Haley Putnam Jack Rexroth

Joel Hutzler-Perowsky Jules Scharapan

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Table of Contents

I. Executive Summary……………………………………….………………………………2 II. Introduction…………………………………………………………………..……………5

III. Overview of the Data Used in Analysis…………………………………………….……10 IV. Physical Location & Financing Plan……………………………………………………..12

A. Summary of Location Analysis …………………………………………………15 V. Product Plan……………………………………………………...………………………17

VI. E-commerce Plan…………………………………………………...……………………23 A. Retail/E Commerce CPC Graph ………………………………………………...25 B. Website Mock-ups……………………………………………………………….26 C. Mobile Version Mock-ups……………………………………………………….29

VII. Retail Service Demand Forecast…………………………………………………………31 VIII. Capital Equipment Plan & Planned Floored Layout ………………….…………………39

IX. Supply Chain & Inventory Management Strategy…………………….…………………45 X. Human Resources Staffing Plan & Cost Analysis…………………….…………………55

A. Maximize Company Hierarchy…………………………………………………..60 B. Cost Analysis Charts……………………………………………………………..62

XI. Non-Human Resources Plan……………………………………………..………………68 A. Summary of Costs………………………………………………………………..72

XII. Revenue Analysis……………………………………………………………………...…72 A. Three-Year Forecast……………………………………………………………...73

XIII. Financial Analysis………………………………………………………………..………75 A. Income Statement……………………………………………………………...…78 B. Balance Sheet…………………………………………………………………….78

XIV. Process Maps……………………………………………………………………….……80 XV. Corporate Social Responsibility …………………...……………………………………84

XVI. Retail Space Plan………………………………………………...………………………86 XVII. Marketing and Promotion Plan ……………………………………………………….…87

XVIII. Employee Handbook/HR Manual……………………………..…………………………93 XIX. Sample Investment Contract……………………………………………………………105 XX. Final Summary………………………………………………….………………………108

XXI. References ……………………………………………………...………………………114

   

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I. Executive Summary

Company

Maximize Peak Performance Sportswear is a start-up retail establishment that will

provide high quality, athletic apparel and accessories to men and women alike. Maximize will be

located on Newbury Street in downtown Boston, Massachusetts, a popular and thriving retail-

shopping area and tourist destination. Our initial goal is to open one physical retail location in

conjunction with a fully functional and user-friendly online shopping experience through our

company’s website. Through these selling tactics we aim to penetrate a sizeable portion of the

market while building and maintaining a highly equitable brand name.

Products and Services

Maximize’s products range from more relaxed loungewear and casual apparel to highly

technical sport specific garments and accessories such as cycling jerseys and a variety of yoga-

specific accessories. This level of diversity within our product offering provides us with the

opportunity to satisfy the needs of various demographics within our target market.

From a macro perspective, the athletic clothing and fashion industry tends to be generally

focused on the female demographic, leaving a number of male customers with unmet needs.

Maximize intends on addressing this issue by offering a number of comprehensive product lines

specifically for men, allowing us to effectively penetrate this portion of our target market.

In addition to our comprehensive product offering, Maximize will provide our customers

with unique service offerings such as free shipping when a product is out of stock in our retail

location, purchasing advice and consultation as well as community oriented events such as in-

store fitness classes, workshops and other various community engagement events.

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Market Analysis

Prior to finalizing our decision to move forward with creating an athletic apparel store as

our retail business we conducted significant market analysis in order to ensure that our

opportunities for both growth and financial success were viable. Upon conducting said research

we were able to gather that for the clothing store industry as a whole, total industry revenue

equals $9.99 billion annually, with an average industry profit of $3.8 billion annually. According

to various industry analysis reports the primary external driver for businesses within the industry

is customers’ per capita disposable income, and because we are located in a reasonably affluent

area of Boston, we anticipate achieving notable financial success by the end of our second/third

year.

In addition to overall industry revenue and low barriers to entry for new competitors,

industry growth was a critical factor in our decision to move forward as an athletic clothing retail

business. Over the past five years from 2009-2014, industry growth has averaged 2.3%, with

2.2% growth recorded this past year in 2014. This consistent and stable industry growth allowed

us to be confident in both our business and industry as a whole, and we plan on taking full

advantage of the clothing store industry’s growth and success.

Objectives

· Establish and unique and recognizable retail clothing business in Boston, Massachusetts

· Provide high quality athletic clothing, accessories and customer service to all reaches of our

target market while maintaining competitive pricing

· Achieve %% of market share within the city for athletic apparel

· Become an active and contributory member of the community and to maintain this status

through various methods of community engagement

   

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· Achieve a profit of $200,000 or more within the 3rd year

· Continually increase our customer base per year while still maintaining strong relationships

and brand perception with veteran customers

Strategy and Implementation

As a retail clothing company Maximize recognizes the important role of marketing within

our greater business plan, and we plan to market our products and brand with an aggressive and

ambitious marketing campaign. Our marketing campaign will include: unique brand design,

frequent sponsored events, strong e-commerce and social media presence as well as constant and

positive community involvement. Our goal is to maintain our marketing budget between 15 and

20% of our total annual revenue and will be achieved through routine marketing departmental

meetings and analyses in order to sustain economical marketing costs.

Financial Plan

As a firm, Maximize will generate revenue through the sale of our products both in-store

and online. Maximize’s first year income statement indicates a profit margin of %, with an

estimated net income of $152.57 annually after taxes. We anticipate substantial increase in total

sales within our first three years, forecasting our annual profits to reach $269,689.68 within the

third year.

A key component to the overall financial success and stability of our company is

obtaining and securing ample cash flow. In order to guarantee this, Maximize will continually

monitor and analyze sales and expenses, which will allow for accurate forecasting of on-hand

cash requirements.

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Sources and Use of Funds

In order launch successfully, Maximize requires an initial startup fund of $280,000. To

date we have been able to account $80,000 through personal investments, as well as a small

business loan of $200,000.

Start-up funding will be used for initial capital equipment procurement, necessary

renovations, inventory and standard operating expenses such as rent, utility and employee

compensation. These initial purchases are not only necessary for the introductory success of the

company, but also for our future success.

II. Introduction

About the Project

Our brand name, Maximize, Peak Performance Athletic Apparel, was chosen because it

directly relates to enhancing the potential of a human being. We usher fitness wear to the next

level. Maximize is focused on bringing quality, style, and flexibility to the customers. Everyday,

young adults are wearing fitness gear for casual, gym, or extreme sports experiences and we will

cater to all these situations. Not only will Maximize carry clothing, but also wearable technology

for those looking to maximize their fitness experience.

Fitness apparel is heavily influencing America’s culture. Many young college women

live in sports clothing like yoga pants, sports bras, fitted shirts, and running shoes. We also see a

market opening up for men in the fitness apparel industry because of the lack representation in

major fitness and fashion apparel stores like Lululemon, Athleta, and Lorna Jane. Maximize’s

fitness apparel for both men and women will be similar to each other in style, but customizable

to the individual. As consumers in the marketplace, we observed that when men go shopping

with women, and walk into a fashionable fitness store like Lululemon, they have a very limited

   

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selection, while their counterpart’s product line is showcased everywhere in the store. We plan to

capitalize on this underrepresentation.

This is a huge opportunity within the domestic marketplace. Women’s clothing brings in

average sales of $110.83 million in the U.S. Apparel Market every year (Topic: Apparel Market

in the U.S.). If we have the funding and support from investors, we will be able to expand our

target market, our products, and our services. As of now, there are only a handful of fitness

apparel like ours in the making. Although major retail stores such as Zara, H&M, and Victoria

Secret are now carrying some fashionable sports apparel, they do not create value for the athlete

like Maximize.

Chosen Approach to the Mar

a. Target market:

Maximize is focused on affluent

family members and individuals, trend-

setting urban dwellers, and college

students. These individuals are between

20 to 44 year old women and men in the

United States who engage in activities

such as yoga, running, cycling, or lifting as their fitness leisures (Demographics Statistics, Sex

and Age). In addition, we will also be expanding the target market to anyone domestically by the

use of Maximize’s website and through social media sites, including Facebook, Instagram and

Twitter.

After further examination, Maximize came up with three major target segments within

the U.S. that the company will market to. The three major target segments, based on

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demographics and behaviors (psychographics), are the Young Digerati, the Up-and-Comers, and

the New Homesteaders. Each of these particular segments include the targeted age range from

20/25 to 40 years old. On the chart below, we concluded that these are our primary

target markets for Maximize (Segment Explorer).

b. General overview of products and services provided:

The products that we provide for our customers encompass

narrow and deep. Understanding what our customers want is

important to us. We specialize in fitness wear from the busy soccer

moms to the dedicated sports enthusiasts. Our products will be

tailored mainly for yoga, running, and cycling. Our clothing is

specialized specifically for the individual. For most of the

products, there will be an assortment of colors and designs to

choose from. In the future, Maximize will start to tailor clothing

once we incorporate more wearable technology. As of now, we are

including Fitbit in our product selection. Some of our clothing in

the future will be incorporating wearable technology such as Fitbit,

iPods, iPhones, and other technological devices alike.

   

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Maximize will be hosting training days with instructors from and information sessions

about our products and their worth, building trust in the company and products, thus reducing

cognitive dissonance. A rewards program will be available for those customers who express

customer loyalty. They will be allowed to choose which benefits suit them best, allowing for

them to maximize their potential within our brand. In addition, if it is a customer’s first time in

the brick and mortar store, Maximize will offer a free shipping coupon. Maximize will be giving

discounts to college students who present their college identifications.

Maximize will have a fully functional website with clear visual images of our products,

services, and events. Information will be updated daily about the store’s incoming products and

services, therefore allowing the customer to see products and services traveling to the store ahead

of time. Communication is a key factor when it comes to our products and services. Facebook,

Twitter, Instagram, and GPS technology will help us express flash sales to the customer as well

as spread the word about upcoming events, training days, special rewards, and new products

from Maximize.

c. Why this market and products:

Our target market includes mainly the millennials who cross shop and have completely

unplanned or partially unplanned impulse purchases. This is a very transitional market. We will

have new and repeat customers on our retail location. It caters to the locals as well as to the

tourists within any area. In the U.S., clothing sales are $182.85 billion. The size of the U.S.

apparel market is $225 billion, making it a prime business to enter into (Topic: Apparel Market

in the U.S.). Foot traffic will not cease because of the emphasis in stylish, comfortable sports

clothing. It’s hip, young, healthy, and fit. In addition, we see the opportunity to emphasize fitness

apparel for not just women, but also men. Currently, many fitness stores such as Lululemon,

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Athleta, and Lucy don’t carry as many men’s clothes as women’s. Fitness clothing is being used

widely around the nation and it’s now an essential part of the younger generation’s attire.

Apparel already takes up a large portion of the U.S. retail market so entering into it promises

sales. Fitness apparel specifically has been taking over the clothing industry because of the major

uses that it has: comfort, flexibility, and durability. We think that carrying the services stated in

the above section will bring sales and traffic to our store because we want consumers to get the

most out of our brand and become a part of the Maximize community.

d. Competitive Differentiators

Our goal is to create an environment with the community that is special and cultural. We

understand that it is important to consider environmental factors when making our products and

to give back to the community. A manufacturer that emphasizes the importance of keeping our

environment free of waste, incorporating a positive atmosphere to our brand, will make our

products. Every month, Maximize will host a “Clean the Earth” day in which the community is

invited to help clean up the street and the streets nearby the retail store. In the end, the person

who has picked up the most trash will be rewarded with a Maximize product.

Maximize will be showcasing its products and services in an elaborate store setting with

inventory always up-to-date. Customers will be walking into a vibrant, lively, and healthy

environment that will be easily accessible. The employees that Maximize hires will be

informational, helpful, kind, and friendly. We know that having the right people working at

Maximize will further enhance our brand image and brand loyalty.

Communication is a major factor within our company and therefore, it will be heavily

demanded of the sales force at Maximize. Certain criteria will be followed by all Maximize

employees to make sure that the retail store is a friendly and open environment for the customer.

   

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The criteria will include daily staff meetings regarding customers, weekly staff meetings

regarding sales and the staff, and monthly staff meetings regarding the store and the overall

aspects of the products. We want the new and repeat customer to walk into the fitness store and

feel not overwhelmed, but excited with the products and events taking place.

Since we love the outdoors, we will have scheduled marathons and events within the

company during certain times of the month focusing on the culture and community of our target

market. Running marathons, cycling marathons, and yoga days will be centered in, or around the

retail location. We believe that if Maximize hosts these events, we could potentially bring in

major target coverage and gain brand loyalty that puts us into a position where we are above and

beyond our average competitors.

