through mail order,
adverts were placed in furniture and Do-It-Yourself (DIY) magazines, local newspapers and then national newspapers. Demand for the products grew rapidly and the company
took the decision in 1998 begin manufacturing ABS resin novelty toilet seats. Training in the use of ABS resin and injection moulding was provided through regional
development grants with training taking place at RAPRA. Initially, manufacturing was undertaken using the facilities of a local injection moulding company. The plastic seats
proved to be very popular and in 2002 the company won a major contract with a major DIY chain to produce toilet seats for them. On the basis of this contract the company has
now invested in second hand injection moulding equipment of its own. The money for this equipment was obtained from an inheritance & re-mortgaging of domestic properties.
The Company has recently established a website to further support mail order business. The company continues to design and manufacture all its own products, including a
limited range of wooden seats. There is also a possibility that if the website venture takes they would need to increase their workforce, the most optimistic view that the demand
could double resulting in a 25% increase in the workforce.
1. Wooden Toilet seats: these are produced from a variety of woods including pine, oak, rose wood. All woods come from sustainable sources.
- Manufacturing Processes: The toilet seats are hand crafted and painted by craftsman
- Designs: Each design is unique; there are no standard patterns each is based upon customer requests.
2. Plastic Toilet Seats: Designed and manufactured in house using clear ABS (acrylonitrile-butadiene-styrene) resin
- About ABS: Acrylonitrile-butadiene-styrene (ABS) thermoplastic resin is widely recognised as the composite synthetic material that provides the optimum flexibility and
strength for a long-lasting toilet seat.
- Manufacturing Process: The exterior and interior structure of the seat is formed by simultaneous high-pressure injection of two different component materials. The interior
core of ABS resin results in greater strength and durability that that obtained using other systems. The seat’s microporous structure dampens impacts and avoids breakage.
The outer layer of ABS resin is an impermeable material, perfect for providing an impeccable and lasting finish.
- Designs: There is a standard list of designs (see catalogue) based on various humorous themes. The designs are down in house and are introduced into the ABS during the
injection process.
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- Source of the ABS: The inner and outer cores of ABS both come 100% recycled material
Share of ITC products / services in yearly turnover :
N/A %
Main national clients
Website 5% (300 units in 2003)
Mail order 30% (1800 per in 2003
DIY Shop 60% (3600 units in 2003
Fairs & Summer Shows 5% (300 units)
Main clients abroad
Approximately 10% (3.5% of all revenue) of the mail order business is from USA, Canada, Australia, Europe
Main national suppliers
Wood: Buys wood from renewable sources wholesale from local wood yard
ABS: recycled resin purchased from directly from Tartan Chemicals based in Scotland
Main suppliers abroad :
N/A
Other relevant national partnerships :
Abroad :
Conclusion of the Consultant :
2
AUDIT REPORT
FISSA
Resources
1. The technology
 Existence of a R&TD department in the company
3. The organisation and process
 Existence of Management tools
 % R&TD costs / Turnover (per year)
 Participation in National R&TD Programs
 Participation in European R&TD Programs
 Project Management Tool
 Yes  No
 Reporting tools
 Yes  No
 Quality procedures
If Yes, Which ones :
 Yes  No
2. Surveillance of the environment
 Information screening:
- Markets
- Competitors
- Technology
4. Future funding capabilities
 Yes  No
 Yes  No
 Yes  No
 Is the company globally healthy?
 Certainly  Probably
 Uncertainly
 Are internal funds available to support innovation ?
 Certainly  Probably
 Uncertainly
 Main existing technology cooperation
 Practice of foreign languages
If Yes, Which ones :
 Yes  No,
 Use of Internet
Company main Strengths





Company main weaknesses





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AUDIT REPORT
FISSA
Strategy


Tomorrow challenges (between 2-4 years)
R&TD resources
What will be your markets, allies or leverages ?
Which RTD resources will sustain the development
Main markets
Main alliances

internal

cooperative

collaborative

outsourced
AMBITIONS TO .......
Shareholders
 …
Customers
 ….
R and T teams
 ….
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AUDIT REPORT
FISSA
Short term achievements
OBJECTIVES TO ......
Shareholders
Clients
R and T teams
Opportunities
Threats
…
…
…
…
…
Company main Opportunities





