Terre Haute Boys And Girls Club Final Paper Revised

Terre Haute Boys and Girls Club
December 2, 2008

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THE RESEARCH TEAM
Back Row from Left: Evan Huffine, Eric Miller, Thomas Clark, Adam Mills, Heath Holliday,
Kyle Wahl, and Daniell Trevino.
Front Row from Left: Fadzai Masiyazi, Megan Measel, Lisa Scott, Jordan Moran, and Dena
Sulieman.

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College of Business
Indiana State University
Terre Haute, IN 47809
December 2, 2008
Terre Haute Boys & Girls Club
220 North 3rd Street
Dear Jimmy Smith,
On behalf of Sycamore Business Advisors, we would like to thank you for giving us 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 formulating strategic management plans for
local small to mid-sized organizations. Our highly-developed, not-for-profit strategic
management consulting company hopes to raise your organization to a higher level.
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 with our services that we provided to you, please feel free
to contact us at any time.
Sincerely,
Fadzai Masiyazi, Project Team Leader Imane Lahlou, Associate Director
Dr. Dave Robinson, SyBA Advisor

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TABLE OF CONTENTS
Research Team…………………………………………………………………………….2
Thank You Letter………………………………………………………………………….3
Table of Contents……………………………………………………………………….....4
EXECUTIVE SUMMARY .............................................................................................................8
OVERVIEW ....................................................................................................................................9
DIRECTIONAL ANALYSIS ........................................................................................................10
Stakeholder and Business Model Analyses ..........................................................................11
Members ........................................................................................................................12
Community....................................................................................................................13
Partners and Suppliers ...................................................................................................14
Sustainable Competitive Advantage .....................................................................................15
INTERNAL ANALYSIS ...............................................................................................................17
Programs and Services..........................................................................................................18
SWOT Analysis ....................................................................................................................20
Strengths and Weaknesses.............................................................................................21
Management Information Systems .......................................................................................22
Marketing..............................................................................................................................23
Education ..............................................................................................................................23
Human Resources .................................................................................................................24
Accounting............................................................................................................................24
EXTERNAL ANALYSIS..............................................................................................................27
Threats...................................................................................................................................28
Opportunities.........................................................................................................................29
General Environment ............................................................................................................31
PEST Factors .................................................................................................................32
Threats ...........................................................................................................................33

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Opportunities .................................................................................................................33
Industry .................................................................................................................................34
Partners and Alliances...........................................................................................................35
GAP ANALYSIS...........................................................................................................................37
Prioritization of Gaps............................................................................................................38
New Programs ...............................................................................................................38
Marketing ......................................................................................................................38
New Gymnasium...........................................................................................................38
Alumni Involvement......................................................................................................39
Board of Directors .........................................................................................................39
Youth Football League ..................................................................................................39
Accounting ....................................................................................................................39
Current State ..........................................................................................................39
Auditing Concern...................................................................................................40
Ideal State...............................................................................................................40
New Location ................................................................................................................41
Transportation................................................................................................................41
RECOMMENDATIONS...............................................................................................................43
New Programs.......................................................................................................................43
Competitive Sustainable Advantage..............................................................................43
Summer Program with MHA ........................................................................................43
Too Good for Drugs ......................................................................................................44
No Fear Future Club......................................................................................................44
Softball ..........................................................................................................................44
Soccer ............................................................................................................................45
Marketing..............................................................................................................................45
Current State..................................................................................................................45
Recommendations .........................................................................................................46
Commercial ...................................................................................................................46
Time Warner Cable .......................................................................................................51
Flyer Redesign........... ..............................................................54

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New Gym..............................................................................................................................56
Economic Instability......................................................................................................56
Scarcity of Parking ........................................................................................................57
Increase in Expenses......................................................................................................57
Heating & Electric Costs ...............................................................................................57
New Program Costs.......................................................................................................58
Indoor Soccer.................................................................................................................60
Gymnasium Maintenance & Upkeep Costs ..................................................................60
Hiring Costs...................................................................................................................61
High Switching Costs....................................................................................................62
Alumni Involvement .............................................................................................................63
Alumni Impact...............................................................................................................63
Implementation..............................................................................................................64
Board of Directors Recognition............................................................................................64
Recommendation……………………………………………………….…………...……65
Youth Football ......................................................................................................................66
Current State..................................................................................................................66
Identified Gap................................................................................................................67
Recommendation……………………………………………..………………………………68
REFERENCES ..............................................................................................................................71
Websites................................................................................................................................71
Interviews..............................................................................................................................72
APPENDIXES
Appendix A - Tables.............................................................................................................74
Appendix B - Figures............................................................................................................77
Appendix C – Surveys & Flyers ...........................................................................................83

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LIST OF ILLUSTRATIONS
TABLES
Table 1............................................................................................................................................14
Table 2............................................................................................................................................37
Table 3............................................................................................................................................52
Table 4............................................................................................................................................59
Table 5............................................................................................................................................60
FIGURES
Figure 1 ..........................................................................................................................................48
Figure 2 ..........................................................................................................................................49
Figure 3 ..........................................................................................................................................49
Figure 4 ..........................................................................................................................................50
Figure 5 ..........................................................................................................................................50
Figure 6 ..........................................................................................................................................51
Figure 7 ..........................................................................................................................................53
Figure 8 ..........................................................................................................................................60
Figure 9 ..........................................................................................................................................61
Figure 10 ........................................................................................................................................62

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EXECUTIVE SUMMARY
The following is a strategic process consultation that we, a division of the Sycamore Business
Advisors (SyBA), conducted for the use of your company, the Terre Haute Boys and Girls Club.
The Terre Haute Boys and Girls Club has been serving the youth of the Wabash Valley since
1908. The Club provides sports, recreational, and educational programs to local children and has
been a community leader for the past century, proving that they are indeed, the positive place for
kids.
This consultation includes information we gathered and researched in order to provide the Boys
and Girls Club with a strategy, which is the coordinated means by which an organization pursues
its goals and objectives. The research included in this study focuses on a directional analysis,
where we identified the people that the Boys and Girls Club exists to benefit, an internal
analysis, where we studied the internal processes of the Club and how they operate, an external
analysis, where any opportunities and threats from the outside environment were analyzed, and a
recommendations section that analyzes the current state of the Club and where they would like to
be in the future.
The directional analysis includes a study of the Club’s mission, vision, and values. These
statements enabled us to determine who the Club provides services to, the ultimate goals for the
Club, and how business is conducted within the Club. We conducted a stakeholder analysis to
identify the key stakeholders most critical to the Club’s survival and how the Club provides
benefit to and receives benefit from them
.
The internal analysis focuses on the strengths and weaknesses the Boys and Girls Club would
have to take into consideration when trying to expand operations. We conducted research to
analyze the current operations of the Club, in the areas of marketing, accounting, management
information systems (MIS), education and human resources. We also identified the areas that
were performing well, and those that could cause problems in the future.
The external analysis focuses on the opportunities and threats existing in their outside
environment. The Boys and Girls Club would have to take these into consideration when trying
to expand their business operations. To determine these factors, we focused on three key areas:
the general environment, the industry, and the partners and alliances. We discovered that it is
important for an organization to utilize the opportunities they have and minimize the threats that
could possibly arise.
The final section consists of proposals, where we offer recommendations to the Boys and Girls
Club that could possibly improve their operations. These recommendations take all of our
information and research gathered from our directional, internal, and external analyses into
consideration. The proposals include the construction of a new gymnasium, reorganizing the
Youth Football program, offering new programs, expanding marketing efforts, and creating more
alumni and board of director’s involvement.

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OVERVIEW
In different communities around the United States there are boys and girls left to find
their own recreation and companionship in the streets. Over time an increasing number of
children have been left at home with no adult supervision. These young people need to have a
place to go where they feel that someone cares about them. The Boys and Girls Club offers
emotional assistance and much more. The Boys and Girls Club provides programs and services
that promote and enhance the development of boys and girls by instilling a sense of competence,
usefulness, belonging, and influence. The organization is able to provide a safe place for
children to learn and grow, build ongoing relationships with caring adult professionals, and gives
the kids hope and opportunity. They have managed to fill the void in communities nationwide
and in the process, produced fine young men and women such as Jackie Joyner-Kersey, Brad
Pitt, Denzel Washington, President Clinton, Neil Diamond, and many more over the years.
The Boys and Girls mission statement is, “To enable all young people, especially those
who need us most, to reach their full potential as productive, caring, and responsible citizens.”
The club’s purpose is to inspire the young generation. With the crisis of soaring high school
drop-out rates, low fitness and obesity rates sky rocketing within our young, The Boys and Girls
club strives to provide solutions to this epidemic through tutoring services, energizing sports and
recreational activities, and challenging academic programs. The Boys and Girls Club is truly a
positive place for kids.

