CONFIDENTIAL

Environmental Scanning Research for Strategic Planning Discussions

For:

Conducted by:

BETHESDA, MARYLAND, USA

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 1 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

301.530.9066(p) 301.530.9076(f) [email protected] An Environmental Scan as Part of a Strategic Assessment for the Future of CAFG&S 2014

General Methodology

Below please find the environmental scan responses collected by internal and external scan area. These data represent the input from the leadership and other stakeholders of CAFG&S. The (XX) at the end of the data element indicates that the comment or one generally like it was repeated. All scan area comments are prioritized by the number of instances the comment was registered, which indicates how important the data are overall to collective respondents.

After a review of the in-depth interview and focus group report, the planning team will review and discuss these data, in small groups at the workshop, consolidating information, prioritizing key area issues and presenting their findings to the whole group for discernment and consensus.

Please review these data prior to the strategic planning meeting in June to prepare for strategic discussions. You might wish to rank order your own “priority issues” in each area to begin to see a clearer picture of the CAFG&S environment—look for overlapping issues as those usually represent problem areas and not symptoms.

This environmental scan was sent to 26+ selected CAFG&S leaders and stakeholders, to gather views about CAFG&S’s current and future environment. The environmental analysis assists in identifying changes that are occurring, will occur or need changing within the next year to several years, which could affect the nature, direction or viability of the CAFG&S, its programs or services.

The results of the scan, in addition to key issue identification, will be used to ensure most essential environmental data impacting on the association is captured for use by the Planning Committee in their deliberations. The interview and focus group report and quantitative member value needs assessment will verify or provide further guidance in key areas discussed below.

The return rate was 50%. Normal benchmark return rates on environmental scans falls between 25% and 35%, so CAFG&S was at the higher end of the return rates overall. Based on our work with other associations, with this return rate, we are certain that 85% of key issues evident with CAFG&S were surfaced for review. At the facilitation, the scan data will be added to by the participants during table work.

These subjective data are most useful in reviewing the “big picture” future of the organization in considering the vision, mission and values of the organization, and, as a gap analysis instrument to ensure all issues have been addressed in the final plan. Several key environmental areas were tested throughout the scan asking respondents to look at similar issues through the lens of different environments.

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 2 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

The scan tested the following environments and compared and will be integrated with data found in the materials, staff and volunteer in-depth interviews and the quantitative survey:

1. Internal Issues 2. External Issues 3. Demographic and Geographic Environments 4. Financial and Technological Environments 5. Regulatory, Advocacy and Partner Relationship Environments 6. Strengths of CAFG&S 7. Weaknesses of CAFG&S 8. Opportunities 9. Threats 10. Meetings and Education, Trade Show, Publications 11. Membership, Marketing, Communication, Branding and Transportation Issues 12. Governance and Management Issues

Key Issues

At the end of the scan, we have compiled a list of the key issues discussed in the scan. After you have reviewed the results, add any others to the list at the “other” indication and we can bring them up at the facilitation. Below find the scan data by key scan area.

Key Overall Priority Internal and External Issues the Association Faces in the Future

Identify any changes necessary to the future scope of the association and the most important issues that you feel the association faces in the next several years. Divide your issues by internal (issues they need to address internally) and external (issues which will impact them externally). Are we still relevant as an organization?

1. Key Internal Issues the association Faces in the Future (Issues internal to the association and its members)

1 Developing a strong leadership bench (board & committees) // Talent pipeline to keep new board members coming in to serve // Who will be the next leaders in CA floral industry and how to attract them? (3) 2 Why belong to the association beyond the FedEX rate? // Program viability. Meaning that the assn’s finances come basically from one non-dues revenue source, the “FedEx earned discount program.” If this were to stop for some reason, so would the association’s financial health, in large measure (2) 3 Identity. What is the primary goal of the trade assn? Meaning is it a buyers’ club where “members” join to get access to discounted FedEx program, or there a common good that the trade assn is trying to promote for the California floral industry? // Lack of identity