III. Overview of the Data Used in Maximize’s Analysis

Data sources

a. Where the data came from

With the exception of an interview with a market analysis expert, the majority of our data

came from the Internet. The interview assisted us mainly with picking the right location for our

concept. Additional data came from competitors annual 10Ks and retail websites, which gave us

a model as to what we should be striving for.

b. Why Maximize used this data source

We used the Internet as our primary data source because of the amount of information

available. We were able to start from broad information and drill down to get very specific data

in order to make better business decisions. The interview conducted gave us a different type of

data source, creating more variety among our sources, and as a result creating value for the

project. Since Lululemon will be one of our main competitors, analyzing their website gave us a

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great starting point. Furthermore it allowed us to find where we would gain competitive

advantage. The Internet also granted us access to their financial statements. Since we will sell

similar products in the same industry, their financial statements and data gave us rich

information that helped us draft our own financial statements.

Data contents a. The data Maximize used and why

We used a mix of qualitative and quantitative data. The terms qualitative and quantitative

can be misleading: “The way we typically define them, we call data 'quantitative' if it is in

numerical form and 'qualitative' if it is not. Notice that qualitative data could be much more than

just words or text. Photographs, videos, sound recordings and so on, can be considered

qualitative data” (Types of Data). We used qualitative data ranging from Google Earth’s

screenshots of the store and warehouse to information used to describe terms. We decided to use

qualitative data because it adds value to our project; especially quality, which is one key

component in the success of our project.

Quantitative data was used in a lot of different parts of our project. It was used in

practically every section, especially in the retail demand forecast, Balance sheet, Income

Statement, and the product menu. Using quantitative data allows us to be precise with the

information given regarding the qualitative data originally in place. A good use of both is

important since they complement each other.

b. The data Maximize did not use and why

Some of the unnecessary data for our project were quantitative data that was not precise

enough for our project. For instance, we did research to find prices on capital equipment, yet

some were too broad and would not be a clear representation of the real cost.

   

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Data analysis a. The step-by-step analysis method that Maximize used

We mostly used the drill down method because it allowed us to search in broad terms and

then get into the specifics to find the information we needed. We also used multidimensional

analysis, looking at similar data for different sections and possibly gleaning some insight. The

drill down strategy allows us to get our data very organized from broad to specific, just like how

our retail shop will be organized. Looking at data from different dimensions and using the same

data in different dimensions allows us to simultaneously diversify parts of our project and link

them together.

IV. Physical Location and Financing Plan

Location Analysis

When it came to selecting a location, we first and foremost considered the “fittest” cities

in the United States. Our next consideration involved establishing ourselves somewhere where

we would not only service regular customers, but also expand our brand identity beyond our

original site by catering to tourists and locals. Our E-commerce division will help solidify a

meaningful relationship with any person who visits Maximize whether they are a local or not.

Finally, we sought out an affluent and moderately young demographic (aged 20-44). We started

our location search in some of the fittest cities in America: Portland, San Francisco, and Boston

(Men’s Fitness Editors).

Portland:

925 SW Taylor Street;

Portland is the fittest city in the U.S.

Demographically speaking, 45.54% of

the population within 5 miles of our SW Taylor Street location is between the ages of 20-44

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(Schramm). In 2013, Portland saw 8.4 million visitors who helped contribute to 4.2 billion

dollars in district spending (Visitors Statistics & Research). Another great aspect of Portland is

the low rent relative to the other cities. Nearby the Taylor Street location is a local bike shop

called the Bike Gallery, a frozen yogurt shop called Tartberry, and a Starbucks. Some

surrounding competitors include Banana Republic, Gap, H&M, and Nordstrom Rack.

Monthly Rent: $4,372.50 Square Footage: 3180 ft2 Rent per Square Foot: $16.50

San Francisco:

1833 Union Street;

The Marina is an iconic

neighborhood of San

Francisco filled with young

and fit inhabitants

(Goldman). The culture of

the area is quite obvious; as one takes stroll down just four blocks of Union Street, they will

come across a Lorna Jane, a Nike Store, the Juice shop, a Lululemon, a Lucy, and a local yoga

studio. Fitness is critical to the people in the Marina. Combine that with 47.24% of the

population within five miles being aged between 20-44 and 48.48% of the population with an

average income of above $75,000, and we have effectively captured our target market

(Lanyadoo). San Francisco sees 16.89 million tourists annually who spend (not contribute to)

$9.5 billion in the district (San Francisco Tourism). Unfortunately, Union Street is known for

catering more towards locals than tourists (Solanki).

Monthly Rent: $21,000 Square Footage: 3000 ft2 Rent per Square Foot: $84

   

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Boston:

218 Newbury Street

Drawing in both locals and tourists with its high end boutiques, Newbury Street was an easy

consideration for our Maximize

location. The more than 19 million

who annually visit Boston spent

approximately $10.3 billion in 2013

(Statistics & Reports). The area is

packed with successful clothing

stores, restaurants, and other attractions, guaranteeing plenty of Maximize foot traffic. Located at

street level, this retail location commands the attention of anyone in transit. Newbury Street is

well known for reeling in affluent shoppers from the surrounding prosperous communities. We

spoke with a marketing director from the National Retail Steering Committee who recommended

Newbury for the Maximize location, based on its foot traffic and the psychographics of

surrounding inhabitants (Solanki). Unfortunately, at 2,150 square feet this location is very small

for what we need, meaning we will definitely need a warehouse with this location. However,

needing a warehouse would drastically cut our costs as well as give us more space for the dollar

relative to other expensive real estate markets like San Francisco.

Monthly Rent: $17,916.67 Square Footage: 2150 ft2 Rent per Square Foot: $10052

Ellery St (Warehouse)

Situated 3.6 miles away from the Newbury location, this warehouse is a simple 10-minute drive

into Cambridge. The extra space will give us an opportunity to grow our E-commerce sales,

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which will fuel brand identity around the nation. Given that E-commerce will play such a pivotal

part of our business plan, having the extra space, for cheap, may be very helpful.

With warehouse;

+(Monthly Rent: $1,400 Square Footage: 1500 ft2 Rent per Square Foot: $1.07)

Monthly Rent: $19,316.67 Square Footage: 3650 ft2 Rent per Square Foot: $63.51

Summary: (Table References Lanyadoo, Statistics & Reports, Statistics & Research, Schramm,

and San Francisco Tourism)

925 SW Taylor Street, Portland

1833 Union Street, San Francisco

218 Newbury Street, Boston

% of Population 20-44 (5 Miles)

45.54% 47.24% 30.27%

% of Population with Income over 75K (5 Miles)

36.63% 48.81% 38.81%

Visitors to City Per Year

8,400,000 16,900,000 19,163,000

Total Monthly Rent Cost

$4,372.50 $21,000.00 $19,316.67

Total Square Footage 3,180 ft2 3,000 ft2 3,650 ft2

Total Annual Rent Per Square Foot

$16.50 $84.00 $63.51

Relevant Opportunity Costs

Other locations may have more affluent populations/ more tourists

Other locations may have cheaper rent

Other locations might not have complex logistical factors (warehouse)

   

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Conclusion:

Although Union Street presents an opportunity to directly capture our demographic via

the locals, Maximize’s goal is to expand nationally and Newbury Street offers the greatest

opportunity to reach out affluent tourists. Add to that cheaper rent and more space to expand E-

commerce and Newbury begins to look like the superior location. Newbury’s lease terms are

NNN with a .01% procurement fee. The lease is 120 months with negotiable opt out options

(Koenig).

Picture of 218 Newbury Street:

Financing Plan

Despite only having one location, our goal has always been and will always be

international growth and expansion. Because of this fundamental business strategy, we will: (a)

lease to make entrance and exit into the market easy, and, (b) try to raise a great bulk of capital

through equity financing. The absence of high interest payments, as well as a mortgage, will help

our company retain earnings to invest in growth projects. We, therefore, will be seeking

investors who see the potential in Maximize to grow into the next sports apparel sensation. As

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the primary owners, we will contribute capital of $80,000 total. We will look to have a debt to

equity ratio of .34 by the end of our third year. This capital structure has been selected after

analyzing the financial statements of our competitors, especially Lululemon, which has

succeeded with a very similar debt to equity ratio. The debt portion will be financed through a

Small Business Administration loan. We will chose an SBA loan over a conventional loan

because the interest rates will be lower as SBA loans are backed by federal government,

guaranteeing money to the private lenders. We will borrow $200,000 at 3.45% to be paid off

over the next 10 years.

V. Product Plan

Maximize High Technology Sports Apparel will provide high quality, athletic clothing

and accessories to both men and women. Our products range from loungewear and more casual

clothing items to sport specific garments and accessories such as cycling jerseys and yoga mats.

This comprehensive product offering allows us to cater to multiple demographics within our

target market, ranging from casual gym goers to the serious and dedicated endurance athlete.

In addition to our multifaceted product offering, we will also provide our customers with a

variety of unique and invaluable services such as free shipping when a product is unavailable in

our store, customer purchasing advice and consultation as well as community events such as in-

store workshops and yoga classes, local races and other various community focused events.

Product Description

Maximize will carry a variety of product lines and styles for both men and women in

order to provide our customers with the greatest value in satisfying their athletic apparel and

accessory needs. Maximize’s philosophy in developing and delivering products to our customers

is to create products of the highest quality in order to fill the needs of our customers while still

   

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maintaining competitive pricing and ethically and socially responsible business practices. We

have engaged in considerable planning and research in order to effectively meet our business

objectives while still preserving our company values.

An important component of Maximize’s ideology is to establish and maintain

relationships with both our customers and our local community. Maximize believes that in order

for a business to thrive and truly provide the most value possible to our target market, our

complete product offering must extend beyond the physicality of our products. In addition to our

products, we plan on working hard to be an involved and contributory member of our

community. We plan on doing so by hosting and sponsoring a number of events within the local

community to help build our relationship with our community. Through events ranging from free

weekly yoga classes within our store to community workshops and philanthropic events,

Maximize will be able to offer value to our customers that extend far beyond just the product

itself.

In addition to establishing ourselves as a well-rounded organization, another key strength

and distinguishing factor of Maximize’s product offering is our integration of wearable

technology into our product plan. Maximize will be partnering with Fitbit Inc. to become a

retailer of their products. Through custom-designed products, customers will be able to

seamlessly integrate their Fitbit technologies into their workout apparel which will allow for

accurate measurements of their workouts without impeding or interfering with their actual

workouts. This will allow our customers to utilize these technologies to track and optimize their

workouts, functioning as an aid to our customers’ fitness.

A comprehensive and detailed product menu for Maximize can be seen on the following page:

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Shop By: Men Women New Arrivals/Seasonal Sport

Men

• Tops o Regular Tops o Tank Tops o Jackets/Outerwear

• Bottoms o Pants o Shorts

• Accessories o Bags

Women • Tops

o Regular Tops o Tank Tops o Jackets/Outerwear

• Bottoms o Pants o Shorts o Dresses/Skirts

• Accessories o Sports Bras o Headwear o Bags/Misc.

New Arrivals/Seasonal • Men • Women

Sport • Running

o Apparel o Equipment/accessories

• Yoga o Apparel o Equipment/accessories

• Cycling o Apparel o Equipment/accessories

   

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Men Tops

Outerwear • Hoodies – 2 styles: 1 pullover & 1 zip up. Both available in multiple color

schemes/options • Jackets

o Rain Jackets/shell – 1 style: parka style, dual layer hooded jacket w/ dwr coating, taped seams, etc.

o Insulated Jacket- 1 style: zip up down jacket, 750-800 fill, no hood, side pockets, more tapered fit, multiple color options

• Vest- 1 style: zip up, down 750 fill power, 2 zip pockets, multiple color options Regular Tops

• Long Sleeve o Compression long sleeve – Multiple colors o Looser Fitting- Crew neck, sweat wicking, anti-microbial tech., small logo on

chest, small reflective accents. Multiple color options • Short Sleeve

o Compression fit short sleeve – Multiple colors o Loose Fitting- 2 styles: 1 same as above for long sleeve and other: dri-fit esque

cotton, crew neck, swoop-tail, graphic design of hands in mountain pose with “M” worked in, “Maximize” in simple font at bottom of shirt. 3 color options: white, grey and black

o Cycling Jerseys- 1 style, 2 color/pattern options Tank Tops

• Compression tank – Small logo on chest, reflective accents, multiple color options • 2 Styles by Shoulder Width- Thick (sleeve nearly reaches shoulder) & Thin (2-3 inches

across shoulder) – multiple color options for each Bottoms

Pants • Yoga Pants

o Men’s yoga pants/tights- 2 styles: full length and half-length. 2 colors: black and dark grey

• Running Pants o Running tights – 1 color (black) w/ reflective accents

• Sweatpants/Lounge o Joggers- Tapered leg/ankle, elastic waistband with draw

strings, 2 pockets. 2 colors: heather black, heather dark grey

o Draw String-type loungewear- Cotton/hemp lounge pant, draw string, 3 pocket, loose fitting, varying earthy tones

o Regular Sweatpants- Cotton/poly blend sweatpants, 2 zipper pockets, elastic waist + drawstring, dark grey

