Monday, January 6, 2020
Promoting garage business - Free Essay Example
Sample details Pages: 20 Words: 5948 Downloads: 5 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? 1. Business Overview Motor Store is a newly established company in the auto industry situated in Omagh, Northern Ireland. Its objective is to satisfy local demand for auto parts and to sell products to local garages as well as the general public. DonÃ¢â¬â¢t waste time! Our writers will create an original "Promoting garage business" essay for you Create order Chairperson Brendan McAnulla will be in charge of the start-up of the store, its daily operations and also be responsible to the board. Financial resources for the company will be supported by the business program run by the Bank of Ireland. In terms of human resources available a skilled workforce will contribute to the success of the business in terms of both its management and operation functions. The product ranges to be dealt with by the company can be divided into four categories: car parts including replacements parts such as clutches and maintenance items such as oil/lubricants etc; car entertainment, tools for repair and maintenance and other miscellaneous car care products. The selling of brand products with high levels of recognition in the industry from suppliers such as Delphi, Valeo, Castrol Oil, and Bosch JVC car audio to a degree positions Motor Store as a company drawing upon an image of quality goods and superior customer service. As Gilbert (1999) points out pr oducts are a combination of tangible material and intangible value and as such brand names have significant impacts on the evaluation of intangible assets for products in the minds of customers. Thus it can be said to be useful for a car parts retailer to intermix corporate branding with quality brand goods. Along these lines the company has managed to secure a unique distribution channel of Delphi products. The major selected methods of selling so fare are to be in-store purchases and also mail shots which can support both in-store and mail order purchasing. The store will be located in the Gortrush industrial estate as it is one of the biggest car products exchange centers in Omagh. The location is convenient for traffic and offers a sophisticated infrastructure with easy access to and from a large hinterland surrounding the area as well as major arteries to Belfast. In addition placement in the industrial estate means the company will be able to obtain government support in te rms of tax benefits and lower renting cost from the special zoning regulations involved. This can be argued to be essential elements for a starting business such as Motor Store bringing overall cost-effective benefits during the difficult initial stages of trading. Working from the customer base of the industrial estate itself Motor Store is located next to a well established car paint distributor which should have the effect of providing an initial pool of possible customers from an already established business in a complimentary aspect of the industry. The store will be 3000 sq f. which will include front shelf based displays and a store room used to store car parts such as brakes. A well-presented display area supported by effective merchandise will result in a better shopping environment which will contribute to initial customer attraction in purchasing goods, (Markham, 1998). The pricing strategy to be employed by Motor Store follows a cost-orientated model which is often ch osen by new businesses because of the lower financial risks involved. In using this then the type of management technique adopted by Motor Store is Cash flow Profit Planner. A high cash flow level is able to decrease risks related to finance and operations which is a useful strategy for new businesses and one generally also it must be acknowledged supported by financial backers of new businesses. During these primary stages sales performance will be vital so Motor Store will plan to exploit a range of promotional tools to build a healthy sales base as quickly as possible. First in order to attract customers to purchase in the store the company plans to offer special product ranges at a pricing below full cost covering only direct costs. In doing so the store aims to create a price advantage over competitors in the short term and generate its own customer base rapidly. It is useful to blend pricing tools with other elements of a marketing mix since rapid penetration is essential for new businesses in gaining market share in the short term, (Shipley, 1981). Motor Store will also aim to exploit its promotional mix effectively in order to build up long term customer relationships as well as achieving short term market penetration. In retail situations the customer has full freedom in choosing products without the presence of a salesperson however an effective sales assistant is able to both assist and encourage customers in determining their choice of products. This face-to-face and human element can be a critical success factor for any retailer and arguably is even more so in the case of the company as part of its targeted market are trade-based individuals. This will necessitate sales assistants who have a degree of technical knowledge concerning the product range which allows them to deal with technical questions from a knowledgeable customer. Motor Store aims to concentrate on one to one contact and interaction with consumers as a direct way of communicatin g with customers. It is