IPO for Smart Drive International - Case Study Example

IPO for Smart Drive International Name Institution Course Date Table of Contents 1. Background 3 2. Business Model 3 Researching and Picking the Features 5 Getting Pre-Approved for a Car Loan 7 Planning for the Trade-In Strategy 10 Locating and Test-Driving the Car 13 Settling on a Sale Price and Asking for Ideal Warranty 15 Checking for the Dealer Financing 17 Closing the Deal 20 Taking the Delivery 23 References 26 IPO for Smart Drive International 1. Background Smart Drive International (SDI) is the leading seller of smart, economical and modern cars and trucks in Atlanta, Georgia. The customer service is top notch, and clients enjoy the privilege to negotiate the prices. The client adopted IPO (Input-Process-Output) business model five years ago. The new design has helped the firm triple the volume of sales in the last three years. The IPO is globally accepted in the analysis of systems and comprehensively describes the framework of information processes in a given company (Pavitt 2014, 710). The business model allows SDI to receive input from customers and other sources. The inputs typically include information, money, human resources, and materials transformed into outputs such as money, new data, services, and consumables. Research shows that firms that follow their business model strictly usually enjoy a competitive edge, high sales volume, register high-profit margins, and maintains high customer satisfaction levels (Browning 2014, 237). SDI ensure its vibrant sales department always follow a simple business model that clearly defines the IPO and system relationship for every step involved in meeting an identified customer need. 2. Business Model Purchasing a new car is not an easy task for many clients. Prospective customers must learn how to research, locate, negotiate, and place an order. Cloud computing technology has remarkably revolutionized the ordering system. Fig. 2.1. System Relationship Researching and Picking the Features The SDI customer app provides prospective buyers will all crucial information they need to know. They can also visit the company’s site to learn more. The brand and expert reviews are also provided to guide the new customer. The customers can also view more offers by using the available features. The customer then proceeds to explore the payment methods that best suits his needs. Table 2.1 Customer Researching and Picking Features IPO No Input Process Output 1 Researching and Picking Features Customer checks features on the SDI App or SDI Website Feature Checking (START) 1.1 Satisfied Picks the features Satisfied with features 1.2 Not satisfied Repeat feature checks Satisfied with features 1.3 Still not satisfied Schedule manual ordering Manual ordering 2 Checking brand and expert reviews Ascertain the quality and affordability Brand Verification 2.1 Satisfied Picks the brand Selects the brand 2.2 Not satisfied Repeat brand checks Satisfied with features 2.3 Still not satisfied Schedule manual brand checks Manual brand check 3 Checking for more details Customer searches for additional features on SDI App or SDI Website Critical design specification 3.1 Satisfied Picks the brand Brand selection 3.2 Not satisfied Repeat additional features check Brand selection 3.3 Still not satisfied Schedule manual checks Thorough manual feature checks 4 Exploring the payment methods Customer searches for suitable payment method on SDI App or SDI Website Choosing an Appropriate payment method. 4.1 satisfied Picks payment model Picking the payment model 4.2 Not Satisfied Repeat payment model check Picks the payment model (END) 4.3 Still not satisfied Schedule a manual check Manual payment model check (END) Fig. 2.2. Customer Researching and Picking Features System Progress Flow Chart Getting Pre-Approved for a Car Loan Having a pre-approved loan to buy a car assist potential customers to purchase the vehicle of their choice. Customers check what they can afford and the associated interest rates and then compare the financing plans offered by the dealer. Most clients opt for the lowest yearly percentage rate. Customers can also seek for pre-approved loans from third-party lenders, credit union, and the bank. Each client should select a bank that provides the best services. Table.2.2 Customer Getting Pre-Approved for a Car Loan IPO No Input Process Output 1 Getting Pre-Approved for a Car Loan Customer checks dealership financial plans on the SDI App or SDI Website Examining available financial plans (START) 1.1 Satisfied Financial Plan Checks Affrodable Financial Plans 1.2 Not Satisfied Rechecks