*SAMPLE* Damaged goods - Business Assessment - Holiday/Fenwick


Published on

Completed as part of a partner assignment in my MBA program. Client was real and received work.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

*SAMPLE* Damaged goods - Business Assessment - Holiday/Fenwick

  1. 1. "Music  has  been  my  education."  -­‐  Mark  Pickerel Management  III  -­‐  Organizational  Change  |  Justin  Fenwick  &  Caitlin  Holliday Introduction Damaged  Goods  is  a  small  record  store  located  in  the  Belltown  neighborhood  of  Seattle,   WA.  The  store  has  been  in  operation  since  January  2010.  While  the  business  has  three   partners,  only  one,  Mark  Pickerel,  is  the  sole  operator  and  manager.  The  other  partners  are   silent.  This  isn’t  your  typical  record  store:  Damaged  Goods  features  several  of  Mark’s   interests  including  vintage  clothes,  pop  art,  posters,  antiques,  books,  records  and  CDs.   There  is  also  an  emphasis  on  box  sets  and  limited  “added  value”  releases.  This  added  value   extends  beyond  special  releases  but  is  deep  into  the  store's  concept,  which  is  a  cultural   experience  with  intentional  cross  exposure  across  different  mediums  of  art.  The   experiences  presented,  whether  as  a  visiting  artist,  the  store's  inventory,  and  other  curated   content,  are  direct  derivatives  of  Mark's  passions  and  interest. Mark  has  a  long  history  in  Seattle's  vibrant  music  community.  This  includes  recording  songs   and  performing  with  various  prominent  groups  and  artists:  Screaming  Trees,  various   members  of  Nirvana,  Brandi  Carlile,  Neko  Case,  The  Dusty  45s,  Jim  Carroll,  Beat  Happening,   Mark  Lanegan,  Carrie  Akre,  Leadbelly,  Truly,  The  Dark  Fantastic,  and  most  recently  Mark   Pickerel  and  His  Praying  Hands.  Additionally,  he  owned  and  ran  Ellensburg's  Rodeo   Records  from  1991  to  2005.  These  efforts  have  left  Mark  with  expert  knowledge  on  the   music  industry  and  making,  or  sometimes  not  making,  a  living  within  it.  Key  areas  of   expertise  include  the  recording  industry,  artist  relationships,  small  business  basics,   successfully  navigating  the  Seattle  music  community,  and  a  deep  musical  education  and   knowledge  of  related  cultural  artifacts.  Mark  has  spent  much  time  behind  the  counter  and   register,  both  in  his  previous  store  and  most  recently  working  for  the  local  Seattle  music   store  Easy  Street.  As  a  result  he  has  a  personal  interest  in  retail  and  the  science  and   behaviors  behind  it.  A  knowledge  base  that  has  served  him  well.  Mark  has  expressed  that   Damaged  Goods  is  an  "advocate  for  artistic  expression"  and  seeks  to  "enrich  people's  lives   with  art,  music,  and  humor."  As  continues  to  be  obvious,  there  is  little  that  separates  Mark   from  Damaged  Goods  and  Damaged  Goods  from  Mark.  Mark  says  that  he  enjoys  "educating   younger  generations  about  and  giving  them  context  for  the  music  he  loves  that  is  now   20-­‐60  years  old."  It's  safe  to  assume  this  is  also  sought  through  Damaged  Goods.  The   distinctions  between  Mark  and  Damaged  Goods  are  subtle,  so  it  may  appear  their  names   are  used  interchangeably. While  not  explicitly  expressed  anywhere,  Mark's  mission  and  vision  for  Damaged  Goods   could  be  summarized  as  the  following,  as  inspired  by  some  of  his  own  words  during   interviews: Mission:  To  facilitate  the  consumption  of  a  healthy  and  well  rounded  musical  diet  that  has   meaning  and  a  broader  cultural  context.  This  requires  a  personal  touch  and  
