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”