Situational Analysis: Samteo Childcare Centre - Case Study Example

Situational Analysis: Samteo Childcare Centre Name Institution Name Course Name and Code Executive Summary Internal environment – Samteo Childcare Centre has appropriate resources and mechanisms to ensure it operates and fulfill its operations effectively. Assessment of the business indicates it is within the standards of competitors and provides services and products that are better when compared to competitors. External environment – through the use of PESTEL analysis, the government and other stakeholders have provided mechanisms and means to ensure the business operates with minimal interruptions provide the organization adheres to the laid down legislations and policies. Customer analysis – The market share is very large because of the environmental and occupational requirements. Most of the middle and upper class families are employed and have minimal time to take care of their children. It is attributed to customer demographics, behavior and psychographic segments. Competitor analysis – Competition is tough and there are child care services organizations that have been in operated for longer periods. The resources available to these organizations and reputation are a major issue that the marketing plan should address. SWOT Analysis – the strengths of the organization include the experience and knowledge of the owner of the organization. In addition, the services offered are different from competitors. The opportunities include being certified by relevant bodies, and it would also address the weakness of the organization. It is important also to create a marketing plan that addresses competition. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 5 Internal Environment Analysis 5 Assessment of the Business 5 Scope of the Marketing Plan 6 Brand Details 6 Internal Resources Assessment/Marketing Capabilities Statements 6 Marketing Mix Strategies 7 External Environment Analysis (PESTEL Analysis) 8 Political 8 Economic 8 Social/Cultural 8 Technological 9 Environmental 9 Legal 9 Customer Analysis 10 Target Market Segmentation 10 Target Market 11 Positioning 12 Review of Customers 13 Competitor Analysis 14 Summary of Competitors 14 Opportunities and Threats 15 SWOT Analysis 15 Strengths 16 Weaknesses 16 Opportunities 16 Threats 17 Conclusion 17 References 18 Introduction Mrs. Hwany Yangbok established Samteo Childcare Centre is 2012 and is located at Lidcombe area, New South Wales, Australia. Mrs. Hwany has a degree in Education and Counseling and she is proficient in three languages: Japanese, Korean and English. In addition, Mrs. Hwany is an expert on childhood and understands all important requirements that enable a child to grow ell. Samteo Childcare Centre provides childcare services and day care services. In the case of child care, there is a day care that lasts from 8 am to 5 pm while the evening care takes place between 5 pm and 11 pm. The children admitted to the centre ranges in age from three years to six years. The aim of this section is to analyze the environment in which Samteo Childcare Centre operates highlighting important factors that impacts the business. The paper discusses internal and external environment, customer analysis, competitor analysis and SWOT analysis. Internal Environment Analysis The purpose of internal environment is to determine the capacity of Samteo Childcare Centre in providing highlighted services and products. This section analyses internal capacity of Samteo Childcare Centre. Assessment of the Business Samteo Childcare Centre was established in 2012 by Mrs. Hwang Yangbok. Mrs. Hwang has extensive experience in childcare care including educational requirements. She has worked in numerous institutions since receiving her degree in 1986. She can communicate and understand three international languages: Japanese, Korean and English. Samteo Childcare Centre provides both educational requirements and child care services. The child care comes into forms, which are day care and evening care depending on the requirements of the customers. Moreover, Samteo Childcare Centre provides snacks, playground and other playing equipments and services to the children. The mission statement of Samteo Childcare Centre states that it is after ensuring the optimum services are offered with entire business model fulfilling the requirements of the children. The corporate objectives is to increase the market share through enrolling more children whose parents are after high quality and education system grounded on ethical and moral requirements. Scope of the Marketing Plan The marketing plan aims to sell entire services offered by Samteo Childcare Centre (Baker & Hart 2008). The services include child care and educational facilities. It means the marketing plan is ensuring the customers are engaged and informed on the services and product that are offered in the child center. Brand Details Samteo Childcare Centre is the brand because the packing and the entire preposition is based on the name of the institution. Some important features contained the package include the educational facilities, child care services, availability of snacks, playing resources, and conducive environment that encourage growth. Internal Resources Assessment/Marketing Capabilities Statements Samteo Childcare Centre has been in operation for the last three years. Therefore, Samteo Childcare Centre has brought together all important resources that ensure it operates optimally. It includes employment of part time assistant and possessing appropriate certification and licenses. Marketing Mix Strategies Marketing mix strategies are integral ensuring an organization becomes