MGT610 Organisational Best Practice Case Study 1 Part A Sample

MGT610 Organisational Best Practice Case Study 1 Part A

Context

Benchmarking is the process by which organisations measure themselves against their own performance and that of their competitors. This assessment task requires you to demonstrate your understanding of benchmarking by undertaking a benchmarking analysis of an organisation’s current strategy, and against its competitors, and/or national or international standards (depending on the form of benchmarking you choose to undertake).

Following the analysis of the organisation, you should be able to identify a strategic weakness that provides an opportunity for improvement. This opportunity will form the basis for Assessment 2, in which you will recommend solutions to the strategic weakness and benchmarks for assessing your solutions.

Instructions

1. At the start of Trimester, the Learning Facilitator will inform you of which organisation will be analysed.

2. You will then find the organisation’s most recent Strategic Plan, Annual Report, sets of financial reports, and/or other measures of business activity.

3. From these documents, you will need to determine the CURRENT Strategy for the Organisation, and from the Strategy identify at least four (4) appropriate lagging indicator benchmarks against which this organisation can be measured – either within their market, industry; and/ or against national or international standards.

4. Compare the organisation’s performance against the chosen benchmarks and market trends.

5. The report should identify ONE strategic weakness in the organisation’s current performance, but you DO NOT need to recommend changes that could be made to change the enterprise in line with the weakness identified.

PLEASE NOTE: Students who do not use the organisation selected by the Learning Facilitator will automatically fail the assessment.

Whilst the format may vary for your report, below is a suggested outline for you to follow:

• Cover page
• Executive Summary

• Introduction

o Overview of the organisation and their products/services.
o The market within which the organisation operates including the overall size of market, a full competitive analysis and market share.
o A current SWOT Analysis for the organisation.

• Main Discussion

o What is the current strategy for the organisation?
o Based on the current strategy, what areas of the organisation are being analysed?
o Full diagnostic analysis for the selected 4 lagging indicator benchmarks.
o Identify ONE strategic weakness.

• Conclusion.

• References, including a minimum of five (5) academic references

• Appendices where applicable 

Solution

Introduction

Overview of OrangeSky the Service

OrangeSky is an Australian company that provides free mobile laundry services to people who are facing homelessness. As per the MBA Assignment Expert, The company aims to connect homeless people with free showers, laundry and services. This report will discuss the market share and size of the mentioned establishment. It will also analyse the competitive viewpoint of OrangeSky.

Competitive analysis

Porter’s five forces can be conducted to focus on the competitive analysis of OrangeSky.

Buyers’ bargaining powers (Moderate): Laundry service is not conventional and therefore has not attained a large consumer base. Consequently, the buyers' bargaining power is moderate for OrangeSky, simultaneously creating market demands.

The threat of new entrants: Australia witnesses the competitive growth of the mobile laundry service. Consumers can turn to the same service the different companies provide at any time of the year. Sandbag Inc, Galveston Progress Association is now operating in a sustainable platform and there are chances of consumer loss and a decrease in the OrangeSky products. 

Competitive rivalry (high): Competition entry for the OrangeSkyis open but to South Australian residents only (Competition Terms of OrangeSky, 2023). Sandbag Inc, VolunteeringACT, Geeveston Progress Association and Impact100 Sydney are some examples of the competitors. They also provide domestic and family violence and counseling, individual support, education support and many more (SandbagInc, 2022).

Supplier’sbargaining capacity (low): Orange sky operates with a diversified supplier base and the bargaining power of the suppliers is relatively low. However, OrangeSky is a big company that greatly supports society. It is a no profitable company that indicates low suppliers' bargaining capacity.

The threat of substitutes (moderate): Consumers in Australia get exposure to laundry services at a cost-effective process. The services and facilities provided by Volunteering ACT are lovely and these facilities helping a lot of the neighbourhood (VolunteeringACT, 2022). These things can turn into a threat to OrangeSky. Galveston Progress Association and Impact100 Sydney also provide community well-being services. The reputation of these competitions can decrease the market share of OrangeSky. 

