Industrial Services of America, Inc. and Its Strategies Essay

Industrial Services of America, Inc. and Its Strategies - Essay Example On liquidation, Harry Kletter purchased majority of the shares and on the eve of 1980s, he started a new company concerned with the selling of equipments associated with handling and disposal of solid waste. The new company operated with a new trade name known as Waste Equipment Sales and Services Company (WESSCO). WESSCO finally joined with CWS (Computer Waste Systems), a company that had specialized in giving consultations in relation to solid waste management to a number of businesses operating in diverse industries. The merging of these two firms led to the establishment of business operations headquarters at Louisville in Kentucky. Since then the company has acquired a number of recycling units in several regions. Besides purchasing of business units, the company has also seen itself enter into merger with other companies. Currently, the company is resorting to contracting third parties’ services in collecting and disposing solid waste. This will see ISA increase its cove rage area in regards to offering its services leading to amplified profits. Although the company has its operation in two sectors, that is, recycling and waste management, ISA is considering about concentrating in recycling activities. The reason behind this decision might be due to its efficiency in the recycling operations (Consonni, Giugliano & Grosso, 2005). External environment Industrial Competition The recycling business especially in the metal sector is very competitive in the US market. ISA faces stiff competition from those firms that have access to metal source. It is alleged that some companies have access to cheap scraps giving them a chance to sell the finished products at relatively low prices. The tough competition is further enhanced by existence of rivals that have adequate financial capacity, physical resources such as trucks and efficient marketing strategies among other factors such as large market share. ISA also fears that its competitiveness might adversely b e affected by weak economy and unfavorable market conditions (Consonni, Giugliano & Grosso, 2005). Risk Associated With Depending Upon One Customer ISA is exposed to great risk by depending on one customer that contributes over 60% to its profit. ISA majorly depends on North American Stainless pertaining to sale of its recycled metals. Environmental Regulations and the Government Policies The government and the environmental organizations frequently monitors the operations of all company’s that deals in recycling of materials in addition to management of wastes to ensure their practices are in line with laws and regulations governing the environment as well as company’s operations. Such policies entail environmental, health and safety issues such as Occupational Safety and Health Administration. Failure to comply with these laws ISA might find itself in the trouble of paying fines and thus affecting their profitability (Cointreau, 2001). Internal organization Managemen t team ISA brags of having experienced and qualified management team including the president and chief operating officer, Mr. Brian Donaghy as well as the vice president of the ISA Recycling, Mr. James Wiseman. The team management is cooperative and competitive and work closely with its employees to achieve the organizations’ goals. Employees At the end of 2010, ISA had about one hundred and eighty five employees who were employed on a full time basis. Ninety-eight of the employees are employed in recycling;