Transcript ARAMARK - Villanova University

ARAMARK
A world leader in managed
services.
A brief look . . .
Aramark manages
operations which
support the
customers’ enterprise.
They provide many
different types of
services.
Aramark allows
businesses to focus
on their core
competencies.
Aramark believes
each client is an
unlimited partnership.
They understand their
clients needs.
Who they provide service for . . .
Businesses
Childcare
Conference Centers
Convention Centers
Correctional Facilities
Employee
Refreshments
Employee uniform
needs
Facilities
Healthcare
Higher Education
K-12 School Districts
Sports and
Entertainment
Facilities
State and National
Parks and other
tourist attractions
Goals and Vision
Aramark’s Goal:
– To become nothing less than an indispensable part
of our partners success creating and adding
measurable value to everything we do.
Aramark’s Vision:
– A company where people want to work.
– Customers who recommend us to others because
we constantly exceed their expectations
– Success measured in growth of the company, its
earning and ourselves.
– The world leader in managed services.
Core Competencies
Fortune magazine ranked ARAMARK as
the #1 outsourcing services company and
one of the Top 50 "Most Admired
Companies in America."
Food Services and Facilities Management
Uniforms and Career Apparel
Educational Resources and Childcare
Food and Facilities
Aramark Offers a multitude of facilities
management options, serving:
– Convention Centers, Conference Centers,
Healthcare systems, Prisons, Sports venues,
Tourist Sector
– Everything from Administration to Physical
maintenance
Food Services are also available for those
facilities mentioned above
Uniforms and Career Apparel
Full variety of apparel to suit any business
or organization, including (but not
excluding) those mentioned earlier
Full range of options, sizes, programs,
payments to suit any and all company
– Apparel One Program
– Includes work with:
WearGuard (manufacturing)
Crest Uniform (healthcare & restaurant)
Galls, Inc. (public safety)
Educational Resources and
Childcare
30 years experience providing
comprehensive educational opportunities
and workplace childcare
Offers outsourcing opportunities for food,
administration, facilities, and auxiliary
services (i.e., busing, after school care) to
schools from kindergartens to universities
Overview of Business lines
Business
Childcare
Conference Centers (Villanova Conference center)
Convention Centers
Health Care
Sports and Entertainment
State and National Parks
Education (K-12 and higher level)
Business
Conference Center Management
ARAMARK manages every detail of a conference
center's needs so that attendees can easily focus on
business at hand.
Uniforms & Career Apparel
Facilities Management
ARAMARK's experienced cleaning staff
keeps offices clean and orderly, contributing
to a building's overall safety.
Every employee apparel need can
be met by ARAMARK's Apparel One Business Office Services
program.
ARAMARK meets every office need from faxing
and express mail -- to photocopying and audio
visual services with quality and speed, while
providing both time and cost savings.
Education K-12 & Higher
Food Management
From food courts to retail food
stores, ARAMARK offers a
diverse array of innovative
dining programs and culinary
expertise to satisfy the everyday
needs of your campus
community.
Facilities Management
From Comprehensive Facilities
Management to Strategic Facilities
Planning, ARAMARK creates
customized solutions that protect and
enhance your physical assets.
Stadium Management
Everyone wins with ARAMARK's complete
service package for all on-campus events.
Auxiliary Services
Since ARAMARK partnerships have no limits,
schools can work with ARAMARK to meet
various other needs such as: before & after
school care, warehousing, lunch room
monitors, mailroom and crossing guards.
Healthcare
Food & Nutrition Management Services
ARAMARK can manage any or every
aspect of your foodservice operations
for your patients, staff and visitors.
Business Office Services
ARAMARK meets every office need from
faxing and express mail -- to photocopying
and audio visual services with quality and
speed, while providing both time and cost
savings.
World Class Patient Service
ARAMARK’s World Class Patient
Service sets a new standard for the
delivery of support services.
