Organizational Plan – McKinsey 7-S Assessment/Model
Must be 350 words combined, use (1) source and at least (1) intext citation.
This is an assignment that must correlate with the attached paper. Answer these two questions and used attached paper for backround of company and what we’re doing:
Outline a McKinsey 7-S Assessment/Model (strategy, structure, systems, shared values, style, staff, skills) as it applies to your business. Review the McKinsey 7-S
Resources in the topic materials for additional information on completing this section.
Describe your business-level strategy (chapter 4 – cost leadership or differentiated) and explain how it fits with the corporate-level strategy (chapter 6 – low,
medium, or high differentiation plus value creating, value neutral, or value reducing) for your organization.
CLC Capstone: Five-Star Cleaning Services
Jessica Cisneros
Nicholas Gaudet
Cory Nicholson
Rebekah Reno
MGT-485
March 12, 2017
Target Market
The target customer of Five-Star Cleaning Services is between 35-55 years of age, owns or rents high-end property, and prioritizes high standards for the look, feel,
and cleanliness of their home. Ideally, this customer has a household income of $70,000+ and is looking for between 2-5 house cleanings per month. Our market also
knows that while our service comes at a price, investing in a cleaner, safer living environment is worth the additional expense. For the customer who pays in full
upfront for our services, we offer discounted rates, but also have weekly payment plans in place for those who prefer to pay as they go. The ideal customer,
understands that transforming the cleanliness of their home is an investment in their quality of life and a step towards protecting their future. Our clients are
looking for a one-step solution to expediting their cleaning goals, and know that our hospitable staff and all natural, eco-friendly cleaning agents are the methods to
achieve them. Our target market’s end goal is to maintain a safe, clean living environment they can call home—and rest assured is kind to both their families and our
world.
Market Size
The upper-class family is defined as people or couples who earn over $126,000 a year. Around 21.1% of American families are in this category (The Tipping Point.
2015). That comes out to be around 51.2 million families in America. According to research by the US national center for health science at least 1 in 3 people have
allergies, asthma, sinusitis, and bronchitis caused by synthetic chemicals in household cleaners (Non-Toxic Home, n.d.). That means that of the 51.2 million families
17.06 million families across America need our services and likely don’t use a cleaning service because of the fear of using chemical based or toxic cleaners.
SWOT Analysis
We have our own patented blend of cleaning products. We have highly trained and insured housekeepers. We have strategies in place to keep abreast of any changes in the
external environment that would affect our business, and a creative team to create and implement new techniques and strategies. We have a very narrow target market. We
have high overhead costs because we create and package our cleaning products ourselves, as well as pay for the labor of both the factory workers and the housekeepers.
Our prices are high as a result.
Our biggest competitor does not have much of a presence in the western half of the United States (Green Cleaning, n.d.). We have the option to eventually sell our
cleaning products in stores to open up our market potential. We also have the option to expand internationally. There are other cleaning companies already established
who also offer eco-friendly products, and some at a lower cost to include the middle-class market. If the economy falters, we may lose a portion of our current
customers and/or potential customers. Being a luxury service, our company will not survive if the economy completely crashes.
4 Ps of Marketing
Product/ Services
The main service that is offered by Five-Star Cleaning Services Company is home-cleaning services. In this respect, the organization provides abroad range of
packages under the domestic category. Examples include cleaning homes and washing services such as laundry. The organization’s goal is to provide excellent services
that meet consumer needs.
Price
Five-Star Company’s pricing strategy is dependent upon the magnitude of services that are offered. For instance, houses that have a standard surface area of
400 square meters are priced at $200. Pricing also depends on the number of items that are cleaned and the nature of complexity of the services to be provided. This
also depends on the number of hours.
Distribution
Distribution strategies affect the geographical influence of a firm (Jacobson, 2013).The services that Five-Star offers will be limited to the national levels.
This means that markets that are beyond the country’s national frontiers are still not covered. However, the organization plans to expand its reach so that it can
target international markets.
Promotion
In order to ensure that the organization’s services attract as many clients as possible, various promotional strategies will be employed. For instance,
advertisements will be used at different channels such as social media, television, and print media platforms such as newspapers and magazines. Discounts and special
offers will also be provided to lock in loyal customers.
References
Green Cleaning | Home Cleaning Services.(n.d.). Retrieved from http://www.thecleaningauthority.com/our-cleaning-services/green-cleaning/
Jacobson, M. D. (2013). The marketing Plan: How to prepare and implement it. Journal of Consumer Marketing.
Non-toxic Home Cleaning & Care: Natural, Green, Eco-Friendly Solutions | Eartheasy.com. (n.d.). Retrieved from http://eartheasy.com/live_nontoxic_solutions.htm
The Tipping Point: Most Americans No Longer Are Middle Class. (2015). NPR.org. Retrieved from http://www.npr.org/sections/thetwo-way/2015/12/09/459087477/the-tipping-
point-most-americans-no-longer-are-middle-class
