Free Essays - SWOT Analysis Essays
Your Strategic Plan shouldaim to focus on the next 3 years of the business/organisation's life.
Overview of the Organisation's Present Position
Motor Store is a newly established company in the autoindustry situated in Omagh, Northern Ireland. Its objective is to satisfy localdemand for auto parts and to sell products to local garages as well as to thegeneral public. Chairperson Brendan McAnulla will be in charge of the start-upof the store, its daily operations and also be responsible to the board.Financial resources for the company will be supported by the business programrun by the Bank of Ireland. In terms of human resources available a skilledworkforce drawn from the local and surrounding areas will contribute to thesuccess of the business in terms of both its management and operationfunctions.
The product ranges to be dealt with by the company can bedivided into four categories: car parts including replacements parts such asclutches and maintenance items such as oil/lubricants etc; car entertainment,tools for repair and maintenance and other miscellaneous car care products. Theselling of brand products with high levels of recognition in the industry fromsuppliers such as Delphi, Valeo, Castrol Oil, and Bosch & JVC car audio toa degree positions Motor Store as a company drawing upon an image of qualitygoods and superior customer service. As Gilbert (1999) points out products are acombination of tangible material and intangible value and as such brand nameshave significant impacts on the evaluation of intangible assets for products inthe minds of customers. Thus it can be said to be useful for a car partsretailer to intermix corporate branding with quality brand goods. Along theselines the company has managed to secure a unique distribution channel of Delphiproducts.
The major selected methods of selling so far are to bein-store purchases and also mail shots which can support both in-store and mailorder purchasing. The store will be located in the Gortrush industrial estateas it is one of the biggest car products exchange centres in Omagh. Thelocation is convenient for traffic and offers a sophisticated infrastructurewith easy access to and from a large hinterland surrounding the area as well asmajor arteries to Belfast. In addition placement in the industrial estate meansthe company will be able to obtain government support in terms of tax benefitsand lower renting cost from the special zoning regulations involved. This canbe argued to be essential elements for a starting business such as Motor Storebringing overall cost-effective benefits during the difficult initial stages oftrading. Working from the customer base of the industrial estate itself MotorStore is located next to a well established car paint distributor which shouldhave the effect of providing an initial pool of possible customers from analready established business in a complimentary aspect of the industry. Thestore will be 3000 sq f. which will include front shelf based displays and astore room used to store car parts such as brakes. A well-presented displayarea supported by effective merchandise will result in a better shoppingenvironment which will contribute to initial customer attraction in purchasinggoods, (Markham, 1998).
The pricing strategy to be employed by Motor Store follows acost-orientated model which is often chosen by new businesses because of thelower financial risks involved. In using this then the type of managementtechnique adopted by Motor Store is 'Cash flow Profit Planner'. A high cashflow level is able to decrease risks related to finance and operations which isa useful strategy for new businesses and one generally also it must beacknowledged supported by financial backers of new businesses. During theseprimary stages sales performance will be vital so Motor Store will plan toexploit a range of promotional tools to build a healthy sales base as quicklyas possible. First in order to attract customers to purchase in the store thecompany plans to offer special product ranges at a pricing below full costcovering only direct costs. In doing so the store aims to create a priceadvantage over competitors in the short term and generate its own customer baserapidly. It is useful to blend pricing tools with other elements of a marketingmix since rapid penetration is essential for new businesses in gaining marketshare in the short term, (Shipley, 1981).
Motor Store will also aim to exploit its promotional mixeffectively in order to build up long term customer relationships as well asachieving short term market penetration. In retail situations the customer hasfull freedom in choosing products without the presence of a salesperson howeveran effective sales assistant is able to both assist and encourage customers indetermining their choice of products. This face-to-face and human element canbe a critical success factor for any retailer and arguably is even more so inthe case of the company as part of its targeted market are trade-basedindividuals. This will necessitate sales assistants who have a degree oftechnical knowledge concerning the product range which allows them to deal withtechnical questions from a knowledgeable customer. Motor Store aims toconcentrate on one to one contact and interaction with consumers as a directway of communicating with customers. It is relatively easy using these methodsthen to provide information about the store such as contact cards and alsoprovide special introductory offers directly and also promotional gifts, forexample Replica cars. These human touches should encourage customers topurchase and will it is hoped provide a foundation for building long term loyaltyto the company. Motor Store will also make use of radio advertisements andpress advertising along with public relations activities such as sponsorshipfor garage staff training and customer events like trips to Silverstone andindoor karting.
