Hardly any cover page this is !

Arrow Printing and Publishing

Anurag Singh

Karthikeyan

Mohit Dugar

Rahul Sharma

Sarath Babu

Vaibhav Gangwar

IIM Rohtak

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 TABLE OF CONTENT

SI No. Topic Page No.

1. Cover page 1

2. Table of content 2

3. Letter of Transmittal 3

4. Executive Summary 4

5. Situation Analysis 5

6. Problem Statement 6

7. Options available 6

8. Criteria for evaluation 7

9. Evaluation of Options 8

10. Recommendations 9

11. Action Plan 9

12. Contingency Plan 9

Exhibits ??

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 Letter of Transmittal

August 1, 2017 2003 Formatted: Highlight

Mr. Sam Dunnett

Arrow Printing and Publishing

Burk’s Falls, Northern Ontario

Subject: [Report regarding next course of action for Arrow Printing and Publishing] why

brackets ? this is main text of subject !

Sir, no dear ?

We have analyzed the current environment and the growth prospect of Arrow Printing and

publishing. We would like to recommend that Arrow should expand into four colors Formatted: Strikethrough
Formatted: Strikethrough, Highlight
specialtyservice market with a partnership of an experienced salesperson. Formatted: Strikethrough

Please find enclosed ourrecommendation report on the most appropriate future course of action

for your publishinghouse. If you should have any questions concerning this report and the

analysis please feel free tocontact the undersigned.Enclosure: Final Report

Yours sincerely,

Group H

Enclosure ?

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 Executive Summary

In the given case Mr. Sam Dunnett has to take an important decision related to the future of

Arrow Printing and Publishing. Mr. Dunnett, who has given 24 years of his life for the growth

and success of the company, has to make the decision from the various options available in front

of him. While making the decision he has to consider his own interests and aspirations, interests

of his family and the brand image, future and growth prospects of company as well. Various

options in front of him include selling the company to his son Peter Dunnett, selling it to an

external buyer or to continue working with the company by expanding the business.

Considering all the major factors which are aspirations and professional interests of Mr. Dunnett

and Peter Dunnett, the reputation of Arrow in the market and the future growth prospects of

Arrow. We have recommended that the Arrow should go with the expansion into four colors

specialty service market. It should also partner with an experienced sales person. This will give

more challenge to Mr. Dunnett in the work and also he’ll be able to continue the name of Arrow

in market while working with his son Peter.

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 Situational analysis

Arrow Printing and Publishing has been running successfully for 24 years in an economically

depressed area of Burk’s Fall, Northern Ontario by Sam Dunnett, a person with 45 years of

experience in the industry. Due to mundane work, Sam was feeling unchallenged at work and his

desire to continue with work was dampening. The future of Arrow Printing and Publishing is

therefore thought of. A financial and environmental analysis is to be done for the future course of

Arrow. Arrow is a company that stands tall because of it clientele base. A majority of its

customers are repeated majorly because of sensitivity to consumer needs. His quick adaptability

and high value for service to customers is the major reason, his customers are little less sensitive

to his pricing strategy which is relatively higher than the competitiors in the market with the likes

of Kwik Copy, FedEx Kinko, Local printers and recently in In-Home Printing. The credit period

provided by Arrow and personal relation maintained by Mr. Sam also holds integral to the

success of the Printing House. The new customer accession rate is pretty low because of his

pricing strategy. The Majority of his revenue comes from Black and white printing, holding 70%

of the total revenue, however Speciality color work holds a good margin vertical as well with

commission as high as 25 % earned on it. Mr. Sam did not believe much in marketing and hence

his marketing expenditures were limited. Also, Majority of his marketing expenditure was spent

in promoting a particular event, mostly charitable cause. . The current management is also

actively involved in politics, implying that the opportunity cost of acquiring this involvement,

because of time devoted to Arrow need to be considered in any future decision about Arrow.

Very very short ! not covering detail of the important pointers

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 Problem Statement

What decision should Mr. Sam Dunnet take regarding the future course of action for Arrow

Printing and Publishing, keeping in mind his own personal and professional interests and the Formatted: Strikethrough, Highlight

future growth of the company? Formatted: Strikethrough

The Options

Mr. Dunnett has the below three options -

1.Sell Arrow to his son Peter Dunnett

2.Look for an external buyer to sell the company

3.Expand its business into the specialty services market- four color specialty web work and

partnering with an experienced sales person

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 Criteria for Evaluation

The following criteria were considered for evaluation of options:

 Arrow’s Future Plans – Its Established brand image and continuity

 Financial Impact on Business

 Impact on Mr. Sam’s family, specifically his son Peter

 Impact on Sam Dunnett’s personal and professional life you mean interests ? Formatted: Highlight

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 Evaluation for plans Grammatically wrong heading / wrong head according to format given Formatted: Highlight

1.Sell Arrow to Peter Dunnett:

Peter has also been a contributor to the success of Arrow. As he has been a regular at Arrow, it

would not change much if he takes succession as he himself manages 75% work. He, however

would not be able to contribute fully because of his diverse professional interests.The 5000$ /

month can also be easily paid by Peter. In this way Sam can also focus on his political career and

also being rest assured of the name of Arrow in the market.

2. Seek An External Buyer For Arrow -Suppose the buyer has a national brand, the reputation of

Arrow may actually improve in regionsoutside Burk’s Falls. Reputation of Arrow within

Burk’sfalls would remain same on the active roleplayed by current management. Overall, this option

would have a slight positive impact on Arrow’sreputation and growth. On the other hand, this option

may have a neutral impact on the personal andprofessional life of Sam Dunnett. While Sam

Dunnett can actively pursue his political interests, hisexit from Arrow may have a negative emotional

impact.

3. Expand into the specialty services market by seeking partnership from an experienced

salesperson - The entry into the 25% margin four colour speciality services with the assistance of

an experienced partner would create a new stream of customers and revenue for Arrow. It would

also lead to a boost in the image and reputation of Mr. Sam. Besides giving his the desired time

for his political career, this would give Sam the challenge he thought was missing from his job.

However, there might me a conflict of interest as the vision of both the partners may not align

with each other. Overall, it may also assist Peter , who could continue the work and following his passion.

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Very shallow discussion. No discussion on the financials, though it is one of the criteria !

Recommendations

We recommend Mr. Dunnett to expand the Arrow’s business into four- color specialty web work

by partnering with an experienced sales person. This would bring him the challenge which he’s Formatted: Highlight

looking for in the work, also Peter can keep working in business and the reputation of Arrow will

be retained as well.

Action Plan

 Prepare a timeline for the expansion

 Look for the experienced sales people in the industry to partner with

 Negotiate the terms of agreement with the prospective partners to retain 51% share

 Apply for the funding through the government of Ontario’s Community Futures program

 Purchase the required equipment and upgrade the building for four- color specialty web

work

 Start printing popular products such as brochures, books and magazines

Contingency Plan

 If the action plan suggested doesn’t work, Mr. Dunnet can sell the company to Sam

Dunnett

 Make formal agreement with Peter to pay $5000 monthly until the purchased was paid in

full

NO EXHIBITS !!

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