CONVENE: GETTING READY FOR GROWTH

Written Analysis of the Case

CONVENE: GETTING READY FOR GROWTH

I. SUMMARY OF THE CASE

Convene is the fastest growing network of meeting, event and conference venues,
integrating technology, hospitality, culinary and human-entered design to create a
transformative user experience. Convene company are both founded by Chris Kelly and
Ryan Simonetti in 2009 with corporate motto of “Convene: The place to easily host a
better meeting”. Convene was a company that cared about the local meeting attendee,
infused with hospitality and more genuinely concerned with the needs of customers. In
anticipation for rapid growth and achieving tremendous opportunity, Convene is
challenged on the part for growth capital needed and if their business model will work
outside their comfort zone.

II. STATEMENT OF THE PROBLEM

What strategic approach should Convene Inc. do in respond to the rapid growth of
industry with their limited resources/capital?

III. OBJECTIVES
 To realized the company’s growth strategy
 To determined projects that will add value both financially and strategically.
 To have an improved business model
 To be a recognizable brand

IV. AREAS FOR CONSIDERATION

A. SWOT Matrix
HELPFUL HARMFUL
Strengths Weaknesses
 Competent Staff/Personnel  Capital Intensive Business
INTERNAL

 Strong Core Values  Localized Business Model

 Differentiated Products and Services  Real Estate Cost
 Integrated “workplace-as-a-service”  Limited Locations
platform
Opportunities Threats
 Emerging Market  Competitors
EXTERNAL

 Investors from other places  Economic Condition

 Wide market scope in other places  Government rules and regulations
 Implication of increasing taxes
CONVENE: GETTING READY FOR GROWTH
Written Analysis of the Case

B. Analysis of the SWOT

STRENGTHS
1. Competent Staff/Personnel- Simply refers to having the right people in the right
seats.
2. Strong Core Values- refers to defining accepted fundamental principles or standards
that bond and motivate the organization
3. Differentiated Products and Services- refers to providing superior, innovative, and
differentiated products and services.
4. Integrated “workplace-as-a-service” platform- gives building tenants and
enterprise clients access to a growing network of premium meeting and event
spaces, flexible workspaces, hospitality services, and curated experiences for
users.
WEAKNESSES
1. Capital Intensive business- refers a high cost of investment to be able to cater
and extend services to prospective clients of high profile in nature.
2. Localized business model- they have limited markets with in the area
considering the high expenses used in the operation to cover up their
obligation to pay`
3. Real estate cost – inclining cost for the company to sustain the financing for
the certain rented properties
4. Limited locations- refers to Convene turning down of meeting requests up to
55% because of unavailability of its three spaces
OPPORTUNITIES
1. Emerging Market – can help the company branding and develop more
potential strategies in the market place
2. Investors from other places – potential investors to invest in their company
for additional capital for them to expand in other places
3. Wide market scope in other places – the large number of population and
establishment in the other places
THREATS
1. Competitors – they might be encounter direct and indirect competition in the
market with the growing demand of the establishment
2. Economic Condition – No stable economic condition and every time changing
based on the governance management
3. Government rules and regulations – there are certain rules not applicable for
them that might be adjustment for the entity to operates
4. Implication of increasing taxes – the government running for taxes in the
entity that would make losses for the entity.
CONVENE: GETTING READY FOR GROWTH
Written Analysis of the Case

V. ALTERNATIVE COURSES OF ACTION

1. Convene Inc. should strategize diversification on new market through execution of
expansion plan that focus on entering partnership agreement with reputable and
largest landlords in commercial real estate.

PROS:
 Great way to leverage existing resources.
 Be able to subsidize capital expenditures to partners.
 Give an impression of greater financial viability
 Access to new potential customers and partners
CONS:
 Loss of control - as the business grows, you may need to delegate management
duties or divide the workloads between different locations.
 Cultural Risk- potential for struggle due to cultural difference.
 Partners’ tendency to act outside the stipulated agreements.

2. Develop a less intensive business model responding to….

PROS:

CONS:


VI. RECOMMENDATION

We recommend the ACA1 that the Convene, Inc. should needs to ensure that its business
model can deliver long-term profitability and stability that will respond to the rapid
growth of industry taking into consideration their limited resources; thus it is to strategize
diversification on new market through execution of expansion plan that focus on entering
partnership agreement with reputable and largest landlords in commercial real estate.
This strategic approach will realize the company’s growth strategy and determine projects
that will add value both financially and strategically that will eventually improve their
business model and establish a recognizable brand.

VII. ACTION PLAN

CONVENE: GETTING READY FOR GROWTH
Written Analysis of the Case

ACTIVITY PERSON/ DEPARTMENT TIMEFRAME

INVOLVE
Meeting with the prospective Both principals, finance 1 week and continuing
partner: head, legal head
 Drafting and or
presentation of
partnership agreements
 Signing
1 day
Research and Development Principals and Top Continuing
team deployment & feed management
backing
 Crafting of new business Principals, R&D Team Head, 1 month, continuing
model Marketing Head
 Adaptation and or
implementation of
improved business
model

VIII. POTENTIAL PROBLEMS ARISING

Implementing strategic plan poses several threats and potential for failure especially
when there is a partial commitment on the part of the management and the new partner. Every
decision made is to ensure the right individuals are in the right leaderships to implement the
plans. Additionally, the markets vary from what and where the plans are based and projected,
hence Convene’s plan must be nimble and able to adapt to these changes. Lastly, slow but steady
result of a well-executed strategic plan may initially discourage partners and lose their interest
and reliability in the company.