One Day Laundry
Implementation and evaluation of Strategic planning A. One Day Laundry Company I. Case Summary
One Day Laundry is a company that recently surpassed its chief competitors to become the largest laundry and dry-cleaning company in Syracuse, New York. The company was merely one of the many neighborhood dry-cleaners, in the Syracuse area 4 years ago. The rapid growth began when the company changed hands in 1966. The owner had then died and his sick wife who couldn’t operate the company anymore has to sell it to two II. Case Objective and Key issues A. Case Objectives 1. To understand the success lying behind a successful business with a large number of competitors 2. To determine long term strategy of a rapidly growing laundry company B. Key Issues 1. How to continue expanding without long term debt as a source of fund 2. Whether to start a franchising operation. 3. How to organize since it is becoming virtually impossible for two men to personally supervise the entire chain. III. Analysis A. External threats 1. One big threat to One Day Laundry is the fast-growing chain Styler Cleaning and Laundry, which is underselling all the others by dropping the prices to a level about 10 to 15 percent below the prevailing rates in late 1968 and has not raised them since. 2. Another threat to One Day Laundry is the fact that the population is moving to other metropolitan areas. B. External opportunities 1. Opportunity exists for the firm to enter into the franchising business. Which will basically allow them to keep on expending without having to take on more debt. 2. Opportunity also exists for One Day Laundry to get they plant managers to work harder if only they would allow them to have a piece of the action. C. Internal Weakness 1. Financial a. All One Day Laundry new locations are 100 percent debt-financed with 5 –year notes. Everything needed to start a facility is financed with a “package”
One Day Laundry is a company that recently surpassed its chief competitors to become the largest laundry and dry-cleaning company in Syracuse, New York. The company was merely one of the many neighborhood dry-cleaners, in the Syracuse area 4 years ago. The rapid growth began when the company changed hands in 1966. The owner had then died and his sick wife who couldn’t operate the company anymore has to sell it to two II. Case Objective and Key issues A. Case Objectives 1. To understand the success lying behind a successful business with a large number of competitors 2. To determine long term strategy of a rapidly growing laundry company B. Key Issues 1. How to continue expanding without long term debt as a source of fund 2. Whether to start a franchising operation. 3. How to organize since it is becoming virtually impossible for two men to personally supervise the entire chain. III. Analysis A. External threats 1. One big threat to One Day Laundry is the fast-growing chain Styler Cleaning and Laundry, which is underselling all the others by dropping the prices to a level about 10 to 15 percent below the prevailing rates in late 1968 and has not raised them since. 2. Another threat to One Day Laundry is the fact that the population is moving to other metropolitan areas. B. External opportunities 1. Opportunity exists for the firm to enter into the franchising business. Which will basically allow them to keep on expending without having to take on more debt. 2. Opportunity also exists for One Day Laundry to get they plant managers to work harder if only they would allow them to have a piece of the action. C. Internal Weakness 1. Financial a. All One Day Laundry new locations are 100 percent debt-financed with 5 –year notes. Everything needed to start a facility is financed with a “package”