zeb white wgu capstone project

2013

Eagle Fencing

Zeb White

[HELPING EAGLE

FENCING FLY] JKT Task 3 – Comprehensive analysis of and recommendations for a real-world small business

problem in the range improvement industry.

Helping Eagle Fencing Fly

Zeb White

MBA- Management and Strategy

Western Governors University

Table of Contents Abstract .......................................................................................................................................... 1

A1. Background: ........................................................................................................................... 2

A1. The Problem ........................................................................................................................... 3

A2. Analyzing Functional Areas .................................................................................................. 4

A2a. Analysis of Functional Areas .............................................................................................. 4

Area 1: Marketing ..................................................................................................................................... 4

Area 2: Leadership .................................................................................................................................... 6

Area 3: Product Development (differentiation) ........................................................................................ 8

A2b. Implementation of resources to improve Eagle Fencing ................................................ 11

1. Develop Traditional Marketing Considerations .................................................................................. 11

2. Develop Online Marketing Considerations (See Appendix 2 & 3) ...................................................... 13

3. Build Customer Relationships ............................................................................................................. 14

4. Educate employees of the company ................................................................................................... 14

5. Improve company communication ..................................................................................................... 15

6. Establish clear and concise goals ........................................................................................................ 16

7. Improve leadership ............................................................................................................................. 17

8. Build pride and commitment within the organization........................................................................ 19

9. Diversify product offerings.................................................................................................................. 20

10. Implement new products/services .................................................................................................. 21

A2bi. Timeline for Implementation of Solutions. ..................................................................... 22

A2bc. Long-term financial and organizational impact of the recommendation. .................. 23

B. Log of time spent with client ................................................................................................. 26

Appendix 1, Utah’s Population .................................................................................................. 27

Appendix 2, Examples Webpage and Website Index (Sitemap) for Eagle Fencing ............. 28

Webpage Example Design: ..................................................................................................................... 28

Website Index (Sitemap) ......................................................................................................................... 31

Appendix 3, Radio Coverage Maps:.......................................................................................... 32

Works Cited .................................................................................................................................. 33


1 Abstract

Eagle Fencing is currently facing a decline in its customer base and has been

experiencing this problem for the past few years. The following documentation analyzes and

identifies 3 possible solutions that could help increase market share as well as discover new areas

of opportunity for the company. The functional areas that have been used to evaluate the issue

and develop the solution are Marketing, Leadership, and Product Development. By utilizing the

information contained herein it is anticipated that Eagle Fencing will be able to gain new

customers, expand and increase profits over the coming years.


2 A1. Background:

Eagle Fencing specializes in providing top quality range fence for private land owners as

well as the Bureau of Land Management (BLM) and state agencies. Eagle Fencing (EF) has been

established as the ‘preferred contractor’ for the federal government in Southern Utah for over 15

years. The company is fairly small, employing 2 crews consisting of 4-6 full time employees

each with more workers needed in the summer months which is when the company’s ‘busy

season’ occurs. EF does little if any advertising and relies on word of mouth to obtain new

clients. The company serves a large geographical area covering several hundred square miles. Its

target market is varied; consisting of public organizations (rural communities), governmental

agencies (BLM and Forest Service), as well as privately owned farms, and ranches.

Eagle Fencing is capable of constructing over 75 miles of range fence a year, but for the

past 5 years a steady decline in work has been experienced and so far this year the company is

only on pace to build only about 25 to 30 miles of fencing. With the amount of fencing and range

improvement projects predicted this year the company is only looking at $150,000 -$180,000 in

gross sales. This current trend would mean that the company will need to lay off at least 50% of

its workforce to stay in business. With current equipment and a minor increase in staffing

(seasonal laborers) Eagle Fencing is capable of doing 3 times the work that it currently does and

at a price cheaper than the competition. By doing so the company would not need to lay off

employees during winter months and would be able to offer a more stable employment

opportunity.

Eagle Fencing’s strategy is to serve the most remote portions of Southern and Central

Utah where few other companies go. For the past 5 years Eagle Fencing has been experiencing a

slight decline in its customer base. The company employs a strategy of going where other fence


3 contractors will not in order to gain customer loyalty and build its reputation. The company

motto is “We fence where Eagle’s fly.” EF builds an extremely durable product that lasts for 10+

years which creates the need to the company to acquire new customers regularly. For this reason

it is necessary for the company to find new markets in order to continue to stay in business.

Without a constant influx of new clientele the Eagle Fencing will simply work itself out of a job.

