To: Steve Wilford, CEO
From: Yelena Ruberte, Business Consultant
Date: 17 March 2022
Subject: Paul’s Discount Tires & Repairs Strategic Plan Review
Mr. Wilford:
Please find my review and suggestions below.
A. Business strategy is a multifaceted approach that includes plans, goals,
and steps to reach them. The importance of a good business strategy
cannot be understated as it is a company’s road map to success in the
ever-changing business environment. Henry Mintzberg defined strategy
as a plan, as a ploy, as a position, as a pattern, and as a perspective in
his “5 Ps of strategy” (University of Maryland Global Campus, n.d.,
“Chapter 1. Mastering Strategy: Art and Science”, p. 7). It is prudent to
note that all 5 components are equally important in Mintzberg’s concept
of strategy. This concept highlights important aspects that are not
considered in the current Paul's Discount Tires & Repairs business
strategy. Crafting a thought-out plan is an essential aspect of business
and requires a detailed set of steps needed to lead the company into a
successful and prosperous future. Without a plan, however, both
employees and management will feel uncertain about the company’s
prospect. It will be beneficial to add the steps that Paul's Discount Tires
& Repairs will take to achieve its mission. Moreover, strategic planning
has to account for market turbulences caused by competitors, customers,
suppliers, and regulators by factoring in a certain level of flexibility
(University of Maryland Global Campus, n.d., “Chapter 1. Mastering
Strategy: Art and Science”, p. 9). COVID pandemic caused a few setbacks
that were not anticipated, and warrants a potential strategy adjustment
to ensure the company maintains its competitive advantage in the
market. g g g g
B. The other Ps in Mintzberg’s strategy are pattern, position, and ploy
(University of Maryland Global Campus, n.d., “Chapter 1. Mastering
Strategy: Art and Science”, p. 7). Paul’s ploy is very straightforward, and
it is to leverage the lowest price for tires and repairs in the area as well
as to provide exceptional customer service and the highest quality of
work. It is a solid value proposition that will continue to attract new and
established customers alike. Paul’s has been in business for 21 years, and
prides itself in providing tires and minor vehicle repair services to retail
customers and positioned itself as a market leader in the area. The
company has a strong pattern of doing business the same way for over
two decades, which has proven to work and lead to its growth of several
million in annual revenue. Paul’s should remain consistent in its strategy
and core mission although small adjustments and innovative ideas to
evolve along with the market and maintain its leadership position should
be encouraged. This will help the company to stay less predictable and
keep the competitive edge in the market (University of Maryland Global
Campus, n.d., “Chapter 1. Mastering Strategy: Art and Science”, p. 12). g g g
C. Being consistent with the company’s mission of offering the lowest
price for discount tires and vehicle repairs, unparalleled customer service,
and guaranteeing the highest quality work in the area, it is possible to
continue maintaining a competitive advantage. Paul’s Discount Tires &
Repairs committed to a value proposition and has a highly regarded
reputation that is hard to match by competitors. Sticking to the
company’s core values used for 21 years and banking on people will help
to overcome pandemic setbacks and current tough times. However,
continuous evaluation of the market and industry competitors is crucial
in maintaining a competitive edge. As Goldsmith (2013) stated,
businesses that constantly reassess and recreate their competitive
advantage strategies have the greatest potential to secure profits long
term (p. 15).
D. Companies experience a constant pressure to lower costs, increase
profits, and stay relevant in the ever-evolving competitive market
(Goldsmith, 2013, p. 15). In order to stay ahead of the competition,
Paul’s needs to reevaluate the current market taking into consideration
any changes in the market conditions prompted by COVID pandemic. It
will be beneficial to see what steps are being taken by the current rivals,
assess setbacks due to pandemic and ways to combat them, and reach
out to the customer base to see how their needs have changed. Crafting
a short-term elaborate plan, including clearly stated goals and steps to
achieve them, will help the company to overcome current challenges and
maintain a leadership position in the market.
References
Goldsmith, D. (Jul/Aug 2013). Rethinking the Company’s Competitive
Advantage.
Financial Executive, 29 (6)
, 15.
https://learn.umgc.edu/content/enforced/625295-001153-01-2222-OL3-
7389/Rethinking%20the%20Company's%20Competitive%20Advantage.pdf
?_&d2lSessionVal=etJVNTeSpv53URGt6OzbGbYFe
University of Maryland Global Campus. (n.d.).
Chapter 1. Mastering
Strategy: Art and Science
. Document posted in UMGC BMGT 495 7389
online classroom, archived at
https://learn.umgc.edu/d2l/le/content/625295/viewContent/25492349/Vi
ew