  2. 2. recommendations  and  a  reverence  for  preserving  obsolete  music  and  artifacts  that  still  has   hipster  and  nostalgic  value. Vision:  To  support  the  local  music  and  artistic  community  by  redebining  music  retail. Core  Issues The  main  issue  of  Damaged  Goods  as  expressed  by  Mark  is  the  lack  of  consistent  foot  trafbic.   This  can  be  rephrased  as  an  issue  of  cash  blow  to  sustain  Damaged  Goods  in-­‐between   special  events  hosted  there,  which  currently  count  for  the  trafbic  that  supports  a  majority  of   the  revenue.  This  more  accurately  is  described  as  an  event.  An  event,  is  highly  visible  and   debines  cultural  perceptions  and  signals  the  need  for  change.1  Damaged  Goods  is   experiencing  a  result  of  underlying  forces  that  are  not  so  readily  visible  that  shape  its   ability  to  generate  sustainable  revenue. As  a  self-­‐debined  record  store,  Damaged  Goods  is  operating  within  an  industry  that  is  both   complicated  and  in  decline.  In  fact,  2009  revenue  growth  in  record  store  industry  saw  a   decline  of  3%  a  trend  that  has  extended  years  before  it.2  CD  sales,  which  make  up  nearly   3/4ths  the  industry's  revenues,  are  in  decline,  while  digital  distribution  models  and  vinyl   sales  are  up.3  The  industry  must  adjust  to  survive.  While  Damaged  Goods  is  met  with  the   rest  of  the  industry  in  approaching  this  change,  Mark  now  has  the  freedom  of  his  gut  and   being  a  solo  act  to  make  the  changes  he  sees  necessary.  Mark  seeks  to  change  the  business   model  of  a  record  store.  Damaged  Goods  stands  with  no  precedent  before  it  in  changing  the   mental  models  of  the  industry  into  new  models  that  drive  foot  trafbic  and  customers   through  the  door.  While  the  drive  for  Mark's  vision  of  Damaged  Goods  is  in  reaction  to   much  of  the  status  quo  in  the  record  store  industry,  it  is  still  the  identity  used  by  Mark  to   describe  his  business.  This  is  derived  out  of  both  his  previous  venture  Rodeo  Records,  work   experience  at  Easy  Street,  and  a  lifetime  in  the  music  community.  Mark  brings  patterns  of   actions  to  Damaged  Goods  that  shape  interaction,  communication,  and  decision  making. By  decoupling  from  the  mainstream,  Mark  has  gained  blexibility  and  room  to  experiment   with  Damaged  Goods.  Damaged  Goods  revenue  is  driven  by  low-­‐cost  binds  that  are  of  high   value  within  target  niche  markets.  Most  recently  this  included  a  bulk  purchase  of  8  tracks   for  just  a  few  dollars,  of  which  are  bringing  in  $100s  of  dollars  in  income.  This  business   model  does  not  come  close  to  matching  industry  standards  and  averages,  but  instead   exceeds  margins  and  focuses  on  new  points  of  sale.  It  may  not  be  accurate  to  call  Damaged   Nancy  Southern  &  Associates.  Changing  Organizational  Cultures.  Adapted  from  the  work  of  Peter  Senge  and   Edgar  Schein.  Management  III  Organizational  Change,  not  published  Powerpoint  prepared  by  Jennifer  Roney,   Ph.D.,  2010 1 2 http://www.ibisworld.com/industry/default.aspx?indid=1087 Vinyl  record  sales  rose  14%  between  2006  and  2007,  from  858,000  to  990,000.  In  contrast,  CD  sales   plummeted  over  the  past  three  years,  from  553.4  million  in  2006  to  360.6  million  in  2008.  MP3  sales  grew   from  32.6  million  to  65.8  million  during  the  same  time  period,  according  to  SoundScan.  http:// www.computerworld.com/s/article/9124699/ Back_to_the_future_Vinyl_record_sales_double_in_08_CDs_down 3
  3. 3. Goods  a  record  store.  Another  debining  factor  is  the  rejection  of  business  metrics  and   entrepreneurship.  Their  evil  heads  have  reared  themselves  in  the  traditional  music   industry,  causing  a  strong  emotional  reaction  in  Mark  and  the  rest  of  the  artistic   community.  He  reblected,  "When  I  closed  Rodeo  Records,  I  was  frustrated  with  the  current   state  of  music  retail."  Can  Mark  be  an  artist  if  he  embraced  some  of  the  practices  from  the   culture  that  stripped  the  humanity  from  his  art?  The  issue  is  that  these  two  things  are  not   mutually  exclusive. This  has  created  an  identity  crisis  and  conblict  of  personal  interest.  