105 final final paper

7/21/2019 105 Final Final Paper

http://slidepdf.com/reader/full/105-final-final-paper 1/14

Outline

I. Overview of Industry A. Industry Growth (based on financials, numbers)B. Industry Opportunity: ar!et si"e

#. $umber of people ownin% cars&. 'ow often cars brea!down and need repair

. Industry hreat: ompetitors#. Bi% *layers in the mar!et&. *otential of small players in the mar!et (scale is li!e

+-). /tren%ths of players in the mar!et and wea!nesses

II. Company Background A. Brief history (evolution from small upholstery to one0stop shop)B. (/e%ue from A.) Branches (Brief intro or picture of each). GOA1: 2arn enou%h to support family3 ission45ision6. Or%ani"ational /tructure4chart (family members headin% each

shop)2. 7/*: rust4ustomer 8elationships and 9leibility

III. Overview of *rocess A. A*AI;B. /285I2/ O992826. ustomer /ervice49low ana%ement

#. Acceptance of lient (9rom call, pic! up, what if full,

etc.)&. lient 2it (*ayment, settin% prices, etc.)

6. /upply hain ana%ement2. Inventory ana%ement9. /ervicin% *rocess (the chec!list, assi%nment of personnel,

chec!in% of wor! done by head mechanic)

G. 2mployment and rainin%'. ustomer 8elationship ana%ement#. ustomer 6atabase&. Acceptin% calls in wee hours. *ricin%

I. Interbranch OperationsI5. Guide <uestions5. *roblems Identified

A. auses of *roblems#. /mall /cale Business&. hinese way of dealin% with operations. Belief that messy is business

B. *8OB12/ *8O*28#. *8IA8;: Inconsistency of <uality of /ervices

offereda) 6espite 7/*, it=s a select which

actually feel this&. Inventory ana%ement. Interbranch Operations

5I. Important <ualifiers4onsiderations when proposin% solutions A. 6oes not plan to epand into bi% corporation



B. Owner still wants to be hands on5II. *roposed /olutions

A. *8IA8;: Inconsistency of <uality of /ervices offeredB. Inventory ana%ement. Interbranch Operations

5III. Other 8ecommendations

A. In case of plans to epand...I>. onclusions



CASE DESCRIPTION

he primary sub?ect matter of this case is the consistency of +ilson -ac!son=s inter0branch

operations with focus on customer processes, customer relationship, and employee trainin%.

/econdary issues eamined concern branch0level operations which include supply chain

mana%ement, and inventory systems.

CASE SYNOPSIS

+ilson and -ac!son Automotive (+-) operates as a one stop shop for all car0related needs,

and focuses on service and fleibility. +- was intended to be a small business that could earn

enou%h to support a family. It started as a small branch in anila. 'owever, as +- started

buildin% stron% trust with clients throu%h their etensive services and ecellent communication, it

be%an eperiencin% %reat %rowth and success.

Given that it was the family@s first time runnin% a business, operations were very simple.

*rocesses were traditional due to the hinese bac!%round of the owners. -acinto, /r., the head,

was very hands on with the operation of the anila branch. As the business %rew, he saw an

opportunity to let his children ta!e part in the family business. 'e set up additional branches in

alabon and Banawe, and allowed each of his children to run a branch. /ince the branches

were separate from each other, each siblin% had his own way of runnin% the business. 9rom the

way they treat their customers, how they train their employees, how relationships and personal

biases affect decisions and more, the branches differed %reatly from each other. 6ue to the

independence of the branches, there=s no standard way of servicin% clients which leads to

inconsistency in the uality of service that ultimately affects customer perception. In addition, as

a tric!le0down effect from the business bein% run traditionally, branch0level operations are also

affected. he usa%e of %ut feel is common and contributes to the inability to trac! and monitor

the supply chain and inventory properly.

In time, +-=s business model will be outdated. ore competitors will compete, and without

improved, consistent and sustainable operations to satisfy its customer=s needs, the business

will not last.



CASE BODY

I. Industry Overview

Automotive repair industry

he automotive industry has %rown hi%hly competitive throu%h the years, alon% with the %rowth

of auto industry particularly in the *hilippines. he year &#C started with a ;ear0on0;ear %rowth

of #D.E over the -anuary &#F /ales. /tatistics reveal that the total automotive industry has

already %rown to a billion peso industry occupyin% a si%nificant portion of the pie in the total

G6* of the *hilippines.

his %rowth is not ?ust seen in the %rowth of private car ownership, but also in car0related

transportation services such as Grab ar and 7ber. Another byproduct of the trend is the

emer%ence of automotive and car repair shops which are popular in -ose Abad /antos, anila.

