Transcript Westlake consultants inc strategic analysis

WESTLAKE
CONSULTANTS INC.
STRATEGIC ANALYSIS
Kyle McDonnell, Caitlin Hogan, John
Sherlock, Jasmine Dudley, Mark Myshatyn
Summary of Consulting Objectives
1. Review of Business
• Review of Financials
• Review Growth Opportunities
2. Review of Market
• Five Forces
3. Create Recommendation
• Marketing Strategy for 3D Scanning
• Internal Development Group
Major Threats/Opportunities in Market
• Threat
• Seasonality
Threats of New
Competition
• Established Rivals
Threats of
Substitute
Products or
Services
Intensity of
Competitive
Rivalry
• Opportunity
• 3D Laser Scanning
Bargaining
Power of
Suppliers
Bargaining
Power of
Customers
Our Valuation
Our Recommendation
• Marketing Strategy for 3D Scanning
• Capture Market Share
• Highlight Experience
• Internal Development Group
• Long Term Internal Growth
• Spreading knowledge among employees
Implementation: Steps Required
(Marketing)
Contract Work
• Hire Specified Marketing
Consultant
Temporary/Full-Time Employee
• Hire through a temp
agency
• Lowest Cost over time-one
• Low cost employee/only
time fee
• Leave with focused view of
how to improve marketing
temporary contract
• Allow in-house control
• Will only recommend, no
physical work after
completion
• Hire Full-Time employee
• Most control
• Most costly including
benefits
Implementation: Costs Associated
(Marketing)
• Cash-on-hand needed for
off-season
• Average $600,000
revenue with $460,000 of
expenses
• Recommend expending an
additional 2.5% revenue
towards Marketing
Expense Rate (Current):
Savings Rate (Current):
Suggested Mkt Expense Added (Mo)
Annual Mkt Expense (Total):
New Exp (Mo.):
Expense Rate (New):
Savings Rate (New):
New Rate
76.79%
23.21%
$ 14,981.33
$ 179,775.92
$ 475,144.60
79.29%
20.71%
Current Rate
Expense Rate (New):
Savings Rate (New):
Expense Rate
(Current):
Savings Rate
(Current):
Implementation: Steps Required
(Strategic Development Group)
• Select Top Consultants
• Slowly diverge focus from
current projects to
formation of group
Founders:
Judi and Len
• Placement of team as
subset of founders, but
not directly in
management of projects
• Work towards 25% of
work week focused on
development of firm
Strategic
Management
Group
Project Lead 1
Project Lead 2
Project Lead 3
Implementation: Costs Associated
(Strategic Development Group)
• Do not foresee any direct costs associated
• Inherent “opportunity cost” in diverging lead engineers
towards future development
• Allows the firm to leverage experience and focus more
time on long-term development and planning for firm
Feasibility of Recommendation
• Abilities
• Resources for 3D Scanning
• Financial Stability
• Barriers
• Financial Practices
• Structural Change
• Desired Results
• Increased Competitive Advantage
• Increased Employee Knowledge
• Feasibility- Moderately High
Final Call to Action
• Strategic Development Team
• Increased marketing expenditure