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Letter of Transmittal

Team 6
Copeland Hall
BUS202I
Athens, OH 45701
Section A01
___________________________________________________________________________
October 19, 2005
The Morning Business Cluster Faculty Team
College of Business
Copeland Hall
Athens, OH 45701
Dear Morning Business Cluster Faculty Team:
As you requested, our team prepared a report to recommend a marketing and management
strategy for increasing the revenue and awareness of The Dairy Barn Southeastern Ohio
Cultural Arts Center. Our market research survey provided much information and affected
our decisions regarding the plan. This includes the current budget of The Dairy Barn; the
opportunities The Dairy Barn has not yet explored, and a coalition with the surrounding
cultural art centers of Southeastern Ohio. Our plan also includes ideas on how to improve
The Dairy Barns current website by making it more appealing and functional, advertising
strategies. We conducted a market research survey that demonstrates how little the local
college community knows about The Dairy Barn.
There is no doubt that The Dairy Barn has the potential to be an international entity, and is
well-known for their biennial Quilt National. However, being a nonprofit organization and
located in a rural area makes it difficult for the organization to make enough revenue to keep
it breaking even. Our goal is to increase revenuesnot only deliver capital to keep it
running, but also enough to grow and make The Dairy Barn organization widely recognized.
Business professionals, such as Sally Dunker and Jeff Chaddock, sparked our ideas regarding
a coalition and also showed on ways to advertise at minimal costs. Minimal costs are integral
to our strategies, and both professionals prepared us to accomplish these goals for The Dairy
Barn.
Thank you for the opportunity to analyze The Dairy Barn and to recommend its strategic
direction. Please inform us if we can be of further assistance.
Sincerely,
Group 6:

Samantha Przygocki Laura Spotts


Brady Sharrer
Ryan Wynn
Jason Simon

Push the Limits


A Look at How The Dairy Barn Will Increase its Revenue and its Awareness Locally,
Nationally, and Internationally

Prepared for
Tod Brokaw
Dr. John Kiger
Dr. Arthur Marinelli
Dr. John Schermerhorn
Ohio University
Athens, OH 45701

Prepared by
Samantha Przygocki
Brady Sharrer
Jason Simon
Laura Spotts
Ryan Wynn
Ohio University
Athens, OH 45701

October 19, 2005

Table of Contents
Executive Summary........................................................................................................................
Introduction......................................................................................................................................
Company Overview.............................................................................................................
Situational Analysis.........................................................................................................................
Current Mission...................................................................................................................
SWOT Analysis...................................................................................................................
The Current Website............................................................................................................
Marketing Strategy...........................................................................................................................
Mission.................................................................................................................................
Objectives............................................................................................................................
Target Market Segments......................................................................................................
Marketing Communication..................................................................................................
The New Website.................................................................................................................
Working with the University................................................................................................
Five-Year Coalition Plan......................................................................................................
Our Vision for The Dairy Barn............................................................................................
Management Strategy......................................................................................................................
Role of the Board of Trustees..............................................................................................
Employment.........................................................................................................................
Implementation................................................................................................................................
Competition Strategy...........................................................................................................
How Can Success Be Measured?.........................................................................................
End Notes.......................................................................................................................................
References......................................................................................................................................
Appendix A: Current Mission........................................................................................................
Appendix B: Nonprofits & its Board of Trustees..........................................................................
Appendix C: SWOT Analysis........................................................................................................
Appendix D: Illustration of Decline in Grant Money Awarded.....................................................
Appendix E: Problems & Assets of the Original Website.............................................................
Appendix F: Four Ps & Four Cs: The Dairy Barn.......................................................................
Appendix G: New Mission & Vision.............................................................................................
Appendix H: Part One: Porters Five Forces.................................................................................
Part Two: Product/Market Expansion Grid..............................................................
Appendix I: Market Research Survey............................................................................................
Appendix J: Results of the Survey.................................................................................................

Appendix K: The Marketing and Management Budget.................................................................


Appendix L: Advertisement Table Display Card...........................................................................
Appendix M: T-Shirt Design..........................................................................................................
Appendix N: Example Radio Advertisement for Quilt National 2005..........................................
Appendix O: WOUB Radio Advertisement Rate Sheet................................................................
Appendix P: Example Press Release & Media Alert.....................................................................
Appendix Q: The New Website Pages...........................................................................................
Appendix R: How We Improved the Website................................................................................
Appendix S: Five-Year Coalition Plan...........................................................................................
Appendix T: Revised Calendar of Events......................................................................................
Appendix U: Part One: Employment Agreement..........................................................................
Part Two: Description of Employment Contract Clauses........................................
Appendix V: Porters Generic Strategies.......................................................................................

