Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Handy Automotive

No description
by

Taryn Lemle

on 28 May 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Handy Automotive

Handy Automotive Aaron Horn, Taryn Lemle, Anthony Lozano, Sirena Plitt, Jessica Price, Jacob Prosser, and Will Taylor Business Policy 4940
May 30, 2013 Drivers of Change Key Success Factors External Environment Overall Attractiveness Direction of the Industry Competitive Industry Approach Assessment of Handy Automotive Current Strategy Overall Performance Business Capabilities Assessment of Fit Environment Strategy Environment <-> Strategy Business Capabilities Strategy<-> Business Capabilities ? ? Key Issues & Problems Faced by the Firm Strategic Proposals Proposal 1: Proposal 2: Proposal Risks Proposal Justification Why Proposal 2 Is For YOU! Challenges/Risks Outcomes Challenges/Risks Outcomes Implementation Measures of Success Financial Implications Total Cost Income Statement Changes Financial Justification Risk/Uncertainty WHY!? ? As a result of a weakened economy, Americans are buying fewer new cars, and they are spending more to maintain existing vehicles.

Over the years technological advancements have rationalized supply processes and increased efficiency.

Automobile customization and the length of ownership are currently at an all time high. Quality Parts

Supplier Relationships

Technology Advancements Auto parts industry is currently 2.3% of U.S. GDP

The U.S. automotive aftermarket industry is expected to grow 3.4% annually through 2016 to $263.8 billion, adding an additional $32.6 billion to the economy. (AAIA, 2013)

On average people are now keeping their cars for 11.3 years. Quality dependable aftermarket products, for the cars which consumers are now relying on longer.

Maintaining sustainable relationships with suppliers, creates advantages within competitive supply chain networks. To increase profits and return to previous profitability levels
Broad product focus and a broad market focus
To focus on expanding quality product offerings and strengthen relationships with consumers
In-house product development, product packaging, inventory storage, product shipping, and in-house sales and marketing
As of 2010 before the acquisitions, Handy Automotive's sales levels were $69 million. As of 2012 after the acquisitions, sales levels have jumped to $155 million.

After the acquisition of three aftermarket parts distributors, Handy Automotive is currently running at 88% capacity in regards to packaging and storage at each of their three warehouses. Reliable Supply Chain Network

Direct Sales Focus

New Product Development As a result of a weakened economy, Americans are buying fewer new cars. They are spending more to maintain existing vehicles.

Over the years technological advancements have rationalized supply processes and increased efficiency.

Automobile customization and the length of ownership are currently at an all time high. To increase profits and return to previous profitability levels

Broad product focus and a broad market focus

To focus on expanding quality product offerings and strengthen relationships with consumers

In-house product development, product packaging, inventory storage, product shipping, and in-house sales and marketing Reliable Supply Chain Network

Direct Sales Focus

New Product Development Economy

Social

Technology Goals

Product/Market Focus

Value Proposition

Core Activities Goals

Product/Market Focus

Value Proposition

Core Activities Operational

Customer

Innovation *Overall Handy Automotive's Current Strategy FITS With Their Environment* GAP GAP GAP Magnified Inefficiencies as a result of the new acquisitions

The growing trend of consolidation Timeline of Necessary Actions Focuses on increasing Handy’s level of service, expanding their market focus and product availability by adding retail outlets and expanding their product line to carry more profitable items like tires and rims. Increased Level of Service
Increased Profitability Increased Level of Service
Increased Profitability
Increased Operational Efficiency Growing too fast
Increased Expenses (retail)
Increased Inventory Costs Centers around cutting costs, focusing on already existing profit centers, and achieving better inventory management and warehouse efficiency through the use of a new technology system, called ASW. Timely Implementation
Costly
Counter Productivity during acclimation period Why proposal two over proposal one
Feasibility of proposal two
Addressing key issues sales order management customer relations
distribution and logistics customer relations
procurement customer relations, innovation
warehousing and inventory customer relations
financials innovation
business intelligence innovation Timely Implementation
Costly
Counter Productivity During Acclimation Period
Employee Rejection/Learning Curve Although there are risks involved in implementing changes to Handy Automotive's operational capability, the benefits greatly out weight the risks. Increased Level of Service
Increased Profitability
Increased Operational Efficiency The ASW software suite is estimated at $125K based on the company's needs. This includes the software installation and customization Payment Schedule: Handy Automotive will pay $62,500 up front with cash on hand, and pay the remaining amount in equal installments. Changes to Business Capabilities Primary aspect of our chosen plan in the area of operation is to implement a new technology system.

This system will not only improve Handy Automotive's overall operations but also boost their customer and innovation capabilities. As shown above software implementation will start immediately and take 2 months to complete . ASW will allow Handy Automotive to better track their COGS in order to determine the effectiveness of ASW.

Handy Automotive will also be able to look at customer satisfaction ratings as a measure of their improvement to their direct sales method. Due to the proposal focusing on cutting costs and streamlining in-effiencies, we do not recommend any revenue generating activities in the short term.

Expected decrease in COGS and overall logistics costs of 1% Sensitivity of projections varies depending on:

The firm's decisions going forward concerning expansion
Various economic factors Economic Technology Social Goals Product/Market Focus Value Proposition Core Activities Operational: Customer: Innovation: Economy: Technology: Social: Goals: Product/Market Focus: Value Proposition: Core Activities: Operational: Customer: Innovation: Controls potential risks by limiting growth
Financially feasible with current cash on hand
Focuses on one "umbrella" action to solve many key issues illustrated in projections
Full transcript