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Directional Analysis

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DIRECTIONAL ANALYSIS
The Terre Haute Boys and Girls Club (THBGC) has been an important asset for servicing
communities over the years. It has adapted to better suit its members and community and has
established itself as a vital, not for profit organization. As stated on the website, The Terre Haute
Boys and Girls Club’s mission is to enable all young people, especially those who need them
most, to reach their full potential as productive, caring, and responsible citizens. By providing
diverse programs and activities, the THBGC has made adult supervision and guidance available
to those who need it. For nearly 100 years, the THBGC has stood as a positive image in Terre
Haute’s community by adapting to its needs. Over the last ten years, the Terre Haute Boys and
Girls Club has expanded by adding tutoring services, computer accessibility, and more female-
oriented programs.
Stakeholder and Business Model Analyses
We conducted a directional analysis of the Boys and Girls Club to get a better
understanding of how the club operates and endures as a business. This analysis identifies the
people and groups who have an impact or are impacted by the club, these people are called
stakeholders of the Boys and Girls Club. The directional analysis also identifies the values these
stakeholders give or receive from the club, and also how the club remains sustainable in its
community. From the information obtained, we will be able to identify the critical stakeholders
that the Boys and Girls club is dependent on. Furthermore, we may discover other stakeholders
that have potential to assist the Boys and Girls Club, if needed. The directional analysis is broken
down into three main parts: the stakeholder analysis, business model analysis, and an evaluation
of sustainability. Evaluating the THBGC, according to the directional analysis will help us

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determine how it operates as a business, while giving to and receiving from its environment.
Since the stakeholder analysis and the business model analysis are so intertwined, we will
conduct the two simultaneously. Understanding the relationship between the stakeholders and the
THBGC are the first steps to defining its business model. The business model is made up of the
activities that the THBGC engages and provides, in order to create value for its stakeholders.
This is the method by which it operates. What does it receive and from whom? What does it give
and to whom? We can determine this by identifying the stakeholders and determining what they
give and receive from the Boys and Girls Club. After meeting with Jimmy Smith and visiting the
Boys and Girls club’s website, we were able to identify three groups of stakeholders. The
stakeholders were classified into these groups according to the type of relationship they have
with the club. The groups are the partner and suppliers, the community, and the members of the
Boys and Girls Club. Once each stakeholder’s relationship with the THBGC is established, we
will be able to identify the value they receive as well as the value they create for the
organization.
Members
The members represent an important group of stakeholders to the THBGC. Their
presence is the driving force for the existence of the club. The members, who essentially are the
kids, receive value from the club by participating in the various athletic and educational activities
the club has to offer. In addition, they are also able to interact with other members while
developing social and communication skills. Participating in the athletic programs like basketball
or baseball league promotes sportsmanship and team interaction. Above all, the THBGC
provides professional supervision for them in a safe and nurturing environment. As for the value
that they create for the THBGC, their membership fees provide most of the THBGC’s income.

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The $25 yearly membership fee for 2,000 members provides great financial assistance to the
club’s operation. Furthermore, their participation in the club can generate positive feedback to
other children, which can increase membership.
Aside from the actual members of the THBGC, we classified the parents of the children
and the staff of the THBGC under the members group. We believe that these two stakeholders
directly influence the membership of the children. The parents fit under the members group
because their permission and fees dictate the child’s participation in the club. They represent a
critical stakeholder to reach out to because their awareness and knowledge of the THBGC can
generate a good reputation for the club. If the parents are fully aware of the benefits of the
THBGC, they may be more likely to encourage their children to participate in more programs.
Moreover, the parents create more value for the club by providing donations and volunteering for
the programs. As for the employees, they receive wages for their labor and very important to
THBGC because it is their supervision that helps create a safe and constructive place for the
children. The professional staff of the THBGC provides the children with guidance that may not
be otherwise received.
Community
The stakeholders that fall under the community group include the school corporations,
Indiana State University, the THBGC alumni, and citizens of Terre Haute. These stakeholders
live in the Terre Haute community and the value they receive from the club comes from the
club’s ultimate goal, which is to produce better, well- rounded citizens. The Boys and Girls Club
receive income from donations and fundraisers from the communities. The donations can come
from any individual who believes in the THBGC’s cause. As for the fundraiser, the community’s
participation and support are vital to the THBGC’s success and the club holds two main

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fundraisers each year.
Partners and Suppliers
Partners and suppliers represent an important group of stakeholders because they provide
the support that allows the THBGC to operate and run its programs. The partners include the
people and groups that provide financial assistance and funding to the club. United Way is one of
the main sources of income, because they provide the Boys and Girls club with nearly half the
income on its financial budget. The THBGC is dependent on United Way in order to continue
delivering the value to the members and community. Staples and Sam’s club, among other local
businesses, provide in-kind supplies to the THBGC that maintain its facilities operations and
support the fundraisers. In return, by supporting the club, these partners and suppliers receive
recognition, good publicity, and their contributions are tax deductable. This makes the
organization or business appear as a positive figure in the public eye.
The value chain model depicted on the next page summarizes the value created for the
Boys and Girls Club from their stakeholders and the value their stakeholders receive from the
Boys and Girls Club, as previously discussed.
Table 1-Value Chain Model
Stakeholder Value Created for THBGC Value Received
Kids Social Skills Income from Membership fees
Parents Affordable fees Good Reputation, Volunteers
Community Well rounded citizens Donations, Fundraisers

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Partners and Suppliers Publicity, Tax deductibles Sponsorship
Sustainable Competitive Advantage
The final step of the directional analysis is to determine if the Boys and Girls Club has a
sustainable competitive advantage. An organization with a sustainable competitive advantage is
one that is able to survive in the long run, and continue to provide its product or services to its
stakeholders. It must be able to compete successfully with any organization that provides similar
services. It is important to recognize this aspect of the club because it determines if the club is
currently operating in good condition, or if a new, more viable direction needs to be conceived.
The Terre Haute Boys and Girls club has established itself as an important asset to the
community and has served it for nearly 100 years. There are three aspects that the Boys and girls
club prides itself on in regards to service for it members and community. The first value added to
the community by the THBGC delivers is low membership fees. Children are allowed to
participate in the pangrams for a mere $25 per year fee. This is extremely competitive to any
other gym or facility in Terre Haute. The second value added the club delivers is the professional
supervision of their staff. Their input is integral to the club’s survival because they provide a
safe, trustworthy place for the children, whose parents are confident leaving their children.
Finally, the Boys and Girls club is a dedicated youth facility, open daily. The club has proven
from this that it is here to service and fulfill the needs of the community.
The THBGC has a valuable place within the community and has continued to operate
because of the high value it has to Terre Haute. There are many attributes that add value to the
organization which, in turn, receive value from the THBGC as well. These are the attributes that

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will allow the THBGC to sustain the competitive advantage that it currently holds in the future
and continue to provide their services without excessive strain. There are many more
contributions that can be implemented to the organization involving the stakeholders as the
directional analysis has shown.