The market in which OrangeSkyoperates

This company provides its services in multiple places around Australia. OrangeSky gives remote assistance with the help of vehicles. During the covid-19 impact, OrangeSky continued to expand all over Australia (OrangeSky, 2023). 

Figure 1: Market growth of OrangeSky
Source:  (Orange Sky, 2022).

The company has developed and continued to provide its services through hybrid vans across Australia and New Zealand. OrangeSky started operating in Oakland and Wellington in October 2019. The mentioned organisation launched its services in Northern Territory in January 2020. The remote community of this company is located in North West Arnhem Land (OrangeSky, 2023). 

The Overall Size of The Market

The number of homeless people is increasing each day in Australia. Thus, the market forOrangeSky is quite extensive and continuously expanding. Thirteen thousand seven hundred people are positively connected and $9.5 million is delivered, creating a social impact.  A large number of people in Australia are experiencing homelessness. These people are at economic and social disadvantages and below the scale of access to affordability. Homelessness in Australia can be caused by various reasons like lack of ability to earn, limited access to basic needs and many more. Around 91400 people experienced domestic violence in Australia in 2020-21(Government of Australia, 2023). More than 51000 people live in crowded dwellings and over 21000 people live in the shadow of some organisation that provides nutritional and other necessary support (Orange Sky Annual Resport, 2022).

OrangeSky operates in the operations and service delivery industry with the vision of connecting the community around it. 

Figure 1: Revenue of OrangeSky
Source: (Orange Sky Australia, 2020)

This is illustrated from the above picture that the revenue of Orange Sky is skyrocketing from 2018 to 20. Prudent SLT financial management helps the thriving of the economy also enhances consumer satisfaction. 

A SWOT Analysis of the organisation

Strength- OrangeSkyhas provided free laundry services in several countries. Availability in different parts through the service chain is the strength of OrangeSky. With the help of small laundry and services, the establishment of the OrangeSky satisfied more than 13700 people around Australia in 2021. The attain revenue also cross $7,462,967 at the end of 2021 (OrangeSky, 2023).

Weakness- OrangeSky provides free laundry and shower facilities to homeless people nationwide. The budget for this work is quite limited as the company does not generate any profit from their service. OrangeSky runs on the donations of several corporations, public funding and sponsorships. 

Opportunities - the state company has built quite a reputation by providing free laundry and shower services. This reputation of the company will help it in future endeavors. Media coverage of the mentioned establishment also helps it to be known in different regions of the country and people (McCosker et al., 2020). 

Threats - Rising competition in the market is a threat to the company. Multiple companies provide facilities for the needy community around the country. Laws and regulations around the country are quite a problem for the stated organisation. These regulations act as a barrier to providing services. 

Main Discussion

Current Strategies

OrangeSky has been revolutionising its strategy of offering homeless people mobile and functional laundry services.

Strategic partnerships:  In order to attain competitive growth, OrangeSky has formed strategic alliances with international and community partners. The van and supporting partners entailed BOQ, Icon Water, Rhea Group, QIC, Ashurst and many more (OrangeSky, 2022). The company's mission is to initiate more vital communication with the partners, also the external shareholders of Oranges. It is a value-based strategy to connect all the partners and the consumers to grow strategic foresight.  
Innovative benchmarking: Innovative benchmarking does the business of OrangeSky prosper; operations are planned with innovations that enhance the company's standard and the service's quality (Kelly, Goodall & Lombardi, 2022). Through creativity and invention, the company focuses on the well-being of the community it is catering to. 

Change management: OrangeSky implements the best-fit practice to accommodate the changes in the direction of the people and the resources. The optimisation of the resources adds to the effectiveness of the service. The company intends to extend the networks through digital acceleration by dealing with tangible and intangible resources. 

Figure 2: Change management
Source: (Lock, 2022)

Strategic finance: The finance management of OrangeSky is stable to cope with unexpected challenges. Implementing the cost-effective strategy contributed to the market growth and the enhanced share in the company (Paula, de & Silva, 2021). OrangeSky entered into the accounting policy contracts in 2019 and the company looks after employee benefits. The liabilities, financial statements, and assets of Orange Sky are presented in Australian Dollars. 

