MONITORING BUSINESS PERFORMANCE

Ozhouse Clean is one year since the business plan was implemented and as the Operations
Manager, as reviewing the performance of the business against the performance indicators
identified in the plan, testing performance indicators used and changes to performance
indicators.
The business provides window pick-up of dry cleaning, laundry, and alteration service in
Melbourne that will surely attract customer attention. Working customers may find this service
is convenient for them and want to try it. If they are satisfied with the service quality they will
likely become repeated customers. When the patronage happens continuously, they become
loyal customers of the service. These customers will recommend Ozhouse Clean to their friends
and coworkers. As more and more customers use this service, Ozhouse Clean image is
enhanced and we will gain more and more market share.
Overview of Business Performance
Ozhouse Clean possess good information about the market and knows a great deal about the
common attributes of its most prized customers. Ozhouse Cleaning Service will leverage this
information to better understand who is served, their specific needs, and how we can better
communicate with this group.
Ozhouse Clean is providing its customers with a professional, residential house cleaning service,
aimed at the upper echelon of the market.  Ozhouse seeks to fulfill the following benefits that
are important to its customers.
Professionalism: All employees will be well trained to exude professionalism from all of their
actions and conversations.
Convenience: Ozhouse will provide its services in the manner that is most convenient to the
customer, including arranging for visits when the owner is not home.
Trustworthiness: Many people have legitimate concerns regarding cleaning services in their
home and the possibility of theft and breakage.  These concerns have been eliminated or
significantly reduced through a comprehensive screening and training process for employees. 
Additionally, Ozhouse carries insurance designed to cover any loss that the customer may
attribute to the company.
The performance indicators have been achieved:

 A 20% increase in total sales revenue.

 A gross profit margin of 20%.
 Reduction of 50% in debtor days
 10 new commercial customers in the first year of the business plan.
 Reduction of 10% of workforce turnover based on employing two full-time permanent
cleaners, as well as increasing wages to above award.
This change in the market has created a receptive environment for a cleaning service provider
whose goal is to develop long-term relationships with customers.
The market is likely to maintain better than average growth due to the lifestyle Australian have
developed within the last five years, working longer and longer hours.  The effect of the longer
work week is that people have less time to take care of personal maintenance responsibilities
such as house cleaning.  Instead, people will work and longer hours and pay someone to take
care of other, less important or less desirable responsibilities.
An evaluation of the financial
Ozhouse Clean will start off by matching our main competitor's prices and the company will be
closely monitoring the financials to make sure that the company develops a sustainable
business without heavily discounting services to win customers. All sales inquiries will be
initially handled by the business owner. Ozhouse Clean will also train all our employees,
especially those facing the customers, in customer service to make sure that the company's
customers are fully satisfied, as Ozhouse Clean will offer limited discounts to customers with
large recurring orders and also provide incentives for new customer referrals.
The sales forecast provided by the accountant for this financial year show the following figures:

Revenue Total sales revenue - $450,000

Sales Total cost of sales - $320,000

Liabilities Debtor days - 30

Assets 15 new commercial customers

The cash flow statement, profit and loss account, and balance sheet have been built using
forecasted information which is as accurate and realistic as possible. Sales increase gradually
over the 12 months showing the positive trend of sales. Ozhouse Clean is steadily gaining
market share. Gross profit and net profit rise proportionately to sales revenue. The financial
statements show that the business runs quite well and achieves expected results
The performance measures
Ozhouse Clean Cleaning Service will provide a residential house cleaning service for the upper
end of the market. Ozhouse will have two target customers:
The affluent that have a spouse who does not work, and is not inclined to do housework. To
many a maid/house cleaner is a symbol of wealth, and this idea symbolizes this group of
customers.
The two-income households whose opportunity costs are too great to spend time cleaning the
house.
House cleaning ranges from cleaning of standard rooms such as kitchen, bathrooms, bedrooms,
as well as more unusual jobs like small disasters from children and pets. The keys to success
are:

 Quality work.
 Well-chosen and trained employees.
 Critical Issues
Ozhouse Clean is still in the speculative stages since it is a start-up company just beginning
operations.  The critical issue that Ozhouse Clean faces is to continue to take a modest fiscal
approach; expand at a reasonable rate.  Expansion should only occur if there is sufficient
demand and the quality of services is not diminished.
Evaluation of the strengths and weaknesses
The following SWOT analysis captures the key strengths and weaknesses within the company
and describes the opportunities and threats facing Ozhouse Clean.
Strengths

 An enthusiastic company with a strong, infectious leader.

 A well-designed training program to share and capture intellectual capital for the
organization.
 Dedicated employees.
Weaknesses

 Labour-intensive industry.
 Inherent time lag when building goodwill and trust.
 The difficulty of establishing brand equity as a start-up company.
Opportunities

 A large percentage of the market that is unaware of Ozhouse Clean's.

 Shifts in consumer consumption habits that are moving toward increased utilization of
cleaning services.
 A business model that is easily scalable.
Threats

 Employee turnover.
 The entrance of a serious competitor.
Looking at opportunities and listed weaknesses looks like social media could be a real marketing
opportunity. Instead of just having an informational website, our business could put up a
Facebook page and open a Twitter account to try and reach out to old (and new) customers.
Set up social media business accounts/pages. Set aside time or assign staff person to update
Facebook/ Twitter accounts. Set up a Pinterest  and/or Instagram account, purchase a camera,
and train a staff person to take photos of animals and post images.
Recommendations
Looking at opportunities and listed weaknesses looks like social media could be a real marketing
opportunity. Instead of just having an informational website, our business could put up a
Facebook page and open a Twitter account to try and reach out to old (and new) customers.
Set up social media business accounts/pages. Set aside time or assign staff person to update
Facebook/ Twitter accounts. Set up a Pinterest and/or Instagram account, purchase a camera,
and train a staff person to take photos of animals and post images.