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2013
Eagle Fencing
Zeb White
[HELPING EAGLE
FENCING FLY]JKT Task 3 – Comprehensive analysis of and recommendations for a real-world small business
problem in the range improvement industry.
Helping Eagle Fencing Fly
Zeb White
MBA- Management and Strategy
Western Governors University
Table of Contents
Abstract.......................................................................................................................................... 1
A1. Background: ........................................................................................................................... 2
A1. The Problem ........................................................................................................................... 3
A2. Analyzing Functional Areas.................................................................................................. 4
A2a. Analysis of Functional Areas .............................................................................................. 4
Area 1: Marketing .....................................................................................................................................4
Area 2: Leadership ....................................................................................................................................6
Area 3: Product Development (differentiation)........................................................................................8
A2b. Implementation of resources to improve Eagle Fencing................................................ 11
1. Develop Traditional Marketing Considerations..................................................................................11
2. Develop Online Marketing Considerations (See Appendix 2 & 3) ......................................................13
3. Build Customer Relationships .............................................................................................................14
4. Educate employees of the company...................................................................................................14
5. Improve company communication.....................................................................................................15
6. Establish clear and concise goals ........................................................................................................16
7. Improve leadership.............................................................................................................................17
8. Build pride and commitment within the organization........................................................................19
9. Diversify product offerings..................................................................................................................20
10. Implement new products/services ..................................................................................................21
A2bi. Timeline for Implementation of Solutions...................................................................... 22
A2bc. Long-term financial and organizational impact of the recommendation................... 23
B. Log of time spent with client ................................................................................................. 26
Appendix 1, Utah’s Population.................................................................................................. 27
Appendix 2, Examples Webpage and Website Index (Sitemap) for Eagle Fencing ............. 28
Webpage Example Design: .....................................................................................................................28
Website Index (Sitemap).........................................................................................................................31
Appendix 3, Radio Coverage Maps:.......................................................................................... 32
Works Cited .................................................................................................................................. 33
Helping Eagle Fencing Fly
1
Abstract
Eagle Fencing is currently facing a decline in its customer base and has been
experiencing this problem for the past few years. The following documentation analyzes and
identifies 3 possible solutions that could help increase market share as well as discover new areas
of opportunity for the company. The functional areas that have been used to evaluate the issue
and develop the solution are Marketing, Leadership, and Product Development. By utilizing the
information contained herein it is anticipated that Eagle Fencing will be able to gain new
customers, expand and increase profits over the coming years.
Helping Eagle Fencing Fly
2
A1. Background:
Eagle Fencing specializes in providing top quality range fence for private land owners as
well as the Bureau of Land Management (BLM) and state agencies. Eagle Fencing (EF) has been
established as the ‘preferred contractor’ for the federal government in Southern Utah for over 15
years. The company is fairly small, employing 2 crews consisting of 4-6 full time employees
each with more workers needed in the summer months which is when the company’s ‘busy
season’ occurs. EF does little if any advertising and relies on word of mouth to obtain new
clients. The company serves a large geographical area covering several hundred square miles. Its
target market is varied; consisting of public organizations (rural communities), governmental
agencies (BLM and Forest Service), as well as privately owned farms, and ranches.
Eagle Fencing is capable of constructing over 75 miles of range fence a year, but for the
past 5 years a steady decline in work has been experienced and so far this year the company is
only on pace to build only about 25 to 30 miles of fencing. With the amount of fencing and range
improvement projects predicted this year the company is only looking at $150,000 -$180,000 in
gross sales. This current trend would mean that the company will need to lay off at least 50% of
its workforce to stay in business. With current equipment and a minor increase in staffing
(seasonal laborers) Eagle Fencing is capable of doing 3 times the work that it currently does and
at a price cheaper than the competition. By doing so the company would not need to lay off
employees during winter months and would be able to offer a more stable employment
opportunity.
Eagle Fencing’s strategy is to serve the most remote portions of Southern and Central
Utah where few other companies go. For the past 5 years Eagle Fencing has been experiencing a
slight decline in its customer base. The company employs a strategy of going where other fence
Helping Eagle Fencing Fly
3
contractors will not in order to gain customer loyalty and build its reputation. The company
motto is “We fence where Eagle’s fly.” EF builds an extremely durable product that lasts for 10+
years which creates the need to the company to acquire new customers regularly. For this reason
it is necessary for the company to find new markets in order to continue to stay in business.
Without a constant influx of new clientele the Eagle Fencing will simply work itself out of a job.
A1. The Problem
Eagle Fencing’s customer base has been in a steady decline over the past few years. This
decline is resulting in an average 10% decrease in contracts awarded to the company. The
company is consistently able to win jobs against competitors at an 80%+ rate for federal and
state contracts due to its competitive bidding. The problem is that these contracts do not make up
enough work for the company to expand or even keep up its current operational level. Eagle
Fencing relies on word of mouth to spread information about the company; relying on its product
quality and low bids (due to low operations costs and efficiency) to win contracts. The company
doesn’t have a website and does not do any advertising. In an effort to expand its market reach
and gain new customers the company needs to develop a comprehensive plan that can be
implemented quickly in order to capitalize on the upcoming busy season.
A strategy needs to be developed and implemented quickly to help the company gain new
customers in order for the company to keep up its current operational levels. Without new
customers this year the company will have to lay off several more employees and could face
losing its status as a ‘preferred contractor’ with the BLM due to a lack of workforce. This status
helps the company gain a large number of government contracts and represents a large portion of
the company’s business and is critical to Eagle Fencing’s survival.
Helping Eagle Fencing Fly
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Several Functional Areas of the business could be contributing to the loss in customer
base and revenues. The first area that could be contributing to the problem is Marketing. A lack
of advertising and marketing avenues could be resulting in a lack of new customers. The second
functional area that might be contributing to the problem is Leadership. Leadership could be
affecting the company’s lack of new cliental in a variety of ways including the company strategy,
mission and vision. Finally Product Development could be affecting the problem because the
company only offers one specific product. By offering a differentiated product line the company
could potentially gain more customers.
A2. Analyzing Functional Areas
As is evident by the discussion above, the three functional areas most likely contributing
to a lack of new customers for the company are Marketing, Leadership, and Product
Development. These functional areas that could be stumbling blocks for Eagle Fencing’s growth
are outlined below.
A2a. Analysis of Functional Areas
Area 1: Marketing
It has become apparent after completing a simple competitor analysis that a lack of
advertising and marketing avenues could be resulting in a lack of new customers for Eagle
Fencing. Eagle Fencing’s products and bid prices compare favorably to that of its competitors.
The company offers superior products at competitive prices with excellent customer service.
This would suggest that the company needs to expand its marketing avenues in order to build
brand awareness and capture a greater market share that just isn’t aware of Eagle Fencing’s
existence.
“There will always, one can assume, be a need for some selling. But the aim of
marketing is to make selling superfluous. The aim of marketing is to know and understand the
Helping Eagle Fencing Fly
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customer so well that the product or service fits him and sells itself. Ideally, marketing should
result in a customer who is ready to buy!” (Lancaster & Reynolds, 2005)
Currently Eagle Fencing does little if any advertising and the company marketing plan is
non-existent. It is recommended that the company develop a marketing plan that involves several
different areas in order to expand its market presence and increase the customer base of the
company. The competitors of the company already have several different avenues developed for
marketing, by mimicking these tried and tested methods Eagle Fencing will be able to deliver its
superior products to a wider range of customers. It is recommended that the company create a
marketing strategy based on a company website. The next step would be for the company to
create business cards, buy advertising from local radio stations and invest in fence signs to help
build brand awareness.
The new industry standard involves an online presence, competitors have already done so
and this could explain why Eagle Fencing has had a dwindling customer base over the past few
years. If Eagle Fencing can make use of an online marketing plan including a new website and
search engine sites like Google/Yahoo! it could build brand awareness. Building awareness
would allow the company to reach a larger market, and expand customer base as well as
revenues. By creating a website, Eagle Fencing will be in a better strategic position and will be
able to compete against its direct competitors. Due to past bid histories, in which Eagle Fencing
consistently outbids competitors, it is reasonable to assume that Eagle Fencing could eventually
expand to the point where it would serve the majority of the target market.
From past invoices and current market research the target market for Eagle Fencing’s
product has been identified as farmers and ranchers in primarily rural areas. A majority of over
85% of customers over the last 3 years are men over the age of 50. These individuals are often
Helping Eagle Fencing Fly
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retired; or people whose primary income source comes through their property whether it is used
to ranch, farm, or for other purposes. For the majority of the market fencing is a necessity,
having a border fence around your property is the law in Utah. Most of the target market lives in
extremely rural areas, with little or no interaction with the community, except when they come in
to town to get supplies. A marketing campaign has been designed to maximize potential
customers’ exposure to Eagle Fencing and the services it provides.
The new marketing plan has been divided into 2 areas; traditional considerations and
online considerations. These are broken down into the following specific marketing avenues:
1. Traditional Considerations
 Radio Advertisements
 New Business Cards
 Partnerships with Retailers
 Fence ‘Signs’
2. Online Considerations
 Website creation* (Appendix 1)
Area 2: Leadership
The second functional area that might be contributing to the problem is Leadership.
