Shared Consulting Operating Strategy Recommendations
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For the Summer Institute for Emerging Managers and Leaders (SIEML) program with University of California's Rady Business School of Management, our leading corporate sponsor Deloitte challenged us to to develop strategy, technology, and human capital recommendations for Shared, a ride-sharing car service company.
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Shared Consulting Operating Strategy Recommendations
- 1. SHARED CONSULTING OPERATING STRATEGY ILEANA GONZALEZ ALISHA GRIGGS JORDYN HAWKINS-RIPPIE NICOLE ROBINSON BENJAMIN WEBSTER
- 2. AGENDA Situation Analysis Recommendations •Strategy & Operations •Technology •Human Capital Key Takeaways
- 3. CHALLENGES Competition Lack of a clear growth strategy Regulatory pressures Driver and customer dissatisfaction with app High turnover rates
- 4. TARGETED APPROACH •Expand domestically and internationally on current services •Issue comprehensive background checks •Double insurance coverage for drivers Strategy & Operations •Strategic alliance with Google Maps •Deploy of SharedAhead and SharedRewards Technology •Restructure organization •Implement work/life & professional development initiatives Human Capital
- 5. TARGETED APPROACH •Expand domestically and internationally on current services •Issue comprehensive background checks •Double insurance coverage for drivers Strategy & Operations •Strategic alliance with Google Maps •Deploy of SharedAhead and SharedRewards Technology •Restructure organization •Implement work/life & professional development initiatives Human Capital
- 6. EXPANSION STRATEGY - DOMESTIC 2016 Q1 West Revenue $109 M Profit $2.7 M User % 23.5% • Established Region • 35.92% domestic profit • The most competition • Sustain market dominance
- 7. EXPANSION STRATEGY - DOMESTIC 2016 Q1 2016 Q2 West Atlantic/South Revenue $109 M Profit $2.7 M User % 23.5% • Established Region • 35.92% domestic profit • The most competition • Sustain market dominance Revenue $28.5 M Profit $1.4 M User % 20.9% • Larger distances = more revenue • 18.62% domestic profit • New Region – • Growth & Momentum
- 8. EXPANSION STRATEGY - DOMESTIC 2016 Q1 2016 Q2 2016 Q3 West Atlantic/South Central Revenue $109 M Profit $2.7 M User % 23.5% • Established Region • 35.92% domestic profit • The most competition • Sustain market dominance Revenue $28.5 M Profit $1.4 M User % 20.9% • Larger distances = more revenue • 18.62% domestic profit • New Region – • Growth & Momentum Revenue $66 M Profit $1. 8 M User % 20.3% • No issues have arisen • 22.13% domestic profit • 3 of the top cities • High potential for growth
- 9. EXPANSION STRATEGY - DOMESTIC 2016 Q1 2016 Q2 2016 Q3 2016 Q4 West Atlantic/South Central North East Revenue $109 M Profit $2.7 M User % 23.5% • Established Region • 35.92% domestic profit • The most competition • Sustain market dominance Revenue $28.5 M Profit $1.4 M User % 20.9% • Larger distances = more revenue • 18.62% domestic profit • New Region – • Growth & Momentum Revenue $66 M Profit $1. 8 M User % 20.3% • No issues have arisen • 22.13% domestic profit • 3 of the top cities • High potential for growth Revenue $76.5 M Profit $1 M User % 19.66% • Highly saturated market • Already in the big cities
- 10. EXPANSION STRATEGY - INTERNATIONAL 2016 Q1 North America Revenue $7 M Profit $1.2 M User % 34.6% • Most profitable region • No competitors • Expanding fast to dominate • 43% international profit
- 11. EXPANSION STRATEGY - INTERNATIONAL 2016 Q1 2016 Q3 North America Europe Revenue $7 M Profit $1.2 M User % 34.6% • Most profitable region • No competitors • Expanding fast to dominate • 43% international profit Revenue $32.5 M Profit $878,000 User % 3.59% • No competitors • Trans-border traveling • Quickly word of mouth
