Calloway Laboratory Pee for Profit Overview Company History The Architects of Calloway Operations Quest For New market SWOT Analysis Five Forces Questions Financial Analysis Recommendations Company History Est. Sept 2003 Substance Abuse screening & Alcohol Treatment centers No Income for a Year 2006 ,57,28,120,160, 20mn. Arthur Levitan -CEO Young Entrepreneur Education (Engg-2yrs & Mgmt Degree) Achievements: - Physical Therapy Business - Board Of Directors Of AIA - CEO of Calloway Kim Mayyasi Entrepreneur Education - MIT Graduate Achievements: – Co-founder of Cellular one – CEO of Vialog (Teleconferences Services Company) – Managing Partner at Hill Holiday (Ad agency) Calloway Operations The Four Major Activities. Specimen Collection Testing Reimbursement Sales Operations Video Specimen Collection A service offered by very few of its competitors Owning this component reduces tampering issues – a major area of concern Building fleet of collectors on available labor and gradual upgradation Satellite tracking of its delivery vehicles ensuring schedule adherence State of the Art Testing Equipment Mr. Mayyasi incorporated use of cutting edge instrumentation and automation of the testing process Use of software interfaces to communicate more efficiently with consumer end systems Using up to date industry standards relating to testing procedures Reimbursement Received reimbursement from third party insurers, taking over the entire billing process and using accurate methods Conducted testing even for uninsured patients Relied on volume sales for profitability Working with government institutions Sales Strategy Identifying the major market demands and addressing them specifically Aggressive account acquisition on behalf of Calloway Labs Merging use of accessibility via the internet and providing security for sensitive information – Pioneering provision of results over a secured proprietary site Quest For a New Market The Pain care Management Market offers a profitable new avenue. -9 million patients abusing pain medication -Dire need for medical professionals and insurance companies to monitor the abuse and decrease the downstream costs -Majority Of patients being insured Strengths and Weaknesses Strengths: In-depth Market Knowledge Used State of the art Technology to gain advantage. Sustainability Innovative Marketing strategy Strategic Alliances with pharmaceutical companies and medical directors Weaknesses Handicapped- Accessibility of doctors Troublesome revenue forecasting Big competitors threat Financing Calculations Overall Strategy (Start up Phase) Identifying a unique underserved market Understanding the demands and needs of the industry and tailoring the basic setup likewise Complete ownership of the entire process chain hence acquiring better control over quality and time management issues Enlisting specific experienced individuals who would help exponentiate the growth of a startup organization Overall Strategy Efficient use of available resources and harnessing cutting edge technology. Concentrating on markets which provide no direct confrontation with the big players. Advanced Strategy (Growth Phase) Identifying and entering a unique market – Pain Care Management which exhibits immense growth potential Watching the current political and ethical trends to identify new profitable markets- Growing Incidence of Prescribed drug abuse Future proofing Calloway Labs by forecasting definitive service areas- Buprenorphine Treatment Protocol Competitive Substitute Products: Calloway holds the edge providing Comprehensively Forces . superior services. Suppliers: Retains all Rivalry: In its Buyers: Third Party its accounts and Unique Market Insurers, Medicare equipment vendors position ,Medicaid , through exemplary large Corporations. performance and Calloway has no These require basic eventual payment. direct operating standard. competitors. New Entry: Hazardous owing to federal regulations political circumstances and calloways immense hold on servicing the treatment care market. Questions ? Calloway’s growth contrary to current circumstances-Work Culture & Strategy or Pure Chance ? Capital needed for growth internal generation of funds (gradual) vs External Funding (Immediate). Levitan’s Ask –I want my money back-how fair is it ? Financials Calloway Quarterly Income Statement FY2005 Q1 2006 Q2 2006 Substance Abuse Tests Total Revenue 10,797,739 4,071,900 4,320,000 Gross profit 7,995,889 2,697,323 2,824,818 Net income 4,833,273 1,517,345 360,728 Recommendations. Aggressive growth using VC money. Work with government and other corporate entities, identifying and influencing future trends. Implementation of physician relationship program. Extend its operation to different geographical markets. We Conclude . . . Almost pretty sure of the fact that every time any person in the New England area pees in a plastic specimen cup , It sure will be putting a smile on Mr Levitan’s Face.