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Final Project: BANK OF AMERICA

Bank of America

Wassim Zhani

Dr David Robinson

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Radio City Lofts
March 6, 2012

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College of Business
Stratford University

March 3, 2012

Mr. Jason Widen


Radio City Lofts, LLC.
120 N 5th Street
New York, NY 00101

Dear Mr. Widen,

On behalf of Sycamore Business Advisors, we would like to thank you for the
opportunity to help your organization with your consulting needs. The Sycamore
Business Advisors believe that our consulting services and strategic management
assistance will be of great help to your organization.

As Sycamore Business Advisors, we specialize in creating strategic management plans


for small to mid-sized organizations. Our highly developed, not-for-profit strategic
management consulting company hopes to help your organization to effectively and
efficiently operate in the Terre Haute housing market.

Sycamore Business Advisors strives to be a leader in quality consulting and strategic


management assistance. Sycamore Business Advisors seeks to become a respected
member of the Terre Haute community as well as an important resource for your
organization.

If you have any questions or concerns about our services provided to you, please feel free
to contact us at any time.

Sincerely,

Wassim Zhani, Project Team Leader Julie Alig, Associate Director

Dr. Arthur Sherwood, SyBA Advisor

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Table of Contents

Contents
Executive Summary.......................................................................................................................... 7
DIRECTIONAL ANALYSIS .................................................................... Error! Bookmark not defined.
Business Model Analysis: ............................................................................................................. 8
Mission. .................................................................................................................................... 8
Vision........................................................................................................................................ 8
Values ....................................................................................................................................... 9
Stakeholder Analysis: ................................................................................................................... 9
Potential for Sustainable Competitive Advantage: .................................................................... 11
EXTERNAL ANALYSIS ......................................................................... Error! Bookmark not defined.
General Environment: ................................................................................................................ 12
Political/ Legal ........................................................................................................................ 12
Economic ................................................................................................................................ 13
Socio-cultural. ........................................................................................................................ 14
Technology ............................................................................................................................. 15
Industry ...................................................................................................................................... 16
Customers .............................................................................................................................. 16
Competitors ........................................................................................................................... 16
Supplier and Partnerships ...................................................................................................... 20
Opportunities and Threats ......................................................................................................... 20
SWOT Analysis. .......................................................................................................................... 21
Summary .................................................................................................................................... 23
INTERNAL ANALYSIS .......................................................................... Error! Bookmark not defined.
Capabilities ................................................................................................................................. 25
Marketing ............................................................................................................................... 25
Management.......................................................................................................................... 26
Finance & Accounting. ........................................................................................................... 26
Resources ................................................................................................................................... 28
Tangible Assets. ..................................................................................................................... 28

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Intangible Assets. ................................................................................................................... 28
Strengths .................................................................................................................................... 29
Location.................................................................................................................................. 30
Amenities ............................................................................................................................... 30
Experience of Investors. ......................................................................................................... 30
Marketplace ........................................................................................................................... 31
Weaknesses ............................................................................................................................... 31
Pre-Leases. ............................................................................................................................. 31
Building Scarcity. .................................................................................................................... 32
Imitability ............................................................................................................................... 32
Work Distribution. ................................................................................................................. 33
GAP ANALYSIS ................................................................................... Error! Bookmark not defined.
Marketing Gap ........................................................................................................................... 34
Management Gap ...................................................................................................................... 34
Marketing Plan .............................................................................. Error! Bookmark not defined.
Purpose .................................................................................................................................. 36
Marketing Plan (See Appendix C) .......................................................................................... 36
RECOMMENDATIONS ....................................................................... Error! Bookmark not defined.
Marketing................................................................................................................................... 39
Management.............................................................................................................................. 40
Create a Vision Statement. .................................................................................................... 40
Create a Statement of Values. ............................................................................................... 42
Create an Internship. ............................................................................................................. 43
References ..................................................................................................................................... 46
APPENDICES ...................................................................................... Error! Bookmark not defined.
APPENDIX A ................................................................................................................................ 49
Stakeholders .......................................................................................................................... 49
APPENDIX B ................................................................................................................................ 50
Vigo County Job Situation ...................................................................................................... 50
Housing Market Analysis: Selling Price .................................................................................. 51
Apartment Price by Square Footage ...................................................................................... 52
Apartment Price by Features/Amenities ............................................................................... 52

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External SWOT Analysis ......................................................................................................... 53
APPENDIX C ................................................................................................................................ 54
Radio City Lofts Marketing Plan .......................................................................................... 54
Executive Summary:............................................................................................................... 54
Stage 1: Market Research ...................................................................................................... 54
Stage 2: Mission Statement/Slogan ....................................................................................... 55
Stage 3: Goals/Brand Image................................................................................................... 55
Stage 4: Promotion ................................................................................................................ 56
Stage 5: Competitive Advantage............................................................................................ 60
Radio City Lofts Flyer.................................................................................................................. 62
Radio City Lofts Brochure: Outside ............................................................................................ 63
Radio City Lofts Brochure: Inside ............................................................................................... 64

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Executive Summary
The goal of the Radio City Lofts consulting project is to create a strategic plan in three

functional areas that will assist Mr. Jason Widen and his partners to open up the housing

project.

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Directional Analysis

No matter the organization, clear direction is needed in order to create, maintain,

or develop success. The Radio City Lofts Team of Sycamore Business Advisors

performed a Directional Analysis to determine the organizations current situation, the

desired situation, and what actions are necessary to reach the desired situation.

Business Model Analysis:


The Directional Analysis is comprised of three main components. The first is an

analysis of the business model. A business model describes what, when, and how the

activities of a business are performed. Its the activities within the business model that are

intended to create or maintain a high level of value to the customer. The parts of the

business model analysis include the mission, vision, and value statements

Mission.
The mission statement describes the services Radio City Lofts provides,

including for whom, where, and how. The mission is the reason the organization exists.

The mission statement is more focused on the present than the next statement, the vision

statement.

The mission statement of Radio City Lofts reads as follows: Our mission is to

develop a unique living environment with a feeling of character in downtown Terre

Haute which will provide maximum return on investment for shareholders

Vision.

The vision statement is a solid statement of the ultimate dreams of Radio City

Lofts. This statement consists of the long term goals of the company and can be thought

of as a statement which describes where Radio City Lofts sees itself in 5-10 years or

more. Its more vague and abstract than the mission statement. Radio City Lofts is

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without a vision statement. More information on vision statements and how to create one

can be found in the management recommendations section within this report.

Values.

The last statement, the statement of values, describes Radio City Lofts

convictions on how business is to be conducted and how people are to be treated inside

and outside of the company. Radio City Lofts is without a statement of values. More

information on the statement of values and how to create one can be found in the

management recommendations section within this report.

Stakeholder Analysis:
The second component of the Directional Analysis is the stakeholder analysis.

The purpose of the stakeholder analysis is to identify the needs of the stakeholders with

whom Radio City Lofts intends to benefit. Stakeholders are individuals or groups,

internally and externally, that may affect or be affected the activities of Radio City Lofts.

This relationship occurs any time value is created or captured.

The stakeholder analysis is an incredibly important tool used by Sycamore

Business Advisors to determine who Radio City Lofts intends to deliver value to, directly

or indirectly. It not only identifies the needs of stakeholders but which stakeholders are

most important to the organizations survival. After the stakeholders are identified, the

value exchange is then acknowledged. Value in the realm of strategic process

consultation is, the unique characteristics created by the organization that appeal to each

customer individually. Put in the form of an equation, the worth, or value, of a product is

as follows:

Customer Benefit Customer Cost = Worth of Product

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As mentioned above, the stakeholder analysis identifies internal and external

stakeholders which Radio City Lofts intends to create and deliver value to, and captures

value from. The chart below lists the internal and external stakeholders of Radio City

Lofts. An explanation will follow.

Internal Stakeholders External Stakeholders


Jason Widen Customers/Tenants
Michael McCourt
Donald Turner

The internal stakeholders consist of the three initial partners who joined forces to

tackle the Radio City Lofts project while the external stakeholders we discovered are the

customers, or tenants. These external stakeholders are the one and only group that Radio

City Lofts exists to benefit, other than investors.

We next take a look at the value exchange within this situation. We will begin

with the value exchange from the perspective of Jason Widen and his partners.