Competitive environment

Given hi%hly0dense competition in the industry, each business player is continuously challen%ed

to differentiate itself from the rest. ore often than not, players are left with two choices 0

Offerin% differentiated and speciali"ed services, or becomin% a one0stop shop for automotive

services. 6espite differences in the scope of services, successful automotive shops all share a

commitment to hi%h uality service. +ith intense competition, customer loyalty plays a

si%nificant role in maintainin% healthy mar%ins. here is no better way of sustainin% customer

loyalty than by sellin% a uniue eperience, rather than ?ust a product.

Aside from developin% close ties with customers, the success of the automotive industry,particularly those who re%ularly deal with car parts hi%hly depends on developin% %ood

relationships with suppliers. Good supplier relations yield various benefits, namely: (#) ost

savin%s from possible purchase discounts, (&) 'i%h level of uality for such materials which

translates to %ood customer impression, eventually leadin% to sales, and () ore efficient

overall operations mana%ement due to reduction of possible stoc! out costs.

II. Backgrund

History

+ilson and -ac!son started out in #DC, when +ilson, the eldest son, was born. It started as a

small upholstery shop, then named +ilson 7pholstery alon% -ose Abad /antos, anila. he

shop was set up usin% capital that was loaned from various family friends and relatives. he

main reason for settin% up the shop was so -acinto, /r., +ilson=s dad, could put food on the

table for his children. Beyond the founder=s epectations, it now has shops. After %ainin% a

%ood reputation in the hinese community, particularly in the Binondo area, +ilson 7pholstery

%rew into +ilson and -ac!son Automotive 8epair /hop. +- started offerin% services such as



car repairs, paint ?obs, buy0and0sell of second hand cars, and even dealin% brand new cars. It

has also recently started offerin% insurance services as well.

+hen +ilson %raduated from colle%e with a de%ree in mar!etin%, he too! over the first +-

branch in anila. 'is siblin%s followed, helpin% out with the shop. After %ainin% such a client

base, they have seen that epansion may be possible.

-acinto, /r. wanted his children to wor! for the family business. o accommodate all of them,

branches in alabon and Banawe were set up. Given that one of their main differentiators is

bein% able to converse in andarin and 9oo!ien which helps in %ainin% the trust of hinese

clients, they epanded into areas such as alabon and Banawe which also had nearby hinese

communities. +- anila has the most hinese clients, %iven its location and status as the

ori%inal branch. hinese clients loo! for someone they can trust, and +- has earned this in its

C years of eistence. Because of this trust +-, many of the loyal customers are third

%eneration clients00meanin%, their fathers, and %randfathers were also clients of the business. In

doin% business.

Initially, -ac!son and the youn%est brother -acinto, -r. both ran the alabon branch which has

a #&0car capacity compared to the FH0car capacity of the anila branch. he alabon branch

veers away a little from the common hinese client demo%raphic of the anila branch, since the

youn%er brothers do not spea! andarin as well as +ilson. 6espite this they !eep the same

traditional way of runnin% the business. It really appeals to the customers how the owners would

deal with them face0to0face with a personal touch once they become re%ulars. A lot of the clients

are in fact referred by older clients who have established a deep rooted relationship with +-.

After -ac!son went to anada for years, the alabon branch was left to the care of -acinto,

-r. -unior ran the business with the youn%est sister -oanna. Bein% the & youn%est they had their own style of runnin% the business which did not deviate too much from the traditional hinese

way of dealin% with clients. hey were the first to ma!e a 9aceboo! pa%e, and even used to

have a ultiply account to promote the buy0and0sell of second hand cars. he alabon branch

had more online advertisin% compared to anila which solely relies on word of mouth, simple

sponsorships of pro%rams, or newspapers. -unior, however, continued how +ilson dealt

personally with clients. +hen he was youn%er, he would even personally do some of the

maintenance chec! ?ust to show the client how hands on he is with the operations. As +ilson

a%ed, he could not really do this anymore, but he compensates for it by directly overseein%

operations. -unior is only in his =s ri%ht now, so he still continues doin% it. -unior has a wider

networ! outside the hinese community and alabon branch have a more diverse client base

which includes some celebrities from AB/0B$.

