Offer of Free 15-days service

Hello, I have a senior class and my professor gave me a company to make external and internal analysis. The company is Trash Butler. (Trash Butler is the revolutionary Doorstep Valet Trash & Recycling service for apartments and multi-family communities. We offer door to door waste and recycling pickup across all 50 states and are one of the largest trash hauling companies in the nation) This is the idea of the company.My prof asked me to do a recommendation, I recommended OFFER OF FREE 15-DAYS SERVICE from the company to the customer.So, here is the professor Feedback:RECOMMENDATION #3: PROMOTIONAL OFFER OF FREE 15-DAYS SERVICE This recommendation (only 3 pages long) does not meet a 4-page requirement. A 10-point deduction applies. How do you know this 15-day trial period program can turn the residents into real customers? There is no evidence. Strategic importance: there is no evidence suggesting this recommendation is strategically important. So I want to you to Fix the paper according to the feed back. Second to add and explain more to make the paper 5 pages. (you will write 2 pages only). I attached my recommendation.——————————————————————————————————————————————————————Second I want to make 2 slides of PowerPoint: Explaining and justifying your recommendations. you should take look for External and internal, I attached the files. to answer the justifying.-First page from is my recommendation (will present and explain my recommendation to people)-Second Explain HOW you developed this recommendation. Explain WHY you developed this recommendation.just to sumary my work, 1- write 2 pages/2- make 2 powerpoint slides of my recommendation. So I wan two files.
sap_internal_analysis___group_4__g__.docx

trash_butler_external_environment__1_.docx

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MGT 431 (G)
Fall 2017
1. The internal environment
1) The organizational context
Very good job!
Organizational structure: your group stated Trash Butler uses both functional structure
and geographic divisions. It’s hard for a small company to be both functional and
divisional.
2) Human resources
Major improvements are needed:
a) This section does not meet the writing requirement. There are many grammatical
errors and unclear sentences. The following are only three examples:
P13: “All through its venture, Trash Butler is well known to be very committed in
ensuring every other player in its field of business is well in the same play and focus
to which the economic hard times have had to be dealt with by the institution.”
P14: “Although the interviewing process considers the applicant’s technical skills, he
will be hired primarily based on their character.”
P14: “The collecting the application on a central point then follows this.”
b) Many descriptions are not data-based, but your group’s own ideas. For example, does
Trash Butler really receive “thousands of applications”? Evidence?
c) The last paragraph is not relevant to HR
Suggestion: rewrite the HR section.
3) Technology
Your group collected limited data.
a) Trash Butler has also used some other technologies.
b) It is necessary to discuss Trash Butler’s website in detail
4) Operations
It would be helpful if your group could discuss the operational process: steps used to
complete a job
MGT 431 (G)
Fall 2017
5) Marketing and customer services
Major improvements needed:
a) There are many broad descriptions (without data)
Example 1: most descriptions in the first paragraph of the Marketing section are not
helpful and should be removed.
Example 2: the first paragraph of the Customer Services section is not helpful and
should be removed. (your job is to identify how Trash Butler performs customer
services rather than explain customer service is important).
Suggestions: present data directly and then analyze the data.
b) Collect more marketing data. It would be helpful if your group could use the 4Ps
framework.
c) It would be helpful if your group could collect data on Trash Butler’s existing
customers. You would then compare its existing customers and the industry
customers your group identified in your External Analysis.
d) Try to collect customer satisfaction data
2. Assessment and strengths
Your group assessed four resources/capabilities based on the VRIO model and concluded
they are the Trash Butler’s strengths.
Areas for improvements:
1) Trash Butler has many other resources/capabilities. Why did your group select those four
resources/capabilities, not others, for assessment? Why are they more important or
relevant than other resources/capabilities?
This is a hard question. A good answer can lead to great recommendations. To make a
good argument, your group needs to do the following:
•
•
•
•
•
Collect all important data
Understand the nature of resources and capabilities: how they contribute to the firm
success
Summarize important resources/capabilities in all areas
Make comparisons
Use the goal of the project as an important criterion.
MGT 431 (G)
Fall 2017
Your group needs to collect more data in order to provide strong support for the strengths
and weaknesses.