In doing so Motor Store aims to promote and image ofcustomer friendly service and build long term business relationships withcustomers. This will be able to provide competitive advantages in competingwith other retailers by leveraging store loyalty over the long term. As Blythe(2000) suggests public relations has become critical for companies' survivalover the long term and contributes also to adding extra value to each functionin the value chain, from logistics to marketing and services. In addition to theformer promotional activities Motor Store will also aim to provide mail shotsand catalogues to customers which will allow them to order by mail. In the UKmail order services are linked with an image of cheap and convenience forindustries such as the car part retailing industry. Therefore the use of mailorder from catalogues will help Motor Store to spread its service and influenceover a wider range of area and possible customers. These efforts made by MotorStore can be said generally aim to generate positive word-of-mouth with highquality products and professional service levels. The success of the measuresshould ensure the company quickly establishes a positive reputation in themarket which will provide a solid foundation for continued success and growth.Overall success will be ultimately determined by the degree to which the planhere is implemented. The details contained herein are sufficiently rigid toassist in developing the firm's organisational structure in a relatively shortperiod of time but also are flexible enough to respond to unforeseendevelopments which are a start-up company is highly likely to face.
Assessment of the External Environment
PESTEL
Political | Local government and National government support automotive industry development of a 'legal and fiscal environment' by UK government |
Economical | downturn in demands for automotives as well as automotive parts generally poor economic performance of England (eg. Lower GDP) lowered consumer confidence growing demand for luxury cars |
Social | trend for e-shopping among customers changing lifestyle of modern customers low customer loyalty customers demand more time for leisure, sports, fashion and music products higher education level increasing rate of older people in whole population |
Technical | technological development in the automotive field technical development in terms of IT and communications infrastructures and digital services E-commerce |
Environmental | environmental concerns in terms of automotive products |
Legal | MOT requirements EU legislation dealing with automobiles The launching of the Automotive Technician Accreditation (ATA) scheme among motor manufacturers and repair garages |
PESTEL Priorities are:
A. Growing demand for luxury automotive goods.
B. Increasing demand for environment friendly goodsnamely better quality automotive parts.
C. Changing lifestyle in terms of more leisure relateddemands, environmental (green issues) focused.
D. Development of E-commerce and acceptance of e-shoppingtechniques by customers.
PESTEL Framework and Industrial Five Forces Model
It is vital for managers to make sense and comprehend thefactors comprising the environments in which their organisations will operate.Thus analysis of business environments becomes an essential tool of strategicmanagement. Johnson and Scholes (2002) suggest that the external environmentsin which organisations operate can be analysed from macro and micro viewpoints.The framework of a PESTEL analysis is useful in giving a detailed macro accountand this is the analytical tool to be used by Motor Store. The PESTEL modelnamely concentrates on political, economic, social, technological,environmental and legal factors. It provides insight into the core elements tobe aware of when looking at the macro factors of relevance for organisationaloperations. Firstly whilst there has been continuous encouragement from localgovernment and national government in developing the UK automotive industrythere has recently been a downturn in demands for automotives as well asautomotive parts, (De Saint-Seine, 2005). Retailing appears to occupy a vitalrole in understanding this economic change and this trend may have roots in thepoor economic performance of England generally resulting in lower GDP and loweredconsumer confidence towards purchasing expensive goods such as cars. Howeverconversely it may be a feature that lowered confidence in purchasing new carsmay go hand-in-hand with desires to maintain already existing purchases for alonger time, therefore Motor's Store's supply of replacement and maintenanceparts may be a significant growth area given environmental conditions.
