Clean Environment Services Business Idea - Assignment Example

TASK 1

Part A

My business idea is starting a cleaning service in London. The cleaning services will be called Clean Environment Services and it will be a business that will clean both offices and houses in London. The services which the business is going to provide include domestic cleaning in offices and homes, packages for spring cleaning, window cleaning, cleans that will be regular and one off, washing and ironing, carpet cleaning, emergency cleaning and cleaning for people who are moving in or out. The services will use staffs that are trained, trusted and friendly in order to get new customers and be able to more customers.

The service of the business will be for the people who do not have enough time to do their cleaning, people who are older and cannot manage to do cleaning and people who are busy working. The decision to do a cleaning in London was because there are many people who are busy with their jobs. This makes it a good market and a loan will be needed in order to start the business. The services will meet the needs of the customers in innovative ways like using cleaning clothes that are made of fiber, back pack vacuum cleaners which are light weight when compared to others and dispensers which are chemical concentrated. The decision to do this business because according to (Wallop, 2017) there are million more people who employ the services of cleaners when compared to a decade ago because the number of busy workers is increasing and there is need of hiring cleaning services. This is why it is a good business opportunity in the market of cleaning services because more and more people will need the services and this is an assurance of getting clients who will need the services.

Key competitors

Reasons why they are competitors

Julius Rutherfoord

The company uses the latest technology in offering their services like biometric time and attendance and security vetting. The company is always at its best in ensuring that they offer high levels of cleaning and customer services to the clients.

Starlet cleaning

The company offers domestic services, commercial services, carpet cleaning services and after builders cleaning. The company offers a wide range of cleaning services and their prices are affordable

The Happy House Cleaning Services

The company offers a wide range of services for cleaning both offices and homes. It offers free over the phone estimates for their clients, their slots are flexible and their staff is highly trained.

Greenleaf Cleaning

The services offered by the company include house and domestic cleaning, office and commercial cleaning and cleaning for an end of tenancy.

Part B

Objectives help a company to set targets for given aims to be achieved. The objectives for Clean Environment Services are:

• To maximize sales

This will help the business achieve the aim of getting maximum profits because the more we will be getting clients the more profit we will make. This will be achieved by advertising Clean Environment Services and making sure that the business provides services that are of good quality for people to recommend Clean Environment Services to the other people and get more clients, resulting to more profits.

• To survive

It is essential for Clean Environment Services to survive in the market. This is because if it will not be successful the money which will be invested in the business will just be a waste. The measure of surviving in the market will be done through a breakeven and the forecast of the cash flow (Buddelmeyer, Jensen & Webster, 2006). This will be helpful in achieving the aim of increasing the market share. This will be achieved by doing more advertising and making sure that money for the business is recorded and kept safely.

• To not get into a liability that is unlimited

In case the business fails, there will be a need to get into unlimited liability so that it will be able to pay the debts. This will be by using my possessions only. To make sure that this does not happen, finance will be needed to be checked regularly for the aim of getting maximum profits to be reached.

• To run the business in a cost effective way

By running the business in a cost effective way, waste will be prevented by making sure that any waste is recorded and also maintained at a level that is minimum by training the staff properly. This will be an effective way of making sure that profits will not be spend in replacing the wastes.

The type of ownership that will be suitable for the business is sole proprietorship. This form of ownership is the most suitable for the business is because less paperwork is needed for its formation (Cunningham et al., 2014). Also the authority to make decisions on behalf of the business will be on just one person. There will be full ownership of the business and also management. When the business will grow it will be easy to change its structure because the only requirement needed is just filling paper work. By being a sole proprietor, the owner will be getting all the profits and do not have to share it with anybody (Kinney, 2005). One hundred percent profit will be gotten by only the owner.

PESTLE analysis of Clean Environment Services

Political factors

This includes regulations from the government, laws and legal issues which the business will be operating under (Cadle, Paul & Turner, 2010). Some of the factors are:

• Laws for employment

When the business will be expanded in the future, employment laws may affect Clean Environment Services because employment laws will have to be considered like the minimum wage and the time that people are allowed to work. No person should be discriminated in the business.

