MEMO
FROM: Joseph Comer
TO: Steve Wilford
SUBJECT: Paul's Discount Tires & Repairs Business Strategic Plan
DATE: March 19, 2022
A. What is wrong with this strategy?
A major defect of the tire shop business strategy is the lack of a relevant
plan. Without an established sequence of events a strategy is just a list of
statements. An effective strategy utilizes the 5 P's technique (plan, ploy,
pattern, position, and perspective) when creating a successful business
strategy. The first portion of the 5 P's is that of the plan and is a crucial first
step in strategy development (The Saylor Foundation, 2014, p. 7). Any
superb plan defines how the business will reach its goals and execute a well-
structured strategy (The Saylor Foundation, 2014, p. 8). The tire shop's
present strategy has considerably vague directions on how the strategy will
be carried out. An example is within the third strategy that states the
business will continue to thrive depsite setbacks through cutting costs and
relying on hard work of employees. This strategy does not mention how the
shop will be able cut costs and maintain similar levels of quality service or
how the work of employees will help deliver the end goal of success. Will
the business still be able to provide the same quality products if they have
to cut costs when necessary? How will the business thrive if they develop a
cheap/frugal image in the eyes of customers? A vehicle is an important
investment and customers will want to ensure they are the receiving the
best service for their money.
B. What is right about this strategy?
While the current strategy is not free of imperfections there is the solid
utilization of emergent strategy. In the strategic plan it was recognized that
the COVID pandemic has created complications to the economy and how
business is conducted. The fact that the pandemic would have lasting
implications was also discussed and based upon solid reasoning. As a result
of this inclusion in the strategy it is recognized that one must co-exist with
COVID and the policies created to be continuously successful. The ever-
changing restrictions on how business operate in the pandemic require
utmost flexibilty and the strategy reflects this necessity. The use of a
emergent strategy is the abilty to remain flexible in light of unexpected
circumstances, especially the COVID pandemic (The Saylor Foundation,
2014, p. 18). The business, like others will need stellar vigilance to be
adaptable and successful until the world has triumphed over the pandemic.
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?
The current strategy has limited ability to create a sustainable business
model. While it has ambitious goals there is not a specific enough plan or
details that describe how to implement the strategy. The vague nature of
the strategy is too broad of a business future and needs to be mapped with
realistic actions to deliver the promised end result. The claim of the
competitive advantage does not mention how or why the competitive
advantage will aide in making the strategy into a successful one. If the
company sources from a bargain retailer it should state their intentions to
continue business with them and any fallback options if the partnership
ends. It is imperative that the actual source of the competitive advantage is
defined and how the company plans on sustaining that advantage over
competitiors.
D. What is one thing we could do to improve on this strategy?
Steve should revisit the 5 P’s to improve the tire shop's strategy as it would
allow him to throughly develop the plan to make it a reality (The Saylor
Foundation, 2014, p. 7). Revisiting the why behind the strategy will aide in
developing the how of the business model.
Plan- This is a list of actions used to reach the end goal. Any successful
undertaking will require portions to be mapped out and completed over
smaller increments to create a much greater sized success.
Ploy- This is the way to gain an advantage over competitors. The tire shop
claims to rely on its competitive advantage but no steps are given that
describe how the company will retain it.
Pattern- The consistency of actions conducted by a business. This helps to
create a reknown image in the eyes of customers and develop a stellar
reputation. What will the business do to perform to its past standards and
continue to be the first choice for consumers in the automotive industry.
Position- Where is the business in the sector in comparison to other
venues? Does the shop lead in prices, service, or quality?
Perspective- This describes how the company reacts to the business
environment around them. How will the business react to future mandates
of the pandemic and other international events? How will the business cope
with rising fuel prices and its effects on how people drive?
Sincerely,
Joseph
References
The Saylor Foundation (2014).
Mastering Strategic Management
. Arlington,
Virginia: Saylor Academy.
https://learn.umgc.edu/d2l/le/content/625295/viewContent/25492349/Vi
ew
