Pro Clean Case
Strategic Profile and Case Analysis Purpose
Located in Knoxville, Tennessee, Pro Clean is a cleaning service business owned by one Kevin Wilson. He started out as a one-man show, but expanded his business 2 years ago. His expansion plan was to imitate the leading company in the industry, King Rug’s business model. He moved his office out of his home into a commercial facility, hired 3 workers to do the cleaning job and purchased 2 more new vans on lease. He also started a basic website for his company.
Since the rapid expansion, the company suffered from poor cash flows, as business did not increase 3 folds as expected. In fact, it has turned for the worse. We believe that if things remained status quo, there will be a high chance that Pro Clean may go out of business.
Our analysis will focus on the general, external and internal environments of Pro Clean to determine their capabilities and core competencies to give them a competitive advantage. Based on their core competencies, and SWOT analysis, we will examine the value chain to determine the activities that can be improved on or be outsourced. A new vision and mission statement will also be formulated to guide both the owner and employees in the implementation of the proposed changes to gain strategic competitiveness, which should lead to above average returns.
External Environment Analysis
General Environmental Analysis
The general environment is composed of the dimensions in the broader society that influence an industry and the firms within it. Therefore, firms cannot directly control the general environment’s segments. We shall examine the general environmental segments that may affect ProClean.
Demographic Segment. As of the census conducted in 2007, the estimated population was 183,546 people, 76,650 households (implying approximately 2.4 persons per household), and 40,164 families residing in the city. The median income for a household in 2005 was $30,473. Judging by the number small per
Located in Knoxville, Tennessee, Pro Clean is a cleaning service business owned by one Kevin Wilson. He started out as a one-man show, but expanded his business 2 years ago. His expansion plan was to imitate the leading company in the industry, King Rug’s business model. He moved his office out of his home into a commercial facility, hired 3 workers to do the cleaning job and purchased 2 more new vans on lease. He also started a basic website for his company.
Since the rapid expansion, the company suffered from poor cash flows, as business did not increase 3 folds as expected. In fact, it has turned for the worse. We believe that if things remained status quo, there will be a high chance that Pro Clean may go out of business.
Our analysis will focus on the general, external and internal environments of Pro Clean to determine their capabilities and core competencies to give them a competitive advantage. Based on their core competencies, and SWOT analysis, we will examine the value chain to determine the activities that can be improved on or be outsourced. A new vision and mission statement will also be formulated to guide both the owner and employees in the implementation of the proposed changes to gain strategic competitiveness, which should lead to above average returns.
External Environment Analysis
General Environmental Analysis
The general environment is composed of the dimensions in the broader society that influence an industry and the firms within it. Therefore, firms cannot directly control the general environment’s segments. We shall examine the general environmental segments that may affect ProClean.
Demographic Segment. As of the census conducted in 2007, the estimated population was 183,546 people, 76,650 households (implying approximately 2.4 persons per household), and 40,164 families residing in the city. The median income for a household in 2005 was $30,473. Judging by the number small per