relatively easy using these methods then to provide information about the store such as contact cards and also provide special introductory offers directly and also promotional gifts, for example Replica cars. These human touches should encourage customers to purchase and will it is hoped provide a foundation for building long term loyalty to the company. Motor Store will also make use of radio advertisements and press advertising along with public relations activities such as sponsorship for garage staff training and customer events like trips to Silverstone and indoor karting. In doing so Motor Store aims to promote and image of customer friendly service and build long term business relationships with customers. This will be able to provide competitive advantages in competing with other retailers by leveraging store loyalty over the long term. As Blythe (2000) suggests public relations has become critical for companiesÃ ¢Ã¢â ¬Ã¢â ¢ survival over the long term and contributes also to adding extra value to each function in the value chain, from logistics to marketing and services. In addition to the former promotional activities Motor Store will also aim to provide mail shots and catalogues to customers which will allow them to order by mail. In the UK mail order services are linked with an image of cheap and convenience for industries such as the car part retailing industry. Therefore the use of mail order from catalogues will help Motor Store to spread its service and influence over a wider range of area and possible customers. These efforts made by Motor Store can be said generally aim to generate positive word-of-mouth with high quality products and professional service levels. The success of the measures should ensure the company quickly establishes a positive reputation in the market which will provide a solid foundation for continued success and growth. 2. Review of the external and internal environment PESTEL Frame work and Industrial Five Forces Model It is vital for managers to make sense and comprehend the factors comprising the environments in which their organisations will operate. Thus analysis of business environments becomes an essential tool of strategic management. Johnson and Scholes (2002) suggest that the external environments in which organisations operate can be analysed from macro and micro viewpoints. The framework of a PESTEL analysis is useful in giving a detailed macro account and this is the analytical tool to be used by Motor Store. The PESTEL model namely concentrates on political, economic, social, technological, environmental and legal factors. It provides insight into the core elements to be aware of when looking at the macro factors of relevance for organisational operations. Firstly whilst there has been continuous encouragement from local government and national government in developing the UK automotive industry there has recently been a downturn in demands for automotives as well as automotive parts, (De Saint-Seine, 2005). Retailing appears to occupy a vital role in understanding this economic change and this trend may have roots in the poor economic performance of England generally resulting in lower GDP and lowered consumer confidence towards purchasing expensive goods such as cars. However conversely it may be a feature that lowered confidence in purchasing new cars may go hand-in-hand with desires to maintain already existing purchases for a longer time, therefore MotorÃ ¢Ã¢â ¬Ã¢â ¢s StoreÃ ¢Ã¢â ¬Ã¢â ¢s supply of replacement and maintenance parts may be a significant growth area given environmental conditions. However studies reveal that the demand for luxury cars continues growing as a result of technological development in the automotive field as well as changes in peopleÃ ¢Ã¢â ¬Ã¢â ¢s lifestyle, (Roy and Griggs, 2005). The purchase of new cars is also impacted significantly by MOT requirements and EU legislation dealing with automobiles and cars. As such these elements indicate a strong position for Motor Store if demands for products can be successfully taken advantage of by the company. It is obvious then that the car parts retailing industry is closely linked to the car repair industry. Therefore the recent report for a consortium of motor manufacturers and repair garages resulted in the launching of the Automotive Technician Accreditation (ATA) scheme, an industry-standard brand developed to counter rip-off and substandard operators in the industry. This could have major influences on car parts retailers and provide an externally recognisable accreditation for consumers in determining the quality of a service provider, (Solley, 2005). This will be reinforced by the fact that the repair industry standards will be supported by various public awareness advertising campaigns over the next year which seeks to secure and recognise good practice in the car repair industry. It is reasonable to say that the higher standard of repairing services will not only require more technologically skilled garage workforce but also higher quality car parts and advanced repairing tools. As a result Motor Store should be in a strong position to capitalise on these trends. Additionally both organisations and individuals are subject to an unprecedented pace of technological change in the way business challenges are approached and the nature of these challenges in the 21st century. In order to keep pace with these changes information systems have evolved their role in business in terms of integration within management