To: Steve Wilford
From: e 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). Armed with that information, it can determine if
continuing what they are doing is the right path for success. e 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. e 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). e e
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
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
