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
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Key Concern
Strategic Planning Goals
Market Analysis
Decision Gate Approach
Alternatives
Recommendations
Implementation
Contingency
Budget
Summary
PESTEL Analysis
Political
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•
•
•
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
•
•
•
•
•
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
Constitution-based federal republic
Strong democratic tradition
Political parties
No political pressure
Phones: 172 million
Cell phones: 233 million
Radio: 575 million
Television: 219 million
Internet: 208 million
SWOT Analysis
Strengths
• 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
Opportunities
• Advancement in technology allows for
possibility of online book sales
• Utilize large warehouse space as sorting
center for book-selling operation
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
Threats
• Other resale shops and online stores
offering similar products
• Customers researching resale value of
items, such as books
Porter’s Five Forces
New Entrants
• None known
Suppliers
• People donate
unwanted items
• Retail stores with
unwanted items, Example:
Target
Buyers
Industry Competitors
• Church rummage sales
• Other thrift or resale shops
• Online stores
• Yard or garage sales
• Classified ads
• Consumers looking for
discounted or secondhand goods
• Typically, low-income
families or college
students
•New homeowners
•Bargain hunters
Substitutes
• Homemade goods (clothing, furniture,
home goods, etc)
Marketing Mix
Place
Product
- Donations of used clothing, household
goods, books, electronics, and other items
- 14 retail stores
- 1 outlet store
- Online shop
- 4 drop-off centers
- Central warehouse
Consumer
- Low-income families
- Bargain hunters
Price
- College students/new homeowners
- 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
Decision Gate Approach
Monsoon as is
Amazon
Yes
Yes
Self-made
Remain the
Same
No
Online Sales
Monsoon
Modified
No
Pricing Structure
Change
Decision Gate Approach
Monsoon as is
Amazon
Yes
Yes
Self-made
Remain the
Same
No
Online Sales
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 SelfSufficiency
Goal 2:
Best workforce to achieve the mission
Goal 3:
Financial Resources to sustain Goodwill
Goal 4:
Effective Business Structure
O
O
-
Goal 5:
Mission is understood and supported
by community
Mission and Vision Statements
O
+
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 SelfSufficiency
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 1
Weight
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
Total
Alternative 1:
Current Plan
Alternative 2:
Change of Plan
.12
2
0.24
3
0.36
.12
2
0.24
3
0.36
.12
1
0.12
3
0.36
.12
1
0.12
3
0.36
.12
2
0.24
3
0.36
.40
3
1.2
3
1.20
2.16
3.00
Decision Gate Approach
Monsoon as is
Amazon
Yes
Yes
Self-made
Remain the
Same
No
Online Sales
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 SelfSufficiency
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 SelfSufficiency
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 2
Weight
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
Total
Alternative 3:
Online Sales
Alternative 4:
Not Online
.12
1
0.12
3
0.36
.12
3
0.36
3
0.36
.12
3
0.36
1
0.12
.12
3
0.36
1
0.12
.12
1
0.12
3
0.36
.40
3
1.2
1
0.40
2.52
1.72
Decision Gate Approach
Monsoon as is
Amazon
Yes
Yes
Self-made
Remain the
Same
No
Online Sales
Monsoon
Modified
No
Pricing Structure
Change
Alternative 5: Use of Monsoon
• Increases average
selling price
• Decreases salvage
materials
• Employs three fulltime non-participant
workers
• Utilizes Amazon for
selling and shipping
• Extensive fees
Key Success Factors
Rank
Goal 1:
People-Centric Services that build SelfSufficiency
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 SelfSufficiency
Goal 2:
Best workforce to achieve the mission
Goal 3:
Financial Resources to sustain Goodwill
Goal 4:
Effective Business Structure
O
+
+
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 SelfSufficiency
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 SelfSufficiency
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 3
Weight
Alternative 5:
Use Monsoon
Alternative 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
0.12
3
0.36
2
0.24
1
0.12
3
0.36
0.12
3
0.36
3
0.36
1
0.12
3
0.36
0.12
1
0.12
1
0.12
3
0.36
1
0.12
0.12
1
0.12
1
0.12
3
0.36
3
0.36
0.40
2
0.8
2
0.24
3
1.20
3
1.20
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
Total
1.88
1.76
2.52
2.76
Recommendation
Monsoon as is
Amazon
Yes
Yes
Self-made
Remain the
Same
No
Online Sales
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 Budget
Revenue
Selling
Shipping
Total:
$ 136,608.00
$ 136,266.00
$ 272,874.00
Amazon
Transaction Fee
Monsoon
Shipping
Wages & Benefits
Supplies
Office Equipment
Maintenance
Total:
$
$
$
$
$
$
$
$
$
$
Expenses
Profit
20,491.20
9,550.59
102,114.00
84,756.00
9,384.00
2,352.00
240.00
228,887.79
43,986.21
Contingency Budget
Revenue
Selling
Shipping
Total:
$ 136,608.00
$ 136,266.00
$ 272,874.00
Amazon
Transaction Fee
Monsoon
Shipping
Wages & Benefits
Supplies
Office Equipment
Maintenance
Initial Set-up
Total:
$
$
$
$
$
$
$
$
$
$
-$
Expenses
Profit (Loss)
102,114.00
100,000.00
9,384.00
2,352.00
240.00
80,000.00
274,090.00
21,216.00
Redhawks Consulting
Goodwill Industries of
Greater Grand Rapids, Inc
Mission: “Changing lives and communities
through the power of work.”