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Internal Analysis

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INTERNAL ANALYSIS
The SyBA consultant team conducted an internal analysis that emphasized all the main
attributes and goals within the Boys and Girls Club. Our goal is to develop a strategy that will
help the organization be more successful in the services they offer. We carefully evaluated all
material gathered and came up with a few new ideas for improved services and operations. Since
the Boys and Girls Club is one of the major contributors to the community and well-being of
local youth, we feel it is our duty help enhance the development of the organization.
Programs and Services
The Boys and Girls Club has many services to offer the community. The capabilities of
the organization include services such as: educational programs, sports programs, and a summer
day-care program. These programs are beneficial to the community because they are available to
youth on a daily basis. For instance, the learning center is open daily, it provides books to read,
and it offers tutoring free of charge. The computer labs are available to members daily and it
allows them to develop enhanced technology skills. Members can even use their creativity by
experiencing hands on, arts and crafts techniques. The junior staff is for boys and girls, ages 10-
14. This particular program allows members to get work experience by assisting staff with small
duties while learning to develop responsibility and self-esteem.
The sports services offered by this organization are ones that are of high interest to the
community’s youth. It offers basketball, flag football, golf, volleyball, cheerleading, and
tumbling. There are age groups within each sports segment allowing all children to participate in
some way. For instance, basketball offers leagues for preschool, kindergarten through fifth grade,

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as well as middle school. Flag football offers a league for kindergarten through third grade and
the golf program is offered for members aged six through seventeen. Volleyball is for girls and
boys grades fourth through eighth; cheerleading is for boys and girls grades kindergarten to fifth,
and tumbling which offers private instructors is for grades kindergarten through eighth. Another
capability of the Boys and Girls Club is the summer day care program. The day care is for
children ages 6 to 13 years. The cost is $50 per week or $17 per day which is very affordable in
comparison with other child care programs. While children attend this day care, they have the
opportunity to enjoy activities such as swimming, hiking, and fishing. The children are also able
to use the resources that are available inside the club including; the game room, learning center,
arts and crafts room, computer room, and gymnasiums.
The information that was gathered on the Boys and Girls club is accurate data collected
directly from personal interviews with Jimmy Smith, the Club’s Executive Director, meetings
with the Board of Directors, the SyBA manual, surveys, and several websites. Several questions
were asked and the answers collected by each member were carefully observed. The capabilities
were detected by analyzing the key goals of the company. We looked to find exactly what the
Boys and Girls Club’s goals are, the services offered, how the services coincided, and how they
wanted to utilize their abilities. In doing thorough research, we discovered the core capabilities
of the Boys and Girls Club are the basketball programs, summer day-care, educational programs,
and the low price of membership. The core capabilities are the services and offerings in which
the organization specializes. The key components the organization wants to provide is a facility
that is affordable for parents and productive for children.
SWOT Analysis

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A SWOT analysis defines the strengths, weakness, opportunities, and threats of an
organization. A SWOT analysis is used to help develop a direction for the organization. While
conducting an internal analysis, it is important to determine the strengths that would help the
organization move from the present state to the desired state and discovering any obstacles that
might delay progress from taking place. Opportunities are the actions that can be taken to
enhance the organization toward becoming better, while threats are the problems that may set the
organization back. Opportunities and threats are forces in the external environment over which
the Boys and Girls Club have no direct control over.
After talking with the company, we examined their current state and came to a conclusion
about what direction they should take. We found the Boys and Girls Club were content with their
facility and the services they are providing for the community but they also felt there was plenty
of room for improvement. Mr. Smith discussed the possibility of expanding their gymnasiums,
wanting to relocate, conducting fundraisers to increase revenue, wanting to create more
educational programs, and wanting to involve alumnus. We carefully observed this information
and are going to come up with suggestions regarding the expansion of the gymnasiums without
having to relocate the entire facility, involving alumnus who then might be able to contribute by
making financial contributions, and adding more educational programs, which might help bring
more members to the club. These will be discussed later in the recommendations section.
By conducting a SWOT analysis we found that some areas could be adjusted to better the
services the Boys and Girls Club has to offer. We found that getting parents more involved, as
well as alumni, could potentially bring in more funds, staff, and general community support. If
the gymnasiums are expanded, it could help bring in more members and more efficient program
implementation. We also discovered that the marketing used by the THBGC currently could be

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redesigned to reach a broader target market and in turn increase community involvement.
Strengths and Weaknesses
During an internal analysis, it’s important to identify an organizations strengths and
weaknesses. Strengths are capabilities and resources that help an organization gain its
competitive advantage. Weaknesses are viewed as the absence of certain strengths. It’s vital to
identify strengths that will help the organization move from the current state of the capability or
resource toward the desired state. At the same time it’s important to identify potential
weaknesses that might hinder the organization from closing the gap between the current state and
the desired state.
The strengths of the Terre Haute Boy’s and Girl’s club include the quality of the facility,
staff, wide variety of programs, and low membership fees. The quality of the facility is much
higher than that of competing organizations, making it a strengthening aspect. The staff is
looked upon as strengths to the organization because these individuals are all well qualified, and
know the company inside and out. Each employee goes through various stages of hiring as is
discussed in the Human Resource function of the organization. The Terre Haute Boys and Girls
Club offer more programs than any other organization in the industry. This wide variety of
programs is a key strength of the organization. Lastly, the prices for membership to the Boys
and Girls Club are lower than any other organization. The Terre Haute Boy’s and Girl’s Club
are able to offer its programs at a lower cost than anyone else, making it a strength.
The weaknesses of the Terre Haute Boys and Girls Club include funding and the size of
the facility. The company could use more donations from alumni, and it has also seen a decrease

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in donations from the United Way, making funding a potential weakness. Also, the size of the
facility is a potential weakness. If the organization wishes to increase the number of members,
there may be a lack of available parking at its current location.
To understand the capabilities of the internal business function we talked with Mr. Smith
to gain insight concerning the subject. The internal business functions covered in the meeting as
well as further research were; Management Information System, Accounting, Marketing,
Education, and Human Resource. In this section we will go into depth regarding these functions
and their capabilities.
Management Information System (MIS)
Jimmy Smith informed us that Indiana State University Sycamore IT provided technical
services for free. These services would typically cost $70 to $80 dollars an hour therefore the
Boys and Girls Club are being cost conservative. Sycamore IT has been servicing the Boys and
Girls Club for approximately three and half years. Sycamore IT also provides efficient and
effective services to the Boys and Girls club by having a response time of 24 to 48 hours. The
Boys and Girls Club has an ideal service dealing with MIS.
Marketing
Mr. Smith informed us that the Boys and Girls Club utilize the traditional approach
dealing with their marketing. He said, “We currently use; TV (channels ten and two), newspaper
space, flyers, and radio to promote advertising.” The marketing/advertising for the Boys and
Girls Club has been cost efficient, but there is room for change in the way they are currently
marketing themselves. The Boys and Girls Club has been passing out flyers at schools in the

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areas they serve, getting a free television commercial spot on the local channel 10, as well as a
free newspaper advertisement in The Tribune Star.
Education
The Boys and Girls Club makes it mandatory for their employees to attend the Midwest
Services. Midwest Services allow the employees to gain a better understanding of how other
Boys and Girls Club’s conduct themselves as employees and also as a not-for profit organization.
The Program Directors must attend the Regional Conference to see how other Boys and Girls
Club’s function compared the Terre Haute Boys and Girls Club. Mitch’s Kids is a program that
is used throughout many of the Boys and Girls Clubs across the nation. This program focuses on
assisting kids with homework as well as supplying a tutoring service. The program provides club
members with the support, resources and guidance necessary to complete the work required of
them.
Human Resources
Mr. Smith told us that the hiring process for the Boys and Girls Club utilizes background
checks on any potential employees. He also said that he conducts all the interview questions
himself and focuses on hiring skilled people for each position available. He emphasized that, “It
would be pointless to hire someone who is great with computers but horrible in sportsmanship to
be working in the gymnasium.”
Accounting

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All accounting done internally at the Boys and Girls Club is conducted by Genine
Ireland. Ms. Ireland approves the amount of money spent to keep the Boys and Girls Club
functioning. She also conducts the employee payroll. There is no true segregation of duties
within the organization’s internal control. Every year the Boys and Girls Club has Sackrider and
Co., certified public accounting firm, to overlook their financial information and perform an
annual audit. Sackrider and Co. has been providing the annual auditing services for over 10
years and the Boys and Girls Club has never had issues with their internal accounting. The Boys
and Girls Club has two capital accounts and one memorial fund. These accounts are located at
Terre Haute First Financial Bank. The only people who have access to these accounts are Ms.
Ireland and Mr. Smith. So far, the accounting for the Boys and Girls Club seems to have been
conducted in an ethical manner. The implementation of internal control with apparent
segregation of duties would be increasingly ideal. It is a high risk to have one person account
for, manage and record the assets of the organization and separating the work would alleviate the
work load, risk of error and possible material misstatements in the financial statements.
The consulting team conducted an internal analysis in order to develop a strategy to
improve the Boys and Girls Club as an organization. When doing the internal analysis the first
step was to identify the capabilities and resources the Boys and Girls Club provided. We found
that the capabilities of the Boys and Girls Club include; sports programs, educational programs,
and summer daycare. The resources they provide are divided between tangible and intangible
assets. The second step conducted in the internal analysis was the SWOT analysis. The SWOT
analysis defines the strengths, weaknesses, opportunities, and threats of the Boys and Girls Club.
The third step was to identify the core strengths and weaknesses of the Boys and Girls

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Club. Strengths are the capabilities and resources that help an organization gain its competitive
advantage. Weaknesses are viewed as the absence of certain strengths. Some strengths of the
Boys and Girls Club include: the quality of the facility, staff, variety of programs, and price of
membership. Weaknesses found include funding, a marketing strategy, and the size of the
facility. After conducting the internal analysis we will prioritize the capabilities and resources in
the order of which has the largest gap to the one with the smallest gap between desired state and
current state. This ranking will be used to see where the Boys and Girls Club is and how far they
are away from their desired state.