- 12. EXPANSION STRATEGY - INTERNATIONAL 2016 Q1 2016 Q3 2016 Q3 North America Europe Asia Revenue $7 M Profit $1.2 M User % 34.6% • Most profitable region • No competitors • Expanding fast to dominate • 43% international profit Revenue $32.5 M Profit $878,000 User % 3.59% • No competitors • Trans-border traveling • Quickly word of mouth Revenue $5 M Profit $715,000 User % 2.87% • No competitors • High population density • High car-free population
- 13. QUARTERLY GROWTH
- 14. ANNUAL GROWTH
- 15. ANNUAL GROWTH
- 16. INITIAL EXPANSION FRAMEWORK • Population density of 100 people per square mile • Population growth • 20% of population needs to be car free
- 17. LEGAL AND REGULATORY SOLUTION • Valid license in state of operation • Background check • Every six months • Double insurance coverage
- 18. TARGETED APPROACH •Expand domestically and internationally on current services •Issue comprehensive background checks •Double insurance coverage for drivers Strategy & Operations •Strategic alliance with Google Maps •Deploy of SharedAhead and SharedRewards Technology •Restructure organization •Implement work/life & professional development initiatives Human Capital
- 19. MAPPING SERVICES In-House Development Advantages: • Company Ownership • Quick to implement change Disadvantages: • Expensive • Time consuming Risk: • Competitors may gain lead Strategic Alliance Advantages: • Quickly implementing solutions • Less expensive • Proven reliability Disadvantages: • No control • Long term solutions Risk: • Potential long term cost Acquisition Advantages: • Immediate solutions • Company ownership of Property Disadvantages: • Expensive • Not viable Risk: • Negative cash flow
- 20. MAPPING SERVICES In-House Development Advantages: • Company Ownership • Quick to implement change Disadvantages: • Expensive • Time consuming Risk: • Competitors may gain lead Strategic Alliance Advantages: • Quickly implementing solutions • Less expensive • Proven reliability Disadvantages: • No control • Long term solutions Risk: • Potential long term cost Acquisition Advantages: • Immediate solutions • Company ownership of Property Disadvantages: • Expensive • Not viable Risk: • Negative cash flow
- 21. SHAREDAHEAD • Launch in largest cities (SFO and JFK) • 3-6 month pilot program • Reduced gross margin
- 22. SHAREDAHEAD • Launch in largest cities (SFO and JFK) • 3-6 month pilot program • Reduced gross margin Advantages: • New market Disadvantages: • Fare prediction • Unknown driver availability
- 23. SHAREDREWARDS •Customer loyalty program •Discounts for consistent service usage •Partner with major retail centers
- 24. SHAREDREWARDS •Customer loyalty program •Discounts for consistent service usage •Partner with major retail centers Advantages: • Increased competitor pressure Disadvantages: • Less Revenue
- 25. TARGETED APPROACH •Expand domestically and internationally on current services •Issue comprehensive background checks •Double insurance coverage for drivers Strategy & Operations •Strategic alliance with Google Maps •Deploy of SharedAhead and SharedRewards Technology •Restructure organization •Implement work/life & professional development initiatives Human Capital
- 28. NEW ORGANIZATIONAL STRUCTURE CEO Global President CTO CFO CLO Human Resource s US President Europe President Asia Preside nt North American President (EX US) Director of Accounting Director of Operations Director of Shared Plus Director of Marketing
- 29. WORK / LIFE BALANCE & PROFESSIONAL DEVELOPMENT Evaluated top five ranked Indeed companies for healthy work-life balances Benefit implementation Nearby childcare centers Seven paid weeks maternity leave Virtual training and telecommuting where appropriate Career milestone training Mentoring programs
- 30. TURNOVER OUTCOMES Current 15% 12 months 10% 24 months 6%
- 31. TURNOVER OUTCOMES Current 15% 12 months 10% 24 months 6%
- 32. TURNOVER OUTCOMES Current 15% 12 months 10% 24 months 6%
- 33. KEY TAKEAWAYS Strategy & Operations •Systematic Approach to Domestic and International Expansion Technology •Strategic Alliance with Google Maps •Parallel Development of App and New Services Human Capital •Streamlined and Scalable Organizational Structure •Reduced Turnover and Increased Employee Satisfaction
- 34. QUESTIONS?