AbstractThispaper addresses the recycling company’s (TRC) approach with regard to thestructured planning for its future considering all core areas such as itsstrengths, weaknesses, opportunities and threats. While strengths and weaknesseshighlight internal leverage points as well as show room for development, theopportunities and threats highlight external factors that can be exploited tosupport product/service offered or serve to hinder TRC’s success. StrengthsThe company’s strengths to beaddressed include; 1. Steady client base 2. Customer retention 3.
High barriersto entry 4. Placement as unique industry leader Steady client baseIn the absence of competition TRCis presented with the unique chance of being the only recycling and wastecompany located within the city. Several already pre-negotiated contractsbetween TRC and the city allow for material collections at residentiallocations while third-party recycling programs with local manufacturers,restaurants, hotels and hospitals present us with a steady client stream, owingto the TRC’s ability to tailor services to specific client needs. Thistranslates to a strong and steady income stream. Customer Retention In the recycling and wastemanagement industry as a whole, there is a lot of competition with the bigcompanies such as Waste Management (WM). TRC’s saving grace in this project scenariois that it has the opportunity to expand and build on its huge lead created bybeing the only such company in its primary location. Its marketing ads and tiptopservice have garnered it much customers while its low price has ensured highcustomer return rate.
With a minimal churn rate TRC has a significant advantagein this marketplace. HighBarriers to entry Vertical integration is a strategywhere a company expands its business operations into different steps on the sameproduction path. TRC is really vertically integrated into the community therebyprotecting itself against new entrants by exerting control over the entirelocal recycling and waste management stream. At this point, it becomes tooexpensive for new competitors to process incremental tons at a material recyclingfacilities (MRFs) because of higher transportation costs to compete within thesame market. Also, newer MRFs that are forced to attract recyclables fromestablished markets by offering higher rebates can easily destroy value, andloss income in doing so. Continued business success due to a high barrier toentry especially related to high startup costs means that there’s only going tobe a handful of potential competitors which is good for business making themarket domain hard to break in due to resources and assets required for generalrecycling and waste management.
Goodreputation in the city;because a lot of its staff live there, it provides good quality of life andimproved standard of living while also providing good benefits for employees:including medical, family care, financial and professional development. Thisaccording to Maslow’s Hierarchy of needs means that employee needs are met withrespect to the following; physiological (earn enough to buy basics), safety(healthcare, job security), social (teamwork, sense of belonging), esteem(acknowledgment, promotions, recognition) and self-actualization (challenging)(D. Martin pg. 72).Weaknesses The company’s weaknesses include; 1.Fluctuations in fuel cost 2.
High transport cost 3. High operating cost 4. Fluctuationsin fuel costs;the price and supply of fuel is unpredictable and fluctuates based on eventsincluding geopolitical developments, supply and demand for oil and gas, actionsby OPEC and other oil and gas producers, war and unrest in oil producingcountries, regionalproduction patterns and environmental concerns. Fuel is needed to run the company’scollection and transfer trucks, and any price escalations or reductions in the supplycould increase operating expenses and have a negative impact on the company’sconsolidated financial condition, results of operations and cash flows. Hightransportation cost; the cost of picking up and transporting recyclablescan range from $20 to $70 per ton, depending on the length and difficulty ofthe recycling truck routes, and the cost of recycling is considerably muchhigher when compared against the costs associated with landfills as the budgetalso has to consider the energy cost of the fossil fuels burned to run thesetrucks, as well as labor and fuel costs to sort, process, and market therecycled material. The average mix of recyclables collected by a homeowner areestimated to be worth about $125 per ton when the recycled materials are soldto manufacturers, so there is a possibility for recycling programs to make anet profit, but only if transportation, sorting, and processing costs are keptlower than this value per ton.
Also, the increased cost of shipping which getedit to the original price of the product. Thus, making it expensive for thecustomers which results in buyers searching for alternative sources.HighOperating CostsIn the 2015 Annual Report, Verizondiscussed current trends and how this affected their high costs of operation.With the increase of sales in smart devices, the company’s operating expenseshave risen over the past two years. Also, the high cost of administrativeexpenses for wages, bonuses, and severance have accounted for just under 30% oftotal costs (Verizon, 2016). Due to the fact the company has stated that theywill be cutting costs to become more efficient in 2016 and beyond, this may notbode well for research and development for new products and services.Opportunities The company’s opportunity includes; Increasedpublicity on social media; can be used to drive targeted traffic.
Creating a new page on your site is like taking a great selfie. You want theworld to see it and bask in its brilliance, but you don’t want to beg forattention (or worse, pay for it). That’s why for web pages and better onlinefollowing a well-placed social media posts can make all the difference. It willalso serve as an avenue for customers and clients to express their satisfactionor dissatisfaction, which we can then promptly address.
ThreatsThe company’s threats include;Dynamicallycontinuous and discontinuous innovation; makes it hard to get people to change and embracenew ideas. For my company, this will include changing what and how peoplerecycle and how we throw away trash; people in the United States want the easyway, and to improve recycling and waste management, will take more effort oneveryone’s part.Extensivegovernment regulation;existing or future regulations and/or enforcement actions may restrict ouroperations, increase our costs of operations or require us to make additionalcapital expenditures. “The waste materials industry is often at the mercyof extensive and ever-changing regulatory pressures by federal, state, andlocal governments. Regulations range from those involving environmentalconcerns, safety concerns, and transportation concerns. Regulatory agenciesoften monitor companies to which the regulations apply, and in many cases, theyhave the power to force compliance on these companies.
Compliance with newregulations can be costly to all companies in the waste materials industry, andin some cases the additional expense to comply can affect the bottom line. Inaddition, enforcement of these regulations can include civil and criminalpenalties that can also adversely affect the company.” (Strategic CaseAnalysis, pg. 94)Core Competencies The company’s decision to ventureinto the filtration and recycling of waste highlighted its capabilities,resources and organizational knowledge of the emerging biodiesel industry. The benefitsof this new service are multifaceted in my opinion; both to the environment,the customer and the consumers.
The environment benefits withrespect to IncreasedAir Quality: Sincebiodiesel reduces emissions of harmful air pollutants such as asthma-causingfine particles, greenhouse gases, and acid rain forming sulfur dioxides. Also,it decreases carbon dioxide emissions.WasteMinimization: Whenwaste cooking oil is used in the production of biodiesel, a waste is divertedfrom municipal solid waste landfills and sewer systems.
WaterQuality: Localwater quality is significantly improved. Therefore, fewer sewer spillscontaminating streams, lakes, and bays happen because less fat, oil and greaseaccumulates in the public sewer pipes. DecreasedEnvironmental Risk:Unlike conventional diesel, biodiesel is non-toxic, biodegradable and safer toship.
Spills do not require emergency response clean-up activities.The customers enjoy lower clean-upcosts associated with clogged up drains due to dumping waste oils into thesewer systems. The end consumers enjoy, a steady supply of raw materials at acompetitive market price necessary to ensure continuous manufacturing ofbiodiesel fuel. The company’s competition within the market is minimal duelargely in part to the absence of any viable close competitor within the samearea. The company chooses various industries in the biodiesel field where thedemand for recycled waste oil is in high demand. Its implementation strategy isusing its strong relationships and contact to get more important contracts asnecessary. Its competitive edge rests with its proximity to its target markets,as well as the industry knowledge, reputation and company executive contacts.
Product marketing will follow a two-way strategy, being direct sales bymanagement and the use of sales agent. ReferenceD.Martin and K. Joomis, 2007. Building Teachers: A Constructivist Approach toIntroducing Education, pg.