Leadership could be affecting the company’s lack of new cliental in a variety of ways including
communication, the company strategy, mission and vision. Abraham Lincoln once said that his
success was because of those around him while his failures were entirely his own. This same
selfless leadership model would serve Eagle Fencing well. Leadership is ultimately responsible
for the struggles of the company as well as the diminishing customer base.
In order to improve the company’s performance, the mindset of the company must be
modified to one that does the right thing for the right reasons. Honesty, tact, and encouragement
name only a few of these qualities and actions a leader should take in order to be successful. A
Helping Eagle Fencing Fly
7
Success
Commitment
Communication
and Trust
leader must also be ready to take responsibility for failure. It is important to note that a leader
doesn’t need to be perfect in order to be successful. Leadership should be encouraging, which
will help foster trust that will develop commitment from the workforce. In such a small
organization as Eagle Fencing it is of the utmost importance that a mutual trust and respect exist
between the owner and the crew foremen. Often times the crews operate autonomously for
weeks without oversight. It is important not only for the owner to trust the foremen to make the
right decisions for the company, but it is also important for them to trust the owner to bid the
work correctly and keep the crews busy throughout the year.
The best way to build trust within the organization is through communication.
Trust and commitment
result in accountability within any
organization. The owner of Eagle
Fencing is accountable to the
customers as well as the crews he
employees. The crew foremen share
in this accountability on a smaller
scale as well as having
accountability to the owner should
they complete work not up to Eagle Fencing standards, or if they complete a job late or exceed
their expense budget. Once the level of accountability expected is established the company can
finally reach the pinnacle of the performance pyramid. High performance will be the result,
helping the company reach its mission to expand operations and fulfill the company vision of
“Fencing where eagles fly!”
Helping Eagle Fencing Fly
8
Team leaders should always be striving to get their team to the top of the performance
pyramid. Encouragement and thereby trust are the base that all successful endeavors are build
upon. In order to build up trust the leader must shake off the natural man and begin to think
outside the box. The book Leadership and Self Deception illustrates how mankind is constantly
putting labels on those with whom they interact with. Once we begin to do this we seek to see
that person as exemplifying the characteristics we have labeled them with in order for our
assumptions to be right. (Arbinger Institute, 2010) The first step to avoiding this living ‘inside
the box’ is being aware of it. Because of this Leadership and Self Deception is a strongly
recommended reading for all managers in this organization.
In order to make sure company strategy is envisioned and followed by the employees of
the organization open and honest communication must be a priority. Ownership should be in
frequent contact with the crews to ensure that they know what is expected of them and to hold
them accountable for reaching production goals. Eagle Fencing also needs to re-evaluate the way
the company communicates with its customers and potential customers. Communication is a key
aspect not only of quality Leadership, but of an excellent Marketing campaign as well.
Area 3: Product Development (differentiation)
Finally Product Development could be affecting customer growth because the company
only offers one specific product; range fence. By offering a niche product the company is
eliminating a larger market which has similar needs and wants as the current target market of the
company. By offering a differentiated product line the company could gain more customers. Due
to the nature of fence construction offering differentiated products will require minimal
additional training and only a few new pieces of equipment. This small investment of time and
money could result in the company being able to reach a much broader customer base and help
Eagle Fencing capture a share of a much larger target market.
Helping Eagle Fencing Fly
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Recent studies of global fencing trends show that the major portion of the fencing market
is in metal and vinyl fence materials. “Of the four major fencing materials, metal fencing
accounted for more than half of the entire fencing market in 2012 due to an increasing demand
for security and safety. The plastic & composite fencing market is expected to be the fastest
growing segment in the coming years due to increasing demand, especially from residential
buyers. Growth in the metal fencing market is primarily driven by continued interest in
ornamental, chain link and barbed wire fencing across different end user segments.” (Market
Research Reports, 2013) With vinyl fencing being the fastest growing market segment at 30%
annual growth (Lifetime Vinyl Fencing, 2013) in the fencing industry, an expansion into the
vinyl fencing market is recommended.
Eagle Fencing currently only targets customers who are in extremely rural areas in need
of range fence. While the company does offer some variation in its products including: all-steel
fencing, a wood and steel mix, all wood, sheep wire and barbed wire variations the company has
yet to capitalize on more suburban projects that could help the company expand its customer
base. By offering new products such as vinyl and chain link fencing the company will be able to
attract customers who are in more suburban areas. Gaining a share of this high-growth market
segment will help Eagle Fencing continue to grow for the foreseeable future.
With the growing population of the state of Utah*(Appendix 1), more and more areas are
becoming suburban. “Between 2006 and 2007, Utah had the third-fastest annual population
growth rate in the United States, ranking behind Nevada and Arizona. This rapid growth is
expected to continue; by 2060 Utah’s population is projected to be over 6.84 million people. This
equates to a 146% increase in the next 52 years.” (Summers, 2008) Simply put; Eagle Fencing’s
dwindling customer base could be because of a trend in the lifestyle of potential customers
Helping Eagle Fencing Fly
10
within the state. People who used to live in rural areas and own livestock now live on much
smaller lots and subdivisions where range fence isn’t needed and is often not permitted.
With these trends in the population of the state of Utah it is easy to see how the current
product offerings of Eagle Fencing are becoming somewhat obsolete. In order to re-capture a
substantial customer base Eagle Fencing will need to differential the products it offers. Thanks to
the nature of the business the company is in it will be relatively easy for the company to offer
these new products to its customers. Besides a few new hand-tools needed for vinyl and chain
link projects, fencing equipment within the company, especially the major pieces like ATVs,
post hole diggers, rock drills etc. will remain the same. Training will be relatively quick and easy
as well and is offered for free from several different companies that supply chain link and vinyl
materials. By sending company crews in for a simple 1 day of training the company will be
prepared to install these new products in a high quality manner.
Through training, advertising and the purchase of new tools Eagle Fencing will be able to
offer vinyl fence options to customers. Vinyl fence is installed using the same processes as the
current barb-wire and wood fence products offered by Eagle Fencing. Vinyl fence products are
currently being offered by the venders currently serving the company including IFA and Cal
Ranch stores. The company needs only to purchase the new materials and tools, take the time to
train employees on a few minor changes to the company’s fence construction process and Eagle
Fencing will be able to offer quality vinyl fence options.
Now would be the perfect time to do this training as busy season is just starting. The
recommended marketing campaign is ready to start and it could easily be changed to include
fencing products that are more suited to residential areas. It simply makes sense for the company
to offer products that will attract a larger customer base. Even in rural central and southern Utah
Helping Eagle Fencing Fly
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the majority of people live in communities with almost all new construction being in suburban
areas. Fences are long-lasting products that people most often purchase when they are building a
home or buying new property. Offering the products that target more residential areas will allow
Eagle Fencing to enter into a new market, one that is growing each year and could easily keep
the company’s crews busy throughout the year.
A2b. Implementation of resources to improve Eagle Fencing
1. Develop Traditional Marketing Considerations
The first step in the new marketing campaign will be to create a new image of the company to
help make customers aware of the business as well as let existing customers know of a change in
company philosophy. The new logo could even be expanded to t-shirts and vehicle decals, giving the
company more advertising exposure as its crews travel across the state. This new business card design can
be expanded to make signs to mount on fences completed by the company as well. The new business card
will look like:
The current marketing proposal includes several traditional marketing methods that Eagle
Fencing could use to attract new customers. A minor radio campaign will be sponsored for 3
months starting in June, which will cover the busiest time for fence construction. At the same
time new company business cards will be distributed to over a dozen retail outlets across
South/Central Utah that specialize in farm and ranch supplies. Signs will be placed on current
Helping Eagle Fencing Fly
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company projects that are close to roads with the Eagle Fencing logo, contact information, and
the new website address. This will give those who border current and past projects the
opportunity to be exposed to the company product firsthand, and give them the ability to contact
the company to inquire about more work in the future.
By putting business cards at various retail stores in the area Eagle Fencing can develop
business partnerships or ‘Affiliate Marketing.’ (Stokes, 2010) In exchange for a customer
reference from the retail company Eagle Fencing would buy materials for that specific project
exclusively through that retailer. This would create a mutually beneficial relationship between
Eagle Fencing and local retailers who are spread throughout the rural communities of
South/Central Utah. Example retailers could be IFA, Steve Regan Co., Cal Ranch Stores and
other farm and ranch supply stores.
Another benefit of the business is that Eagle Fencing builds fencing all over the state.
Several of these projects are twenty or more miles in length and cross or border public access
roads as well as well-traveled highways. By expanding the new business card layout and placing
it on a plastic sign the company can have simple, durable signs that can easily be mounted on
projects completed by the company. These signs can be mounted on gates on well traveled roads
or in other places highly visible by the public creating simple and cheap advertising for the
company.
Finally the company can purchase an advertising campaign with a local radio station.
Doing so will help more people become aware of Eagle Fencing and the products it offers. After
researching several different stations it is recommended that Eagle Fencing choose Mid-Utah
Radio as its radio advertising partner. The company serves the same geographical area *(See
Helping Eagle Fencing Fly
13
Appendix 2) as Eagle Fencing; it offers competitive pricing and has a variety of stations at its
disposal that will help Eagle Fencing reach a wider range of potential customers.
2. Develop Online Marketing Considerations (See Appendix 2 & 3)
Using affiliate marketing can also help recoup some of the costs associated with running
a website. “Advertisements on the web can take many forms. For example, (advertising) on
individual websites that attract an audience that you think may be interested in your products…
Alternatively, you can also sign up as an advertiser in one of the many affiliate networks around.
