Final Strat Paper Gear Up Auto Parts
Final Strat Paper Gear Up Auto Parts
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
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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration
Dedication
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 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
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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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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration
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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration
List of Figures
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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
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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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JMJ Marist Brothers
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
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
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.
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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration
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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JMJ Marist Brothers
Notre Dame of Marbel University
College of Business Administration
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
Wide Range of
Yes No No Yes Competitive Parity
Quality Auto Parts
Temporary
Experienced Some
Yes Somewhat Yes Competitive
Technicians/Staff what
Advantage
Efficient Inventory
Yes No No Yes Competitive Parity
System
Temporary
Some
Strategic Location Yes No Yes Competitive
what
Advantage
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Notre Dame of Marbel University
College of Business Administration
FIRM TECHNOLOGY
INFRACSTRUCTURE DEVELOPMENT
HUMAN RESOURCE PROCUREMENT
MANAGEMENT
SUPPORT ACTIVITIES
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Notre Dame of Marbel University
College of Business Administration
Star Question
mark
Dog
Cows
LOW HIGH
MARKET GROWTH RATE
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College of Business Administration
- 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.
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
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.
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Notre Dame of Marbel University
College of Business Administration
Recommendation
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Notre Dame of Marbel University
College of Business Administration
APPENDICES
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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Notre Dame of Marbel University
College of Business Administration
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)
Towards the 3 3 3 3
assigned task (max.
of 3 points)
TOTAL (Max. of 15 15 15 15 15
points)
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