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Strategic Planning for a Service Company - Case Study

Strategic Planning for a Service Company - Case Study


When twenty seven-years in the service business and some seventeen-hours per day throughout that point, well, I got pretty sensible at knowing my markets and got a world-class education from the varsity of laborious knocks in strategic planning. I would really like to introduce a case study of some strategic designing and strategic thinking that went into tapping into a lucrative market of fleet oil changing services on-website at the client's location.

The explanation that I bring this up is that even now in retirement of us ask me concerning that trade sector we have a tendency to competed in, truly one of many. I'm the founding father of The Car Wash Guys at carwashguys.com and therefore, MBA students and entrepreneurs alike tend to select my brain a little. One MBA Student states:

I was leaning towards fleet vehicles only as well as I have contacted UPS and FED-EX to inquire if they might have any interest in such a service.


Indeed, I told him that: Those are 2 extraordinarily smart corporations to figure with. UPS typically has made the preventative vehicle maintenance a Union Job. FED EX can be slow to pay, particularly when trimming prices thanks to increased diesel and jet fuel costs. So, if you low-bid the FED EX account, understand that you'll become Bank of Mobile Oil Changing for a smart one hundred twenty days till you begin getting your checks.

He told me that he understood fully the money flow problems, which come with the territory whenever managing large company clientele. He then asked the following very wise questions:

1. How would you recommend approaching an organization of this magnitude with this proposal?

2. How would you arrange a formal business meeting?

3. Would I want complete with a financial analysis showing them the potential benefits value and convenience wise?

4. Do you know their current maintenance process?

5. Are the vehicles done at the dealership?


6. Do they do them on web site themselves?

You'll realize that a FED EX station manager is aware of his or her direct prices higher than you ever may, she additionally is aware of how to hide costs in alternative accounts to remain on budget for upward mobility within the company. It is best to own a pointy pencil and put forth your best value, or tell them that you just guarantee to beat any worth they're paying from any outside vendor by 10%, all they have to try to to is show you the competitors invoice. Once you get one account at one FED EX Terminal, use those as referrals. Fed Ex contains a terribly intense vendor record system, with reviews and performance information.

They are involved with oil brands, grades, and liability insurance. A local Fed Ex manager can get you founded as an approved vendor if he or she feels your price is inside the ball park, conjointly your insurance agent can want the seller application approval form copy as a result of Fed Ex can expect to be additionally insured for a meg on liability insurance, it would possibly be three- million currently thanks to lawsuits, or 5-million at airport locations.

Several of the Fed Ex locations have mechanics onsite for preventative maintenance but not all. The smaller the office the higher your probabilities are of obtaining in to urge the account. Smaller workplace might terribly well have things done at the local dealership.
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