Internal analysis

Set out initial assignments, develop a preliminary outline of your assessment and case history report, and prepare for initial contact with your company. Prior to visiting your firm, you should find out as much as you can about the assessment process and about your company. See the client’s web site. Look for newspaper articles in the Tribune and Times. Each individual on the team needs to read the case and complete 2-4 pages of write up about the following questions by the weekly meeting in Week 2.

Identification and evaluation of the organization’s purpose

What is the strategic direction in which the firm is heading? What are the firm’s mission and goals? Has a mission statement been written? If there is no mission and/or vision, state why they are important and write one for the client and include it as the first part of the Recommendations section.

The strategic direction that Trash Butler is heading in is to differentiate itself by providing its clients with personalized tailored service to each individual client. Their mission is to service their clients with the best quality butlers that they can find, and ensure that their trash is taken out every night. From what one has seen there is no visible mission statement, but they make their purpose known in the introduction to the case. It is important to have a mission or vision statement because it clarifies what they are doing, and the service that they provide in a specialized text form.

Identification and evaluation of the organization’s current strategy

What is its current strategy? Is its strategy consistent with its mission and stated objectives? In this section, you should identify which generic strategy the company is following. If the current strategy is not clear, describe why a clear, distinctive strategy is important and make sure your Recommendations support a clear, distinctive strategy.

Since Trash Butler have their services in tweeny-five different states around the country, they consider their services wild and diverse. The strategy that Trash Butler following is to provide a personalized service to collect trash under contracts. Customers can leave their trash at the door in a plastic trash that Trash Butler provide and it will be collected to the dumpster. That strategy will lead and focus on the consumer’s comfort. Trash Butler offers their services from 8-10 pm. Although, they can change the operational hours for consumer and schedule it if the consumer wants. The purpose that Trash Butler scheduling that operational time is to avoid distribute the community during nights, which gives a clear image that the company is targeting the consumer comfort and to have a healthy environment.

Trash Butler is not only dealing with consumers, but also dealing with complexes by signing contracts to do business. They have 65 contracts but their vision to double that number to achieve 130 contracts by the third quarter of 2017. Also, Trash Butler want to reduce the number of non-renewal contracts under their vision to maximize the profits and make more productivity. Therefore, they are targeting the revenue to double it in the year of 2017.

As a company which founded in 2014 at Tampa, Florida, Trash Butler has developed its service in twenty-five different states only by three years. Trash Butler provide their service as the VIP service of trash collect service area, collect customers’ trash door by door. Customers only need put their daily trashes into a plastic bag, put the bag into dumper, and leave the dumper in front of their home’s door. Trash Butler staff will collect those trashes. With this VIP mode service, so many clients have grown in a very short period of time, and it still growing. A low cost, high quality service is the goal and mission which Trash Butler has kept working on.

Because of Trash Butler’s business strategy, Trash Butler success winning the competition with their biggest competitor Valet Living. But, Valet Living as a trash collection service company which was founded in 1995, still taken the largest market share of the country. So, if Trash Butler wants to grow bigger, should make a better business strategy for the market competitive.

Milestone 2: Company research (official) The strategic direction that Trash Butler is heading in is to differentiate itself by providing its clients with personalized tailored service to each individual client. Their mission is to service their clients with the best quality butlers that they can find and ensure that their trash is taken out every night. From our research, there is no visible mission statement, but they make their purpose known in the introduction to the case. It is important to have a mission or vision statement because it clarifies what they are doing, and the service that they provide in a specialized text form which is available to the public. A good mission statement for Trash Butler could be, “To provide the utmost service in the retrieval and proper disposal of the garbage and recyclables in your community in order to sustain a healthy environment for everyone.” Since Trash Butler have their services in twenty-five different states around the country, they consider their clients vast and diverse. The strategy that Trash Butler is following is to provide a personalized service to collect trash under contracts. Correspondingly, the generic strategy that Trash Butler seems to be taking is differentiation. Customers can leave their trash at the door in a plastic trash that Trash Butler provide and it will be collected to the dumpster. That strategy will lead and focus on the consumer’s comfort. Trash Butler offers their services from 8-10 pm. Although, they can change the operational hours for the consumer and schedule it to their preference. The purpose for Trash Butler to schedule that operational time is to avoid disturbing the community during nights, which gives a clear image that the company is targeting the consumer comfort and to have a healthy environment for them. Also, a low cost, high quality service is the goal and mission which Trash Butler has kept working on. Trash Butler is not only dealing with consumers, but also dealing with apartment complexes by signing contracts to do business. They have 65 contracts but their vision is to double that number to achieve 130 contracts by the third quarter of 2017. Also, Trash Butler want to reduce the number of non-renewal contracts under their vision to maximize the profits and make more productivity. Therefore, they are targeting the revenue to double it in the year of 2017.

