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Foster Companies LLC.: Strategic Organizational Plan
Foster Companies LLC.: Strategic Organizational Plan
Prepared by:
Page
Executive Summary .....................................................................................................................3
Introductory Summary..................................................................................................................3
1.0 Organization Background ......................................................................................................4
1.1 Business definition ....................................................................................................4
1.2 Vision.........................................................................................................................4
1.3 Mission.......................................................................................................................4
1.4 Value Proposition.......................................................................................................4
1.5 Organization Structure................................................................................................4
1.6 History & Culture ......................................................................................................4
2.0 Situation Analysis..................................................................................................................5
2.1 Definition & Scope of Situation.................................................................................5
2.2 Stakeholders Effected ................................................................................................6
2.3 Competition ...............................................................................................................7
2.4 SWOT Analysis..........................................................................................................8
2.5 Market Position..........................................................................................................9
3.0 Plan .....................................................................................................................................10
3.1 Objectives, Strategies & Tactics...............................................................................11
3.2 Critical Success Factors ...........................................................................................13
3.3 Key Performance Indicators ....................................................................................15
3.4 Budget & Resource Allocations...............................................................................16
3.5 Timeline...................................................................................................................16
3.6 Evaluation Method & Anticipated Results...............................................................17
Appendices .................................................................................................................................18
A. Foster Companies Organizational Chart……………………………………………..18
B. Foster Companies Budget…………………………………………………………….19
References...................................................................................................................................20
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Executive Summary
This document presents a proposed plan for the 2020-2021 fiscal year to increase annual
revenue and improve both internal and external communication. This is so that Foster
Companies can become almost entirely self-sufficient. The information and data obtained
to create an understanding of Foster Companies’ current goals came from an interview
held with Foster Companies’ management Andrew Foster and Jesse Smith. This plan was
created after a detailed analysis on Foster Companies’ current organizational goals. The
objectives for this plan include:
Decrease role ambiguity by 20% among employees during daily tasks to increase
overall efficiency by December 31, 2021.
To increase tenant satisfaction by 20% by December 31, 2021.
Increase demand for storage units by 10% in returning college student-athletes by
Jan. 1, 2021.
Increase amount of communication with current tenants to improve customer
knowledge by x % over a year, measured quarterly starting Jan. 1, 2021
Increase brand awareness across ISU student athletics by 40% by the end of 2021.
Increase the number of student athlete leased storage units by 200% at the end of
2021.
If these objectives are met by the deadlines proposed within the plan, the plan has been
successful. At the beginning of the plan, there must be benchmarks established as a point
of comparison to reveal Bloomington-Normal resident’s current knowledge of Foster
Companies, current tenant satisfaction and employees’ current levels of job ambiguity.
Once Foster Companies internal communication is improved, there will be decreased
ambiguity in job roles, allowing employees to execute their jobs more effectively. This
will create opportunities for communication from employees to current tenants about
their satisfaction with provided services. Once Foster Companies external communication
is improved it will become a more recognizable brand, expanding their potential client
base. This will then create opportunities for increased annual income.
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1.0 Organization Background
This section covers the essence of Foster Companies as a whole business. It will define the
business operations at Foster Companies LLC. Additionally, it will address Foster Companies
vision, mission, value proposition, organizational structure, and history and culture of the
business. All this information included will provide the necessary supplementary material needed
to comprehend and understand the situational analysis and proposed plan.
1.1 Business Definition
Foster Companies LLC is a family owned realty and storage company that has been
serving the residents of Bloomington-Normal for three generations. The company was
started by the current owner’s grandfather and father who developed commercial real
estate in North Normal as general contractors. Flash forward to today, Foster Companies
LLC is primarily run by Andrew Foster and officially became an LLC in 2018. The
company now owns three large properties and sixteen storage units in the Bloomington-
Normal area.
1.2 Vision
VictoryLap PR created a vision statement for Foster Companies LLC because there is
currently none. Foster Companies LLC can either use the provided vision statement
moving forward or prepare a new one based on VictoryLap PR’s recommendations.
Our vision is to achieve the highest standard in commercial real estate and public
storage by providing low rates with personal and efficient maintenance to create
lasting relationships with tenants.
1.3 Mission
VictoryLap PR created a mission statement for Foster Companies LLC because there is
currently none. Foster Companies LLC can either use the provided mission statement
moving forward or prepare a new one based on VictoryLap PR’s recommendations.
