Date: June 1, 2017

To: Joe Keipp, CEO

From: Nicholas A Flinn, Senior Estimator

Purpose
The purpose of this proposal is to expand our residential drywall division by adding a
commercial division. Commercial drywall will allow us to maximize our resources outside of
our current market share. Furthermore, a commercial division will allow us to secure customers
that have not solicited us due to our residential status

Current Problem
Since the economic crisis of 2008, the residential market has seen a steady, yet slow climb.
Home builders and general contractors have dissolved and reformed into a market that would be
considered elite by most. At the pinnacle of building, 90% of the homes built in the St. Louis
market were constructed by the top 10 builders. Currently that same 90% of homes are built by
fewer than 5 builders with the top 2 builders controlling 65% of the market. Although we were
able to maintain our customers as the market downsized we unfortunately were not able to hold
onto the same market share we previously had. Out of the top 5 builders in the St. Louis
industry, we are contracted by 3 and of the 3 we share that work with another drywall contractor.
In reviewing the history of our company, we can ascertain that this market share will not grow
past what we currently have. Furthermore, in the past 4 years we have been in what I would
consider a holding pattern. We have shifted our focus to sustaining the customers we have,
rather than actively seeking new opportunities. We have enjoyed some success in the multi-
family market but only in a residential application. This includes, apartments (4 stories or
fewer), senior living facilities, row or townhomes, and condominiums. Unfortunately, we are
excluding these same market types when they become what is deemed commercial by the
governing trade unions. A senior living facility that employs nurses is considered commercial
and therefore we pass on the opportunity to bid it. Our main reason for passing on this work is
because we do not have the historical data to rely on for proposing these different applications.
This is cutting us out of a significant portion of the market. It is also stifling the growth we need
and will not find in the residential market.

Proposed Solution
In order to expand our limited market, I propose that we aggressively chase these commercial
opportunities that we would have at one time passed on. This will provide the economic growth
we are looking for. To facilitate this directional change we will need to create a new position
that can work in a duel role setting, a hybrid. The duties of this new position will include
maintaining relationships in our residential market while actively pursuing commercial projects.
Exploring the varying production rates in the commercial industry to better understand the
bidding process along with establishing a systematic bid form will be part of the new positions
roles. This position will require an estimator/project manager of a senior status or higher. We
can expect a salary range for this position to be $100,000-$110,000, which is an industry
standard. In adding this position, we will be exploring a new market and it will be essential to
fill this position with someone who is well versed in the practices that have made our company a
success. For these reasons, I would like for you to consider myself for this new position. I have
been with the company for the better part of a decade, working through the most turbulent times,
all the while keeping profitability above those of our competitors. I have also established the
connections necessary to facilitate this new directive.

Conclusion
As a dedicated employee, I have proven myself and my abilities time and time again. I believe
that the sensitivity of this position, musters the skills of someone you trust. By promoting me to
this position you will be strengthening your companys market share while adding revenue and
profit. Please consider this proposal with the utmost regard. I believe that the timing is
impeccable for this move and I am ready to take the helm. If you have any questions regarding
this proposal, feel free to contact me accordingly.

Strategic Plan
My plan behind this proposal was to set the stage of a potential missed business opportunity. I
wanted to be front heavy on how we have not progressed at the pace our potential will allow. By
doing so, it should intrigue the reader to want to hear about how we can correct this blatant error
in business strategy. Once I lay out the plan to correct this error, I propose myself as the
potential solution. With my understanding of the issue at hand, hopefully, the reader agrees with
my assessment of myself.