BUSM4547 - Management in Practice: Spic & Span Analysis

This report provides a comprehensive analysis of Spic & Span, a social enterprise in the cleaning services industry. It examines the company's internal and external environments, utilizing strategic management theories and frameworks such as PESTEL, Porter's Five Forces, McKinsey 7S model, SWOT analysis, VRIO framework, and dynamic capabilities. The report highlights the differences between social enterprises and traditional businesses, and delves into the challenges faced by Spic & Span, including political, economic, social, technological, environmental, and legal factors. It also assesses competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entry within the industry. Furthermore, the analysis covers the company's structure, systems, skills, and shared values, aiming to identify opportunities and threats, and to propose strategic recommendations for the company's future.

Running Head: Management
0
'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

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consumers (Hill, et al., 2014). The social trends in maintaining the lifestyle of the people also
influence the consumers which help the company in increasing their demand for the cleaning.
Technological: In the cleaning services there are various equipments and updated technology
can be used which helps the workers in making the work easier. The productivity in the company
gets enhanced through the advancement in technology and it helps the workers in giving quality
services. The efficiency of the company gets increased due to the technological factors as it helps
in reducing the cost and time and improves the quality services.
Environmental: Due to the environmental factors also the company Spic & Span has to suffer.
In Greece the environmental disaster generally takes place and due to global warming also many
issues had to be faced by the company (Trigeorgis and Reuer, 2017). The good environment only
attracts the customers so these factors focus on corporate social responsibility also.
Legal: There are many legal laws that affect the company Spic & Span on operating their
functions. The rules regarding recruiting the person are different such as cleaners, drug testing,
maids, firing housing cleaners, etc. there are no such rules but for special cases such as fore fire
cleaning or for the drug testing the only specialist is hired. The employment law issues have to
be followed by the company and there should be no discrimination in the employees.
Porter five forces
The competitiveness of the business environment can be understood by using the porter five
forces. The business uses this powerful tool to identify the potential profitability of the strategies
used in this process. The understanding of the forces affects the overall environment and this is
very useful. The strategy of the business is adjusting according to these forces (David, 2016).
The profit and the attractiveness of Spic and Span can be identified by using these forces related
to the Porter. These forces help in managing the competition that occurs in the market. These
forces highly impact the overall business environment of Spic and Span. The company is a
cleanliness company that provides cleaning services in the market.
The Porter forces also include one more force apart from these five forces that are also important
in the business environment. The description of the six forces of porter are discussed below-
Competitive rivalry

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This force is used to analyses the competitors in the overall business environment that affect the
business in a large manner. The quality and the products are compared in this force to analyses
the competitive rivalry. Spic and Span have fewer competitors in the market so this force cannot
impact the business in a proper manner (Hahn, et al., 2013). By this competitive rivalry, the
company feels easier in attracting the customers and also highly impacts the marketing
campaigns. The company cannot affect the competitive rivalry as it has fewer competitors in the
market. The several profits can gain by the company having minimum competition.
Supplier Power
This force includes the power of suppliers that are also essential for the overall business
environment (Bryce, 2017). By this force, the suppliers easily increase their prices. The suppliers
of the Spic and Span also impact the profit of the company as the suppliers change their demand
as per the position and ability of the company. Fe w of the suppliers makes their position strong
and cannot cooperate with the company that highly impacts the profitability of the business.
Buyer Power
Buyers are the customers of the company that demands a lot. The customers need to purchase the
best product or services at a minimum price. This affects the profits of the company in the long
run. The smaller of the customer base makes the bargaining power higher for the customers. This
increases the discount and offers. The large base of the customer provides several benefits as it
decreases the bargaining power of buyers and maintains the sales and production process. By
innovating new products, the customers seek for the discounts and offers.
Threat of substitution
The threat of substitute products and services is also important as it affects the overall profits of
the company. When the new product or service meets similar customer needs in different ways,
it impacts the overall profitability. The Spic and Span needs to tackle the threat of substitution
for improving the profits of the company (Hitt, et al., 2016). The company needs to become
service-oriented rather than product-oriented. The organization needs to understand the core
needs of the customer.
The threat of New Entry

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The new entrants are important in the cleaning company as it brings several innovative ideas in
the organization. The new entrants bring value proposition to the customers and it creates
effective barriers to safeguard its competitive edge. This brings several new standards in the
business organization. Spic and Span get extraordinary profits in the cleaning industry.
Complementary
This is included in the sixth force of the Porter model that sells goods and services that are
compatible with the prefer goods and services of the company. Complementary goods offer more
value to consumers.
McKinsey 7s model
This model is used for proper strategic management in any industry. This model is also used in
the Spic and Span Company to manage the several strategies to maintain the activities in a proper
manner. Every business needs several strategies to increase the growth of the business. Spic and
Span use this model to understand the proper strategic management of the business functions.
McKinsey 7s model is one of the strategic planning tools that provide several benefits to the
organization and it manages the strategies in a proper manner (Hitt, et al., 2016).
All seven strategies improve the overall process of the business. The management of strategies is
too important for any organization and Spic and Span use this mode for the betterment of the
strategies. In this model, the seven essential elements of the company are included that are the
structure, strategy, systems, style, staff, skills and all these elements combine in one element that
is called shared values.
This model applied in various situations and it is a valuable tool when organization designs at its
question. These elements facilitate the organizational change, it helps to implement a new
strategy, it manages the merger of the organizations and it identifies the changing nature in the
future. In this model, some are called Hard S and some are called soft S. The Spic and Span
achieves several advantages by adopting this company. The company’s mission and vision
improve the overall strategies of the organization. The description of the elements included in the
model are discussed below-

