Sullivan's Case Study

FAR EASTERN UNIVERSITY
INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

C a s e S t u d y A n a l y s i s G r o u p 7 B MM1 1 0 8

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Brief Case Background

Walter Sullivan, the founder of Sullivan Ford Auto World, had died four weeks earlier at the age
of 56 of a sudden heart attack. Since no one Is handling the company, the bank had asked Carol
Sullivan-Diaz to temporarily handle the position of general manager of the dealership.

Carol Sullivan-Diaz, aged 28 was the eldest of Walter and Carmen Sullivans three daughter,
a health care manager by profession took over the business and was surprised to found out
that the family business is in financial trouble based on current financial performance and
market outlook.
In addition, CSAT results from car buyers show that the company has problems with their
service quality.

30-day Purchasers CSAT Survey Results
- Auto world achieved better than average ratings
- 90% of customers said that Auto world informed them of what to do if they needed service
- Less than 33% of respondents said that they have been introduced to someone in the service
department (which is a sales protocol)

90-day Purchasers CSAT Survey Results
- Overall satisfaction with Auto World Service Department was consistently low placing it in the
bottom 25% of all Ford dealers
- More than 50% of respondents said they would rather use another Ford dealer for future
service

- Major Concerns:
Promptness of writing up orders
Convenience of service hours
Appearance of the Service Department
Interpersonal variables such as attitude of personnel, politeness, understanding of
customer problems and explanation of work performed.



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Company Facts

Name of Company: Sullivan Ford Auto World
Category of Company: Automobile
Tagline: Lets Make A Deal
Become one of the best known in the metropolitan area

How did the company started?
- It started only as a small Ford dealership. But in 1981, Walter Sullivan had renamed it into
Sullivan Auto World and had become one of the best known in the metropolitan area. In
1996, he had borrowed heavily to purchase the current site at a major sub-urban highway
intersection. After moving the business to a new location, Sullivan had retained the service and
repair bays but repair the showroom into an attractive modern facility. After moving Sullivan
Auto World was changed into Sullivan Ford Auto World. After this the Sullivan Ford Auto
World started to became known and famous.
Where is the company established?
- At the corner of Wilson Avenue and Route 78
When is the company established?
- Established in 1981
Who established the company?
- Sullivan Auto World was established by Walter Sullivan

7 Marketing Mix
Product
The company also consists of 2 departments :

Sales(Front-end) & Service (Back-end) Department

FrontEnd: Car Sales
Sullivan Ford Auto World sells brand new Ford vehicles and pre-owned or traded vehicles that
they refurbish in the service department. Ford is a known brand for its quality. Refurbished
vehicles are also of good quality given the expertise of Auto World mechanics and service
personnel. Customers have to be physically present in order for the salesperson to
accommodate customers questions about automobiles and to make a profit in their
company.(People Processing)



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Backend: Service Department
The Service Department offers servicing for cars that broke-down and/or need parts
replacement (Possession Processing). Here customers doesnt need to be present, and can
come back when their car is already fix at a given day or time to them.

Place and Time
Sullivan Ford Auto World have the advantage when it comes to the place or location of the
business. Its located in a suburban highway intersection , in an area of the city where housing
development are constructed. The location gives Autos World visibility and accessibility to 2
target market, motorists and residents.

When it comes to time, they are using the normal operating hours that is the same with the
servicing of the vehicle that is inconvenience in the part of the consumer. Another factor is the
work order process is slow that it causes temporal risks to consumers.

Distribution of Service:
Core Service: Car Dealership
Supplementary Service: Vehicle Servicing

PRICE
When it comes to price, there Is no definite amount that is stated in the case. But is indicated
that Sullivan Fords Auto World has low margins for selling brand new vehicles. It was even
stated that Walter Sullivan, the former owner of the company, was known to be known in car
sales of emphasizing promotions, discounts and deals to consumers that is being used to attract
many customers to maintain volume.
The companys pricing is to lower the price to stimulate demand or attract buyers. The only
disadvantage is that consumers might perceive that offering such lower price and discounts
could mean poor quality of service to consumers.
The pricing strategy of Sullivans Auto World is penetration and target pricing.