successful. Samteo Childcare Centre marketing mix strategies are: Place – Samteo Childcare Centre operates at Lidcombe area, NWS, Australia. The services and products are offered within the facility. Children come from their respective homes and attend the Samteo Childcare Centre. Product - Samteo Childcare Centre provide general services and products that are common to child care. Some of the services and products include child care, provision of meals and snacks, playing equipments and basic requirements that are important to the success of a childcare facility. In addition, the children are given basic education based on legal and legislative approvals within the society. Position - Samteo Childcare Centre provide services to those parents who do not have free time to take care of their children. It targets families that both parents are working and they do not have time to take care of their children. In addition, it targets those families that have evening obligations and responsibilities. Price – Pricing is based on hourly and also dependents on the requirements of the parents. For example, there is pricing for children attending the institution between 8 am and 5 pm, and from 5 pm to 11 pm, which come in form of a package. The hourly rates are for those parents who want their children taken care for a short time e.g. one or two hours. External Environment Analysis (PESTEL Analysis) Political It factors into consideration the extent to which a government plays its role to a certain industry or economy (Chermack & Bernadette, 2007). Some political factors that should be considered include trade tariffs, fiscal policy and tax policies. These political factors usually affects economic environment and determine the way consumers’ access and acquire products and services. In the case of Samteo Childcare Centre, the government has set taxes that the institution should pay annually. Economic It defines those factors that impact on how an organization operates and how the economic position of an environment affects the long term strategy of the organization/business environment (Chermack & Bernadette, 2007). Currently, the economy of Australia is stable, manageable levels of inflation, economic growth and interest rates (Michael 2008). The economy according to Samteo Childcare Centre is stable and it is possible for the parents to acquire the services and products. Moreover, the parents have disposal income that they may use to enroll their children into the institution. Social/Cultural It scrutinizes market social environment and gauges the determents that include population analytics, demographics and cultural trends. The current social situation indicates the younger generation is growing and most of them have young children (Chermack & Bernadette, 2007). Moreover, such population aims to grow both economically and socially and the parents work long hours or attend educational courses (West, Ford & Ibrahim 2010). Samteo Childcare Centre understands the importance of social/cultural setting and ensures the services and products provide fulfills the requirements of these parents. In addition, since the institution was established in 2012, Samteo Childcare Centre continues to understand the expectations of society and continues doing research to understand areas requiring improvements. Technological Modernization and globalization has forced many institutions to embrace technological awareness (West, Ford & Ibrahim 2010). Numerous technology equipments and services are available that children at child care centre may utilize (West, Ford & Ibrahim 2010)). Samteo Childcare Centre appreciates technology and the institution has already acquired some technological equipment such as television that aids the children to learn and also to watch educational programs. Environmental Environmental factors determines environmental surrounding and may include geographical location, nature of the buildings and nearness to environmental pollutants e.g. factories (Chermack & Bernadette, 2007). Samteo Childcare Centre is located in environmental conducive environment far from any pollution or factors that can negatively impact the growth and development of children. Legal The legal perspective takes two sides (Chermack & Bernadette, 2007). The internal side factors into consideration the organizational policies while the external side is the legislations such as safety standards, consumer laws and labor laws. In employment, Samteo Childcare Centre adheres to the labor law requirements including the policies within the organization. In addition, Samteo Childcare Centre factors into consideration safety standards and consumer laws that guides how children and people should relate and work together. Further, regulations exist that specifically deals with early childhood educate and care within the area of Samteo Childcare Centre. Some of the legislations include National Quality Framework that covers child care and ensure any activity operates under National Law and Regulations (NSW Government 2014). Other regulations include Children (Education and Care Services) Supplementary Provisions Regulation 2012, and Children (Education and Care Services) Supplementary Provisions Act 2011 (NSW Government 2014). Customer Analysis The section discusses the target market segmentation, target market, positioning and customer review. The aim of the section is to understand the customer and what the customers appreciates. It is premised on internal and external capacities of the customers. Target Market Segmentation Segmentation is important because it breaks a large market into sections in which strategies can be formulated and implemented to fulfill the requirements of that