A1. The Problem

Eagle Fencing’s customer base has been in a steady decline over the past few years. This

decline is resulting in an average 10% decrease in contracts awarded to the company. The

company is consistently able to win jobs against competitors at an 80%+ rate for federal and

state contracts due to its competitive bidding. The problem is that these contracts do not make up

enough work for the company to expand or even keep up its current operational level. Eagle

Fencing relies on word of mouth to spread information about the company; relying on its product

quality and low bids (due to low operations costs and efficiency) to win contracts. The company

doesn’t have a website and does not do any advertising. In an effort to expand its market reach

and gain new customers the company needs to develop a comprehensive plan that can be

implemented quickly in order to capitalize on the upcoming busy season.

A strategy needs to be developed and implemented quickly to help the company gain new

customers in order for the company to keep up its current operational levels. Without new

customers this year the company will have to lay off several more employees and could face

losing its status as a ‘preferred contractor’ with the BLM due to a lack of workforce. This status

helps the company gain a large number of government contracts and represents a large portion of

the company’s business and is critical to Eagle Fencing’s survival.


4 Several Functional Areas of the business could be contributing to the loss in customer

base and revenues. The first area that could be contributing to the problem is Marketing. A lack

of advertising and marketing avenues could be resulting in a lack of new customers. The second

functional area that might be contributing to the problem is Leadership. Leadership could be

affecting the company’s lack of new cliental in a variety of ways including the company strategy,

mission and vision. Finally Product Development could be affecting the problem because the

company only offers one specific product. By offering a differentiated product line the company

could potentially gain more customers.

A2. Analyzing Functional Areas

As is evident by the discussion above, the three functional areas most likely contributing

to a lack of new customers for the company are Marketing, Leadership, and Product

Development. These functional areas that could be stumbling blocks for Eagle Fencing’s growth

are outlined below.

A2a. Analysis of Functional Areas

Area 1: Marketing It has become apparent after completing a simple competitor analysis that a lack of

advertising and marketing avenues could be resulting in a lack of new customers for Eagle

Fencing. Eagle Fencing’s products and bid prices compare favorably to that of its competitors.

The company offers superior products at competitive prices with excellent customer service.

This would suggest that the company needs to expand its marketing avenues in order to build

brand awareness and capture a greater market share that just isn’t aware of Eagle Fencing’s

existence.

“There will always, one can assume, be a need for some selling. But the aim of

marketing is to make selling superfluous. The aim of marketing is to know and understand the


5 customer so well that the product or service fits him and sells itself. Ideally, marketing should

result in a customer who is ready to buy!” (Lancaster & Reynolds, 2005)

Currently Eagle Fencing does little if any advertising and the company marketing plan is

non-existent. It is recommended that the company develop a marketing plan that involves several

different areas in order to expand its market presence and increase the customer base of the

company. The competitors of the company already have several different avenues developed for

marketing, by mimicking these tried and tested methods Eagle Fencing will be able to deliver its

superior products to a wider range of customers. It is recommended that the company create a

marketing strategy based on a company website. The next step would be for the company to

create business cards, buy advertising from local radio stations and invest in fence signs to help

build brand awareness.

The new industry standard involves an online presence, competitors have already done so

and this could explain why Eagle Fencing has had a dwindling customer base over the past few

years. If Eagle Fencing can make use of an online marketing plan including a new website and

search engine sites like Google/Yahoo! it could build brand awareness. Building awareness

would allow the company to reach a larger market, and expand customer base as well as

revenues. By creating a website, Eagle Fencing will be in a better strategic position and will be

able to compete against its direct competitors. Due to past bid histories, in which Eagle Fencing

consistently outbids competitors, it is reasonable to assume that Eagle Fencing could eventually

expand to the point where it would serve the majority of the target market.

From past invoices and current market research the target market for Eagle Fencing’s

product has been identified as farmers and ranchers in primarily rural areas. A majority of over

85% of customers over the last 3 years are men over the age of 50. These individuals are often


6 retired; or people whose primary income source comes through their property whether it is used

to ranch, farm, or for other purposes. For the majority of the market fencing is a necessity,

having a border fence around your property is the law in Utah. Most of the target market lives in

extremely rural areas, with little or no interaction with the community, except when they come in

to town to get supplies. A marketing campaign has been designed to maximize potential

customers’ exposure to Eagle Fencing and the services it provides.

The new marketing plan has been divided into 2 areas; traditional considerations and

online considerations. These are broken down into the following specific marketing avenues:

1. Traditional Considerations

Radio Advertisements

New Business Cards

Partnerships with Retailers

Fence ‘Signs’

2. Online Considerations

Website creation* (Appendix 1)

Area 2: Leadership The second functional area that might be contributing to the problem is Leadership.

