Stinky Laundry Business Analysis Essay Example for Free

Stinky Laundry Business Analysis Essay Table of Contents Table of Contents2 1. Background4 The general nature of this business activity4 Benefits to society in terms of need satisfaction4 Why we chose this business venture5 2. Idea description6 The nature of our products and services6 Reasons why consumers will buy our products/services7 Our special services7 3. Idea feasibility8 4. Location11 7 important site selection factors11 Location of business12 How location factors apply to our business12 5. Enterprise Forms13 Type of enterprise13 Factors of selection of enterprise13 Legal name of business13 6. The Environment14 Internal environment14 Market Environment15 Macro environment of South Africa17 ? 1. Background The general nature of this business activity The cleaning of garments and other fabrics, that get dirty from everyday use, has always been a difficult task. Machines have reduced the labour but not much has changed in the three basic functions of laundering: cleaning, drying and finishing. The commercial laundry business offers laundry services to customers and is a very reliable and profitable investment. It requires minimum supervision and low operating costs. It has a typical return on investment of about 20-30% and classified as one of the safest investments with numerous benefits. It is a great part-time venture that requires a small amount of or no prior experience and can be located almost anywhere. It is highly profitable especially when located in minority communities and low-income neighbourhoods. It is also one of the most recession-proof investments. Many households use Laundromats on a daily basis with the key customer representing the fastest growing segment in the nation. Benefits to society in terms of need satisfaction The predominant benefit of the services offered by a Laundromat is convenience. People make use of this service because getting their clothes and other garments cleaned is a basic need satisfied by services on offer by Laundromats. People whom lack the time or money to do the washing at home prefer a quicker and easier way to getting it done. Students and other individuals staying in non-permanent residences like hostels or apartments mostly make use of this service. Other examples include organisations that make use of uniforms that is dirtied on a daily basis e. g. Mechanics and butchers. Another benefit is people who struggle to get their garments dry due to bad weather conditions (in winter) can dry-clean it at Laundromats. Lastly, it saves money that would otherwise have been spent on detergents and appliances. ? Why we chose this business venture We chose this business because there is always a need for Laundromats. It is cheap and easy to start and it is very sustainable because people need to use this service throughout the year regardless of the change of season. Innovative ideas can easily keep you ahead of your competitors like having specials. It is a very profitable venture and is very stable. Students would always want to make use of this service because it is quick and easy and removes the hassle of having to deal with your laundry. The laundry business is very stable, and unfailingly profitable. Families need clean towels and sheets regardless of other economic factors. People need clean clothing in summer and winter, on vacation or working, whether they are newborns, teenagers or retired ? 2. Idea description The nature of our products and services Our coin operated, self-service, washing and drying machines will serve as the base of services. Each load off washing ash will cost our clients R8 and for every load dried, we will charge R9. 50. Customers have the convenience of coming into our shops doing their laundry, enjoying the benefits of our other services. Our other services include: †¢Ironing or pressing of clothes. On request, our customers can get their clothes ironed or pressed by our attending staff at a fee of R10/kg. †¢Selling laundry products. We will be a retailer of washing powder, fabric softener and bleach to our clients if they wish to buy. †¢Selling laundry equipment. Our business will act as an intermediary between companies selling washing machines, tumble dryers, etc and clients wanting to buy laundry equipment. We will display a catalogue showing the equipment available and if bought through us we will make a commission on the sales. †¢Executive dry cleaning. We will offer extra care dry for clothing that are extra delicate or just needs a bit of extra care. Our executive dry cleaning will be at an extra cost to customers but we will call in our trained staff specialising in delicate clothing care to handle the items. This service will also come with a guarantee for immaculate attention to detail. †¢Pick up service. Our store will run a pick up and drop off service to UWC and CPUT Wednesdays and Saturdays. We will have one pick up and drop off point at each campus for students to get there laundry done with ease at an extra charge off 10%. †¢Arcade section. If our clients do bring their children along our arcade game section will keep their children busy while they wait for their laundry, create more convenience for our clients and creating wealth for our business through charging R1 per arcade game token. ? Reasons why consumers will buy our products/services Stinky laundry offers convenience to our customers our floor layout, products and extra services are for their convenience. In addition, a conventional home washing machine holds around a maximum weight of 120kg taking an hour to complete the load. At Stinky, our industrial sized washing and drying machines take four times the load and does it in half the time. Our innovative products and services will quickly gain an outstanding reputation for exceptional quality while our arcade friendly staff free reading material and free washing powder will do the rest. Our special services †¢Innovative ‘laundry package’ contracts. Our clients can buy washes, drying and ironing services before hand in bulk saving themselves money and time †¢Pick up service. Our pickup and delivery service to students will take a time consuming chore away from students at affordable prices ? 