Redhawks Consulting
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Transcript of Redhawks Consulting
Redhawks Consulting
Goodwill Industries of Greater Grand Rapids, Inc
Mission: “Changing lives and communities through the power of work.”
Key Concern
• To determine how Goodwill Industries of Greater Grand Rapids, Inc. shall move forward with used book sales
Strategic Planning Goals• Mission & Vision Statements• Goal 1:
– People-Centric Services that build Self-Sufficiency• Goal 2:
– Best workforce to achieve the mission• Goal 3:
– Financial Resources to sustain Goodwill• Goal 4:
– Effective Business Structure• Goal 5:
– Mission is understood and supported by community
Outline• Key Concern• Strategic Planning Goals• Market Analysis• Decision Gate Approach• Alternatives• Recommendations• Implementation• Contingency• Budget• Summary
PESTEL AnalysisPolitical • Constitution-based federal republic
• Strong democratic tradition• Political parties• No political pressure
Economic • GDP per capita: $45,800• Growth rate: 2.2%• Inflation: 2.9%
Social • Population: 303,824,646 people• Literacy: 99%• Language: English 82.1%, Spanish 10.7%, other 6.5%• Religion: Protestant 51.3%, Roman Catholic 23.9%, Mormon 1.7%, Other Christian 1.6%, Jewish 1.7%, Buddhist .7%, Muslim .6%, others or unaffiliated 18.5%
Technological • Phones: 172 million• Cell phones: 233 million• Radio: 575 million• Television: 219 million• Internet: 208 million
Ecological • Climate: Mostly temperate; Cold winters, Warm summers in Midwest• Current issues: air pollution, water pollution, limited fresh water resources in west, CO2 from burning fossil fuel, desertification• Natural hazards: Midwest specific: tornadoes• Natural resources: coal, copper, lead, etc.
Legal • Federal court system based on English Common Law• Each state has their own unique legal system• Local areas (cities and counties) have their own laws as well
SWOT AnalysisStrengths• Collects goods that may otherwise be thrown away• Sells products at a discounted price, great for college students• Gives back to the community• Provides many services• Goods are competitively priced
Weaknesses• Utilizes employment challenged individuals• Current plan does not benefit local stores and their workforce• Pricing strategy for used books• Lack of space on sales floor for books
Opportunities• Advancement in technology allows for possibility of online book sales• Utilize large warehouse space as sorting center for book-selling operation
Threats• Other resale shops and online stores offering similar products• Customers researching resale value of items, such as books
Porter’s Five Forces
Suppliers• People donate unwanted items
• Retail stores with unwanted items, Example: Target
New Entrants• None known
Buyers• Consumers looking for discounted or second-hand goods
• Typically, low-income families or college students
•New homeowners
•Bargain hunters
Substitutes• Homemade goods (clothing, furniture, home goods, etc)
Industry Competitors• Church rummage sales
• Other thrift or resale shops
• Online stores
• Yard or garage sales
• Classified ads
Marketing Mix
Product- Donations of used clothing, household goods, books, electronics, and other items
Place- 14 retail stores- 1 outlet store- Online shop- 4 drop-off centers- Central warehouse
Price- Competitively priced with other thrift stores- Deeply discounted from traditional retail prices- Outlet pricing: Priced per pound 50¢ clothing/shoes, 10¢ glassware, 30¢ housewares, 7¢ books
Promotion- Social media- Other methods unknown
Consumer- Low-income families- Bargain hunters- College students/new homeowners
Decision Gate Approach
Remain the Same
Yes
No Online Sales
Yes
Monsoon as is
Amazon
Self-made
Monsoon Modified
No Pricing Structure Change
Decision Gate Approach
Remain the Same
Yes
No Online Sales
Yes
Monsoon as is
Amazon
Self-made
Monsoon Modified
No Pricing Structure Change
Alternative 1: Current Plan• Utilizes pricing
structure based upon publisher’s price.
• Decision model based on visually appealing
• Online net revenue: $4.98/book
• Not realizing full profit potential
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
O
Goal 2:Best workforce to achieve the mission O
Goal 3:Financial Resources to sustain Goodwill -
Goal 4:Effective Business Structure -
Goal 5:Mission is understood and supported by community O
Mission and Vision Statements +
Alternative 2: Change of Plan• Ability to influence
key success factors through other alternatives
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
+
Goal 2:Best workforce to achieve the mission +
Goal 3:Financial Resources to sustain Goodwill +
Goal 4:Effective Business Structure +
Goal 5:Mission is understood and supported by community +
Mission and Vision Statements +
Decision 1Weight Alternative 1:
Current PlanAlternative 2:Change of Plan
Goal 1: People-Centric Services that build Self-Sufficiency
.12 2 0.24 3 0.36
Goal 2:Best workforce to achieve the mission
.12 2 0.24 3 0.36
Goal 3:Financial Resources to sustain Goodwill
.12 1 0.12 3 0.36
Goal 4:Effective Business Structure .12 1 0.12 3 0.36
Goal 5:Mission is understood and supported by community
.12 2 0.24 3 0.36
Mission and Vision Statements .40 3 1.2 3 1.20
Total 2.16 3.00
Decision Gate Approach
Remain the Same
Yes
No Online Sales
Yes
Monsoon as is
Amazon
Self-made
Monsoon Modified
No Pricing Structure Change
Alternative 3: Online Sales• Allow for obtaining
