JJ Water Fun Co. (JJWF) is an organization that has contacted you for some help. As a consultant and close friends to the owners, you are going to assess their situation and address their concerns. Jason and Jack are both good people and individuals you have known for years. They are excellent in their field, but they are no financial wizards! They did not help you a lot in providing information. You will notice that some of the totals in the financial statements were not completed. As a result, you will have to total the financial documents and make sure the statements are correct. Their concerns are below.

JJWF is a Dallas based company that originated in 2010 with two employees: owners Jason Smith and Jack Thompson. By degree, Jason is a chemical engineering and Jack is a mechanical engineer. Jason and Jack have been friends for many years. Tired of the corporate world, they started their own business. When the company began, Jason and Jack had two trucks which both drove. Initially, they focused on swimming pool servicing (cleaning the pools and spas and adding chemicals on a weekly basis). They service residential and commercial pools, both chlorine and saltwater pools. Over time, they expanded their business to include repairs and maintenance (replacing vinyl liners, repairing leaks in gunite/concrete, and resurfacing the pools, replacing motors and pumps, etc.).

Within the last year, they have started considering getting involved with pool construction. This is a potential opportunity for the organization, but the initial costs to enter this market are very high. They served as a subcontractor about three months ago on the construction of two large pool and did an incredible job. The money they made, minus their costs, was very lucrative to say the least. In addition to their residence and commercial accounts, they secured a long-term contract to maintain several municipal pools and several YMCA's pools. Just these long-term contracts alone have tremendously increased their bottom line.

Something else that is interesting is Jack developed a device that increases the longevity of the chemicals in the water. The device is small, and it costed about $675.00 for Jack to make. As a courtesy to the customers, Jack had the technicians place these devices on all their customer's pools and spas. Whereas in the past, the chemicals were lasting for about four days, this invention prolongs the life of the chemicals for fifteen days. The cost savings in the use of chemicals when maintaining these pools and spas has been outstanding. Jack has started the process of patenting the device but has not completed the patent.

Everything seems to be going well and although the business is growing, they do not have a strong presence within this industry; probably because they are lacking in marketing the company.

As their services expanded, so did their need for employees. They own their own building where they have their office and equipment. Currently, they have 16 employees (including Jason and Jack), a store where chemical and other pool and spa accessories are sold, 14 trucks, ten technicians (that work on the pools), and two employees that work in the store. Jason and Jack focus on marketing their business and only go into the field if there is an issue that the other employees cannot solve. Thanks to training provided for the technicians three times a year, Jason and Jack seldom go out into the field. The turnover rate is minimum. Within the last two years, the organization has lost only two employees, and whereas this is commendable, the organization really does not have a succession system in place. Jason and Jack feel they need a succession plan where they are preparing an employee for their next position. Overall, the organization seems to be doing well. Other than a few problems regarding "a poor repair" according to one pool owner, the organization services their customers very well.

Something else that is interesting is Jason and Jack have empowered all their employees to make decisions in the field with the customers. For example, if a customer feels the costs were too high and the technicians agree, they can reduce the price charged for their services. Jason and Jack give them a 10 to 15 percent liberty to negotiate the price. Although this is great customer service, some of the technicians are not comfortable with making this decision because they lack these specific skills. However, the employees are very innovative and creative when it comes to problem solving. In fact. Many will claim the organization has a competitive advantage in area of creativity and innovative. Within the last five years, the organization has incorporated as a partnership, and they took on about 75 stockholders.

Jason and Jack treat their employees with a great deal of respect, work with them on their schedules, provides three-week vacation, five days for sick leave, and benefits include medical, dental-, prescription-, short- and long-term disability, and life insurance.The company does not offer benefits for the employee's families. The employees pay a $15 co-pay when the employee goes to their general practitioner, a $10 co-pay for dental visits, $35 for specialists' visits, and a $15 co-pay on prescriptions. In addition, Jason and Jack believe there is a correlation between good health and exercising, and as a result, they reimburse their employees up to $35 a month. This has proven to be highly effective because within the last two years, the company has recorded only five days where employees were sick.

The company focuses on the Dallas area but are constantly getting calls outside of Dallas. Interesting to note, their customers are equally coming from North, South, East, and West side of Dallas. As a result, they are able assign two employees in North, South, East, and West Dallas, and thanks to technology, the employees do not have to come into the office daily. The employees received their daily works orders each day through the computer or mobile device. Two employees are "floaters" meaning they go in the area where demand in the highest.

There are 48 Swimming Pools in Dallas County, Texas, serving a population of 2,552,213 people in an area of 873 square miles. There is 1 Swimming Pool per 53,171 people, and 1 Swimming Pool per 18 square miles. (countyoffice.org). The swimming pool and spa business has many competitors, and as a result, the organization is in a monopolistic competition market structure. They have grown over the last ten years because of the quality of work they provide. They are particularly good about being at an appointment when scheduled and according to their latest data, they are on time about 98.5% of the time.