Sales
Fiscal 2000
Sales by Segment
dollars in millions
Food &Support Services- US
Food &Support Services- International
Uniform and Career Apparel-Rental
Uniform and Career Apparel-Direct Marketing
Educational Resources
$
$4,396.30
1,001.90
969.6
455.7
439.4
7,262.90
Fiscal 2001
%
$
61% $4,782.10
14
1,109.30
13
995.2
6
438.8
6
463.3
100% $7,788.70
Fiscal 2002
%
$
61% $5,674.50
14 1,200.80
13 1,004.20
6
434.5
6
455.8
100% $8,769.80
%
65%
14
11
5
5
100%
Percentage of Income by Segment
Fiscal 2000
Operating Income by Segment
$
Fiscal 2001
%
$
Fiscal 2002
%
$
%
(dollars in millions)
Food & Support Services-US
$244.50
58%
$264.70
60%
$326.70
58%
40.2
10
39.4
9
46.3
8
118.5
28
119.7
27
121.9
22
Uniform and Career Apparel-Direct Marketing
10.8
2
15.6
4
22.6
4
Educational Services
32.3
8
25.4
6
29.2
5
446.3
106
464.8
106
546.7
97
-26.7
-6
-25.3
-6
-30.1
-5
0
0
0
0
43.7
8
$419.60
100%
$439.50
100%
$560.30
100%
Food & Support Services-international
Uniform and Career Apparel-Rental
Corporate and other
Other income
Financial Highlights
In fiscal 2002, sales increased to $8.8
billion, which was a 13% increase from
2001.
In 2002, net income had increased from
$176.5 million in 2001 to $ 269.9 million.
Results reflect the success of the U.S.
Food and Support Service Sales, lower
interest rates, and lower financial costs.
Food and Facilities
Aramark Offers a multitude of facilities
management options, serving:
– Convention Centers, Conference Centers,
Healthcare systems, Prisons, Sports venues,
Tourist Sector
Food Services are also available for those
facilities mentioned above
Uniforms and Career Apparel
Full variety of apparel to suit any business
or organization, including (but not
excluding) those mentioned earlier.
Full range of options, sizes, programs,
payments to suit any and all company.
Educational Resources and
Childcare
30 years experience providing
comprehensive educational opportunities
and workplace childcare.
Comprised of three divisions: Early Care/
Education, School Partnerships and
Work/Life Partnerships.
Offers outsourcing opportunities for food,
administration, facilities, and auxiliary
services (i.e., busing, after school care) to
schools from kindergartens to universities.
Aramark Bundling - Products
Aramark is strictly a services firm
All services we sell are stand
alone in the sense that we do not
sell them with products
Aramark Bundling - Services
All bundling takes place with the services
themselves
Core Competencies:
– Food and Facilities
– Uniform and Career Apparel
– University and Educational
Business tend to have more than one
need, so Aramark provides more than one
solution by bundling services together
TARGET MARKETS
Businesses and Employees
Serves several million people annually at
about 1,200 business, industry, and
government locations.
Businesses utilize restaurant/dining
services, coffee service/vending,
conference center management, facilities,
fitness/recreation, business office
services, uniforms, and childcare
Businesses and Employees
Aramark Harrison
Conference Centers
Bank One-serves 30,000
employees at 30
locations in 12 states
Also serves 700 Bank
One locations coffee
Aramark also manages
Tyson Foods uniforms,
saving $500,000 a year
Correctional Facilities
1 million meals daily to 300,000 inmates
at more than 325 facilities in North
America
Help state, county, and municipal clients
improve quality and lower costs
Food services, facilities management
services, commissary services,
uniform/equipment (Gall’s Inc.)
More Correctional Facilities
United States Mint Police (Denver)- “best
dressed” police force in federal gov’t
Standardize uniforms of 450 officers at 6
locations nationwide.
Healthcare
Provides non-clinical support to 1,200 hospitals,
long term healthcare systems, and assisted
living communities in North America
Food/nutrition services, clinical equipment
maintenance, housekeeping, patient
transportation, laundry, World Class Patient
Service, employee uniforms, office services,
and childcare
Healthcare
Silver Cross Hospital-Joliet, Illinois
Reduced equipment costs with on site
managers and raised client satisfaction
25%
Customized food service
Child Education
Offers preschool and school-age learning
programs
Services schools with food service,
custodial services, grounds keeping,
plant/operations, auxiliary services, and
Medallion School Partnerships (over 500
elementary schools)
Child Education
Big Brother Big
Sisters of America
Houston
Independent School
District
Colleges/Universities
Over 350
Residential services, retail operations,
convenience stores, and coffee kiosks
Facilities, stadium management, conference
center management, vending/refreshments,
uniforms, childcare, office, services, and
Harrison Collegiate Collection(17 district
properties)
Boston University-The Fresh Food Companyconcession profits 30%, food ranked best in
U.S.