3. Idea feasibility Technical Where sustainability is concerned the equipment should be of good quality so that the business does not have to deal with unforeseen circumstances such as the equipment malfunctioning. The development of a business venture of this nature has is minimal. The materials the business will make use of include detergents and equipment such as washing machines and tumble-dryers. This is reasonably easy to get access to and if there is liaison with suppliers, you could possibly get these products at a cheaper rate than the competitors could. Labour would be cheap and easy to control as there is not much the employers have to do in a Laundromat business. Transportation can be easily provided to clients when they need their garments delivered i. e. clients with huge contracts who need their huge quantities of garments to be delivered. A technical feasibility study is an excellent tool for trouble-shooting and long-term planning. In some regards it Legal There are many legal implications that this specific type of business has to deal with. Some of the many different laws that would affect such a business venture are as follows: The labour relations act Consumer act (sales and service) These laws affect the business in such a manner that all your actions within the internal functions of the business have to comply by treating the employees and customers correctly. ? Financial This specific business venture is very sustainable as there will always be a need for it. If all the proper financial procedures are followed, there should be no future problems. The area where your business is situated plays a major ole on the financial credibility of your business. Long-term contracts would provide sustainable income and you would have a guaranteed return on investment Market There is a huge market for this type of business, as everyone needs to wash his or her clothes e. g. the hospitality industries, health industries. The specific industry described in the type of business is a service industry. A Laundromat provides a service to the public. After doing a thorough market analysis you can determine what target market is the most lucrative. The competition in such a business is very feisty as this a very successful business venture. Prices should be as cheap as possible but still maintaining a good profit. Organisational When it comes to the organisational part of this type of business, it is important to look at the management function. There should be someone overseeing the basic activities involved in the daily running of the business. This will be possible if all duties that are assigned to the employees involved in the different functions of the Laundromat. Making certain the form of the business model follows desired outcomes and functions. An effective governance structure should be in place and the right constituencies should be represented. All the people involved should be in the right people. ? Physical and environmental feasibility Site considerations, architecture, engineering, and community and neighbourhood planning have to be looked at thoroughly. There are not many challenges, but many opportunities regarding site and physical infrastructure considerations. There will be no impacts to the quality of water, air, and soil during the course of the running of the business. With regard to other ecological considerations, the business has to take into consideration factors that could harm the environment. Once this is done correctly, no future problems will arise. Competitive A Laundromat business has a very competitive market, as it is a common business and is reasonably easy to start. Competitors in this market will raise and drop prices easily and have many specials to prove to consumers that there Laundromat is the better of the two. ? 4. Location 7 important site selection factors †¢Accessibility of human resources. Where will employees come and how much will be paid in terms of the quantity and quality of the education they received. Owners can’t run the business alone employees need to be accessible to help with the daily running of the business †¢Distance of competitors and market share. How close companies delivering the same services or selling the same products. Of what degree of quality are the products or services of the surrounding competitors and will this influence the consumer market. If there is too much competition for the business and the market share of the business is too low business will never thrive †¢The frequency and price of transport. By what means will products, external services and employees reach the business, road, rail, air or water. How often do those services run to the business. Transport to the business is crucial, if customers, employees