Cleaning plan,University of Southampton


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ที่เขียนให้กับนักศึกษาไทยที่เรียนที่ หาวิทยาลัยเซาแธมตัน (the University of Southampton)

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Cleaning plan,University of Southampton

  1. 1. Cleaning Business Address 1 Address2 City/town Post code Phone Fax Mobile E-mail Web siteTo insert your business logo, click an insertion point using your mouse to the rightof the word ‘logo’ above, then go to the menu at the top of this window (File, Edit, View, Insert, etc), click on Insert/Picture/From file/(and select your logo).
  2. 2. 1. Summary The Cleaning Business Company is a home-based company located nearby theUniversity of Southampton. The company belongs to XXX who wants to offer gooddomestic cleaning services to students of the university whose budgets are limited.The owner of the company will be responsible for the stocks and inventories of theequipments such as the vacuum cleaners, cleaning chemicals and rags.The company is a sole-ownership private company because it is owned and run byXXX. The company expects to hire 20-30 part-time staffs, who are expected togenerate 1,000 pounds a day (in total).
  3. 3. 2. Business overviewThe Cleaning Business Company aims at providing domestic cleaning services tostudents of the University of Southampton. The company hires students andunemployed people to work for the company as part-time staffs. Like other cleaningfirm, the company will charge the customers the hourly wages for staffs and theagency fee from customers. In addition, the company will run an e-business so as tosave costs (from office, inventories, and so on).The company will emphasise on giving cheap services to customers because itstargeted customers are students whose budgets are limited. This is the point that thecompany concentrates on so as to differentiate itself from its competitors.The growth of the sales of the company is estimated to be 10% each year because,after the first year, the company expects to retain the existing customers (old students)and attract new ones (new students).IntroductionThe University of Southampton has over 22,000 students 1,400 of which are from EUcountries and more than 3,400 of which are international students from more than 130different countries other than the EU ones( To supportthese foreign students, the university has to provide them abundant residences(rooms).This will be a great opportunity for the company because many students want theirrooms to be clean but they do not have time to clean their rooms. Thus, the companywill offer the cleaning service for these students whom the company regards as theprimary customers.The company emphasises on the cleaning for all kinds of residences such as apartmentrooms, condominium rooms and houses. The company will hire students and theunemployed working age people in Southampton, the number of which is 4,902 or2.9% of the total number of working age population of Southampton(, 2002), who would like to havepart-time jobs during their free time.The company will emphasise on the interior cleaning of the rooms of the students ofthe University of Southampton. In addition, the company will provide the cleaningservice to households and residences that are located in the area not farther than 3miles away from the university.Business ObjectivesThe Cleaning Business Company has its main business objectives as follow: • To offer to customers good services in a cheap price; • To generate the 10% increase of sales each year through the domestic cleaning services affordable to all classes of customers; and • To settle a cleaning business that can live with its cash flow without any loan.
  4. 4. Current positionDoing the research, the company found that there are many cleaning service providersin Southampton, such as Ceep Clean Cleaning (,Custom Cleaner (, Merry Maids( and many others, all of which have professionalcleaning staffs and provide a wide range of services such as domestic cleaning,regular cleaning, one-off cleaning, hazardous cleaning, window cleaning and so on( other factor that is very important is the price. The company emphasises onproviding one-off cleaning services; thus, just the price rate of the similar service willbe researched. The research results show that most competitors charge their customersabout 7-7.5 pounds per hour per staff plus additional 20-30 pounds as the agency fee(;, the major difference between the company and other competitors is that thecompany is an amateur cleaning service provider aiming at giving one-off domesticcleaning service to students in Southampton whilst other competitors provide variousprofessional services, both in short-terms and in long runs, throughout the country.An interesting case is the case of First Cleaning Solution because this companyprovides regular one-off services which bind its customers to hire it on a monthlybasis and it will charge a cheaper agency fee, i.e., from 30 pounds to 10 ponds ( service is interesting because, although it is cheap, it ensures the company thatthe company will be hired.The other significant difference between the company and other competitors is thatthe company has just amateur staffs, i.e., students and unemployed people, whereasother competitors’ staffs seem more professional.However, since the company’s staffs are not professional, the company can chargelower prices from customers (just 10 pounds as the agency fee).SWOT AnalysisIn the next step, the SWOT analysis will be carried out so as to separate the strength,weakness, opportunity and threat of the business. The strength of the business is that it allows the customers themselves to controlthe service providers. While the staff is working, the customer can tell that staff whatto do and how to do it so as that the customer will be satisfied. This can ensure thatthe outcomes will be satisfying for the customer. In addition, the company does not need any office because it can run its businesson Facebook page, and/or e-mails and telephones. Furthermore, the company does not have to pay wages to its staffs because, likemost cleaning companies in England do, the customers will have to pay the staffs thedetermined hourly wages. This will enable the company to spend less money onstarting the business.