2) Improve the VRIO analysis and use evidence to support your argument
a) Valuable
A valuable resource/capability can help the firm exploit opportunities and neutralize
threats. Your group can argue all the four resources/capabilities are necessary for the
business, but to argue they can help neutralize threats, your group needs to use
evidence.
For example, employees are important resources. Trash Butler’s employees may be
unique. However, its main competitors also have employees who may be motivated
and capable in the same degree or even better. If this is true, Trash Butler’s
employees may not help Trash Butler neutralize threats.
The valuable criterion is one of the hardest to establish.
b) Inimitable
There is no evidence suggesting “employees”, “customers” and “process knowledge”
are inimitable.
c) Organization (exploitable)
It is necessary to use the concept “Organization Structure” (including three
components, see Slides or the Text) to explain whether those resources/capabilities
could be exploited well.
Suggestions: reconsider three strengths: employees (too broad), customers (too broad),
and equipment. They are not helpful for strategy recommendations.
3. Weaknesses
Your group presented four weaknesses and made explanations. Areas for improvements:
Trash Butler is likely to have other weaknesses. Why are those four weaknesses more serious
than others?
It is not easy to answer this question, but a good answer can lead to great recommendations.
To answer the question, your group needs to do the following:
•
•
•
•
Collect all important data
Perform strong competitor analysis (your external analysis)
Identify weaknesses in different areas
Compare different weaknesses.
MGT 431 (G)
•
Fall 2017
Use the goal of the project as an important criterion.
Other comments: to make good recommendations, your group will need to reconsider or improve
most strengths and weaknesses.
Example 1: Equipment is not rare. Why is it a strength?
Example 2: why lack of equipment is a weakness?
Grading Criteria
1. Sufficient data (30%)
2. Thorough analysis (30%)
Explanation
Good job in Organizational Context.
Limited data in all other sections.
Major improvements needed (except for the section
Organizational Context)
Major improvements needed
3. Goal accomplishment (30%)
4. Professional writing (10%)
Score (Group)
• Justify: why are the strengths/weaknesses your group
identified most important or significant?
• Improve the VRIO analysis
• Reconsider/improve most strengths and weaknesses
Major improvements needed
82.5 (100-point scale)
Note: Some members have worked hard. I assign this grade to
reward the hard work, but you group needs to successfully
address the following two issues to finally receive this grade:
a) first, MGT 431 is a writing intensive class. The writing
problems will be fixed in your Final Paper; b) improve or
reconsider most strengths and weaknesses (because they can
hardly contribute to your Recommendations).
TRASH BUTLER
EXTERNAL ENVIRONMENT 2017
1
INTRODUCTION ____________________________________________________________________3
THE INDUSTRY ENVIRONMENT ______________________________________________4
Industry Context _______________________________________________________________4
Industry Growth and Growth Rate _________________________________________________4
Life Cycle _______________________________________________________________________________5
Industry Issues ________________________________________________________________________5
Competitor Analysis __________________________________________________________8
Valet Living _____________________________________________________________________________8
Waste Management ___________________________________________________________________9
Clean Harbors Inc. __________________________________________________________________ 10
Future Strategies ____________________________________________________________________ 10
Customer Analysis___________________________________________________________ 12
Management Companies ___________________________________________________________ 12
Greystar Real Estate Partners _____________________________________________________ 12
Lincoln Property Company ________________________________________________________ 13
Pinnacle Family Companies _______________________________________________________ 13
High Rise Properties ________________________________________________________________ 15
Mid-Rise and Multifamily Properties ____________________________________________ 15
Supplier Analysis ____________________________________________________________ 17
Contracted “Butlers” ________________________________________________________________ 17
Trash Bins ____________________________________________________________________________ 17
Bulk Trash Removal ________________________________________________________________ 18
MACRO ENVIRONMENT ANALYSIS _________________________________________ 19
Political Environment ______________________________________________________________ 19
Economic Environment ____________________________________________________________ 19
Demographic Factors _______________________________________________________________ 20
Sociocultural Factors _______________________________________________________________ 20
Technological Factors ______________________________________________________________ 21
Global Factors _______________________________________________________________________ 22
CONCULSIONS: OPPORTUNITIES AND THREATS _____________________ 28
References ___________________________________________________________________________ 30
2
Introduction
Organizations today find themselves in environments that are changing at a
faster rate than previously. Thus, formulating a strategy that is important for a
company to cope with competition and maintain a competitive edge. The industry
five forces have a direct effect on the policy made by an organization. The external
and internal analysis of an industry explains the performance of a firm to the
different signals available in the industry. How decisions are made in terms of
structuring is very important to a business. When an organization can act to place
themselves in a stable position, an industry presumes a significant impact on the
clients. By having to adapt through what we will be interpreting from our data
collection is going to update and bring us closer to a more efficient and profitable
future. There are several ways a business can thrive, however always at a cost. Trash
Butler LLC falls into the waste management industry whose code is NAICS 562.