or external services, like repairs, cannot reach the business frequently business will not exist at all. Availability of buildings and the costs involved. Buildings need to fit a required size and must be appealing to customers as well as be placed in the right area for business. If the business is too far from resources needed to run the business cost of getting them will exceed what they need to be and if customers don’t get a good feel for their surroundings i. e. in the building, they will always feel uncomfortable doing business there. †¢Adequacy of electricity, water, and the costs thereof. Enough electricity and water must flow to the business. Utilities are needed in order to satisfy customers without business will come to an idle. †¢Building and health regulations and the behaviour of those enforcing them. What are the cost of renovating, what are the laws regulating building in an area, like building regulations and property rates, and what are the costs abiding to them. Costs of certain areas may be higher than others and that cost may be hard to catch up with in terms o gain on investment †¢The state of surrounding business. Will surrounding business aid in growth. For example is there repairs and health care near the business location. Location of business Bellville Mall, corner of Strand Road and Bill Bezuidenhout Avenue, Bellville How location factors apply to our business †¢Accessibility of human resources. Bellville is rich in human resources, there is a high demand for labour and the best suitable for the job can be hand picked †¢Distance of competitors and market share. There aren’t too many Laundromats in Bellville, the majority of the laundromats those in the surrounding areas are of low quality and the business that have the ability to compete with Stinky Laundry don’t have the proper infrastructure or proper don’t have better innovations to compare. The frequency and price of transport. There are a number of ways to get to Bellville, those are train bus taxi. All three services run frequently throughout the day, but the most efficient way to travel to the laundry would be by car as there is enough infrastructure and better for carrying the load. †¢Availability of buildings and the costs inv olved. Buildings in Bellville are sufficient in the cases of expansion or move. Costs of the buildings may run a little high for the quality of the buildings but with the big influx of people it won’t be a bad investment †¢Adequacy of electricity and water and the costs thereof. Being the busy place that it is electricity and water won’t be a problem because of the already available networks, the cost of electricity in SA is on the rising but its an expenses any business must deal with. †¢Building and health regulations and the behaviour of those enforcing them. Being a constantly developing area Bellville is regulated with a strong hand but the city is eager for new development so developments will not be a problem. †¢The state of surrounding business. Bellville has enough of everything in the area gaining nothing in Bellville will be a problem. 5. Enterprise Forms Type of enterprise Close Corporation Factors of selection of enterprise †¢With 1-10 members of the C. C. , start up capital will be easier to raise. †¢More than one member will provide a wider range of knowledge. Different members might have different areas of expertise. †¢Close corporations are relatively easy and inexpensive to start. Compared to other forms of ownerships C. C. are easy to start all they need is an opening statement and they are ready to start. †¢Members of the C. C have limited liability, meaning the members can only lose what they invested in the business not their personal belongings. †¢The C. C. as unlimited continuity. The ownership of the business can be transferred easily and if a member dies the business goes on Legal name of business Dirty Laundry C. C. ? 6. The Environment Internal environment Stinky laundry will be managed by its owners and will employ several workers to help with the daily running of the business. Open seven days a week from 7am t ill 7pm business. Some of the main aspects affecting our business are: Staff tasks. Staff will have the tasks of dry cleaning, ironing, maintenance, repairs, cleaning Equipment. The equipment of our business will be bought in bulk to save us money. The main sort of equipment required are washing machines, tumble dryers, irons, clothes pressers and washing baskets. Perishables. Our perishables, namely washing powder, fabric softener, etc, will be supplied by Surf on condition that we advertise and sell their products exclusively. Vision and mission statement Vision of Stinky Laundry: Stinky laundry wishes to become a profitable Laundromat, offering a reliable service to all customers and expanding the business by opening more Stinky Laundry branches across South Africa and revolutionise the way South Africans do laundry. Mission Statement: Stinky laundry is a local Laundromat that strives to achieve the status of the most recognised Laundromat in South Africa by offering cleaner, softer and a more affordable laundry service than any other Laundromat. Our ambition is to expand Stinky Laundromat and transform the business into a franchise that will be recognised all throughout South Africa. SWOT analysis of stinky laundry: Strengths- The cost of service of stinky laundry is cheaper than the average Laundromat, our staff is friendly and competent and we are situated in a fairly