financial plans Satisfied with Financial plans 1.3 Still No Satisfied Scheduled Financial manual checks Manual financial checks 2 Checking Affordability and Flexibility Evaluating affordability and flexibility of payment Comparing processes 2.1 Satisfied Affordabiliyty and Flexibity Checks Satisfied with affordability and flexibility 2.2 Not Satisfied Recheking flexibility and affordability Satisfied with affordability and flexibility 2.3 Still No Satisfied 3 Selecting a Financial Plan Customer selects the appropriate financing plan on SDI App or SDI Website Choosing a favorable financial plan 3.1 Satisfied Selecting ideal financial plan Chooses a financial plan 3.2 Not Satisfied Rechecking ideal financing plan Rechecking the financial plan 3.3 Still Not Satisfied 4 Filling the loan application form and sending complete form Customer applies for the ideal payment plan on SDI App or SDI Website Loan Application 4.1 Satisfied Applying for ideal repayment plan Completes loan application 4.2 Not Satisfied Rechecks the loan application process Rechecking then loan application 4.3 Still Not Satisfied Seeks Manual Assistance Manual assisted loan application (END) Fig. 2.3. Customer Getting Pre-Approved for a Car Loan Flow Chart Planning for the Trade-In Strategy Trade-in strategy is essential to all customers who have a trade-in deal. Prospects need to know the trade-in value before visiting the dealership. Such an approach helps the customer to have reference points for all offers. The SDI client app helps customers to know the typical trade-in value. The prospective buyer also gets the chance to check other components that would affect the value of the cars such as sunroof and seats. The “Outstanding” cars are quite expensive compared to the “Fair” category. The value provided by the dealer is the trade-in value. The private-party value represents what the seller should expect after selling the car. The dealer value shows what the customer will pay after buying the car from the dealership. Table .2.4 Customer Planning for the Trade-In Strategy IPO No Input Process Output 1 Trade-In Strategy Customer checks the trade-in value on the SDI App or SDI Website Checking the trade-in value (START) 1.1 Satisfied Checking the trade-in value Comparing trade-in value 1.2 Not Satisfied Rechecking the trade in value Comparing the trade-in value 1.3 Still Not satisfied 2 Checking for essential features The customer checks whether important features are available of using SDI App or SDI Website Determining the presence of all integral features 2.1 Satisfied Checking for critical features Confirming critical features 2.2 Not Satisfied Rechecking for critical features Rechecking for essential features 2.3 Still Not satisfied 3 Comparing the brand with other close-related brands on either the “Fair” or “Outstanding” categories Customer selects the “Fair” or “Outstanding” categories to compare the prices Determining whether the prices is reasonable 3.1 Satisfied Comparing the cost of close-related brands Price comparisons 3.2 Not Satisfied Schedules a manual check Scheduling for a manual check 3.3 Still Not satisfied 4 Choosing the ideal brand Customer selects the ideal brand using the SDI App or SDI Website Choosing the brand 4.1 Satisfied Selecting the preferred brand Brand selection 4.2 Not Satisfied Re-selection of the brand Re-selecting the brand 4.3 Still Not satisfied Scheduled manual selection Scheduled manual slection ( END) Fig. 2.4. Customer Planning for the Trade-In Strategy Flow Chart Locating and Test-Driving the Car After evaluating the available offers, the customer visits the dealership to see and test the car before making a purchasing decision. The SDI app provides clients with a unique opportunity to sort by features, trim level, and color. SDI website provides prospective buyers with various alternatives. The majority have a locked-in value that helps the prospect to compare with other stores. Table 2.5 Customer Locating and Test-Driving the Car IPO No Input Process Output 1 Locating and Test-Driving the Car Customer visits the dealership shop to test-drive the car Checking the status of the car (Start) 1.1 Satisfied Test-driving Checking the car condition 1.2 Not Satisfied Repeating the test-drive Re-checking the condition of the car 1.3 Still Not satisfied Repeating the test-driving process Repeating the test-driving process (END) 2 The customer confirms other features such as color and trim level The customer visits the dealership to confirm the color, trim level, and other features Establishing the presence of all crucial features 2.1 Satisfied Confirming the