section. In addition, market segmentation ensures an organization capitalizes the minimal marketing resources associated with numerous organizations in ensuring a large customer base is engaged. The market segmentations of Samteo Childcare Centre are: Behavioral segmentation – it brings into consideration benefits sought, usage rate and readiness to buy. The parents enrolling their children require high quality services and products. Moreover, these parents are constrained by numerous factors including occupation factors. Therefore, Samteo Childcare Centre utilizes the benefits that the parents sought to ensure the children are enrolled into the institution. Demographics segmentation - some of the information based on this segment include family sixe, education, occupation, income and generation. In the case of Samteo Childcare Centre, the parents that are targeted are those who both parents work at the same time. In addition, these parents have disposable income to pay for the services. Such young families’ parents aim rise up on the professional ladder meaning that they attend evening classes. Therefore, Samteo Childcare Centre would employ these features in increasing children enrollment. Psychographic segmentation – it groups the customers in terms of values, attitudes, opinions, interests and activities. The segment suit the services offered by Samteo Childcare Centre. Target Market Samteo Childcare Centre target markets are consumers who range between middle and upper class whereby both parents work. It means that both parents are working and therefore, they lack the opportunity of time of taking care of their child. In addition, the group has income that enables them to seek for childcare and also such families are ready to pay extra so that their children receive high quality services. Moreover, such consumer segment understands the importance of education and has started introducing their children to early childhood education concepts such as socialization, singing and reading. Thus, Samteo Childcare Centre positions self to advance these concepts and continue developing the children’s skills. Two important factor guides Samteo Childcare Centre to determine this is the most appropriate target market. Firstly, such parents have the resources to provide their children with sophisticated care. Secondly, such parents want the best for their children and understand the importance of providing strong background that allows children’s development and learning. Hence, the parents aim to capitalize on their incomes in ensuring their children obtain the best; whether education or living standards. The Australia economy is growing meaning that more parents would be employed. In addition, young families are coming up whereby both parents are employed. Therefore, Samteo Childcare Centre capitalizes on these features to increase enrollment and provide optimum services and products to these children and parents. Positioning Samteo Childcare Centre positions itself as day care that provide unique and advanced care services, developmental programs and unique learning for the children. The positioning strategy is premised on leveraging Samteo Childcare Centre competitive edge: Specialized training – the centre would only be successful as the assistants and the owner. For this case, Samteo Childcare Centre has a training program that ensures the assistants are proficient and are able to adhere to the quality standards, mission and vision of the institution. Therefore, the teachers/assistants should understand how to take care of the children and be ready to assist the child anytime. Innovative learning programs/conducive environmental situation – apart from the educational/training program, the children have the tools and equipments that assist in constructive playing. All the children are allowed to play with the toys/equipments. Moreover, the environment suits the development of children and therefore, Samteo Childcare Centre is positioned to attract more children. Free snacks and drinks – the children are offered drinks and snacks. Working hours – the working hours are diverse to fulfill the different requirements of consumers. There is the day care service between 8 am and 5 pm, while there is also the evening care between 5 pm and 11 pm. Such hours are determined by the obligations and nature of the parents. For example, some parents are furthering their education and may attend evening classes. Hence, Samteo Childcare Centre understands the numerous challenges and aim to provide services and products that fulfill the requirements of customers. Review of Customers Customer demographics are important because it is what is making the parents enroll their children at Samteo Childcare Centre. The population is changing including the environmental factors such as working and furthering studies that affects the way parents view child care in terms of providing optimum services to their children. Competitor Analysis The section discusses a summary of competitors, opportunities and threats associated to competition. Increase in population may mean increase in number of children. It creates an environment whereby different members and competitor formulate and implement strategies to counter strategies from competitors (Drummond, Ensor & Ashford 2010). Samteo Childcare Centre understand influence of competition and within the Samteo Childcare Centre operational area, there are many childcare institutions. A summary of three competitors are discussed. Summary of Competitors Cornwall Cottage (Cornwall Cottage 2014) SDN Children’s Services (SDN Children’s Services 2014) Choice Childcare (Choice Childcare 2014) Established/Experience 20 years of experience