Such networks work like a sort of middle man between you and the other websites on the
Internet that displays your advertisements. Generally speaking, they allow you to advertise on
other sites without your having to manually search for relevant websites yourself." (Heng, 2010)
Due to this and other reasons explained above it is strongly recommended that Eagle Fencing use
affiliates as part of its marketing mix. It is also recommended that a website hosting company
such as the GoDaddy.com website builder be used to help the company create and facilitate the
creation of these partnerships.
Godaddy.com would offer several tools and personnel to help design and host the new
company website. Included in the costs are several features that will be beneficial to the
company as it starts out online. There are 3 main reasons that Godaddy.com has been chosen for
Eagle Fencing’s website needs. They are cost, features and ease of use. The ‘Website Builder’
option at GoDaddy.com is designed for small businesses just getting started online. It offers
several features including Hosting/Design/Email and gives you an easy to use website design
tool without having to purchase additional software. The tool offers 300 templates and 8,700
images (and gives you the ability to add your own images/video). It also offers an e-mail account
along with several other features, including the ability to expand, which makes it a great fit for
Eagle Fencing.
Helping Eagle Fencing Fly
14
By using a new marketing mix combining traditional marketing elements along with a
new website Eagle Fencing will be able to expand its brand awareness and increase its customer
base. A new business card design, fence signs, and radio advertisements along with the creation
of the webpage will give the company several different marketing avenues that will help attract
new customers. The company’s current lack of a market strategy is resulting in very little brand
awareness among the public. The creation of a new strategy that employees both traditional and
non-traditional marketing methods should help solve this problem.
3. Build Customer Relationships
The steps recommended for Eagle Fencing to take to ensure a positive online customer
relationship are:
 Track marketing patters through retailers and alter advertising to maximize ROI.
 Use a blog and e-mail feature on the website to promote customer feedback and give
the company the ability to publically address concerns.
 Respond to customers in a timely fashion and put a disclaimer on the website
notifying customers that due to the nature of the business it might take a few days to
respond to their comments.
 Offer a ‘quality assurance guarantee’ of at least 1 year on all work done by the
company to ensure that customer satisfaction is 100%.
4. Educate employees of the company
This can be done in two phases, one targeting leadership within Eagle Fencing and the
other targeting the workforce. For the leadership (Crew Foremen/Ownership) the company will
need to provide training on the new product offerings including vinyl and chain link fence
construction. This is offered for free from the product’s suppliers and will only take 1 day for
each product. Management could then teach this knowledge, add their own touch/tailor it to the
company and then educate the crews on the new product offerings. The entire process would take
Helping Eagle Fencing Fly
15
less than a week and would allow the company to offer new products to a much larger target
market.
Finally, for the management of the company, Eagle Fencing could also help educate and
develop quality leadership practices. One way to do so would be to require all managers to read
1-2 leadership based books each year. Books such as Lincoln on Leadership and Leadership and
Self-Deception will help each individual leader become a more effective asset to the company.
Ownership could also educate the crew foremen on the company’s mission, strategy and vision
on a strategic level. Having the two foremen informed on the direction ownership wants to take
the company will help them develop strategies to help the company reach those goals. All-in-all
education will help the company build a more capable workforce that will be able to more
effectively reach company goals.
5. Improve company communication
“Communication (from Latin "communis", meaning to share) is the activity of conveying
information through the exchange of thoughts, messages, or information, as by speech, visuals,
signals, writing, or behavior.” (Wikipedia, 2013) Due to the distances between worksites and the
remote locations involved in the work communication will be a key to Eagle Fencing’s success.
Improving communication within the company and with customers of the company will help
Eagle Fencing obtain new customers and retain existing customers.
Communication can be facilitated by issuing company cell phones to each of the crew
foreman. Smart phones that make use of 4G networks will allow the company to get the most
coverage in the rural areas of Utah where the company operates. At the very least the company
needs to set up communication times at least twice a week between the owner and the crew
foreman. These ‘meetings’ will allow for the owner to re-focus the crew and set goals for the
Helping Eagle Fencing Fly
16
current and upcoming weeks. It will also give the foreman the opportunity to bring up any
critical situations that have occurred throughout the week and make sure that they are staying
within the customer’s specifications.
Improved communication will help the company foremen make informed decisions that
are in the best interests of the company. Without enough communication the owner has to rely on
the judgment of the foreman who has little contact with the customer and might not know the
‘big picture.’ This could result in costly mistakes during the construction process that result in
lost time and finances. Improved communications would allow the foremen to complete jobs
without errors in the work, allowing the fence to pass inspection immediately after completion
giving the construction crew the opportunity to move on to the next job site without delay.
6. Establish clear and concise goals
By having common goals team members will be more likely to do their best work
because it is in their best interest for the work to be done correctly and in a timely manner. It is
widely known that if a person is able to have a say in his or her own performance measures they
will take ownership of their development plan and will therefore be more likely to rise to the
occasion when a challenge arises. Getting workers and crew foremen to commit to the long term
goals of the company should be a priority for the ownership at Eagle Fencing. Without this
commitment it is unlikely that the employees will see the company through the tough times
ahead.
To help establish goals and build high-performance teams Eagle Fencing should adopt a
bonus system for the two crew foreman. This would help motivate them to reach the goals laid
out by ownership and would give ownership the benefit of increased production without having
to increase the number of employees within the company. Currently company foreman are
Helping Eagle Fencing Fly
17
compensated at a set hourly rate with wage increases every year. By offering incentives based on
the amount of time to successfully complete a job, ownership will help to motivate foreman (and
their crews) complete quality work in a timely manner.
Time is of the essence, most jobs through federal and state government entities come
with stipulations for contracts completed later than the contracted time. These ‘penalties’ could
result in Eagle Fencing being fined as much as $300 a day for every day a contract is late. This
includes the time it takes to make an inspection of the fence or range improvement project which
can make these penalties even more costly for the company. Furthermore fuel is by far the most
expensive expenditure of the company after labor. Completing jobs on time, or better yet early,
would mean less fuel spent for the company generating better profits for Eagle Fencing. By
passing some of these profits onto the crews or crew foremen the company could help stimulate
timely completion of the projects done by the company each year.
It is also important that ownership goes over the long-term (yearly) plan with crew
foremen. This will help crew foremen get a sense of the company’s goals for the year and will
help them set up their personal schedule for the year as well. Setting clear goals of what the
company hopes to accomplish during the coming year will help foremen gain insight as to what
they are expected to accomplish. Informing them will also help to show them that the company
respects their time outside of the workplace, treating the foremen as people rather than just
employees will help to build their loyalty and commitment to the company.
7. Improve leadership
“To compromise is to make a deal between different parties where each party gives up
part of their demand.” (Wikipedia, 2013) One way to improve leadership within Eagle Fencing is
through compromise. Whether that comes in the form of compromising on customer demands or
Helping Eagle Fencing Fly
18
the ownership compromising with crew foremen, compromise can result in both parties being
satisfied with the outcome of a situation. Due to the independent nature of the crews of Eagle
Fencing it will be critical for the ownership to compromise on important decisions as the
company faces this critical time in its existence.
Another way to improve leadership is through the lessons on leadership from Abraham
Lincoln found in the text Lincoln on Leadership. This is one of the recommended readings for
those in leadership positions at Eagle Fencing. The lessons learned within this text will translate
well into running a small business and will help develop better leadership practices within the
company:
 Provide a clear, concise statement of the direction of your organization, and justify
the actions taken.
 Be honest, but tactful. "You can fool some of the people all of the time, and all of the
people some of the time. But you can't fool all of the people all of the time." (Phillips,
2009)
 Ethical leadership dictates that the decision maker, the leader, takes the fall for poor
performance by subordinates not the other way around. This model of leadership
shows that the person in charge is taking the responsibility associated with his or her
position. It helps to build up trust with subordinates and also motivates them to take
chances. Far too often we see the corporate executive who blames others for the
decisions that he or she was responsible for making. Remember that to encourage
workers to take chances and to try new ways of doing things a leader must assume the
blame if they fail and give them the glory if they succeed.
Helping Eagle Fencing Fly
19
 Never let personal feelings get in the way of doing what is right. Like Lincoln,
leaders need to be reserved and reverent. Be positive with those who you interact
with, most studies suggest a ratio of between 3:1-5:1 positive to negative comments
to workers in order to improve their performance and keep them motivated to
improve. Any more positive comments than 5:1 and they don’t seem genuine, any
less than 3:1 and the leader appears too negative.
 “If leaders do enough of this - if they praise good work and encourage more of the
same - then eventually they will be able to relax and let their subordinates do most of
the work. And all the leader will have to do is guide them in the proper direction.”
(Phillips, 2009) If a socially responsible and ethical organization is to be created
leaders should follow the example set by Mr. Lincoln. Managers should be honest,
encouraging, humble, responsible individuals who inspire confidence and trust in
those who they lead. If they are able to do this the organization will be morally and
ethically sound.
8. Build pride and commitment within the organization
Community outreach programs are a great way to help develop company loyalty and a
positive company image. Through service true happiness is found. It is recommended that Eagle
Fencing complete one job a quarter pro-bono. One such project has already been completed this
year when the company repaired a fence around a graveyard for a rural community. As a result
the company developed a positive image within this rural area. The company also gained a
reference and was able to showcase what kind of service and quality it provides to several
potential customers.