Mark  is  attempting  to   revamp  the  music  retail  industry  while  unknowingly  utilizing  the  same  habits  and  skills   that  are  not  currently  sustaining  the  record  store  industry.  Even  as  Mark  tries  new   approaches,  customers  also  carry  their  own  expectations  of  a  record  store.  The  hypothesis   is  that  a  lack  of  foot  trafbic  is  rooted  in  internal  issues  of  status  and  identity  affecting  not   only  decisions  but  messaging. Already  off  to  an  innovative  start,  there  is  more  work  to  do.  To  Mark  this  change  is  personal   and  professional.  By  exploring  customer  behavior  and  the  supporting  models  behind  how   Mark  runs  Damaged  Goods,  important  insights  can  be  gained  to  informed  this  massive   change  in  process. Change  Required Utilizing  a  model  developed  by  Nancy  Southern  &  Associates,  an  adaptation  from  the  work   of  Peter  Senge  and  Edgar  Schein,  it  has  been  easier  to  unpack  Damaged  Goods  in  relation  to   its  current  issues  and  better  describe  the  organizational  culture  that  might  exist  after   changes  have  been  made.  This  model  walks  through  the  components  involved  in  both   solidifying  and  changing  organizational  cultures.  As  a  result,  thought  processes,  identities,   and  behaviors  have  been  identibied  making  it  easier  to  communicate  the  need  for  change. Mark  has  already  started  the  process  of  change.  The  customers  are  further  behind.  The   before  and  after  diagrams  represent  how  Mark's  viewpoints  and  held  beliefs  are  already   change-­‐positive,  restrained  by  old  behaviors.  The  customer,  seeking  a  record  store,  will   need  shape  new  expectations  of  how  they  discover,  bind,  and  consume  music  culture.   Seeking  this  change  will  result  in  a  new  event,  consistent  and  predictable  sales. In  order  for  Mark  to  bill  the  gap  between  today  and  his  vision  of  Damaged  Goods,  he  will   need  to  "un-­‐freeze"  his  beliefs  and  assumptions.  This  will  allow  Mark  to  alter  his  and  his   customers'  patterns  of  action.  If  Mark  markets  Damaged  Goods  as  a  unique  space  to   experience  music  from  many  different  art  forms,  he  will  expand  his  customer  base.  By   turning  what  would  normally  be  a  retail  purchase  into  an  experience,  Mark  will  encourage   customers  to  return  to  Damaged  Goods  to  further  their  music  education  and  deepen  their   understanding  of  music  culture.
  4. 4. BEFORE  (Customer) Event Inconsistent cash flow Support Structures The entire digital music system of purchases and products Patterns of Action Music consumers are increasingly purchasing music online. Go separate places for fashion, art, and music. Beliefs and Assumptions Music consumers believe music should be free/inexpensive and easy to access. The "I already know what I want" mentality. Music is different from other forms of art. (Mark) Event Inconsistent cash flow Support Structures The popularity of independent record stores in Seattle Patterns of Action Seeks mostly to music and music nostalgia buyers Beliefs and Assumptions Music needs to be sold through a record store format. Music interacts with other art forms via music centered viewpoint
  5. 5. AFTER  (Customer) Event Consistent & predictable sales Support Structures Frequently changing displays in Damaged Goods store Patterns of Action Music consumers return to Damaged Goods to further their music education and discover new displays Beliefs and Assumptions Music consumers want a personalized and unique music retail experience (Mark) Event Consistent & predictable sales Support Structures Establish strong connections between all art communities in Seattle. Create a strong supportive network of suppliers, customers, and artists. Patterns of Action Creating a space for people to experience many art forms, interacting with each other, at once Beliefs and Assumptions Damaged Goods is not a record store. It is an educational space to experience music culture.