Companies and businesses in this category are those that are involved in the
collection, treatment, and disposal of solid waste. This waste is often non-hazardous
material including household waste, construction, and demolition debris,
institutional or business waste, regulated medical waste, yard waste, scrap tires, and
other similarly non-harmful wastes (Stiehler 10). The waste management industry
also includes companies that deal with reusable material by running recycling
operations, and providing remediation services.
3
The Industry Environment
Industry Context
Industry Growth and Growth Rate
Revenue derived from the waste management industry has grown steadily
over the last five years into 2017 (United States Environmental Protection Agency
(EPA), 15). The industry has benefited from the upcoming industrial, commercial
business and construction activities. This expansion has led to greater waste
production, generating new demand for service providers. In addition, the growing
interest in waste recycling has created many opportunities in the industry allowing
the generation of more revenue.
According to the United Nations Environment Program, the global waste
management industry handles over 11 billion tons of waste and in turn generates
approximately $410 billion each year (Dahiya 9). This industry has developed more in
developed nations more than the developing nations mainly because the highincome countries have a high rate of consumption and therefore there is more waste
generated. For example, the United States waste management sector has an
estimated 27028 companies, single location or multiple-location, whose combined
revenue is approximately $90 billion (Mondol et al. 13). Of these companies, 56
percent are publicly held entities while 44 percent are privately owned. The industry
has employed 367,800 employees, where 71 percent, 271,200 employees, are
employed in the private sector.
4
In 2015, the value of the global waste management market was more than
USD 180 billion, but this growth is expected to reach USD300 billion by 2023, at an
annual growth rate of over 8.5% (United States Environmental Protection Agency
(EPA) 6).
Despite the growth reported, important changes are taking place, in part due
to external economic and social forces that affect the industry (Psomopoulos, Bourka
and Themelis 24). Examples of these external forces include legislative frameworks,
regulative frameworks, pollution prevention programs, source reduction initiatives
and the effects of economic constraints brought by increasing competition and
recession. Pollution prevention legislation and initiatives, along with population
increase in different parts of the world, including the United States, are expected to
ensure a continual increase in the production of waste and the demand for safe
handling, transportation, processing, storage and safe disposal of waste.
Life Cycle
The industry life cycle refers to the stages that an industry goes through in
the course of its life in the market. The lifecycle is broken down into stages, which
include the early stage, innovation, growth, maturity and decline phases. The waste
management industry is in the growth stage of the life cycle. In this stage, the
business has already made it past the start-up stage and is now established.
Customers and revenues begin to increase, and there are many issues and
opportunities to explore. Cash flow starts to improve, the profits are strong, and the
competition is equally stiff (United States Environmental Protection Agency (EPA)
24). This is clear in the case study seeing that Trash Butler was winning over its
5
competitors’ customers simply because of the trash collection time. In this stage,
small things that the business does such as according to the client the proper
treatment matter most and influence company revenues considerably
(Psomopoulos, Bourka and Themelis 22). The biggest challenge for entrepreneurs is
to divide the time between the demands that the business has and coming up with
ways to increase revenue while dealing with the competition and an expanding
workforce (Mondol 21). Businesses have to strategize to come up with the best way
to deal with the new situation such as through improvement of management and
accounting systems, or hiring new employees to deal with the customer inflow.
