Discussion of the profile of the business
Discuss about the Small Business Enterprise for Zodiac Garage Private Limited?
Being operated as a small business enterprise, many organizations have a plan to expand their business operation and holding of the market share with implementing a successful growth implementation plan. However, a proper assessment and the business management control needs to be delivered for make a successful. Before executing the business expansion strategy into the current profile, the business potentiality must be reviewed. The assessment of the past performance, identifying business strength and weaknesses, measuring competitive advantages, current business plan and activities of the management shall be explored for analyzing the future business growth opportunity.
In this assignment, a profile of small sized business enterprise is going to be discussed because in the wake of increased workload, and to further streamline the business, the CEO of the company plans to develop an effective business plan to increase the structural efficiency and to enhance work productivity as well.
Since 2010, Zodiac Motor Garage, a small private enterprise, has been working in the location of Liverpool, England. The founder of the organization, Ronald Samuels, previously had been worked in the engineering company, in the repair and maintenance department. Later he took an initiative and explored his previous engineering experience and started Zodiac Motor Garage Private Limited. The company is aimed at to provide best customer service in the consumer discretionary sector of the retail-discretionary industry in England. Additionally, the company has a clear vision to spring to action to help get the customer back on the road safely, quickly and at the affordable cost in the market. The company has been selling used vehicles and known as a best vehicle service centre in Liverpool. There are nearly 75 people have been engaged in multiple vehicle engineering services like engine trouble, tire replacements, auto body repairs, electrical wiring problems, transmission defects and so on.
Zodiac Motor Garage Private Limited provides a warm and welcoming atmosphere with a complement of courteous and knowledgeable staff those have an intension at turning the tide of unfortunate breakdowns into a pleasurable experience of getting back on the road (Bridge and O'Neill 2012). Ronald Samuels is the Managing Directors cum Chief Engineer of the organization. Jacob Smith and Mark Robinson, two others are mainly responsible for operational handlings of the garage. Apart from the internal structure of the organization, the external location of the garage is centrally located where residents can garage their used vehicles for selling purpose along with for repair and maintenance and can take a public conveyance home after handling over the vehicle to them. The key success indicator of the company are maintaining customer faith with the public relations, mainly through direct selling proposition, high trustworthiness and provide an affordable price structure.
· Best Location and huge space: This small business enterprise is centrally located in Liverpool and a huge garage space is the biggest advantage of the company
· Goodwill of the business: The Company values ethical customer dealing and has successfully maintaining a trustworthiness relationship with their clients.
· Skilled workforce: Employees of Zodiac Garage Limited are skilled engineers and the management employs highly qualified operational professional as well.
· Direct selling value proposition: The company sells used automobiles through the direct purchase from customers
· Vintage Engineering technologies: Zodiac Garage Limited has been using the obsolete engineering technologies for repairing the automobiles and other restoration works. For instance, the company has been using old engine cooling system and provides manual vehicle painting technique. This results a huge financial loss and invests enough time for the service.
· Structural and management deficiency: The organizational structure is weak because the work responsibilities are not clearly defined by the management.
· Faulty work process: The entire work process has not been integrated with each functional department due to structural inefficiencies.
· Limited resource: Zodiac Garage Limited is having limited resources. Though this company is self- owned by Ronald Samuels, the working capital structure dies not support the future business expansion plan.
· Frequency of change management: The pattern of business process and used technology are highly transformable in the automobile industry.
· Scarce workforce: Being a small owned company, the work-strength of the company is also restricted among 75 staff and 5 executives. This would be a huge threat in case of business expansion plan execution.
· Huge market opportunity: Zodiac Garage Private Limited has a huge market expansion opportunity because the market competition is comparatively medium.
· The scope of outsourcing: The Company has been maintaining a good brand value in Liverpool area. Thus a good service reputation can be an opportunity for outsourcing the business to other locations across the nation.
· Huge scope for exploring automobile dealership business: There is a huge opportunity of dealership business where the company can sell new vehicles as well.
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Zodiac Garage Limited Company has been working in the retail automobile industry with good brand value. However, the company is facing difficulties to maintain same competitive performance due to presence of new entrants in the market. The companies like Tony and County Motor Garage Limited, Yorkshire Vehicles, and Oxford German Car Specialists limited are providing same professional repair and restoration services along with trade facilities. Furthermore, majority of the competitors of Zodiac Garage Limited are expanding their business operations by establishing different service centers across the nation. Therefore, a single service destination is not adequate for business sustainability in the long run. There is a huge requirement of multiple garage locations for accelerating higher customer service and more revenue in the long run.