Leadership could be affecting the company’s lack of new cliental in a variety of ways including

communication, the company strategy, mission and vision. Abraham Lincoln once said that his

success was because of those around him while his failures were entirely his own. This same

selfless leadership model would serve Eagle Fencing well. Leadership is ultimately responsible

for the struggles of the company as well as the diminishing customer base.

In order to improve the company’s performance, the mindset of the company must be

modified to one that does the right thing for the right reasons. Honesty, tact, and encouragement

name only a few of these qualities and actions a leader should take in order to be successful. A


7

Success

Commitment

Communication and Trust

leader must also be ready to take responsibility for failure. It is important to note that a leader

doesn’t need to be perfect in order to be successful. Leadership should be encouraging, which

will help foster trust that will develop commitment from the workforce. In such a small

organization as Eagle Fencing it is of the utmost importance that a mutual trust and respect exist

between the owner and the crew foremen. Often times the crews operate autonomously for

weeks without oversight. It is important not only for the owner to trust the foremen to make the

right decisions for the company, but it is also important for them to trust the owner to bid the

work correctly and keep the crews busy throughout the year.

The best way to build trust within the organization is through communication.

Trust and commitment

result in accountability within any

organization. The owner of Eagle

Fencing is accountable to the

customers as well as the crews he

employees. The crew foremen share

in this accountability on a smaller

scale as well as having

accountability to the owner should

they complete work not up to Eagle Fencing standards, or if they complete a job late or exceed

their expense budget. Once the level of accountability expected is established the company can

finally reach the pinnacle of the performance pyramid. High performance will be the result,

helping the company reach its mission to expand operations and fulfill the company vision of

“Fencing where eagles fly!”


8 Team leaders should always be striving to get their team to the top of the performance

pyramid. Encouragement and thereby trust are the base that all successful endeavors are build

upon. In order to build up trust the leader must shake off the natural man and begin to think

outside the box. The book Leadership and Self Deception illustrates how mankind is constantly

putting labels on those with whom they interact with. Once we begin to do this we seek to see

that person as exemplifying the characteristics we have labeled them with in order for our

assumptions to be right. (Arbinger Institute, 2010) The first step to avoiding this living ‘inside

the box’ is being aware of it. Because of this Leadership and Self Deception is a strongly

recommended reading for all managers in this organization.

In order to make sure company strategy is envisioned and followed by the employees of

the organization open and honest communication must be a priority. Ownership should be in

frequent contact with the crews to ensure that they know what is expected of them and to hold

them accountable for reaching production goals. Eagle Fencing also needs to re-evaluate the way

the company communicates with its customers and potential customers. Communication is a key

aspect not only of quality Leadership, but of an excellent Marketing campaign as well.

Area 3: Product Development (differentiation) Finally Product Development could be affecting customer growth because the company

only offers one specific product; range fence. By offering a niche product the company is

eliminating a larger market which has similar needs and wants as the current target market of the

company. By offering a differentiated product line the company could gain more customers. Due

to the nature of fence construction offering differentiated products will require minimal

additional training and only a few new pieces of equipment. This small investment of time and

money could result in the company being able to reach a much broader customer base and help

Eagle Fencing capture a share of a much larger target market.


9 Recent studies of global fencing trends show that the major portion of the fencing market

is in metal and vinyl fence materials. “Of the four major fencing materials, metal fencing

accounted for more than half of the entire fencing market in 2012 due to an increasing demand

for security and safety. The plastic & composite fencing market is expected to be the fastest

growing segment in the coming years due to increasing demand, especially from residential

buyers. Growth in the metal fencing market is primarily driven by continued interest in

ornamental, chain link and barbed wire fencing across different end user segments.” (Market

Research Reports, 2013) With vinyl fencing being the fastest growing market segment at 30%

annual growth (Lifetime Vinyl Fencing, 2013) in the fencing industry, an expansion into the

vinyl fencing market is recommended.

Eagle Fencing currently only targets customers who are in extremely rural areas in need

of range fence. While the company does offer some variation in its products including: all-steel

fencing, a wood and steel mix, all wood, sheep wire and barbed wire variations the company has

yet to capitalize on more suburban projects that could help the company expand its customer

base. By offering new products such as vinyl and chain link fencing the company will be able to

attract customers who are in more suburban areas. Gaining a share of this high-growth market

segment will help Eagle Fencing continue to grow for the foreseeable future.

With the growing population of the state of Utah*(Appendix 1), more and more areas are

becoming suburban. “Between 2006 and 2007, Utah had the third-fastest annual population

growth rate in the United States, ranking behind Nevada and Arizona. This rapid growth is

expected to continue; by 2060 Utah’s population is projected to be over 6.84 million people. This

equates to a 146% increase in the next 52 years.” (Summers, 2008) Simply put; Eagle Fencing’s

dwindling customer base could be because of a trend in the lifestyle of potential customers


10 within the state. People who used to live in rural areas and own livestock now live on much

smaller lots and subdivisions where range fence isn’t needed and is often not permitted.