busy location in Bellville. Weaknesses- Technical difficulties arise occasionally regarding the washing machines, the repair costs tend to be costly and when a machine is out of order we are making less money. Stinky laundry is also under exposed. Opportunities- We can increase the exposure of Stinky laundry by means of advertising, take opportunity of all the lazy students who need their washing to be cleaned. Threats- Stinky laundries main threat would be other older Laundromats, because of their experience and loyal customers. Strategic objectives of Stinky laundry: †¢Create relationships with customers which will create more loyal customers †¢Make sure all customers are satisfied †¢Advertise at university residence Market Environment The target market for our particular service would be that of students, who have no time to do their own laundry. We try to keep our prices to a minimum so that it is affordable to the students, because they don’t have a particularly strong buying power due to the fact that majority of students don’t have income. Need satisfaction. We will satisfy consumer needs by providing a service to students and the general public who find doing laundry a waste of time. Being a retailer of cleaning products we satisfy needs of consumers specifically looking for laundry products Buying power and market share. Offering an all round service to the community we expect a larger market share because of the wide range of needs we satisfy. This intern brings us a large turnover and greater buying power to save on purchasing of new equipment. In order to maintain our low prices we have searched for the most cost effective suppliers, Stinky Laundry is also very much about quality, so it was difficult to locate a supplier that offered good quality washing powder at a low price. Suppliers. Our main supplier cleaning products would be Surf. We advertise their name and in return we save on the purchasing of their product. Since Stinky laundry offers a service we don’t really have intermediaries, because they is no need for a bridge between manufacturer and consumers. We will however need a bank, Bellville has a Absa branch in the area which we could deal with. Cleaning products could be bought from the nearby retailers in Bellville. Competitors are pulling out all the stops to compete with our business by trying to lower their prices and offering specials, but Stinky Laundry strives to be the best Laundromat, so that means we have to be a step ahead of our competitors, we do that by allot of advertising making sure that all residence in our area know who we are and are familiar with what the Stinky brand offers. Threats are rife in all of South Africa but Bellville is a busy place and police are aware of that. A security gate will be installed at the entrants to the building. The security gate can only be opened from the inside. ? Macro environment of South Africa South Africa, like many other countries, have lots of issues influencing the outcome of the growth of the country. Some of the main areas affecting us today are: Technological environment: †¢In South Africa we have experienced an rapid increase in technology and it is impacting business greatly. What these technological advances do is they help improve productivity of a business and can also even help improve the quality of your product/service. The negatives of technological advances are that if a competitor obtains more superior technology than you, you are then put at a disadvantage. If the buying power of your company is not big enough it is at risk. On the other hand technology aids businesses exponentially by decreasing production time and increasing profits †¢ The most important technological advances in South A frica would be water technology, Mineral technology, marine technology, agricultural technology, medical technology, transport technology and electrical technology. Economic environment: †¢Rates govern earning and profits made by individuals and businesses alike. Inflation rates of SA is now at 7. 5% which is good recovery after the world economic debacle. †¢ Unsteady growth of our economy is due to the high employment rate in SA. Inactive communities are only a burden on tax payers and do not contribute to economic growth but hinder it. †¢The exchange rate in SA is at an low to the dollar proving a good game for imports to our country. This saves us money and brightens our economy. ? Social environment: Demographics are even spread in employment. Previously disadvantaged are now being given a chance to prove themselves and women are showing that they are great assets to our country. †¢Distribution of wealth is still a huge factor in SA. The rich tend to make more money off their assets while those struggling get left behind †¢Values of South Africans are changing. They expect better for their lives and want better livin g conditions. This intern brings about new entrepreneurs wanting to better their lives and thus bringing new innovations to our country. Physical environment: †¢In some parts of South Africa we do see new infrastructure being built to help South Africans. Like the new buses and trains. The amount of South Africans using the new forms of transportation is rising. †¢The environments around us do need changing but more and more we do see businesses and individuals changing their life styles to help fight climate changes. Environmentalists often speak to us about trying to preserve the earth and people are starting to catch on.