The analysis of the areas of OrangeSky

The current strategies encompass the value -driven strategies and collaborative partnerships. This is comprehensible that OrangeSky prioritises holistic development of business based on sustainability and creative vision.  

Sustainability: OrangeSky is focused on sustainable profit based on preserving the environment, developing social infrastructure, and generating revenues. Sustainable ideas are embraced to trigger financial upliftment (Khubana, Rootman& Smith, 2022). The company guarantees fundamental human rights to clean clothes, showers, and permanent and healthy accommodations. The extension of the laundry  and van fleet in Auckland and the New Zealand area and the launch of the new services reflected sustainable initiatives. The company prioritises the entrepreneurial ecosystem conforming to sustainability guidelines (Lux, Macau & Brown, 2020). Since pre-covid times, there have been instances that the company has been extending support to the communities, far and near. 

Resource management: $1,360,861 surplus has been attained by OrangeSky in the year 2019 (Orange Sky Annual Resport, 2022). The expertise in resource management yielded a reasonable abundance (OrangeSky, 2023). Managing the resources was contingent on offering value to the stakeholders. One thousand seven hundred volunteers of different multicultural backgrounds joined to form a vast and resilient network. The supply chain network is strong and maintains operations discipline (Akbar & Ahsan, 2021). The supply chain networks and all the volunteers reached the people stuck in natural disasters like cyclones, bushfires, floods and earthquakes. People across remote, metropolitan and local areas are benefited from the company initiatives. Partnership with the Mala’la aboriginal corporation of health service accomplished an incredible social impact. 

Complete Diagnostic Analysis for the Selected four Lagging Indicator Benchmark

The diagnostic study of OrangeSky points out the four lagging factors. 

Competition: OrangeSky must enhance its competitive strategy and revise its traditional marketing strategy (Kurniawan et al., 2020). However, the company has endeavored to shift from conventional to non-conventional marketing. Sustainability is the trend of OrangeSky and it focuses on strategic marketing growth with innovative aspects. Remote community venture is a trend factors for the OrangeSky. Although the growth of revenue in 2021 is higher than the previous Orange Sky has to make strong financial base to draw the clients from the international platform year (OrangeSky, 2023). 

Consumer satisfaction: Consumer satisfaction is low as the company is technologically underdeveloped. OrangeSky is lagging and faces technical glitches in cross-border transactions. As a solution to the problem emerged in 2018, the innovative software was designed named Campfire. The company's mission is aimed at the technological boom and people management with philanthropic aspects. 

Market Growth: OrangeSky has expanded its services to 22 places across Australia. The company has been providing its remote services in Australia only. The mentioned establishment is spreading in different locations around Australia. OrangeSky has supported over 13700 people and connected them with their remote services (OrangeSky, 2023). Cooperatively, the people at the company tried to solve the issues on a national and corporate level. 

Operations: OrangeSky encountered impediments in storing vans in the areas like Victoria, Queensland. State-related problems were also huge, which led the volunteers to face the increasing daily challenge. Fundraising activities have to be quite effective that align with the goals of administrative success and the company has to make investments to get past the market challenges. 

Yet, the company still needs to work on seizing the markets beyond the constrained border. The company has spent 60022 hours of conversation, 30134 loads of laundry, 367 showers and 8155 shifts across the country that increase the performances quality (Orange Sky Annual Resport, 2022). The threats from the international platforms are immense to tackle and the company needs to be more advanced in dealing with the pressure. Social impact has to be maximised, which was also less for carving a niche internationally (Nazifi, El-Manstrly, & Gelbrich, 2020).

One strategic weakness

The revenues in 2020-21 amounted to $6,744, 934 and at the end of 2021-22 the revenue increased to $7,462,967. 

