MGT 431 (G)
Fall 2017
1. The internal environment
1) The organizational context
Very good job!
Organizational structure: your group stated Trash Butler uses both functional structure
and geographic divisions. It’s hard for a small company to be both functional and
divisional.
2) Human resources
Major improvements are needed:
a) This section does not meet the writing requirement. There are many grammatical
errors and unclear sentences. The following are only three examples:
P13: “All through its venture, Trash Butler is well known to be very committed in
ensuring every other player in its field of business is well in the same play and focus
to which the economic hard times have had to be dealt with by the institution.”
P14: “Although the interviewing process considers the applicant’s technical skills, he
will be hired primarily based on their character.”
P14: “The collecting the application on a central point then follows this.”
b) Many descriptions are not data-based, but your group’s own ideas. For example, does
Trash Butler really receive “thousands of applications”? Evidence?
c) The last paragraph is not relevant to HR
Suggestion: rewrite the HR section.
3) Technology
Your group collected limited data.
a) Trash Butler has also used some other technologies.
b) It is necessary to discuss Trash Butler’s website in detail
4) Operations
It would be helpful if your group could discuss the operational process: steps used to
complete a job
MGT 431 (G)
Fall 2017
5) Marketing and customer services
Major improvements needed:
a) There are many broad descriptions (without data)
Example 1: most descriptions in the first paragraph of the Marketing section are not
helpful and should be removed.
Example 2: the first paragraph of the Customer Services section is not helpful and
should be removed. (your job is to identify how Trash Butler performs customer
services rather than explain customer service is important).
Suggestions: present data directly and then analyze the data.
b) Collect more marketing data. It would be helpful if your group could use the 4Ps
framework.
c) It would be helpful if your group could collect data on Trash Butler’s existing
customers. You would then compare its existing customers and the industry
customers your group identified in your External Analysis.
d) Try to collect customer satisfaction data
2. Assessment and strengths
Your group assessed four resources/capabilities based on the VRIO model and concluded
they are the Trash Butler’s strengths.
Areas for improvements:
1) Trash Butler has many other resources/capabilities. Why did your group select those four
resources/capabilities, not others, for assessment? Why are they more important or
relevant than other resources/capabilities?
This is a hard question. A good answer can lead to great recommendations. To make a
good argument, your group needs to do the following:
•
•
•
•
•
Collect all important data
Understand the nature of resources and capabilities: how they contribute to the firm
success
Summarize important resources/capabilities in all areas
Make comparisons
Use the goal of the project as an important criterion.
MGT 431 (G)
Fall 2017
Your group needs to collect more data in order to provide strong support for the strengths
and weaknesses.
2) Improve the VRIO analysis and use evidence to support your argument
a) Valuable
A valuable resource/capability can help the firm exploit opportunities and neutralize
threats. Your group can argue all the four resources/capabilities are necessary for the
business, but to argue they can help neutralize threats, your group needs to use
evidence.
For example, employees are important resources. Trash Butler’s employees may be
unique. However, its main competitors also have employees who may be motivated
and capable in the same degree or even better. If this is true, Trash Butler’s
employees may not help Trash Butler neutralize threats.
The valuable criterion is one of the hardest to establish.
b) Inimitable
There is no evidence suggesting “employees”, “customers” and “process knowledge”
are inimitable.
c) Organization (exploitable)
It is necessary to use the concept “Organization Structure” (including three
components, see Slides or the Text) to explain whether those resources/capabilities
could be exploited well.
Suggestions: reconsider three strengths: employees (too broad), customers (too broad),
and equipment. They are not helpful for strategy recommendations.
3. Weaknesses
Your group presented four weaknesses and made explanations. Areas for improvements:
Trash Butler is likely to have other weaknesses. Why are those four weaknesses more serious
than others?
It is not easy to answer this question, but a good answer can lead to great recommendations.
To answer the question, your group needs to do the following:
•
•
•
•
Collect all important data
Perform strong competitor analysis (your external analysis)
Identify weaknesses in different areas
Compare different weaknesses.
MGT 431 (G)
•
Fall 2017
Use the goal of the project as an important criterion.
Other comments: to make good recommendations, your group will need to reconsider or improve
most strengths and weaknesses.
Example 1: Equipment is not rare. Why is it a strength?
Example 2: why lack of equipment is a weakness?
Grading Criteria
1. Sufficient data (30%)
2. Thorough analysis (30%)
Explanation
Good job in Organizational Context.
Limited data in all other sections.
Major improvements needed (except for the section
Organizational Context)
Major improvements needed
3. Goal accomplishment (30%)
4. Professional writing (10%)
Score (Group)
• Justify: why are the strengths/weaknesses your group
identified most important or significant?
• Improve the VRIO analysis
• Reconsider/improve most strengths and weaknesses
Major improvements needed
82.5 (100-point scale)
Note: Some members have worked hard. I assign this grade to
reward the hard work, but you group needs to successfully
address the following two issues to finally receive this grade:
a) first, MGT 431 is a writing intensive class. The writing
problems will be fixed in your Final Paper; b) improve or
reconsider most strengths and weaknesses (because they can
hardly contribute to your Recommendations).
TRASH BUTLER
INTERNAL ENVIRONMENT 2017
Prepared by:
Sultan Jamal Al Saadi
Matthew Nauss
Yahya Albader
Hamad AlShuaib
Jamal Aljefin
Talal Alziad
1
INTRODUCTION....................................................................................................................................... 3
INTERNAL ENVIROMENT..................................................................................................................... 3
ORGANIZATIONAL CONTEXT .................................................................................................................... 3
The Company ....................................................................................................................................... 3
Firm History ......................................................................................................................................... 4
Mission/ Vision ..................................................................................................................................... 4
Company Goals .................................................................................................................................... 5
Company Culture ................................................................................................................................. 7
Trash Butler’s Overall Strategy ........................................................................................................... 8
Organizational Structure.................................................................................................................... 10
Financial Performance ...................................................................................................................... 12
HUMAN RESOURCE MANAGEMENT ........................................................................................................ 13
TECHNOLOGY ......................................................................................................................................... 16
OPERATIONS ........................................................................................................................................... 17
MARKETING ............................................................................................................................................ 19
CUSTOMER SERVICE ............................................................................................................................... 20
ASSESSMENT OF RESOURCES/ CAPABILITIES AND STRENGTHS ........................................ 21
RESOURCE #1: EMPLOYEES .................................................................................................................... 21
RESOURCE #2: CUSTOMERS .................................................................................................................... 22
RESOURCE #3: EQUIPMENT..................................................................................................................... 23
RESOURCE #4: PROCESS KNOWLEDGE ................................................................................................... 24
WEAKNESSES ......................................................................................................................................... 25
WEAKNESS #1: SMALL SALES TEAM ...................................................................................................... 25
WEAKNESS #2: NO MARKETING DEPARTMENT ..................................................................................... 25
WEAKNESS #3: MARKETING STRATEGIES .............................................................................................. 25
WEAKNESS #4: LACK OF EMPLOYEES .................................................................................................... 25
CONCLUSION ......................................................................................................................................... 26
SW TABLE .............................................................................................................................................. 27
WORKS CITED ......................................................................................................................................... 28
2
INTRODUCTION
For any good strategy to succeed, it should be based on a realistic assessment of the
firm’s internal resources and capabilities. An internal analysis provides the means to identify the
strengths to build on and the weaknesses to overcome when formulating strategic plan. That will
help maintain a competitive edge by knowing the latest internal capabilities available.
INTERNAL ENVIROMENT
Organizational Context
The Company
Trash Butler is one of the large waste management companies in America, offering its
services in all 50 states, with more than 250 trucks and about 150 employees (Trash Butler,
LLC). The company has a team of clean-cut uniformed butlers who pick up bagged trash and
recyclables 5 nights per week from the residents’ door. The company offers these services to
apartment complexes and multi-family housing communities.
The company steps in to bring solutions to both the tenants and the landlords (Trash
Butler, LLC). Tenants will not go through the hustle of lugging garbage, shuttling trash, and
dealing with disputes that arise or deal with smelly garbage. They only have to leave their
bagged trash and recyclables outside their doors at night, where the bags are collected by
morning. Clients get to live in a clean community without having to exert too much effort. The
benefits these services offer to the property managers are that they get to expand their amenities
package, differentiate themselves from competing properties, reduce total waste costs for their
property, and add a supplemental income stream (Trash Butler, LLC). The services offered also
3
ensure that recycling and other environmental protection services are practiced in the
community.
The company’s employees are divided into two, the butlers and the office managers.
While the butlers provide services on the ground, office workers at the company’s headquarters
located near Tampa International Airport would be responsible for office functions such as
human resource, finance, accounting, sales, and marketing (Trash Butler, LLC).
Firm History
Trash Butler, LLC started in 2014, in Tampa, Florida as a company that sold waste
management services to apartment buildings and owners of multi-housing complexes (Trash
Butler, LLC). The company would sell the services to the landlords and the owners as an
amenity to the residents. The company would provide door-to-door trash collection and recycling
from the residents in a complex (About Trash Butler). Shared dumpsters would be emptied and
cleaned, and where each resident had a trash bag, the residents only had to leave it outside, and
butlers would collect it.
Mission/ Vision
Trash Butler LLC aims to provide its customers with the highest level of waste
management services and recycling collection services (Trash Butler, LLC). The company is
committed to continually strive to maintain exceptional customer service and ensure an overall
customer satisfaction. By doing this, the company hopes to encourage environmental protection,
to ensure a healthy and safe community for present and future generations.
Trash Butler’s vision is to become the company of choice for waste and recycling
services for apartment complexes and multi-family housing communities across the country
4
(Trash Butler, LLC). Trash Butler also hopes to be a national leader in the development,
maintenance, and implementation of sustainable and innovative waste collection, reduction and
recycling strategies.