However studies reveal that the demand for luxury carscontinues growing as a result of technological development in the automotivefield as well as changes in people's lifestyle, (Roy and Griggs, 2005). Thepurchase of new cars is also impacted significantly by MOT requirements and EUlegislation dealing with automobiles and cars. As such these elements indicatea strong position for Motor Store if demands for products can be successfullytaken advantage of by the company. It is obvious then that the car partsretailing industry is closely linked to the car repair industry. Therefore therecent report for a consortium of motor manufacturers and repair garagesresulted in the launching of the Automotive Technician Accreditation (ATA)scheme, an industry-standard brand developed to counter rip-off and substandardoperators in the industry. This could have major influences on car partsretailers and provide an externally recognisable accreditation for consumers indetermining the quality of a service provider, (Solley, 2005). This will bereinforced by the fact that the repair industry standards will be supported byvarious public awareness advertising campaigns over the next year which seeksto secure and recognise good practice in the car repair industry. It isreasonable to say that the higher standard of repairing services will not onlyrequire more technologically skilled garage workforce but also higher qualitycar parts and advanced repairing tools. As a result Motor Store should be in astrong position to capitalise on these trends.
Additionally both organisations and individuals are subjectto an unprecedented pace of technological change in the way business challengesare approached and the nature of these challenges in the 21st century. In orderto keep pace with these changes information systems have evolved their role inbusiness in terms of integration within management and services enabling forexample electronic commerce methods to be deployed and controlled easily,(Elliot, 2002). This is also the case in the car parts retailing industry inthat retailers can exploit computerised systems to control daily operations,stocks and merchandise tracking/ordering. From the customer's perspective theincreasing use of the Internet means there is an increasing acceptance of thisnew shopping form. The United Kingdom is one of the leading countries inrelation to e-commerce generally in terms of legislative regulatory support ofInternet retailing and has an extensive broadband infrastructure upon whiche-retailing methods depend. The UK government continues to strongly advocatethe development of a 'legal and fiscal environment' to facilitate itself to bethe best place in the world to conduct e-commerce by 2002, (Galliers &Wiggins, 2002). Such avenues represent possible means for Motor Store todifferentiate itself further and reach a much wider possible market both inNorthern Ireland and possibly also on the mainland.
Linked with this IT and communications infrastructures anddigital services companies as well as competitive financial marketplaces, suchas London being one of the main European financial centres plays an essentialrole in the building of dependably e-shopping networks. Surveys indicate thatconsumer acceptance of e-shopping in the UK is much higher than other countriesin Europe, (Forrester Research, 2000). Thus it is unsurprising note alreadyexisting websites used by car parts retailing companies to sell online. Due tothe nature of the market buying behaviour in that customers are moresophisticated and technically knowledgeable there is a requirement for fullinformation and advice from sales person as well as detailed search informationduring the purchasing process. Research has demonstrated that information-richproducts attract consumers in buying and websites can be useful in helpingbuyers better understand a product's feature and benefits, (Eisenmann &Brown, 2002). Thus a combination of traditional players and new eBusinessparties might drive the development of the business-to-customer market in thecar parts retailing industry. The fact that this phenomenon is a relatively newfeature means again that Motor Store is in a position to capture a significantshare of this emerging sector of the market.
Furthermore it is vital to be cognisant of the changes inpeople's lifestyle which can be defined as a person's pattern of living in theworld expressed in his/her activities, interest and opinions, (Kotler, 1986).Firstly research reveals that modern customers demand more time for leisure,sports, fashion and music products, (Frenie, J., Fernie, S. & Moore, 2003).This arguably suggests that car accessory/entertainment devices ranges willincreasingly contribute to car parts retailers' sales performance. Secondlyrapid technological development causes automotive product life cycles to beshorter than ever before so branding strategy is often used by retailers tobuild and draw upon customer loyalty. It has been reported that moderncustomers are less loyal to one retailer thus effective public relations playsa vital role in maintaining customer trust. Thirdly in relation to automotivepurchases more and more people show concern over environmental issues duringthe buying process. National standards such as the MOT legally requires highquality levels for cars in respect of environmental issues thus people areoften legally required to purchase environmentally friendly products. Last butnot least it is useful to be aware that a result of demographic trends thepopulation is gradually ageing meaning older rather than younger customersbeing the larger possible market, (Gilbert, 1999). Two possible results fromthis include less time for in-store shopping as a result of work pressures andmore brand sensitivity when they purchase due to longer periods of exposure tocertain brands. This reflects Maslow's hierarchy of needs framework in thatpeople seek to satisfy high level needs such as self-esteem, social statusthrough purchasing branded products, (Maslow, 1998). Taken together thesetrends imply the possibility for Motor Store to position itself as both a highquality provider in terms of products but also one which takes account of moresophisticated social concerns articulated by an ageing demographic. To takeadvantage of this successfully though would arguably need market researchconcerning the preferences and demands of older customers.
