(BEE)FOCUSED Driving value through strategic action DeGroote Consulting Group Elizabeth, Chinomnso, Marley, Britney

(BEE)FOCUSED hospitality financial institutions manufacturing & retail

How might Beekeeper strategically organize to drive sustainable profitability & growth?

key issues

key issues strategic focus 1 Beekeeper is providing services to many diverse industries, which has resulted in lack of strategic direction and focus - importance + - urgency + strategic focus organizational alignment 2 Internally, tension between engineering and sales teams resulting in frustration and confusion has decreased productivity Externally, Beekeeper must maintain existing customer base while capturing new and more risk-averse clients organizational alignment seasonality seasonality 3 Sustainable growth must enable Beekeeper to withstand seasonality which exists within the hospitality industry key takeaway Beekeeper must take value-driven strategic action to drive growth.

analysis

stakeholders’ analysis users employees power regulators customers investors interest key takeaway Strategic alignment will enable Beekeeper to deliver value to all stakeholders.

market analysis Hospitality Manufacturing & retail pros reach large portion of previously difficult to reach employees direct positive impact on customer experience decrease employee turnover increase employee satisfaction limited ability for workforce to be impacted by automation in future cons seasonality of hospitality industry can lead to fluctuation of revenues Manufacturing & retail pros reach large portion of previously difficult to reach employees decrease employee turnover increase employee satisfaction less seasonality cons increase in automation may decrease workforce Financial institutions pros decrease employee turnover increase employee satisfaction regulated industry mandates adoption of compliance software no seasonality cons competitive environment already dominated by Microsoft and others key takeaway The hospitality industry is best suited to adopt and value Beekeeper’s solution.

opportunities

opportunities Focus on hospitality Focus on manufacturing & retail 1 Focus on hospitality 2 Focus on manufacturing & retail 3 Focus on financial institutions

manufacturing & retail financial institutions Decision matrix factor weight 1 Focus on hospitality 2 Focus on manufacturing & retail 3 financial institutions strategic focus 0.5 4 organizational alignment 0.3 seasonality 0.2 5 total 3.6 2.9 3.2 evaluation scoring legend 1 low 5 high

preferred solution

(BEE)FOCUSED 1 year Build Engage Evaluate

implementation

Build ● Engage ● Evaluate key activities Build find new office space improve app to incorporate more data collection and feedback loop focus on hospitality client growth retain existing non-hospitality clients search for space redesign customer feedback loop pilot with client data considerations marketing non-hospitality clients may feel alienated clients are resistant to changes on app new office space may be difficult to find Engage Evaluate

Build ● Engage ● Evaluate key activities Build town hall meeting matrix structure implementation bee your own clients introduce/encourage rewards for app usage provide client memo in alignment with GDPR provide status call for investors Engage organizational redesign internal launch of app and rewards system considerations communicate new features employees may be resistant to change employees/clients may be more risk averse due to GDPR launch rewards system external engagement internal engagement Evaluate

Build ● Engage ● Evaluate key activities Build client check ins insight presentations change implementation assistance feedback loop evaluation Engage Evaluate ongoing client engagament considerations low implantation of recommendations low client interest in insight development

investment Build Engage Evaluate Sum of 0-3 months Sum of 0-6 months Sum of 6 month-1 year Build $1.1 m $1.0 m Engage $160.0 k $100.0 k Evaluate $200.0 k Grand Total $1.2 m $1.3 m

return on investment Revenue Growth Cash flows $3,960,000 Cost -$3,700,000 ROI 7%

key success factors

$ key success factors factor target timeline people employee engagement response 60% 1 year Client engagement response 40% $ profit Revenue % of cost 75% Hospitality as % of revenue 50% process Data sharing agreement 30-50% Feedback loop effectiveness 65%

risks + mitigation

risks + mitigation risk likelihood impact mitigation Lose non-hospitality customers M A focused differentiation strategy allows you to gain new customers by providing more value specific to their needs GDPR stops employees from engaging H Rewards systems gives employees a form of payment for their data Recommendations from data insights not implemented L Consistent communication about customer needs allows for personalized recommendations that will satisfy customers and are more likely to be implemented

(BEE)FOCUSED 1 year Build Engage Evaluate hospitality financial institutions manufacturing & retail

Appendix

Cost by department Sum of 0-3 months Sum of 0-6 months Sum of 6 month- 1 year Marketing $100.0 k HR $160.0 k $300.0 k Logistics $1.0 m Grand Total $1.1 m $1.2 m $1.3 m cost by department

Cost summary Sum of 0-3 months Sum of 0-6 months Sum of 6 month- 1 year Build $1.1 m $1.0 m Marketing $100.0 k Logistics Engage $160.0 k HR Evaluate $200.0 k Grand Total $1.2 m $1.3 m cost summary

Revenue breakdown Revenue breakdown 2015A 2016A 2017A 2018P Hospital 27% $260,000 $866,667 $1,386,667 $2,560,000 Manufacturing Retail revenue breakdown

Revenue breakdown revenue breakdown 2015A 2016A 2017A 2018P Hospital 40% $390,000 $1,300,000 $2,080,000 $3,840,000 Manufacturing 20% $195,000 $650,000 $1,040,000 $1,920,000 Retail revenue breakdown

Funding funding Year 2015 2016 2017 2018 Funding $1,500,000 $5,000,000 $8,000,000 funding