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Final Strat Paper Gear Up Auto Parts

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1 views33 pages

Final Strat Paper Gear Up Auto Parts

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JMJ Marist Brothers

Notre Dame of Marbel University


College of Business Administration

A STRATEGIC PLAN OF COMPANY GEAR UP AUTO PARTS

A Paper Presented to the Faculty


of the
College of Business Administration

As a Partial Requirement
for the Fulfilment of the Course
CBME 101 – STRATEGIC MANAGEMENT

Kristine S. Rivera
Ashley Kaye A. Quimsing
Bai Mishairah A. Santiago
Kyla N. Segovia
JD Delight O. Zapata

Date of the Presentation: May 29, 2023

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Dedication

We, the researchers wholeheartedly would like to express our sincere


gratitude to those people who have inspires, supported and guided us throughout
our journey.

To our parents and loved ones your unwavering love and support has
always made us stood out during the difficult times, in which it regained our
strength back building a strong foundation of dedication into fulfilling this study.

To our academic teachers and mentors Sir Krystianne Paul De Pedro,


your guidance and patience for correcting us during the toughest parts of the
study had not only shaped us for who we are today but as well as it pushed us to
go beyond the limit and to aim higher for the future that is heading towards us in
the nearby future.

To our friends and fellow classmates, thank you for reminding us that we
are not alone in this struggle, but as one in reaching the finish line.

Above all, we dedicate this study to one another as a group for the
teamwork and shared commitment we had that made this research possible. May
this study reflect the hard work we putted into it and serve as an inspiration of
perseverance for the upcoming researchers.

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Acknowledgement

This strategic planning is wholeheartedly dedicated to our beloved


families, whose unwavering support, patience, and love have been the
foundation of our strength throughout this journey. To our parents, thank you for
your endless encouragement and sacrifices that have allowed us to pursue our
goals. To our dear friends and classmates, your companionship and motivation
have made this process more meaningful and bearable. A special dedication
goes to Sir Krystianne Paul De Pedro, whose guidance, dedication, and belief in
our potential have been instrumental in the completion of this strategic planning.
Your mentorship has inspired us to strive for excellence and persevere through
every challenge. Above all, we give thanks to the Almighty for the wisdom,
courage, and grace bestowed upon us during the course of this endeavor.

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Table of Contents
Dedication ........................................................................................................... 2
Acknowledgement ............................................................................................... 3
List of Figures ...................................................................................................... 6
List of Table ......................................................................................................... 7
Executive Summary ............................................................................................ 8
I. Introduction .................................................................................................. 9
1.1 Nature of Business, Products, Services ..................................................... 9
1.2 Major Markets Served ................................................................................ 9
1.3 Number of employees ................................................................................ 9
1.4 Other relevant basic information ................................................................ 9
II. Research Design and Methodology ............................................................... 10
2.1 Data and information sources .................................................................. 10
2.2 How information was obtained & methodologies used ............................. 10
III. Company’s Vision and Mission ......................................................................11
3.1 Company’s Vision and Mission .................................................................11
3.2 Comment or Evaluate ...............................................................................11
3.3 Recommendation Vision and Mission .......................................................11
IV. PESTEL Analysis ......................................................................................... 12
4.1 Political .................................................................................................... 12
4.2 Economic ................................................................................................. 12
4.3 Socio-cultural ........................................................................................... 12
4.4 Technological ........................................................................................... 12
4.5 Environmental .......................................................................................... 13
4.6 Legal ........................................................................................................ 13
V. Porter’s Five Forces ................................................................................... 14
5.1 Competitive Rivalry .................................................................................. 14
5.2 Threat of New Entrants ............................................................................ 14
5.3 Threat of Substitutes ................................................................................ 15

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Notre Dame of Marbel University
College of Business Administration

