Terre Haute Boys And Girls Club Final Paper Revised

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This is the actual paper written by our consulting team for the Sycamore Business Advisors. We worked really hard on this!

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Terre Haute Boys And Girls Club Final Paper Revised

  1. 1. Terre Haute Boys and Girls Club December 2, 2008
  2. 2. Terre Haute Boys and Girls Club THE RESEARCH TEAM Back Row from Left: Evan Huffine, Eric Miller, Thomas Clark, Adam Mills, Heath Holliday, Kyle Wahl, and Daniell Trevino. Front Row from Left: Fadzai Masiyazi, Megan Measel, Lisa Scott, Jordan Moran, and Dena Sulieman. Page 2 of 90
  3. 3. Terre Haute Boys and Girls Club College of Business Indiana State University Terre Haute, IN 47809 December 2, 2008 Terre Haute Boys & Girls Club 220 North 3rd Street Terre Haute, IN 47807 Dear Jimmy Smith, On behalf of Sycamore Business Advisors, we would like to thank you for giving us the opportunity to help your organization with your consulting needs. The Sycamore Business Advisors believe that our consulting services and strategic management assistance will be of great help to your organization. As Sycamore Business Advisors, we specialize in formulating strategic management plans for local small to mid-sized organizations. Our highly-developed, not-for-profit strategic management consulting company hopes to raise your organization to a higher level. Sycamore Business Advisors strives to be a leader in quality consulting and strategic management assistance. Sycamore Business Advisors seeks to become a respected member of the Terre Haute community as well as an important resource for your organization. If you have any questions or concerns with our services that we provided to you, please feel free to contact us at any time. Sincerely, Fadzai Masiyazi, Project Team Leader Imane Lahlou, Associate Director Dr. Dave Robinson, SyBA Advisor Page 3 of 90
  4. 4. Terre Haute Boys and Girls Club TABLE OF CONTENTS Research Team…………………………………………………………………………….2 Thank You Letter………………………………………………………………………….3 Table of Contents……………………………………………………………………….....4 EXECUTIVE SUMMARY.............................................................................................................8 OVERVIEW....................................................................................................................................9 DIRECTIONAL ANALYSIS........................................................................................................10 Stakeholder and Business Model Analyses..........................................................................11 Members........................................................................................................................12 Community....................................................................................................................13 Partners and Suppliers...................................................................................................14 Sustainable Competitive Advantage.....................................................................................15 INTERNAL ANALYSIS...............................................................................................................17 Programs and Services..........................................................................................................18 SWOT Analysis....................................................................................................................20 Strengths and Weaknesses.............................................................................................21 Management Information Systems.......................................................................................22 Marketing..............................................................................................................................23 Education..............................................................................................................................23 Human Resources.................................................................................................................24 Accounting............................................................................................................................24 EXTERNAL ANALYSIS..............................................................................................................27 Threats...................................................................................................................................28 Opportunities.........................................................................................................................29 General Environment............................................................................................................31 Page 4 of 90
  5. 5. Terre Haute Boys and Girls Club PEST Factors.................................................................................................................32 Threats...........................................................................................................................33 Opportunities.................................................................................................................33 Industry.................................................................................................................................34 Partners and Alliances...........................................................................................................35 GAP ANALYSIS...........................................................................................................................37 Prioritization of Gaps............................................................................................................38 New Programs...............................................................................................................38 Marketing......................................................................................................................38 New Gymnasium...........................................................................................................38 Alumni Involvement......................................................................................................39 Board of Directors.........................................................................................................39 Youth Football League..................................................................................................39 Accounting....................................................................................................................39 Current State..........................................................................................................39 Auditing Concern...................................................................................................40 Ideal State...............................................................................................................40 New Location................................................................................................................41 Transportation...............................................................................................................41 RECOMMENDATIONS...............................................................................................................43 New Programs.......................................................................................................................43 Competitive Sustainable Advantage.............................................................................43 Summer Program with MHA........................................................................................43 Too Good for Drugs......................................................................................................44 No Fear Future Club......................................................................................................44 Softball..........................................................................................................................44 Soccer............................................................................................................................45 Marketing..............................................................................................................................45 Current State..................................................................................................................45 Recommendations.........................................................................................................46 Commercial...................................................................................................................46 Page 5 of 90
  6. 6. Terre Haute Boys and Girls Club Time Warner Cable.......................................................................................................51 Flyer Redesign........... ..............................................................54 New Gym..............................................................................................................................56 Economic Instability......................................................................................................56 Scarcity of Parking........................................................................................................57 Increase in Expenses.....................................................................................................57 Heating & Electric Costs...............................................................................................57 New Program Costs.......................................................................................................58 Indoor Soccer................................................................................................................60 Gymnasium Maintenance & Upkeep Costs..................................................................60 Hiring Costs...................................................................................................................61 High Switching Costs....................................................................................................62 Alumni Involvement.............................................................................................................63 Alumni Impact...............................................................................................................63 Implementation..............................................................................................................64 Board of Directors Recognition............................................................................................64 Recommendation……………………………………………………….…………...……65 Youth Football......................................................................................................................66 Current State..................................................................................................................66 Identified Gap................................................................................................................67 Recommendation…………………………………………….. ………………………………68 REFERENCES..............................................................................................................................71 Websites................................................................................................................................71 Interviews..............................................................................................................................72 APPENDIXES Appendix A - Tables.............................................................................................................74 Appendix B - Figures............................................................................................................77 Appendix C – Surveys & Flyers...........................................................................................83 Page 6 of 90
