final slids sullivan ford auto world
TRANSCRIPT
Sullivan’s Auto World
Presenter: Vital vision06 August 2011
Group Names
Name roll #
Kinza Nawaz 09021920-028
Jaweria sheikh 09021920-036
Mirza mamoon 09021920-028
rao 09021920-028
Study contents
a. Case backgroundb. Current situationc. Major issuesd. Situation analysise. Alternative
strategiesf. Recommendationsg. Conclusionh. Case study
questions
a. Case background Walter Sullivan had
purchased small ford dealership in 1983
In 1999 borrowed money and transfer to new location
car dealership include new and used cars sales and service
departments medium-sized family-owned sales volume
1100 cars p.a.
b. Current situation owner (Walt) has died
suddenly family not interested
in the business daughter (Carol -
Health Care Manager) is temporary GM 2 weeks more leave
Nature of the service
possession processing tangible actions to peoples’ possessions medium level of contact
continuous service but no formal membership
fluctuating and random demand
Case Issues
Carol is not interested in managing the business but wants the business to succeed
Issues. Potential sale price
is low due in part to the poor performance of service department
RIP
Walt
issues cont.….. customers’ overall level of
satisfaction with service is low
high staff turnover sales staff reluctant to
introduce customers to the service department.
running at loss for last 6 months
behind in mortgage payments
accounts payable risen sharply in last 6 months
c. Major issue
What should be the effective tools which ensure Carol towards success…..
d. Overview of situation analysis
Internal analysis strengths weaknesses financial analysis market analysis
External analysis opportunities threats
Strengths
human resources technically skilled and
competent staff (high) above average rating of
the sales staff performance (medium)
Carol’s experience, knowledge, and expertise (medium)
Strengths cont…..physical resources
modern and well maintained equipment (high)
attractive showroom (medium) favourable location (medium)
Sullivans Auto World
Strengths cont…...
current market position well-known dealership (medium) customer satisfaction with NEW cars
is above average (medium)
WeaknessesHuman resources
inappropriate attitude of service staff (high)
service manager lacks interpersonal skills (high)
problems with service writers (high)
high turnover of service staff (high)
loss of key person - Walt (medium)
Weaknesses cont…..
Financial situation revenues are falling (high) deteriorating (insurance and some
funds) (medium)
Opportunities
Penetrate current markets car repair and maintenance extend hours of operation provide a drop off/pick up service auctions
Develop new markets body shop
Opportunities cont.……
Change of management new staff initiatives▪ introduce a service culture▪ internal marketing/training
programsAdopt advanced
technology computerisation improve service delivery reduce level of customer
contact
Threats
Economy high interest rates downturn in regional economy poor industry forecast
Competition survey revealed that customers are
likely to switch
Customer surveys
30 day survey of new car buyers above average rating on
satisfaction 90% of respondents were
informed about services
Customer surveys cont.…
9 month survey of new car buyers similar to national average on vehicle
ratings in lowest 25% of Ford dealerships on
overall satisfaction with service
Customer surveys cont.
intention to use other service suppliers For maintenance > 50% For minor repairs > 50% For major repairs > 30%
Flowcharting
also called service mapping or service blueprinting
mapping the service experience
Flowcharting analysis what does the customer want at each
step? what represents value to them?
can the process be sped up? can any steps be eliminated? where are the potential failure points -
bottlenecks? consider the links between front and
back stage activities - need to coordinate
e. Alternative strategies
Sell now at poor price
Improve the service department and then sell in 1-2 years
Appoint Larry Winters as Manager to improve service department.
What should I
do?
Evaluation criteria customer
satisfaction service quality customer loyalty employee
satisfaction family revenues cost refer to handout of
scoring model
f. Recommended strategy
Appoint Larry Winters as Manager and improve the service department develop a client-focussed service
department computerise client records and
service writing train staff in service skills extend hours of operation refurbish the service department
g. Conclusion
Business success relies upon the improvement of the service delivery system
Larry Winters can manage the change process.
Break
Questions.
Q1. How does marketing cars differ from marketing service for those same vehicles?Ans.….
Rao Habib
jevairia
Q2. Compare and contrast the sales and
service departments at Auto World.Ans.…
“Front End” - Sales "Back End" - Service
Aggressive Promotions to attract consumers
No need of extensive advertising to generate
service business
“Everybody's happy"
"Customers always seem to be miserable"
"Let's make a deal!"Chance to bargain for
discounts
Price of parts is fixed(if not under warranty)
Kinza Nawaz
Q3 From a consumer perspective, what useful parallels do you see between operating a car sales and service dealership and operating health services?Ans...
Power
Experience correctness
Mirza Mamoon
Q4. What advice would you give to Carol Sullivan-Diaz?Ans.…..
“Change or Die”