Strategic management essay

To develop a professional repair workshop around the Auckland, with excellent service and high client retention, this can be easily implemented in private or authorized workshops.

2. 2. 2 Vision Our vision is enhancing our customer needs which in turn will expand our business. We want to become the most trusted auto-repair, washing service and sales of spare parts centre in Auckland. 2. 2.

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3 Goal By giving customers a high-quality service with more reasonable prices rather than our competitors.Giving solutions to problems that are faced by our business Merging with as many manufacturers and suppliers. Up-to-date skill knowledge. Maintaining good service and personal care we offer to our customers. Establishment of our sector with highest quality of service possible. 2.

3 BUSINESS MODEL Customer value Proposition Figure 2 Profit Formula Figure 3 (Snyder, Body Business Shop, NOVO 1 , 2005, PI-3) Figure 4 Key processes Figure 5 2. 4 Critical success factors Businesses that are good in achieving margins, particularly in distribution and advertising of prices have a good growth.Successful businesses specialize in maintaining safe operating conditions. Strong businesses are ready to stock and correct cost accounting systems. It is vital to own access to a talented working man power as vehicles have become additional technologically advanced and complex. This section makes superior client service is very vital. If customers ought to return to you for service again, business need have knowledge related to manufacturers.

The size and location of the business is essential for its growth. (University, pacified. Org, March PA) 2. Competitive advantages Quality: Our quality service exceeds the normal standards as the recruited technicians are skilled Process: There are teams divided in service, while servicing each team will be dividing the work. Layout: We have a process layout in service procedures, as to complete service faster. It maximizes efficiency and quality of services with reduced waiting time. Supply chain: Purchasing is finished with sensible negotiations and that we have a competitive advantage by building sensible relationship with vendors who will offer sensible quality and reasonable materials, components at short notice.Scheduling: we will able to provide service in the least possible time by using the human resource efficiently.

Inventory: main factor is keeping the inventory to a minimum level and expecting a high turnover. Through this our holding cost is reduced. Without affecting the quality of inventory, allowing parts or equipments to be replace quickly.

(GHz, Knock Consumer knowledge, Cot 09, 201 0) 2. 6 INDUSTRY ANALYSIS 2. . 1 SST PEP analysis Social Factors: Social factors on the auto repair are: Customers have a keen kick On technical skills and services that are being provided.The demographics of bound customers and what they require specifically they require to purchasing service varies.

Big family having a 2 or more number of vehicles they will go for a one time stop repair. Changes of the service pattern in the auto repair are also due to the customers having problems due to recessions in different mature markets. Mostly all Auto repair Businesses rely on performance of handling goods and services on their desired locations. Technological factors Technological factors include ecological and environmental aspects and the rate of technological change.Technology can affect costs, quality in auto repair business.

Internet has a vital role for marketing the business via web, according to J. D. Power and associations 59% of customer’s survey through web for the best repair shops. Economical factors Gross Domestic Product (GAP), income, interest rates, unemployment rates these all are basic economic factors that are being described here. It describes all the Government taxes, price of existing resources, buying capacity of people.

Regarding to New Zealand, transportation is the major activity of economical survey.And the population is also increasing at faster rate, thus the consumption of automobiles will be going at their peak. The population has an increasing rate till 2050. Our workshop has to grasp as many customers for our workshop revenue. Here there are many competitors and mostly developed workshops in this advanced economy market. Figure 6 (L, Transport blob. NZ, Seep 5,201 3) Above the car ownership in Auckland and vehicle maintenance has been grown by 32% since 2000, as this survey shows repair shop has the biggest growth in recent years. Political environmentPolitical environment in auto repair has a list of all law and regulations and safety measures that can apply to private owned workshops.

Regulations, conditions and laws must be fulfilled by automobile repair shops for sustaining the business Laws and licenses have here main purposes. L. To protect companies from unfair competitions. . To protect customers from unfair business practices.

Ill. To protect interest of society from unrestricted business behavior. The licenses and permits that are requires to start a auto repair shop l. Business operating license: if the business is inside the city itself, then operating license s needed.II. Employer Identification number: A businesses acquire tax identification number from the department of revenue or taxation. (Reuters, Smelliness’s. Finland, (n.

D. ), Pl -2) Ill. Business name permit and land use permits IV. Health department permit V. Sales tax licenses: for selling spare parts. VI.

Special state-issued occupational/ professional licenses. (Reuters, Environmental factors Environmental factors for an auto repair shop refer to variables and conditions around the shop that affects its working and performance, which cannot be controlled.A company/shop cannot change the environmental actors, but can control it without affecting its performance. Environmental factors for a workshop basically refers to the surrounding conditions which will be indirectly are affected by working and performance. There are no major environmental factors with the servicing and repairing of vehicles.

Proper ventilation must be kept on the engine servicing areas, oil spillages. The oil after service which are kept after completing maintenance and servicing of vehicles are sent for recycling or to the treatment facilities. 2. 6. Porters five force analysis Threats of Entry: (High power) If marginal profits of business are high, expenses are low and still demand is more than our business will have good revenue. Threats reduce the new coming companies not to enter into the market. These new entrants can change the complexion of this market and drive profits down as additional choices for existing customers.

These new entrants will change the complexion of this market and drive profits down as more options exist for consumers and selling prices are reduced. Our repair shop will have fresh entry, by attracting customers away from established businesses.Technology can allows smaller repair shops to compete with bigger firms. Supplier power: (high power) Suppliers are powerful as they that consume firm profits, like selling spare elements at a high price. Information technology can amendment the character of the link and balance power among customers and suppliers.

Information technology will amendment the character of the link and balance power among buyers and suppliers. Our automotive vehicle look can cash in of the components info and native distributors to induce offer of spare components once required.As a result, suppliers have high power to the demand and needs of the auto repair retailers. (And, Dorian Group. Len, June 16,2015, Pl -2) Buyer power: (Low power) “Under this market conditions, suppliers decide the price as they are many in market if there are many, and they need additional power after they purchase the specific goods, product or service. ” (And, Dorian Group. Len, June 16,2015, PI-2) Under this market conditions, if there are many suppliers and one buyer, the buyer sets the price, The negotiations powers of automakers are undisputed.When buyers have less option they have less power.

Customers are very price sensitive; they don’t have much buying power. Our auto shop has huge customers having numerous thoughts; we’ve got to include what they require to urge them into business. (And, Dorian Group.

Inc, June 16,201 5, p 1-2) (Auto Repair Calgary, Feb. 05,2012) Threat of substitutes: (High power) In porter model, substitute refers to other services and parts of other repair shops. The prices increase or decrease is affected by substitute maintenance services.

As a lot of substitutes on the market, the demand becomes more optional as a result of customers has a lot of alternatives. Many substitutes may be available for customers, but mechanical skills and experience has his own value in auto repair shop. The high cost of maintenance repair will lead customer to find alternatives. The price of spare parts and replacement maintenance services has a larger effect on customers decision.

Competitive rivalry (relatively low power) A larger range of competitive firms increase competition as a result Of additional firms competing for an equivalent customers and resources.TO gain temporary advantage on competitors, just need to implement change of prices Our auto-repair can improve features or service, implementing new technology in servicing can also reduce our rivalry. Advantage of computerized systems will allow us to reach via web. Computerized systems will be used to track the services.

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