Whether it is their service, repair, or chemicals, their prices are about 10% lower than their competition, and if they enter the construction market, it too will be 10% below the competition.The economy is good in Dallas. In fact, within the last two years, research indicates new pool construction has increased 35 percent. The market that is responsible for this is the millennials. Some analysts believe that COVID had something to do with this because people are staying home more. Also, research suggests that swimming and water activities is great exercise. This goes together with the millennial generation because they are of the healthy mindset.

Due to a City Ordinance, the Dallas area and Dallas County requires a fence to be placed around the pools for public safety. With this ordinance, the JJWF is considering branching out to include installing fences.

With the Dallas area growing, business is good, and according to the last economic forecast, growth will continue for the next ten to fifteen years. The only concern the company is facing currently is analysts indicated that the housing industry is about to burst. With homes overpriced and building at an all-time high, economists think this market has hit its apex and will rapidly decline within the next six to twelve months.

Here are the organization's mission and vision statements, and the financials.

JJWF has provide you with a partial list of their finances. Although they have confidence in you regarding their privacy, they wanted to limit their information to just a few categories they felt were important, and to prevent information overload. Below are their mission, vision, and financial statements. Note on the finances, there are some totals not completed.

Mission Statement

JJWF dedicates its products and services for the homeowners that want a carefree pool. Our organization focuses on providing reliable services and products that are environmentally safe. We are also committed to creating loyal customers but serving our communities by giving back. Due to our networking with chemical researchers, we provide our customers with the latest formulations of the most effective chemicals.

Vision

Creating clean pool for the next generation.

Income Statement

Revenue

Sales $ 9,400,000

Governmental Contract Income $ 6,500,000

Total Revenue $ 15,900,000

Expenses

Employee Salaries $ 2,400,000

Employee Benefits $ 430,000

Utilities $ 35,000

Equipment $ 1,600,000

Maintenance and Repair $ 45,000

Insurance - Building $ 5,000

Supplies $ 400,000

Taxes $ 1,100,000

Total expenses $ 6,015,000

Net Income --------

Balance Sheet

Assets

Current Assets

Cash $ 1,900,000

Accounts Receivable $ 525,000

Inventory $ 1,050,000

Investments $ 3,500,000

Total Current Assets $ 6,975,000

Property and Equipment

Equipment $ 1,600,000

Total Assets $ 8,575,000

Current Liabilities and Stockholder Equity

Current Liabilities

Accounts Payable $ 450,000

Notes Payable $ 225,000

Accrued Expenses $ 300,000

Long Term-Debt $ 325,000

Total Current Liabilities $ 1,300,000

Stockholder's Equity

Common Stock $ 4,300,000

Treasury Stock $ 2,975,000

Total Stockholder's Equity $ 7,275,000

Total Liabilities and Stockholder's $8,575,000

Equity

Questions

1)Based on the case, consider the Strengths, Weaknesses, Opportunities, and Threats of the organization. It is very important to remember that without a thoroughly SWOT analysis and a thorough IFE and EFE, the strategy cannot be an effective tool. Therefore, be as thorough as possible in identifying the SWOT factors. Be sure to distinguish between internal and external.

2)From the SWOT analysis, make an Internal Factor Evaluation (IFE) and an External Factor Evaluation (EFE). Upon completing both evaluations, explain the total weighted score and if the organization is doing well or needs to improve. provide a Chart for both the IFE and EFE.

3)(A)What do you see as the organizations core competencies and competitive advantage?

(B) Based on the case, the organization's core competencies and competitive advantage, the data provided, their SWOT analysis, IFE and EFE statements, what should be the organization's strategy as for competing?

(B) In addition, who should be their target market?

(C)What means of marketing would you use to attract your target market? Validate your comments.

4)Consider the organization's, mission and vision statement. Are they appropriate, or should they be revised? (See the appendix for the example to use)

(A) Regarding the mission statement, are all nine components of a mission statement included? If so, identify each of the nine within the current mission statement. If the statement needs revision, revise it including the nine components of a mission statement. Show the number next to the components as shown in the example at the bottom of this document.

(B) Regarding the vision, it is appropriate? Does it provide what is required to have an effective vision statement, and does it provide guidance on where the organization intends to go and what they want to become? If it does, validate why it is appropriate. If it is not, revise it to reflect a strong vision statement

5)JJWF seems to have many positives. Based on their financials, calculate their ROA, ROE, Current Ratio, and Total Asset Turnover. Upon calculating it, what do these ratios tell you about their organization. Remember, providing a definition of an ROA, ROE, Current Ratio and Total Asset Turnover, is ok, but it is important to explain what each of these mean to the organization specifically