Executive Summary
Doing business in today’s business market is challenging requiring an organization to have an understanding of customer need as well as how to adjust to the changing business market. It is the responsibility of the management team to gain insight on how to please the customer while also increasing revenue. No matter the business this process must be accomplished in excellence for the sustainability of the business.
This process is even more important relative to the automotive industry. Turbulent changes in the economy to include people losing jobs thereby not having the income to buy new cars as well as large automakers to include GM and Chrysler having to receive help via a bailout in 2008 has changed the way in which automobile dealers handle their customers (Isidore 1). While old challenges included smaller sized cars with fuel efficiency, the new challenges include consumer changing needs relative to the type of vehicles (SUV, electric, etc.) being purchased and the auto industry ensuring to meet those needs to increase revenue. This industry is constantly experiencing change.
Phil Long Dealerships have been in business since the 1940s with the plan to satisfy customer needs. While the dealership is successful and has been for many years, it is now time to produce services that will make the auto dealer even more competitive. A plan has been introduced to add additional customer service for the client to include free car rentals when the customer drops off a car to be serviced for more than one day, free car washes for all customers who require auto repairs, and free pick-up to and from the dealership within a 25 mile radius.
Company and Product/Service Description
In 1975 Philip Long brought in Jay Cimino (who received an honorable discharge from the Marine Corp) as a partner with Mr. Cimino later becoming the general manager and finally becoming CEO. Over the years Mr. Cimino now holds the position of President and CEO of the Phil Long family of Dealerships which now consists of 10 franchises and 25 different establishments in Denver, Colorado, Colorado Springs, Colorado, Trinidad, and Raton, New Mexico (Phil Long 1).
With the passing of Mr. Long in 2001, the dealership is still moving forward successfully. The dealership has an outstanding reputation in the community with a commitment to improving the quality of life for all citizens as well as the employees. As an example of the commitment that this organization has to all citizens, when the 9/11 attacks occurred in New York, Mr. Cimino brought donations and assistance to the American Red Cross through the Phil Long Family of Dealerships. From this example thousands of other businesses’ came together thereby raising over $600K within a 12 hour period. This reveals the dedication of the organization to not only increase revenue but to contribute positively to the community.
Strategic Analysis
Strategic analysis is the process used by an organization to gain an understanding of the environment in which the organization is operating. This knowledge allows the organization to gain a clear understanding of strategic moves that can be created in order to improve organizational efficiency and effectiveness by increasing the organization’s ability to arrange and rearrange resources effectively (CIMA 1). This is a process that will enable an organization to make the right choices to create a strategic plan that will enable the continued success of the business.
The SWOT analysis assists an organization in discovering what is working successfully within the organization to include attributes which are palpable as well as impalpable to the organization. These are factors that the organization controls and can change if there is a need to do so. As an example, if it is found that employees need more training, the organization can begin the process quickly. If distribution channels need to be changed or if technology needs to be updated, the organization can move forward without delay (Schmidt 2).
Weaknesses are areas within the business that need to be improved thereby allowing the organization to gain a competitive advantage. The organization can find out the areas that need improvement to accomplish organizational goals. The business can also discover if there is the need to increase resources.
Opportunities are external factors that could allow the business to be successful. Recognizing growth opportunities that are available within the market could benefit the business and propel the business forward. The organization can also become perception concerning the best business opportunity.
Threats are usually external factors that are beyond the organization’s control. Information concerning existing or potential competitors can be realized with the organization also having the ability to discover situations that could threaten marketing efforts. This is valuable information that organizations can use to make successful strategic plans relative to their business (Schmidt 1).
Phil Long has performed a SWOT analysis to determine the organizations strengths, weaknesses, opportunities, and threats. The following information was found (Schmidt 2)
Strengths
Phil Long dealerships are known throughout the state of Colorado as being honest while delivering exceptional customer service;
The company offers different automotive brands to include Ford, Lincoln, Hyundai, Chevrolet, Kia, Audi, Mercedes Benz, and Toyota;
The company has major revenue that is accomplished via the success of each independent dealership; and
Employees of the organization are professional subject matter experts who are trained in their fields thereby giving the organization a competitive advantage (Schmidt 2).
Weaknesses
There are many competitors in the Denver, CO area that offer the same service as Phil Long and
The company has to meet competitor pricing at times in order to make the sale (Schmidt 2)
Opportunities
The company is a strong company and could benefit from a merger, acquisition, or joint venture to become an even stronger company;
The company is profitable and could expand domestically if desired and
The company could expand into the international market (Phil Long 1).
Threats
Economic slowdown which could affect sales and
Increased competition from competitors domestically is causing a slight decrease in revenue (Schmidt 2).
This is valuable information that has enabled Phil Long to locate where the company is positioned at this time so that future plans can be made if desired.
Environmental Factors
Environmental factors are elements that could be physical, demographic, cultural, or regulatory that effect business decisions. These are factors that if misjudged or misunderstood could cause an organization to fail in its strategic plan for change. No business operates in a vacuum but within a certain environment (CIMA 1). The business environment is the complete total of all of the external as well as internal factors that influence the business. Because of the importance of this knowledge decisions must be well thought out before planning implementation.
Potential Investment Required to Introduce the Service
The potential investment required to introduce the service is minimal as this is a service that had been successful for Phil Long in the past; however, because of the desire to keep service consistent with all dealerships, the free loaner car service, free pickup for customers within a 25 mile radius of the dealership, and free car washes for customers receiving car service was discontinued. One of the major competitors in Denver, CO has started the free car shuttle service for customers receiving repair service of $300 or more; therefore, Phil Long desires to offer even better service thereby being ahead of the competition.
Competition for the New Service
The Mercedes Benz competitor in Denver, CO has begun to offer free pickup for customers who need transportation while their automobile is being service with the service costing $300.00 or more. This is a service that customers’ desire and that also assists the customer in a positive manner while their vehicle is being serviced. Phil Long dealerships will offer these services at every Phil Long dealership and will also keep track of the success of the plan. This will enable Phil Long to continue to grow its business while satisfying its customers.
Marketing Program
The marketing program consists of a mix of traditional and online marketing. Phil Long has used traditional marketing since beginning its business and is enjoying success in the process. Advertisements will be made on television, radio, and flyers that are placed in newspapers. Since the dealership is already using the marketing process, no extra cost will be incurred.
The Internet is also being used by Phil Long to include Facebook and Twitter. The social media team will create an advertising plan to incorporate the addition of these new services to all Phil Long customers online. Any other plans that will be viewed as beneficial to this process will be discussed and implemented if needed.
Phil Long has been successful for over 40 years. The success of this organization has occurred because of dedication not only to the business but to the customers as well as the community. These are important factors that aid in the continued sustainability of the organization.
Works Cited
CIMA. "Strategic Analysis Tools." N.p., Oct. 2007. Web. 14 June 2016.
Isidore, Chris. "Bush Announces Auto Rescue." N.p., 19 Dec. 2008. Web. 14 June 2016.
Phil Long. "Phil Long Dealerships, Inc." N.p., 2016. Web. 14 June 2016.
Phil Long. "Phil Long Dealerships Locations Serving Denver, Colorado Springs Colorado New and Used Car Shoppers." N.p., 2016. Web. 14 June 2016.
Schmidt, A. (2015, April 8). A SWOT Analysis of Boeing. Retrieved May 10, 2016, < http://marketrealist.com/2015/04/swot-analysis-boeing/>