Company Goals
Trash Butler has sought to develop a comprehensive, integrated national waste
management system that will seek to achieve specific safety and health, financial, institutional,
and environmental objectives for its customers (Trash Butler: About Trash Butler). Some of the
company objectives include:
•
To deliver comprehensive and cost-effective waste management solutions
•
To aid customers in their quest to implement effective solid waste management
practices
•
To enhance the company’s knowledge and capacity to take care of the waste
management concerns of the customers.
•
Increase community awareness on the need to minimize and properly manage the
production of waste from an environmental conservation and preservation perspective
(Trash Butler: About Trash Butler).
•
To help building owners and managers comply with the established hygiene and
service standards.
•
Build partnerships with butlers who have a habit and history of service excellence.
•
To efficiently use company tools, assets, and personnel to provide superior waste
management solutions across the country (FreddieMac).
5
Trash Butler has established policies to aid the company to help it achieve these goals.
These policies include:
•
Providing support to the national waste management planning process that is based on
the country’s adopted waste management strategies that are pursued through
recycling, reuse, resource recovery and waste reduction (Trash Butler: About Trash
Butler).
•
Coming up with support mechanisms through developing networks with other
industry players to promote waste management efforts and to ensure combined efforts
towards administrating proper waste management strategies (FreddieMac 1).
•
Coming up with mechanisms to evaluate and monitor effective service delivery to
customers within a service area to ensure that the company delivers the quality of
service promised and that these services are uniform throughout America (Lopeznieto
2). This has required a 24/7 response team from the headquarters who work to ensure
that systems such as transportation and garbage disposal are effectively coordinated,
providing ready assistance to personnel on the ground in case they encounter
problems, maximum use of company resources and coming up with workable
innovations that will suit each service area (Trash Butler: Customer Reviews).
•
Promote the customers’ participation in waste management needs by incorporating
recycling options into the garbage management plan
•
Welcoming governmental solutions by meeting the local area’s waste management
legislation and ensuring that the objectives and policies developed to guide the
national and federal handling of waste are followed.
6
•
Continually advertising and marketing the company’s services to potential customers
to increase the company’s reach with the aim of having the most significant market
share in the industry.
•
Continue research on innovative systems that can be used to handle waste better.
•
Continuously come up with ways to reduce the costs involved in managing wastes for
building owners and managers
Company Culture
Trash Butler has established the culture of transparency in all company functions
including its policies, communication, in the recruitment and selection processes, among others
(Trash Butler: About Trash Butler). Employees, both at the corporate level and on the field, are
encouraged to speak their minds and ask questions. Instead of guessing when unsure about
something, the butlers are encouraged to seek clarification. The management has created a
psychologically safe space where the employees are free to interact with their supervisors and the
management, discussing problems, solutions, strategies, and their implementation. Leaders, on
the other hand, are encouraged to maintain humility and honesty. The more honest a leader is,
the more loyalty and trust he will get from the employees. In addition, if honesty is practiced at
the top positions, subordinates are encouraged to practice honesty too.
The Trash Butler human resource department has a rigorous hiring process that is meant
to get the best and most dedicated talent. The process of recruitment considers more than the
candidate’s intellect, technical skills, and their creative thought process or quick thinking
abilities. This gives the company’s HR department an easier time determining whether they can
expect the employees to work properly in an environment with little or no supervision. The
candidates are expected to be intellectually humble, comfortable with dealing with unknown
7
situations, conscientious, and able to follow instructions. The process of determining these
factors in an individual may slow down the hiring process, but a careful consideration of the
company’s candidates has helped Trash Butler build a strong team and a strong foundation for
the company’s growth.
Another critical culture that the company has embraced is that of teamwork in every step
of the way. Building a strong team is essential to ensuring the teamwork itself is effective
because a team will be composed of both experienced and inexperienced employees, which
represents a pool of people with different strengths and skills (Trash Butler, LLC). Although a
butler’s job does not require much technical proficiency, important details such as proper
communication with the customers and proper cleaning of garbage cans must be learned to retain
the company’s standards of service delivery. Secondly, under company laws, teams are
encouraged to hold 10 to 15-minute meetings to go over the team’s goals, progress and
problems. In case any issue cannot be solved at ground level, the team leaders are encouraged to
report the problem directly to the company headquarters. The management has ensured that there
are no hierarchies to deter communication and that the management can be accessed anytime.
Trash Butler’s Overall Strategy
Trash Butlers, LLC bases its success on continuously differentiating itself by providing
customized and tailored services to each client under contract. This strategy is based on seeking a
win-win situation where the company, the apartment or homeowners and the tenants all benefit
from the arrangement. This strategy has been attractive enabling the company to grow and
expand its business across the country.
8
The residents and property owners get their apartments served with quality and valuable
amenities for only a small fee. This increases the attractiveness of the package offered to
potential tenants, allowing the apartment managers to differentiate themselves (Nelson 1). In
addition to doorstep waste pickup, the company requires its butlers to clean around the
dumpsters, and the apartment communities receive special containers to allow in which the
recyclables are kept (Trash Butler, LLC). In addition, because they only pay a small fraction of
the waste management fees collected from the tenants. The growing margin between costs and
revenues received increases the profit margin, allowing them to earn more from their
investments.
Tenants benefit from the arrangement also because they get to avoid the hustle of lugging
garbage to take it to the garbage cans downstairs, all they have to do is bag it properly and leave
it outside. Secondly, there are times that the apartment management could be experiencing
administrative issues such that the dumpsters are left unattended for many days (Trash Butler:
Customer Reviews). This is often an eyesore because of the dirt and parasites that it attracts. The
smell is also intolerable. With Trash Butler services, the tenants are assured of a clean building
and daily emptying of the trash. In multi-family housing communities, each family has to handle
its trash. Sometimes, this requires them to carry their trash on their way to work, which brings
inconveniences like forgetting or having to change their route to work. In addition, with so much
to handle, individual waste management is not only time wasting, it is likely not to be done as
regularly as the homeowner would like. Trash Butler steps in to resolve all these worries and
issues, making waste management more effective and cheap since it is operating in economies of
scale.
9
The company has also accrued benefits from this arrangement (Trash Butler: About Trash
Butler). By covering a large area, the company has been able to lower its costs because it
operates on economies of scale, especially now that it covers the entire country. The quality of
the services it offers has also helped to spread the word among communities which is continually
increasing the number of customers.
As the company grows and increases its expanse across the country, the management has
been gaining a voice on issues concerning the environment and the waste management industry.
Usually, the government will call the large industry players when making decisions that affect an
industry. Through its wide reach, Trash Butler has earned a seat at the decision-making table
which is an honor for the management. In addition, the increase in size allows the management
to increase its hires and provide employment opportunities for Americans, an agenda that the
owners have been passionate about for a long time. In summary, the company benefits from
getting a high revenue, securing more customers through interaction, having a take in decisionmaking in the industry and getting to contribute to the country’s economy by offering
employment opportunities.
Organizational Structure
Trash Butler has taken up a functional organizational structure, which means that
different ranks in the company are determined by the functions of each. Departments such as
finance, and human resource are mostly recognized at the top levels of management, particularly
at the company’s headquarters in Tampa. This organizational structure facilitates top-down
control and monitoring of the company, with the CEO at the helm of power.
10
Trash Butler
C.E.O
Sales team
Advertising
75 Employees
Trash Butler also has geographic divisions because its operations are spread throughout the
country. The company has established at least one office in each state, with each having a senior
vice president is the regional head and is also in charge of regional functional heads such as the
human resource manager in each state. Each division head has the mandate to make necessary
adjustments to suit the specific needs of each market.
C.E.O
Regional
Leadership
Supervisors
Team Leaders
Below the regional heads are the teams. This is the lowest organizational rank yet is key
to the success of the company. Each team is organized to deliver services to the customers (Trash
Butler, LLC). This decentralized structure enables the company to provide efficient and effective
services to the customers.
The hierarchies at Trash Butler are somewhat non-existent seeing that in every level of
management, the staff are called upon to offer advice, give opinions, authorize, support new
ventures and make reports on the company’s progress. The company is headed by the CEO and
under him are company directors that oversee the regional managers. Each state has a regional
manager to whom supervisors on the ground report. Team leaders report to the supervisors.
11
However, the staff is welcome to offer any information and insight they deem necessary at any
management level.
Financial Performance
Trash Butler has experienced sporadic growth over the years as it continues increasing
the number of customers it serves. The company’s 2017 goal was to double its revenue to about
2.4 million dollars which the by July 2017 seemed to be on target (Trash Butler, LLC). The
company also sought to double the number of its existing contracts from 65 to 130, but by mid2017, the company only held 82 clients. Each contract has an average duration of 36 months.
Company audit values the company using the P/E Ratio (TTM) values the company at 12.6 while
the P/E Ratio (including extraordinary items) values the company at 13.4. The P/E ratio values
the company’s current share price against its per-share earnings (Nelson 4).
This research was able to access Trash Butler financials for the period between JanuaryJuly 2017. The reports showed that for the first half, the company had revenues amounting to
$1,216,436.21 which was a 16.26% year to date increase (Nelson 3). In July alone, the company
had received $197,829.97 in revenues. The company’s net income for the first six months of the
year was a deficit of $33,938.69 which was a 9.27% loss (Nelson 5). Trash Butler was able to
pull back, however, and in July, it registered a profit of $3,314.87 (Nelson 6). In terms of its
liquidity, Trash Butler’s current ratio is reported to be 0.85; quick ratio of 0.82 and the cash ratio
is 0.01 (Trash Butler, LLC).
The efficiency of the employees, expressed as Revenue/Employee was found to be $2200
while the income per employee was $3300 for the first half of the year. This explains why the
12
company would be at a loss since the management was borrowing to pay for all customer
expenses.
