I choose a car dealership business named Lexus dealer of Pacific Beach to create a business plan which I will describe in detail below.
Dealers are the authorized companies to sell new and used cars. Every organization have a dealership to sell their products with the company name. Organizations directly previously used to sell their products through mails, representatives or stores. Can have so many changes and sales procedures are changed as per the generation and technology. Can have different kinds of dealerships, could be single brand, multi brand or used cars. Depending on the organization policies they work and bring growth-oriented sales to organization using many different strategies.
Organizational Structure:
The organization structure can define how the whole organization activities needs to be performed by structuring it. In organization structure, the misssion of the company, with the objective as well, is defined and have work together with the mission of achieve all goals and objectives. The organizational structure need a good designed to perform all levels of actives and shared various process to many different performance levels. With base based on the organization structure the organization will respond to various issues and perform their duties effectively to achieve the organization goals. The fundamental organization structure contains:
-Department of Sales force Finance
-Accounting and billing
-Service department
Competitive Edge:
The developed car dealership brings so many changes and smear various strategies in terms for a competitive edge. A competitive edge can be an advantage over competitors. The company will need to be more innovative and cost effective in terms compare with other retailers. The company will need offer especially discounts and other cost effective things to attract more customers. Every customer interaction and communication has to be important and provide great customer satisfactory in services to win over other retailers. Can have other strategies and marketing campaign needs to be used for more competitive edge. The competitive edge can perform better by study things like threat of new entry’s, purchasing power ,threat of substitution and supplier power can derive competitive edge compare with retailers. Identifying these from the market and would be able to applying various activates to perform best in the market overtaking competitors.
Marketing Strategy:
Marketing strategy is very important and primordial strategy for any business applying various strategies and identify the modern marketing strategies are important to bring more sales in the market, specially in the car sales business. When are applying for strategies, one od the most important should be aware of threats and identify the strategy success? One shouldn’t be use the outdated strategies for business achievement. Always try to come with innovative strategies, looking for better performance in the market. With based on the company marketing strategies, success always depends. A marketing strategy can be applying in so many ways and technology is a tool that can be used in a such way that marketing strategies will works for the best for the company. If have no strategies applied and not followed a proper marketing strategies sale may fall down and will not attain the product success in the market. Marketing strategies have to be implemented in matter of bring more and more product sales through various contributions and services with innovative strategies.
Breakeven Analysis:
The breakeven analysis can be defined as a calculation of the point in which revenue equal expenses. This calculation will provide a details through analysis and where gains are equal to loss. That can not at all considered as a greatest thing for a business, if some organization revenue is equal to its loss then there is no reason to making that company in to its profits. If profits are equal to loss, financial thinking, the pressure will increase on the dealership and nothing will be gained with it. In order to get the clear idea about the breakeven point, we needs to analysis divide and the fixed cost with the revenue minus variable cost per unit, that will give us the breakeven Divide for the fixed cost by the contribution margin to get the proper sales in the industry.
CARMAX balance sheet:
References
Charles T. Horngren, G. L. (2014). Introduction to Financial Accouting.