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University of South Florida Sarasota-Manatee
Capstone Project:
Straegic Management Plan
Glengary Massage Center
Sarah Wendell
GEB 4890
April 16th, 2015
2
Table of Contents
The Company: Glengary Massage Center………………………………………… 3 - 5
Vision Statement……………………………………………………………………... 5
MissionStatement……………………………………………………………………. 5 - 6
Company Goals and Objectives……………………………………………………... 6 - 7
Competitive Environment Analysis………………………………………………… 7 - 9
Competitive Profile Matrix………………………………………………………….. 10 - 11
External Factor Evaluation Matrix (EFE) ………………………………………… 11 - 12
Internal Factor Evaluation Matrix (IFE) …………………………………………. 13
SWOT Analysis / Assessment of Alternatives……………………………………… 14 - 15
Recommendations and Implementations…………………………………………… 16 - 17
Quantitative Strategic Planning Matrix (QSPM) …………………………………. 17 - 18
Evaluation…………………………………………………………………………….. 19
Quantitative Analysis………………………………………………………………… 19
Executive Summary………………………………………………………………….. 20
3
The Company- Glengary Massage Center
“We Get Results”
Glengary Massage Center, founded in 1991 by Ed Weinstein, is a small family owned
massage therapy business in south Sarasota, FL that focuses on rehabilitation medical massage.
The main focus is providing customized therapy for clients as an individual by using structural
and injury specific massage therapy in order to improve their quality of life.
Before Glengary was developed Ed worked in a steel factory his parents owned and had
great support from his wife Sarah. One day and 2 children later, Ed stumbled upon a massage
parlor on the way home from the factory. Not know what massage even was up to this point, Ed
was immediately intrigued by first foot step in the door and he instantly knew he wanted to help
people get results and feel structurally better through massage. That same day Ed came home and
told his wife he wanted to go back to school for massage therapy and obtain a massage license.
All Sarah, knew was ‘this better work’ with the third child on the way. Ed quit the factory and
with great support from Sarah he studied at Sarasota School of Natural and Healing Arts and
finished within two years obtaining a massage therapy licenses and degree.
During the early 1990’s, Glengary Massage Center ran as a four room business rental,
which contained Ed Weinstein L.M.T, Michael Speth L.T.M and two other rooms for rent, one
of which a co-worker rented to provide facial treatments. Since then, Glengary Massage Center’s
facility has been paid off and is in Ed’s ownership, although rent is still paid by those who use a
room aiding in utilities. Glengary now focuses wholly on massage therapy, with the exception of
a personal trainer on site. There are three massage therapist on site; Ed, Michael and Liana, who
are all able to perform massage services including deep tissue, Swedish, neuromuscular, sports,
reflexology and myofascial release.
4
Ed had triple bypass surgery in 2005. Pre and post surgery, Ed and Michael used a
blended technique of electronic muscle stimulation (ultra sound) and myofascial release massage
therapy. Ed's pain level within a week of surgery was nearly nonexistent which made him feel so
strongly about the benefit of this therapeutic technique that he and Mike Speth co-created the
therapy, Medssage. To break it down, trauma, inflammatory responses, and surgical procedures
create myofascial restrictions, which are short, tight muscle fibers. By applying gentle sustained
pressure into the myofascial connective tissue (muscle tissue) restrictions, pain is being
eliminated and motion within the stretch of a muscle is restored. Electronic muscle stimulation
(ultra sound) uses heat and vibration that can penetrate about 3 inches into the muscle. This
technique aids in the myofascial massage by breaking down the restricted muscle at a deeper
level than normal touch of a hand (or elbow) can achieve. Ed now wants to educate the public
and medical practitioners on the Medssage technique to improve the quality of life for
individuals, recruit another dedicated therapist and retain more clients. A problem he is facing is
there is not enough resources or time allocated to educate the public on the benefits of this
technique.
Continuing with improving the well being of the public, Ed has created a product called
“2 minutes 2 Perfect Posture”.
5
To use this product sit on top at the very bottom, extend feet and legs out in front right
under the hip bones, slowly roll back onto the product until you are in complete laying position
with your hands to the side and breath deeply for the next 2 minutes. One should feel the stretch
throughout the spine and chest as well as improve blood flow with the deep breathing. For a
greater stretch, one can extend their arms out to the side or above there head. This device assists
with the maximum extension and decompression of the spine by stretching and relieving any
sustained pressure held in the back region. This stretch aids in the relief of back, neck, chest pain
& hand tingling. By lying on this device 2 minutes every day one can decrease their every day
back, neck and chest discomfort. In order to purse promoting this product full time, Ed would
have to have to decrease the amounts of massages he does in a day / week. Again, Ed runs into
the problem of little resources and time to allocate to promoting the product “2 Minutes 2 Perfect
Posture”.
Vision Statement
Glengary Massage center did not have a vision statement. After speaking with the owner,
Ed Weinstein, the following vision statement was created:
Glengary’s vision is to innovate products to aid in correcting posture while continuing
education to provide each client with an individual massage treatment that will get structurally
optimum results.
Mission Statement
By gathering information from the owner and LMT, Ed, we identified that the
surrounding community, customization of treatments for clients and providing a unique service
different from the rest of the massage industry was the main focus of the business. Therefore the
following mission statement was created:
6
At Glengary, we are committed to aiding clients break the cycle of discomfort by
nurturing painful areas of the body within a relaxing environment using a technique called
Medssage, a combination of ultrasound with electronic muscle stimulation and myofascial
release massage therapy. Technological innovations in new products that aid in correcting bad
posture habits as well as the use of ultra sound with electronic muscle stimulation in massage
therapy with a focus on those with sports, pre/post-surgery and accident related injuries. Our
therapist are licensed massage therapist who embrace continued education and training in the
innovating world of massage therapy and structural integration providing them with competitive
advantage through proving to our clients that Medssage works to reduce discomfort and aid in
healing tissue within one therapy session in turn improving customer retention. We are focused
on creating pain-free lifestyles through the value of our Medssage technique for our community
within Sarasota as well as providing seminars on ultrasound with electronic muscle stimulation
for related practitioners. Glengary message center is devoted to developing trusting
relationships by treating each client as an individual with the highest quality of care, acting with
our tools to get results that end in comfort with movement of the body’s structural integration.
Company Goals and Objectives
Ed Weinstein’s goals for Glengary Massage Center in the year 2015 include:
1. Educate the public on the benefits of massages geared towards trauma, inflammatory
responses, and pre/post surgical procedures using the formulated medssage technique.
2. Promote newly developed product “2 Minutes to Perfect Posture (2M2)”.
Long-term objectives to reach the above goals include:
7
1. Create a media Champaign via social network, you tube and website to provide webinars
on medssage technique as well as the product “2 Minutes 2 Perfect Posture”.
