1

Type of Business Organization

The business proponents had decided to form a general partnership. The

partnership is composed of two or more persons that can contribute money and

labor skills. As to liability, a general partner is accountable to the extent of her

personal properties. Partners should comply with the agreement of the

partnership and they must also perform their assigned position depending on the

agreement or arrangement based on their capital contributions. The Motech

purpose was to operate an automotive maintenance and repair service in their

customers.

''Our Quality Comes In First Before Our Name Goes Out.'' '' The reason for

being in this business is to spot trends that mean opportunity first is vehicles are

on the road each year, increasingly complex automotive technology making do-it-

yourself repairs more difficult. They keeping their cars live longer, and increasing

the market for ongoing relationships with trusted service providers. Fewer car

care options for drivers, resulting in new opportunities for Motech.

Our services offered are Preventing Maintenance Service, Tires and

Batteries, Wheel Balancing, Change oil and Tune Up, and Car wash. The

benefits you may experience in every services are 100% satisfaction, we want

our customers received top value from our services. Secondly, we offer quick

auto repair services at the best price possible high efficient repair shop gives us

edge in providing quality workmanship with less waiting.

 2

The customers can reach Motech by visiting their facebook page at

Motech Las Pinas Branch. We tend to develop new service because it can

reduce our production and marketing cost.

Project objectives

To analyze the marketing and financial risk feasibility in automotive repair

service
To analyze the SWOT and competitors of our business.

Benefits of Project

To know the SWOT and competitors of our business.

To know the process, plan and structure when doing business in real

situation.
To know the methods for making high sale in automotive repair.
Able to apply the plan for getting high profit/return on investment.
Able to plan and manage the business to success
The plan is most feasible and high success in real business that able to

guide in the future.

Time Frame

August September October

 3

Operational Methods 1 2 3 4 1 2 3 4 1 2 3 4

Establishing the group and

selecting company

Search the information of

auto repair Industry

Preparing the Chapter

1Introduction of the project

and submission

To prepare the Chapter 2

Industry profile and

submission

To analyze the marketing

and prepare Chapter 3 for

submission

To study about financial

analysis and prepare for

submission

To analyze the risk

management

To summary the project

Recheck the report

Prepare for presentation

Analyzing the environment

 4

Demographics

Household Customer- account for the largest share of auto repair services,

household in Alabang Zapote Road, Pamplona Uno Las Pinas City that owns one

or more cars aged 25- 35, 35-44 years old and 45 above

Business Customers- Taxi, rental car and trucks- many of whom cannot afford in-

house repair and maintenance shops

Economic Conditions

The Philippines economy grew an annual 7.0 percent in the second

quarter of 2016, accelerating from a downwardly revised 6.8 percent expansion

in the previous three months and beating market consensus of a 6.7 percent

growth. It was the fastest expansion since the June quarter 2013, as a faster

increase in household consumption, government spending and investment offset

a slowdown in exports. On a quarter-on-quarter seasonally adjusted basis, the

GDP advanced 1.8 percent in the June quarter of 2016, accelerating from 1.1

percent expansion in the March quarter and in line with estimates. For the first six

months of 2016, the economy expanded 6.9 percent, faster than a 5.5 percent

growth in the same period a year earlier. GDP Annual Growth Rate in Philippines

averaged 3.61 percent from 1982 until 2016, reaching an all time high of 12.40

percent in the fourth quarter of 1988 and a record low of -11.10 percent in the

first quarter of 1985. GDP Annual Growth Rate in Philippines is reported by the

Philippine National Statistical Coordination Board. Services are the biggest

 5

sector of the Filipino economy and account for 57 percent of total GDP. Within

services the most important segments are: trade, repair of motor vehicles and

household goods (17 percent of total GDP); real estate, renting and business

activities (11 percent); transport, storage and communication (8 percent);

financial services (7 percent) and public administration, defense and social

security (4 percent).

Competition

There are existing competitors around our trade area namely; Goodyear ,

Smarthands Power Tools Repair Services, Alavaren Electrical and Technical

Services, Rapide.

Social and cultural forces

Lifestyle and preferences of people, that impact their choice of types of

automotive repair service. Social norms that impact the decision to own and use

automobiles versus other means of transport

Political and Legal Forces

 6

The political stability of major markets is an opportunity for Motech is to

grow with minimal political tension. Also, free trade agreements involving

Philippines where Motech Automotive operates present opportunities for

improved market penetration. In addition, governmental support for ecofriendly

products is an opportunity for the company to improve its products to satisfy or

exceed environmental expectations

Technology

Technology relating to automobile designs, manufacture

Technology of automobile manufacture
Technological developments that may increase or decrease use of

automobiles

Analysis areas

Relevant social, political, economic and technological trends;

The aftermarket world is going online, and the market place is changing.

Parts are being sold online, service is being sold online

Theres a trend toward large franchise auto repair businesses, which have

smaller shops rolling up in to them. Thats a good opportunity for profitable

businesses on the service/seller-side.

 7

We evaluate these trends as our problems and also opportunities to do

highly competitive advantage in other repair services.

COMPETITORS
Mission

Attracting, developing,
motivating and retaining
the best team of
associates
Earning and building long
lasting relationships with
customers, consumers
and business partners
and exceeding their
Goodyear
expectations
Driving an efficient,
aligned and effective
organization
Creating a sustainable
business model that
consistently delivers a
strong return on
investment

Goals and objectives

Delivering the highest
quality in all that we do
Acting with honesty,
integrity and respect
Encouraging wellness and
 8

safety, both on the job and

away from work
Caring for our
environment and
communities
Supporting a team-based
culture of continuous
learning
Discussing problems
openly and solving them
as a team

Mission
Smart Hands Our main purpose is to
provide high quality auto repairs
and superior customer service.
Gaining trust and exceeding
customers expectations is at the
heart of our organization, as we
Power give all customers an
exceptional experience while
having their vehicles serviced.
Tools
We continue to strive to be a
leading example in the auto
Repair Services repair industry and at the same
time support our local
community.

Goals and Objectives

To ensure survival and
growth of LR Automotive Service
and control the operation.
 9

Mission

Alavaren Electrical and

Technical Services exists to help
its customers care for and
extend the life of their
automobile investments.
Goals and Objectives
Our goals are to supply
professional services to all
electronic problems in
the vehicle diagnostics field

Alavaren Electrical and Technical Services

Mission
Rapid Auto Service
Experts has been through many
changes since our
beginning. One aspect that has
not changed is our Beliefs and
Values.

