Portfolio Project

Carlos Augusto Pereira Quijano MGMT 6253V International Business Strategy Walden University Juan Stegman April 2011

TABLE OF CONTENTS
CHARLIE'S CUSTOM CUTS.................................................................................................3 Introduction..............................................................................................................3 Business Concept.....................................................................................................5 Vision.......................................................................................................................5 Mission Statement...................................................................................................6 Market Analysis.......................................................................................................7 Domestic Market Opportunities..............................................................................7 Foreign/Global Market Opportunities.....................................................................8 Business Environment Considerations....................................................................9 Information Resources...........................................................................................15 Role of Information Systems in Charlie's Custom Cuts.......................................17 E-commerce Plan...................................................................................................24 Business Organization and Human Resources......................................................28 Managing Diversity...............................................................................................31 Target Markets.......................................................................................................33 Developing the Strategic Market Program............................................................36 Product Decisions..................................................................................................38 Pricing Strategies...................................................................................................40 Promotional Mix....................................................................................................41 REFERENCES ......................................................................................................................43

CHARLIE'S CUSTOM CUTS

Introduction
Charlie's Custom Cuts will be the prominent car repair and auto shop for luxury vehicles in Cancun, Mxico. It will be owned by Carlos Pereira Jr a young entrepreneur recently graduated from Walden Universitys School of Business who has worked in the family car repair business for over 10 years. Having owned a car repair shop in Cancun for over 30 years, the Pereira family is well known and respected in the neighborhood. The differentiator for Charlie's Custom Cuts will be Carlos and the Pereira name. It is believed that people will come to the shop not only to have their cars repaired, customized, cleaned and detailed, but also as a social outing to meet up with and chat with Carlos and all the other customers who share a passion for luxury vehicles. Additionally, the garage will provide excellent service, efficiently and expertly repairing, customizing and cleaning customer's cars so that they will be repetitive users of the services we offer. The auto repair shop will be based in Cancun, Mexico. This area has a number of benefits

4 in terms of the market that it will provide for the business. Over 40% of households in the immediate neighborhood earn over $70,000 dollars annually and own sports cars and other luxury vehicles.

Charlie's Custom Cuts will have 25% market share of the luxury auto repair business in the Cancun Center neighborhood by the end of year three, and it aims to convert a larger percentage of people away from agency car services, which treat vehicles like just another vehicle. Charlie's Custom Cuts treats each car in a unique delicate and customized way, always keeping in mind that each vehicle represents a lifetime dream for each owner.

Charlie's Custom Cuts is entering their first year of operation. Carlos believes that a comprehensive marketing strategy will be key to the success of the business. Charlie's Custom Cuts offers premium auto repair, customization (painting and detailing) and washing services provided by a well-known local family and a team of auto care and mechanics experts. The basic market need is a premium and luxury car repair and customization service that is way more detailed and experienced and fitted to each individual customer need, always maintaining world-class quality standards

Business Concept
Charlie's Custom Cuts its a garage shop that offers first class customer service for all type of automotive needs. We are a full one-stop shop that takes much pride in all our work. We consider ourselves to be the number one shop in town. Our experience is such, we offer a life time warranty on all our body and paint work. We cater to your convenience not ours. Unlike most garage shops we make our deadlines on completion dates set forth. We offer paintless dent repair, auto glass repair or replacement, mechanical repair, alignments, collision replair, computerized frame measuring and pulling, performance up-grades, towing, wheels, tires and vehicle customization all in one building for your convenience. We also offer free shuttle service for all drop-offs. We are fully equipped with all top of the line equipment to take care of all your automotive needs.

Vision
Charlie's Custom Cuts strives to be a responsible, ethical business company proud for giving customers nothing less than what they deserve. Because we want to be respected and appreciated not only by our loyal clients but also by the competition we keep our working standards high. We will keep on working at the highest-level f performance in order to be the leader in the local market. We know about cars and we care for them. We also know the value of money and we guarantee each one of your cents will be carefully spent and results will tell. We will remain being close to our clients needs and perspectives. We are here to stay!

Mission Statement
To satisfy any automobile maintenance and customization request to the fullest. To be the customers choice in every automobile need. To create not only another car custom store, but a whole new car garage concept where the customers are family and are treated likewise. To provide our customers with the latest brand products and services, imported and domestic, and to offer a wide range of specialized products for any type of sports vehicle.

Goals and Objectives

To provide customer satisfaction at the highest level To be the customers number one choice To provide the most customizable service possible To economically grow and succeed big enough that by the 4th year, we are able to open a second spot in town, offering the same quality offered in the matrix store. To offer the ultimate range of products for every type of vehicle no matter what size, year, conditions, etc. To be not only another custom garage shop, but to create a friendly atmosphere where out customers can drop by anytime, even just for a peek at the new inventory, or just to say hi to any employee and hang around the shop to see how we get our job done.