PROMOTION
In the case, it is stated that the former owner. Walter Sullivan is very known for offering
promotion, discounts and deals to its consumers. He even was shown in television and radio
commercial, and known to be a consummate showman and entrepreneur. Most of all is
practicing public relation, which is active in community affairs. These may be one of the reasons
why financial problems were not really experienced by the former owner.
But the only thing that Walter Sullivan had not promoted is the service department, they have
focused too much on sales contribution of sales.



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Now that Walter Sullivan had died, there is no promotion stated in
the case. That would be one of the reason of the financial downturn of the company. The
company should restore again the promotions done by the former owner and add promotion
the service department of the company.

PROCESS

Writing of Service Orders
Process for service writing is out of date and is inconvenient to customers. Bottlenecks and
disturbances are not properly managed. Customers relay the problems on their vehicles to the
service writers. This gives high probability of incorrect diagnostics, solutions offered and
estimates when customers have low technical know-how. This may be the reason why rework
is a common occurrence which frustrates customers even more.

Sales Process
Salespeople do not adhere to the sales process standard procedure. Some sales people are
hesitant in referring the Auto World service center because they know customers may get
turned off and risk losing the sale. Referral of the service center is part of the sales protocol
and should be firmly implemented.

PHYSICAL ENVIRONMENT OR SERVICESCAPE
As described and stated in the case, the front-end or the sales area, showroom and office,
which is the most visible area to consumers are modern and well-maintained, it even have a
high ceiling that can really attract and amazed people.
But when it comes to the back-end area or the service department are, the invisible area
consumers are the exact opposite. Having the looks that is is not well maintained, is one of the
main reason why sales person doesnt follow the companys protocol of introducing this part of
the company to the consumer.

PEOPLE
Car Sales or the Front end team is composed of the Sales Manager, 7 Sales People, the
Office Manager & the Secretary.
The Service Department is composed of the Service Manager, Parts Supervisor, 9 Mechanics
and 2 service writers.

Survey results show that customers are not happy with the quality of service provided by
the Service Department. Lowlights of the CSAT survey results are: promptness of writing
up orders; convenience of service hours; physical appearance of the service department
personnel; their politeness and way of understanding customer problems and



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communicating work performed. Service writers are demotivated and have high
absenteeism and turnover rate due to high level of stress of the job.

PRODUCTIVITY
The service department is not operating at full capacity due to high stress in work and the
servicescape of the back-end area is also the cause.

In addition, the service personnel where not being able to work productively and efficiently,
that lead them to do a lot of rework due to incorrect diagnosis. On the other hand, service
writers are fully utilized due to the long and manual process of writing service that contribute
to longer queues to customers making them to have a negative disconfirmation in the service of
the company

Company Personnel are inefficient and unproductive In performing their work in the company.

Industry Facts

Type of Industry: Automotive Industry
Specifically: Selling of Automobiles to Consumer and Producing Services or Car Dealership
Competitor : Bill Froelich
One of their competitor is Bill Froelich, owner of another nearby dealership, who had offered to
buy Auto World for a price that represented a fair valuation of the net assets. Froelich was
eager to develop a network of dealerships in order to achieve the economies of scale, which
was the reason behind his interest in buying Sullivan Auto Worlds Company.

Froelich price on new cars were very competitive, and his nearest dealership clustered several
francishes (Ford, Lincoln, Mercury, Volvo and Jaguar) on a single large property.

Financial Status:
- Average sales of 1,100 cars a year are being sold by the company (New and Used cars)
Posted Revenues totaled :
$26.6 M new & used sales (from last years $30.5 M)
$2.8 M service & parts sales (from last years $ 3.6 M)
- Margins on car sales are low (5.5% of sales revenue & 25% for service)
- Auto Worlds financial situation had been deteriorating for the past 18 months and running at
a loss for the past 6 months.



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- Past 12 months financials show that gross sales figures are not
enough to cover fixed expenses
- Margins had been squeezed by promotions and other marketing efforts.
- Due to rising fuel prices, industry and in-house forecasts for future sales were discouraging.
- Trend is shifting towards vehicle service transactions.

Environment Facts
Employee
As stated in the case, employees are demotivated and have high absenteeism and turnover rate
due to high level of stress of the job. Old work-process, the servicescape of the service
environment and the lack of employee numbers compared to the job work they have to do are
the reasons of their stress. Customers with attitudes is another one that really affect their work
performance.