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been passed down through generations while continuing to grow and evolve through the
years. Andrew Foster, the current owner, took over the business from his father who was
a general contractor for the area at the time. He owned several other properties and
eventually purchased this location in 1997. Andrew Foster has owned three properties
which were all recently combined, making them an official LLC in 2018. This family-
driven company caters to small businesses and takes great pride in the relationships they
have created with their customers. Foster Companies also collaborates with local well-
known individuals and leaders to enhance their presence on social media by offering
cross-promotional deals.
Foster Companies need to get their budget redone as they have consolidated their
business recently from three separate companies into one LLC. One of their most
important employees in the company recently passed away unexpectedly so they have
had internal issues with division of labor in the company. This is made increasingly
difficult by their small size and the company being kept within the family. They also need
to increase brand recognition in the town of Normal and among Illinois State students to
be able to find people to lease their storage units they offer
They need to get their financial records together following their consolidation. Now that
they are an LLC, they need to get everything aligned. They now are a flow through entity
and don’t get taxed on the corporate level anymore and now the income is being taxed to
the owners individually and no longer to the companies themselves. They need to adjust
how they use their cash flows since they can do it more freely now.
Following the passing of Larry Foster, one of few employees at the company they have
been having a difficult time with dividing work between their members. He handled a lot
of the bookkeeping and shared the duties of building maintenance with Andy. Now the
other employees have more work to do, losing connections to their tenants, being forced
to do things that they have less knowledge of than Larry did and having to outsource
more work to contractors.
They have an issue of brand recognition. Foster Companies offers the lowest prices for
storage units in the town of Normal and are not filling up because they are not known for
it. Their competitors specialize in this and are known as the go-to for storage units despite
having better prices and being in a less convenient location. They wish to be more well-
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known by college students who need a storage unit. This starts with them putting more
information about their storage units on their website, social media and on search
engines.
K’s Academy is a baseball training facility that trains a variety of athletes in the
community. They provide lessons and special training that boosts athletes abilities who
are involved in a variety of baseball programs in the community. K’s academy has an
effect on the success of multiple teams and programs in Bloomington-Normal. They train
athletes on Bloomington-Normal travel baseball teams, high school teams and college
teams. Many collegiate athletes pay to take lessons here, which affects the success of
Illinois State baseball team and Heartland Community College team. Investors and
donors for these teams boost the funding for these programs and create the need for elite
skills to be a part of these programs. K’s academy trains multiple major league players
that are funded by the financials of major league baseball organizations. Athletes
produced by K’s academy are also stakeholders in the Kernel Summer League hosted by
the Corn Crib.
Fort Jesse Building - storage units, the foster company businesses and people that rent
The gym that leases out the building, people who pay for membership.
2.3 Competition
Foster Companies stands out for offering the cheapest price per square ft. in the Town of
Normal. However, rental property in the Town of Normal is more expensive than it is in
Bloomington. Customers are paying for the location and convenience when renting
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storage units in Normal. However, competition in Bloomington has rental property
available for a cheaper price, but is also less convenient for certain publics.
Below are the different competitor categories which evaluate the competitors for both
sectors of the business. First, we evaluate the competitors for storage units on a four-point
scale of low (1) to high (4) competition factors based on location, price, unit and service
quality. Next, is the evaluation of commercial property real estate measured on a three-
point scale of low (1) to high (3) competition factors based on location and availability of
open units, price and quality of service. Low competitors for storage companies are
poorly located compared to our client and produce a smaller threat compared to the
competition in Normal. However the prices are competitive enough to still be considered
competition. High competitors for storage companies offer a competitive location and
price as well as high brand recognition. All competitors offer a year leasing contract, but
offer different discounts and incentives.
Low competitors for commercial property offer a different need for space than our client
and is located only in Bloomington. High competitors have competitive leasing properties
in Bloomington and the Town of Normal, as well as competitive prices and high brand
recognition.
Storage Express (3): Storage Express has multiple locations across Illinois which gives
the brand high recognition. The location in Normal has the largest range of sizes offering
unit sizes 3x4 to 10x30. The website offers a size guide, storage tips, a moving checklist,
and a blog. Like Twin City Self Storage, the website highlights a 50% off discount which
could be persuasive to a certain demographic.
Twin City Self Storage (2): Twin City Self Storage is a chain of storage units across the
country. They have a strong brand recognition and have brightly colored storage units
which are appealing to female customers. They offer a larger range of smaller storage
size options and have a “Storage Features” page on their website that describes the
functionality of different unit sizes. There is a discount highlighted on the homepage for
purchasing a unit online and works to grab the customer’s attention.