  6. 6. Mark  needs  to  make  the  business  case  for  his  dream.  By  helping  shift  industry  mental   models  about  business,  Damaged  Goods  can  help  debine  a  new  customer  experience  around   music.  A  majority  of  small  music  ventures  are  owned  by  musicians  and  artists,  not   individuals  with  formal  business  backgrounds.  Helping  bridge  this  gap  could  be  a  huge   opportunity  for  Damaged  Goods  and  for  Mark's  brand  within  the  community.  Because   music  is  a  personal  experience,  like  other  art,  preferences,  expectations,  and  "what  is  right"   is  unique  to  each  individual,  owning  this  and  providing  this  "service"  will  serve  as  an  asset   to  Damaged  Goods.  Mark  knows  he  needs  to  change  but  other  stakeholders  need  to  know   this  too.  Welcoming  others  on  his  journey  by  communicating  the  above  changing  will   support  growth  not  just  for  Damaged  Goods  but  for  its  extended  community  as  well. These  efforts  expose  certain  nuggets  of  information  that  prove  useful  in  the  following   change  analysis: • • • • • • Consumers  experience  music  separate  from  the  stores  they  are  sold  in,  often  hearing   or  enjoying  it  elsewhere  to  inform  their  purchase  decisions. In  interviews  with  other  records  stores,  the  helplessness  revolved  around  a  decline   in  music  sales  and  there  was  little  discussion  of  seeking  a  new  business  plan. Among  customers  there  is  a  sensitivity  for  other  art  forms  despite  a  distinct  afbinity   for  music  separately. Mark  is  marketing  to  a  crowd  that  already  has  an  afbinity  for  him  or  the  Seattle   music  scene. The  approach  is  a  music-­‐centric  one,  which  may  indicate  ignorance  on  how  to  reach   other  audiences. Damaged  Goods  is  changing  purchasing  habits  through  offering  new  experience  that   add  value,  this  must  be  learned  as  a  new  belief  and  assumption. Community  Culture  Considerations While  the  music  culture  in  Seattle  is  composed  of  many  different  sub-­‐cultures,  there  are   shared  values.  The  music  community  supports  artistic  expression  and  believes  that  music   can  enrich  people's  lives.  It  is  composed  of  close  long-­‐term  personal  relationships  often  not   formally  structured.  The  music  community  has  a  stressed  experience  with  the  business   community.  Exploiting  the  personal  relationships  within  the  music  community  solely  for   monetary  gain  is  not  appropriate  or  accepted.  However,  building  mutual  success  through   collaboration  is  seen  as  a  way  to  strengthen  the  music  community  as  a  whole.  Business   success  is  allowed  as  a  byproduct.  For  example,  when  Damaged  Goods  serves  as  an  event   venue,  artists  expect  a  welcoming  atmosphere  and  Mark  provides  beer  and  other  items.  The   artist  interest  is  on  their  performance  and  whether  Damaged  Goods  is  a  good  host.  It  is  up   to  Damaged  Goods  to  turn  the  event  into  revenue,  but  cannot  be  obvious  about  it  at  the  risk   of  damaging  the  relationship. There  is  a  dominant  music  culture  in  Seattle,  but  various  groups  exist  as  sub-­‐cultures.   Below  are  the  sub-­‐cultures  of  the  Seattle  music  community  and  their  self-­‐identibied   interests:
  7. 7. Artist  community:  Interested  in  partnering  to  enhance  their  own  artistic  brand  and   audiences.  These  engagements  must  be  mutually  benebicial  and  do  not  have  to  inlcude  the   exchange  of  money. Business  community:  Interested  in  partnering  with  Damaged  Goods  when  possible  to   bring  more  consumers  into  the  Belltown  business  district.  Often  in  this  community,  short-­‐ term  binancial  results  are  expected. Media:  Interested  in  reviewing  and  advertising  Damaged  Good's  popular  events  to  the   public.  The  media  wants  pre-­‐crafted  stories. Kitsch  enthusiasts  and  collectors:  Interested  in  having  access  to  rare  and  unusual  music   items.  