and services enabling for example electronic commerce methods to be deployed and controlled easily, (Elliot, 2002). This is also the case in the car parts retailing industry in that retailers can exploit computerised systems to control daily operations, stocks and merchandise tracking/ordering. From the customerÃ ¢Ã¢â ¬Ã¢â ¢s perspective the increasing use of the Int ernet means there is an increasing acceptance of this new shopping form. The United Kingdom is one of the leading countries in relation to e-commerce generally in terms of legislative regulatory support of Internet retailing and has an extensive broadband infrastructure upon which e-retailing methods depend. The UK government continues to strongly advocate the development of a Ã ¢Ã¢â ¬ÃÅ"legal and fiscal environmentÃ ¢Ã¢â ¬Ã¢â ¢ to facilitate itself to be the best place in the world to conduct e-commerce by 2002, (Galliers Wiggins, 2002). Such avenues represent possible means for Motor Store to differentiate itself further and reach a much wider possible market both in Northern Ireland and possibly also on the mainland. Linked with this IT and communications infrastructures and digital services companies as well as competitive financial marketplaces, such as London being one of the main European financial centres plays an essential role in the building of dependably e-s hopping networks. Surveys indicate that consumer acceptance of e-shopping in the UK is much higher than other countries in Europe, (Forrester Research, 2000). Thus it is unsurprising note already existing websites used by car parts retailing companies to sell online. Due to the nature of the market buying behaviour in that customers are more sophisticated and technically knowledgeable there is a requirement for full information and advice from sales person as well as detailed search information during the purchasing process. Research has demonstrated that information-rich products attract consumers in buying and websites can be useful in helping buyers better understand a productÃ ¢Ã¢â ¬Ã¢â ¢s feature and benefits, (Eisenmann Brown, 2002). Thus a combination of traditional players and new eBusiness parties might drive the development of the business-to-customer market in the car parts retailing industry. The fact that this phenomenon is a relatively new feature means again tha t Motor Store is in a position to capture a significant share of this emerging sector of the market. Furthermore it is vital to be cognisant of the changes in peopleÃ ¢Ã¢â ¬Ã¢â ¢s lifestyle which can be defined as a personÃ ¢Ã¢â ¬Ã¢â ¢s pattern of living in the world expressed in his/her activities, interest and opinions, (Kotler, 1986). Firstly research reveals that modern customers demand more time for leisure, sports, fashion and music products, (Frenie, J., Fernie, S. Moore, 2003). This arguably suggests that car accessory/entertainment devices ranges will increasingly contribute to car parts retailersÃ ¢Ã¢â ¬Ã¢â ¢ sales performance. Secondly rapid technological development causes automotive product life cycles to be shorter than ever before so branding strategy is often used by retailers to build and draw upon customer loyalty. It has been reported that modern customers are less loyal to one retailer thus effective public relations plays a vital role in maint aining customer trust. Thirdly in relation to automotive purchases more and more people show concern over environmental issues during the buying process. National standards such as the MOT legally requires high quality levels for cars in respect of environmental issues thus people are often legally required to purchase environmentally friendly products. Last but not least it is useful to be aware that a result of demographic trends the population is gradually ageing meaning older rather than younger customers being the larger possible market, (Gilbert, 1999). Two possible results from this include less time for in-store shopping as a result of work pressures and more brand sensitivity when they purchase due to longer periods of exposure to certain brands. This reflects MaslowÃ ¢Ã¢â ¬Ã¢â ¢s hierarchy of needs framework in that people seek to satisfy high level needs such as self-esteem, social status through purchasing branded products, (Maslow, 1998). Taken together these trend s imply the possibility for Motor Store to position itself as both a high quality provider in terms of products but also one which takes account of more sophisticated social concerns articulated by an ageing demographic. To take advantage of this successfully though would arguably need market research concerning the preferences and demands of older customers. In terms of the industrial environment it is worthwhile mentioning the five forces framework in that it provides a useful guide for the analysis of external environments organisation compete in. The competition generally in the automotive parts retailing industry has become increasingly intense. As a result of the downturn in the selling of cars the demands for the car parts are expected to slow down correspondingly. Yet as mentioned this trend may be countered by demands for maintenance related parts. In addition to traditional retailers there are also more e-sellers which are able to offer significant price advantages due to lower store and labour costs. Generally speaking the bargaining power of buyers has increased and consumers as a result need to be put at the centre of any strategic decision making carried out by retailers. It is essential