With these trends in the population of the state of Utah it is easy to see how the current

product offerings of Eagle Fencing are becoming somewhat obsolete. In order to re-capture a

substantial customer base Eagle Fencing will need to differential the products it offers. Thanks to

the nature of the business the company is in it will be relatively easy for the company to offer

these new products to its customers. Besides a few new hand-tools needed for vinyl and chain

link projects, fencing equipment within the company, especially the major pieces like ATVs,

post hole diggers, rock drills etc. will remain the same. Training will be relatively quick and easy

as well and is offered for free from several different companies that supply chain link and vinyl

materials. By sending company crews in for a simple 1 day of training the company will be

prepared to install these new products in a high quality manner.

Through training, advertising and the purchase of new tools Eagle Fencing will be able to

offer vinyl fence options to customers. Vinyl fence is installed using the same processes as the

current barb-wire and wood fence products offered by Eagle Fencing. Vinyl fence products are

currently being offered by the venders currently serving the company including IFA and Cal

Ranch stores. The company needs only to purchase the new materials and tools, take the time to

train employees on a few minor changes to the company’s fence construction process and Eagle

Fencing will be able to offer quality vinyl fence options.

Now would be the perfect time to do this training as busy season is just starting. The

recommended marketing campaign is ready to start and it could easily be changed to include

fencing products that are more suited to residential areas. It simply makes sense for the company

to offer products that will attract a larger customer base. Even in rural central and southern Utah


11 the majority of people live in communities with almost all new construction being in suburban

areas. Fences are long-lasting products that people most often purchase when they are building a

home or buying new property. Offering the products that target more residential areas will allow

Eagle Fencing to enter into a new market, one that is growing each year and could easily keep

the company’s crews busy throughout the year.

A2b. Implementation of resources to improve Eagle Fencing

1. Develop Traditional Marketing Considerations The first step in the new marketing campaign will be to create a new image of the company to

help make customers aware of the business as well as let existing customers know of a change in

company philosophy. The new logo could even be expanded to t-shirts and vehicle decals, giving the

company more advertising exposure as its crews travel across the state. This new business card design can

be expanded to make signs to mount on fences completed by the company as well. The new business card

will look like:

The current marketing proposal includes several traditional marketing methods that Eagle

Fencing could use to attract new customers. A minor radio campaign will be sponsored for 3

months starting in June, which will cover the busiest time for fence construction. At the same

time new company business cards will be distributed to over a dozen retail outlets across

South/Central Utah that specialize in farm and ranch supplies. Signs will be placed on current


12 company projects that are close to roads with the Eagle Fencing logo, contact information, and

the new website address. This will give those who border current and past projects the

opportunity to be exposed to the company product firsthand, and give them the ability to contact

the company to inquire about more work in the future.

By putting business cards at various retail stores in the area Eagle Fencing can develop

business partnerships or ‘Affiliate Marketing.’ (Stokes, 2010) In exchange for a customer

reference from the retail company Eagle Fencing would buy materials for that specific project

exclusively through that retailer. This would create a mutually beneficial relationship between

Eagle Fencing and local retailers who are spread throughout the rural communities of

South/Central Utah. Example retailers could be IFA, Steve Regan Co., Cal Ranch Stores and

other farm and ranch supply stores.

Another benefit of the business is that Eagle Fencing builds fencing all over the state.

Several of these projects are twenty or more miles in length and cross or border public access

roads as well as well-traveled highways. By expanding the new business card layout and placing

it on a plastic sign the company can have simple, durable signs that can easily be mounted on

projects completed by the company. These signs can be mounted on gates on well traveled roads

or in other places highly visible by the public creating simple and cheap advertising for the

company.

Finally the company can purchase an advertising campaign with a local radio station.

Doing so will help more people become aware of Eagle Fencing and the products it offers. After

researching several different stations it is recommended that Eagle Fencing choose Mid-Utah

Radio as its radio advertising partner. The company serves the same geographical area *(See


13 Appendix 2) as Eagle Fencing; it offers competitive pricing and has a variety of stations at its

disposal that will help Eagle Fencing reach a wider range of potential customers.

2. Develop Online Marketing Considerations (See Appendix 2 & 3) Using affiliate marketing can also help recoup some of the costs associated with running

a website. “Advertisements on the web can take many forms. For example, (advertising) on

individual websites that attract an audience that you think may be interested in your products…

Alternatively, you can also sign up as an advertiser in one of the many affiliate networks around.