Trash Butlers expects to grow in the coming years. It is predicted that the US waste
management industry will grow by 4.4 percent per year driven by stricter environmental
protection and conservation regulations, and more recycling campaigns (Trash Butler, LLC).
Waste collection is expected to be the dominant service in comparison to other services
that companies in the waste management industry offer such as waste treatment, material
recovery, and remediation services.
Human Resource Management
Trash Butler has been known to be very productive in its business venture. It is a good
example of what one would refer to as the company that has survived hard times, challenging
times. Trash Butler has been known to have very well experienced human resource capital. This
has been a key propeller towards the position it stands today and the test of times it has had. All
through its venture, Trash Butler is well known to be very committed in ensuring every other
player in its field of business is well in the same play and focus to which the economic hard
times have had to be dealt with by the institution (Trash Butler, LLC). On the human resource
capital management, Trash Butler has been key in enhancing the togetherness and the best
cooperation among the many other required ends of its operations.
Trash Butler has a rigorous hiring process that seeks to get the best and most dedicated
talent. The management receives many resumes every year, but only a few applicants get to join
the company’s workforce. The process of recruitment involves interviews that not only assess a
candidate’s intellect, technical skills, and their creative thought process or quick thinking
13
abilities. This helps the company’s HR department to have an easier time determining whether
its employees continue to employ work ethics in an environment where there is little or no
supervision. Although the interviewing process considers the applicant’s technical skills, he will
be hired primarily based on their character. The human resource seeks people who are
intellectually humble, comfortable with dealing with unknown situations, conscientious, and able
to follow instructions. The process of determining these factors in an individual may slow down
the hiring process, but a careful consideration of the company’s candidates has helped Trash
Butler build a strong team and a strong foundation for the company’s growth.
Trash Butler has been conducting very comprehensive and well-structured recruitment
processes. This can be judged from the point of focus on the end of the recruitment. This starts
with advertising various jobs within the mandate of the Trash Butler. The collecting the
application on a central point then follows this. Then the screening of the curriculum vitae is
started. This will then narrow down thousands of applications to hundreds of them. Then the
hundreds remaining are subjected to the interviewing. The interviews are targeted and objected
towards ensuring the best among the best are given the opportunity to work for Trash Butler.
The employees are then well treated like kings. This involves putting them in a good
introduction processes and briefing to help them get to understand what Trash Butler does (Trash
Butler, LLC). They are also subjected to mentors who will help gauge their progress and success
all through in their every day to day activity. This is the followed to them being treated with a
gift of good offices where they can work well and where they can be able to continue learning
their other responsibilities and the responsibilities of other partners in the business they execute
at all times.
14
The next step after getting the offices and workstations is the training. This involves the
process of placing the employees in an avenue where they are made to learn all the functions of
the company. They are put under both practical and theoretical classes to help them get a better
view and understanding of what the company really does on its daily activities. It is therefore
important to note that, every other institution must have in its business a good training programs.
This will help the employees acquire the necessary skills and knowledge required to execute
their various job descriptions.
The reward to employees is also known to be good for the Trash Butler (Trash Butler,
LLC). This makes it possible for one to be willing to go extra mile towards helping Trash Butler
as a company achieve its various mandate this can therefore be directly associated with the good
performance of Trash Butler Company and also the productivity of the staff being high in its
nature.
Context is also about defining the organization size, customers, information flow and the
quality of the services it provides. The idea behind Trash Butler was to solve the problem of
waste handling among tenants and homeowners, to reduce the amount of harmful waste
deposited in the environment through individuals handling their waste and to reduce the
environmental effect of waste as the world moves towards a healthier and greener environment
(Rosanas 6). The company’s role has been to promote proper handling of waste, to ease its
clients’ burden of waste management, and to promote recycling. Additionally, it ensures proper
energy use of the waste that is not meant for recycling, and to ensure that the process of
disposing of the waste does not cause harm to the environment (Ion and Gheorghe 17). Trash
Butler is committed to easing the lives of its clients by helping them manage waste properly,
15
reduce environmental pollution through unsafe waste management activities and to make money
while at it.
Technology
New technologies have been developed to support the efforts made towards ensuring a
safer and cleaner world. For example, Trash Butler has implemented a technology that uses GPS
in to monitor the collection vehicles (Morris et al. 23). These sensors send back information to
the state headquarters regarding the location of the track, the time taken to move around a
collection route and other data that can be used to determine the efficiency of operations. The
data is sent real-time using software, enabling real-time supervision and monitoring of the
process of collecting and transporting wastes. This close monitoring using the software is also
meant to sense possible problems that the workers on the ground may experience (Morris et al.
24). When problems are realized early, they are also resolved early.
Since the employees only work five days a week, Trash Butler is considering taking up
intelligent containers that are now in the market to be used when the company employees are off
duty. These containers have sensors that send information remotely regarding the filling or
weight of the trash in them. Based on the data sent over, for example, when the weight is too
much, or there is an overflow of trash, the company can send some of its employees who may
not take issue working during the weekend.
The company has also taken up technology to ensure the safety of its workers. Besides
training on correct practices and behavior, employees are handed devices that they should use to
scan trash bags and dumpsters for potentially harmful material such as weapons or radioactive
material (Ion and Gheorghe 20). The barcode technology scans the items in the bag and incases it
16
is not safe; the scanner will indicate the type of hazardous waste, type of contamination and
degree of contamination. This allows waste monitoring such that the employees are safe during
duty.
Trash Butler has a main website Trashbutler.com which potential clients can go and surf
through the variety of products offered servicing more than 50 states. There were also links to
other publications including WSJ, inc500 and Time magazine regarding the company. It has a
"get a quote" neatly (in the middle, and bottom of the page) a customer service hotline (on the
top left) easy, user friendly. Today, the larger proportion of marketing for any business is done
over the internet online. Technological advancement has made life to be more virtual. People
work using online resources, socialize shop, entertain, and do other things through the internet.
However, less than 1% of their customers hear about Trash Butler through the pay per click
program. Trash Butler maintains online presence primarily through its website and its profiles
on social media platforms. It has been found that most people seeking services will first look
them up on social media sites before they can go up and check the services offered on the
company website.
Operations
Trash Butler, has some unique operational practices that make it stand out in the trash
collection industry. Unlike her main competitor, Valet living, which has its employees serving
different premises at a lower cost but for long hours, Trash Butler has designated people called
Butlers for specific premises.
This ensures that her clients get customized services and hence the value for their money.
For instance, trash is collected from the client door step; eight to ten o’clock in the evening. This
is not too early before the residents have arrived from work and not too late to disturb sleeping
17
neighbors. In this case the company recognizes the customer as the central part of the business
and that they are the reason they are in business.
Secondly, the company has special equipment for different locations to facilitate their
trash collection. The standard can, one of the equipment has a hinged lid with a capacity of
holding 13 gallons of waste available in black and white colors. The “standard can” be stored
indoors and be brought out at convenient times for collection. This is convenient for the client. In
addition, they have an alternative “waste box” which holds the same capacity as the standard
can. This one is specifically made for premises with limited space. It is important to note that
both waste box and the standard can are available in different colors and as such they give clients
power to choose what colors they prefer. This creates aesthetic value for the customer.
The company has also ensured high responsiveness to customer demands in that their
complaints are reported directly to their corporate facilities and efforts are done to resolve them
in good time (Trash Butler, LLC). They have maintained a well-defined role for every employee,
which limits conflict of interest that may affect employee execution of company operations.
These operational strategies have fostered the rise and growth of the Trash Butlers Company to
be the leader in the industry.
The company offers recycling services, which is a great relief to the landlords as clients.
This helps them reduce waste costs in addition to boosting company reputation among its clients
since recycling is environmentally friendly. People in America are increasingly becoming
environmentally friendly, as such Trash Butler is embracing green operations and is perceived
positively. In some states in the United States recycling is a legal requirement for property
owners and as such the company saves her client a lot of costs in terms of legal action and
penalties from the authorities.
18
It is also important to note that the company owns a fleet of trucks across the states to
facilitate trash collection and delivery to the recycling points. However, the company Finance,
accounting, human resource, sales and marketing services are handled by fifteen employees who
are based in the company’s headquarters near Tampa international services. This ensures that
there is coordination from a central point. Butlers at specific residential areas are continuously
tracked from the headquarters to ensure that they are doing good service to the customers.
Marketing
Today, the larger proportion of marketing for any business is done over the internet
online because the more significant share of people’s lives revolves around it. Technological
advancement has made life to be more virtual. People work using online resources, socialize
shop, entertain, and do other things through the internet. Therefore, this is one of the best
avenues to attract their attention. They experienced a less than 1% success rate from the pay per
click program. Trash Butler maintains online presence primarily through its website and its
profiles on social media platforms. It has been found that most people seeking services will first
look them up on social media sites before they can go up and check the services offered on the
company website.
Recognizing that online advertising is not enough, Trash Butler has also delegated the
marketing responsibility to the company College Hunks who act as resource for the company and
the potential customers who would need help from a trash removal company (College Hunks).
This middle company’s role is to seek clients among apartment communities. They use the trade
shows also to promote Trash Butler to attain new customers. Trash Butler pays a percentage for
every new client. It is hoped that this relationship will continue into the future because it
19
eliminates the hustle of the company’s marketing department seeking out clients in the field,
increasing effectiveness and also making the department lean.
Customer Service
Good customer service and satisfaction remain at the core of Trash Butler services.
Customer service is important for a company because it helps to settle potential complaints. A
company with proper customer service is likely to get repeat business from customers and
consequently, benefit from greater profits. Customer dissatisfaction could lead to loss of the
customer which means loss of business and the possibility of legal action. It is costlier for a
company to acquire a new customer than it is for the company to retain the customers.