Helping Eagle Fencing Fly
20
Taking this a step further the company could put fence ‘signs’ on such projects as well as
highlight them on the company website. Building a positive public image and giving employees
a sense of pride in the organization can only help the company improve performance and gain
new customers. This could also attract customers based on a positive company image and could
create many new, loyal customers who come to Eagle Fencing first because the company does
the ‘right’ thing. Giving back to the communities that keep the company in business is a fantastic
way to improve the long-term growth and value of the organization.
9. Diversify product offerings
Finally, the diversification of product offerings will help Eagle Fencing establish itself in
new, growing target markets. Although there is little research to support it simple reasoning
would lead one to believe that the demand for fence construction in rural areas is declining as
Utah’s population continues to grow. By the same stroke the demand for fencing found in
suburban areas, such as vinyl and chain link fencing continues to grow with the growing
population. By shifting company focus from long, rural type projects to more compact, urban
type projects the company can keep up with the new trends in the market. This could help the
company survive the current tough times and hopefully thrive as it looks to move forward for the
next 25 years.
Offering new products would take little training and almost no new equipment from the
company. With little risk associated with the decision and possibilities of huge rewards the
decision to offer new products is a great option for Eagle Fencing. Several of the company’s
direct competitors already offer similar products and with the current niche market of range
fence dwindling it makes sense for the company to expand its product offerings.
Helping Eagle Fencing Fly
21
10. Implement new products/services
The company will need to advertise new product offerings through the aforementioned
marketing avenues. Training will be needed, which involves a short 1-day training offered for
free from the product vendors (IFA/Steve Regan Co.). With the purchase of new tools and
changes in the current fence construction process Eagle Fencing will be able to offer quality
vinyl and chain link products to its customers.
The resources needed to implement new products and services, specifically vinyl and
chain link fencing include simple hand tools including special drills, wrenches, and levels and
measuring equipment. Simple training offered by the product vendors will be needed to educate
crews on installment techniques. Minor changes to current fence construction techniques
including cementing post holes instead of tamping, and the use of more accurate measuring
instruments including laser levels, will be needed to offer these new products. Other than these
minor changes Eagle Fencing is already prepared and suited to offer vinyl and chain link
products to customers.
Helping Eagle Fencing Fly
22
A2bi. Timeline for Implementation of Solutions.
Timetable for Solution Implementation.
First
Month
Create new strategic marketing and operations plan, inform crew foremen of the
new company direction. 06-25-13 to 07-31-13
Start new training and education program including set readings for crew foremen
and training on new product offerings. 06-25-13 to indefinite
Create new company website, business cards and fence signs. 06-25-13 to 7-31-13
Second
Month
Start new radio advertising campaign that will run for the following 12 months.
Partner with local station to create sufficient advertising coverage. 07-31-13 to 07-
31-14
Set up partnerships with affiliate retailers to help expand advertising and enhance
effectiveness. 07-15-13 to 8-15-13
Train employees on new product offerings and begin to advertise them to potential
customers. 07-15-13 to 7-16-13
Third
Month
Complete community outreach project, start searching for a new community
outreach project for next quarter. Project months: 08-13, 11-13, 2-14, 5-14, 8-14
etc.
Gather feedback from customers and employees for the past 3 months of operations,
evaluate and change company strategy accordingly. 10-01-13 to 10-31-13
Helping Eagle Fencing Fly
23
A2bc. Long-term financial and organizational impact of the recommendation.
 *(estimates on finances provided by the company and do not reflect actual numbers/ prices for
expenses are estimates only and may not reflect the actual cost to the company due to taxes/shipping
and other factors)
The following chart shows the financial impact of starting a new website using the
recommended tools. This chart includes the costs associated with hosting, advertising, and setup
with GoDaddy.com and shows the initial startup costs along with the yearly running costs. This
will benefit Eagle Fencing through additional advertising avenues along with improved visibility
through search engine optimization.
Costs associated with new online presence:
Product needed Start up cost Yearly costs
Domain name $12.99 $4.99 (5 year
Certification)
Hosting/Design/Email $0 $61.08 (with 3 year plan)
Google Apps for
Business
$0 $50.00 (per user per year)
Search Engine
Visibility
$0 $32.28
Programmer fees $75 $0
Total costs for website: $87.99 $148.35 (with above term durations)
The next chart shows the costs associated with the traditional marketing strategy
recommended for Eagle Fencing. It includes the unit cost per item along with the projected
yearly/extended time cost for the company. Due to the nature of the company’s target market and
information identifying characteristics of the current target market a Traditional marketing plan
is needed to reach potential customers. These costs will help the company build up brand
awareness within the target geographical area and will help make the company, and its products,
visible to the general public. This will be a costly change for Eagle Fencing but can also offer the
Helping Eagle Fencing Fly
24
most benefits to the company due to the rural nature of the business and target market which
might not be reached by other advertising avenues. The establishment of a firm marketing plan
will be essential as the company looks to gain new customers and expand operations.
Costs associated with new Traditional Marketing avenues.
Product needed Unit Cost Yearly costs
Business Cards (per
500)
$19.95 Dependant on Demand
Fence Signs (per sign) $26.80 (each) $402 (1 for each project)
Shirts for Employees $111.84 (per 24) $335.52
Logos for Vehicles $8.39 each $41.95
Radio Advertising $900 startup $1,000 a month x 7
months = $7,000 (estimates
done by radio station suggested)
Total yearly costs: $8,699.42
Finally the 3rd
chart shows the costs associated with establishing company education and
communication policies. This will help to improve company leadership, collaboration and
improve communication. Due to the distances between projects effective communication is
paramount to Eagle Fencing’s success. Improving communication will also help improve
customer service and will give Crew Foremen the ability to better manage unforeseen problems
that arise during construction products. Following the chart the information based on the ‘test’
advertising month (which included a minor radio ad along with traditional advertising in local
newspapers) indicates a substantial market growth is possible for Eagle Fencing using the new
marketing avenues developed by the company.
Costs associated with education and communication.
Product needed Unit/Startup Cost Yearly costs
Helping Eagle Fencing Fly
25
Books for employees $10 (each/varies) $60 (2 per year per 3 management members)
Company Cell phones
(Data/Minutes included with
Verizon Wireless)
$200 (depending on
phones and options)
$1,500 (includes data/minutes etc.)
Training on new
products (based on labor
costs)
$55 per hour (based
on typical crew pay rate)
$880 (2 crews at 8 hours each)
Total yearly costs: $2,640
Total Financial impact of recommendations
Costs for 1st
year: $11,575.76
Expected growth percentage (based on May test market): 15% (per year)
Total revenues for last year: $186,000 (approximate given by owner) x 1.15 growth =
$213,900 or a $27,900 increase for the investment. The new campaign projects to generate a
positive ROI of approximately $16,324.24 per year.
Helping Eagle Fencing Fly
26
B. Log of time spent with client
Date Subject/Description
Time
Spent with
Client
5/13/13
Initial meeting with client, went over assignment and plan for the
company, and received permission from owner Tony White to find
solutions for the company. Started test month advertising.
2.5 hours
5/20/13
Second meeting with client, areas of concern identified including
marketing and an online presence. Conducted initial interview and went
over general operations of the company.
2 hours
5/24/13
Discussed competitors’ strengths and weaknesses. Decided an online
presence and differentiated product offering was needed.
1 hour
5/25/13
Gathered financial information about the company, acquired info on
business history and past customer trends (occupation/location/age).
4 hours
5/27/13
Showed client proposed overview and solutions, got the go ahead to work
on the details and start compiling project.
1 hour
6/3/13
Went over project progress with owner, tweaked solutions to fit business
needs. Presented radio coverage data and website options to owner.
1 hour
6/10/13
Went over results of test month advertising and reviewed final numbers
within the project. Met with crew foremen to get input on final details.
3 hours
Helping Eagle Fencing Fly
27
Appendix 1, Utah’s Population
Helping Eagle Fencing Fly
28
Appendix 2, Examples Webpage and Website Index (Sitemap) for Eagle Fencing
Webpage Example Design:
Helping Eagle Fencing Fly
29
Webpage Example Design continued:
Helping Eagle Fencing Fly
30
Webpage Example Design continued:
Helping Eagle Fencing Fly
31
Website Index (Sitemap)
Helping Eagle Fencing Fly
32
Appendix 3, Radio Coverage Maps:
Helping Eagle Fencing Fly
33
Works Cited
Arbinger Institute. (2010). Leadership and Self-Deception. San Francisco: Berrett-Koehler
Publishers.
Heng, C. (2010, September 12). How much does it cost to set up a website. Retrieved from The
site wizard: http://www.thesitewizard.com/gettingstarted/cost-setting-up-website.shtml
Lancaster, G., & Reynolds, P. (2005). Management of Marketing. Taylor and Francis.
Lifetime Vinyl Fencing. (2013, June 16). Frequently asked questions about vinyl fence.
Retrieved from Lifetime Vinyl Fencing:
http://www.lifetimevinylfencing.com/vinyl_fencing_faq.htm
Market Research Reports. (2013, June 17). Global Fencing Market. Retrieved from PRWeb:
http://www.prweb.com/releases/2013/3/prweb10497322.htm
Phillips, D. T. (2009). Lincoln On Leadership: Executive Strategies for Tough Times. New York:
Grand Central Publishing.