for retailers then that they meet customer needs bearing in mind the changes associated with car purchasing and repair behaviours. On the other hand retailers can exercise more power in relation to suppliers since they could select the right products to sell meaning more ability to negotiate special product offers. Finally the future of new entrants in this market remains unclear since small businesses along with big companies might enter the market yet due to the downturn there might also be exiting of some already established operators. SWOT Analysis Key strategic information about the business environment can be summarised in the form of a SWOT analysis bearing in mind the core strategic resources and capabilities within the organization. Therefore fi rst of all it is essential to identify Motor StoreÃ ¢Ã¢â ¬Ã¢â ¢s strategic resources as well as its weaknesses. As a newly established store compared with its major competitors such as M L Auto parts and Auto Components Motor Store lacks an established customer base as well as a store brand name. Motor Store also does not have its own distribution vans currently meaning it will be inconvenient to provide mail order or online booking for its entire product ranges forcing it to depend on external distribution networks. Thus compared to its main competitors who possess their own vans for the delivery of products Motor Store is in a weak competitive position on this point. However as a new company Motor Store will be able to apply the latest technological applications enabling them to have competitive advantages in relation to techniques as there is no need to alter an already established organisational architecture to be able to apply such innovations. The offer of free technolog ical training for garages could generate good relationships with local garages that are a major part of targeted customers for the company. It is fair to say that professional and high-quality customer service is the most important strength for the store. This can be formed and solidified in the efforts in building good public relations and in-store services. Motor Store not only offers for example free parking coverage but also engages in various promotional services such as technique training for customers and free gifts. The unique distribution of Delphi products range secured by the company will enable them to satisfy customer needs for specific quality goods better than competitors. Also the solid basis of its supplier relationship will generate cost advantages for the store in terms of direct costs as well as providing unique resources for the distribution of certain brand products such as Delphi. This can be seen as a vital strength compared to other retailers since brandi ng quality goods to a large extent contributes to its overall competitive position. The financial support from Bank of Ireland should provide financial strength in terms of the corporate cash flow allowing responsive stocking of up-to-date product merchandise. Also the convenient location for the store provides a ready customer pool from which trade customers can be drawn and convenient distribution channels set up. In considering opportunities and threats changes in the environments have been dramatic and the pace of change is also intense in the competitive business world. One of the most important aspects of change is the development of technology linked to automotive and car repairing. As mentioned before the general downturn in the automotive market generates potential threats to the store. However growing demands for technologically advanced luxury cars also give opportunities to Motor Store if they can be exploited successfully. Motor Store as a new company is able to assi milate new information faster than older organisation according to organisational learning cycle frameworks. Thus the selling of brand products and technologically advanced car parts and repairing tools will give the company the opportunity to build up good relationships with car users particularly luxury car users and garages who have to keep pace with technological developments. As discussed the wide use of the Internet generates both threats and opportunities for Motor Store. On the one hand it is clear that online car parts retailers have cost advantages over traditional retailers. It means they can use a price premium to cut down profit margins for competitors in respect of quantity and quality. However e-commerce security and privacy related issues have caused some customers to return to traditional ways of purchasing. Yet e-commerce also offers opportunities to integrate businesses in terms of internal stock networks supporting online selling. Whether online features will be opportunities or threats will depend greatly on the successful application of a strategic plan dealing with the ramifications of the technology. Again as a new company Motor Store is in a strong position to develop an organisational structure which takes advantage of the opportunities offered. Regulations and standards developed by the car repair industry and national government also provides opportunities for Motor Store since better through providing higher quality goods Motor Store will be able to create a competitive position in the car parts industry through external quality accreditation. Garages will prefer technologically advanced suppliers and high quality goods in order maintain their service levels. Car users have to purchase better quality goods in order to meet legal requirements for automotives. With changing lifestyles there is also growing demands for car entertainment products and accessory product ranges. Growing interests in environmental issues will allow Moto r Store establish a new environment-orientated store image which should build significant positive customer relationships. While the youth market is predicted to decrease the proportion represented by the student population especially in higher education has grown. This produces a workforce with better education levels to deal with technological developments a significant element given the need for the company to have a knowledgeable workforce able to keep pace with new information as a result of technological development. 