Value given Value Received


Initial Capital Return on Investment
Experience Experience
Time
Effort

As you can see from the chart above, Jason, Donald, and Michael all provided the

initial capital, experience, time, and effort. In return you can expect a return on

investment and further experience.

The next chart depicts the value exchange from the perspective of tenants of

Radio City Lofts. An explanation will follow.

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Value Given Value Received
Money Place of living
Occupancy Amenities
Better Quality of Life

In this value exchange the tenants deliver value to Radio City Lofts in the form of

money, primarily for rent, and occupancy. In exchange the tenants receive not only a

place of living but amenities such as a washer and dryer, refrigerator, dishwasher, etc.,

and a better quality of life provided by Radio City Lofts unique apartments.

Potential for Sustainable Competitive Advantage:


After the business model and stakeholder analyses have been conducted, our team

asked the following question: Does this model offer the potential for sustainable

competitive advantage? With the information we gathered we were able to take a look at

Radio City Lofts ability to create/maintain a sustainable competitive advantage.

In the context of this report, sustainable competitive advantage is the

organizations ability to deliver and capture value for its customers over a long, ideally

indefinite, period of time. Also, the value a company provides must be a rarity, or value

that none or only a small number of competitors is able to provide.

Our team researched local apartments and housing options within a similar price

range. None offered everything Radio City Lofts does which is twelve feet high ceilings,

washer and dryer, stainless steel appliances, wood floors, storage, secured entry, large

windows, and a location that is downtown.

To simply answer the question: Does this model offer the potential for

sustainable competitive advantage? We believe so.

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External Analysis

The purpose of the external analysis is to examine opportunities and threats that

exist in the organization. Three things are identified in an external analysis, including

General Environment, Industry, and Partners and Alliances. Furthermore, the general

environment covers the PEST factors including, political/legal, economic, socio-culture,

and technology. It is important to determine the factors that affect the organization so that

they can become aware of their opportunities and threats.

General Environment:
Factors within the political and legal section include any laws, regulation, judicial

decisions, and political forces in effect at the federal, state and local government.

Businesses are constantly dealing with political and legal issues. There are many

political/legal forces that will lead to opportunities and threats for Radio City Lofts.

Political/ Legal

Housing Fairness Act.


In 2009 the congress passed the Housing Fairness Act regulation. Housing

Fairness Act is to authorize funds to prevent housing discrimination through the use of

nationwide testing, to increase funds for the Fair Housing Initiatives Program, and for

other purposes. The bill never becomes a law, but if does it would put pressure on the

business (GRO).

Building Inspections Department.


The Building Inspections Department is the primary source of issuing inspections

permit in the county. The inspections department issue's Building, Electric, Plumbing and

Demolition permits, and performs inspections on all constructions (County).

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Building Permits Required.
The law and the regulation of Vigo County require a construction permit issued

by the Department of Engineering before the construction begins. Failing of issuing

permits will result in no less than one hundred dollar fine (Chapter 7).

Provisions for Flood Hazard Reduction.


The Vigo County known as flood prone areas, and the Vigo County law require

modification of the housing building to prevent lost in people or property. In any new

construction or substantial improvements must be anchored to prevent flood.

Furthermore, all building must be constructed with materials and utility equipment

resistant to flood damage. Also, the buildings must be constructed by methods and

practice to minimize the flood damages. Additionally, the water supply system must be

design to eliminate infiltration of flood waters into the system; as well as the sanitary

sewage systems (Chapter 7)

Economic.

Economics can affect business in a positive or a negative way, depending on the

current situation of the economy. With current state of the economy, most businesses are

feeling the pressure from unstable economy. The unemployment rates are higher than

ever, the demands of high standers living are minimized. In the current situation there are

71975 occupied jobs in Vigo County. On other hand, 7726 people unemployed in the

Vigo County, with 9.7 percent of unemployment rate (Labor). The table below shows

the number of jobs and the income in different industries (Workforce).

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Industry Job Description Income

Education Services Engineering Teachers, Postsecondary $25.00 ave/hr


(24 companies
1,338 jobs)
Finance & Accountants and Auditors $22.78 ave/hr
Insurance ( 162 Loan Officers $48.08 ave/hr
companies 1,578 Insurance Sales Agents $23.37 avg/hr
jobs)
Healthcare & Registered Nurses $22.61 avg/hr
Social Assistance ( Physical Therapists $54.75 avg/hr
309 companies Radiologic Technologists and Technicians $13.50 avg/hr
8,248 jobs) Pharmacy Technicians $13.00 avg/hr
Licensed Practical and Licensed Vocational Nurses $15.15 avg/hr

Management of Financial Manager $21.63 avg/hr


Companies & General & Operations Managers $15.63 avg/hr
Enterprises ( 12 Industrial Production Managers $40.87 avg/hr
companies 300 Engineering Managers $38.46 avg/hr
jobs) Medical & Health Services Managers $29.57 avg/hr

Manufacturing (132 First-line Supervisors/Managers of Production & Operating $14.97 avg/hr


companies 7,509 workers $12.83 avg/hr
jobs) Machinists $12.01 avg/hr
Welders, Cutters, Solderers & Brazers $13.25 avg/hr
Packaging and Filling Machine Operators and Tenders

In addition, around twenty percent of the Vigo County residents have a

Bachelors degree (Workforce). Studies show that in 2009 there were more than 47,706

housing units available in Vigo County alone. Furthermore, the homeownership rate

between the periods of 2005-2009 is sixty five percent (Workforce)

Socio-cultural.
Socio-cultural aspects of society have major impacts on organizations in any

industry. Cultural values are continually changing regarding the demographic situation.

Socio-cultural aspects include traditions, values, and population characteristics. Theses

aspects determine whether an organization is capable of being successful in a particular

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region of the world. The socio-cultural aspects are very important in determining if an

organization can be successful and maintain longevity.

In 2010 the population of the Vigo County estimated around 107,848 people

(Bureau ). There are 17,807 people between the ages 18-24 attending colleges.

Additionally, there are 26,502 people between the ages 25-44 living in the Vigo County.

The majority of the ethnicity in the Vigo County are white with 88.3% and 6.9 black and

Asian with 1.7% and 1.3% others. The RCL could take advantage to attract these young

professional whom attending the school or just starting their professional career

(Bureau).

Technology.

Technology is changing every day. Businesses should be aware of the

opportunity and the threats caused by the change of technology. The Apartment Renter

Technology Survey indicate seventy eight percent of people have a computer in their

apartments, while eighty five percent subscribe to high speed internet. People intend to

give the internet high priority in their apartments (NMBC). Another survey indicate

that fifty eight percent of people have a wired landline in their apartment, while thirty

eight percent consider it their primary phone (NMBC).

Residents want human interaction when voicing compaints. The automated

system is useful to use for the business owner and it is useless for the costumers.

Customers want someone to feel and care about their problem and find solution.

Technology brought great software that makes tracking of budget easier than ever. The

Guide+ is software that could be installs in desktop, and the manger could track the

budget and issue reports about the income (Souza).

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Industry
Customers.

Radio City Lofts are targeting young professionals and graduate students between the

ages 25-40 with annual income starting from $35,000 a year. According to the Census

Bureau the estimated population in the Vigo County in 2010 is 107,848 (Bureau). The

median resident age is 32 years old (Bureau).

Indiana State University is one of the main attractions of graduate students in the

Vigo County. With more than ten thousands students enrolling every year in graduate and

undergraduate class, Radio City Lofts would have great chance to reach out for one of

their targets. With dorms that overloaded with students; and the demand of hosing is high

in the downtown area. The location of Radio City lofts gives a unique opportunity for the

students to live in the downtown area and blocks away from the ISU campus. Indiana

State University intends to move to the downtown area in the soon future. Next year the

new collage of business will move to 7th and Cherry Street, and it will give the tenant

students in Radio City Lofts shorter distance to the campus compare to other students live

in the dorms.

Competitors.

The City of Terre Haute has many different schools surfing the Vigo County. For

example, Indiana State University, Rose-Hulman, and Ivy Tech locating in the Vigo

County. Furthermore, there are numbers of companies located in the Vigo County. With

high demand of housing the competitions are high. The two main competitors are housing

market and apartment complexes.