Market street self-storage (1): Market Street Self Storage is located in Bloomington, but
is close to Illinois State University. This allows them to sell storage units at a cheaper
price. Depending on the customer’s location in Normal, this company could be a closer
distance than the competition. They offer smaller units and have a competitive price.
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2.3.2 Commercial Property
Coldwell Banker Commercial (3): This company offers multiple available units for lease
in the Town of Normal. The cost per sq. ft. is more expensive compared to that of the unit
available from Foster Companies. However, Coldwell Banker Commercial owns more
property and leases to many businesses in the community. They have a higher brand
awareness and a professional website that is easy to use and gives
Core 3 Commercial Properties (2): Core 3 Commercial Properties has three available
commercial properties located in Bloomington only. They offer a site in Downtown
Bloomington, along with two smaller commercial sites similar to available properties for
sale by Foster Companies.
Hermes Property Management (1): Hermes Property Management offers one large
storage space and one business office space for lease in Bloomington. Besides these two
properties, they offer two large warehouse spaces in Bloomington, which is not
competitive for foster Companies. The website home page contains an easy accessible
display of the property they have available which could give this company an advantage
for an online customer.
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experiment with
different social
media platforms to
expand brand
recognition.
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Competitors include other property management companies, storage facilities, leasing
companies, etc. (see Section 2.3). Overall, Foster Companies LLC is able to distinguish
itself from its competitors through their low prices and deep rooted reputation.
Within the property management market, Foster Companies LLC is a company that
prides itself on building relationships. Foster Companies LLC is one of the few
companies of its kind that dedicates itself to providing close knit relationships with
lessees and renters. Having a stronger marketing approach and social media presence to
build awareness amongst Illinois State University students is the best option for Foster
Companies LLC to continue serving this competitive market. Foster Companies LLC can
grow its new client base by following this proposed plan to improve external and internal
communication.
3.0 Plan
This section provides an action plan for Foster Companies beginning on January 1, 2021 until
December 31, 2021. It builds on the previous two sections within the SPP. Our plan helps Foster
Companies reach some of their key goals and foster better relationships with tenants to retain
them and use them to recruit new tenants. Our plan consists of objectives, strategies and tactics;
critical success factors; key performance indicators; a new budget; an implementation timeline;
and the final evaluation method and anticipated results.
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the schedule of their
daily tasks.
Electronic message
reminders about the
tenants lease and when
their contract expires.
Improve management
strategy
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4. Increase amount of communication Two-way
with current tenants to improve communication Draft informational
customer knowledge by x % over a emails to update tenants
year, measured quarterly starting Jan. 1, on important company
2021 events and changes.
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3.2 Critical Success Factors
This table shows the objectives and the four critical success factors that could positively and
negatively affect Foster Companies.
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Increase amount Create Failure to check Company and
of customer email on behalf consumer Wi- Customer
communication feedback of tenants Fi to create and feedback
with current program to distribute program
tenants to evaluate the 3 Failure to content
improve
response complete Email access
customer
knowledge by x feedback
percent over a Send important program with Content created
year, measured updates on honesty by management
quarterly starting storage units
Jan. 1, 2021 via email
COVID-19
limiting
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practice
schedule
Objective 1 –Decrease role ambiguity by 20% among employees during daily tasks to
increase overall efficiency by December 31, 2021.
o Benchmark – No current benchmark.
o KPI – Mandate 90% of tasks to be recorded on the When 2 Work mobile app
starting Jan. 1, 2021
Analyze data bi-weekly to ensure work is being completed efficiently
throughout the calendar year
Objective 2 – To increase tenant satisfaction by 20% by December 31, 2021
o Benchmark – No current benchmark
o KPI – Tenant satisfaction to increase by 5% quarterly over the year, starting Jan
1. 2021.
Evaluate the data per quarter and adjust the percentages accordingly
Objective 3 – Increase demand for storage units by 10% in returning college student-
athletes by Jan. 1, 2021
o Benchmark – We found from our survey that 20% of student athletes said they
were interested in leasing a storage unit
o KPI - Student athlete demand for storage units should increase by 2.25%
quarterly over the 12 months, starting Jan. 1 2021.
Assess the demand by distributing a quarterly survey and adjust the
following percentages based on the quantitative data.