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Executive Summary
The Dairy Barn promotes non-traditional artful forms of expression, centralizes and network
such artful expression, and builds global appreciation thereby benefiting the art and
surrounding community. We have collaborated and decided on a new strategy and several
improvements that will aid The Dairy Barn in achieving this revised mission.
The main improvements include:
An appealing and more functional website
Widespread diverse advertising to increase recognition
Hosting a variety of events throughout the year
Forming a coalition that links artists and venues throughout southeast Ohio
Increased involvement with Ohio University
Expanding the role of the Board of Trustees
All of these improvements can be accomplished without having to spend large amounts of
money. Although a webmaster would need to be hired to maintain the newly remodeled site,
they would come be part time and would not be paid an incredible amount.
Advertising is crucial to The Dairy Barn. Recognition by both our targeted market segments
will be increased though various ads such as table display cards, radio promotion, public
relations, and marketing through its members. All of the advertising can be had at minimal
cost to The Dairy Barn.
When the coalition comes together, combined events (such as an annual craft fair or show)
will be formed and held, increasing recognition throughout the state and increasing revenue
for all parties.
Increased involvement with Ohio University will increase awareness among the student
body, drawing more students to The Dairy Barns events.
Finally, the Board of Trustees will expand its role to help promote The Dairy Barn. They
need to put in extra time and effort to make The Dairy Barns vision a reality.
In the long run, we feel that The Dairy Barn can be very successful and create a globally
recognized cultural arts center.

iii

Dairy Barn Analysis

Introduction
Original and innovative artistic forms of expression have, over the past 25 years, gained
support and appreciation in the global community. New York City, Berlin, Paris, and London
have become centers for this art, but such innovation can also be found in one of the most
unassuming placesSoutheastern Ohio.
A large population of talented artists who produce high quality contemporary art are scattered
throughout the Appalachian region of Ohio. However, with the little resources this area has to
offer, much of this quality art is unrepresented and invisible to the art community at large.
Modest attempts have been made to build awareness of the art in this unique region, but only
limited success has resulted. One of the most successful of these attempts occurred late in
1970; the revitalization of a dairy barn in Athens, Ohio1.
Company Overview
The Dairy Barn, as it is now called, was founded by a group of artists and art lovers to
exhibit artistic talent that was unrepresented in the mainstream art community. This nonprofit
organization continues to offer exhibition art today; however, they have greatly broadened
their focus.
Situational Analysis
To fully understand how The Dairy Barn will increase its revenue and become a more
successful business, its current situation must be looked at in several different ways. These
include factors in its current mission and a situational analysis of its strengths, weaknesses,
opportunities, and threats.
Current Mission
The Dairy Barn has evolved into an exhibition showcase promoting the community and
artistic development of Southeastern Ohio. The vision of The Dairy Barn is to improve the
quality of life of the immediate and extended region by promoting this community
development (See Appendix A). In conjunction with their goals, The Dairy Barn has created
itself as a nonprofit organization, which comes with certain limitations (See Appendix B).
SWOT Analysis
As detailed in Appendix C, The Dairy Barns strengths include Quilt National, a variety of
offered classes, rental space, and the summer camp for kids. Weaknesses include its location
and community, poor advertisement, its landscaping, and its lack of a kitchen in the bottom
floor. Major opportunities that The Dairy Barn can explore include a regional coalition with
other area art organizations and working with Ohio University. In addition, there are several
threats to The Dairy Barn, including Ohio Universitys Kennedy Museum and the fact that
grants awarded have decreased over the past year for The Dairy Barn (See Appendix D).

Dairy Barn Analysis

The Current Website


Problems and Advantages. There are numerous problems with the current Dairy Barn
website. Our analysis will cover the home page only. There are problems with its colors
scheme, which, currently, is very bland. The fact that it employs neutral colors makes other
colors added clash oddly. If they chose a different scheme, they could add more colors, but
they would have to be in the same color family (warm or cool tones), instead of their
current red (warm), orange (warm), and purple (cool).
In addition, there is a picture of a DVD on the main page that they are selling that is so
blurry, it cant be read. They use more than two fonts on the page, creating inconsistency,
and the page itself is incredibly long. There are logos on the page, which appear to be links
at first glance (the OAC and support logos), but turn out not to bethis should be remedied.
However, there are a few assets of the original site. There is a mouse over technique used
on the buttons, and the page width is slim, so that the visitor doesnt have to maximize the
screen to see the entire content. There is also The Dairy Barns contact information along the
bottom of the site, so that the visitor could find contact information from any page, in case
the contact page didnt work on their server (See Appendix E).
Marketing Strategy
In order to increase The Dairy Barns revenue, we have created a marketing strategy focused
on increasing awareness and appreciation of The Dairy Barn. This new strategy involves an
updated and more concise mission statement, clarified objectives, an advertising and
promotional plan based on the results of a market survey, and a new website. In addition,
working with the University can also open The Dairy Barn up to previously unexplored
markets. Refer to Appendix F for our complete product and promotion analysis.
Mission
Our re-envisioning of The Dairy Barn is centralized around the core concepts it was founded
onto promote non-traditional artful forms of expression, to centralize and network such
artful expression, and to build global appreciation thereby benefiting the art and surrounding
community (See Appendix G). Our strategy to achieve such ends is highly focused, relying
on a strict marketing and management plan devoted to the core concepts previously stated.
Objectives
To implement the new Mission, three essential objectives must be realizedincreased
revenue generation to allow for more focused expenditures, enhanced awareness of The
Dairy Barn and its Mission, and expanded networking among the individual artistic entities
in Southeastern Ohio. Achieving these objectives involves constantly observing and
incorporating the mission into each one, so as to create a strict and focused strategy to
achieve such ends as described in the mission.