5.4 Bargaining power of Buyers ..................................................................... 15


5.5 Bargaining power of suppliers .................................................................. 16
VI. Internal/Company Analysis ..................................................................... 17
A. Company’s Performance ........................................................................ 17
1. Marketing Aspect (4Ps of Marketing) ................................................... 17
2. Organizational Aspect ......................................................................... 17
3. Operational Aspect .............................................................................. 17
B. Organization diagnosis ........................................................................... 18
1. SWOT analysis ....................................................................................... 18
2. VRIO Framework .................................................................................... 19
3. Value Chain Analysis .............................................................................. 20
4. BCG Growth Share Matrix Model ............................................................ 21
C. Company’s major Strengths and Weaknesses ........................................ 22
D. Summary and Conclusion ....................................................................... 23
VII. Strategy Formulation ................................................................................... 24
Conclusions....................................................................................................... 25
Recommendation ........................................................................................... 26
APPENDICES ................................................................................................... 27
Appendix A - ATTENDANCE FORM............................................................... 28
Appendix B – Peer Evaluation ....................................................................... 29

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Notre Dame of Marbel University
College of Business Administration

List of Figures

Figure 1 SWOT Analysis ................................................................................... 18


Figure 2 VRIO Framework ................................................................................. 19
Figure 3 Value Chain Analysis ........................................................................... 20
Figure 4 BCG Growth Share Matrix Mode ......................................................... 21

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

List of Table
Table 1 Strategy Formulation ............................................................................. 24

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Executive Summary

Gear Up Auto Parts is a small business in Koronadal City that sells auto parts
and provides car repair services. It serves individual car owners, construction
companies, and government offices. With about 20 staff members and a
convenient location, the shop is known for good-quality products, skilled workers,
and friendly service.

This strategic paper assesses the external and internal environment of the
company by using tools such as SWOT, PESTEL, Porte’s Five Forces, Value
chain, VRIO, and BCG Matrix. The result of the analysis is Gear Up's strengths
include its quality products, skilled workforce, loyal customers, and strategic
location. However, challenges exist in the form of limited digital presence,
minimal marketing, and a single operational location.

The business also faces problems like strong competition, higher prices, and
changes in what customers want. But there are also chances to grow by selling
online and using better tools.

The paper recommends that Gear Up Auto Parts must apply this strategy
to enhance efficiency, customer satisfaction, and market performance. Marketing
strategies through digital platform like social media including Facebook, TikTok
and You tube this provide a wide spread information to customers by advertise
their products and services to a large audience. To enhance the operational
productivity of the business, we recommend that the business should invest in
technologies and modern tools. This can help to improve the work flow and
provide customer satisfaction. Technologies like automated scheduling and
digital invoicing would be a big help through recording transactions and
inventories. Modern tools can help the business provide the quality services to
customers.

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

I. Introduction

1.1 Nature of Business, Products, Services


Gear Auto Parts Shop are located on Confessor Street Osmena,
Barangay Zone II, City of Koronadal, is a one-stop shop destination for all sorts
of automotive needs, providing a wide range of products and services designed
to cater vehicle-related performances. The business specializes around the retail
and distribution of high-quality vehicle spare parts and accessories for variety of
vehicle types, Gear Up Auto Parts Shop offers an extensive selection of parts,
including engine components, brake system, lights and electrical accessories,
ensuring that the ones customers are searching for, they will surely be able to
find it in one place. Gear Up Auto Parts is dedicated to providing satisfactory
customer service, reliable vehicle-related products, positioning itself in a
favorable position as a trusted automotive shop here within the area of City of
Koronadal.

1.2 Major Markets Served


Gear Up Auto parts provide high quality products and services to
government agencies by supplying parts for government vehicles, to construction
companies by providing heavy duty auto parts for construction vehicles and
equipment, and to car owners by helping individuals maintain and repair their
personal vehicles.

1.3 Number of employees


Gear Up Auto parts is an expanding company with an estimated 20
employees, dedicated to provide high-quality automotive parts to its customers
and exceptional service.

1.4 Other relevant basic information


In addition to its retail operations, the shop also offers service quality that
delivers professional services like repair and maintenance. These services are
done and handled by skilled and well-trained mechanics who have sufficient
knowledge of bringing out desirable and dependable results.

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Notre Dame of Marbel University
College of Business Administration

II. Research Design and Methodology

2.1 Data and information sources


Our group chose to use primary sources, namely by interviewing experts
or highly skilled professionals. These were direct and relevant information and
insights coming from a professional viewpoint, and they presented great support
to our research.
Aside from that, secondary sources like official websites and social media
websites like a Facebook page pertaining to our subject were consulted. We
accessed these to obtain supporting data, public views, and background
information that supplemented the main information we gathered.