Team Questions for Trash Butler Reps:

1.) What is the main reason for this meeting?

2.) What is your mission statement and your vision?

3.) What is the #1 priority for your business this year?

4.) What is your plan to achieve that priority?

5.) Are you satisfied with the plan or do you believe that there needs to be some improvement?

6.) Is there anything that you as a company are doing which might be inhibiting that plan?

7.) Are there any alternatives that you have looked at?

8.) What is unique about your business compared to your competitors?

9.) What is your main weakness and your main strength?

10.) What is currently your major threat? How do you combat that threat? Do you see another threat in the foreseeable future?

11.) Have you ever thought of changing your logo ?

12.) How many complexes/contracts do you have so far ?

13.) What kind of advertising (media/social media) are you using?

14.) Are you planning as a company to enter the global market outside the U.S? If yes, what challenges do you think your company will face? And how you can solve them?

15.) Does each region or neighborhood have a different price depending on the area? What aspects can change the prices ?

16.) How is your recycling process?

17.) What’s the standard of hiring staff?

18) Are there any feasible ways to reduce costs?

19) Have you thought about going public? If yes, how would it be achieved?

Trash Butler is one of the well reputed companies in the Multi-Family Housing Industry. The services which the company is providing to the customers are based on selling these services to the owners of the multi-family housing complexes and the apartment buildings. The main services of the company include providing door to door collection of Trash and for this purpose the company has hired different employees. There are different factors which are affecting the opportunities of development and expansion of the business of Trash Butler, LLC. Multifamily buildings industry have created large market for the company. The main targets of the company are the owner occupied buildings like homes and the typical apartment complexes which are referring to as the renter occupied (Trashbutler, 2017).

Trash Butler is providing services to different states of USA so it is very important to note that the certain environmental factors would have an impact on the performance of the company. On the basis of the population, USA is on the third numbers. The economic environment of the country faced recession after the 9/11 attacks. After the recession in the economy during the period 2008 and 2009, attractive steps were taken by the government of USA and this was the reason that the development in the economy of the country occurred which eventually resulted into the decrease of the unemployment in the country, consumer expenditure and it increased the business investment in the country (Collegezoom, 2017).

There is effective rule of law and democratic setup have been established by the government of the USA because of the conduction of the transparent and fair election. One of the important things regarding the country is that it has greater economic & political influence both at the local and international level. In view of Trash Butler performance, the performance of the industry in which the company is operating is growing on moderate basis. In the first half period of the year 2017 the government of the USA was focusing on the development of the laws and regulations. The changes in the laws and regulations of the government directly impact the business and the strategies and the policies of the company. The changes in the regulations such as the affordable care act have been developed by the U.S. government and the change also have been made by the government of UK in view of the Overtime regulation is this type of the changes in the regulations affect the performance of the company. One of the most important thing is that the changes in the regulations for example the changes created by the government in regards of the tax collection are considered as having both the benefits and problems for the companies. Moreover, the deregulation in the country may negatively affect the business because I may let to have more competition in the market therefore, it could be a threat to the company.

Economy is one of the most important factors which play very important role in view of the success of the company. Economic factors have both the positive and negative impact on the performance of the company. For example; increase in inflation; cost of labor, increase in interest rate, taxes and change in government policies may affect the performance of the company. The economy of the USA nowadays is very stable so this is the reason that there are different opportunities are available for Trash Butler to expand the business and to increase the market share of the company therefore it can be considered as opportunity. The GDP of USA is considered as over $16.760 trillion and well developed economic system of the country is creating wider range of the opportunities for the services providing companies. According to the report presented in the mid of the year 2017 after taking the seat of president by the Donald Trump there is noted as sharp fall in the Asian stock market and this is the reason that the decrease in the value of the Dollar occurred so this is the reason that the changes or downfall in the stock market has an direct impact on the success and the market share of the companies around the world. Due to the Trump economic policy the Dollar had been weakening on uncertainty basis which is eventually increasing the trade war in the world which eventually become the reason of loss of opportunities for the Trash Butler but also for the other companies around the world (Theguardian, 2017). The stock market instability can be considered as threat to the company.

Technological changes are other important factors which create positive and negative impact on the business. As the Trash Butler is providing the waste cleaning service to the customers and the people in the USA so it is very important the company to focus on the development of the technology because people always expect that the companies will follow the improvement and the development in the technology. Company also could reduce the cost of the provision of the service with the use of the technological developed tools so this is the reason that technology is considered as one of the most important macro environmental factors. Therefore, technology can be considered as opportunity for the company.