Dairy Barn Analysis

The Dairy Barn's Target Market Segments


We are targeting a general audience that consists of adults, college students, and the elderly
with an interest in the arts. We especially focus on the college students due to the large
concentration in the area. We are also targeting parents of children from the ages of 3 to 12
for year-round art classes and summer camps. In addition we are targeting adults 35-60, with
more means with which to act on their artistic interest. We have included an analysis of the
market in Appendix H.
Survey. According to our survey (See Appendix I), many people, mostly students, around
Athens have not heard of The Dairy Barn and many more have never visited it. Despite this,
many of those surveyed did express an interest in visiting The Dairy Barn as well as
becoming a member (See Appendix J).
Market Geographic. The Dairy Barn has the advantage of being in a region rich in cultural
arts and scenic tourism. This helps The Dairy Barn draw in visitors interested in art from
outside the region that would not have come. The number of different venues helps increase
the traffic throughout the county. Although there is steady business from local customers, we
hope to one day draw in more from outside the region.
Market Demographics. The people that come to The Dairy Barn are usually people who
greatly appreciate art, like local students and artists. These people are not really of any
specific gender or nationality. We aim to target students with excess income and
professionals 35-60 who have more time and money for philanthropy. The Dairy Barn has
low admission prices so a person of any economic status can enjoy their exhibits, but most
members tend to be of the middle to higher economic status since most art galleries have
higher admission prices.
Market Behaviors. Although The Dairy Barn can draw in people for their exhibits,
customers usually will only visit one time per exhibit. So the length between visits can be
quite lengthy.
Marketing Communication
We have developed a four-point promotional mix for The Dairy Barn for the purpose of
increasing public awareness and appreciation. Advertising, promotional applications, public
relations, and direct marketing are the four areas of focus that will best advance the above
stated purposes. Refer to Appendix K for the budget of the promotional mix.
Advertising. This non-personal form of presentation targets broad market segments. Our
advertisement plan is focused on increasing the general awareness of The Dairy Barn. To
achieve this goal, we use a mix of low cost advertisement cards and T-shirts strategically
located to achieve full benefit.
The table display cards offer an elegant, low cost advertisement solution (See Appendix L).
With a gloss finish, contemporary design, and informative dialogue, combined with the

Dairy Barn Analysis

strategic placement of such cards, The Dairy Barn will achieve not only awareness, but an
image concurrent with their mission. Strategic locations include, but are not limited to: The
Athens County Convention and Visitors Bureau, Casa Nueva, The Donkey Cafe, The Import
House, Brenens, Perks, The Oasis, and the Starbucks in Kroger.
The cost of such advertisement is between $120.00 and $150.00 for 1,000 glossy prints of
custom work front and back2. The probability that the selected venues will support The Dairy
Barn by offering free placement of the cards is high due to the amount of advertising flyers
already displayed in each.
In addition to the place cards, T-shirts will provide indirect advertising. They innately possess
a higher risk associated with them, as they are only effective when the person who owns the
shirt wears it. Polo and long sleeved shirts also have potential, but require higher overhead
cost. Polo shirts should be considered for future expansion of advertisement.
The T-shirt should have appeal to a younger audience to target the larger market of young
adults (See Appendix M). The cost of T-shirt printing is substantially higher than the cards.
The more T-shirts ordered, the cheaper the per shirt cost. Ordering 500 T-shirts (Small
through Extra-Large) runs about $2,000.00 to $3,000.00, which includes custom art, text, and
multiple colors (price dependent on number of colors)3.
Promotional Application. Short-term incentives and publicity of special events will bring
higher volumes of people to The Dairy Barn. Such promotions not only assist in building
awareness, but also develop appreciation. Radio advertisement and prize-based events will
provide for a stable foundation in this aspect of the promotional mix.
WOUB Radio (NPR) provides for the best targeting of the markets most associated with The
Dairy Barn. It is a wide-ranged radio station that reachs Athens, Cambridge, Ironton,
Chillicothe, Zanesville, and a small radius of communities in these vicinities. The 15-second
promotion is based off of a weekly price, and would be most effective one week before a
small event, and two before major events. The promotion would be very direct and always
include a standard saying or slogan to build customer recognition (See Appendix N). The cost
associated with running the ad 15 times Prime Time Only is a the weekly rate of $150.004
(See Appendix O).
Public Relations. Favorable publicity is essentially free advertisement. However, even more
than advertisement is the positive connotation associated with such favorable publicity. In
many industries, like the restaurant industry, publicity is the prime source of advertisement.
We see The Dairy Barn benefiting in the way of awareness through public relations, but more
importantly, we see The Dairy Barn building a strong public appreciation due to high public
relations involvement.
Reaching the people through news rather than ads brings a new incentive to the people
one without sales-directed communication. In a sense, this form of advertisement is more
believable. The steps to good public relations involve public service announcements, press
releases to all forms of media, and a follow up media alert (See Appendix P).