SWOT analysis of Zodiac Motor Garage Private Limited
Currently, the chief executive officer of Zodiac Garage Private Limited is facing various issues due to the structural and the operational business inefficiencies. To better handle this situation, the organization needs to implement and maintain some action plans in a short span of time. Here are some recommendations provided to overcome the identified weaknesses:
To overcome issue of vintage engineering technologies, it is recommended to use modern and advanced automobile service technologies and methods for better work excellence. For instance, the company should use the Auto spray painting machine for painting of vehicles. Furthermore, Zodiac Company can display fully fitted state of the art workshop where they can promote the usage of new technologies and automobile accessories. For example, Digital Techno graphs is a well fitted instrument on goods and passenger vehicles that are subject to techno graph rules that have already used in the automobile industry since 2006. But the company is not well –versed about the fact that this techno graph can store several data like data, vehicle registration number, speed of the vehicle, Single or co-driver, insertion of driver card each day and so on. It is the responsibility of the business owner to incorporate modern technologies in their vehicle servicing activities (Burrows 2015). In addition, the company should use better Car Wash Equipments and Tire Repair Machine JM7200 to be known as a better service provider in the automobile service industry. Therefore, the use of new and advanced technologies needs to be incorporated for resolving this issue.
To resolve the structural and management weaknesses of Zodiac Garage Limited, it is recommended to recruit more people into the workforce. Specifically, Ronald Samuel is chief engineer, thus, there is an immense work pressure he usually handled. For mitigating this pressure, deputy engineers must be employed. The job responsibilities must be allocated as per the industry experience to better handle the increased workload issues.
There are many issues are raised related to high work pressure (Bartlett 2014). If the company would like to outsource their business into other locations then employees and executives will experience more workload. To mitigate these operational and structural inefficiencies, the owner must introduce work flexibility for the employees. Furthermore, new employment is required for emergency roadside assistance, electronic diagnostic and engine diagnostic and so on. On the other hand, all functional departments must be integrated to enhance the professionalism. For instance, the operational personnel, Jacob Smith and Mark Robinson must be communicated and interacted with the CEO for better decision making.
Zodiac Garage Private Limited, therefore, needs to be followed all the above mentioned appropriate actions to overcome the identified weaknesses in the small business.
There are a certain operational gap exist within the current organizational culture of Zodiac Garage Private Limited. This gap has been identified in the area of service mobility. There are many rival companies provide professional services through their several repairing outsourcing centre whereas Zodiac limited is only operating from the location of Liverpool (Henry, Rushton and Baillie 2016). Therefore, the company needs to explore new destination for offering both a state of workshop based service and a mobile diagnostic unit. Secondly, the work process system must maintain quick solution procedures with incorporating more machine works rather engaging people into the business. However, there are many complaints have been recorded from customers regarding the “non-systematic” administration and the performance of the sales department. Therefore, new business plan or revised organizational structure must be incorporated within the workplace. All these above mentioned suggestive actions must be implemented by the management of Zodiac Garage Private Limited.
Analysis of the business measuring competitive performance
Currently, the CEO of the Zodiac Garage Limited is looking for to expand his small business by exploring new areas of the business. After discussing and underpinning the entire operational activities, the following recommendations have been developed. By implementing all this recommendations, the business can resolve their current issues and also new ideas will be developed.
First of all, the company needs to be developed a strong financial base. The most positive thing is that the company has a good brand value and customer reputation in the automobile service industry. Therefore, Ronald Samuels should take initiative for bank loan. Due to have a small size enterprise, the company is not listed in the stock exchange. Therefore, shareholders contribution cannot be possible in the business expansion plan. Therefore, the bank loan option is the best option for raising fund which must be handled effectively and efficiently.
Zodiac Garage Limited currently sells “used vehicles” apart from the professional repairing services. To explore the business, the company can engage themselves into the dealership business. In this business exposure, Zodiac can sell any brand at their preferences (Hrebiniak 2013). Due to have enough space, the management of the company can make this idea fruitful. This plan could be beneficial because customer responses will definitely be increased. However, the company needs to serve extra responsibility in the case of dealership business because brand reputation along with the company goodwill needs to be maintained simultaneously (Harmon 2014). But the company can earn more profits from the chosen automobile dealers. On the other hand, the reputation and trustworthiness of the company could also be increased after getting the status of “Authorized Service Dealer”.
To outsourcing the business, the number of service stations in the different location needs to be established to increase the service mobility (Babafemi 2015). The firm should aim to supply not only the general public but also for companies with a high quality service and should explore fully fitted state of the art workshop. All this service must maintain the cost effectiveness to maintain the competitive advantages in the market.