7 To profit.

Market Analysis
Charlie's Custom Cuts possess good information about the market and knows a great deal about the target customers. This information will be leveraged to better understand who is served, their specific needs, and how the staff at Charlie's Custom Cuts can better communicate with them. The car services and repair business has been around for a long time and has proved to be a strong and well-developed industry. There is lots of competition out there, mainly because the most of them still offer the same range of products and services in a very similar way. This is how the idea of creating Charlie's Custom Cuts was first thought of. We focused on the need to provide a higher standard in car repair services and change the way people relate to their cars, all while focusing primarily on customer satisfaction. Our specialty is to serve high-end vehicles and luxury cars no matter what brand or model. Our expertise allows it. Our target markets are businesses and Individuals owning sports, luxury and high-end vehicles in Cancun and the citys surroundings.

Domestic Market Opportunities

The profile for Charlie's Custom Cuts target market consists of the following geographic and demographic factors:

8 Geographic The immediate geographic target is the city of Cancun, Mexico. A 25-mile radius is in need of the services, however, 70% of the business will be from a seven-mile radius. The total targeted population is just over 50,000, which represent the high-income p population of the city of a total of 526,701, known to own luxury and high-end cars.

Demographic Male to Female Ratio : 70%: 30%. The reason for this difference in the male to female ratio is generally explained by the fact that men typically care more about their cars besides the fact that they usually have greater income than women. Also, men are more likely to spend money on their cars with accessories and customizing services and are more likely to buy a sports or luxury car as a reward for some accomplishment as a treat for themselves. Women tend to view cars more like an object of utility. Using this line of reasoning, women are more likely to go to low-end and basic car repair services firms, as they are less concerned about preserving their vehicle and are more concerned about budget.

Foreign/Global Market Opportunities

Foreign Markets are not difficult for Charlie's Custom Cuts to reach. But we currently are not focusing on expanding into the international market. The business is thought of for local market needs and since it is based on the experience and reputation of the Pereira

9 family, there are actually no plans of reaching such markets. Nevertheless, a continuous streak of success could launch the company to a road of expansion that could require such considerations. We love our city and the main headquarters will always be in Cancun.

Business Environment Considerations

The market trends for the car repair and maintenance industry have been gravitational from all-in-one auto shops to exaggerated tuning garages. This trend has been fueled by the progression of technology and even fashion and social style concern. The equipment and tools available have become less expensive and more efficient over the last few years to the point that it is typically cost effective to invest in the latest technology in matters of: Mechanic Tools Tires Wheels Electric Tools and Small Machinery Auto Parts (Mainly manufactured nationally, Mexico) Paint

While some of the competition garages might presume to run a business like ours, that will never be the case, because our services are not suitable for every vehicle or vehicle owner. Our services offer top quality and therefore services costs are different from the average auto repairs in the city. Ours is a new kind of business directly aimed at an exclusive

10 vehicle profile, and still we remain operating at lower costs than the official car agencies. This trend will not have a significant impact on average auto shops and repair facilities that have a sufficiently large customer share to live on easily. Luckily for Charlie's Custom Cuts, which will have a high-end clientele, market supply is not scarce in 2011 so we have strongly believe demand will increase fast. We have detected certain factors that are important to consider about the environment and its dynamic. We have classified them in 3 from the perspective of our business operation:

Strengths:

Good relationships with many perspective customers in the target market. Strong family name recognition in the community. Well-trained and experienced employees. High Number of High Class or Luxury Vehicles Extensive Car culture in the area High Demand for car repair services and products High Number of international made vehicles Crescent number of Sport Vehicles Strong Social Sector Financially Capable Political Stability offers stability to the economic and commercial markets in the state

11 Experience

Weaknesses:

The need for investors or finance plans from a bank. (Initially, since we are considering running the business from scratch)

The learning curve associated with entering a virgin market. Exclusive clientele leaves apart a great portion of the car service market

Threats:

Future/ potential competition from a franchised firm. A slump in the local economy based on tourism, reducing discretionary spending of our clientele.

The perception that there is not a difference in quality between Charlie's Custom Cuts and car agency services.

Ethical Considerations
Charlie's Custom Cuts is indeed a company with high-end ethical standards. Our business incorporates attributes such as fairness, mutual respect, reciprocity and

12 impartiality. These qualities are reflected in the way we deal with our co-owners, employees, customers, vendors and anyone else in our community. At Charlie's Custom Cuts we tell our employees and customers what they can expect from us and how they will be treated and we live up to our word. We proudly have stated a Code Of Ethics in our business to achieve maximum cooperation and efficiency in all areas of our business.