Dairy Barn Analysis

Direct Marketing. Direct marketing targets carefully selected segments to obtain both an
immediate response and cultivate lasting customer relationships. Postal mail, e-mail, and
telephone are the main mediums through which such marketing is generally accomplished.
The Dairy Barn can rely on its membership database to perform such target marketing. We
suggest, unless this development is already in place, that The Dairy Barn database include
such fields as income, interests, location, and major events attended. With this system
implemented, specific segments could be targeted for specific events.
The New Website
How We Improved the Site. As detailed in Appendix Q, we improved the website in
numerous ways. The Dairy Barn logo is now larger, and docked in the left-hand corner,
which makes it the first thing the eye sees upon opening the page in the browser. We
changed the color scheme to allow for more variety of color; colors are in the same color
family also. Weve added a large colored text box displaying the gallery hours prominently,
making it easier to find. We made all The Dairy Barn site buttons the same color, and
differentiated the Quilt National and Bead International buttons, and made all of the logos on
the page links. In addition, there is now a link for classes that The Dairy Barn offers, so that
there is a link to an actual revenue-making source for the organization (apart from the exhibit
and support, which are slightly more minimal). Above all, we fit all the content and more
into less than half of the space of the original site (See Appendix R).
We would also like to see some changes in The Dairy Barns online gallery store. We feel
they should photograph and display all the art they are selling, especially the one-of-a-kind
art, on their website. After the exhibition is over, unsold art would be placed on the website,
allowing for those outside the region, or those who could not attend the exhibit could buy
them.
The Dairy Barn should also attempt to link itself to other art websites within the region and
state, including the Vern Riffe Center for the Arts and Kennedy Museum (Southeast); the
Dayton Art Institute and the Cincinnati Art Museum (Southwest); Hello From the Cultural
Arts Center, the Ohio Craft Museum, and the Wexner Center for the Arts (Central); the
Museum of Ceramics and the Beck Center for the Arts (Northeast); and the Milan Historical
Museum (Northwest).
Working with Ohio University
Fraternities/Sororities and Community Service. Nearly all fraternities and sororities are
required to have a specific amounts of service hours per quarter. The organizations usually
dedicate a few days to go out, as a group, and service an organization of some sort. This
would be a great opportunity for The Dairy Barn to take advantage of. This is a way to get
landscaping services or a variety of other things done with no labor costs. The Dairy Barn
could simply inform the fraternities and sororities that some services are needed and set a
date and time. Also, there are 33 combined fraternities and sororities at Ohio University and

Dairy Barn Analysis

they make up 13 percent of the student population. (cite) Getting at least one group to take on
some work for The Dairy Barn would create a large workforce and many projects could be
accomplished.
Residence Life. Residence Life is a great outlet to introduce students to The Dairy Barn, and
help them get involved. Every quarter, Resident Assistants are required to host programs,
where students do various activities together, some of which are educational. The Dairy Barn
could give special discounts to groups that RAs bring to The Dairy Barn to participate in
classes offered. This would bring a somewhat steady amount of income to The Dairy Barn,
especially if a few RAs every quarter were hosting events there. In addition, Residence Life
requires its entire staff to work in some form of community serviceThe Dairy Barn could
employ a few RAs (usually these groups are all the staff in one building, about seven or eight
people) for a day, or work with them for a whole school year as volunteers. This would help
cut costs for The Dairy Barn in the form of payroll.
OU Tuition. We explored the idea of working with Ohio University and its admissions
department by adding an optional provision on the quarterly bill (similar to the Student
Advocacy Fee) for The Dairy Barn. This quarterly donation could be waived, but this idea
was not feasible. After speaking with the Dean of Students, Terry Hogan, he informed us that
it is against University Policy to favor one organization over another in this fashion5.
Five-year Coalition Plan
The marketing capability of The Dairy Barn has limited potential in its current state.
Individual growth and creative potential create limits to the boundaries of these marketing
capabilities. To increase both of these factors, we propose a five-year coalition plan to
develop a cooperation and organization of the surrounding artistic entities which coincide
with the mission of The Dairy Barn (See Appendix S).
The Dairy Barn should view itself as the epicenter in southeastern Ohio, and eventually a
larger geographic region, for the development, discovery, and promotion of contemporary
and innovative forms of artful expression. Therefore, The Dairy Barn should be the proactive
leader in the creation of a coalition to better achieve its goals. The first step in such a plan is
believing strongly that The Dairy Barn is the anchor and center for the arts in the surrounding
area.
Year One Coalition Plan. In the first year development, The Dairy Barn should discover
which target entities to include in the inauguration of the coalition. We suggest the following:
the Athens Area Municipal Arts Council, the Kennedy Art Museum, the Hocking Hills
Marketing Arts Consortium, the Nelsonville Historic Public Square, and Passion Works
Studio.
The inauguration of the coalition should be the creation of an event, hosted by The Dairy
Barn, involving all members of the coalition, proportionally, to advertise and promote the
event. The main function of the event should be to advertise the contemporary and innovative
arts, the coalition, and the individual members of the coalition. We have examined The Dairy

