Sodexo’s Basic Business rules

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Sodexo’s Basic Business rules
Company’s Overview
Pierre Bellon founded Sodexo, the food and catering services business in 1966. The firm forms part of Pierre Bellon’s family business empire that traded in ship chandling business in Marseille. Initially, Sodexo’s target markets were local companies, hospitals, schools, and other organizations. However, after the firm was contracted by CNES, the French Space Agency, for cleaning and maintenance services, the company expanded its target market and services provided. Consequently, the firm’s expansion and diversifications resulted in challenges.
Nevertheless, according to the CEO, the business’s four basic rules proved vital. Below is the discussion on Sodexo’s four basic rules.
Be True to the Business Model
This presents the first business rule of Sodexo. The company refrains from venturing into an area that is contrary to its business model. This strategy is vital since Sodexo primarily offers integrated services (Landel 43). The firm’s business model provides that either its individuals or a team will provide services that do not involve any capital investments. Additionally, the business will not offer services related to professions such as nursing and accountancy.
According to the company’s CEO, this business model is beneficial since it does not require the firm to make any capital investments (43). The only expenses incurred are variable costs. Moreover, this model enables standardization, which results in savings. Furthermore, standardization is vital in the global grouping of Sodexo businesses.
Make People Happy and Productive
Sodexo’s second basic rule involves improving the lives of individuals. The firm understands that by improving the lives of employees in the company they are providing services to, they stand a chance of adding value to their clients. Sodexo goal is to make people happy and productive. It is with that they enlisted the services of professors and research centers to come up with the best idea (Landel 43). The company with the help of professors and research centers came up metrics such as social interaction, personal development, physical environment, social recognition, efficiency, well-being, and wellness as part of their services to the clients.
The primary aim of Sodexo is to add value to its clients, but since they utilize the services of its client’s workers, making these employees happy is their first step of ensuring that they achieve their ultimate goal of quality service provision.
Help Clients Execute their Strategies
This is the third rule that forms Sodexo’s business model. The company understands that their clients have strategies, which they must execute to develop a competitive advantage over their rivals. In this respect, Sodexo list helping clients to implement their strategy among its top priorities. In one example, Sodexo assisted its Chinese client in relocating from Beijing to another location outside the city (Landel 44). The main problem facing the company in this scenario was how it would develop a workplace value, which would appeal to its employees. Sodexo in this example helped the firm to establish a convenient office layout, in addition to designing easy commuting plan to prevent traveling inconveniences, brought by a shift of office location. Sodexo understands that this move improves its clients’ satisfaction and its brand recognition.
Rely on Employees Not Subcontractors
Sodexo’s fourth basic rule is concerning doing their own business without sub-contracting. In most instances, according to the CEO, Sodexo’s competitors tend to enlist the services of sub-contractors to carry out some of their activities. However, in the case of Sodexo, they believe that to have a more significant impact, a business must offer its services alone. In this respect, the company relies on its employees to achieve this goal. The firm motivates and develops its workers since they are its greatest asset. The company’s primary challenge is controlling its over 400,000 employees in more than 32,000 sites to understand their roles of improving peoples’ lives.
The Article’s Strong Points
One of the author’s points I strongly agree with regards helping clients to execute their strategy. Companies must ensure that they assist their clients in implementing their plan, since it forms part of offering quality services. Additionally, making people happy is the key strategies, which help employers to bring out productivity out of their human resources. Low morale equates to low production, in addition to instances of high employees turnover. Lastly, sticking to the business model is vital in ensuring that managers and business will excel in their field of expertise. Venturing into unfamiliar territories leads to losing and technicalities, which is avoidable by applying a business model akin to that of Sodexo.
The Article’s Weak Points
The weakest point of the article concerns not subcontracting. According to the CEO, undertaking the services alone as the company is significant in improving peoples’ lives. However, in my views subcontracting is sometimes vital. Involving the services of the subcontractor is important in some instances since they bring new ways of delivering services that will improve peoples’ lives. Ignoring the services of subcontractors might lead to the company not delivering quality services, or losing a contract altogether because they believe they cannot handle it.

Works Cited
Landel, Michel. “How we did it… Sodexo’s ceo on smart diversification.” Harvard business review 93.3 (2015): 11.