  5. 5. The weaknesses of this business are that it cannot generate a great deal of moneyat a time since the company has to follow the standard price charged by other serviceproviders so that the company can compete in the market and that some staffs,especially the students, may not be available all the time. These incidents can hinderthe company from achieving its goals. Furthermore, the staffs will have to work with the customers without beinglooked over by the employer or any of its representatives; thus, the company will notbe able to control the performance of the staffs- everything depends on the deals thatthe staffs make with the customers. The final weak point of the business is that it allows customers and staffs towork together. Thus, there can be chances where customers will make some personaldeals with the staffs, i.e., to work for the customers privately without contacting thecompany (lest the customers would pay the agency fee to the company). This meansthe staffs can become the competitors of the company. The opportunities of the company are that Southampton is a big city with around236,700 citizens (, 2002) andthat the university has to provide a number of accommodations for its foreignstudents. In addition, many students are not fond of doing house works, so they willhire cheap helpers to do the cleaning jobs for them. The other opportunity is that the company charge cheaper price that thecompetitors do. This will attract the main target of the company, i.e., the students ofthe University of Southampton, whose budgets are limited. The main threat of the company is that the company relies on part-time workerslest the company would pay a great deal of money hiring professional cleaners. Thiscauses the company to provide limited services in limited time. For examples, duringthe class, part-time student workers cannot come to work; and the company cannotprovide cleaning services for some customers such as hospitals and some computerlabs which require professional cleaners to take care of infectious refuses such asrefuses from hospitals, and sensitive stuffs such as complicated computer system.Furthermore, the company will provide services to customers who live or reside nearthe University of Southampton. The other threat to the business is the life cycle of university students.University students (both the staffs and the customers of the company) will spend just4-5 years in the university. After being graduated, they will leave the university andmight have no more connection with the company anymore. Therefore, the companymight have to attract new staffs and customers every year.Growth planThe estimated sales volume of the first year is 1000 pounds a day, 15 days a monthand 10 months a year, so the gross annual income is supposed to be 150,000 pounds.Then, for each of the following years, the company will forecast the demand and salesby assuming that the sales of the service will increase 10% each year. The 10%increase of sales comes from the loyal customers (the old students) and the newcustomers (the new students of the university each year). However, the company willcarry out a research work on the market every six months so as to be able to predictthe sales volume and the demand in the accurate manner.
