Growing Pains at Grandiose Motors

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Introduction

Grandiose motors’ is a car dealership network company that deals in a wide range of vehicles. The objective of its formation was to help various car companies to market their products by making them available to appropriate clients. The company has gone through a number of challenges that made it not perform well in the market. The changing tests of the people made some of their stocks to move at a slower rate which forced the company to reduce on their prices.

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People are always looking out for new makes in the market and hence leaving the older ones unpurchased. For the older makes to be considered for purchase, they will have to go at a lower price which affects the expected profits of the company (Temple Press Ltd., 1972). Grandiose motors’ does not specifically deal in the manufacture of cars even though they can handle some repairs. They get their cars from other car companies like general motors and the likes.

They are at times forced to import cars from elsewhere so as to satisfy the demands of their customers. The company hence incurs a lot of expenses in transportation and assemblage of the motor cars. In case the vehicles are not purchased at a required rate, the activities of the company may be paralyzed due to lack of running capital. It has however been a desire for the company to maintain its operations despite the challenges that surround it. There are certain recommendations to the CEO of the company, Felix fabulous of which he can use to ensure that the company realizes its objectives.

Structuring the purchasing and inventory functions for the Grandiose Motors dealership network

It is the stock that is maintained by the company that will determine the purchasing power and income of the company. Depending on the stocks that are maintained by the company, they may be profitable or not and hence requiring the company to stock wisely. From the past records, it has been realized that maintaining a wide variety of stock has made the customers come for more. They will always come to grandiose with the assurance that they will get the make that they want.

This kind of stock should hence be maintained by the company so that it does not loose out on its customers. However, the company needs to understand that the needs of the customers are not the same and their tastes are bound to change with time. The company should hence be involved in continuous research that will ensure that they are acquainted with the changes that are taking place in the market (Glasscock & Clymer, 1999).

Even though maintaining a larger stock has drawn customers towards the company, the company will run at a loss if a certain make of cars is not purchased. It will hence be advisable for the company to look out on what is being preferred in the market and stock more of it.

To facilitate the purchasing power of its clients, the company should also utilize online facilities. Most people are currently showing a preference for online products as they are able to have a look at them before making a final decision. Online facilities also enable the customers to compare the different prices that they are being offered for a certain makeup and hence making their decision. The advantage of online inventory to the company will be a wide range of clients that they will be able to reach (Gardiner, 2006). The company will also be able to get customer feedback that will enable them deal in the right stock.

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Clients will also be able to make their orders online with will reduce on the amount of cars that they will have to stock without the assurance of them being purchased. There could be a number of customers that are in need of a certain make of a car but don’t know where to obtain it. Through online inventory, the customers will be able to know what is being stocked by the company and for how much it is costing so that they make their purchasing decision.

Through online marketing, the company will be able to know the geographical location of their customers. This will enable the CEO know where to recommend other branches to be established and hence increasing on the net sales of the company. Such statistics can easily be collected online by electronic means. The company will however need to make a good choice on the most appropriate websites that they were sure to capture their target customers (Denison, 1956).

With many other car dealers finding their place in online advertising, the company needs to adapt unique advertising procedures that will guarantee them competitive advantages over the other companies. The company will need to specify on the activities that they are dealing with and the range that they are capable of providing. As long as the correct online marketing procedures are employed, the company will be sure to reap the benefits that come with online marketing.

How purchasing and inventory management policies and procedures might differ as the dealerships purchase different types of service parts and materials

The company will have to adapt policies that will facilitate the purchasing power of their clients. The company is dealing in different products and services from other motor companies. As the company purchases the dealership from the motor companies, they are supposed to comply with certain policies as deemed possible by them. The policies might differ from product to product and from company to company.

This will hence minimize on the kind of policies that the company will adapt as they are to comply with the other companies require (Binder, 2000). The company may not be able to free my carry out its trading activities if they are forced to comply with the rules and regulations of the manufacturing companies. As a dealer company, it is supposed to be allowed to make some modification and changes to the products to effectively market it. Grandiose has been min the car industry for quite some time and hence has an understanding of what their customers need. They will however not be allowed to implement any such changes on the products unless a similar permission has been granted to them by the companies.

The company will also be limited to the kind of services that they will give to their clients. This is due to they different services that they deal in which are managed by different policies. For instance, a client that is in need of a spare part from general motors company will only be granted services that the company has been permitted to grant by the company. The services may be different from those of similar spare parts from another company that is not general motors.

It may hence appear as if the company is offering different offers for similar products and thus being considered unfair. It will be difficult for the company to actually convince its clients that the difference is due to the companies that they are dealing with (Turner, 2005). According to the different services being offered by different companies, the customers may show a preference for particular products that seem to have better deals. This will pose a great challenge to the company in its efforts to equally market the products.

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The main challenge that grandiose will be faced with is trying to balance out on the marketability of the different products that they deal in. as a dealership networking companies, they are not required to show any kind of partiality but ensure that the products receive an equal attention from their customers. They are however not in an absolute position to make a choice for the customers rather than to give them the correct advice.

They are required to speak the truth and offer the right information about the products that they are dealing in so the customers make an informed decision. They will also be encountered by certain questions about the products of the company that they may not be able to adequately answer (Chilton Company, inc, 1938). They will hence be required to make several inquiries to make the necessary clarifications to their customers and may take quite sometime.

This will not only be an inconvenience to the company but also to the clients who expect the staff of grandiose to be equipped with the technical information about the products that they deal in. grandiose also relies on the information that has been given by the manufacturing companies about the products that they are dealing in. it is such information that they will pass on to the clients who come to make the purchases. Even though grandiose carries out some tests to approve the products, it may not be adequate to guarantee absolute safety to the clients.