features physically Conforming the presece of essential features physically 2.2 Not Satisfied Re-checking the features Re-confirming the features 2.3 Still Not satisfied 3 The customer confirms the presence or absence of essential features The customer physically confirms the presence or absence of critical features Making the ultimate decision to take the offer or drop it 3.1 Satisfied Deciding whether to take the offer or not Making the final decision 3.2 Not Satisfied Rechecking vital features Taking the offer (END) 3.3 Still Not satisfied Rechecks for the last time Final rechecking 4 Approving the brand Confirming the brand Brand confirmation Fig. 2.5. Customer Locating and Test-Driving the Car Flow Chart Settling on a Sale Price and Asking for Ideal Warranty The prospective customers first choose the vehicle before deciding on the price. The buyer can use the SDI app to check the locked price that allows the customer to compare with other averages from other stores in the area. The prospective buyer can also email, text or call the sales department to learn more on how to complete the ordering process. Table 2.6 Customer Settling on Price and Ideal Warranty IPO No Input Process Output 1 Sale Price and Ideal Warranty Customer settles on a price and checks for warranty Checking the final price and warranty (START) 1.1 Satisfied Selecting the right price and warranty Choosing the final price and warranty 1.2 Not Satisfied Rechecks the price and the warranty Rechecking the price and warranty 1.3 Still Not Satisfied Scheduled manual price and warranty check Scheduled price and warranty re-checking 2 Learning more about the ordering process The customer checks more details regarding the ordering process on the SDI app or site. The customer can also email, text or call the sales department Additional details about the ordering process 2.1 Satisfied Checking for more ordering details Further checks on the ordering process 2.2 Not Satisfied Re-checking for more ordering details Further re-checks on the ordering process 2.3 Still Not Satisfied 3 Settling on the financing option The customer checks for the available financial options on the SDI app or site. Or other online sources. The customer can also email, text or call the sales department Selecting the best financing option 3.1 Satisfied Settling on a financial option Choosing the best financial options 3.2 Not Satisfied Scheduled and manual checking Selecting the financial option 3.3 Still Not Satisfied Re-scheduling another manual check Choose the best option ( END) 4 Sealing the deal Final price confirmation A sealed deal (END) Fig. 2.6. Customer Settling on Price and Ideal Warranty Flow Chart Checking for the Dealer Financing SDI uses APP (Average Price Paid) to give customers the opportunity to check whether the prices are competitive. The APP can be compared with the values other stores are offering in the same area and for the same equipped vehicle. The SDI’s shopper advice team also provides further counseling and guidance to customers who need additional assistance. Table. 2.7 Customer Checking for the Dealer Financing IPO No Input Process Output 1 Checking for the Dealer Financing Customer checks whether the prices are competitive using the SDI app or site, and other online sources Reviewing the available financing options ( START) 1.1 Satisfied Comparing price competitiveness Comparing the price competitiveness 1.2 Not Satisfied Rechecking price competitiveness Rechecking the competitiveness of prices 1.3 Still Not Satisfied 2 Comparing the APP value with other dealerships Comparing the APP value with other dealers on the SDI app or site, and other online sources Checking whether the prices are competitive 2.1 Satisfied Comparing the APP value with rivals APP value comparison 2.2 Not Satisfied Re-comparing the prices with rivals APP value re-comparison 2.3 Still Not Satisfied 3 Seeking further guidance from SDI’s shopper advice team The customer seeks further advice from SDI’s buyer advice team using the SDI app or site. The customer can also email, text or call the sales department Seeking additional expert advice 3.1 Satisfied Seeking future advice from the dealer Further advice from the seller 3.2 Not Satisfied Checking from other dealers Confirming the APP value 3.3 Still Not Satisfied Using other online sources to check Making the final decision ( END) 4 Accepting the APP value Checking the APP personally from other dealers Confirming the APP value Fig. 2.7. Customer Checking for the Dealer Financing Flow Chart Closing the Deal The client is ready to accept the deal once the fees, financing and the price look right. The customer may opt to have the paperwork and car delivered at home or purchase at the dealership. The majority of the clients choose to complete everything at the dealership. SDI sales team is always willing to assist the customers by guiding them to the appropriate insurance and finance offices. The customer then signs the contract and buys additional products like an extended warranty. Clients with a busy working schedule can still endorse a sale contingent to have the new car delivered at the office or home. Table. 