Crafting and Executing Strategy

[Date of Submission]

Crafting and Executing Strategy

1.

The objective of this paper is to examine the business strategy of Buff & Stuff Commercial Janitorial Service and its likelihood to survive in a weak economy. The concerned authorities of Buff & Stuff Commercial Janitorial Service obtained their first contract in the year 2011, and since that time, their earnings have grown from $120to $142 within two years of their service. The industries dealing in commercial cleaning are extremely fragmented, and in the present time, none of these cleaning companies owns more than six percent of any particular market. It has been observed that franchise cleaning companies make up only ten percent of the total market operating in this sector, whereas, on the other hand, ninety percent of this market is comprised of other conventional and private companies.

Despite the fact that there is a massive demand for the establishment of efficient and dependable cleaning services, those cleaning companies which are traditional and conventional in their approach tend to experience the largest rate of turnover. As a result of this heightened turnover, they lose up to fifty five percent of their cleaning contracts each year, on account of non-performance and the poor quality of services provided. On the whole, this high rate of turnover provides the franchise segment of the cleaning industry with a remarkable opportunity to strive for growth.

Master franchise cleaning companies, on the contrary, have a vested interest in their business, and they make every potential effort to maintain an enthusiastic unit franchise, to strive for the pride of ownership while providing services which are of a very good quality. The quality services provided by these companies become evident in the form of reduced rate of turnover, which is approximated to be less than twelve percent.

Moreover, as a consequence of corporate downsizing, the concept of master franchise tends to become more attractive, particularly to the educated professionals who have potential of combining their corporate business experience with a strong aspiration to own their personal business. This results in a highly qualified and an extremely motivated business owner, who is capable of consistently out-producing other janitorial cleaning companies who are more traditional in their approach.

For the Buff & Stuff Commercial Janitorial Service, the most dominant target market includes the regular stream of local companies, which operate in the same sector. Therefore, to successfully maintain its hold within this competitive market, the company must assure the deliverance of quality customer service at a competitive price. These factors combined, would ultimately help this company to maintain a high level of share within this target market, which is expanding at a high pace (Networx Cleaning Service, 2010).

As long as the Metropolitan region surrounding the company has office complexes, industrial facilities, commercial buildings, banks, malls, retail shopping centers, and other health care centers, the need for efficient cleaning professionals would remain high, in spite of the rapidly changing economic conditions. In other words, the availability of commercial cleaning opportunities for such ...