Exclusivity  is  important  to  this  group,  where  one  item  can  give  an  individual  "elite"   status. Target  market:  Interested  in  experiencing  the  different  stories  Mark  tells  through  his   artistic  and  cultural  displays.  Displays  must  change  on  a  frequent  basis  to  maintain   consumer  interest. Businesses  and  individuals  look  for  opportunities  that  will  benebit  themselves,  but  success   of  Damaged  Goods  is  dependent  on  the  collaboration  of  many  local  businesses  and   individuals.  Mark  will  be  successful  if  he  can  strengthen  his  existing  relationships  and  build   new  connections  within  his  business  community.  To  do  so  he  needs  to  be  aware  of  the   selbish  interest  of  the  different  sub-­‐cultures.  While  everyone  is  "in  it  together,"  many  hard   years  have  hardened  community  members  as  skeptical  of  musicians  or  heavily  focused  on   their  own  survival.  It  could  be  identibied  as  change  fatigue  gone  awry.  During  the  change   process  Damaged  Goods  will  spend  signibicant  amounts  of  time  building  trust.  This  may   require  being  the  bearer  of  losses  up  front,  valuing  the  support  and  fair  treatment  of  the   community  birst  and  foremost. Plan  of  Action John  P.  Kotter  puts  forth  a  model  on  change  that  is  detailed  in  its  steps  and  great  for   discussing  change  within  a  community.  Using  that  model,  a  plan  of  action  can  be  created  for   Damaged  Goods  to  create  the  vision  and  cultural  results  previously  described.  Assessment   and  interviews  indicate  the  community  is  just  beginning  the  process  of  change  and  should   birst  focus  on  getting  the  right  people  at  the  table  and  crafting  a  shared  vision. Increase  urgency:  There  is  an  existing  urgency  around  creating  more  space  to  experience   music  and  other  art  forms.  This  urgency  is  a  result  of  the  frustration  around  the  perceived   corporate  hijacking  of  the  artistic  industry  and  general  struggle  of  artists.  Mark's  ability  to   communicate  his  vision  as  an  independent  alternative  increases  the  urgency  and  potential   for  buy-­‐in.  Mark  should  also  use  his  available  soapboxes  on  Facebook  to  provided  articles,   information,  and  encourage  discussion  about  the  current  state  of  record  stores  and  related   topics.  Anything  to  build  buzz  and  interest  and  help  identify  Mark  and  Damaged  Goods  as   experts  and  thought  leaders. Build  guiding  teams:  The  music  community  contains  many  stakeholders.  If  Mark  can   engage  the  many  stakeholders  within  the  Seattle  music  community,  he  can  lead  the   community  in  the  direction  of  achieving  his  mission.  The  guiding  teams  should  be  
  8. 8. organized  by  the  sub-­‐culture  groups  identibied  above.  By  allowing  their  voice  to  be   contributed  within  similar  self-­‐serving  contexts,  Damaged  Goods  will  be  protected  from   attempting  to  cannibalizing  their  efforts.  Due  to  the  non-­‐internal  nature  of  these  groups,   different  methods  can  be  used  to  acquire  information.  It  will  be  a  space  to  thoroughly   investigate  the  needs  of  other  art  forms,  such  as  fashion  and  visual  art.  Facebook,  Google   Moderator,  email  surveys  and  informal  conversations  are  all  ways  to  engage  these  different   groups.  If  Mark  can  keep  them  updated  on  and  involved  with  Damaged  Goods,  he  will  have   successfully  brought  the  community  along.  It  is  also  an  opportunity  for  acting  on   community  input  which  benebits  brand  and  participation. Get  the  vision  right:  Mark's  vision  for  Damaged  Goods  is  his  own,  but  since  the  effort   involves  so  many  others  a  vision  accepted,  or  at  least  understood,  by  the  community  is   essential.  Feedback  and  experience  working  with  the  guiding  teams  can  be  used  to  inform   changes.  It  was  our  experience  that  walk-­‐in  customers  not  familiar  with  the  record  store   branding  had  the  most  valuable  input  on  what  Damaged  Goods  represents.  