Arcadia
BUSINESS REPORT
Group 12 Guido Amendolaggine Anastasia Dell’Oro Margherita Polo Chenhao Yang
Politecnico di Milano Final Synthesis Studio PS1 A.Y. 2019/2020 The Responsible city
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CONTENTS
Arcadia
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Legal definitions/ dispositions
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Economical Definitions
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Performance
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Sources
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ARCADIA
Arcadia is a service that involves different actors, from medical patients and residents to domestic and non-domestic animals; and different context, as indoor spaces, outoor fields and hospitals. To shape its complexity, it is mandatory to understand the legal context and follow the existing regulations regarding the management and care of domestic animals; at the same time it is necessary to consider the implications of managing “wild� species in an urban environment, as some birds, insects or small animals. Indeed, it is a hard task to define the proper size and influence range of the service since MilanoSesto is going to be progressively built through the time.
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Arcadia
The following booklet aims to define our economic activity, setting all the parameters to properly follow the legal requirements to run a service of this nature. At the same time, tries to adequate the service offers to give a smart answer to the costumers for each of the phases of the project. It provides a summary of the existing laws and regulations, the resources needed and the economical requirements to estimate how Arcadia will work. It also includes economic estimations and performance indicators, to forecast its success through the years.
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LEGAL DEFINITIONS /DISPOSITIONS
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SECTOR/ ME AN IN GS
Commercio di animali di affezione (Animal trade affection) Any economic activity such as, for example, animal sale shops, animal pensions, grooming, training and breeding activities. Animali di affezione (Affection animals) Each animal kept or intended to be kept, for company or affection, without being destined to the production of food for human consumption, as well as those used by the disabled, for pet therapy, for rehabilitation and those used in advertising. Detentore (Holder) Any legal entity that, for whatever reason, is responsible for the care and welfare of the affectionate animal, providing for its accommodation and providing adequate care and attention, taking into account its physiological and ethological needs, according to the age , the sex, the species and the breed of the animal. Taglia (dog size) According to the law, dogs are classified according to their size, small size for dogs up to 10 Kg, medium from 11 to 30 Kg and large over 30 Kg.
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SPATIAL REQUIREM ENT S + The new buildings can accommodate a maximum of 200 dogs and must be built according to the current urban planning and public hygiene regulations at least 200 meters away from residential areas. The area where to build the new structure must be easily accessible, not subject to flooding or landslides. + For each dog is required a minimum area of 4 square meters, of which at least 2 are closed and covered and the remaining are used as courtyard. + The boxes for permanent custody require a minimum surface area available for each dog housed of 20 square meters, of which at least 2 are closed and covered and the remaining used as a courtyard. + The space dedicated to cats should be up to 2.5 meters high and should provide for each animal a space of at least 1.5 square meters. + A secluded area or “quarantena� to keep the animals with specific medical and social requirements (sickness, females in heat, not socialized animals, etc.) is required.
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STAF F REQ UIREM E NT S
+ At least 1 employee every 10 animals for caring, training, with adequate knowledge and professional skills. + At least 1 employee every 50 animals for cleaning, feeding, routine maintenance with adequate knowledge and professional skills. + In shelter for pets a vet must be nominated as a health manager and should be operative 24/7.
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SECURIT Y REQ UIR EM ENT S
+ Pets need to be registered to the registry office (Anagrafe Animali), and should be wearing its ID tag or other identification. + Animals should be trained and socialized (not showing continuous signs of fear, will not display reactive behaviours towards humans or other animals, can go to the toilet on command, can sit or lie quietly on the floor next to their owner and other pets) + Animals must never be left alone with anyone other than their owner/handler and must be always supported by a member of the staff.
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MEDICAL REQUIRE M E N T S *
+ Pets must be vaccinated against different agents (distemper, parvovirus, and hepatitis, leptospirosis). + Parasite prevention: pet should be treated to prevent fleas, ticks and worms on a regular cycle. + Medical certificate and clinical history, in case pets need some medical treatment.
