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White Rock Skimboarding Proposal

White Rock Skimboarding Proposal

Develop a Proposal for Whiterock Skimboarding client using the Proposal Sample Template: The paper must be written in APA 7th Edition format. Title page with name of course, case and student name/number, date, submission information. Background and understanding or problem Project purpose and scope Approach and workplan/process Project fees and schedule Anticipated outcomes and benefits Consultant credentials.

White Rock Skimboarding: Fighting the Changing Tides

David A. Brooks wrote this case under the supervision of Julie Gosse solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Bus

It was August 2017, and White Rock Skimboarding (WRS) owner and Ivey Business School graduate Alex Dobbie was wrapping up another successful season of skimboarding and preparing to head to Toronto, Ontario, to begin working in the consulting industry. Dobbie was excited to begin this next stage in his career, but he continued to formulate plans, hoping to guarantee that the company he had founded would have many successful summers in its future.

SKIMBOARDING
Similar to surfing, skimboarding involved using a board, which could be made of a variety of materials, to glide across the water’s surface. Skimboards differed slightly in design from surfboards, as they were more rounded in shape and did not have underside fins. Despite the smaller design of the boards, skimboarders could still perform impressive tricks such as spins, flips, and jumps.

Skimboarding had begun in the 1920s in Laguna Beach, California, when lifeguards skimmed over the seashore on planks of wood. The sport grew in popularity throughout the 1960s and 1970s, when professional competitions began emerging. Skimboarding gained further media exposure in the 1980s and 1990s, including being on the cover of Sports Illustrated, the development of Skim Magazine, and early websites such as SkimOnline.

Skimboarding was divided into two main categories: ocean skimboarding and flatland skimboarding.2 Flatland skimboarding was developed after ocean skimboarding had been well established. Rather than skimming on the open ocean, flatland skimboarding focused on skimming across pools of shallow water, often created by receding tides, such as those found in White Rock, British Columbia (BC). WRS primarily focused on flatland skimboarding; however, as the tides came in, ocean skimboarding could also occasionally be performed.

Skimboarding’s popularity remained consistent within coastal communities. Competitions and championships were held around the world and were often sponsored by global and local skimboard manufacturers. (Excerpt)

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A Consulting Proposal for White Rock Skimboarding

Client Title: Owner, White Rock Skimboarding

Date: August 14, 2020

 

Dear Mr. Alex,

Re: A Consulting Proposal for White Rock Skimboarding

Thank you for the opportunity to present a consulting proposal for White Rock Skimboarding. The review of the WRS’s financial performance reveals that the business has enjoyed substantial growth and success in the last four years. A similar growth trajectory could still be maintained even after the owner transitions into a new consultancy career in Toronto. Having reviewed the company information, business environment, growth potential, and competitive landscape, the consulting proposal will examine two options that will enhance the success and stability of the summer business in the next fiscal year and in the long-run. The proposal is subdivided into eight major sections namely, background and understanding of the problem, present company situation, SWOT analysis, project purpose and scope, approach and work plan, schedule and fees, anticipated outcomes and benefits, and credentials.

The primary purpose is to create a feasible business plan for expansion to the Centennial Park location and production of custom-made WRS skimboards. The business plan will provide greater clarity on all business elements, from partnerships, operations, value proposition, products, marketing, and financial projections needed to support decision making for expansion and diversification strategies. The successful implementation of the business plan will allow successful business growth due to higher revenues, increase in market size, market share, cost savings and strong brand image, while pursuing a consultancy career in Toronto.

I highly appreciate your evaluation and consideration of the consultancy proposal. Please accept the terms and conditions by signing the proposal agreement form. Lastly, a meeting can be scheduled to discuss the business plan in detail and address any possible concerns.

Thank you.

Yours sincerely

Name of Student

 

A Consulting Proposal for White Rock Skimboarding

Background and Understanding of the Problem

At the end of August 2017, Mr. Alex Dobbie, the owner of White Rock Skimboarding and Ivey Graduate, wrapped up another successful summer skimboarding season and was ready to head to Ontario to launch a career in the consulting industry. In 2014, Alex established White Rock Skimboarding when he was18 years old to capitalize on the broad audience of children who visited the White Rock Beach to watch the skimboarders skim and practice their tricks like jumps, spins, and flips. While attending university, he returned every summer to ensure smooth operations and support his company’s growth. The revenues are generated from the WRS day camps that target children between 7 to 14 years, private lessons, skimboard rentals, and merchandise sales obtained from all age groups. The direct competitor was Kayotic Skimboards that sold skimboards, operated rival skimboarding camps, and offered private lessons in White Rock, Tsawwassen, and Vancouver. The indirect competition consisted of summer camps, sports leagues, vacation destinations, and summer school programs for children and families.

