eee case study presentation
TRANSCRIPT
Seven Year Gold(Don Stanton & Tanglewood Gardens)
High Quality Fertilizer from Horse Manure
Lisa Nesbitt
Libere Ndacayisaba
Ryan Ullrich
Current Situation:Business Plan: Quick and free access to
horse manure (over 8,000 pounds
per day) to turn into a high quality fertilizer
“Tiffany’s of fertilizer”-high quality product sold in a
low volume
“ I was able to start sales immediately
because I had already stockpiled 8 huge compost piles”
-Don Stanton
Market: individuals/companies who take
gardening seriously
Current Ways of Dealing with Manure: 1.) Stockpile to use later
2.) Spread daily on crops
How it Works:
SWOT Analysis:
Strengths:1. Free raw material: Family horse farm,
8,000lbs/day of manure
2. Machinery/Equipment available at Tanglewood
3. Doesn’t need high tech-can do most of it himself
1, 2, and 3 increase his profit margins
4. Capitalizes on current trend of going organic
Could register to be an organic product in the
marketplace
5. Belief in perfection = highest quality product
6. Satisfied customer base
SWOT Analysis
Weaknesses:
● Production capacity: limited facility
● Time: 7-8 years for manure to mature
● Only employee: more manpower could
increase production
● Bootstrapping philosophy: doesn’t want
to relinquish control to anyone else
● No traditional advertising, which could
increase customer base
SWOT Analysis
Opportunities:
● Take advantage of manure donated by
neighbors (offer customer loyalty program,
discount for donating manure)
● Has opportunity to expand with 700 acres
● Considered opening new facility near where
Kentucky Derby is held
○ Allows him access to vast amount of
raw material
SWOT Analysis
Threats:
● Fertilizer companies who advertise more
frequently
● Large home/outdoor improvement
companies like Home Depot
● People could potentially use their own
horse manure
Central Issue:
“I love making people happy.
And this stuff does it”-Don Stanton
● Don is looking to expand his business’ capacity while still
maintaining the extremely high level of quality perfection that
he looks for in his product
Strategic Alternatives ● New markets:
○ Sell fertilizer to landscaping companies and organic farmers
○ Sell fresh manure to fertilizer companies
● Franchising:
○ to local owners of horse riding centers
○ Kentucky Derby
○ Saratoga Springs-closer by so less of a cost to move his
business while still having access to the highest quality
manure from best horse breeds
● Expand production capacity
○ More horses to occupy the 700 acres and produce more manure
○ Hire labor power and buy more equipment
Strategic Alternatives Cont.
● Advertising his product
○ Could potentially partner with charity groups/work to advertise for free
○ They use his product, he get some sort of publicity through the work and
a potential tax write off.
“Yes I still do everything myself. Every year
the business grows bigger and bigger.
-Don Stanton
Pros of Strategic Alternatives ● Markets
○ Niche market: landscaping companies and
organic farmers are more “Green”,
■ organic-minded
○ savings on transportation cost: fertilizer
companies would pick up manure from his
facility
● Franchise
○ more profits and advertisements
● Expansion:
○ more production = more sales and profit
margin
● Advertising
○ brand image for Seven Year Gold
○ potential tax write off if pairing with
charity
Cons of Strategic Alternatives
● Markets:
○ Selling fresh manure = loss of business
● Franchising
○ lose full control of his product
○ Kentucky Derby at Churchill Downs
■ 1/year: 76 races, only 42
thousands lbs of manure/year.
● Advertising:
○ Great business currently, no need to
spend money for advert.
Recommended Strategy
❖Expand production
capacity
○ Add a new conveyor belt and forklift
○ Hire 2 employees
○ Increase storage facility
(warehouse)
Time Table and Profitability
Tracking and Control
- Hire a bookkeeper.
- Monitor the revenues for the next 2 years to see if he has the $159,000 for the new
equipment
- Monthly evaluations of his two new employees to ensure that they are performing to his
standards
-Track the volumes produced of his fertilizer so that he can tell if the new machinery is in
fact increasing his production
Conclusion
● He increases the production efficiency and capacity
● At the same time, maintains control over his company and product
● He will be a millionaire by 2020
● His product will be as good as the day he started
Questions?