1. B. Clodfelter ǀ COO
Results Highlights
Proprietary information omitted to protect confidentiality
2. Existing Business Situation
Operational/Finance Issues
Inefficient operations with limited
quality control
Inaccurate financial reporting system
structure
Created a new category with innovative
new products
Significant revenue growth
Increasing competition but still in
leadership position
Problems in Year 4
Inventory mismanagement led to
significant cash flow problems
Unable to obtain raw materials. 4+ month
backorders
Great 1st 3 Years
Order cancellations, customer loss,
brand/reputation erosion
3. Primary Objectives
Commence shipments that had been suspended for 3 months+
Cash flow problems due to inventory mismanagement
Repair brand image and customer relationships
Develop new business
Expand product line
Expand target market to new consumer segments
Obtain new distribution in large, national retailers
4. Primary Strategic Issue
Strayed from original, successful product area into unrelated items
, Did not leverage core competencies
, China sourcing: lower margins, high minimum orders
, Extreme imbalance between sales & inventory $
5. Core products offered potential in much larger segments
, Scrapbook market: $2 - $2.5 Billion
, Crafting market: $30 - $35 Billion
, Home Décor market: $50-$90 Billion
Sources: Various public reports
7. Results ǀ New Products
OriginalProductNewProducts
Multi-Packs
ComboAssortments
8. Entered broader craft & home
decorating segments
Expand Target Market
Gained distribution in the two largest
national craft & home decorating
stores
New Mass Retailers
9. , New items & markets
, New large customers
, Improved marketing
12. Changes to Drive Workforce Accountability & Performance
Performance management system with regular reviews
Position descriptions with clear accountabilities & expectations for all positions
KPIs and specific objectives for all positions
Incentives for above-goal company performance