• Environmental regulations

As Clean Environment Services will be using chemicals, there is a need of making sure that they are disposed properly. More money will be spent that the substances especially the ones which are harmful will be taken to the dumping sites. Money will also be spent on training some of the staff on how to get rid of the substances.

Economic factors

This deals with the purchasing power that can affect the business on how it will be spending money (Eva et al., 2014). Some of the factors include:

• Economic wealth

This is dependent on the customers especially on the amount of money available for spending. When the wages increase, more people will most likely hire cleaning services because of the availability of more money for spending. When the wages reduces, less people will be hiring cleaning services.

• VOT

This is the tax which is added when buying a given product. When VOT increases, Clean Environment Services stock will be affected because more money will be paid on the products needed. When it decreases, Clean Environment Services will have to spend less money on buying the products.

Social factors

This includes cultural and demographic aspects that affect the needs and wants of the customer (Cadle, Paul & Turner, 2010). Social factors can affect Clean Environment Services by:

• Emphasis on safety

At some instance s cleaning may be viewed as not being safe and make it hard for Clean Environment Services to get employees because of the use of chemicals. It is essential to protect all the staffs from potential dangers.

• Population growth rate

When the birth rate in London increases, there will be more people who may require cleaning services thus creating a good demand. However, when the population decreases, the demand for cleaning services will be less.

Technological factors

This is related to the available technology (Eva et al., 2014) and includes:

• The latest technology

Whether Clean Environment Services will be able to afford new technology or not, customers will mostly go for services that use better technology which can led to the loss of customers.

• The rate of change in technology

When there are changes in technology shows that there is need to spend more money in order to be up to date with the latest technology to ensure that competitors will not be able to offer better services that the business.

Legal factors

Legal factors will influence the company directly in its operations (Cadle, Paul & Turner, 2010). Some of the legal factors will be determinants of the final cost of the business and the demand for the services of the business.

• Consumer protection laws

There are different situations that consumers will go through and legislations for consumer protection protect them against those issues. The business will have to be familiar with the consumer protection laws. The business should ensure that the rights of the customers are put into consideration and also puts the right information in the market for the customers and potential customers.

• Antitrust laws

These are the laws that regulate the conduct of a business for fir competition to be promoted in order for the customers to benefit. This ensures that the competition is fair and consumers are protected.

Environmental factors

These are the things which can impact the business from an environmental standpoint (Eva et al., 2014). Some of the factors include:

• Waste management

The business will need to dispose of the waste in a proper manner. The business should partner with customers in order to make sure that the waste is disposed properly.

• Environmental effects of the services of the business

These are the impacts of the services that will be offered by the business to the customer and they should be positive effects.

TASK 3

Part A

It is essential for any business to lay a foundation which is proper before launching a business. Successful business people usually have a plan of knowing what they need to do. There are many benefits involved with careful planning and a disaster can result when a person fails to plan when it comes to a business (Skripak, 2016). Before launching a business it is important to gain the experience of the industry in a direct way (Hess & St, 2013). Having knowledge on the business is important because a person will have an idea of the best way that the business launch needs to be done.

The launch event for the business will be held in the offices of the business to cut on the costs which will be incurred when another place like a hall is hired for the launch. This will enable the targeted and potential customers to be able to understand the types of services that the business will be offering. The gathering will be of a number of people including home owners and people owning offices for different business purposes from London and its environs. This is because the business will be providing office and domestic cleaning services thus, all the people will be invited to the launch. A celebrity will be invited to grace the occasion. As a result this will attract more people to the launch and they will be able to know the type of services that the business will be offering. Only drinks will be served to the guest in order to cut on the spending considering that the business is new. It is a good idea for the launch to be held on a weekend because most of the people are always free thus an assurance that a good number will be able to attend. Government officials especially form the environment department need also to be invited for them to see the type of products that we will be using while providing the services.