Trash Butler has established an 8-5pm call service where customers can call to submit
requests, report service issues, request new services, report billing issues and other concerns that
the customer may have. These services are provided to ensure that the services offered are
continuous of value to the clients. This responsiveness is one of the reasons the company can
take Valet Living’s clients because Trash Butler can engage with clients on a personal level that
builds trust and loyalty. This relationship has brought the company a competitive advantage in
the industry, enabling it to attract and retain clients better than the competition. When customers
establish a personal connection to business, they can spread the word that will naturally market
the company.
Customer service is also important because it raises the clients’ expectations. When
customer care representatives go above and beyond to resolve the problems presented, the clients
feel valued. Many waste management companies in America have resorted to the use of
automated service options where messages may or may not be attended to. Direct customer care
raises the competition bar because it pleases the company’s customers.
20
ASSESSMENT OF RESOURCES/ CAPABILITIES AND STRENGTHS
Trash Butler’s resources and capabilities allow them to differentiate themselves from
their competition in a way that is valuable not only to their industry, but to their customers as
well. Their important resources include their equipment, employees, process knowledge, and
management. This analysis will highlight each strength the company has internally.
Resource #1: Employees
Having experienced employees in the front office and effective “butlers” that execute
daily activities is key to their success and growth. With 15 front office employees and about 75
“butlers”, the employees operate with transparency and values that creates a workplace that
employees are proud to be with.
Valuable
The employees are valuable to the culture of the company and its success. They are
needed in order for the company’s survival and growth. They help exploit opportunities and
neutralize threats through their daily functions.
Rare
The employees of Trash Butler are rare in the sense that they possess the knowledge of
Trash Butler’s daily operations.
Inimitable
21
Trash Butler’s employees can be inimitable. It wouldn’t take long for a competitor to
acquire employees of the same skill set and teach them to execute the same operations.
Organization
Trash Butler is not organized to exploit this resource now.
Resource #2: Customers
A very important resource for Trash Butler is their customers. Without them, their
company would not be as successful as they are today. Also, they provide critical feedback about
the operations and quality of service that their employees provide for them. This helps Trash
Butler to analyze and make changes to their operations based on the changing customer needs.
Valuable
Customers are a valuable necessity for Trash Butler’s survival and growth. You need
customers for continuous revenue and feedback to make the company grow.
Rare
Competitors like Valet Living can be threatening to Trash Butler’s customers. They can
market themselves better and take customers away from Trash Butler. They must sustain their
high-quality service to their customers to keep their current customers and gain new ones.
Inimitable
Customers are not inimitable. Customers have options to choose from when deciding on a
trash valet service. This only gives Trash Butler a short term competitive advantage because their
competition is also working hard to gain the same customers that Trash Butler is going after.
Organization
22
Currently the organization in place to exploit this resource, but must work hard at
maintaining it.
Resource #3: Equipment
With more than 250 trucks they possess the essential equipment to not only operate
efficiently, but also leaves room for growth. They use these vehicles to pick up and drop off the
trash that their clients leave out daily. Not only do they use their own trucks, but they also use
their sister company’s equipment to execute operations.
Valuable
This resource is crucial in the survival of Trash Butler. They require trucks and other
equipment in order to execute their daily operations.
Rare
The same equipment can be bought and used by their competitors, making this resource
not rare in any way.
Inimitable
It is likely and probably that their competition uses the same equipment that Trash Butler
currently uses.
Organizational
This resource isn’t currently exploitable due to the ease of their competitors acquiring the
same equipment that Trash Butler uses.
23
Resource #4: Process Knowledge
Trash Butler’s process knowledge is very important resources for them in order to
conduct daily operations within the front office and out in the field. Having experienced
employees in the front office and effective “butlers” that execute daily activities is key to their
success and growth. Trash Butler’s process knowledge helps them conduct their functions
efficiently which gives them an advantage over competitors that have not yet become efficient in
the industry.
Valuable
This resource is very valuable to their suitability and growth. Without it, Trash Butler
would not be able to survive as a competitive company.
Rare
Trash Butler’s process knowledge is different from their competitors. How they conduct
their daily activities in order to execute their tasks is proprietary to only Trash Butler. This gives
them an advantage over their competitors.
Inimitable
Trash Butler’s process knowledge is inimitable. It cannot be easily duplicated since it is
proprietary information within the company. Competitors have to formulate their own version of
their process knowledge using the resources they have.
Organizational
Trash Butler’s process knowledge is an exploitable resource. Using this resource will
help them gain a competitive advantage in the market.
24
WEAKNESSES
Weakness #1: Small Sales Team
One weakness that can be assessed is within their sales team. With only three sales
personnel to cover all 50 states, they are not able to effectively target their customers in a timely
and continuous manner. They do not have their sales teams strategically placed around their
regions to properly service their existing customers and generate new leads. Furthermore, they
do not have enough sales personnel to effectively cover the regions that they service.
Weakness #2: No Marketing Department
Another weakness is their lack of a formal marketing department. Without a formal
marketing department to assess the current market and be able to effectively market their service,
this leaves them at a disadvantage over competitors that do possess a formal marketing
department. Having a formal marketing department will allow Trash Butler to market to potential
customers using as little marketing dollars as possible.
Weakness #3: Marketing Strategies
Trash Butler’s current marketing strategy has produced little return. They currently use
pay-per-click online and LinkedIn ads that has given them less than 1% response rate. This has
cost them tens of thousands of dollars with little to no success. With spending thousands of
dollars without any success in obtaining valuable leads and contracts, this poses as one of their
biggest weaknesses within the company.
Weakness #4: Lack of Employees
A fourth weakness is their equipment and employees on the operational side of the
company. Currently, they have enough to expand only slightly, but will need more resources at
25
the functional and operational level in order to expand further as time goes on. Without proper
planning for expansion could make them susceptible to missed opportunities and possibly a
decrease in customer satisfaction.
CONCLUSION
Trash Butler, a large waste management company in America, offers waste collection
services with the help of its clean-cut uniformed butlers who pick up trash and recyclables 5
nights a week. These services are offered to both the tenants and the landlords, since inception in
2014. Now you can clearly see that it still seeks to provide its customers with the highest level
of waste management services and recycling collection services.
As part of the organizational structure, Trash Butler has a rigorous hiring process that
seeks to get the best and most dedicated talent. It also shows great concern for its employees by
offering work flexibility. The company embraces transparency such that employees, both at the
corporate level and on the field, can speak their minds and ask questions.
Trash Butlers, LLC bases its success on continuously differentiating itself by providing
customized and tailored services to each client under contract. Tenants benefit from the
arrangement when they get to avoid the hustle of lugging garbage taking it to the dumpster. They
are also assured of a clean building and daily emptying of the trash. The residents and property
owners get their apartments served with quality and valuable amenities which increases the
attractiveness of the property. Trash Butlers LLC has also accrued benefits from this
arrangement through getting a high revenue, securing more customers through interaction,
having a take in decision-making in the industry and getting to contribute to the country’s
economy by offering employment opportunities.
26
Trash Butler has experienced sporadic growth over the years as it continues increasing
the number of customers it serves. Going into the future, the company is expected to increase its
revenue by the industry growth predictions. With the increased revenue and profits reported in
July, Trash Butler is hopeful that it will have positive reports at the end of the year, especially
because of the new clients the company has been gaining from its chief rival, Valet Living
(Trash Butler, LLC). It is said that property managers, homeowners and tenants prefer Trash
Butler’s 8-10pm schedule because it ensures that there is no trash lying around during business
hours and that the butlers are not in the apartments too late (Trash Butler: Customer Reviews).
unlike Valet Living whose workers stay more extended hours.
SW Table
Strengths
Employees
Customers
Equipment
Process Knowledge
Weaknesses
Small Sales Team
No Marketing Department
Lack of Equipment
Marketing Strategies
27
Works Cited
1) Website
About Trash Butler. Trash Butler. http://trashbutler.com/about-us/
2) Website
Customer Reviews. Trash Butler. http://trashbutler.com/reviews/
3) Information from website pdf
FreddieMac (2016). Multifamily Outlook 2016.
http://www.freddiemac.com/multifamily/pdf/freddieMac_mf_outlook_2016.pdf
Accessed 8/21/17.
4) Informally published Web document
Nelson, Brent. Copy of Trash Butler. Prezi. January 13, 2014. Retrieved from
https://prezi.com/bjvifwpiwmgi/copy-of-trash-butler/
5) Website
Trash Butler www.trashbutler.com/
6) Informally published Web document
College Hunks. Retrieved October 21, 2017 from https://collegehunksfranchise.com/trashbutler-partnership-gives-college-hunks-hauling-junk-franchise-owners-recurringrevenue-stream/
7) Journal article
Ion, Istudor and Gheorghe, F. Florin. The innovator role of technologies in waste
management towards the sustainable development, Procedia Economics and Finance
8(2014) 420-428.
28
8) Journal article
Morris, Michael H, Earl D. Honeycutt, and Leyland F. Pitt. Business-to-business Marketing: A
Strategic Approach. Thousand Oaks, Calif.: Sage Publications, 2011.
9) Article or chapter in an edited book
Needle, David. Business in Context: An Introduction to Business and Its Environment.
Andover: South-Western Cengage Learning, 2010.
10) Article or chapter in an edited book
Rosanas, Josep M. Decision-making in an Organizational Context: Beyond Economic
Criteria. Houndmills: Palgrave Macmillan, 2013.
11) Informally published Web document
FreddieMac(2016) Multifamily Outlook 2016.
http//www,freddiemac.com/multifamily/pdf/freddieMac mf outlook 2016.pdf
12) Journal article
Ghiani, G., Laganà, D., Manni, E., Musmanno, R., & Vigo, D. (2014). Operations research in
solid waste management: A survey of strategic and tactical issues. Computers &
Operations Research, 44, 22-32.