  7. 7. Terre Haute Boys and Girls Club LIST OF ILLUSTRATIONS TABLES Table 1...........................................................................................................................................14 Table 2...........................................................................................................................................37 Table 3...........................................................................................................................................52 Table 4...........................................................................................................................................59 Table 5...........................................................................................................................................60 FIGURES Figure 1..........................................................................................................................................48 Figure 2..........................................................................................................................................49 Figure 3..........................................................................................................................................49 Figure 4..........................................................................................................................................50 Figure 5..........................................................................................................................................50 Figure 6..........................................................................................................................................51 Figure 7..........................................................................................................................................53 Figure 8..........................................................................................................................................60 Figure 9..........................................................................................................................................61 Figure 10........................................................................................................................................62 EXECUTIVE SUMMARY Page 7 of 90
  8. 8. Terre Haute Boys and Girls Club The following is a strategic process consultation that we, a division of the Sycamore Business Advisors (SyBA), conducted for the use of your company, the Terre Haute Boys and Girls Club. The Terre Haute Boys and Girls Club has been serving the youth of the Wabash Valley since 1908. The Club provides sports, recreational, and educational programs to local children and has been a community leader for the past century, proving that they are indeed, the positive place for kids. This consultation includes information we gathered and researched in order to provide the Boys and Girls Club with a strategy, which is the coordinated means by which an organization pursues its goals and objectives. The research included in this study focuses on a directional analysis, where we identified the people that the Boys and Girls Club exists to benefit, an internal analysis, where we studied the internal processes of the Club and how they operate, an external analysis, where any opportunities and threats from the outside environment were analyzed, and a recommendations section that analyzes the current state of the Club and where they would like to be in the future. The directional analysis includes a study of the Club’s mission, vision, and values. These statements enabled us to determine who the Club provides services to, the ultimate goals for the Club, and how business is conducted within the Club. We conducted a stakeholder analysis to identify the key stakeholders most critical to the Club’s survival and how the Club provides benefit to and receives benefit from them . The internal analysis focuses on the strengths and weaknesses the Boys and Girls Club would have to take into consideration when trying to expand operations. We conducted research to analyze the current operations of the Club, in the areas of marketing, accounting, management information systems (MIS), education and human resources. We also identified the areas that were performing well, and those that could cause problems in the future. The external analysis focuses on the opportunities and threats existing in their outside environment. The Boys and Girls Club would have to take these into consideration when trying to expand their business operations. To determine these factors, we focused on three key areas: the general environment, the industry, and the partners and alliances. We discovered that it is important for an organization to utilize the opportunities they have and minimize the threats that could possibly arise. The final section consists of proposals, where we offer recommendations to the Boys and Girls Club that could possibly improve their operations. These recommendations take all of our information and research gathered from our directional, internal, and external analyses into consideration. The proposals include the construction of a new gymnasium, reorganizing the Page 8 of 90
  9. 9. Terre Haute Boys and Girls Club Youth Football program, offering new programs, expanding marketing efforts, and creating more alumni and board of director’s involvement. OVERVIEW In different communities around the United States there are boys and girls left to find their own recreation and companionship in the streets. Over time an increasing number of children have been left at home with no adult supervision. These young people need to have a place to go where they feel that someone cares about them. The Boys and Girls Club offers emotional assistance and much more. The Boys and Girls Club provides programs and services that promote and enhance the development of boys and girls by instilling a sense of competence, usefulness, belonging, and influence. The organization is able to provide a safe place for children to learn and grow, build ongoing relationships with caring adult professionals, and gives the kids hope and opportunity. They have managed to fill the void in communities nationwide and in the process, produced fine young men and women such as Jackie Joyner-Kersey, Brad Pitt, Denzel Washington, President Clinton, Neil Diamond, and many more over the years. The Boys and Girls mission statement is, “To enable all young people, especially those who need us most, to reach their full potential as productive, caring, and responsible citizens.” The club’s purpose is to inspire the young generation. With the crisis of soaring high school drop-out rates, low fitness and obesity rates sky rocketing within our young, The Boys and Girls club strives to provide solutions to this epidemic through tutoring services, energizing sports and recreational activities, and challenging academic programs. The Boys and Girls Club is truly a positive place for kids. Page 9 of 90
  10. 10. Terre Haute Boys and Girls Club Page 10 of 90
  11. 11. Terre Haute Boys and Girls Club Directional Analysis Page 11 of 90
  12. 12. Terre Haute Boys and Girls Club DIRECTIONAL ANALYSIS The Terre Haute Boys and Girls Club (THBGC) has been an important asset for servicing communities over the years. It has adapted to better suit its members and community and has established itself as a vital, not for profit organization. As stated on the website, The Terre Haute Boys and Girls Club’s mission is to enable all young people, especially those who need them most, to reach their full potential as productive, caring, and responsible citizens. By providing diverse programs and activities, the THBGC has made adult supervision and guidance available to those who need it. For nearly 100 years, the THBGC has stood as a positive image in Terre Haute’s community by adapting to its needs. Over the last ten years, the Terre Haute Boys and Girls Club has expanded by adding tutoring services, computer accessibility, and more female- oriented programs. Stakeholder and Business Model Analyses We conducted a directional analysis of the Boys and Girls Club to get a better understanding of how the club operates and endures as a business. This analysis identifies the people and groups who have an impact or are impacted by the club, these people are called stakeholders of the Boys and Girls Club. The directional analysis also identifies the values these stakeholders give or receive from the club, and also how the club remains sustainable in its community. From the information obtained, we will be able to identify the critical stakeholders that the Boys and Girls club is dependent on. Furthermore, we may discover other stakeholders that have potential to assist the Boys and Girls Club, if needed. The directional analysis is broken down into three main parts: the stakeholder analysis, business model analysis, and an evaluation Page 12 of 90
  13. 13. Terre Haute Boys and Girls Club of sustainability. Evaluating the THBGC, according to the directional analysis will help us determine how it operates as a business, while giving to and receiving from its environment. Since the stakeholder analysis and the business model analysis are so intertwined, we will conduct the two simultaneously. Understanding the relationship between the stakeholders and the THBGC are the first steps to defining its business model. The business model is made up of the activities that the THBGC engages and provides, in order to create value for its stakeholders. This is the method by which it operates. What does it receive and from whom? What does it give and to whom? We can determine this by identifying the stakeholders and determining what they give and receive from the Boys and Girls Club. After meeting with Jimmy Smith and visiting the Boys and Girls club’s website, we were able to identify three groups of stakeholders. The stakeholders were classified into these groups according to the type of relationship they have with the club. The groups are the partner and suppliers, the community, and the members of the Boys and Girls Club. Once each stakeholder’s relationship with the THBGC is established, we will be able to identify the value they receive as well as the value they create for the organization. Members The members represent an important group of stakeholders to the THBGC. Their presence is the driving force for the existence of the club. The members, who essentially are the kids, receive value from the club by participating in the various athletic and educational activities the club has to offer. In addition, they are also able to interact with other members while developing social and communication skills. Participating in the athletic programs like basketball or baseball league promotes sportsmanship and team interaction. Above all, the THBGC Page 13 of 90
  14. 14. Terre Haute Boys and Girls Club provides professional supervision for them in a safe and nurturing environment. As for the value that they create for the THBGC, their membership fees provide most of the THBGC’s income. The $25 yearly membership fee for 2,000 members provides great financial assistance to the club’s operation. Furthermore, their participation in the club can generate positive feedback to other children, which can increase membership. Aside from the actual members of the THBGC, we classified the parents of the children and the staff of the THBGC under the members group. We believe that these two stakeholders directly influence the membership of the children. The parents fit under the members group because their permission and fees dictate the child’s participation in the club. They represent a critical stakeholder to reach out to because their awareness and knowledge of the THBGC can generate a good reputation for the club. If the parents are fully aware of the benefits of the THBGC, they may be more likely to encourage their children to participate in more programs. Moreover, the parents create more value for the club by providing donations and volunteering for the programs. As for the employees, they receive wages for their labor and very important to THBGC because it is their supervision that helps create a safe and constructive place for the children. The professional staff of the THBGC provides the children with guidance that may not be otherwise received. Community The stakeholders that fall under the community group include the school corporations, Indiana State University, the THBGC alumni, and citizens of Terre Haute. These stakeholders live in the Terre Haute community and the value they receive from the club comes from the club’s ultimate goal, which is to produce better, well- rounded citizens. The Boys and Girls Club Page 14 of 90