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EXTERNAL ANALYSIS

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EXTERNAL ANALYSIS
The external analysis is used to determine the conditions, events, and factors surrounding
an organization which influences the activities and choices, and determines the opportunities and
risks. It enables the firm to obtain a clear picture of threats and opportunities prevalent in the
firm’s external environment. It is important that organizations understand their external
environment thoroughly and are able to adjust to the changing conditions of the external
environment.
The external environment can affect the organization either directly or indirectly. To
determine these factors we kept the focus on three key areas: the general environment, the
industry, and the partners and alliances. The general environment consists of four parts, which
are generally referred to as the PEST factors; they include political/legal factors, which are laws,
regulations, judicial decisions, and political forces in effect at federal, state, and local
governments, economic factors such as purchasing power, inflation, and the organization’s
capital, socio-cultural aspects which are society’s traditions, values, attitudes, and beliefs, and
Technological aspects, which pertains to those services affected by the vast changes in
technology.
An organization is directly affected by its customers, suppliers, and competitors. The
external factors that can affect an organization indirectly are the PEST factors. The Terre Haute
Boys and Girls Club deals with the external environment just like any other business in the Terre
Haute area. We have used the PEST analysis along with other general research studies to help
determine the external environment for the Boys and Girls Club. The Boys and Girls Club offers
many programs for a variety of people of all ages. The goal is to provide kids with a safe after-

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school environment, as well as a fun and educational experience. The external environment
plays such a big role for the Terre Haute Boys and Girls Club because the Club heavily relies on
the community and other external factors for financial resources. The following paragraphs will
discuss the threats and opportunities that factor into the external environment of the Terre Haute
Boys and Girls Club.
Threats
Organizational threats consist of different external factors in the environment that could
propose a threat to an organization. Some threats are more difficult to deal with than others. It is
important that organizations such as the Terre Haute Boys and Girls Club are aware of their
threats and are always thinking ahead to try and prevent these threats from having a negative
impact on the company. Most of the threats and opportunities for the THBGC come from the
General Environment, the Industry, and Partners and Alliances. Threats within the industry
include buyers, suppliers, and same service organizations in the surrounding area. These threats
are local businesses or community facilities that can potentially take business away from the
THBGC.
We decided the main threat for the THBGC here in Terre Haute is the Terre Haute
Family Y. A few reasons why is because they offer more programs directed towards younger
girls such as gymnastics, swimming, and cheer club. They also offer co-ed flag football which
can be a threat because it can potentially decrease the number of participants involved in the
Youth Football Program. The flag football program currently consists of about 160 participants
and they look to increase that number next year. Also, the Y has a basketball program that poses
a threat because they are constantly trying to recruit kids to participate. They currently only have

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only 60 kids involved in their basketball program. For this reason, the Y considers the THBGC
as a major threat because they simply cannot get much of a program going due to the current
success of the dominating THBGC basketball program. Another organization in the Terre Haute
area that could be considered a threat would be the Wabash Valley Family Sports Center. At the
present time, they are not a major threat to the THBGC, but have potential because they are more
family oriented and the membership cost (youth-$30/yr) is very similar to that of the THBGC
(youth-25/yr). Lastly, loss of partners and members would also be considered one of the major
threats for the THBGC because it is rather difficult to receive funding. The THBGC cannot
afford to lose these resources and must continue to use their strengths to fend off these threats.
Some of the partners involved with helping out the THBGC include, United Way, Staples, First
Financial Bank, and Wal-Mart.
Opportunities
Organizational opportunities are known as potential factors within the organization and
community, which could have a positive impact on the organization itself. Opportunities, like
threats, come from the industry, the general environment, and from partners and alliances.
Businesses should always be looking for potential opportunities, because one never knows what
these opportunities can bring to the table for the organization. In the world of business today,
every little bit helps especially with a not-for-profit organization such as the THBGC. After
researching other THBGC facilities in the Midwest and around the U.S., we found that there are
many other programs out there that are offered. As a group, we particularly liked the idea of a
leadership program. A Leadership program consists of teenagers, ages 15-18, who are involved
in activities such as community service, tutoring, coaching, teaching, and simply being good role

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models for the younger generation. We feel this is an opportunity because, currently, no one else
in the community offers a program like this. It would not only be great for the younger kids, but
great for the older kids as well. This will help develop better leadership, communication, and
teaching skills to make them more “well rounded” individuals, which ties right in with the
mission statement of the THBGC.
Another opportunity we feel the THBGC should consider is expanding their after school
tutoring program. We interviewed a total of eight middle schools around the Terre Haute area
and found that most students need help with math and writing. It is a convenience that ISU and
local high schools surrounds the facility. This is an opportunity for them to expand their tutoring
program so they can have a larger impact on the education of kids in the community. It will not
only help the kids build more confidence academically, but it will provide guidance and advice
anytime they needed it.
Other opportunities within the industry include utilizing the board of directors and
increasing donations from suppliers. Opportunities in the general environment include federal
and local grants, fundraising, and increased member fees. Currently the membership cost is a
minimal $25 a year, which could be looked into for some sort of increase in profit. Lastly we
found that the Club’s alumni, ISU’s College of Education and Sports and Recreational
Management students, and the high schools are all potential opportunities to become THBGC’s
partners and alliances.
Opportunities and threats play a significant role in any organization’s success.
Organizations must always be aware of potential threats, and be ready to pursue potential
opportunities. What we have found so far is that the THBGC is well managed and well prepared

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when it comes to dealing with the different factors of the external environment. Throughout the
semester we will try to find ways to help manage these external factors even better.
As we began to start our external analysis, we found it vital to identify the opportunities
and threats available to the Boys and Girls Club that would affect overall performance. To
determine these factors we focused on three key areas: the general environment, the industry, and
the partners and alliances. The general environment consists of four parts, which are generally
referred to as the PEST factors.
General Environment
PEST Analysis
Political/Legal factors, which are laws, regulations, judicial decisions, and political forces
in effect at federal, state, and local governments. Economic factors such as purchasing power,
inflation, and the organization’s capital. Socio-cultural aspects include society’s traditions,
values, attitudes, and beliefs. The technological aspect depends upon whether the organizations
services are affected by changing technology. The industry consists of the suppliers,
competitors, and buyers. In the case of the THBGC, examples of industry specific factors would
include United Way (supplier), YWCA and Wabash Valley Sports Center (competitor), and the
members and their parents (buyers). Finally, the partners and alliances are the people who can
help create value for the stakeholders.
Our primary source of data has been our initial meeting with Mr. Smith, the Executive
Director, and three board members. It was there that most of the pertinent information was
disclosed. We as a team conducted an interview in which we used the results to guide us through

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our external analysis. The interview provided us with important information such as: monetary
investors, board members, donators/suppliers, competition, and partners and alliances. We also
learned about the various programs offered at the facility which include, basketball (main
attraction), football (Youth Football League), the early bird summer camp, after school tutoring,
and a newly implemented cheerleading program for the female members. Our meeting ended
with a tour of the facility.
After conducting the initial interview we used our meeting time to analyze the
information and to categorize the data into their respective categories (general environment,
industry, and partners and alliances). There was also a board meeting, in which a few of our
group members attended to gain additional insight. In addition to the fact that the club website
provided us with the mission statement, a list of community events, and contact information for
the staff (Executive Director, Program Director, Assistant Program Director, and Office
Secretary), we felt that we were ready to turn the data collected into meaningful information.
Next, we took everything that we learned about the Boys and Girls Club and discussed
whether it was a threat or an opportunity. For the purpose of this assignment, a threat is anything
that can prevent an organization from reaching its desired state and an opportunity is anything
that helps the organization to reach its desired state.
Threats
Threats to the general environment include: Political and Legal issues such as zoning
laws which deal with the way land can be used according to government regulation. This is a
threat because it is against the law to build, move, or add anything to existing structures that can