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Housing market.
The housing market in Terre Haute City grow like never before. People inted to

buy houses in the Vigo County than montyly rent. In addition, the average price paid for

homes in Vigo County is increasing. It was $102,424 in 2010, the highest ever, topping a

2006 high of $100,475 (Real). The average price in Vigo County was $80,000 in 2010,

down from a high of $83,250 in 2006. In 2010 the median home sale in Indiana was

$112,000 (Greninger). Compared to Indiana as a whole, the number of new listings in

Vigo County decreased 3.57 percent over the last year. However, the number of pending

sales in Vigo County past months is up 15.48 percent over February 2010. In the state,

the pending sales down 6.6 percent. The number of closed sales is down 6.35 percent in

Vigo County and statewide it is down 6.6 percent. The median sales price is up 0.13

percent in Vigo County, while statewide it is up 1.8 percent (Greninger). (Please refer

to the chart at the top of next page)

$120,000.00

$100,000.00

$80,000.00

$60,000.00 2010
2006

$40,000.00

$20,000.00

$-
Price Median Median Sale in Indiana

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Most of the houseing that on the markets are located in east, north, and south of

the downtown area. Which gives and advatage to the housing business in the downtown

areas for the location. The average monthly rent for house in the Vigo County $560.

Which is very compaetive price compaier to the apertments. The average year of built of

house in the Vigo County is 1920. The percentage of the householders in the Vigo

County is 59% and 40% renting (Population).

Apartment Complexes.
Apartment complexes are one the biggest competitors for Radio City Lofts.

Compared to the unique services and the amenities that they provide made them number

one choice for the customers. The apartment complex intends to gain the costumers trust

by providing them with unique and special amenities that no other real estate company

could provide. The space that the apartment complex gives the costumer the freedom do

walk with their pets around the garden, or gives their children space to play in their free

time. The table below shows the different in amenities between Radio City Lofts and the

apartment complex. (Please check Appendix C for more information)

The apartment complexes offer a verity of different life style for ether the students

or young professional. Mostly the apartment complex is built in a spacious place where it

gives their tenants a variety of space to expand their freedoms. After comparing

apartment complexes with Radio City Lofts it has become clear that the complexes offer

more square feet in the one and two bedroom, and Radio City Lofts offer more in square

feet in three bedrooms.

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1800
1600
1400
1200
1000
Competitors
800
RCL
600
400
200
0
1 Br 2 Br 3 Br

Price is one of the most attractive things when it comes to new tanet. People

intend to look for the best price that match their budget before they sign up. The prices in

the apartments complex depends on the space and the number of the bathrooms. The

prices between RCL and apartment complex rughly the same. The diffrents start from

thirteen to a couple hundred, again the price depend on the featuers. The graph below

depicts the correlation in prices.

$1,800.00

$1,600.00

$1,400.00

$1,200.00

$1,000.00
Competitors
$800.00 RCL

$600.00

$400.00

$200.00

$-
1 Br 2 Br 3 Br

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Supplier and Partnerships
The industry is comprised of suppliers, competitors, and customers. Subcontractor

plays an important role in Radio City Lofts project. According to Mr. Widen the

estimated cost for redoing the building is 1.1 million dollar. The constriction includes

painting the interior and the exterior of the building, shaping the size of the units, and

designing each of the sixteen units. Bank is main money supplier for the project. The loan

estimated around 1.2 million dollar. Mr. Widen said in the similar project that he done in

the past he bought the appliances from whole seller at whole seller price. In Radio City

Lofts Mr. Widen planned to buy the appliances the same way that he bought it in the

previews projects.

There are several investors in Radio City Lofts. They all invest in different

amounts money with different percentages. The investors are Jason, Michael, Donald,

and ISU Foundation. With these investors on board they would drive the project

successfully with their backgrounds and their expertise.

Opportunities and Threats


The opportunities and threats are identified in order to determine Radio City Lofts

sustainable competitive advantage. It also can help identify how the organization can

move from the current state of readiness towards desired state. It is also important to

identify the threats in order to show what could hinder the operation from moving

forward. Finally, these are prioritized by largest gap to smallest gap.

After identifying the external factors, the opportunities and threats were

identified. One of the major threat is the banks would not give enough money to supply

the project. This could cause delay on the project construction and find other source or

investor. Another threat is the housing market. People intend to buy not to rent houses in

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the Vigo County. This could force the business to collapse. Another major threat that is

facing Radio City Lofts is the cost of the apartments for each month. The high price that

RCL charges their tenant roughly expensive compared to the competitors. This could

cause a vacancy to some units which prevent the business to break even.

Radio City Lofts has a unique opportunity by locating in the downtown area. The

location could give the new tenant the convenience of walking distance to Indiana State

University campus and the business in the downtown. Another major opportunity is the

population of Vigo County. With 107,848 people lives in Vigo County with median

income of $37,876 a year, Radio City Lofts would have a great chance to fill their units

every year. In addition, the building concept would add a great opportunity for Radio

City Lofts to shine in the middle of the downtown with the unique and beautiful design.

SWOT Analysis.
A SWOT analysis provides an assessment of strengths, weaknesses, opportunities,

and threats that exits in the organization. The strengths and weaknesses evaluate the

internal factors that can influence the ability to satisfy customers. Strengths are identified

as the core competencies, while weaknesses refer to any limitation the organization could

encounter. Conversely, opportunities and threats are independent for the organization and

can include items not directly correlated to the company itself; these would be considered

external factors. Opportunities specifically refer to the favorable conditions that exist in

the environment that can help the organization advance if acted don properly. However,

threats are the barriers that may prevent the organization from moving forward to reach

their objective and goals. With a thorough examination of each of the four areas, an

organization can identify how to convert weaknesses to strengths and threats to

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opportunities. Furthermore, ensuring that strengths and opportunities match will generate

a competitive advantage in the marketplace in order to satisfy customer needs and

desires. By completing the SWOT analysis, an organization can evaluate its current

perspective with the actual state they are operating at. A Visual Representation of the

SWOT analysis can be found below.

Strengths Weaknesses

Location Pre-leases
Amenities Scarcity of building for
Experience future opportunities
Creating their own Imitability
Marketing
Niche

SWOT

Opportunities Threats

Location Banks
Population Competitor
Market Price

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Summary
The external analysis has identified important opportunities and threats that the

organization fact in the outside world. For the Radio City Lofts, forces that were

identified were in political/legal, economic, socio-cultural, and technology. Political

forces include Housing Fairness Act, Building Inspections Department, Building Permits

Required, and Provisions for Flood Hazard Reduction. Economics factors include

employment, unemployment, jobs, and income. Socio-cultural forces include population,

ages, and education rate. Technology forces include needs of internet, software use, and

humane representative.

The industry that the Radio City Lofts exists in consists of customers,

competitors, and suppliers. Customers include young professional and graduate student.

Competitors include housing market and apartment complexes. Suppliers include

subcontractors, whole sale of appliances, and bank. The partners include Jason, Michael,

Donald, and ISU Foundation with different amounts and percentages.

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INTERNAL ANALYSIS

Upon the completion of the directional analysis, the Sycamore Business Advisors

team conducted an internal analysis of Radio City Lofts. The intent of the analysis was

to identify the firms resources and capabilities that currently or will potentially

contribute to its competitive advantage. The internal analysis is crucial in formulating a

strategy because the strategic position is a path that focuses decision makers on the future

of the organization. A firms future success depends on its ability to develop capabilities

that are useful in obtaining competitive advantage. The focus of the following section is

to identify the capabilities and resources that affect Radio City Lofts competitive

advantage.

Identifying Capabilities and Resources

Capabilities are qualities, abilities, or features that a firm can use or develop to

create potential. Capabilities allow a firm to utilize its resources, which are the

relationships or tools needed to support the capabilities. In order to maintain competitive

advantage, it is imperative to identify the capabilities and resources that are most

important or lacking in a firm. Capabilities and resources can be either basic or core.

Basic capabilities and resources are those that merely satisfy the minimum standards and

can be easily outsourced to an outside company. Core capabilities and resources, on the

other hand, are those that are essential to a sustainable competitive advantage. Thus,

these capabilities and resources are likely to be completed internally and are likely never

to be outsourced. The following sections will identify the basic and core capabilities and

resources of Radio City Lofts.