Competitors
One of their competitor is Bill Froelich, owner of another nearby dealership, who had offered to
buy Auto World for a price that represented a fair valuation of the net assets.

Froelich price on new cars were very competitive, and his nearest dealership clustered several
francishes (Ford, Lincoln, Mercury, Volvo and Jaguar) on a single large property.

When it comes to advantage, Sullivans Ford Auto World has it. Since first, it is already known in
the metropolitan area of having in its core product, Ford of having good quality. Refurbished
vehicles are also of good quality given the expertise of Auto World mechanics and service
personnel. They have the advantage but Sullivans Ford Auto World must solve its problem
quickly as much as possible specially the service that customers are getting. Make use of their
advantage, and always be observative when it comes to their competitor. If possible, make the
price in Sullivan Fords Auto World to be competitive to or be more competitive than Froelich
offering.

If they would not be able to perform good service and the problem keeps going.
Froelich can withstand them and be the buyers choice when it comes to car dealership.

Customers
Customers are not happy with the quality of service provided by the Service Department and
said in a 90 Day Purchase CSAT Results of Survey that they would use another Ford dealer for
future service.



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Lowlights of the CSAT survey results are:
promptness of writing up orders
convenience of service hours
physical appearance of the service department
When it comes to the interpersonal variables of personnel, their politeness and way of
understanding customer problems and communicating work performed.

Dissatisfaction of customers was also a result of longer waiting hours and poor accommodation
of personnel making their attitude to be sometimes abusive, unforgiving and rude.

Media
Another thing that Sullivans Auto World should make use of since their companys financial
status and their service offerings to their customer now is poor to consumers opinion and
experience.

Media can be use to promote positive things to an organization but can also be a hindrance to
them. In here, Sullivans Auto World should promote positive things about their company that
can reduce the negative impact of their service to their customers.

No promotions were being said in a case after Walter Sullivan had died. Promotions, discounts,
and deals can be used in order to maintain volume. Also Carol Sullivan-Diaz can do what his
father had done years ago, where their company is being promoted in radio and television
commercials. Not only that his father is active in community affairs.

There are minimal promotion activities for the service department. It seems that management
has overlooked the shift of sales contribution from car sales to service. They should also launch
promotional activities for the service department to help drive service sales up since the
service department is not operating at capacity.

Lack of promotion can also affect the company. When consumers know, that the company is
practicing good will or it is employing Public relation. It can change the negative perception of a
customer and it indicates that the company is also concerned to its environment and to its
people and not only in making profit.

Supplier
No supplier was said in the case since the company itself is a dealer who specialize in producing
parts. But I can suggest that they can get a dealer that offers low price so that when they
became out of stock of parts, it would be easier for them to get a part It is advisable that they
should get a close supplier relationship to make Sullivans Auto World be more competitive,


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and can have a chance of offering parts at a price that is affordable for consumers and to avoid
price increase that can affect consumers decision making and the company sales. Also, having
a close supplier relationship would assure that the company is producing secure quality
products.

I. Problem Statement:
Should Carol Sullivan-Diaz sell Sullivan Ford Auto World to prevent future losses or try to turn it
around? If she chose the latter, what changes & improvements should she implement to
improve the service quality or performance in Auto World?

II. Statement of the Objectives:
Increase sales volume and selling gross
Increase convenience in part of the costumers
Improve service department performance
Develop, increase and maintain motivation and confidence of employees in performing
their job
Develop good management in the company

Improve and develop knowledge and soft skills to employees
Improve and develop interpersonal communication
Make use of marketing promotions to increase consumer awareness and preferences
Improve the servicescape of service department
Improve and develop work ethics
Initiate, develop and enhance trust-based customers relationship
Innovate work-order process
Ensure customer satisfaction

III. SWOT ANALYSIS

STRENGHTS
Strong brand equity.
This is the advantage of Sullivans
Auto World especially to their
customer and most specifically to
their competitors.
They are already an established
car dealership company and had
became one of the best known in
the metropolitan or in their
location. The former owner, who
WEAKNESS
Servicescape of the back-end office or
service department
It is not well maintained and turns
off customers. The physical
appearance which is a cramped
room with peeling paint can affect
not only the impression and
emotions of customers but also
the behavior of the employees.
This is one of the reason of lack of