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harm existing residents and businesses. Liability issues that deal with the children getting hurt
while on the property of the Boys and Girls Club. We feel that this is a threat because parents
won’t be willing to leave their children in a place that they don’t view as safe and also because
the club is held responsible for the well being of the children while under their care.
Opportunities
Political and legal opportunities were possible relocation of the club and the chance to
acquire more local and federal grants to help fund the club’s operations. Relocating the club is
seen as an opportunity because it gives the club the opportunity to build a facility that better suits
the needs of the club, which will hold more members, more programs generating more revenue.
Acquiring more federal and local grants could help to fund all the clubs current and
future programs. Research on other clubs; show that United Way isn’t the only source of
funding. They have partnered with local and federal businesses such as: Taco Bell, Reader’s
Digest, GAP Foundation and the list goes on. Economic threats included the donation cutbacks
(United Way) and the increase in minimum wage. These are viewed as threats because the
primary source of funding (United Way) is taking away more money each year, while you have
to keep paying your employees more wages. On the opportunity side of the economic trail, we
have the opportunities to increase membership fees and getting a bigger facility. These are
chances to increase revenue, while giving the club a place that can support all the programs they
wish to do. Socio-Cultural threats and opportunities deal with the clubs reputation, gaining new
members (female), and losing current members due to higher cost of living.
The reputation of the club is sound within the community, but we know that it only takes

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one lost or hurt child to sway the public’s opinion from a positive to negative image. This deals
with maintaining and improving the reputation throughout the community. Losing members to a
higher cost of living is a threat because as prices increase many families will have to cut back on
their spending and the club may be one of those things getting cut back. Also, enticing more
females by gearing more programs toward them is viewed as opportunity to increase
membership and increase revenue. Lastly, technological threats and opportunities involve
updating the club facilities and equipment. This includes computers, game room, of course the
new gym. This is viewed as a threat and an opportunity because they need to stay updated to
keep up with competition, but also want to better suit the wants and needs of the members.
Industry Threats
Industry threats include the competition. The club’s major competitors include the
Family Y, Wabash Valley Family Sports Center, and the West Vigo Community Center. These
are viewed as threats and competitors because they offer similar programs and services for the
community. They also compete for the same funding as the club. This can cause major
problems when trying to acquire funding for more programs. Industry opportunities include
increasing donations from suppliers, more involvement from the board of directors, and
integrating more programs. These are chances to acquire more funding through donations and
programs giving the club an opportunity to move in the direction of their mission statement.
Partners and Alliances
Partners and Alliances include United Way, Staples, First Financial Bank, Youth Football
League, and Sam’s Club. These partners help us to create value for our stakeholders. It would

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be wise to maintain a healthy relationship between the club and the aforementioned partners.
In conclusion, the external analysis is a method used to identify opportunities and threats
that can affect overall performance. These factors play a huge role in not only the strategic
process consultation, but in an organization’s overall success. It is important that we utilize the
opportunities we have and minimize the threats that may arise.

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GAP ANALYSIS

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GAP ANALYSIS
Sycamore Business Advisors has evaluated the directional, internal, and external
segments of the Terre Haute Boys and Girls Club. Through this evaluation, we have identified
the current state position of the THBGC and desirable future state for them. Prioritizing the
GAPs will give the THBGC a basis for taking the next step toward achieving sustainable
competitive advantage. These GAPs have been identified and are important to the development
of the Terre Haute Boys and Girls Club. SyBA has prioritized these GAPs to assist the THGBC
in deciding how and when to address the GAP.
GAPs are prioritized as urgent, non-urgent, critical, or non-critical. An urgent
GAP is one that needs to be addressed immediately. A non-urgent GAP is one that does not
have to be addressed immediately, but should be addressed in time. A critical GAP is one that
has a direct impact on the success of the organization and a non-critical GAP does not have a
direct impact, but would be a potential consideration for the future. GAPs that are both critical
and urgent are the most vital for the Terre Haute Boys and Girls Club’s success. The following
information reviews the GAP findings for the THBGC and prioritizes their urgency and critical
status.
Table 2 – Gaps Matrix
Critical Non-Critical
Urgent New Programs
Marketing
New Gymnasium
Accounting Practices

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Non-Urgent Youth Football
Alumni Involvement
Board of Directors
Transportation
New Location
Prioritization of GAPs
1. New Programs
The Terre Haute Boys and Girls Club’s current state of programs is lacking in those
appealing to girls. The desired state for the THBGC would be to offer programs for girls in
order to achieve a higher population of females among their members.
2. Marketing
The THBGC’s current marketing strategy consists of flyers given to children at the local
schools. The desired state for the THBGC would be to expand their marketing efforts in order to
reach a wider audience within the community.
3. New Gymnasium
The THBGC’s current gymnasiums are becoming crowded during their basketball
league’s games and practices. The THBGC’s desired state would be to build a new gymnasium
in order to accommodate all of the members and their activities.
4. Alumni Involvement
Currently, the THBGC’s alumni are not involved in their operations and fundraising
activities. The desired state for the THBGC would be to reach out to former alumni and involve
them when conducting fundraisers and during daily operations.
5. Board of Directors

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The Board of Directors of the Terre Haute Boys and Girls Club is not involved in daily
operational activities. The desired state for the THBGC would be to rely on the Board of
Directors for more involvement concerning operations and community involvement, in addition
to their current monthly meetings.
6. Youth Football League
The THBGC currently acts as a partner to the Youth Football League, because of their
use of the THBGC’s football fields. The Terre Haute Boys and Girls Club desires to have a
more active role in the Youth Football League’s operations.
7. Accounting
Current State
Currently at the Boys and Girls Club Genine Ireland and Jimmy Smith run the entire
revenue cycle, handling all financial functions. That is, everything from ordering, recording,
authorizing, signing, and accounting for all the assets, liabilities, and equity, is done through Ms.
Ireland and Mr. Smith. Ms. Ireland runs most of the financial transactions, and has access to the
banks controlled by the THBGC. Any major transactions must go through either Mr. Smith or
Ms. Ireland. It has also been brought to our attention that there are no receipts recorded for the
membership fees paid for each child. This means that there could be children that have not paid
the minimum fees for programs, and are still participating in the activities. The THBGC is
audited annually by an independent accounting firm, Sackrider & Co. as to comply with the
stipulations set by United Way as one of United Way’s funded organization. So far, the CPAs
have issued an unqualified opinion, which depicts that there is no error in the accounting

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procedures of the organization.
Auditing Concern
From an auditing standpoint however, there is cause for concern in the high inherent and
control risk of the internal control, which Dr. W. Svihla has noted about the organization. This
increased risk also denotes an increased risk of material misstatement. In essence, the way the
organization is set up increases the chance of theft, error, and/or fraud.
Ideal State
In an ideal situation, there would be a segregation of duties at a minimum. An internal
control and an audit committee on the board of directors would also greatly minimize the risks
that are currently present in the organization. Although Sackrider & Co. may discloses that there
is increased risk in the organization, as a CPA firm they are still liable should the organization be
pulled into litigation. Dr. Svihla has been on litigating teams as a CPA and a lawyer and has
witness many such situations where the accounting firm that issued the audit was greatly
punished for the lack of changes in procedures, etc. Another suggestion would be to have
someone on the Board of Directors reconcile the bank statement as a control over what has
happened in the month passed. This will greatly reduce the risks associated with the Club
currently. Another control that would reduce the risk of theft, etc. would be a periodic check of
expenditures by someone on the Board to verify that there are no large and/o unusual outgoing
payments in and out of the THBGC.
8. New Location
The current location of the Terre Haute Boys and Girls Club has served them for over

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100 years, but they are almost outgrowing the facility. Ideally, a new location for the THBGC
could be found that would accommodate all of their current and future needs.
9. Transportation
Currently, the THBGC does not offer transportation services to its members. An ideal
state for the Boys and Girls Club would be the ability to provide transportation to its members, in
order to safely transport members to and from events, and to possibly attract new members.