13) Website
Trash Butler | Doorstep Valet Trash for Apartment Communities. (n.d.). Retrieved October
22, 2017, from http://trashbutler.com/
29
SAP Project
MGT 431
Paper Format Guidelines
1. General Document Guidelines
a)
b)
c)
d)
e)
f)
g)
Margins: One inch on all sides (top, bottom, left, right)
Font Size and Type: 12-pt. Times New Roman font, except for the title page
Line Spacing: Double-space throughout the paper.
Spacing after Punctuation: One space after all punctuation.
Alignment: Flush left (creating uneven right margin)
Paragraph Indentation: 1/2"
Order of Pages: Title Page, Table of Contents, Body, References, Appendixes (if
application)
2. Title Page
a) Paper Title: Uppercase and lowercase letters, centered on the page
b) Other information: authors, group #, and course title/term/section
3. Table of Contents
a)
b)
c)
d)
First level heading: bold, all caps, left aligned
Second level heading: bold, indent of 1/2"
Third level heading (if applicable): italic, indent of 1"
Page numbers
Example:
THE INDUSTRY ENVIRONMENT…………………………...………………................ 3
The Five Forces Analysis………..……......……………………….…...…………….....15
Buyer Power …………………………………….……………………..…………….16
(Note: Table of Contents is not required for Project Plan)
4. Body
a) First level heading: bold, all caps, left aligned
b) Second level heading: bold, left aligned
c) Third level heading (if applicable): italic, left aligned
Example:
THE INDUSTRY ENVIRONMENT
The Five Forces Analysis
Buyer Power
1
SAP Project
MGT 431
5. Text Citations
Source material must be documented in the body of the paper by citing the author(s) and
date(s) of the sources.
a) When the names of the authors of a source are part of the formal structure of the
sentence, the year of publication appears in parentheses following the identification of the
authors
Example: Wirth and Mitchell (1994) found that …
b) When the authors of a source are not part of the formal structure of the sentence, both the
authors and year of publication appear in parentheses.
Example: (Wirth & Mitchell, 1994)
6. References
a) All sources included in the References section must be cited in the body of the paper (and
all sources cited in the paper must be included in the References section).
b) First line is flush-left, subsequent lines are indented 1/2"
Examples of sources:
1) Journal article
Koenig, H. G. (1990). Research on religion and mental health in later life: A review and
commentary. Journal of Geriatric Psychiatry, 23, 23-53.
2) Book
Paloutzian, R. F. (1996). Invitation to the psychology of religion (2nd ed.). Boston, MA:
Allyn and Bacon.
3) Article or chapter in an edited book
Shea, J. D. (1992). Religion and sexual adjustment. In J. F. Schumaker (Ed.), Religion
and mental health (pp. 70-84). New York, NY: Oxford University Press.
4) Informally published Web document
Degelman, D. (2009). APA style essentials. Retrieved from
http://www.vanguard.edu/faculty/ddegelman/index.aspx?doc_id=796
5) Informally published Web document (no date)
Nielsen, M. E. (n.d.). Notable people in psychology of religion. Retrieved from
http://www.psywww.com/psyrelig/psyrelpr.htm
2
SAP Project
MGT 431
7. Quotations
When a direct quotation is used, always include the author, year, and page number as part of
the citation.
1) A quotation of fewer than 40 words should be enclosed in double quotation marks and
should be incorporated into the formal structure of the sentence.
Example: Patients receiving prayer had “less congestive heart failure, required less
diuretic and antibiotic therapy, had fewer episodes of pneumonia, had fewer cardiac
arrests, and were less frequently intubated and ventilated” (Byrd, 1988, p. 829).
2) A lengthier quotation of 40 or more words should appear (without quotation marks) apart
from the surrounding text, in block format, with each line indented 1/2".
8. Footnotes:
Content footnotes are occasionally used to support substantive information in the text. A
content footnote will be placed at the bottom of the page on which it is discussed. Indent the
first line of each footnote 1/2" and number the footnotes (slightly above the line) as they are
identified in the text.
9. Appendixes:
A common use of appendixes is to present unpublished tests, stimulus materials,
questionnaire, or to show the data collected by the author.
1) Each Appendix begins on a separate page.
2) If there is only one appendix, “Appendix” is centered on the first line. If there is more
than one appendix, use Appendix A (or B or C, etc.).
3) Indent the first line 1/2".
3
Study Guide
MGT 431: Practical Strategic Assessment (Fall 2017)
Dr. Chuanyin Xie
Table of Contents
Part One: Overview
1. Achieving Course Success ………………………………………………………………. 1
2. Course Roadmap ...………………………………………………………………………. 2
3. Grading …………………………………………………………………………………… 3
Part Two: Achieving Success in Individual Assignments
1. Attendance and Participation …………………………………………………………….. 4
2. Current Event Presentation …………………………………………………………......... 4
3. Case Analysis .……………………………………………………………………………..6
4. Exam .……………… ……………………………………………………………………. 6
5. ETS Exam …………………………………………………………………………………7
6. SAP Reflection …………………………………………………………………………… 7
Part Three: Guidelines for SAP Project
1. General Description ……………………………………………………………………… 8
2. Project Plan …………………………………………………………………………......... 9
3. External Analysis ………………………………………………………………………… 10
4. Internal Analysis ……………………………………………………………………......... 12
5. Strategy Recommendations ……………………………………………………………… 14
6. Class Presentation ………………………………………………………………………... 16
7. Final Paper ……………………………………………………………………………….. 17
8. SAP Competition ………………………………………………………………………… 18
9. Peer Evaluation …………………………………………………………………………... 19
Part One: Overview
This Study Guide is a supplement to the Course Syllabus. Please follow the Study Guide to learn,
to do the assignments, to improve, and finally to earn a good grade! The Course Syllabus and
Study Guide provide clear directions to everything in this class!
(Remember: bring the Study Guide to each class meeting)
1. Achieving Course Success
Interactions/Collaboration
− Interaction with the professor
− Interaction with the client (SAP)
− Collaboration with teammates (SAP)
Reflection
− Concepts and
frameworks
− Class discussion and
exercises
− Feedback from the
professor
Reflecting backward to move forward!
Course
Success
Utilizing Resources
− Course materials
− Websites (SAP)
− Library resources (SAP)
− Client meetings (SAP)
Active Involvement
− Class participation
− Individual contributions (SAP)
Note: As your professor, I am a key and reliable resource you can and should use! The more you
use this resource, the more likely you can achieve success!
1
2. Course Road Map
External Environment
(O/T)
• Industry environment
− Industry definition/boundary and three players
− Industry competitive forces
− Industry segments (Strategic Group; Customer
Segmentation)
− Industry life cycle
• General environment
Corporate-Level Strategy (determining business scope)
− Creating new businesses in different industries/markets (diversification and vertical integration)
− Managing existing businesses
Strategic
Leadership
Business-Level Strategy (surviving/winning competition)
− Managing a business in a particular industry/market
− Creating competitive advantage (differentiation; cost leadership)
Strategy
Functional-Level Strategy (performing functional activities)
− Improving effectiveness of functional activities
− Contributing to differentiation or low cost (efficiency, quality, customer responsiveness, and innovation)
Internal Environment
(S/W)
Implementation
− Organizational structure
− Organizational process
− Organizational control
− Resource allocation
• Goals, Value/Culture, Strategy, and Performance
• Resources, capabilities, and core competencies
• Activities
– Firm value chain
• Organizational structure
A winning strategy must answer three basic questions:
1. Who are our customers?
2. How to satisfy their needs?
3. How to overcome competition?
2
3. Grading
Your grade will generally be based on the criteria established in the Syllabus. However, special
considerations will be given if you work hard AND achieve great success in important assignments.
The following are the incentives and special considerations for ALL students:
1) If your final grade is 1 point away from the next level grade, you are eligible to get the next
level grade, given that:
a) You attend class regularly
b) You make good contributions to the Project
c) You complete all assignments including both graded and not graded (e.g., peer evaluations
and course survey)
2) Exam
The Exam is the most important assignment. If your performance in the SAP Project or the
Case Analysis is not satisfactory, you can use the Exam to greatly improve your overall grade
in this class. It is a great opportunity for everybody! In order to help you achieve success in the
Exam, I provide the following benefits/incentives:
a) 10% of multiple choice questions will come from the self-assessments.
b) A 5-extra-point opportunity will be offered, so you can earn up to 105.
c) In addition, you have a chance to receive the following benefit: if your final grade is 2
points away from the next level grade, you are eligible to get the next level grade, given
that:
• Your Exam grade is 100 or above, OR
• You earn the highest grade in my two MGT 431 sections (E and G) (if no one earns 100
or above)
3) Group Project
The SAP project is complex because individual members cannot control the group performance.
It is unfair if hardworking members are penalized because of insufficient contributions of other
members. Therefore, I have the following policy: An unsuccessful group project will not
prevent you from earning a high grade if the following two conditions are met:
a) You are able to argue convincingly that your group’s low performance is not your fault.
You need to provide the following evidence: your high commitment to the project and your
high quality contributions.
b) You are a high performer on individual assignments, particularly the Case Analysis and the
Exam. Your great job on the individual assignments can provide further support to your
argument: the unsuccessful group project is not your fault.
Whether or not you are in a good group, you always have a chance to earn a high grade.
3
Part Two: Achieving Success in Individual Assignments
1. Attendance and Participation
1) Attendance (70%)
You can have two unexcused absences without penalties. In addition, you can also have two
excused absences without penalties. Excused absences are defined as those related to important
personal, family, and medical issues that can be supported with appropriate documentation.
Late arrivals/early departures should be avoided because they necessarily limit your class
participation and contribution. In addition, these behaviors may affect other students’ learning.
However, you can have two late arrivals/early departures. In addition, you can have two more
late arrivals/early departures with pre-approval.