Dairy Barn Analysis

Barns events schedule, and deemed May as the appropriate time for the annual event (See
Appendix T).
The final stage of year one is a control phase. A feedback meeting should be hosted by The
Dairy Barn to evaluate the event, provide encouragement for future events, and plan a
meeting before the event to be hosted in the following year. The key to the success of this
meeting is the ability of The Dairy Barn to take on a leadership role.
Year Two Coalition Plan. The second year of the coalition plan begins with a planning
meeting for the years event. Unlike the first event, The Dairy Barn will take a leadership
role but will use participative planning. Again, after the event a control will occur where
feedback is generated. This year will also employ monthly meetings to discuss continual
marketing efforts for the coalition.
Year Three Coalition Plan. Year three follows the same guidelines as year two. However,
there should be an effort to host an additional event. With the increased awareness of The
Dairy Barn, the coalition, and the members of the coalition, the third year is an opportune
time to introduce a second event, perhaps in the fall.
Year Four Coalition Plan. By the fourth year, the goal is to have high awareness and
appreciation of all entities involved in the coalition, and the coalition itself. After three years
of events and two years of substantial marketing, the fourth year should attempt to introduce
seasonal events, along with bi-monthly meetings to bring more integration between the
members of the coalition. Such benefits as database merging, inter-member advertisement,
and sales support by The Dairy Barns gift shop and e-commerce for the members, should be
substantial.
Year Five Coalition Plan. In the fifth year, the coalition should be well grounded and
expansion should be the top priority. This expansion should be a collaborative effort.
Appointing a supervisor position supported by the members of the coalition, should also be
present.
Our Vision for The Dairy Barn
Great things are expected for The Dairy Barn, but much work and time is needed to
accomplish these goals. We would like to see The Dairy Barn increase its stability
financially, secure its place as an internationally recognized organization, and have a 100
percent increase in membership. We would also like to see an increase in the number of
events that The Dairy Barn holds, so that its entire calendar is full.
Furthermore, we believe The Dairy Barn should develop five and ten year plans for itself, to
keep its goals in mind and on track. These plans would include things such as development
and housing; for example, an artists temporary residence or a caf on the property. The
residence would run concurrently with the programming of The Dairy Barn.

Dairy Barn Analysis

Management Strategy
In order to implement our plan, we believe that The Dairy Barns Board of Trustees will need
a slightly revised vision, and that The Dairy Barn will need to employ a webmaster to
oversee its website. We believe that there is no reason to change the basic infrastructure that
The Dairy Barn already employs in its managerial organization.
Role of Dairy Barns Board of Trustees
As detailed in Appendix B, The Dairy Barns Board is supposed to create policies and
procedures. After they are created, then the board must enforce them. They are also
supposed to drive their vision and their goals. This is more of the technical aspect of the
board. However, in reality, the board handles the financial aspect, engagement in the
community, and offers leadership for the corporation6. Examples of these would include
structuring events and using The Dairy Barns resources, maybe to maintain the parking lot
or other repairs that are needed.
Throughout a year, The Dairy Barn Board will meet once a month. Approximately 60 hours
a year per board member are dedicated to improving The Dairy Barn.
Employment
Webmaster Position. The Dairy Barn will need to employ (See Appendix U) a webmaster to
maintain its website. We recommend a part-time position, updating the website as needed,
one day about every one or two weeks. The webmaster would be responsible for maintaining
all content within the site. They would correct any errors in the script, and provide user
support, such as a Frequently Asked Questions page or Search feature within the site. They
would maintain any site maps and validate that the links are active and go where they claim.
The webmaster would also be responsible for maintaining any mirror sites of The Dairy Barn
(i.e. Quilt National). Above all, the website should be able to be accessed from various
servers and browsers.
The average salary for a webmaster in Chillicothe is around $65,291 annually7. Broken
down daily, this allots about $179/day. If the master worked two days a month, or once every
two weeks, for 12 months, they would need to be paid a salary of about $4,296 for the year.
This would be affordable for The Dairy Barn as weve laid out in our budget (See Appendix
K).
The Dairy Barn could consider employing a student from the College of Business in the field
of Management Information Systems or an Engineering student specializing in Computer
Science (if they have experience with web development). This student would have registered
for MIS 497 (or some similar class), which is an independent study class, where the student
would get class credit for work done, instead of being paid. However, there are several
reasons why we advise against this. One, the student would only be able to be around for one
quarter at a time, and some of them would be more or less experienced than others.

Dairy Barn Analysis

Secondly, there would (most likely) be no students available during winter intercession and
summer break, unless they were a paid intern.
Implementation
In order for the marketing and management strategies weve created to be deemed a success,
there must be an obvious strategy to deal with competition, and a way to measure success.
Competition Strategy
Porters Generic Strategies (See Appendix V) answers the question, How can we best
compete for customers in this industry? Business-level strategic decisions are driven by the
market scope (broad or narrow market) and source of competitive advantage (price or
uniqueness). The model then describes the different competitive decisions a company can
make: differentiation, cost leadership, focused differentiation, or focused cost leadership8.
We feel that The Dairy Barn uses a focused differentiation strategy. This strategy means that
the organizations resources and attention are directed toward minimizing costs to operate
more efficiently than the competition9. The Dairy Barn is quite unique as it offers different
kinds of art, such as quilts, beads, and other local pieces. It has a unique settingthe hills of
Appalachia. Its market, Southeast Ohio, is a narrow market for a company to focus on.
How Can Success be Measured?
Success can only be measured by how effective The Dairy Barns new marketing plan and
other strategies are. Much depends on advertising; The Dairy Barn must get their name out
and establish themselves as a cultural arts leader in southeast Ohio, the nation, and eventually
the world. It all starts locally. The Dairy Barn needs to expand their calendar and host more
events throughout the year.
In addition, The Dairy Barn needs to establish connections in the local community. Working
with Ohio University and establishing a coalition with other local arts venues is a great place
to start. Their website needs to be improved, as this is a link between them and people who
have a passion for the arts. Their online store also needs to be improved in order to increase
revenue and have their reputation grow as a seller of fine and rare art.
If all of these are accomplished, we feel that The Dairy Barn will be very successful and
grow into a global arts leader. Down the road, we also feel that if they expand by adding an
artists residence or a caf, all the pieces will fall into place. The Dairy Barn has the potential
to be a regional, national, and global arts leader. The Dairy Barn needs to start harnessing
that potential and use it to its advantage.