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Shorts • Running

o Shorter and Longer lengths, with and without liner: different inseams/lengths, multiple color options

• Yoga o Short yoga pants/tights: Above the knee length, stretch fabric, anti-microbial tech,

2 colors: grey and black o looser fitting yoga/athletic shorts: 1 style with 3 lengths, multiple color options

• Cycling shorts- 1 style, various color options/combinations Accessories

· Running Hat- 1 style: dri-fit type fabric with mesh lining, sweat absorbent internal headband with adjustable buckle closure in back. 2 colors: black and white. Small logo on hat

Women Tops

Outerwear • Hoodies – 2 styles: 1 zip up and 1 pullover,

available in multiple color options • Jackets

o Rain Jackets and Shells- 2 styles: Rain jacket & windbreaker. Rain Jacket: dual layer, zip up, dwr, hooded, taped seams, etc, black, olive green, dark blue, grey. Windbreaker: thin fabric, wind resistant w/ some water repellency, zip up, hood, 2 zip pockets, 3 colors: charcoal, heather navy and light grey

o Insulated Jackets- 2 styles of the same jacket: 1 reg. and 1 knee length, down filled – 700 fill, hood, zip pockets, 3 colors: dark grey, darkish blue/purple and black

• Vests- 1 style: zip up, down 750 fill power, 2 zip pockets, multiple color options Regular Tops

• Long Sleeve o Compression Fit- 2 styles: Crew neck and ¼ zip. Both available in multiple color

options o Loose Fitting- 3 styles: Crew neck, ¼ zip and swoop neck/baggier overall fit

• Short Sleeve o Compression Fit- 1 style: Crew neck in multiple colors o Looser Fitting- 3 styles: Crew neck, v-neck and swoop neck version of above

men’s short sleeve style · Cycling Jersey- 1 style with 2 color/pattern options Tank Tops

• Tighter Fitting- 2 styles: Racerback and cross back. Multiple color options • Loose Fitting- 2 styles: Muscle tee-esque and cotton blend racerback. Multiple color and

pattern options

   

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Bottoms

Pants • Yoga Pants

o Regular (tight) yoga pants- 1 style: Reg and roll down, full and half length, multiple color and pattern options, heel hook options, etc

o Loose fitting yoga pants- 1 style: Roll down with flare at knee. Multiple colors options

• Sweatpants/Loungewear- 1 style: Cotton, two front pockets, tapered at ankle, multiple color options

Shorts • Running Shorts- 2 styles: One shorter than the

other. Essentially the same short with minimal differences in leg opening of short. Multiple color options

• Spandex- 2 lengths: 1 very short and other to mid thigh. Multiple color options available

• Cycling Shorts- 1 style in various colors/patterns Dresses/Skirts

• Skirts – 1 style: Running/athletic skirt with built in shorts. Lightweight, multi stretch, moisture wicking fabric. Multiple color options

Accessories Sports Bras

• Support Levels: 2 support levels, 2 styles in each support level o Light Support:

§ Simple racer back style with thin shoulder straps (almost strings), moisture wicking fabric with mesh in back and sides. Multiple color/pattern options

§ Reg. Racer back- thicker shoulder straps, moisture wicking fabric. 5 colors: grey, black, navy, green and striped

o Medium Support: § Cross back (X in the back): reg. shoulder width, moisture wicking fabric

w/ mesh on sides. Multiple color/pattern options § Reg. Racer back: Reg. shoulder width, moisture wicking fabric. 5 colors:

grey, black, navy, green and striped Bags

• Yoga “Totes” and Mat Carriers o Yoga tote – Large tote bag with handles. Fabric TBD, 3-4 color options o Yoga mat carriers- Yoga mat specific carrier, will source from

YogaAccessories.com, 2 color options: gray and black Headwear

• Hats o Beanies- 2 styles: 1 active and 1 knit:

§ Active: Fleece-like, stretchable fabric with built in headband feature. Multiple color variations/options

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§ Knit: Woven cotton material, knitted hat. Baggier style (more room). Multiple color options

o Running Hats- 1 style: Dri-fit type fabric with mesh lining, sweat absorbent internal headband with adjustable buckle closure in back. 2 colors: black and white. Small logo on hat

• Headbands o Varying thicknesses of athletic headbands with rubber grips on inside

• Scarves o “Buff” – Maximize branded buff or similarly styled product. 1 color option

Sport Running

• Men’s Running Apparel • Women’s Running Apparel • Equipment

o Water Bottles- 3 styles: camelback with bite-valve, regular Nalgene and sport bottle. All with maximize logo and name on them, multiple color options

o Hats o Stretching/Training equipment

§ foam rollers, etc Yoga

• Men’s Yoga Apparel • Women’s Yoga Apparel • Equipment

o Yoga Mats- custom printed yoga mats with Maximize logo and name, multiple color options

o Blocks- standard 4x6x9 foam blocks, block color tbd, maximize logo and name printed on 1 side

o Straps- cotton yoga straps, multiple colors with logo and name printed next to buckle, 1 color: natural beige

o Towels- specialty yoga mat towels with embroidered maximize logo and name on towel. Multiple towel color options

o Misc. yoga products Cycling

• Men’s Cycling Apparel • Women’s Cycling Apparel • Equipment/Accessories

o Cycling Specific clothing § Shorts § Jerseys

o Hats- cycling hat: 1 style with multiple color options

   

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VI. E-commerce Plan

Our website, www.maximize-peak-performance.com, is an essential tool for Maximize

customers (GoDaddy Helps Small Businesses Get Noticed Online). Taking a streamlined

approach, ordering from our website will provide our customers with a hassle free buying

experience.

E-commerce Expansion Strategy

We plan on using the web presence of Maximize as a sales catalyst for both local and

non-local consumers. One marketing promotion we will implement is a free shipping coupon for

every customer who buys from our physical location. This will further incentivize potential

customers to visit our website increasing our general web traffic and enticing them to make a

purchase. Whether a Bostonian wants the added convenience of door to door delivery, or a non-

local customer simply cannot get enough of the quality of Maximize products, our E-commerce

division will facilitate these needs. In order to keep the impression of our brand’s high quality,

we will utilize UPS’s reliable service to handle all of our shipping needs.

Our web presence will also focus on creating new customers. By using Google Adwords,

we will gather useful information regarding both demographic and psychographic data about our

customers, giving us a clear picture as to who is actually purchasing our products. In addition to

Google Adwords, we will have a major social media presence across all platforms (Facebook,

Twitter, Instagram, Snapchat) in order to further delve into consumer metadata and generate

brand chatter. We will also take advantage of our web audience to communicate promotional

deals to consumers.

E-commerce Development and Operating Costs

The first cost associated with our web presence is the cost of registering our domain

name with godaddy.com, which is an extremely reasonable $9.99, to be part of the marketing

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budget (GoDaddy Helps Small Businesses Get Noticed Online). The next cost to consider is the

cost of warehousing. As mentioned in the Location Analysis, we have the advantage of having a

large warehouse space away from our physical location. This will not only make it easier for

employees to pick orders, but make it easier for shipments to go out as our warehouse is in a less

busy area than Newbury Street. We decided to use UPS for their reputation and cost advantages.

UPS takes larger quantity orders and heavier packages in comparison to USPS “(Why do

companies use UPS”). We will primarily use UPS Ground shipping, as it is the cheapest,

however, UPS provides several ways for packages to arrive. For Ground Service, the rate range

from $10.60 to $80.08 depending on where the packages go (United States). We will cap the

maximum weight at 15 pounds as our products are mostly lightweight. Our final ongoing

operational E-commerce cost will be advertisements. We will utilize Google Ads to promote

Maximize where we will pay for the Cost Per Click (CPC). Cost per clicks varies industry to

industry. Regarding the retail industry, CPC is a little higher than the average cost per click of all

industries.

The cost per click (CPC) for the retail industry varies from quarter to quarter as seen on the

graph, but our average cost

per click on Google will be

around $1.65 every time a

customer clicks on our

website link (Search Engine

Watch). In order to we

improve our click through

rate, we will have search

   

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engine optimization with Google. The website template used to create our website has the search

optimization (SEO) tool embedded. The SEO will enable us to have our site searchable by

engines such as Google and come up in the primary results. This is a great opportunity because

we want our customers to associate our company with quality and convenience.

Website Mock-ups

a. Computer Version

i. Welcome page

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ii. Catalog page

   

28

iii. Sports page

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b. Mobile Page

i. Welcome Page

   

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ii. Catalog Page

iii. Sports Page

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VII. Retail Service Demand Forecast

Because Maximize is in the introduction stage of the product cycle, we looked to utilize

advice from experts, historical comparisons, and competitive comparisons to create our retail

demand-forecasting schedule. As shown below, we took into account every product, and

estimated demand based on comparative data from our competitor Lululemon (An Investor's Key

Guide to Lululemon Athletica and Lululemon Athletica, Inc. - Annual Report).

When developing this retail service demand forecast, Maximize estimated revenues based

on the fact that we need to have well over $650.00 per square foot in sales to survive on

Newbury Street in Boston. First, we took the costs for store rent, warehouse rent, and estimated

other financial outlays in order to find a point in which we would most likely be profiting. For

the first year, revenues needed to be roughly $2,000,000. Since our square footage is 2150 ft.,

that puts Maximize at $930 sales per square foot.

Maximize created a three-year retail service demand forecasts to go hand-in-hand with

our Revenue Analysis and Financial Statement sections. In the year of 2017, we see our

company growing by 20%, noting that inflation will be around 2.5% (Putnam). Prices, costs, and

quantities per quarter were taken into consideration. In 2018, our growth in our sales is estimated

to be 35%. E-commerce will account for just 10% of sales the first year, but increase to around

20-30% the second year. In 2018, we expect to see another 10% growth in E-commerce sales.

Noted below are the retail service demand forecasts for 2016, 2017, and 2018 as well as

the prices and quantities respectively.

   

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2016 Yearly Forecast

33

2016 Quarterly Forecast (Season changes/shifts)

   

34

2016 First Four Months Forecast by Week

35

2017 Yearly Forecast

   

36

2017 Quarterly Forecast (Season changes/shifts

37

2018 Yearly Forecast

   

38

2018 Quarterly Forecast (Season changes/shifts)

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VIII. Capital Equipment Plan & Planned Floor Layout

At the store:

We want our store to portray an image of organizational efficiency and quality through

our floor layout. The store will be divided into four main parts: the Men’s Section, the Women’s

Section, the Sports Section, and the Open Area. The desk is located right in front of the entrance

so the customer will feel welcome right when she steps in. The Open Area is designed for classes

that we will host in the future and for extra space needed when we want to put more clothing on

the shelves.

   

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Floor Layout Key:

1. Foot traffic will be abundant and therefore our mannequins and our main entrance will be

located there.

2 & 3. Buildings next to the store

4. Back” street where, location of small in-store warehouse to stock items. The purpose of having

the back door is that our deliveries will not be seen by the customers meaning that the front of

the store (area labeled 1) will be visible by the public 24/7.

Capital Equipment:

Article Quantity Price ($)

Wi-fi box 1 100

Computers (iMacs) 3 3300

iPad ( iPad Air 2) 6 3000

Ecomdash software (synced inventory for ecommerce)* 1 250/month

Sensormatic software (including all features sold by Sensormatics)

1 800

Apple Pay 1 0

Credit Card Readers for iPad 3 30

Security Cameras 4 600

Security tags - -

Security tag removers 2 30

Security tag towers 2 1000

Desks 3 1000

Chairs (2 office chairs and 4 basic chairs) 6 260

Printers 2 1300

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Shelves (for small warehouse) 4 400

Paper (blocks, sheets of 500) 10 50

Tagging guns 4 200

Hangers with clips 100 115

Men Mannequins 5 520

Women Mannequins 5 520

Fitting rooms signs 2 20

Store logos 4 80

Mirrors 4 80

Men section signs 5 50

Women section signs 5 50

Sports section signs 5 50

Office sign 1 10

Desk sign 2 20

Carpets 4 120

Set of cleaning supplies 1 50

Vacuums 1 200

Hand Baskets 15 105

Fitting rooms 2 250

Racks for clothing 15 600

Van 1 25000

Phones 2 70

Storing boxes 7 140

Doors 2 250

Copy Machine 1 6100

   

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*Not technically capital equipment, a subscription.

Total Price in $ = 45,720

All the quantities used and prices are estimations based on research and are not exact

prices and quantities.

Sensormatics, owned by the company Tyco, promotes operational efficiency and places

extra security measures in stores to prevent shoplifting. Sensormatics will allow us to tag the

products, implement safety measures, and streamline inventory management process.

Sensormatics will even calculate foot traffic in our store to know how many customers we have

at any point during the day.

Ecomdash is an inventory control, sales order management, and shipping management

software that we will use not only to manage inventory but to conduct our E-commerce business.