2. Adopt and train a certified massage therapist interested in the message technique.
Looking at Porter’s generic strategies (cost leadership, differentiation, focus) for competitive
analysis, Glengary Massage Center has implemented Type 3: Differentiation strategy. The
differentiation strategy is aimed at producing products and services considered unique industry
wide and directed at customers who are relatively price-insensitive (David, 147). This strategy
has created an advantage for Glengary with the creation of the medssage technique, a blend of
myofascial release massage therapy topped with the technology of electronic muscle stimulation.
Glengarry’s current strategy consists of word-of-mouth promotion through current clients.
Competitive Environment Analysis
According to IBISWorld, the massage service industry primarily provides therapeutic and
nontherapeutic massages. Therapeutic massages encompass soft-tissue manipulation techniques
while nontherapeutic massages are primarily for relaxation purposes. Glengary Massage Center
focuses mainly on therapeutic massages, which make up 62.7% of the massage service industry.
A therapeutic massage is designed to relieve pain stemming from the back, joints, muscles and
nerves, concentrating on relaxing the muscles that are located below the surface of the top
muscles by applying more pressure to treat the targeted area (IBISworld).
Massage therapy is a service-based industry containing small companies or family owned
practices that provide service to local geographic areas. Regulations specific to the massage
industry are light providing states to set their own regulations in place or provide a state
certification, which consists of a certain amount of training hours, background check and CPR
8
certification. From www.Floridamassagetheraphy.gov requirements to become a License
Massage Therapist in Florida include:
 18 years of age or received a high school diploma or graduate equivalency diploma
(GED)
 Submit application and fee for licensure
 Completed a minimum 500 clock hours of study at a brad-approved massage school or
has completes a board-approved apprenticeship program.
 Must pass one of the four accepted examinations (Massage and Bodywork Licensing
Examination, National Certification Examination in Therapeutic Massage, National
Certification Examination in Therapeutic Massage and Bodywork National Exam for
State Licensure)
 Mandatory continuing education requirements: Completion of a two (2) hour Prevention
of Medical Errors course, Completion of a three (3) hour HIV/AIDS course, Completion
of a ten (10) hour Florida Laws and Rules course
 License verification requirements
A low level of technology change has been consistent up to 2014 and is estimated to continue
to remain low through 2019. The use of hot stones, lava shell, cupping and aromatherapy
continue to grow as massage techniques. Advancements in massage techniques have been made
with new blends of massage therapy that are developed to better suit the needs of clients and
personalize health-based solutions. Glengary massage center has innovated the blend of
stimulation and heat with massage therapy, a practice they named Medssage.
Competitive environmental forces of the massage service industry include per capita
disposable income, number of adult’s aged 20 to 64, national unemployment rate and urban
9
population. Increasing health awareness across the nation with medical evidence of the dangers
of stress and a focus on healthy living are providing positive impact on massage centers, creating
curious customers as well as repeat clients seeking to improve their longevity of life. As the
economy continues in a positive direction with falling unemployment rates and rising per capita
disposable income consumers begin to pay more attention to their health and the demand for
massage therapy increases.
Focused in Florida, Sarasota contains an urban population with a median resident’s age of
44.5 years, a majority between the years of 20-65 years, among an estimated per capita income
of $30,152.00. Currently the national unemployment rate is 5.4% versus Sarasota’s
unemployment rate of 5.6%. The massage service industry should toughly analyze the provided
competitive environmental forces key factors in order to pursue a competitive advantage. These
forces provide the most impact on how successfully the massage service industry operates
yearly.
Porter’s five forces model assisted to clearly identify and elaborate on the massage
service industry’s competitive environment described above. Using this model I will be able to
identify key aspects of each force that impact the firm and evaluate how important the aspect is
to the firm in order to focus on future strategies with consistent implementation.
10
In order to get a better understanding of the positioning of Glengary Massage Center in
the massage service business in Sarasota, FL, I have created a competitive profile matrix. The
competitive profile matrix compares both internal and external factors of the massage service
businesses, as well as clarifies the competitive advantage each business has over the competitors.
The competitors I chose to analyze, Massage Envy and Massage Experience Siesta Key, are
based on geographic location (distance from Glengary Massage Center) and similarity.
Competitive Profile Matrix
Glengary
Massage Center
Massage
Experience Siesta
Key
Massage
Envy
Critical Success Factors Weight Rating Score Rating Score Rating Score
Promotion .08 1 .08 1 .08 3 .32
Product/Service Quality .18 4 .72 3 .54 2 .36
Customer Service .13 4 .52 4 .52 2 .26
Business Location .05 1 .05 1 .05 3 .15
Customer Retention .10 3 .30 2 .20 3 .30
Price Competitiveness .05 2 .10 2 .10 4 .20
Customer Reviews .09 4 .36 3 .27 1 .09
Product Differentiation .11 4 .44 2 .22 2 .22
Atmosphere .06 3 .18 1 .06 2 .12
Employee Dedication .15 3 .45 4 .60 2 .30
Total 1 3.92 2.58 2.40
PowerofSuppliers
Suppliers of Massage Oil = Low
Suppliers of Massage Tables = Low
PowerofConsumers
Per Capita Disposable Income = Medium
# of Adults ages 20-65 = Medium
Importance of Service = Medium
Entry of Competitors
Barriers to entry = Low
Industry growth rate = Low
Regulation = Low
Entry of Substitute Products
Price of Substitutes = Comparable
Technological Advancements = Low
Rivalry Among Existing Firms
Competition = High
Product Differentiation = Low
11
Although the competitive profile matrix shows that Glengary Massage Center is the
leader with a greater overall score when compared against competitors, is always room for
improvement by focusing on the individual key critical success factors that Glengary fell short
in. Massage experience Siesta Key has similar ratings in factors such as promotion, location,
customer service and price competitiveness. Massage Envy can take advantage of promotion
over the other 2 businesses because being a franchise; more money can be spent on advertising
and promotions. Using the competitive profile matrix, we can identify that Glengary Massage
Center should focus on improving promotion, capitalizing on the medssage technique and the
product “2 minutes to perfect posture (2M2)”.
After creating an understanding of the local competition, an analysis of existing external
opportunities and threats within the current environment is assessed. An External Factor
Evaluation (EFE) matrix summarizes and evaluates information about the current environment
within an industry. Determining the external factors that impact the massage business will aid in
the focus on future strategies as well as maintaining consistency when implementing new
strategies. Using Glengarry’s current strategy, and External Factor Evaluation was created to
understand the how effective the strategy has been thus far.
