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. aa
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. aa aa aa aa
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). aa aa aa
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
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