The Challenge

The co-operative structure served Total Tools well during its early expansion, however the same structure now began to stifle its ability to grow and react to changing consumer demands. It became evident to Total Tools that a new phase of growth was needed for the business.

• A national footprint was needed to combat big box hardware retailers who were claiming market share
• Total Tool’s import, administration and support programs were under funded and too reliant on a few member’s time and effort
• New members were needed to secure greater economies of scale and maximise supplier support programs
• A new corporate culture was needed to ensure Total Tools had the flexibility to react to market changes

The Solution

Total Tools engaged DC Strategy to develop a business model and corporate structure to ensure the ambitious growth targets of the group were achievable.

The project focused on several key areas including:

• Building a sustainable business model which allowed Total Tools to fund and support a rapidly growing network of independently owner stores. The model needed to be flexible enough to allow other potential distribution channels to be incorporated in the future.
• An economic analysis of the current stores, support office and import program to determine the scalability of the network. This was key to understanding how the growth of the network would be funded.
• Implementing a new recruitment and induction process to ensure the maximum number of appropriate prospects had an opportunity to join the network in the shortest possible time.
• How the people resources should be best utilised to maximise the likelihood of achieving thegrowth ambitions.

The Outcomes

DC Strategy worked with Total Tools to achieve the following:

• Unanimous member support for changing the business model to one which allowed autonomous Support Office decision making, an important step in achieving the growth objectives.
• Member support for a change to the Support Office revenue structure to fund network growth and ensure the support services for members were capable of facilitating the strategic growth desired
• A clearly defined plan for new store roll out and the corresponding Support Office resources required
• A new board of directors made up of founding members and independent directors was implemented and charged with ultimate responsibility of achieving the growth objectives

 

DC Strategy (International Head Office) Level 5, 530 Collins Street, Melbourne VIC 3000 Australia growth@dcstrategy.com

Australia Melbourne Sydney Brisbane Perth Canberra

+61 (0)3 8102 9200 +61 (0)2 8220 8700 +61 (0)7 3015 7600 +61 (0)8 6222 1011 +61 (0)2 8220 8700

 

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