Operations and Processes of Euro Motors Car Dealership

Saturday: April 15, 2017

Professor: Nick Wake

Case: ALBA Operation Management Problems & Challenges

Assignment Prepared By:

Case Summary:

Euro Motors is an automobile dealership that is the exclusive dealer of eight of the most luxurious automobile brands in the world. Its operation consists in two parts, sales and after-sales of which both departments operate differently. In this case I will be going in depth in the sales department which is the main profit recourse for the organization.

Generally, the dealership makes the order on the vehicles it is made by the specs set by the sales team including the color of which makes the sales team desperate to sell some vehicles which they chose and which gets no preference by any customer.

The operation faces issues in the selection process which completely depends on the experience and preference of the sales team. Another issue going on with the operation would be that once the deal is sealed the salesman concentrates more on the new leads rather than delivering a clean sale to the customer in an ideal time and the communication process between the departments until car delivery to the customer are not running in a smooth pattern. In general there is a gap within each stage of the sales process that we will be talking about in detail in the case below.

The operation of a car sale runs as the below figure 1.1:

Figure 1.1

Car Sale Operation Process

Main Challenges

I have chosen to look in depth into this case using the 4 Vs of the process which are volume, variety, variation, and visibility as shown in figure 1.2. In the figure it shows that the product is with high cost due to the nature of product hence production should be low as well as low variety of which we clearly stated earlier due to the exclusivity of the selection process. Variation in this case would be high for the showroom makes every vehicle available for display as well as strong marketing tools for product display as well as high visibility for there is always a chance for a test drive and as I mentioned earlier the thrill of salesman for a new sale is extremely high and the service department being covered with glass so the customer is able to see everything when trying to purchase a car.

[pic 1]

[pic 2]

The main challenges that the dealership is facing in the current operational process is mainly consisting in the following:

1. Quality at all levels of the process
2. Exclusivity of decision making
3. Communication between involved departments
4. Close minded leadership

The points above were the areas that truly needs improvement of which if a real commitment was made to improve them, the sales process would run smoothly and every department would know what is going on in the previous stage to be prepared for their role, hence the customer would be able to receive his vehicle faster and recommend the brand as well as the high level of loyalty that he would have towards the product.