Part B

Budget

Category

Projected price (£)

Equipment rental

24

Additional chairs and tables

30

Beverage

250

Performer

50

DJ

250

Advertising the launch

15

TASK 4

Marketing objective

There will be a need of investing for the reputation of the business to be established. There are a number of things that needs to be done in order to position the services of the business in the market. There will be a need of talking to the potential customers directly. This will help in generating new customers for the business (Stone & Desmond, 2007). This will be achieved by writing an advertisement to an individual and not a group. The next thing to do is to sell the benefits of the business and not the services. This will include having a clean home at a value that is great and without so much effort from the part of the clients. The advertisement will be stressed by the sentence, “Get the best cleaning services without even lifting finger.” Social media advertisements for the business will also be used since social media is a powerful tool. This will help in focusing on the potential clients and it is one of the cheapest ways of advertising. Online reviews is also one of the ways that can be used because there are some people who view the reviews before hiring the services of a company. The business will be able to get reviews which are great through asking loyal customers to give their reviews, thanking all the people that leave their reviews and give responses to reviews which are negative in a positive way.

Target markets

Our target market is on each industry including households and schools. The following are our target market, people and organization that the business can provide services to:

• Financial institutions an banks with offices in London
• Public and private school in London
• Hospitals in London
• Households in London and its Environs
• Airports in London
• Hotels in London
• Business centers and offices in London
• Industrial estates and factories in London

Marketing strategies

A marketing strategy is the overall game plan of a business to reach their customers and potential customers. A good marketing strategy should contain what is known about the business in order to attract more customers.

The main marketing strategy for business centers and offices will be socialization because this is at the center of marketing strategy (Stone & Desmond, 2007). In order for the business to thrive, I should reach out to people and give them reasons which re genuine for using our services. This requires a brand marketing that is effervescent and aggressive and be able to convert potential customers to customers in a short period of time. Inbound marketing will be the best to use because it will allow a connection with the potential customers and be able to stay in touch with them all the time. This will involve having a website, programs for newsletters and blogs where the main aim will be to change the general perception of the customers when it comes to cleaning services and be more informed on the benefits and advantages of hiring the services.

Marketing mix

Element

Description

Justification

Price

The business will follow a strategy for value pricing and price its services according to the results of the survey done in the market.

This will help the business in not putting the prices to high which will result to not getting customers or too low where the business will not be able to make profits (Pride & Ferrell, 2006).

Product

Considering that the business will offer a number of services, customers will be generated through marketing that will be viral.

The products offered need to be known by all the potential customers and this will be done through advertising the benefits of the services (Peter & Donnelly, 2005).

Place

The business will position its cleaning services in one of the offices in London.

This will be a strategic position especially for business centers or offices that will require cleaning services in London.

Promotion

Promotion of the services offered by the business will mostly be done by the use of social media

At this time and age most people use social media.

TASK 5

Operational Business decision

The business will develop a culture of trust where the employees will be allowed to make changes on how they provide their cleaning services to the customers (Nitchov, 2001). This is provided the decisions which they make will not affect the aim and objective of the business. The decisions which will be made should support the strategic direction of the company. Thus, all the employees of the company are delegated with the role of making decisions thus there is no need of waiting for instructions at higher levels but make their own judgments. This is a way of ensuring that tasks are completed in a more quick and efficient way which is beneficial to both the customers and the business.

Tactical business decision

Employees who will be consulted in case something arises while offering cleaning services will be known to all the employees. This will also include the channels of communication that will be used for the employees to give feedback from customers or their views on how the services will be improved. A set time for cleaning different building like residential homes and offices should be set in order to make sure that there will be no time wastage.

Strategic business decision

This decision is needed to address the changes and growth which will be long term for the business. This includes the expansion of the business where branches can be opened in different places in London. Another option will be reinvesting on the profits that will be gotten so that the business will be able to offer more services to the customers. This will also include rewarding the performance of employees thus ensuring that the customers will be getting the best.

TASK 6

Element of the supply chain

How is this going to be addressed in the business

Why is this the correct way to operate?

Inputs

The business requires an input of both labor and products for the customers to be satisfied with the services being offered. The business will require inputs from suppliers for their services to satisfy the customers.

This is the correct way to operate because through this the company will be able to satisfy the customers with thee services that they will be offering.

Logistics

This will help in moving the cleaning materials from the office to where the cleaning services needs to be offered.

This is important because the tools and machines needed for the cleaning services will reach the place where they are supposed to be used without being damaged.