2.2 How information was obtained & methodologies used


The information was obtained through conducting an interview directly
towards Gear Up Auto parts, a local business that provided us with the data and
information regarding their operations, challenges, and their strategies. The study
was descriptive in nature, which implies that it is primarily concerned on making
exploration and understanding the current situation of the business. Through this
method we were able to identify existing problems, analyze operational practices
and uncover gaps in knowledge that might hinder the business to grow.
Furthermore, we aim to develop long-term strategic recommendations that could
help the business to continuously achieve success and sustainability of Gear Up
Auto parts.

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Notre Dame of Marbel University
College of Business Administration

III. Company’s Vision and Mission

3.1 Company’s Vision and Mission


To be the leading and most trusted auto shop and auto parts provider in South
Cotabato, known for quality products, reliable service, and commitment to
customer satisfaction.
Our mission is to provide high-quality auto parts and reliable services to every
vehicle owner across South Cotabato. As we grow, we are committed to reaching
more communities bringing convenient, affordable, and trusted auto care to every
corner of the province.

3.2 Comment or Evaluate


We strongly advise the company to expand its operations beyond its
current scope in South Cotabato to encompass the entirety of Region XII, as this
would increase market reach and brand exposure and create new growth
opportunities in neighboring provinces such as North Cotabato, Sultan Kudarat,
and Sarangani. The company can grow its customer base, capitalize on local
economic growth, and fortify its position in the market by looking into these
areas. Additionally, the expansion will make the business more competitive and
enable it to better serve the diverse needs of local clients.

3.3 Recommendation Vision and Mission


To share the vision and mission clearly with employees and other
stakeholders, start by explaining them in group meetings and make sure that
everyone understands and know the purposes. Put the vision and mission on
posters or signs where everyone can see them, and also to see the training new
workers. They should show how everyday work connects to the mission by giving
examples. For those people outside the company, like partners and customers,
share the vision and mission by uploading in social medias or website. To ensure
the vision and mission clearly understand the people, we should ask them and
make changes if needed to make sure that the message is clear to them.

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Notre Dame of Marbel University
College of Business Administration

IV. PESTEL Analysis


4.1 Political
The automotive industry similar to Gear Up Auto Parts Shop plays a
significant role in the global automotive industry. Global Governance imposed
regulatory standards to reduce vehicle emissions to combat environmental
issues like air pollution and climate change. Additionally, these regulations also
including the import and export laws, environmental protection policies, and
consumer protection regulation, transportation costs, and types of parts offers.
These government policies can impact the trade barriers such as the cost of
automotive parts, availability and profitability for automakers leading to complex
network of relationships among automakers, suppliers, and consumers.
Understanding and adapting to these political factors are essential for Gear Up
Auto Parts Shop to maintain the competitiveness and success in the dynamic
automative industry.

4.2 Economic
Gear Up auto parts are affected by rising prices, like fuel and other basic
goods. In that case, some people may not spend less on vehicle repairs because
of prices go up. But many people use motorcycle and cars every day. so that,
Gear up continuous to earn by selling affordable and needed items like filters,
brake pads, spark plugs and others.

4.3 Socio-cultural
Rising population and rural-urban migration increase the demand for
transport and other auto parts, as well as shifting customer behavior like the
desire for cost effective service, affordability, and reliable vehicle auto parts and
maintenance. Establishing a good relationship to customers and being
responsiveness to requirements are important for long-term loyalty of customers.

4.4 Technological
Advancements in technology require business to adapt in changing
market. Online selling platforms can able to extend market reach and makes
transactions a lot easier. Additionally, Auto shops are in need to adjust with newer
diagnostic equipment by hiring skilled technicians, and training their personnels
as vehicle technology advances. Lastly, technology utilization can enhance
monitoring parts, minimize waste and enhance service to customers.