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is Walter Sullivan had been known
a well-known salesman and
entrepreneur, appearing in his
own radio and television
commercials and had been active
in community affairs.
Known core product
The company is known to be
selling and producing a product
Ford that is best known for their
customer to be a well-established
quality car brand.
Servicescape of Front-End Office
The nice faade and showroom
will also attract a lot of possible
customers.
Vast display of cars and truck in
front of the showroom
High-ceiling in the showroom
Location advantage
Its location on the intersection of
Wilson Ave and Route 78 suggests
a prime location for a car
dealership.
Can also be easily seen because of
huge rotating sign at the corner of
Wilson avenue
Carol Sullivans experience and expertise
Since being a health care
managers responsibility has a lot
of similarities to being a car
dealership. She can make use of
those knowledge in improving the
performance of Sullivan Fords
Auto World personnel and
company.
motivation, customer sensitivity
and high employee turnover,
Front and office employees tend not to
follow the protocol of referring the
companys vehicle servicing department or
back-end office to consumers.
This became the cause for
customers to prefer other Ford
dealer and dissatisfaction.
Knowing the services and seeing
the services that company offer
can give the consumers an idea if
this company can be trusted or
not and if companys services can
help them in their car problems.
Poor management of customer
complaints, customer concerns
Poor customer result survey result for the
back-office or service department
Longer waiting queue in work order
process
Lack of employees knowledge, poor soft
skill, and poor work ethics
Lack of knowledge and incompetent
service writers
Inefficiency of customers performance
Company is more focused on making sales
rather than on gaining the trust and
making customers happy

OPPORTUNITIES
Make use of Carol Sullivan experience in
health service management. Health
services are very high contact and her
expertise will be a huge help in turning
around the quality of service of Sullivan
Ford Auto World
THREATS
Internal
Employees lack of knowledge, personal
soft skill, lack of work ethics, lack of
customer interaction and lack of customer
satisfaction that can cause the company to
have a downfall in the industry


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Improvement of back-end or service
department
Bigger and cleaner front-end place
Making employees more efficient by
providing training and motivation
Large amount of insurance policy in
Sullivans life
More sales if problems were solved and
improved
Costumers looking for pre-owned but
convince in buying a new one
Economical
The company can make use of innovation
in their product in which they would make
the car a solar-enery, energy-efficient or
which is fuel-efficient car and environment
friendly car that is of high-quality and as
much as possible at a affordable price
As much as possible, Sullivans Ford Auto
World should have a supplier where they
have a close relationship for them to
enable selling parts of cars to consumers
at an affordable and competitive price
Making use of season advantage or
economy advantage, the company can
give discounts, promotions and deals to
consumer
The location of the company can be used
as an advantage for customer to easily
access our company

Political
Be community involved, where you would
make use of some Public Relation, like
having a campaign of helping poor people,
uneducated children, save the
environment, helping people who are
typhoon victims, giving free clothes and
foods in Christmas to poor children and
many more that is giving concern to
citizens, government and environment of
the country you are working in.
Poor management
Poor result of customer survey showing
that they would switch to another Ford
dealer
The customer, a man of about 40, wearing
a windbreaker and jeans, shouting and
yelling at the salesperson, complaining
about the service can affect the
perception and feelings of consumer who
are present at the vicinity at the time of
incident may be turned off or lose interest
in purchasing their needs at the dealer
shop. This can also lead to bad publicity in
the social network or media if the
happenings were being shot.
Some customers realize they cant afford
brand new cars and buy pre-owned cars

External
Competitor
Bill Froelich, owner of several dealerships,
expressed interest in buying out the company.
Froelich who have a competitive price in his
business can affect the sales and profit of
Sullivans Ford Auto World

Bad (WOM) Word-Of-Mouth of Customers
Since consumers are experiencing dissatisfaction,
they can spread their experiences to the social
networks, or to their friends or to any other
people that can make a negative publicity to
Sullivan Fords Auto World Company.
Competitors with better services
Decreasing market share as more
competitors enter the business
Unstable economy
Fortuitous event
Events like heavy typhoons Yolanda, that have
entered the facility of Ford and have destroyed
cars equipment



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Make use of our company name in asking
for donations or help our campaigns we
are joining and establishing.