Such networks work like a sort of middle man between you and the other websites on the

Internet that displays your advertisements. Generally speaking, they allow you to advertise on

other sites without your having to manually search for relevant websites yourself." (Heng, 2010)

Due to this and other reasons explained above it is strongly recommended that Eagle Fencing use

affiliates as part of its marketing mix. It is also recommended that a website hosting company

such as the GoDaddy.com website builder be used to help the company create and facilitate the

creation of these partnerships.

Godaddy.com would offer several tools and personnel to help design and host the new

company website. Included in the costs are several features that will be beneficial to the

company as it starts out online. There are 3 main reasons that Godaddy.com has been chosen for

Eagle Fencing’s website needs. They are cost, features and ease of use. The ‘Website Builder’

option at GoDaddy.com is designed for small businesses just getting started online. It offers

several features including Hosting/Design/Email and gives you an easy to use website design

tool without having to purchase additional software. The tool offers 300 templates and 8,700

images (and gives you the ability to add your own images/video). It also offers an e-mail account

along with several other features, including the ability to expand, which makes it a great fit for

Eagle Fencing.


14 By using a new marketing mix combining traditional marketing elements along with a

new website Eagle Fencing will be able to expand its brand awareness and increase its customer

base. A new business card design, fence signs, and radio advertisements along with the creation

of the webpage will give the company several different marketing avenues that will help attract

new customers. The company’s current lack of a market strategy is resulting in very little brand

awareness among the public. The creation of a new strategy that employees both traditional and

non-traditional marketing methods should help solve this problem.

3. Build Customer Relationships The steps recommended for Eagle Fencing to take to ensure a positive online customer

relationship are:

Track marketing patters through retailers and alter advertising to maximize ROI.

Use a blog and e-mail feature on the website to promote customer feedback and give

the company the ability to publically address concerns.

Respond to customers in a timely fashion and put a disclaimer on the website

notifying customers that due to the nature of the business it might take a few days to

respond to their comments.

Offer a ‘quality assurance guarantee’ of at least 1 year on all work done by the

company to ensure that customer satisfaction is 100%.

4. Educate employees of the company This can be done in two phases, one targeting leadership within Eagle Fencing and the

other targeting the workforce. For the leadership (Crew Foremen/Ownership) the company will

need to provide training on the new product offerings including vinyl and chain link fence

construction. This is offered for free from the product’s suppliers and will only take 1 day for

each product. Management could then teach this knowledge, add their own touch/tailor it to the

company and then educate the crews on the new product offerings. The entire process would take


15 less than a week and would allow the company to offer new products to a much larger target

market.

Finally, for the management of the company, Eagle Fencing could also help educate and

develop quality leadership practices. One way to do so would be to require all managers to read

1-2 leadership based books each year. Books such as Lincoln on Leadership and Leadership and

Self-Deception will help each individual leader become a more effective asset to the company.

Ownership could also educate the crew foremen on the company’s mission, strategy and vision

on a strategic level. Having the two foremen informed on the direction ownership wants to take

the company will help them develop strategies to help the company reach those goals. All-in-all

education will help the company build a more capable workforce that will be able to more

effectively reach company goals.

5. Improve company communication “Communication (from Latin "communis", meaning to share) is the activity of conveying

information through the exchange of thoughts, messages, or information, as by speech, visuals,

signals, writing, or behavior.” (Wikipedia, 2013) Due to the distances between worksites and the

remote locations involved in the work communication will be a key to Eagle Fencing’s success.

Improving communication within the company and with customers of the company will help

Eagle Fencing obtain new customers and retain existing customers.

Communication can be facilitated by issuing company cell phones to each of the crew

foreman. Smart phones that make use of 4G networks will allow the company to get the most

coverage in the rural areas of Utah where the company operates. At the very least the company

needs to set up communication times at least twice a week between the owner and the crew

foreman. These ‘meetings’ will allow for the owner to re-focus the crew and set goals for the


16 current and upcoming weeks. It will also give the foreman the opportunity to bring up any

critical situations that have occurred throughout the week and make sure that they are staying

within the customer’s specifications.

Improved communication will help the company foremen make informed decisions that

are in the best interests of the company. Without enough communication the owner has to rely on

the judgment of the foreman who has little contact with the customer and might not know the

‘big picture.’ This could result in costly mistakes during the construction process that result in

lost time and finances. Improved communications would allow the foremen to complete jobs

without errors in the work, allowing the fence to pass inspection immediately after completion

giving the construction crew the opportunity to move on to the next job site without delay.