External Factor Evaluation Matrix
Glengary Massage Center
Opportunities Weight Rating Weighted Score
1. Good reputation .06 4 .24
2. Massage License .07 3 .21
3. Loyal customer base .07 3 .21
4. Continued education workshops .03 1 .03
5. Community median age is 44.5 in Sarasota– Target Market .04 2 .08
6. Retain more client testimonials / feedback .02 3 .06
7. Networking through community .05 1 .05
8. Promote brand/product/services through demonstrations at events .06 1 .06
12
9. Increased in per capita disposable income .05 2 .10
10. Health awareness on the rise .05 2 .10
Threats Weight Rating Weighted Score
1. Alternatives (Acupuncture, Physical Therapy, ActiveIsolated Stretching) .07 2 .14
2. Therapeutic massage therapy competitors .05 2 .10
3. Economic Instability .05 2 .10
4. Seasonality .04 2 .08
5. Negative word of mouth .07 3 .21
6. Lack of advertising / No hired marketer .07 3 .21
7. Low barriers to entry .03 1 .03
8. Coupons provided by competitors .03 2 .06
9. Fluctuation of clients – Feel better, not as many massages .04 3 .12
10. New products for better posture .05 2 .10
Total 1 2.29
Even though Glengary scored an above average score of 2.29, there is room for external
improvement. After preforming the External Factor Evaluation, the opportunities open for
Glengary to take advantage of include:
1) Loyal Customer Base
2) Community median age is 44.5 in Sarasota– Target Market
3) Promote brand/product/services through demonstrations at events
Glengary’s biggest threats to reduce include:
1) Lack of Advertising / No Hired Marketer
2) Alternatives Therapies (Acupuncture, Physical Therapy, Active Isolated Stretching)
3) Negative Word of Mouth
For a company to analyze their current internal strengths and weaknesses, an Internal Factor
Evaluation (IFE) is created. This is a strategy formulation tool that focuses on the functional
levels of the business to view clearly what is working within the business and what needs
improvement.
13
Internal Factor Evaluation Matrix
Glengary Massage Center
Strengths Weight Rating Weighted Score
1. Detailed office administration .05 3 .15
2. Competent professional employees .07 2 .14
3. Knowledge of variety of massage techniques .07 2 .14
4. Personalselling .03 1 .03
5. PersonalTrainer on site .04 2 .08
6. Innovative massage techniques (Differentiation) .02 4 .08
7. Friendly, relaxing, accommodating atmosphere .05 3 .15
8. Employees continue education .05 2 .10
9. Ambition to produce products / services for better posture .05 2 .10
10. Aspiration to educate the public .07 2 .14
Weaknesses Weight Rating Weighted Score
1. Limited marketing / advertising .06 3 .18
2. Limited time / resources .05 3 .15
3. Upkeep with maintenance in business building .05 2 .10
4. Only 3 therapists .04 2 .08
5. No business computer .03 1 .03
6. Location .06 2 .12
7. Lack of demonstrations for differentiated products/services .05 3 .15
8. Lack of social media interaction .06 3 .18
9. Not open on weekends .05 3 .15
10. Does not take insurance .05 3 .15
Total 1 2.40
Glengary Massage Center scored an above average score of 2.40. Even though a high
score was obtained, there is always room for internal improvement.
Glengary Massage Center’s greatest strengths include:
1) Friendly, Relaxing, Accommodating atmosphere
2) Innovative Massage Techniques (Differentiation)
3) Competent, Professional Employees
Glengary Massage Center’s greatest weaknesses include:
1) Limited Marketing / Advertising
2) Not Open on Weekends
3) Lack of Demonstrations for different products / services
14
SWOT Analysis / Assessment of Alternatives
A SWOT (Strengths – Weaknesses – Opportunities – Threats) analysis is a tool used to
match internal and external factors of an established business. This aids in creating 4 strategies:
SO (strengths – opportunities) strategies, WO (weakness – opportunities) strategies, ST
(strengths – threats) strategies and WT (weakness – threats) strategies. Glengary Massage Center
has been in business for nearly 25 years and continues to be set in their established practices.
Therefore this is a proactive step to take in matching key factors to determine what continues to
provide success for the business, what doesn’t provide success for the business and what new
success strategies can be implemented moving forward.
The following is a SWOT (Strengths-Weakness-Opportunities-Threats) Matrix for
Glengary Massage Center:
STRENGHTS
1. Detailed office administration
2. Competent professional employees
3. Knowledge of variety of massage
techniques
4. Personalselling
5. Personaltrainer on site
6. Innovative massage techniques / Products
(Medssage/2M2)
7. Friendly, relaxing accommodating
atmosphere
8. Employees continue education
9. Ambition to produce products for better
posture
10. Aspiration to teach Medssage technique
WEAKNESSES
1. Limited marketing / advertising
2. Limited time / resources
3. Upkeep with maintenance in business
building
4. Only 3 therapists
5. No business computer
6. Location
7. Lack of demonstration for
differentiated products / services
8. Lack of social media interaction
9. Not open on weekends
10. Does not take insurance
OPPORTUNITITES
1. Good reputation
2. Massage License
3. Loyal customer base
4. Continued education workshops
5. Community median age is 44.5 – Target
Market
6. Retain more client testimonials / feedback
7. Networking through community
8. Promote brand/product/services through
THREATS
1. Alternatives (Acupuncture, Physical
Therapy, Active Isolated Stretching)
2. Therapeutic massage therapy competitors
3. Economic Instability
4. Seasonality
5. Negative word of mouth advertising
6. Lack of advertising / No hired marketer
7. Low barriers to entry
8. Coupons provided by competitors
15
demonstrations at events
9. Increased in per capita disposable income
10. Health awareness on the rise
9. Fluctuation of clients – Feel better, not as
many massages
10. New products for better posture
The highlighted key factors within the SWOT matrix determines areas of the current
business strategy that could be enhanced to create new strategies. The four areas are cross-
referenced to provide four strategies: SO (strengths – opportunities) strategies, WO (weakness –
opportunities) strategies, ST (strengths – threats) strategies and WT (weakness – threats)
strategies. This will support my proposed changes in the next section: Recommendations.
SO (Strengths – Opportunities) Strategies
1) Using their co-created Medssage technique as well as Ed’s product, the “2M2”, therapist at
Glengary could promote both product and service by demonstrations/seminars at events
containing their target market (community median age 44.5).
2) Friendly staff along with competent and professional therapist is a key to customer loyalty.
WO (Weakness – Opportunities) Strategies
1) Purchase a computer strictly for the business to increase social media interaction with loyal
customer base
2) Open on the weekends to provide flexibility for the target market working class in the
community
3) Search businesses or events in the community to promote brand/product/services through
demonstrations at events
ST (Strengths – Threats) Strategies
1) Providing competent, professional therapists in a friendly and relaxing atmosphere with
product innovations to help clients provides competitive advantage over alternatives
2) Providing competent, professional therapists in a friendly and relaxing atmosphere with
product innovations decrease negative word of mouth; increase marketing
WT (Weakness – Threats) Strategies
1) Increase marketing buy purchasing a business computer to ward off competition in alternative
areas
2) Increase social media interaction to diminish any negative word of mouth
3) Provide a competitive advantage by opening up on the weekends (Saturday)
16
Recommendations and Implementations
Evaluating the SWOT analysis and determining the key factors that can be enhanced to
continue the successful growth of Glengary Massage Center, I have developed two
recommendations as well as developed strategies for implementation. I focused my
recommendations on the problems identifiable with promotions based on the internal audit as
well we Ed’s goals for 2015.