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Structure: It represents the way of business divisions and units that are organized and includes
the information related to them accountable. The structure of the organization matters a lot in the
proper management of strategies (Nickols, 2016). The structure of Spic and Span affects their
business due to the structure as the structure of Spic and Span is better and it used to attract the
customers.
Systems: The system involves the process and procedures of the company. The daily activities
of the business are also including in systems. The main focus of managers in the system is that
organizational change.
Skills: The abilities of the employees are included in this element. The employees of Spic and
Span have several capabilities that maintain the overall process of the organization. The
company needs to reinforce its new strategy and a new structure. The skills of the employees
affect the overall process
Staff: The need of the organization including the proper employees that manages all the
functions of the organization. The process of recruiting and motivating the employees is also
included in this process. The people with disabilities or civil servants are included as the
employees of the company (Singh and Ahuja, 2014).
Style: The Spic and Span manage all the functions of the company by the top-level managers.
The process of interaction and actions are included in this process. The management style of the
leaders related to the company. The style is responsible for the proper business performed by
Spic and Span in the cleaning industry (Sheirs, et al., 2018).
Shared Values: This is one of the core elements of the 7s model. The company actions and
employee behaviors are included in the shared values as norms and standards. This is one of the
important aspects of the company. These values create effectiveness in the working process of
the organization.

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Spider gram
From this diagram it has analyzed that the company will earn the more efficiency if they
transform their company into the technology level. To manage the manpower in the company
becomes quite easy by transforming the technology and it also gives the quality services with the
effective cost.
Porter Generic Strategy
The company Spic and Span has adopted the differentiation strategy as it helps in giving the
competitive advantage in the market. The company uses the Speco which the other competitors
companies do not use and this helps the company in long lasting the market. They also have the
separate division of the R&D which helps in managing the cost in the effective manner.

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Internal Analysis
SWOT
Strength: The Company provides great cleaning services to its customers o it is their biggest
strength. The company has a great experience in doing the cleaning and provides a high quality
of services (Goetsch and Davis, 2014). The company has done the cooperation with the Coco-
Mat which helps the company in achieving the great market approach and also helps in getting
the finance. In providing the mattresses, they are one of the top companies in Greece so the
company gets the strength to meet the needs of the customers and to make them financially
strong in the market. Coco-mat provides the high quality of services that help the company in
gaining the advantage of attracting the customers more.
Weakness: The Company is not financially strong so they have done the cooperation with the
Coco-Mat so if any financial vulnerability in the company happens then it also damages the Spic
and Span and affects the performance of the company. The people generally enjoy the vacations
but in terms of cleaning people are not matured and they embody their outthinking which affects
the economic condition of the country (Morschett, et al., 2015). The company is basically
influenced by the number of tourists in the hotels so, at the time of offseason when the number of

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tourists gets declined, the workers of the companies faced the problem of sustaining
employment.
Opportunity: The Company can expand their growth by adopting some technology innovation
as they have the knowledge and the experience which helps in adopting the things easier. The
performance of the company can be increased by endorsing and their reliability can be enhanced
by endorsing the other companies (Cook, 2015). The company Spic and Span has the opportunity
to achieve the upper level by increasing their cleaning services with some discount offers too. No
matters how miles the home is the workers of the company access to the place and takes care of
things which help in grabbing the loyalty of the customers.
Threat: The Company has the threat of their competitors as there are many companies that
provide excellent cleaning services. It not affects the profits of the company but also gives
threats to the company is doing the smooth flow of the function. The company has the threat of
tourism too as they are dependent on that if the tourist will not come at the extent rate then the
performance of the company gets declined (Engert, et al., 2016). Due to the political changes
and economic issues in Greece, the rate of tourism has declined and it gives a threat to the
company as their profitability is harming.
VRIO framework
This framework helps the company in evaluating the internal resources of the company and
explanation has stated below:
Valuable: The Company has the ability to convert their resources in adding more values.
Rare: The Company has few technology resources as they use the obsoleted technology instead
of the updated technology.
Costly to imitate: The Company has the effective cost than its competitors as they imitate the
services at the higher cost so it gibes the advantage to the company.
Organize: The Company has organize their resources in the effective way which helps them in
capturing the market and developing the value.