Goals and Objectives

Rapids drive to success lies in

its belief that total customer
satisfaction is important in
achieving business growth that's
why Rapid is the most
successful auto service center
Rapide chain in the Philippines today.
These Beliefs and Values are the
principles that guide our
relationships with our customers,
our people and our partners.
 10

Market Position
 11

INTENDED MARKET ENVIRONMENT

Main factors affecting the industry

Economic

For area auto repair shops, the recession has proved to be a difficult road

to travel. On one hand, some motorists are holding on to their vehicles for longer

than ever, a advantage to the auto repair industry. Motorists struggling to make

ends meet are doing only whats absolutely necessary to keep those vehicles on

the road and taking risks they shouldnt take.

A major factor that affects the external price elasticity comes from the oil

dependency. High petrol prices does not always bring a fall in demand for

vehicles because now more cars are more fuel efficient than an older offering the

buyer the chance to save money. New cars are coming with more fuel efficiently

than older; it mainly offers buyers to save money.

Over the years prices of automobiles have increased due to the rise of the

inflation. In terms of infrastructural developments the automobile industry is one

of most demanding. One of the major external factors that affect the price

elasticity comes from the oil dependency.

Some other factors that cause shifts in supply & price elasticity;

Government taxes on manufacturers.

 12

Prices of external resources (Ex: price of Steel will increase the price of

vehicle)
Buying capacity of people

Political

Governmental support for eco friendly products is an opportunity for the

company to improve its products to satisfy or exceed environmental

expectation.
Changes in trade restriction and tariffs

Technological

One of a major requirement of the customer is safety. Seat belts, air bags

which protect passengers at a collision, (Anti-lock Braking) brakes to stop the

vehicle in short distance even in wet road surfaces. By investing for Research

and development and innovating new technologies can gain patented and boost

sales. Technological development is support the driver to control the vehicle

more comfortable and easier. Ex: Auto gear, auto parking, navigation system

Legal

The firm should comply with all laws and regulation with its operations,

such as gas emission laws, safety and standard issues, vehicles

regulations, compatibility spares manufactures.

 13

Social/cultural

The lifestyle and preferences of people that impact their choice of types of

automotive services.
Social norms that impact the decision to own and use automobiles versus

other means of transport

Demographic

Customers from Pilar Village, Philamlife Village, Cittadella Executive

Village, Tuazon Subdivision , Reyville Subdivision, Pamplona Park Subdivision

which the number of target market is 47, 722 of client will be a local, middle to

upper middle income earning male and females between the ages of 25 and 75,

but we do entertain also PUJ and PUV,s Walk-in customers because our location

was in along Highway.

PORTERS FIVE FORCES

Threat of New Entrants

Non Automobile players: OLX

 14

Result:

Threat of

new entrants

is HIGH, hence

Industry

attractiveness is LOW

Threat of Substitutes

Substitutes for this service already existed in the market, this are Piyeza Auto

Parts , The Gizmo Shop, Mo tolite, Yamaha 3s Shop, Rapide

Result: Threat of substitutes is HIGH, hence Industry attractiveness is LOW

Power of Suppliers

Autobacs ordered from Franchisor, Moto lite/Mega Force,

Result: Bargaining power of suppliers is MEDIUM, hence Industry attractiveness

is MODERATE.

Bargaining Power of Suppliers

 15

Moto lite, Yamaha 3s Shop, Mega force

Result: Bargaining power of buyers is HIGH, hence Industry attractiveness is

LOW.

Industry rivalry:

Automotive industry is growing very rapidly with all major players

having their service stations and sales. This is a major threat to existing Auto

Repair Service. The industry rivalry is very intense from competitors who are

company owned like; Goodyear, Smarthands Power Tools Repair Services,

Alavaren Electrical and Technical Services, Rapide

Result: Threat from rivals is HIGH, hence Industry attractiveness is LOW.

Proposed Location
 16

The Automotive repair Service business is very much dependent on the

location of its setup. Automotive Repair located on main roads or prime locations

usually depend on walk-in customers while those that are based on off-road

locations have their business coming in from contacts, referrals and companies.

The address of our company was at Alabang Zapote Road #57 Pamplona Uno,

Las Pinas City.

Trading Area-Las Pias

Approximate no. of
Primary Area Distance
customers
Pamplona Uno 1-3 mins/0-250 meters 5000
Pamplona Dos 6 mins/1.8 kilometers 3000
Pamplona Tres 8 mins/2.3 kilometers 5000
Zapote 5 mins/1.2 kilometer 2000
Secondary Area Total: 15,000 customers
Talon Uno 10 mins/2.6 kilometers 1000
Pulang Lupa Uno 11 mins/2.9 kilometers 1000
Ilaya 12 mins/ 3.1 kilometers 1000
Tertiary Area Total: 3000 customers
Daniel Fajardo 13mins/3.5 kms 500
Talon Dos 14 mins/4.2 kms 500
Manuyo Uno 15 mins/5.8 kms 300
Pulang Lupa Dos 16 mins/4.5 kms 300
Manuyo Dos 17 mins/5.3 kms 300
Elias Aldana 17 mins/10.8 kms 300
BF International Village 19 mins/6.0 kms 300
Talon Tres 19 mins/4.5 kms 300
Amanza Uno 28 mins/5.7 kms 150
Pilar 30 mins/6.4 kms 100
Almanza Dos 41 mins/1.2 kms 50
Total: 3100 customers
 17

TOTAL SUM OF
18,400
CUSTOMERS

Existing Competitors

This industry for Motech Automotives is high quality repair and licensed

service. This includes Goodyear, Smarthands Power Tools Repair Services,

Alavaren Electrical and Technical Services, Rapide. Within Motech immediate

service vicinity, there are Goodyear, Smarthands Power Tools Repair Services.

Each of these direct competitors has a service facility. These competitors

dominate the market place, have the largest market share, and have advantages

such as specially trained personnel, access to lower priced parts and tools, and

deep pockets. For Motech this includes Automotive Repair services. Motech

Automotives will seek to compete initially in the low cost strategy (A company

offers a relatively low price as a pricing strategy, seeking to stimulate demand

and gain market share). At the same time, it will seek to provide a higher level of

customer satisfaction by having more rigorous quality control and seeking ways

to enhance the entire service experience (not just repairing a person's car). In

this way it will lock in a loyal customer base who value the client-service provider

relationship.

POSITIONING
 18

A. Category

Automotive Repair Service- repair shop where automobiles are repaired by auto

mechanics and electricians.

B. Class

High-end- Manned by highly-trained, technically competent and very motivated

technicians, MOTECH Automotive offers customers only the best, high quality

and top brand automotive products such as oil, lubricant and auto parts. With a

growing rate in car ownership in the country, its depth of supplier connection and

impressive staff training package, MOTECH Automotive revs up to pole position

in the car care business.