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Capabilities
The knowledge and technical skills that a company possesses in order to create

products and services make up its basic capabilities. To fully understand the capabilities

of Radio City Lofts, Sycamore Business Advisors examined each functional area

separately. This assisted the team in understanding how each area could be enhanced to

utilize its full capabilities and lead to profitability and sustainability. Detailed

suggestions for how to improve these areas will not be included in this section, but rather

in the GAP analysis and recommendations sections. The purpose of this section is

primarily to indicate the current situation for each of the important functional areas.

Thus, it will provide us with valuable information that will help develop worthwhile

recommendations.

Marketing.

Despite the fact that very little marketing for Radio City Lofts has been

conducted to this point, the initial interest from passers-by of the property is very

encouraging. The building signage has been effective in creative interest, but a more

extensive marketing approach is needed to further enhance the awareness of Radio City

Lofts. Thus, the team has developed a comprehensive marketing plan, which will be

outlined later in the marketing recommendations section. This plan will lay out a step-

by-step approach to creating an effective marketing strategy. Due to Mr. Widens

previous experience in marketing, the team believes that the management group of Radio

City Lofts will be able to effectively follow through with the plan we will recommend.

The location and uniqueness of this property present a great opportunity for the investors.

By instituting an effective marketing plan, the likelihood for success and sustainability in

the Terre Haute market is greatly increased.

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Management.

The current management team of Radio City Lofts is comprised of Mr. Jason

Widen, Mr. Donald Turner, and Mr. Michael McCourt. Each of these individuals brings

to the partnership a very distinct set of skills which will be utilized in many phases of this

business. During the construction stage of the project, Mr. Turner will act as the general

contractor. His extensive experience in the construction industry is very valuable for

Radio City Lofts because it eliminates the need to hire an outsider to fill this position.

Mr. McCourt is also utilizing his many years of experiencing in the finance industry to

lead his fellow partners through the financing negotiations. Based on the teams

conversation with Mr. Widen, it appears as though once Radio City Lofts is operating, he

will hold the responsibility of performing the day-to-day management and operations of

the property. In the recommendations section of this report, the team will provide some

suggestions, including an internship program, which can be used to help remove some of

the responsibilities from Mr. Widen.

Finance & Accounting.


The three investors of Radio City Lofts are currently doing their due diligence in

finalizing a finance plan which presents them with the most beneficial financing terms.

Mr. McCourt, who has 25 years in the commercial mortgage banking industry, will be

primarily responsible for acquiring financing for the property. The investors have met

with at least four local bank financing officers to seek a construction loan. The intention

of the investors is to refinance the construction loan to a fix term loan after the

construction is complete. Mr. Widen has informed the team that some bank finance

officers have been hesitant to approve a loan request due to the fact that this property is

the first of its kind in the Terre Haute market.

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There have been some recent developments that have forced the investors to

reconsider their financing options. The main development occurred when the hard costs

of the construction came back approximately $200,000 higher than expected. This

caused the investors to begin to look at the possibility of adding more investors to their

ownership group because there was no chance of receiving a larger loan from the banks.

According to Mr. Widen, two distinct options have been discussed by the

partners. The first is a mezzanine loan structure. Under this scenario, an addition

investor would provide a loan to the partnership and would result in a repayment with a

preferred rate of return at a proposed rate of 12 percent. The second option is a full

partnership interest. Under this scenario, the additional investor would provide a

$200,000 investment to the partnership. In return, the individual(s) would earn a 40

percent interest in Radio City Lofts. This plan has the potential for the additional

investor to earn an 18 to 20 percent internal rate of return over a two to three year

investment period. The partners have been in contact with several potential investors. A

resolution appears to be in the works.

Mr. Widen has not informed Sycamore Business Advisors of the partners plans

for an accounting system. However, it is assumed that some bookkeeping software will

be used to record expenses and rent revenue. In the finance and accounting

recommendations portion of this paper, we will present some suggestions that could

potentially help the partners with the current financing efforts as well as the accounting

responsibilities upon opening.

27
Resources
Resources are the tangible and intangible assets that are necessary for a company

to conduct business. Tangible assets are capital, physical plant and machinery, buildings,

etc. Examples of intangible assets, on the other hand, are knowledge, brand name,

marketplace relationships, etc.

Tangible Assets.
The main tangible assets for Radio City Lofts are its building and surrounding

property, and its capital. The investors were fortunate to acquire the old TWI building at

a very low price. In addition, they were able to acquire enough surrounding property to

provide space for 30 parking spots near the building. The capital provided by the

principals is also an important tangible asset that will get the business off the ground.

The latest projections provided by Mr. Widen indicted that the partners have put forth

$364,000 worth of capital into the business.

Intangible Assets.
Although a business cannot be successful without sufficient tangible assets, the

intangible assets it possesses may be equally important. The investors of Radio City

Lofts possess knowledge and experience in areas which coincide with the necessary areas

for this project. These include leasing, marketing, financing, and construction. The

knowledge base of the investors should be a driving force in making Radio City Lofts a

profitable and competitive business for many years to come. Finally, Radio City Lofts

has a prime location which will allow it to be easily viewable by anyone traveling down

7th Street. This is evident due to the large number of calls from interested individual who

have witnessed the advertisements while driving by the property.

28
Core Capabilities and Resources

After examining the basic capabilities and resources of Radio City Lofts,

Sycamore Business Advisors developed its core capabilities and resources. A core

capability is something that a firm does better than anyone else in its industry. A firm

often derives its competitive advantage from its core capabilities. A core capability must

meet three distinct criteria. First, it must provide potential access to a wide variety of

markets. Next, it must make a major contribution to customer value. Finally, it must be

difficult to imitate due to its complex combination of skills and technology.

Sycamore Business Advisors believes that Radio City Lofts core capability is

providing a unique loft style apartment in downtown Terre Haute. No one else in Terre

Haute is providing consumers with the types of living styles that they are offering. The

company must utilize this core capability to ensure that it can sustain a competitive

advantage over industry competitors.

Strengths
In this section, Sycamore Business Advisors will identify the strengths of Radio

City Lofts. The team analyzed the material provided by Mr. Widen to determine items

that are favorable or advantageous and have the potential to provide a competitive

advantage over industry competitors. Four main strengths were identified which will

greatly assist in building a competitive advantage in the Terre Haute real estate market.

29
Location.

One of the greatest strengths of Radio City Lofts is its location. With the recent

resurgence of downtown Terre Haute, the team believes that the prime location will allow

for continued occupancy and overall success of the business venture. Not only is the

property in close proximity to several shops and restaurants, it is located within walking

distance of Indiana State University. Thus, it provides a great opportunity to attract

several undergraduate and graduate studentsthe main target market for the company.

Amenities.

Another key strength of Radio City Lofts is its amenities. Few, if any,

competitors offer the same amenities, especially twelve foot ceilings, large windows, and

wood floors. These amenities provide tenants with an alternative to the traditional

apartment floor plans which are prevalent in most of the other apartment complexes near

Indiana State University. In addition, tenants will be provided with stainless steel

appliances, high speed internet, and secure storage. The team is confident that these

amenities will attract several students who are looking for something other than dorm-

style living.

Experience of Investors.
Financing and operating a real estate property can be difficult. Thus, having

partners with experience and expertise in key areas is very important. Mr. Widens

experience in marketing, management, and leasing is quite valuable as these are the most

important aspects in operating a profitable real estate property. Mr. McCourts

experience in financing large transactions is likewise valuable as the largest current

obstacle for Radio City Lofts is the financing of the construction. Finally, Mr. Turners

experience in construction of apartment complexes and other facilities is important


30
because he has knowledge of what it costs to perform certain construction processes.

This was evidenced by Mr. Turner recognizing that the estimate for the electrical

component of the renovation was greatly overvalued. With Mr. Turner as the general

contractor for this project, the investor group can be assured that they are receiving the

best rates possible from their contractors and subcontractors. It is evident that all key

areas of the project are covered by the expertise of the investors.

Marketplace.

The investors of Radio City Lofts are creating their own marketplace in the Terre

Haute vicinity. The modern luxury feel that the company is trying to portray is the first

of its kind in the city of Terre Haute. This concept differentiates itself from the

traditional style that is utilized in most properties. Instead of the usual square rooms with

drywall and carpet, Radio City Lofts will feature spacious, open designs that are likely to

be appealing to the younger generation. This appeal could likely attract undergraduate

and graduate students to inquire about the property.

