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.”