Most   importantly,  since  no  vision  has  been  written  down  and  documented,  Mark  must  do  so. Communicate  for  buy-­in:  Through  the  media  and  his  personal  contacts,  Mark  will   communicate  the  vision  to  the  public  and  will  communicate  different  angles  of  the  store,   not  just  music.  Mark  will  probably  need  to  take  the  lead  on  spoon-­‐feeding  the  media  press   releases  and  stories  about  new  efforts  and  partnerships.  Persistence  and  consistency  in   messaging  will  be  important  to  change  "record  store"  perceptions. By  promoting  the  educational  experience,  people  will  come  to  enjoy  just  that.  Materials   should  be  on  hand  to  solidify  learning  in  any  absence  of  Mark's  personal  attention. Enable  Action:  Mark  holds  store  events  and  creates  new  displays.  These  events  and   displays  will  be  collaborative  and  will  change  on  a  predictable  schedule  to  create  more   consistent  business.  Damaged  Goods  should  host  workshops  that  teach  business  skills,   publicity,  and  Seattle  music  history.  In  an  effort  to  meet  the  needs  of  multiple  stakeholder   groups,  meet-­‐and-­‐greets  can  be  hosted  to  encourage  cross  connections  between  members   of  the  community.  In  order  to  help  change  customer  behavior,  Mark  should  go  to  local   concerts  and  put  on  his  Damaged  Goods  hat  to  promote  the  Damaged  Goods  experience.  Go   where  music  is  being  experienced. Create  short-­term  wins:  It  will  be  important  to  celebrate  successful  events  and   partnerships.  Even  using  inventory  to  provide  thoughtful  gifts  will  add  humanity  back  into   the  equation  between  collaborating  parties.  These  short-­‐term  wins  will  be  documented  by   the  media  and  celebrated  by  the  entire  music  community.  Document  joint  purchases,   categories  of  purchase  types Don't  let  up:  By  continually  engaging  the  music  community,  Mark  will  make  his  vision  a   reality.  Due  to  the  resonant  afbinity,  all  events  should  highlight  the  various  artistic  elements   always  reinforcing  the  complete  experience,  not  just  music.  Consistency  on  this  messaging   should  continue  no  matter  what.  Damaged  Goods  will  post  a  calendar  and  schedule  for   accountability.
  9. 9. Make  it  stick:  Damaged  Goods  can  embrace  the  charge  to  help  other  records  stores  build   similar  relationships  in  their  communities.  Also,  promotion  outside  of  the  current  comfort   zone  can  still  be  through  free  and  organic  channels,  a  value  expressed  by  Mark,  but  can  no   longer  be  passive.  Active  steps  need  to  be  taken  to  reach  new  audiences. Leadership  and  Stakeholder  Engagement Mark,  as  the  owner  that  controls  everything,  the  success  of  the  business  is  ultimately  in  his   hands.  More  broadly,  by  setting  an  example  Damaged  Goods  can  serve  as  a  model.  Its   leadership  will  give  it  a  competitive  advantage.  Mark's  existing  relationships  and  trust  in   the  community  will  give  him  a  head  start.  It  is  strongly  encouraged  that  he  leans  more   heavily  on  his  network.  In  an  interview  he  mentioned  having  not  yet  connected  with  the   record  industry  or  some  friends  that  are  major  players.  The  same  apprehension  on  his  part   is  what  divides  much  of  the  community.  Below  are  a  series  of  stakeholders  Mark  should   engage  heavily  on  behalf  of  Damaged  Goods.  They  are  analyzed  by  their  expressed  interest   in  Damaged  Goods,  alignment  of  values,  inbluence  on  the  success  of  the  change  process,  and   suggested  plans  to  better  meet  the  stakeholder's  needs. Stakeholder Interest Alignment Personal   Network Realization  of   Mark’s  dream Musicians Success  as  an  artist   Preserving   by  aligning  with   music   store’s  brand culture Artists Support   Mark Artistic   expression   and  venue InOluence Plan Network   provides   value  to  Mark Cross-­‐promotion;   Preferred  access Credibility  to   store Seek  consult  on   music;  Agreements   for  record  sales Acceptance  as   Provide  proper   a  suitable   display  space;  Buy   venue art Designers Fashion  shows “Preaching  to   Seek  reward  for   the  Choir” “getting  it” Shares   vision Base  of   promotors   and  word  of   mouth Record   Labels New  model   for  record   sales Access  to  new   Contact  to  gain   music access  to  early   releases  and   promotion  material Increase  in  sales Frequent  buyer  card
