SCENARIO:<br/> <br/>Three friends from high school with a common passion
for cars decided to pursue their interest and formed Three Guys Garage (TGG). The team pooled their savings and acquired an SBA loan for $300,000 to open their shop in 2008. The business has evolved into a successful business in a Philadelphia suburb. Sales have grown to $2.3M in 2014 and are on pace to exceed $2.5M by the end of the year. The business offers full-service auto repair as well as classic car restoration services and coordination.
Jerry, Jose and Manuel have been so focused on establishing the business and growing it to a sustainable level that little though has been given to a “go-forward” plan. Jerry, who serves as company president commented, “We need to continue growing TGG understanding that each of us has different personal goals.” Jerry wants to see the brand grow into a national chain. Jose is concerned about loss of control on the quality of the operation from an aggressive growth plan. Manuel is not sure the business model is fully transferable and that they have to keep very tight controls on their costs to maintain a reasonable profit margin.
The team started working with a business coach to begin working on an updated business plan and a strategy for expansion. From the analysis, it was clear that the business model they had could be successful in multiple locations. Over the last few years they had been approached by several customers asking if they offered a franchise or would be interested in expanding, but the team has no knowledge or understanding of if or how that might work. They have also been approached by an investor who has offered to fund their expansion but the team didn’t know how to respond, telling the investor they would keep his information in case it was of interest in the future. Also, each of the partners has a salary they are taking from the business but now there is also some interest in taking some of the retained earnings out as profit distributions. Jerry and Jose want to reinvest those profits into expansion but Manuel wants to make some personal investments. The team is also facing some necessary investments in new technology that is required to service the newer cars that are starting to come out of warranty. Although the business can continue without those technology investments it might limit the growth potential and options. Finally, Jerry’s son decided not to go to college but works in the business and has progressed to a senior mechanic. He has indicating to the team that he might want to go back to college for a business degree to be better prepared to support the business. Jose’s wife is the company’s bookkeeper and Manuel’s daughter handles the marketing.
As the team continues their meetings with the business coach they are struggling to reconcile these issues and create a “go-forward” business plan they can all agree to.
InstructionsAssignment 3: Growth, Innovation, Sustainability, and Succession (30%)
In this assignment, students evaluate three growth strategies for a company-owned business, a franchise, and a joint venture. Students will analyze the results of research and determine the strategy that best aligns with an owner’s goals for succession planning, sustainability, and innovation.
– develop critical managerial skills and processes to assess and analyze key elements of emerging enterprise organizations
– evaluate and measure forward-thinking enterprise strategies relevant to sustainability and succession through innovationStep 1: Review “How to Analyze a Case Study” under Week 2 Content.
Step 2: Create a Word or Rich Text Format (RTF) document that is double-spaced, 12-point font. The final product will be between 2-3pages in length excluding the title page, reference page, and the template (which must be attached to the report as an exhibit);
Step 3: Review the grading rubric for the assignment.
Step 4: Follow this format:
– Title page with title, your name, the course, the instructor’s name;
– Body, in paragraph form using headings: Use headings for the questions provided but do not include the questions in the paper
– Summary paragraphStep 5: In writing a case study, the writing is in the third person. What this means is that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person
Step 6: In writing this assignment, students are asked to support the reasoning using in-text citations and a reference list. A reference within a reference list cannot exist without an associated in-text citation and vice versa. View the sample APA paper under Week 2 content
Step 7: Include references from both the class material and from sources other than the class material.
Step 8: In writing this type of assignment, students are expected to paraphrase and not use direct quotes. Learn to paraphrase by reviewing this link: https://writing.wisc.edu/Handbook/QPA_paraphrase2.html.
Step 9: Read critically and analyze the scenario provided under Week 8 Content.
Step 10: Write down or highlight key facts from the scenario. Consider making an outline to capture key points in the paper.
– Using the fact pattern from the case study located under week 8 content, material from the course and outside research, complete the template at the end of the case study;
– Once the template is completed, analyze the findings to determine which strategy aligns best with the owner’s goals for succession planning and sustainability
– Discuss the role of innovation in achieving the owner’s goals;
Step 12: Create the introductory paragraph. The introductory paragraph is the first paragraph of the paper but is typically written after writing the body of the paper (Questions students responded to above). View this website to learn how to write an introductory paragraph: http://www.writing.ucsb.edu/faculty/donelan/intro.html
Step 13: Write a summary paragraph. A summary paragraph restates the main idea(s) of the essay. Make sure to leave a reader with a sense that the essay is complete. The summary paragraph is the last paragraph of a paper.