We will use this tool to control our inventory from the manufacturing company Sweenie, to the

warehouse, and then to the bricks and mortar store along with our E-commerce sales

(Sensormatic).

Ecomdash, Sensormatics, credit card readers and Apple Pay will allow us to gather a lot

of unstructured data that we will then use to find patterns and trends to make better business

decisions in the future. It will allow us to see what our sales were during the year, month, week,

and even day. All of this data will be available through our interconnected system of iPads and

iMacs that we will use interchangeably from the store to the warehouse. We will check out our

customers with iPads. Then, the tagging guns will send all of the relevant inventory information

through the system directly to the iPads and computers so that we know, in real time, how much

we have in stock in the small warehouse at the store and in the warehouse location outside the

store (Ecomdash).

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In order to ensure the transportation of our goods from the warehouse to the bricks and

mortar store, we will purchase a van. Another way to ensure communication between the store

and the warehouse is that we will have phones at both locations.

Warehouse:

The warehouse is divided in a very similar way to the bricks and mortar store with the

Men and the Women’s sections being the biggest and equally separated. The difference is that in

the warehouse there will be a loading/unloading area. The desk will be for paperwork that needs

to be signed between suppliers and our company as well as computers and other relevant

technology. The closet area will be for storage of records, where the printer will be located.

   

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Article Quantity Price ($)

Wifi box 1 100

Racks 15 600

Shelves 15 1500

Ipads 2 1500

Tagging guns 5 250

Tags - -

Desk 1 150

Chairs 4 120

Printer 1 650

Computer (Imac) 1 1100

Phone 1 35

Set of cleaning supplies 1 50

Vacuums 1 200

Men section sign 3 30

Women section sign 3 30

Sport section signs 3 30

Security cameras 4 600

Storing boxes 10 200

Hand Truck 2 180

Total price =$7,325

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IX. Supply Chain & Inventory Management Strategy

Supply Chain

a. Potential Suppliers

● Apparel

○ Sweenie Manufacturing Co.*

○ Tama Manufacturing Company Inc.

● Cycling Apparel

○ TEXmarket*

○ TEXops

● Water Bottle Printing

○ Quality Logo Products Inc.

○ 4imprint Inc.

○ Absorbent Ink*

● Yoga Mats & Accessories

○ Mats Mats Mats

○ Yoga Direct

○ Yoga Accessories *

● Fitbit*

Upon looking at and collecting potential suppliers, manufacturers and distributors for our

company’s products we took great care and consideration in the process to ensure that as a

company we are being as cost conscious as possible while still maintaining high quality

standards for our products as well as a smooth flow of processes through all the supply chains

   

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ensuring high quality adding value to Maximize. In our research, we focused on looking for

suppliers that would provide us with convenience, flexibility, quality services and efficiency.

Quickly after beginning our research for potential suppliers and manufacturers we

realized that in order for us to maintain our high level of quality across all of our products and

product lines it is necessary to work with and integrate a number of different companies into our

own company’s supply chain. As a result of this we have decided that we will have four separate

functioning supply chains in order to fulfill the company’s needs for general apparel, cycling

specific apparel, yoga mats and accessories and finally general promotional products such as

water bottles, towels, tote bags, etc. This four-pronged supply chain plan will allow us as an

organization to carefully monitor the production processes for our various product lines while

simultaneously catering to the product-specific needs of our customers.

We also realized that in order for us to carry and offer Fit-Bit in conjunction with our

own products we have to become an official retailer of Fit-Bit in order to do so. From the

research that we conducted, the process of becoming a retailer is not difficult as it consists of an

application process with the Fitbit in order to ensure that their products are being sold in a

reputable and respected retail store. By looking at some of the retailers that currently offer Fitbit

products we are confident that we would be able to become a retailer for Fitbit’s products. The

supply chain process for this aspect of our business will be very straight forward in that we will

receive our order shipments from Fit-Bit, process and inventory the contents of our orders and

from there move forward with integrating the Fit-Bit products into our product offerings.

In order for us to make the most appropriate decision for our suppliers we conducted

considerable and extensive market research on all of the potential suppliers looking for optimum

quality and high standards of efficiency throughout the four supply chains. This consisted of us

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comparing pertinent data from these companies such as order turnaround time, general pricing

options, minimum order quantities and shipping costs. After compiling and analyzing this

information we then compared these data points against qualitative data such as industry

experience, product quality, location, industry certifications, aspects of CSR and general ease of

use and other non-quantitative information to help us make the overall best selection decision.

b. Chosen Suppliers

After conducting and analyzing the various data and information that we collected we

feel that we have been able to select not only industry leaders and qualified businesses to work

with, but also companies that we can form relationships with and allow us to continue to grow

and expand further as a business.

As mentioned earlier, our complete supply chain actually consists of multiple, different

supply chains that run parallel to each other through the supply chain process. We decided that

this would be the best approach for our business, as it will allow us to ensure superior product

quality as well as execute greater control in the production process of both our specialty and non-

specialty products.

For our general apparel producer and manufacturer we have selected Sweenie

Manufacturing Corporation, based out of New York. As a group we unanimously decided that

Sweenie is our best options for a number of reasons. Sweenie Manufacturing Corporation has

over 15 years of experience in the production and manufacturers of the services that they offer.

Sweenie is able to assist us in every stage of the garment pricing of apparel of nearly every

variety, with an emphasis in swimwear, active wear, woven goods, graphic tees and various

accessories. This expertise is an obvious asset of Sweenie Manufacturing Corporation, but what

truly sets them above their competitors is the complete production process from fabric sourcing

   

48

to product design. This allows us as a company to simplify our apparel production process which

in turn will also allow us to focus our efforts and resources towards other aspects of the business.

By contracting through Sweenie Manufacturing Corporation we will be able to maintain greater

control of the entire apparel supply chain process while also optimizing efficiency of our total

business operations. Furthermore, Sweenie adds value to our supply chain through the number of

manufacturing options they offer.

For our cycling specific apparel we decided to select TEXmarket as our chosen supplier.

We made this decision based off of data comparisons with their industry competitors. Based off

of numerical data alone our two potential suppliers were quite comparable, however industry

experience, location and communication response time set them apart from the other company

that we were looking at. TEXmarket has a branch here in the United States while their

competitors are located out of country, making order turnaround longer and product

transportation more expensive. In addition to better proximity, TEXmarket has been recognized

as an industry leader in cycling apparel manufacturing, having designed and produced garments

for some of the most esteemed cycling teams in the world. Along with these aforementioned

attributes, TEXmarket was very prompt in their correspondences with us during our research

stages, which was not only helpful at the time but also displayed their commitment to customer

service. Based off of the data comparisons and other influencing factors we felt that TEXmarket

was the overall best selection for our company’s needs.

When it came to making our supply chain selection decision for Maximize’s yoga mats

and accessories it was a fairly easy decision. Out of the three prospective companies that we

were considering, two were very similar, however one company, YogaAccessories.com offers a

wider variety of products that we are looking to carry. Through YogaAccessories.com we will be

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able to tailor a variety of yoga specific equipment and accessories such as mats, blocks, straps,

bags, etc. to our specifications. Working with YogaAccessories.com will allow us to not only

market ourselves further but also provide our customers with the high quality equipment and

accessories that they need.

As for our supplier for water bottles and other smaller, logo bearing promotional products

we will be using Absorbent Ink as our chosen supplier. Absorbent Ink offers a number of name

brand water bottles and promotional items with many easily customizable printing options. The

ordering process for obtaining products from Absorbent Ink is very straight forward and simple

which will allow the overall process of creating, completing and reordering our products to run

smoothly and efficiently.

Inventory Management Strategy

Maximize’s inventory goal is to make sure that we have all of our products available to

our customers at any given point of time. If the product is not available in the store or the

warehouse, then there has already been an inventory planning issue. We understand that

inventory management is a major component of operating a retail store and therefore have four

strategic goals that will enhance our inventory management strategy.

a. Tracking

Forecasts based on accurate information are imperative to the success of Maximize. We

will therefore have information technology in place that will glean ordering trends from previous

years. Products that come into the warehouse will be rigorously tracked until they get to the

customer. By doing this, we can obtain valuable performance measures such as the average time

a product sits in the warehouse or the average time it takes a package to get to a customer

   

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b. Trends

In the future, Maximize will turn our sales data into sales trends information. We will

also track general trends in the retail clothing and sports apparel industries to keep up with the

latest trends in fashion and sports. Maximize will also has a fashion consultant on retainer to

assist with qualitative forecasting. By tracking these trends, Maximize will be able to more

accurately forecast and better anticipate our supply needs.

c. Team Goal Setting

Our employees are considered a part of the Maximize family. It is therefore essential to

include employees in the inventory management strategy planning process. Allowing for

employees to be involved with forecasting sales and setting goals helps the manager to better

predict sales. Linking our inventory management goals to gross profits will allow Maximize to

develop a better inventory management system.

d. Customer Service

Linking customer service and inventory management will reduce shrinkage. By reducing

shrinkage, our inventory will always be properly available for customers. Teaching our

employees to reduce shrinkage is a major component in our inventory management strategy.

“Are you finding everything ok?” is a sentence that every employee will ask when there may be

a potential theft of merchandise by a customer. Our stores are also equipped with Sensormatics

and surveillance cameras to further safeguard against theft.

e. The Outline

While creating the inventory management plan, we recognized the need for separate

management strategies for each manufacturer. We have established process maps that include the

typical scenarios encountered to create visual diagrams for each of the manufacturers. We want

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our inventory turnover to be similar to be as high as possible, realizing all the benefits of just-in-

time delivery.

The three main suppliers and Fitbit will all be delivering to Maximize’s warehouse on a

first come first serve basis. In the beginning of the process, Maximize will depend on the retail

demand-forecasting schedule to order products from its suppliers and maintain a just-in-time

inventory. As soon as an in-store inventory drops below a certain level, the inventory

management system will prompt managers to go through the ordering process (as noted in the

second section of inventory management). Suppliers will then receive the Purchase Order with

relevant information such as what products, colors, sizes, and quantities are needed.

In the next step, the supplier will then notify Maximize that the products are ready to be

shipped to the warehouse. The supplier will provide its own transportation for the shipment to be

delivered to Maximize, FOB destination. After the order has been dropped off to the Maximize

warehouse, it will then go through the receiving process as described in the second section of

inventory management. From there, some products will stay in warehouse and some will be

delivered to Maximize’s store.

Products in transit to the bricks and mortar store will be brought over by the company

van. As soon as Maximize gets the order from the warehouse it will go through the second-half

of the storing process as noted in the second section of inventory management.

f. Detailed Planning

The goal is to make sure inventory is ready to go as soon as the shipment arrives to the

warehouse. At the moment, we estimate that 10% of our sales will be through E-commerce for

the first year. In 2017 and 2018, the numbers will rise because of word of mouth and other

promotional techniques as discussed in the E-commerce plan. The fact that we do not have

   

52

stores opened up anywhere but Boston leads us to believe there will be a rise in E-commerce. In

order to satisfy those customers, products will be set aside for E-commerce purposes in the

warehouse. Tracking will be involved to make sure that the estimated amount of products are set

aside for either E-commerce or for brick and mortar. If there is a spike in E-commerce or retail

demand, Maximize will estimate the new amount of products needed to be ordered as soon as the

information is found. The Manager will go through the forecasting process, as he or she would

be doing anyways. Refer to the Process Maps section to see the Flowchart on the Forecasting

Process. If the demand will bring enough revenue into Maximize, the products will be ready to

go in the warehouse to either the customer or the store.

Based on the Retail Demand Forecast section, the first month will consist of just under

3,655 products that need to be sold within the store, with an additional 417 sold online. Every

week there will be over 900 products within the store, and the rest will be sold online. Ordering

for the next week will involve reconciling the sales we actually did and the sales we expected to

do. Maximize will be taking into account that the retail demand forecasts will always be wrong

to a degree and we will then keep track of trends we see.

Inventory management software will have weekly updates as to whether a product is

being sold or not with store managers as executives within Maximize. From there, forecasts will

be changed for the next week/month based on predictions and trends from that first week or two

in January 2016. However, we are keeping in mind that we need to sell around 34,983 products

in our store and via E-commerce.

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g. Putting it into Action

Inventory management at Maximize consists of three separate yet cyclical processes. The

ending of ordering prompts the start of reception, the ending of the reception initiates the

beginning of storage, and the ending of storage elicits the beginning of ordering.

i. Ordering:

The ordering process begins when the general manager notices the need for new stock.