  10. 10. Stakeholder Interest Alignment InOluence Plan Neighbor   Businesses More  customers  to   Belltown Enhances   Multiplier   Regular  meetings;   the  cultural   effect  through   Review  success  of   brand  of   synergies events business   district Local   Publications Good  stories,  cool   events,  name   recognition Support   local   businesses Keeper  of  free   Provide  news  on  DG   promotional   partners outlets Suppliers Steady  business Building   interest  and   value  in   goods Unique  goods   Create  purchase   and  ensures   contracts  providing   quality  and   binancial  security authenticity Collectors Knowledge  of  and   changing  inventory Preserving   rare  goods Buzz   surrounding   unique  binds Exclusive  access  to   goods New   Customers Recommendations Interest  in   learning   music   culture Core  of   changing   customer   culture Educate;  Send   traditional   purchases  home   with  DG  info. Facebook   Fans To  be  connected  to   Mark Support   Mark Personal   Opportunities  to   connection  to   meet  Mark Mark  and  DG Hipsters Accessible  oddities Local,   Keeper  of   independen “cool” t,  music   related Grow  big  through   partnerships  and   stay  small;  Provide   DG  certibication  on   uniqueness  of  an   item Human  and  Technical  Resources Some  additional  resources  will  be  needed  to  accomplish  change.  They  are  seen  as  the   following: Business  knowledge  and  assessments  -­  Mark  should  seek  education  in  business  strategy   and  development. Cash  Olow  predictions  longer  than  3  days  -­  Current  short-­‐term  focus  puts  Damaged   Goods  at  risk.
  11. 11. A  point  of  sale  system  or  record  of  inventory  -­  Mark  shares  horror  stories  of  POS   systems.  He  should  bind  a  system  to  track  inventory  in  a  way  that  keeps  his  personal  touch   and  can  identify  unique  trends. New  web  design  -­  The  website  currently  is  just  the  logo,  contact  information,  and  location.   A  better  site  needs  to  be  designed  to  communicate  Damaged  Goods  efforts  and  vision. A  committee  or  board  of  stakeholders  guiding  the  business  -­‐  Enough  people  would  like  to   see  Mark  succeed,  a  sounding  board  would  be  useful  as  he  grows. Additional/temporary  employees  -­  Mark  once  hired  a  temporary  employee  for  a  large   event.  Knowing  that  he  is  open  to  the  idea,  a  closer  look  at  customer  service  should  be   taken  to  determine  appropriate  action. Initiating  rebranding  efforts  -­  No  longer  just  a  record  store,  new  resources  and  media   need  to  be  created. Conclusion Mark's  journey  with  Damaged  Goods  is  far  from  over.  This  change  process,  as  mentioned,  is   bigger  than  his  store.  If  he  can  focus  and  clarify  his  intentions  and  efforts,  he  will  recieve   more  help  and  be  more  likely  to  succeed.  This  requires  multiple  groups,  including  Mark   himself,  to  relearn  new  beliefs  and  behaviors.  These  new  beliefs  and  behaviors  will  support   a  more  vibrant  store  and  community.  This  effort  isn't  without  obstacles  as  Mark  manages   the  process.  He  will  most  strongly  battle  with: • • • • Fear  of  business  ideas  and  what  they  stand  for; lack  of  capital  and  existing  debt  from  Rodeo  Records; no  budget  for  advertising;  and lack  the  tools  or  processes  to  monitor  the  change  management  plan,  and  assess  its   success. For  the  most  part,  success  is  determinant  on  Mark's  ability  to  engage  stakeholders.  By   understanding  the  change  process,  Mark  can  learn  alongside  other  community  members.