In August 2017, Alex formulated long-term plans while considering several options for ensuring a successful and stable summer business in the next year and continued growth in the future. In the last four years, WRS has enjoyed substantial growth and success, as evidenced by its strong financial performance. But, the owner was transitioning into a consultancy position in Toronto. Alex was uncertain about the logistics of maintaining White Rock Skimboarding’s operations in the future as he would be compelled to run the company remotely. He considered four options: maintenance of the status quo, expansion to beaches in other territories, ordering and selling custom-made skimboards, and selling or transferring the business. Alex was optimistic about the company’s future, and the final decision would profoundly impact employees, campers, and the local community.

Present Company Situation

At the end of the fiscal year, August 2017, White Rock Skimboarding’s total revenues and net income amounted to $11,752 and $6,957. Since 2015, the company has consistently generated profitable financial results. In 2017, WRS reported a significant decline in revenues generated from summer camps from $14,595 to $9,660, but the revenues from private lessons, board rentals, board sales, and t-shirt sales grew by 531%, 6.35%, 22%, and 18%. In 2018, Dobbie predicted that the camp revenues would decline to $9,000, whereas private lesson revenues will increase by a minimum of 20%. In summer 2017, the rentals for boards was 18 hours and was projected to increase by 50% in the next summer. The sales obtained from t-shirts would decline to $300, but an additional seven skimboards would be sold in 2018. The business license and other expenses are expected to remain constant, but the staff expenses are projected to increase to the 2016 sales percentage.

SWOT Analysis

A preliminary SWOT analysis will reveal the multiple strengths and weaknesses as well as opportunities and threats currently facing White Rock Skimboarding.

  1. Strengths

One of the main strengths is the higher demand for skimboarding in White Rock City, British Colombia, which has led to sold-out day camps and repeat business every summer. The business enjoys a reputable brand image and loyalty among the local customers and the community. The area is suitable for both flatland and ocean skimboarding when there are receding tides and full tides. Skimboarding has gained immense popularity among coastal communities where festivals, competitions along with local and global skimboarding championships are held regularly. Furthermore, White Rock has a large population that consists of younger families, primarily the target market. The city is busy during the summer, as it is one of the popular destinations for locals and out-of-province tourists. Another strength is the owner’s university knowledge and expertise gained by working in diverse industries, which has enabled smooth operations and continued growth. Also, proficient seasonal employees are well trained in all aspects of running a successful business. The company’s product portfolio is well-diversified as it includes day camps, private lessons, rentals, and merchandise sales. The ultimate strength is the availability of personal savings to finance the expansion of the business.

  1. Weaknesses

The primary operations are the day camps that run for a limited period of two months out of an operating season that spans from May to August every year. The day camps are at the mercy of the ocean since the high ocean tide makes it impossible for flatland skimboarding throughout the summer. Also, the business operations are restricted to the White Rock beach only. WRS does not manufacture branded skimboards that could be rented and sold to the public. Thus, there is an overdependence and other downside risks of buying the basic Channel One Skimboards from its direct competition. The potential increase in the prices of skimboards has an adverse impact on the margins. Finally, the absence of the owner in running the business in next summer could have an adverse effect on the normal operations.

  1. Opportunities

There are vast opportunities that could be tapped to support the future growth of WRS. First, the company could partner with local manufacturers to produce a line of quality WRS branded skimboards that are custom-made and reasonably priced. This presents an opportunity to legitimize the company as a robust brand further. The growth projections for the next years reveal that the public board rentals and sales will increase considerably hence, increasing the total revenues and earnings. Also, there are opportunities for expansion to other beaches and communities to increase the market share by tapping into a large customer base. The potential markets include Centennial Park, Spanish Banks, Dundarave Beach, and Crescent Beach.

  1. Threats

The main threats of the business are highly competitive landscape.  The direct competition is Kayotic Skimboards that sells high quality skimboards, operates rival skimboarding camps, and offers private lessons in White Rock, Tsawwassen, and Vancouver. Indirect competition consists of  over 200 summer camps, sports leagues, vacation destinations, and summer school programs for children and families. The final threat is the size of the White Rock market is limited and saturated in terms of an established skimboarding culture.

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Project Purpose and Scope

Project Purpose

Owing to vast growth opportunities and high market potential, Alex is exploring additional ways of expanding to support future growth. The proposed consulting project’s primary purpose is to create a feasible business plan for expansion to the Centennial Park location and production of custom-made WRS skimboards. The project seeks to appraise the financial viability of the selected two alternatives before investing a lot of time and personal funds. The proposed business plan will serve as an essential tool that will guide decision-making now and in the future. As a roadmap to future success, the proposed business plan will provide greater clarity on all business elements, from operations, products, marketing, and financial projections.

Project Scope 

Mr. Dobbie is relocating to Toronto; the camp business model could be expanded to Centennial Park, which is only 23 kilometres away. Logistically, it is prudent to expand to one location for the next summer season, which will serve as the basis for warranting any further expansion to the three remaining locations. Furthermore, Dobbie should manufacture and sell a line of WRS branded custom made skimboards to supplement the summer camp revenues and build a strong brand. Since Centennial Park is closest to Toronto, The WRS management and employees have the capability and expertise to maintain the operations with minimal input from the owner. Alex could engage in the everyday running of the summer operations of the new location while still pursuing his career at the consultancy.