Sports/Entertainment
170 sports and
entertainment
venues, convention
centers, recreational
sites
36 professional
sports arenas, 29
convention centers
Catering, banquet
services
State/National Parks
15 national state parks
Recreational and lodging services
Services Lake Powell Resorts & Marinas
and Shenandoah National Park
International
Belgium, Canada, Germany, Japan,
Spain, United Kingdom, exc.
Vodafone in Germany
Partnership has expanded form one site
to nine
Marketing Channels
The field operations received the benefit of
assistance in developing tools:
– print advertising, direct mail, sales promo
materials and public relations.
Assistance is also provided in the
coordination of local partnerships,
strategic alliance with national brands, the
integration of ARAMARK proprietary
brands and customized menus.
Digital marketing agency Sharpe Partners has
been tapped by Aramark to handle interactive
marketing for its convention and tourism
services.
The assignment will initially focus on the 14
National Park destinations Aramark manages
(including Lake Powell, Denali National Park &
Preserve and Ellis Island), with Sharpe Partners
providing online strategy, media buying, and
creative development.
"Sharpe Partners' expertise in
strengthening brands online is critical in
today's business environment as more and
more consumers are turn to the Internet
for information and purchases.”
– Joseph DiVincenzo, VP of marketing
convention and tourism services at Aramark.
What is Synergy?
syn·er·gy n. pl. syn·er·gies
1.The interaction of two or more agents or forces
so
that their combined effect is greater than the sum
of their individual effects.
2. Cooperative interaction among groups,
especially among the acquired subsidiaries or
merged parts of a corporation, that creates an
enhanced combined effect.
Synergy Service
It is a new service offered by Aramark that will provide
companies with various levels of IT service.
Scalable
– Able to scale service to any size of business
Make use of current available assets
– Benefits from the Aramark good name and able to make use of
huge international resources.
Dynamic
– Changing with technology and keeping up with the high speed
of business
Synergy specifics
Providing service and
support for companies in
the area of:
–
–
–
–
–
–
–
–
–
Email administration
Software support
Network administration
Network security
Hardware support
Database administration
Website administration
E-Commerce administration
And much more
Services depth:
– Heavyweight coverage
Having total coverage of
all of a companies IT
needs. From total
hardware/software
support, to entire network/
database administration
– Lightweight coverage
Simple coverage can be
as simple as email or
website administration
Synergy Dovetailing
Just as the word means 1.The interaction of two or more agents or
forces so that their combined effect is greater than the sum of their
individual effects.
Aramark would work closely with client companies to create a new
entity that would be more successful than before.
Important to dovetail and understand workings of each client
company.
•Companies have great flexibility in what service they
could purchase.
•Companies would have the option of leasing or
purchasing there equipment.
•Purchasing equipment gives companies freedom
and the final say as to what to do.
Looking at Aramark’s Offerings
Restaurant & Dining
Services
Coffee Service & Vending
Conference Center
Management
Facilities Management
Fitness & Recreation
Business Office Services
Uniforms & Career
Apparel
Where to focus and Why
Conference Center
Management
Business Office
Services
Growing markets
Many changes in the
environment
Service Evaluation
Criteria
Weight
Must
Aramark Vision
10
Qualified personnel
10
Fits needs
9
Should Customized to fit
9
Value pricing
8
Customer involvement
7
After service followup
6
Nice
Physical evidence
5
64
Fits All Must Haves?
(yes or no)
Computer Service
Functional Robots
Times
Times
Score
Weight
Score
Weight
10
8
10
5
9
6
9
3
8
5
7
4
6
3
4
5
63
39
yes
no
Travel Agents
Times
Score
Weight
10
8
8
8
7
7
4
3
55
no
Testing the Concept
Questionnaire (7 questions)
– How satisfied are you with your companies IT needs?