  15. 15. Terre Haute Boys and Girls Club receive income from donations and fundraisers from the communities. The donations can come from any individual who believes in the THBGC’s cause. As for the fundraiser, the community’s participation and support are vital to the THBGC’s success and the club holds two main fundraisers each year. Partners and Suppliers Partners and suppliers represent an important group of stakeholders because they provide the support that allows the THBGC to operate and run its programs. The partners include the people and groups that provide financial assistance and funding to the club. United Way is one of the main sources of income, because they provide the Boys and Girls club with nearly half the income on its financial budget. The THBGC is dependent on United Way in order to continue delivering the value to the members and community. Staples and Sam’s club, among other local businesses, provide in-kind supplies to the THBGC that maintain its facilities operations and support the fundraisers. In return, by supporting the club, these partners and suppliers receive recognition, good publicity, and their contributions are tax deductable. This makes the organization or business appear as a positive figure in the public eye. The value chain model depicted on the next page summarizes the value created for the Boys and Girls Club from their stakeholders and the value their stakeholders receive from the Boys and Girls Club, as previously discussed. Table 1-Value Chain Model Stakeholder Value Created for THBGC Value Received Page 15 of 90
  16. 16. Terre Haute Boys and Girls Club Kids Social Skills Income from Membership fees Parents Affordable fees Good Reputation, Volunteers Community Well rounded citizens Donations, Fundraisers Partners and Suppliers Publicity, Tax deductibles Sponsorship Sustainable Competitive Advantage The final step of the directional analysis is to determine if the Boys and Girls Club has a sustainable competitive advantage. An organization with a sustainable competitive advantage is one that is able to survive in the long run, and continue to provide its product or services to its stakeholders. It must be able to compete successfully with any organization that provides similar services. It is important to recognize this aspect of the club because it determines if the club is currently operating in good condition, or if a new, more viable direction needs to be conceived. The Terre Haute Boys and Girls club has established itself as an important asset to the community and has served it for nearly 100 years. There are three aspects that the Boys and girls club prides itself on in regards to service for it members and community. The first value added to the community by the THBGC delivers is low membership fees. Children are allowed to participate in the pangrams for a mere $25 per year fee. This is extremely competitive to any other gym or facility in Terre Haute. The second value added the club delivers is the professional supervision of their staff. Their input is integral to the club’s survival because they provide a safe, trustworthy place for the children, whose parents are confident leaving their children. Finally, the Boys and Girls club is a dedicated youth facility, open daily. The club has proven from this that it is here to service and fulfill the needs of the community. Page 16 of 90
  17. 17. Terre Haute Boys and Girls Club The THBGC has a valuable place within the community and has continued to operate because of the high value it has to Terre Haute. There are many attributes that add value to the organization which, in turn, receive value from the THBGC as well. These are the attributes that will allow the THBGC to sustain the competitive advantage that it currently holds in the future and continue to provide their services without excessive strain. There are many more contributions that can be implemented to the organization involving the stakeholders as the directional analysis has shown. Page 17 of 90
  18. 18. Terre Haute Boys and Girls Club Internal Analysis Page 18 of 90
  19. 19. Terre Haute Boys and Girls Club INTERNAL ANALYSIS The SyBA consultant team conducted an internal analysis that emphasized all the main attributes and goals within the Boys and Girls Club. Our goal is to develop a strategy that will help the organization be more successful in the services they offer. We carefully evaluated all material gathered and came up with a few new ideas for improved services and operations. Since the Boys and Girls Club is one of the major contributors to the community and well-being of local youth, we feel it is our duty help enhance the development of the organization. Programs and Services The Boys and Girls Club has many services to offer the community. The capabilities of the organization include services such as: educational programs, sports programs, and a summer day-care program. These programs are beneficial to the community because they are available to youth on a daily basis. For instance, the learning center is open daily, it provides books to read, and it offers tutoring free of charge. The computer labs are available to members daily and it allows them to develop enhanced technology skills. Members can even use their creativity by experiencing hands on, arts and crafts techniques. The junior staff is for boys and girls, ages 10- 14. This particular program allows members to get work experience by assisting staff with small duties while learning to develop responsibility and self-esteem. The sports services offered by this organization are ones that are of high interest to the community’s youth. It offers basketball, flag football, golf, volleyball, cheerleading, and tumbling. There are age groups within each sports segment allowing all children to participate in some way. For instance, basketball offers leagues for preschool, kindergarten through fifth grade, as well as middle school. Flag football offers a league for kindergarten through third grade and Page 19 of 90
  20. 20. Terre Haute Boys and Girls Club the golf program is offered for members aged six through seventeen. Volleyball is for girls and boys grades fourth through eighth; cheerleading is for boys and girls grades kindergarten to fifth, and tumbling which offers private instructors is for grades kindergarten through eighth. Another capability of the Boys and Girls Club is the summer day care program. The day care is for children ages 6 to 13 years. The cost is $50 per week or $17 per day which is very affordable in comparison with other child care programs. While children attend this day care, they have the opportunity to enjoy activities such as swimming, hiking, and fishing. The children are also able to use the resources that are available inside the club including; the game room, learning center, arts and crafts room, computer room, and gymnasiums. The information that was gathered on the Boys and Girls club is accurate data collected directly from personal interviews with Jimmy Smith, the Club’s Executive Director, meetings with the Board of Directors, the SyBA manual, surveys, and several websites. Several questions were asked and the answers collected by each member were carefully observed. The capabilities were detected by analyzing the key goals of the company. We looked to find exactly what the Boys and Girls Club’s goals are, the services offered, how the services coincided, and how they wanted to utilize their abilities. In doing thorough research, we discovered the core capabilities of the Boys and Girls Club are the basketball programs, summer day-care, educational programs, and the low price of membership. The core capabilities are the services and offerings in which the organization specializes. The key components the organization wants to provide is a facility that is affordable for parents and productive for children. SWOT Analysis Page 20 of 90
  21. 21. Terre Haute Boys and Girls Club A SWOT analysis defines the strengths, weakness, opportunities, and threats of an organization. A SWOT analysis is used to help develop a direction for the organization. While conducting an internal analysis, it is important to determine the strengths that would help the organization move from the present state to the desired state and discovering any obstacles that might delay progress from taking place. Opportunities are the actions that can be taken to enhance the organization toward becoming better, while threats are the problems that may set the organization back. Opportunities and threats are forces in the external environment over which the Boys and Girls Club have no direct control over. After talking with the company, we examined their current state and came to a conclusion about what direction they should take. We found the Boys and Girls Club were content with their facility and the services they are providing for the community but they also felt there was plenty of room for improvement. Mr. Smith discussed the possibility of expanding their gymnasiums, wanting to relocate, conducting fundraisers to increase revenue, wanting to create more educational programs, and wanting to involve alumnus. We carefully observed this information and are going to come up with suggestions regarding the expansion of the gymnasiums without having to relocate the entire facility, involving alumnus who then might be able to contribute by making financial contributions, and adding more educational programs, which might help bring more members to the club. These will be discussed later in the recommendations section. By conducting a SWOT analysis we found that some areas could be adjusted to better the services the Boys and Girls Club has to offer. We found that getting parents more involved, as well as alumni, could potentially bring in more funds, staff, and general community support. If the gymnasiums are expanded, it could help bring in more members and more efficient program Page 21 of 90
  22. 22. Terre Haute Boys and Girls Club implementation. We also discovered that the marketing used by the THBGC currently could be redesigned to reach a broader target market and in turn increase community involvement. Strengths and Weaknesses During an internal analysis, it’s important to identify an organizations strengths and weaknesses. Strengths are capabilities and resources that help an organization gain its competitive advantage. Weaknesses are viewed as the absence of certain strengths. It’s vital to identify strengths that will help the organization move from the current state of the capability or resource toward the desired state. At the same time it’s important to identify potential weaknesses that might hinder the organization from closing the gap between the current state and the desired state. The strengths of the Terre Haute Boy’s and Girl’s club include the quality of the facility, staff, wide variety of programs, and low membership fees. The quality of the facility is much higher than that of competing organizations, making it a strengthening aspect. The staff is looked upon as strengths to the organization because these individuals are all well qualified, and know the company inside and out. Each employee goes through various stages of hiring as is discussed in the Human Resource function of the organization. The Terre Haute Boys and Girls Club offer more programs than any other organization in the industry. This wide variety of programs is a key strength of the organization. Lastly, the prices for membership to the Boys and Girls Club are lower than any other organization. The Terre Haute Boy’s and Girl’s Club are able to offer its programs at a lower cost than anyone else, making it a strength. Page 22 of 90
