Deciphering the Market: An In-Depth Analysis

In writing the scenario that highlights the processes of executing a service-based operation in a company, I chose a fictitious company called Globsec Inc which has been offering security services for corporates in New York City. It now intends to commence a new service-based operation. The firm has built a reputable and trusted name in protecting assets and human lives. It has had a privilege of serving myriads of prestigious organizations, people. It has had numerous productive recommendations and referrals which propelled it to its current glory. To diversify the incomes for the company it chose to introduce corporate cleaning services to fill a potential gap in the corporate sector (Aaker and Damien 97).

            In summary, the written scenario outlines a framework that assists in the description of the future possibilities for the company’s planned cleaning services, highlights the plausible outcomes, and uncovers an innovative orientation of the planned future of the company. It is helpful in executing a change and will act as a blueprint for the implementation of the project. It aims at being simple and easily comprehensible for all employees in the company to read and understand the future, their roles, and several others aspects regarding the new service implementation. The scenario is apportioned into several parts, for instance, description of new service, the rationale for the new service, target market and multiple other groups (McDonald and Hugh 79).

Description of New Service

            Globsec’s newly planned corporate cleaning service is expected to be different from others already in the market especially after building a name in the security services sector. The company’s new service, corporate cleaning or commercial cleaning as it is referred to in some cases is delivery of cleaning service to client organizations, individuals, and even businesses. It is a contractual service whereby various entities contract it to do the cleaning. Globsec acknowledges every cleaning assignment as unique and expects a wide assortment of cleaning contracts, for instance, from high rise offices, to ground-based construction like stadiums or from dusty shopping centers to dust-sensitive installations like data centers (Kaplan and David 45). It expects a variety of customers, for example, restaurants, offices, factories; the list is long.

            The new service will meet customer needs in unique, beneficial, and diverse ways as opposed to the contemporary framework where companies employ their cleaning subordinate staffs directly. Contracting Globsec cleaning services will introduce swiftness and expertise in the cleaning sector since the firm plans to train and recruit competent staff members in the sector. As an outsourced firm, Globsec will have specialized in the field, have the equipment, and required technical expertise to handle various types of cleaning. Assignments will often be completed within time and with much-improved quality. The customer firms will have time to handle their core jobs more effectively other than troubled with cleaning services (Barich and Philip 99).

            Globsec expects outsourced cleaning services to be a risk-sharing venture as companies will assign to it the role of a specialist cleaner who will observe highest safety standards and install risk-mitigating factors in place to clean and protect their firms. The new service will relieve firms of the extensive Operational and Recruitment costs as outsourced cleaning helps avoid hiring in-house employees. It is even imperative in cases where customer firms have special events like ceremonies which regularly overwhelm the in-house cleaning personnel causing to have external cleaners.

The rationale for the New Service

            The rationale supporting the success of the new service emanates from the expansive potential in the market which is underserviced. While the market has competitive players who are likely to reduce Globsec’s market share in the arena, the firm (Globsec) will employ a remarkable approach in claiming a big share of the market. The success of the company emerges from the unique services delivered by the firm (Kaplan and David 47). Globsec will roll out restorative cleaning, tile and grout dying, custodial services, carpet cleaning, upholstery cleaning, hard floor care and undertake complex and unusual projects. Many competitors in the market offer mainly general cleaning and they are not well facilitated to handle complex services which give Globsec an edge over them. Globsec has the sufficient initial and running budget which is likely to propel the firm and new service running for a substantial time before it breaks even. The company is likely to make significant success especially based on the respect it has amassed while delivering security services and aims to use past clients as its first cleaning customers (Aaker and Damien 95).

Market analysis

            Globally, the cleaning services market is expected to click over $80 billion by 2022 and United States’ demand contract cleaning services is expected to be triggered by escalated business establishments, the increment of disposable personal income, and expansive construction spending in the country (Flynn, Roger, and Sadao 349). Cleaning Services will contribute to an increase in US revenues to 3.2% yearly to reach $55 billion by 2019. The commercial contract cleaning industry has grown massively within 10 past years and it is prospected to be growing at 6.6 percent annually. The industry is not recession-proof as is often hit by both reducing and increasing business times similar to other investments.