Company main Threats





5
AUDIT REPORT:
FISSA
Company Profile :
Portfolio of Technologies/ TO
Technology field
Targeted type of partners
Application fields
Competence searched for
Targeted countries
Technology needs / demands / TR
Technology field
Targeted type of partners
Application fields
Competence searched for
Targeted countries
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Gold chrome toilet seat
Price : £130.00 (excluding VAT)
Glow in the dark with black base
Price : £130.00 (excluding VAT)
Barbed wire – clear
Price : £130.00 (excluding VAT)
Brass tacks – clear
Price : £130.00 (excluding VAT)
Royal Flush : New Product Line?
o Do you feel uncomfortable having to touch unsanitary toilet seats?
o Do you feel nervous touching public toilet seats, worried that you are picking up germs?
o Men, are you tired of being constantly reminded to put the seat down?
o Are you fed up with the complaints about a "messy" toilet?
o Well, there is finally a SOLUTION!
The "Royal Flush" is a state-of-the-art invention. It saves you from having to bend your back, and best
of all, it helps prevent germ transmission. It can be easily installed in 5 minutes on both round and
elongated toilets.
No-hand operations
o Children Safety Lock-- A Built-in Safety Lock for toilet seat and cover.
o
o
o
o
o
o
First foot step , seat goes up; second foot step
, seat comes down.
Saves your back - no bending!
Helps prevent germ transmission.
Lifts up both round and elongated toilet seat and cover.
Improved Design. ABS Plastics
Easily installs to existing toilets in 5 minutes. (necessary tools for assembly are included).
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SWOT ANALYSIS - UNDERSTANDING STRENGTHS, WEAKNESSES, OPPORTUNITIES AND
THREATS
by James Manktelow, editor of Mind Tools and an experienced business strategist.
Why use the tool?
SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining
the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework helps you
to focus your activities into areas where you are strong and where the greatest opportunities lie.
How to use tool:
To carry out a SWOT Analysis write down answers to the following questions. Where appropriate, use
similar questions:
Strengths
 What are your advantages?
 What do you do well?
 What relevant resources do you have?
 What do other people see as your strengths?
Consider this from your own point of view and from the point of view of the people you deal with. Don't
be modest. Be realistic. If you are having any difficulty with this, try writing down a list of your
characteristics. Some of these will hopefully be strengths. In looking at your strengths, think about them
in relation to your competitors - for example, if all your competitors provide high quality products, then a
high quality production process is not a strength in the market, it is a necessity.
Weaknesses
 What could you improve?
 What do you do badly?
 What should you avoid?
Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses
that you do not see? Are your competitors doing any better than you? It is best to be realistic now, and
face any unpleasant truths as soon as possible.
Opportunities
 Where are the good opportunities facing you?
 What are the interesting trends you are aware of?
Useful opportunities can come from such things as:
 Changes in technology and markets on both a broad and narrow scale
 Changes in government policy related to your field
 Changes in social patterns, population profiles, lifestyle changes, etc.
 Local Events
A useful approach to looking at opportunities is to look at your strengths and ask yourself whether these
open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could
open up opportunities by eliminating them.
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Threats
 What obstacles do you face?
 What is your competition doing?
 Are the required specifications for your job, products or services changing?
 Is changing technology threatening your position?
 Do you have bad debt or cash-flow problems?
 Could any of your weaknesses seriously threaten your business?
Carrying out this analysis will often be illuminating - both in terms of pointing out what needs to be
done, and in putting problems into perspective.
Example
A start-up small consultancy business might carry out the following SWOT analysis:
Strengths
 We are able to respond very quickly as we have no red tape, no need for higher management
approval, etc.
 We are able to give really good customer care, as the current small amount of work means we
have plenty of time to devote to customers
 Our lead consultant has strong reputation within the market
 We can change direction quickly if we find that our marketing is not working
 We have little overhead, so can offer good value to customers
Weaknesses
 Our company has no market presence or reputation
 We have a small staff with a shallow skills base in many areas
 We are vulnerable to vital staff being sick, leaving, etc.
 Our cash flow will be unreliable in the early stages
Opportunities:
 Our business sector is expanding, with many future opportunities for success
 Our local council wants to encourage local businesses with work where possible
 Our competitors may be slow to adopt new technologies
Threats
 Will developments in technology change this market beyond our ability to adapt?
 A small change in focus of a large competitor might wipe out any market position we achieve
Conclusions
The consultancy might therefore decide to specialize in rapid response, good value services to local
businesses. Marketing would be in selected local publications, to get the greatest possible market
presence for a set advertising budget. The consultancy should keep up-to-date with changes in
technology where possible.
Key points
SWOT analysis is a framework for analysing your strengths and weaknesses, and the opportunities and
threats you face. This will help you to focus on your strengths, minimise weaknesses, and take the
greatest possible advantage of opportunities available.
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