Introducing “Technology-driven trends” into the current business can be responsible for changing customer behavior within the workplace. In the new work culture, the management needs to be accelerated 24/7 operations, keeping motorists maintained to a high level of standard above that of a normal garage. Furthermore, the integrated relationship with customer shall be maintained and an emergency assistance department needs to be implemented for better handling emergency roadside assistances.
In the proposed change management program, Zodiac Garage Private Limited has to change their business priorities. Offering the best service to their consumer was the initial objectives of the company. However, this is not adequate for outsourcing the business proposal. The changed business objectives, therefore, be as follows:
To explore new garage areas for outsourcing the professional repairing services and maximizes customer satisfaction
To diversify the operational activities and segregates the responsibilities for ensuring the maximum growth and revenue
To deliver enthusiastic work culture and provides quality welding work, super quality body repairing service along with high quality vehicle paintwork in all their expanded service destination, maintaining cost effectiveness.
Recommendation to overcome the identified weaknesses
To increase the workforce strength and service flexibility of the existing as well as the new appointed employees
Incorporating all these objectives into the proposed change management plan, the full participation and involvement of the management will be required. The CEO of the company has to explore the transformational entrepreneurship where all employees and executives will get a chance to participate in core decision makings.
To enhance the business competencies and accelerate garage service productivity, a revised business plan is highly desirable.
Highly skilled and technically vibrant employees are the main driving force of the organization (Ackermann and Audretsch 2013). Therefore, the level of efficiency needs to be enhanced, giving extra privilege to their employees. For example, the management needs to be paid extra money for any overtime services. In other way, if an engineer is engaged in emergency vehicle recovery or emergency roadside assistance, then he /she will definitely get extra pay. On the other side, the employee work flexibility shall be managed effectively by the management otherwise it would be difficult for an employee to survive in the ever expanding and accepting service environment.
The management should increase the responsiveness because if they engage in the dealership business apart from repairing services, then, the brand reputation of the dealer must be maintained providing best selling supervision and hassle free administration (Blackburn, Hart and Wainwright 2013). Here the garage supervision must be monitored and all the outsourcing service destinations must be functioned in an integrated manner. For instance, an extensive cars parking system must be developed to increase sales volume and revenue.
A strong financial base is highly desirable for make the service system more mechanical and less manual (Goss 2015). An effective function of financial department of Zodiac Garage Private Limited have to take the responsibility for appropriate working capital management so that the authority can buy technical accessories like Auto painting machine, tire repairing improved machine as so on. It will ensure functional excellence in the automobile service industry.
Plan 1: Improve team excellence and focus towards the common goal
All functional departments like admin, operation, finance, sales and HRM must co-operate each other in every interaction. In this was a systematic work flow management system must be maintained. Secondly, senior engineers can guide and offer training sessions for serving better for customers.
Plan 2: Garage maintenance and increase space facilities
This would be better if the management start their operation and outsourcing their service from outside Liverpool. Every people associated with this company shall participate in the garage maintenance service. An organized and sophisticated vehicle parking place must be maintained for better customer satisfaction.
Plan 3: Enhance technical excellence
In spite of the use of vintage engineering equipments, the company will use advanced technologies and will make the entire system less manual with maintaining cost effectiveness.
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The business and the associated people will also be influenced by the proposed changes. Such impacts will be as follows:
The service professionalism will be increased by operating under the stick vigilance of the management (Booth 2015).
The customized work culture will increase the end productivity of the business and that would definitely be helpful to maintain competitive edges among other garage companies in UK.
The better repairing and trading services provided by employees will increase intangible brand values of the business (Ocasio and Radoynovska 2016).
The change management plans are as follows:
i) To follow a transformational leadership where employee engagement will be valued in the decision making process in the business (plan for CEO)
ii) To recruit highly skilled and experienced personnel in the automobile engineering industry (plan for HRM)
iii) To provide best vehicle recovery and other technical assistance in the most cost effective manner (plan for operational department)
iv) To give an extra effort for make better fund management system (plan for finance department)
v) To supervise garage maintenance and ensure a high quality car accommodation (plan for administration)
Zodiac limited should maintain a service monitoring system to ensure that the “proposed changed management plan” is appropriately executed. For this, the administration will be evaluated the services and will collect customer feedbacks after the service sessions (Jeston and Nelis 2014). Furthermore, the management will conduct monthly meeting session for employees who are engaged in sales and customer dealings. All the customer complaints and the other operational issues will be resolved by arranging a direct employee-employer conversation.
By implementing above plans and changed management strategies, Zodiac Garage Limited can definitely expand their service and will manage “increased workload” more effectively. However, this process execution is indeed a challenging part for the management of the company. But this changed business plan will be successful if the management get an active participation and cooperation from all departments of the company.
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