Increase on or aging population is one of the most important factors which are creating problems for the government of the USA. This is one of the social factors due to which the governmental bodies are facing threat that it will increase the tax rates and the serious labor shortage in the future. Rising racial intolerance is considered as one of the most serious concern in view of the people social needs and this concern is rising because of the liberal mindset of the people of USA. Demographic changes can also be a threat to the company. Social factors also have considered as little level of the impact on the availability of the opportunity for the company because of the nature of the business of the Trash Butler. Trash Butler deal with the complexes, which means it is currently doing business in business to business field.

Environmental factors are considered as very important for the Trash Butler because of the needs and the consciousness of the people of the USA regarding the protection of the environment. There are certain environmental laws which the governments of the country have developed which must need to be follow by the management of company (Reportlinker, 2017).

Industry Analysis

For the trash collection industry, based on the research of traditional mode of trash collection on Waste Management by OECD in 2013, traditional trash collection industry has a high entry barrier. Labors, equipment, management, and trucks are the main costs of the traditional trash collection industry. However, consider about Trash Butler’s new trash collection business mode, the barriers to entry in this industry is low and are steady. Trash Butler provide a labor-intensive management mode, and everything will happen is based on communication. The management activities were supported by technology. The trash collectors are working in the same neighborhood for 2 hours every day, so the company also can save a lot in the salary expense.

The industry also has a low-level barrier of regulation. The industry is controlled by various governments (which include local city government, county government, and state government) and management, so the company only need to meet conditions of those properties’ requirement.

The power of buyers is based on the property management, is not on any specific consumer. Property management would consider about service that Trash Butler can provide, include price, quality, and the breadth. And then, the property management might compare the offer which provide from Trash Butler and other trash collection company. Because of this, the consumers have a higher bargaining power. The property managements are always looking for a low price and high quantity offer. Then, the management might meet several companies which provide same service as Trash Butler, and using those each company’s offering price to bargain with each other companies. Such a smart way to keep a low cost and high quantity service from property management side. So, the property management has the biggest power of give the contract to Trash Butler or not.

Talking about competitors, Valet Living is the biggest competitor of Trash Butler. Valet Living was founded in 1995, and it also headquartered in Tampa. As company which has 22 years’ history, Valet Living already has its own business working system. As an example, Westly Shores Apartment is the client of Valet Living. The collectors collect trash bag around 7pm from Sunday to Thursday. Residents only need living their trash bags outside their apartments before 7. Then, the collectors will collect trash bags. And in the hand, Valet Living also provide personal service for independent house residents. The residents can order their own service from Valet Living with some extra payment. For example, a Hillsborough County local resident who lives in a house at north Tampa, generally the Waste Management would take care his trash, but he need some extra service of dumping trashes, so he can contact Valet Living, and order the personal trash pick-up service from there. Compare with Valet Living, Trash Butler’s service seems don't have any new ideas, because Trash Butler only provide service to the property management. So, why property management don't chose a company which has 22 years’ history and full of experience to cooperate? Trash Butler wants to win the competitive, the company should create some new service with high quality and low price. If not, potential customers will find substitute to replace the service from Trash Butler. And in this industry, Valet Living is not the only competitor of Trash Butler, some other trash collection companies like Junk King, Junk Shot Junk Removal, XS Trash also are developing. So, how to reduce the cost is a very important thing for Trash Butler, and Trash Butler’s suppliers would be the most important circle in its business chain. Trash collection market is so competitive, trash collection business suppliers are limited. Construction Machinery Manufacturing Remediation & Environmental Cleanup Services and Waste Collection Services are the main suppliers of Trash Butler. With limited number of suppliers, Trash Butler is involving a supplier market. Suppliers have more power on bargaining power, because Trash Butler have no other choice if Trash Butler don't use those suppliers’ service.

Competition in the industry is medium so it's not too hard for one to enter the industry and succeed but it's also not a walk in the park. The main ways that companies compete against each other is by price, location, and quality of service. Companies offer different prices depending on a couple of things. First is the type of waste, as in if it’s either trash or recycle. Second, the geographical location of both the complexes and the dumpsters. Third, the number of residents in the complex. And finally, is if the residents would like additional services from the company.

Many companies try to have one special feature or service that can differentiate them from the competition to try and attract new customers. For example, a company may offer site services, which includes cleaning, vacuum services, and site decontamination. These options might be important to certain customers, which will help land them. However, if you don't have any special features or services to offer but do a good job of the primary services and can offer them cheaper than the competition then you can attract new customers relatively easy.