+hen -ac!son came bac! to the *hilippines, they surveyed for a new location and found a %ood

spot in 6. ua"on, Banawe. here is %reater potential in this area because of its !nown

reputation of bein% the %o0to place when it comes to automotive needs. 'owever, the challen%e

the business had to face was to distin%uish itself due to threat of competition.



USP

he value proposition of +- is that it=s a one0stop shop for all car0related needs with a focus

on customer service and fleibility.

ompetitive advanta%es which +- employs include havin% the trust of clients. Initially, this is

done throu%h the personal networ! of the business owners. 2ventually, referrals from family andfriends lin! first0time customers with the shop. +hen these first0timers eperience +-=s uality

of service they also brin% in more business for the shop. Althou%h +- primarily relies on word

of mouth as its main advertisin% channel, it also seasonally places ads on some hinese

publications. he bottomline is that +-@s main strate%y is focused on the development of deep

customer relationships by formin% an intimate understandin% of their clientele.

+- then utili"es its value proposition of fleibility in order to ensure that the services provided

are suited to the customer. It prides itself in personali"ed after0sales services, ma!in% sure that

clients= needs are properly addressed. Of course these services are still limited to the

capabilities of the store. 9leibility even etends to the time which service can be rendered. 9or

re%ular customers and insured clients, the owners entertain calls even at the wee hours of the

mornin% when they %et into any car0related problems or accidents. ost of the cases

encountered are road accidents. +- already has set contacts for towin% services, and

attorneys for le%al matters to help the clients. +- also does not earn anythin% from these but

%oodwill, as the client only pays for the services offered by third parties. oreover, as an

etended service, +- also offers insurance services to its clients should they opt to avail of

such. he company@s care for its clients is also manifested in its initiative of callin% its lon%0time

clients to remind them of their upcomin% 1O car re%istration ahead of its epiry.

III. Overview ! Prcess

In order to study the differences in +-=s operations, +- will be analy"ed on both an inter0branch, and branch level of operations. his difference is hi%hli%hted because of different

concerns for each. In terms of interbranch operations, the focus of the analysis will be customer

processes, customer relationship, and employment and trainin%. In terms of branch level

operations, the focus will be supply chain mana%ement, and inventory systems.

Inter-branch Operations

+ith three branches, +ilson and -ac!son has several issues with consistency. 2ach siblin% of

the family independently handles one branch. +ith little to no coordination amon% the branches,

consistency in customer relations and processes, as well as trainin% have become problematic.

Customer e!ationship

Given that the automotive industry is a hi%h value business, customers tend to be very pic!y

when choosin% the company they will trust. his aspect of trust is further hi%hli%hted by the

primarily hinese profile of +-. 2mpirical evidence su%%ests that when dealin% with hinese

customers, it@s either you@ll have them forever or never.



he initial transaction tends to play a si%nificant role in the determination of the future of your

relationship with them. +hen it comes to systems and operations, hinese clients are not so

concerned with standardi"ed mechanics. his phenomenon ma!es it even more comple for

businesses to develop lastin% relationships with hinese clients. ;ou have to stri!e the proper

balance between standardi"ation and what suits their individual tastes. he problem of

consistency is especially seen when loo!in% at inter0branch operations. Inconsistency amon%the branches may put off potential clients for the company.

One-Stop-Shop

+- offers a variety of automobile services, and mar!ets itself as a one0stop0shop. 'owever,

offerin% such a diverse set of services places %reat strain on the business= operations.

onsistency is important in the service industry. Offerin% such a wide array of services may

distin%uish +- from its competitors, it also poses %reater challen%e for the business as it

distorts speciali"ation by dividin% its focus amon% its different se%ments. 6urin% an interview,

the owner of one of the branches disclosed how paint ?obs reuired a %reat deal of s!ill as a

relatively small mista!e would reuire the whole ?ob to be redone. 'e also mentioned how he

would sometimes personally assist clients who %ot into accidents as far as *aranaue ity.

Other services include re%ular chan%e oil tune up, car re%istration, and repairs from car

accidents. Generally prices would ran%e between *h* &, to *h* , for re%ular

maintenance while repairs from a car accident would start at *h* C,. hese prices are hi%hly

competitive and could sometimes even be half of what other shops offer.

Aside from offerin% convenience, +- hi%hli%hts the uality of service. o ensure that all

services are rendered, chec!lists posted on the windshield of the car are used to trac! the

pro%ress of each ?ob. 7pon completion dependin% on the si"e of the ?ob, the chief mechanic or

the owner inspects the car. 'owever, no %uidelines are used to determine uality. <uality

control is still heavily sub?ective. 7pon and even after pic!up customers may return with followup repairs if the ?ob was improperly done.