To recall, Ed’s goals for Glengary Massage Center in the year 2015 include:
1. Educate the public on the benefits of massages geared towards trauma, inflammatory
responses, and pre/post surgical procedures using the formulated medssage technique.
2. Promote newly developed product “2 Minutes to Perfect Posture (2M2)”.
Long-term objectives to reach the above goals include:
1. Create a media Champaign via social network, you tube and website to provide webinars
on medssage technique as well as the product “2 Minutes 2 Perfect Posture”.
2. Adopt and train a certified massage therapist interested in the message technique.
Recommendation #1: Purchase a Computer for the Business
Currently Glengary Massage Center does not have an in office computer for the business
as a whole. I believe that obtaining a computer will assist in being proactive with social media.
Also it can provide a customer database.
Implementation #1: Purchase a Computer for the Business
Buy a computer that best fits the companies social media and customer database needs as
soon as budget allows.
17
Recommendation #2: Rent out 4th room to certified massage therapist
Obtaining another massage therapist, molding them with the medssage technique to fit
the company’s model, this will relieve Ed of excess massage session so he can be the face of
Glengary Massage Center in the community. This will provide Ed the chance to educate the
public on the co-created medssage therapy as well as promote his product creation “2 minutes to
perfect posture” (2M2).
Implementation #2: Rent out 4th room to certified massage therapist
Time needs to be allocated to find a certified, trustworthy massage therapist interested in
specialized techniques. Background check, drug screening and fingering prints will be conducted
to ensure quality applicants. Procedures include:
 Referrals
 Scouting massage therapy schools
 Linked In
Quantitative Strategic Planning Matrix
Purchase a
business
compute
Rent out 4th
room to
certified
massage
therapist
Opportunities Weight AS TAS AS TAS
1. Good reputation .06 3 .18 1 .06
2. Massage License .07 1 .07 4 .28
3. Loyal customer base .07 3 .21 2 .14
4. Continued education workshops .03 1 .03 4 .12
5. Community median age is 44.5 in Sarasota– Target Market .04 3 .12 1 .04
6. Retain more client testimonials / feedback .02 4 .08 2 .04
18
7. Networking through community .05 4 .20 1 .05
8. Promote brand/product/services through demonstrations at events .06 3 .18 3 .18
9. Increased in per capita disposable income .05 1 .05 2 .10
10. Health awareness on the rise .05 2 .10 1 .05
Threats Weight AS TAS AS TAS
1. Alternatives (Acupuncture, Physical Therapy, ActiveIsolated Stretching) .07 2 .14 1 .07
2. Therapeutic massage therapy competitors .05 1 .05 1 .05
3. Economic Instability .05 1 .05 1 .05
4. Seasonality .04 3 .12 1 .04
5. Negative word of mouth .07 3 .21 2 .14
6. Lack of advertising / No hired marketer .07 4 .28 1 .07
7. Low barriers to entry .03 1 .03 2 .06
8. Coupons provided by competitors .03 1 .03 1 .03
9. Fluctuation of clients – Feel better, not as many massages .04 3 .12 1 .04
10. New products for better posture .05 3 .15 2 .10
Totals 3.29 1.71
Strengths
1. Detailed office administration .05 4 .20 1 .05
2. Competent professional employees .07 1 .07 1 .07
3. Knowledge of variety of massage techniques .07 2 .14 4 .28
4. Personalselling .03 4 .12 2 .05
5. PersonalTrainer on site .04 1 .04 1 .04
6. Innovative massage techniques (Differentiation) .02 3 .06 3 .06
7. Friendly, relaxing, accommodating atmosphere .05 1 .05 1 .05
8. Employees continue education .05 2 .10 4 .20
9. Ambition to produce products / services for better posture .05 2 .10 1 .05
10. Aspiration to educate the public .07 4 .28 3 .21
Weaknesses
1. Limited marketing / advertising .06 4 .24 4 .24
2. Limited time / resources .05 4 .20 4 .20
3. Upkeep with maintenance in business building .05 1 .05 3 .15
4. Only 3 therapists .04 2 .08 4 .12
5. No business computer .03 4 .12 1 .03
6. Location .06 2 .12 1 .06
7. Lack of demonstrations for differentiated products/services .05 4 .20 4 .20
8. Lack of social media interaction .06 4 .24 2 .12
9. Not open on weekends .05 3 .15 4 .20
10. Does not take insurance .05 1 .05 1 .05
Total 1 2.61 2.88
19
Evaluation
1. Glengary Massage Center can measure the successfulness of the purchase of a computer
by the productivity of media campaigns via social network, you tube and website to
provide webinars on medssage technique as well as the product “2 Minutes 2 Perfect
Posture”. This can be measured by keeping count on views, responses and “likes” per
day/week.
2. Renting out the 4th room can be measured by revenue increase from the profitability
solely from rent payments. Also, since this will give Ed the opportunity to be active in the
community customer retention is another way to measure success.
Quantitative Analysis
Although I was not able to receive the financial statements for Glengary Massage Center,
I have gathered some data to make estimated guesses with the overall profit of the business. Ed
Weinstein owns the building Glengary Massage Center operates out of. Two out of the three
therapists pay rent of $500.00 each month and the personal trainer on site pays $1000.00 rent per
month totaling $24,000.00 per year profit for Glengary Massage Center business alone. Of this
profit, an estimate of $3,000.00 could be used to purchase a business computer where social
media interaction can be implemented. Renting out the 4th room in the facility could potentially
be beneficial for Glengary Massage Center as well as Ed himself. This would provide more
income for the business. Another benefit of renting out the 4th room would be the reduction in
Ed’s massages providing him opportunity to promote brand/product/services through
demonstrations at events and related businesses within the Sarasota community.
20
Executive Summary
Using the concepts learned throughout this semester in Strategic management decision-making, I
have created the preceding strategic business plan on the local business Glengary Massage
Center. Explained are current strategies used, massage industry analysis, and what forces and
challenges, both internally and externally, affect Glengary Massage Center. Provided in this plan
are the five matrices: EFE, CPM, IFE, SWOT, and the QSPM, that have lead me to choose the
recommendations that will assist the local business resolve promotion issues with the limited
time and resources provided. Using the promotions recommendations I have provided ways to
implement and evaluate the processes.
21
Works Cited
"Massage Services." IBISWorld. IBISWorld. Web. 21 Mar. 2015.
<http://clients1.ibisworld.com.ezproxy.lib.usf.edu/reports/us/industry/default.aspx?entid=6028>.
"Licensed Massage Therapist (LMT) by Examination." FL Board of Massage Therapy Licensed
Massage Therapist LMT by Examination Comments. Web. 6 Apr. 2015.