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Dynamic capabilities
In dynamic capabilities there are three theories which are stated below:
Technology competence: The technology used by the company is traditional and outdated
which gives the little bit disadvantage to the company. The company required the updated
technology of cleaning services.
Coordination of the employees: The coordination among the employees in the company is
good which helps in creating the dynamic capabilities. This coordination among the employees
helps in attaining the good performance in the market.
Marketing competence: In the market competition is high but due to the lower cost offered by
the company they get the advantage of the sustaining in the market.
Challenges faced in the internal and external environment
The major challenge faced in the internal environment of the company is organizational culture
and the structure. As there were more than the 50 employees in the company but their
management was not proper and it creates the issue in managing and handling the internal
processes. The company is not properly divided into the team so they work as a whole which
creates the issue in the organizational structure and due to this, the functioning of the company
gets affected. The technology so the major issue as with the time there are many updated
machines and techniques which can be used for the cleaning process so it becomes difficult for
the company to update the technology at every time.
The major challenges faced by the Spic and Span are also related to the external environment as
they have to face many changes due to the political environment. The government brought new
laws and policies which the company has to follow so its impact on the ongoing process of the
company. The major issues I also related to the labor, green cleaning trends and with the
legislation and compliance (Chen, et al., 2015). The climate is changing so the Spic and Span
also face the issue of providing the cleaning services and it impacts the performance of the
company. The profit margin of the company gets declined due to the tourist as they are the ones
taking the services from the company. If the number of tourists is declining in the company then
it will affect the performance of the company.

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Conclusion
From the above report, it is concluded that Spic and Span is the social enterprise business whose
major focus is not to earn the profit but to serve for the welfare of the society. They are providing
the cleaning services to the retrenched and the older workers with disabilities too so that
unemployment in the country can be reduced. In this report, the internal and external
environment of Spic and Span has analyzed and from that, it is evaluated that the company has
certain strengths like they have experienced and professional employees also who give the best
cleaning services. They have co-operated with the Coco-Mat which helps the company in
achieving the great market approach. The weakness of the company is that they have appointed
disabled and older employees whose accessibility of doing the work is less. The company also
faced certain challenges which have been analyzed by the strategic management theories such as
issue related to the technology, changing climate, adopting the new legislation which creates the
difficulty for the company is operating the ongoing process. In this report, Porter’s 5 forces and
McKinsey 7s model have also explained.

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References
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of moderation
and mediation in strategic management research. Organizational Research Methods, 20(4),
pp.665-685.
Benjamin, M.L., 2017. Investigations of Cleaning Product Sprays (Doctoral dissertation,
University of Cincinnati).
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Chen, C.M., Delmas, M.A. and Lieberman, M.B., 2015. Production frontier methodologies and
efficiency as a performance measure in strategic management research. Strategic Management
Journal, 36(1), pp.19-36.
Chua, B 2020, Management in Practice: Issue of Spic and Span, streaming video, Singapore,
viewed 10 February 2020, <https://rmit.instructure.com/courses/70982/pages/organisation-data-
pack?module_item_id=2015074>
Cook, N.D., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management.
Sage.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner production, 112,
pp.2833-2850.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.

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Greco, M., Cricelli, L. and Grimaldi, M., 2013. A strategic management framework of tangible
and intangible assets. European Management Journal, 31(1), pp.55-66.
Hahn, R., 2013. ISO 26000 and the standardization of strategic management processes for
sustainability and corporate social responsibility. Business Strategy and the Environment, 22(7),
pp.442-455.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: Theory & cases: An
integrated approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
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https://www.dropbox.com/sh/y21d6wi4bluwxvi/AAAA0rb703xp4p3h8I8inIyZa/Assignment
%201/Assignment%20Instructions%20and%20Rubrics?dl=0&preview=BUSM4547+-
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Nickols, F., 2016. Strategy, strategic management, strategic planning and strategic
thinking. Management Journal, 1(1), pp.4-7.
Rauf, D., 2014. Careers in Janitorial and Cleaning Services. The Rosen Publishing Group, Inc.
Sheirs, D., Padilla, B. and Wall, D., Kegel LLC, 2018. Household cleaning composition in self-
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SNS n.d., ‘SNS properties’, SNS, viewed 6 February 2020, <http://www.snsproperties.asia/>
Speco n.d., ‘Speco by Spic and Span’, Speco, viewed 13 February 2020, <http://speco.sg/>
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.

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Appendix
VUCA
PESTEL VOLATILIT
Y
UNCERTAINT
Y
COMPLEXIT
Y
AMBIGUIT
Y
TOTA
L
Political:
Political
stability is
effective
2 1 2 2 7
Economic:
Economic
growth is
moderate
2 1 2 1 6
Social:
Community
support on
marginalized
group
3 2 3 3 11
Technology:
Updated
technology
5 5 4 4 18
Environment:
Cleanliness
as priority
4 2 2 2 12
Legal:
No
discriminatio
n in Job
3 2 3 1 9