Low-end- Motech Automotive is an "after-warranty" auto repair shop that offers

professional services at affordable prices

C. Features and benefits

What's new, different, better, etc.?

Motech discount card was now available, be a Motech member you can

have 20% discount on service, 15%discount on Lubes and tires, and have a free

maintenance check up.

Who will buy this product?

 19

Customers around the residential area, our Primary Trading Area in

Pamplona Uno which Motech Laspinas located, and the Secondary Trading Area

which is Pamplona Dos, and lastly Tertiary Trading Area in Pamplona Tres.

Position

I. Customers will know their needs of our service because my business is the

only one who offers low prices and good quality that satisfy their needs. So we

will create customer loyalty by offering them a Motech membership card so that if

they earned more points they will have big amount of discounts in every service

they want to avail.

 20

II. The service meets the needs of fast, efficient and accurate service, High

quality products at a competitive price, Friendly, helpful service staff to provide

information, Prompt responses to their inquiries, whether online, by phone or in

person, Sufficient stock to meet their needs without long waits, A trained staff that

can handle their questions without referring them on, A clean facility or easy to

navigate website.

A. Loyal Customer - 20% discount on service, 15%discount on Lubes and tires,

and have a free maintenance check up.

B. Discount Customer 50% discount on clean, adjust brake and wheel

alignment.

C. Need-Based Customers Safety Driving

III. These customers will benefit from our service because of quality experience

that Motech offers, they can go to our customer lounge during their servicing

minutes, hours which they can experience entertainment by playing videoke so

that will not feel any boredom.

List the key benefits of your service;

A. Our suppliers parts and equipments came from a well known company also

B. Employees were knowledgeable, highly well trainees to perform good quality

of service
 21

MARKET ANALYSIS

Our Target Market

There is a wide range of both corporate and individual clients who

would need the services of auto repair and maintenance garages and they

are the household, business and quality matter customers ages to 25-75

whose income reaches to 1,000 and above.

Female Car Target

Male Car Owners
Residential Area Owners Market
Brgy. Pamplona Uno
3, 560 1, 440 5000
Brgy. Pamplona Dos
1, 550 1, 450 3000

Brgy. Pamplona
2, 540 2, 460 5000
Tres

Zapote 1, 500 500 2000

Total: 15,000

What is the growth rate of the market?

In total- The total population of Pamplona Las Pinas City was 76, 922

By segments- Male car owners working, Female car owners working, Male

customers for family use, Female customer for family use, Customer Walk-ins

Growth rate in the past is 1.54%

Projected growth rate 2.93%

 22

Customers and potential customers

Age- 25-75 years old

Sex- Male and Female

Income- 1000 above

Occupation- Households, Business Industry etc..

Education- Highschool graduate, College degree

Nationality- Filipino

What benefits are the customers and potential customers seeking?

To be successful in forging and maintaining long term relationships, it

requires having a clear understanding of customers motivations and perceived

benefits of staying in a relationship (Barnes 1995). They are expecting a quality

and good service, to fix their cars instantly.

What is the size of key market segments?

By customer type? Car owners, Car for business purposes, family purposes,

travelling purpose

Distribution channel

JOB TIME/COST REPAIR AND

CARS ORDER ESTIMATE REPLACEMEN
T

DELIVERY TO TEST TRIAL

CUSTOMER
 23

The above diagram illustrates the basic process flow for mechanical repairs. The

customer comes in with the mechanical problem wherein a job card is prepared

based on the problems faced by the customer. The foreman then checks the car

to check for any additional problems. The customer is then provided with time

and cost estimates depending on the whether the parts need to be repaired or

replaced. On agreement of the customer the job is allocated by the foreman. It is

necessary to test run the car before it is finally delivered to the client.

COMPETITIVE ADVANTAGE

Motechs value proposition is the after warranty business where

they offer service and maintenance of all types of cars. After the warranty

is over, which is usually after the first three years or the first hundred

thousand kilometers, those cars [and owners] become their market.

Normally Motech Automotive Service half the price, they do the services a

lot quicker, and clients get to see the cars as they are being fixed.

Our competitive advantage lies in the power of our team; our

workforce. We have a team of certified and highly trained and

experience automobile maintenance and repair engineers and

technicians, a team with excellent qualifications and experience in

various niche areas in the automobile maintenance and repair service

industry. Our services will be guided by best practices in the industry.

 24

Motech Auto Service Features

Seat Belts- They also reduce the risk that you will collide with the

steering wheel, dashboard, or windshield.

Air Bags- provide life-saving benefits for the vast majority of

people, there are situations in which air bag deployment can have adverse

effects, such as when occupants are unbelted.

Antilock Brake System- An antilock brake system (ABS) prevents

a vehicles wheels from locking during panic braking, which allows the

driver to maintain greater steering control a key factor in avoiding a

collision.
Traction Control- Traction control systems improve vehicle stability

by controlling the amount the drive wheels can slip when you apply excess

power. The system automatically adjusts the engine power output and, in

some systems, applies braking force to selected wheels during

acceleration.
Chassis control Assists control of everyday car functions like

braking, steering, and suspension to improve safety and comfort while

driving.

Is the market cyclical or seasonal?

The two divisions of auto sales new and used cars both tend to

experience the same seasonal ups and downs in sales volume. Auto sales

traditionally drop to their lowest levels of the year from December through

February. The holiday season, when consumers make large expenditures of

disposable income elsewhere, and cold weather contribute to this traditionally

slow time of year for auto sales. This seasonal trend continues to hold true
 25

despite the fact that auto dealers often offer some of the best deals of the year

during the winter in an effort to move inventory off their lots.

SKILLS OF THE FIRM

Marketing Skill- One factor that employees may have is a Public

relation anrtd Marketing skills it helps to carryout the business

development activities target their potential customers and also

maintain the companys existing client based.

Production Skills - Knowledge of raw materials, production

processes, quality control, costs, and other techniques for

maximizing the effective manufacture and distribution of goods.

Management Skills - They supervise technicians performance and

arrange training programs to keep the teams skills up to date.

Managers prepare schedules and plan staff duty rotations to ensure

that servicing and repairs are completed as quickly as possible.

They also select equipment, such as diagnostic tools, that will

improve quality and productivity in the service department.

ORGANIZATION CHART

An organizational chart is a representation used to identify the

positions of the employees inside the company. And it is being arranged from

the position of the top management to lower management.

