sieml deloitte case competition 2015

SHAREDCONSULTING OPERATING STRATEGY

ILEANA GONZALEZ

ALISHA GRIGGS

JORDYN HAWKINS-RIPPIE

NICOLE ROBINSON

BENJAMIN WEBSTER

AGENDA

Situation Analysis

Recommendations

•Strategy & Operations

• Technology

•Human Capital

Key Takeaways

CHALLENGES

Competition

Lack of a clear growth strategy

Regulatory pressures

Driver and customer dissatisfaction with app

High turnover rates

TARGETED APPROACH

•Expand domestically and internationally on current services

•Issue comprehensive background checks

•Double insurance coverage for drivers

Strategy & Operations

•Strategic alliance with Google Maps

•Deploy of SharedAhead and SharedRewards

Technology •Restructure organization

•Implement work/life & professional development initiatives

Human Capital

TARGETED APPROACH

•Expand domestically and internationally on current services

•Issue comprehensive background checks

•Double insurance coverage for drivers

Strategy & Operations

•Strategic alliance with Google Maps

•Deploy of SharedAhead and SharedRewards

Technology •Restructure organization

•Implement work/life & professional development initiatives

Human Capital

EXPANSION STRATEGY - DOMESTIC

2016 Q1

West

Revenue $109 M

Profit $2.7 M

User % 23.5%

• Established Region

• 35.92% domestic

profit

• The most

competition

• Sustain market

dominance

EXPANSION STRATEGY - DOMESTIC

2016 Q1 2016 Q2

West Atlantic/South

Revenue $109 M

Profit $2.7 M

User % 23.5%

• Established Region

• 35.92% domestic

profit

• The most

competition

• Sustain market

dominance

Revenue $28.5 M

Profit $1.4 M

User % 20.9%

• Larger distances =

more revenue

• 18.62% domestic

profit

• New Region –• Growth &

Momentum

EXPANSION STRATEGY - DOMESTIC

2016 Q1 2016 Q2 2016 Q3

West Atlantic/South Central

Revenue $109 M

Profit $2.7 M

User % 23.5%

• Established Region

• 35.92% domestic

profit

• The most

competition

• Sustain market

dominance

Revenue $28.5 M

Profit $1.4 M

User % 20.9%

• Larger distances =

more revenue

• 18.62% domestic

profit

• New Region –• Growth &

Momentum

Revenue $66 M

Profit $1. 8 M

User % 20.3%

• No issues have arisen

• 22.13% domestic

profit

• 3 of the top cities

• High potential for

growth

EXPANSION STRATEGY - DOMESTIC

2016 Q1 2016 Q2 2016 Q3 2016 Q4

West Atlantic/South Central North East

Revenue $109 M

Profit $2.7 M

User % 23.5%

• Established Region

• 35.92% domestic

profit

• The most

competition

• Sustain market

dominance

Revenue $28.5 M

Profit $1.4 M

User % 20.9%

• Larger distances =

more revenue

• 18.62% domestic

profit

• New Region –• Growth &

Momentum

Revenue $66 M

Profit $1. 8 M

User % 20.3%

• No issues have arisen

• 22.13% domestic

profit

• 3 of the top cities

• High potential for

growth

Revenue $76.5 M

Profit $1 M

User % 19.66%

• Highly saturated

market

• Already in the big

cities

EXPANSION STRATEGY - INTERNATIONAL

2016 Q1

North America

Revenue $7 M

Profit $1.2 M

User % 34.6%

• Most profitable

region

• No competitors

• Expanding fast to

dominate

• 43% international

profit

EXPANSION STRATEGY - INTERNATIONAL

2016 Q1 2016 Q3

North America Europe

Revenue $7 M

Profit $1.2 M

User % 34.6%

• Most profitable

region

• No competitors

• Expanding fast to

dominate

• 43% international

profit

Revenue $32.5 M

Profit $878,000

User % 3.59%

• No competitors

• Trans-border

traveling

• Quickly word of

mouth

EXPANSION STRATEGY - INTERNATIONAL

2016 Q1 2016 Q3 2016 Q3

North America Europe Asia

Revenue $7 M

Profit $1.2 M

User % 34.6%

• Most profitable

region

• No competitors

• Expanding fast to

dominate

• 43% international

profit

Revenue $32.5 M

Profit $878,000

User % 3.59%

• No competitors

• Trans-border

traveling

• Quickly word of

mouth

Revenue $5 M

Profit $715,000

User % 2.87%

• No competitors

• High population

density

• High car-free

population