*needed at the moment of the subscription
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ACCESS DISP O SITI ONS
+ If the owner/handler or pet have or have had diarrhoea and vomiting in the last 48 hours or have respiratory symptoms such as a cough and cold, they should not attend the space. + If the pet or its handler develops a skin condition, advice should be sought from the local infection prevention and control team or GP as to whether the owner/handler and dog are visiting. + The owner/handler, the patient and anyone who has contact with the animals must clean their hands with soap and water, sanitiser or alcohol rub. + The dog should be cleaned and well-groomed before any visit. The space must be constantly cleaned and sanitized.
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ECONOMICAL DEFINITIONS
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ARCADIA FO R O Arcadia Foro will offer a specific group of services related to pet caring for residents, patients and workers of MilanoSesto, by providing them a space that promotes the interaction between humans and animals in a safe place. The idea is to help resident and workers, not to leave their pets alone, and sustain patients letting them bring their animals near the hospital during the treatment. Patients, with the medical permissions, can access the space and visit their pets during the day, people that don’t have pets can reach the place and interact with other patiens, animals and residents.
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TARGET MARKET DE FI N ITION PRO C ESS + Italy inhabitants According to the last numbers provided by the ISTAT, in the year 2018 Italy had 60.483.973 inhabitants divided among all the regions. + Pets per person in Italy ASSALCO published a report in the year 2019 saying that in Italy there are 60.227.000 registered animals, almost one animal per inhabitant. From this number, there are 7.002.000 dogs (around the 11% of the inhabitants) and 7.300.000 cats (around the 12% of the inhabitants). + Milan inhabitants Regarding the last numbers provided by the ISTAT in the year 2016 in the local context, the metropolitan city of Milan had an approximated number of 1.345.000 inhabitants. + Pets per person in Milan In the year 2017 there were 1.660.000 registered animals in Milan, around 23% more of animals than human inhabitants. The last number of registered dogs in the city correspond to the year 2016, with 267.000 registered animals. Another number of the same year is that almost 20% of the families have pets.
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MilanoSesto expected inhabitants In line with MilanoSesto masterplan, 15.000 inhabitants are expected to populate the district, divided in 8.600 residential units. The hospitals consider more than 700 beds, and thousands of people are expected to transit daily the zone, between patients, visitors and workers.
Pets expected in MilanoSesto Following the national and regional statistics about the amount of registered animal, and applying the same percentages to MilanoSesto, we can hypothesize that there will be around 1.650 registered dogs and 1.800 cats, plus some other small domestic animals.
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+ Italian family composition and income Regarding the family composition in Italy, the last numbers provided by ISTAT in the year 2018 report that the 34% of the inhabitants were single families. The annual average income of a single person in Italy is 24.420â‚Ź, between dependents and freelancers, that have an approximate monthly income of 2.000â‚Ź. Target market in MilanoSesto From the Total Available Market of 15.000 people in MilanoSesto, making a proportional esteem with previously presented data, only around 3500 of them are expected to have pets and can be considered as our Served Available Market. +
Crossing this numbers with the 34% of single families living in Italy we can hypothesize our future Target Market in MilanoSesto, that is composed by single inhabitants with pets that don’t want to leave them alone when they go to work. This Target Market represents around 1200 pet owners, with 561 dogs and 612 cats. Possibility of growt The district is going to be developed in several phases and it will be populated progressively, this is a key element to consider when physically shaping the service and the area to use.
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The smartest solution is to consider the space as expandable and modular, giving the possibility to grow as soon as people and animals populate MilanoSesto. Another factor to consider when designing the services is the legal restrictions that demand a certain number of square meters according to the animals hosted, but also establish a maximum of animals, and a minimum distance from inhabited centres.
Amount of animal to start To start and test the market, the offer will be restricted and reasonable, a small percentage of the inhabitants expected in MilanoSesto can be involved. In the first phase will be hosted 60 dogs, representing the 10,7% of the Target Market, and 30 cats equivalent to the 5% of the same market, and we expect 200 visitors per month that represents only the 1,3% of the Total Available Market.