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 3 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

among members and industry (2) 4 Proper use of large cash reserves from FedEX contract // Best use of FedEx funds for the benefit of the membership? (2) 5 Develop staff and board members to create a top- notch association. Understanding governance and management. We have room to grow in this area. // Junior staff needs more training in their jobs / expand knowledge (2) 6 We need to get our name out there and be aggressive // Need more specific goals and strategy in marketing (2) 7 Choosing & articulating a compelling mission that relates to improving the appeal of flowers by the market instead of what we do as growers and shippers. 8 Related to #2 – accepting the view that we’re more than a tool to get products and services (especially transportation) at a discount and commit to being a force to influence choices and decisions outside of our membership – improve our business prospects. 9 How do we treat/view the associate members? 10 Will the association move beyond the California label? 11 Working with the CCFC to avoid conflicting and overlapping agendas. Find ways to work symbiotically. 12 Many old faces on the board time for new ideas 13 Not a large pool of volunteer board members that are qualified and dedicated 14 Norcal seems to need to grow in terms of staff. The Assoc is too large now for 3 staff members to address everything. Similar sized Associations have double the staff as CalFlowers 15 Successful transition to external association management 16 Competition from other countries 17 Labor shortage 18 Transportation Costs 19 We need better representation in the industry. 20 Cooperation between all members in regards to region locations 21 Future growth and what direction to grow Comment(s): Some of the internal issues include leadership development, training programs for staff and board members, and a lack of a value proposition beyond FedEx. Identity of the association and its growth beyond boarders in the future are also key issues.

2. Key External Issues the association Faces in the Future (Issues external to the association that will affect the association)

1 The market for flower consumption is dropping, according to a recent study by the Society of American Florists (Jan 2009). Getting flowers faster & fresher to the market means nothing if the consumer demand isn’t there to consume the product at retail outlets  // Per capita spending on flowers by the US consumer // How consumers purchase flowers // Consumer demographics and buying habits. Do the Gen-X’ers and Millennials have different buying habits w.r.t. flowers? If so, that could have a big industry impact. (4) 2 Cheaper flowers seem to be coming from other markets: South America and Mexico. What impact do those imports have on the CA floral industry? // We face import pressure. // ©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 4 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

Importing is a big issue. Less CA flowers being purchased // Members competing with South America Flowers & freight out of Miami (4) 3 FedEX program ending. // Transportation // Cost of freight to get flowers out of California (3) 4 Labor issues. Declining immigration. // Shortage of Labor (applies to all work forces) (2) 5 Drought conditions in California // Drought and overall water management in the State, as it impacts the cost of production. (2) 6 Future health of California Flower Growers/Shippers. 7 Infrastructure weakness in CA; transportation, plant material, expertise, etc to maintain a strong industry. 8 Resource issues. Land located in suitable climates. Flowers like to grow on oceanfront property. Water scarcity. 9 Supply chain changing and our mission statement is not 10 The Floral business is now truly international. CalFlowers needs to embrace the international segment of the business in terms of strategy and benefits offered. 11 CalFlowers could be more inclusive in terms of membership 12 Correct long-term positioning to best serve stakeholders and industry at large 13 Macroeconomic challenges faced by California agriculture 14 Managing AS2 membership growth fairly and effectively 15 Unstable US Dollar 16 Obama Care how it will affect the work force and overall care of all citizens 17 Getting smaller growers to join 18 Increasing regulations (incl. minimum wage) making CA a more difficult place to do business. 19 Cal Flowers action in regards to programs initiated by CCFC or other floral assoc. Comment(s): The major external issues facing California flowers are uncertain consumer habits, increased competition from imports, labor shortages, transportation costs, and drought conditions. 3. Demographic and Geographic Environment

How will changing demographics and geographics of the association members and potential members affect the association strategies, programs and activities going forward? Factors / Issues / Impact

1 I think this only matters if the leadership decides that the organization needs to shift its focus away from being “California-centric” to “US-centric”… // Programs and activities have mainly been CA-centric. A broader-base outside of CA may require non-CA meetings, and therefore increased costs. It is unclear, however, if those “non-core” members (or Associate Members) need to be served at the same level as CA members. // We can expand geographically to include all American Flower Growers. We need to recognize that American flower growers compete on a global scale and organize to be competitive. This will require forward thinking leadership. // I think we need to allow flower and Ag GROWERS outside of CA into CalFlowers. This will strengthen the Assoc and increase our reach and influence // Hopefully we will increase the number of Middle and Eastern US to