Customers who may rely on the information given by the company about the products rather than the manufactures may blame grandiose for any inconveniences caused. The company will hence not be able to escape any legal procedures that may be forwarded by a customer in case they find that what they were given is not what they expected. According to the law, any dealer is supposed to provide adequate information about the product that will guide the customer in making purchases (Rae, 1959).

Due to the fact that they do not have absolute information about the products, they may choose to keep quite. It may however not always work in al circumstances considering that some customers are so specific with details. A sales representative may hence be forced to give a certain kind of surety to the customer simply to make them make the purchases. Such actions may be binding to the company which may be used against them in the court. Depending on the direction that the case may take, it may be disastrous to the company and hence make them lose some of their trusted customers.

How supply-chain and inventory management concepts will help Felix Fabulous reduce investment and space requirements whilst maintaining adequate service levels

Supply chain and inventory management is a distribution mechanism that will enable the company to effectively supply its products. An effective supply chain inventory ensures that all the products that the company orders foe are supplied to the prospective buyers and hence minimizing on the amount of storage space as well as increasing on their total earnings (May, 1969). An effective supply chain means that before the company makes the orders, it has identified potential customers and gathered the information that has the details of what they want.

They will hence not need to engage min unnecessary purchases until when they have the information of the products. This will hence mean that the company will do a survey of the car products that are being offered by motor companies and the deals at which they are going at. After gathering the information, they will advertise them to their customers accordingly. The response that they receive from the clients will determine whether they will go for the products or not.

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The main work of the company will be to advertise and distribute the products according to the needs of the companies. This hence means that the company will not have to invest in storage spaces and subsequently reemploy more manpower to take care of the products. They will probably need a smaller space to showcase few of the products that are in the market and store the requested orders shortly before they are distributed to their clients.

As the company maximizes on the use of website advertisement, the physical show rooms may not be of great importance to most of their clients. Most of them will prefer to look out for the necessary details online and make inquiries before deciding to purchase the products (Baechler, 1971).

By making their advertisements on appropriate websites, they will be able to make adequate sales online and only need to look for means of distributing the products to their potential clients. Such a strategy will also ensure that the company serves a wide range of customers and thus increasing on its market scope. The company will only be required to intensify its online marketing procedures to ensure that customers all over the world know what they are dealing in and how they can benefit from their services.

In fact the main services of the company are to network with mother companies and get them appropriate customers to distribute the products to. They will hence be able to be exposed to other motor industries that are willing to network with them. Being an international company, grandiose is likely to receive contracts from all over the world from local car manufactures that are interested in marketing their products internationally. They company will hence not have to worry about the possibility of its services being minimal (Pelfrey, 2006). It will actually be a higher level that the company will be taking to have a wider coverage. It will mainly specialize in networking and distribution of the products.

This will make it to be known as a bridge between manufacturing companies and consumers and thus effectively fulfilling the objectives of its formation. Supply chain inventory will also save the company from the dangers of having a lot of stock of which the customers may not buy. This is due to the changes in tastes and preferences of the customers even as new models are manufactured. The company will also be in a good position to advice motor companies on the kind of designs that may be preferred by clients in the near future. This will therefore increase their partnership ties that will enhance their trading activities.

Conclusion

Grandiose motor company has a lot of potentials to succeed if the management holds firm to the objectives of its formation. Being a networking company should not make it to allow other motor companies to manipulate its activities. They need to have their own independence and work as per their own objectives. It will not do the company any good if it has to work according to the objectives that have been set by the other companies.

One of the reasons that make companies not to succeed in their operations is because they don’t stick to the objectives through which they were formed. They carry out their businesses in accordance to the prevailing circumstances which makes them tp miss out a lot (Sedgwick, 1979). Companies that have however stood with their objectives have been able to record good performance despite the challenges they have to go through.

The same policy should also be adapted by grandiose motors which should purpose to hold on to their objectives and maximize their opportunities. The company will also gain respect from its clients if it proves to be steadfast in their undertakings and not being swayed around and about. They will also need to make their policies and objectives clear to their partners to avoid any conflict that may arise.

Reference list

Baechler, G., (1971). Encyclopedia of American automobiles. Indiana: Dutton.

Binder, A., (2000). General Motors in the 20th century. Michigan: Ward’s Communications.

Chilton Company, inc., (1938). Automotive industries, Volume 79. Michigan: Chilton company, inc.

Denison, M., (1956). The power to go: the story of the automotive industry. Michigan: Doubleday.

Gardiner, D., (2006). Operations Management for Business Excellence. London: Pearson Education New Zealand Limited.

Glasscock, C. & Clymer F., (1999). Motor history of America: or, The gasoline age, the story of the men who made it. Michigan: F. Clymer.

May, G. (1969). Pictorial History of Michigan: The later years. New York: Eerdmans Pub. Co.

Pelfrey, W., (2006). Billy, Alfred, and General Motors: the story of two unique men, a legendary company, and a remarkable time in American history. New York: AMACOM Div American Mgmt Assn.

Rae, J., (1959). American automobile manufacturers: the first forty years: California: Chilton Co., Book Division.

Sedgwick, M., (1979). The motor car, 1946-56. Michigan: B. T. Batsford.

Temple Press Ltd., (1972). The Commercial motor, Volume 136. Michigan: Temple Press Ltd.

Turner, H. (2005). General Motors and the Nazis: the struggle for control of Opel, Europe’s biggest carmaker. Yale: Yale University Press.

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