Rapid Dry Cleaning PLC
From an examination of the case study explain the strengths, weaknesses, opportunities and threats for RCDC plc
RCDC covers a wide geographical area and so lots of people will know the brand. RCDC also have shares in their biggest competitors; Bletchley’s. They could take advantage of this by looking at their annual report and looking at what they have been doing to make a profit. They could also look at what Bletchley’s see are their biggest problems and what solutions they will put in place and beating them to it. RCDC have lots of fixed assets, some of which are high quality (such as their machinery). They are also a values led company which puts them in a unique position and they are not on the stock exchange so do not have to take into account their shareholders. RCDC also have lots of part time staff which offers a lot of flexibility of covering hours. RCDC are a Public Limited Company (PLC). Some strengths of being a PLC are; the company has a legal existence separate from management and its members (the shareholders), the company's name is protected, it has flexible borrowing powers, new shareholders and investors can be easily assimilated and employees can acquire shares. Having a central Head Office means the team could focus on projects which help move the business forward.
RCDC rely on customer recommendation and networking skills to obtain new business. Communications across all the stores is probably difficult due to the large geographical area and staff turnover is very high. RCDC are run by three families. This causes a number of problems as decisions are rarely made due to needing a majority to have an action passed and each family disagrees with the others. They also have autonomous managers running each branch so there is no consistency between shops. All assets are entered at cost price on the balance sheet which means the true value of the assets is unknown. Also, RCDC do not seem to have any HR or health and safety policies in place which could lead to wrong decisions being made regarding employment law and employees could be working unsafely, which could lead to someone getting hurt or a fatality occurring. There has already been one major accident involving an employee (Mavis Davey). This case brought a large amount of negative press to the business. Furthermore, the dry cleaning business is seasonal so there are going to be peaks and troughs in the amount of turnover.
RCDC pay their invoices as soon as receiving them. If they stretched out when they paid invoices they could keep money in the business longer. Also, the flats above the shops that RCDC own are empty so there is potential to make extra money on letting out the flats. New technology may open up new channels to market and give the business new ideas for dry cleaning. There is also the opportunity for a press campaign and for RCDC to focus on their image. RCDC need to improve staff relationships and improve policies and procedures to reflect the positive values of the company. Moreover, managers need guidance to meet requirements of regulation and procedures. RCDC could also focus more on training and rewards for employees. There is also the possibility to expand the business. RCDC could approach this in two ways; firstly, they could go to supermarkets or big companies to see about becoming an onsite dry cleaners at these businesses or secondly, they could start up a new venture such as dry cleaning on the internet. They could have a ‘click and collect’ scheme where a customer goes online and picks a time and date for their dry cleaning to be collected, cleaned and returned to them.
A high level of competition continues to put pressure on price which will be increased further by supermarkets and other rivals driving down prices. Their customers may come increasingly under pressure during the current economic downturn. Furthermore, the...
Please join StudyMode to read the full document