Redhawks ConsultingSouk el Tayeb“Good Food Market”

The Challenge

How to generate income while maintaining the mission

of social enterprise

I. AnalysisI. PESTLEII. SWOT AnalysisIII. The CompanyIV. Financial Analysis

II. Alternatives

III.Recommendation

IV. Implementation

.

Table of Contents

Population

• 3,9 million people• 1,154% population growth• 95% Arab • 87,4% literacy rate

External Analysis

Ecological

• Plentiful farm land• Dust storms• Sand storms• Soil erosion• Air pollution from vehicular

traffic

Social

• Family-oriented• Arabic-speaking• 59,7% Muslim, 39% Christian• Republic nation

Economic

• 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

PESTLE

Strengths

• Using food to support sustainable agriculture and living*

• Strong vision and mission• Human capital

* Distinctive competency

Weaknesses

• Limited resources• Low margin for profitability

Opportunities

• Expansion into other markets

• Growing interest in sustainability• Lack of local competitors

Threats

• Environmental factors• Governmental regulation• Price of organic food

Strengths

• Using food to support sustainable agriculture and living*

• Strong vision and mission• Human capital

* Distinctive competency

Weaknesses

• Limited resources• Low margin for

profitability

Strengths

• Using food to support sustainable agriculture and living*

• Strong vision and mission• Human capital

* Distinctive competency

Weaknesses

• Limited resources• Low margin for profitability

Opportunities

• Expansion into other markets

• Growing interest in sustainability

• Lack of local competitors

Threats

• Environmental factors• Governmental regulation• Price of organic food

Strengths

• Using food to support sustainable agriculture and living*

• Strong vision and mission• Human capital

* Distinctive competency

Weaknesses

• Limited resources• Low margin for profitability

Opportunities

• Expansion into other markets

• Growing interest in sustainability• Lack of local competitors

Threats

• Environmental factors• Governmental regulation• Price of organic food

External/Internal Analysis

SWOT Analysis

Internal Positive

Vision Mission

Mission Action Items

“Celebrating food and tradition that unite communities while supporting small-scale farmers and producers.”

Fostering innovative, environmentally sound, socially responsive and economically viable food-related initiatives.”

• 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

The Company

Internal Analysis

Financial Analysis

Internal Analysis

2010 2011 Pro forma *Total Revenues 518.215,00$ 575.551,20$ Food and Beverage costs (50%) 234.518,00$ 276.559,20$

Operational Costs (inclduing Staff Salaries) 168.510,00$ 257.668,80$ Total Operational Costs 403.028,00$ 534.228,00$ Founders Salaries -$ 40.053,60$ Net Income 36.243,00$ 38.164,80$

* Projected from January - May 2011 Results

Financial Condition

Souk el Tayeb

Expand producer network

New business venture

Alternatives

Decision Gate

Expand producer network

AdvantagesDisadvanta

ges

Aligned with social mission

Not cost effective

Less inital risk Less long-term impact

Non-revenue generating

Alternatives

New business venture

Advantages Disadvantages

Revenue-generating

Higher initial cost

Increases financial viability

Inexperience in composting

Increases support of producers

Decision 1

Souk el Tayeb

Expand producer network

New business venture

New venture in other location

New venture in Beirut

Alternatives

Decision Gate

New venture in other location

AdvantagesDisadvanta

ges

Aligned with social mission Higher cost

Expansion of audience

Unfamiliarity in other areas

Higher risk

Alternatives

New venture in Beirut

Advantages Disadvantages

Aligned with social mission

Smaller expansion of

audience

Local contacts

Familiarity with area

Less cost

Decision 2

Souk el Tayeb

Expand producer network

New business venture

New venture in other location

New venture in Beirut

Catering business

Grocery store

Restaraunt expansion

eco-waste management

Alternatives

Decision Gate

Alternative #1

Start a catering business

Alternative #2

Partner with a grocery store

Alternatives

Alternatives

Alternative #3

Expand Tawlet into a full-service restaraunt

Alternative #4

Start an waste management business

with composting

Alternatives

Catering Grocery Store

Restaurant Expansion

Compost

Key Success Factor

Rating Rank Total Rank Total Rank Total Rank 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 2,875 4,700

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.

WEIGHTED Competitive Strength Analysis

Alternatives

Alternative #4

Start-up venture – Waste management /

Composting

Recommendation

.

• Planting & Farming

• Harvesting

• Food• Fertilizer

Production (Farmers)

Distribution(Farmers Market)

Product Use(Restaurant

s)

Waste Managemen

t(Compost)

Process Life Cycle

Recommendation

Financial Analysis

Internal Analysis

Worst Case Most Likely Case Best Case 2011 5% Growth 15% Growth 30% Growth

Total Revenues 575.551,20$ 604.328,76$ 661.883,88$ 748.216,56$ Food and Beverage costs (50%) 276.559,20$ 290.387,16$ 318.043,08$ 359.526,96$

Operational Costs 257.668,80$ 270.552,24$ 296.319,12$ 334.969,44$ Total Operational Costs 534.228,00$ 560.939,40$ 614.362,20$ 694.496,40$ Founders Salaries 40.053,60$ 42.056,28$ 46.061,64$ 52.069,68$ Net Income 38.164,80$ 40.073,04$ 43.889,52$ 49.614,24$

2012 Projections

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

Implementation

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

Implementation Timeline

Short 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

Implementation Timeline

Medium-Long Term

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

Contingency Plan

SummaryStart-Up Venture

Waste Management/Composting

Redhawks ConsultingSouk el Tayeb“Good Food Market”