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Notre Dame of Marbel University
College of Business Administration

4.5 Environmental
The automotive industry faces numerous challenges to control air
pollution, fuel consumption, and greenhouse gas emissions by creating and
crafting alternatives using electric vehicles.
Resource scarcity is one of the factors environmental factors. The availability and
sustainability of the raw materials affect the cost of the automotive part and its
transportation cost but also, these challenges can lead to opportunity loss for
both valued customers and manufacturers. Extreme weather events or climate
change can also cause resource scarcity that can lead to disruption of the supply
chain and potentially damage their products and inventory. Increasing the
awareness of climate change is affecting the customers’ preferences by using
electric vehicles, it requires Gear Up Auto Parts Shop to adapt to these products
so that customers will have a preference to avail the services provided. Through
the years our economy is started to slow down, increasing inflation and exchange
rates affecting the customer’s decision-making and also the Gear Auto Parts
affecting the cost of their products.

4.6 Legal
Gear Up Auto parts must comply with all legal requirements, including
registration with the DTI, barangay permits, and tax obligations. Also, ensure that
all auto parts sold are safe and not counterfeit to avoid problems and to secure
the reputation of the business.

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Notre Dame of Marbel University
College of Business Administration

V. Porter’s Five Forces


5.1 Competitive Rivalry
Competitive rivalry is high for Gear Up Auto parts. The market has many
players, from small local shops to big international brands, which makes
competition tough. Customers often switch to other suppliers if they find better
prices or more available stock. Since most products are similar, it’s hard for Gear
Up to stand out unless they offer something different. Online stores have also
added pressure, as people can now compare prices and order parts more easily.

5.2 Threat of New Entrants


The threat of new entrants for Gear Up Auto Parts located in City of
Koronadal is considered to be ranging from moderate to high. This is due to the
reason that relatively low barriers to entry in the auto parts retail industry.
Establishing a similar business setting doesn't necessarily require large start-up
capital investment as it allows for it to be easily accessible to future want to-be
entrepreneurs. The elevating number of vehicles in Koronadal has substantially
increased the growing demand for automative parts and accessories, stimulating
businesses to gain an opportunity upon entering the market. Additionally,
attainability to suppliers is widely available, with most auto parts easily founded
from local distributors or in online platforms, like the imported ones. The entrance
of e commerce and social media management has made it handy for new entrants
to sell products without the requirement of a physical store. While Gear Up can
gain benefit from customer loyalty and value system, this can flip the coin to new
players offering highly competitive pricing strategies and wider variety of products.
However, the existing competition within the city could serve as a deterrent to new
entrants who find it difficult to differentiate themselves or putting themselves in a
favorable position.

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

5.3 Threat of Substitutes


Threats of substitutes constitutes one of the greatest threats currently
confronting Gear Up Auto parts in City of Koronadal. Consumers currently opt for
less expensive substitutes such as re-manufactured as well as aftermarket parts,
which cost up to 20%-50% less than original equipment manufacturer (OEM) parts.
This is driven by car drivers seeking more affordable maintenance and repair
vendors. The emergence of do-it-yourself (DIY) repairs enabled by online forums
as well as tutorials, also reduces dependence upon professional car repair centers
as well as traditional parts sellers. Online stores such as Shopee, TikTok shop, as
well as Lazada, further introduce a wide variety of auto parts at competitive prices,
making it possible for customers to quickly seek out substitutes as well as switch
vendors. Moreover, increasing use of secondhand or refurbished parts from
national junkyards provides a lower-cost opportunity, especially for proprietors of
aged vehicles. Technological advancements such as 3D printing also pose a future
threat since they enable bespoke auto parts to be printed at a lower price. Lastly,
increasing use of electric as well as hybrid vehicles can reduce demand for
traditional auto parts, compelling Gear Up Auto parts to realign its inventory. The
trends indicate that the company must continue to innovate as well as adjust its
strategies to continue remaining competitive as well as relevant in a dynamic
market.

5.4 Bargaining power of Buyers


Customers in City of Koronadal have many auto parts stores to choose,
which gives them more control when making purchasing decisions. Since they can
easily compare prices, ask for discounts, or choose another store if they're not
satisfied, their bargaining power of buyers is ranging of medium to high. This

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College of Business Administration

means Gear up auto parts need to offer fair prices, good quality products, good
service to keep customers loyal and coming back.