Objective 4 – Increase amount of communication with current tenants to improve
customer knowledge by x percent over a year, measured quarterly starting Jan. 1, 2021
o Benchmark – Secondary research provided by current tenants
o KPI - Incorporate and distribute feedback program at the start of every quarter,
starting Jan. 1, 2021
Assess tenant knowledge every quarter to evaluate and adjust efforts
accordingly
Objective 5 - Increase brand awareness across ISU student athletics by 40% by the end of
2021
o Benchmark - 4% of student athletes were aware of Fosters Co. LLC
o KPI - Evaluate monthly post engagements targeted towards student athletes on
Facebook to increase by 3.3% per month over the 12 months, starting Jan. 1,
2021
Assess data monthly and adjust percentages based on post engagements
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Objective 6 - Increase the number of student athlete leased storage units by 200% at the
end of 2021.
o Benchmark - 1 current student athlete leased storage unit
o KPI - Evaluate leases to increase by 1 unit, or 100%, bi-quarter over the span of
the year starting Jan. 1, 2021
Evaluate number of student leased storage units bi-quarterly, and adjust
the percentage based on results.
3.5 Timeline
If Foster Companies accepts the proposed plan, it will need to follow a rigorous timeline
beginning January 1, 2021. The timeline will be put in place to keep the proposed plan on track
and ensure the necessary steps will be followed. The timeline will give Foster Companies’
management a clear cut schedule of when things should be conducted in order to ensure the best
outcome. The timeline will also be color-coded to separate different objectives and categories in
order for the plan to more easily be followed and executed. It is very important that the plan is
followed as advised to guarantee the best results for the company. The timeline will be
interpreted by management and allow them to delegate work on a weekly basis to achieve the
plan’s completion. Due to many unforeseen internal and external factors, the timeline will be
flexible and subject to change as needed.
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Objective 2 – To increase tenant satisfaction by 20% by December 31, 2021.
o If tenant satisfaction increases by 5 percent every quarter over the 12 month
duration or totals at 20 percent by the end of the 2021 calendar year, then the
objective was successfully met.
o If the objective is unsuccessful, adjust management strategy for the following
calendar year to reach the conversion goal for the 2021 calendar year.
Objective 3 – Increase demand for storage units by 10% in returning college student-
athletes by Jan. 1, 2021
o If the student athlete demand for storage units increases 2.25 percent per quarter
or totals 10 percent by the end of Dec. 31, 2021, then the objective was
successfully met.
o If the objective is unsuccessful, adjust the efforts associated with increasing the
demand for storage units among student athletes (i.e. advertisement strategy,
contact communication strategy) for the following calendar year.
Objective 4 – Increase amount of communication with current tenants to improve
customer knowledge by x percent over a year, measured quarterly starting Jan. 1, 2021
o If the feedback program is successfully implemented at the start of every quarter
and tenant knowledge is increased by x percent by the end of the 2021 calendar
year, the objective was successfully met.
o If the objective is unsuccessful, use results from the feedback program to adjust
message content accordingly and distribute information monthly.
Objective 5 – Increase brand awareness across ISU student athletics by 40 % by the end
of 2021
o If the post engagement by ISU college student athletes increases by 3.3 percent
each month or totals 40 percent by the end of 2021, the objective was
successfully met.
o If the objective is unsuccessful, adjust social media and advertising tactics
targeted towards ISU student athletes (i.e. Facebook posts, Advertisement
content and placement) to reach the increase for the following year.
Objective 6 – Increase the number of student athlete leased storage units by 200% at the
end of 2021.
o If the amount of ISU student athlete leased storage units increases by 1 unit bi-
quarterly, or 100 percent, the objective was successfully met.
o If the objective is unsuccessful, adjust efforts associated with increasing the
number of ISU student athlete leased storage units (i.e. advertising campaign,
content and channel of communication).
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Appendices
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B. Foster Companies Budget
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References
Bloomington IL Storage Units: 24/7. (2015, December 13). Retrieved November 07, 2020, from
https://marketstselfstorage.com/
Core 3: Commercial Properties for Rent or Sale. (n.d.). Retrieved November 07, 2020, from
https://www.core3pm.com/commercial-properties
Home: Hermes Property Management. (n.d.). Retrieved November 07, 2020, from
https://www.hermespropertymanagement.com/
Self Storage Units for Rent in Normal, IL: Twin City Self Storage. (2020, October 07). Retrieved
November 07, 2020, from https://www.absolutemgmt.com/storage-locations/il/normal/2019-
eagle-rd/
Smudde, P. M. (2015). Managing public relations: Methods and tools for achieving solid success. New
York: Oxford University Press
Storage Units: 2717 N Main St, Normal, IL. (2020, August 27). Retrieved November 07, 2020, from
https://www.storageexpress.com/storage-units/il/normal/2717-n-main-st
Uncle Bill's Self Storage of Bloomington Normal. (n.d.). Home. Retrieved November 07, 2020,
from https://unclebillsstorage.com/
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