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Running head: TOTALLY TIDY BY TILLY1Totally Tidy by TidyStudent’s Name:Institutional Affiliation:
TOTALLY TIDY BY TILLY2Totally Tidy by TillyIntroductionTilly Fernandes is contemplating of either starting a cleaning or an organizing business totake advantage of her passion and past expertise. Fernandes attaches great importance to her family and personal connections. Additionally, she values work-life balance. Therefore, she plansto work for 40 hours per week and take six weeks off work every year. The plan will enable her to pursue her personal life while remaining profitable. Fernandes intended to launch her company on June 1, 2015. The company will provide customers with premier home upgrading solutions. Fernandes will focus exclusively on residential consumers to enable her to uphold highrelationship values with the clients. She projects to earn a 40 percent return on investment (ROI) and 50 percent in dividends yearly by the company’s third year of operation. Thus, this report analyzes Totally Tidy’s prospects of entering the cleaning and organizing industries in Canada. It will provide the alternative options for Fernandes, recommend on the ideal service that she should pursue, and the course of action to implement the recommendations. External AnalysisIndustry AnalysisCleaning IndustryThe cleaning services industry has experienced modest growth over the past five years (IBIS World, 2016). The industry’s growth has resulted from the increase in the number of residential houses and increased investments in nonresidential buildings in Canada. Ontario accounts for about 75 percent of the country’s cleaning services market (IBIS World, 2016). Thelarge market in Ontario reveals the presence of a high demand for the cleaning services. However, the industry is highly competitive with many companies. Therefore, a new entrant into
TOTALLY TIDY BY TILLY3the industry is likely to incur various upfront costs, which may affect its pricing strategy (IBIS World, 2016). Additionally, the existence of small businesses and large multinational companies,such as Molly Maid, Mary Maids, and Independent Cleaning Services among others make it difficult for new companies to gain a considerable share of the market.Organizing IndustryThe organizing industry in Canada has experienced rapid growth over the years. The Professional Organizers in Canada (POC), a nationwide association representing all the professional organizers in Canada, had more than 545 members by 2008 (Spence, 2008). The disappearance of secretaries in most companies and the busy schedules of most individuals in thecountry have to the increasing demand for organizers. The rates for organizing services range between $45 and $175 per hour (Spence, 2008). However, few companies exist in the industry.