3. Current issues that requires strategic planning Strengths + Opportunities Customers are more concerned about brand names when they purchase thus Motor StoreÃ ¢Ã¢â ¬Ã¢â ¢s high quality goods and various brand product ranges should generate competitive advantages for the company. The provision and retention of a skilled workforce will also help in maintaining brand image and product quality. Therefore the use of a branding strategy needs to combine corporate strengths with opportunities in order for the company to compete effectively in the car parts retailing industry. It is critical to remember that branding strategy not only means the selling of brand products but also means creating a good store brand name through superior customer service as well as the retailing of high quality goods. The provision of a no quibble warranty can be viewed here a significant component of building store loyalty by ensuring customer trust in the quality of the service and product offered by the company. Secondly the development of e-commerce suggests opportunities for Motor Store in developing its online system in terms of internal control networks and corporate website allowing customers to search product information and purchase online increasing overall service provision efficiency. An e-commerce strategy needs to be based on a skilled workforce and have good financial support. As Margolis (1996) points out IT technology will be widely applied in the retailing system with traditional retailing forms being supported by e-commerce being the main trend in the retailing industry. Weaknesses + Opportunities According to the analysis above the main weakness for Motor Store is the lack of a long term established customer base as well as a store brand name. Opportunities based on technological development offer chances to set up a technique-advanced store image through sophisticated operations systems, skilled and professional workforce and high quality products. In doing this and supported by the use of e-commerce and public relations activity Motor Store should be able to effectively develop a good reputation along with a strong store brand name relatively rapidly. Strengths + Threats Due to the decreased market size in the automotive industry Motor Store should strategically position itself in relation to targeted customers. The storeÃ ¢Ã¢â ¬Ã¢â ¢s strength in providing quality goods offers advantages in relation to luxury car users since they require higher quality parts and more advanced repair tools. The use of a branding strategy arguably can overcome the downturn in the industry generally. In addition the products ranges dealing with car entertainment parts and accessories can generate profits to recover losses incurred by a decreased market size. From this perspective Motor Store should differentiate itself from competitors as a car parts retailer aiming at the luxury level car parts marketplace along with promoting an image related to driving enjoyment through car accessories and easy self service car care. In terms of garages they should be targeted as technologically based garages which require high quality products and technological advanced support systems for car maintenance. The pricing tool is not necessary in this differentiation strategy thus this strategy falls into a customer service based differentiation without a price premium leverage as defined in the strate gy clock, (Johnson and Scholes, 2002). 4. Mission Four principles guide the mission of Motor Store, these being ÃÆ'Ã ¢-ÃâÃ Empowerment of individuals ÃÆ'Ã ¢-ÃâÃ Equality ÃÆ'Ã ¢-ÃâÃ Honesty ÃÆ'Ã ¢-ÃâÃ Democracy Motor Store intends to provide excellent customer service based on superior quality products in order to satisfy customer needs. These customers include local garages and the general public. In terms of garages Motor Store is keen to provide professional and technological support. In relation to the general public Motor Store is eager to help them maintain their driving enjoyment through providing quality products and superior services in ensuring smooth operations of their vehicles. The image to be promoted by the company is encapsulated by being customer friendly and environmentally friendly. 5. Aims and Objectives ÃÆ'Ã ¢-ÃâÃ Product: -To provide varied ranges of top quality products to both garages and ge neral public. 1. Offer high quality car parts supported by a range of branding suppliers. 2. Offer sophisticated and high quality car repair tools in supporting both garages and individual customers. 3. Offer stylish and high quality car entertainment product ranges to enhance driving pleasure. 4. Offer advanced car care products to maintain value for cars owned by customers. ÃÆ'Ã ¢-ÃâÃ People: To build good relationships with several interested parties. 