1. Redhawks Consulting Goodwill Industries of Greater Grand Rapids, Inc Mission: “Changing lives and communities through the power of work.”

2. Key Concern To determine how Goodwill Industries of Greater Grand Rapids, Inc. shall move forward with used book sales

3. 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

4. Outline Key Concern Strategic Planning Goals Market Analysis Decision Gate Approach Alternatives Recommendations Implementation Contingency Budget Summary

5. PESTEL Analysis

6. 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 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 Opportunities Advancement in technology allows for possibility of online book sales Utilize large warehouse space as sorting center for book-selling operation Threats Other resale shops and online stores offering similar products Customers researching resale value of items, such as books

7. Porter’s Five Forces Suppliers People donate unwanted items Retail stores with unwanted items, Example: Target New Entrants None known Buyers Consumers looking for discounted or second- hand goods Typically, low-income families or college students New homeowners Bargain hunters Substitutes Homemade goods (clothing, furniture, home goods, etc) Industry Competitors Church rummage sales Other thrift or resale shops Online stores Yard or garage sales Classified ads

8. Marketing Mix Product - Donations of used clothing, household goods, books, electronics, and other items Place - 14 retail stores - 1 outlet store - Online shop - 4 drop-off centers - Central warehouse Price - 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 Consumer - Low-income families - Bargain hunters - College students/new homeowners

9. Decision Gate Approach Remain the Same YesNoOnline SalesYesMonsoon as isAmazonSelf-made Monsoon Modified No Pricing Structure Change

10. Decision Gate Approach Remain the Same YesNoOnline SalesYesMonsoon as isAmazonSelf-made Monsoon Modified No Pricing Structure Change

11. 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 FactorsRank Goal 1: People-Centric Services that build Self- Sufficiency O Goal 2: Best workforce to achieve the mission O Goal 3: Financial Resources to sustain Goodwill - Goal 4: Effective Business Structure - Goal 5: Mission is understood and supported by community O Mission and Vision Statements +

12. Alternative 2: Change of Plan Ability to influence key success factors through other alternatives Key Success FactorsRank 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 +

13. Decision 1 WeightAlternative 1: Current Plan Alternative 2: Change of Plan Goal 1: People-Centric Services that build Self-Sufficiency.12 20.2430.36 Goal 2: Best workforce to achieve the mission.12 20.2430.36 Goal 3: Financial Resources to sustain Goodwill.12 10.1230.36 Goal 4: Effective Business Structure.12 10.1230.36 Goal 5: Mission is understood and supported by community.12 20.2430.36 Mission and Vision Statements.40 31.231.20 Total 2.163.00

14. Decision Gate Approach Remain the Same YesNoOnline SalesYesMonsoon as isAmazonSelf-made Monsoon Modified No Pricing Structure Change

15. 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 FactorsRank 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 +

16. 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 FactorsRank 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 -

17. Decision 2 WeightAlternative 3: Online Sales Alternative 4: Not Online Goal 1: People-Centric Services that build Self-Sufficiency.12 10.1230.36 Goal 2: Best workforce to achieve the mission.12 30.363 Goal 3: Financial Resources to sustain Goodwill.12 30.3610.12 Goal 4: Effective Business Structure.12 30.3610.12 Goal 5: Mission is understood and supported by community.12 10.1230.36 Mission and Vision Statements.40 31.210.40 Total 2.521.72

18. Decision Gate Approach Remain the Same YesNoOnline SalesYesMonsoon as isAmazonSelf-made Monsoon Modified No Pricing Structure Change

19. Alternative 5: Use of Monsoon Increases average selling price Decreases salvage materials Employs three full- time non-participant workers Utilizes Amazon for selling and shipping Extensive fees Key Success FactorsRank 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 O

20. 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 FactorsRank Goal 1: People-Centric Services that build Self- Sufficiency - Goal 2: Best workforce to achieve the mission O 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

21. 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 FactorsRank 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 +

22. 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 FactorsRank 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 +

23. Decision 3 WeightAlternative 5: Use Monsoon Alternative 6: Amazon Plan Alternative 7: Self-Creation Alternative 8: Modified Plan Goal 1: People-Centric Services that build Self-Sufficiency 0.121 1 30.363 Goal 2: Best workforce to achieve the mission 0.1230.3620.2410.1230.36 Goal 3: Financial Resources to sustain Goodwill 0.1230.363 10.1230.36 Goal 4: Effective Business Structure 0.121 1 30.3610.12 Goal 5: Mission is understood and supported by community 0.121 1 30.363 Mission and Vision Statements 0.4020.820.2431.203 Total 1.881.762.522.76

24. Recommendation Remain the Same YesNoOnline SalesYesMonsoon as isAmazonSelf-made Monsoon Modified No Pricing Structure Change

25. 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

26. 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

27. Implementation Budget Revenue Selling $ 136,608.00 Shipping $ 136,266.00 Total: $ 272,874.00 Expenses Amazon $ 20,491.20 Transaction Fee $ - Monsoon $ 9,550.59 Shipping $ 102,114.00 Wages & Benefits $ 84,756.00 Supplies $ 9,384.00 Office Equipment $ 2,352.00 Maintenance $ 240.00 Total: $ 228,887.79 Profit $ 43,986.21

28. Contingency Budget Revenue Selling $ 136,608.00 Shipping $ 136,266.00 Total: $ 272,874.00 Expenses Amazon $ - Transaction Fee $ - Monsoon $ - Shipping $ 102,114.00 Wages & Benefits $ 100,000.00 Supplies $ 9,384.00 Office Equipment $ 2,352.00 Maintenance $ 240.00 Initial Set-up $ 80,000.00 Total: $ 274,090.00 Profit (Loss)-$ 21,216.00

29. Redhawks Consulting Goodwill Industries of Greater Grand Rapids, Inc Mission: “Changing lives and communities through the power of work.”