Dairy Barn Analysis

10

End Notes
1. Hilary Fletcher. Quilt National. n.d. http://quiltnational.com (accessed Sept. 25,
2005).
2. Overnight Prints. n.d. http://www.overnightprints.com (accessed Oct. 15, 2005).
3. Custom Ink n.d. http://www.customink.com (accessed Oct. 17, 2005).
4. Loring Lovett. WOUB Rates. 10 Nov. 2005. Personal e-mail (n.d.).
5. Terry Hogan, RE: New Student Registration Donation. Email from author, 16
October, 2005.
6. Jeff Chaddock. Interview by Ryan Wynn. Board of Trustees. 13 Oct. 2005.
7. Salary.Com Salary Wizard. Oct. 2005.
http://swz.salary.com/salarywizard/layoutscripts/swzl_compresult.asp?
narrowcode=IT02&jobcode=IT10000153&metrocode=35&metro=Chillicothe&state
=Ohio&geo=Chillicothe,%20Ohio&jobtitle=Webmaster&narrowdesc=Internet
%20and%20New%20Media (accessed Oct. 15, 2005).
8. John R. Schermerhorn. Core Concepts of Management. Hoboken, NJ: John Wiley and
Sons, Inc., 2004.
9. Ibid.

Dairy Barn Analysis

11

References
Armstrong, Gary and Philip Kotler Marketing: An Introduction. 7th ed. Edited by Katie
Stevens Upper Saddle River, NJ: Pearson Education LTD., 2005.
Athens County Calendar of Events. Athens County: Official Visitors Guide, 2005, 43-49.
Baldwins Ohio Revised Code - Chapter 1702, Nonprofit Corporation Law. 2005.
Boeing Company, The. 2005. Employee Agreement [online]. Onecle.com. [cited 18 October
2005]. Available from the World Wide Web:
(http://contracts.onecle.com/boeing/mcnerney.emp. 2005.06.29.shtml).
Calendar of Events. Art of the Hocking Hills, 2005, 3-4.
Chaddock, Jeff. Interview by Ryan Wynn. Board of Trustees. 13 Oct. 2005.
Custom Ink n.d. http://www.customink.com (accessed Oct. 17, 2005).
Fletcher, Hilary. Quilt National. n.d. http://quiltnational.com (accessed Sept. 25, 2005).
Hogan, Terry, RE: New Student Registration Donation. Email from author, 16 October,
2005.
Kmart Management Corporation. 2004. Employee Agreement [online]. Onecle.com. [cited 18
October 2005]. Available from the World Wide Web:
(http://contracts.onecle.com/kmart/whipple.emp. 2004.06 .01.shtml).
Krispy Kreme Doughnuts, Inc. 2004. Employee Agreement [online]. Onecle.com. [cited 18
October 2005]. Available from the World Wide Web:
(http://contracts.onecle.com/krispy-kreme/phalen.emp.2004.01.06.shtml).
Lewis, Andrea. The Dairy Barn. 2004. http://www.dairybarn.org. (accessed September 26,
2005).
Lewis, Andrea, Re: Financial Information. Email from author, 28 September 2005.
Lovett, Loring. WOUB Rates. 10 Nov. 2005. Personal e-mail (n.d.).
Mancuso, Anthony. How to Form a Nonprofit Corporation. Edited by Lisa Guerin. Berkeley,
CA: Nolo, 2002.
Ohio University Tour Guide Manual 2005-2006. Athens, OH: Ohio University, 2005.
Overnight Prints. n.d. http://www.overnightprints.com (accessed Oct. 15, 2005).

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Salary.Com Salary Wizard. Oct. 2005.


http://swz.salary.com/salarywizard/layoutscripts/swzl_compresult.asp?
narrowcode=IT02&jobcode=IT10000153&metrocode=35&metro=Chillicothe&state
=Ohio&geo=Chillicothe,%20Ohio&jobtitle=Webmaster&narrowdesc=Internet
%20and%20New%20Media (accessed Oct. 15, 2005).
Schermerhorn, John R. Core Concepts of Management. Hoboken, NJ: John Wiley and Sons,
Inc., 2004.

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Appendix A
Current Mission
Mission
The Dairy Barn Arts Center offers exhibitions, events, and educational programs that nurture
and promote area artists and artisans, develop art appreciation among all ages, provide the
community access to fine arts and crafts from outside the region and draw attention and
visitors to Southeast Ohio.
Vision
With the vision of improving quality of life, and with quality as the benchmark, The Dairy
Barn brings the world of the arts to all of the differing audiences in the region by providing
programs that make the arts accessible and engaging to people of all ages and abilities.

Lewis, Andrea. The Dairy Barn. 2004. http://www.dairybarn.org. (accessed September 26,
2005).