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 5 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

get a better customer base to unite against other countries Buy Local and Buy America need to pick up more steam // Expand Floral membership to neighboring states? (6) 2 Increase of floral imports to California (Mexico, Peru, Colombia, Ecuador, Holland, Thailand, others) – how do we maintain our “protection” of the CA industry of the % of imports to CA continues to grow? // Importing (2) 3 If #1 comes to pass, then we’d need to establish credibility as an organization that we can represent the broader issues and needs of growers and shippers from other states. 4 The number of growers is decreasing. 5 California is too large to consolidate flower shipments out of state, but too small to have several shipping hubs. 6 There is a huge generation gap between older producers and younger consumers both in mentality and technology. 7 Not sure how the CA-based demographics have been moving/changing, but seemingly the north is getting smaller compared to the south. But not sure if that impacts programs or services, per se. 8 There are more internet-based floral members as retailers, so that may have some sort of impact as a changing demographic. Not sure how. 9 We need to recruit and organize younger members to participate in the association so our legacy will continue. They need experience so when they assume leadership positions in the industry they can be successful. 10 We have ethnic and other diversity in our membership. We need to capitalize on this in order to reach an expanding marketplace. Marketing efforts should understand this and the potential of our diversity. 11 I feel we need to change but we are bound by our current mission 12 We are not in a growth mode due to old school views 13 This is an international industry and we should embrace that fact. 14 CalFlowers would be wise to revisit membership requirements every year or so to keep current with our changing industry. 15 Water supply in California could lead to significant attrition of grower members in upcoming years 16 AS2 creates huge challenges and opportunities to redefine membership scope ongoing 17 It should untie all of us to get a better transportation rate because of increased volume 18 Interacting with one another to solve other wholesale/grower issues and having a stronger voice with more members will increase our odds of moving into the future 19 Ca growers need to be protected from the importing 20 We will lose members if we do not do more for our members 21 May need to establish events outside the current area 22 It will impact how we design out programs to meet member needs 23 Remain focused on CA or move toward broader focus? 24 Cal Flowers activities need to focus on including and encouraging participation by Assoc, Floral Members?

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 6 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

Comment(s): The major demographic issues are whether CalFlowers should broaden its membership to include growers from other states and how to protect ourselves from imports. The need to bring along younger members and identify with younger consumers are also on the radar.

4. Financial and Technological Environment

Identify issues dealing with finance and technology affecting the association and its members, either now, or in the foreseeable future. Discuss any financial issues and also discuss both technologies the association should use for communicating with members and new social media/mobile techniques that might be appropriate. What is (will be) the impact of new media (social / digital) on our future? Discuss internal or external issues. Factors / Issues / Impact

1 Continued growth of social networks in order to promote CalFlowers to areas outside of California // Not having been here long, can’t tell if social media is impacting the farm level of floral production (i.e., the members). However, it could impact the messaging & communication aspects if the trade assn decides to branch out to impacting the public (non- members). // I am new so not familiar with all this / but I see us lack in social media // Blogs, Pinterest, ext… should all be explored; I think a U-Tube video describing the ORG is long overdue to target future members // Using technology to reach “external audiences” may have some real merit. For example, if CalFlowers decides that it wants to start to influence the Millennial generations and “rebrand flowers” to that generation as something “cool” (e.g., a “high-touch” balance to their “high-tech” lives). // We need to explore all areas of marketing. Getting our name out there in all (6) 2 How do we leverage our income to build our industry, what is the most effective use of our funds. // CalFlowers is in the best financial shape in its history. It would be wise to discuss how to best effectively use the financial resources. Putting the monies to work internally and externally vs. sitting on a large amount of cash. (2) 3 I think the membership will continue to lag in the adoption of social media because social media is not central to their own business needs as growers and wholesalers. I think it would be a mistake to “push” technology onto the members because “it’s popular” – it needs to be valued for its utility, not for its popularity. // The California flower industry does not use new technology for communication. It is an older population. The only reason many have developed new media channels is they “believe” they must have new media connections to connect to the younger buyers. However, they do not embrace the benefits for themselves and therefore the technology “need and benefits” is not understood. (2) 4 A full time social media staff member would be worth discussing. // Need for a dedicated social media staff member? (2) 5 The organization needs some serious “marketing talent” to develop strategies well ahead of deploying technologies… 6 Flower growers do not believe in more reinvestment in the industry. Unsubstantially, I believe flowers growers do not see flowers as a good investment. 7 Until it is well understood by the California industry where the cost savings, revenue generating, product or market creating benefit is for new technology, it will just be given lip service. ©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 7 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