  6. 6. Gaither and Frazier (2002) suggested that the company could forecast both the short-term demand and the long-term one. The forecast can be done on a weekly, monthlyor annually basis.A demand forecast will enable the company to plan the capacity and production aswell as to schedule the workforce (Gaither and Frazier, 2002).In this case, the demand forecast will enable the company to see whether the staffsavailable at that time are enough or not, whether the company should increase itsworkforce and instruments or not, etc…3. Business strategyThe company has to forecast the demand of the market via statistical techniques. Themain target of the company is the group of students of the University of Southampton;therefore, the company has to carry out a research work to find out whether thetargeted customers (i.e., the students) will be willing to buy the services from thecompany or not, and if they do, how much they are willing to pay. In addition, thecompany has to check the price rates that other service providers charge.Gaither and Frazier (2002) suggested that there are many factors to be consideredwhen forecasting the demand for a product or service. Such factors include marketconditions (competitors’ actions, consumers’ tastes and preferences, products’ lifecycles, seasons and customers’ plans to use the product or service), economy(business cycle status, leading indicators, namely, stock, prices, bond yields, materialprices, business failures, money supplies and unemployment rates), and other factors(such as laws and regulations, politics, society and culture).Therefore, the task that the company has to perform is to research on theaforementioned respects. In this case the stock or the material prices may not beimportant because the company emphasises on providing one-off services which doesnot require any stock of materials or products. Besides, the services that the companyprovides do not require many materials (just some instruments such as vacuumcleaners and cleaning substances).Gaither and Frazier (2002) suggested that the company should survey on customersand the market so as to learn about the prospected customers’ requirements and thetrend of the market. In addition, the company can learn about the competitors from themarket survey as well.4. Marketing PlanIn the first year, the company will promote its business on facebook webpage and viathe printed fliers just to let the targeted customer know about the company’s services.To increase the sales volume in the latter years, the company might have to launchsome promotion campaigns so as to reinforce the existing customers and to attractnew customers.After the first year’s operation, the company will reinforce the customers’ recognitionby arranging some promoting activities such as to arrange a game where all customerscan join and win a reward (such as a free 20 pounds gift voucher), to launch the
  7. 7. service coupons whereby the customers can purchase the service in cheaper prices(excluding the fee for the staffs), for examples, the company will sell a book ofvoucher that allows the buyer to receive 20 (worth 2,000 pounds) services in the priceof 15 (1,500 pounds).Furthermore, to save the transportation expenses, the company will also launch theclean pool campaign where 6 customers residing in the same apartment who want toreceive the service on the same day will get 20% price reduction.
  8. 8. 5. Team and management structureThe lower price can be charged when the company can pay lower wages to the staffs. However, thecompany has to consult the applicable laws of England to see how much it should pay to its staffs. Asfor the wages of staffs, the National Minimum Wages rates which are reviewed each year by the LowPay Commission suggest that, from 1 October 2011: - the main rate for workers aged 21 and over will increase to £6.08; - the 18-20 rate will increase to £4.98; - the 16-17 rate for workers above school leaving age but under 18 will increase to £3.68; and - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60 ( en/Employment/Employees/TheNationalMinimumWage/DG_10027201).Therefore, the company decides to pay 6.25 pounds an hour for both students andworking age staffs. This rate is lower than the rate charged by other competitors (7pounds). However, the company does not have to pay this money because thecompany will charge from the customer.Macky and Johnson (2006) suggested that monetary incentive is a tool that thecompany can rely on so as to motivate staffs to work with the company. In addition,the 6.25 pounds wages are high for student workers- the main targeted staffs of thecompany.However, students’ time is limited, for examples, they cannot work when they haveclasses and they might not want to work during an examination period. This is thereason why the company has to employ some adult workers who are looking for a job.These workers can cover the jobs that the student workers cannot do.Even though the wages rate is not too low, the company will have a problem of a highturnover rate since students spend just 4-5 years on their university before findingpermanent jobs, and the unemployed workers will work until they can find permanentjobs as well. Thus, the company will have to find new staffs quite often.Since the company’s business purely relies on the capabilities of staffs, the veryimportant resource of the company is the human resource. To run the business in aneffective way, the company has to pursue the staffs with favourable capabilities. Macky and Johnson (2006) suggested that there are many techniques that thecompany can apply so as to find the right employee. These techniques are: 1. To set job descriptions: the company has to clearly state the details of tasks and responsibilities that the staffs will have, the personalities that the staffs should have as well as contextual information such as work conditions; 2. To train the staffs: after being hired, the staffs will be trained so as that they will understand what they should do and how they can do it; and 3. To manage performances: The company will set some standards that all the staffs have to adhere to so as that all the performances will be standardised.To assure that the staffs will be competent enough, the company will give a one-hourtraining course to the staffs so that they will know the standard of the company.In addition, the staffs will be trained to care about customers’ requests, which is thestrength of the company because the customers can decide what they want and howthey want it to be done.