1. Provide superior and professional customer service to customers based on the provision of high quality products and informative advice on these products through supported training of human resource elements. 2. Maintain stable relationships with employees in order to fulfil effective work performance commitments in terms of customer service. 3. Satisfy the corporate board by achieving financial goals including roughly a 30% investment return after the first year in operation coupled with realis able long term organisational growth. ÃÆ'Ã ¢-ÃâÃ Branding: To create a strong brand name for Motor Store in terms of high awareness and recognition in the market for quality products and superior service. 1. Improve brand awareness through an effective marketing and communication mix. 2. Create a brand image of a customer orientated and environmentally concerned company. 3. Improved sales performance through successful implementation of the companyÃ ¢Ã¢â ¬Ã¢â ¢s branding strategy. ÃÆ'Ã ¢-ÃâÃ Organisation: To achieve organisational growth. 1. Organisational expansion over the first three years from Northern Irish market to the mainland UK marketplace. 2. Achieve 30% growth rate in the first year and 25% in the following two years. 3. Achieve leadership status in the car components retailing industry through exploiting advanced technological advantages. 4. Effective organisational control through effective intranet, team working networks among different departments. 5. Maintain good relationships with suppliers in order to obtain cost advantages and organisational efficiency in supply distribution channels. ÃÆ'Ã ¢-ÃâÃ E-commerce: To develop an efficient e-commerce model in order to support organisational control and support customer service provision. 1. Develop an efficient internal network contributing to organisational control and effective organisational operations. 2. Develop an integrated supplier-retailer-distributor relationship through e-commerce techniques. 3. Provide online access through a corporate website for product information and access to an e-shopping model. 4. Use e-commerce to support branding strategy in terms of word-of-mouth and building positive brand reputation. 6. Action Plan HR resource plan Customer-focused differentiation strategy This differentiation strategy relies on excellent customer service and high quality products thus primary a ctivities in the value chain from logistics, operations, marketing and sales, and service will each contribute to the effective implementation of the strategy, (White, 2005). As such the logistics department is in charge of product selection from suppliers, product storage, distribution as well as delivery. The use of e-commerce here is able to help achieve just-in-time distribution and product maintenance with substantial cost benefits to the business. The marketing group plays a vital role in the strategic implementation since they are responsible for effective promotional planning including advertising campaigns, PR activities, in-store sales and e-marketing activities. Superior customer service delivery can be achieved through offering quality products, competitive and special offer pricing, in store promotions and convenient delivery channels for customers. It is critical for the company that it applies technological developments in adding value to customer service provision. T he service department is responsible for the training of customers and in-store explanation and sales promotion in relation to products. The HR department is responsible for employee training in order to maintain high levels of expertise and knowledge concerning products among employees and allow for training to be conducted in better customer service techniques. At the beginning stages of a business a flatter organizational architecture supported by an intranet will be employed since this is a useful means of maintaining effective communication between different departments. Thus the leadership style will be a Dominance Approach to begin with and then gradually moving to Shared Vision Approach. This is because a strong organisational culture to a large degree contributes to the efficiency of operations and relations between management teams and employees, (Brooks, 2003). At this stage the strategic position of leadership in the management of business activities is central for th e organisational growth. Cooper (2005) argues that the role of trust as a way of highlighting strategic leadership is essential in corporate management. This is because trust as a belief is vital to the maintenance of business productivity and to the implementation of self-management based teams. For Motor Store one of the main strategic objectives is to build good employee relationships allowing for the retention of skilled workers. By sharing and promoting a strong unifying vision of the organisationÃ ¢Ã¢â ¬Ã¢â ¢s values and culture in the initial stages the foundations will be laid for a more inclusive approach reflecting shared organisational attributes during the growth phase for the company. Branding Strategy The implementation of a branding strategy requires effective cooperation within the store at all levels of operations and service provision. The marketing department is directly in charge of promotional and communication models which seek to achieve branding ob jectives which include improvement of brand awareness, continued building of brand image and good public relations to increase recognition of brand images. Radio