Case 10 Bennetts Machine Shop, Inc.

Submitted By: AnkurGupta Madhur Chawla Anupama Talwar Simranjit Virdi GunashritNag

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CASE INTRO

Bennetts Machine Shop 1977 Pat Bennett-- Mechanical Engineer & Entrepreneur Business flourished Earned huge profits Expanded from engine rebuilding into engine installation Failed By 1987 Three types of work
Engine

Rebuilding Over-the-fender Work Tool Sharpening and Modification (Boeing Contract)

Bennetts Current Mission

Constantly finding new ways of repairing and renewing mechanical equipments and operating systems of all kinds especially auto engines Pat Bennetts self interest Entrepreneur by heart-- exploit his core competence

Levels of Strategy

Strategy : Patterns of decision and actions that management take to use core competence to achieve a competitive advantage Four Levels
Functional

Level Business Level Corporate Level Global Expansion

Bennetts Business Level Strategies

Select & manage the domain in which the organization uses its value creation resources Three dimensions:
Low

cost business-level strategy Differentiation business level strategy Focused Strategy

Business Level Strategy

Differentiated Focused Strategy

Specialization in rebuilt engines and installations

Distinct and way ahead of the competition

Competition were mere resellers

Offering new products to new customers

Over the Fendor works

Over the time

Initially no name, no business license - Customers gave money for parts , Pat only charged for labour 1977 -Incorpated Benett Machine shop Inc. -Moved into a commercial building in the city on rent 1979 Sales and profits rose through 1979 -But landlady forced him to move out -Took a loan of $ 80,000 from Gulf national Bank -Later in the year, bought a 2 acre land at Old Chennault air base

1975

1981
- Back to making Profits

1985 Bought property for installation 1986 The problem starts 1987 Recovers losses by the Boeing contract

SWOT Analysis

Plan Suggested-Strategy

Strengthen its core competence first Improvise on its marketing strategy Advertising and customer feedback Bennett should continue to work for Boeing

Structure

Structure

Redesign the organization structure

Supervisors or team leaders Incentive Structure ( productivity, customer service and cleanliness) Monthly or yearly bonuses

Standardization and Formalization Purchasing and inventory control A person to handle the financial books

Conclusion

Pat Bennett should focus on strategy issues and long term planning Main focus -- strengthen its core business Procedures and structure in place Exploit the owners talent and abilities

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