FoBo Inc.

Proposal For Creation Of Execution

Roadmap For Shoring Up Profits
July 31, 2016

Agenda
Project Understanding

Approach & Methodology

Data Requirement

Project Deliverables

Project Timelines

Resource Requirement and Costs

Project Understanding

The table below summarises the situation of the client YoY from 2010 to 2015.

The major problem FoBo Inc. is facing is declining profits in spite of exceptional revenue figures and
this is what the company expects the firm to analyse and improve upon.

Responsibility in this project would be to identify the key profit drivers of the company and on the basis
of it, chalk out a roadmap to improve the profitability of the company.

Some of the key reasons for decline in profitability and/or profitability drivers could be:

The revenue per merchant has declined as is evident from the above given table.
Inefficient service model, FoBo Inc. currently follows Hub and Spoke service model.
Shift in consumer product preferences.
Higher input costs leading to low margins, thus eroding profits.

Based on the aforementioned understanding of the project, we will collect requisite information, analyse
data and create a roadmap to improve the profitability of FoBo Inc.

Approach & Methodology

1. Initial Planning

Review objectives,

scope and approach

2. Information
Collection
Gain understanding of

the key processes.

Discuss potential issues Understand FoBo Inc.'s

from confidentiality
perspective of FoBo Inc.

3. Information
Analysis
Analyze the information

collected to identify the

important profit drivers for
FoBo Inc.

4. Communicate
Results
Present and discuss

the initial draft reports

of the analysis to
FoBo Inc.

business model, key

Assess the impact of
Obtain initial customer
financial data and
contractual relations with each driver on FoBo Inc.s
feedback based on
Identify key stakeholders
its merchants.
current financial and
the preliminary
both within the
market position and
observations.
Collect information
organisation (e.g. key
relating them to
Provide finalized
personnel in Operations,
regarding FoBo Inc.'s
companys profitability
etc.) as well as outside
Hub and Spoke service
reports to the
and market performance.
(e.g. Merchants etc.)
model.
customer based on
Identify key improvement
the feedback provided.
Agree on a
Asses consumer
areas which will improve
Discuss in detail the
communications
preferences in food and
performance of FoBo Inc.
execution roadmap
framework (e.g., weekly
beverage segment and
and provide any
meetings) and other
for FoBo Inc.'s products Create a roadmap for
assistance required to
administration related
in particular.
improving the FoBo Inc.s
execute the
issues (e.g. escalation)
in the aforementioned
recommendations.
improvement areas.

Data Requirement

Service Network Details:

Spread of the hub and spoke network, along with distance between each spoke to the hub with
distinction between the spokes added post and pre 2010 and the associated transportation costs.

Service Cost Details:

Details of various factors which make up for the cost of providing service to the merchants, e.g.
costs of refrigerators as well as the spares inventory holding costs. Also, breakup of cost progression
over the years from 2010 to 2015.

Product Mix Details:

Details about all the products FoBo Inc. has to offer, with details regarding pricing, promotion,
distribution and retailing, and targeted segments.

Contractual Relations:
Details of terms and conditions of contractual relationship between the company and the merchants.
e.g. Who is responsible for products that are damaged as a result of refrigerator breakdowns? What
is the extent of responsibility?

Financial Data:
Company and industry financial reports (Income Statements and Balance Sheets) from 2008 to
2015).

Market Data:
Customer market share growth reports, product pricing strategy details and financial reports
pertaining to each product that is covered under this network.

Project Deliverables
Agreed communication framework and escalation mechanisms
List of key stakeholders within and outside the organization
Project schedule

Analysis of Hub and Spoke Service model

Initial Planning
Analysis of important financial parameters

including network size and associated costs.

Key

Comparison of these

measurements

include efficiency and

effectiveness of system.

Service Model
Analysis

Focus

value
on

drivers.
emerging

Financial Analysis

parameters

with

industry standards.

Key
Deliverables

Analysis of consumer
food

of FoBo Inc.

Analysis of key profit

Consumer
Preference

Profit Drivers

drivers affecting FoBo

Inc.s business.

trends in recent years.

Comparison of consumer preferences with
product mix offered by FoBo Inc.

Summarizing areas of improvement to

Future Roadmap

increase profitability.

Roadmap for FoBo Inc. to improve upon the key improvement

areas identified to boost profitability.
List various pitfalls and alternate strategies.

FOBO
Involvement

Phases

Timeline

Project Timelines
Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

July 21

July 28

Aug 04

Aug 11

Aug 18

Aug 21

Registration

Phase 1
submission

Phase 2
submission

July 21,
2016

July 31,
2016

August 21,
2016

Team
formation and
registration

Submission of
Request for
Proposal

Data
Collection

Providing
additional
information for
phase 2 analysis

Data Analysis and

creation of
execution
roadmap

Conversation with FOBO

Senior Management for
further details

Time commitment of one hour

from client

Final
Submission

Resource Requirement and Costs

Responsible for engagement planning and for
providing overall direction to the project
Responsible for allocating project areas to
appropriate resources based on expertise
Allocated as the clients single point of contact
Responsible for final review of the project
deliverables prior to submission to the client
Responsible for analyzing various costs incurred
by FOBO, and methods for reduction of the same
Responsible for developing the key drivers of
profitability
Monitoring time and effort spent on the project,
and for periodic review of the same
Executive review of the deliverables
Responsible for developing the key reasons for
decline in profitability at FOBO
Responsible for conducting market research
activities and gathering relevant data
Responsible for knowledge sharing of the F&B
industry with the team members

Strategy

Team Members

Responsibiliti
es