This will happen under two circumstances: 1. Maximize is preparing to change the product lines

to reflect the changing season or 2. The in-store stock of a certain product drops below an agreed

upon increment. The inventory software is programmed to notify the Warehouse Manager when

the in-store stock drops below the agreed upon increment. (The agreed upon increment reflects

the average daily demand of the product and the time it takes for our supplier to deliver a new

shipment). If there is product in the warehouse, the Warehouse Manager will send it over

immediately. If there is no product in the warehouse, the Warehouse Manager looks to see

whether or not the marketing team intends to keep selling the product. If the marketing team

decides that Maximize will no longer carry that item, the COO and Warehouse Manager do

nothing. If the Marketing Department has decided that Maximize will keep carrying the item, the

Warehouse Manager will send the supplier a Purchase Order (PO) by e-mail or fax. The

Warehouse Manager will deliver a copy of the PO to the Shipping and Receiving (S&R)

Department, for their own records. A member in the S&R Department or the Warehouse

Manager will call or email the supplier to confirm that they have received the PO, and that it can

be fulfilled by the requested date. Once the supplier has confirmed the order, the last step of the

ordering process is to wait for the supplies to come.

   

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ii. Receiving:

Once the driver arrives at Maximize on the chosen date, the Warehouse Staff will unload

all of the freight. While unloading the truck, the Warehouse Staff will be checking the goods for

any damage or evidence of tampering. If anything is found, the employees have been instructed

to refuse the shipment until management can sort out the situation. Next, the Warehouse Staff

checks the correct number of packages or boxes against the Bill of Lading (BOL) and the

original Purchase Order (PO). If the correct number of packages is not present per the BOL,

Warehouse Staff has been instructed to refuse the shipment until management can sort out the

situation. If the correct number of packages is present per the BOL but not the PO, warehouse

employees have been instructed to receive the shipment but notify management that an issue

occurred and we did not receive the originally agreed upon amounts. If everything checks out, a

Warehouse Staff will sign for the goods and give the BOL to the warehouse manager.

iii. Storing:

Storage involves two simultaneous processes. One involves the physical placing of items

on shelves and the other involves the creation a digital inventory and payment to the supplier.

Once the freight is physically received, the BOL is given to the Warehouse Manager who

enters the correct amount supplies into the inventory management software and prints off a

Reception Report. The Reception Report (serving as our version of the supplier’s BOL) then

goes to the Accounting Department where it meets the supplier’s Invoice and a copy of the

original Purchase Order. The accountants will check all three documents to make sure all ordered

supplies have been received, at the agreed upon price. Any discrepancies will have been well

documented. If there were any issues with the supplier or freight company, the COO will call to

alleviate them.

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Meanwhile, in the warehouse, the Warehouse Manager prints off a barcode for each box,

container, package etc. The Warehouse Staff puts the correct barcode on each box. They scan the

barcode and enter in the amount of units in the box and the physical location of the box on the

shelf. A QR scan of the label will tell the employee what is in the box without looking in it.

Alternatively, a search option in the inventory management software allows employees to query

for the exact location of products.

If the clothing is going to the store or clothing that was in storage is now coming out, the

first step is for employees to unwrap the product. Next they are instructed to attach the correct

price tag and a Sensormatic tag. Once tagged, employees will hang/fold the product on/in

racks/totes. These racks and totes are then transported to Maximize’s retail location where sales

associates put it on display for the customer to eventually purchase.

X. Human Resources Staffing Plan and Cost Analysis

Waged Employees

a. Job Analysis: Sales Associate

i. Description and Specifications:

Sales Associates at Maximize will be amiable, organized, and committed to a fit lifestyle.

They will be responsible for greeting customers, stocking the shelves, assisting potential

customers, selling product, and safeguarding against theft. Wages will start at $9.25 an hour and

raises will be based on customer relationship management performance. Customer relationship

management performance will be measured by exit surveys that we will offer to customers in

exchange for coupons and gift cards. Sales associates must have excellent communications skills

ranging from friendly greetings to delicate sales negotiations. The main goal for Sales Associates

will be to maximize their group commissions by assisting each other in sales, eliminating

   

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operational inefficiencies, and satisfying customer needs. Sales associates will not need

extensive work experience, although some experience is preferred. Sales associates must have a

high school education and be knowledgeable about fitness. As a part of Maximize’s training,

Sales Associates are required to take a fitness and nutrition education class so that they can help

customers and make them feel like Maximize is place where athletes congregate.

ii. Benefits:

At Maximize we want encourage everyone from our customers to our employees to

champion an active lifestyle. Therefore, Maximize will reimburse our employees for 80% of a

monthly gym membership or 70% of all yoga, dance, or other exercise classes (up to $50 per

month.) This benefit accomplishes many organizational goals. First of all, employees will

continuously gain knowledge on fitness which can then be used to help customers. Secondly, a

lot of evidence suggests that workplace health initiatives can increase productivity (Workplace

Health). Healthy employees translate to less absenteeism. It also curbs presenteeism, or the

“measurable extent to which health symptoms, conditions, and disease adversely affect the work

of productivity of individuals who chose to remain at work” (Workplace Health). According to

Forbes, $6.7 billion dollars are wasted in the sales industry every year due to absenteeism.

Hourly employees’ unscheduled absenteeism costs roughly $3,600 per employee. (The Causes

And Costs Of Absenteeism In The Workplace) Not only does this benefit accomplish socially

responsible initiatives, it increases productivity in a way we can’t financially ignore. Maximize

employees will also receive a group commission of 3.5%, as previously mentioned. Maximize

chose group commissions over individual commissions because we want our employees to work

together to make sales. Although competition can cause a rise in sales, Maximize wants to put

the experience of the customer above the wallets of our employees. We would much rather see a

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customer leave happy with less, than with more after having felt pestered by competing Sales

Associates.

b. Job Analysis: Warehouse Staff

i. Description and Specifications:

Warehouse Staff at Maximize will be organized, efficient, and excellent at planning.

They will be responsible for unloading supply shipments, placing supplies in inventory, picking

orders to go out to the store or via E-commerce, and tagging the clothing with price and security

tags. Wages will start at $8.50 an hour and raises will be based on inventory management

efficiency. We will measure this by tracking the time it takes for supply requests from the bricks

and mortar store to be fulfilled. Warehouse employees must use the well-regulated systems set

up by management to accomplish the central goal: ensure product gets to the customer on time.

Warehouse Staff do not need a high school education unless they lack any work experience

whatsoever. It is preferred that Warehouse Staff have some warehouse experience but it is not

necessary.

ii. Benefits:

Warehouse Staff will receive the same fitness benefit as the Sales Associates. While Warehouse

Staff can not share their fitness experiences with the customer, it will benefit Maximize because

there will be less absenteeism. As mentioned earlier, absenteeism can be a bottom-line killer.

Salaried Management

a. Job Analysis: Store Manager

i. Description and Specifications:

The Store Manager will be cordial, have leadership qualities and knack for organization.

As the chief representative to the customers, the Store Manager will show by example how

   

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Maximize goes about treating their patrons. The Store Manager will coordinate with the

Warehouse Manager to make sure products are delivered to the store on time. The Store

Manager’s main goal will be to synchronize the Sales Associates in a way that maximizes sales

and minimizes costs and inefficiency. Store Managers will be responsible for setting up shift

schedules and coordinating with the Human Resources Manager to ensure all employees have

received adequate training and other educational initiatives. Store Managers must have a college

education or extensive management experience. Like all Maximize employees, they will also

receive the fitness benefit.

b. Job Analysis: Warehouse/E-commerce Manager

i. Description and Specifications:

The Warehouse/E-commerce Manager must also have leadership abilities on top of

technological skills. The Warehouse Manager will be responsible for ensuring that the

Warehouse Staff performs at the highest level of efficiency. The Warehouse Manager is

responsible for creating a shift schedule, maintaining the inventory levels, coordinating with the

COO, and coordinating with the Store Manager to ensure that the flow of products is efficient.

The Warehouse Manager and his staff will also be responsible for picking E-commerce orders

and shipping them to customers. The Warehouse Manager might also be asked to coordinate

with suppliers. Warehouse Managers must have a college education or extensive management

experience. Like all Maximize employees, they will also receive the fitness benefit.

c. Job Analysis: Human Resources Manager

i. Description and Specifications:

The Human Resources Manager must have leadership qualities and the ability to educate.

We want employees at Maximize to be knowledgeable in both fitness and our products.

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Therefore, Maximize will have an extensive and ongoing training program. In addition to the

pre-employment training, Sales Associates will have to take a one hour educational class

whenever Maximize turns over its inventory for a new season. The Human Resources Manager

will be responsible for creating these classes and then teaching them. In addition to the education

responsibilities, the Human Resource Manager will also have to assist employees with issues,

maintain the benefits systems, and recruit new employees. Human Resource Managers must have

a college education or extensive management experience. Like all Maximize employees, they

will also receive the fitness benefit.

Executive Suite:

a. Chief Executive Officer

The CEO must have a vision for the company. The CEO is responsible for growing the

company by utilizing all of the expertise below him or her to accomplish organizational goals.

The CEO must have a college education.

b. Central Financial Officer

The CFO must be excellent with numbers and information systems. The CFO is

responsible for controllership duties and financial reporting, treasury duties and capital structure,

and economic strategy and forecasting. The CFO must have a college education.

c. Chief Marketing Officer

The CMO must be committed to creating a brand and using information systems.

Maximize’s focus is to grow into a sports apparel sensation and the CMO must utilize available

information to develop the brand. The CMO will be responsible for deciding and determining the

marketing strategy including target audience, brand image, and promotional campaigns. The

CMO must have a college education.

   

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d. Chief Operating Officer

The COO will have to be very organized and always looking to improve. The main goal

for the COO is to handle the day-to-day operations and see where improvements can be made.

The COO must advocate of efficiency everywhere they can. The COO must have a college

education.

e. Chief Information Officer

The CIO must have the strongest organizational skills. As the information champion, they

are not only responsible for making capital purchases that will help with the collection of data

but also help others make that data useful. The value of a CIO is really immeasurable as the

insight that may be gleaned from the data we collect could be limitless. The CIO must have a

college education.

Maximize Company Hierarchy

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Third Party Consultants and Services

a. Cleaning

Our cleaning will be taken care of by a janitorial service called ABM. The cost of this has

been estimated to be $30 a visit and they will visit four times a week for a total of $120.

Supplemental cleaning like sweeping and dusting will be taken care of by Sales Associates.

b. Purchasing

The seasonal purchasing process will require consulting a fashion industry expert.

Although we will conduct quantitative forecasts, it is important to use qualitative expertise when

launching new products. Very good fashion consultants make up to $80,000 a year. Maximize

will seek to put one on retainer for $10,000.

c. Yoga

Maximize will also make use of a yoga instructor who charges an hourly rate of $55. This

will be for our weekend in-store events. (For convenience sake, the yoga instructor will be

included with the other hourly employees in the cost analysis.)

Cost Analysis

a. Waged Employees

Maximize’s sales are the highest in the first quarter (December to March) at 31% of sales

followed by the slowest quarter (March to June) at 16%. The last two quarters are regarded as

normal (24% and 26% respectively). Store hours are Monday-Friday 10:00 A.M.-9:00 P.M. and

Saturday-Sunday 11:00 A.M-11:00 P.M. The warehouse is open 7:00 A.M.-6:00 P.M. everyday.

i. Normal Seasons (June-September and September-December)

During normal seasons, Maximize will want to keep between 8-10 Sales Associates on payroll

and 3 Warehouse Staffers to avoid paying overtime. There will be three active Sales Associates

   

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during slow times of day (10-2, 9) and four Sales associates during peak hours (3-8). There must

be two Warehouse Staffers per shift during the week and one during the weekend.

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ii. Busy Season (December-March)

During the busy season, Maximize will want to add one to two extra sales associates. At

least three Warehouse staffers are still necessary. There will be three active Sales Associates

during slow times of day (10-2), four Sales associates during buffer periods (2-5, 9), and five

Sales Associates during peak hours (5-8). There must be two Warehouse Staffers per shift during

the week and one during the weekend.

   

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iii. Slow Season (March-June)

During the slow season, Maximize will want to shed two to three extra Sales Associates to have

between 6-8 employees. At least three Warehouse staffers are still necessary. There will be two

active Sales Associates during slow times of the day and three to four Sales associates during

peak hours. There must be two Warehouse Staffers per shift during the week and one during the

weekend.

   

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b. Salaried Employees

The salaried employees include the Store Manager, the Warehouse Manager, the Human

Resources Manager, and the C-Suite.

   

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c. Third Parties

Third Parties’ yearly costs include janitorial services and fashion consulting.

Totals:

***Assumption that waged employees will not receive a raise during the year***

XI. Non-Human Resources Plan

Office, Operations and Storage Space

For our office space we have chosen to use a rental office space located in Cambridge,

very close to both our retail store and our warehouse storage facility. The space comes fully

furnished with all necessary equipment and hardware such as desks, chairs, printers, high-speed

Internet access, sizeable conference room space as well as administrative support as needed.

Total rental costs for our office are $949 per month, which is very reasonable given its location

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and square footage. This office space will be occupied by Maximize’s corporate management

suite as well as the human resources manager, allowing for a strong team-oriented atmosphere.