Started 1997 30 years of experience Children Ages 0-5 years of age 0-13 0-13 Basis of competition Provides Child Care Benefit (CCB), Approved by NQF (National Quality Framework) Approved by National Quality Framework, Provides Child Care Benefits, Wide range of educational facilities Approved by National Quality Framework, Wide range of educational facilities and services Features and benefits Provides specialized needs to special kinds such as those with learning or disability difficulties Qualified and well educated staff, staff members speaks a variety of language (total of 12 languages), encourage and support community/social languages, supports students with disabilities Provision of meals and snacks, availability of important resources and equipments for children development, hosting of children events including birthdays Working hours 7.30 am to 6 pm Monday to Friday 7.30 am to 6 pm 8 am to 5 pm Opportunities and Threats Even though, numerous competitors exist, opportunities and threats are available. Some of the opportunities include personalization of services to suit the requirements of customers (Nijssen & Frambach 2001). Moreover, the competitors do not offer evening child care compared to Samteo Childcare Centre. Therefore, Samteo Childcare Centre should capitalize on evening hours to address parents who are unable during the evening hours. Some of the threats include lack of certification by National Quality Framework. In addition, Samteo Childcare Centre has not entered into collaboration with different institutions to broaden the services and products offered. These threats disadvantages Samteo Childcare Centre operations and competitors may utilize such weaknesses to their advantage. SWOT Analysis SWOT analyses provide a mechanism in which internal factors can be analyzed factoring into consideration external factors (Porter 2003). Some of the information obtained through the use of SWOT analysis includes the strengths of the organization, organizational weaknesses, opportunities available to the organization and threats posed. In the case Samteo Childcare Centre, the following is SWOT analysis. Strengths The human resource at Samteo Childcare Centre is qualified and well trained (Chermack & Bernadette 2007). The owner of the child care facility has extensive experience and has practiced childhood development for longer periods before starting the Samteo Childcare Centre. In addition, Samteo Childcare Centre provides services and products that other competitors are unable to provide. For instances, Samteo Childcare Centre provide evening day care and the organization may utilize such information in increasing market share. Weaknesses Samteo Childcare Centre was established in 2012 meaning that the institution itself lacks extensive experience. In many cases, child care services are based on reputation and image and a period of less than three years has not provided opportunity in which it can be analyzed (Sahaf 2008). Conversely, other competitors have been in operation for longer periods and have cultivated and defined conclusively their niche. Moreover, National Quality Framework has not approved Samteo Childcare Centre since Samteo Childcare Centre has only provisional certificate. Opportunities Even though competition may be tough, opportunities exist in every environment (Birkenmaier 2001). Samteo Childcare Centre should ensure National Quality Framework approve their operations and activities. Approval would mean that Samteo Childcare Centre has proper certification and conforms to legislations and other policies in place. In addition, Samteo Childcare Centre should improve its services through introducing services such as assisting learners with disabilities. Threats Competition is the major threat (Ghemawat et al., 2001). Numerous competitors with better resources and capabilities exist within the market and these competitors are continually improving the services and product diversity (Hill & Westbrook 1997). Therefore, if Samteo Childcare Centre does not improve its services, the organization might fail to operate effectively. In addition, the current approval is provisional meaning that the government may decide not to provide a National Quality Framework credentials. Lack of such credentials would continue affecting the operations and activities of Samteo Childcare Centre Samteo Childcare Centre. Conclusion Samteo Childcare Centre was established in 2012. Mrs. Hwany Yangbok established the institution and she is qualified both academically and experience wise. Internally, the business has the strength and capacity to provide appropriate services and products. The marketing mix employed fulfills the requirements of the institution. In addition, the external environment supports and convenient to operate the business effectively. The business climate provides mechanisms and tools that ensures the business operate efficiently. The consumers market is large because of baby boomers and the demand for quality including environmental factors such as occupation. However, the competition is tough and impacts strongly the way business operates. Samteo Childcare Centre has can succeed when it receives approval and should formulate and implement strategies that counter competition. Therefore, Samteo Childcare Centre formulating and implementing an appropriate marketing plan provide a platform in which the business would continue operating and countering the strategies from its competitors. References Baker, M, & Hart S 2008, The Marketing Book, 6th Ed. London, Routledge Publishers Birkenmaier, J 2001, The Practice of Generalist Social Work, New York, NY: Routledge. 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