2ach branch also tries to strive from the same uality of service. 'owever because of the lac!

of coordination and the fact that each branch is independently run, uality of service is not

consistent amon% the different branches with different approaches in mana%ement. his issue is

miti%ated since customers are not epected to %o from one branch to another. In special cases

wherein a client of one branch needs to %o to the other, the head of the branch will call up his

siblin% who is handlin% the other branch to endorseJ the client. his system, althou%h seems to

wor!, is also dan%erous. +hile different clients have varyin% epectations, preferences and

reuirements, havin% a unifyin% uality and climate of service mi%ht help reinforce overall brand

sustainability.

"mp!oyment and #raining



Supp!y Chain &anagement

As earlier mentioned, havin% %ood relations with suppliers is crucial to the success of a

business, especially one that operates in the automotive industry. It can ensure the hi%h uality

of materials used and can help business owners acuire supplies at favorable prices.

urrently, +-=s three branches have uniform suppliers only when it comes to lar%e volume

orders li!e screws, and items which are used daily such as lubricants and paintin% materials.

9or the rest of the inventory items, the branches order from different suppliers dependin% on

who the branch mana%ers have developed close relationships with. his enables each branch

to obtain supplies at more affordable prices. 'owever, this still poses a problem as the uality of

materials used may vary from one branch to another, leadin% to inconsistencies in the services

rendered.

Because the branch heads order from suppliers with whom they have stron% ties with, it has

been very easy for them to build %ood supplier relations. Oftentimes, it is the supplier who %ets

in touch with them to as! if there is anythin% that they need.

Inventory System

Bein% an automotive repair shop, it is important for +- to have enou%h inventory on0hand to

meet customers= demands and perform the services needed by their clients. urrently, however,

+- does not have a fied system when it comes to mana%in% their inventory. 'avin% no set

order uantity and reorder point, they depend a lot on 'tantsa( and %ut feel in determinin% how

much inventory to %et from their suppliers, and when to order them.

9urthermore, +- also does not have an or%ani"ed approach to !eep trac! of how much

inventory they have. Before 6ecember comes, they simply chec! if they still have stoc! of thevarious items, but they do not !eep a record of the eact count of each item. his ma!es it

difficult for them to !now until when their supplies will last.

+ithout a centrali"ed inventory system, +- faces the ris! of encounterin% situations wherein

certain materials needed to finish a ?ob are out of stoc! or are not readily available. his can

cause delays and customer dissatisfaction, and may ultimately translate to lost business.

/crap inventory is also not bein% properly accounted for. 6ue to lac! of standardi"ed protocols

of disposal, these types of inventory become waste as their possible salva%e values are not

reali"ed. here is also a possibility that this mi%ht encoura%e a theft by the employees. he

bottomline is the lac! of standard system of mana%in% the flow of inventory in the business

ma!es incidents of theft or loss prevalent.

"mp!oyment and #raining

urrently, the branch employs &K wor!ers includin% & chief mechanics wor!in% from H: am to

C: pm each day. In order to ensure the inte%rity of each wor!er, applications are only

accepted with a recommendation from a trusted party. $ew wor!ers start out as wash boys who



clean the car after it is serviced. 2ventually, new wor!ers are trained for specific ?obs to perform.

his division of labor increases the uality of specific ?obs throu%h speciali"ation while

increasin% accountability for specific tas!s. ompetitive pay and additional bonus are %iven out

to prevent hi%h attrition within the wor!force and encoura%e uality service. +e observed that

this branch places a hi%h premium on the uality of its labor. his level of uality mi%ht be

observed by other branches throu%h different approach other than premium on uality of labor.

I%. &uide 'uestins

#) 'ow do hinese people conduct businessL&) +hat are the problems of the traditional hinese way of runnin% a businessL) 'ow do hinese customers li!e to be dealt withLF) 6escribe +-@s supplier relationsL +hat are the pros and cons of how they

choose their suppliersLC) 'ow should +- stri!e the proper balance between its traditional hinese

operations, and the need to be more internally systematicL

%. Pr(le)s Identi!ied

Interbranch Consistency

he first of the issues to be tac!led by this study is the consistency of the uality of services

offered by all branches. 6ue to operations which are not standardi"ed, uality offered may be

different from time to time. his may result in difference in materials used or no definite basis for

measurin% results of the repair wor!. /ince the three branches do not coordinate and have no

centrali"ed system, it is possible that when a client from the anila branch visits the alabon

branch, he may find inconsistencies with the time needed to perform a particular service.

oreover, because of the tantsaJ aspect of +-=s way of doin% business, unavailability of

certain spare parts and materials mi%ht further hi%hli%ht inter0branch inconsistency. his reflects

poor dynamics amon% the branches.

