Internal Environmental Analysis
| Internal Environmental Analysis | 1 |
| Internal Environmental Analysis | 8 |
Internal Environmental Analysis
Introduction
The purpose to this analysis is to review Compass Group’s internal environment, research and point out the organization’s weaknesses and strengths to include the current used resources. Identify the vital internal environmental factors in the general, industry, and external analysis in relation to the internal analysis and perform a competitor analysis. This analysis will also assess the structure of the organization and the influence this has on its performance and determine the organization’s competitive position and the possibilities this provides. Compass Group USA provides foodservice and support services to corporate cafeterias, arenas, museums, award winning restaurants and other related organizational needs (“Who We Are”, 2017). Compass Group has been around for over 75 years and it continues to grow each day (“Who We Are”, 2017). Although it is an international company providing services in over 50 countries and over 50,000 locations, the U.S. branch began in 1994.
Internal Environment
Compass Group is made up of several elements in the food industry market sectors to include Business, Healthcare, Education, Sports and Defense (Food is Our Passion 2017). The organization provides solutions that offer mutual value to the client as well as the organization and still stay cost effective. Currently, Compass Group operates in more than 50 countries with over 50,000 clients (Food is Our Passion 2017). Compass group employs over 500,000 employees and takes pride in serving over 5 billion meals per year. Paul Walsh joined Compass Group in 2014 as the Chairman. Followed by several executives such as Richard Cousins, Dominic Blakemore, Johnny Thomson and eight others helping him run the many sectors that compose the organization. Compass Group corporate culture is described as “Acting Responsibly”. A major focus of this organization is the commitment to enforce that the welfare of the farm animals used in their global supply falls under “Responsible Sourcing Strategy” (Food is Our Passion 2017). These types of commitments bring back to focus in employee behavior. The importance of having an enthusiastic team is what brings the passion to the clients and also opening doors to employees to advance within the organization with possibilities in over 50 countries.
Important Strengths and Weaknesses
Compass Group like most organizations has strengths as well as weaknesses. A major strength for Compass Group is that it is listed in the London Stock Exchange and the Financial Times Stock Exchange 100 Index which supports their continuous growth, but also helps the shareholders feel motivated about their investments and the employees know that they are part of a well financial driven organization (Compass Group Swot Analysis, Usp & Competitors, 2017). Because it has been around for over 75 years, this is an excellent example of their strengths as it helps the image of the company with great history behind its processes and robust financial position (Compass Group Swot Analysis, Usp & Competitors, 2017). Another major strength is the quantity of employed individuals currently running over 500,000 and growing. These amount of employees create many positive effects, from great talent to a ton of input, which Compass Group uses as it listens to its employees ideas.
It is considered a world leader in food and support services and continues to grow in emerging markets. But with strengths sometimes organizations face some down fall. One weakness that was very public was the allegations by the United Nations about bribery in UN Contracts (Kundnani, 2006). It settled two lawsuits for 40 million pounds with the two competitors that claimed losses over 600 million pounds. Another weakness that has put a dent in their ability to entitlement of best services was the claim by Canadian prisons that their food services was way below food good quality which in turn affected their brand image. One of the claims by the prisoners was that they were being served raw eggs and that equipment was down all the time (Collins, 2016).
Internal & External Environmental Factors
Compass Group has some external factors that affect its growth, image and production. One external factor is the importance of growing the organic business. Although it is growing incrementally, its venture in continuing as a world leader in the food industry it’s important to be sustainable in all areas possible to include recyclable programs. Another example of external factor that Compass Group has encounter is the power of media as they encounter bumps in their growth. Because of previous issues with the UN and claims of breviary to get special contracts, the recovery and cleanup of organizations image is crucial to the continuous growth. However, the internal factors that build from the external efforts are much greater in strengthening the organization’s image and encouraging the employees to be motivators and enthusiastic. Innovation in food creation and improvement in support services has kept Compass Group as the world leader in the shared market. The organization surveys its employees and listens to its clients. It grows because their commitment to their investment in their internal factors and the dedication to keep external factors under control and well supported.
Competition
Dun & Bradstreet list three major competitors in the market share as Sodexo, Inc., Aramark, and Delaware North Companies Inc (“Compass Group USA, Inc. Competition”, 2017). These companies, like Compass Group, offer food and support services its clients. The clients include corporations, healthcare, long term care, schools, colleges, government facilities, and many types of retirement homes. The services are very similar as well and include food services, facilities management, linen and housekeeping (“Compass Group USA, Inc. Competition”, 2017).
Structure and Performance
Compass Group corporate responsibility is to provide the best and highest quality service to its clients. Promoting safety is top priority for its employees, clients and the end consumer because this builds trust and people are attracted to the highest rated talent. Stakeholder responsibility to Dow Jones, British Safety Council and the UN Global Compact are just examples of their commitment to structure and work partnerships building by developing policies and best practices. Compass Group is made up of many companies.
In the U.S., some of these companies are Bon Appetit, Canteen, Wolfgang Puck and many others. It is structure to cover Business and Industry, Education, Healthcare, Sports and Entertainment, Vending, and Remote Sites. Compass Group is also a leader in Restaurants and Purchasing and has strategic partners such as Thompson Hospitality Corp. Compass Group runs operations in more than 50 countries with over 50,000 customers (Food is Our Passion 2017). In July 26, 2017, Compass Group release the third quarter report which list its performance with a 3.9% growth in organic revenue as a whole and 7.1% in the U.S. and the continuous commitment to generating efficiencies in the management and performance program (“Third Quarter Update”, 2017).
Competitive Position
Compass Group covers many different areas of support and food services. As the organization continue to grow, it must keep in mind that competitors will fight for more market share space and will try to use any negative media information as a selling point to new clients. The organization has work very hard to accomplish the expansion into many countries, and is very successful at retaining clients. The target will continue to be the ability to reach as many food and support service clients with a global reach but keeping in mind the importance of local touch.
Conclusion
Understanding how internal and external factors can affect the performance as well as the client retention is key to the organizations continuous growth. Many opportunities are available to maintain, such as keeping all companies in federal and state standards, but also global requirements. Investing in employees and generating positive work environments will keep the company whole. Innovation and growing sustainability internally but also promoting it externally with its partners are fundamental to the growth in the global supply. The commitment to provide the highest quality to all customer including all support services along with focusing constant efforts to make a difference in the market share will grow the confidence in the client list and any possible new businesses.
References
Compass Group Mission & Vision. (2017). Retrieved from
Compass Group Swot Analysis, Usp & Competitors. (2017). Retrieved from
http://www.mbaskool.com/brandguide/tourism-and-hospitality/13436-compass-group.html
Compass Group Usa, Inc. Competition. (2017). Retrieved from
http://www.hoovers.com/company-information/cs/competition.compass_group_usa_inc.f0f3a19d658a40fa.html
Collins, C. (2016). The cost of privatized food in public institutions. Retrieved from
http://rabble.ca/news/2016/02/cost-privatized-food-public-institutions
Food is Our Passion. (2017). Retrieved from
https://www.compass-group.com/en/
Kundnani, H. (2006). Compass settles claims of bribery in UN contracts. Retrieved from
https://www.theguardian.com/business/2006/oct/17/3
Third Quarter Update. (2017). Retrieved from
https://www.compass-group.com/content/dam/compass-group/corporate/Investors/Results-presentations/2017/Q3TradingUpdate/Q3%20Trading%20Update%202017%20FINAL.pdf.downloadasset.pdf
Who We Are. (2017). Retrieved from
https://www.compass-group.com/en/who-we-are.html