  23. 23. Terre Haute Boys and Girls Club The weaknesses of the Terre Haute Boys and Girls Club include funding and the size of the facility. The company could use more donations from alumni, and it has also seen a decrease in donations from the United Way, making funding a potential weakness. Also, the size of the facility is a potential weakness. If the organization wishes to increase the number of members, there may be a lack of available parking at its current location. To understand the capabilities of the internal business function we talked with Mr. Smith to gain insight concerning the subject. The internal business functions covered in the meeting as well as further research were; Management Information System, Accounting, Marketing, Education, and Human Resource. In this section we will go into depth regarding these functions and their capabilities. Management Information System (MIS) Jimmy Smith informed us that Indiana State University Sycamore IT provided technical services for free. These services would typically cost $70 to $80 dollars an hour therefore the Boys and Girls Club are being cost conservative. Sycamore IT has been servicing the Boys and Girls Club for approximately three and half years. Sycamore IT also provides efficient and effective services to the Boys and Girls club by having a response time of 24 to 48 hours. The Boys and Girls Club has an ideal service dealing with MIS. Marketing Mr. Smith informed us that the Boys and Girls Club utilize the traditional approach dealing with their marketing. He said, “We currently use; TV (channels ten and two), newspaper space, flyers, and radio to promote advertising.” The marketing/advertising for the Boys and Girls Club has been cost efficient, but there is room for change in the way they are currently Page 23 of 90
  24. 24. Terre Haute Boys and Girls Club marketing themselves. The Boys and Girls Club has been passing out flyers at schools in the areas they serve, getting a free television commercial spot on the local channel 10, as well as a free newspaper advertisement in The Tribune Star. Education The Boys and Girls Club makes it mandatory for their employees to attend the Midwest Services. Midwest Services allow the employees to gain a better understanding of how other Boys and Girls Club’s conduct themselves as employees and also as a not-for profit organization. The Program Directors must attend the Regional Conference to see how other Boys and Girls Club’s function compared the Terre Haute Boys and Girls Club. Mitch’s Kids is a program that is used throughout many of the Boys and Girls Clubs across the nation. This program focuses on assisting kids with homework as well as supplying a tutoring service. The program provides club members with the support, resources and guidance necessary to complete the work required of them. Human Resources Mr. Smith told us that the hiring process for the Boys and Girls Club utilizes background checks on any potential employees. He also said that he conducts all the interview questions himself and focuses on hiring skilled people for each position available. He emphasized that, “It would be pointless to hire someone who is great with computers but horrible in sportsmanship to be working in the gymnasium.” Accounting Page 24 of 90
  25. 25. Terre Haute Boys and Girls Club All accounting done internally at the Boys and Girls Club is conducted by Genine Ireland. Ms. Ireland approves the amount of money spent to keep the Boys and Girls Club functioning. She also conducts the employee payroll. There is no true segregation of duties within the organization’s internal control. Every year the Boys and Girls Club has Sackrider and Co., certified public accounting firm, to overlook their financial information and perform an annual audit. Sackrider and Co. has been providing the annual auditing services for over 10 years and the Boys and Girls Club has never had issues with their internal accounting. The Boys and Girls Club has two capital accounts and one memorial fund. These accounts are located at Terre Haute First Financial Bank. The only people who have access to these accounts are Ms. Ireland and Mr. Smith. So far, the accounting for the Boys and Girls Club seems to have been conducted in an ethical manner. The implementation of internal control with apparent segregation of duties would be increasingly ideal. It is a high risk to have one person account for, manage and record the assets of the organization and separating the work would alleviate the work load, risk of error and possible material misstatements in the financial statements. The consulting team conducted an internal analysis in order to develop a strategy to improve the Boys and Girls Club as an organization. When doing the internal analysis the first step was to identify the capabilities and resources the Boys and Girls Club provided. We found that the capabilities of the Boys and Girls Club include; sports programs, educational programs, and summer daycare. The resources they provide are divided between tangible and intangible assets. The second step conducted in the internal analysis was the SWOT analysis. The SWOT analysis defines the strengths, weaknesses, opportunities, and threats of the Boys and Girls Club. The third step was to identify the core strengths and weaknesses of the Boys and Girls Club. Strengths are the capabilities and resources that help an organization gain its competitive Page 25 of 90
  26. 26. Terre Haute Boys and Girls Club advantage. Weaknesses are viewed as the absence of certain strengths. Some strengths of the Boys and Girls Club include: the quality of the facility, staff, variety of programs, and price of membership. Weaknesses found include funding, a marketing strategy, and the size of the facility. After conducting the internal analysis we will prioritize the capabilities and resources in the order of which has the largest gap to the one with the smallest gap between desired state and current state. This ranking will be used to see where the Boys and Girls Club is and how far they are away from their desired state. Page 26 of 90
  27. 27. Terre Haute Boys and Girls Club EXTERNAL ANALYSIS Page 27 of 90
  28. 28. Terre Haute Boys and Girls Club EXTERNAL ANALYSIS The external analysis is used to determine the conditions, events, and factors surrounding an organization which influences the activities and choices, and determines the opportunities and risks. It enables the firm to obtain a clear picture of threats and opportunities prevalent in the firm’s external environment. It is important that organizations understand their external environment thoroughly and are able to adjust to the changing conditions of the external environment. The external environment can affect the organization either directly or indirectly. To determine these factors we kept the focus on three key areas: the general environment, the industry, and the partners and alliances. The general environment consists of four parts, which are generally referred to as the PEST factors; they include political/legal factors, which are laws, regulations, judicial decisions, and political forces in effect at federal, state, and local governments, economic factors such as purchasing power, inflation, and the organization’s capital, socio-cultural aspects which are society’s traditions, values, attitudes, and beliefs, and Technological aspects, which pertains to those services affected by the vast changes in technology. An organization is directly affected by its customers, suppliers, and competitors. The external factors that can affect an organization indirectly are the PEST factors. The Terre Haute Boys and Girls Club deals with the external environment just like any other business in the Terre Haute area. We have used the PEST analysis along with other general research studies to help determine the external environment for the Boys and Girls Club. The Boys and Girls Club offers many programs for a variety of people of all ages. The goal is to provide kids with a safe after- Page 28 of 90
  29. 29. Terre Haute Boys and Girls Club school environment, as well as a fun and educational experience. The external environment plays such a big role for the Terre Haute Boys and Girls Club because the Club heavily relies on the community and other external factors for financial resources. The following paragraphs will discuss the threats and opportunities that factor into the external environment of the Terre Haute Boys and Girls Club. Threats Organizational threats consist of different external factors in the environment that could propose a threat to an organization. Some threats are more difficult to deal with than others. It is important that organizations such as the Terre Haute Boys and Girls Club are aware of their threats and are always thinking ahead to try and prevent these threats from having a negative impact on the company. Most of the threats and opportunities for the THBGC come from the General Environment, the Industry, and Partners and Alliances. Threats within the industry include buyers, suppliers, and same service organizations in the surrounding area. These threats are local businesses or community facilities that can potentially take business away from the THBGC. We decided the main threat for the THBGC here in Terre Haute is the Terre Haute Family Y. A few reasons why is because they offer more programs directed towards younger girls such as gymnastics, swimming, and cheer club. They also offer co-ed flag football which can be a threat because it can potentially decrease the number of participants involved in the Youth Football Program. The flag football program currently consists of about 160 participants and they look to increase that number next year. Also, the Y has a basketball program that poses a threat because they are constantly trying to recruit kids to participate. They currently only have Page 29 of 90
  30. 30. Terre Haute Boys and Girls Club only 60 kids involved in their basketball program. For this reason, the Y considers the THBGC as a major threat because they simply cannot get much of a program going due to the current success of the dominating THBGC basketball program. Another organization in the Terre Haute area that could be considered a threat would be the Wabash Valley Family Sports Center. At the present time, they are not a major threat to the THBGC, but have potential because they are more family oriented and the membership cost (youth-$30/yr) is very similar to that of the THBGC (youth-25/yr). Lastly, loss of partners and members would also be considered one of the major threats for the THBGC because it is rather difficult to receive funding. The THBGC cannot afford to lose these resources and must continue to use their strengths to fend off these threats. Some of the partners involved with helping out the THBGC include, United Way, Staples, First Financial Bank, and Wal-Mart. Opportunities Organizational opportunities are known as potential factors within the organization and community, which could have a positive impact on the organization itself. Opportunities, like threats, come from the industry, the general environment, and from partners and alliances. Businesses should always be looking for potential opportunities, because one never knows what these opportunities can bring to the table for the organization. In the world of business today, every little bit helps especially with a not-for-profit organization such as the THBGC. After researching other THBGC facilities in the Midwest and around the U.S., we found that there are many other programs out there that are offered. As a group, we particularly liked the idea of a leadership program. A Leadership program consists of teenagers, ages 15-18, who are involved in activities such as community service, tutoring, coaching, teaching, and simply being good role models for the younger generation. We feel this is an opportunity because, currently, no one else Page 30 of 90