"Sarasota, Florida." (FL 34236, 34242) Profile: Population, Maps, Real Estate, Averages,
Homes, Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime, Moving, Houses, News,
Sex Offenders. Web. 6 Apr. 2015
David, Fred, and Forest David. Strategic Management Concepts and Cases: A Competitive
Advantage Approach. Upper Saddle River, New Jersey: Pearson, 2013. Print.

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Wendell. Capstone Written Portion

  • 1. University of South Florida Sarasota-Manatee Capstone Project: Straegic Management Plan Glengary Massage Center Sarah Wendell GEB 4890 April 16th, 2015
  • 2. 2 Table of Contents The Company: Glengary Massage Center………………………………………… 3 - 5 Vision Statement……………………………………………………………………... 5 MissionStatement……………………………………………………………………. 5 - 6 Company Goals and Objectives……………………………………………………... 6 - 7 Competitive Environment Analysis………………………………………………… 7 - 9 Competitive Profile Matrix………………………………………………………….. 10 - 11 External Factor Evaluation Matrix (EFE) ………………………………………… 11 - 12 Internal Factor Evaluation Matrix (IFE) …………………………………………. 13 SWOT Analysis / Assessment of Alternatives……………………………………… 14 - 15 Recommendations and Implementations…………………………………………… 16 - 17 Quantitative Strategic Planning Matrix (QSPM) …………………………………. 17 - 18 Evaluation…………………………………………………………………………….. 19 Quantitative Analysis………………………………………………………………… 19 Executive Summary………………………………………………………………….. 20
  • 3. 3 The Company- Glengary Massage Center “We Get Results” Glengary Massage Center, founded in 1991 by Ed Weinstein, is a small family owned massage therapy business in south Sarasota, FL that focuses on rehabilitation medical massage. The main focus is providing customized therapy for clients as an individual by using structural and injury specific massage therapy in order to improve their quality of life. Before Glengary was developed Ed worked in a steel factory his parents owned and had great support from his wife Sarah. One day and 2 children later, Ed stumbled upon a massage parlor on the way home from the factory. Not know what massage even was up to this point, Ed was immediately intrigued by first foot step in the door and he instantly knew he wanted to help people get results and feel structurally better through massage. That same day Ed came home and told his wife he wanted to go back to school for massage therapy and obtain a massage license. All Sarah, knew was ‘this better work’ with the third child on the way. Ed quit the factory and with great support from Sarah he studied at Sarasota School of Natural and Healing Arts and finished within two years obtaining a massage therapy licenses and degree. During the early 1990’s, Glengary Massage Center ran as a four room business rental, which contained Ed Weinstein L.M.T, Michael Speth L.T.M and two other rooms for rent, one of which a co-worker rented to provide facial treatments. Since then, Glengary Massage Center’s facility has been paid off and is in Ed’s ownership, although rent is still paid by those who use a room aiding in utilities. Glengary now focuses wholly on massage therapy, with the exception of a personal trainer on site. There are three massage therapist on site; Ed, Michael and Liana, who are all able to perform massage services including deep tissue, Swedish, neuromuscular, sports, reflexology and myofascial release.
  • 4. 4 Ed had triple bypass surgery in 2005. Pre and post surgery, Ed and Michael used a blended technique of electronic muscle stimulation (ultra sound) and myofascial release massage therapy. Ed's pain level within a week of surgery was nearly nonexistent which made him feel so strongly about the benefit of this therapeutic technique that he and Mike Speth co-created the therapy, Medssage. To break it down, trauma, inflammatory responses, and surgical procedures create myofascial restrictions, which are short, tight muscle fibers. By applying gentle sustained pressure into the myofascial connective tissue (muscle tissue) restrictions, pain is being eliminated and motion within the stretch of a muscle is restored. Electronic muscle stimulation (ultra sound) uses heat and vibration that can penetrate about 3 inches into the muscle. This technique aids in the myofascial massage by breaking down the restricted muscle at a deeper level than normal touch of a hand (or elbow) can achieve. Ed now wants to educate the public and medical practitioners on the Medssage technique to improve the quality of life for individuals, recruit another dedicated therapist and retain more clients. A problem he is facing is there is not enough resources or time allocated to educate the public on the benefits of this technique. Continuing with improving the well being of the public, Ed has created a product called “2 minutes 2 Perfect Posture”.
  • 5. 5 To use this product sit on top at the very bottom, extend feet and legs out in front right under the hip bones, slowly roll back onto the product until you are in complete laying position with your hands to the side and breath deeply for the next 2 minutes. One should feel the stretch throughout the spine and chest as well as improve blood flow with the deep breathing. For a greater stretch, one can extend their arms out to the side or above there head. This device assists with the maximum extension and decompression of the spine by stretching and relieving any sustained pressure held in the back region. This stretch aids in the relief of back, neck, chest pain & hand tingling. By lying on this device 2 minutes every day one can decrease their every day back, neck and chest discomfort. In order to purse promoting this product full time, Ed would have to have to decrease the amounts of massages he does in a day / week. Again, Ed runs into the problem of little resources and time to allocate to promoting the product “2 Minutes 2 Perfect Posture”. Vision Statement Glengary Massage center did not have a vision statement. After speaking with the owner, Ed Weinstein, the following vision statement was created: Glengary’s vision is to innovate products to aid in correcting posture while continuing education to provide each client with an individual massage treatment that will get structurally optimum results. Mission Statement By gathering information from the owner and LMT, Ed, we identified that the surrounding community, customization of treatments for clients and providing a unique service different from the rest of the massage industry was the main focus of the business. Therefore the following mission statement was created:
  • 6. 6 At Glengary, we are committed to aiding clients break the cycle of discomfort by nurturing painful areas of the body within a relaxing environment using a technique called Medssage, a combination of ultrasound with electronic muscle stimulation and myofascial release massage therapy. Technological innovations in new products that aid in correcting bad posture habits as well as the use of ultra sound with electronic muscle stimulation in massage therapy with a focus on those with sports, pre/post-surgery and accident related injuries. Our therapist are licensed massage therapist who embrace continued education and training in the innovating world of massage therapy and structural integration providing them with competitive advantage through proving to our clients that Medssage works to reduce discomfort and aid in healing tissue within one therapy session in turn improving customer retention. We are focused on creating pain-free lifestyles through the value of our Medssage technique for our community within Sarasota as well as providing seminars on ultrasound with electronic muscle stimulation for related practitioners. Glengary message center is devoted to developing trusting relationships by treating each client as an individual with the highest quality of care, acting with our tools to get results that end in comfort with movement of the body’s structural integration. Company Goals and Objectives Ed Weinstein’s goals for Glengary Massage Center in the year 2015 include: 1. Educate the public on the benefits of massages geared towards trauma, inflammatory responses, and pre/post surgical procedures using the formulated medssage technique. 2. Promote newly developed product “2 Minutes to Perfect Posture (2M2)”. Long-term objectives to reach the above goals include:
  • 7. 7 1. Create a media Champaign via social network, you tube and website to provide webinars on medssage technique as well as the product “2 Minutes 2 Perfect Posture”. 2. Adopt and train a certified massage therapist interested in the message technique. Looking at Porter’s generic strategies (cost leadership, differentiation, focus) for competitive analysis, Glengary Massage Center has implemented Type 3: Differentiation strategy. The differentiation strategy is aimed at producing products and services considered unique industry wide and directed at customers who are relatively price-insensitive (David, 147). This strategy has created an advantage for Glengary with the creation of the medssage technique, a blend of myofascial release massage therapy topped with the technology of electronic muscle stimulation. Glengarry’s current strategy consists of word-of-mouth promotion through current clients. Competitive Environment Analysis According to IBISWorld, the massage service industry primarily provides therapeutic and nontherapeutic massages. Therapeutic massages encompass soft-tissue manipulation techniques while nontherapeutic massages are primarily for relaxation purposes. Glengary Massage Center focuses mainly on therapeutic massages, which make up 62.7% of the massage service industry. A therapeutic massage is designed to relieve pain stemming from the back, joints, muscles and nerves, concentrating on relaxing the muscles that are located below the surface of the top muscles by applying more pressure to treat the targeted area (IBISworld). Massage therapy is a service-based industry containing small companies or family owned practices that provide service to local geographic areas. Regulations specific to the massage industry are light providing states to set their own regulations in place or provide a state certification, which consists of a certain amount of training hours, background check and CPR
  • 8. 8 certification. From www.Floridamassagetheraphy.gov requirements to become a License Massage Therapist in Florida include:  18 years of age or received a high school diploma or graduate equivalency diploma (GED)  Submit application and fee for licensure  Completed a minimum 500 clock hours of study at a brad-approved massage school or has completes a board-approved apprenticeship program.  Must pass one of the four accepted examinations (Massage and Bodywork Licensing Examination, National Certification Examination in Therapeutic Massage, National Certification Examination in Therapeutic Massage and Bodywork National Exam for State Licensure)  Mandatory continuing education requirements: Completion of a two (2) hour Prevention of Medical Errors course, Completion of a three (3) hour HIV/AIDS course, Completion of a ten (10) hour Florida Laws and Rules course  License verification requirements A low level of technology change has been consistent up to 2014 and is estimated to continue to remain low through 2019. The use of hot stones, lava shell, cupping and aromatherapy continue to grow as massage techniques. Advancements in massage techniques have been made with new blends of massage therapy that are developed to better suit the needs of clients and personalize health-based solutions. Glengary massage center has innovated the blend of stimulation and heat with massage therapy, a practice they named Medssage. Competitive environmental forces of the massage service industry include per capita disposable income, number of adult’s aged 20 to 64, national unemployment rate and urban
  • 9. 9 population. Increasing health awareness across the nation with medical evidence of the dangers of stress and a focus on healthy living are providing positive impact on massage centers, creating curious customers as well as repeat clients seeking to improve their longevity of life. As the economy continues in a positive direction with falling unemployment rates and rising per capita disposable income consumers begin to pay more attention to their health and the demand for massage therapy increases. Focused in Florida, Sarasota contains an urban population with a median resident’s age of 44.5 years, a majority between the years of 20-65 years, among an estimated per capita income of $30,152.00. Currently the national unemployment rate is 5.4% versus Sarasota’s unemployment rate of 5.6%. The massage service industry should toughly analyze the provided competitive environmental forces key factors in order to pursue a competitive advantage. These forces provide the most impact on how successfully the massage service industry operates yearly. Porter’s five forces model assisted to clearly identify and elaborate on the massage service industry’s competitive environment described above. Using this model I will be able to identify key aspects of each force that impact the firm and evaluate how important the aspect is to the firm in order to focus on future strategies with consistent implementation.
  • 10. 10 In order to get a better understanding of the positioning of Glengary Massage Center in the massage service business in Sarasota, FL, I have created a competitive profile matrix. The competitive profile matrix compares both internal and external factors of the massage service businesses, as well as clarifies the competitive advantage each business has over the competitors. The competitors I chose to analyze, Massage Envy and Massage Experience Siesta Key, are based on geographic location (distance from Glengary Massage Center) and similarity. Competitive Profile Matrix Glengary Massage Center Massage Experience Siesta Key Massage Envy Critical Success Factors Weight Rating Score Rating Score Rating Score Promotion .08 1 .08 1 .08 3 .32 Product/Service Quality .18 4 .72 3 .54 2 .36 Customer Service .13 4 .52 4 .52 2 .26 Business Location .05 1 .05 1 .05 3 .15 Customer Retention .10 3 .30 2 .20 3 .30 Price Competitiveness .05 2 .10 2 .10 4 .20 Customer Reviews .09 4 .36 3 .27 1 .09 Product Differentiation .11 4 .44 2 .22 2 .22 Atmosphere .06 3 .18 1 .06 2 .12 Employee Dedication .15 3 .45 4 .60 2 .30 Total 1 3.92 2.58 2.40 PowerofSuppliers Suppliers of Massage Oil = Low Suppliers of Massage Tables = Low PowerofConsumers Per Capita Disposable Income = Medium # of Adults ages 20-65 = Medium Importance of Service = Medium Entry of Competitors Barriers to entry = Low Industry growth rate = Low Regulation = Low Entry of Substitute Products Price of Substitutes = Comparable Technological Advancements = Low Rivalry Among Existing Firms Competition = High Product Differentiation = Low
  • 11. 11 Although the competitive profile matrix shows that Glengary Massage Center is the leader with a greater overall score when compared against competitors, is always room for improvement by focusing on the individual key critical success factors that Glengary fell short in. Massage experience Siesta Key has similar ratings in factors such as promotion, location, customer service and price competitiveness. Massage Envy can take advantage of promotion over the other 2 businesses because being a franchise; more money can be spent on advertising and promotions. Using the competitive profile matrix, we can identify that Glengary Massage Center should focus on improving promotion, capitalizing on the medssage technique and the product “2 minutes to perfect posture (2M2)”. After creating an understanding of the local competition, an analysis of existing external opportunities and threats within the current environment is assessed. An External Factor Evaluation (EFE) matrix summarizes and evaluates information about the current environment within an industry. Determining the external factors that impact the massage business will aid in the focus on future strategies as well as maintaining consistency when implementing new strategies. Using Glengarry’s current strategy, and External Factor Evaluation was created to understand the how effective the strategy has been thus far. External Factor Evaluation Matrix Glengary Massage Center Opportunities Weight Rating Weighted Score 1. Good reputation .06 4 .24 2. Massage License .07 3 .21 3. Loyal customer base .07 3 .21 4. Continued education workshops .03 1 .03 5. Community median age is 44.5 in Sarasota– Target Market .04 2 .08 6. Retain more client testimonials / feedback .02 3 .06 7. Networking through community .05 1 .05 8. Promote brand/product/services through demonstrations at events .06 1 .06
  • 12. 12 9. Increased in per capita disposable income .05 2 .10 10. Health awareness on the rise .05 2 .10 Threats Weight Rating Weighted Score 1. Alternatives (Acupuncture, Physical Therapy, ActiveIsolated Stretching) .07 2 .14 2. Therapeutic massage therapy competitors .05 2 .10 3. Economic Instability .05 2 .10 4. Seasonality .04 2 .08 5. Negative word of mouth .07 3 .21 6. Lack of advertising / No hired marketer .07 3 .21 7. Low barriers to entry .03 1 .03 8. Coupons provided by competitors .03 2 .06 9. Fluctuation of clients – Feel better, not as many massages .04 3 .12 10. New products for better posture .05 2 .10 Total 1 2.29 Even though Glengary scored an above average score of 2.29, there is room for external improvement. After preforming the External Factor Evaluation, the opportunities open for Glengary to take advantage of include: 1) Loyal Customer Base 2) Community median age is 44.5 in Sarasota– Target Market 3) Promote brand/product/services through demonstrations at events Glengary’s biggest threats to reduce include: 1) Lack of Advertising / No Hired Marketer 2) Alternatives Therapies (Acupuncture, Physical Therapy, Active Isolated Stretching) 3) Negative Word of Mouth For a company to analyze their current internal strengths and weaknesses, an Internal Factor Evaluation (IFE) is created. This is a strategy formulation tool that focuses on the functional levels of the business to view clearly what is working within the business and what needs improvement.