Needs of customers

            US commercial cleaning industry statistics indicate that on average cleaning firms lose virtually 55 percent of their customer base annually due to poor quality cleaning services and nonperformance related challenges (Wahlers and James 236). Customers need quality and satisfaction from the payment they render on services. Unfortunately, not all service providers deliver the expected results. The industry employs more than 1.7 million people in the United States currently which underscores its strong establishment (Shih and Yun-Hwa 586).

Profit potential

            The sector has good Profit potential especially considering it employs over 1.7 million people as an industry in the U.S. and the annual employee turnover rate of over 2% for the commercial franchise cleaning firms. The secret to accruing profits from the sector is on the deployment of best efficient technology, skilled and informed workforce (Stevenson, Mehran, and James, 156).

Missing niche

            Globsec plans to establish a niche in office cleaning which until now is not well serviced by the current existing companies and client satisfaction is low. The niche demand professionally conscious cleaning model which can be serviced in varying time regularity. For example, apportioning the services on systematic time models structure like daily, weekly, monthly, and many other categories. There are various types of cleaning, for example, spring or deep cleaning, Move-in or move-out cleaning basis, Carpet Cleaning and Steam cleaning services. Globsec’s carpet cleaning will include apposite treatment, scenting, and sanitation of the carpets. The company has purchased modern equipment and machines to facilitate the smooth and effortless cleaning process. The professionally trained workforce will be in place to present quality and satisfactory output (Flynn, Roger, and Sadao 339).

Target Market

            The target market for Globsec’s newly introduced service is the service industry companies with offices in the urban centers. They including businesses in the banking, insurance, security, medical and several other companies which need office cleaning in a professional manner. Cleaning of offices is characteristically different from factory based cleaning. In factory based cleaning work is more intensive and it is often profitable to have an in-house permanently employed workforce. The exposure to various unprecedented environments like extreme dust and chemicals may be a challenge for Globsec to handle. Factory cleaning also entails cleaning of plant machines which can be handled by an in-house recruited workers. Office cleaning services are rampant and create a business reason to invest in it (Shih and Yun-Hwa 582).

            The types of companies targeted are mainly those that operate blue collar jobs and are likely to employ contractual companies for cleaning errands. They include companies in the banking, insurance, and others. Globsec intends to deliver its services in the New York City market before spreading its wings to other states in the USA. Size of the market in New York City is comparatively large considering that the city is the most populous city in the country and has more than 6486 finalized high rise buildings rising more than 35 meters. The tall buildings house several offices and apartments which the company plans to deliver its services to. According to 2017 population estimation of the city, it was established to have 8,622,698 dwellers. The population is key as it directly resembles business potential (Kaplan and David 41).

Goals and Leadership Strategy

Specific goals

            The final goal and mission of the company are to become the largest office cleaning service provider for New York City within the shortest duration possible. It intends to astounding raise the workforce numbers but without negatively hampering the solvency and efficiency of the company. Crucial initial commencing resources have been set aside and can assist in triggering the quick growth of the service especially if the market responds well (Flynn, Roger, and Sadao 339).

Leadership strategy

            The company’s main leadership strategies for conquering the market is through the creation of a well-defined and communicated vision, promote staff recognition and remuneration, promote delegation of role, empowerment, commitment to continued education and enhancements of skills. Communication of the service’s vision will be crucial in providing a vivid and aspirational leadership framework that illustrates the picture of the organization’s future. The vision will be long-term, achievable, and measurable with respect to timelines. Encouragement of recognition for the employees will be vital enabling employees feel appreciated, valued, and present a sense of commitment. Employees do not only need good payment but also a feeling of respect and worth (Wahlers and James 236).