2) Participation (30%)
To earn the Participation points, you need to attend class and prepare for and participate in
class activities actively. The instructor will record your participation performance (Quality and
Quantity) on a daily basis. Participation includes answering the instructor’s questions,
answering other students’ questions, raising your own questions, and making your comments
throughout the semester.
My Expectation: Try to earn at least 90 on Attendance and Participation.
2. Current Event Presentation
1) Purpose
Current event presentation gives the presenter and all other students a chance to review the
concepts learned before. This assignment can help your Project and Exam.
2) Concepts for Current Event Presentation
Topics
Concepts for Current Event Presentation
Topic 1
Business definition (1-9)
Scenario planning (1-11)
Deliberate vs. emergent strategy (1-10)
Topic 2
Competitor analysis (2-6)
Customer analysis (2-6)
Five/six forces analysis (2-7)
Strategic groups (2-16)
Industry life cycle analysis (2-18/19/20/21)
The macro environment (2-22)
Topic 3
Resources and capabilities (3-4/5/6)
The firm value chain (3-8)
Organizational Structure: Three components
(3-18)
The VRIO framework (3-7)
Value creation model (3-12/13)
Topic 4
Differentiation and low cost trade-off (4-6)
Value innovation(4-7)
Generic business-level strategies (4-8)
Topic 5
Functions and Efficiency (5-7)
Functions and Quality (5-8/9)
Functions and Innovations (5-10)
Functions and Customer Responsiveness (5-11)
4
Strategy in fragmented industry (6-4)
Strategy for crossing chasm (6-11)
Strategy for managing industry rivalry (6-14)
Related diversification and benefits (7-6)
Entering new industries (7-10/11/12)
Strategy in mature industry (6-12)
Strategy for deterring entry of rivals (6-13)
Strategy in declining industry (6-16)
Unrelated diversification and benefits (7-7)
Topic 8
Vertical integration: Benefits and problems
(8-4)
Alternatives to vertical integration (8-5)
Topic 9
Choosing a global strategy (9-4)
Entry Modes: advantages and disadvantages (9-9)
Topic 10
Methods of control (10-6)
Implementing cost leadership strategy (10-7)
Implementing differentiation strategy (10-8)
Implementing corporate-level strategy (10-9)
Topic 6
Topic 7
3) Tips for Success
•
•
Identify a useful article is key to success!
See an example presentation on Bb
4) Grading Criteria
Grading Criteria
Explanation
1. Article relevance
(10%)
1.1 Identify an article which is “current” (dated after 1/1/2017), related
to business management, and published in a popular magazine or
newspaper.
(Note: If the article does not include sufficient information, you may
use additional articles of similar topic)
2. Concept
application (60%)
2.1 Use two different course concepts to explain the main issues/events
in the article and justifying your arguments.
2.2 Establish links between the article and course concepts: the
concepts and the article information should be shown on the slides.
(Note: concepts should be chosen from the table below. You should
choose concepts which have been covered in previous weeks. Each
concept can only be used by one student)
3. Documents (10%)
3.1 Prepare 5-6 slides. Among them, one should be used to summarize
the main ideas of the article(s) and two or more slides to address the
course concepts (one slide for one concept).
3.2 Send your slides two hours before class
3.3 Hand in your article(s) in class
4. Presentation
(20%)
4.1 Present your ideas concisely, clearly, and persuasively.
My Expectation: Try to earn at least 90 for your current event.
5
3. Case Analysis (Individual)
1) Descriptions
This is an open-book case exam. You can use any materials including the textbook, slides,
study guide and your notes when working on the exam. Instructions:
• Your answers to all questions should be based on the case and course concepts, if no further
information is provided.
• You are expected to answer all questions directly and as briefly as possible.
• When you use a course concept, do not explain it. Do not repeat the definition. Instead, you
should apply the concept directly.
There are no “standard” answers (i.e., no unique, correct answers). Your answers will not be
treated as “right” or “wrong”. Instead, I will rate your answers as “strong”, “moderately strong”,
“weak”, or “irrelevant”. You will not earn “zero” even if your answer is irrelevant.
2) Grading Criteria
Rating
Explanation
Strong (5)
The link between the answer and the question is direct,
clear, and justified well.
Moderately Strong (4)
The link between the answer and the question exists
and the answer is justified to a certain degree.
Weak (3)
The link between the answer and the question exists,
but the answer is not justified.
Irrelevant (1)
The answer is not relevant to the question.
My Expectation: Try to earn at least 75 for Case Analysis.
4. Exam
There will be 60 multiple choice questions and 3 essay/short case questions. Multiple choice
questions count 80% of your exam grade and essay/short case questions count 20% of your exam
grade.
ALL questions will directly or indirectly come from class discussions. The concepts and
frameworks tested will NOT go beyond the Slides. Answers to all questions also directly or
indirectly come from class discussions!
Tips for achieving success in the Exam:
• Attend class regularly
• Take all class discussions (including the current event) seriously: prepare, participate, take
notes if necessary, and reflect. If you miss a class, you should get notes from other students.
• Read the Slides at least 3 times before the exam
• Review self-assessment questions (10% of multiple choice questions will come from the selfassessments)
My expectation: Try to earn at least 80 on the Exam.
6
5. ETS Exam
All MGT 431 students are required to take the business literacy exam (ETS). The exam contains
120 multiple-choice items, some of which are grouped in sets and based on such materials as
diagrams, charts and tables of data. The questions are designed to measure a graduating business
student’s knowledge and ability to apply significant facts, concepts, theories and analytical
methods. The questions represent a wide range of difficulty, and the exam attempts to cover both
depth and breadth in assessing students’ levels of achievement.
All students will be enrolled in a course on Blackboard to sign up to take the exam later in the
semester. This site will include more information about the exam. You must sign up for an exam
time outside of class. If you fail to show up to the exam, you will receive 0 points. There are no
make-ups for this exam since there will be multiple times to take the exam.
Points will be earned based on what quartile a student’s performance falls into:
99th percentile to the 75th percentile earn 100% of the 5%;
74th percentile to the 50th percentile earn 75% of the 5%;
49th percentile to the 25th percentile earn 50% of the 5%
24th percentile to the 11 percentile earn 25% of the 5%.
Students earning below the 10th percentile will earn 0 points of the 5%.
6. SAP Reflection
Each group member will write a short essay (one paragraph not exceeding 10 sentences) reflecting
on what you did and learned from the SAP project. If you participated in the project actively, you
should be able to complete this assignment easily.
My Expectation: You should earn at least 85 on SAP Reflection.
7
Part Three: Guidelines for SAP Project
1. General Descriptions
The SAP project has five written components, plus an oral presentation. If your group is selected as
a finalist, you will present your work to the Client. The success of the project will depend on
individual contributions and group collaboration.
1) Basic tasks for the Project
You will collect data, analyze data, and draw conclusions based on data analysis. Use
theories/frameworks to guide your work; use data/evidence to support your argument.
•
•
•
Data collection: you will collect data (primary and/or secondary) related to the Client’s
external and internal environments
Data analysis: you will interpret and make sense of the data
Conclusion: you will present answers/solutions to the project questions
2) Grading
I will grade your component papers based on established grading criteria. Group scores (100point scale) will be assigned on the basis of 2.5-point increment, e.g., 80, 82.5, 85, 87.5, 90,
92.5, 95, etc. You can treat 82.5 as a B, 87.5 as an AB, and 92.5 as an A.
3) The role of group leader
The group leader will be responsible for the following tasks:
• Arrange group meetings
• Assign tasks to group members (including editing or rewriting)
• Monitor progress and ensure all component papers will meet the deadlines.
Given the extra work, the group leader does not have to collect data for two component papers:
External Analysis and Internal Analysis. He/she can focus on synthesizing, integrating, and
drawing conclusions.
4) Professional writing
MGT 431 is a writing intensive class. All your papers must meet the writing requirement.
Points will be deducted if there are misspellings, grammatical errors, and formatting problems.
Each error or formatting problem will lead to deduction of 0.5 point. If the number of errors
and formatting problems reaches 10 or above, your paper will be returned and grade will not be
assigned.
It is suggested that you make use of the Saunders Writing Center located in Plant Hall #323 for
help with the organization and editing of your paper.
5) Paper submission:
• Final Paper: both a hard copy and an electronic copy (WORD format) through Turnitin on
Blackboard
• All other component papers: electronic copy (WORD format) through Turnitin on
Blackboard
8
2. Project Plan
1) Tips for Success:
• Follow the format of the Example Project Plan.
• Use information from SAP Case Study, Kick-Off meeting, and the Syllabus.
2) Grading Criteria
Grading Criteria
1. Company description (15%)
2. Project goals (15%)
3. Project structure (20%)
4. Group member
responsibilities (20%)
5. Project timeline (20%)
6. Professional writing (10%)
Explanation
1.1 Describing the company and identifying key issues
the company is facing
2.1 Identifying the Client goals for the SAP project
3.1 Explaining the structure of the whole project, defining
the tasks for each section, and clarifying the
deliverables
4.1 Establishing group communications and meetings
4.2 Electing group leader
5.1 Establishing a tentative timeline for completion of
tasks
6.1 Relevant, concise and clear
6.2 Free of grammar and spelling errors
6.3 Including sections and headings, and page numbers
6.4 APA format (see Instructions on Bb)
My Expectation: Try to earn at least 90 on Project Plan. It is very easy!
9
3. External Analysis
1) Purpose: Identify opportunities and threats in the Client’s external environment.