  31. 31. Terre Haute Boys and Girls Club in the community offers a program like this. It would not only be great for the younger kids, but great for the older kids as well. This will help develop better leadership, communication, and teaching skills to make them more “well rounded” individuals, which ties right in with the mission statement of the THBGC. Another opportunity we feel the THBGC should consider is expanding their after school tutoring program. We interviewed a total of eight middle schools around the Terre Haute area and found that most students need help with math and writing. It is a convenience that ISU and local high schools surrounds the facility. This is an opportunity for them to expand their tutoring program so they can have a larger impact on the education of kids in the community. It will not only help the kids build more confidence academically, but it will provide guidance and advice anytime they needed it. Other opportunities within the industry include utilizing the board of directors and increasing donations from suppliers. Opportunities in the general environment include federal and local grants, fundraising, and increased member fees. Currently the membership cost is a minimal $25 a year, which could be looked into for some sort of increase in profit. Lastly we found that the Club’s alumni, ISU’s College of Education and Sports and Recreational Management students, and the high schools are all potential opportunities to become THBGC’s partners and alliances. Opportunities and threats play a significant role in any organization’s success. Organizations must always be aware of potential threats, and be ready to pursue potential opportunities. What we have found so far is that the THBGC is well managed and well prepared Page 31 of 90
  32. 32. Terre Haute Boys and Girls Club when it comes to dealing with the different factors of the external environment. Throughout the semester we will try to find ways to help manage these external factors even better. As we began to start our external analysis, we found it vital to identify the opportunities and threats available to the Boys and Girls Club that would affect overall performance. To determine these factors we focused on three key areas: the general environment, the industry, and the partners and alliances. The general environment consists of four parts, which are generally referred to as the PEST factors. General Environment PEST Analysis Political/Legal factors, which are laws, regulations, judicial decisions, and political forces in effect at federal, state, and local governments. Economic factors such as purchasing power, inflation, and the organization’s capital. Socio-cultural aspects include society’s traditions, values, attitudes, and beliefs. The technological aspect depends upon whether the organizations services are affected by changing technology. The industry consists of the suppliers, competitors, and buyers. In the case of the THBGC, examples of industry specific factors would include United Way (supplier), YWCA and Wabash Valley Sports Center (competitor), and the members and their parents (buyers). Finally, the partners and alliances are the people who can help create value for the stakeholders. Our primary source of data has been our initial meeting with Mr. Smith, the Executive Director, and three board members. It was there that most of the pertinent information was disclosed. We as a team conducted an interview in which we used the results to guide us through our external analysis. The interview provided us with important information such as: monetary Page 32 of 90
  33. 33. Terre Haute Boys and Girls Club investors, board members, donators/suppliers, competition, and partners and alliances. We also learned about the various programs offered at the facility which include, basketball (main attraction), football (Youth Football League), the early bird summer camp, after school tutoring, and a newly implemented cheerleading program for the female members. Our meeting ended with a tour of the facility. After conducting the initial interview we used our meeting time to analyze the information and to categorize the data into their respective categories (general environment, industry, and partners and alliances). There was also a board meeting, in which a few of our group members attended to gain additional insight. In addition to the fact that the club website provided us with the mission statement, a list of community events, and contact information for the staff (Executive Director, Program Director, Assistant Program Director, and Office Secretary), we felt that we were ready to turn the data collected into meaningful information. Next, we took everything that we learned about the Boys and Girls Club and discussed whether it was a threat or an opportunity. For the purpose of this assignment, a threat is anything that can prevent an organization from reaching its desired state and an opportunity is anything that helps the organization to reach its desired state. Threats Threats to the general environment include: Political and Legal issues such as zoning laws which deal with the way land can be used according to government regulation. This is a threat because it is against the law to build, move, or add anything to existing structures that can harm existing residents and businesses. Liability issues that deal with the children getting hurt while on the property of the Boys and Girls Club. We feel that this is a threat because parents Page 33 of 90
  34. 34. Terre Haute Boys and Girls Club won’t be willing to leave their children in a place that they don’t view as safe and also because the club is held responsible for the well being of the children while under their care. Opportunities Political and legal opportunities were possible relocation of the club and the chance to acquire more local and federal grants to help fund the club’s operations. Relocating the club is seen as an opportunity because it gives the club the opportunity to build a facility that better suits the needs of the club, which will hold more members, more programs generating more revenue. Acquiring more federal and local grants could help to fund all the clubs current and future programs. Research on other clubs; show that United Way isn’t the only source of funding. They have partnered with local and federal businesses such as: Taco Bell, Reader’s Digest, GAP Foundation and the list goes on. Economic threats included the donation cutbacks (United Way) and the increase in minimum wage. These are viewed as threats because the primary source of funding (United Way) is taking away more money each year, while you have to keep paying your employees more wages. On the opportunity side of the economic trail, we have the opportunities to increase membership fees and getting a bigger facility. These are chances to increase revenue, while giving the club a place that can support all the programs they wish to do. Socio-Cultural threats and opportunities deal with the clubs reputation, gaining new members (female), and losing current members due to higher cost of living. The reputation of the club is sound within the community, but we know that it only takes one lost or hurt child to sway the public’s opinion from a positive to negative image. This deals with maintaining and improving the reputation throughout the community. Losing members to a higher cost of living is a threat because as prices increase many families will have to cut back on Page 34 of 90
  35. 35. Terre Haute Boys and Girls Club their spending and the club may be one of those things getting cut back. Also, enticing more females by gearing more programs toward them is viewed as opportunity to increase membership and increase revenue. Lastly, technological threats and opportunities involve updating the club facilities and equipment. This includes computers, game room, of course the new gym. This is viewed as a threat and an opportunity because they need to stay updated to keep up with competition, but also want to better suit the wants and needs of the members. Industry Threats Industry threats include the competition. The club’s major competitors include the Family Y, Wabash Valley Family Sports Center, and the West Vigo Community Center. These are viewed as threats and competitors because they offer similar programs and services for the community. They also compete for the same funding as the club. This can cause major problems when trying to acquire funding for more programs. Industry opportunities include increasing donations from suppliers, more involvement from the board of directors, and integrating more programs. These are chances to acquire more funding through donations and programs giving the club an opportunity to move in the direction of their mission statement. Partners and Alliances Partners and Alliances include United Way, Staples, First Financial Bank, Youth Football League, and Sam’s Club. These partners help us to create value for our stakeholders. It would be wise to maintain a healthy relationship between the club and the aforementioned partners. In conclusion, the external analysis is a method used to identify opportunities and threats that can affect overall performance. These factors play a huge role in not only the strategic Page 35 of 90
  36. 36. Terre Haute Boys and Girls Club process consultation, but in an organization’s overall success. It is important that we utilize the opportunities we have and minimize the threats that may arise. Page 36 of 90
  37. 37. Terre Haute Boys and Girls Club GAP ANALYSIS Page 37 of 90
  38. 38. Terre Haute Boys and Girls Club GAP ANALYSIS Sycamore Business Advisors has evaluated the directional, internal, and external segments of the Terre Haute Boys and Girls Club. Through this evaluation, we have identified the current state position of the THBGC and desirable future state for them. Prioritizing the GAPs will give the THBGC a basis for taking the next step toward achieving sustainable competitive advantage. These GAPs have been identified and are important to the development of the Terre Haute Boys and Girls Club. SyBA has prioritized these GAPs to assist the THGBC in deciding how and when to address the GAP. GAPs are prioritized as urgent, non-urgent, critical, or non-critical. An urgent GAP is one that needs to be addressed immediately. A non-urgent GAP is one that does not have to be addressed immediately, but should be addressed in time. A critical GAP is one that has a direct impact on the success of the organization and a non-critical GAP does not have a direct impact, but would be a potential consideration for the future. GAPs that are both critical and urgent are the most vital for the Terre Haute Boys and Girls Club’s success. The following information reviews the GAP findings for the THBGC and prioritizes their urgency and critical status. Table 2 – Gaps Matrix Critical Non-Critical Urgent New Programs Marketing New Gymnasium Accounting Practices Non-Urgent Youth Football Transportation Page 38 of 90
  39. 39. Terre Haute Boys and Girls Club Alumni Involvement Board of Directors New Location Prioritization of GAPs 1. New Programs The Terre Haute Boys and Girls Club’s current state of programs is lacking in those appealing to girls. The desired state for the THBGC would be to offer programs for girls in order to achieve a higher population of females among their members. 2. Marketing The THBGC’s current marketing strategy consists of flyers given to children at the local schools. The desired state for the THBGC would be to expand their marketing efforts in order to reach a wider audience within the community. 3. New Gymnasium The THBGC’s current gymnasiums are becoming crowded during their basketball league’s games and practices. The THBGC’s desired state would be to build a new gymnasium in order to accommodate all of the members and their activities. 4. Alumni Involvement Page 39 of 90
  40. 40. Terre Haute Boys and Girls Club Currently, the THBGC’s alumni are not involved in their operations and fundraising activities. The desired state for the THBGC would be to reach out to former alumni and involve them when conducting fundraisers and during daily operations. 5. Board of Directors The Board of Directors of the Terre Haute Boys and Girls Club is not involved in daily operational activities. The desired state for the THBGC would be to rely on the Board of Directors for more involvement concerning operations and community involvement, in addition to their current monthly meetings. 6. Youth Football League The THBGC currently acts as a partner to the Youth Football League, because of their use of the THBGC’s football fields. The Terre Haute Boys and Girls Club desires to have a more active role in the Youth Football League’s operations. 7. Accounting Current State Currently at the Boys and Girls Club Genine Ireland and Jimmy Smith run the entire revenue cycle, handling all financial functions. That is, everything from ordering, recording, authorizing, signing, and accounting for all the assets, liabilities, and equity, is done through Ms. Ireland and Mr. Smith. Ms. Ireland runs most of the financial transactions, and has access to the banks controlled by the THBGC. Any major transactions must go through either Mr. Smith or Ms. Ireland. It has also been brought to our attention that there are no receipts recorded for the Page 40 of 90