Technological
Innovate the work process of the company
to make serving customers easier and
convenient.
Innovate the core product of the company
in terms that it would benefit the
customer and the company like making
energy-efficient cars, cars where you can
watch tv or dvd.

IV. Alternative Marketing Strategies
Increase sales volume and selling gross
Provide excellent service department performance
Make use of marketing promotion
Give customers the convenience and accessibility of ordering, scheduling their
appointment and making them have the privilege to choose when their car is to be
repaired
Provide a website that would enable them to see the estimate right away of the parts
and equipment and if it is available

Increase convenience in part of the costumers
Make use of technology to let the customers access their order status online, the
companys offering, estimate of car repairs, the cost of the parts and its availability, the
scheduling of appointments, and to see the companys information and updates
Make use of text messaging to make it easier for them to be informed and for faster
transaction
Make service convenience and store open 24 hours

Improve service department performance
Adding more personnel in the service department
Add more facility and equipment if needed
Providing training, and knowledge to employees in service department
Give higher compensation


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Develop, increase and maintain motivation and confidence of employees in performing their
job
Change and improve the servicescape of service department. The servicescape can also
the behavior and work performance of employees.
Give employees rewards, additional incentives, additional compensation if possible, that
can make them feel more motivated like if they meet this quota or sales percentage
they would be going on a vacation in other country.
Be a mentor, a friend, a role model and at the same time maintain authoritative if you
are having high position in the company. When employees are comfortable with people
they talk to, they would be easily influenced and can be easily motivated.
Build and maintain strong relationship with employees, taking consideration of their
feelings and their problems, even in their personal lives if you help them they will feel
more important and appreciated in the company.
Always guide each employee, guiding them means that you are concerned to them and
that they are important in the company.
Acknowledge them if they do something good, praise them it can increase their self-
confidence. If employees do things wrong, comfort him/her and advice him and
motivate that he/she can do it better.

Develop good management in the company
The owner or the manager should always be monitoring the companys financial and
employees status, employees feelings should also be considered and given importance.
A good management and communication skills can be attained if an employee is feeling
motivated, inspired and supported by his manager.
Strictly impose rules and policies needed in order for the business to be a success.
Practice 5 basic function of management, planning, organizing, directing, leading,
staffing and controlling.
Provide training, orientation and guiding to personnel and employees on how they will
perform their work.
Management should put focus in building strong customer relationship rather than just
focus on acquiring new customers. Management should focus on keeping customer
happy rather than just making sales Trust-based relationship selling should be taught to
an employee, and highlight the importance of this in the organization and to
themselves.

Improve and develop knowledge and soft skills to employees
Employees avoid handling and facing customer complaints that became the root cause
of problems and major reason for customers to be dissatisfied and irritated.



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Employees should be first selected and trained before being given them the opportunity
to work at a company, having the knowledge and knowing how to handle complaints
are one of the things that a qualification a employee should have.

Improve and develop interpersonal communication
Train employees and give them knowledge on how they can improve their interpersonal
skills.
Boost their confidence in making communication with other people, suggest them
strategies on ways how they can enhance their communication to other people.

Make use of marketing promotions to increase consumer awareness and preferences
There is a very weak market communication of Sullivans Ford Auto World to its
customers and employee.
To customers, the company should make use of some media which is being
active in community affairs, appearing in radio and television commercials. Make use of
Public relation in which the company should be active in community affairs. Lastly, the
company should emphasized promotion, discounts and deals in order to attract
customers and maintain volume. Making use of Public Relations can also change the
perspective of consumers who experience negative dissatisfaction in the company.

Improve the servicescape of service department
Invest financial and renovate the servicescape of service department
Hire cleaning personnel
Impose cleanliness in the whole company, not only in the front-end but also at the back-
end.

Improve and develop work ethics
Train your employees, orient and direct them the importance of work ethics and how
can this affect the companys status in the economy
Rules and policies in the company can also be used as a form of dos and donts to
employees.