6. Establish clear and concise goals By having common goals team members will be more likely to do their best work

because it is in their best interest for the work to be done correctly and in a timely manner. It is

widely known that if a person is able to have a say in his or her own performance measures they

will take ownership of their development plan and will therefore be more likely to rise to the

occasion when a challenge arises. Getting workers and crew foremen to commit to the long term

goals of the company should be a priority for the ownership at Eagle Fencing. Without this

commitment it is unlikely that the employees will see the company through the tough times

ahead.

To help establish goals and build high-performance teams Eagle Fencing should adopt a

bonus system for the two crew foreman. This would help motivate them to reach the goals laid

out by ownership and would give ownership the benefit of increased production without having

to increase the number of employees within the company. Currently company foreman are


17 compensated at a set hourly rate with wage increases every year. By offering incentives based on

the amount of time to successfully complete a job, ownership will help to motivate foreman (and

their crews) complete quality work in a timely manner.

Time is of the essence, most jobs through federal and state government entities come

with stipulations for contracts completed later than the contracted time. These ‘penalties’ could

result in Eagle Fencing being fined as much as $300 a day for every day a contract is late. This

includes the time it takes to make an inspection of the fence or range improvement project which

can make these penalties even more costly for the company. Furthermore fuel is by far the most

expensive expenditure of the company after labor. Completing jobs on time, or better yet early,

would mean less fuel spent for the company generating better profits for Eagle Fencing. By

passing some of these profits onto the crews or crew foremen the company could help stimulate

timely completion of the projects done by the company each year.

It is also important that ownership goes over the long-term (yearly) plan with crew

foremen. This will help crew foremen get a sense of the company’s goals for the year and will

help them set up their personal schedule for the year as well. Setting clear goals of what the

company hopes to accomplish during the coming year will help foremen gain insight as to what

they are expected to accomplish. Informing them will also help to show them that the company

respects their time outside of the workplace, treating the foremen as people rather than just

employees will help to build their loyalty and commitment to the company.

7. Improve leadership “To compromise is to make a deal between different parties where each party gives up

part of their demand.” (Wikipedia, 2013) One way to improve leadership within Eagle Fencing is

through compromise. Whether that comes in the form of compromising on customer demands or


18 the ownership compromising with crew foremen, compromise can result in both parties being

satisfied with the outcome of a situation. Due to the independent nature of the crews of Eagle

Fencing it will be critical for the ownership to compromise on important decisions as the

company faces this critical time in its existence.

Another way to improve leadership is through the lessons on leadership from Abraham

Lincoln found in the text Lincoln on Leadership. This is one of the recommended readings for

those in leadership positions at Eagle Fencing. The lessons learned within this text will translate

well into running a small business and will help develop better leadership practices within the

company:

Provide a clear, concise statement of the direction of your organization, and justify

the actions taken.

Be honest, but tactful. "You can fool some of the people all of the time, and all of the

people some of the time. But you can't fool all of the people all of the time." (Phillips,

2009)

Ethical leadership dictates that the decision maker, the leader, takes the fall for poor

performance by subordinates not the other way around. This model of leadership

shows that the person in charge is taking the responsibility associated with his or her

position. It helps to build up trust with subordinates and also motivates them to take

chances. Far too often we see the corporate executive who blames others for the

decisions that he or she was responsible for making. Remember that to encourage

workers to take chances and to try new ways of doing things a leader must assume the

blame if they fail and give them the glory if they succeed.


19 Never let personal feelings get in the way of doing what is right. Like Lincoln,

leaders need to be reserved and reverent. Be positive with those who you interact

with, most studies suggest a ratio of between 3:1-5:1 positive to negative comments

to workers in order to improve their performance and keep them motivated to

improve. Any more positive comments than 5:1 and they don’t seem genuine, any

less than 3:1 and the leader appears too negative.

“If leaders do enough of this - if they praise good work and encourage more of the

same - then eventually they will be able to relax and let their subordinates do most of

the work. And all the leader will have to do is guide them in the proper direction.”

(Phillips, 2009) If a socially responsible and ethical organization is to be created

leaders should follow the example set by Mr. Lincoln. Managers should be honest,

encouraging, humble, responsible individuals who inspire confidence and trust in

those who they lead. If they are able to do this the organization will be morally and

ethically sound.

8. Build pride and commitment within the organization Community outreach programs are a great way to help develop company loyalty and a

positive company image. Through service true happiness is found. It is recommended that Eagle

Fencing complete one job a quarter pro-bono. One such project has already been completed this

year when the company repaired a fence around a graveyard for a rural community. As a result

the company developed a positive image within this rural area. The company also gained a

reference and was able to showcase what kind of service and quality it provides to several

potential customers.


