PLEASANT RIDGE

HABITAT FOR
HUMANITY
SECOND CHANCE
Case Presentation

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INTRODUCTION
s

• An affiliate of Habitat for Humanity International, a global nonprofit with a vision of “ A world
where everyone has a decent place to live.”

• Mission Statement is “ Seeking to put God’s love into action, Habitat for Humanity brings
people together to build communities and hope.”

• Serving to around 50000 people in Pleasant Ridge, Oregon.

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QUES 1: WHAT IS THE PROBLEM FACING
THE PLEASANT RIDGE HABITAT STORE?
PROBLEMS FACED BY PLEASANT RIDGE
Revenue and Contribution has both dropped as
Considerable Drop In Revenue compared to the previous financial year

Even though there have been increase in the operating hours

Stagnant and Decreasing Sales and social media activity, sales has not been impacted.

What Should be the Whether they are open the right number of hours, and how they can realize
Strategy going Forward their original goal of growing both the sales and contribution

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QUES 2: ANALYZE THE SALES AND
FINANCIAL STATEMENT DATA PROVIDE IN
THE CASE AS FOLLOWS:
A) USING THE LAST THREE FISCAL YEARS OF DATA, CALCULATE
AVERAGE SALES PER MONTH AND THE PERCENTAGE OF SALES TO
THE TOTAL YEAR. WHAT DOES THIS REVEAL ABOUT THE
SEASONALITY OF DEMAND THE STORE EXPERIENCES?

Based on our analysis and calculation we came to a conclusion that there is a seasonal demand of the
store experience. According to the calculation and Exhibit #2. We notice that month May & June have a
great sale compared to other months of the year. However, in the FY 2016 a good sale is recorded in the
month of August September and October and same trend continues for FY 2017.
This seasonal demand may occur due to following reasons:
1. Discount rate offer at the later part of the year (Blue Label Conversion)
2. Students also visit the store to repair their paying guest house at that particular part of the year
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B) USING THE DATA IN THE CASE ON SALES AND FLOOR SPACE BY
PRODUCT CATEGORY, WHICH PRODUCT CATEGORIES CONTRIBUTE
THE MOST TO STORE SALES? WHICH PRODUCT CATEGORIES
PRODUCE THE MOST REVENUE PER SQUARE FOOT?

Based on our calculation the product

category which contribute the most to
store sales is building material.

Based on our calculation the product

category which contribute the most
revenue per square foot are doors.
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C) USING THE DAILY SALES FIGURES FOR FY17, CALCULATE THE
AVERAGE, MAXIMUM, AND MINIMUM SALES PER DAY FOR THE
STORE BEFORE AND AFTER STORE HOURS WERE EXPANDED? WHAT
DOES THIS SUGGEST THE IMPACT HAS BEEN OF EXPANDING THE
STORE HOURS?
Based on our analysis, we came to know that the amount of
sale remained the same. According to us the demand for the
good has remained the same. Hence the approx. weekly sale
have remained the same but due to increase in the number
of days the sales done per day have reduced.
We Also noticed that Saturday was one of the highest
selling day. Now after increasing the number the store that
too has reduced.

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D) COMPARE COMMON-SIZED FY17 AND FY16 FINANCIAL
STATEMENTS FOR THE STORE. WHAT DOES THIS REVEAL ABOUT
THE DECLINE IN THE STORE’S CONTRIBUTION IN FY17?TAKEN
TOGETHER, WHAT DO THESE ANALYSES REVEAL ABOUT THE
STORE'S OPERATIONS AND PERFORMANCE? WHAT DOES THIS
Based on our analysis,
SUGGEST WITH we came to know
RESPECT TOtoTHE
the following:
STORE’S GOALS OF INCREASING
SALES ANDforCONTRIBUTION?
• The demand the goods are limited. Therefore, increasing the store work hour is not a viable option
• Due to increased hour of operations their cost of operations and maintenance has increased.
• Moreover, the sales per week remain almost the same but sales per day have decreased.

Suggestions for increasing sales and contributions:

• They should increase their product portfolios.
• They should fix some amount for advertisement and marketing of store, which in turn will yield more
footfall
• They should arrange for a large inventory in order to cater for goods that creates a good revenue/Sales
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QUES 3 : WHAT ARE THE ASPECTS OF STORE
OPERATIONS THAT YOU THINK NEEDS
IMPROVEMENTS?
OPERATIONS THAT NEEDS IMPROVEMENT
Store had part time truck driver which
remains the constraint to deliver the
product on time although the store was
operating throughout the week
No efforts was made to inventory
when they arrived due to which
store rarely had complete
inventory of any product
Variability in timing and
composition in products
resulted in stock outs
many a times
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Doors and other products even after
being good revenue contributor had
less space in the store compared to
cabinets
Too much space was allotted to administration
office although there was a office section in the
store
Many products were sent to warehouse due to space
constraints resulting in less visibility of the product
QUES 4 :EVALUATE THE SCHS STORE’S RETAILING
EFFORTS. GIVEN THIS EVALUATION, WHAT APPEARS TO
BE CONSTRAINING GROWTH IN THE STORE’S SALES?
 Retailing efforts
SWOT Analysis
Strength
1. They have great
customer segment who are
really interested in buying
from them.
2. They have built a good
online presence.
Opportunity
1. They have a chance to
expand their store and
increase their inventory
2. They can increase their
product portfolio.
Weakness
1.Their supplies for store
goods are random.
( Difficult to manage
inventory)
2. The retail Strategy can
easily be imitable
3. Lack of technological
advancement in their retail
Strategy.
Threat
1. Threat from entry of
any new competitors.
Factors Affecting in the Sales Growth:
1. * Lack of product awareness amongst people and
potential customers
2. * Lack of good product portfolios
3. * More investment is required to grow the sales of
product but they already have a cash crunch.
4. * The demand for these goods are limited and
seasonal
5. * There is also the chance that this market is
saturated and there is a very feeble chance of growth
in this sector.
6. * There may be some external factor involved in it,
such as entrance of new competitors etc.
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