Initiate, develop and enhance trust-based customer relationship
In developing trust-based customer relationship, the salesperson here is required to
gain the trust of the customer either by using the trust builders or knowledge needed.
The people here is focusing on getting the trust and preference of the consumer to the
company, one way they can get this is by giving attention to their customer feelings and
giving consideration and appreciation.


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Teach your employees, train and orient them and make it as their goal
and companys goal to provide customer value to their customers.
Because of not being able to accommodate customers, this has become
the root and main reason of the problems. Accomodating them, giving
them attention, asking for their complaints and suggestions is important
not only to the company but also to them. When customers feel
important, they also feel happy that the company is being concerned to
them.
It can be gain by using expertise, being a dependable salesperson,
candor, customer oriented and be compatible or likeable by customers.
In order to be trusted the salesperson should show that he or she have
these qualities.
Teach your employee and the companys vision and objective to be
customer oriented. Apply the marketing saying and belief. Customer is
always right.
Be respectful to them all the time.
Provide services to customers where they will experience a simple
confirmation or if possible positive disconfirmation.
Provide value-added solutions to customers like if they cant decide you
can suggest or give advices to them.
Practice follow up post-sales to customers, making them informed, asking
how they are, making them feel important can make it for them for their
trust to be gained and if possible to be a loyal to your company.
Give the customers security, warranty and guarantee in the product they
are purchasing from the company.
Encourage visit to service facility to customers, so that they can know
what are the services that your company is offering that can also help
them in their car problems.
Give customers online access about their order status or make use of
some social networking sites or text messaging in order for them to be
easily informed and convenient at their part.
Practice mutual benefit to gain the trust of the customer

Innovate work-order process
Make use of a modern way of processing orders and inputing information of
transactions and orders of customers by using new technology which is a
computer such as spreadsheet, microsoft word in order to make the work easier
and convenient in the part of the consumer.
Enable access of work-order processes in the companys website


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Make service convenience 24 hours and give the customers the chance to
choose the time of making their cars to be repaired
Providing quick service and order processing
Shorter waiting queues
Providing follow-up post sale
Give customers value-added solutions to customers
Practice trust-based relationship selling
Provide online websites which it would be easier for them to see the offerings of
the company and their order status
Keep them informed
Give them discounts, deals in seasonal seasons
Provide guarantee and warranty
Provide security and safety in the services and product offering. But also inside
the vicinity of the organization
Never argue with the customer.
Apply the marketing beliefs and concept : Customer is always right



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V. Analysis
MARKETING STRATEGY 1
Sell the business
ADVANTAGE(+) DISADVANTAGE(-)
1. They wouldnt have to look for potential buyer
because Bill Froelich is already interested in buying
the company.
2. Selling company will cut further losses.
If they cant resolve the problem its better to sell it,
rather than let the financial situation worsen or the
sales value of the company would continue to
decrease. Since the company also had a situation of
financial problem that deteriorates for the past 18
months.
3. Fuel prices are increasing and car sales industry
forecast looks discouraging. They might be better off
selling the dealership.
4. There is not enough financial investment that can
be used to improve the servicescape of the back-end
office or service department as well as to offer
training to improve the quality of service of the
employee. If they sellout, they wouldnt have to shell
out more money.
5. Selling gross is shifting from car sales to vehicle
servicing. The company cannot capitalize on this
because the vehicle servicing department is not
doing well.
6. Neither Carol nor any of the other family members
is really interested in making a career of running the
dealership. There is no longer a need for Carol to
resign from her job where she is successful.

1. Selling would lose the family legacy.
The dealership is the legacy of Walter Sullivan,
wherein he was able to build it and position the
company as one of the best known in the
metropolitan area. His efforts would be wasted
for nothing.
2. Bill Froelich is offering to buy the company at
a price represented by a fair valuation of the
assets plus goodwill of $250,000, which is lower
than what is usually offered. Selling Auto World
now means selling at a loss.
3. As of 30 day survey results, the front-end
customers are still quite satisfied with the
service of the sales department. The company
has some competent sales people.
4. Carol can use her expertise in health service
management to improve the financial
performance of the business. Selling now will
lose the opportunity to sell at a higher and fair
price in the future.
5. Selling the company would mean giving up
everything that their father had build up and
work hard for how many years.

