H&R Block had originally asked the different groups in Dr. Bruce Hartman’s Strategic Management class to prepare a strategic plan in order to implement a “Latino Blitz”. After careful research we found that only 10% of individuals living in Benicia are Hispanic or Latino. With much consideration, the South Hampton office group came to the conclusion that a “Latino Blitz” would not be applicable to the South Hampton office due to low Latino demographics. However, we still believe that it is important for there to be bilingual brochures and tax professionals. After careful deliberation with the H&R Block district manager for Vallejo, Dorothy Lirio-Casa, it was concluded that it would be best if the South Hampton group looked at other alternatives for a relevant project that would tap into underdeveloped markets. Dorothy Lirio-Casa discussed the “School House Program” with us, and encouraged that it be our main focus. Another program mentioned was the “Best of Both”. The South Hampton group decided that a plan inspired by the current district “School House Program” would be the best course of action. Our strategic plan is to expand the “School House Program” to colleges, with different promotions. It is called the “College Block Program”. The current “School House Program” consists of free tax returns for high school students, a 10% discount coupon for parents of high school students, and a flat-fee tax return service for high school teachers. These discounts are only available to students, parents, and teachers at high schools that are official participants of the “School House Program”. This project was compiled to the best of the groups’ capabilities on the information provided. “Our mission is to increase H&R current clientele base 10% by expanding our current tax preparation services to accommodate college students in the Benicia and Vallejo areas. It is our goal to guide them with their tax and financial needs throughout college and into their future careers, by establishing long-term relationships that will last a lifetime. Once the “School House Program” proves successful, we foresee a national implementation of the program within the next 5 years.”
To implement the “College Block Program” H&R Block representatives can visit college campuses and deliver presentations in classes or in communal centers to students and professors. Like the “School House Program”, the “College Block Program” can have flyers and coupons ready to be handed out at these presentations. These flyers and coupons can also be distributed into student and professor mailboxes. We, the South Hampton group, feel that the “College Block Program” has great potential for growth, not only in our local district, but as a nationwide strategy. Through this strategic plan, H&R Block will be accomplishing more than just a community-based service. H&R Block can capitalize on the “School House Program” by expanding into the college demographic. We will be acquiring a whole new clientele base, of students and professors alike. By creating relationships with the youngest generation possible, most of whom have a very promising future in the making, H&R Block is tapping into a pristine market. The “College Block Program” can guarantee that H&R Block will gain the recognition, retention, and recruitment they strive for. The Plus Minus Interesting (PMI) matrix was used to weigh the main influences that were the basis for choosing the “College Block” program in lieu of other strategic ideas that were pitched among the consulting group. As can be seen from the matrix it was felt that the befit of a program that has the option to be implemented on a nationwide scale (and possibly international) if successful would be an investment worthwhile. Plus Interesting Great new service +5 Not community -3 Niche opportunity +3 Could help students across the nation + 3 Possibly a high investment in "cost cutting economic times" -4 We are in a decent position for a in Benicia district. +3 Offers teachers a break +2 How many students file a full tax-return? -3 Long-term relationship with students +3 Potential huge market +3
Supplier power: We are our own supplier of services We train our tax own “Tax Masters” Supplier power is very limited Threat of substitution: Some substitution Online software packages (one time buy+ free upgrades) Buyer Power: Many potential substitutes such as free online tax prep. Can file your own taxes Figure - Porters 5 Forces model Objectives Develop a new market for H&R Block focused on college students Expand the “College Block” program throughout Northern California within 2 years Establish and build relationships with high school and college students that will last a lifetime. Increase customer base by 10 % within the initial 2-year period. Extend the program nationwide by 2015. Trial