  • 13. 13 Internal Factor Evaluation Matrix Glengary Massage Center Strengths Weight Rating Weighted Score 1. Detailed office administration .05 3 .15 2. Competent professional employees .07 2 .14 3. Knowledge of variety of massage techniques .07 2 .14 4. Personalselling .03 1 .03 5. PersonalTrainer on site .04 2 .08 6. Innovative massage techniques (Differentiation) .02 4 .08 7. Friendly, relaxing, accommodating atmosphere .05 3 .15 8. Employees continue education .05 2 .10 9. Ambition to produce products / services for better posture .05 2 .10 10. Aspiration to educate the public .07 2 .14 Weaknesses Weight Rating Weighted Score 1. Limited marketing / advertising .06 3 .18 2. Limited time / resources .05 3 .15 3. Upkeep with maintenance in business building .05 2 .10 4. Only 3 therapists .04 2 .08 5. No business computer .03 1 .03 6. Location .06 2 .12 7. Lack of demonstrations for differentiated products/services .05 3 .15 8. Lack of social media interaction .06 3 .18 9. Not open on weekends .05 3 .15 10. Does not take insurance .05 3 .15 Total 1 2.40 Glengary Massage Center scored an above average score of 2.40. Even though a high score was obtained, there is always room for internal improvement. Glengary Massage Center’s greatest strengths include: 1) Friendly, Relaxing, Accommodating atmosphere 2) Innovative Massage Techniques (Differentiation) 3) Competent, Professional Employees Glengary Massage Center’s greatest weaknesses include: 1) Limited Marketing / Advertising 2) Not Open on Weekends 3) Lack of Demonstrations for different products / services
  • 14. 14 SWOT Analysis / Assessment of Alternatives A SWOT (Strengths – Weaknesses – Opportunities – Threats) analysis is a tool used to match internal and external factors of an established business. This aids in creating 4 strategies: SO (strengths – opportunities) strategies, WO (weakness – opportunities) strategies, ST (strengths – threats) strategies and WT (weakness – threats) strategies. Glengary Massage Center has been in business for nearly 25 years and continues to be set in their established practices. Therefore this is a proactive step to take in matching key factors to determine what continues to provide success for the business, what doesn’t provide success for the business and what new success strategies can be implemented moving forward. The following is a SWOT (Strengths-Weakness-Opportunities-Threats) Matrix for Glengary Massage Center: STRENGHTS 1. Detailed office administration 2. Competent professional employees 3. Knowledge of variety of massage techniques 4. Personalselling 5. Personaltrainer on site 6. Innovative massage techniques / Products (Medssage/2M2) 7. Friendly, relaxing accommodating atmosphere 8. Employees continue education 9. Ambition to produce products for better posture 10. Aspiration to teach Medssage technique WEAKNESSES 1. Limited marketing / advertising 2. Limited time / resources 3. Upkeep with maintenance in business building 4. Only 3 therapists 5. No business computer 6. Location 7. Lack of demonstration for differentiated products / services 8. Lack of social media interaction 9. Not open on weekends 10. Does not take insurance OPPORTUNITITES 1. Good reputation 2. Massage License 3. Loyal customer base 4. Continued education workshops 5. Community median age is 44.5 – Target Market 6. Retain more client testimonials / feedback 7. Networking through community 8. Promote brand/product/services through THREATS 1. Alternatives (Acupuncture, Physical Therapy, Active Isolated Stretching) 2. Therapeutic massage therapy competitors 3. Economic Instability 4. Seasonality 5. Negative word of mouth advertising 6. Lack of advertising / No hired marketer 7. Low barriers to entry 8. Coupons provided by competitors
  • 15. 15 demonstrations at events 9. Increased in per capita disposable income 10. Health awareness on the rise 9. Fluctuation of clients – Feel better, not as many massages 10. New products for better posture The highlighted key factors within the SWOT matrix determines areas of the current business strategy that could be enhanced to create new strategies. The four areas are cross- referenced to provide four strategies: SO (strengths – opportunities) strategies, WO (weakness – opportunities) strategies, ST (strengths – threats) strategies and WT (weakness – threats) strategies. This will support my proposed changes in the next section: Recommendations. SO (Strengths – Opportunities) Strategies 1) Using their co-created Medssage technique as well as Ed’s product, the “2M2”, therapist at Glengary could promote both product and service by demonstrations/seminars at events containing their target market (community median age 44.5). 2) Friendly staff along with competent and professional therapist is a key to customer loyalty. WO (Weakness – Opportunities) Strategies 1) Purchase a computer strictly for the business to increase social media interaction with loyal customer base 2) Open on the weekends to provide flexibility for the target market working class in the community 3) Search businesses or events in the community to promote brand/product/services through demonstrations at events ST (Strengths – Threats) Strategies 1) Providing competent, professional therapists in a friendly and relaxing atmosphere with product innovations to help clients provides competitive advantage over alternatives 2) Providing competent, professional therapists in a friendly and relaxing atmosphere with product innovations decrease negative word of mouth; increase marketing WT (Weakness – Threats) Strategies 1) Increase marketing buy purchasing a business computer to ward off competition in alternative areas 2) Increase social media interaction to diminish any negative word of mouth 3) Provide a competitive advantage by opening up on the weekends (Saturday)
  • 16. 16 Recommendations and Implementations Evaluating the SWOT analysis and determining the key factors that can be enhanced to continue the successful growth of Glengary Massage Center, I have developed two recommendations as well as developed strategies for implementation. I focused my recommendations on the problems identifiable with promotions based on the internal audit as well we Ed’s goals for 2015. To recall, Ed’s goals for Glengary Massage Center in the year 2015 include: 1. Educate the public on the benefits of massages geared towards trauma, inflammatory responses, and pre/post surgical procedures using the formulated medssage technique. 2. Promote newly developed product “2 Minutes to Perfect Posture (2M2)”. Long-term objectives to reach the above goals include: 1. Create a media Champaign via social network, you tube and website to provide webinars on medssage technique as well as the product “2 Minutes 2 Perfect Posture”. 2. Adopt and train a certified massage therapist interested in the message technique. Recommendation #1: Purchase a Computer for the Business Currently Glengary Massage Center does not have an in office computer for the business as a whole. I believe that obtaining a computer will assist in being proactive with social media. Also it can provide a customer database. Implementation #1: Purchase a Computer for the Business Buy a computer that best fits the companies social media and customer database needs as soon as budget allows.
