Transcript Document
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”