Try to turn the business around
ADVANTAGE(+) DISADVANTAGE(-)
1. Carol has an MBA degree and a successful
marketing career in the health care services.
Knowledge, expertise and wisdom that she gained
from these experiences can help turn around their
family business.
2. Carol is armed with familiarity with the operations
of Sullivan Ford Auto World since she had worked a
1. Carol might need to resign and give up from
her current dream work and dedicate her time
for the family business to be improved and
established once again.
2. If her attempts to save the business will be
unsuccessful, the company may incur more
losses and might be sold at a lower price.


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part-time as service writers and the data from CSAT
Surveys and sales report can help her identify
problem areas and find solutions to these problems.
3. Auto World has technically skilled and competent
staff, they only need to be motivated, trained more
and only needing to have open communication
between the management and the employee.
4. The business has an advantage in its location and
has already established a good positioning in the
minds of the consumer on which has a good quality
core product and a well-known dealer of car
5. Carol is relatively young and can think of
innovations or creative ideas and solutions to the
company. Even if she fails, she will not have a hard
time finding new work in the health care industry
which she prefers.
3. Carol may lack the influence to the
employees of Auto World. To save the business,
Carol needs to implement changes on the
operations and employees might resist these
changes since Carol is not their former boss or
mentor in the business.
4. Carol may lack some knowledge needed in
the car dealership to be successful, in this case,
she needs to learn those things either by asking
some knowledgeable employees to teach her or
to attend school courses that tackles car
dealership and are related to car that would be
needed in running the business.
Hire an expert in auto sales and auto service to run Auto World.
ADVANTAGE (+) DISADVANTAGE (-)
1. There will be no need for Carol to resign from her
current job and just oversee how the hired expert
will run the business.
2. The expert may be a generalist, means having
more knowledge in different subjects and could have
many experiences that can be useful in making the
Auto World recover from financial situations and
make it a better business.
3. The expert may have the knowledge of resolving
the problems of the company and may be good in
thinking of strategies and is a creative person who
have many ideas that can really benefit the company.
4. The expert may have the good interpersonal skills,
and can easily influence the personnel and
employees working in the company making the
workplace easier and more comfortable. Having a
good relationship can make it easier to implement
rules and improvements in the company, and the
employee, personnel and expert can have a two-way
relationship that can be open to anything they can
feel.
1. This will entail additional expense for the
company. The company has been having a
financial problem for the past 18 months and
may not have the budget to hire a new
manager.
2. The expert may be unfamiliar with Auto-
Worlds operations & culture.
3. The expert hired might be a spy of Bill
Froelich or other compay and is having a bad
intention of letting the companys performance
go down in order for Bill Froelich to buy it or to
let the company go bankrupt and out of the car
business.
4. The expert may have a personality that will
make the employees discomfortable and to be
not open to their opinion.
5. The expert may make use of his position to be
authoritative to employees not thinking of their
feelings but just be focused on making sales and
profit since the company is already in the stake
of a financial problem.
6. The expert may take the job only as a
stepping stone if he/she is planning to open his
own business.


Page 18

VI. Conclusion
Ratings: 1 Least effective 2 Moderately effective 3 Really effective

Criteria (Objectives) Marketing Strategy 1 Marketing Strategy 2 Marketing Strategy 3
Increase sales
volume and
selling gross
3
2 3
Increase
convenience in
part of the
costumers
3
3 3
Improve service
department
performance
3
3 3
Develop,
increase and
maintain
motivation and
confidence of
employees in
performing
their job
1

3 3
Develop good
management in
the company
3
3 3
Improve and
develop
knowledge and
soft skills to
employees
3
2 3
Improve and
develop
interpersonal
communication
3
3 3
Make use of
marketing
promotions to
increase
consumer
awareness and
preferences
2
3 3
Improve the 3
3 3


Page 19
servicescape of
service
department
Improve and
develop work
ethics
3
3 3
Initiate, develop
and enhance
trust-based
customers
relationship
2
3 3
Innovate work-
order process
2
3 3
Ensure
customer
satisfaction
2
3 3
TOTAL 33 37 39