In terms of the industrial environment it is worthwhilementioning the five forces framework in that it provides a useful guide for theanalysis of external environments organisation compete in. The competitiongenerally in the automotive parts retailing industry has become increasinglyintense. As a result of the downturn in the selling of cars the demands for thecar parts are expected to slow down correspondingly. Yet as mentioned thistrend may be countered by demands for maintenance related parts. In addition totraditional retailers there are also more e-sellers which are able to offersignificant price advantages due to lower store and labour costs. Generallyspeaking the bargaining power of buyers has increased and consumers as a resultneed to be put at the centre of any strategic decision making carried out byretailers. It is essential for retailers then that they meet customer needsbearing in mind the changes associated with car purchasing and repairbehaviours. On the other hand retailers can exercise more power in relation tosuppliers since they could select the right products to sell meaning moreability to negotiate special product offers. Finally the future of new entrantsin this market remains unclear since small businesses along with big companiesmight enter the market yet due to the downturn there might also be exiting ofsome already established operators.
Assessment of the Internal Environment
SWOT
STRENGTHS | WEAKNESSES |
better product quality superior customer service solid supplier relationship financial support from Bank of Ireland flexible organisational structure highly skilled workforce unique distribution for certain brand products (eg. Delphi ) convenient store location | lower store brand awareness weak long-term customer base no company owned distribution vans poor brand image underdeveloped organisational structure |
OPPORTUNITIES | THREATS |
government support for automotive industry growing demand for luxury cars changing lifestyle better workforce base in labour market E-commerce development technological development car repair industrial standard (ATA) MOT requirement demand for environment-orientated goods | poor economic performance downturn in automotive industry intense industrial competition strong buyer power |
Developing the SWOT
Strengths | Consolidating Strengths |
better product quality unique distribution for brand products (eg. Delphi ) superior customer service highly skilled workforce convenient store location solid supplier relationship financial support from Bank of Ireland flexible organisational structure | > maintain high quality products > improve customer service through skilled work > develop effective supplier-retailer relationship through e-commerce > quality maintain and store expansion > e-commerce development |
Weaknesses | Isolating Weaknesses |
lower store brand awareness weak long-term customer base no own distribution vans poor brand image underdeveloped organisational structure | > effective promotion > build effective customer relationship through professional services, better quality products and good public relations. > subcontract with delivery company Parceline >build brand image through promotion and word-of-mouth > develop intranet to manage and control organisation's performance |
Opportunities | Exploiting Opportunities |
government support for automotive industry growing demand for luxury cars technological developments in maintenance techniques car repair industrial standard (ATA) MOT requirement demand for environment-orientated goods changing lifestyle better workforce base in labour market E-commerce development technological development | > ensure involvement in policy making > provide technically advanced and environment concerned quality products > provide stylish car accessory product range and advanced car care products >employment and retention of skilled workforce >develop intranet and corporate website |
Threats | Overcoming Threats |
poor economic performance downturn in automotive industry intense industrial competition strong buyer power | > offer professional customer service and good price-value products >develop luxury automotive goods and automotive related market >establish competitive position through superior customer service and better quality products. >effective communication mix and better customer service |
SWOT Analysis
Key strategic information about the business environment canbe summarised in the form of a SWOT analysis bearing in mind the core strategicresources and capabilities within the organization. Therefore first of all itis essential to identify Motor Store's strategic resources as well as itsweaknesses. As a newly established store compared with its major competitorssuch as M & L Auto parts and Auto Components Motor Store lacks anestablished customer base as well as a store brand name. Motor Store also doesnot have its own distribution vans currently meaning it will be inconvenient toprovide mail order or online booking for its entire product ranges forcing itto depend on external distribution networks. Thus compared to its maincompetitors who possess their own vans for the delivery of products Motor Storeis in a weak competitive position on this point. However as a new company MotorStore will be able to apply the latest technological applications enabling themto have competitive advantages in relation to techniques as there is no need toalter an already established organisational architecture to be able to applysuch innovations. The offer of free technological training for garages couldgenerate good relationships with local garages that are a major part oftargeted customers for the company.