2) Example Paper Outline
INTRODUCTION
(Briefly discuss the purpose of the external analysis and make a summary: how you will
achieve the purpose. The introductory section should be less than one page)
THE INDUSTRY ENVIRONMENT
The Industry Context
(Define the industry and discuss broad industry issues, including the main industry
products/services, industry size, growth rate, life cycle stage, trends, etc. This section should
not exceed 3 pages)
Competitor Analysis
(Choose and analyze 3-5 most important competitors and justify your choices. Divide this
section into 3-5 subsections and use competitors’ names as titles)
Customer Analysis
(Identify and analyze most important customer groups (existing and/or potential). Divide this
section based on customer groups)
Supplier Analysis
(Identify and analyze most important supplier groups. Divide this section based on supplier
groups)
The Industry Forces Analysis
(Divide this section into 5 or 6 subsections and use each force as title)
Strategic Group Analysis (optional)
THE MACRO ENVIRONMENT
(Divide this section into 6 subsections and use each component as title)
CONCLUSIONS: OPPORTUNITIES AND THREATS
(The conclusion section should be divided into two subsections: opportunities and threats)
Opportunities
(Name each opportunity. Use 1-2 paragraphs to explain/justify each opportunity)
Threats
(Name each threat. Use 1-2 paragraphs to explain/justify each threat)
The OT Table
Opportunities
Threats
10
3) Tips for Success
• Do not explain or repeat course concepts. Apply them directly. For example, when you
analyze the impact of economy on the business, do not explain the importance of economy.
Instead, you should start from collecting economic data and then interpret the data and draw
conclusions: how the economy would affect the business or the industry.
• Define the industry and perform industry analysis first and then perform the macro
environment analysis (so that you can establish connections between the general
environment factors and the industry)
• Customer analysis and competitor analysis are most important!
• The quality of external analysis affects the quality of your strategy recommendations. In
order to recommend great strategies, you must identify “great” opportunities and threats.
• Do not lose points on Professional Writing and Paper Structure
4) Grading Criteria
Grading Criteria
1. Sufficient data (30%)
2. Thorough analysis
(30%)
3. Goal accomplishment
(30%)
4. Professional writing
and paper structure
(10%)
Explanation
1.1 Collecting data (primary and/or secondary) needed for a
comprehensive analysis of the external environment
1.2 Data collected should be relevant
2.1 Interpreting the data in a reasonable/meaningful way
2.2 Using concepts correctly
3.1 Identifying a set of most important opportunities and threats
3.2 Justifying the opportunities and threats
3.3 Opportunities and threats should be specific.
3.4 The number of opportunities should be 4-6; the number of
threats should be 4-6
3.5 Using a chart/table to summarize the opportunities and
threats in the end
4.1 Professional writing
4.1.1 Relevant, concise and clear; avoiding overlaps
4.1.2 Free of grammar and spelling errors
4.1.3 APA format (see Instructions on Bb)
4.2 Paper structure
4.2.1 Including cover page, table of contents, sections and
headings, page numbers, references, etc.
4.2.2 Body of the paper: 20-35 pages, double-spaced (If the
body of the paper is less than 20 pages long, 30 points
will be deducted)
My Expectation: Try to earn at least 80 on the External Analysis
11
4. Internal Analysis
1) Purpose: Identify the Client’s internal strengths and weaknesses
2) Example paper outline
INTRODUCTION
(Briefly discuss the purpose of the internal analysis and make a summary: how you will achieve
the purpose. The introductory section should be less than one page)
THE INTERNAL ENVIRONMENT
(In this major section, you will collect data on the Client’s internal environment, including the
organizational context, human resources management, technology, operations, and marketing
and customer services)
The Organizational Context
(Discuss broad organizational issues, including the firm history, mission/vision, goals,
culture, overall strategy, organizational structure, and financial performance)
Human Resources Management
Technology
Operations
Marketing and Customer Services
ASSESSMENT OF RESOURCES/CAPABILITIES AND STRENGTHS
(In this section, you will summarize important resources/capabilities and then use the VRIO
model to assess them in order to identify strengths.)
WEAKNESSES
Weaknesses can be assessed based on the following questions:
• Are the client’s key resources/capabilities not as good as its main competitors’?
• Are the client’s important activities less effective or efficient than its main competitors’?
• Does the client lack important resources/capabilities/activities that are necessary for
achieving its goals?
• Is the client’s organizational structure dysfunctional?
CONCLUSION
(Just put the SW table in the conclusion section. Do not make further explanations about
strengths and weaknesses.
The SW Table
Strengths
Weaknesses
12
3) Tips for Success
• Do not explain course concepts. You should apply them directly in the Client’s context.
• Do not simply present data without interpretation
• Strengths and weaknesses are relative to competitors
• The quality of internal analysis affects the quality of your strategy recommendations. In
order to recommend great strategies, you must identify “great” strengths and weaknesses.
• Do not lose points on Professional Writing and Paper Structure
4) Grading Criteria
Grading Criteria
1. Sufficient data (40%)
2. Thorough analysis
(20%)
3. Goal accomplishment
(30%)
4. Professional writing
and paper structure
(10%)
Explanation
1.1 Collecting data (primary and/or secondary) needed for a
comprehensive analysis of the internal environment
1.2 Data collected should be relevant
2.1 Interpreting the data in a reasonable/meaningful way
2.2 Using concepts correctly
3.1 Identifying a set of most important strengths and weaknesses
3.2 Justifying the strengths and weaknesses
3.3 Strengths and weaknesses should be specific.
3.4 The number of strengths should be 4-6; the number of
weaknesses should be 4-6
3.5 Using a chart/table to summarize the strengths and
weaknesses in the end
4.1 Professional writing
4.1.1 Relevant, concise and clear; avoiding overlaps
4.1.2 Free of grammar and spelling errors
4.1.3 APA format (see Instructions on Bb)
4.2 Paper structure
4.2.1 Including cover page, table of contents, sections and
headings, page numbers, references, etc.
4.2.2 Body of the paper: 20-35 pages, double-spaced (If the
body of your paper is less than 20 pages long, 30 points
will be deducted)
My expectation: Try to earn at least 85 for the Internal Analysis
13
5. Strategy Recommendations
1) Purpose: Recommend strategies to address the Project goals.
2) Example paper outline
The SWOT
(If some SWOT parts are new (i.e., not included in your external and/or internal analysis), you
need to provide explanations)
RECOMMENDATION #1 ________
Formulation
Justification
Paragraph 1 (Explain HOW you developed this recommendation. Establish a connection with
the SWOT: briefly discuss which O or T (the external environment) and which S or W (the
internal environment) support the recommendation.
Paragraph 2 (Explain WHY you developed this recommendation. Establish a connection with
the goal of the project)
Strategic importance
(Explain why this recommendation is a strategy)
Implementation
Action Plan
(Describe the recommendation in operational terms. Provide an example program/design,
depending on the recommendation)
Implementation Process and Timeline
(Discuss steps/procedures, costs, time needed, etc.)
Implementability
(Prove this recommendation/action plan will work effectively for the Client. You need to
collect data. If the recommendation needs significant investment, it is necessary to perform a
financial feasibility analysis)
RECOMMENDATION #2 ________
……
3) Tips for Success
• Strategy development is often a “back and forth” process. Your external and internal
analyses can lead to many opportunities, threats, strengths, and weaknesses (SWOT). As a
result, you can recommend many strategies based on the SWOT framework. However, it is
likely that not all recommendations are implementable. If you cannot find data/evidence to
support a specific recommendation, you should consider other recommendations.
• You are supposed to provide solutions to the Client. Do not let the Client find solutions.
Therefore, DO NOT recommend the Client perform an analysis, do market research or
survey, find a manufacturer, etc.
• Avoid using broad programs (e.g., TQM, Six Sigma, MBO, etc.) as recommendations. It is
difficult to collect data to justify them.
14
•
•
Avoid using a theory/framework/model as a recommendation.
Do not lose points on Professional Writing and Paper Structure
4) Grading Criteria
Grading Criteria
1. Formulation
(30%)
2. Implementation
(30%)
3. Implementability
(20%)
4. Strategic
Importance (10%)
5. Professional
writing (10%)
Explanation
1.1 Presenting the SWOT in the beginning
1.2 Establishing a link between each recommendation and the
SWOT (recommendation is a fit between the external
environment (O or T) and the internal environment (S or W))
1.3 Recommendations should be specific.
1.4 Recommendations should be relevant to the project goals
1.5 Recommendations should not be goal-related suggestions (e.g.,
vision and mission).
1.6 One member should develop one recommendation. Overlap
should be avoided. If two recommendations address the same
issue/factor/area, they will be treated as one recommendation.
(Note: If a recommendation repeats the Client’s existing practice or
program, it will not be treated as a recommendation)
2.1 Developing an action plan for each recommendation
2.2 Developing an implementation process/procedure and a timeline
for each recommendation
3.1 Recommendations/action plans should be implementable/
applicable in the client’s context (you need to prove your
recommendation will work effectively for the Client. If your
recommendation involves significant investments, you need to
perform a financial feasibility analysis).
4.1 Recommendations should be strategies, either corporate level or
business level
4.2 At least one recommendation should help the Client gain
sustainable competitive advantage (not easily imitable)
5.1 Professional writing
5.1.1 Relevant, concise and clear
5.1.2 Free of grammar and spelling errors
5.1.3 APA format (see Instructions on Bb)
5.2 Paper structure
5.2.1 Including cover page, table of contents, sections and
headings, page numbers, references, etc.
5.2.2 Each recommendation should be at least 4 pages long, but
should not exceed 8 pages (double-spaced). If a
recommendation is less than 4 pages long, 10 points will be
deducted
My Expectation: Try to earn at least 80 for the Recommendations paper.
15
6. Class Presentation
Grading Criteria
1. The SWOT (20%)
2. Recommendations (50%)
Explanation
1.1 Discussing the Client’s most important external
opportunities/threats and internal strengths/weaknesses.
