Consulting Project for Ollivier Security Systems Inc.

Abstract

Initially we met with our advisor and client to try and come to a conclusion as to what it was the client would be looking for from our deliverable. This process involved some back and forth through e-mail and a few ZOOM sessions. The main point that came across is that our client was looking to expand their services into an area that similar businesses have tried before. Our client currently provides security alarm services, but wants to expand into what is called a holistic provider. There they provide both alarm and guard services that work together rather than as potential substitutions. The only issue is that other businesses have struggled to be successful in providing that service. Our client believes they will be able to. With that in hand, out first leg of research involved surveying the current customers of the client to gauge whether or not there was any interest in this kind of service, and if there were local business attempting to offer the service. We found there is an interest and that some of the larger companies in the industry are attempting to expand into this as well.

vii

In addition to looking at ways for our client to brand these new security services we also looked at how they can improve on other aspects of the company. Mainly, issues of client concentration, intense industry rivalry, and problems with accounts receivable turnover. We came to the conclusion that the client must find ways to diversify the types and number of clients to avoid being handicapped by a downturn in a specific industry. By researching other potential fields that could benefit from both the security services they already provide and the holistic approach they hope to provide, we found some potential fields. We also discussed ways in which to lessen the effects of industry rivalry. I personally contributed by conducting an industry analysis on the security guard industry, the industry our client will be stepping into. I also looked at the major threats affecting our clients firm and how those would translate into our recommendations. I drafted the competitive analysis for the paper, looking mainly at the industry as a whole. Since there are a large amount of firms in the industry, it did not seem feasible to try and compare a few competitors to our client. Finally I drafted the recommendation and implementation for how they should go about marketing their new holistic service to both existing and future clients. All members of the team peer reviewed each other's sections as well. As mentioned, the first recommendation is how they will market their new services. The second is to lower their A/R turnover rate to help improve cash flows. Next, in order to deal with their client concentration issues we recommend an expansion into HOA and multi-family properties that utilize guard and security services. In addition to expansion we recommend running reports to make sure the client concentration does not get worse. Our final recommendation is for the client to begin positioning themselves so that they are able to become and acquirer of other security business through asset sales.