Introduction, Constraints And Risks in Enterprise Rent-A-Car - Essay Example

INTRODUCTION, CONSTRAINTS AND RISKS al Affiliation INTRODUCTION Enterprise Rent-A-Car (ERAC) ERAC is a global business organization that deals with car renting brand that is based in North America and has branches worldwide (Enterprise.co.uk, 2015). It is well known for its strategic positioning of its branches in transportation hubs such as airports. Its branches are concentrated in Canada, Europe, and the United States. Since its establishment in 1957, the company has embraced various management policies in order to survive in the competitive markets.

The case study will provide a detailed plan for the expansion of the firm’s operation in Greece through a franchise. The companys corporate and human resource structure has also contributed to its success through various approaches (Enterprise.co.uk, 2015). The employees have ensured customer satisfaction in all its branches leading to more sales and profit maximization. The corporate structure has ensured perfect and competent leadership skills that guarantee good decision-making skills (Enterprise.co.uk, 2015).

The management roles have also been utilized in a proficient manner ensuring good communication mediums between the junior workers and their seniors. The company has diversified its product provision by embracing a plan that caters to all its clients. (Enterprise.co.uk, 2015) Despite its specialization on car leasing and rentals, the firm has also been involved in other activities such as vanpooling and rental programs. Its diversification has increased its market share in most of the international markets due to the competitive structure (Enterprise.co.uk, 2015).

Moreover, the firm is also ethically sensitive since it has involved its research on various negative impacts that are caused by most companies’ impact on the society (Enterprise.co.uk, 2015). It has been involved in community development in most of its branches’ locations whereby it has contributed through financial and strategic resources. It has a large employee base that has positively contributed to the society through job creation. Its vast revenue has led to its investments in different countries leading to economic development.

Finally, it has made acquisitions of other firms in the same sector causing an increase in the Autokinto Autokinto is a Greek based rental company that has recently been franchised by Rent-a-car (Enterprise.co.uk, 2015). Its headquarters are based in Athens and have 49 branches located in both the mainland and islands. Autokinto is a family owned company that has exercised various strategies to facilitate its growth in the country. Autokinto has emphasized great customer value to increase its customer base.

It growth has led to the increase in its turnover leading to €50k profits (Enterprise.co.uk, 2015). As a result, the management has ensured customer loyalty presenting and opportunity of overcoming its rivals in the market. However, it the company does not have growth policies such as those adopted by Rent-a-car. There is no wish to expand its operations to branch locations and fleet size. Consequently, the case study examines the firm’s expansion plans by exposing various opportunities that Enterprise can use after the franchise.

Moreover, the human resource has no incentive to grow. Enterprise, on the other hand, has a 10% annual growth (Enterprise.co.uk, 2015). Autokinto has adopted a cultural based human resource practice that has led to a higher staff turnover compared to Enterprise that has an increased growth rate. Enterprise strategically planned Autokintos profit maximization through the franchising in the island locations that have been on the decrease (Enterprise.co.uk, 2015). They have been affected by the harsh weather conditions and a drop in the number of tourists.

Additionally, Autokintos I.T systems have not undergone standard advancements in the last ten years; hence, Enterprises franchising plan will change the technological aspects of the company (Enterprise.co.uk, 2015). The technological setbacks have contributed to Autokintos few profits since they fleet, and workplaces have not been automated. As a result, most of the bookings have been done through the phones or walk-in at their offices rather than the use of internet platforms (Enterprise.co.uk, 2015). CONSTRAINTS AND RISKS Constraints Data collection Accessing information from both companies will be a setback for the groups activities.

The company has its branches located in different geographical locations; hence, making it difficult to contact the management of both firms in the stipulated time frame. Additionally, some of the workers have restriction to provide sensitive data to external environments. The group’s schedule may not match the companies’ schedules. For example, the company’s management may be busy with its daily operations causing difficulties in restructuring their rigid schedules. The data collection methods may also not match the company’s mediums of information provision.

The time allocated for the case study may not be enough to gather enough information, analyze and make recommendations. The locations of Autokinto’s branches are diverse; hence, requiring more time to cover all structures. Additionally, the scope of the study may demand more time due to its management nature. Limited technological resources The resources may be used in the analysis of the collected data (MilosÌŒevicÌ, Patanakul, and Srivannaboon, 2010). They may include both software and hardware that will be embraced in the data collection.

Data storage space may be a setback due to the nature of the technological resources. For example, the data may exceed the provide space in terms of the design. Data analytical software may also be a setback to evaluate the results of the case study especially in financial departments. Additionally, the format of the data may also contrast from the groups planned designs. For example, the group may use advanced technological devices but the companies such as Autokinto may provide manual data that need to be recorded using other styles.

Business constraints They may include limitations on some information such as Autokinto’s financial statements. The provided data may not be sufficient for the case study since the company may not produce all the required policies and financial records from some of the locations. ERAC does not have enough information Greece’s economic policies, a factor that will cause the project group to spend more time analyzing the laws to establish expansion niches. Data biases According to Grant (2012), a case study may suffer from data biasness.

The case study will include a team that will be involved in all the activities. Role allocation in different sectors may lead to data biases due to the assigned number of individuals. Perfect leadership and management skills should be adopted to prevent this risk. The data should also be carefully handled to prevent loss and imperfect generalization of results. Lack of direct control A case study may be affected by the differences in authority between the firm and group carrying out the research (Kerzner, 2009).

The team assigned to the case study may not have all the authority in practicing analytical skills. ERAC senior leadership team may stipulate conditions for the case study that may affect the results of the research team. Risks Legal factors According to Gerring (2007), a case study may be at risk of legal factors. They may include legal policies in Greece that may affect the productivity of the case study. The country may present harsh laws that affect international business operations such as franchising, mergers, and acquisition.

The legal restrictions may pose a threat to the expansion strategies of Enterprise into Greece. Additionally, the economic policies such as tax rates and exchange rate may also affect the proposed financial figures. It may also affect the cost –benefit analysis of Autokinto that has to be evaluated during the case study. Generalization of data According to Fraser,Narvaez and Simkins (2014) the overview of information from different branches without taking into account individual standards may cause may affect the final results of the case study.

For example, Autokinto’s island locations may have other determining factors such as weather and environment that may need more resources and policies to ensure maximum production. Loss and exposure of sensitive data Autokinto has not fully embraced technology; hence, its record keeping may lead to loss of vital data. Additionally, the information gathered and used for the case study may be at risk of exposing the company’s competition strategies to its competitors. The project group has to obtain sensitive information such as financial and future expansion plans of both companies that would be a great asset to other rental firms in Greece.

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