Exploring Teacher Pay Incentives Essay examples -- education reform, t

This study analyzes four articles’ study findings as well as authors’ conclusion on the teachers’ incentive pay issue based on the studies presented by the authors. Those articles include Steele, Murname and Willnett (2009) that seek to analyze the effect of incentives on teachers’ retention. In the article, a natural experiment done in California between the year 2000 and 2003 involving an incentive of $20,000 that was called the Governor’s Teaching Fellowship (GTF) analyzes the incentives’ effect on talented teachers’ attraction and retention in low-performing schools. In addition, Fryer (2011) is the other article presenting an analysis of teacher’s incentives’ effect on students’ success in terms of attendance, academic performance or graduation. The article utilizes a school-based random trial involving more than 200 public schools in New York. Further, the analysis reviews an article by Figlio and Kenny (2006) which is a documentation of students’ performance’s relationship with teachers’ performance incentives. The study utilizes United States data combining the authors’ survey that was conducted in 2000 with National Education Longitudinal Survey on students and schools in regard to teachers’ pay incentives. Finally, Nael (2011) is an article on an analysis of education incentive schemes through a review of empirical studies that evaluates educators’ performance pay programs. Thus, the article will provide a suitable review on designs of student’s achievements measures and teachers’ performance metrics. Article 1: Relationship between teacher pay incentives and student’s performance Figlio & Kenny (2006) presents the first systematic documentation of the relationship that exists between students’ performance and the ... ...g jobs at the existing pay. In addition, incentives would retain the teachers as they would not be motivated to look for alternative jobs. (Barron & Lynch, 1987) Works cited Barron, J. & Lynch, G. Economics. London: Richard D. Irwin Inc, 1987. Print. Figlio, N. D. & Kenny, L. â€Å"Individual Teacher’s Incentive Programs and Student’s Performance†. NBER Working Paper 12627, October 2006. Print. Fryer, G.R. â€Å"Teachers Incentives and Students Achievement: Evidence from New York City’s Public Schools†. NBER Working Paper 16850, March 2011. Print. Neal, D. â€Å"The Design of Performance Pay In Education†. NBER Working Paper 16710, January 2011. Print. Steele, J., Murname, R. & Willnett, J. â€Å"Do Financial Incentives Help Low Performing Schools in Attracting and Keeping Talented Teachers? Evidence from California†. NBER Working paper 14780, March 2009. Print.

Product Analysis on Gillettes’s Razors

Gillette is leading worldwide home applicants, such as razor, battery, electronic and manual toothbrush, manufacturing company. On April 14, 1998, the company introduced the world†s first triple blades razor and begun to sell July 1, 1998 in the United States and September in the Western Europe. Since Gillette launched new razor in 1998, the company expected high returns in short-term; however, the result of the new product has been defined yet. The areas of the internal factors are Finance, Management, Manufacturing, Market position, Personnel, and Research & Development. All these factors can be defined as either strengths or weakness or both. First of all, the company as a whole gained net sales amount of 10. 1 billion dollars and net income of 1. 4 billion dollars for the 1997 due to acquire leading battery company â€Å"Duracel† in 1996 and grow of â€Å"Sensor Excel† razor. As a result, company could spend 1 billion dollars to invent â€Å"Mach 3† which is triple blades razor. Even though Gillette had sufficient fund to invent the new product, the company took high risk of financial side that if the new product†s sale does not reach to company†s expectation, the company will face shortage of capital resources and can be lead to bankruptcy. But if Mach3 turn out to be a New Coke or McDonald†s Arch Deluxe – much-hyped new products that were mostly duds and fizzle- the gloom will be heavy from Gillette†s corporate headquarters in Boston†s Back Bay to the South Boston factory that Gillette has overhauled to produce 600 million Mach3 blade cartridges per year, or about half of Gillette†s annual target of 1. billion Mach3 blades. (Boston Globe, 4/15/98) Since Gillette introduced â€Å"Mach3† in April, the company changed its manufacturing tools to produce Mach3 South Boston's factory. Gillette already spent 300 million dollars for advertising and promotion worldwide for the year that company introduced new product. The amount is twice as much as the company put for advertising â€Å"Sensor Excel† in 1989. Gillette released the new product to retail stores on July 1, 1998, and starts to advertise on TV and the other media six weeks later; however, many people went to the company's web site to look at the new product. Even though company spent tremendous amount of fund for the advertising, some people from Asia did not recognize the product according to our group's survey. For customers, there are satisfaction and complaints for Mach3. People, who satisfied with Mach3 according to our survey, said there are less irritation and faster shaving time. Customers who complaint about Mach3 argue that they do not want to spend more money on better outlook. According to our survey, one hundred percent of surveyees, who does not satisfy with Mach3, say the price is too high for the product. Price is relatively higher than other products including â€Å"Sensor Excel† which was the most expensive one before â€Å"Mach3†³ came out. Its price is 6. 