FIRST STEP
60 Dogs 25 Full Care Treatment/ 35 Day Care Treatment 30 Cats 200 Visitors (Expected monthly affluence)
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DIMEN SION
Space usage Following the different regulations about the animal wellbeing and the minimum spaces dedicate to them, around 600 square meters are requested by law for the animals in the initial phase. From this area, 550 square meters are dedicated to dogs, between day and night care, and 50 square meters are the minimum dedicated to cats. To these minimum legal square meters, and considering the possibile presence of other domestic small animals, we added a big extra area due to give flexibility to the space. To sum up, Arcadia Foro will cover an area of 1000 square meters in the initial phase, divided in covered and open areas for animals.
Max animals According to the legal regulations the maximum number of dogs hosted in a service of this nature is 200 dogs, that represents a good portion of the target market, the 35,6%. Following the same proportion of growth, we expect to host a maximum of 100 cats, the 16,3% of this market.
200 Dogs 100 Cats
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80 Full Care Treatment/ 120 Day Care Treatment
Max Spaces Considering the growth of the service offer, hosting 200 dogs and 100 cats, it is mandatory to enlarge not only the offer but also the physical space dedicated either to animals or humans. Following the minimum spaces dedicate to them, around 1950 square meters are requested by law for the animals in the final phase. From this area, 1800 square meters are dedicated to dogs, between day and night care, and around 150 square meters are the minimum dedicated to cats. To these minimum legal square meters, considering again the possibility to host other small domestic animals, we added a big extra area due to give flexibility to the space. Finally, Arcadia Foro will cover an area of 2500 square meters only dedicated to animal in the last phase of the service, divided in covered and open areas.
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Integrated Spaces Arcadia Foro is a space not only dedicated to the animal care, but also dedicated to the interaction between animals and humans, inside nature. This means that green spaces and parks are needed for both of them, and also a safe space for the medical interactions. The Foro is going to be placed in a building under the last part of the old rolling mill train structure, surrounded by a big open park that connects the space with the San Raffaele Hospital. The building will occupy a total of 3.900 square meters of covered spaces, including not only the spaces dedicated to animals but also the functional areas for humans like bathrooms and offices, and part of the neutral space, dedicated to the meeting between patients, residents and pets. Arcadia promotes the urban biodiversity and the integration between nature, humans and animals so 8.900 square meters are dedicated to open spaces, between parks and gardens. The total area covered by Arcadia Foro will be 13.000 square meters, between closed and open areas, and functional and free areas. In addition to this, we want to integrate the open area of the Foro with the garden of San Raffaele Hospital, wich represent around 6.500 square meters extra park.
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Covered area
Open area
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PRICIN G / RESO UR C ES
Price list Full Care Treatment dogs (Daycare+ Night)4
80€ per week ......................................................................... 480€ per day ...............................................................................
Full Care Treatment Cats (Daycare+ Night)4
50€ per week ......................................................................... 300€ per day ...............................................................................
Daily Care
500€ per week ......................................................................... 300€ per month ......................................................................
Arcadia Foro access fee (for residents without pets)
per month .......................................................................... Arcadia Foro access fee for patiences
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10€ free
Resources needed 1 guardian for each 10 dogs DAYTIME
(feeding, playing, training, caring)
1 guardian for each 20 dogs NIGHTIME
(feeding, playing, training, caring)
1 veterinarian/specialist available 24/7 to
take care of the animals and assist them if something occurs in Arcadia Foro
1 security officer guarantee the safety of animals during the night 2 maintenance employees cleaning and
repairing the structures
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COSTS
Initial costs Starting a business of this nature requires a big investment in terms of equipment and adaptation of the building, to make it safe for both animals and people. This process costs from 30.000€ to 50.000€ for each 100 square meters built, depending on the location and type of building. The estimation we made considers the first 600 covered square meters requested by law, with a building cost of 40.000€ each 100 square meters. There are other big costs that are the development of the digital platform, and all the equipment and materials needed for the daily work.
240.000€ 80.000€ 30.000€
Building adaptation Digital Platform development Equipment and Materials
350.000 € Initial cost
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Running Costs (monthly)
700€ 3.000€ 500€ 1.500€ 15.000€ (*) 2000€
Insurance Services Materials Digital platform maintenance Rent Food Salaries per employee 13 employees operating at 100% 9 employees operating at 50% 7 employees operating at 25%
Commercial fees and taxes according to the occupancy
25.000€ operating at 100% 13.000€ operating at 50% 6.000€ operating at 25%
* The food cost is considered as marginal because we expect to cover the major part of the cost establishing different partnerships and commercial arrangements with providers, offering advertising for their products. Furthermore, based on the data collected, most owners personally prepare food for their dogs and bring it daily to the daycare.
