31 Aug Strategic Management
Use the lettering system indicated below in your memo. Your answers should be listed in sections labelled “A” through “D”.
CASE SCENARIO – PAUL’S DISCOUNT TIRES & REPAIRS BUSINESS STRATEGIC PLAN
Its a Friday at 4:00 and you are looking at the clock its been a tough week at Paul’s Discount Tires & Repairs business, and the week is not over! The global COVID Pandemic has hit the business hard, and you saw several people working there laid off this week. You feel lucky to still be working as their business consultant!
The business is a family-owned and has been in business for over 21 years. The founder of the company, Paul Wilford, started the company as a small tire shop then expanded into service repairs. Now Pauls grandson, Steve Wilford, runs the company which has grown to several million in annual revenues over the past couple years.
Steve Wilford stops by your cubicle. He looks worried and worn out from the long work day. Despite that, he greets you warmly.
You are taking a course in Strategic Management right now, arent you?, Steve asks you.
You reply yes.
Well that is great timing, says Steve because I just drafted a 10-year strategy for our business! If I get you a copy, would you mind looking it over during the weekend and giving me your thoughts?
You tell Steve that youd be happy to give your input. Within 5 minutes, a one-page document is on your desk. At the top of the page is written Paul’s Discount Tires & Repairs Strategic Plan. You start to read it in your remote work office at home.
The basics of the plan are highlighted with the following three (3) bullet points:
- Paul’s Discount Tires & Repairs core business will continue to be providing tires and minor vehicle repair services to our retail customers over the next ten years.
- Paul’s Discount Tires & Repairs will beat its competitors by providing the lowest price discount tires, vehicle repairs, exceptional customer service and quality work.
- Paul’s Discount Tires & Repairs culture is rooted in its 21-year history. Paul’s will overcome the setbacks caused by the COVID Pandemic by sticking to its core values and cutting costs wherever necessary. Our people will help get us through these tough times.
You look at the bottom of the page and see a post-it note, with questions posed to you by Steve.
- What is wrong about this strategy?
- What is right about this strategy?
- We are the market leader in discount tires and repairs our city, indicating that we currently have a competitive advantage. Will we sustain it with this strategy?
- What is one thing we could do to improve on this strategy?
