Business Recommendations Based on Economic Projections

Essay by militantmindzB-, March 2010

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Big Drive Auto - Business Recommendations based on Economic Projections

University of Phoenix, MBA



Big Drive Auto - Business Recommendations based on Economic Projections


This paper will offer recommendations for Big Drive Auto (BDA) to base its strategic operations business plan over the next 5 years. BDA is a multi-state automobile and truck dealer who retails new and used vehicles and provides service and parts services to its retail and wholesale customers. Its revenue is divided amongst its key business units: new retail car and truck sales, used car and truck sales, vehicle service department, wholesale and retail parts sales, and tire sales.

BDA's goal is to identify key business plan components that will be the focus of this 5-year strategic plan. This plan will focus on three primary areas:

Pricing Strategy Recommendations

Nonprice Barriers to Entry Recommendations

Product Differentiation Ideas

Pricing Strategy Recommendations:

Many industries have been through the proverbial wringer in the past few years, likely none more so than the auto industry.

Big Drive Auto has an advantage over some dealers in that in addition to selling cars they also services autos and sell supplies, parts and tires. Although many other competitors offer similar deals, only BDA was invited by the OEM's (Chrysler and General Motors) to cease selling cars and shut down their operations. Big Drive Auto keeps solid records and seeks to use its records and macroeconomic data for insight into pricing strategy; nonprice barriers to entry; and ideas for product differentiation.

Kim, Davis, Jacobson and Lyndaker (2008) use the percent of real value added in data reporting to show that growth in durable goods manufacturing in 2005, 2006 and 2007 "was led by...