  9. 9. Macky and Johnson (2006) proposed that, in designing a training course, the companyshould consider two respects. The first respect if the learning theory which concernsthe motivations such as reinforcement or the repetition of success, expectancy, goalsand success of other people that the staffs can see as the examples, which drive staffsto move toward the goal. The other respect is the characteristics of the staffs whichinclude their abilities, personal motivations, self-efficacy, ages. These features affectthe learning capabilities of each staff.The training methods that the company will apply are the lecture to give essentialdetails and information to the staffs, the behaviour modeling to let the staffs knowwhat successful service providers do, and the simulation to enable the staffs to workin a setting very much like the real situation (Macky and Johnson, 2006).In addition, the company will apply other two techniques to control the performancesof the staffs. A technique is to use a checklist which provides a list of activities thatthe staffs must do. The customers will be asked to check all the activities that thestaffs have carried out. The other technique is to encourage the customers to fill in thefeedback form after receiving services from staffs so as to show whether they aresatisfied with the services or not (Macky and Johnson, 2006).Apart from the profession of the staffs, the loyalty of the staffs is another issue thatthe company should be concerned about because while giving services to customers,staffs have chances to talk to customers and have some deals together. That iscustomers can ask staffs to work for them independently and directly. This will makethe company lose the incomes, the customers and the staffs.Therefore, the company has to manage and control the staffs. The three techniquesthat the company will apply are the reward system: to offer monetary reward the staffswhose performances are the best of the year, the disciplinary system: to set somedisciplines and codes of conducts that the staffs should follow, the punishmentsystem: to punish the staff who violates the disciplines (Macky and Johnson, 2006).The other significant issue concerning the staffs’ performance is the management forthe complaints from customers. When a customer complains against a staff’sperformance, the company will retrain that staff so that he/she can comply with thecompany’s standard (Macky and Johnson, 2006). In addition, the company mighthave to clean the room of the complaining customer so as to satisfy the customer.
  10. 10. 6. Financial budgets and forecastsThe company has to invest around 150 pounds to print 1,000 fliers to attract peoplewho would like to work with the company and to print other 1,000 fliers to inform thepeople of the business so as to attract customer( Then, the company will invest about 2,000pounds to buy cleaning instruments for 20 vacuum cleaners for 20 staffs (thecompany intends to hire just 20 staffs) given that each vacuum cleaner costs around50-80 pounds ( the rest of the investedmoney will be spent on cleaning chemical and other stuffs such as rags and plasticbags.The company will not have to invest money in the office because the company willrun an e-business whereby the company contacts all customers and staffs viaFacebook website, e-mails and telephones.The company will create its Facebook page and promote its business via fliers. If acustomer is interested in receiving the service, he/she can contact the company via e-mails, Facebook page or telephone. The customer will have to contact the company atleast 3 days in advance and indicate his/her needs. Then, the company will contactany of the 20 staffs to see who is available. This scheme enables the company to runits business without having any office.The company will also not have to invest money in the staffs because the customerwill pay the staffs’ wages (6.25 pounds an hour a staff).The estimated sales volume of the first year is 1000 pounds a day, 15 days a monthand 10 months a year, so the gross annual income is supposed to be 150,000 pounds.Then, for each of the following years, the company will forecast the demand and salesby assuming that the sales of the service will increase 10% each year. The 10%increase of sales comes from the loyal customers (the old students) and the newcustomers (the new students of the university each year).Break Even AnalysisThe break even point can be calculated from the formula( Q = FC/P-V where Q = Quantity of Products sold at the break even point FC = Fixed Cost P = Sold Price V = Variable CostIn this case, the company does not have the variable cost because the customer willpay the wages of the staffs. Thus, for the first year, the break even point can becalculated as follow: Where FC is 7,150 pounds and P is 10 pounds, Q = 7150/10 Q = 715Therefore, the company has to give services to 715 customers in the first year to meetthe break even point.