VII. Implementation of Plan
Action Person Responsible Time Frame Budget
Manage training
to company
employees

Train new
company
employees

Miscellanious
Flyers

Public Relation
activities and
Sponsorships

Manager/Supervisor of
Sales and Service
Department, HR
Manager

Manager/Supervisor of
Sales and Service
Department, HR
Manager, Experts

Sales Manager, Vice
President Sales
Manager, Sales Team

Marketing Manager,
Sales Manager, Sales
Team, Marketing Team

Weekly

1 Month

Seasonal and if there is
a sale or promo in the
company

Occasional and
Seasonal
(Example: Christmas,
Typhoon Survivors,
Campaign etc..)
3,000

6,000

2,000

15,000



Page 20

Television
Commercial

Advertising and
Promotion

Renovation of
Servicescape of
Service
Department

Web Page
Maintenance

Cleaning
Maintenance

Employees
Salaries/Wages

Employee
Insurance

Ensuring safety
and equipment
performance

Newspaper
Advertising

Marketing Team and
Marketing Manager

Marketing Team and
Marketing Manager

Facilities Repair
Operation
People(Construction
Workers,Helpers) 4
Persons

Marketing Manager
and Teams

Cleaning Personnel

Owner

Owner

Repair and
Maintenance Team

Marketing Team and
Marketing Manager

Once or twice a year

If theres a new
product offering, or if
the company is needing
to increase sales

1 Week

Ongoing

Everyday

Every 15th to 30th day
of the Month

Monthly
(SSS, Pag-
Ibig,Philhealth)

Everyday

Seasonal and New
Product Offerings in
the Market

25,000

18,000

750/person

300/Montth

400/person

Depending on the
Position
Managers 10,000 and
UP
Regular Employees
4,300

Depending on the
position and how long
is the person in the
company

400/Person

Depending on the
location in the


Page 21

Answering phone
calls, and
handling work-
order routine
and giving
estimates to
customer

Ensuring Security
in the Company

Recording
Transactions,
Monitoring
Company
Financial Status
and Performance

Ensuring
complete
supplies of car
parts and
equipment

Paying of Rent
and electricity
expense

Support trade-in
process to
purchasers
existing vehicle

Service Writer

Security Guard
Personnel

Accounting Personnel,
Owner

Operation personnel

Secretary of the
Company, can be the
owner or the
accountant

Owner, sales manager,
service car personnel

Every 15th and 30th
day of Month

Every 15th and 30th
day of Month

Every Month

Every month

Every month

Ongoing
newspaper
If front page, may be
20,000 and up.

700/people

200/people

33,000/people

300/people

300



Page 22

Sources (APA FORMAT)

Books:
Lovelock, C. (1984). Services marketing. 1st ed. Englewood Cliffs, N.J.: Prentice-Hall,
pp.37;40-48;53;59;63-64;74-75;92-93;100.
Ingram, T., Laforge, R., Avila, R., Schwepeker, C. and Williams, M. (2012). Professional
Selling 5th Edition. 5th ed. Philippines: Cengage Learning Asia Pte Ltd, pp.9-11;23;31-46.

Electronic Sources
Car Dealership Training (2014). A car dealers six-step guide to strategic planning.
[ONLINE]. Available at:
http://www.dealersedge.com/me2/dirmod.asp?sid=0EA07745106C4076847B5C35C1AA
EF2B&nm=Advanced+Search&type=Publishing&mod=Publications%3A%3AArticle&mid=
B502EFAB5C2C4AB5BDB4C5E749BA3B2A&tier=4&id=C34E732954B5488F8ABB2806B94
27DE9. [2012, May 20.]

Advameg Incorporation (2014). Auto Sales Company. [ONLINE]. Available at:
http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-07/Auto-
Sales-Company.html. [2011, August 31].

Norad, no. (2014). Example of Completed Project Implementation Plan. [ONLINE].
Available at:
http://www.norad.no/en/support/norhed/_attachment/401291?_ts=13d498648c7
[2014, August 5].

Inc. com, (2014). How Much Employee Turnover Really Costs You. [ONLINE]. Available
at: http://www.inc.com/suzanne-lucas/why-employee-turnover-is-so-costly.html [2014,
August 5].

Wikipedia, (2014). Pricing strategies. [ONLINE] Available at:
http://en.wikipedia.org/wiki/Pricing_strategies [2014, August 5].

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