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. aa 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