Primarily, innovation is the best strategy to help a business stay ahead of the
competition.
Industry Issues
Some of the issues in the industry today is the effect that environmental
interventions are having on the recycling industry. Most countries have eliminated
the production of plastic bags, and this is quickly shifting to the production of
plastics used in other areas. This has further reduced the attractiveness of the plastic
recycling industry (Stiehler 19). Waste management companies have now sold or
exited their recycling facilities, which leads to loss of jobs and a reduction in revenue.
It is not just the plastic recycling business that has gone down. Commodity prices for
recycled iron, copper, aluminum, and paper have also fallen over the years, affecting
the revenue got from selling the recycled metals (Dahiya 28). Despite the decline in
opportunities, the waste management industry is expected to continue thriving.
6
The waste management industry, however, faces strict government
regulations regarding solid waste management and the efficiency of its
implementation through recycling, reusing and reducing. The American
Environmental Protection Agency in the United States reports that of the millions of
tons of waste generated each year, only about 34 percent of it is recycled (Hopewell,
Dvorak and Kosior 8). However, increasing environmental concerns are likely to
increase the demand for this practice. In addition, increased government campaigns
and regulations on the need for recycling is likely to fuel growth in the waste
management industry
7
Competitor Analysis
The biggest competitor of the organization is Valet Living which is also
headquartered in Tampa Florida. The other biggest competitor of the organization is
Waste Management which was founded in the year 1968 and currently holds over
20 million customers combined in USA and Canada. Some of the other competitors
of the organization include Republic Services. The third biggest competitor of the
organization is Clean Harbors which was founded in the year 1980. In addition to this
there are more than 20000 waste management companies operational in the
country.
Valet Living
Founded in the year 1995 as Valet Trash the organization has recently
changed its name to Valet Living to reflect vast array of services provided by it. The
company is operational in more than 35 states of the country. The organization
currently employs more than 400 full time employees and reported a revenue of
close to $100million. The biggest strength of the organization includes the variety of
services provided by it. Starting from doorstep collection the organization provides
turns wherein the houses are made ready to use before the next residents arrive, vet
stations wherein time related to pet cleanup is reduced drastically etc. This adds to
the value of the organization as it can connect more directly to the consumers
(Gridwaste, 2014).
The biggest disadvantage is the size of the organization. In comparison to
organizations like Waste Management Valet is one tenth of its size in respect to the
number of employees. As a consequence the marketing efforts of the organization
8
are not as strong as those of the market leaders. The organization does not have a
specialized pick up line for medical waste and hazardous waste, hence a huge
segment is untouched by the concern.
Waste Management
According to Tablado (2014), this is the best waste management organization
in the USA and they simply do it well. The organization employs over 40000
employees and has more than 300 transfer stations and more than 300 landfill sites
at its disposal. The major efforts of the organization are focused around the concept
of sustainability (Gridwaste, 2014). The biggest strength of the organization is its
green practices which includes the landfill habitats and EFW efforts. The organization
controls one of the biggest trucking fleet in the entire industry. In addition to this the
organization has a specialized pick up line for medical waste and hazardous waste.
This differentiates the organization from the others in the industry. The organization
was also the first to have developed a waste management program and caters to
more than 20 million industrial consumers which include municipal, industrial
residential and commercial types.
One of the weaknesses includes several lawsuits pending against the
organization which has hurt the reputation and dampened the image of the
organization. The second weakness of the organization includes lack of marketing
and knowledge about new energy products and techniques of recycling.
9
Clean Harbors Inc.
Established in the year 1980 the organization has an array of services which
include industrial services, energy services and environmental services. The biggest
strength of the organization lies in the provision of high risk services and emergency
services (TABLADO, 2017). The concern is also a specialist in the provision of
chemical packing services which is one of the biggest strong holds of the
organization. The organization is one of the most profitable concerns in this industry
and considering the nature of services provided by it employs the most skilled
workforce. Another biggest advantage or upper hand enjoyed by the organization is
its existing sales and distribution network.
Often, the organization has reported a reduction in the reportable segments
which was also evident from the decrease in the net profits of 2016. The
organization had to reduce the number of employees off late which was as a direct
consequence of reduction in the crude …
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