 26

Evaluating Capabilities v. Competitive Strengths

Strategic Capabilities

-5 -4 -3 -2 -1 0 +1 +2 +3 +4 +
Capability component
5
 27

Culture
1. Values and attitudes /
2. Skills and knowledge /
3. Management of /
change
/
4. Risk-taking
5. Management by /
results
6. Organizational learning /

Structure /
1. Organizational form /
2. Job definition
3. Demands and /
incentives
4. Information power /
structure /
5. Informal power /
6. Self-renewal

Process and systems /

1. Informal decision
making /
2. Decision-making
system /
3. Environmental
surveillance /
4. Problem/opportunity
anticipation /
5. Problem prioritization /
/
6. Information systems
/
7. Planning system
/
8. Implementation system
9. Control system /
10. Management
technology /
11. Computer application
/
Human resource capacity /
1. Top management /
2. Middle management /
3. Supervising staff
4. Staff /
/
Resources
/
1. Financial
/
2. Physical /
 28

3. Technologies /
4. Products
5. Credibility with clients
6. Information

In HUMAN RESOURCES;
Recruiting includes posting job vacancies, screening applicants through

preliminary interviews, scheduling in-person interviews, providing

guidance to managers on hiring decisions and organizing the final stages

of the vetting process for new employees.

Support workplace safety training and maintain federally mandated logs

for workplace injury and fatality reporting. In addition, HR safety and risk

specialists often work closely with HR benefits specialists to manage the

company's workers compensation issues.

Human resource management are developing and administering methods

that enable managers to decide which applicants to select and which to

reject for the given jobs.

Providing training for new or inexperienced employees, organisations

often provide training programmes for experienced employees whose jobs

are undergoing change.

Human resource is responsible for developing and administering

performance appraisal systems, although the actual appraisal of employee

performance is the responsibility of supervisors and managers. Besides

 29

providing a basis for pay, promotion, and disciplinary action, performance

appraisal information is essential for employee development since

knowledge of results (feedback) is necessary to motivate and guide

performance improvements.

In MARKETING;

Focuses on Motechs costumer

Helps to build customer loyalty by maintaining communications through

them.
Marketing works on new promotions, affiliate program, customer retention

techniques, improvements in conservation of their message and actions.

In PRODUCTION;

They are purchasing raw materials semi finished good.

In PURCHASING;

They are the one who contacts and orders engine parts. Collaborating

with our suppliers.

COMPETITORS

Goodyear

Mission

Attracting, developing, motivating and retaining the best team of

associates
 30

Earning and building long lasting relationships with customers, consumers

and business partners and exceeding their expectations

Driving an efficient, aligned and effective organization

Creating a sustainable business model that consistently delivers a strong

return on investment

Vision

Become a market-focused tire company providing superior products and

services to end-users and to our channel partners, leading to superior returns for

our shareholders

Smart Hands Power Tools Repair Services

Mission

Our main purpose is to provide high quality auto repairs and superior

customer service. Gaining trust and exceeding customers expectations is at the

heart of our organization, as we give all customers an exceptional experience

while having their vehicles serviced. We continue to strive to be a leading

example in the auto repair industry and at the same time support our local

community.

Vision
 31

Our vision is to continue to grow our customer base which in turn will

expand our business. We want to become the most trusted, sought-after

automotive and fleet service center in the Southeast. We also want our

customers and employees to have such confidence in and respect for how we

manage our business that we will create only long term, win/win relationships.

Alavaren Electrical and Technical Services

Mission

Alavaren Electrical and Technical Services exists to help its customers

care for and extend the life of their automobile investments.

Vision

Will recognized leader in protecting consumers in the automotive repair

marketplace and promoting continuous improvement in the motor vehicle

emissions reduction program.

Rapide

Mission

Rapid Auto Service Experts has been through many changes since our

beginning. One aspect that has not changed is our Beliefs and Values.

Vision

We believe that our strongest competitive advantage is our proven ability

to deliver our core values to the ultimate consumer better than our competitors.

Positioning map
 32

Competitive Matrix

Rate 1-5 rate 1 if the Factor was lowest and 5 if the factor is highest

Critical Success
MOTECH GOODYEAR SPTRS AETS RAPIDE
Factors
Global expansion
4 5 4 4 4
Financial position
3 4 4 4 3
Growth
5 4 4 3 4
Market share 3 4 4 3 3
 33
STRENGTH WEAKNESS

- monetary assistance - small business units

provided
Management 4 4 4 4 4
experience - productivity
- high profitability and
revenue - cost structure

- future debt rating

- experienced business units

- existing distribution and

sales networks

OPPURTUNITIES THREAT

- global markets - price changes

- venture capital - rising cost of raw materials

- growth rates and profitability - financial capacity

- new acquisitions

- income level is at a constant

increase

SWOT ANALYSIS OF COMPETITORS

SWOTS OF GOODYEAR

SWOTS OF SMARTHANDS POWER TOOLS

STRENGTH WEAKNESS

- Best market share leadership - Intense competition in the tire

Strong and powerful brand industry makes market share
equity constant

- Different and unique products - Studies reveal it company

produces high amount of air
- Popularity is termed as one of pollution
the best strength of the which
results in betterment for the
 34

company

OPPURTUNITIES THREAT

- One of the major threat is the

- Emerging markets is one of the economic slowdown
best opportunity for this
company
- Another threat is the lower cost
- Various models there are the competitors
which caters the lower segment

- Fuel efficiency is now a days - Price war is Also Consider as

termed as one of the best an Important Threat for this
opportunity the which cans company
results in the best productivity for
the company
- Oil prices are contributing a lot
Towards the loss of the Honda
company

SWOTS OF ALAVAREN ELECTRICAL AND TECHNICAL

 35

STRENGTH WEAKNESS

- Strong financial performance - Product recalls

- Strategic partnerships

- Innovative culture

- Growing brand reputation

OPPURTUNITIES THREATS

- Growing local demand for - Global competition in automotive

environment friendly vehicles industry

- Growth through acquisitions - Rising raw material prices

SWOTS OF RAPIDE

STRENGTH WEAKNESS

- Factors that are within an

- Positive tangible and intangible organizations that detract from
attribute, internal to an its ability to attain the desired a
organization. goal.