Figure 3: Revenue of OrangeSky
Source: (Orange Sky, 2020)

Overdependence on partnerships

OrangeSky in Australia has its partnership with QBE, Aurizon, BOQ group and Rhea Group. The company operations are looking up to funding and corporate donations from the government. Since then, the company has shown a significant amount of growth in the market. As per the Australian government, around one person among 200 is homeless (Human Rights of Australia, 2023). The mentioned company has taken some critical strategic plans to implement its services nationwide. 

Conclusion

The above study has given a brief description of the Australian company OrangeSky and its services. The mentioned company generally raises its funds in multiple ways. Individual donations and community fundraising play a significant role in the funding process for the company. Several corporate and commercial partnerships are also responsible for the funds of OrangeSky. By 2025, OrangeSky wants to attain a more resilient stream o business. Orange sky has exponential potential to expand beyond Australia through shared ideas, resources and challenges.

Most importantly, the company needs to depend on the companies' donations to provide their services (Lux, Macau & Brown, 2020). The stated company is now available in several parts of the country. The fundraising process of the company can give an upper hand to the other competitors in the same industry. The competitors can take advantage of these situations and act accordingly (Das et al., 2020). Though the government supports the company, it is pretty challenging to maintain the management with a guarantee shortly. 

Reference list

Akbar, S., & Ahsan, K. (2021). Investigation of the challenges of implementing social sustainability initiatives: a case study of the apparel industry. Social Responsibility Journal, 17(3), 343–366.   Retrieved from: https://lesa.on.worldcat.org/oclc/9040493877

Competition Terms of OrangeSky. (2023). Competition terms and conditions. Orange Sky Australia. Retrieved March 15, 2023, from https://orangesky.org.au/competition-terms-and-conditions/ 

Das, G., Peloza, J., Varshneya, G., & Green, T. (2021). When do consumers value ethical attributes? the role of perceived quality in gift-giving. European Journal of Marketing, 55(1), 315–335. https://lesa.on.worldcat.org/oclc/8883953314

Government of Australia. (2023). Homelessness and homelessness services. Australian Institute of Health and Welfare. Retrieved March 15, 2023, from https://www.aihw.gov.au/reports/australias-welfare/homelessness-and-homelessness-services 

Human Rights Of Australia. (2023). Homelessness. The Australian Human Rights Commission. Retrieved March 15, 2023, from https://humanrights.gov.au/our-work/education/homelessness#:~:text=Every%20night%2C%20roughly%201%20in,the%20most%20basic%20human%20rights. 

Lux, A. A., Macau, F. R., & Brown, K. A. (2020). Putting the entrepreneur back into entrepreneurial ecosystems. International Journal of Entrepreneurial Behavior& Research, 26(5), 1011–1041. Retrieved from: https://lesa.on.worldcat.org/oclc/8649021063

Nazifi, A., El-Manstrly, D., &Gelbrich, K. (2020). Customers’ reactions to different organizational tactics in a service termination context. European Journal of Marketing, 54(1), 26–48. https://lesa.on.worldcat.org/oclc/8512313015

Orange Sky Australia. (2020). Homeless Charity: Positively connecting communities. Orange Sky Australia. Retrieved March 15, 2023, from https://orangesky.org.au/ 

OrangeSky. (2023). Homeless Charity: Positively connecting communities. Orange Sky Australia. Retrieved March 15, 2023, from https://orangesky.org.au/ 

Orange Sky Annual Resport (2022) Homeless Charity: Positively connecting communities, Orange Sky Australia. Available at: https://orangesky.org.au/ (Accessed: March 16, 2023).

Orange Sky, (2022). Homeless Charity: Positively connecting communities. Orange Sky Australia. Retrieved March 16, 2023, from https://orangesky.org.au/ 

Paula, F. de O., & Silva, J. F. da. (2021). R&d spending and patents: levers of national development. Innovation & Management Review, 18(2), 175–191. https://lesa.on.worldcat.org/oclc/9126014525

SandbagInc. (2022, November 7). Home. SANDBAG Community Centres and Services. Retrieved March 15, 2023, from https://www.sandbag.org.au/# 

VolunteeringACT. (2022, May 24). About. VolunteeringACT. Retrieved March 15, 2023, from https://www.volunteeringact.org.au/about/