Transcript Panel on Innovation: (insert program name here)

Shared Infrastructure:
New Operational Models for Achieving Greater
Efficiency, Effectiveness and Sustainability
Presented by:
Howard Brodsky
Co-CEO & Chairman
CCA Global Partners
May 22, 2006
New York
CCA Global Partners
the power to do more
FOCUSED ON THE FUTURE
CCA Global Partners Snapshot
Network gross sales of $8.7 Billion
 78 consecutive quarters of profitability
 Fourteen divisions
 Over 3,600 stores/locations
 Seven Countries
 Four Continents
 8th largest retailer in the U.S.
 Top 100 Retailers in the World
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Our Focus
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Conversion franchising in the mainstream
retail segment
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Franchise creation in the other market
segments
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Strategic partner with manufacturers
Our Mission
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To provide tools, products and services to
help our members compete successfully in
their markets and to assist in increasing
their growth and profitability.
The Concept
Management
Buying
Marketing
Support
Divisions
Companies
Product & Merchandising
Carpet One USA
The Biking Solution
Human Resources
Education & Training
Flooring America
Lighting One
Finance & Accounting
Buying
Marketing & Advertising
Magnus Anderson
International Design Guild
Member Services
ProSource
Floor Trader
Meeting Services
Legal
Rug Decor
Floor Expo
Insurance
National Accounts
Flooring Canada
Carpet One Canada
Real Estate
Lender’s One
Flooring One
Carpet One Australasia
Carpet One Africa
Membership Recruiting
National Programs
Information Technology
Creating the Magic Zone
•National Programs
•Best Service
•Real Estate Services
•Straight-shooters
•Innovative
•Honest
•Confident
Owners
•Respects and likes
their customers
Professional &
Knowledgeable
•Real People
Maximization
of Profits
Growth of
Business
Professional
Training
•National Accounts
World-Class
Marketing
•Smart Business
People
•Know Product
•Staff Works Like a
Team
Passion for
Business
Increase
Customers &
Profit
•Store Design
CCA
Empathetic
Owner & Staff
•Information
Technology
•Human Resources
& Hiring
•Product &
Merchandising
•Marketing &
Advertising
Lower
Operational
Costs
•Buying
•Member Services
•Training
•Research
Magic Zone
Legal Structure
Cooperative
 Franchiser
 Licensor
 Strategic Alliance
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CCA Global Programs
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On-line University
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Traveling University
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In the first 6 months of 2005:
 19,345 log-ins
 17,920 hours of use
 11,215 courses completed
248 Events over the past year
2,776 Hours of training
5,915 People training
156 Locations 19,345 log-ins
Meeting & Convention Services
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Execute and plan:
22 conventions per year
Hundreds of regional meetings
10 incentive trips
Infrastructure, Tools, Networks
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Communication Tools
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Members.net
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Business Tools
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Brand Pack
Monthly Promotions
Public Relations Programs
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Buying
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Advertising, Marketing
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Insurance and Benefits
Exclusive brands
Core products
Rebates
Product & Visual Merchandising
Store Design

Property & Liability
Vehicle
Workers Comp
Group Medical
Retirement
Term Life & Long Term
Disability
Real Estate Services
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Analysis
Negotiation
Leasing
Infrastructure, Tools, Networks
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Operational Tools
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National Programs
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Credit card processing
Gift cards
Check guarantee
Consumer financing
Business Leasing
Yellow Pages
Phone/On-Hold Systems
Telephone/Cellular
Waste Disposal
Office Supplies
Mail and Shipping
Computers
Employment Verification
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University
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Sales training/certifications
Installation Excellence
On-line University
Customer Service
Human Resource
Technical Courses – computer
applications
Product Knowledge Training &
Certifications
National Accounts
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Allstate
State Farm
Farmers Insurance Group
Explanation of Innovation
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Why was the model developed/ implemented?
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What was the catalyst or moment of opportunity?
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Strategy is offensive, not defensive
Strategy of growth and market share gain not just
sustainability
Pressures from big box stores on independent
businesses offered opportunity for consolidation of
fragmented industries to look for synergies to protect
their market share, secure competitive prices on goods
and services, and obtain operational efficiencies
What encouraged players to work together?
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Created shared vision for the future and delivered on
that vision
Benefits of the Model
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What specific needs does the collaborative meet?
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Gives the individual stores the marketing, training,
operations and product so that they grow market share
and increase profitability
How does it promote: profitability, scale, market
share, market influence, prominence, etc.?
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We own the brands
We increase the margins
We train on how to hire the best; keep the best
Sourcing product throughout the world
Failure rate: Industry average is 12%
Our membership has < ½% failure rate
Our members are
recognized as the most
successful, the most
profitable and the best
managed in their industry
Looking Ahead…
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We have targeted large fragmented industries
that will not have sustainability without CCA
Global’s partnerships
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We envision that we will be a $20 Billion company
and one of the five dominant retail players in the
country and worldwide presence