Stokes, R. (2010). eMarketing: The Essential Guide to Online Marketing, v. 1.0. Flatword
Knowledge.
Summers, L. (2008, October 9). The Impacts of Utah's Population Growth. Retrieved from Utah
Foundation: http://www.utahfoundation.org/reports/?page_id=270
Wikipedia. (2013, January 29). Definitions. Retrieved from Wikipedia The Free Encyclopedia:
http://www.wikipedia.org/

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Zeb White WGU Capstone Project

  • 1. 2013 Eagle Fencing Zeb White [HELPING EAGLE FENCING FLY]JKT Task 3 – Comprehensive analysis of and recommendations for a real-world small business problem in the range improvement industry.
  • 2. Helping Eagle Fencing Fly Zeb White MBA- Management and Strategy Western Governors University
  • 3. Table of Contents Abstract.......................................................................................................................................... 1 A1. Background: ........................................................................................................................... 2 A1. The Problem ........................................................................................................................... 3 A2. Analyzing Functional Areas.................................................................................................. 4 A2a. Analysis of Functional Areas .............................................................................................. 4 Area 1: Marketing .....................................................................................................................................4 Area 2: Leadership ....................................................................................................................................6 Area 3: Product Development (differentiation)........................................................................................8 A2b. Implementation of resources to improve Eagle Fencing................................................ 11 1. Develop Traditional Marketing Considerations..................................................................................11 2. Develop Online Marketing Considerations (See Appendix 2 & 3) ......................................................13 3. Build Customer Relationships .............................................................................................................14 4. Educate employees of the company...................................................................................................14 5. Improve company communication.....................................................................................................15 6. Establish clear and concise goals ........................................................................................................16 7. Improve leadership.............................................................................................................................17 8. Build pride and commitment within the organization........................................................................19 9. Diversify product offerings..................................................................................................................20 10. Implement new products/services ..................................................................................................21 A2bi. Timeline for Implementation of Solutions...................................................................... 22 A2bc. Long-term financial and organizational impact of the recommendation................... 23 B. Log of time spent with client ................................................................................................. 26 Appendix 1, Utah’s Population.................................................................................................. 27 Appendix 2, Examples Webpage and Website Index (Sitemap) for Eagle Fencing ............. 28 Webpage Example Design: .....................................................................................................................28 Website Index (Sitemap).........................................................................................................................31 Appendix 3, Radio Coverage Maps:.......................................................................................... 32 Works Cited .................................................................................................................................. 33
  • 4. Helping Eagle Fencing Fly 1 Abstract Eagle Fencing is currently facing a decline in its customer base and has been experiencing this problem for the past few years. The following documentation analyzes and identifies 3 possible solutions that could help increase market share as well as discover new areas of opportunity for the company. The functional areas that have been used to evaluate the issue and develop the solution are Marketing, Leadership, and Product Development. By utilizing the information contained herein it is anticipated that Eagle Fencing will be able to gain new customers, expand and increase profits over the coming years.
  • 5. Helping Eagle Fencing Fly 2 A1. Background: Eagle Fencing specializes in providing top quality range fence for private land owners as well as the Bureau of Land Management (BLM) and state agencies. Eagle Fencing (EF) has been established as the ‘preferred contractor’ for the federal government in Southern Utah for over 15 years. The company is fairly small, employing 2 crews consisting of 4-6 full time employees each with more workers needed in the summer months which is when the company’s ‘busy season’ occurs. EF does little if any advertising and relies on word of mouth to obtain new clients. The company serves a large geographical area covering several hundred square miles. Its target market is varied; consisting of public organizations (rural communities), governmental agencies (BLM and Forest Service), as well as privately owned farms, and ranches. Eagle Fencing is capable of constructing over 75 miles of range fence a year, but for the past 5 years a steady decline in work has been experienced and so far this year the company is only on pace to build only about 25 to 30 miles of fencing. With the amount of fencing and range improvement projects predicted this year the company is only looking at $150,000 -$180,000 in gross sales. This current trend would mean that the company will need to lay off at least 50% of its workforce to stay in business. With current equipment and a minor increase in staffing (seasonal laborers) Eagle Fencing is capable of doing 3 times the work that it currently does and at a price cheaper than the competition. By doing so the company would not need to lay off employees during winter months and would be able to offer a more stable employment opportunity. Eagle Fencing’s strategy is to serve the most remote portions of Southern and Central Utah where few other companies go. For the past 5 years Eagle Fencing has been experiencing a slight decline in its customer base. The company employs a strategy of going where other fence
  • 6. Helping Eagle Fencing Fly 3 contractors will not in order to gain customer loyalty and build its reputation. The company motto is “We fence where Eagle’s fly.” EF builds an extremely durable product that lasts for 10+ years which creates the need to the company to acquire new customers regularly. For this reason it is necessary for the company to find new markets in order to continue to stay in business. Without a constant influx of new clientele the Eagle Fencing will simply work itself out of a job. A1. The Problem Eagle Fencing’s customer base has been in a steady decline over the past few years. This decline is resulting in an average 10% decrease in contracts awarded to the company. The company is consistently able to win jobs against competitors at an 80%+ rate for federal and state contracts due to its competitive bidding. The problem is that these contracts do not make up enough work for the company to expand or even keep up its current operational level. Eagle Fencing relies on word of mouth to spread information about the company; relying on its product quality and low bids (due to low operations costs and efficiency) to win contracts. The company doesn’t have a website and does not do any advertising. In an effort to expand its market reach and gain new customers the company needs to develop a comprehensive plan that can be implemented quickly in order to capitalize on the upcoming busy season. A strategy needs to be developed and implemented quickly to help the company gain new customers in order for the company to keep up its current operational levels. Without new customers this year the company will have to lay off several more employees and could face losing its status as a ‘preferred contractor’ with the BLM due to a lack of workforce. This status helps the company gain a large number of government contracts and represents a large portion of the company’s business and is critical to Eagle Fencing’s survival.
  • 7. Helping Eagle Fencing Fly 4 Several Functional Areas of the business could be contributing to the loss in customer base and revenues. The first area that could be contributing to the problem is Marketing. A lack of advertising and marketing avenues could be resulting in a lack of new customers. The second functional area that might be contributing to the problem is Leadership. Leadership could be affecting the company’s lack of new cliental in a variety of ways including the company strategy, mission and vision. Finally Product Development could be affecting the problem because the company only offers one specific product. By offering a differentiated product line the company could potentially gain more customers. A2. Analyzing Functional Areas As is evident by the discussion above, the three functional areas most likely contributing to a lack of new customers for the company are Marketing, Leadership, and Product Development. These functional areas that could be stumbling blocks for Eagle Fencing’s growth are outlined below. A2a. Analysis of Functional Areas Area 1: Marketing It has become apparent after completing a simple competitor analysis that a lack of advertising and marketing avenues could be resulting in a lack of new customers for Eagle Fencing. Eagle Fencing’s products and bid prices compare favorably to that of its competitors. The company offers superior products at competitive prices with excellent customer service. This would suggest that the company needs to expand its marketing avenues in order to build brand awareness and capture a greater market share that just isn’t aware of Eagle Fencing’s existence. “There will always, one can assume, be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the
  • 8. Helping Eagle Fencing Fly 5 customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy!” (Lancaster & Reynolds, 2005) Currently Eagle Fencing does little if any advertising and the company marketing plan is non-existent. It is recommended that the company develop a marketing plan that involves several different areas in order to expand its market presence and increase the customer base of the company. The competitors of the company already have several different avenues developed for marketing, by mimicking these tried and tested methods Eagle Fencing will be able to deliver its superior products to a wider range of customers. It is recommended that the company create a marketing strategy based on a company website. The next step would be for the company to create business cards, buy advertising from local radio stations and invest in fence signs to help build brand awareness. The new industry standard involves an online presence, competitors have already done so and this could explain why Eagle Fencing has had a dwindling customer base over the past few years. If Eagle Fencing can make use of an online marketing plan including a new website and search engine sites like Google/Yahoo! it could build brand awareness. Building awareness would allow the company to reach a larger market, and expand customer base as well as revenues. By creating a website, Eagle Fencing will be in a better strategic position and will be able to compete against its direct competitors. Due to past bid histories, in which Eagle Fencing consistently outbids competitors, it is reasonable to assume that Eagle Fencing could eventually expand to the point where it would serve the majority of the target market. From past invoices and current market research the target market for Eagle Fencing’s product has been identified as farmers and ranchers in primarily rural areas. A majority of over 85% of customers over the last 3 years are men over the age of 50. These individuals are often
  • 9. Helping Eagle Fencing Fly 6 retired; or people whose primary income source comes through their property whether it is used to ranch, farm, or for other purposes. For the majority of the market fencing is a necessity, having a border fence around your property is the law in Utah. Most of the target market lives in extremely rural areas, with little or no interaction with the community, except when they come in to town to get supplies. A marketing campaign has been designed to maximize potential customers’ exposure to Eagle Fencing and the services it provides. The new marketing plan has been divided into 2 areas; traditional considerations and online considerations. These are broken down into the following specific marketing avenues: 1. Traditional Considerations  Radio Advertisements  New Business Cards  Partnerships with Retailers  Fence ‘Signs’ 2. Online Considerations  Website creation* (Appendix 1) Area 2: Leadership The second functional area that might be contributing to the problem is Leadership. Leadership could be affecting the company’s lack of new cliental in a variety of ways including communication, the company strategy, mission and vision. Abraham Lincoln once said that his success was because of those around him while his failures were entirely his own. This same selfless leadership model would serve Eagle Fencing well. Leadership is ultimately responsible for the struggles of the company as well as the diminishing customer base. In order to improve the company’s performance, the mindset of the company must be modified to one that does the right thing for the right reasons. Honesty, tact, and encouragement name only a few of these qualities and actions a leader should take in order to be successful. A
  • 10. Helping Eagle Fencing Fly 7 Success Commitment Communication and Trust leader must also be ready to take responsibility for failure. It is important to note that a leader doesn’t need to be perfect in order to be successful. Leadership should be encouraging, which will help foster trust that will develop commitment from the workforce. In such a small organization as Eagle Fencing it is of the utmost importance that a mutual trust and respect exist between the owner and the crew foremen. Often times the crews operate autonomously for weeks without oversight. It is important not only for the owner to trust the foremen to make the right decisions for the company, but it is also important for them to trust the owner to bid the work correctly and keep the crews busy throughout the year. The best way to build trust within the organization is through communication. Trust and commitment result in accountability within any organization. The owner of Eagle Fencing is accountable to the customers as well as the crews he employees. The crew foremen share in this accountability on a smaller scale as well as having accountability to the owner should they complete work not up to Eagle Fencing standards, or if they complete a job late or exceed their expense budget. Once the level of accountability expected is established the company can finally reach the pinnacle of the performance pyramid. High performance will be the result, helping the company reach its mission to expand operations and fulfill the company vision of “Fencing where eagles fly!”