– How much do you feel that it could be improved?
– How strongly do you feel that technology could
improve efficiency and they way you do business?
– How likely would your company be to consider an
inexpensive yet very reliable alternative to internal IT
management?
Interviewing several companies in different
areas
Concept Testing and Evaluation
What types of companies need service?
Challenging!
Starting point: Tyson Foods, Inc.- satisfied
customer of 120,000 employees
Asked Tyson:
Would they consider using this service?
How critical is IT?
Problems with IT?
Would other companies benefit?
More Concept Evaluation
Conclusion from
Tyson Foods:
– Already have nation’s
most comprehensive
groups- reliable own IT
group
– Critical to business,
but already have it-not
target audience
– Advice: Target smaller
businesses
Concept Evaluation
Next- Talk to small company- Natexis
Bleichroeder, Inc.- brokerage firm of 165200 employees
Questions:
– Same questions- Are they satisfied with IT?
– Can improvements be made?
– Would they use service?
More Concept Development
Conclusions:
– Have there own IT department –propriety system
– If they were to outsource IT they would need
expertise and professionals that understood their
unique business requirements-no problems with
system
– Want an intense portfolio of references and
businesses serviced
– Advice: Target small companies that don’t intensely
rely so much on IT for businesses functions, but still
need those services. To service this firm much
expertise in field.
– Target firms that have problems with IT infrastructure
Still More Concept Testing
Conduct a survey of 12
small companies in the
area:
Manufacturing and
Industrial Supplies
– Methods Research
Products Co
– Whitford Corp
– Orb Industries
– Plastics Consulting &Mfg
Co
– Epoplex
Sciences and Technology
Services Equipment
– Environmental Equipment
&Svc
– Max-E-Mil Inc
– Warehouse Gallery
– Ect Mfg Inc
– Enviropore
– Monmouth Marketing
– Ricci Telephone Research
Concept Evaluation : Survey
Results
7 out of 12 companies are not satisfied
with their IT infrastructure
8 out of 12 companies think their IT
system needs to be improved
6 out of 12 companies recall their
infrastructure failing
7 out of 12 thought they would use
technology if it was simple and
inexpensive to implement
Small Business Profile:
United States
In 2001, the number of
small business increased
by 1.6 percent.
Employer businesses
numbered 5,819,300 in
2001.
99.7% of businesses in
the nation were small.
Small businesses
employed 55,729,092 or
50.3% of the nation’s
110,705,661 employees
(non-farm private sector)
in 1999.
Proprietors’ income- a
partial measure of small
business income- totaled
$745.1 billion in 2001, an
increase of 4% over
2000.
Small Business Profile:
Pennsylvania
The number of employer
businesses in 2001
increased by 2.3%, and
the number of selfemployed increased by
an estimated 7%.
Most recent data by firm
size(1999) indicated that
98.4% of businesses in
the state were small.
Small businesses
employed 2,505,861 or
50.3 percent of the state’s
4,986,591 employees
(non-farm private sector)
in 1999.
Proprietors’ income- a
partial measure of small
business income- totaled
$32.8 billion in 2001, an
increase of 3.2% over
2000.
Synergy Target Markets
Small Business Target Markets
– Manufacturing
– Transportation and Warehousing
– Real Estate
– Educational Services
– Professional, Scientific, Technical services
– No necessary emphasis on IT, Technological
lines of business
Advantages of Aramark infrastructure,
reputation
Sizing Criteria
Small Business Stats:
Categories
Professional…
Services
Educational
Services
Real Estate
Transportation
/ Warehousing
Manufacturing
Number
Market Size, US
Number of Firms (Thousands)
20000
15000
Series1
10000
5000
Series2
Series3
0
Categories
Professional…
Services
Educational
Services
Real Estate
Transportation
/ Warehousing
Manufacturing
Number
Market Size, PA
Number of Firms (Thousands)
1000
800
600
400
200
0
Series1
Series2
Series3
Future Targets
Larger Businesses
School Districts
–Contract Issues