Talismark Harvard Case Solution & Analysis

QUESTION 1

Evaluate Talismarks business. Will it be a successful smaller business? What are the opportunities and challenges?

            The owners of Talismark, Marchall Staiman and Charles Muszynski thought that the infrastructure of the company and the information technology were limiting the future sales opportunities of the business and limiting the profitability and growth of the company. The current approach regarding the sales of the company was such that only the local businesses were being targeted and this was proving to be inefficient and expensive for the company.

            The main problem with the current business of Talismark was that it did not allow the company to acquire the most valued customers. Furthermore, under the current information technology systems of the company, a large amount of work was done through manual processes therefore the rate at which new locations could be managed by the company and added was severely limited. Therefore, as a smaller business, Talismark would not be successful in the near future and an alternative option should be though by the company to overcome the deteriorating performance of the company.

            If we look at the revenues growth rate of the company over the past year then it could be seen that it is fluctuating continuously and it has fallen significantly, therefore the management of the company needs such a model though which the growth rate of the company stabilizes at around minimum 30%. Therefore, the challenge for the company was to develop such a business model which enhances the growth and profitability of the company.

            Marchall Staiman and Charles Muszynski had identified that if the company targeted the small national accounts of 100 to 500 locations and the company could then sell them at the headquarter level. By doing this the company could enhance its profitability and growth. However, there were also some challenges before the national customers could be targeted such as the designing of the most cost efficient way of conducting customer surveys, structuring the proposals, developing different database etc.

QUESTION 2

Why are the owners considering re-engineering its business model? The owners believe re-engineering requires Talismark to add no new customers during a two-year transition period.

Does that make sense to you? What are the alternatives? Note: Revenues will grow by 30% each year during the transition period as additional locations for existing customers are activated.

            The owners of the company, Marchall Staiman and Charles Muszynski are considering re-engineering the business starting from the fundamentals because the owners thought that the current business model of the company was not suitable for the long term profitability and growth of the business. Apart from that, there were many high value customers of the company to which the company could not access based on its current business model.

            Along with this, the owners of the company also believed that if the current growth trend continued for the company then after a few years the company would become of such a size that any other waste hauling firm or waste outsourcing firm might acquire Talismark. Therefore, the owners of the company were thinking to re-engineer the business model of the company.

            Furthermore, the owners of the company think that it is going to take approximately to transition the sales from the small national customers and the main reason for this was that the backlog of the locations from the most recent sales of the company was much high therefore, it is going to take around approximately 18 months that these contracts are fulfilled before the small national customers could be approached. A second problem due to which the transition period has been introduced is that the current information technology system of the company is also the reason due to which additional value customers are not being approached by the sales people.Talismark Case Solution

            This is because a considerable amount of work on the current information systems is being performed through manual processing which is increasing the processing time. Therefore, the transition period of 2 years makes sense however; it could be reduced to 1.5 years also if the management of the company could cancel some of the contracts with its current customers. This is one of the alternatives to reduce the transition period...................

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