Redhawks Consulting
Souk el Tayeb
“Good Food Market”
How to generate income while
maintaining the mission of social
enterprise
I. Analysis
I.
II.
III.
IV.
PESTLE
SWOT Analysis
The Company
Financial Analysis
II. Alternatives
III. Recommendation
IV. Implementation
.
Population
•
•
•
•
3,9 million people
1,154% population growth
95% Arab
87,4% literacy rate
Economic
•
•
•
•
•
Social
•
•
•
•
Family-oriented
Arabic-speaking
59,7% Muslim, 39% Christian
Republic nation
5,1% of GDP is agricultural
75,9% of GDP is services
1,5 million people ni the labor force
4,1% inflation rate
GDP per capita = USD$11,300
Ecological
•
•
•
•
•
Plentiful farm land
Dust storms
Sand storms
Soil erosion
Air pollution from vehicular traffic
External Analysis
Strengths
Strengths
Weaknesses
Weaknesses
Using food
sustainable
• Using
foodtotosupport
support
sustainable • Limited resources
• Using
food
to
support
•• Limited
agriculture
Low margin resources
for profitability
agricultureand
andliving*
living*
••
••
sustainable
agriculture
Strong
mission
Strong vision
vision and
and
mission
Human
capital
living*capital
Human
and
• Low margin for profitability
• Strong vision and mission
* Distinctive competency
• Human capital
* Distinctive competency
* Distinctive competency
Opportunities
Opportunities
•• Expansion
into
other
markets
Expansion
into
other
• Growing interest in sustainability
• markets
Lack of local competitors
Threats
Threats
Threats
•• Environmental
factors
Environmental factors
•• Environmental
factors
Governmental regulation
Governmental
regulation
•• Price
of organic food
• Growing interest in sustainability • Price of organic food
• Lack of local competitors
External/Internal Analysis
Vision
Mission
“Celebrating food and tradition
that unite communities while
supporting small-scale farmers
and producers.”
Fostering innovative,
Internal
Positive
environmentally
sound, socially
responsive and economically
viable food-related initiatives.”
Mission Action Items
• Supporting small-scale farmers and producers
• Engaging in advocacy and education about food traditions and
organic lifestyles
• Preserving food traditions and heritage
• Positively impacting society and environment
Internal Analysis
Financial Condition
Total Revenues
Food and Beverage costs (50%)
2010
2011 Pro forma *
$ 518.215,00 $ 575.551,20
$ 234.518,00 $ 276.559,20
Operational Costs (inclduing Staff Salaries)
Total Operational Costs
Founders Salaries
Net Income
$ 168.510,00
$ 403.028,00
$
$ 36.243,00
$
$
$
$
257.668,80
534.228,00
40.053,60
38.164,80
* Projected from January - May 2011 Results
Internal Analysis
Souk el Tayeb
Expand
producer
network
New business
venture
Alternatives
Expand
producer network
New
business venture
Advantages
Disadvantages
Advantages
Disadvantages
Aligned with
social mission
Not cost effective
Revenuegenerating
Higher initial cost
Less inital risk
Less long-term
impact
Increases financial
viability
Inexperience in
composting
Non-revenue
generating
Increases support
of producers
Alternatives
Souk el Tayeb
Expand
producer
network
New business
venture
New venture in
other location
New venture in
Beirut
Alternatives
New venture
in other location
New venture
in Beirut
Advantages
Disadvantages
Advantages
Disadvantages
Aligned with
social mission
Higher cost
Aligned with
social mission
Smaller expansion
of audience
Expansion of
audience
Unfamiliarity in
other areas
Local contacts
Higher risk
Familiarity with
area
Less cost
Alternatives
Expand producer
network
Souk el Tayeb
New business
venture
New venture in
other location
Catering
business
Grocery store
New venture in
Beirut
Restaraunt
expansion
eco-waste
management
Alternatives
Alternative #1
Alternative #2
Start a catering business
Partner with a grocery store
Alternative #3
Alternative #4
Expand Tawlet into a
full-service restaraunt
Start an waste management
business with composting
Alternatives
Alternatives
Key Success Factor
Rating
Catering
Grocery
Store
Restaurant
Expansion
Compost
Rank
Total
Rank
Total
Rank
Rank
Total
Total
Financial Feasability
,300
3
,900
1*
,300
2
,600
4
1,20
Suppporting Small
Scale Farmers and
Producers
,175
4
,700
5
,875
4
,700
5*
,875
Preserving Food
Traditions and
Heritage
,175
4
,700
3
,525
4
,700
5*
,875
Engaging in advocacy
in education about
food and organic
lifestyles
,175
1*
,175
3
,525
3
,525
5*
,875
Positively impacting
society and the
environment
,175
2
,350
3
,525
2
,350
5*
,875
Total
1,0
2,825
2,750
Ranking Scale:
1. This alternative does not effectively address this criterion.
2. The alternative may contribute to addressing this criterion.
3. The alternative provides an average solution to this criterion.
4. The alternative provides an above average solution for this criterion.
5. The alternative effectively addresses this criterion.
2,875
4,700
Alternatives
Alternative #4
Start-up venture –
Waste management / Composting
.
• Planting &
Farming
• Fertilizer
• Harvesting
Production
(Farmers)
Distribution
(Farmers
Market)
Waste
Management
(Compost)
Product Use
(Restaurants)
• Food
Recommendation
2012 Projections
Total Revenues
Food and Beverage costs (50%)
Worst Case Most Likely Case Best Case
2011 5% Growth
15% Growth
30% Growth
$ 575.551,20 $ 604.328,76 $
661.883,88 $ 748.216,56
$ 276.559,20 $ 290.387,16 $
318.043,08 $ 359.526,96
Operational Costs
Total Operational Costs
Founders Salaries
Net Income
$ 257.668,80
$ 534.228,00
$ 40.053,60
$ 38.164,80
$ 270.552,24
$ 560.939,40
$ 42.056,28
$ 40.073,04
$
$
$
$
296.319,12
614.362,20
46.061,64
43.889,52
$ 334.969,44
$ 694.496,40
$ 52.069,68
$ 49.614,24
Internal Analysis
ShortTerm
• Research
•
•
•
•
•
Green Composting
Price Point Analysis
Locations for Compost Site
Methods of Transportation
Legal Compliance
• Obtain Composting Materials
• Marketing
•
•
•
Restaurants
Farmers in community
Local community
• Open Composting Site
Long Term
• Develop Full Circle Education Program
• Develop and Sell At Home Composting Kit
• Increase Waste Imputs
Implementation
Short Term
2 weeks
4 weeks
6 weeks
8 weeks
Research Green
Composting
Research Price Point
Analysis
Research Locations for
Compost Site
Research Methods of
Transportation
Research Legal
Compliance
Obtain Composting
Materials
Milestone Review
Implementation
Medium-Long Term
8 weeks 4 months
8 months
12 months
18 months
Market to Restaurants
Market to Farmers
Market to Community
Open Composting Site
Develop Full Circle
Education Program
Develop At Home Kit
Increase waste imputs
Milestone Review
Implementation
Risk
Level of Risk
Mitigation / Contingency
No interest from targeted
customers
Low
Seek alternative sources of
food waste – grocery stores,
schools, households
Inability to meet initial demand
Low
Enlist farmers’ assistance
No available land for
composting
Low
Enlist farmers’ assistance
Implementation
Summary
Start-Up Venture
Waste Management/Composting
Redhawks Consulting
Souk el Tayeb
“Good Food Market”