- They are within an organization - Which areas might organization

control. improve.
 36

OPPURTUNITIES THREATS
- External factor, beyond an
organizational control, which could
- External attractive factor that place an organization mission or
represent the reason for and operation at risk.
organization to exist and
development. - The organization may benefits by
having a contingency plans to
- What opportunities in the address them if they should occur.
environment, which will propel the
organization? - Classify them by their serious and
probability of occurrence

Goal Setting

STANDARD- TARGET-
AREA MEASURE
GOAL
Finance Profitability 10% profit margin
Overhead expenses Less than 5% of sales
Within range of 6% - 9% of
Advertising expense
sales
Sales Sales Revenue Miminum of 40-60,000
New Customer 15 per month
Loss of customers No more than 5 per month
New promos Every month
Market share 15% within a year
Employee Relations Absenteeism No more than 3% a week
Employee turnover No more than 8% a year
No disputes involving senior
management (all disputes
Industrial relations
to be settled in the
originating area)

Customer Relation
Degree of satisfaction No complaints
Goodwill

New Product Development YES NO

 37

1. Has the product been in development for a year? /

2. Does your company currently make a similar product? /

3. Does your company currently sell to a related customer /

market?

4. Is the R&D at least one third of the product budget? /

5. Will the product be test marketed for at least 6

months? /

6. Will the advertising budget be at least 5% of

anticipated sales? /

7. Will a recognised brand name be on the product? /

8. Does the person in charge have a private secretary? /

9. Would the company take a loss for the first year? /

10. Does the company need the product more than it /

wants it?

11. Have 3 samples of advertising copy been developed? /

12. Is the product really new, as opposed to improved? /

13. Can the decision to buy it be made by only one /

person?

14. Is the product made in fewer than 5 versions? /

15. Does the development team have a working code /

name?

16. Will the product need service and repair? /

17. Will the CEO see the product leader without an /

appointment?

18. Did the project leader make a go of the last two /

projects?

19. Will the product be on the market for more than X /

 38

years?

20. Would the project leader quit and take the item with /
him if the company refused to back it?

SWOT ANALYSIS

STRENGTHS WEAKNESSES

Parts and service Unfamiliar brand name

represents stable source
of income

Low price in high high

quality products and
services

MAINTAINING THESE STRENGTHS OVERCOMING THESE WEAKNESSES

Improving the skills of management Made advertisement and promotion

and departments to inform the target market
OPPORTUNITIES THREATHS
Growing competition in the
Extend service hours service segment
Doing better research and Aging population that reduces
development car usage
Economic Condition

TAKING ADVANTAGE OF THESE OVERCOMING THESE THREATS

OPPORTUNITIES

Implement these opportunities to Develop and Implement new

improve and reach our objectives strategies to sustain the growth
sales
Improving the research
development

Feasibility and Planning for a New Business

 39

1. Form of Ownership

The type of business is a partnership. It is to be registered with the

Securities and Exchange Commission (SEC) for the contract called articles of co-

partnership. By the contract of partnership, two or more persons bind themselves

to contribute money, property and industry with the intension of dividing the

profits among themselves. Motech as partnership will be registered with the

different government agencies as Securities and Exchange Commission (SEC),

Department of Trade and Industry (DTI), Business Permit and Licensing Office

of Paranaque (BPLO), Bureau of Internal Revenue (BIR) and Social Security

System (SSS). The project will have its full blast after it has complied with all the

necessary documents and technical requirements needed to operate and engage

in this type of business.

2. Opportunities and ideas

People are always looking for a good car maintenance and auto repair

shop to keep their car in top running shape, which will ultimately save them

money in the long run. As long as people use their cars and trucks regularly,

there will always be reasons for them to visit an auto workshop, if indeed they

want these vehicles to continue to play the roads. This is because you can never

rule out the wear and tear scenario, when a machine is in use. People visit auto

garages for different reasons; it could be for routine servicing, major repair works,
 40

or for refurbishing their cars. For whatever reasons; auto repair garage will

always translate to money for the owner of the repair garage.

BUSINESS GROWTH and PERFORMANCE

Launch, learn, and adapt faster than ever but not rashly. You should

prioritize agility, but find ways to take risks without implementation that can

jeopardize both customer satisfaction and, more importantly, safety. In short, a

company must be true to its DNA while evolving as rapidly as possible.

Specifically, you should determine whether new intelligent and connected

vehicle features can be developed in-house. Addition, engineer better vehicle

performance by smartly investing in new technologies, such as lightweight

materials, advanced transmission and engine solutions, and alternative power

trains, to satisfy emissions rules. Any strategy that you implement going forward

should be predicated on capturing value. The uncertainties and transformation

that will punctuate the auto industry in the next decade are too potentially

damaging to confront without a clear idea of real returns, if your strategy goes as

planned. The most likely avenues for value improvements include forecasting

growth markets adeptly and seizing a greater share in those regions; investing in

new technologies and features that attract customers and word of mouth (rather

than commoditized components, such as yet another dashboard redesign);

developing a right sized and efficient factory footprint; cementing healthy

collaborative relationships with suppliers; and creating a strong distribution base

with a premium on customer service.

 41

CUSTOMER SERVICE

Customers need to see great service as the rule, not the exception to the

rule. More importantly, though, employees must feel that customer experience

improvement has become part of the fabric of their workplace environment. The

focus on providing a better experience will be passed down to new employees

and ultimately help establish a culture of accountability. Ensure employees have

opportunities to brush up on their customer service skills, taking inspiration from

other business inside or outside your industry where possible. Your approach

doesnt have to be ground-breaking to be effective, just sincere.

STAFF AND DEVELOPMENT

Attendance and punctuality are important qualities that the company

expects from its employees. They are the factors that determine an employees

efficiency and reliability. His presence is necessary for the smooth flow of work at

the start of the business hours.

Punctuality
 42

It is the policy of the company to discourage tardiness as this affects the

morale of the punctual employees as well as the operations of the business.

Tardiness shall mean coming to work past the required starting time. It also

means failure to go back in the workplace immediately after break periods.

Heavy traffic, oversleeping , personal reasons, etc. do not constitute justification

for late arrivals. Only three (3) tardiness are allowed within one month. In excess

of this, an employee is subject to disciplinary action. Arrival in the workplace two

hours after scheduled time will be sufficient ground to consider an employee as

absent for half day. Tardiness shall be chargeable directly against basic pay.

Personnel Movement and Performance Evaluation

It is managements prerogative to assign, transfer, reclassify, promote or

demote its employees accordingly based on merit and performance. Thus,

employees are continuously evaluated as to their performance, work attitude,

productivity, honesty and diligence and may be served as bases for

managements decisions on personnel movement. Performance evaluation shall

be done to every employee on his 3rd, 4th, and 5th month. For regular

employees, performance evaluation shall be done twice a year every May and

November of a calendar year.

RELATIONSHIPS WITH SUPPLIERS

Talk to your suppliers regularly.

Pay your suppliers' accounts promptly.
Communicate with a supplier before the due date for payment, should you

foresee a delay in paying an account.

Build good relations with your current suppliers' representatives.
Be fair but firm with industry sales representatives they can easily take

up a lot of your time.

