Critical thinking exercise 6-3 - Essay Example

Critical Thinking Exercise 6-3 Critical Thinking Exercise 6-3 What important items are missing from Mike’s plans? Some of the important items missing from Mike’s plan are: Concept – Since there are a lot of auto repair shops in the market. Mike must be specific as to what his “unique selling point” will be, which means, what is it that will differentiate his shop from the other existing shops. Management team – Although he already has a list of personnel, it is essential that he has people in mind to compose his management team because these are the people who will give direction to the company and will be his support.

Start-up capital requirements and funding – The exact amount of capital to start the business and its sources should be identified. Services to be offered – Mike should specify what services he will offer in his shop and how much he will charge per service. Will there be specific cars only that he will work on? How many service bays will he have? Inventory – Mike should determine the inventory of car parts that he will keep, if any. He should also have a list of equipment and tools that he will need and where he plans to purchase these items.

He must decide how he intends to purchase these items, whether it be cash or on credit. Target market – Mike should decide where to locate his shop, whether to rent or buy the place. Most important is for him to determine who is his target market, is it the middle or upper income class or will he work directly with a towing service? Marketing strategy – Mike should come up with a marketing strategy taking into account the 4Ps namely product, price, place and promotion. This marketing strategy should also consider his strengths, weaknesses and the opportunities and threats in the environment.

Salaries – Having a list of personnel is not enough. Mike should decide too on how he will hire the people he needs and the amount of salary he is willing to pay them. Financial plan – Mike should make a financial projection to look into the financial feasibility of the business. Projections of revenues and expenses are a must. He may also come up with a sensitivity analysis to factor in possible business scenarios which he might face. 2. What steps can Mike take to insure success if he starts his own business?

To ensure the success of his business, Mike should have a clear vision and purpose for his auto repair shop. He should know where he wants his business to go so that he is able to identify the opportunities that will lead him to his desired direction. He must also stay focused, that is, he should concentrate on his chosen market niche or target market. This way he can better identify and service their needs. Choosing the right people is important especially because the business is service-oriented.

Mike must make sure that the people he hires have the necessary skills to provide quality service to his customers. Fostering good relationships with the employees, suppliers and customers is imperative. Furthermore, Mike must be aware of the industry, his competitors and the latest developments, whether it be new regulations, products or technology.