20 Taking this a step further the company could put fence ‘signs’ on such projects as well as

highlight them on the company website. Building a positive public image and giving employees

a sense of pride in the organization can only help the company improve performance and gain

new customers. This could also attract customers based on a positive company image and could

create many new, loyal customers who come to Eagle Fencing first because the company does

the ‘right’ thing. Giving back to the communities that keep the company in business is a fantastic

way to improve the long-term growth and value of the organization.

9. Diversify product offerings Finally, the diversification of product offerings will help Eagle Fencing establish itself in

new, growing target markets. Although there is little research to support it simple reasoning

would lead one to believe that the demand for fence construction in rural areas is declining as

Utah’s population continues to grow. By the same stroke the demand for fencing found in

suburban areas, such as vinyl and chain link fencing continues to grow with the growing

population. By shifting company focus from long, rural type projects to more compact, urban

type projects the company can keep up with the new trends in the market. This could help the

company survive the current tough times and hopefully thrive as it looks to move forward for the

next 25 years.

Offering new products would take little training and almost no new equipment from the

company. With little risk associated with the decision and possibilities of huge rewards the

decision to offer new products is a great option for Eagle Fencing. Several of the company’s

direct competitors already offer similar products and with the current niche market of range

fence dwindling it makes sense for the company to expand its product offerings.


21 10. Implement new products/services The company will need to advertise new product offerings through the aforementioned

marketing avenues. Training will be needed, which involves a short 1-day training offered for

free from the product vendors (IFA/Steve Regan Co.). With the purchase of new tools and

changes in the current fence construction process Eagle Fencing will be able to offer quality

vinyl and chain link products to its customers.

The resources needed to implement new products and services, specifically vinyl and

chain link fencing include simple hand tools including special drills, wrenches, and levels and

measuring equipment. Simple training offered by the product vendors will be needed to educate

crews on installment techniques. Minor changes to current fence construction techniques

including cementing post holes instead of tamping, and the use of more accurate measuring

instruments including laser levels, will be needed to offer these new products. Other than these

minor changes Eagle Fencing is already prepared and suited to offer vinyl and chain link

products to customers.


22 A2bi. Timeline for Implementation of Solutions.

Timetable for Solution Implementation.

First

Month

Create new strategic marketing and operations plan, inform crew foremen of the

new company direction. 06-25-13 to 07-31-13

Start new training and education program including set readings for crew foremen

and training on new product offerings. 06-25-13 to indefinite

Create new company website, business cards and fence signs. 06-25-13 to 7-31-13

Second

Month

Start new radio advertising campaign that will run for the following 12 months.

Partner with local station to create sufficient advertising coverage. 07-31-13 to 07-

31-14

Set up partnerships with affiliate retailers to help expand advertising and enhance

effectiveness. 07-15-13 to 8-15-13

Train employees on new product offerings and begin to advertise them to potential

customers. 07-15-13 to 7-16-13

Third

Month

Complete community outreach project, start searching for a new community

outreach project for next quarter. Project months: 08-13, 11-13, 2-14, 5-14, 8-14

etc.

Gather feedback from customers and employees for the past 3 months of operations,

evaluate and change company strategy accordingly. 10-01-13 to 10-31-13


23 A2bc. Long-term financial and organizational impact of the recommendation.

*(estimates on finances provided by the company and do not reflect actual numbers/ prices for

expenses are estimates only and may not reflect the actual cost to the company due to taxes/shipping

and other factors)

The following chart shows the financial impact of starting a new website using the

recommended tools. This chart includes the costs associated with hosting, advertising, and setup

with GoDaddy.com and shows the initial startup costs along with the yearly running costs. This

will benefit Eagle Fencing through additional advertising avenues along with improved visibility

through search engine optimization.

Costs associated with new online presence:

Product needed Start up cost Yearly costs

Domain name $12.99 $4.99 (5 year

Certification)

Hosting/Design/Email $0 $61.08 (with 3 year plan)

Google Apps for

Business

$0 $50.00 (per user per year)

Search Engine

Visibility

$0 $32.28

Programmer fees $75 $0

Total costs for website: $87.99 $148.35 (with above term durations)

The next chart shows the costs associated with the traditional marketing strategy

recommended for Eagle Fencing. It includes the unit cost per item along with the projected

yearly/extended time cost for the company. Due to the nature of the company’s target market and

information identifying characteristics of the current target market a Traditional marketing plan

is needed to reach potential customers. These costs will help the company build up brand

awareness within the target geographical area and will help make the company, and its products,

visible to the general public. This will be a costly change for Eagle Fencing but can also offer the


24 most benefits to the company due to the rural nature of the business and target market which

might not be reached by other advertising avenues. The establishment of a firm marketing plan

will be essential as the company looks to gain new customers and expand operations.

