To: Steve Wilford
From: Toni Ames
Re: Paul’s Discount Tires & Repairs Business Strategic Plan
A. What is wrong with this strategy.
A strategic plan consists of steps taken by a firm to map out a path for success (Mastering Strategy: Art and Science, n.d.,
p. 8, para.1). The plan is carefully thought out. The document provided has only three bullet points with vary vague
information. The first step indicated that the company would just continue what they are doing now for the next ten years.
To survive and flourish in business a company must examine what markets they compete in, what unique value they possess
in the marketplace, and then determine what resources and capabilities are needed to thrive in the marketplace (Kryscynski,
2015). c Armed with that information, it can determine if continuing what they are doing is the right path for success. The
plan should be mapped out for a much shorter time than ten years.
The second step of the plan gives a list of goals, not strategies, on how to beat the competition. Michael Porter, (What is
Strategy? Michael Porter Explains Common Misunderstandings, 2015), believes that too many managers work to be the best
in their industry rather than focusing on what is unique to them that makes them stand out in the industry. For example,
why do people choose which grocery store to shop at? Trader Joe’s and Giant are both successful grocery stores, but each
provides different atmospheres. Giant shoppers might like large stores with many product choices. Trader Joe’s shoppers
have fewer options available, but it has a fun, carefree vibe with quirky product names. Neither is the best in the grocery
store industry, but each provides a unique shopping experience.
The third step addresses how to address the setbacks caused by the pandemic. Sticking to core values and cutting costs will
not be enough to offset the impact of the pandemic. Because the pandemic is not predictable any intended strategy may
need to be tweaked to account for outside forces that are not controllable. The strategy emerges over time especially when
there are unpredictable forces such as a worldwide pandemic (Kryscynski, 2015)
B. What is right about this strategy?
The three-point strategy provides a jumping-off space that can be built upon to formulate a strategic plan. It provides a
framework to start the conversation about the tire store's vision and mission. A vision is more about what the tire store will
become in the future while a mission is more about the past and present (Leading Strategically, n.d. pp. 40-41, para 2, 4).
c
C. We are the market leader in discount tires and repairs in our city, indicating that we currently have a competitive
advantage. Will we sustain it with this strategy?
There is no sure-fire way to maintain a competitive advantage rather it should regularly explore other ways to gain
competitive advantages (Goldsmith, 2013, p. 15, para. 3). To improve the sustainability of a strategy over the long term a
company can measure financial performance, customer approval, internal organizational effectiveness, and understand that
strategies will change as the company grows and innovates (Leading Strategically, n.d., p. 50, para. 2).
D. What is one thing we could do to improve on this strategy?
Paul’s sells discount tires and provides minor service repairs. Both segments of the company should examine how each can
contribute to gaining the competitive advantage in their divisions to add to the success of the entire company (Goldsmith,
2013, p.16, para. 6).
References
Goldsmith, D. (2013). Rethinking the Company's Competitive Advantage. Financial Executive, 14-17.
Kryscynski, D. (2015, January 5). What is Strategy? Retrieved from YouTube:
https://www.youtube.com/watch?v=TD7WSLeQtVw
Leading Strategically. (n.d.). Retrieved from Mastering Strategic Management: https://leocontent.umgc.edu/content/dam/equella-
content/bmgt495/Chapter2Leading_Strategically.pdf. CC 3.0
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4
Mastering Strategy: Art and Science. (n.d.). Retrieved from Mastering Strategic Management:
https://leocontent.umgc.edu/content/dam/equella-content/bmgt495/Chapter_1Mastering_Strategy.pdf. CC 3.0
What is Strategy? Michael Porter Explains Common Misunderstandings. (2015, November 5). Retrieved from YouTube:
https://www.youtube.com/watch?v=3Hd88eBgkw0
