rundown Mazda dealership,
PURPOSE:-
The primary purpose of this assessment task is to help students develop skills in the use of OM principles, theories and models in the analysis of the current operations of a service industry organisation. The assignment requires you to analyse the current situation, identify the operational problems within the organisation, and develop a set of recommendations that, when implemented, will overcome the identified problems without creating new ones. In this assessment piece you are expected to provide a solution, recommendations and action plan.
The secondary purpose of this assignment is to give students the opportunity to further develop analysis and problem identification and problem solving skills, as well as skills in presenting an argument for change within the framework of a business report.
DETAILS:-
Assessment task 3 requires the writing of a business report. The report should explain what the current situation is, what problems are in evidence and how those problems should be addressed. As a business report it should be concise, accurate and actionable. At the same time, the report should be founded on appropriate Operations Management principles and theories, and be supported by appropriate evidence and discussion from relevant academic literature.
Case study: Purchasing and Inventory at Silvaro Motors:-
Helen Silvaro, CEO of Silvaro Motors, has just returned to her office after visiting the company’s newly acquired automotive dealership. The new dealership was the fourth Silvaro Motors dealership in a network that served a metropolitan area of over two million people. Beyond the metropolitan area, but within a 45-minute drive, was another half a million people. Each of the dealerships in the network marketed a different make of car and historically had operated autonomously.
Silvaro was particularly excited about this new dealership because it was the first “auto supermarket” in the network. Auto supermarkets differ from traditional car dealerships in that they sell multiple makes of cars at the same location. The new dealership sold a line of Daewoos from Korea, Mahindras from India and Cherys from China. This brought the total number of brands sold by the group to six.
Since the purchase of a bankrupt Mitsubishi dealership 15 years ago, Silvaro Motors had grown steadily. As the city was relatively small, it was difficult to expand within a single brand, so eventually Silvaro purchased a rundown Mazda dealership, and shortly afterwards, a small Hyundai dealership as well. Under her direction, all three dealerships saw rapidly improving sales figures and the Silvaro Motors network grew in strength and reputation.
Silvaro attributed this success to three highly interdependent factors. The first was volume. By maintaining a high volume of vehicle sales and turning over inventory rapidly, economies of scale could be achieved, which reduced costs and provided customers with a large selection. The second factor was a marketing approach called the “hassle-free buying experience.” Listed on each automobile was the “one price—lowest price.” Customers came in, browsed, and compared prices without being approached by pushy salespeople. If they had questions or were ready to buy, a walk to a customer service desk produced a knowledgeable sales person to assist them. Finally, and Silvaro thought perhaps the most important, was the after sales service. Silvaro Motors had established a solid reputation for servicing, diagnosing, and repairing vehicles correctly and in a timely manner—the service division’s motto was “do it once, do it right”.
High-quality service after the sale depended on three essential components. First was the presence of a highly qualified, well-trained staff of service technicians. Second was the use of the latest tools and technologies to support diagnosis and repair activities. And third was the availability of the full range of parts and materials necessary to complete the service and repairs without delay. Silvaro invested in training and equipment to ensure that the fully trained personnel and the latest technology were available at all sites. What she worried about, as Silvaro Motors grew, was the continued availability of the right parts and materials. She knew there was a fine line between too much and too little stock. With the new dealership, the complexity of inventory control had increased dramatically. This concern caused her to focus on the purchasing function and management of service parts, accessories and materials flows at both a supply chain level, and as an internal function.
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rundown Mazda dealership, was first posted on August 29, 2019 at 12:17 pm.
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rundown Mazda dealership, was first posted on August 29, 2019 at 12:22 pm.
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