Weaknesses
In addition to determining the strengths of Radio City Lofts, Sycamore Business

Advisors analyzed weaknesses of the company, mainly obstacles that could hinder the

achievability of competitive advantage. The team determined there to be four potential

weaknesses that could prevent the ultimate success of Radio City Lofts.

Pre-Leases.
The ultimate goal of a real estate company is to achieve full occupancy on a

consistent basis. For a new business venture, such as Radio City Lofts, it is even more

important to ensure that all units stay full due to low levels of capital and cash flows that

usually exist in the initial stages of business.

31
Mr. Widen provided the team with data which revealed that approximately 60

individuals have called to inquire information about the units. However, only two or

three interested parties have signed a lease agreement. This is discouraging because the

banks are more apt to provide loans at lower interest rates if the property owner can

indicate pre-lease agreements have been signed by future tenants.

In addition, most other rental properties in the area have begun to pre-lease their

units. Thus, by not acquiring pre-leases in the next few weeks, Radio City Lofts may

miss out on several individuals who are interested in living in their units. The uncertainty

concerning the beginning of construction will also likely deter interested individuals from

signing agreements. Most individuals do not want to take the chance of signing a lease

for a unit which may or may not be ready when they are scheduled to move in.

Building Scarcity.
Mr. Widen has expressed interest in acquiring additional property in the

downtown Terre Haute area for use in future projects. He has not informed the team of

any ongoing negotiations or inquiries for other property, but it is assumed that he is

keeping his eyes open for additional properties. Unfortunately, the team does not foresee

a significant amount of buildings that will become available over the next couple of

years. If the investors were to find an additional property, they would likely have to

settle for building units above a commercial unit. However, this provides the opportunity

to collect rent revenue from a local shop or restaurant owner, who is more likely to stay

in one location for a long period of time.

Imitability.

To maintain competitive advantage over competitors, it is crucial that a firms

business model is not easily imitable. If an outsider can achieve equal or larger success

32
than Radio City Lofts by spending close to the same amount of money, than the business

operation is easily imitable. The team expressed these concerns to Mr. Widen at a

meeting earlier this semester. He stated that there is a low chance of imitability due to

the amount of effort and cash investment it would take to develop a business similar to

Radio City Lofts. Pursuing a project of this magnitude requires a large investment of

money as well as time.

Work Distribution.
Sycamore Business Advisors has analyzed the various functional areas of Radio

City Lofts. Based on conversations with Mr. Widen, it appears that he will be conducting

the majority of the organizational tasks for the firm. In addition to managing the

property, Mr. Widen will also be controlling the marketing and human resources tasks.

Due to Mr. Widens diverse business ventures, he is often forced to be out of the state or

the country for extended periods of time. Thus, the team questions how he will be able to

commit the necessary time that it will take to operate Radio City Lofts. It appears that

this heavy workload for Mr. Widen could hinder the overall successfulness of Radio City

Lofts.

Although Sycamore Business Advisors is not privy to the partnership agreement,

it appears that Mr. Widen is doing more than his fair share of the operations. It is likely

that this is the desire of all of the partners, however the team believes it could be a

hindrance. However, the team has designed the framework for an internship program,

which would allow a college student to perform certain tasks that could remove the

burden from Mr. Widen. A detailed synopsis of this program will be identified in the

management recommendations section.

33
Marketing Gap
A Gap analysis was performed on Radio City Lofts to determine where the

company stands with regards to competition. A line scale of zero-ten was used; zero

being the lowest or worst and ten being the highest or best. The requirements to obtain a

rating of ten are as follows; all rooms filled with people from target markets, have an

established brand image of luxury, advertising across multiple mediums social media

being the most important, and upon tenant move-in a two week turnover rate should be

established. Having these factors in place will earn a rating of ten and be considered the

best in the business.

The current situation for Radio City Lofts has been determined to be a rating of 5. This

shows that the company is performing a fair amount of advertising, no social media

though, they have a small number of pre-leases, and little brand image established. The

recommendations section was created in order to take the business from its current

situation to being the best in the business.

Management Gap

Low 0 3 5 7 10 High

0=Not performing 3= Performing but hurtful to the company; 5=Average across market;

7=Performing above competition; 10= Ideal situation

Current situation

Rating = 4

34
Our consulting group has decided Radio City Lofts in their current state in concern to

their management are a 4 on a scale from 1 to 10. We have labeled Radio City Lofts a 4

due to the amount of management the business requires to operate, but is only managed

by one partner. As of now Jason is the only partner working the front end of the business

which also includes the marketing, human resources, and daily operations.

Desired Situation

Rating = 8

Radio City Lofts should be operating at an 8 on a 1 to 10 scale to better improve

their management area of business. Sycamore Business Advisors believe for Radio

City Lofts to compete at the necessary level they should be operating at an 8. This is

their best case scenario for surviving in their market.

35
Marketing Plan

Purpose
The marketing section of this project was developed in order to help Radio City

Lofts with the current project as well as provide information that will be of value for the

next project. Throughout the semester we have created a marketing plan, performed

market research, and developed a set of recommendations based on a GAP analysis. This

section will include an overview of the marketing plan and detailed information about the

GAP analysis as well as the recommendations.

Marketing Plan (See Appendix C)


A marketing plan was created to help develop a strategy for Radio City Lofts.

This plan details information about the target markets, set goals for the company, gives

options and recommendations about promotion, and defines Radio City Lofts competitive

advantages. Through the use of this plan Radio City Lofts will be able to obtain a

prestigious brand image that is of value to the company.

The first section of the marketing plan is market research. A survey was created in

order to find information about the already chosen target markets. The information deals

with consumer willingness to buy, consumer purchasing power, and demographic

information. There were a total of 109 respondents, 48% undergraduate students, 38%

graduate students, and 14% young professionals. The scope of our survey was aimed at

students given that the previous survey provided more information about young

professionals. The surveys were distributed to two undergraduate classes and two

graduate classes within the College of Business at Indiana State University. Surveys were

also handed out at a Terre Haute Young Leaders meeting. The results from this survey

are attached in the appendixes.

36
The second section of the marketing plan focused on a slogan. With Radio City

Lofts having no tagline, we created one that is in line with the current mission statement

and competitive advantage factors. The new slogan developed is A new standard of

living. This will help to create the brand image of the company.

The third section set specific goals for the company in three areas; general,

annual, future. The general goals include; becoming the market leader in Terre Haute and

providing the most luxurious and comfortable apartments available. Because Jason is

breaking the mold of the apartment industry in Terre Haute, we feel as though these are

very obtainable goals and should influence his brand image. Annual goals included; pre-

leasing all units to people from the established target markets and to advertise across

multiple mediums specifically social media with Facebook and Twitter. These goals

should be met within the next six months, though social media should be addressed much

sooner. Finally, the future goals include; developing a brand image that has a monetary

value and maintaining a two week turnover rate for tenants. By creating a valued brand

image the company will be to sell or re-finance for a much higher rate than the fair

market value.

The fourth section deals with promotion. For this section a mixed media push

strategy was used. This includes radio, print, and online promotion in combination with

the large sign already on the building. For each medium a detailed price list is given

along with some suggestions about specific ways to use each medium to attract the

correct customers. A list of options for pre-lease incentives was also given. This is fully

laid out in the marketing plan which is attached in the appendix.

37
The last section of the marketing plan defined Radio City Lofts competitive

advantages. A total of four were defined and explained. The first advantage factor is

location, being located in the heart of downtown Terre Haute gives the company an edge

of competition and allows tenants to easily walk to many of their favorite restaurants,

shops, and bars as well as Indiana State Universities campus. The second factor was

luxury. The idea of bringing luxury to a city that has little of it will create a large amount

of interest in itself. By promoting this through all media forms the company will be able

to position itself correctly. The third factor is having a young appeal or feel. By

renting out to certain individuals in the target markets the complex will have a small

group feel and be a comfortable place for tenants to call home. The last factor identified

was the historical building. The history and old feel of the building will contribute to the

luxury factor as well as to help the brand image become established.

38
Recommendations
Marketing
The recommendations section was made with marketing plan and GAP analysis in mind.

The purpose of the current recommendations is to provide guidance as to obtaining a

GAP rating of ten. There are four current recommendations that we have established.