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RECOMMENDATIONS

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RECOMMENDATIONS
New Programs
During our research, we have observed a need for new educational programs and a need
for programs for female members of the Terre Haute Boys and Girls Club. We conducted
surveys and questionnaires and have developed the following recommendations.
Competitive Sustainable Advantage
In order to create a sustainable competitive advantage companies often implement new
products and services. The goal is to keep customers, current and prospective, from the same
monotonous routine. By adding a new program the Boys and Girls Club is able to keep current
members satisfied and attract new members.
Summer Program with the Mental Health Association (MHA)
In an effort to bring more educational programs to the Boys and Girls Club and to
compensate for the substantial cut in funding from the United Way, SyBA recommends a joint
project with the Mental Health America Vigo County Chapter (MHA). The MHA is also an
agency of the United Way of the Wabash Valley, and a combined effort would utilize funding in
an efficient manner.
We arranged a meeting with Marissa Tingley, the Youth Coordinator of the MHA.
During this meeting, we discussed programs that could benefit both the Boys and Girls Club and
the Mental Health of Vigo County while attacking the community void for one such program.
Ms.Tingley advised us that she would be willing to work with the Boys and Girls Club on a

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summer project and SyBA recommends the following options.
Too Good for Drugs
The first is a summer session of the MHA’s “Too Good for Drugs Program” which is an
educational program that could benefit the Boys and Girls Club. This program is designed to
involve not only the students, but their families and the community as well. This really targets
the desire stated by principles of the schools we surveyed for a program that encourages family
involvement and teaches kids the value and moral built from families. Students participating in
the “Too Good for Drugs Program” learn the importance of goal-setting, how to make decisions
to keep their bodies healthy, the harmful effects of tobacco, alcohol and other drugs on the body,
resistance strategies and decision making skills. This program would be presented and directed
by Ms. Tingley at the Boys and Girls Club for a week or more during the summer, with each
presentation lasting thirty to forty minutes. Ms. Tingley would need the assistance of one staff
member of the Boys and Girls Club, and she would bring the presentation materials.
No Fear Future Club
The second program is one that Ms. Tingley offered to open a chapter of the MHA’s “No
Fear Future Club” which would also be during the summer months at the Boys and Girls Club.
The “No Fear Future Club” provides activities to help students cope with stresses that may be the
beginning of many common mental health problems. Students participating in this club put their
skills into action while helping people of all ages. They learn the important role each individual
plays in the local community.
Some examples of projects that the “No Fear Future Club” has participated in are: Teddy

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Bear Drives, for children who are not in their own home; cards, decorations and small gifts for
nursing home residents, and hand created birthday cards for the residents of homeless shelters.
We feel that this program would provide educational and emotional assistance to the members of
the Boys and Girls Club and provide more community involvement for the Boys and Girls Club
members. Ms. Tingley has again offered her assistance, along with support from the Boys and
Girls Club staff members. This would be a program that the Boys and Girls Club could offer to
their members, as a means of teaching them the importance of recognizing everyone in the
society.
Softball
Softball is one of the new programs we decided to incorporate into the BGC organization.
We decided to implement this program because we think it is a great way to attract more female
members. We spoke with to the ISU softball coach who thought this was an excellent idea. Of
the 19 players on the ISU softball team, the coach, Brenda Coldren, agreed to volunteer some of
the players to participate in the program. Since ISU’s softball season runs October through
November, we thought it would be an excellent program to operate primarily during the summer
months.
We decided the first 3 weeks of each month should be working on skills and basic
education for softball and the fourth week should consist of a scrimmage with team captains. The
new teams should have a minimum of 10 girls, and 2 ISU players, and 1 BGC staff member. At
the end of the season each BGC member will be recognized and awarded an ISU softball award,
compliments of BGC and the actual ISU Softball team. The awards will include; most valued
player (MVP), most improved, most spirited, leadership, and participation. The winners will

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receive an ISU softball t-shirt, and/or season tickets for family and friends.
Soccer
Soccer is another sports program we decided to incorporate to attract more female
members. This program will run similar to the softball program, but it will be operated during the
spring season, March and April. Erin Murray the ISU soccer team’s assistant coach volunteered
to help us with the program. She informed us after speaking with the ISU soccer team members,
they were ecstatic of the opportunity to volunteer their athletic abilities for such a good cause.
Marketing
After identifying gaps within the Boys and Girls Club of Terre Haute, we as a group
concluded that there is a distinct gap within the marketing sector. Through research, we have
found the organization uses local television, newspaper, radio, and schools for advertising
purposes.
Current State
The organization uses the local news channels, 2 and 10, to set up question and answer
type interviews during commercial and news breaks. They use channel 102.7 on the radio for
spot fillers, and they use the “notice” section in the local newspapers. All of the television,
newspaper, and radio advertising are free of charge. The only money spent on advertising is the
cost of printing out flyers that are handed to local schools. The flyers are handed out to every
child in the Vigo County School Corporation, and the total cost of this is estimated at a total of
200 dollars.

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After identifying the Boys and Girls Club’s marketing objectives, we have noted as a
group that they have developed an advertising technique that is very cost efficient. Therefore,
we think it would be a great idea to help the organization by developing new marketing ideas
that would follow their marketing strategy. The following three recommendations for the
organization are cost efficient and may improve the marketing strategies of the organization.
Recommendations
The first recommendation is the utilization of Indiana State University’s film services.
The Boys and Girls Club could collaborate with students who are studying film at Indiana State
University and produce a commercial. This would be free of charge for the Boys and Girls Club,
and this would also be a great way for students at ISU to get hands on real world experience. In
doing so it would allow the viewers to see what the Boys and Girls Club has to offer (variety of
services, facilities and staff) the local children and community besides watching a question and
answer type commercial. Below is a sample of a commercial that has been prepared by the
marketing team of SyBA for Terre Haute Boys and Girls Club.
Commercial
Exterior: The beginning of the commercial should show the B&GC exterior shot
transitioning to Jimmy talking about the B&GC’s history in Terre Haute. (Example
picture provided below)
- “For 100 years the Terre Haute B&GC has provided the community with a safe
and enriched learning environment for the children in the local area.”
- 4 seconds

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Figure 1 – Commercial Image 1
Interior: After the transition Jimmy should be walking down the halls of the B&GC
talking about the mission statement. Then making his way into the gymnasium (talks
about the services provided), making his way into the computer room (talks about the
services provided),
Jimmy (hallway): The Terre Haute Boys & Girls Club's mission is to enable all young
people, especially those who need us most, to reach their full potential as productive,
caring, and responsible citizens.
- 4 seconds
Jimmy (gymnasium): Club members may participate in basketball and other games in
our gymnasium. The gymnasium is open for free play when our basketball league or
practices are not going on (have kids playing basketball or some kind game in the back
ground).
- 5 seconds

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Gymnasium
Jimmy (computer lab): Here at the B&GC we offer the computers providing access to
the internet and computer skills classes from beginners to advanced users (have children
browsing or doing homework on the computers).
- 4 seconds
Computer lab
Jimmy (arts and crafts room): Another program we offer is the Arts and Crafts Center,
where members can participate in numerous projects and explore their creativity.

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- 4 seconds
Arts and crafts room
Jimmy (learning center): Members can participate in tutoring, reading, worksheets, and
many more educational activities. These services are included with membership and may
be set up by contacting the club to schedule the sessions.
- 4 seconds
Learning Center
Jimmy (game room): The children at the B&GC may participate in open play or air
hockey tournaments, billiards, bumper pool, table tennis, shuffleboard or play games on

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our play station (have the children playing and laughing, showing them having a good
time).
4 seconds
Game room
Exterior: Jimmy is standing in front of the B&GC talking to the viewers.
Jimmy (says): The Terre Haute Boys & Girls Club's mission is to enable all young
people, especially those who need us most, to reach their full potential as productive,
caring, and responsible citizens. Come join the B&GC (state the fee), and be part of 100
years of tradition in the Terre Haute community.
- 5 seconds
Time Warner Cable
The second recommendation would tie itself into the completion of the first
recommendation. Once the commercial has been filmed and edited by the Indiana State
University Communication and Marketing department the Boys and Girls Club could broaden its