It is fair to say that professional and high-quality customerservice is the most important strength for the store. This can be formed andsolidified in the efforts in building good public relations and in-storeservices. Motor Store not only offers for example free parking coverage but alsoengages in various promotional services such as technique training forcustomers and free gifts. The unique distribution of Delphi products rangesecured by the company will enable them to satisfy customer needs for specificquality goods better than competitors. Also the solid basis of its supplierrelationship will generate cost advantages for the store in terms of directcosts as well as providing unique resources for the distribution of certainbrand products such as Delphi. This can be seen as a vital strength compared toother retailers since branding quality goods to a large extent contributes toits overall competitive position. The financial support from Bank of Irelandshould provide financial strength in terms of the corporate cash flow allowingresponsive stocking of up-to-date product merchandise. Also the convenientlocation for the store provides a ready customer pool from which tradecustomers can be drawn and convenient distribution channels set up.
In considering opportunities and threats changes in theenvironments have been dramatic and the pace of change is also intense in thecompetitive business world. One of the most important aspects of change is thedevelopment of technology linked to automotive and car repairing. As mentionedbefore the general downturn in the automotive market generates potentialthreats to the store. However growing demands for technologically advancedluxury cars also give opportunities to Motor Store if they can be exploitedsuccessfully. Motor Store as a new company is able to assimilate newinformation faster than older organisation according to organisational learningcycle frameworks. Thus the selling of brand products and technologicallyadvanced car parts and repairing tools will give the company the opportunity tobuild up good relationships with car users particularly luxury car users andgarages who have to keep pace with technological developments. As discussed thewide use of the Internet generates both threats and opportunities for MotorStore. On the one hand it is clear that online car parts retailers have costadvantages over traditional retailers. It means they can use a price premium tocut down profit margins for competitors in respect of quantity and quality.However e-commerce security and privacy related issues have caused somecustomers to return to traditional ways of purchasing. Yet e-commerce alsooffers opportunities to integrate businesses in terms of internal stocknetworks supporting online selling. Whether online features will be opportunitiesor threats will depend greatly on the successful application of a strategicplan dealing with the ramifications of the technology. Again as a new companyMotor Store is in a strong position to develop an organisational structurewhich takes advantage of the opportunities offered.
Regulations and standards developed by the car repairindustry and national government also provides opportunities for Motor Storesince better through providing higher quality goods Motor Store will be able tocreate a competitive position in the car parts industry through externalquality accreditation. Garages will prefer technologically advanced suppliersand high quality goods in order maintain their service levels. Car users haveto purchase better quality goods in order to meet legal requirements forautomotives. With changing lifestyles there is also growing demands for carentertainment products and accessory product ranges. Growing interests inenvironmental issues will allow Motor Store establish a new environment-orientatedstore image which should build significant positive customer relationships.While the youth market is predicted to decrease the proportion represented bythe student population especially in higher education has grown. This producesa workforce with better education levels to deal with technologicaldevelopments a significant element given the need for the company to have aknowledgeable workforce able to keep pace with new information as a result oftechnological development.
Current issues that requires strategic planning
Strengths + Opportunities
Customers are more concerned about brand names when theypurchase thus Motor Store's high quality goods and various brand product rangesshould generate competitive advantages for the company. The provision andretention of a skilled workforce will also help in maintaining brand image andproduct quality. Therefore the use of a branding strategy needs to combinecorporate strengths with opportunities in order for the company to competeeffectively in the car parts retailing industry. It is critical to rememberthat branding strategy not only means the selling of brand products but alsomeans creating a good store brand name through superior customer service aswell as the retailing of high quality goods. The provision of a no quibblewarranty can be viewed here a significant component of building store loyaltyby ensuring customer trust in the quality of the service and product offered bythe company.
Secondly the development of e-commerce suggests opportunitiesfor Motor Store in developing its online system in terms of internal controlnetworks and corporate website allowing customers to search product informationand purchase online increasing overall service provision efficiency. Ane-commerce strategy needs to be based on a skilled workforce and have goodfinancial support. As Margolis (1996) points out IT technology will be widelyapplied in the retailing system with traditional retailing forms beingsupported by e-commerce being the main trend in the retailing industry.
Weaknesses + Opportunities
According to the analysis above the main weakness for MotorStore is the lack of a long term established customer base as well as a storebrand name. Opportunities based on technological development offer chances toset up a technique-advanced store image through sophisticated operationssystems, skilled and professional workforce and high quality products. In doingthis and supported by the use of e-commerce and public relations activity MotorStore should be able to effectively develop a good reputation along with astrong store brand name relatively rapidly.