Avoid rush orders wherever possible they can cause significant stress in

your business and put a strain on the relationship with your suppliers.
Monitoring the financial position of your suppliers talk with industry

colleagues and competitors about the general financial stability of those

businesses that supply goods and services to you.

Address any issues of concern in relationships with your suppliers as they

arise.
Refer damaged or faulty goods to the supplier promptly, with supporting

documentation.
Be prepared to review and renegotiate the terms of trade with your

suppliers from time-to-time.

BUSINESS STRENGTHS
Knowledge seeker. Acquires business-relevant, in-depth information; uses

knowledge as a competitive advantage; anticipates information needs. Whether

entrepreneurs or any other professionals, we all should study non-stop.

Relationship builder. High social awareness; develops mutually beneficial

relationships; between customers and employees.

MARKETING MIX

MAINTENANCE SERVICE

It is mostly constitute running repairs / services like Gear oil / Engine Oil /

Break Oil change, Oil Filter change, spark plugs / point repair, lubricant

replenishment / replacement, tuning, break shoe repairs, minor suspension

repairs etc. These maintenance services are usually characterized by their very

little job turnaround time and are usually disposed of within a half a days work.

TIRES & BATTERIES

Wheel alignment is important to the health of your car. If you hit a massive

pothole, you might bump your suspension out of the carefully calculated locations

that the components have been set. All of the elements that make your car go

straight are called alignment. Some shops try to make it seem like rocket
science, but wheel alignment is a fairly straightforward affair. The inclusive term

wheel alignment involves three main measurements caster, camber, and toe.

CARTER is the tilting of the uppermost point of the steering axis either forward or

backward (when viewed from the side of the vehicle). Caster influences

directional control of the steering but does not affect the tire wear and is not

adjustable on this vehicle. Caster is affected by the vehicle height, therefore it is

important to keep the body at its designed height. Overloading the vehicle or a

weak or sagging rear spring will affect the caster.

CAMBER is the tilting of the wheels from the vertical when viewed from the front

of the vehicle. When the wheels tilt outward at the top, the camber is positive (+).

When the wheel tilts inward at the top, the camber is negative (-). The amount of

tilt is measured in degrees from the vertical. Camber settings influence the

directional control and the tire wear.

TOE is a measurement of how much the front and/or rear wheels are turned in or

out from a straight-ahead position. The purpose of toe is to ensure that the

wheels roll parallel. Toe also serves to offset the small deflections of the wheel

support system that occur when the vehicle is rolling forward.

WHEEL BALANCING
 Wheel balancing is a must anytime tires are mounted on wheels. The

wheel may also require rebalancing if the tire has been dismounted for repair. It

provides a smoother ride by minimizing tire bounce. This helps improve traction,

steering control and extends the life of the tires. But no matter how carefully

wheels and tires are balanced, they will eventually lose their balance. As the

tread wears, the distribution of weight around the circumference of a tire changes

altering the balance of the tire and wheel assembly. Eventually the tire may have

to be rebalanced because only 1/4 ounce of imbalance can produce a noticeable

vibration.

An out-of-balance tire and wheel will typically create a vibration or shake

that become progressively worse as the vehicles speed increases. The speed at

which the vibration first becomes apparent will vary depending on the size and

weight of the tires and wheels, the size and weight of the vehicle, the sensitivity

of the steering and suspension, and the amount of imbalance. The vibration or

shake usually starts in at 60 to 80 kph and increases in intensity as the speed

increases.

CHANGE OIL & TUNE UP

 One of the simplest, most effective and inexpensive ways to help protect

the life of your car, especially its engine, is to change the oil and the oil filter

regularly.

Oil is the lifeblood of your engine. It reduces friction, lessens wear, provides

lubrication, and forms a seal between the pistons, rings and cylinder walls while

helping to cool engine parts. Without the cleaning action of new oil, carbon and

varnish buildup would be toxic to the engine. And engine oil even dampens the

shock and noise of moving parts.

There are certain vehicle components that need periodical replacement;

Fuel filter dirty fuel filter may cause engine stalling and loss of engine power.

Air filter dirty air filter causes loss of engine power, increased fuel

consumption, air flow sensor failure, etc.

Engine coolant old engine coolant loses its anti-corrosive and other

characteristics and may cause water pump to fail.

Spark plugs simply spark plugs replacement can significantly improve the

engine performance.

Timing belt timing belt may cause serious engine damage, especially if its

diesel engine.
We also have promos offered;
Place

Motech Automotive located at Alabang-Zapote Road,, #59 Pamplona Uno,

Las Pinas City

Promotion

One of the easiest ways to have quick access will be using free website in

order to reach wider range of possible customers. This will be of great help for

them to know the concept behind Motech Automotive Service. It will also

provide good communication relationship in ways that, we will be giving

information and they will be giving comments and suggestions for service

improvements and other concerns.

Flyers can convey wide range of possible. The company will produce 200

flyers per day. These flyers will be distributed twice a week or eight (8) times in a

month. Flyers will be given in the first three (3) months of the business until it will

get its loyal customers.

The computation would be:

No. of Pcs. X Unit Price X No. of times per month

200 X 8 X 8 = Php.12,800

Motech will be giving gift certificates worth three hundred pesos (300.00)

on the first day of operation of our business. The recipients of these certificates

will be the first 100 customers of the company.

Amount x Quantity
300 x 100 = 300,000

Innovation and your Organization

Strongly Agree Neutral Disagree Strongly No

Agree 3 2 1 Disagree opinion
4 0 ?
1. We have a
good track record

of innovation by
comparison
with our
competitors and
industry
2. Our
management
style does not
impede the
introduction
and development
of new products
or processes
3. In this
organisation, the

forces which
favour the
preservation
of the status quo
are balanced by
enthusiasm
4. It is generally
accepted in the

organisation that
there is
outstanding
creative talent in
its ranks
5. There are
influential people

in
the organisation
who support new
ideas entirely on
their merits
6. The
management

control over
activities is not an
inhibiting factor
for progress
7. There are
efficient

mechanisms for
the flow of
information
necessary for
managers to
carry out their
jobs
8. The
organisation is

attempting
to stimulate
creative thinking
through its
training programs

9.

Entrepreneurship
is encouraged
10. There is a
positive attitude

and
no defeatism
where new ideas
are concerned
TOTAL

Differentiation

Distribution

Positioning inventory close to customers can greatly reduce delivery time.

Businesses strive to increase speed and responsiveness; to be able to say to

customers, "Yes, we have that, and yes, we'll ship it to you immediately." Part of

this responsiveness means having the inventory and processing orders quickly.

