Ozhouse Clean Is Based In Melbourne and Offers Professional Report Writing - Management Assignment Help
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Ozhouse Clean is based in Melbourne and offers professional, residential cleaning services, including regular home cleans, as well as spring cleans. The company was established in 2005 and is a family business established and operated by James and Nancy Anderson. James and Nancy are the Directors of the company and finance any business expansion themselves. Their daughters, Amanda and Sarah, are also employed by the company and manage the business for their parents who are not involved operationally. Amanda is the Operations Manager and Sarah is the Administration Manager. You have been brought on as a business consultant to help the business reach its goals.
The company sees its point of difference from competitors as being a small family business, with a focus on quality and happy and contented staff and customers. The management team understands this point of difference may need to change as the business grows. There may need to be more management or administrative staff employed, for example, while Amanda manages marketing, she is not skilled in this area and is very busy with the operational side of the business, so a skilled marketing officer may be needed.
Currently target customers are consumers located in the greater Melbourne area. Target customers are people who want a professional, trustworthy and immaculate cleaning service. Pricing reflects that of competitors.
The company employs 15 cleaners, all of whom are part-time contract staff working between 10 and 15 hours a week. The company currently has approximately 70 regular clients, based around Melbourne inner city. These clients require regular home cleaning, either weekly or once every two weeks for 3 to 6 hours. A standard hourly rate of $40 is charged. Staff receive an hourly rate of $25 per hour. The cost of the products provided to staff for cleaning, including equipment and ongoing supplies such as cleaning products, works out to be approximately an additional $2 per hour on top of the rate paid to staff. The company is also considering whether it may be wiser to move to employing a number of full-time, permanent cleaning staff. This is partly because there is a high turnover of casual staff and little loyalty to the company. Staff costs for employing a full-time cleaner is $55,000 per year, including superannuation payments.
All ongoing cleaning supplies are currently purchased from Total Cleaning Supplies in Melbourne. However, as this company does not currently offer environmentally friendly products for use in cleaning, a different supplier needs to be identified. It is estimated that the purchase of these products will be an additional $10,000 per month. The products cost double the amount of the non-environmentally friendly products.
Sales revenue for the company for the financial year ending 2019 is $360,000 with a gross profit margin of $40,000. Labour costs are a significant part of the business, representing 70% of total costs. Average debtor days are currently 40 days.
Currently, marketing is via a website, but a large proportion of the company’s work comes through word of mouth from existing customers. Social media is not used currently to market the business. The new business plan will need to reflect different ways of marketing, especially to attract commercial customers.
The company understands that in this period of growth and expansion, it needs clear plans. While it has developed an operational priorities plan, the information in the plan is limited and is for the upcoming year only.
Complete the following activities:
Prepare to develop business plan
You are required to prepare for a meeting with the Senior Management Team to consult on the development of the Business Plan.
Prior to meeting with the Senior Management Team, review and evaluate the scenario information and the current operational priorities plan.
You should also review the Business Plan Template.
Based on your review and evaluation, identify the business’ vision, mission, values and objectives as these will need to be discussed in detail with the Senior Management Team as a basis for developing the business plan. Note that the management team has advised that the business vision, mission, values and objectives are not clearly advised in the operational plan and they would like you to develop these for discussion. They have also advised that they would like you to propose key performance indicators that can be used to measure performance against objectives identified. Make notes for discussion at the meeting.
Meet with Senior Management to discuss the business plan
At the meeting with Senior Management, you are required to assume that the management team will need to be provided with general information about business planning, as well as exploring the business vision, mission, values and objectives for input into the plan.
At the meeting you are required to:
Provide all information in user-friendly terms.
Explain the purpose of a business plan and its benefits.
Explain components that will need to be included in the business plan.
Outline your interpretation of the business’ vision, mission and values based on your evaluation of existing information and for discussion.
Discuss proposed performance objectives and key performance indicators to assess achievement of the objectives.
Listen to the feedback provided by the management team (your assessor).
During the meeting, you are required to demonstrate effective communication skills including:
Speaking clearly and concisely
Using non-verbal communication to assist with understanding
Asking questions to identify required information
Responding to questions as required
Using active listening techniques to confirm understanding
Develop business plan
Following the meeting, assume that you have been given approval to develop the business plan using the template provided. Your business plan must be written in clear and concise English and you will be assessed on this.
The actions that you include in the business plan should clearly show how the strategic objectives of the company will be achieved as discussed at the meeting and all of the resources that will be needed.
When conducting research and developing your business plan, use the following website: https://www.business.gov.au/ developed by the Australian Government Department of Industry, Innovation and Science as your technical advisor and make use of the chat function shown here. Choose an area of the business plan you feel you need some assistance with, for example, customer loyalty initiatives. Select the option “advice and information to help you and your business, including small businesses and independent contractors” when accessing the chat function so the advisor can direct you to the best information that suits your query.
Take a screenshot of your communication with the advisor and submit this to your assessor along with any email communication they may have sent through.
- Complete all of the following activities to develop a business plan including:
- Identifying and analysing trends in demand for cleaning services, nationally as well as in the local Melbourne market.
- Identifying competitors in the market for Ozhouse Clean. Include information about at least three competitors, providing a summary of their services, as well as explaining how their services compete with Ozhouse Clean and any points of difference that will enable Ozhouse Clean to stand out.
- Identifying and analysing target consumer needs for specific types of cleaning services e.g. environmentally friendly cleaning services. This may be through identifying secondary satisfaction of data or through a review of social media, for example. Make sure you add a customer satisfaction survey to your action plan as an immediate task that the Operations Manager will be responsible for. This is so you can complete an activity further on in this assessment.
- A SWOT analysis based on the scenario information and research.
- Identifying and evaluating alternative pricing strategies to current pricing strategies as per the scenario information.
- Identify potential marketing strategies for existing residential services, as well as commercial and environmentally friendly cleaning services. This may be through reviewing how competitors market their services, as well as identifying effective marketing strategies.
- Identifying any permits or licences that are required for commercial cleaning and environmentally friendly cleaning services.
- Identifying suppliers of environmentally friendly cleaning products that can provide Ozhouse Clean with products. Identify at least three options, including the supplier contact details and summary of products offered.
- Identifying key activities and required financial, physical and human resources requirements based on analysis conducted in the action plan.
- Identifying the additional staff that will be required to manage the expansion into contract cleaning and environmentally friendly cleaning services. Actions included in the business plan should show how this will be achieved in terms of identifying staff needed, the qualifications and experience they require, recruiting the required staff, and inducting staff.
- Identifying key performance indicators that can be used to assess both the financial and non-financial performance of the business.
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