Relation Between Music and Movies
Essay by Zomby • July 26, 2012 • Essay • 363 Words (2 Pages) • 1,345 Views
ullivan's Auto World
Current Scenario
Auto World running losses for the last 6 months
Auto World was two months behind in mortgage payments.
Accounts payable had risen sharply in the last 6 months.
Industry forecasts of future sales were discouraging.
Service revenues had declined and below industry average.
High staff turnover
Analysis of the problem:-
1) Very myopic viewpoint of management
Walter Sullivan sold cars not complete transportation solutions.
Auto World did not have a body shop for repairing body work.
As Theodore Levit mentioned in his Paper "Marketing Myopia" by itself there is no growth industry, only companies organized and operated to create and capitalize on growth opportunities.
Managerial Imaginativeness: Could not pre-empt the consumer needs and hence missed out on growth opportunities.
2) Customers are unforgiving when a problem isn't fixed in the first attempt and they have to return their vehicle for further work.
3) Didn't deliver on core needs-breach at a fundamental level
Aesthetics of the place, interpersonal skills of employees.
4) Service writers snapping back
5) Pricing- Suboptimal service levels and yet overpriced (high margins)
Labour Costs- High labour costs in situations when customers had to revisit for a problem and yet would be charged by the hour for it-not a very customer centric strategy being followed.
6) Opportunity for expanding new car sales did not appear promising, hence stress should have been laid on services which wasn't the case (Father barely saw it as a necessary adjunct to the business)
7) Shabby service (no proactive effort to make the customer feel comfortable)
Customers made to sand while their work orders were written
Service Manager Rick Obert was gruff and argumentative.
8) High turnover of service staff showing lack of motivation
Insights from Customer Survey:
30 day survey showed above average results.
9 month survey had disturbing results showing lack of importance given to post sales service.
Interpersonal variables,
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