5.5 Bargaining power of suppliers


The bargaining power of suppliers for Gear Up Auto Parts can significantly
impact a company’s profitability and operational flexibility. The automotive parts
industry typically has a mix of both small and large suppliers, like Gear Up Auto
Parts has a high to moderate supplier power that gives the business more choices
and its bargaining power. The company operates in fragmented market with many
suppliers, reducing individual supplier power. Gear Up Auto Parts should focus on
diversifying its supplier base, negotiating long-term contract, and maintaining
strong relationship with multiple suppliers to ensure competitive pricing and
product availability. Collaboration with buyers can also significantly impact to the
business provide better deals or discounts, long-term relationship, building trust,
and loyalty to suppliers.

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

VI. Internal/Company Analysis


A. Company’s Performance

1. Marketing Aspect (4Ps of Marketing)


• Product- offers a wide array of auto parts and accessories, additionally it
delivers maintenance and repairing which is done by mechanics.
• Price- competitive pricing with offers for discounts and packages.
• Place- strategically located within Confessor Osmena, near highway, a
great potential for profitability and viability.
• Promotion- utilizes Facebook and word-of-mouth, though, needs further
enhancement of social media marketing and promotions.

2. Organizational Aspect
Gear Up Auto parts is a small to medium-sized business where each worker
has a clear role, like selling parts, keeping track of inventory, or installing items
for customers. The owner makes the important decisions and keeps good
relationships with suppliers. Workers are chosen because they know about car
parts or can learn quickly on the job.

The shop uses a basic system to watch the stock and orders new parts when
needed. Helping customers is very important, so the staff are friendly and honest
to make sure people feel welcome. For marketing, Gear Up Autoparts mostly
uses local ways like social media, word of mouth, and community events to reach
more customers.

3. Operational Aspect
Gear Up Auto Parts has a hybrid business model with both retail and service
operations, providing a full range of vehicle maintenance services as well as
automotive products under one roof. The retail operation has a full range of parts
including engine parts, brakes, and electrical accessories sourced from various
suppliers for quality assurance and availability. Meanwhile, the servicing side is
operated by well-trained mechanics who provide quality repair and maintenance
services, which help to build customer confidence and satisfaction. With
approximately 20 staff members working on sales, technical services, and
support duties, the company ensures effective day-to-day operations. Although
Gear Up has a solid local presence, there is still potential for increasing

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College of Business Administration

operational efficiency through the use of sophisticated diagnostic equipment and


digital platforms, such as inventory systems and internet-based sales networks.
Strategically positioned within Koronadal City, amidst the proximity of its
customer base, the shop is well-placed to cater to individual car owners,
business organizations, and government offices efficiently.

B. Organization diagnosis
1. SWOT analysis
Figure 1 SWOT Analysis

Weaknesses- single
Strength- Quality location, limited online
Products, skilled workforce promotion of business and
and strategic location. minimal marketing efforts.
SWOT
Analysis
Opportunities- Wider Threats- tougher competition
online presence and digital lessening market share,
marketing and Nearby rising prices due to inflation
and possible issues in supply
market reach and distribution.

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

2. VRIO Framework
Figure 2 VRIO Framework

Valua Costly to Organized to Competitive


Resource/Capability Rare?
ble? Imitate? Capture Value? Implication

Wide Range of
Yes No No Yes Competitive Parity
Quality Auto Parts

Strong Supplier Sustained Competitive


Yes Yes Yes Yes
Relationships Advantage

Temporary
Experienced Some
Yes Somewhat Yes Competitive
Technicians/Staff what
Advantage

Customer Sustained Competitive


Yes Yes Yes Yes
Loyalty/Trust Advantage

Efficient Inventory
Yes No No Yes Competitive Parity
System

Temporary
Some
Strategic Location Yes No Yes Competitive
what
Advantage

Brand Reputation Sustained Competitive


Yes Yes Yes Yes
(Locally) Advantage

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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