But what really drives warehouse development is being closephysicallyto

customers.

We use to call the Franchisor (Motech Main) to Advance shipping of the

products that we used to order. The supplier has 2 give rules, they require us to

pay the half of the amount that we used to order and pay the remaining balance

in 120 days.

The best new-age enterprises doing to differentiate

1. Offer service and maintenance of all types of cars

2. They do the services a lot quicker.

3. Team of certified and highly trained and experience automobile maintenance

and repair engineers and technicians.

4. team with excellent qualifications and experience in various niche areas in the

automobile maintenance and repair service industry.

5. Our services will be guided by best practices in the industry.

Strategic Opportunities

Extend service hours

Expand services and complementary products such as accessories

Specialization
Offers the best service at an affordable price for your car needs.

Manned by highly-trained, technically competent and very motivated

technicians, MOTECH Automotive offers customers only the best, high

quality and top brand automotive products such as oil, lubricant and auto

parts. With a growing rate in car ownership in the country, its depth of

supplier connection and impressive staff training package, MOTECH

Automotive revs up to pole position in the car care business.

Integration
Motech Automotive, a Philippine-grown automotive company,

signed a partnership deal with Japan-based Autobacs Seven Co. Ltd., a

major automotive brand in the ASEAN region. This new alliance was

signed following the recent developments in ASEAN integration.

Diversification
Offering new service in Motech which is the Wash Up Car a wash

service exclusively offered by Motech Las Pinas Branch.

Approaches to strategic planning

Preactive, or planning for the future

Motech vision is to the leading automotive services center in the

Philippines providing the best value service to motorist.

Strategies should you adapt

Service emphasis- Motech have highly trained, technically competent and

very motivated technicians to be able to perform quality offer service.

High profile CEO - have a committed leader

Employee focus/opportunity Motech aims that each employee will master

his craft and be guided by the company philosophy; Integrity, service,

compassion and love

Efficient innovation - Motech Efficient innovation to service was the Wash

up service, that is exclusively offered by Motech Alabang Branch.

Major functional departments

Accounting
An accounting department provides accounting services and financial

support to the Motech Automotives. The department records accounts payable,

inventory, payroll, fixed assets and all other financial elements. The department's

accountants review the records of each department to determine the company's

financial position and any changes required to run the organization cost

effectively.

Human Resource

Recruiting include costing job vacancies, screening applicants through

preliminary interviews, scheduling in a person interviews, providing guidance to

managers on hiring decision and organizing the final stage of the vetting process

for new employees.

Marketing

The marketing department has overall responsibility for growing revenue,

increasing market share and contributing to company growth and profitability.

Purchasing

They are the one who contacts and orders of engine parts. Collaborating

with our suppliers as business partners is essential, in order for us to develop

and produce attractive products and services for our customers.

Sales

Sales are generally focused on establishing sales forecasts, meeting

goals, hiring and developing staff, and overseeing all day-to-day operations.
Strategic Options

Motech Automotive should grow and consolidate, because of the after-

warranty service business is seen to be going strong. The after warranty service

comes to 3-5 years from the purchase of the cars this means that the car sold

last year will be Motechs future customer starting next year and this years cars

will be the potential business in 2017.

Strategic control

Set specific goals

To offer the best service at an affordable price for your car needs.

MOTECH Automotive offers customers only the best, high quality and top brand

automotive products such as oil, lubricant and auto parts. With a growing rate in

car ownership in the country, its depth of supplier connection and impressive staff

training package.

Measure performance

It is very vital in all business organization to know their manpower

requirements to operate systematically and effectively at all times. It will help also

to determine the capacity or capabilities of the employees to fit in the flow of

business as well as to have a clear duties and responsibilities. Having standard

qualifications in hiring and selecting, the employee will establish efficient

business operations.

Evaluate performance
 There mechanical engineering perform a job well auto repair and the

companys and the satisfaction of customer was reach

Take corrective action

Continue to have well knowledge and well trained employees and develop

work place in order to motivate the employees to do better repair.

Operating Control
Every department has an designated duties each of them must do their

responsibilities in working inside the firm.

Long term contracts

They have a long term contracts on their supplier which is Autobacs

Seven

Pricing strategies may be set to take into account and reflect pricing:

Relative to costs
The services price standard on our franchises of Motech Auto repair

Discounts

- 50% OFF of Clean and Adjust brake

- 200 pesos brake cleaner
- Buy 2 tires get
Alignment
Nitrogen
Mounting and Balancing
 - For every change oil package get;
50% Wheel Alignment
2 Free Wheel Balancing

Service related issues;

Fast Service
The car repair operation depends on the kind of defect of the car but we
assure to the customer that their repair cars is in good hands.

Efficient service
The employees performs or functioning in the best possible manner with
the least waste of time and effort. Having and using requisite knowledge, skill,
and industry; competent; capable: a reliable, efficient work.

Caring and prompt complaint handling

MOTECH Automotive speed up to pole position in the car care business

Barriers to Entry

Product differentiation - In automotive industries, established competitors have

gained customer loyalty and brand identification through their long-standing

advertising and customer service efforts. This creates a barrier to market entry of

motech by spending time and money to differentiate their products in the

marketplace and overcome these loyalties.

Government policy - Government policies can limit or prevent new competitors

from entering industries through licensing requirements, limits on access to raw

materials, pollution standards, Product testing regulations etc.

Threat of New Entrants

Non Automobile players: OLX

Result: Threat of new entrants is HIGH, hence Industry attractiveness is LOW

Threat of Substitutes

Substitutes for this service already existed in the market, this are Piyeza Auto

Parts , The Gizmo Shop, Motolite, Yamaha 3s Shop, Rapide

Result: Threat of substitutes is HIGH, hence Industry attractiveness is LOW

Power of Suppliers

Autobacs ordered from Franchisor, Motolite/Mega Force,

Result: Bargaining power of suppliers is MEDIUM, hence Industry attractiveness

is MODERATE.

Bargaining Power of Suppliers

Motolite, Yamaha 3s Shop

Result: Bargaining power of buyers is HIGH, hence Industry attractiveness is

LOW.

Industry rivalry:

Automotive industry is growing very rapidly with all major players

having their service stations and sales. This is a major threat to existing Auto

Repair Service. The industry rivalry is very intense from competitors who are
company owned like; Goodyear, Smarthands Power Tools Repair Services,

Alavaren Electrical and Technical Services, Rapide

Result: Threat from rivals is HIGH, hence Industry attractiveness is LOW.

Strategic Alliances

Partnership with the Technical Education and Skills Development Authority

(TESDA). This partnership allowed TESDA students to have their automotive
training at Ride Center.