Costs associated with new Traditional Marketing avenues.

Product needed Unit Cost Yearly costs

Business Cards (per

500)

$19.95 Dependant on Demand

Fence Signs (per sign) $26.80 (each) $402 (1 for each project)

Shirts for Employees $111.84 (per 24) $335.52

Logos for Vehicles $8.39 each $41.95

Radio Advertising $900 startup $1,000 a month x 7

months = $7,000 (estimates

done by radio station suggested)

Total yearly costs: $8,699.42

Finally the 3rd

chart shows the costs associated with establishing company education and

communication policies. This will help to improve company leadership, collaboration and

improve communication. Due to the distances between projects effective communication is

paramount to Eagle Fencing’s success. Improving communication will also help improve

customer service and will give Crew Foremen the ability to better manage unforeseen problems

that arise during construction products. Following the chart the information based on the ‘test’

advertising month (which included a minor radio ad along with traditional advertising in local

newspapers) indicates a substantial market growth is possible for Eagle Fencing using the new

marketing avenues developed by the company.

Costs associated with education and communication.

Product needed Unit/Startup Cost Yearly costs


25 Books for employees $10 (each/varies) $60 (2 per year per 3 management members)

Company Cell phones

(Data/Minutes included with

Verizon Wireless)

$200 (depending on

phones and options)

$1,500 (includes data/minutes etc.)

Training on new

products (based on labor

costs)

$55 per hour (based

on typical crew pay rate)

$880 (2 crews at 8 hours each)

Total yearly costs: $2,640

Total Financial impact of recommendations

Costs for 1st year: $11,575.76

Expected growth percentage (based on May test market): 15% (per year)

Total revenues for last year: $186,000 (approximate given by owner) x 1.15 growth =

$213,900 or a $27,900 increase for the investment. The new campaign projects to generate a

positive ROI of approximately $16,324.24 per year.


26 B. Log of time spent with client

Date Subject/Description

Time

Spent with

Client

5/13/13

Initial meeting with client, went over assignment and plan for the

company, and received permission from owner Tony White to find

solutions for the company. Started test month advertising.

2.5 hours

5/20/13

Second meeting with client, areas of concern identified including

marketing and an online presence. Conducted initial interview and went

over general operations of the company.

2 hours

5/24/13

Discussed competitors’ strengths and weaknesses. Decided an online

presence and differentiated product offering was needed.

1 hour

5/25/13

Gathered financial information about the company, acquired info on

business history and past customer trends (occupation/location/age).

4 hours

5/27/13

Showed client proposed overview and solutions, got the go ahead to work

on the details and start compiling project.

1 hour

6/3/13

Went over project progress with owner, tweaked solutions to fit business

needs. Presented radio coverage data and website options to owner.

1 hour

6/10/13

Went over results of test month advertising and reviewed final numbers

within the project. Met with crew foremen to get input on final details.

3 hours


27 Appendix 1, Utah’s Population


28 Appendix 2, Examples Webpage and Website Index (Sitemap) for Eagle Fencing

Webpage Example Design:


29 Webpage Example Design continued:


30 Webpage Example Design continued:


31

Website Index (Sitemap)


32

Appendix 3, Radio Coverage Maps:


33

Works Cited

Arbinger Institute. (2010). Leadership and Self-Deception. San Francisco: Berrett-Koehler

Publishers.

Heng, C. (2010, September 12). How much does it cost to set up a website. Retrieved from The

site wizard: http://www.thesitewizard.com/gettingstarted/cost-setting-up-website.shtml

Lancaster, G., & Reynolds, P. (2005). Management of Marketing. Taylor and Francis.

Lifetime Vinyl Fencing. (2013, June 16). Frequently asked questions about vinyl fence.

Retrieved from Lifetime Vinyl Fencing:

http://www.lifetimevinylfencing.com/vinyl_fencing_faq.htm

Market Research Reports. (2013, June 17). Global Fencing Market. Retrieved from PRWeb:

http://www.prweb.com/releases/2013/3/prweb10497322.htm

Phillips, D. T. (2009). Lincoln On Leadership: Executive Strategies for Tough Times. New York:

Grand Central Publishing.

Stokes, R. (2010). eMarketing: The Essential Guide to Online Marketing, v. 1.0. Flatword

Knowledge.

Summers, L. (2008, October 9). The Impacts of Utah's Population Growth. Retrieved from Utah

Foundation: http://www.utahfoundation.org/reports/?page_id=270

Wikipedia. (2013, January 29). Definitions. Retrieved from Wikipedia The Free Encyclopedia:

http://www.wikipedia.org/

zeb white wgu capstone project

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