Maurice L. Woods
President

Headquarters
3801 Fairway Park Dr.
Suite #201
Copley, OH 44321
Phone: 330-670-0145

Branch Office
P.O. Box 209047
Chicago, IL 60620-9047

Email
info@harvestroa.com

URL
www.harvestroa.com

MEMO

To:     Monarch Company Senior Leadership Team

From: Your Harvest-ROA consultant

Re:     Benefits Case Document for the Investment in the Mini ID Chip

_________________________________________________________________

Below please find, in table format, benefit area(s) identified during workshops and interviews with Monarch employees over the past two weeks. For each benefit area, key activities have been listed that will be improved by making the investment in the Mini ID chip.

For each benefit area, business change parameters were set. A measurement was then established in the current environment (e.g. Present Level/Volume). A projected percentage change in these parameters and its impact on cash flows (i.e. income and costs) was identified.

Benefit Area:
Out-of-Stocks
Business Change
Parameter
Present Level/ Volume
%
Improvement
Impact on Sales/Costs
Increased sales

More appointments

Higher conversion ratio

Increased average sales value

12/person

25%

$250

10%

10%

10%

?

?

?
Increased customer retention

More proactive retention calls

Higher retention rate from proactive calls

2 person/day

35%

10%

10%

?

?
Reduced management information costs

Reduced system admin staff

Reduced system maintenance cost

$150K/annum

$250K/annum

80%

80%

120K

$200K

I believe this information will allow us to move to the next phase of Business Case Development.