Hangers Cleaners Competitive Advantage, Mission, Strategic Planning - Case Study Example

1. Compared to other companies in the dry cleaning industry, what is Hangers Cleaners’ mean of competitive advantage? Hangers Cleaners of Kansas City is environmentally safe dry cleaner that employs the colourless, ordorless liquid carbon dioxide rather destructive chemicals used under the old dry cleaners. Hanger dry cleaner is participating, in which it involve the communities in that the company was placed as an integral member of the society and partners with local business as well as charities, collecting from as well as supplying to their office which introduced hanger dry cleaners’ to many workers bypassing the expense of the old media[Ken13]. 2. Compared to other companies in the dry cleaning industry, what is Hangers Cleaners’ mission? The mission of the company is to ensure that it become a leading dry cleaning company that is eco-friendly across the country. The company strategy is to ensure that provides customer loyalty in terms of price fairness, quality services and community involvement in the business operations[Cra14]. 4. What do you think would be Hangers Cleaners’ Key Success Factors (KSFs)? You should identify and explain at least six KSFs. The company focus on customer satisfaction The price of the product and services at Hangers dry cleaners is favourable The company focus on Eco-friendly business The company consider customer loyalty and hence, appreciates feedback which makes it improves the business operations There is the culture of tight-knit culture of service and accountability 5. How MAS tools and techniques would be to Hangers Cleaner a. Strategic planning Strategic planning is an important tool to the company since, it will in planning for the company future growth as well as identifying areas that would company focus in order to ensure that the business remains viable in the market ion the future. As result, strategic planning, ensure that the company adheres to the set policy statement in tis daily operations as well as understanding future business situation at present and making right investment alternatives[Col05]. b. Budgeting Budget is a financial forecasting tool that will help the company in stick to the set budget standards prepared. The importance of budget to the company is that, there will be no unnecessary cost or spending since, the company will be operating under the controlled budget which in turn, would lead to analysis of current business performance and budget estimates at close of the financial period and provide investment decision on the how the business ism operating as well as Ares that need improvement. In performance based budgeting an ideal investment decision here is to appraise the production line on the basis of contribution it generates since, an investment decision on whether to discontinue a production is on the basis of positive or negative contribution it generates hence, and fixed cost is relevant in making an investment decision[Dut13]. c. Flexible Budgeting Flexible budget is important to Hangers dry cleaner due to the fact. It ensure that that company is operating well at the times of financial emergence which provides that, a company make adjustments to source finance or consider other financial options in ensuring that the business operation is effective throughout the financial period. To minimize the cost to the business, the company is committed to ensure that only relevant cost is incurred. This is made possible by following the flexible budget employed by the company so as to avoid the unnecessary cost to the company[Hor08]. d. Overhead Cost Allocation Overhead cost allocation ensure that the every department cost is allotted on the basis of unit produced. The importance of overhead cost allocation to hangers dry cleaner is that, it make the manager make an informed decision making in terms of department cost, as well as equitable distribution cost. This would lead to efficiency in production since, every department is allotted cost power unit of base making it easier to identify department that is not operating well[Rog10]. e. Variance Analysis Variance analysis entails assessment of the budget and the actual results and checking whether the variance is favourable or unfavourable. The importance of variance analysis is that, it provides the managers of Hangers dry cleaner with information of the extent to which the budget estimates is followed and areas that need improvement specifically, areas with, unfavourable variances[Ric09]. f. CVP Analysis Cost volume profit analysis entails analysis of the cost of production, the volume of production based on cost incurred to produce the product as well as the associated profits from the volume of unit produced. This is an important cost appraisal tool that helps hanger’s dry cleaners to evaluate the effectiveness of cost accounting in controlling cost, as well as understanding the correlation between volume of production and profits realised[Rog10]. The net effect that CVP provides an overview of the link between cost of production and profits realised in volume of units produced. Which makes it simpler for the company to appraise its costing accounting systems? g. Target Costing or Cost-Plus Pricing Whilst the cost plus approach employs the cost to establish the price, target costing is the opposites. It employs price to establish cost. Hanger’s dry cleaners starts by establishing the extent to which it need to charge a product. Where it subtracts the anticipated profits from the price to conclude at the utmost cost if may have enough money to pay to produce the product. The importance of targeting cost is that it will hangers dry cleaner to clear set the charge price to its customers that will make the business realise profits as well as retaining the customer due to charge price contentment by the customers. This will lead to improved business operation since; the customers of the company will be loyal hence, growing the business[Raj10]. h. Capital Budgeting Techniques Capital budgeting technique is significant since, it create transparency as well as measurability. When Hangers dry cleaners seek to venture its resources in a project, devoid comprehending the risk as well as returns entailed in the project, it may be held reckless by the shareholders. Moreover, if hangers dry cleaners have no way of appraising the efficiency of its venture decisions, chances are that the business will have small opportunities of enduring competition in the market. In this regards, the capital budgeting is a plausible way for business to establish the long term economic as well as financial profitability of a venture project[Col05]. Capital budgeting is a procedural procedure that business employs in determining the benefit of a venture project. The verdicts of whether to accept or reject a venture alternative as part of a company growth strategy, entails establishing the venture rate of returns that the project will create. Nevertheless, the rate of return that is considered satisfactory or deplorable is impacted by other external factors that are unique to the hanger’s dry cleaners and the project intended as well[Cha12]. Reference list Ken13: , (Boyd, 2013), Cra14: , (Deegan, 2014), Col05: , (Drury, 2005), Dut13: , (Dutta, 2013), Hor08: , (Horace R. Brock, 2008), Rog10: , (Hussey, 2010), Ric09: , (Lanza, 2009), Raj10: , (Ramji Balakrishnan, 2010), Cha12: , (Charles T. Horngren, 2012), Read More