8 Finance: addressed in Key Internal Issue: program viability. 9 Continued development of electronic manifesting bar coding, RFID etc. to move boxes quicker. 10 CCFC does 11 I see need for specific volunteers/members (non-board) to participate in more social media 12 California industry still way behind rest of world in standardization – packaging, tech, grading standards, etc. Need to catch up! 13 Huge majority of online floral sales (b2b) are Miami-origin – how do we change that? 14 Water costs to become a very serious issue in CA. 15 At the grower level we use all types of Social Media the most used is still email however Skype is starting to get more customers involved 16 Mechanizing parts of our labor force is a must the technology is still not there for a lot of the flowers that we harvest however bunching machines planting machines and shipping lines have increases our speed and efficiency over the last several years 17 The investment return on these machines should pay of within the first 2 years 18 Floral industry publications are key. This way people will buy more flowers. We need to share the story of our members so people feel more connected to the growers and were the product comes from. 19 Continued support of fed ex programs and income 20 Increase email communication from board 21 Staff needs more training in technology 22 Advertise updated website and encourage more member input. Comment(s): Utilizing Social Media would improve communication with membership, increase public outreach, and help members stay in tune with their customers. Since CalFlowers is lacking in this area and some members are slow to adopt, it is important to demonstrate the value of a social media strategy to membership. 5. Regulatory, Advocacy and Partner Relationship Environments

Are there regulatory, advocacy or “political” issues that the association needs to consider or take into account in the development of future strategies and positions with allieds? Even though the association does not lobby currently, what legislative issues might affect member companies in the future? Factors / Issues / Impact

1 I don’t know the “political” landscape, but at least one other organization in CA has shouldered that cause – the California Cut Flower Commission. CalFlowers is developing a closer relationship with CCFC and should always support a mutually beneficial initiative and just be silent when we’re not in alignment – the two organizations should never battle in private or public! // Probably need to take into account where CCFC (CA Cut Flower Commission) stands on various issues and see if partnering makes sense in certain activities or messaging. // Support the CCFC in this area // Important to maintain positive ties to CCFC, not overlap in such a way that wastes efforts, and work complementary to each other // I do think that we should ally ourselves better with CCFC as they are exploring different avenues with good results in the political atmosphere (5)

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 8 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

2 Farmers: Water, government regulation, pesticide/chemical, land use. // Water rights / conservancy // Agriculture/environmental regulation (3) 3 Labor // Minimum wage (2) 4 Shippers: Transportation, grades & standards, marketing. 5 Wholesaler/Retailer: changing retail landscape, big box challenge. 6 California State Floral Assn. is so small as to be irrelevant. There may be some collaborative opportunities, but they can barely scratch 2 quarters together and their board is very light-weight. 7 Partner with the Colombian flower growers is needed 8 Partner with Washington Oregon and all small US growers is needed 9 Leverage $’s from other org to gain a promotional order to work together to increase spending on flowers ALL FLOWERS in the US 10 As mentioned above, the issue of imports to California needs to be considered by the assn 11 Can we play a role in bringing competing transportation companies (trucking) to the same table? 12 Cal Flowers should be used as more of a transportation and flower promotion as soon as we start getting into the political arena there is no getting out of it 13 SAF would also be a good ally for even more in depth political issues such as immigration and ACA 14 FFA is being cut in all California schools so there will be no program to teach the future farmers about how to grow flowers, arrange flower, etc. 15 Coordinate all association activities to benefit the whole state not just north ,south, or central 16 We need to be involved in legislative activity 17 Industry standards 18 Immigration reform Comment(s): Some of the advocacy issues raised include environmental regulations, labor, imports, immigration, and promoting the industry. Forming partnerships with organizations like the CCFC is vital to any future advocacy initiatives. It is debatable as to whether the association should move into the legislative arena with CCFC already there. 6. Strengths of the Association

What are the strengths, as you see them, of the association as the association representing our industry going forward?

