Analyze and report on queries and complex reports for findings, conclusion, and possible strategies Prompt: This assignment tasks you to use the queries and reports you have already generated to autho
Statewide Landscape Design, LLC
Business Scenario
You have recently hired by the board of directors for “Statewide” to be the new Chief Executive Officer and Chairman of the board. The previous CEO had done nothing with the company to get it growing for three years and the board lost patience with him and fired him at the end of another down year in 2016. You come from the landscape business in Wisconsin where you had helped build a family business from $100,000 in sales to over $1,000,000 in sales in less than 3 years. The information below has been accumulated at your request regarding the state of Statewide’s business
Company Structure
There are 15 employees in the company o 1 CEO who acts as the president for the company
2 construction supervisors with a combined experience of 25 years in landscape contracting
2 costing managers that visit the potential customer’s site, learn the customer’s needs and build a quote to obtain their landscape or swimming pool business
8 (2 teams of 4) installers that do the actual landscape or swimming pool work o 1 Salesperson with 10 years of experience selling swimming pools o 1 book keeper/secretary
The company has been in business for 10 years and is privately owned and financed by 3 families that make up the board of directors along with two outside directors from major businesses.
The company has traditionally limited itself to doing business in Michigan
The reputation of Statewide has been sliding down due to several contracts that came in late and others that had quality problems with the low-cost filtration systems purchased internationally.
Business levels and profitability – 3-year history
The previous president has projected another “rebuilding year” in 2017 with little to no growth in business, a small increase in profitability and inflation not a factor in Michigan.
The president has reported that other lawn care start-up companies are “stealing”
Statewide’s business and, thus, the business climate is stagnant for your company.
The previous CEO saw little to not opportunity for growth in 2017 and has proposed no significant changes in the business.
The 3-year history of sales, fixed cost, contract costs, pretax profits, and number of contacts along with the previous CEO’s projection for 2017 is stated below
Business Climate in Michigan
Landscape contractors have increased in the state of Michigan by 18%
The market for landscape contracts are expected to be flat to the previous year
There are no known new swimming pool installation contractors
The market for swimming pool installations are expected to be flat to the previous year
The state of Michigan continues to lose jobs to both international competitors and to competitors in neighboring states
The competition in the state of Michigan is becoming more “cut-throat”
Table 1. 3-Year Sales and Profits by market category
| 2014 | 2015 | 2016 | 2017 Projected* |
Total Sales | $2,550,000 | 2,150,000 | $2,023,961 | $2,200,000 |
Fixed costs** | $225,000 | $275,000 | $300,000 | $350,000 |
Contract Costs*** | $1,450,000 | $1,340,000 | 1,700,000 | |
Pretax profits | $875,000 | $535,000 | $56, 825 | $175,000 |
Number of Contr’s | 190 | 175 | 159 | 170 |
* Previous CEO projected budget for 2017 fiscal year
** Includes headquarters building costs, managerial overhead, insurance, and Maintenance of trucks
*** Labor, Materials, and variable overhead (benefits, fuel, rental equipment, etc.)
Table 2. Sales and profit contribution by market segment (2016) (Please Complete)
Contracts by Market Segment | Number of Contracts | Total Contract Amount | Average Contract Amount | Average Contract Profit % | Total Profit Generated | Average Profit Generated |
Landscape |
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Swimming Pool |
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Total |
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Table 3. Sales and profit Contribution by Customer Type (Please Complete)
Market Segment | Number Of Contracts | Total Contract Amount | Average Contract Amount | Average Contract Profit % | Total Profit Generated | Average Profit Generated |
Commercial |
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Residential |
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Total |
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Complete these tables and submit at the end of your Strategic Proposal Narrative.