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Appendix B
A Nonprofit Corporation and its Board of Trustees
What makes a nonprofit organization special?
When a company is listed as a nonprofit corporation, they receive special benefits that
regular profit corporation do not receive. For example, all nonprofit corporations are tax
exempt, meaning that they do not have to pay federal income taxes. (1702.80) A nonprofit
corporation usually has other organizations as members, and at least twenty of its members
are also tax exempt. (1702.80)
Furthermore, nonprofit corporations along with its members, either own, lease, occupy, or
use an area of land not less than three hundred acres. (1702.80)
Funding a Nonprofit Corporation
Most nonprofit corporations do not issue shares, nor do they provide investment incentives
such as return on capital through the payment of dividends to investors, benefactors, or
participants in the corporation.
However, nonprofits have their own means of obtaining funds. The most common method is
to obtain revenue in the form of contributions, grants, and dues from the people,
organizations, and governmental agencies that support the corporations purpose and goals.
(2) Nonprofits will also receive initial and ongoing revenues from services or activities
provided in the pursuit of their exempt purposes. These can include payments for art lessons
or dance courses, school tuition, clinic charges, etc.
Workers Compensation
Workers compensation insurance coverage compensates workers for losses caused by work
related injuries and protects the corporation from lawsuits brought to recover these amounts.
This coverage is mandatory in some states, but optional in others. Nonprofits should always
have this coverage to save them from those expenses that would result in a work-related
injury.
What is a Director?
Corporate directors, who meet collectively as the board of trustees in a nonprofit
organization, are responsible legally, financially, and morally for the management and
operation of the nonprofit corporation.
Baldwins Ohio Revised Code - Chapter 1702, Nonprofit Corporation Law. 2005.
Mancuso, Anthony. How to Form a Nonprofit Corporation. Edited by Lisa Guerin. Berkeley,
CA: Nolo, 2002.

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Number of Directors
The number of directors on the board should never be less than three, or if the company is
really small, the number of directors should never outnumber the members of the company.
If a company wants to increase the size of its board, the board members who have the power
to vote for new members must meet and vote on it. In this case, a simple majority is needed.
(1702.27)
Qualifications of Directors
Qualifications may vary with what type of business the organization is involved in, but most
of the same skills are needed. For example, a director must possess three main skills:
practical qualifications, community relations, and ability to qualify for tax exempt status.
Practical qualifications include strong managerial, technical, and financial skills. As for
community relations, a director must be able to strengthen the companys link with
supporters and benefactors and have connections with the more prominent people in the
community. All of these help to raise money, increase recognition, and gain new clients.
Lastly, the IRS likes to see members disinterested in money and who have an interest in the
community. Public officials are crucial here, the IRS asks for them specifically on their tax
form (IRS Form 1023).
There are other key qualifications to consider as well. Board members should be willing to
serve the company and have a proven commitment to the goals of the organization. Enough
board members must be chosen to ensure a wide basis of support, especially in regards to
fundraising. But, the board must not be too large where it becomes too difficult to manage
and get work done. Broad practical skills and real world savvy are a must.
Furthermore, some board members should have fundraising experience. Some nonprofits
will even keep a fundraising expert on staff. Lastly, at least one board member needs to have
experience managing money, such as a professional accountant or someone with expertise in
recordkeeping and budgeting. Managing money is crucial because this is where most
nonprofits will fall into legal trouble and be liable if the records are not kept correctly.
The Term of a Director
The term of office for directors is commonly set in the corporations Bylaws, but it is usually
one year. Other ways to terminate a term and elect a new director include resignation,
voluntary removal from office, or death. (1702.28)
Director Compensation
Nonprofit directors usually serve without compensation. However, the company will pay for
any expenses, such as travel or supplies. Not paying nonprofit directors reinforces one of the
important legal and ethical distinctions of the nonprofit corporation: its assets should be used

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to promote its goals; not for the private enrichment of its incorporators, directors, agents,
members, or employees.
Election of New Directors
At a meeting in which directors are to be elected, only nominated candidates are eligible for
election. (1702.26) To be elected, one must simply receive the highest number of votes.
To fill a vacancy caused by resignation or death, the board members must come together and
vote on a new director. This number must be a majority of the current numbers of board
members. (1702.29)
Authority of Directors
Essentially, the director is to act in the best interest for the company. A director is required to
handle their duties and tasks in a timely manner. It is possible that a director might be on a
committee, so it must handle its responsibilities of that committee. Also, a director is entitled
to rely on information, opinions, reports, or statements, including financial statements and
other financial data. (1702.30) These are prepared by other directors, officers, or employees
of the company, public accountants or other experts, and other committees within the board.
To determine if the director was acting the best interest for the company, one must consider
several factors. First, a director must consider the interests of the employees, suppliers,
creditors, and customers of the corporation. Second, it needs to consider the economy of the
state and of the nation. Third, community and societal considerations must be weighed
carefully. Last, the long-term and short-term best interests of the corporation, including, but
not limited to, the possibility that those interests may be best served by the continued
independence of the corporation. (1702.30)
If a director fails to perform any of the preceding, a termination, potential termination, or
termination of a specific relationship with the company can and will be exercised. (1702.30)
Meetings of Directors
Meetings of the directors may be called by the chairperson of the board, the president, any
vice president, or any two directors. (1702.31) Meetings can be held at any place within or
without the state, or through appropriate telecommunications. All members of the board
must be notified at least two days in advance of the meeting and this can be through the mail
or through appropriate telecommunications. At the meeting, an announcement is made at the
beginning to when the meeting will be will adjourned. (1702.31)