There are a couple of developments [RL1] that are having an influence on the industry such as growth in consumer spending, increase in recycling, hazardous waste segments like medical waste, and the recent waste to energy projects. First, estimates predict that economic growth will increase consumer and business consumption. Since people and corporations will have more money, then that equates to more spending. Second, as recycling’s popularity has grown in the last couple years, there is naturally less waste to be picked up. This might be a negative for companies that focus solely on waste retrieval. But if one of those companies, like Trash Butler, has a recycling department then that’s still good business for them. Third, since there are still waste that can’t be recycled, like medical waste, and the volume of such waste is growing, then that can only be good news for business. And finally, there has been an increase in both state and federal waste regulation that will contribute to higher costs for companies who own and operate landfills. However, if those companies invest in waste to energy projects then they will benefit from tax incentives for renewable energy investment.

All of these developments may also influence key success factors for this industry such as business expertise of operators which includes the quality of service, proximity to key clients [RL2] so it's easier to facilitate them, and having contact with profitable clients which means they should be in business for a while which is a good thing for both parties. Additional factors included are the ability to compete on tender, access to latest technology and technique, able to comply with government regulations and having an extensive distribution/collection network. (IBISWorld, 2017)

The forces that are emerging and look likely to have a permanent change in the industry is the rising residential rental costs and rising demand for commercial space. Since valet trash service companies’ primary customers are residential complexes and the cost of living in them is rising then many people might consider moving into a home thus negating the need for such service. And this trend is looking like it will stay like this for a while. However, since there is rising demand for commercial space then a good way to offset the loss of the rental customers would be to focus on office buildings and seeing if they would to purchase the valet trash service.

Any company that offers any type of trash service is considered a threat by Trash Butler, especially in Florida. There are too many companies offering kind of the same service that Trash Butler offers. Junk King, Junk Shot Junk Removal and XS Trash Florida are popular companies in Florida. One of the most successful companies in this industry in 2017 is Valet Living.

The major services provided by Valet Living are door-to-door trash collection, opportunity knocking, and data collection. This is in direct competition with Trash butler. Not at all like a pool, exercise center or business focus, Valet Living Doorstep is the one courtesy all inhabitants can utilize. Disposing of the requirement for occupants to transport their loss to the group's dumpster or compactor implies they can invest more energy with companions, family and making the most of their homes. Benefit expands your group's lifetime esteem by including another income stream and limiting the requirement for group upkeep.

They likewise offer a year stage in, giving your group an additional positive detail with no start-up speculation. The pricing strategy of Valet Living is based on the complex or household. So, they look at the customer, and then they decide what would be the best pricing strategy for that customer based on their income. This makes them attractive to people who need their services[RL1] . Moreover, I think they changed the company’s name from Valet waste to Valet Living due to the new services the company offers. Valet living now offers new services; the company calls it new standards, which they are turns services, maintenance support and pet solutions.

Junk king was found in 2005 in San Carlos CA. Two friends came up with a simple idea due to the garage they owned. So they offered a good customer service and recycling. According to Junk King website, “Today, Junk King is the #1 Rated Junk Removal Service in North America, with over 90 locally owned franchises in 29 states and Canada”. Junk King has a strategy they still follow since 2005 until now which is according to Junk King website “ we are offering fair, up-front pricing, call you 15 - 30 minutes ahead of every job”. Shot Junk Removal is not alone a Junk removal, but also provides a moving furniture service. Shot Junk Removal was founded in 2008. The business started with a borrowed pickup truck then in 2010 they became Accelerated Waste Solutions. In 2012 Shot Junk Removal created an App for their company and the company named it “Shot Junk”. According to Shot Junk Removal website, ““Shot Junk”the U.S.A.’s 1st & Only Junk/Bulk Removal App & Fleet”. Furthermore, anyone can download the app and after downloading the app, take a pic of the waste and send it to the company. Also the company has to many tuck sizes. Lastly, Xs Trash Florida provides 9 different services in Florida, The company has Junk removal, Hoarding Junk Removal, Wrecking Junk Hauling, Appliance Removal and Disposal, Furniture Removal and Disposal, Property Clean Out, Flood Damage Cleanup & Hauling, Warehouse Cleanout & Hauling Construction, and Remodeling Debris Removal.

In my opinion, Trash Butler has some first move advantage such as 24/7 call hour’s service. Moreover, The company became the largest junk removal and moving company in the nation. The competitors are very big and each company has an unique strategy and services. However, There are few companies in trash business which makes it easy for every company to compete against each other.

References