Strengths + Threats
Due to the decreased market size in the automotive industryMotor Store should strategically position itself in relation to targetedcustomers. The store's strength in providing quality goods offers advantages inrelation to luxury car users since they require higher quality parts and moreadvanced repair tools. The use of a branding strategy arguably can overcome thedownturn in the industry generally. In addition the products ranges dealingwith car entertainment parts and accessories can generate profits to recoverlosses incurred by a decreased market size. From this perspective Motor Storeshould differentiate itself from competitors as a car parts retailer aiming atthe luxury level car parts marketplace along with promoting an image related todriving enjoyment through car accessories and easy self service car care. Interms of garages they should be targeted as technologically based garages whichrequire high quality products and technological advanced support systems forcar maintenance. The pricing tool is not necessary in this differentiationstrategy thus this strategy falls into a customer service based differentiationwithout a price premium leverage as defined in the strategy clock, (Johnson andScholes, 2002
Agree the Strategy
The Mission Statement
Empowerment of individuals
Equality
Honesty
Democracy
Motor Store intends to provide excellent customer servicebased on superior quality products in order to satisfy customer needs. Thesecustomers include local garages and the general public. In terms of garagesMotor Store is keen to provide professional and technological support. Inrelation to the general public Motor Store is eager to help them maintain theirdriving enjoyment through providing quality products and superior services inensuring smooth operations of their vehicles. The image to be promoted by thecompany is encapsulated by being customer friendly and environmentallyfriendly.
Aims
Product:
-To provide varied ranges of top quality productsto both garages and general public.
People:
- To build good relationships with several interestedparties.
Branding:
- To create a strong brand name for Motor Store in terms ofhigh awareness and recognition in the market for quality products and superiorservice.
Organisation:
- Toachieve organisational growth.
E-commerce:
- Todevelop an efficient e-commerce model in order to support organisationalcontrol and support customer service provision.
Objectives
1.Aim: Toprovide varied ranges of top quality products to both garages and the generalpublic.
Objectives:
1. Offer high quality car parts supported by a range ofbranding suppliers.
2. Offer sophisticated and high quality car repair tools insupporting both garages and individual customers.
3. Offer stylish and high quality car entertainment productranges to enhance driving pleasure.
4. Offer advanced car care products to maintain value forcars owned by customers.
2. Aim: Tobuild good relationships with several interested parties.
Objectives:
1. Provide superior and professional customer service tocustomers based on the provision of high quality products and informativeadvice on these products through supported training of human resource elements.
2. Maintain stable relationships with employees in order tofulfil effective work performance commitments in terms of customer service.
3. Satisfy the corporate board by achieving financial goalsincluding roughly a 30% investment return after the first year in operationcoupled with realisable long term organisational growth.
3. Aim: To create a strong brand name for Motor Store interms of high awareness and recognition in the market for quality products andsuperior service.
Objectives:
1. Improve brand awareness through an effective marketing andcommunication mix.
2. Create a brand image of a customer orientated andenvironmentally concerned company.
3. Improved sales performance through successfulimplementation of the company's branding strategy.
4. Aim: To achieve organisational growth.
Objectives:
1. Organisational expansion over the first three years fromNorthern Irish market to the mainland UK marketplace.
2. Achieve 30% growth rate in the first year and 25% in thefollowing two years.
3. Achieve leadership status in the car components retailingindustry through exploiting advanced technological advantages.
4. Effective organisational control through effectiveintranet, team working networks among different departments.
5. Maintain good relationships with suppliers in order toobtain cost advantages and organisational efficiency in supply distributionchannels.
4. Aim: To develop an efficient e-commerce model in orderto support organisational control and support customer service provision.