Our operations will take place in our retail location, for which details have been provided

in our capital equipment plan, and for our storage space, we will be utilizing a sizeable

warehouse that has also been addressed in the capital equipment plan.

Operations Disability Insurance

General Liability: It is important we have general liability insurance to protect us from

random accidents that might occur on our property. General Liability insurance was estimated to

cost around $6,000 a year. This is based on the fact that small consulting firms have general

liability of around $3,000 a year whereas a landscaping company would pay upwards of $15,000.

We realize that we will see a lot more foot traffic than a consulting firm (increasing risk) but our

risks are nowhere near the severity of risks associated with heavy machinery and manual labor.

(Business Insurance Cost Comparison)

Workers Compensation: In the case that one of our workers is injured while on the job,

we will provide workers compensation. According to BLS.gov, the average rate for retail

classification in 2014 was 1.95% (Retail Trade: NAICS). The total payroll for W2 Employees

(Sales Associates, Warehouse Staffers, Managers, and the C-Suite) was $458,272. Therefore our

workers compensation cost per year is $8,936.30.

Business Overhead Expense Disability Insurance: Since BOE covers overhead expenses

should the owner get disabled, and we have four owners, we found this insurance unnecessary.

The odds that all four of us will become disabled at the same time are astronomical and the

insurance is therefore not needed.

   

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Property/Renter’s Insurance & Taxes

Property Taxes are determined by the State of Massachusetts based on similar building

sales that have occurred in that market (Gail). In the case of our bricks and mortar location,

which has an NNN lease, we are responsible for paying $11 per square foot a year ($23,650)

(Gail). In addition we are required to pay $7 per square foot for CAM, which includes common

area utilities, repairs and maintenance, and fire/casualty insurance ($15,050) (Gail). Our

warehouse on the other hand has a gross lease which means that property taxes, insurance, and

maintenance are all included in the rent.

Utilities

The utilities will cover electricity, which will be used for cooling and heating both the

warehouse and the brick and mortar store. Our water consumption will be very low, probably at

the minimal rate since we need very minimal amounts of water for our business to run.

Electricity: Our electricity bill will vary from month to month depending on the time of

the year. In winter and summer is when our electricity bills will be the highest therefore our bills

will be higher than the average calculated above. We will want our brick and Mortar store to be

at perfect temperature for our customers to feel at ease in our store, not too cold and not too hot.

Electricity bill for Brick and Mortar Store: 0.2 x 2150 = $430

Electricity bill for Warehouse: 0.2 x 1500 = 300$ per month.

Electricity Total = $730 per month (Average retail store (1500sqft) utility deposit and monthly

cost).

Water: Since our retail store does not rely heavily on water for day to day functions, our

water consumption will be essentially entirely through bathroom use which will keep our

monthly water consumption to a minimum.

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Calculations

Average gallons used per person in Boston: 41

Average cost for 1 month in Boston per person: 43.6666

Average number of gallons used per person in the store: 4.6

Average gallon per flush: 1.6

Average number of people in the brick and mortar store for 1 year: 9

Average number of people in the warehouse for 1 year: 3

Average number of days in a month: 29.6

Average number of times people will go to the bathroom per day: 2.7

Monthly water bill for warehouse: $12.96

Monthly water bill for brick and mortar store: $41.40

All calculations made were based off numbers of water consumption in Boston area: see

references (Map: Massachusetts Water Usage).

Internet: In order to facilitate the high amount of data we will be consuming between our

warehouse, office space and retail store we have decided that a comprehensive fiber optic

internet service plan is best for our needs. The monthly cost for our internet plan is $70.00.

   

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Non-Human Resources Summary Chart

XII. Revenue Analysis

In reference to the Retail Demand Forecast section, Maximize recognized the need to

obtain at least $2 million in revenues in order to survive on Newbury Street in Boston. With that,

the three year revenue forecast was broken down into the years of 2016, 2017, and 2018 to

distinguish the differences in revenue depending on the factors of inflation and other economic

changes that go into effect.

Keep in mind, Maximize’s estimated growth will be 20% in 2017 and 35% in 2018.

Please refer to the Financial Statements section to look into further data for Maximize’s growth.

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Sales per Square Footage (2150sq.ft.)

Revenue in Three Year Forecast

   

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Graph of Net Income & Sales Relationship

Profit Margin % by Year

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XIII. Financial Analysis

In creating Maximizes three-year financial statements, we wanted to make as few

assumptions as possible. Instead, we wanted to rely on the information we could find and the

predictions we already created with our demand and revenue forecasts. The first assumption to

be made about our financial statements is that this is the “Best Case Scenario,” meaning we

reach our forecasts, there’s no unforeseen rises in cost, or any other incidentals that could

potentially hit our bottom line.

The next assumption to be made is that we will always have the cash to cover our

impending costs. Obviously this will not be true. Maximize will open up a line of credit with our

bank to help cover cash flow issues. Suppliers will also give Maximize a reasonable amount of

time to sell merchandise before requiring payment because we will negotiate contracts to 2/10,

net/30 or longer.

We estimated that approximately 3% of our inventory will go unsold each accounting

year and therefore, transfer to the next. We based this off of our competitor Lululemon’s 7 year

average inventory from their 10K. We also assumed that accounts receivables would make up a

very small, if not non-existent portion of our Balance Sheet because sales will only be made in

cash and cash equivalents. We also left pre-paid expenses off our balance sheet because it is

difficult to realize the temporal parameters in which we started those contracts. We therefore

assumed prepaid expenses were fully expensed by the end of the accounting year.

In raising the capital necessary to start the business, we will look to get $200,000 from a

small business loan, to be paid back in for year at 3.45% interest. The four owners of the

business will also contribute $80,000 total in capital. Of that, $54,570.67 will go to capital

equipment and $225,429.33 will go to current assets like inventory. We believe we will need

   

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roughly 2.5 to 3 times current assets to costs of goods sold to stay afloat, based on our competitor

Lululemon.

S,G,&A

We assumed most S,G,&A costs would stay consistent with exceptions of the marketing

budget, commissions, and shipping costs.

Wages and Salaries

We assumed wages would increase approximately 15% each year to account for

additional sales and the possibilities of raises. Managers’ salaries also increased 15% between

2017 and 2018.

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Depreciation Chart

We used MACRS to depreciate our capital equipment.

   

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Income Statement

Balance Sheet

Each accounting year ends on December 31st. In the year 2015, Maximize raised the

necessary capital and purchased capital equipment. In 2016, Maximize began operations and

ended the accounting year on December 31st.

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Financial Ratios

   

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XIV. Process Maps

Flowchart of Forecasting Process

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Relationship Map of All the Suppliers

   

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Ordering

Receiving

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Storing

Cross Functional Map of Suppliers

   

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XV. Corporate Social Responsibility

Maximize’s impact goes well beyond the apparel we sell. On the most fundamental level,

any business inevitably creates externalities, and at Maximize we seek to minimize the negative

impact we put on the environment and society through sustainable practices and social value

creation. Maximize has several socially responsible practices that make us a company consumers

can get behind.

Local Initiatives

At Maximize, we take our motto from Malcom Bane: “If you wait until you can do

everything for everybody, instead of something for somebody, you’ll end up doing nothing for

nobody.” We truly believe that the little bit of good we can generate everyday will become

something awesome in the aggregate of everyone’s attempts. For instance, Maximize will also

sponsor a “Clean the Earth” Day on the first Saturday of every month. Locals can get involved

and help Maximize clean up the city. Locals can also come by the store every Saturday and

Sunday before we opens to join a free yoga class. Maximize will also host a monthly 10K in

which runners may be sponsored by friends and family to finish the race. All proceeds from the

10Ks will be donated to GoKids Boston, a local charity that “provides kids personalized

instruction and support so [kids] can become more physically active, improve fitness, eat

nutritiously, and gain self-confidence (GoKids Boston).” Even through small events and small

donations, Maximize can make a difference, and hopefully inspire others to make a difference as

well.

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In-Store Practices

Sustainability and preservation will be main components of Maximize’s corporate

culture. Orientation will involve education on environmental sustainability. We will administer

brochures to all employees that detail how they can reduce their waste in the store and at home.

By acutely measuring the amount of water we use, the amount of food waste we create, the

amount of energy we use, and the amount of CO2 we emit, we can continuously work towards

bringing waste down. We will also require our employees to set personal sustainability goals, to

the same token of our store motto. If everyone individually tries his or her best to be more

sustainable, we will be more sustainable in the aggregate. We also want to encourage our patrons

to be more sustainable, so those who bring in or reuse bags will receive a .5% discount.

Supplier Requirements

Every year, Operations Managers from Maximize will visit our suppliers to make sure the

suppliers are meeting our humanitarian standards. Maximize will only continue to use suppliers

whom we feel comfortable with their practices. Maximize will also collaborate and assist our

suppliers in achieving SA8000 certification by the fourth year of using them as a supplier.

   

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XVI. Retail Space Plan

In order to be a successful business, small efforts matter. Little things such as changing

our store design are crucial for us setting our store apart from other competitors. The efforts in

order to fulfill this requirement of ours are the following:

Maximize’s store layout will change several times a year in order to stay fresh and

exciting to the eye. Obviously our products will change to fit the seasons but Maximize will also

move around product simply for the sake of keeping things aesthetically pristine. Spring clothing

will start in April, summer clothing in July, fall clothing in October and winter Clothing in

December.

“Special days” such as Halloween will be commemorated by dressing the mannequins in

costumes or giving them props. The outside of our store and the open area will be decorated for

the occasion. We will decorate the store on the following days: New years, Valentines Day,

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Easter, 4th of July, Halloween, Thanksgiving, and Christmas. This will give a sense of integrity

of our store to the culture, showing that our store is part of national and international customs.

This will help us shape good relations with our customers and change our store around a little bit,

offering something new to customers.

“Special days” will also give us the opportunity to launch new products, offer special

deals to our customers and finally would serve as a good marketing strategy.

XVII. Marketing and Promotion Plan

As a new business in the making, it is very important to consider the marketing and

promotional planning aspect in order to obtain sustainability. The brand will first launch in the

Boston area and it is critical for Maximize to dive into the atmosphere of Newbury Street. We

know that there are already established sport apparel companies such as Lululemon and Athleta.

However, we will be able to distinguish ourselves from them with our marketing and promotion.

Brand Design

We know that our brand logo will stick with the company forever so we took into

consideration the colors and the logo design itself. Maximize chose the color blue because of the

appeal it has on customers. Blue represents trust, strength, and dependability (The Psychology of

Color in Marketing and Branding). We believe that Maximize will be able to stand out against

other competitors. Maximize wants its customers to have strength and trust in the brand. The

design of the logo is intended to be simple and not complex. The design itself represents an M

and has peak intervals like on a treadmill. Maximize is a sharp, distinctive company and the

logo, we believe, represents that.

   

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Rewards Program

For the first couple of months, if a customer requires shipping of a product from the brick

and mortar store, Maximize will offer a free shipping coupon. Our customers will be able to

choose their type of benefits when in the Maximize family. An email will be sent to the customer

after their first purchase asking if they would like the option to be a part of the Maximize

rewards program. If they say yes, there will be weekly newsletters (emails) about the store’s

updates on products and events. Some benefits that the customer can choose from will be

discounts on accessories and major sellers of women and men’s apparel. Being a part of the

newsletter allows for the loyal customer to receive “flash” coupons on specialty items that are

more popular than others.

If an athlete presents credentials of the athletic organization he or she is in, he or she will

receive a discount off of any item within the store or online. The discount will be around 5%.

Sponsored Athletes

Once Maximize succeeds within the first year, we will start to look at running, yoga, and

cycling athletes that would like to be sponsored by us. If the athletes sign a contract with

Maximize, they will only wear Maximize gear. The goal is to have these athletes act as models

for other junior athletes or other athletic individuals to create a positive brand image for

Maximize. Maximize will want these athletes to participate and be at sponsored events in the

Boston area or in other possible Maximize stores in the near future. These athletes will also be

able to post on social media about Maximize and be included in Maximize’s social media posts.

Sponsored Events

Maximize will host continuous events each year in the Boston community to promote

positive awareness. First, Maximize will host “Clean the Earth” day on the first Saturday of

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every month. The event will go from 10:00 A.M.-12:00 P.M. A booth will be stationed outside

of the store on Newbury Street with water, trash bags, gloves, and brochures describing

upcoming events at Maximize, stickers, and staff members. A free Maximize water bottle will be

awarded to the three individuals who picked up the most amount of trash for that day.

On every Saturday and Sunday of each month from 9:00 A.M.-10:00 A.M., Maximize

will have a yoga instructor come in and teach new and continuous yoga affiliates for an hour

outside, if weather permitting, otherwise the store will be used as a yoga center. Promotional

items such as discounts on a customer’s next purchase will be given out after the yoga session as

well as time to speak with the professional yoga instructor.