3. Value Chain Analysis


Figure 3 Value Chain Analysis
PRIMARY ACTIVITIES

Inbound Outbound Marketing


Operations Service
Logistics Logistics and Sales

FIRM TECHNOLOGY
INFRACSTRUCTURE DEVELOPMENT
HUMAN RESOURCE PROCUREMENT
MANAGEMENT

SUPPORT ACTIVITIES

Gear Up Auto Parts maintains a well-designed value chain which creates


value via support and primary activities. In terms of inbound logistics, the
company is supplied with its inventory by a diversified mix of local and foreign
suppliers. This diversification enables Gear Up to attain improved pricing as well
as a consistent supply of inventory. For operations, Gear Up not only serves as a
retail store but also as a service center in which it trades in car spare parts and
professional repair works. The twofold capability favors customer convenience
and one-stop-shop culture. For outbound logistics, its services are dispensed
through its physical outlet; however, online platforms present a possibility of
delivering to more customer bases with a cost-efficient manner. Marketing and
sales are quite limited but are word-of-mouth promoted and customer
satisfaction-based. Use of social media and online promotion may greatly raise
customer awareness and interaction. For service, Gear Up offers excellent after-
purchase service with the use of skilled mechanics and sound vehicle
maintenance, thus improving customer loyalty and retention.

Its strong foundation lies in a mid-scale operation in Koronadal with 20 or so


manpower and which is capable of doing sales and servicing effectively. Human
resource management is also of prime importance, where the company
maintains trained technicians on an ongoing basis so that they can stay updated

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Notre Dame of Marbel University
College of Business Administration

on the latest in automotive technology. On the advancement of technology, there


is recognition by Gear Up of the need to computerize its machinery and adopt
digital solutions such as diagnostic machinery and web-based sales websites.
Finally, procurement is also conducted effectively through multiple sources,
ensuring that the company reduces dependence on a single organization and
maintains its prices highly competitive.

4. BCG Growth Share Matrix Model


Figure 4 BCG Growth Share Matrix Model

RELATIVE MARKET SHARE


HIGH LOW

Star Question
mark

Dog

Cows
LOW HIGH
MARKET GROWTH RATE

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Notre Dame of Marbel University
College of Business Administration

To understand Gear up Auto Parts using Boston Consulting Group (BCG)


matrix, this strategic tool helps businesses identify which products to invest in,
develop, or phase out. This allocates resources and focus on product lines that
will drive future growth of the business through its regular updating, the market
conditions and product performance will help the business remain competitive in
the automotive industry.

- Stars

Stars are the products with high market share in a fast-growing automotive
industry. In the BCG matrix for Gear Up Auto Parts, these products are seen as
stars such as customizable automotive accessories, engine components,
electrical accessories. These products development provide a significant to cash
flow and for future innovations that can maintain leadership and capitalize on the
growth trends t
- Question Mark

Question marks are products with low market share and a high-growth
industry, this requires a significant investment to increase the market share.
These products are electric vehicle accessories and smart automotive gadgets.

- Cash Cows

Cash Cows are products with high market share and low growth industry,
these products have a minimal investment while using generated cash to fund
the stars and question marks. This matrix it focusses on efficiency and cost
management to maximize profitability. These products such as standard tires,
electrical accessories, and lighting system.
- Dogs

Dogs are products with low market share and low growth industry, these
products consider as a do not contribute positively to cash flow. These products
are specialized automotive tools or outdated accessories that are not selling well.

C. Company’s major Strengths and Weaknesses


Gear Up Auto Parts strengths is Quality Products, skilled workforce and
strategic location and weaknesses is single location, limited online promotion
of business and minimal marketing efforts.

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College of Business Administration

D. Summary and Conclusion


Gear Up Auto Parts is a small business that provides both auto parts and
repair services in Koronadal City. The company has a good reputation for product
quality and skilled service, supported by a strategic location near a highway. It
uses a functional organizational structure with about 20 employees handling
sales, repairs, inventory, and customer service. The business offers a wide range
of auto parts, competitive pricing, and excellent customer service. Promotion is
mostly through Facebook and from the other people, but more online marketing
could help growth. Operationally, Gear Up combines retail sales with vehicle
maintenance, making it convenient for customers. While the company has a solid
system in place, it still has room for improvement in digital tools, such as using
modern diagnostic equipment and online sales. From the SWOT analysis, the
company’s strengths include product quality, experienced staff, and location.
Weaknesses include having only one shop, limited online presence, and minimal
marketing. Opportunities lie in digital marketing and reaching nearby markets,
while threats involve strong competition, inflation, and supply issues. The VRIO
analysis shows that customer loyalty and supplier relationships give the company
a sustained competitive advantage. Value chain analysis also shows that Gear
Up has strong operations but could grow more with better marketing and tech.
Using the BCG matrix, the company’s top products are engine parts and
accessories (Stars), while electric vehicle accessories are Question Marks.
Common parts like tires are Cash Cows, and outdated tools are Dogs.
So that, Gear Up Auto Parts is a well-positioned business with a strong
foundation in quality products, skilled service, and customer trust. However, to
stay competitive and grow, it should enhance its online presence, improve digital
systems, and invest more in marketing. By using its strengths and seizing market
opportunities, the company can increase profitability and continue to serve its
customers effectively.