The first is to develop the brand image. This will be done by using a push strategy

to obtain market interest from different directions at one time. By properly using the new

slogan and keywords the company can set its position in the mind of the customer. The

second recommendation is to develop social media. Keeping the specific targets in mind,

Facebook and Twitter are the most used forms of media. By developing these sites Radio

City Lofts can connect better with its potential customers and allow for an easy share of

information. The third recommendation is to push pre-leasing. By offering incentives to

pre-lease you build up a reputation and create hype around the service. This should

translate to awareness and ultimately help to fill the complex. The last recommendation is

to reorder the target markets. Through the use of the survey we have found that graduate

students are the most willing to purchase this service. They have the capital and are a

growing group with the annual expansion of Indiana State University. The undergraduate

section should also move up into the main targets and young professionals be dropped to

a sub-target. Our analysis of the survey shows that many young professionals either

already own a house or do not want to live in another apartment.

Further, we developed a set of recommendations to help with future projects. This

is a list of three factors that should provide an advantage in the next project. The first

future recommendation is to perform market research earlier. This project had already set

target markets and the survey was used to determine information about those markets. If

39
market research is done earlier the target markets would be able to be chosen based off of

the results, then additional research can be done to find out relative information about the

target market. The second recommendation is to specify the mission statement. By

specifically stating this on your site and social media sites you are showing that the

statement is of value to the company. Also, this creates a more professional appeal and

will attract the appropriate audience. The last recommendation for future projects is to

make sure that social media is kept up to date. Information is shared across the web very

quickly and people have grown accustomed to having updated information readily

available. By keeping up with your customer base they will remain happy and loyal. If

the sites fall behind and lack updates customers will get bored and move on, possibly not

returning to your site for an extended amount of time.

Management
As defined by oxforddictionaries.com, management is the responsibility for and

control of a company or similar organization. As explained in the management gap

analysis, Radio City Lofts is currently at a 4 on the number line. In the following

paragraphs we will provide recommendations we believe will help Radio City Lofts close

the gap from 4 to 8.

Create a Vision Statement.


Described in the directional analysis section a vision statement is a solid

statement of the ultimate dreams of Radio City Lofts. This statement consists of the long

term goals of the company and can be thought of as a statement which describes where

Radio City Lofts sees itself in 5-10 years or more.

Unlike a mission statement, a vision statement doesnt describe whom, where, and

how. Rick Maurer, a renowned change management consultant, explains in his article

40
How to Create a Vision (or Compelling Goal) Statement facilitates goal setting and

planning and has the power to align functional areas across the company. We feel a

vision statement could have a positive impact on the way Radio City Lofts shapes its

future. Below is an outline borrowed from the aforementioned article by Rick Maurer on

how to hold a vision meeting, which entails creating a vision statement.

Before you begin, you must determine who needs to be in the room for the

meeting. We feel that the partners already involved with the project would make great

attendees.

I. The Meeting

a. Introductions

b. Introduce the players

c. Discuss the purpose of the meeting

II. Set the Stage

a. Hold a conversation that focuses on the question Who is the customer for

the vision? or Who is going to use this vision?

III. Establish Mission (Radio City Lofts has a mission statement)

IV. Create a First Draft Vision Statement

a. Think of a vision statement as a one to two page narrative of what you

want the company to be. Have those in the meeting take a minute to relax

and think of ways to answer the question discussed earlier. Have everyone

write down their thoughts and discuss them together afterwards.

V. Determine Your Values (This will be discussed in Values a section

dedicated to creating a statement of values)

41
VI. Dilemmas

a. Identify issues that cant possibly be resolved from the first draft of the

vision statement.

VII. The Final Statement

a. Articulate a final draft of the vision statement. If you know someone who

is a great writer or someone who can proof read your final draft, have

them do it. Doing that will free up more time for you to focus on the

business.

Create a Statement of Values.


We talked about values statements in the directional analysis. This statement

dictates how business is to be conducted and how people are to be treated inside and

outside of the organization. We believe that creating a clear statement of values will give

Radio City Lofts guidelines on how to manage dilemmas.

Again we will be using ideas provided by Rick Maurer in how to create a

statement of values. The following paragraphs fall into the outline above under section V

and begin with the question In order to be successful, what values do we need to

follow? This question can be answered through asking a few more questions.

What values are implied in our mission and vision statements?

Which of these values are absolutely critical

What would it look like if we were living by those values?

And finally What would it take for us to live by those values?

Again, we feel that through creating a statement of values Radio City Lofts will

be in a better position to successfully face challenging dilemmas in the future.

42
Create an Internship.
On internship.coms list, 10 Benefits to Starting an Internship Program one will

find increase productivity take advantage of low cost labor and find future

employees among some of the reasons why creating an internship is a great idea.

Creating an internship program is a little more involved than making a list of the

advantages. In the following paragraphs we will share ideas on creating and

implementing an internship program. Along with the ideas we offer, we have attached a

copy of the U.S. department of Labor Wage and Hour Divisions fact sheet on Internship

Programs Under the Fair Labor Standards Act. This will provide further guidelines on

creating an internship within the confines of the law.

Creating a program takes some long-term planning. If you are planning on

creating an internship for an academic year you must create guidelines on when

applications are due and how long the internship will last. Take into consideration the

amount of time it will take to screen and select applicants. Keep in mind also that equal

employment opportunity laws apply to hiring student interns.

Another issue is supervision. Internships are a learning experience for those

involved and we suggest that, especially in the beginning, considerable time is taken to

mentor and teach the intern. Weekly progress meetings or coaching sessions are

suggested.

Next on the list in creating a successful internship program is establishing

meaningful assignments. Tasks and assignments should be challenging and plentiful. You

are doing both yourself and the intern a disservice if you are only providing them with

busy work. Along with meaningful assignments, creating measurable learning objectives

43
is necessary. An example of a measurable learning objective as taken from

internweb.coms article Designing an Effective Internship Program is The intern will

produce a marketing plan for XYZ product line. The objective is clear and it can be

measured in a number of ways. Proper documentation of these objectives is

recommended.

One of the biggest issues in creating an internship program is how the intern will

be compensated. A paid internship is similar to a part time job. All the procedures for

compensation, hiring, and firing lawfully must be followed and proper documentation

(i.e. tax information, work eligibility forms) must be turned in to the Department of

Labor. If you so choose to create an unpaid internship, a set of guidelines must be

followed:

1. The internship, even though it includes actual operation of the facilities of the

employer, is similar to training which would be given in an educational

environment;

2. The internship experience is for the benefit of the intern;

3. The intern does not displace regular employees, but works under close

supervision of the existing staff;

4. The employer that provides the training derives no immediate advantage from

the activities of the intern; and on occasion its operations may actually be

impeded;

5. The intern is not necessarily entitled to a job at the conclusion of the

internship; and

44
6. The employer and the intern understand that the intern is not entitled to wages

for the time spent in the internship

If these factors are met, an employment relationship does not exist and minimum

wage and overtime provisions dont apply. Please refer to the attached document for any

further information on the Department of Labors guidelines on internships.

If Radio City Lofts is to post an internship to Indiana State Universitys Sycamore

Career link, the steps are listed below.

1. Visit www.career.indstate.edu

2. Click the Get Linked tab on the left hand column of the

screen.

3. Choose the employer

4. Register using all relevant information requested

Further explanation on how to register an internship at Indiana State University as

well as an agreement form can be found at:

http://www.indstate.edu/psychology/docs/internshipAgreementForm.pdf

45
References
GPO. "H.R. 476, THE HOUSING FAIRNESS ACT OF 2009." U.S. Government

Printing Office. U.S. Government Printing Office. Web.

<http://www.gpo.gov/fdsys/pkg/CHRG-111hhrg56239/pdf/CHRG-

111hhrg56239.pdf>.

County, Vigo. "Vigo County, Indiana // Building Inspections Department." Vigo County,

Indiana // Homepage. Vigo County, Indiana. Web. 01 Dec. 2011.

<http://www.vigocounty.in.gov/department/?fDD=11-0>.

County, Vigo. "Chapter 7 - Building & Construction Regulations." Terre Haute. Terre

Haute. Web. <http://www.terrehaute.in.gov/departments/city-clerk/city-code-by-

chapter/Chapter%207.pdf/view>.