1 Financial: CalFlowers has a strong balance sheet and excellent forecasts for the future. // Resources, cash. // Favorable financial position // Very good financial well-being // Tremendous positive cash flow – unlike any other floral association // Financial // Income from existing fed ex program (7) 2 Strong and lucrative relationships with major transportation vendors (e.g., FedEx, OnTrac and airlines) // Excellent benefit package for members with Transportation being the signature benefit. // Transportation is and will always be its strongest asset by helping the industry find better more economical solutions to get CA flowers out // Strong FedEx program giving large member discounts and Cal Flowers funding. // fed ex program (5) ©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 9 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

3 Neutral to positive image // Positively viewed around the industry, with a great history and story to tell // Seems to be goodwill within the membership toward the assn. (a well-liked group) (3) 4 Most diverse membership of all orgs // Membership includes diverse companies / Access to different voices and points of view (2) 5 Excellent Convention and meetings keep members connected. // Fun and Sun is the best convention of industry have it every year instead of every 2 years (2) 6 It represents the complete value chain from growing to distribution up to, but not including the retail channel. 7 The existence of CCFC is a strength in so far as that organization can focus on “grower- centric issues”, allowing CalFlowers to “support them”, but focus on other complementary issues, like transportation and working with national floral organizations to increase market demand for floral products in general. 8 California flowers are starting to be “interesting” again. 9 Capitalization at the present time. 10 Freedom to move the industry forward. Not restricted as a state entity 11 Strong logistics ties can be leveraged to move the industry forward 12 Freight expert in our industry 13 CalFlowers has the advantage of a Dedicated Transportation Staff member. Members have a resource to “go to” in today’s complex shipping environment. All staff members friendly and helpful. 14 Via AS2 members, on level now with SAF in terms if industry “reach” 15 Cal flowers best represents our industry by getting customers and competitors alike open up better communications. 16 The staff is very knowledgeable and assist our members with all their needs. 17 Customer service is excellent as our members never have to be left not knowing the answers to their questions. 18 Strength is in numbers – more bargaining power 19 One central voice and location for information to be gathered and dispensed 20 Marketing Comment(s): CalFlowers strength lies in its stable financial position, well thought of staff, diverse membership, excellent transportation programs, and positive image within the industry.

7. Weaknesses of the Association

Are there areas where the association needs to improve or where we find ourselves vulnerable to internal or external forces?

1 Association members not understanding what CalFlowers does beside provide a good FEDEX rate. // Tied to the FedEx program. Diversifying income streams would seem to be prudent. // Extremely reliant on FedEx relationship – an end to that relationship may be an end to the association as we know it // Known mostly as transportation assoc. / How to broaden reach? (4)

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 10 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

2 Needs more visionary leadership (it’s got some or they wouldn’t have selected AMMR for assistance or L&M for management, but we need to grow this “body of thinking” // Leadership, no direction or follow through. (2) 3 Seemingly to not have a clear identity of a mission and goal, and how to get there. // Lack of identity and members not understanding what the association does for them (2) 4 Not understanding the current industry needs and direction. // Awareness of the broader industry as it affects members (2) 5 Staff competencies need to grow – this has begun, but every member of the staff going forward needs to be more knowledgeable, skilled and professional. 6 A more potent committee structure, which, of course, can feed the leadership funnel (#1 above). 7 Slow to move board mandates forward aggressively. Too much reliance on board to do staff or management functions. 8 Too much reliance on board meetings to accomplish business. 9 Marketing to the End consumer 10 Working with others organizations 11 Updating mission and adapting to changing market 12 Top-heavy structure, with too little turnover on board and lack of general participation by members outside the board 13 Trouble visualizing the future in a “big picture” way due to our history, political constraints, and perceived need to satisfy all stakeholders on all decisions 14 Convention is not held every year -- should be 15 Focus more on locally grown CA grown and USA Grown 16 We need more staff to help with the growing membership. Staff is not able to concentrate on their jobs and do them to the best of their ability while they are overloaded. 17 We also need to do more networking and marketing as an association. 18 Communication between members and management of the association 19 Programs – need to reevaluate current programs 20 Listening to members and implementing change based on member feedback 21 Does diversity of membership dilute focus of assoc? Comment(s): The major weaknesses are dependency for value on the FedEx program, leadership training and succession, and inadequate knowledge of current industry trends. The FedEx program is both a strength and a weakness and CalFlowers should look to finding more diverse sources of income going forward. 8. Opportunities for the association

Are there opportunity areas where the association needs to take advantage of our leverage or strengths?