  • 11. Helping Eagle Fencing Fly 8 Team leaders should always be striving to get their team to the top of the performance pyramid. Encouragement and thereby trust are the base that all successful endeavors are build upon. In order to build up trust the leader must shake off the natural man and begin to think outside the box. The book Leadership and Self Deception illustrates how mankind is constantly putting labels on those with whom they interact with. Once we begin to do this we seek to see that person as exemplifying the characteristics we have labeled them with in order for our assumptions to be right. (Arbinger Institute, 2010) The first step to avoiding this living ‘inside the box’ is being aware of it. Because of this Leadership and Self Deception is a strongly recommended reading for all managers in this organization. In order to make sure company strategy is envisioned and followed by the employees of the organization open and honest communication must be a priority. Ownership should be in frequent contact with the crews to ensure that they know what is expected of them and to hold them accountable for reaching production goals. Eagle Fencing also needs to re-evaluate the way the company communicates with its customers and potential customers. Communication is a key aspect not only of quality Leadership, but of an excellent Marketing campaign as well. Area 3: Product Development (differentiation) Finally Product Development could be affecting customer growth because the company only offers one specific product; range fence. By offering a niche product the company is eliminating a larger market which has similar needs and wants as the current target market of the company. By offering a differentiated product line the company could gain more customers. Due to the nature of fence construction offering differentiated products will require minimal additional training and only a few new pieces of equipment. This small investment of time and money could result in the company being able to reach a much broader customer base and help Eagle Fencing capture a share of a much larger target market.
  • 12. Helping Eagle Fencing Fly 9 Recent studies of global fencing trends show that the major portion of the fencing market is in metal and vinyl fence materials. “Of the four major fencing materials, metal fencing accounted for more than half of the entire fencing market in 2012 due to an increasing demand for security and safety. The plastic & composite fencing market is expected to be the fastest growing segment in the coming years due to increasing demand, especially from residential buyers. Growth in the metal fencing market is primarily driven by continued interest in ornamental, chain link and barbed wire fencing across different end user segments.” (Market Research Reports, 2013) With vinyl fencing being the fastest growing market segment at 30% annual growth (Lifetime Vinyl Fencing, 2013) in the fencing industry, an expansion into the vinyl fencing market is recommended. Eagle Fencing currently only targets customers who are in extremely rural areas in need of range fence. While the company does offer some variation in its products including: all-steel fencing, a wood and steel mix, all wood, sheep wire and barbed wire variations the company has yet to capitalize on more suburban projects that could help the company expand its customer base. By offering new products such as vinyl and chain link fencing the company will be able to attract customers who are in more suburban areas. Gaining a share of this high-growth market segment will help Eagle Fencing continue to grow for the foreseeable future. With the growing population of the state of Utah*(Appendix 1), more and more areas are becoming suburban. “Between 2006 and 2007, Utah had the third-fastest annual population growth rate in the United States, ranking behind Nevada and Arizona. This rapid growth is expected to continue; by 2060 Utah’s population is projected to be over 6.84 million people. This equates to a 146% increase in the next 52 years.” (Summers, 2008) Simply put; Eagle Fencing’s dwindling customer base could be because of a trend in the lifestyle of potential customers
  • 13. Helping Eagle Fencing Fly 10 within the state. People who used to live in rural areas and own livestock now live on much smaller lots and subdivisions where range fence isn’t needed and is often not permitted. With these trends in the population of the state of Utah it is easy to see how the current product offerings of Eagle Fencing are becoming somewhat obsolete. In order to re-capture a substantial customer base Eagle Fencing will need to differential the products it offers. Thanks to the nature of the business the company is in it will be relatively easy for the company to offer these new products to its customers. Besides a few new hand-tools needed for vinyl and chain link projects, fencing equipment within the company, especially the major pieces like ATVs, post hole diggers, rock drills etc. will remain the same. Training will be relatively quick and easy as well and is offered for free from several different companies that supply chain link and vinyl materials. By sending company crews in for a simple 1 day of training the company will be prepared to install these new products in a high quality manner. Through training, advertising and the purchase of new tools Eagle Fencing will be able to offer vinyl fence options to customers. Vinyl fence is installed using the same processes as the current barb-wire and wood fence products offered by Eagle Fencing. Vinyl fence products are currently being offered by the venders currently serving the company including IFA and Cal Ranch stores. The company needs only to purchase the new materials and tools, take the time to train employees on a few minor changes to the company’s fence construction process and Eagle Fencing will be able to offer quality vinyl fence options. Now would be the perfect time to do this training as busy season is just starting. The recommended marketing campaign is ready to start and it could easily be changed to include fencing products that are more suited to residential areas. It simply makes sense for the company to offer products that will attract a larger customer base. Even in rural central and southern Utah
  • 14. Helping Eagle Fencing Fly 11 the majority of people live in communities with almost all new construction being in suburban areas. Fences are long-lasting products that people most often purchase when they are building a home or buying new property. Offering the products that target more residential areas will allow Eagle Fencing to enter into a new market, one that is growing each year and could easily keep the company’s crews busy throughout the year. A2b. Implementation of resources to improve Eagle Fencing 1. Develop Traditional Marketing Considerations The first step in the new marketing campaign will be to create a new image of the company to help make customers aware of the business as well as let existing customers know of a change in company philosophy. The new logo could even be expanded to t-shirts and vehicle decals, giving the company more advertising exposure as its crews travel across the state. This new business card design can be expanded to make signs to mount on fences completed by the company as well. The new business card will look like: The current marketing proposal includes several traditional marketing methods that Eagle Fencing could use to attract new customers. A minor radio campaign will be sponsored for 3 months starting in June, which will cover the busiest time for fence construction. At the same time new company business cards will be distributed to over a dozen retail outlets across South/Central Utah that specialize in farm and ranch supplies. Signs will be placed on current
  • 15. Helping Eagle Fencing Fly 12 company projects that are close to roads with the Eagle Fencing logo, contact information, and the new website address. This will give those who border current and past projects the opportunity to be exposed to the company product firsthand, and give them the ability to contact the company to inquire about more work in the future. By putting business cards at various retail stores in the area Eagle Fencing can develop business partnerships or ‘Affiliate Marketing.’ (Stokes, 2010) In exchange for a customer reference from the retail company Eagle Fencing would buy materials for that specific project exclusively through that retailer. This would create a mutually beneficial relationship between Eagle Fencing and local retailers who are spread throughout the rural communities of South/Central Utah. Example retailers could be IFA, Steve Regan Co., Cal Ranch Stores and other farm and ranch supply stores. Another benefit of the business is that Eagle Fencing builds fencing all over the state. Several of these projects are twenty or more miles in length and cross or border public access roads as well as well-traveled highways. By expanding the new business card layout and placing it on a plastic sign the company can have simple, durable signs that can easily be mounted on projects completed by the company. These signs can be mounted on gates on well traveled roads or in other places highly visible by the public creating simple and cheap advertising for the company. Finally the company can purchase an advertising campaign with a local radio station. Doing so will help more people become aware of Eagle Fencing and the products it offers. After researching several different stations it is recommended that Eagle Fencing choose Mid-Utah Radio as its radio advertising partner. The company serves the same geographical area *(See
  • 16. Helping Eagle Fencing Fly 13 Appendix 2) as Eagle Fencing; it offers competitive pricing and has a variety of stations at its disposal that will help Eagle Fencing reach a wider range of potential customers. 2. Develop Online Marketing Considerations (See Appendix 2 & 3) Using affiliate marketing can also help recoup some of the costs associated with running a website. “Advertisements on the web can take many forms. For example, (advertising) on individual websites that attract an audience that you think may be interested in your products… Alternatively, you can also sign up as an advertiser in one of the many affiliate networks around. Such networks work like a sort of middle man between you and the other websites on the Internet that displays your advertisements. Generally speaking, they allow you to advertise on other sites without your having to manually search for relevant websites yourself." (Heng, 2010) Due to this and other reasons explained above it is strongly recommended that Eagle Fencing use affiliates as part of its marketing mix. It is also recommended that a website hosting company such as the GoDaddy.com website builder be used to help the company create and facilitate the creation of these partnerships. Godaddy.com would offer several tools and personnel to help design and host the new company website. Included in the costs are several features that will be beneficial to the company as it starts out online. There are 3 main reasons that Godaddy.com has been chosen for Eagle Fencing’s website needs. They are cost, features and ease of use. The ‘Website Builder’ option at GoDaddy.com is designed for small businesses just getting started online. It offers several features including Hosting/Design/Email and gives you an easy to use website design tool without having to purchase additional software. The tool offers 300 templates and 8,700 images (and gives you the ability to add your own images/video). It also offers an e-mail account along with several other features, including the ability to expand, which makes it a great fit for Eagle Fencing.