  • 17. 17 Recommendation #2: Rent out 4th room to certified massage therapist Obtaining another massage therapist, molding them with the medssage technique to fit the company’s model, this will relieve Ed of excess massage session so he can be the face of Glengary Massage Center in the community. This will provide Ed the chance to educate the public on the co-created medssage therapy as well as promote his product creation “2 minutes to perfect posture” (2M2). Implementation #2: Rent out 4th room to certified massage therapist Time needs to be allocated to find a certified, trustworthy massage therapist interested in specialized techniques. Background check, drug screening and fingering prints will be conducted to ensure quality applicants. Procedures include:  Referrals  Scouting massage therapy schools  Linked In Quantitative Strategic Planning Matrix Purchase a business compute Rent out 4th room to certified massage therapist Opportunities Weight AS TAS AS TAS 1. Good reputation .06 3 .18 1 .06 2. Massage License .07 1 .07 4 .28 3. Loyal customer base .07 3 .21 2 .14 4. Continued education workshops .03 1 .03 4 .12 5. Community median age is 44.5 in Sarasota– Target Market .04 3 .12 1 .04 6. Retain more client testimonials / feedback .02 4 .08 2 .04
  • 18. 18 7. Networking through community .05 4 .20 1 .05 8. Promote brand/product/services through demonstrations at events .06 3 .18 3 .18 9. Increased in per capita disposable income .05 1 .05 2 .10 10. Health awareness on the rise .05 2 .10 1 .05 Threats Weight AS TAS AS TAS 1. Alternatives (Acupuncture, Physical Therapy, ActiveIsolated Stretching) .07 2 .14 1 .07 2. Therapeutic massage therapy competitors .05 1 .05 1 .05 3. Economic Instability .05 1 .05 1 .05 4. Seasonality .04 3 .12 1 .04 5. Negative word of mouth .07 3 .21 2 .14 6. Lack of advertising / No hired marketer .07 4 .28 1 .07 7. Low barriers to entry .03 1 .03 2 .06 8. Coupons provided by competitors .03 1 .03 1 .03 9. Fluctuation of clients – Feel better, not as many massages .04 3 .12 1 .04 10. New products for better posture .05 3 .15 2 .10 Totals 3.29 1.71 Strengths 1. Detailed office administration .05 4 .20 1 .05 2. Competent professional employees .07 1 .07 1 .07 3. Knowledge of variety of massage techniques .07 2 .14 4 .28 4. Personalselling .03 4 .12 2 .05 5. PersonalTrainer on site .04 1 .04 1 .04 6. Innovative massage techniques (Differentiation) .02 3 .06 3 .06 7. Friendly, relaxing, accommodating atmosphere .05 1 .05 1 .05 8. Employees continue education .05 2 .10 4 .20 9. Ambition to produce products / services for better posture .05 2 .10 1 .05 10. Aspiration to educate the public .07 4 .28 3 .21 Weaknesses 1. Limited marketing / advertising .06 4 .24 4 .24 2. Limited time / resources .05 4 .20 4 .20 3. Upkeep with maintenance in business building .05 1 .05 3 .15 4. Only 3 therapists .04 2 .08 4 .12 5. No business computer .03 4 .12 1 .03 6. Location .06 2 .12 1 .06 7. Lack of demonstrations for differentiated products/services .05 4 .20 4 .20 8. Lack of social media interaction .06 4 .24 2 .12 9. Not open on weekends .05 3 .15 4 .20 10. Does not take insurance .05 1 .05 1 .05 Total 1 2.61 2.88
  • 19. 19 Evaluation 1. Glengary Massage Center can measure the successfulness of the purchase of a computer by the productivity of media campaigns via social network, you tube and website to provide webinars on medssage technique as well as the product “2 Minutes 2 Perfect Posture”. This can be measured by keeping count on views, responses and “likes” per day/week. 2. Renting out the 4th room can be measured by revenue increase from the profitability solely from rent payments. Also, since this will give Ed the opportunity to be active in the community customer retention is another way to measure success. Quantitative Analysis Although I was not able to receive the financial statements for Glengary Massage Center, I have gathered some data to make estimated guesses with the overall profit of the business. Ed Weinstein owns the building Glengary Massage Center operates out of. Two out of the three therapists pay rent of $500.00 each month and the personal trainer on site pays $1000.00 rent per month totaling $24,000.00 per year profit for Glengary Massage Center business alone. Of this profit, an estimate of $3,000.00 could be used to purchase a business computer where social media interaction can be implemented. Renting out the 4th room in the facility could potentially be beneficial for Glengary Massage Center as well as Ed himself. This would provide more income for the business. Another benefit of renting out the 4th room would be the reduction in Ed’s massages providing him opportunity to promote brand/product/services through demonstrations at events and related businesses within the Sarasota community.
  • 20. 20 Executive Summary Using the concepts learned throughout this semester in Strategic management decision-making, I have created the preceding strategic business plan on the local business Glengary Massage Center. Explained are current strategies used, massage industry analysis, and what forces and challenges, both internally and externally, affect Glengary Massage Center. Provided in this plan are the five matrices: EFE, CPM, IFE, SWOT, and the QSPM, that have lead me to choose the recommendations that will assist the local business resolve promotion issues with the limited time and resources provided. Using the promotions recommendations I have provided ways to implement and evaluate the processes.
  • 21. 21 Works Cited "Massage Services." IBISWorld. IBISWorld. Web. 21 Mar. 2015. <http://clients1.ibisworld.com.ezproxy.lib.usf.edu/reports/us/industry/default.aspx?entid=6028>. "Licensed Massage Therapist (LMT) by Examination." FL Board of Massage Therapy Licensed Massage Therapist LMT by Examination Comments. Web. 6 Apr. 2015. "Sarasota, Florida." (FL 34236, 34242) Profile: Population, Maps, Real Estate, Averages, Homes, Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime, Moving, Houses, News, Sex Offenders. Web. 6 Apr. 2015 David, Fred, and Forest David. Strategic Management Concepts and Cases: A Competitive Advantage Approach. Upper Saddle River, New Jersey: Pearson, 2013. Print.