1 Geographical expansion into a national organization – we can have hundreds more Association Floral members. Steve Dionne idea to align state associations and local associations to us by rebating dues for new associate floral members brought in by the state associations.// We need to boost our membership as the product we have is something any

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 11 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

grower, wholesale or retail florist can take advantage of. // Possible geographic expansion of membership // Able to expand membership via the FedEx program to build revenue. (4) 2 Increase visibility to public is needed // I think we should have a bigger presence on the national scene. Sponsor more events and attend more conventions / gatherings // Educating the masses on flowers in general but also where they come from and how difficult it is to grow them (2) 3 Possibly leveraging with other organizations, like CCFC // Continue building on cooperative relationship with CCFC (2) 4 The whole industry is weak at promoting flowers, so there is not a much better association to compete against. // Seeming no one else in this space, so could have a large impact on being a voice for CA-floral industry. (2) 5 Wine and Food, Wine and Food. That is all I hear about, flowers needs to be invited to the table, but we haven’t made that case. 6 Local, sustainable, and progressive, that is how many other California commodities sell themselves. 7 We can export flowers. Few California flower growers take advantage of exporting. 8 Significantly impact the cost of statewide consolidation of boxes before leaving Oxnard 9 South American Freight program we need to roll out right away 10 Help promote various holidays like women’s day that could directly benefits California growers, or CA GROWN logo support, OR SAF political action days. I think we are in a place that if our mission was updated we can accomplish various goals of the mission by simply aligning with other associations 11 Adopt the FedEx offer to supplement our existing import / export rates with an international shipping program. 12 We need to leverage the tremendous income we have from FedEX contract in a transformative way 13 Our industry reach should give us the ability to generate tremendous positive marketing within the industry for California 14 Expand board involvement through structured subcommittees, creating a pipeline for members to become more involved 15 Promoting flowers 16 Convention every year and reach out to Mass Market as well 17 Putting our ads in publications that the floral industry reads is key. 18 Enhanced programs & more industry education 19 Possibility of driving change in the industry – can we impact flower consumer? 20 Develop more symbiotic relationships with other floral assoc Comment(s): Geographic and transportation expansion, marketing flowers and public outreach, and partnership building are some of the opportunities that CalFlowers is well-placed to take advantage.

9. Threats to the Association

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 12 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

What threats are there to the association’s well being are there in the future? What competitors are out there, for which we need to track and develop strategies?

1 Losing the FedEX contract.// Little competition. Threat might be if FedEx decides to pull the plug. // Vulnerability to one main source of funding – FedEX // Loss of FedEX // FedEx discount discontinued, loss of funding // We can’t afford to lose the FedEx Earned Discount (6) 2 Apathy “who cares?” // Lack of promotion resulting in apathy of membership // [Apathy] of members – non renewal (3) 3 Continuing decline of California flower production. // Attrition in CA floral production (2) 4 Apart from general “mind-share” challenges, not sure of any… 5 Potential for CCFC to become adversarial. We need to continue to strengthen the relationship. 6 If we don’t embrace the world market we will not grow 7 If flower consumption does not increase in the US we will struggle due to world production increases (example the Dutch flower market is struggling due to not supporting the Kenya rose growers) 8 Keep a close eye on other similar sized national floral associations in terms of what they are doing and planning to do. 9 Political miss-steps unless we have the conviction to handle the criticism 10 Biggest outside threats are other countries and the amount of money they spend on promoting their countries flowers 11 Higher gas prices and energy charges 12 Importing is a big threat to our association and its members. 13 Shrinking grower shipper memberships 14 Develop programs / strategies to help all size members to stay profitable 15 If [we] grow too large will it dilute service to core California members? Comment(s): Loss of the shipping discount, member apathy, and decreasing flower production constitute the major threats to CalFlowers. The lack of financial diversity appears in multiple scan areas despite the CalFlowers’ strong financial standing. Imports are a big threat as well to some respondents. 10. Meetings / Education/ Trade Show/ Publications

Indicate any issues and challenges concerning our meetings and or Norcal News. Are there other opportunities in education such as webinars or real time broadcasting to other members that we need to consider for educational delivery? Factors / Issues / Impact

