Auto Repair Service Term Paper

Pages: 17 (4721 words)  ·  Style: APA  ·  Bibliography Sources: 15  ·  File: .docx  ·  Topic: Business

Auto Repair Service

Keys to success

Organizational structure

Personal background analysis and organizational responsibilities

Organizational chart


Marketing goals

Marketing objectives

PEST analysis

Political factors

Economic factors

Social factors

Technological factors



Placement - location


The market

Market analysis summary

Market segmentation

Target market segment strategy

Market needs

Market trends

Market growth


Sales forecasting


Financial analysis

Break-even analysis

Sources of capital

Financial ratios

Auto Hicksville offers a wide range of repair services and a wide range of auto-parts. The company will focus on customized services by offering rapid service to the customers. Furthermore, a complex computerized inventory system will be adopted to ensure that a wide range of auto-parts are on stock when needed, while minimizing inventory costs and maximizing its turnover. Finally, the company has a strong relationship with key vendors that have the capacity to ship major auto-parts in a short period of time.

1.2. Keys to success

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The keys to success refer to the following:

Fast auto repair service.

A wide range of auto-parts that are always on stock.

The ability to order and have shipped major auto-parts in a short period of time.

Access and referral from the local towing network.

2. Introduction

Auto Hicksville will provide auto repair services to the local community. The market analysis performed throughout the business plan shows there is insufficient supply for the strong market demand.

Term Paper on Auto Repair Service Assignment

Auto Hicksville is an auto repair start-up. The initial investment is worth $10,000, from the owner's savings plus an additional $5,000 from its credit card. So far, further investment will be financed from current sales. Basically, are profit will be reinvested back in the business until the annual net profit becomes positive.

The market analysis includes a thorough analysis of the PEST analysis (political, economic, social and technologic factors influencing the business environment), competition, market demand and supply, consumer behavior and capacity/ability to buy the services offered by Auto Hicksville, marketing mix and financial analysis (including break-even sales and financing recommendations).

3. Organizational structure

Auto Hicksville is a new start-up with only one owner, which will also be the company's executive manager. The executive manager will focus on the operational, sales and marketing activities. For the financial activities, an expert will be hired to handle the accountability as well as the business analysis.

New York is a very large state of over 54,000 square miles. Traveling from one side of the state to another is a four hour-drive, thus many residents own an automobile. Additionally, the automobile prices have fallen with the relocation of car manufacturing to low-cost countries and the emergence of cheap high technologies. Consequently the need for convenient and reliable auto services has registered a sensitive growth. Auto Hicksville will target the low to middle class segments in the Hicksville area. The company will be privately owned by its unique owner, and most of the additional needed funding will be contracted through a bank loan.

The company will be located in the centre of the city and will function from 8 a.m. To 9 p.m. On a daily basis and Monday to Friday during the week. However, the customers will have the possibility to be served outside working hours for emergency issues. Auto Hicksville's auto-parts vendors also have an extended working schedule, which will ensure the provision of main parts in a short period of time.

3.1. Personal background analysis and organizational responsibilities

The owner is soon to graduate from a management course, which will enable it to run the operational, sales and marketing activities. Moreover, its five-year experience in car repair will guarantee the knowledge and access to key vendors and towing company networks and to a fair number of other "collaborators." The other "collaborators" category ranges from potential employees with a good background and experience to financial service providers (e.g. insurance companies or banks).

Mrs. Anna Brown will be the company's financial advisor and accountant. She will be in charge of all the financial documents needed for the day-to-day activity as well as for the business analysis.

In the beginning the company will hire two mechanics with at least five years experience on both national and foreign cars. The employees will be hired through the owner's referral network from its previous experience in this field.

3.2. Organizational chart

Basically, both the financial manager and the senior mechanic positions will be subordinated to the executive manager. However, the responsibilities and salaries will vary from one function to another and none of the positions can be considered superior to the other.

Further information about personnel-related costs is available in the appendix section, under 'personnel plan' category.

