Difference Between Social Enterprise And Traditional Business

Running Head: Management
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'Spic & Span'
Management In Practice
2/14/2020

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Contents
Introduction......................................................................................................................................2
Company profile..............................................................................................................................2
Difference between social enterprise and traditional business........................................................2
Strategic management theories........................................................................................................3
External analysis..............................................................................................................................3
PESTEL.......................................................................................................................................3
Porter five forces..........................................................................................................................4
McKinsey 7s model.....................................................................................................................6
Spider gram..................................................................................................................................8
Porter Generic Strategy................................................................................................................8
Internal Analysis..............................................................................................................................9
SWOT..........................................................................................................................................9
VRIO framework.......................................................................................................................10
Dynamic capabilities..................................................................................................................10
Challenges faced in the internal and external environment...........................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13
Appendix........................................................................................................................................16

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Introduction
The report will evaluate the issues which were found by the company Spic and Span by
analyzing the internal and external environment. In the internal environment, PESTEL, Porter 5
forces, Spidergarm, VUCA, etc. will be stated. In analyzing the internal environment of the
company SWOT, dynamic capabilities will be evaluated.
Company profile
The company provides the services of cleaning the households in the country United States. The
company was introduced in 1933 and it is the brand marketed by KIK custom products Inc. The
company has more than 50 staff and their workers belongs to the different categories like a
person with disabilities, ex-offenders, displaced workers, etc. (Benjamin, 2017). The company
was founded by Benjamin Chua and he hired the people for the housekeeping who are retrenched
workers. The major focus of the company is to do good for society and to hire older workers.
The employees who are difficulty in finding employment, the company offers them the job and
even hired disadvantaged workers. The company also supports the 60 voluntary organization and
they provide stable jobs in the cleaning industry. They also give the training to the employees so
that the white collar field of workers can be mobilized (Aguinis, et al., 2017). The company
earns 90% revenues from the commercial cleaning and due to the cleaning technology also they
have developed more. There were many cleaning solutions that were brought by the company
but still, the company has faced many challenges such as cost, risk and rewards.
Difference between social enterprise and traditional business
The company Spic and Span is the social enterprise company so their functions differ from the
traditional companies. The major focus of social enterprise companies is to do the welfare of the
society and took care of the environmental and social metrics (Eden and Ackermann, 2013). The
traditional business majorly focuses on the financial metrics of the copay and their major focus is
to earn the profits. The social enterprise companies like the Spic and Span do not focus on
earning the profit their major focus is to provide the services to the society whereas the

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traditional companies capture the market by investing and also emerges the technologies to earn
more.
Strategic management theories
There are several strategic management theories which the company Spic and Span can apply.
This theory helps in studying the correlations and helps in taking the level of intelligence.
Strategic management theories help in analyzing the internal and external needs of the company
and also fulfill the requirements which are needed in the company (Simon, et al., 2014). They
give a competitive advantage to the company and maximize their profit. It helps in monitoring,
planning and analyzing the things so that goals and the objectives of the company can be
achieved. Competition theory by Michael porters is used by the company Spic and Span to
explore the environment. With the help of these theories and concepts, the company can
minimize the effect of the adverse changes and conditions in the environment and effective
decisions can be taken.
External analysis
PESTEL
Political: The government brings a high degree of policies which is the biggest reason which
affects the company's profitability. The company has to maintain good quality services and has
to obtain the license (Greco, et al., 2013). They have to maintain the laws of bureaucracy in the
company and if they fail to do that then they have to face certain issues.
Economical: There are many economic factors that affect the company such as economic
recession which declines the buying behavior of the consumer. Due to the higher inflation rates
and interest rates the company gets affected by the market loans (Rauf, 2014). As the company
Spic & Span has taken the loan and cooperated with the Coco mates so they have to face many
financial fluctuations also.
Social: As people are becoming more hygiene and want a healthy environment so this change in
lifestyle gives benefits to the company. As people are demanding more cleaning places so the
brand image of the company increases by meeting the needs of the cleaning quality of the