  11. 11. The company expects to give services to 1,500 customers a month, 10 months a year.Thus, the total income of the first year is 150,000 pounds.ReferencesBook ReferencesGaither, Norman and Frazier, Greg (2002), Operations Management, 9th ed., Ohio: South-Western.Macky, Keith and Johnson, Gene (2006), Managing Human Resources in New Zealand, 2nd ed., Auckland: McGraw Hill.Website Reference
  12. 12. Appendix 1 Balance Sheet (Predicted) As at 31st December, 2011 Assets English PoundsCurrent Assets Cash and Cash Equivalents 150,000.00Non-Current Assets Other Current assets (Equipments and Fliers) 4,150.00Total Assets 154,150.00 Appendix 2 Cash Flow Statement For Period of 1st January 2011 to 31st December 2011 English PoundsTotal Revenues 150,000.00Expenses Legal Activities 1,000.00 Fliers Printing 150.00 Equipments Cleaning Equipments 2,000.00 Computer, Printer and Telephone 2,000.00 Accounting Activities 2,000.00Total Expenses 7,150.00Net Profit (Loss) 142,850.00
  13. 13. Appendix 3 Sales and Profit Forecast for the Second and the Third Years* With the 10% annual increase** The estimated figures are in English Pounds 1st Year 2nd Year 3rd YearTotal Income 150,000.00 172,500.00 189,750.00Expenses on 7,150.00 50,000.00 50,000.00BusinessSettlement(equipmentspurchase andmaintenance) andPromotions(rewards and pricereduction)Annual Profit 142,850.00 122,500.00 139,750.00Total Profit 405,100.00
  14. 14. Appendix 4 Monthly Cash Flow Statement (Predicted)1st YearTotal Expense = 7,150 pounds/ 12 months = 596 poundsTotal Revenue = 150,000 pounds/ 12 months = 12,500 pounds 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12thExpense 596 596 596 596 596 596 596 596 596 596 596 596Revenue 12,50 12,50 12,50 12,50 12,50 12,50 12,50 12,50 12,50 12,50 12,50 12,500 0 0 0 0 0 0 0 0 0 0 0Profit 11,90 11,90 11,90 11,90 11,90 11,90 11,90 11,90 11,90 11,90 11,90 11,904 4 4 4 4 4 4 4 4 4 4 4Gross Profit 142,8482nd YearTotal Expense = 50,000 pounds/ 12 months = 4,167 poundsTotal Revenue = 172,500 pounds/ 12 months = 14,375 pounds 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12thExpense 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167Revenue 14,37 14,37 14,37 14,37 14,37 14,37 14,37 14,37 14,37 14,37 14,37 14,375 5 5 5 5 5 5 5 5 5 5 5Profit 10,20 10,20 10,20 10,20 10,20 10,20 10,20 10,20 10,20 10,20 10,20 10,208 8 8 8 8 8 8 8 8 8 8 8Gross Profit 122,4963rd YearTotal Expense = 50,000 pounds/ 12 months = 4,167 poundsTotal Revenue = 189,750 pounds/ 12 months = 15,812 pounds 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12thExpense 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167Revenue 15,81 15,81 15,81 15,81 15,81 15,81 15,81 15,81 15,81 15,81 15,81 15,812 2 2 2 2 2 2 2 2 2 2 2Profit 11,64 11,64 11,64 11,64 11,64 11,64 11,64 11,64 11,64 11,64 11,64 11,645 5 5 5 5 5 5 5 5 5 5 5Gross Profit 139,740