Swot Analysis

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FIRST CLEANING SERVICES LTD - SWOT ANALYSIS

The cleaning market has permanently grown and is a very competitive sector where there are new entrants day-to-day (European Commission - EC, 2004). The Industrial cleaning services appear as subcontractors of other companies and involve "what cleaning operations must be carried out, on what surfaces and how often" (EC, 2002).

Regardless the considerate informal economy of this activity, there has been improvement in levels of regulations and training. Recent survey (The cleaning and Support Services Association, 2011) has revealed that the most important social priorities of the sector are wage levels, training and skills and health and safety, whereas the business priorities are to be well regarded by its clients and supply additional services to them. Moreover there is an special worry about environmental issues, and specifically on recycling and waste issues, chemical and water usage.

THE ORGANIZATION

First Cleaning Services is a family business, legally limited and as defined by European Commission (2003), a small cleaning services company with no more than 25 current employees, launched in 2003 specialised in commercial cleaning operating in Central London (on small and medium companies like pubs, offices, restaurants, diplomatic houses) and its administrative centre is located in Lambeth - London. The company generated a turnover of £114.473 in 2011 and has generated an average profit of £4.498, within 2009-2011. During UK recession, its clients have decreased in 25% (managerial assumption). In 2012 there are registered only 16 clients.

First Cleaning Services data from FAME, 2012

The efficiency of the company is good, as shown in current ratio bar chart, the firm is capable to pay its obligations, however the proportion in average 3:1 reveals there is money not well invested.

Also, it is exposed in the second bar chart low profit margin what means that the profitability of the company is in risk, it may be caused for the variable price policy, non m2 calculations, and the special low price in additional services for existing clients without having control on its costs.

KEY COMPETITORS

First Cleaning Services' local (Lambeth area) competitors are: The Mayfair Cleaning Company Ltd with hundred years experience, a wide range of services in the commercial sector, defined itself as a small, experienced, bespoke committed, innovative and local company (TMCC ltd., 2011), Cdf Cleaning Services Ltd that has operated since 2002 and has as clients small and medium companies; What cleaning! ltd., who operates in Surrey area and Alacrity Cleaning Services operating since nearly 20 years.

A solvency ratio comparison for two different years in the process of each company, reveals clearly (as shown in the bar chart) that First Cleaning Services remains a position of stability, whereas some of its competitors may have incurred debts and had wrong managerial decisions. To summarize, What cleaning! and Cdf Cleaning Services represent the biggest threats as substitutes.

SWOT

SWOT was incorporated in 1969 by Harvard Researches and it is proposed by Novicevic et al., (2004) as a research medium to capture and asses components for managers to match planning and intelligence perspectives.

SWOT requires careful assessment, research and analysis, thus we will try to identify strengths and opportunities on which the organisation can build future success as weaknesses and threats that need to be addressed if they are not, otherwise they might pull down the organisation (Cobra,2011).

Ranking positions from 1, being 1 the main.
Internal| External|
STRENGTHS1. Good segmentation and target defined.2. FCS' efficiency is good, having a proportion of 3:1 liquidity (2011).3. Low liabilities.4. Customised products for all the service contracts.5. Word of mouth as promotion system, has supported the firm in 90% and business cards in 10%.6. 100%...
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