            The company expects to involve staff members closely and create strong steam with proper leadership and delegated roles, accountabilities, and roles. It will make the service easily manageable and controllable. Employee promotion will be awarded based on productivity and seniority in terms of who has more experience based on time with the company. It will be imperative to engage empowerment, regular training of work staffs, improved coaching, encouraging and appropriately reward them. Commitment to continued education process will enhance leadership which is considered a journey without a precise destination: it is continuous and endless. Education, skill refining, practical skill, and networking are eventual determinants of success for organizations (Stevenson, Mehran and James, 156).

Strategy and the corporate objectives alignment

            Globsec’s leadership strategy aligns very well with the corporate objectives of the corporate cleaning service. With the good leadership strategy provided, the company is likely to achieve its target of controlling the New York corporate cleaning market, having large and efficiently operational staff teams. It will have the best and new efficient assistive machines while undertaking the duties. Working for the company is expected to a joyous and jovial moment for the staff and profits are expected to flow in.

Description of Personnel Needs

Fig1: Globsec’s anticipated organization chart (Arnett and Vishag 341).

            Introduction of the corporate cleaning services in Globsec firm means an introduction of the full department which will deal with various needs including human resource issues. The expected personnel needs can be segmented into four bases from the top where the overall managing director sits, downwards to corporate cleaning department and various heads of sub-departments such as recruitment heads, training heads and labor relations sub-department as shown in figure Fig1. Issues regarding sales, advertisement, and other services will be handled within the marketing department in the same way security department issues are handled. The secretarial and legal department will offer credits and collection services, insurance and taxes and records services to both security and cleaning services departments (Wahlers and James 232).

            Recruitments for the cleaning jobs will be open to basic college certificate holders while heads of department roles will be awarded based on the earned promotional basis or degree holders in any managerial course. The corporate cleaning department will mainly have cleaners as the employees since other services will be offered by other departments like marketing departments, secretarial and legal department. The quantity or number of employees in the corporate cleaning will be increasing gradually as the company gets more business; however, it is expected to start with 56 cleaners. Newly recruited employees will be trained on how to perform their jobs. Having past skills and experience in cleaning service companies and background in first aid skills will increase chances of getting a job in the cleaning services (Arnett and Vishag 340).

The Implementation Strategy

            Implementation strategy of the new service will happen on multiple steps. In the preliminary stages, the company will acquire and set up various offices which will house corporate cleaning departments, including the sub-departments of recruitment, training, and labor relations (Barich and Philip 94). The company will also prepare appropriate facilities, computers, and other essential needs to accommodate the expected company growths. The company will recruit and train employees a month or two before the date of service rollout and ensure each one is aware of all their requirements. On the day of official roll out of the service product, the company will hold the ceremony in which journalists will be invited and to boost the entry of the service into the market. Advertisements and sales will be handled by the department of marketing. Adverts through television and social media will begin before the official launch and will proceed even after the launch (Stevenson, Mehran and James, 155).

Identification of new customers

            Customers will be qualified for the new services depending on their capacity to pay for the rendered services and especially those firms which have had a relationship with the company will be easily considered. Through various advertisements models like social media, radios, television and multiple others, the customer will be identified.

Key assumptions

The main beliefs and assumptions during the implementation process is that

a) The resources will be sufficient to run the service until the break-even period.

b) All business legal requirements will have been followed.

c) The services will break even within four years of operation.

d) The product will be received positively in the market.

Continuous Improvement and Quality Strategies

            The Scenario’s continuous improvement of the service will follow a Plan-Do-Check-Act (PDCA) steps. PDCA is repetitive, cycling process and continuous process of improving service product quality (Arnett and Vishag 332). It entails planning, recognizing and identifying potential opportunity for cleaning services product improvement. Product improvement needs can be discovered from the client’s feedback or recommendations thus triggering a plan to alter it. After planning, the subsequent step is to ‘Do’. Doing entails execution of the plan in a small-scale basis and testing for the respective change. After doing, the next step is to ‘check’ which entails reviewing the results and assessing them for success and possible adaptations. If the plan worked, the last stage is to ‘act’. This means executing the plan in large scale and if the results are not satisfying the process is repeated again (Wahlers and James 229).