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Arcadia
ARCADIA C AVA Arcadia Cava will provide a bunch of offers related to the biodiversity care, aiming to educate citizens to maintain the ecosystemic services within the district. The idea is to involve every citizen by addressing needs and interest of each of them, with workshops, amateur activities, scientific participation, animal adoptions or shelters purchase.
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ACTI VITIES MANAG E M E N T/ COSTS Workshops Sensitizing residents is fundamental, that’s why in Arcadia Cava will be held 38 workshops per year, including 3 per season of building shelters (12 per year), 2 per season of building feeders for birds (8 per year), 1 each 2 months about caring plants and animals (6 per year) 1 per month of different scientific and leisure activities (12 per year). Each workshop will be held for 20 people due to interest and affluence esteems, and we calculate they will have an operating cost of 250€ each one, including the expert salary and some materials. This represents a cost for Arcadia of 10.000€ per year. People that are part or Arcadia Foro or have adopted any animal will be able to attend the workshops for free, but external people will be asked to pay 15€ for the workshops and 5€ for the scientific activities. We plan a three-step scheme of payment, in the first one we expect 15 people paying and 5 not paying; in the second one we expect 10 people paying and 10 people not; and in the last one when more people are going to be part of the other services we expect only 5 people paying. The total loss will be covered by the higher income obtained from Arcadia Cava.
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1° phase 25% accession (15 paying/5 not paying)
6.750€ Incomes -10.000€ Costs
-3.250 € Total loss 2° phase 50% accession (10 paying/10 not paying)
4.500€ Incomes -10.000€ Costs
-5.500€ Total loss 3° phase 75% accession (5 paying/15 not paying)
2.250€ Incomes -10.000€ Costs
-7.750€ Total loss
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Animal shelters People all around the world are starting to be aware of the environmental crisis we are living and realize that preserving urban biodiversity is one of the best solutions to maintain human environments safe. Although it is not an easy task to know people willingness to adopt an animal or support these types of initiatives, thanks to others similar cases we can try to estimate the possible demand of our services. There is a famous and successful initiative in Florence called Bat Box, in 2007 the supermarket Coop associated with Museum of Florence to sell shelter for bat in their branches. In the first 3 year more than 7.000 units were sold. This represent only the 0,6% of the 365.000 inhabitants of Florence in that period, what shows an incipient but important willingness of the people to protect bats. Apart from this particular case, it is demonstrated that the key element here is the awareness of the citizenship, if people become aware of the benefits of protecting species and biodiversity, they could change their minds and start taking action. Applying directly this proportion to MilanoSesto inhabitants, there could be around 95 people per year willing to buy bat shelters and install them in their homes. This is still an assumption based on other city or context, so this number is not the most accurate one, anyways it can help to forecast people’s behaviours in these cases.
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Amount of expected shelters We expect that around 200 shelters could be built by people during the workshops each year, in addition around 50 shelters more could be bought by people as adoption or installed in the buildings. In summary, each year around 250 shelters could be added to Arcadia, divided among all the living and migrating species present in MilanoSesto, spread around all the green areas but specially in Arcadia Cava.
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Amount of adoption An effective solution to engage people in taking care of the environment is giving them the possibility to make a symbolic adoption of an animal to protect that specie, that means a yearly subscription fee to support this. In our case the adoption fee will be 25€ per year, that will help us to buy and build shelters, food, and cover other costs to maintain biodiversity of MilanoSesto. This fee will also give the possibility to attend for free the workshops held in Arcadia Cava.
3.750€ 150 people (1%) 37.500€ 15.000 people (10%) 187.500€ 7.500 people (50%) 375.000€ 15.000 people (100%)
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Amount of beehives In a future urban ecosystem, it is mandatory to consider bees, because they are one of the most important pollinators that keep biodiversity. In fact, he city of Milan is carrying out the creation of a green corridor to attract pollinators, with more than 3000 different flower plants, that connect NordWest to South East of Milan. In line with this green corridor for bees, Arcadia Cava will have an approximate number of 25 hives, providing bees not only plants and flower to be attracted but also a place where to live.