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Quorum for Directors Meeting


In order to hold a directors meeting, a majority of the authorized number of directors is
necessary to constitute a quorum. (1702.32) Having a majority at which a quorum is present
is the act of the board, and may also be laid out in the companys bylaws and regulations.
Committees Established by the Board
Executive Committee
The full board of trustees usually delegates a part or a significant amount of the boards
duties to an executive committee of two or more directors. This arrangement works really
well when some board members are extremely committed to working long hours for the wellbeing of the nonprofit corporation.
More passive members are always kept abreast of what the executive committee is doing.
The full board should receive timely reports of executive committee meetings and have the
chance to consider any decision that the executive committee has made. The full board has
the power to overturn any decision if they disagree with it.
Other Committees
The board typically appoints several specialized committees to keep track of and report on
corporate operations and programs. These may include finance, personnel, buildings and
grounds, new projects, fundraising, or other committees. These committees, often consisting
of a mix of directors, officers, and paid staff, do not normally have the power to take legal
action on behalf of the corporation; their purpose is to report and make recommendations to
the full board or the executive committee.
Furthermore, all of these other committees are subordinate to the executive committee. All
of the subordinate committees decisions are subject to approval by the executive committee.
These sub-committees are useful as they utilize specific talents of board members.
Director Self-Dealing
Directors must guard against self-dealing, that is, involving the corporation in any transaction
in which the director has a material financial interest. Examples of this include the purchase
and sale of property, investment of funds, or payment of fees/compensation. The nonprofit
corporation laws of most states include special rules for validating self-interested director
decisions of this sort. In most cases, the interest of the director must be disclosed prior to
voting and only disinterested members of that board may vote on the proposal.
Director Indemnification and Insurance
Law requires a corporation to reimburse a director for legal expenses incurred as a result of
acts done on behalf of the corporation, if the director is successful in the legal proceeding.

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Directors liability coverage is a way to insulate directors from possible personal liability for
the actions on behalf of the corporation. But, for smaller companies, this may be quite
unrealistic. For smaller nonprofit organizations, the best plan of action is to minimize
potential risks that might arise in the pursuit of the company.
Limitation of Actions
No members of a corporation, especially the board of trustees, may make, issue, deliver,
transmit by mail, or publish any prospectus, report, circular, certificate, statement, balance
sheet, exhibit, or document, respecting membership rights in, or the activities, assets,
liabilities, earnings, or accounts of, a corporation that is false or misrepresentative of the
facts. (1702.54)
In addition, anyone having charge of any books, minutes, records, or accounts of a
corporation, make therein any entry that is false in any material respect, knowing such entry
to be false, or remove, erase, alter, or cancel any entry therein, knowing that the entries
resulting from those actions will be false will also receive punishment (1702.54)
If one commits any of these actions, he/she shall be personally liable, jointly and severally,
with all other persons participating with the person in any such act. (1702.54)
Liability of Directors
The directors of a corporation should not be personally liable for any obligation of the
corporation. But if there are liability problems, they usually come in the form in distributing
assets to members contrary to law or the articles and in making and granting loans to an
officer, director, or member of a corporation. (1702.55) If any of these actions occur, the
person shall be jointly and severally liable to the corporation.
If the director is held accountable for either action, he is liable to pay back the money that
was loaned. (1702.55) He can not pay less back, nor can be pay more back; it has to be the
exact amount that was loaned. However, there is a gray area with this. If it is found that the
director was acting in good faith or relying on documents that were provided by the person
who was handling the finances or a certified public accountant, he shall not be liable as long
as the previous can be proven as true. (1702.55)
If it can be proven that the director was acting alone, no action shall be brought by or on
behalf of a corporation. (1702.55)
How to Avoid Liability Problems
As previously states, directors are usually not held liable for corporate acts, but they can be in
extreme cases of mismanagement. To avoid being liable for any action, all board members,
whether active or passive, should attend board meetings and stay informed of, and participate
in, all major board decisions. This way if the board makes a wrong decision, an individual
board member would not be liable if he/she voted no on the decision.

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Most of the time, things that put board members at risk of personal liability include bas
financial management, such as failing to pay taxes, or not keeping proper financial records
that show how much money is being collected and disbursed. It makes sense to always have
an experienced financial manager on the board to avoid these previously stated problems.
Continued Existence
Every nonprofit corporation needs to file with the states Secretary of State a verified
statement of continued existence. This document is signed by a director, officer, or three
members in good standing. It includes setting forth the corporate name, the place where
principal office of the corporation is located, the date of incorporation, that fact that the
corporation is still actively engaged in exercising its corporate privileges, and the name and
address of its appropriate agent. (1702.59)
The nonprofit corporation needs to do this every five years after the initial continued
existence document is received. If the company fails to do this, the states Secretary of State
will cancel the articles of the corporation, or basically suspend them from being an official
licensed nonprofit organization. If this occurs, the corporation has a year to fill out the
paperwork to get reinstated. (1702.59)