The experience in providing on-the-job training eventually led to the

expansion of the automotive educational center into a full-pledged training venue
and car service hub.
With its pool of automotive technicians receiving top-of-the-line training,
MOTECH Automotive has successfully fused its training-center tradition with its
current service-center business format.

Risk Management

Physical Risks -Building risks are the most common type of physical risk. Fire or
explosions are the most common risk to a building. To manage this risk, and the
risk to employees, it's important to do the following:

Make sure all employees know the exact street address of the building to
give the 8888 operator in case of emergency.

Know the location of all exits.

Install fire alarms and smoke detectors.

 A sprinkler system will provide additional protection to the physical plant,
equipment, documents and, of course, personnel.

Inform all employees that in the event of emergency their personal safety
takes priority over everything else. Tell them to leave the building and
abandon all work-associated documents, equipment and or products.

Technology Risks - Power outage is perhaps the most common of technology

risks. Auxiliary gas-driven power generators are a good back-up system to
provide electrical energy for lighting and other functions until utility power is
restored. In manufacturing plants, several large auxiliary generators can keep a
factory producing until utility power is restored.

Computers may be kept up and running with high-performance back-up batteries.

Power surges may occur during a lighting storm, or randomly, so computer
systems should be furnished with surge-protection devices to avoid loss of
documents and destruction of equipment. Offline and online data back-up
systems should be used to protect critical documents.

Although telephone and telecommunications failure is relatively uncommon, risk

managers may consider providing emergency-use-only company cell phones to
personnel whose use of the phone is critical to their business.

The risk manager with the committee should formulate plans for emergency
situations such as:

Fire

Explosion

Hazardous materials accidents or the occurrence of other emergencies

Employees must know what to do, and where to exit the building or office space.
A plan for the safety inspection of the physical premises and equipment should
be developed and implemented regularly, with the training and education of
personnel, when necessary. A periodic, stringent review of all potential risks
should be conducted. Any problems should be immediately addressed. Insurance
coverage should also be periodically reviewed and upgraded or downgraded as
necessity requires.

Nature of competition

1. A. Market Share

Market Share

5.8
Goodyear 6.8
Smarthand Alavaren Rapide

3.2
3.4

Rapide Philippines retained the trust of Pamplona Las Pinas,

achieving 6.8% market share.Goodyear took the second spot with 5.8%
market share,Alavaren secured 3.4%. Smarthand landed at fourth position
with 3.2%.
 A. Financial Resource

The initial investment of Motech Automotive is P 7,000,000.00

which came from the partners contribution to establish this business.
There are no other sources of capital aside from our contribution.

B. Marketing Resource and Skills

Excellent communication skills are important to service managers. They

must be able to interpret customers descriptions of their vehicle problems and

translate those into clear instructions for service technicians. Service managers

require good diagnostic skills to identify service requirements and assess the

work of technicians. They also require excellent customer service skills to deal

with any customer concerns or complaints. They must have extensive practical

experience in vehicle servicing and repairs, together with experience in

supervising technicians and dealing with customers. Previous experience as a

service adviser or service receptionist is important. They are responsible for

maximizing the efficiency, revenue and productivity of the service department

and achieving the highest levels of customer satisfaction. Service managers are

members of the auto shop management team, collaborating with colleagues in

parts and accident repair departments to improve the overall performance and

profitability of the business.

C. Production resources and skills

Production team must know how to construct, assemble, or rebuild

machines, such as engines, turbines, and similar equipment used in such

industries as construction, extraction, textiles, and paper manufacturing.

Rapide - strengths are their monetary assistance provided, high profitability and

revenue, experienced business units and existing distribution and sales

networks.

Smarthands - Their strengths are high and powerful research and development,

innovation strong and powerful brand equity, different angelic product,

revolutionary engine technology and popularity.

Goodyear Their strengths are strong financial performance, strategic

partnerships, innovative culture and growing brand reputation.

Alavare known for their diesel engines and commercial vehicles and engines

Analyzing areas

A. Stores shopped sources considered. Goodyear, Smarthand, Alavare, Rapide

B. Degree of overt information seeking. 85%
C. Degree of brand awareness and brand 80%
loyalty.
D. Location of product category decision- Home
home or point of sale.
E. Location of brand decision-home or Home and point of sale
point of sale.
F. Sources of product information and Yellow pages, newspaper, internet,flyers
current awareness and knowledge levels.
G. Who makes the purchase decision? Car owners ages 25 higher whose income
reaches to 5,000 and above.
H. Who influences the decision maker? Family, marketers, media
I. Duration of the decision process. Infrequent
J. Buyers interest, personal involvement Buying service vs. commuting
or excitement regarding the purchase.
K. Risk or uncertainty of negative Medium
purchase outcome.
L. Functional v. psychological Buying service vs. laziness
considerations.
M. Time of consumption. Lack of knowledge about repairing car vs.
well knowledge service centers.

Criteria

A.) Age 25 to 75 years old

At this age, they are wiser. They want a good quality of service. They not
easily buy a service that not worth paying for.

B.) Family Life Cycle

Family oriented car owners with a high income.

Individual and households they dont hold responsibilities to their family.

C.) Geographic Location

Customers value more repair shops that are nearer and comfortable to
their own place.

D.) Heavy v. Light users

In terms of heavy usage on the automotive repair shops, we highly claim

that those in PUJs and PUVs are more in-render than private utilities or personal
vehicles.

E.) Nature of the buying process

Customers go in our branch and render repair service

Gap analysis
Strategic Current Future Gap Factors Action
Objective State State between affecting
s current the
state and objective
Future state

To Revenue Increase Increase Customer Set new

Increase by 5% revenue Revenue by defection promotion
revenue by annually by 15% 10%
10% annually annually
annually

To Expenses Decreas Dcrease Cost of the Research

decrease 5% e expenses by resources and
expense expense 5% developmen
by 5% s by 10% t

To Net profit Increase Increase net Customer Set new

increase by 5% net profit profit by 10% defection promotion,
net profit by 15% annually and cost of research
by 10% annually the and
annually resources developmen
t

Our Business
 Motech Automotive Service where automobiles are repaired by auto

mechanics and electricians. Our purpose is to leave the standard of the AFTER

WARRANTY automotive service industry through constant innovation in quality

repairs and preventive maintenance services.

Our business chose the functional type of organization. This is one of the

most commonly used type of organizational structure which all activities in the

firm are group together according to certain functions like production, marketing,

service and administrative. This is the best structure that will fit to our over-all

operation. This is quite complex but effective and efficient for every partners and

employees of the organization since the work is

divided into specialized functions.