  • 17. Helping Eagle Fencing Fly 14 By using a new marketing mix combining traditional marketing elements along with a new website Eagle Fencing will be able to expand its brand awareness and increase its customer base. A new business card design, fence signs, and radio advertisements along with the creation of the webpage will give the company several different marketing avenues that will help attract new customers. The company’s current lack of a market strategy is resulting in very little brand awareness among the public. The creation of a new strategy that employees both traditional and non-traditional marketing methods should help solve this problem. 3. Build Customer Relationships The steps recommended for Eagle Fencing to take to ensure a positive online customer relationship are:  Track marketing patters through retailers and alter advertising to maximize ROI.  Use a blog and e-mail feature on the website to promote customer feedback and give the company the ability to publically address concerns.  Respond to customers in a timely fashion and put a disclaimer on the website notifying customers that due to the nature of the business it might take a few days to respond to their comments.  Offer a ‘quality assurance guarantee’ of at least 1 year on all work done by the company to ensure that customer satisfaction is 100%. 4. Educate employees of the company This can be done in two phases, one targeting leadership within Eagle Fencing and the other targeting the workforce. For the leadership (Crew Foremen/Ownership) the company will need to provide training on the new product offerings including vinyl and chain link fence construction. This is offered for free from the product’s suppliers and will only take 1 day for each product. Management could then teach this knowledge, add their own touch/tailor it to the company and then educate the crews on the new product offerings. The entire process would take
  • 18. Helping Eagle Fencing Fly 15 less than a week and would allow the company to offer new products to a much larger target market. Finally, for the management of the company, Eagle Fencing could also help educate and develop quality leadership practices. One way to do so would be to require all managers to read 1-2 leadership based books each year. Books such as Lincoln on Leadership and Leadership and Self-Deception will help each individual leader become a more effective asset to the company. Ownership could also educate the crew foremen on the company’s mission, strategy and vision on a strategic level. Having the two foremen informed on the direction ownership wants to take the company will help them develop strategies to help the company reach those goals. All-in-all education will help the company build a more capable workforce that will be able to more effectively reach company goals. 5. Improve company communication “Communication (from Latin "communis", meaning to share) is the activity of conveying information through the exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or behavior.” (Wikipedia, 2013) Due to the distances between worksites and the remote locations involved in the work communication will be a key to Eagle Fencing’s success. Improving communication within the company and with customers of the company will help Eagle Fencing obtain new customers and retain existing customers. Communication can be facilitated by issuing company cell phones to each of the crew foreman. Smart phones that make use of 4G networks will allow the company to get the most coverage in the rural areas of Utah where the company operates. At the very least the company needs to set up communication times at least twice a week between the owner and the crew foreman. These ‘meetings’ will allow for the owner to re-focus the crew and set goals for the
  • 19. Helping Eagle Fencing Fly 16 current and upcoming weeks. It will also give the foreman the opportunity to bring up any critical situations that have occurred throughout the week and make sure that they are staying within the customer’s specifications. Improved communication will help the company foremen make informed decisions that are in the best interests of the company. Without enough communication the owner has to rely on the judgment of the foreman who has little contact with the customer and might not know the ‘big picture.’ This could result in costly mistakes during the construction process that result in lost time and finances. Improved communications would allow the foremen to complete jobs without errors in the work, allowing the fence to pass inspection immediately after completion giving the construction crew the opportunity to move on to the next job site without delay. 6. Establish clear and concise goals By having common goals team members will be more likely to do their best work because it is in their best interest for the work to be done correctly and in a timely manner. It is widely known that if a person is able to have a say in his or her own performance measures they will take ownership of their development plan and will therefore be more likely to rise to the occasion when a challenge arises. Getting workers and crew foremen to commit to the long term goals of the company should be a priority for the ownership at Eagle Fencing. Without this commitment it is unlikely that the employees will see the company through the tough times ahead. To help establish goals and build high-performance teams Eagle Fencing should adopt a bonus system for the two crew foreman. This would help motivate them to reach the goals laid out by ownership and would give ownership the benefit of increased production without having to increase the number of employees within the company. Currently company foreman are
  • 20. Helping Eagle Fencing Fly 17 compensated at a set hourly rate with wage increases every year. By offering incentives based on the amount of time to successfully complete a job, ownership will help to motivate foreman (and their crews) complete quality work in a timely manner. Time is of the essence, most jobs through federal and state government entities come with stipulations for contracts completed later than the contracted time. These ‘penalties’ could result in Eagle Fencing being fined as much as $300 a day for every day a contract is late. This includes the time it takes to make an inspection of the fence or range improvement project which can make these penalties even more costly for the company. Furthermore fuel is by far the most expensive expenditure of the company after labor. Completing jobs on time, or better yet early, would mean less fuel spent for the company generating better profits for Eagle Fencing. By passing some of these profits onto the crews or crew foremen the company could help stimulate timely completion of the projects done by the company each year. It is also important that ownership goes over the long-term (yearly) plan with crew foremen. This will help crew foremen get a sense of the company’s goals for the year and will help them set up their personal schedule for the year as well. Setting clear goals of what the company hopes to accomplish during the coming year will help foremen gain insight as to what they are expected to accomplish. Informing them will also help to show them that the company respects their time outside of the workplace, treating the foremen as people rather than just employees will help to build their loyalty and commitment to the company. 7. Improve leadership “To compromise is to make a deal between different parties where each party gives up part of their demand.” (Wikipedia, 2013) One way to improve leadership within Eagle Fencing is through compromise. Whether that comes in the form of compromising on customer demands or
  • 21. Helping Eagle Fencing Fly 18 the ownership compromising with crew foremen, compromise can result in both parties being satisfied with the outcome of a situation. Due to the independent nature of the crews of Eagle Fencing it will be critical for the ownership to compromise on important decisions as the company faces this critical time in its existence. Another way to improve leadership is through the lessons on leadership from Abraham Lincoln found in the text Lincoln on Leadership. This is one of the recommended readings for those in leadership positions at Eagle Fencing. The lessons learned within this text will translate well into running a small business and will help develop better leadership practices within the company:  Provide a clear, concise statement of the direction of your organization, and justify the actions taken.  Be honest, but tactful. "You can fool some of the people all of the time, and all of the people some of the time. But you can't fool all of the people all of the time." (Phillips, 2009)  Ethical leadership dictates that the decision maker, the leader, takes the fall for poor performance by subordinates not the other way around. This model of leadership shows that the person in charge is taking the responsibility associated with his or her position. It helps to build up trust with subordinates and also motivates them to take chances. Far too often we see the corporate executive who blames others for the decisions that he or she was responsible for making. Remember that to encourage workers to take chances and to try new ways of doing things a leader must assume the blame if they fail and give them the glory if they succeed.
  • 22. Helping Eagle Fencing Fly 19  Never let personal feelings get in the way of doing what is right. Like Lincoln, leaders need to be reserved and reverent. Be positive with those who you interact with, most studies suggest a ratio of between 3:1-5:1 positive to negative comments to workers in order to improve their performance and keep them motivated to improve. Any more positive comments than 5:1 and they don’t seem genuine, any less than 3:1 and the leader appears too negative.  “If leaders do enough of this - if they praise good work and encourage more of the same - then eventually they will be able to relax and let their subordinates do most of the work. And all the leader will have to do is guide them in the proper direction.” (Phillips, 2009) If a socially responsible and ethical organization is to be created leaders should follow the example set by Mr. Lincoln. Managers should be honest, encouraging, humble, responsible individuals who inspire confidence and trust in those who they lead. If they are able to do this the organization will be morally and ethically sound. 8. Build pride and commitment within the organization Community outreach programs are a great way to help develop company loyalty and a positive company image. Through service true happiness is found. It is recommended that Eagle Fencing complete one job a quarter pro-bono. One such project has already been completed this year when the company repaired a fence around a graveyard for a rural community. As a result the company developed a positive image within this rural area. The company also gained a reference and was able to showcase what kind of service and quality it provides to several potential customers.