greatest value of donated books
• May require more skill than available from participant workforce
• Impersonal • Possibility to further
the mission and vision
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
-
Goal 2:Best workforce to achieve the mission +
Goal 3:Financial Resources to sustain Goodwill +
Goal 4:Effective Business Structure +
Goal 5:Mission is understood and supported by community -
Mission and Vision Statements +
Alternative 4: No Online Technology
• Only a few individuals have opportunities for employment
• Less revenue• Mission and Vision
only exposed to those who are already associated with GR Goodwill
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
+
Goal 2:Best workforce to achieve the mission +
Goal 3:Financial Resources to sustain Goodwill -
Goal 4:Effective Business Structure -
Goal 5:Mission is understood and supported by community +
Mission and Vision Statements -
Decision 2Weight Alternative 3:
Online SalesAlternative 4: Not Online
Goal 1: People-Centric Services that build Self-Sufficiency
.12 1 0.12 3 0.36
Goal 2:Best workforce to achieve the mission
.12 3 0.36 3 0.36
Goal 3:Financial Resources to sustain Goodwill
.12 3 0.36 1 0.12
Goal 4:Effective Business Structure .12 3 0.36 1 0.12
Goal 5:Mission is understood and supported by community
.12 1 0.12 3 0.36
Mission and Vision Statements .40 3 1.2 1 0.40
Total 2.52 1.72
Decision Gate Approach
Remain the Same
Yes
No Online Sales
Yes
Monsoon as is
Amazon
Self-made
Monsoon Modified
No Pricing Structure Change
Alternative 5: Use of Monsoon• Increases average
selling price• Decreases salvage
materials• Employs three full-
time non-participant workers
• Utilizes Amazon for selling and shipping
• Extensive fees
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
-
Goal 2:Best workforce to achieve the mission +
Goal 3:Financial Resources to sustain Goodwill +
Goal 4:Effective Business Structure -
Goal 5:Mission is understood and supported by community -
Mission and Vision Statements O
Alternative 6: Amazon Plan• Direct sale on
Amazon• Provides security for
customers• Design IT• Ability to promote
Goodwill on Amazon• Ability to track from
originating store
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
-
Goal 2:Best workforce to achieve the mission O
Goal 3:Financial Resources to sustain Goodwill +
Goal 4:Effective Business Structure +
Goal 5:Mission is understood and supported by community -
Mission and Vision Statements O
Alternative 7: Self-Creation Plan
• Most expensive option
• Extensive AIS, IT, and security needed
• Ability to employ participant workers
• Greater promotion of Goodwill, especially Grand Rapids
• Ability to track from originating store
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
+
Goal 2:Best workforce to achieve the mission -
Goal 3:Financial Resources to sustain Goodwill -
Goal 4:Effective Business Structure +
Goal 5:Mission is understood and supported by community +
Mission and Vision Statements +
Alternative 8: Modified Plan• Utilize participant
workers • Ability to track from
originating store • Alter Phase II to
allow books to be displayed in the store
• Emphasis of Goodwill and GR Goodwill
Key Success Factors Rank
Goal 1: People-Centric Services that build Self-Sufficiency
+
Goal 2:Best workforce to achieve the mission +
Goal 3:Financial Resources to sustain Goodwill +
Goal 4:Effective Business Structure -
Goal 5:Mission is understood and supported by community +
Mission and Vision Statements +
Decision 3Weight Alternative 5:
Use MonsoonAlternative 6:Amazon Plan
Alternative 7:Self-Creation
Alternative 8: Modified Plan
Goal 1: People-Centric Services that build Self-Sufficiency
0.12 1 0.12 1 0.12 3 0.36 3 0.36
Goal 2:Best workforce to achieve the mission 0.12 3 0.36 2 0.24 1 0.12 3 0.36
Goal 3:Financial Resources to sustain Goodwill
0.12 3 0.36 3 0.36 1 0.12 3 0.36
Goal 4:Effective Business Structure
0.12 1 0.12 1 0.12 3 0.36 1 0.12
Goal 5:Mission is understood and supported by community
0.12 1 0.12 1 0.12 3 0.36 3 0.36
Mission and Vision Statements 0.40 2 0.8 2 0.24 3 1.20 3 1.20
Total 1.88 1.76 2.52 2.76
Recommendation
Remain the Same
Yes
No Online Sales
Yes
Monsoon as is
Amazon
Self-made
Monsoon Modified
No Pricing Structure Change
Implementation
• Presenting Monsoon with a modified proposal
• If accepted, follow with Monsoon’s modified Phase I
• If rejected, follow with contingency plan – Self-creation Plan
Contingency Implementation
• Self-creation Plan• Establishment of AIS– Processes include orders, picking, shipping,
billing, tracking, and receivables • Creation of website capable of: – Secure transactions– Backup management – Maintenance
Implementation BudgetRevenue
Selling $ 136,608.00 Shipping $ 136,266.00 Total: $ 272,874.00
ExpensesAmazon $ 20,491.20 Transaction Fee $ - Monsoon $ 9,550.59 Shipping $ 102,114.00 Wages & Benefits $ 84,756.00 Supplies $ 9,384.00 Office Equipment $ 2,352.00 Maintenance $ 240.00 Total: $ 228,887.79
Profit $ 43,986.21
Contingency BudgetRevenue
Selling $ 136,608.00 Shipping $ 136,266.00 Total: $ 272,874.00
ExpensesAmazon $ - Transaction Fee $ - Monsoon $ - Shipping $ 102,114.00 Wages & Benefits $ 100,000.00 Supplies $ 9,384.00 Office Equipment $ 2,352.00 Maintenance $ 240.00 Initial Set-up $ 80,000.00 Total: $ 274,090.00
Profit (Loss) -$ 21,216.00
Redhawks Consulting
Goodwill Industries of Greater Grand Rapids, Inc
Mission: “Changing lives and communities through the power of work.”