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Arcadia
PERFORMANCE
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BOSTON CONSULT I N G GROUP ’S G ROWTH M AT RI X
LOW
HIGH
Y
Heart Arcadia Cava
Rabbit
Star
Cash-cow Arcadia Foro
X LOW
X Economical Sustainability Y Social Impact
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HIGH
Performance
In Arcadia Cava, the most meaningful group of services related to the urban biodiversity restoring and maintenance is focused on the education and awareness of citizens about the impact that human actions have on the environment. Even though these services have a small market share and can’t provide good revenues, they can represent a great opportunity to characterize MilanoSesto. It could become a green district that takes action to revert the climate change and make it well known for all these positive values in terms of environmental care. On the other hand, in Arcadia Foro petrelated services represent the profitable side of the whole ecosystem that could be applied in the early phases of MilanoSesto having good market share, and be scaled as the district grows. These services are our “Cash cows� that generate and provide the economic resources to keep the other part of the services going on.
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GROW TH FORECAST I NG
As follows in the next pages, we foresee that in the first months Arcadia Foro will operate around 25% of its capacity until it becomes trustable and well known and people start bringing their animals. For this initial phase we consider economic loss, because the extimated running costs are higher than the incomes. Almost after six months/one year we expect to work at the 50% of the capacity in terms of animals hosted. At this point the income start to become higher than the running cost, providing some revenues. From this revenues, up to 30% could be spent to cover the initial cost. After the first/second year, with the service already established, we expect it to be working with the 100% of the animals. In this case the income far exceeds the running costs, still allowing us to use up to 30% of it to cover the initial costs. With this growt estimation, we can expect that almost after three years, Arcadia Foro will cover the initial costs.
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Performance
Performance operating at 25% (15 dogs/7 cats/50 visitors)
Gross income
+ 15.000€ 11.250€ 4.250€
500€
31.000€
Full Care dogs Full Care cats Day Care dogs Visitors Fee TOTAL
Running costs
-
700€ 3.000€ 500€ 1.500€ 15.000€ 14.000€ 6.000€
40.700€
Insurance Services Materials Platform Maintenance Rent Salaries (7 employees) Commercial fees TOTAL
Net income
31.000€ - 40.700€
Gross income Running costs
-9.700€
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Performance operating at 50%
(30 dogs/15 cats/100 visitors)
Gross income
+ 30.000€
Full Care dogs
22.500€ Full Care cats 8.500€ Day Care dogs 1.000€
Visitors Fee
62.000€
TOTAL
Running costs
-
700€ 3.000€ 500€ 1.500€ 15.000€ 16.000€ 13.000€
49.700€
Insurance Services Materials Platform Maintenance Rent Salaries (8 employees) Commercial fees TOTAL
Net income*
62.000€ - 49.700€
12.300€
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Gross income Running costs
Performance
Performance operating at 100%
(60 dogs/30 cats/200 visitors)
Gross income
+ 60.000€
45.000€ 17.000€
2.000€
124.000€
Full Care dogs Full Care cats Day Care dogs Visitors Fee TOTAL
Running costs
-
700€ 3.000€ 500€ 1.500€ 15.000€ 26.000€ 25.000€
71.700€
Insurance Services Materials Platform Maintenance Rent Salaries (13 employees) Commercial fees TOTAL
Net income*
124.000€ - 71.700€
Gross income Running costs
52.300€ *If needed, part of the net income could be spent in Arcadia Cava activities maintainance
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After 6 months (expected performance 25%) Gross Income Costs Net Income
186.000 € 244.200 € - 58.200 € 0*
Payment
After 1 year (expected performance 50%) Gross Income Costs Net Income Initial cost payment Final Income
558.000 542.400 73.800 22.140 51.660
€ € € € €
After 2 years (expected performance 100%) Gross Income Costs Net Income Initial cost payment Final Income
1.488.000 € 866.400 €
621.600 € 186.400 € 435.120 €
After 3 years (expected performance 100%) Gross Income Costs Net income Initial cost payment Final Income
1.488.000 € 866.400 € 621.600 € 186.400 € 435.120 €
After 4 years (expected performance 100%) Gross Income Costs Net Income Initial cost payment Final Income 46
+
1.488.000 € 866.400 € 621.600 € Covered** 621.600 €
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Performance
KEY PERFORMANCE INDICATORS Arcadia essentially follows two main directions, on the one hand Arcadia Cava is the most important in oreder to educate and sensitize people to the respect and maintenance of urban biodiversity; on the other hand, Arcadia Foro has a financial relevance related to the pet caring and the income can cover Arcadia Cava costs. To understand the success of Arcadia Cava, the KPI should be related to measure the level of awareness and engagement of people regarding urban biodiversity.