  41. 41. Terre Haute Boys and Girls Club membership fees paid for each child. This means that there could be children that have not paid the minimum fees for programs, and are still participating in the activities. The THBGC is audited annually by an independent accounting firm, Sackrider & Co. as to comply with the stipulations set by United Way as one of United Way’s funded organization. So far, the CPAs have issued an unqualified opinion, which depicts that there is no error in the accounting procedures of the organization. Auditing Concern From an auditing standpoint however, there is cause for concern in the high inherent and control risk of the internal control, which Dr. W. Svihla has noted about the organization. This increased risk also denotes an increased risk of material misstatement. In essence, the way the organization is set up increases the chance of theft, error, and/or fraud. Ideal State In an ideal situation, there would be a segregation of duties at a minimum. An internal control and an audit committee on the board of directors would also greatly minimize the risks that are currently present in the organization. Although Sackrider & Co. may discloses that there is increased risk in the organization, as a CPA firm they are still liable should the organization be pulled into litigation. Dr. Svihla has been on litigating teams as a CPA and a lawyer and has witness many such situations where the accounting firm that issued the audit was greatly punished for the lack of changes in procedures, etc. Another suggestion would be to have someone on the Board of Directors reconcile the bank statement as a control over what has happened in the month passed. This will greatly reduce the risks associated with the Club currently. Another control that would reduce the risk of theft, etc. would be a periodic check of Page 41 of 90
  42. 42. Terre Haute Boys and Girls Club expenditures by someone on the Board to verify that there are no large and/o unusual outgoing payments in and out of the THBGC. 8. New Location The current location of the Terre Haute Boys and Girls Club has served them for over 100 years, but they are almost outgrowing the facility. Ideally, a new location for the THBGC could be found that would accommodate all of their current and future needs. 9. Transportation Currently, the THBGC does not offer transportation services to its members. An ideal state for the Boys and Girls Club would be the ability to provide transportation to its members, in order to safely transport members to and from events, and to possibly attract new members. Page 42 of 90
  43. 43. Terre Haute Boys and Girls Club RECOMMENDATIONS Page 43 of 90
  44. 44. Terre Haute Boys and Girls Club RECOMMENDATIONS New Programs During our research, we have observed a need for new educational programs and a need for programs for female members of the Terre Haute Boys and Girls Club. We conducted surveys and questionnaires and have developed the following recommendations. Competitive Sustainable Advantage In order to create a sustainable competitive advantage companies often implement new products and services. The goal is to keep customers, current and prospective, from the same monotonous routine. By adding a new program the Boys and Girls Club is able to keep current members satisfied and attract new members. Summer Program with the Mental Health Association (MHA) In an effort to bring more educational programs to the Boys and Girls Club and to compensate for the substantial cut in funding from the United Way, SyBA recommends a joint project with the Mental Health America Vigo County Chapter (MHA). The MHA is also an agency of the United Way of the Wabash Valley, and a combined effort would utilize funding in an efficient manner. We arranged a meeting with Marissa Tingley, the Youth Coordinator of the MHA. During this meeting, we discussed programs that could benefit both the Boys and Girls Club and the Mental Health of Vigo County while attacking the community void for one such program. Ms.Tingley advised us that she would be willing to work with the Boys and Girls Club on a summer project and SyBA recommends the following options. Page 44 of 90
  45. 45. Terre Haute Boys and Girls Club Too Good for Drugs The first is a summer session of the MHA’s “Too Good for Drugs Program” which is an educational program that could benefit the Boys and Girls Club. This program is designed to involve not only the students, but their families and the community as well. This really targets the desire stated by principles of the schools we surveyed for a program that encourages family involvement and teaches kids the value and moral built from families. Students participating in the “Too Good for Drugs Program” learn the importance of goal-setting, how to make decisions to keep their bodies healthy, the harmful effects of tobacco, alcohol and other drugs on the body, resistance strategies and decision making skills. This program would be presented and directed by Ms. Tingley at the Boys and Girls Club for a week or more during the summer, with each presentation lasting thirty to forty minutes. Ms. Tingley would need the assistance of one staff member of the Boys and Girls Club, and she would bring the presentation materials. No Fear Future Club The second program is one that Ms. Tingley offered to open a chapter of the MHA’s “No Fear Future Club” which would also be during the summer months at the Boys and Girls Club. The “No Fear Future Club” provides activities to help students cope with stresses that may be the beginning of many common mental health problems. Students participating in this club put their skills into action while helping people of all ages. They learn the important role each individual plays in the local community. Some examples of projects that the “No Fear Future Club” has participated in are: Teddy Bear Drives, for children who are not in their own home; cards, decorations and small gifts for nursing home residents, and hand created birthday cards for the residents of homeless shelters. Page 45 of 90
  46. 46. Terre Haute Boys and Girls Club We feel that this program would provide educational and emotional assistance to the members of the Boys and Girls Club and provide more community involvement for the Boys and Girls Club members. Ms. Tingley has again offered her assistance, along with support from the Boys and Girls Club staff members. This would be a program that the Boys and Girls Club could offer to their members, as a means of teaching them the importance of recognizing everyone in the society. Softball Softball is one of the new programs we decided to incorporate into the BGC organization. We decided to implement this program because we think it is a great way to attract more female members. We spoke with to the ISU softball coach who thought this was an excellent idea. Of the 19 players on the ISU softball team, the coach, Brenda Coldren, agreed to volunteer some of the players to participate in the program. Since ISU’s softball season runs October through November, we thought it would be an excellent program to operate primarily during the summer months. We decided the first 3 weeks of each month should be working on skills and basic education for softball and the fourth week should consist of a scrimmage with team captains. The new teams should have a minimum of 10 girls, and 2 ISU players, and 1 BGC staff member. At the end of the season each BGC member will be recognized and awarded an ISU softball award, compliments of BGC and the actual ISU Softball team. The awards will include; most valued player (MVP), most improved, most spirited, leadership, and participation. The winners will receive an ISU softball t-shirt, and/or season tickets for family and friends. Soccer Page 46 of 90
  47. 47. Terre Haute Boys and Girls Club Soccer is another sports program we decided to incorporate to attract more female members. This program will run similar to the softball program, but it will be operated during the spring season, March and April. Erin Murray the ISU soccer team’s assistant coach volunteered to help us with the program. She informed us after speaking with the ISU soccer team members, they were ecstatic of the opportunity to volunteer their athletic abilities for such a good cause. Marketing After identifying gaps within the Boys and Girls Club of Terre Haute, we as a group concluded that there is a distinct gap within the marketing sector. Through research, we have found the organization uses local television, newspaper, radio, and schools for advertising purposes. Current State The organization uses the local news channels, 2 and 10, to set up question and answer type interviews during commercial and news breaks. They use channel 102.7 on the radio for spot fillers, and they use the “notice” section in the local newspapers. All of the television, newspaper, and radio advertising are free of charge. The only money spent on advertising is the cost of printing out flyers that are handed to local schools. The flyers are handed out to every child in the Vigo County School Corporation, and the total cost of this is estimated at a total of 200 dollars. After identifying the Boys and Girls Club’s marketing objectives, we have noted as a group that they have developed an advertising technique that is very cost efficient. Therefore, we think it would be a great idea to help the organization by developing new marketing ideas Page 47 of 90
  48. 48. Terre Haute Boys and Girls Club that would follow their marketing strategy. The following three recommendations for the organization are cost efficient and may improve the marketing strategies of the organization. Recommendations The first recommendation is the utilization of Indiana State University’s film services. The Boys and Girls Club could collaborate with students who are studying film at Indiana State University and produce a commercial. This would be free of charge for the Boys and Girls Club, and this would also be a great way for students at ISU to get hands on real world experience. In doing so it would allow the viewers to see what the Boys and Girls Club has to offer (variety of services, facilities and staff) the local children and community besides watching a question and answer type commercial. Below is a sample of a commercial that has been prepared by the marketing team of SyBA for Terre Haute Boys and Girls Club. Commercial Exterior: The beginning of the commercial should show the B&GC exterior shot transitioning to Jimmy talking about the B&GC’s history in Terre Haute. (Example picture provided below) - “For 100 years the Terre Haute B&GC has provided the community with a safe and enriched learning environment for the children in the local area.” - 4 seconds Figure 1 – Commercial Image 1 Page 48 of 90
  49. 49. Terre Haute Boys and Girls Club Interior: After the transition Jimmy should be walking down the halls of the B&GC talking about the mission statement. Then making his way into the gymnasium (talks about the services provided), making his way into the computer room (talks about the services provided), Jimmy (hallway): The Terre Haute Boys & Girls Club's mission is to enable all young people, especially those who need us most, to reach their full potential as productive, caring, and responsible citizens. - 4 seconds Jimmy (gymnasium): Club members may participate in basketball and other games in our gymnasium. The gymnasium is open for free play when our basketball league or practices are not going on (have kids playing basketball or some kind game in the back ground). - 5 seconds Figure 2 – Commercial Image 2 Page 49 of 90