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VII. Strategy Formulation

Table 1 Strategy Formulation


Strength Weaknesses
1. Quality Products 1. Single location
2. Skilled workforce 2. Limited online promotion
Matching Stage 3. Strategic location of business
3. Minimal marketing
efforts.
Opportunities S1 x O1. Strategy 1: Use good- W3, W4 x O1, O4. Strategy 4:
1. Wider online quality products to build a strong Fix the weak marketing by
presence online presence by showing being active online like post on
2. Digital marketing clear photos, reviews, and social media, share product
3. Nearby market stories about your products info, and work with influencers.
reach online.

S2, S3 x O2, O3. Strategy 2: W1, W2 x O2, O3. Strategy 5:


Use skilled workers and good Since the business only have
location to run online ads and one location and not much
reach nearby customers with promotion, start using online
fast service and delivery. ads (like Facebook/Instagram)
and target local people nearby.
S4 x O4. Strategy 3: Pick good
location to support a strong
online presence by offering fast
delivery or pick-up for nearby
customers and advertising it
online.
Threats/Challenges S1 x T1. Strategy 6: Show off W1, W2 x T1. Strategy 9:
1. Tougher the high-quality products to Since the business only have
competition stand out from the strong one place and weak online
lessening market competition and keep your promotion, go online and join
share customers loyal. platforms like Tiktok shop or
2. Rising prices due Shopee to compete better.
to inflation S2, S4 x T2. Strategy 7: Let the
3. Possible issues in skilled team help reduce costs W3, W4 x T2, T3. Strategy 10:
supply and by working more efficiently to Improve marketing by
distribution. deal with rising prices. promoting product value and
offering deals. Also, prepare
S3 x T3. Strategy 8: Use the backup suppliers to avoid
location to solve delivery delivery problems.
problems by finding local
suppliers and delivery partners.

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College of Business Administration

Conclusions

The strategic assessment done on Gear Up Auto Parts has revealed that
the company boasts a solid base in the form of quality products, superb customer
care, and a strategic location in Koronadal City. With about 20 employees and a
functional organizational structure, the company is positioned to manage its retail
and service operations with minimal wastage of resources, thus becoming a
credible and reliable business in the automotive industry.

By utilizing strategic tools like SWOT, VRIO, PESTEL, Porter's Five Forces,
and the BCG Matrix, we developed a better insight into both the internal
capabilities and external weaknesses of the business. Gear Up Auto Parts has
valuable strengths like customer loyalty, experienced staff, and relationships with
suppliers, which generate a sustained competitive advantage. Yet, it is also
vulnerable to weaknesses like low online presence, little marketing, and
dependency on a single location.

The external environment poses both threat and opportunity. Although


economic inflation, increased competition, and substitute goods are significant
threats, the emergence of digital marketing, demand for vehicle components, and
market expansion in adjacent markets offer opportunities for development and
innovation.

In summary, Gear Up Auto Parts is poised to become more successful by


tapping its strengths and working on its weaknesses. In order to continue growing,
the company must adopt digital transformation, further develop its market
strategies, and venture into other regions within Region XII. This way, it not only
holds on to its current market position but develops into one of the top regional
players in the automotive parts market.

25
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Recommendation

To develop a comprehensive strategy both external and internal of the


business, Gear Up Auto Parts must apply this strategy to enhance effeciency,
customer satisfaction, and market performance. Marketing strategies through
digital platform like social media including Facebook, TikTok and You tube this
provide a wide spread information to customers by advertise their products and
services to a large audience. To enhance the operational productivity of the
business, we recommend that the business should invest in technologies and
modern tools. This can help to improve the work flow and provide customer
satisfaction. Technologies like automated scheduling and digital invoicing would
be a big help through recording transactions and inventories. Modern tools can
help the business provide the quality services to customers. Lastly, human
resources strategies this focus on the recruitment process, training, and
managing skilled employees. A well skilled and efficient technician must know
how to balance the pressure and their ability to fix automotive problems.