advertisements have been chosen since it is a cheaper medium than TV for advertising is an effective method of communication directly with car users. Advertising in press along with mail shots will be printed out on A4 paper by using a four colour model based on a cost-effective strategy related to such campaigns. The catalogue will be delivered in store by sales people and spreading the store brand name by word-of-mouth is a significant element of the strategy. This will require a professional well-presented and enthusiastic sales team in these initial stages. Also effective communication models rely on quality customer service and quality goods thus it is critical that integration occur with all the primaries activities and functions of the company bearing in mind the branding strategy. E-commerce techniques will allow im plementation of branding goals in the short term at a low cost as a result of low costs involved in the use of the Internet compared with other mediums. Therefore there is a strong need to develop an effective internal network along with a corporate website initially. E-commerce The development of an e-commerce system will be finished within one month. Experts and representatives from different departments will co-operate and contribute to system design in tandem with an external e-commerce skilled consultant. In doing so Motor Store will be able capitalise on the opportunities offered by e-commerce in setting up a business in the short term in terms of improving brand awareness through viral marketing and attracting customers. The delivery of e-marketing products will be fulfilled by subcontracting to Parceline a large, well-recognised and trusted delivery company in the UK which provide services both within Northern Ireland and mainland UK, (Parceline, 2005). ÃÆ'Ã ¢-Ãâ Ã Timetable for Strategic Implementation Month 1 2 3 4 5 6 7 8 9 10 11 12 Year 1 Employee training. Gather customer data. Develop E-commerce model. Customer Service. Expand customer Base. Build up effective customer relationships. Employee Training program review. Excellent customer service. Achieve differentiation based on customer service. Year 2 Employee training. Maintain competitive advantage. Employee Training. Superior public relations. Maintain differentiation based on customer service. Year 3 Employee training. Maintain existing customers, create new customers. Employee training. Establish leadership position in the car parts retailing industry. Financial Plan ÃÆ'Ã ¢-ÃâÃ Assumption Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 25.42% 25.00% 25.42% ÃÆ'Ã ¢-ÃâÃ Financial Budget: First Year CATEGORY MONTHLY BUDGET AMOUNT MONTHLY ACTUAL AMOUNT DIFFERENCE BETWEEN ACTUAL AND BUDGET INCOME: Sales Forecast ÃâÃ £15,000 Internet Marketing Sales ÃâÃ £ 500 Interest Income ÃâÃ £100 Capital Gains Income Dividend Income Miscellaneous Income ÃâÃ £140 INCOME SUBTOTAL EXPENSES: Store Rent ÃâÃ £2,500 Utilities: Gas/Water/Electric/Trash ÃâÃ £200 Salary ÃâÃ £6,500 Telephone ÃâÃ £100 Office Repairs/Maintenance ÃâÃ £100 Product ÃâÃ £5,000 Gasoline/Oil ÃâÃ £150 Auto Repairs/Maintenance/Fees Other Transportation (tolls, bus, subway, etc.) ÃâÃ £100 Child Care Auto Insurance ÃâÃ £ 150 Computer Expense ÃâÃ £50 Entertainment/Recreation ÃâÃ £100 Toiletries, Household Products Clothing ÃâÃ £50 Promotion Gifts ÃâÃ £300 Healthcare (medical/dental/vision, inc. insurance) Radio Advertising Campaign ÃâÃ £300 Press Advertisement ÃâÃ £300 Federal Income Tax ÃâÃ £ 200 State Income Tax ÃâÃ £ 200 Social Security/Medicare Tax EXPENSES SUBTOTAL ÃâÃ £11,800 NET INCOME (INCOME LESS EXPENSES) ÃâÃ £4,040 ÃÆ'Ã ¢-ÃâÃ Corporate Balance Sheet Current Assets Year 1 Year 2 Year 3 Cash ÃâÃ £48,000 ÃâÃ £75,000 ÃâÃ £120,000 Inventory ÃâÃ £14,000 ÃâÃ £17,000 ÃâÃ £20,000 Other Current Assets 0 0 0 Total Current Assets ÃâÃ £62,000 ÃâÃ £92,000 ÃâÃ £140,000 Long-term Assets Long-term Assets ÃâÃ £15,000 ÃâÃ £15,000 ÃâÃ £15,000 Accumulated Depreciation ÃâÃ £1,000 ÃâÃ £3,000 ÃâÃ £5,000 Total Long-term Assets ÃâÃ £14,000 ÃâÃ £12,000 ÃâÃ £1000 Total Assets ÃâÃ £76,000 ÃâÃ £104,000 ÃâÃ £150,000 Liabilities and Capital Current Liabilities Year 1 Year 2 Year 3 Accounts Payable ÃâÃ £13,000 ÃâÃ £16,000 ÃâÃ £20,000 Current Borrowing 0 0 0 Other Current Liabilities 0 0 0 Subtotal Current Liabilities ÃâÃ £13,000 ÃâÃ £16,000 ÃâÃ £20,000 Long-term Liabilities 0 0 0 Total Liabilities ÃâÃ £13,000 ÃâÃ £16,000 ÃâÃ £20,000 Paid-in Capital ÃâÃ £4,300 ÃâÃ £4,300 ÃâÃ £4,300 Retained Earnings (ÃâÃ £1,000) ÃâÃ £1,200 ÃâÃ £4,000 Earnings ÃâÃ £20,000 ÃâÃ £18,000 ÃâÃ £22,000 Total Capital ÃâÃ £49,300 ÃâÃ £55,500 ÃâÃ £70,300 7. Monitor and Evaluating Performance Chairperson Brendan McAnulla will take charge of the management team which includes a Financial Manager, a Marketing manager, a HR manager and a Logistics manager. Data of daily corporate performance will be collected by computerised internal systems in such a way as allowing for the accomplishing of just-in-time stock control and dynamic promotional strategy adjustment. Monthly meetings will be held in order evaluate corporate performance and adjust strategic goals based on reported data. Annual board reports will enable evaluation of corporate performance within a financial year and in doing so satisfy shareholderÃ ¢Ã¢â ¬Ã¢â ¢s expectations of accurate performance and demonstrable organisational growth. Such reports will include annual appraisals of employee in terms of training and sales related performance data. 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