Inventory System

he focus of the study will be the automotive repair services offered by +-. As mentioned

above, +- offers a full ran%e of car0related services from re0paintin% to repairin% en%ines, to

offerin% insurance, and fiin% bumps from car accidents. onseuently, each branch must have

adeuate inventory on0hand to meet anticipated demand. An inadeuate inventory mana%ement

system raises costs, and can translate to lost business because of orderin% lead time.

Customer e!ationship )eve!opment In relation to this is the lac! of a standardi"ed way of servicin% its clients. Bein% in the service

industry, since what is offered is intan%ible, the way a company treats its client is important.

6espite operatin% under the same name, a customer from one branch may find difficulty in

availin% services in another. his is due to the fact that it is operated independently under

different family members. hus, the records !ept, or the lac! thereof, are different per branch.

9or eample, a customer from branch A who plans to avail of services in branch B due to the

proimity of the branch to his place may need to contact the owner of branch A to be able to be



served well in branch B. his poses a problem because in business, customer satisfaction

comes from the way a client is served. If a business is unable to trac! its client records and

needs, it will be unable to serve them well.

%I. I)$rtant 'uali!iers and Cnsideratins

#raditiona! Chinese oots

One important consideration for the solutions to the issues for +- is the hinese ulture that

serves as the foundation of the business. A lot of the inefficiencies with how +ilson -ac!son

runs its business are also the reasons why the business was able to %row to what it is today.

Uni*ue Customer Pro+i!e

Given that the automotive industry is a hi%h value business, customers tend to be very pic!y

when choosin% the company they will trust. his aspect of trust is further hi%hli%hted by the

primarily hinese profile of +-. Accordin% to studies, when dealin% with hinese customers,

it@s either you@ll have them forever or never. Initial transaction tends to play a si%nificant role in

the determination of the future of your relationship with them. +hen it comes to systems and

operations, hinese clients are not so concerned about standardi"ed mechanics. 9or them, as

lon% as it wor!s, it@s fine. One remar!able insi%ht and symbolism we %ot from the owner is that,

M*a% ma%ulo, may ne%osyo,M referrin% to the scattered materials inside the office. his

phenomenon ma!es it even more comple for businesses to develop lastin% relationships with

hinese clients. ;ou have to stri!e the proper balance between standardi"ation and what suits

with them. hat is where +-@s advanta%e comes in 00 deep understandin% of its clients.

Specia!i,ed $orm o+ Service

+hen the business started out, its customers appreciated how hands0on the owners were with

the business (versus systematic and impersonal). 9or eample, it was the son of the owner whowas made to commute by ?eep to fetch cars that needed to be repaired. oday, they continue

with this le%acy of service by havin% the youn%est of the brothers do the mechanical wor! under

the car. Accordin% to the owner, the customers also appreciate that they aren=t meticulous with

forms and procedures.

Uni*ue Supp!y Chain System

1astly, it may be seen as inefficient that +ilson -ac!son=s suppliers are their suppliers, not

because they=re the cheapest, or because they have the hi%hest uality, but because they=re the

friends of the owner. +hile it may ta!e a bit away from their bottomline, the act of %ivin%

business to friends, helps brin% in more customers throu%h word of mouth. Bein% mar!eted by

word of mouth is somethin% especially important with hinese clientele as the hinese are

reluctant to trust those who are outside of their networ!. <uite a number of +ilson -ac!son=s

customers are inter%enerational. hat is, their %randfathers and fathers were customers. he

hinese li!e to !now who they are doin% business with. ;ou !now you have their trust once they

let you ma!e their decisions for them and ?ust let you char%e it to them later on, !nowin% that

you have their best interest in mind.



S#A)A)I/") I0"#O1 &AA"&"# S1S#"&

urrently, +- does not have a fied system in terms of purchasin%, settin%0up, and trac!in% its

inventory. 6espite havin% branches, +- does not always order from the same supplier. hey

try to order based on the demand of all stores in order to decrease costs. 'owever, when thehead of a particular branch finds a more affordable supplier, or someone they personally !now,

they will order from them instead. herefore, costs are not uniform and uality of materials used

vary from one store to another. +- also does not have a particular way of trac!in% how much

inventory they have and when they should re0order. hey do not consider lead time, and the

possibility of bein% out of stoc!. hey operate with the typical hinese attitude of tantsaJ and

follow their %ut feel. here are times when they would order materials only when they find out it

is out of stoc!, or if they feel that the amount left is about to be used up.