99 dollars per razor with one blade included – currently, the company is selling for 7. 29 dollars per Mach3. It is 4 percents increased from original price, and 40 percents higher price than other products. This may lead to decrease in sales and the company†s total revenue. The company is trying to reach customers several different ways. Gillette offers Mach3 package product, which included Mach3 itself and couple of extra razors, Shaving cream and deodorant. This package product makes each items† unit price lower than sell separately. Also, the company offers sweepstakes on the company's web site, and there is no obligation. This is the one of the finest ways to reach and get involve the customers. The company give chance to people to win prize without any obligation; however, people will recognize the product automatically. Also, Gillette can acquire the Since Gillette is well-known global company, many retail stores are not offended to carry the company's product even though the product's price is high. Retail stores are assume that Mach3 will bring more customers. On the other hand, even more customers come to store, it is unpredictable for increasing store†s sales revenue because price is too high so that consumers would not buy. External factors are Competitive, Economic, and Social. Gillette†s major rival in the market is Shick. Since Gillette is the first company produce triple blades razor, the company will lead the market; however, rival company such as Shick will develop the same product with higher quality or lower price. Then the result will be unforeseen unless Gillette improve Mach3†³s weakness – â€Å"high price†. For long time in the United States, people†s income has been growing. As a result, customers purchasing power also increased. However, the company†s market is not only the United States but also overseas, in fact, over sixty percents of sales are made from overseas. Consequently, the company has to consider the facts that poor countries† consumers are willing to use cheaper product; especially the countries in economic crisis. There are 3 target groups in the market. The first group is disposal razor users that it's approximately more than half of the market. The advantages of this group are cleaner, cheaper and easy to use. On the other hand, it is less quality than other two razors. The second group is regular razor such as Mach3 about 40 percents. The last group is electronic shaver users which it takes remaining market share. The customers who use the electronic shaver satisfied with high technology, easy to use, saving time and safety compare to the other two products. The disadvantages of this product are high price and less cleanness when one shaves. The goal of Gillette is trying to acquire customers who use disposal and electronic shaver to Mach3. In order to persuade the customers to change to Mach3, the company should beat other product's weaknesses and add the improved the weakness of the other product to Mach3 and decreases of its weakness. Mach3 has several strengths; the first impression is fancy outlook that makes customers feel differentiated from other products. Second of all, men are challengers, always pursue new trend; especially on the tangible items with high technology. Although Mach3 has several strengths, it also has weaknesses. High price makes people think twice to purchase Mach3; the older generation of the Gillette razor is cheaper than Mach3, that makes people wonder if it is necessary to spend more money on the Mach3. The key purpose for Mach3 is to shave beard, but the older generation is also doing same job as Mach3; that makes no different between older and newer product. The next weakness is the advertisement. Gillette has spent 300 million dollars on the advertisement, but we did the survey with at least thirty people; 22 out of 30 surveyees know the brand from Television and magazine, but they have never uses it. This means the advertisement has preached the good news, but it has not reach people's life. The majority of men do not know why they should spend more money to buy same result. The marketing strategy did not fail the sale of the Mach3, it is price controller. The main point of the marketing is to opening a market for product. Since 73% of the men from the survey know the product, this mean the marketing strategy succeed its intention. The biggest mistake we found is the price. As I mentioned, â€Å"the majority of men do not know why they should spend more money to buy same result†. I would recommend to the company, to lower the price and match the same price as older generation. Let public buys Mach3 as the same price as older generation, allow public to try out differences between Mach3 and older generation. After when market demand of the Mach3 is higher than older generation, then increases its price.

Alternative Energy Can Effectively Replace Fossil Fuels

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