Financial Plan for your organization
Organizational and Operational Plan 9
CLC Capstone: Five-Star Cleaning Services
Jessica Cisneros
Nicholas Gaudet
Cory Nicholson
Rebekah Reno
MGT-485
March 19, 2017
Organizational Plan
Management Structure
The management team at Five-Star Cleaning Company is made up of a CEO and a six member board of directors. Each member of the management team has a background in the areas of business, research, environmental science, and/or management, ensuring that every decision is made with the adequate knowledge to be of greatest advantage to the company. Aiding this group is a highly skilled research, development, and marketing team. This group is responsible for watching changes in trends, creating and monitoring innovations in cleaning processes and products, website and app development, and promoting the cleaning service. The next groups are human resources, accounting, and general management. These groups are responsible for hiring, paying, training, and managing our staff of elite housekeepers. The human resources department will ensure that employee morale is high, that employment laws are being enforced in each area, and that ethical practices are explained and implemented. The accounting department will ensure that all financial reports, bookkeeping, and payroll are being maintained with a standard of excellence and consistency. The general management department will oversee employee training and scheduling, as well as resolving customer service issues. The operations department wraps up our company, with a strong team of dispatchers and housekeepers. Our structural style here at Five-Star Cleaning is a functional structure to implement the differentiation strategy (Hitt, Ireland, & Hoskisson. 2015.). Below is a chart of that structure.
CEO & Board of Directors
Human Resources, Accounting, & General Management
Research, Development, & Marketing
Dispatchers & Housekeepers
McKinsey 7-S Assessment/Model
Five-Star Cleaning Company’s organizational design can be examined with the use of the McKinsey 7s model. In this respect, the company has made progress in its strategy, structure, systems, shared values, style, staff, and skills. The company has effectively aligned these key areas in a way that enables it to realize its objectives (Fleisher & Bensoussan, 2015). First, at its strategic level, the organization aims at dominating the national local market through penetration. In as much as it has already established itself, it seeks to distribute itself in both rural and urban concerns of the United States and in the online platform in order to enjoy dominance. The business aims at ensuring that its services dominate the industry and get the first priority from clients who prefer quality and convenience.
From a structural perspective, Five-Star aims at operating using a simple organizational structure. Since it mainly operates locally, the company is going to have a centralized system of decision making. In addition, its system is going to be formal, in which there is customer support and order processing. The company also understands the need to employ and maintain a team of highly talented and innovative workforce to improve performance (Fleisher & Bensoussan, 2015). This will form its skills design. When it comes to staff, the company is going to have few employees who will be trained and mentored to improve their productivity. The style of the company will be inclined towards democratic ideals in which there is open participation in the decision-making process. Finally, when it comes to shared values, Five-Star cleaning company will encourage teamwork, trust, and warm relations among employees to realize its objectives.
Business-Level Strategies
The main business-level strategy that is employed by Five-Star Cleaning Company is differentiation. This includes differentiation in the way that it provides services to clients. For instance, Five-Star seeks to offer outstanding service by tackling consumer concerns, issues, and enquiries. Moreover, the organization charges only for the time that is taken to clean and not other extra time that may be allocated to offer additional services. Finally, Five-Star Cleaning Company participates in matters of social responsibility by offering donations that are equal to 5 percent of the annual cleaning fee to charity organizations.
Operational Plan
Supply Chain
At Five-Star Cleaning Services, we utilize the integrated make-to-stock supply chain model. The integrated make-to-stock supply chain model focuses on tracking customer demand in real time, so that the production process can restock the finished goods inventory efficiently (Hugos. 2011.). We have maintained this supply chain model through the use of our fully integrated information system, which generates instant information that we use to develop and modify our production plans and schedules, and ultimately meet our business needs. Additionally, we place an emphasis on Supply Chain Management (SCM), management of all interconnected businesses that are part of providing services and product to the end user, which has allowed us to maintain a minimal but functional inventory, keeping our cash available on an as-needed basis (Hugos. 2011.). We bring value in this supply chain by planning ahead in the manufacturing process, meeting contractual obligations with our manufacturer, and delivering quality product and service on time and within budget to our customers. This has proven to increase our profitability margins both for our company and our manufacturer, giving us the ability to guarantee a timely, efficient, and unparalleled cleaning experience for our clients.
At Five-Star Cleaning Services, we work exclusively with Formula Corp, a US-based manufacturer who offers custom formulas and creation for private label all natural cleaning products. Formula Corp is located in Auburn Washington and was established in 1983. We have chosen Formula Corp for several reasons: (1) they have a proven track record of success and timeliness of orders, (2) they are known for their custom blended chemicals used in personal care, sanitary maintenance, and industrial cleaning markets, and (3) all production is done in the United States (All Natural Cleaning Products. n.d.). Because Formula Corp is a full-service manufacturer that formulates environmentally friendly products that meet the needs of our company’s specific market segment product requirements, we have been able to eliminate the middle man by selling our services directly to the consumer on our website. Additionally, we have developed a contingency plan in order to prepare for unexpected events such as the loss of data, people, customers, and suppliers, and other disruptive unknowns. Because we are aware that unexpected events can take place, we have identified a list of potential backup distributors also located within the US who specialize in the manufacturing and distribution of all-natural cleaning products. In addition, we maintain backup service and inventory records outside of our integrated information system in the event that our system crashes and important information becomes unavailable. This allows us to reduce and eliminate any delays in the service process.
Operational Effectiveness
Operational effectiveness within our business is something we have worked hard to develop for our employees and customers. We have made an app for our customers where they can easily view our calendar and schedule their own services at their convenience this have made it so someone is constantly on the phone to just schedule and can be free to do other business related activities. This reduces cancellations and inconvenience to the customers. We also have an application for our employees to track their schedules for them and product usage and of course notes and employee comments to management and vice versa. Finally, we track our inventory electronically. Employees scan the bottle they use during each cleaning and select empty when they have run out. This information goes directly to our inventory system that automatically orders product once a certain amount is used. This saves time and money in manual inventory counts and carrying too much product at one time.
Our app has given us the ability to monitor our customers concerns and schedules to ensure we are being aware of their needs and making changes accordingly. Also it has allowed us to keep minimal inventory thus creating a lot of profit and almost zero wasted product needed for cleaning, as well as helping to prevent waste and theft.
References
All Natural Cleaning Products. (n.d.). Retrieved March 14, 2017, from http://formulacorp.com/all-natural-cleaning-products/
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective
application of new and classic methods. New York: FT Press.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic management: Competitiveness and globalization: concepts (11th ed.). Stamford, CT: Cengage Learning.
Hugos, M. H. (2011). Essentials of supply chain management. Hoboken, NJ: J. Wiley & Sons.
