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To:f Stevef Wilford
From:f Reyanf Edeza
Date:f 20f Marchf 2022
Subject:f Paul'sf Discountf Tiresf &f Repairsf Strategicf Plan
Mr.f Wilford,f belowf aref thef answersf tof yourf fourf questionsf regardingf yourf
strategicf plan.
Whatf isf wrongf aboutf thef strategy?f
Whenf analyzingf af companyf plan,f Professorf Henryf Mintzbergf off McGillf
Universityf devisedf af methodf knownf asf thef 5f Psf off strategy.f Thisf methodf
willf assistf youf inf determiningf thef benefitsf andf drawbacksf off yourf currentf
plan.f (Thef Saylorf Foundation,f 2014f PGf 5.f Paraf 3f Startingf withf thef
problem,f itf shouldf focusf onf thef firstf P,f af plan.f Accordingf tof thef plan,f af
meticulouslyf constructedf setf off measuresf thatf af corporationf wantsf tof takef
tof bef successfulf (Thef Saylorf Foundation,f 2014f PGf 5.f Paraf 3.f Whilef youf
havef af currentf strategy,f itf isf notf particularlyf thoroughf andf indicatesf thatf
Paul'sf Discountf Tiresf willf continuef tof dof whatf itf hasf donef forf thef previousf
21f years.f Thisf isf incorrectf becausef Paul'sf Discountf Tiresf isf havingf
problemsf dealingf withf thef epidemicf andf needsf af freshf conceptf orf
somethingf tof modifyf tof stayf inf business.f Theref isf nothingf wrongf withf thisf
strategy;f itf hasf metf thef fivef unconventionalf businessf practicesf thatf mostf
successfulf businessesf use:f itf hasf committedf tof identity,f itf hasf translatedf itsf
strategyf intof everyf dayf withf precision,f itf hasf cutf costsf tof growf strongerf asf
needed,f andf itf hasf shapedf theirf futuref usingf theirf coref valuesf (Leinwand&f
Mainardi,f 2016.f Paraf 5).f
B.f Whatf isf rightf aboutf thisf strategy?
Byf linkingf af company'sf aimf andf itsf restrictions,f af well-definedf strategicf
planf shouldf presentf af clearf picturef off itsf currentf andf futuref situation.f
Paul'sf Discountf Tiresf andf Repairsf builtf itsf strategicf planf aroundf fourf mainf
areas:f competitivef advantagef byf providingf thef lowestf pricef discountf tires,f
vehiclef repairs,f exceptionalf customerf service,f andf qualityf work,f culturef
valuesf tof overcomef thef COVIDf Pandemic'sf setbacks,f cost-cuttingf asf
neededf tof providef growth,f andf plansf forf thef nextf tenf yearsf (Leinwand&f
Mainardi,f 2016.f Paraf 4).f Thef aspectf off thisf approachf thatf isf correctf isf thatf
itf usesf thef company'sf presentf positionf tof assistf strengthenf thef plan.f Paul'sf
Discountf Tiresf hasf beenf inf businessf forf 21f yearsf andf isf recognizedf forf
offeringf thef mostf competitivef pricing.f Thef company'sf standingf regardingf
itsf competitorsf isf criticalf atf thisf point.f Continuingf tof providef consumersf
reducedf pricingf whilef simultaneouslyf offeringf high-qualityf laborf andf goodf
customerf servicef willf keepf thisf firmf aheadf off thef competitionf (Thef Saylorf
Foundation,f 2014f PGf 5.f Paraf 3)
C.f Wef aref thef marketf leaderf inf discountf tiresf andf repairsf inf ourf city,f
indicatingf thatf wef currentlyf havef af competitivef advantage.f Willf wef
sustainf itf withf thisf strategy?
Paul'sf Discountf Tiresf andf Repairsf isf thef city'sf marketf leaderf inf discountf
tiresf andf repairs,f andf theirf strategicf planf willf helpf themf maintainf thatf
position.f Theyf managef theirf companyf usingf thef followingf fivef unorthodoxf
practices:f Theyf commitf tof identityf viaf af valuef propositionf thatf includesf
offeringf thef lowestf pricef forf theirf service,f havingf af world-classf customerf
servicef systemf withf uniquef capabilities,f andf af carefullyf selectedf portfoliof
off af tiref andf minorf repairf servicesputtingf theirf strategyf intof practicef byf
developingf af ten-yearf planf tof providef consistentf servicef andf high-qualityf
workf tof theirf consumers.f Puttingf theirf culturef tof workf whilef adheringf tof
thef underlyingf valuesf thatf thef companyf wasf foundedf oncuttingf costsf
whenf neededf tof getf strongerf andf maintainingf theirf employeesf insteadf off
layingf themf offf duringf badf timescreatingf theirf futuref tof overcomef thef
COVIDf pandemic'sf setbackf (Leinwand&f Mainardi,f 2016.f Paraf 7).f However,f
justf becausef theyf aref thef marketf leaderf todayf doesf notf implyf theyf willf
alwaysf bef thef marketf leaderf iff theyf dof notf continuef tof enhancef theirf
servicesf tof keepf theirf clientsf loyal.f Youf aref accuratef inf claimingf thatf theref
isf nowf af competitivef advantagef asf thef industryf leaderf inf inexpensivef tiresf
andf repairs.f Asf previouslyf said,f makingf usef off ourf advantageousf positionf isf
criticalf inf thisf strategicf businessf strategy.f Withf af well-thought-outf plan,f
thisf methodf canf bef sustained.f Thef companyf willf continuef tof setf itselff
apartf fromf thef competitionf byf consistentlyf deliveringf thef lowestf costsf andf
guaranteeingf ourf work.
D.f Onef thingf tof dof tof improvef onf thisf strategy.
Humanf capitalf isf onef thingf theyf canf dof tof betterf theirf plan.f Humanf capitalf
encouragesf employeef innovation,f boostsf employeef happiness,f andf
improvesf employee-to-employeef andf employee-to-customerf
communication.f Af goodf marketingf approachf willf bef requiredf tof guaranteef
thatf ourf clientsf knowf thatf thef companyf willf providef thef highestf qualityf
andf lowestf pricingf inf thef business.f Alternatively,f thef companyf mayf usef
incentivef schemesf tof keepf ourf clientsf returning.f Allf off thesef factorsf willf
contributef tof ourf industry'sf long-termf viability.
f
f
References
Leinwand,f P.,f &f Mainardi,f C.f (2016,f Februaryf 3).f
Creatingf af strategyf thatf
works
.f Strategy+business.f Retrievedf Marchf 17,f 2022,f fromf
https://www.strategy-business.com/feature/Creating-a-Strategy-That-
Works
Thef Saylorf Foundation.f (2014).f
Chapterf 1f Masteringf Strategy:f Artf andf
Science
.f LEOconten.f Retrievedf Marchf 18,f 2022,f fromf
https://leocontent.umgc.edu/content/dam/equella-
content/bmgt495/Chapter_1Mastering_Strategy.pdf
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