RAN, an environmental NGO focused on rainforest protection campaigns, needs to adapt its strategy due to a changing environment. It is recommended that RAN launch a "Rainforest-Friendly" product labeling and ranking system to transform its business model from a conventional campaign approach to a more collaborative and knowledge-based operation. A multi-year plan is outlined to develop and promote the system within various industries to generate new funding sources and strengthen RAN's influence over time.

1. Save Forest Smart 4H Consulting Cathy Huang Cynthia Zhang Gloria Luo Le Guan March 26 th , 2006 Consulting Group Consulting Group

2. Executive Summary Business Summary Challenge Identification Options Recommended Strategy Action Plan Implementation Timeline Financial Projection 4H Consulting March, 2006 1 Consulting Group

3. Approach 2 RAN’s business model: Campaigns to pressure leading players and then to the industry Mission : To protect the Earth`s rainforests and support the rights of their inhabitants Campaigns : Old Growth Campaign, Global Finance Campaign, Jumpstart Ford Campaign Force company to file agreement Leverage to whole industry Consulting Group Monitoring and enforcing Launch campaign

4. 3 Consulting Group Changing environment presses RAN to review its practices and search for new opportunities Large NGOs squeezing out smaller ones Practice Area’s Changing Environment RAN Growing concern on security and pressure on radical practices New campaign targets harder to find and achieve Broaden trend from environmental movement to sustainability

5. RAN 4 Consulting Group RAN has to adapt itself by changing its strategy, business model, organization structure, and improving funding Lacking enough funding to support Loose management and high turnover Focus on campaigning: a penetrated and conventional practice area A closer problem detect: RAN’s perspective Radical practice: potential damage to its image Maintain RAN’s influence and strengthen support from related industry

9. Launching Rainforest-Friendly label and ranking system within timber product leading distributors Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 Through supply chain, promote Rainforest-Friendly label and ranking system to upstream suppliers Promote the system to the whole timber industry and thus build strong recognition Expand the system to other rainforest-related industries: automobile engine, etc. Complete an integrated rainforest-friendly label and ranking system across several industries RAN’s expertise and authority in rainforest protection System adopter and support base By transforming itself to promote rainforest protection label and ranking system, RAN will become the leading institute for creating and governing the standards 8 Consulting Group

11. 10 Consulting Group Ranking system based on the firm’s commitment to forest-friendly activities.Different green colors represent different levels Light green: Enterprises and companies that meet the minimum forest friendly requirements Medium green : Enterprises and companies that not only meet the forest friendly requirements but also involve in protecting the rights of the local inhabitants Dark green: Enterprises and companies that take the leading positions in implementing the standards, and as well help to promote the standards across industry

13. Consulting Group Organization restructuring to adapt to L&R system launching 1 2 4 3 Senior Management Level: more involvement, including BDs and Advisory Board Students pool: Maintain frequent interactions; increase training and fostering programs Establish Research Department: based on original voluntary scientists teams ( knowledge-based) Staff Incentive Stimulation: Enhance staff’s welfare from more comprehensive levels 12

15. RAN’s costly expense for training and holding radical acts can be utilized instead to launch the label and ranking program 14 Consulting Group 2,337,299 $ Total Support and Revenue 7,027 $ Interest Income 23,899 $ Other Income 113,469 $ Special Events 700 $ Gain from Asset Disposal 46% 1,083,254 $ Grants 47% 1,108,950 $ Public Support and Membership Percentage Support and Revenue RAN's 2002 Financial Statement 1,159,273 $ Net Assets at End of Year 1,048,009 $ Net Assets at Beginning of Year 111,264 $ Increase in Net Assets 2,226,035 $ Total Expenses 22% 486,726 $ Fundraising 14% 311,194 $ Management and General Supporting Services: 64% 1,428,115 $ Public Education and Membership Program Services: Expenses

17. = Label and Ranking System: Blue Ocean for RAN Consulting Group 16 Problem identification Strategy: Redirect RAN into a professional labeling and ranking NGO Feasibility Success factors : Corporate Participant Base Influence to mobilize public support Independence

18. Consulting Group Thank You 4H Consulting Group

19. Back-Up Information 4H Consulting Group Consulting Group

20. While FSC’s certificate scheme exists, RAN’s labeling and ranking compasses a wider range and leverages on retail customer’s recognition products i Consulting Group FSC’s certificate granting “ Rainforest-Friendly” Labeling and Ranking Logging industry only No explicitly label to evoke consumer support and recognition Focus on raw products that are not accessible to retail customers Related to ALL rainforest-related business Use standardized label and ranking to popularize and winning customer recognition on the retail side No such positioned label and ranking existed

21. Other Smaller NGOs Small Expertise Groups RAN Network Expertise A stronger allied NGO Large NGOs’ squeezing of resources provides smaller NGOs the incentive to ally more closely ii Consulting Group Large NGOs Large NGOs

22. Adapt to a more friendly and constructive approach Given the changing practice dynamics, radical acts have become potential threat to the group’s development and may weaken its support base iii Consulting Group Radical practices Less suitable targets Government and society’s security concern Harder to achieve goals and attract support Damage to the group’s image and support base; Tax-status attacked >> Funding crisis