Labor Statistics. "Terre Haute, IN Economy at a Glance." U.S. Bureau of Labor

Statistics. Bureau of Labor Statistics. Web. 01 Dec. 2011.

<http://www.bls.gov/eag/eag.in_terrehaute_msa.htm>.

"Workforce Overview." Terre Haute Economic Development Corporation | Terre Haute,

Indiana. Terre Haute Workforce. Web. 01 Dec. 2011.

<http://www.terrehauteedc.com/workforce>.

"Vigo County QuickFacts from the US Census Bureau." State and County QuickFacts.

U.S. Census Bureau. Web. 01 Dec. 2011.

<http://quickfacts.census.gov/qfd/states/18/18167.html>.

"Economy & Demographics." Economy & Demographics. Terre Haute Economy &

Demographics. Web. <http://www.terrehauteedc.com/economy-a-demographics>.

NMBC. "Apartment Renter Technology Survey - NMHC." Home Page - NMHC.

46
NMBC. Web. 01 Dec. 2011.

<http://www.nmhc.org/Content/ServeContent.cfm?ContentItemID=4236>.

Souza, Lawrence A. "THE IMPACT OF NEW TECHNOLOGIES ON SPACE,

OPERATIONS AND REVENUES." Online posting. The-commercial-group.

The-commercial-group. Web. <http://the-commercial-

group.com/uploads/7_Impact%20of%20New%20Technologies%20on%20Space,

%20Ops%20and%20Revs.pdf>.

HOUSING

"Terre Haute Real Estate Market." ForecastChart.com Home Page. Forecast Chart.

Web. 01 Dec. 2011. <http://forecast-chart.com/estate-real-terre-haute.html>.

Greninger, Howard. "Foreclosures Are Still Hampering Terre Haute Housing Market."

Foreclosures Are Still Hampering Terre Haute Housing Market (2011). Print.

"Terre Haute, Indiana (IN) Profile: Population, Maps, Real Estate, Averages, Homes,

Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime, Moving, Houses,

News, Sex Offenders." Stats about All US Cities - Real Estate, Relocation Info,

House Prices, Home Value Estimator, Recent Sales, Cost of Living, Crime, Race,

Income, Photos, Education, Maps, Weather, Houses, Schools, Neighborhoods,

and More. CIty Data. Web. 01 Dec. 2011. <http://www.city-data.com/city/Terre-

Haute-Indiana.html>.

"Housing." Terre Haute Economic Development Corporation | Terre Haute, Indiana.

Terre Haute Housing. Web. 01 Dec. 2011. <http://www.terrehauteedc.com/why-

terre-haute/community-overview/housing>.

47
10 benefits of starting an intern program. (n.d.). Retrieved from

http://www.internships.com/employer/resources/setup/benefits

Staff, I. (n.d.). Designing an effective internship program. Retrieved from


http://www.internweb.com/design-an-internship-program/

Maurer, R. (n.d.). How to create a vision (or compelling goal) statement. Retrieved from
http://www.rickmaurer.com/wp/wp-content/uploads/2011/01/CreatingVision.pdf

Freshbooks; painless billing. (2011). Retrieved from http://www.freshbooks.com/

48
APPENDIX A
Stakeholders

Internal Stakeholders External Stakeholders


Jason Widen Customers/Tenants
Michael McCourt
Donald Turner

Value Exchange: Initial Partners

Value given Value Received


Initial Capital Return on Investment
Experience Experience
Time
Effort

Value Exchange: Customers/Tenants

Value Given Value Received


Money Place of living
Occupancy Amenities
Better Quality of Life

49
APPENDIX B
Vigo County Job Situation
Industry Job Description Income

Education Services Engineering Teachers, Postsecondary $25.00 ave/hr

(24 companies

1,338 jobs)

Finance & Accountants and Auditors $22.78 ave/hr

Insurance ( 162 Loan Officers $48.08 ave/hr

companies 1,578 Insurance Sales Agents $23.37 avg/hr

jobs)

Healthcare & Registered Nurses $22.61 avg/hr

Social Assistance ( Physical Therapists $54.75 avg/hr

309 companies Radiologic Technologists and Technicians $13.50 avg/hr

8,248 jobs) Pharmacy Technicians $13.00 avg/hr

Licensed Practical and Licensed Vocational Nurses $15.15 avg/hr

Management of Financial Manager $21.63 avg/hr

Companies & General & Operations Managers $15.63 avg/hr

Enterprises ( 12 Industrial Production Managers $40.87 avg/hr

companies 300 Engineering Managers $38.46 avg/hr

jobs) Medical & Health Services Managers $29.57 avg/hr

Manufacturing (132 First-line Supervisors/Managers of Production & Operating $14.97 avg/hr

50
companies 7,509 workers $12.83 avg/hr

jobs) Machinists $12.01 avg/hr

Welders, Cutters, Solderers & Brazers $13.25 avg/hr

Packaging and Filling Machine Operators and Tenders

Housing Market Analysis: Selling Price

$120,000.00

$100,000.00

$80,000.00

$60,000.00 2010
2006

$40,000.00

$20,000.00

$-
Price Median Median Sale in Indiana

51
Apartment Price by Square Footage

1800
1600
1400
1200
1000
Competitors
800
RCL
600
400
200
0
1 Br 2 Br 3 Br

Apartment Price by Features/Amenities

$1,800.00

$1,600.00

$1,400.00

$1,200.00

$1,000.00
Competitors
$800.00 RCL

$600.00

$400.00

$200.00

$-
1 Br 2 Br 3 Br

52
External SWOT Analysis

Strengths Weaknesses

Location Pre-leases
Amenities Scarcity of building for
Experience future opportunities
Creating their own Imitability
Marketing
Niche

SWOT

Opportunities Threats

Location Banks
Population Competitor
Market Price

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APPENDIX C
Radio City Lofts Marketing Plan

Executive Summary:
The goal of this plan is to help develop a strategy that can be used for promoting
Radio City Lofts. The plan was made to help the current project under construction. Our
team performed market research, developed goals for the company and brand image,
established a slogan, created a mixed media advertising approach, and distinguished the
companys competitive advantages. We hope you find this plan valuable.

Stage 1: Market Research

Market Research.
o Market research was done in order to assure that the company had
consumers willing to purchase the service and that the company was
directing its efforts toward the correct groups of people.
o For this project a simple survey was put together to find answers about
segmentation, consumer willingness to buy, and consumer purchasing
power. The survey was distributed to undergraduate and graduate students
at Indiana State University as well as young professionals in the Terre
Haute area.

Target Markets.
o There were two main targets chosen for this project and one sub-group of
targets. The two main consist of;
Undergraduate students of ISU: age 18-22 that have a household
income above $40,000.
Graduate students of ISU: age 22-25 and an income level higher
than $20,000 annually.
The sub-target market consist of;
Young professionals: age 25-40, who are employed, and
have an income level higher than $35,000 annually.
o Due to the nature of the business and the service provided the target
markets were designed to be very broad. This will help in the eventually
filling of the complex as well as to help the brand image develop.
o The analysis of the surveys is presented in the excel sheets attached to this
document.

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Stage 2: Mission Statement/Slogan
The mission statement should set the stage for long-term development, growth of
Radio City Lofts, and eventually how you want to be remembered. It should guide
the actions of Radio City Lofts, the overall goal, provide a path, and guide
decision-making. It is the reason for Radio City Lofts existence and vision of
what you want to be. All aspects of this plan have been based around the
statement below.

Mission Statement:
o Blending utility with simple, elegant design, each of our 16 apartments
provides a full feeling of character, comfort, and beauty. Our tall ceilings
and large windows push this further, drawing in stunning views of
downtown Terre Haute, giving residents a true fusion of light, life, and
space. Our spaces are living spaces, spaces valued by residents and
admired by guests.
Slogan:
o A new standard of living.

Stage 3: Goals/Brand Image

General Goals:
o Provide the most luxurious and comfortable downtown apartments in
Terre Haute.
o Become the market leader of luxury apartments in Terre Haute.

Annual Goals:
o Pre-lease all units to the established target markets.
o Advertise across at least 4 medians. (print, radio, billboard, internet)
Have 1000 followers on Facebook and Twitter combined.