+e recommend that +- as a business should also have a centrali"ed supplier database to

ensure that they %et the best parts and materials at the least cost. his will also ensure %reater

consistency amon% the branches as spare parts and materials play si%nificant role in deliverin%

hi%h uality service to their customers. Good and efficient business0supplier relations eventually

translate to better customer relationships. Aside from this, we also recommend that they

implement an 2O< system to avoid stoc!outs and delays, and standardi"e their supplies

acuisition process, which is essential for business stability. his involves forecastin% potential

demand for the period and determinin% the ideal order uantity, so that entire purchasin%

process becomes optimal. Also, the three branches could coordinate in orderin% the staple

supplies li!e lubricants to avail of bul! discounts over the standard discounts received by each

branch. his would also have the additional benefit of cuttin% orderin% and delivery costs.

Inventory mana%ement also etends to trac!in% inventory on hand and even scrap inventory.

+e recommend that +- twea! its office layout to ensure that all si%nificant inventories areproperly !ept and would be less prone to theft and loss. oreover, it includes trac!in% what %ets

in and out of the on0hand inventory to enable the business to have ad?ustments with its

purchasin% operations. /pare parts and other scrap materials should also be properly trac!ed

and disposed of to ensure that their value, even if minimal could be reali"ed.

Customer )riven Process

he previous two recommendations focus on increasin% the standardi"ation of the business.

'owever, the profile of the customer must also be considered. urrently, +ilson -ac!son

levera%es on its traditional style of operations which hi%hly appeals to its customers %iven that it

is usually less hassle for them. 'owever, the traditional style is not necessarily the most efficient

for the company. his style focuses on buildin% customer relationships and tailor0fittin% the

service to each customer=s specifications or needs. +ith this, the operations of the business

seems to be the perfect combination of simplicity and compleity. It is simple in terms of how the

customers must deal with +- when availin% of its services, but comple in terms of +-=s

internal systems and interactions with each customer as it becomes speciali"ed and hands0on

to fit every circumstance. 'owever, this is not without cost. Great as it sounds, the traditional

style is hard to maintain, and can be inefficient once a business %rows.



Bein% a one0stop0shop for all car0related needs, +- may wor! more efficiently if it decides to

outsource certain ?obs. 9or eample,+- can partner with those that speciali"e in paintin%.

*aint ?obs are usually one of the most epensive and cumbersome services that a competitor

removed it from the services he offers because paint ?obs usually reuire rewor!. If +-

outsourced this, it could focus more on repairs and maintenance chec!s. his helps +-speciali"e more and offer better uality service to its customers. he creation of this partnership

would have to be done carefully as the uality standards of the third party may be below their

own.

oreover, implementin% innovations in the business does not always mean creatin% a headache

for customers. he !ey is to ma!e sure that the customers are with the business in identifyin%

issues, and implementin% innovations to address these. his could mean improvin% the

customer feedbac! mechanism. he implementation of all these recommendations should still

be tailor0fit to the uniue behavior of +-=s !ey customers, which serves as a stron% foundation

of the business..

9inally, the hands0on approach of ta!in% the business is hi%hly recommended as the owner is

the individual who initially creates trust with the hinese community. 'owever, as a lon% term

relationship is built with the customers of the business, this trust should eventually be

transferred from the owner to the brand of +-. he bottomline is +- should live up to its core

promise of treatin% its customers, not as customers, but as partners.

%III. Cnclusin

In the midst of ti%ht competition, it is important for every business to continuously improve.

2very improvement should focus on translatin% efficient operation to %reater customer satisfaction, and ultimately hi%her profits. 'owever, as in the case of +-, a fully standardi"ed

system mi%ht be too restrictin% for the business. he nature of automotive industry coupled with

+-@s uniue customer base reuire the business to be more fleible when dealin% with

standardi"ation of operations issues. In the end, +- should stri!e the proper balance between

standardi"in% operations to ma!e internal processes smoother, and caterin% to the uniue

behavior of its hinese clients who mostly believe that as lon% as it wor!s, nothin% needs to be

fied.

105 final final paper

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