  50. 50. Terre Haute Boys and Girls Club Gymnasium Jimmy (computer lab): Here at the B&GC we offer the computers providing access to the internet and computer skills classes from beginners to advanced users (have children browsing or doing homework on the computers). - 4 seconds Figure 3 – Commercial Image 3 Computer lab Jimmy (arts and crafts room): Another program we offer is the Arts and Crafts Center, where members can participate in numerous projects and explore their creativity. - 4 seconds Figure 4 – Commercial Image 4 Page 50 of 90
  51. 51. Terre Haute Boys and Girls Club Arts and crafts room Jimmy (learning center): Members can participate in tutoring, reading, worksheets, and many more educational activities. These services are included with membership and may be set up by contacting the club to schedule the sessions. - 4 seconds Figure 5 – Commercial Image 5 Learning Center Jimmy (game room): The children at the B&GC may participate in open play or air hockey tournaments, billiards, bumper pool, table tennis, shuffleboard or play games on our play station (have the children playing and laughing, showing them having a good time). 4 seconds Page 51 of 90
  52. 52. Terre Haute Boys and Girls Club Figure 6 – Commercial Image 6 Game room Exterior: Jimmy is standing in front of the B&GC talking to the viewers. Jimmy (says): The Terre Haute Boys & Girls Club's mission is to enable all young people, especially those who need us most, to reach their full potential as productive, caring, and responsible citizens. Come join the B&GC (state the fee), and be part of 100 years of tradition in the Terre Haute community. - 5 seconds Time Warner Cable The second recommendation would tie itself into the completion of the first recommendation. Once the commercial has been filmed and edited by the Indiana State University Communication and Marketing department the Boys and Girls Club could broaden its marketing reach by paying for a cable commercial spot. If the Boys and Girls Club utilizes the Time Warner Cable services the Boys and Girls Club would be able to reach a more diverse audience (young adults, women, men or families). Time Warner Cable allows the Boys and Girls Club’s commercial to be seen on key channels (see table below 1). The cable company would also increase the geographical reach of advertising to target the potential members (see Page 52 of 90
  53. 53. Terre Haute Boys and Girls Club table 2). We are aware that the Boys and Girls Club has been cost efficient but a cable spot would not be costly at all. The table below that would illustrate the networks the commercials would air on, the time the commercials would air, the number of commercial spots, spots per month, monthly investment, and average cost per commercial. For 223 spots per month the monthly investment is $250 dollars with an average cost of $1.12 per commercial. We think it would be vital for the Boys and Girls Club to have a commercial produced utilizing Indiana State Universities’ resources and then having the commercial played via cable net work and the local channels the Boys and Girls Clubs currently use (channel 2 and 10). Table 3 – Time Warner Cable Channels and Costs NETWORK DAYPART SPOTS FOXFAMILY M-S, 6am-12pm 25 HALLMARK M-S, 6am-12pm 25 NICK M-S, 6am-12pm 25 LIFETIME MOVIE M-S, 6am-12pm 25 TRAVEL M-S, 6am-12pm 25 CNBC M-S, 6am-12pm 25 OXYGEN M-S, 6am-12pm 25 ANIMAL PLANET M-S, 6am-12pm 25 TVLAND M-S, 6am-12pm 25 SPOTS PER MONTH 223 MONTHLY INVESTMENT $250 AVERAGE COST PER COMMERCIAL $1.12 Figure 7 – Cable Network Service Page 53 of 90
  54. 54. Terre Haute Boys and Girls Club Flyer Redesign & Redistribution The third recommendation is a change in the way the flyers have been distributed recently. We as a group think it would be better for the parents to be given the flyers instead of the children. We believe many of the flyers are not even seen by many of the parents because they are thrown away or discarded before they make their way home and are not guaranteed to even reach any parents. We thought it would be a good recommendation to hand them out at parent-teacher conferences and the flyers are reformatted so they could be more appealing to the parents (sample of flyers on the next pages). Page 54 of 90
  55. 55. Terre Haute Boys and Girls Club Spring & Summer Programs: - Volleyball League - Early-bird Summer Day Camp - Summer Basketball Camps - Junior Staff - Golf Fall Programs: - Middle School Basketball League - Basketball League - Pre School Basketball League - Parent/Member Free Throw Contest - Basketball Skills Camp - Flag Football - Healthy Choices For Life - Tumbling - Cheerleading - Fall Baseball - Junior Staff - Tutoring Page 55 of 90 Of Terre Haute Terre Haute Boys & Girls Club 220 North 3rd Street Terre Haute, IN 47807 Membership Fees: - $25 (member fee) - $5 (day pass fee) - $40 (golf fee) - $50 (Early-bird fee) - $17 (Non-member early-bird daily fee) - $40 (Basketball Camp fee) - $45 (Non-member Basketball Camp fee) - $25 (Volleyball Fee) - $15 (Basketball Skills fee) - $40 (Pre-school basketball fee)
  56. 56. Terre Haute Boys and Girls Club New Gym Alumni Involvement Page 56 of 90
  57. 57. Terre Haute Boys and Girls Club Page 57 of 90
  58. 58. Terre Haute Boys and Girls Club New Gym The club is considering taking on the expansion of the West gymnasium as a strategy for the growth of the organization. The purpose of the expansion is to achieve growth through product/market exploitation, product development, or through product/market diversification. Product/market exploitation targets current members and aims to increase their participation in the activities the club currently offers. Product development also targets current members but attempts to increase participation through offering new programs. As for product/market diversification, the goal is to attract new members by creating new and improved programs. However, due to several economic factors in the Boys and Girls club’s environment, we do not predict that the expansion is a feasible project. These factors include the economic instability, the scarcity of parking space, the increase in the program and facility expenses, and the high switching costs in obtaining new members. If these issues can be resolved, and funds can be secured to cover these expenses, we predict that the expansion would be a positive strategy for growth. Economic Instability: Building a new gym during these times of economic uncertainty would be a precarious decision. The Boys and Girls Club would have to invest over $1 million to build the new gym. Since the beginning of this year, 240,000 people have been reported to have lost their jobs in the United States. This could cause the members of the Boys and Girls Club to cancel their membership because it just isn’t a high priority. For these reasons we feel the new gym may not attract the new members the Boys and Girls Club had hoped for. Page 58 of 90
  59. 59. Terre Haute Boys and Girls Club Scarcity of Parking: Parking is the main obstacle that stands in the way of building the new gymnasium. The 12,000 square foot expansion will extend the gymnasium to the North. This will result in the loss of almost 50 parking spaces. Considering that the club already experiences a shortage of parking spaces during league competition, this expansion will only intensify the problem. Parking away from the club can become a nuisance and danger to parents and the club members. This could dissatisfy them and result in the loss of their membership. Unless the club is able to secure additional parking nearby, by purchasing an adjacent lot, or by building a two story parking garage on the lot on 2nd street, the expansion will only harm the Boys and Girls Club. Increase in Expenses: The expansion of the gymnasium will result in the addition of almost 12,000 square feet to the facility. Although the expenses associated with the new gym will vary depending on what it is used for, there will be an increase in the program expenses, maintenance expenses, and personnel expenses. Heating and Electric Costs: The addition of the gymnasium will increase the energy consumption at the Boys and Girls club. We do not expect that this addition will affect the club’s utility costs in the short run. However, in the long run, with inflation rates, the Boys and Girls Club will experience an increase in its utility expenses. Consider the electric expenses. The Boys and Girls Club is currently enrolled in the Budget Billing Program for paying its electric bills, and pays a flat rate Page 59 of 90
  60. 60. Terre Haute Boys and Girls Club of $1,331 a month, resulting in a $15,972 expense annually. If the electric rates increase at a 2% rate every two years, in eight years, the Boys and Girls club electric expenses will be paying $977 more a year. The following table illustrates the expected rate of increase for the electric bill: Table 4 – Increasing Electric Costs Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year Electric Costs $15,97 2 $15,97 2 $16,29 1 $16,29 1 $16,61 7 $16,61 7 $16,94 9 $16,94 9 $17,28 8 $17, In light of the current state that the economy is in, and the decrease in the funds that the United Way provides to the club, these increases in utility expenses will affect the Boys and Girls club’s long term operations. New Program Costs: One of the main goals of expanding the gymnasium is to achieve growth through product development and through product/market diversification. Product development will require the adoption of more activities and programs or the improvement of existing programs. This strategy targets current members, and will hopefully lead them to participate in these programs, and increase the club’s income through program enrollment fees. As for product/market diversification, this refers to the creation of new programs that will target youth that are not members of the Boys and Girls Club. Gaining these new members will increase both membership and program fees. Although these new programs will benefit the Boys and girls club financially, the operations of the programs will result in more expenses. To illustrate these expenses, we Page 60 of 90
  61. 61. Terre Haute Boys and Girls Club estimated the basic costs that would be associated with hosting an indoor soccer league and with improving the gymnastics program. According to a survey we distributed to 148 students from Terre Haute South, North, and West Vigo, asking them what activities and programs they would like to see implemented and improved upon at the Boys and Girls club, 9 percent of the girls said that they would like to see an improved gymnastics program. Seven percent of the freshman said they would be interested in indoor soccer. The implementation of these programs are attainable and not out of the reach of the Boys and Girls club. The costs calculated include basic equipment that the facility would need. For the gymnastics program, we obtained the costs of the basic supplies that will improve the Boys and Girls Club’s current Gymnastic and tumbling program, we referred to Professional Athletics. Figure 8 – Gymnastics Costs Equipment Cost Four 5'x10'x4' Folding Mats $1,400 One Trampoline $800 One Balance Beam $1,800 One Horizontal Bar Set $1,400 Total Cost $5,400 Indoor Soccer: As for Indoor Soccer, we obtained the costs of four soccer nets and twenty soccer balls from Sears. Figure 9 – Indoor Soccer Costs Page 61 of 90
  62. 62. Terre Haute Boys and Girls Club Equipment Costs Four soccer nets/goals $280 20 Soccer Balls $360 Total Cost $640 Gymnasium Maintenance and Upkeep Costs: The expansion of the gymnasium will almost double the size of the current gym. Currently, the floors of the gymnasiums are maintained professionally once every two years. This costs around $2,400 for each gymnasium. We estimate that the 12,000 square foot expansion will cost another $2,400 every other year. As for daily janitorial expenses, we do not expect that they will be affected. Currently, these needs are covered by one janitorial staff and the individuals serving community service hours at the club. Over a ten year span, the Boys and Girls club will incur an additional $12,000 to maintain the new gymnasiums floor. Hiring Costs: Assuming the expansion leads to an increase in participation rates and/ or the adoption of new programs, there will be a need to hire more staff to supervise the club members. Providing a safe environment with professional supervision is an important competitive advantage of the Boys and Girls Club. We recommend that the Boys and Girls Club hire at least two more employees to maintain this strength. The table below calculates the cost that the Boys and Girls club would incur if it hired one to five employees over 10 years. The calculations are made on the assumption that the Page 62 of 90