On the third Saturday of every month from 9:00 A.M.-11:00 A.M., Maximize will have a

running event that goes around the Charles River in Boston. The distance will be between five to

ten miles. The directions will be different each time there is a marathon in order to keep it

entertaining. Runners have the option of finding sponsors of which the proceeds will go to

Gokids Boston. A booth will also be stationed outside of the store with water, stickers, brochures

describing upcoming events at Maximize, and staff members. The first three winners of the

marathon will receive a free Maximize water bottle and a Maximize sweatshirt. During the

Marathon, people who are watching the event or just checking out Maximize will be able to

enjoy smoothies by Smoothie King located in the Boston Area.

For all of these sponsored events, Maximize will encourage people to post on social

media sites to promote brand awareness and energy. The goal is to get as much people within the

Boston area to know about Maximize’s brand and its events. We want to create a Maximize

family starting around Newbury street and then have that expand to the whole of Boston area. As

soon as Maximize kicks off the following two years, we hope to see a bigger family.

   

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Website Design and Implementation

Maximize has found a company within reach called Spin350 Creative, located 27 minutes

away from Newbury Street in Boston, to help develop our website once we have achieved

substantial growth within the first year. They are located south of Boston on 1 Westinghouse

Plaza. They will help us create a more interactive website than the one we will initially have in

the first year. Our E-commerce site is very important to us and for our customers. To get

professional input would be the best for Maximize’s growth in the near future. Therefore,

Maximize will work with Spin350 Creative each month to look at website trends and what needs

to be added or changed to the website. The website may change a little bit month by month but,

once a year, the website will have a different layout that will be aesthetically appealing and new

for the old and new customers to enjoy.

Catalog Design and Implementation

Maximize will use the same company, Spin350 Creative, to create Maximize’s catalog

design. The goal is to have a catalog printed and available at the beginning of each year.

Maximize will have a catalog at the beginning of the year of 2017. It will include winter and

summer apparel for our customers to browse and purchase. So before the end of each year, the

new year’s product designs will be completed and given to Maximize’s suppliers in order to be

ready for the upcoming year’s sales. Each product will have a picture associated with it, as well

as different color schemes, descriptions, sizes, and prices. In the catalog, there will be an

introduction section explaining what Maximize’s goal is for the community and how it began. In

the second section, Maximize will include all of the sponsored events in a calendar format with

descriptions about the particular events. During the first year, Maximize will not be able to put

pictures into the catalog about the events but, for the next year’s catalog we will include the

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previous year’s events to show the customers what Maximize does for the community of Boston.

Of course if Maximize plans to fully extend itself towards the West coast, like San Francisco,

Maximize will include pictures of that community to reach that particular target market. If

Maximize decides to include sponsored athletes within the second year, there will be bios of each

athlete and a picture of them doing their sport and wearing Maximize gear.

For each catalog given, there will be a small sticker of our company logo placed inside of

the catalog as part of our promotion for the first catalog. Catalogs will be placed in the store

upon its opening day near the register and front of the store. If a customer orders a product online

and clicks on a link to include a catalog with the shipment, the catalog will be given to them free

of charge for the first purchase.

Social Media Implementation

Social media is huge in today’s modern world. That is why Maximize will always be up-

to-date with technology. Facebook, Twitter, and Instagram will be the main outlets for social

media for Maximize. Facebook will be constantly updated each day with pictures and posts

about everything that is going on with the store and within the community on Newbury Street.

Posts can range from posting about new products, flash sales, to celebrities and famous athletes

in the store. Twitter will be the first media site to post the flash sales as well as posting about the

store’s new products and so on like with Facebook. Instagram will be the place for most of the

pictures about the store, its new layout, design, clothing, staff, sponsored events, and all other

major updates about Maximize. Maximize will have staff members within the store taking

pictures now and then and posting important information for the customers to be aware of and be

excited about.

   

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Promotional Items and Gifts:

Maximize will incorporate the following items for marketing and promotional purposes:

1. Two booth tents with the Maximize logo printed

2. Two long fold-up tables

3. Four fold-up chairs with the Maximize logo printed

4. A cover sheet for the table with the logo printed

5. Stickers, big and small

6. Brochures about Maximize and upcoming events

7. Discounted items such as a t-shirt, long-sleeve, and a sweatshirt

8. Water bottles

9. Sweatshirts

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XVIII. Employee Handbook/HR Manual

Employee Handbook

   

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Table of Contents

Introduction

About the Company

Hours of Operation/Work Schedules

Attendance Policy

Leave of Absence Policy

Family Medical Leave

Pay and Compensation

Overtime

Vacation

Holidays

Personal Days

Sick Days

Funeral Leave

Jury Duty

Military Reserve Duty

Health Benefits

Equal Employment Policy

Termination

Drug and Alcohol Policy

Safety Policy

Workplace Security Policy

Dress Code Policy

Smoking Policy

Telephone and Computer Use Policy

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Introduction

Welcome to Maximize Peak Performance Athletic Apparel. This handbook was

developed to provide you with an information resource for common questions and concerns. If

you have questions or concerns about the policies outlined here, you should contact your

manager or Human Resources.

The policies stated in this handbook are subject to change at any time at the sole

discretion of the company and proper management levels. From time to time, you may receive

updated information regarding any changes in policy.

The contents of this handbook are not intended to create a contract or agreement between

Maximize and you. For those employees in a position covered by a collective bargaining

agreement, you should refer to the agreement which governs your terms and conditions of

employment.

There are specific procedures for many of the general policies stated in the handbook.

Please direct any questions to your manager, department head, or to Human Resources.

About the Company

Insert brief Company History. Maximize Peak Performance Athletic Apparel is a start up

company created by four students of the University of Colorado at Boulder.

Mission Statement: By providing athletic apparel that succeeds in both terms of functionality and

fashion, Maximize exists to assist athletes of all walks of life realize their absolute physical and

mental potential.

   

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The Company’s vision is to establish ourselves as a reputable and well respected athletic retailer,

continuing to serve the needs of both current and potential athletes while still adhering to our

companies values and maintaining our involvement in the community.

Hours of Operation/Work Schedules

The retail location is normally open from 10:00 A.M. until 9:00 P.M. Monday through

Friday and 11:00 A.M. through 11:00 P.M. on weekend. Certain employees may be assigned to

different work schedules and/or shifts outside of normal office hours. If an employee must be

outside of the office for non-business related reasons during their normal work schedule, they

should inform the proper manager.

Attendance Policy

Regular attendance is essential to the company’s efficient operation and is a necessary

condition of employment. When employees are absent, schedules and customer commitments

fall behind, and other employees must assume added workloads.

Employees are expected to report to work as scheduled and on time. If it is impossible to

report for work as scheduled, employees must call their manager before their starting time. If

your manager is unavailable, a voice message should be left. If the absence is to continue beyond

the first day, the employee must notify their manager on a daily basis unless otherwise arranged.

Calling in is the responsibility of every employee who is absent. Absence for three consecutive

work days without notifying the manager is considered a voluntary termination.

Leave of Absence

Employees are eligible to apply for an unpaid leave of absence if they have been a regular

employee of Maximize for at least one year and scheduled to work 20 hours or more a week. The

employee’s manager will make a decision on the leave request. The request for leave will be

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reviewed based on the reason for the request, previous attendance record, previous leave requests

and the impact the absence will have on the company and our overall performance.

Authorized leaves for illness or disability begin after employees have exhausted accrued

sick leave, vacation and personal holiday time. A personal leave of absence, if granted, begins

after vacation and personal holiday time have been used.

Human Resources can provide employees with which benefits, in addition to retained seniority,

can be continued during the leave. If an employee wishes to continue benefits, it must arranged

for directly with Human Resources.

If the request for leave of absence for personal reasons, the employee’s manager, with the

advice of Human Resources, will decide whether the current position will be held open, or if a

position will be made available upon the employees return from leave.

Family Medical Leave

All employees who have been employed at least twelve months, and who worked at least

1,250 hours during the twelve months prior to the leave request are eligible for an unpaid family

and/or medical leave of absence under the Family and Medical Leave Act of 1993 for a period

up to twelve weeks during a calendar year under the following circumstances:

• For the birth of a son or daughter of the employee and to care for such newborn son or

daughter, if completed within twelve months of the child’s birth;

• The placement of a son or daughter with the employee for adoption or foster care if

completed within twelve months of the placement;

• To care for the spouse, or a son, daughter, or parent of the employee, if spouse, son,

daughter, or parent has a serious health condition; or

   

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• Where a serious health condition makes the employee unable to perform the functions of

his or her job.

Employees ordinarily must provide 30 days' advance notice when the leave is

"foreseeable." We may require medical certification to support a request for leave because of a

serious health condition, and may require second or third opinions (at the employer's expense)

and a fitness for duty report to return to work. Taking of leave may be delayed if requirements

are not met.

For the duration of FMLA leave, Maximize will maintain the employee's health coverage

under the group health plan. Upon return from FMLA leave, most employees will be restored to

their original or equivalent positions with equivalent pay, benefits, and other employment terms.

The use of FMLA leave cannot result in the loss of any employment benefit that accrued prior to

the start of an employee's leave. For complete details employees should contact their manager or

Human Resources.

Pay and Compensation

Employees are paid on the 1st and 15th of each month.

New employees are required to complete an Employee's Withholding Allowance

Certificate (W-4). Employees must present their Social Security card to Employment when

completing the required forms. Optional forms employees may wish to file are paycheck direct

deposit authorization card, union or association dues card, and other deductible employee paid

benefits.

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Overtime

Non-exempt employees are eligible to receive overtime pay if they work more than 40

hours in a given week. Holiday, vacation, and sick time are not included in hours used to

determine overtime eligibility. Overtime pay equals 1.5 times and employee’s regular hourly

rate. All overtime must be approved the manager in advance.

Vacation

All full-time employees are eligible for vacation pay.

New full-time employees will receive a pro-rata number of vacation days based on one

day for each month worked in the hired calendar year, not to exceed 10 days.

In the first full calendar year and through the calendar year in which the employee’s 3

year anniversary of employment occurs, employees will receive 10 vacation days each year.

In the calendar year of the employee’s 4 year anniversary of employment, employees

will receive 15 vacation days each year.

In the calendar year of the employee’s 10 year anniversary of employment, employees

will receive 20 vacation days each year.

Up to 5 unused vacation days may be carried over into the next year. All other unused

vacation time will be paid out in the final paycheck for that year.

Employees should notify their manager at least one month in advance of taking vacation

time. All vacation requests are subject to manager approval. In addition, employees should

directly communicate vacation dates to co-workers to ensure customer needs are met.

Part-time employees who work on a regular schedule all year are eligible for vacation

benefits on a pro-rata basis based on the schedule above.

   

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Holidays

As a company, Maximize will observe the following holidays:

• New Year’s Day

• Memorial Day

• Independence Day (4th of July)

• Labor Day

• Thanksgiving Day

• Christmas Eve

• Christmas Day

• New Year’s Eve

In the event that one of these holidays falls on a weekend, Maximize will observe the

holiday on the Friday preceding or Monday following the actual holiday, depending on the

circumstances.

Personal Days

Employees are eligible for 4 paid personal days per calendar year. New employees will

accrue 1 personal day for every 3 months worked in the hired calendar year.

Personal days may be used at the employee’s discretion for religious holidays and

personal matters. Personal days not used by the end of the year will be paid out to the employee

in the final paycheck for that year.

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Sick Days

Sick days are provided for illness of the employee, their spouse or children. Employees

should use their personal days or vacation days non-illness related time off. All full-time

employees will receive sick days according to the following schedule:

Employees will be eligible for paid sick days after 6 months of employment. After 6

months of employment, employees will be eligible for one sick day for every two months

worked from date of hire, with a maximum of 5 days in their first year of employment.

Every succeeding calendar year, employees will be eligible for 5 sick days.

Sick days may be accumulated and carried over from year to year to a maximum of 10

days. All other unused sick days by the end of the year is forfeited.

Funeral Leave

Employees will be paid for up to five days to attend the funeral of a close relative, such

as a spouse, children, parents, grandparents, siblings and corresponding in-laws. If additional

time off is required, employees should talk to their manager.

Time off without pay may be provided so that employees can attend the funeral of

individuals other than those listed. Employees may take unused vacation or personal time but,

sick days cannot be used.

Jury Duty

Employees will be paid their full salary during an absence mandated by jury duty. If an

employee receives any compensation for this duty, they should present it to their manager as a

temporary payroll adjustment, unless prohibited by law. Employees must present a copy of the

Jury Summons to their manager.

Military Reserve Duty

   

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An employee who serves as a military reservist does not need to used other paid time off

for attending the first two weeks of military camp or for performing domestic military duty, such

as civil disturbances and disasters. Employee reservists should report the dates involved to their

manager.

Maximize will pay the difference between an employee’s full salary and their gross

military compensation for up to two weeks per year. Military compensation earned on weekends

is not considered and should not be reported.