  • 23. Helping Eagle Fencing Fly 20 Taking this a step further the company could put fence ‘signs’ on such projects as well as highlight them on the company website. Building a positive public image and giving employees a sense of pride in the organization can only help the company improve performance and gain new customers. This could also attract customers based on a positive company image and could create many new, loyal customers who come to Eagle Fencing first because the company does the ‘right’ thing. Giving back to the communities that keep the company in business is a fantastic way to improve the long-term growth and value of the organization. 9. Diversify product offerings Finally, the diversification of product offerings will help Eagle Fencing establish itself in new, growing target markets. Although there is little research to support it simple reasoning would lead one to believe that the demand for fence construction in rural areas is declining as Utah’s population continues to grow. By the same stroke the demand for fencing found in suburban areas, such as vinyl and chain link fencing continues to grow with the growing population. By shifting company focus from long, rural type projects to more compact, urban type projects the company can keep up with the new trends in the market. This could help the company survive the current tough times and hopefully thrive as it looks to move forward for the next 25 years. Offering new products would take little training and almost no new equipment from the company. With little risk associated with the decision and possibilities of huge rewards the decision to offer new products is a great option for Eagle Fencing. Several of the company’s direct competitors already offer similar products and with the current niche market of range fence dwindling it makes sense for the company to expand its product offerings.
  • 24. Helping Eagle Fencing Fly 21 10. Implement new products/services The company will need to advertise new product offerings through the aforementioned marketing avenues. Training will be needed, which involves a short 1-day training offered for free from the product vendors (IFA/Steve Regan Co.). With the purchase of new tools and changes in the current fence construction process Eagle Fencing will be able to offer quality vinyl and chain link products to its customers. The resources needed to implement new products and services, specifically vinyl and chain link fencing include simple hand tools including special drills, wrenches, and levels and measuring equipment. Simple training offered by the product vendors will be needed to educate crews on installment techniques. Minor changes to current fence construction techniques including cementing post holes instead of tamping, and the use of more accurate measuring instruments including laser levels, will be needed to offer these new products. Other than these minor changes Eagle Fencing is already prepared and suited to offer vinyl and chain link products to customers.
  • 25. Helping Eagle Fencing Fly 22 A2bi. Timeline for Implementation of Solutions. Timetable for Solution Implementation. First Month Create new strategic marketing and operations plan, inform crew foremen of the new company direction. 06-25-13 to 07-31-13 Start new training and education program including set readings for crew foremen and training on new product offerings. 06-25-13 to indefinite Create new company website, business cards and fence signs. 06-25-13 to 7-31-13 Second Month Start new radio advertising campaign that will run for the following 12 months. Partner with local station to create sufficient advertising coverage. 07-31-13 to 07- 31-14 Set up partnerships with affiliate retailers to help expand advertising and enhance effectiveness. 07-15-13 to 8-15-13 Train employees on new product offerings and begin to advertise them to potential customers. 07-15-13 to 7-16-13 Third Month Complete community outreach project, start searching for a new community outreach project for next quarter. Project months: 08-13, 11-13, 2-14, 5-14, 8-14 etc. Gather feedback from customers and employees for the past 3 months of operations, evaluate and change company strategy accordingly. 10-01-13 to 10-31-13
  • 26. Helping Eagle Fencing Fly 23 A2bc. Long-term financial and organizational impact of the recommendation.  *(estimates on finances provided by the company and do not reflect actual numbers/ prices for expenses are estimates only and may not reflect the actual cost to the company due to taxes/shipping and other factors) The following chart shows the financial impact of starting a new website using the recommended tools. This chart includes the costs associated with hosting, advertising, and setup with GoDaddy.com and shows the initial startup costs along with the yearly running costs. This will benefit Eagle Fencing through additional advertising avenues along with improved visibility through search engine optimization. Costs associated with new online presence: Product needed Start up cost Yearly costs Domain name $12.99 $4.99 (5 year Certification) Hosting/Design/Email $0 $61.08 (with 3 year plan) Google Apps for Business $0 $50.00 (per user per year) Search Engine Visibility $0 $32.28 Programmer fees $75 $0 Total costs for website: $87.99 $148.35 (with above term durations) The next chart shows the costs associated with the traditional marketing strategy recommended for Eagle Fencing. It includes the unit cost per item along with the projected yearly/extended time cost for the company. Due to the nature of the company’s target market and information identifying characteristics of the current target market a Traditional marketing plan is needed to reach potential customers. These costs will help the company build up brand awareness within the target geographical area and will help make the company, and its products, visible to the general public. This will be a costly change for Eagle Fencing but can also offer the
  • 27. Helping Eagle Fencing Fly 24 most benefits to the company due to the rural nature of the business and target market which might not be reached by other advertising avenues. The establishment of a firm marketing plan will be essential as the company looks to gain new customers and expand operations. Costs associated with new Traditional Marketing avenues. Product needed Unit Cost Yearly costs Business Cards (per 500) $19.95 Dependant on Demand Fence Signs (per sign) $26.80 (each) $402 (1 for each project) Shirts for Employees $111.84 (per 24) $335.52 Logos for Vehicles $8.39 each $41.95 Radio Advertising $900 startup $1,000 a month x 7 months = $7,000 (estimates done by radio station suggested) Total yearly costs: $8,699.42 Finally the 3rd chart shows the costs associated with establishing company education and communication policies. This will help to improve company leadership, collaboration and improve communication. Due to the distances between projects effective communication is paramount to Eagle Fencing’s success. Improving communication will also help improve customer service and will give Crew Foremen the ability to better manage unforeseen problems that arise during construction products. Following the chart the information based on the ‘test’ advertising month (which included a minor radio ad along with traditional advertising in local newspapers) indicates a substantial market growth is possible for Eagle Fencing using the new marketing avenues developed by the company. Costs associated with education and communication. Product needed Unit/Startup Cost Yearly costs
  • 28. Helping Eagle Fencing Fly 25 Books for employees $10 (each/varies) $60 (2 per year per 3 management members) Company Cell phones (Data/Minutes included with Verizon Wireless) $200 (depending on phones and options) $1,500 (includes data/minutes etc.) Training on new products (based on labor costs) $55 per hour (based on typical crew pay rate) $880 (2 crews at 8 hours each) Total yearly costs: $2,640 Total Financial impact of recommendations Costs for 1st year: $11,575.76 Expected growth percentage (based on May test market): 15% (per year) Total revenues for last year: $186,000 (approximate given by owner) x 1.15 growth = $213,900 or a $27,900 increase for the investment. The new campaign projects to generate a positive ROI of approximately $16,324.24 per year.
  • 29. Helping Eagle Fencing Fly 26 B. Log of time spent with client Date Subject/Description Time Spent with Client 5/13/13 Initial meeting with client, went over assignment and plan for the company, and received permission from owner Tony White to find solutions for the company. Started test month advertising. 2.5 hours 5/20/13 Second meeting with client, areas of concern identified including marketing and an online presence. Conducted initial interview and went over general operations of the company. 2 hours 5/24/13 Discussed competitors’ strengths and weaknesses. Decided an online presence and differentiated product offering was needed. 1 hour 5/25/13 Gathered financial information about the company, acquired info on business history and past customer trends (occupation/location/age). 4 hours 5/27/13 Showed client proposed overview and solutions, got the go ahead to work on the details and start compiling project. 1 hour 6/3/13 Went over project progress with owner, tweaked solutions to fit business needs. Presented radio coverage data and website options to owner. 1 hour 6/10/13 Went over results of test month advertising and reviewed final numbers within the project. Met with crew foremen to get input on final details. 3 hours
  • 30. Helping Eagle Fencing Fly 27 Appendix 1, Utah’s Population
  • 31. Helping Eagle Fencing Fly 28 Appendix 2, Examples Webpage and Website Index (Sitemap) for Eagle Fencing Webpage Example Design:
  • 32. Helping Eagle Fencing Fly 29 Webpage Example Design continued:
  • 33. Helping Eagle Fencing Fly 30 Webpage Example Design continued:
  • 34. Helping Eagle Fencing Fly 31 Website Index (Sitemap)
  • 35. Helping Eagle Fencing Fly 32 Appendix 3, Radio Coverage Maps:
  • 36. Helping Eagle Fencing Fly 33 Works Cited Arbinger Institute. (2010). Leadership and Self-Deception. San Francisco: Berrett-Koehler Publishers. Heng, C. (2010, September 12). How much does it cost to set up a website. Retrieved from The site wizard: http://www.thesitewizard.com/gettingstarted/cost-setting-up-website.shtml Lancaster, G., & Reynolds, P. (2005). Management of Marketing. Taylor and Francis. Lifetime Vinyl Fencing. (2013, June 16). Frequently asked questions about vinyl fence. Retrieved from Lifetime Vinyl Fencing: http://www.lifetimevinylfencing.com/vinyl_fencing_faq.htm Market Research Reports. (2013, June 17). Global Fencing Market. Retrieved from PRWeb: http://www.prweb.com/releases/2013/3/prweb10497322.htm Phillips, D. T. (2009). Lincoln On Leadership: Executive Strategies for Tough Times. New York: Grand Central Publishing. Stokes, R. (2010). eMarketing: The Essential Guide to Online Marketing, v. 1.0. Flatword Knowledge. Summers, L. (2008, October 9). The Impacts of Utah's Population Growth. Retrieved from Utah Foundation: http://www.utahfoundation.org/reports/?page_id=270 Wikipedia. (2013, January 29). Definitions. Retrieved from Wikipedia The Free Encyclopedia: http://www.wikipedia.org/