1 Fun&Sun feels like it has tremendous untapped potential – does it? // Need to draw more Assoc Floral Members to Fun ‘N Sun (2) 2 I am not sure about the future of Fun and Sun, but we need a National event in California.// “Fun n Sun” meeting currently held biannually. May have an opportunity for an annual meeting to have more presence in the industry (2) 3 Regional Fun N Sun events. Take the message out regionally. // Regional meetings with

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 13 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

associate members across the country (2) 4 Not aware of at this stage, but since CalFlowers does virtually no outreach beyond annual F2F meetings, there are many opportunities 5 Calflowers is better, but we don’t have a “face” like Kasey Conquist of CCFC. 6 I am a fan of local, casual events sponsored by CalFlowers; I think the local Happy Hours are effective and cost effective as a way to build the CalFlowers indent and brand. 7 I’m not sure the assn knows what the members need in term of member education. Don’t know if there has ever been a member needs survey conducted. (Appears many members join for the discount shipping program.) 8 Not sure if this market would support real-time webinars and education. (Again, no member needs survey.) Also, membership is diverse: growers, shippers/wholesalers, retailers. All have different needs: would need to segment the education. 9 Sponsor AIFD and PFCI and work with them to promote CA flowers. If we tie AIFD, PFCI and state and local associations to buy California and American we could unite the American floral industry. 10 Rotating the Convention and member meetings to a 2 year cycle seems to work well. 11 Membership Directory to move to a 1 year cycle makes more sense than 2 year cycle if staff can accommodate the work load. 12 Difficult to stay relevant in this age of mass information – how do we get eyes on our newsletter? 13 I think that if we had a monthly video blog for daily operations at growers wholesalers and retailers so that everyone can “see” the entire process would help educate people and also it might help them buy more flowers when they see the effort all the way up and down the line 14 Be more visible in publications throughout the industry 15 Get our CalFlowers logo into each of our member’s website with a link to our website. 16 Rethink tradeshow format and member engagement 17 We should consider all forms of education and evaluate best fit Comment(s): Sun & Fun is well received and may work every year given the right location, etc. If not other education on the off year would help build the value equation. Local get-togethers are also appreciated and thought should be given to a national event if the association goes in that direction. Going to an electronic membership directory that is constantly updated may save some dollars unless members are wedded to hard copy. Need to assess member needs in the education arena.

11. Membership, Marketing, Communication, P/R Branding and Transportation Issues we Face

What key issues are there surrounding growing our membership and involving more members in the associations activities? Do we want to grow as an association or keep our current size and geography? Your thoughts on what we need to do to recruit more members? Are our benefits and services perceived as worth the dues our members pay, or do we need to articulate the value of our programs and services better? What about our younger members and interested students? Identify internal or external marketing and branding issues the association has that need to be addressed in order to brand our profession to other engineering stakeholders and the public. Are our transportation programs in need of any tweaking or are there other services we need to consider? ©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 14 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

Factors / Issues / Impact

1 We have to keep building the membership. That has been the key to our recent success and we have the appeal to do so. // We need to continually grow, partly due to the need to satisfy FedEx’s hunger for growth // Assist in creating more demand for flowers in the US. To do this effectively we need to increase regionally and broaden the membership // We always should think about growing we have a very strong formula that works and it would be just another step to increase in size // Develop recruiting programs using FedEx funds // Growth will come from outside CA // Yes grow the association in the scope of cal flowers (7) 2 South American FedEx offer we should take it. // Include the FedEx program from South America. Excellent growth opportunity as well as increasing our influence and membership (2) 3 Transportation programs (not FedEx) need to do more than rates, programs must also engage other membership classes // More work needs to be done to sell the membership benefits (2) 4 We first need to conduct an independent assessment of membership benefits – nothing has been done in this regard in years, if ever. 5 We have no information/data on the state or condition of the “industry leadership pipeline.” For example, do the member companies know where the leadership is coming from in the next 10 years? It may not be an issue – it’s a question I’ve never heard anyone ask. It may need to be explicitly asked. 6 Develop a connection between California growers, shippers and associate flower buying members. 7 If we can make California “cool” we can possibly attract a younger audience, but I am not sure we can keep it up on our end. 8 I have addressed many of these in my responses above. 9 Grow this is a world industry / we can recruit much more if our mission was changed 10 CalFlowers has been growing and should be allowed to continue growing nationally including but not limited to more categories of members. 11 We can always use more benefits. You can never have too many. 12 Perhaps CalFlowers could sponsor a marketing/tech internship program? 13 I think that we need to focus more on our transportation awareness. I think that it is done well but we need to have more people join the program. Mostly because it is a great program and also the more that we have the better the benefits for our association and all if its members 14 The dues are very low for the benefits that you get. I do not see the dues as a road block they are of great value 15 To recruit more member we should get more people to come to our convention (and have one yearly) each year that people come out for that show it grow in popularity and people want to be a part of it 16 We need to reach more people in the floral industry with advertising. Comment(s): CalFlowers is well positioned to grow membership nationally because of the discounted shipping program and should consider the South American FedEx offer. Membership growth should be a top priority.