  63. 63. Terre Haute Boys and Girls Club employees will be working 30 hours a week, 48 weeks a month, at minimum wage. The calculations also include a yearly inflation rate of 1.032. The following figure illustrates the effect of inflation on minimum wages for 5 employees over ten years: Figure 10 - Inflation Increase effect on Minimum Wages every 5 years Hiring two employees to help supervise the members and/or assist with the new programs will result in an additional hiring expense of $19,468 at the end of the first year. The following table is an illustration of the effect of inflation on minimum wages for 5 employees over ten years. Table 5 – Inflation Increase effect on Minimum Wage over 10 years Employees Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1 $9,734 $10,045 $10,367 $10,698 $11,041 $11,394 $11,759 $12,135 $12,523 $12,924 2 $19,46 8 $20,091 $20,734 $21,397 $22,082 $22,788 $23,518 $24,270 $25,047 $25,848 3 $29,20 1 $30,136 $31,100 $32,095 $33,123 $34,182 $35,276 $36,405 $37,570 $38,772 4 $38,93 5 $40,181 $41,467 $42,794 $44,163 $45,577 $47,035 $48,540 $50,093 $51,696 Page 63 of 90
  64. 64. Terre Haute Boys and Girls Club 5 $48,66 9 $50,227 $51,834 $53,492 $55,204 $56,971 $58,794 $60,675 $62,617 $64,621 With the decrease in the funds provided by the United Way, it is important for the Boys and Girls club to secure the funds to cover these new expenses, as to ensure they do not interfere with current operations. The club would have to seek sponsorship, implement fundraising events, obtain more membership fees by attracting new members, and obtain more program fees by increasing participation rates. High Switching Costs: According to the survey we conducted, we concluded that only a small fraction of that sample attends the Boys and Girls club. Furthermore, 35 percent of the students said that they attended their current after school activity provider because their family and friends already go there. This leads us to believe that the Boys and Girls club would have to implement heavy marketing and program development to gain this market, resulting in high switching costs. This poses a significant barrier to entry for this unreached market. Alumni Involvement An independent survey done by Louis Harris and Associates’ verifies that the Boys and Girls Clubs around the globe run effective programs that help young children foster self- confidence, a sense of belonging, and hope to aspire towards their future goals. Furthermore, research on alumni showed the various ways that many of the former members said the club impacted their lives in one way or another. The results are as follows: 80% said the club helped them know right from wrong, 79% said the club gave them self-confidence, 78% said the club Page 64 of 90
  65. 65. Terre Haute Boys and Girls Club gave them self-esteem as a child, 72% learned good leadership skills while participating in club activities, 70% avoided difficulty with the law because of the club, 69% said having someone to talk to, 64% said the club helped them with their goals and aspirations, 57% said the club helped with deciding about work life and later careers, and 56% said the club gave them the tools needed to be successful in high school. Alumni impact It’s clear that the Boys and Girls Clubs’ has impacted millions of lives over the years. It would be wise to keep in contact with these members. Everyone needs to have a sense of belonging and acknowledgement for the things they have done whether it is in the past, present or future. We believe that if the Terre Haute Boys and Girls Club were to tap into the resources that they have acquired from past members they could have additional funding, volunteers, and role models for the kids that have troubled lives. Implementation Possible ways to implement and improve alumni involvement would include: creating a database that could help to keep track of all the current and past members, implementing an Alumni Recognition Day, in where a former member would be recognized for their outstanding contributions to the organization, making the website more interactive which includes adding a member login function that enables members to login to the website where all upcoming activities are listed, and asking them to volunteer their time to help out around the club (coaching, tutoring, mentoring, fundraising, etc.) Board of Directors Reorganization Page 65 of 90
  66. 66. Terre Haute Boys and Girls Club Researching the Board of Directors was a task in itself. There are many issues that the Board of Directors are currently facing. One of the major concerns is the size of the board. Having such a large Board has been affecting the efficiency of meetings. When you have such a big board and there are many ideas and opinions, then it could become very difficult to make comments, suggestions, and decisions. Another issue was the fact that the majority of the board members for the club never attend actual board meetings. Also, some of the members are more traditional, and may not be accustomed to change. For example, one individual on the board felt that girls should not be allowed to join the organization, which is somewhat of a major concern considering the Club is an organization serving both boys and girls. Recommendation Our suggestions for improvement of the Board of Directors for the Terre Haute Boys and Girls Club are as follows: make board meetings mandatory; which would entail changing the by-laws for the club. The by-laws should state the repercussions for not attending a board meeting. The next suggestion is t restructure the board into different committees. This will allow meetings to be more efficient, instead of having every board member offering input on every topic, which is the way meetings are currently conducted. We came up with these suggestions after analyzing many other boards across the country in and around similar industries. Our final suggestion is to implement a recognition day for outstanding board contributions in the same manner as the Alumni Recognition Day. These are possible solutions based on what we have seen other Boys and Girls Clubs’ around the United States are doing with their alumni and board of directors. These structures Page 66 of 90
  67. 67. Terre Haute Boys and Girls Club and activities work well for the other clubs, thus we feel these suggestions will be beneficial to the THBGC. We consider the board and the Club’s alumni to be vital assets to the organization’s overall success, so it is necessary to maintain a steady and healthy relationship between the two. In conclusion, since the club has impacted so many lives in so many ways we feel that if the THBGC were to reach out these people they would be more than willing to do whatever they can to help the company succeed. The members of the Board of Directors are key stakeholders in the organization and it is important that the relationship between the board and the club becomes stronger. These are just a few suggestions that will help the organization show their appreciation to our alumni as well as the Board of Directors and increase the Club’s overall efficiency. Youth Football Current State To determine the gaps and recommendations for the Youth Football League we interviewed Jimmy Smith who is extremely involved with the program and researched past information about the program. The current state of the 4th -6th grade Youth Football League is that it consists of around 550 participants with each of them being placed on teams based on what school they attend. Local schools include Woodrow Wilson, Otter Creek, Chauncey Rose, Honey Creek, along with many others. This is the way the league has been run for many years and has most certainly been successful. The following paragraph discusses a possible gap in the league that needs to be looked at to help better the league. After speaking with Jimmy Smith who is extremely involved with the league, we found that there are some gaps with the current system regarding equal competition. One issue that Page 67 of 90
  68. 68. Terre Haute Boys and Girls Club was brought up was the fact that the competition is currently uneven throughout the league. For example; Woodrow Wilson’s team consists of at least 50 players on a yearly basis while Chauncey Rose might have just enough to make a team. According to Jimmy Smith, “it is giving the bigger (better) teams a false sense of achievement, and gives the smaller (worse) teams a false sense of discouragement.” Also, with the teams that consist of 40-50 players there is a decrease in skill development and experience because there are many who are not getting the chance to play and learn the game. Players that are on the bench for some of the bigger teams could be actually playing for and helping the smaller teams. In every other level of competitive football the setup is made as equal as possible. It is understandable that the some parents and students like and enjoy how the league is currently run. It is very convenient transportation wise and it is nice to develop a sense of school pride. On the other hand, for these young athletes to improve and develop into better football players, they need to be competing on a more equal playing field where more kids are getting the chance to play and the competition is more realistic. The strategy that the Youth Football League would use to improve their league would be known as a Horizontal Related Diversification Strategy. This certain growth strategy is used when a company seeks to add to its existing line new products that will appeal to its existing customers. What we are going to recommend will relate to this strategy because it will add features to the league that did not exist. Our recommendation will increase the value and importance of the league by developing better players and competition in the long-run. In the following paragraphs we will discuss a recommendation that will help the Youth Football League create an equal playing field. Identified Gap Page 68 of 90
  69. 69. Terre Haute Boys and Girls Club The gap that has been identified for youth football is the inefficiency of the league. This gap presents the Vigo County Youth Football league and the Terre Haute Boys and Girls club with an opportunity to craft their strategy in a way that will improve the overall performance of the league. Teams being unequal in the number of players and the level of skill can potentially be catastrophic for the league. If children are not receiving an adequate amount of playing time, or their team is losing over and over again, it might lower their self esteem and cause them to lose interest in football. This could not only harm their interest in football, but other sports as well, which could result in a loss of members for the club. Draft Recommendation It is recommended that the league implements a draft for the players in grades 4th -6th , to assure that all teams have an equal number of players and skill. In order to accomplish this, the children should be put through a skills test in order to gauge their current level of skill. The skills test will include things like the 40 yard dash, agility tests, the vertical leap, and catching and throwing abilities. After the players have completed the tests, they will be placed in different groups based on their abilities. From there the coaches will select players for their teams. The end result will be all teams having an equal number of players and talent. In addition to the draft, we suggest the league construct a mandatory rule that requires each child to participate in at least two quarters of play. We recommend this because even though the draft will improve the competition of the league, there is still the potential for children who did poorly on their skills test to not receive any playing time. In sports there are always members of teams that don’t receive playing time, and that’s just the way it is. However at this level of competition it’s more important to make sure all of the children receive playing Page 69 of 90

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