2.8 Customer Closing the Deal IPO No Input Process Output 1 Closing the Deal Customer checks whether the price, fees, and financing is okay using the SDI app or website Making the ultimate decision to buy or not (START) 1.1 Satisfied Checking the final details Checking the closing details 1.2 Not Satisfied Re-checking the finances, fees, and the price Re-checking the final details 1.3 Still Not Satisfied 2 Buying at the store or sealing the deal online The customer decides whether to finish all transactions at the dealership or have the car brought home or workplace with all the relevant documents Buying online or at the dealership 2.1 Satisfied Deciding where to buy Buying online or at the store 2.2 Not Satisfied The customer reconsiders where to buy Deciding where to buy 2.3 Still Not Satisfied Reconsidering to buy at the dealership or online Reconsidering where to purchase 3 Signing the contract The customer signs the contract at the store or online Signing the agreement 3.1 Satisfied Signing the contract online or at the store Signing the contract 3.2 Not Satisfied Deciding whether to sign the contract Signing the contract 3.3 Still Not Satisfied Choosing where to sign the contract Signing the contract (END) 4 Asking for the warrant The customer the asks and pays for an extended warrant either at the dealership or through a sales representative Acquiring an extended warranty (END) Fig. 2.8. Customer Closing the Deal Flow Chart Taking the Delivery The client checks whether the car is in the right shape by examining if it has any scratches or other malfunctions. The car should also be clean, and the gas or petrol tanks should be full. The sales person then guides the customer on how to use the different features of the car like safety devices and pairing the smartphone through Bluetooth technology. Additional and detailed information is found in the user’s manual. This is the final stop, but the customer has the right to ask for additional assistance in case the product develops problem within the warranty period. Customers usually keep the contacts of the dealership for further assistance in the future. Table. 2.9 Customer Taking the Delivery IPO No Input Process Output 1 Confirming whether the car is still in the proper shape Customer checks whether the gas tank is full, presence of any dents and scratches Receiving the product in the right shape (START) 1.1 Satisfied Checking the status of the car Checking the condition of the product on delivery 1.2 Not Satisfied Asking confirmation from the sales representative Confirming the status of the car 1.3 Still Not Satisfied 2 Further guidance from the sales representative The sales representative trains the buyer on how to use different features of the car like safety features and pairing Smartphone through Bluetooth. The customer is also free to ask any other questions regarding operating the vehicle. Learning how to use other features 2.1 Satisfied Analyzing the reasons given Assessing the reasons given 2.2 Not Satisfied Seeking further explanations Asking for more explanation 2.3 Still Not Satisfied 3 Learning how to use the user’s manual The buyer and the sales representative goes through the user’s manual The customer learns how to use the user’s manual 3.1 Satisfied Checking the user’s manual Evaluating the user’s manual 3.2 Not Satisfied Asking further questions from the salesperson Verifying the contents of the user’s manual 3.3 Still Not Satisfied 4 Receiving the Product Accepting the product Receiving the product( END) Fig. 2.8. Customer Taking the Delivery Flow Chart References Browning, T. R., 2014. Managing complex project process models with a process architecture framework. International Journal of Project Management, 32(2), 229-241. Moon, S., Zekavat, P. R., & Bernold, L. E., 2016. Dynamic Quality Control of Process Resource to Improve Concrete Supply Chain. Journal of Construction Engineering and Management, p 04016130. Pavitt, C., 2014. An interactive input–process–output model of social influence in decision- making groups. Small Group Research, 45(6), 704-730. Read More