Strategic management and machine store essay

His entrepreneurial soul drove him to leave a stable job and convert his part-time engine reconditioning business in a full-time effort. He relocated from a run down old house next to his trailer home into a small shelter that he rented for starters month. After renting the hut this individual moved to a stall within a service train station. With none a business term nor an enterprise license, Dab had very little control over parts and income. When the option came to hire a larger space from a garage owner Pat took it.

In this article his organization continued to grow and there was a purpose for him to hire a helper. Though he was in the industry of engine reconditioning, this individual hired a premed college student. Finally in 1977, Vyri?kis business received a brand. He integrated it since Bennetts Equipment Shop, Incorporation. During that same time this individual moved the company to a leased building that only he entertained.

Analysis of the case.

The case examination will be performed using the SWOT analysis and the elements will be reviewed strategically.

Eye-sight & Quest Statement:

Bennett’s Machine Shop, Inc. has the vision of achieving variation in the field of engine business besides making the company a profitable organization. The main intension is to carry on finding new ways of repairing and renewing mechanical gadgets and operating systems of all kinds especially auto motors with regard to quality of products and services aiming to achieve best position in international competition.

Current Evaluation:

Need to complete some products from the circumstance like the business that the company is currently performing and the taken on loan.

Strategic SWOT Examination:


A few of the major power of Bennett’s Machine Store Inc can be highlighted since

¢ Having service/product selection in the field of engine making and rebuilding has given all of them a competitive advantage in the industry.

¢ Mr. Pat Bennett is continually looking for development as he initial expanded his services coming from engine restoring to installations, and then again by simply undertaking the tool sharpening and modifications contract with Boeing.

¢ Recognizing the importance of services and market share, the corporation is definitely interested researching the market and invest in advertising.

¢ Complete Engine service exists at the store which is a very distinctive feature market wise.

¢ Customer friendly price framework


You can actually strength questioned by several weaknesses that currently exists. The great and growing list of weakness suggests that the organization has to execute a complete overhauling of it is business in order to succeed the competitive environment. Some of the essential ones happen to be mentioned beneath:

¢ We have a lack of a definite plan of action while the company is currently headed by just one person having an individual idea for the business enterprise.

¢ It might be inferred that Pat Bennett possesses the technical expertise to perform the work, but does not have a functional strategy in place to work the business.

¢ In addition to other components, having a strategy would have required developing a objective, establishing goals, conducting exploration for the assistance provided, exploring financing alternatives, and using a clear marketing plan.

¢ There is no facts that Dab did any kind of research work before beginning his organization. Because of this poor planning, his organizations framework is weak and the company culture is usually dysfunctional.

¢ Bennetts weak organizational structure has bring about poor supplies management. There appears to be an absence of direction and control of inventory and equipment. The facility has hemorrhoids of employed engines scattered inside and out.

¢ Pat as well allows customers to drop away engines around his property giving it seen a salvage yard instead of a machine store. There is also limited space to maintain parts and tools. Work areas happen to be cluttered creating difficulty once trying to find the various tools to perform the position.

¢ There is not any specialized HUMAN RESOURCES department because of which there is abundance of inefficient hiring, training, and retention techniques.

¢ You will discover no crystal clear work schedules in place and it is presumed that the personnel are satisfied with the limited benefits available offers; it has contributed to the dysfunction.

¢ There is also the absence of a scientific plan of operations. Only giving an worker a few ideas is a good example of this. These issues have an effect on employees abilities to perform their task and ultimately has a negative effect on the significance creation method.

¢ Offered issues led to the shutting of his new shop after 18 months and the mismanagement from the Boeing contract. Proper transactions with Boeing may possess led to a scenario where Pat Bennett acquired more control.

¢ Store has poor financial managing. Almost every asset that Terry owns is definitely financed by simply debt. He did not program nor search for the guidance of a specialist when he started out his organization; he believed that debt financing was the route to go after. He would not place any value upon having a proficient firm to manage his funds.

¢ The particular owner also likes to spend money too much on top quality of life items. The attitude is that I are happy given that I was making money attitude. Purely bottom line targeted, but unacquainted with what the methods are to a perpetually confident bottom line, basically minimum organization sense.

¢ Another weakness is the extreme expenditure on advertising with no firm price benefit evaluation before expense of funds. They have put in more upon improper promoting than in professional costs and taxation. Because of poor planning, the firm was required to shut down in order to take orders as a result of a single advertising venture.

In summary Bennetts Machine Store value creation model features kinks in every step. The absence of preparing has led to the mismanagement in the essential advices of recruiting, materials, and capital. It has resulted in a poor conversion method and low quality outputs such as the shoddy relationship with Boeing.


The opportunities available to the organization are limited for their high debts situation. It will prove extremely tough for them to expand the support base, increase, and hire new people with limited capital. If the scenario were several, the firm could have the opportunity to acquire new equipment to perfectly keep up with the advancing technology in vehicle engines. Bennett’s could also have the opportunity to invest in smaller shops positioned in their proper area.

In addition , they would be able to outbid various other firms to get the Boeing contract. Likewise more capital would allow these to focus on the installation jobs, which is what currently gives them the advantage over their competitors.


The excessive debt condition makes the firm vulnerable during economic sluggish periods. They cannot afford to get rid of customers since that’s the just source of their particular revenue generaton. Also through this industry consumers are not manufacturer loyal, they may fluctuate via low prices to great services. Bennett’s weaknesses leave them subjected to these threats. The debt circumstance also causes it to be difficult to overcome the risk of new technology.

The organization doesn’t even have an enterprise license or name in order to began. You can the danger that a rival will offer a product that they are not offering and/or unable to give because they will lack the labor or capital. The threat a new organization could transfer to the area and start to perform installation also is out there. With skilled labor, important machinery and tools a brand new firm can open up anytime.


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