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 15 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

12. Key Governance and Management Issues

Is the association governance and management infrastructure sound or in need of tweaking? How about the committee structure? Are we staffed sufficiently based on the capacity we need to provide value to our members through our delivery of products and services going forward? Do the governance links and integration, both vertically and horizontally between governance and management units allow for maximum intra-organizational coordination and planning? Do we all know our roles and where we fit in the future and are our functions within governance and management units positioned appropriately?

Issues / Factors / Impact

1 A committee structure would be very useful – I imagine it can emerge from the board’s strategic planning work. // Committee structure needs more member involvement // Need to further develop concrete committees with specific tasks // The board has never had strong committees. (4) 2 No, the various parts (e.g., staff, board and membership) really have no idea. HOWEVER, I’d like to think that they have taken steps in the right direction hiring and listening to their new management. // We have made good progress in solving years old policy and governance issues and need to continue. This is not a strong suit of the board. // I think we are moving very positively into the future with our new structure. Being fairly new to the board it appears that everyone had the right intentions for the betterment of the industry and with the Help of Mike and Chris we are going to accomplish more with them leading us (3) 3 I don’t believe we are clear in our roles, since there are different views of what the roles should be. // No we don’t know our clear rolls we can do much better here // More defined roles for all involved (3) 4 The staff is fine, but they are not well led, therefore their main focus is maintaining the status quo. 5 Seem to be slightly understaffed. And frankly, not sure if the existing staff has the expertise to move forward if there were a cultural change in what the assn does and wants to do. 6 What products and services does the assn want to deliver? Right now, seems rather monolithic. 7 We need to unify staff and management. Last board meeting was not pleasant. 8 Let’s break that introduction to this topic down into plain language and investigate the parts. 9 No experience with committee other than transportation committee I am too new 10 As mentioned above, too top-heavy and too little leadership turnover 11 We need to successfully transition to the new management structure in a positive way – seems to be going well but with a few bumps in the road 12 Since Mike and Chris have been on board our association has been renewed and restructured for the better. It would help us to have a comprehensive Treasurer it would also be beneficial to have a full time membership service and Fun and Sun event planner on board as this position is needed to recruit membership 13 Staff needs to improve at engaging members, not just the board. 14 Board needs more education on governance and what the responsibility involves

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 16 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected] CONFIDENTIAL

15 Need to involve committee members outside of the Board Comment(s): Although CalFlowers new management is going in the right direction, many issues still need to be addressed. An appropriate committee structure that adequately represents and engages more members needs to be developed in addition to an organizational structure that defines and clarifies the roles, functions, and responsibilities. New leadership blood is needed as well in the future.

KEY SCAN ISSUES TO CONSIDER

 Growth and expansion - national / international—membership diversification

 Financial Diversification - perceived overreliance on the shipping discount

 Building membership value beyond FedEx discount

 Leadership development/succession - how to get members involved in association--Better committee structures, better defined roles

 Competition from imports

 Partnership building with regards to advocacy

 Research on consumer habits and a younger generation of consumers

 Local issues of water shortages, labor, benefits, healthcare etc.

 Dealing with a decreasing grower population and younger growers

 Position of the association in the legislative arena

 Other

©AMMR--This instrument is proprietary and confidential to be used solely by the association and the respondent in 17 completing this environmental scan and may not be copied or used for any other purpose or organization. All responses are strictly confidential. For questions, call or e-mail AMMR at 301.530.9066 / [email protected]