4. Marketing

4.1. Marketing goals

Among the marketing goals, increasing sales and awareness are the most important in the first years of activity. The company wishes to increase visibility in the community and increase sales by attracting more customers either local or passing through the city or from the neighboring cities.

4.2. Marketing objectives

The objectives that will help meeting the company's goals can be summarized as follows:

Aim for customer fidelity, by creating special price and product/service packages.

Post billboards and flyers in strategic places in the city with high traffic and that are most likely to be visited by people from outside the city.

Create a website to increase accessibility of people both from outside and inside the city.

4.3. PEST analysis

The PEST analysis covers four environment-related influence factors: political, economic, social and technological. The factors influence both the macroeconomic and microeconomic outlook of the whole state/region/country.

4.3.1. Political factors

New York's present constitution ratified in 1938 specifies the functions, responsibilities of the state government. The document also specifies that the state is governed by three branches of the government: executive, judicial and legislative. The state is politically stable.

The state is usually perceived as a democratic, rather than a republican one, NY supporting mostly democrat candidates to the presidency. However, rural upstate tends to favor the Republican Party as the community members in that part of the state are more conservative.

In terms of taxation, the state ranks 42nd in federal spending per tax dollar. Also its balance of federal payments is biased as for each 1$ contributed to the federal government it received back 82 cents.

4.3.2. Economic factors

New York's GDP (Gross domestic product) is the third largest in U.S., with a steady growth rate between 3 and 3.5% and its GDP per capita is the fifth largest. The country's unemployment rate dropped to 4.5%, getting close to a 5-year low.

The trade balance decreased with 3.8% since December 2006 and the inflation rate as of December 2006 was 2.5%. The main concerns, at country level, are the high inflation and the slow economic growth (2.5-3% for 2007). The prospects for the next two years for the economic growth are not very optimistic, situating the indicator below 4%.

The annual rate for mortgage was 5-6% in 2007, while the health care providers' interest rate was 11%, showing a 2% increase compared to 2006 and 4% increased compared to 2005. The interest rate for business loans ranges from 3-4% to 6-7%, depending on the type of loan (private/government; small business/large business; long-term/short-term).

4.3.3. Social factors

New York's official language is English. However, the state is well-known for its cultural diversity. Thus, in 2000, 28% of the population above 5 years of age spoke a language other than English, Spanish being the 1st most spoken foreign language. The major ethnic groups in New York are African-American (15.8%), Italian (14.4%), Irish (12.9%), and German (11.1%). In 2004 the population of foreign-born was estimated at 20.4%.

In terms of education, the state is the 2nd largest university host after California and it is the home of 307 degree granting institutions. The education statistics for Hicksville are slightly different than the state ones. However, they follow the same trend (see fig.1 & 2).





The standard of living varies across the state from one city to another. Overall, New York is a highly industrialized state and the leading center of communication, banking and financial services in U.S.. Although life conditions are considered satisfactory, the state is known as one with the highest criminality rates in the country.

4.3.4. Technological factors

New York is a large contributor to the country's technological innovation. A large part of R&D (Research & Development) funds are federal, NY ranking 5th in terms of government funds in 2000 with over $3 bn spent. The overall spent in the same year was close to $13.6 billion, ranking 3rd nationwide. Nevertheless, the R&D intensity (calculated as the ratio of R&D expenditure to its gross state product) ranked only 24th in the country.

In terms of employment, 48 out of every 1000 workers employed in the private sector in New York works in a high-tech firm and approximately 3.4% of the country's scientists had a high tech job… [END OF PREVIEW] . . . READ MORE

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How to Cite "Auto Repair Service" Term Paper in a Bibliography:

APA Style

Auto Repair Service.  (2008, April 20).  Retrieved September 28, 2020, from

MLA Format

"Auto Repair Service."  20 April 2008.  Web.  28 September 2020. <>.

Chicago Style

"Auto Repair Service."  April 20, 2008.  Accessed September 28, 2020.