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marketing reach by paying for a cable commercial spot. If the Boys and Girls Club utilizes the
Time Warner Cable services the Boys and Girls Club would be able to reach a more diverse
audience (young adults, women, men or families). Time Warner Cable allows the Boys and
Girls Club’s commercial to be seen on key channels (see table below 1). The cable company
would also increase the geographical reach of advertising to target the potential members (see
table 2). We are aware that the Boys and Girls Club has been cost efficient but a cable spot
would not be costly at all. The table below that would illustrate the networks the commercials
would air on, the time the commercials would air, the number of commercial spots, spots per
month, monthly investment, and average cost per commercial. For 223 spots per month the
monthly investment is $250 dollars with an average cost of $1.12 per commercial. We think it
would be vital for the Boys and Girls Club to have a commercial produced utilizing Indiana State
Universities’ resources and then having the commercial played via cable net work and the local
channels the Boys and Girls Clubs currently use (channel 2 and 10).
Table 3 – Time Warner Cable Channels and Costs
NETWORK DAYPART SPOTS
FOXFAMILY M-S, 6am-12pm 25
HALLMARK M-S, 6am-12pm 25
NICK M-S, 6am-12pm 25
LIFETIME MOVIE M-S, 6am-12pm 25
TRAVEL M-S, 6am-12pm 25
CNBC M-S, 6am-12pm 25
OXYGEN M-S, 6am-12pm 25
ANIMAL PLANET M-S, 6am-12pm 25
TVLAND M-S, 6am-12pm 25

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SPOTS PER MONTH 223
MONTHLY INVESTMENT $250
AVERAGE COST PER COMMERCIAL $1.12
Figure 7 – Cable Network Service
Flyer Redesign & Redistribution
The third recommendation is a change in the way the flyers have been distributed recently. We
as a group think it would be better for the parents to be given the flyers instead of the children.
We believe many of the flyers are not even seen by many of the parents because they are thrown
away or discarded before they make their way home and are not guaranteed to even reach any
parents. We thought it would be a good recommendation to hand them out at parent-teacher
conferences and the flyers are reformatted so they could be more appealing to the parents

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(sample of flyers on the next pages).

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Spring & Summer Programs:
- Volleyball League
- Early-bird Summer Day Camp
- Summer Basketball Camps
- Junior Staff
- Golf
Fall Programs:
- Middle School Basketball League
- Basketball League
- Pre School Basketball League
- Parent/Member Free Throw Contest
- Basketball Skills Camp
- Flag Football
- Healthy Choices For Life
- Tumbling
- Cheerleading
- Fall Baseball
- Junior Staff
- Tutoring
New Gym
Alumni Involvement
Of Terre Haute
Indiana
Terre Haute Boys & Girls
Club
220 North 3rd Street
Phone: 812-232-2046
Fax: 812-232-2755
Membership Fees:
- $25 (member fee)
- $5 (day pass fee)
- $40 (golf fee)
- $50 (Early-bird fee)
- $17 (Non-member early-bird daily fee)
- $40 (Basketball Camp fee)
- $45 (Non-member Basketball Camp fee)
- $25 (Volleyball Fee)
- $15 (Basketball Skills fee)
- $40 (Pre-school basketball fee)
- $35 (Middle School basketball fee)
- $0
o Game Room
o Computer Lab
o Learning Center
o Arts & Crafts
o Gymnasium

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New Gym
The club is considering taking on the expansion of the West gymnasium as a strategy for
the growth of the organization. The purpose of the expansion is to achieve growth through
product/market exploitation, product development, or through product/market diversification.
Product/market exploitation targets current members and aims to increase their participation in
the activities the club currently offers. Product development also targets current members but
attempts to increase participation through offering new programs. As for product/market
diversification, the goal is to attract new members by creating new and improved programs.
However, due to several economic factors in the Boys and Girls club’s environment, we do not
predict that the expansion is a feasible project. These factors include the economic instability, the
scarcity of parking space, the increase in the program and facility expenses, and the high
switching costs in obtaining new members. If these issues can be resolved, and funds can be
secured to cover these expenses, we predict that the expansion would be a positive strategy for
growth.
Economic Instability:
Building a new gym during these times of economic uncertainty would be a
precarious decision. The Boys and Girls Club would have to invest over $1 million to build the
new gym. Since the beginning of this year, 240,000 people have been reported to have lost their
jobs in the United States. This could cause the members of the Boys and Girls Club to cancel
their membership because it just isn’t a high priority. For these reasons we feel the new gym may
not attract the new members the Boys and Girls Club had hoped for.

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Scarcity of Parking:
Parking is the main obstacle that stands in the way of building the new gymnasium. The
12,000 square foot expansion will extend the gymnasium to the North. This will result in the loss
of almost 50 parking spaces. Considering that the club already experiences a shortage of parking
spaces during league competition, this expansion will only intensify the problem. Parking away
from the club can become a nuisance and danger to parents and the club members. This could
dissatisfy them and result in the loss of their membership. Unless the club is able to secure
additional parking nearby, by purchasing an adjacent lot, or by building a two story parking
garage on the lot on 2nd street, the expansion will only harm the Boys and Girls Club.
Increase in Expenses:
The expansion of the gymnasium will result in the addition of almost 12,000 square feet
to the facility. Although the expenses associated with the new gym will vary depending on what
it is used for, there will be an increase in the program expenses, maintenance expenses, and
personnel expenses.
Heating and Electric Costs:
The addition of the gymnasium will increase the energy consumption at the Boys and
Girls club. We do not expect that this addition will affect the club’s utility costs in the short run.
However, in the long run, with inflation rates, the Boys and Girls Club will experience an

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increase in its utility expenses. Consider the electric expenses. The Boys and Girls Club is
currently enrolled in the Budget Billing Program for paying its electric bills, and pays a flat rate
of $1,331 a month, resulting in a $15,972 expense annually. If the electric rates increase at a 2%
rate every two years, in eight years, the Boys and Girls club electric expenses will be paying
$977 more a year. The following table illustrates the expected rate of increase for the electric
bill:
Table 4 – Increasing Electric Costs
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year
Electric Costs $15,972 $15,972 $16,291 $16,291 $16,617 $16,617 $16,949 $16,949 $17,288 $17,
In light of the current state that the economy is in, and the decrease in the funds that the
United Way provides to the club, these increases in utility expenses will affect the Boys and
Girls club’s long term operations.
New Program Costs:
One of the main goals of expanding the gymnasium is to achieve growth through product
development and through product/market diversification. Product development will require the
adoption of more activities and programs or the improvement of existing programs. This strategy
targets current members, and will hopefully lead them to participate in these programs, and
increase the club’s income through program enrollment fees. As for product/market
diversification, this refers to the creation of new programs that will target youth that are not
members of the Boys and Girls Club. Gaining these new members will increase both
membership and program fees.

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Although these new programs will benefit the Boys and girls club financially, the
operations of the programs will result in more expenses. To illustrate these expenses, we
estimated the basic costs that would be associated with hosting an indoor soccer league and with
improving the gymnastics program. According to a survey we distributed to 148 students from
Terre Haute South, North, and West Vigo, asking them what activities and programs they would
like to see implemented and improved upon at the Boys and Girls club, 9 percent of the girls said
that they would like to see an improved gymnastics program. Seven percent of the freshman said
they would be interested in indoor soccer. The implementation of these programs are attainable
and not out of the reach of the Boys and Girls club. The costs calculated include basic equipment
that the facility would need. For the gymnastics program, we obtained the costs of the basic
supplies that will improve the Boys and Girls Club’s current Gymnastic and tumbling program,
we referred to Professional Athletics.
Figure 8 – Gymnastics Costs
Equipment Cost
Four 5'x10'x4' Folding
Mats
$1,400
One Trampoline $800
One Balance Beam $1,800
One Horizontal Bar Set $1,400
Total
Cost
$5,400
Indoor Soccer:
As for Indoor Soccer, we obtained the costs of four soccer nets and twenty soccer balls

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from Sears.
Figure 9 – Indoor Soccer Costs
Equipment Costs
Four soccer nets/goals $280
20 Soccer Balls $360
Total
Cost $640
Gymnasium Maintenance and Upkeep Costs:
The expansion of the gymnasium will almost double the size of the current gym.
Currently, the floors of the gymnasiums are maintained professionally once every two years.
This costs around $2,400 for each gymnasium. We estimate that the 12,000 square foot
expansion will cost another $2,400 every other year. As for daily janitorial expenses, we do not
expect that they will be affected. Currently, these needs are covered by one janitorial staff and
the individuals serving community service hours at the club. Over a ten year span, the Boys and
Girls club will incur an additional $12,000 to maintain the new gymnasiums floor.
Hiring Costs:
Assuming the expansion leads to an increase in participation rates and/ or the adoption of
new programs, there will be a need to hire more staff to supervise the club members. Providing a
safe environment with professional supervision is an important competitive advantage of the
Boys and Girls Club. We recommend that the Boys and Girls Club hire at least two more