Future Goals:
o Develop a brand image that has a monetary value.
o Maintain a two week turnover rate.
Brand Image: The goal of developing our brand image is to establish that Radio
City Lofts is a place of prestige, luxury, and comfort for working young
professionals as well as graduate/undergraduate students. More people should be
turned away than accepted, creating a prestigious feel. The customer service
needs to be very high to go along with the luxury feel; tenants should feel taken
care of. All aspects of the building, even those not in the rooms, should provide a
feeling of comfort and luxury for the tenants.

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Stage 4: Promotion

Below are some suggestions that could be useful on this project. We used a mixed
media strategy to try and specifically target the segments chosen.

Radio Stations:

102.7 FM (Adult Contemporary)


92.7 FM (Country/Rock Mix)
95.9 FM (Classic Rock)
100.7 FM (Mainstream Mix)
Rates:
$16-21 for a 30 second ad, ran 1 time.
Holiday package is $300 for a 30 second ad that runs
through the Thanksgiving/Christmas holidays on 2 stations,
continuously airs.
Sport package is $300 for a 30 second ad that runs
November through March, continuously airs during local
high school and ISU games.
Sponsorship is $300 for a 30 second ad that runs 1 month
and continuously airs, you may choose any station for it to
air on.
Contact the marketing manager Bill Cain; email
bill.cain@mwcradio.com

Website Ads: Recommended

Apartmentguide.com
Rentals.com
Apartments.com
Rent.com
The prices listed on the next page come from a company
that runs both apartmentguide.com and rentals.com

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By adding $35 they well advertise the property on more than 30
websites such as; yahoo and google.
For contact visit:
https://shop.rentals.com/Adstore/PropertyInformation
http://www.listonapartmentguide.com/

Facebook: Recommended

Facebook business page are free and easy to set up. This page
requires an e-mail account, log in information, a picture, and a
quick description. This can be done in a matter of minutes and
maintenance/updating is minimal. The sign up portion also allows
you to link a current website.
The target markets that were chosen are the on the leading edge of
the people that use social media. By entering their domain you will
generate much more buzz and have a better chance at achieving
the set goals.
This can be done very simply by visiting the link below:
https://www.facebook.com/pages/create.php
From here Social Plugins are used to connect people with your
Facebook page as well as your website. Your website can be
directly connected through Facebooks authentication process; this
will also provide additional security for the link.
Social plugins consist of items such as the Like button,
Activity Feed, and Comments. This will provide activities
for consumers to do while looking at your sites and will
keep them interested and able to share more thoroughly.
These Plugins are done through HTML or JavaScript.
Mobile apps can also be made that will let people view live
streams and make recommendations for friends to view.
Again, this is done through HTML or JavaScript and can be
linked to your website.
Apps can also be created for use on the FB page, website, or
mobile device. These can be games or interactions that will make
people stay on the page for longer and hopefully spread the word
about the business.
Ads can be made from scratch through Facebooks website.
This allows for complete customization for the ad. You can
select the targeted people (geographically and
demographically) and also choose a precise interest such as
real estate or apartments.
The ads run on Facebook, they have control over when and
where it runs and how often. Your ad will be in competition
with all other ads on Facebook. They are chosen based off
of the amount of money invested in the ads.

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Ads can be bought two different ways: per click or per
impression. Per click is more expensive because the direct
connection that the customer makes with your site (FB
suggested = .46-.88 cents). Per impression is based on
views and will be less expensive because the customer may
or may not click the ad (FB suggested = .20-.38 cents).
Importing contacts through e-mail addresses and other websites
can be done to create an initial fan base for the site.
There are also analytics that can be reviewed for your site with
information about visitors, new subscribers, times viewed, and
more.
Facebook provides detailed instructions on everything stated
above. They have a walk through for HTML and JavaScript and
how to use them correctly on your site. As well as how to develop
ads, apps, and mobile apps.

Twitter: Recommended

Like Facebook, Twitter is on the leading edge of social media and


is fairly simple to use. Not to mention completely free!
A profile with picture and domain name can be set up quickly and
easily for a business.
Like Facebook, contacts can imported from e-mail and other
websites to start the fan base off.
Also, HTML and JavaScript are used for most of the
applications involved. Like Facebook, Twitter provides a
walk through for each individual app or widget.
People can follow your account and will receive notifications when
you update your account.
A mobile app can be developed and notifications can be
sent directly to your followers smartphone.
The Twitter live stream can be added to your Facebook page and
Website for people to view even if not following you on Twitter. A
Tweet button can also be added to let others share on your site.
Both of these are done through the use of HTML or JavaScript.
Promotion through Twitter can be done in two ways.
Promotion tweet: A tweet that has a direct connection to
your business, either through Facebook, Twitter, or your
website.
Promoted account: A promoted account can be created
through Twitter, this will show your account on searches
making it more available to a wider range of customers.
Also like Facebook, Twitter has an analytical page that can be used
to view account history and details.

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Newspaper:

Tribune Star Terre Haute:


Newspapers are a dying trend, but still somewhat effective.
The Tribune Star prints around 30,000-35,000 copies daily
and covers a range of 9 counties; 6 in Indiana and 3 in
Illinois.
The rate starts from $25.50 for weekly columns and $32.50
on Sundays and holidays. They offer a color option which
is $27.50 flat rate. The ads could be anywhere in the paper
and for a guaranteed spot there is a 25% charge of the
amount of the ads.
Contact the paper directly at
o Phone: (812) 231-4215
o Fax: (812) 231-423

The Indiana Statesman:


The Indiana Statesman is the official Indiana State
University newspaper. Its deals with all things university
related and covers local topics as well.
All rates are listed below:
o 1/4 page = $125
o 1/8 page = $75
o 1/16 page = $40
o Puzzle sponsorship = $20-$40 depending on
number of issues
o Online ads range from $100-$900 depending on
size, location, and time.
Contact the paper directly by:
o E-mail: ISU-statesmanads@mail.indstate.edu
o Phone: 812.237.3025
Advertisers can submit ads as a camera ready proof through
a flash drive, compact disc, or e-mail to:

Brochures/Flyers: Recommended

This is a simple and inexpensive way to advertise and fairly


effective if done correctly.
The flyer used for the recent Housing Fair could be used to put up
in local downtown businesses such as The Copper Bar and
Ambrosinis. Additional places for flyers would be around campus,
hung specifically where a large amount of graduate students are,
this would include; the Hulman Memorial Student Union, the
lobbies of the College of Business, College of Education, and
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College of Nursing, as well as the library and graduate student
offices.
Brochures can be used to hand out at street events, concerts,
university related events, and any professional event. These can
also be used a take home once the building is completed and tours
begin. We have developed a brochure for you to look at that is
attached to the back of this document.

Pre-lease Incentives: Recommended

Option 1
Signees enter drawing for I-Pad
Option 2
Each individual signee receives $50 Gas Card
Option 3
Each signee receives $100 rent discount in 1st month
Option 4
Gift package giveaway from surrounding businesses
Be sure that in every form of media used there is a connection made between that
specific form and Radio City Lofts, this could be as easy as listing the URL for
the website on the bottom of a flyer or saying it over a radio ad. Having a home
base for people to refer too is crucial; this should be the site with the most
information about the service.

Stage 5: Competitive Advantage


Developing and maintaining competitive advantage is one of the most
important aspects of any business. For a company to be successful they must
separate themselves from the rest of the market. Much of this is based on the
established brand image with a few extras.
o Luxurious living
Radio City will deliver a prestigious and comforting feel in a city
where that is rare to find.
o Historical setting
The historical building provides a feel of sophistication and also
has a luxurious appeal.
o Downtown location
Being located in the heart of downtown Terre Haute gives
residents instant access to many stores, shops, restaurants, and
bars.
o Young appeal
The combination of downtown living and the specified target
market helps the project to develop a certain feel in which the
targets can fit in and feel at home.

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By creating these advantage factors, Radio City should be able to cater to the
needs of its residences, fill the complex with the desired people, retain tenants,
and ultimately be more profitable.
By establishing brand image and developing competitive advantages, the
company will be able to charge a higher price for the service. The positive
correlation between these two ideas is never ending due to the higher price
driving the brand image of luxury.

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Radio City Lofts Flyer

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Radio City Lofts Brochure: Outside

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Radio City Lofts Brochure: Inside

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