2.1 Explaining and justifying your recommendations.
(Note: Each group can choose the best 4 recommendations
to present)
3. Communication (20%)
3.1 Presenting your ideas and answering questions
concisely, clearly, and persuasively.
4. Documents (10%)
4.1 Prepare 15-25 slides
4.2 Send your slides two hours before class
Note: All group members must be physically present. If a member fails to show up, he/she
will not earn points from Class Presentation.
My Expectation: Try to earn at least 90 for Class Presentation.
16
7. SAP Final Paper
Combine all your component papers (including Project Plan, External Analysis, Internal Analysis,
and Strategy Recommendations) to form SAP Final Paper. You have a chance to improve all your
component papers based on my feedback. Make corrections, additions, or deletions as needed.
Your Final Paper must be in a format that can be presented to the Client, that is, goal-relevant,
internally coherent, and professionally written.
Your SAP Final Paper grade will be weighted average of all component papers, given that:
1) Component papers are coherently linked
2) The Final Paper is professionally written.
Submission: hard copy and electronic copy.
Tips for success: The quality of component papers can significantly affect the internal coherency of
the whole paper.
My Expectation: Try to earn at least 85 for the Final Paper
17
8. SAP Competition
1) General description
Academic success (your grade) and competition are separate. If your group is not selected for
the client presentation, this does NOT have any negative impact on your grade. If your group is
selected and win the competition, you may not earn extra credit for two reasons:
a) First, under many circumstances, two or more teams are close, but only one team has a
chance to present to the Client. If the selected team is given extra credit, it is unfair to other
teams.
b) Second, the requirements for academic success and competition are not the same. For the
competition, the Client has the final say. Very often, the Client picked the winner because
of only one or two recommendations. It is hard to establish a connection between the one or
two recommendations and academic success.
However, if your group wins the competition or secures a second place, you earn some pocket
money. More importantly, you have an opportunity to polish your resume!
Achieving academic success is relatively easy. If you follow the instructions, you will succeed,
so it is more predictable. Winning competition is less predictable. Only one team can finally be
the winner. In addition, we do not always know how the Client will pick a winner. Therefore, I
strongly recommend you put more efforts on academic success. Though competition sounds
exciting, it is out of our control.
2) Selection of finalists
The selection of the finalists is largely based on the recommendations, but great
recommendations result from great external and internal analyses. There are three basic
requirements for the finalists:
a) Recommendations are supported by solid data (primary and/or secondary). You need to
prove your recommendations will work effectively for the client.
b) Recommendations are creative. They must NOT be strategies the client has already
implemented.
c) Recommendations can be used to solve the client’s important problems (exploiting
opportunities, neutralizing threats, taking advantage of strengths, or overcoming
weaknesses). The client values the following recommendations: able to solve immediate
problems in an efficient way; suggesting opportunities the client has never known; and
addressing potential problems the client has not found.
3) Selection process
a) All groups will do presentations. One or more MGT 431 professors will be invited to
observe your presentation, depending on their availability.
b) After presentations, professors will meet to discuss all groups’ recommendations.
• If other professors are unable to attend your presentation, they will evaluate your
recommendations based on your slides. Therefore, designing good slides is very
important.
18
9. Peer Evaluation
You will do two peer evaluations: 1) CATME online evaluation and 2) paper version evaluation. The
paper evaluation form is as follows:
SAP Peer Evaluation Form
Section ______
Group ______
All responses will be entirely confidential and will be seen only by the instructor. SAP Peer Evaluation
is due on Wednesday midnight, 12/13. All students are required to complete the peer evaluation form.
Please submit the completed form via Bb turnitin by the due date.
1. Please evaluate each group member (including yourself) on a 5-POINT SCALE (5=highest) using the
criteria in the left column.
Self
(name)
Member 1
Member 2
Member 3
Member 4
(name)
(name)
(name)
(name)
Commitment (20%)
− Group meeting
attendance
(5%)
− Preparation for
meetings
(5%)
− Cooperation and
communication
(5%)
− Met assigned
deadlines
(5%)
Contribution (80%)
− Quantity
(30%)
− Quality
(50%)
(Please see guidelines next page)
19
2. Please explain your evaluation above (all members) in detail. Evidence is needed to support your
ratings.
Self:
(member 1):
(member 2):
(member 3):
(member 4):
(member 5):
3. Other comments
Guidelines for Peer Evaluation
1. Commitment
1) Group meeting attendance
• Did the member attend all group meetings led by the group leader?
• Did the member attend all workshops led by the professor?
• Did the member attend all client meetings?
• Did the member often arrive late or leave early?
2) Preparation for meetings
• Did the member prepare well for each meeting led by the group leader?
• Did the member prepare well for each workshop led by the professor?
• Did the member bring questions to each meeting?
3) Cooperation and communication
• Did the member show willingness to cooperate?
• Did the member place group interest above personal interest?
• Did the member respond to group issues effectively and in a timely manner?
4) Met assigned deadlines
• Did the member often meet the assigned deadlines?
• Did the member give good reasons when he/she did not meet assigned deadlines?
2. Contribution
1) Quantity
• Did the member make contributions to all component papers?
• Did the member make contributions to further improvements of all component papers?
• Did the member participate in completing the final paper?
20
•
•
If the member did not make contributions to one component paper, did he/she make
additional contributions to other component papers?
For each component paper, did the member make sufficient contributions?
2) Quality
• Did the member’s contributions meet the grading criteria well?
• Did the member’s contributions often need a lot of editing?
21
MGT 431 Case Study Competition
The University of Tampa
Fall 2017
Trash Butler, LLC
All the information in this case is confidential.
Students and faculty in MGT 431 are bound by the non-disclosure and non-compete agreement
Introduction
Trash ButlerTM was founded in 2014 in Tampa, FL as a company that sells services to
apartment buildings and owners of other multi-family housing complexes. The service is
sold to the owners or landlords as an amenity that is provided to the residents. On a regular
schedule, Trash Butler provides door-to-door collection of trash and recycling from all the
residents in the complex. Shared dumpsters are also emptied and cleaned. Instead of taking
their trash to the dumpster, residents can leave it outside their doors for regular collection.
Trash Butler provides a 13-gallon plastic trash can for each resident.
The company has about 75 “butlers” who are responsible for servicing the property or
properties in their territory. Fifteen employees in the corporate headquarters near Tampa
International Airport handle the sales, marketing, HR, accounting, and finance functions.
Since its founding, the company has grown to annual revenue of about $3 million by serving
customers in 25 states. See Appendix 1 for full financial statements.
The Multi-Family Housing Industry
The target market for Trash Butlers is large multifamily buildings that are either renteroccupied (like the typical apartment complex) or owner-occupied (like a condominium or
townhouse building). Figure 1 illustrates the typical distribution of housing choices made
by renters and owners (JCHS, 2013:4). Owner-occupied housing is usually in the form of a
single-family detached house while renters slightly prefer large multifamily complexes
instead of detached single-family homes.
MGT 431 – Fall 2017
1
According to the National Multifamily Housing Council, there are about 44,000 large
apartment buildings (i.e. complexes with 100 or more units) in the USA. Collectively, they
include about 9 million apartment units, which is about 43% of all apartment units in the
country. See Table 1.
Figure 1:
Housing Choices in USA (2013)
Table 1:
Distribution of Apartments by Size of Property
Number of Rental
Units on Property
Number of
Properties
% of Total Number of % of Total
Properties Apartments Apartments
2 to 4
1,417,781
71%
3,700,716
17%
5 to 9
321,600
16%
2,029,033
10%
10 to 24
116,262
6%
1,796,042
8%
25 to 49
57,712
3%
2,059,035
10%
50 to 99
37,460
2%
2,579,204
12%
100 or more
44,097
2%
9,085,308
43%
2 or more
1,994,912
100%
21,249,337
100%
5 or more
577,131
29%
17,548,621
83%
Source: http://www.nmhc.org/Content.aspx?id=11464
MGT 431 – Fall 2017
2
Since the recession of 2008, multi-family construction has rebounded strongly. During
2009, the industry started construction on the fewest number of housing units anytime in the
last 35 years. Two years later, during 2011, the fewest number of completed units became
available since 1993. By 2013, the industry had returned to its pre-recession average
construction activity. That year, about 300,000 units were under construction in the US.
See Figure 2 for a summary (FreddieMac, 2016).
Figure 2:
Multi-family Housing Construction in USA
The largest competitor in the industry is Valet Living. It is also headquartered in Tampa
but is much older and larger than Trash Butler. Valet Living was founded in 1995 under the
name Valet Trash, but recently changed its
name to reflect its broader range of services.
It currently serves customers in 35 states and
has contracts with apartment complexes that
contain about 900,000 units nationwide. It is
privately held and received private equity
financing from Ares in 2015. According to the Association of Corporate Counsel (2017), it
has total 400 full-time employees, 3000 independent contractors, and revenue exceeding
$100 million. Plans call for revenue to triple in the next few years.
MGT 431 – Fall 2017
3
Strategy of Trash Butler
Trash Butler serves customers in 25 US states. See Figure 3. Its strategy has been to
differentiate itself by providing personalized and tailored service to each property under
contract. Many of its contracts have come from former customers of Valet Living who are
looking for higher quality and more responsive service. According to Carey Ann Harness
(accounting manager at Trash Butler):
“Trash Butler hires a dedicated butler to service the property each night but
Valet Living has employees servicing multiple properties at a lower rate and
longer hours. We also service properties from 8-10pm. However, we will
alter the schedule if the client requests it. We have found that the property
managers usually like the 8-10pm schedule. Trash is not out during business
hours, and our butlers are not there too late which might be to disturbing
residents.”
Figure 3:
Trash Butler Customer Map
In spite of the company’s rapid growth and success at winning contracts from Valet Living,
the senior managers acknowledge that company performance is slightly below their goals.
The 2017 goal w...
Purchase answer to see full
attachment