Day 1 WDI Case Facts

Question 1

Day 1 Format

Answer 1

Situational Analysis (1.5 hrs includes reading)

• Vision, mission and values
• Key success Factors
• SWOT
• Targets
• High-level Quantitative

Strategic alternative #1 to #4

Operational Issues (around 2-3)

Overall Recommendation

Question 2

Vision & Mission Statement

Answer 2

Vision: To be a premier waste management company while meeting the needs of our customers, employees, local communities, and the environment.

Mission: We are waste disposal experts providing collection, disposal, and recycling services to our customers, using environmentally responsible and sustainable methods and leading-edge technologies.

Question 3

Values

Answer 3

1. Safety: operate safely and in compliance with all safety regulations.
2. Integrity: Act with integrity and honesty in an ethical manner.
3. Respect: Treat employees with respect and ensure they are adequately trained and fairly compensated.
4. Effective: Provide customers with effective and efficient service.
5. Technology: Stay up to date with waste disposal technologies and educate customers on waste disposal alternatives.

IREST

Question 4

Key Success Factors

Answer 4

• Effective management of fuel, disposal, and regulatory compliance costs
• Strong customer relationships and local long-term customer contracts
• Consolidating to achieve lower costs, vertical integration, and lower capital expenditures
• Strong local and government support for the various waste management programs, such as recycling
• Automation and advanced technology in waste disposal management

Question 5

Targets

Answer 5

● Improve the operating profit margin to 9%.

● Improve the recycling division’s profit margin to at least 5%.

● Increase annual free cash flows by at least $1,700,000.

● Lower GHG emissions by 10% or increase the avoidance of GHG emissions by 10%.

Question 6

SWOT Analysis

Answer 6

Strenghts: high customer retention, vertical integration, convenient locations from customers for facilities decreases fuel costs, route optimization software, transferrable skilled employees.

Weaknesses: lack of services to customers (plastic and aluminium) results in loss sales, management not alined with visions and mission, no financing available, lack of leadership since Kevin’s death

Opportunity: growing environmental consciousness results in increase demand for recycling, demand for the organic waste segment, residential market segment due to municipalities going external for waste management.

Threats: heavily regulated industry, push towards decrease of overall waste from government, employee retention, volatile recycling prices,

Question 7

Quantitative Analysis Ratios

Answer 7

Current ratio

Profit margin

Inventory turnover = COGS / Avg Inventory

Inventory days = 365 / inventory turnover

Accounts receivable turnover = Credit sales / Avg A/R

Accounts receivable days = 365 / AR turnover

Debt/Equity

Question 8

Strategic Alternative Format

Answer 8

Restate objective of the SA

Quantitative:

• State analysis conclusion in excel
• comment on available financing
• think about the company targets.
• other quantitative considerations
• recommendation

Qualitative (tie into situational factors***):

• 4 pros
• 4 cons
• recommendation

Overall recommendation and tie into the situational analysis again

Question 9

Operational Issues Format

Answer 9

State the operational issue

Tag them to the reason why are they happening

Why is it critical (so what)

Tag how they go against the situational analysis

Provide recommendation

Question 10

Final Overall Recommendation

Answer 10

State each SA in order of what to do first

Explain why there are a fit or not based on situational

Explain how each SA impacts the other

Re-state the key takeways from the operational issues analysis