Objectives:
1. Develop an efficient internal network contributing toorganisational control and effective organisational operations.
2. Develop an integrated supplier-retailer-distributorrelationship through e-commerce techniques.
3. Provide online access through a corporate website forproduct information and access to an e-shopping model.
4. Use e-commerce to support branding strategy in terms ofword-of-mouth and building positive brand reputation.
Implementation - Action Plan
HR resource plan
Customer-focused differentiation strategy
This differentiation strategy relies on excellent customerservice and high quality products thus primary activities in the value chainfrom logistics, operations, marketing and sales, and service will each contributeto the effective implementation of the strategy, (White, 2005). As such thelogistics department is in charge of product selection from suppliers, productstorage, distribution as well as delivery. The use of e-commerce here is ableto help achieve just-in-time distribution and product maintenance withsubstantial cost benefits to the business. The marketing group plays a vitalrole in the strategic implementation since they are responsible for effectivepromotional planning including advertising campaigns, PR activities, in-storesales and e-marketing activities. Superior customer service delivery can beachieved through offering quality products, competitive and special offerpricing, in store promotions and convenient delivery channels for customers. Itis critical for the company that it applies technological developments inadding value to customer service provision. The service department isresponsible for the training of customers and in-store explanation and salespromotion in relation to products. The HR department is responsible foremployee training in order to maintain high levels of expertise and knowledgeconcerning products among employees and allow for training to be conducted inbetter customer service techniques.
At the beginning stages of a business a flatterorganizational architecture supported by an intranet will be employed sincethis is a useful means of maintaining effective communication between differentdepartments. Thus the leadership style will be a 'Dominance Approach' to beginwith and then gradually moving to 'Shared Vision Approach'. This is because astrong organisational culture to a large degree contributes to the efficiencyof operations and relations between management teams and employees, (Brooks,2003). At this stage the strategic position of leadership in the management ofbusiness activities is central for the organisational growth. Cooper (2005)argues that the role of trust as a way of highlighting strategic leadership isessential in corporate management. This is because trust as a belief is vitalto the maintenance of business productivity and to the implementation ofself-management based teams. For Motor Store one of the main strategicobjectives is to build good employee relationships allowing for the retentionof skilled workers. By sharing and promoting a strong unifying vision of theorganisation's values and culture in the initial stages the foundations will belaid for a more inclusive approach reflecting shared organisational attributesduring the growth phase for the company.
Branding Strategy
The implementation of a branding strategy requires effectivecooperation within the store at all levels of operations and service provision.The marketing department is directly in charge of promotional and communicationmodels which seek to achieve branding objectives which include improvement ofbrand awareness, continued building of brand image and good public relations toincrease recognition of brand images. Radio advertisements have been chosensince it is a cheaper medium than TV for advertising is an effective method ofcommunication directly with car users. Advertising in press along with mailshots will be printed out on A4 paper by using a four colour model based on acost-effective strategy related to such campaigns. The catalogue will bedelivered in store by sales people and spreading the store brand name byword-of-mouth is a significant element of the strategy. This will require aprofessional well-presented and enthusiastic sales team in these initialstages. Also effective communication models rely on quality customer serviceand quality goods thus it is critical that integration occur with all theprimaries activities and functions of the company bearing in mind the brandingstrategy. E-commerce techniques will allow implementation of branding goals inthe short term at a low cost as a result of low costs involved in the use ofthe Internet compared with other mediums. Therefore there is a strong need todevelop an effective internal network along with a corporate website initially.
E-commerce
The development of an e-commerce system will be finishedwithin one month. Experts and representatives from different departments willco-operate and contribute to system design in tandem with an externale-commerce skilled consultant. In doing so Motor Store will be able capitaliseon the opportunities offered by e-commerce in setting up a business in theshort term in terms of improving brand awareness through viral marketing andattracting customers. The delivery of e-marketing products will be fulfilled bysubcontracting to Parceline a large, well-recognised and trusted deliverycompany in the UK which provide services both within Northern Ireland andmainland UK, (Parceline, 2005).
Chairperson Brendan McAnulla will take charge of themanagement team which includes a Financial Manager, a Marketing manager, a HRmanager and a Logistics manager. Data of daily corporate performance will becollected by computerised internal systems in such a way as allowing for theaccomplishing of just-in-time stock control and dynamic promotional strategyadjustment. Monthly meetings will be held in order evaluate corporateperformance and adjust strategic goals based on reported data. Annual boardreports will enable evaluation of corporate performance within a financial yearand in doing so satisfy shareholder's expectations of accurate performance anddemonstrable organisational growth. Such reports will include annual appraisalsof employee in terms of training and sales related performance data. The keyaim of the monitoring strategy is both to assess but relate assessment toorganisational flexibility in responding to customer needs and environmentaldynamics.
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