The scope of the proposed business plan will articulate the strategy for guiding growth and navigating the expansion into a new market and providing insight on market analysis, recruitment of additional employees, resources for the achievement of corporate goals, three-year financial projections, and timeline of predicted results. The proposed plan will also include assessing the optimal amount that will be allocated for resources needed to capital enhancements and the purchase of new assets. Furthermore, the plan will constitute a feasible marketing plan, including target market breakdown, market projections, marketing strategies, and market penetration in the new location. Finally, the business plan’s scope is to provide the new organizational structure and objectives, which will act as valid reference tools of keeping the management of both locations on track with revenue targets and other operational milestones.

Approach and Work plan /Process

The new business plan seeks to grow the White Rock Skimboarding through expanding to an additional location and selling custom-made branded boards in 2018. The proposed business plan will cover seven critical topics, as illustrated below.

  1. Key Partnerships

This involves identifying businesses and other services that will be needed to support the growth of the business in the next 12 months. The main focus is on the review of suppliers, skimboards manufacturers, subcontractors, and strategic partners.

  1. Key Activities

The second section focuses on how the business will achieve a sustained competitive advantage in Canada’s skimboarding market. This could include selling the custom-made boards directly to consumers, marketing summer camps, and technology needed to tap into the emerging sharing economy.

  1. Key Resources

The third stage encompasses the identification of crucial resources that can be leveraged to generate maximum value for all customers. The most valuable assets include well-trained staff, asset purchases for the new location, intellectual property for the new boards, and capital.

  1. Value proposition

This section will present a clear and persuasive statement on the unique value provided by the White Rock Skimboarding to both markets.

  1. Customer Relationships

This section is a detailed list of the customers who will interact with the skimboarding business in both outlets to create a seamless customer experience. The section will highlight the optimal mix of digital channels used in communicating and engaging with customers.

  1. Customer Segments

This is the target market that will be served in the new location and customers who are most likely to rent and buy the custom-made skimboards.

  1. Financial Projections 

The section will present a summary of cost structure, including the most significant costs and business strategies for reducing the costs and maximization of value. Lastly, the additional revenue streams will be included in the business plan and the three-year financial projections.

Project Fees and Schedule

The project work will commence upon the proposal’s acceptance with completion of the deliverables on the latest November 12, 2020. The approval is required in the five business days of receipt of the proposal to ensure that the final project work will be submitted within the stated time frame. The final project will be accomplished over the three months requiring at least 300 hours of work. The value is estimated at $20,000 based on the extensive scope of the project and the total required work hours.

Phase of the project August September October November Completed by
Set-up         15-Aug-20
Environment scanning         24-Aug-20
Identification of key suppliers         31-Aug-20
Determination of key activities         15-Sep-20
Identification of key resources         30-Sep-20
Value proposition         10-Oct-20
Analysis of customer relationships         20-Oct-20
Customer Segments         30-Oct-20
Financial planning         3-Nov-20
Draft Report and Presentation         11-Nov-20
Final Revisions         12-Nov-20
Submit Final Report         15-Nov-20

 

Anticipated Outcomes and Benefits

Upon completion of the proposed project, a printed copy and electronic file of the business plan will be forwarded.  The outcomes will be the word business plan (approximately 75 pages) and PowerPoint presentation (20 slides) that summarize the executive summary, key results and recommendation. The successful implementation of the proposed business plan will allow Alex to successfully grow his business while pursuing a successful career in Toronto. Expanding the business to an additional location will increase the revenues for summer day camps and private lessons. The sale of custom-made branded skimboards in the two locations will also increase the revenues generated from the sale of merchandise and rentals. The core benefit is the generation of higher revenues for all segments, and, ultimately, the total business revenues will increase as well.  Finally, the business will report an increase in market size, market share, cost savings due to economies of scale, and strong brand image.

Consultant Credentials

The project work will be successfully executed mostly due to the adequate theoretical knowledge and expertise vital to working with clients investigating avenues for supporting the business growth. The consultancy experience includes diagnosing current internal and external factors that impact the core operations, conducting market analysis, assessing customer needs, marketing strategies, and financial planning to deliver effective solutions. The MBA course work applicable in the project includes Project Management, Strategy, Consulting Skills, Business Management, Marketing, and Entrepreneurship.

Conclusion

The proposed business growth plan and diversification of the WRS product offerings will allow Alex Dobbie to pursue a successful career in Toronto and grow his business. In the next fiscal year, he will launch new WRS boards, remotely manage the White Rock location, and engage in active management of the Centennial Park location. The two alternatives will lead to an increase in the resources and stock and yield higher sales and earnings by minimizing external risks such as intense competition, reaching out to new customers and markets, and plowing back into the business.

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