Health Benefits

Full-time, salaried employees, their spouses and eligible dependent children are eligible

for health benefits on the first day of the month following 30 days of continuous employment.

For health benefits, full-time employees are defined as regular employees (excludes interns and

contract employees) who work exceeds 30 hours per week. Employees should consult the

separate materials prepared directly by the Maximize’s health care insurance company for details

of the plan.

Equal Employment Policy

It is the policy of Maximize to provide equal opportunity for all qualified persons and not

discriminate against any employee or applicant for employment because of race, color, religion,

sex, age, national origin, veteran status, disability, or any other protected status.

This policy applies to recruitment and placement, promotion, training, transfer, retention,

rate of pay and all other details and conditions of employment.

Employment and promotion decisions will be based on merit and the principle of

furthering equal opportunity. The requirements we impose in filling a position will be those that

validly relate to the job performance required.

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All other personnel actions including compensation, benefits, transfers, layoffs, recalls

from lay-offs, training, education, tuition assistance and recreation programs will be

administered without regard to race, color, religion, sex, age, national origin, disability, veteran

status, or any other protected status, in accordance with appropriate law.

Termination

Employees who voluntarily resign from Maximize are asked to provide at least two week

advance notice of their resignation. This notice should be in writing and should briefly state the

reason for leaving and the anticipated last day of work.

If a terminating employee is eligible for any incentive compensation, bonus, and/or

awards, they must be actively employed on the date the compensation, bonus or awards are

presented or paid, in order to receive the compensation, bonus or award.

Drug and Alcohol Policy

Maximize realizes that the misuse of drugs and alcohol impairs employee health and

productivity. Drug and alcohol problems result in unsafe working conditions for all employees

and customers. We are committed to maintaining a productive, safe, and healthy work

environment, free of unauthorized drug and alcohol use.

Any employee involved in the unlawful use, sale, manufacturing, dispensing or

possession of controlled substances, illicit drugs and alcohol on company premises or work sites,

or working under the influence of such substances, will be subject to disciplinary action up to

and including dismissal and referral for prosecution.

In addition, Maximize has developed and maintains a comprehensive Drug and Alcohol

Policy, which employees may obtain from Human Resources.

   

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Safety Policy

As a company, Maximize is sincerely interested in the safety and well-being of our

employees. We will make every effort to keep the office equipment in excellent condition and

make sure that all safety devices are working properly.

If, in spite of our efforts to ensure safe working conditions, an employee has an accident

or becomes ill on the job, it should be reported to the manager immediately. They will see that

prompt medical attention is provided.

Workplace Security Policy

We are committed to maintaining a safe and secure workplace. In order to maintain a

secure work environment, the company strictly prohibits employees and visitors from bringing

any firearm on company property. In addition, all visitors are asked to check in with the

receptionist. Failure to comply with this policy will result in disciplinary action up to and

including termination.

Dress Code Policy

Maximize maintains a business casual working environment. All employees should use

discretion in wearing attire that is appropriate for the office and customer interaction.

Smoking Policy

Maximize maintains a strict non-smoking policy within the workplace. Employees should

smoke only in those areas which are smoking designated, despite that we urge all of our

employees to maintain healthy lifestyles and should avoid smoking in order to achieve this.

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Telephone and Computer Use Policy

Maximize understands that when employees work during the week it is occasionally

necessary to conduct personal business during office hours. However, employees should limit

their personal use of the telephone and computer during office hours. Talk to your manager if

you have any questions as to how much is too much time. Because telephone and email systems

are provided by Maximize at its expense for business use, all messages sent by or received on

those systems are company documents. Maximize reserves the right to access and to disclose the

messages that you send or receive on the voice mail or e-mail systems. Employees should also be

aware that “deleted” messages from the computer screen may not actually be deleted from the e-

mail system. Employees who abuse this policy are subject to disciplinary procedures up to and

including discharge.

XIX. Sample Investment Contract

Maximize Investment Contract

On this (day) of (month) (year) Maximize and (Customer or Company) agree on the

exchange of equity between Maximize and (Customer or Company) under certain conditions:

1. General Terms

(Customer or company) will pay (x) $ amount for a given (percentage) of Maximize

ownership. The rights associated with the stock issued to the (customer or company) are the

following:

Dividends

Full ownership of the stock purchased along with full payments of dividends four years

after the issuance of the stock. Dividends will be paid on a quarterly basis starting four years

after the starting date of the agreement.

   

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Voting rights for the CEO

By purchasing this stock, (customer or company) will have the right to vote with other

shareholders for who will be the CEO and also, decide when to terminate the CEO or replace

him with someone else.

Shareholder Conflicts

If there is a conflict between one or more shareholders, the voting committee of the

shareholders and stockholders will meet and decide with the CEO of the company on what needs

to be done in order to resolve the conflict.

Evolution of voting rights

The board of shareholders will be constituted of original shareholders and external

shareholders. The group that will decide on changes that need to be made on the shareholders

voting rights will be the original shareholders of the company.

2. Term of Service

The agreement starts on (particular date) and is effective until the (termination date). A

notice should be sent at least 60 days in advance before either Maximize or (customer or

company) decides to terminate the agreement prior to the termination date discussed originally.

Customer Signature: Maximize Signature: Date:

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Side note

Our potential shareholders are looking at placing their money in our own hands in order

to gain success. They will want to have some return on their investment, in the form of money

and power in making decisions and controlling the company. The key is to attract our

shareholders with money and power but at the same time not let them take control of the

company and this is why issuing rules and an investment contract is very important so that

stockholders don’t do what ever they want and everyone in the company can work along the

same rules and guidelines in order to achieve the same goal.

Dividends

The dividends will be starting to be issued to the stockholders of Maximize only four

years after the starting date of the agreement because we will need time in order for our company

to grow and have the funds necessary for our company to pay our shareholders.

Voting rights for the CEO

We want our shareholders to feel a sense of participation in our company and to include

them in some important decisions such as who will run the company. Every shareholder will

have the right to vote for who will be the CEO and the person that is chosen will be the one that

will implement and decide of all the decisions related to the company.

Shareholder Conflicts

Conflicts need to be resolved very quickly and equally within shareholders. This is why

when there is a conflict, we will have meetings with all of our shareholders and the CEO in order

to find the right solution to implement since everyone has different ideas and opinions creating

various solutions.

   

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Evolution of voting rights

We really want our company to be protected from outsiders in a way and want to retain

control with the founders of Maximize, the “original” shareholders. Therefore, this is why the

“evolution of voting rights “ will be changed in the hands of the ones that created the company.

XX. Final Summary

Haley Putnam

While doing the project, I learned a few things over the semester. It is very important to

make sure there are deadlines set and stone so that each team member knows what they are

working on. Communication is a major quality for a group to have and that is exactly what we

had during this semester long project.

Working with data was sometimes a bit frustrating although I was able to extract

information from the Internet about retail trends, demands, and revenues in order to contribute

my part of the project. For example, the retail demand forecast and revenue analysis was based

solely off of past data from other companies such as Lululemon in order for me to accurately

proclaim the data. The process maps were not as difficult as I thought they would have been

initially. It is quite interesting to see how most processes around the world can be written down

in a simple, yet detailed process map. I did learn to use the correct symbols to develop the

flowchart for the forecasting process by referencing The Basics of Process Mapping book and as

well as what I learned from lecture and recitation.

Again, timing was of the essence and without setting deadlines, I knew the group would

not function as smoothly as it would have. Fortunately, I was put into a solid group that wanted

to achieve a good grade and therefore, we were able to come together weekly and meet-up to

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discuss the issues we were having during the process and/or the next submission requirements.

For future BCOR 2500 students, it’s important to get to meet with people as soon as possible to

pick team members. I suggest making sure that one communicates thoroughly with the possible

team members so as to make sure everyone is on the same page. Then, less problems will arise.

Jules Scharapan

Working with a group for one semester was a very interesting and challenging task

because every individual on the team has different ideas and opinions. It drives the group and the

project forward but at the same time creates some arguments on how the project should be done

and what deadlines to set. It is not very easy to work with people but what I learned is that no

matter how hard it gets and even if you are late on some deadlines and need to rush through your

work in a way, hard work will always pay off and coordination with team members in stressful

times is extremely important. One of the biggest challenges for me was being on time with the

work that had to be done.

Working with data was interesting and not extremely hard for me. The key is to organize

the data in categories. However, I found difficulties working with process maps because there is

just so much information and data to choose from to put in these different processes that describe

the actions of the business. My advices for future students of this class is to work hard, be on

time with the deadlines that the group agrees on, go to class to understand the concepts that apply

to the project and be clear on the goals of the team from day one.

Joel Hutzler-Perowsky

From working on this project I think that I was able to learn not just a lot about myself

and my own personal work habits, but I was also able to learn a lot about how I work and

   

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function in a group environment. Over the course of the semester I learned a lot about our

group’s work dynamic and not just how to finish the tasks delegated to us, but also I felt that we

were able to recognize how to most effectively assume various roles in our group which I think

was extremely crucial to our team’s strong rapport. In a general sense, my style of work and

work ethic is fairly casual and informal, however by working with my teammates over the course

of the semester I think that I was able to adapt my work habits to better math those of my team

members. I think that this not only helped the overall workflow of our group but really helped

me to learn how to better alter the way that I work in order to most effectively achieve the goal

that lies ahead.

In regards to working with data, its been a generally new experience for me as I have

never been a very numbers-oriented individual, however from taking this class I have learned

that I need to be a more numbers-savvy business person in order to really be an effective and

dynamic worker in today’s workplace. Out of our group’s four team members I would

confidently say that upon coming into this project I was probably the least comfortable in terms

of working with data. But despite this I think that by working with my teammates over the

duration of our project I have grown immensely in terms of working with numbers and various

forms of data.

Out of all the concepts that we studied throughout the course of the semester I felt that

studying and working with process mapping was probably my favorite. I especially enjoyed this

portion of the course because for me personally, the most interesting aspect of business is seeing

how everything all ties together in a general, macro perspective. I thought that it was extremely

helpful to look at the various process maps that myself and my group members drew up as it

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allowed us to grasp a more complete view of our business, and then from there recognize and

take the next necessary steps.

Upon looking back at my team’s time and project management skills, I would have to say

that this was absolutely one of our strong suits. As a group we were all very committed to getting

our work done and doing it well, and an inherent side effect of this was our incessant establishing

of deadlines and scheduling of group meeting times. From the very first day of working together

as a group, we recognized the importance of making our deadlines and realized that in order for

us to make these deadlines successfully while still turning in quality work we had to abide by an

earlier deadline in order to allow for proper editing and revision time before the actual deadline. I

think that this is just one example of how our group was able to look at our tasks and work

together to establish an effective and efficient project management plan.

If I were to give any advice or suggestions to future BCOR 2500 students I would first

and foremost strongly advise that they seek group members that are good, smart and hard

workers first rather than just fall into a group with their friends. I was fortunate enough to be in a

group with three other dedicated students who were my team members before my friends, and I

think that this allowed us to really buckle down and prioritize our work effectively. The other

piece of advice that I would provide would be to not get caught up in the excitement of the

project and lose sight of the overall, bigger picture of what your group is working on. I know that

personally our group would get focused on talking about small, insignificant concepts or ideas

for considerable amounts of time, but luckily someone was able to take a step back and realize

that we weren't using our time efficiently and bring our group back to focus. Besides these two

pieces of advice I would also urge any students taking this course in the future to try and not to

think about the entire project as a whole as the thought alone of a 100+ page project can be

   

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intimidating, but rather to break the work down within your group and within your personal

agenda, as it makes the whole project a lot easier to think about and less difficult to

conceptualize.

Jack Rexroth

Working with a group over a semester to complete the Retail Project, I learned the

importance of having a positive corporate culture. Throughout the semester our group

established a friendly yet focused culture that made us motivated to do the work and come to

meetings. All of us having very busy schedules, we learned the importance of time management

and communication in implementing an action plan.

When employing data, one thing I learned right away was how easy it was to get lost in

collecting an insane amount of data without necessarily even knowing what to do with it. While

this might be favorable by a large firm looking to utilize big data, I found that with my limited

resources I was often bogged down by simply collecting data for data’s sake. Once I got over the

data paralysis, everything began to move more fluidly.

Process maps proved to be a very proficient visualization of pertinent operational

functions. It was very helpful to generate a process map to go along with a write-up of the

process, as to create two channels of understanding. Process maps also serve as an excellent way

to find variations to the process that could improve efficiency.

Our group did an excellent job with time management. We were able to delegate the

duties in a very equitable manner so that everyone would be enthusiastic about completing their

work. Since we had a strong culture of inclusiveness and cohesion, the motivation to not want to

let the others down was very strong. We seldom had time management issues.

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Picking the right group for you is probably the most important part of the project. If you

can surround yourself with positive people with great work ethics, and you too are positive and

work hard, then you will find success. Take an open-minded approach to collaboration and the

rest will fall into place.

   

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