            Quality maintenance strategies will run from the heads of department to eventual field staffs who do the cleaning. They will be trained in good customer services and proper handling of equipment. Quality will be the driving force behind every operation of the company over the long-term. After every cleaning service, there shall be forms to be filled by the clients regarding their rating of the quality of work rendered.

Marketing Plan

            The basic features of marketing will be undertaken by the department of marketing. In the modern setting, social media has assumed critical essence in the business world and it will be exploited to widen the customer reach. Use of the traditional advertisement avenues like radio, television, brochures, and other multiple other will be involved. Having an established security department which has had several reputable clients will be invested on to enhance customer base (Stevenson, Mehran and James, 152).

Marketing Plan assumptions

a) Marketing social of media will reach many potential clients cheaply and quickly. All one needs is data bundle and gadget, for instance, a smartphone

b) Multiple consumers choose to develop association and relationship with a brand to consume it repetitively

c) Pricing is key in successful service marketing

d) Quality services build customer loyalty.

Concept of Branding

            The company’s logo will undergo changes to present newness  and the introduction of a new product. The advertisement process will include nice melodious songs which leave people singing to the simple tunes of the service product’s slogan and will be running synchronously with the theme of the product. The branding will aim at establishing wide and differentiated palpable presence in the market that endears people to it. The company’s new cleaning service will be associated with high hygiene, efficiency, quality, and the return of customer investment which will trigger establishment pf loyal customers (Arnett and Vishag 329).

            The scenario establishes a lively and consumable brand Profile which resonates with many new potential customers as it delivers enhanced quality to the consumers. It assures the market of fulfilling returns for investments. For the first time consumers of the service, they will come multiple times and become loyal customers.

Conclusion

The scenario has addressed several stages of development of a new service-based operation (corporate cleaning service ) for a fictitious New York City-based company called Globsec Inc. the company had initially invested in offering security service but was starting a new service operation based on cleaning and was trying to find in cleaning several offices in the region. Owing to the new populous size and a lot of high-rise offices and apartments.

Some of the segments considered in the study include a new service description, the rationale for the new service, the target market, goals and leadership strategy, description of personnel needs and other several scenario research parts.

Works cited

Aaker, David A., and Damien McLoughlin. Strategic market management: global perspectives.   John Wiley & Sons, 2015.

Arnett, Dennis B., and Vishag Badrinarayanan. “Enhancing customer-needs–driven CRM   strategies: Core selling teams, knowledge management competence, and relationship     marketing competence.” Journal of Personal Selling & Sales Management 25.4 (2014):      329-343.

Barich, Howard, and Philip Kotler. ”A framework for marketing image management.” MIT Sloan       Management Review 32.2 (2016): 94.

Flynn, Barbara B., Roger G. Schroeder, and Sadao Sakakibara. ”A framework for quality             management research and an associated measurement instrument.” Journal of Operations    management 11.4 (2015): 339-366.

Kaplan, Robert S., and David P. Norton. ”The strategy-focused organization.” Strategy and      Leadership 29.3 (2013): 41-42.

McDonald, Malcolm, and Hugh Wilson. Marketing Plans: How to prepare them, how to profit           from them. John Wiley & Sons, 2016.

Shih, Hsi-An, and Yun-Hwa Chiang. ”Strategy alignment between HRM, KM, and corporate         development.” International Journal of Manpower 26.6 (2014): 582-603.

Stevenson, William J., Mehran Hojati, and James Cao. Operations management. Vol. 8. Boston:            McGraw-Hill/Irwin, 2016.

Wahlers, James L., and James F. Cox III. ”Competitive factors and performance measurement: applying the theory of constraints to meet customer needs.” International Journal of       Production Economics 37.2-3 (2014): 229-240.