+ Effectiveness of the services, especially in terms of awareness N of adoptions/Inhabitants of MS
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Engagement and permanence of the customers
N of last year adoptions/Renewals of the adoptions
To understand the success of Arcadia Foro, the KPI should be related to measure how many people are demanding the service and understand its segmentation to adapt the service and give them the best offer. + Level of demand and market segregations N of full care (-) N od day care pets
+ Demand per inhabitant
Full care pets in Arcadia Foro/Inhabitants of MS
+ Type and amount of animals *Impossible to cover the initial cost payment due to negative Income amount **Estimated Initial cost 350.000â‚Ź pag.28 47
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SOU RCES
+ Norme per il benessere e la tutela degli animali di affezione.
Requisiti delle strutture di ricovero e custodia convenzionate e non convenzionate con finalità prioritarie all’adozione; requisiti delle strutture per attività di commercio, allevamento, addestramento e custodia con finalità commerciali; termini per l’adeguamento dei requisiti. Bollettino ufficiale della Regione Friuli-Venezia Giulia. (Regolamento ai sensi della legge regionale 20/12)
+ Norme nazionali sulla tutela degli animali d’affezione e lotta al
randagismo competenze e responsabilità. Ministero della Salute, Direzione generale della Sanità animale e del Farmaco Veterinario.
+ Regolamento comunale per il benessere degli animali e per una
migliore convivenza con la collettività umana. Settore Ambiente e qualità urbana, ufficio ambiente, Comune di Monza. (Approvato il 19/07/2004, Modificato il 23/06/2005)
+ Regolamento comunale per la tutela del benessere degli animali e la loro convivenza con i cittadini. Associazione Nazionale Comuni Italiani (ANCI).
+ Regolamento di attuazione delle disposizioni di cui al Titolo VIII,
Capo II, della l.r. 33/2009 recante norme relative alla tutela degli animali di affezione e prevenzione del randagismo. Bollettino Ufficiale. Giunta Regionale della Lombardia. (Regolamento regionale 13 aprile 2017 N°2)
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Sources
+
Working with Dogs in Health Care Settings. A protocol to support organisations considering working with dogs in health care settings and allied health environments. Royal College of Nursing. (May 2018)
+ XII° edizione Rapporto Alimentazione e cura degli animali da compagnia. Associazione Nazionale Imprese per l’Alimentazione e la Cura degli Animali da Compagnia (ASSALCO) 2019
+
Balgooy, M. van, & Balgooy, M. van. (2015, October 5). How a Classic Business Matrix Can Help Museums and Historic Site. Retrieved from https://engagingplaces.net/2014/08/06/howa-classic-business-matrix-can-help-museums-and-historicsites/.
+ What Is the Growth Share Matrix?: BCG. (n.d.). Retrieved from
https://www.bcg.com/about/our-history/growth-share-matrix. aspx.
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THE RESPONSIBLE CITY
Master of Product Service System Design PSSD Final Studio Academic Year 2019/2020 Prof.sa Anna Meroni Prof.sa Stefana Broadbent Prof.sa Daniela Selloni Prof.sa Elena Perondi Tutors: Martina Rossi, Luca Molinari, Matteo Mariani
Arcadia
Group 12 Guido Amendolaggine Anastasia Dell’Oro Margherita Polo Chenhao Yang 51
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