26
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

APPENDICES

27
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Appendix A - ATTENDANCE FORM

Dates of Names of Names of Topics


Meetings Present Absent Discussed
Members Members

Attested by: Noted by:

JD Delight Zapata Kyla Segovia


Group Secretary Group Leader

28
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Appendix B – Peer Evaluation

CRITERIA NAME OF MEMBERS


PARTICIPATION Rivera Quimsing Santiago Zapata
Attendance in group 3 3 3 3
meetings (max. of 3
points)
Contribution to idea 2 3 3 3
(max. of 3
points)
Performance in the 3 3 3 3
given task (max. of 3
points)
ATTITUDE Rivera Quimsing Santiago Zapata
Towards the assigned 3 3 3 3
task (max. of 3 points)
Towards the other 3 3 3 3
members of the group
(max. of 3 points)
TOTAL (Max. of 15 14 15 15 15
points)

Kyla N. Segovia May 28, 2025


Name and signature of the student-evaluator Date of Peer Evaluation

29
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Appendix B – Peer Evaluation

CRITERIA NAME OF MEMBERS


PARTICIPATION Rivera Quimsing Segovia Zapata
Attendance in group 3 3 2 3
meetings (max. of 3
points)
Contribution to idea 2 3 2 3
(max. of 3
points)
Performance in the 3 3 3 3
given task (max. of 3
points)
ATTITUDE Rivera Quimsing Segovia Zapata
Towards the assigned 3 3 3 3
task (max. of 3 points)
Towards the other 3 3 3 3
members of the group
(max. of 3 points)
TOTAL (Max. of 15 14 15 13 15
points)

Bai Mishairah A. Santiago May 28, 2025


Name and signature of the student-evaluator Date of Peer Evaluation

30
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Appendix B – Peer Evaluation

CRITERIA NAME OF MEMBERS


PARTICIPATION Rivera Santiago Segovia Zapata
Attendance in group 3 3 3
meetings (max. of 3
points)
Contribution to idea 3 3 3 3
(max. of 3
points)
Performance in the 2 3 3 3
given task (max. of 3
points)
ATTITUDE Rivera Santiago Segovia Zapata
Towards the assigned 3 3 3 3
task (max. of 3 points)
Towards the other 3 3 3 3
members of the group
(max. of 3 points)
TOTAL (Max. of 15 14 15 15 14
points)

Ashley Kaye A. Quimsing May 28, 2025


Name and signature of the student-evaluator Date of Peer Evaluation

31
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Appendix B – Peer Evaluation

CRITERIA NAME OF MEMBERS


PARTICIPATION Rivera Quimsing Santiago Segovia
Attendance in group 2 3 3 3
meetings (max. of 3
points)
Contribution to idea 2 3 3 2
(max. of 3
points)
Performance in the 2 3 3 3
given task (max. of 3
points)
ATTITUDE Rivera Quimsing Santiago Segovia
Towards the assigned 3 3 3 3
task (max. of 3 points)
Towards the other 3 3 3 3
members of the group
(max. of 3 points)
TOTAL (Max. of 15 12 15 15 14
points)

JD Delight O. Zapata May 28, 2025


Name and signature of the student-evaluator Date of Peer Evaluation

32
JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration

Appendix B – Peer Evaluation

CRITERIA NAME OF MEMBERS

PARTICIPATION Quimsing Santiago Segovia Zapata

Attendance in group 3 3 3 3
meetings (max. of 3
points)

Contribution to idea 3 3 3 3
(max. of 3
points)

Performance in the 3 3 3 3
given task (max. of 3
points)

ATTITUDE Quimsing Santiago Segovia Zapata

Towards the 3 3 3 3
assigned task (max.
of 3 points)

Towards the other 3 3 3 3


members of the
group (max. of 3
points)

TOTAL (Max. of 15 15 15 15 15
points)

Kristine S. Rivera May 28, 2025

Name and signature of the student-evaluator Date of Peer Evaluation

33

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