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employees to maintain this strength.
The table below calculates the cost that the Boys and Girls club would incur if it hired
one to five employees over 10 years. The calculations are made on the assumption that the
employees will be working 30 hours a week, 48 weeks a month, at minimum wage. The
calculations also include a yearly inflation rate of 1.032. The following figure illustrates the
effect of inflation on minimum wages for 5 employees over ten years:
Figure 10 - Inflation Increase effect on Minimum Wages every 5 years
Hiring two employees to help supervise the members and/or assist with the new programs
will result in an additional hiring expense of $19,468 at the end of the first year. The following
table is an illustration of the effect of inflation on minimum wages for 5 employees over ten
years.
Table 5 – Inflation Increase effect on Minimum Wage over 10 years

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Employees Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1 $9,734 $10,045 $10,367 $10,698 $11,041 $11,394 $11,759 $12,135 $12,523 $12,924
2 $19,468 $20,091 $20,734 $21,397 $22,082 $22,788 $23,518 $24,270 $25,047 $25,848
3 $29,201 $30,136 $31,100 $32,095 $33,123 $34,182 $35,276 $36,405 $37,570 $38,772
4 $38,935 $40,181 $41,467 $42,794 $44,163 $45,577 $47,035 $48,540 $50,093 $51,696
5 $48,669 $50,227 $51,834 $53,492 $55,204 $56,971 $58,794 $60,675 $62,617 $64,621
With the decrease in the funds provided by the United Way, it is important for the
Boys and Girls club to secure the funds to cover these new expenses, as to ensure they do not
interfere with current operations. The club would have to seek sponsorship, implement
fundraising events, obtain more membership fees by attracting new members, and obtain more
program fees by increasing participation rates.
High Switching Costs:
According to the survey we conducted, we concluded that only a small fraction of that
sample attends the Boys and Girls club. Furthermore, 35 percent of the students said that they
attended their current after school activity provider because their family and friends already go
there. This leads us to believe that the Boys and Girls club would have to implement heavy
marketing and program development to gain this market, resulting in high switching costs. This
poses a significant barrier to entry for this unreached market.
Alumni Involvement
An independent survey done by Louis Harris and Associates’ verifies that the Boys and
Girls Clubs around the globe run effective programs that help young children foster self-

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confidence, a sense of belonging, and hope to aspire towards their future goals. Furthermore,
research on alumni showed the various ways that many of the former members said the club
impacted their lives in one way or another. The results are as follows: 80% said the club helped
them know right from wrong, 79% said the club gave them self-confidence, 78% said the club
gave them self-esteem as a child, 72% learned good leadership skills while participating in club
activities, 70% avoided difficulty with the law because of the club, 69% said having someone to
talk to, 64% said the club helped them with their goals and aspirations, 57% said the club helped
with deciding about work life and later careers, and 56% said the club gave them the tools
needed to be successful in high school.
Alumni impact
It’s clear that the Boys and Girls Clubs’ has impacted millions of lives over the years. It
would be wise to keep in contact with these members. Everyone needs to have a sense of
belonging and acknowledgement for the things they have done whether it is in the past, present
or future. We believe that if the Terre Haute Boys and Girls Club were to tap into the resources
that they have acquired from past members they could have additional funding, volunteers, and
role models for the kids that have troubled lives.
Implementation
Possible ways to implement and improve alumni involvement would include: creating a
database that could help to keep track of all the current and past members, implementing an
Alumni Recognition Day, in where a former member would be recognized for their outstanding
contributions to the organization, making the website more interactive which includes adding a

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member login function that enables members to login to the website where all upcoming
activities are listed, and asking them to volunteer their time to help out around the club
(coaching, tutoring, mentoring, fundraising, etc.)
Board of Directors Reorganization
Researching the Board of Directors was a task in itself. There are many issues that the
Board of Directors are currently facing. One of the major concerns is the size of the board.
Having such a large Board has been affecting the efficiency of meetings. When you have such a
big board and there are many ideas and opinions, then it could become very difficult to make
comments, suggestions, and decisions. Another issue was the fact that the majority of the board
members for the club never attend actual board meetings. Also, some of the members are more
traditional, and may not be accustomed to change. For example, one individual on the board felt
that girls should not be allowed to join the organization, which is somewhat of a major concern
considering the Club is an organization serving both boys and girls.
Recommendation
Our suggestions for improvement of the Board of Directors for the Terre Haute Boys and
Girls Club are as follows: make board meetings mandatory; which would entail changing the
by-laws for the club. The by-laws should state the repercussions for not attending a board
meeting. The next suggestion is t restructure the board into different committees. This will allow
meetings to be more efficient, instead of having every board member offering input on every
topic, which is the way meetings are currently conducted. We came up with these suggestions

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after analyzing many other boards across the country in and around similar industries. Our final
suggestion is to implement a recognition day for outstanding board contributions in the same
manner as the Alumni Recognition Day.
These are possible solutions based on what we have seen other Boys and Girls Clubs’
around the United States are doing with their alumni and board of directors. These structures
and activities work well for the other clubs, thus we feel these suggestions will be beneficial to
the THBGC. We consider the board and the Club’s alumni to be vital assets to the
organization’s overall success, so it is necessary to maintain a steady and healthy relationship
between the two. In conclusion, since the club has impacted so many lives in so many ways we
feel that if the THBGC were to reach out these people they would be more than willing to do
whatever they can to help the company succeed. The members of the Board of Directors are key
stakeholders in the organization and it is important that the relationship between the board and
the club becomes stronger. These are just a few suggestions that will help the organization show
their appreciation to our alumni as well as the Board of Directors and increase the Club’s overall
efficiency.
Youth Football
Current State
To determine the gaps and recommendations for the Youth Football League we
interviewed Jimmy Smith who is extremely involved with the program and researched past
information about the program. The current state of the 4th-6th grade Youth Football League is
that it consists of around 550 participants with each of them being placed on teams based on

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what school they attend. Local schools include Woodrow Wilson, Otter Creek, Chauncey Rose,
Honey Creek, along with many others. This is the way the league has been run for many years
and has most certainly been successful. The following paragraph discusses a possible gap in the
league that needs to be looked at to help better the league.
After speaking with Jimmy Smith who is extremely involved with the league, we found
that there are some gaps with the current system regarding equal competition. One issue that
was brought up was the fact that the competition is currently uneven throughout the league. For
example; Woodrow Wilson’s team consists of at least 50 players on a yearly basis while
Chauncey Rose might have just enough to make a team. According to Jimmy Smith, “it is
giving the bigger (better) teams a false sense of achievement, and gives the smaller (worse)
teams a false sense of discouragement.” Also, with the teams that consist of 40-50 players there
is a decrease in skill development and experience because there are many who are not getting the
chance to play and learn the game. Players that are on the bench for some of the bigger teams
could be actually playing for and helping the smaller teams. In every other level of competitive
football the setup is made as equal as possible. It is understandable that the some parents and
students like and enjoy how the league is currently run. It is very convenient transportation wise
and it is nice to develop a sense of school pride. On the other hand, for these young athletes to
improve and develop into better football players, they need to be competing on a more equal
playing field where more kids are getting the chance to play and the competition is more
realistic.
The strategy that the Youth Football League would use to improve their league would be
known as a Horizontal Related Diversification Strategy. This certain growth strategy is used

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when a company seeks to add to its existing line new products that will appeal to its existing
customers. What we are going to recommend will relate to this strategy because it will add
features to the league that did not exist. Our recommendation will increase the value and
importance of the league by developing better players and competition in the long-run. In the
following paragraphs we will discuss a recommendation that will help the Youth Football
League create an equal playing field.
Identified Gap
The gap that has been identified for youth football is the inefficiency of the league. This
gap presents the Vigo County Youth Football league and the Terre Haute Boys and Girls club
with an opportunity to craft their strategy in a way that will improve the overall performance of
the league. Teams being unequal in the number of players and the level of skill can potentially be
catastrophic for the league. If children are not receiving an adequate amount of playing time, or
their team is losing over and over again, it might lower their self esteem and cause them to lose
interest in football. This could not only harm their interest in football, but other sports as well,
which could result in a loss of members for the club.
Draft Recommendation
It is recommended that the league implements a draft for the players in grades 4th-6th, to
assure that all teams have an equal number of players and skill. In order to accomplish this, the
children should be put through a skills test in order to gauge their current level of skill. The
skills test will include things like the 40 yard dash, agility tests, the vertical leap, and catching
and throwing abilities. After the players have completed the tests, they will be placed in

Terre Haute Boys And Girls Club Final Paper Revised

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