QUARTERLY GROWTH

ANNUAL GROWTH

ANNUAL GROWTH

INITIAL EXPANSION FRAMEWORK

• Population density of 100 people per

square mile

• Population growth

• 20% of population needs to be car

free

LEGAL AND REGULATORY SOLUTION

• Valid license in state of operation

• Background check

• Every six months

• Double insurance coverage

TARGETED APPROACH

•Expand domestically and internationally on current services

•Issue comprehensive background checks

•Double insurance coverage for drivers

Strategy & Operations

•Strategic alliance with Google Maps

•Deploy of SharedAhead and SharedRewards

Technology •Restructure organization

•Implement work/life & professional development initiatives

Human Capital

MAPPING SERVICES

In-House Development

Advantages:

• Company Ownership

• Quick to implement

change

Disadvantages:

• Expensive

• Time consuming

Risk:

• Competitors may gain

lead

Strategic Alliance

Advantages:

• Quickly implementing

solutions

• Less expensive

• Proven reliability

Disadvantages:

• No control

• Long term solutions

Risk:

• Potential long term

cost

Acquisition

Advantages:

• Immediate solutions

• Company ownership of

Property

Disadvantages:

• Expensive

• Not viable

Risk:

• Negative cash flow

MAPPING SERVICES

In-House Development

Advantages:

• Company Ownership

• Quick to implement

change

Disadvantages:

• Expensive

• Time consuming

Risk:

• Competitors may gain

lead

Strategic Alliance

Advantages:

• Quickly implementing

solutions

• Less expensive

• Proven reliability

Disadvantages:

• No control

• Long term solutions

Risk:

• Potential long term

cost

Acquisition

Advantages:

• Immediate solutions

• Company ownership of

Property

Disadvantages:

• Expensive

• Not viable

Risk:

• Negative cash flow

SHAREDAHEAD

• Launch in largest cities

(SFO and JFK)

• 3-6 month pilot program

• Reduced gross margin

SHAREDAHEAD

• Launch in largest cities

(SFO and JFK)

• 3-6 month pilot program

• Reduced gross margin

Advantages:

• New market

Disadvantages:

• Fare prediction

• Unknown driver availability

SHAREDREWARDS

•Customer loyalty program

•Discounts for consistent service

usage

•Partner with major retail centers

SHAREDREWARDS

•Customer loyalty program

•Discounts for consistent service

usage

•Partner with major retail centers

Advantages:

• Increased competitor

pressure

Disadvantages:

• Less Revenue

TARGETED APPROACH

•Expand domestically and internationally on current services

•Issue comprehensive background checks

•Double insurance coverage for drivers

Strategy & Operations

•Strategic alliance with Google Maps

•Deploy of SharedAhead and SharedRewards

Technology •Restructure organization

•Implement work/life & professional development initiatives

Human Capital

ATTRITION AT SHARED

ATTRITION AT SHARED

NEW ORGANIZATIONAL STRUCTURE

CEOGlobal

President

CTO CFO CLO

Human Resource

s

US

PresidentEurope

President

AsiaPreside

nt

North

American

President (EX

US)

Director of Accounting

Director of Operations

Director of Shared Plus

Director of Marketing

WORK / LIFE BALANCE & PROFESSIONAL DEVELOPMENT

Evaluated top five ranked Indeed companies for healthy work-life

balances

Benefit implementation

Nearby childcare centers

Seven paid weeks maternity leave

Virtual training and telecommuting where appropriate

Career milestone training

Mentoring programs

TURNOVER OUTCOMES

Current

15%

12 months

10%

24 months

6%

TURNOVER OUTCOMES

Current

15%

12 months

10%

24 months

6%

TURNOVER OUTCOMES

Current

15%

12 months

10%

24 months

6%

KEY TAKEAWAYS

Strategy & Operations

•Systematic Approach to Domestic and International Expansion

Technology

•Strategic Alliance with Google Maps

•Parallel Development of App and New Services

Human Capital

•Streamlined and Scalable Organizational Structure

•Reduced Turnover and Increased Employee Satisfaction

QUESTIONS?