Our Customers:

We believe that integrity I dealing with our customers is a must for a successful and sustained business relationship. This principle wil govern all aspects of our approach. We value our customers and the trust they place in us. We will safeguard the relation with them to the fullest and we will protect the information and personal data provided to us in accordance to contractual commitments. We will always be honest about the services and products we provide and would never intentionally misrepresent these.

Our Employees:

Relations with our employees are based on RESPECT. We are committed to a working environment where there is mutual trust and respect and where everyone is accountable for their own actions. We aim to hire employees on the basis of their ability and experience and we are

13 committed to developing and enhancing each employees capabilities and skills. Our basic policies are designed to provide each employee with safe and healthy working conditions and practices and to enable everyone to work free from discrimination or harassment of any kind. We are a family and that is why we look out for each other with the objective of achieving collective success.

The Environment:

We are committed to making continuous improvements in the management of our environmental impact as part of our goal of developing a sustainable business. In fact, many of our services support other local organizations in doing this. We work to promote environmental care and awareness, with an emphasis to reduce energy consumption and waste production.

Cultural Aspects
Business In Mexico To successfully live or do business in Mexico, it is necessary to enter the world of the Mexican, and be open to the fact that your assumptions about how things are done often are not true here. Being a Mexican citizen that has traveled around the world I have been exposed to different ways of doing business. I have come to realize that here in Mexico businesses are conducted in a very singular way, mixing personal relations and social customs directly with business.

14 It is a strong fact that controls the majority of the business relations. You have to know people and their families to then proceed to carry successful business. Nevertheless, Cancun has always been a little bit different due to the fact that it is greatly composed by international citizens who moved down here and established their own culture into their daily life. As a result we have an internationalized society. In order to succeed in a big way you must speak at least 2 languages and to know a little bit about other cultures such as the American and the Italian one which have influenced the community.

About the Car Culture

When I started this project almost 5 years ago, my perception of the cultural aspects that involved this type of business and its operations was a bit different. For starters, I did not own my own car. Now I do, and im so convinced that I have become much more aware of what being a car user/owner means. It is a great deal of responsibility, but at the same time it is a great deal of rewarding experiences.

Today I am even more convinced of the importance of this type of businesses. The Car culture is really full of passions and each individual tries to customize their own cars to fit their needs and requirements.

There is a saying that goes like this: Each individual is a world I would take that saying and say each car is a world. There are so much many modifications and customizations that can be done to a car to maximize the driving experience as much as the consumer wants it.

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This is why a business like Charlies Custom Cuts comes in handy these days. Offering a wide range of services and products our company is compromised with top quality and consumer satisfaction always at great prices. What is really great about a company or business like ours, is that we are open for everybody with a high-end car need. If makes no difference to us, whether you are Hispanic, American, Asian, Indian, because if you own high-end vehicle, an imported vehicle, an American muscle sports vehicle, a hummer, a fast car, then we certainly understand you. That is how culturally diverse our business can be. We work on every car, no matter year, manufacturer or condition, if it its a high-end vehicle we take the job because we know the client needs an excellent job done and we can guarantee that, that is what sets us apart from the rest, our quality.

We take for granted you take good care of your luxury or sports vehicle and so do we. If you do, you are certainly welcome to step in Charlies Custom Shop. There is almost no other cultural aspect we need to be aware of more than the sports car culture, thats our business, thats what we do. We are Car Aficionados.

Information Resources
As the C.E.O. of Charlie's Custom Cuts I have taken the decision to implement Information Technologies to my business not only because it is a must nowadays but most importantly

16 to give it an edge. Since we are living in a more global and interconnected world, as a company we intend to take advantages of the possibilities this new era brings to us, making the most out of the new technologies available out there, made to suit almost every need we seem to create.

As a car service based company, we at Charlie's Custom Cuts decided to take our company to the next level with the help of IT that will help us to do our job in a more efficient and hopefully profitable way.

We plan to install an intranet consisting of about 5 computers that will share the same real time information having as a central computer the one in the managers office, that means my office. From there, the central computer which will be a very capable and advanced machine will have access to every other computer in the shop processing data in a very specific and organized way so every transaction and exchange is recorded and stored for a quick access and review anytime after.

We will install a high-end wireless Internet connection in the store that will support our online transactions and the information services we provide in our web page. We will also install a paper workstation consisting of one machine that will execute the basic paper needs such as faxing, copying and printing. We plan to digitalize every piece of data and information and back it up in the computer network of the shop.

17 By applying these IT we are achieving a new level of efficiency in our administrative processes that will save us time and effort when performing our job and services. Our information system will be operated by 5 people each of them a previous member of the company that will receive a basic training for 2 weeks to get acquainted with the new hardware and software and cover any doubts the work team may have.

We also will install 3 telephone lines so our customers can get in touch with us and receive personalized assistance anytime. We plan to make the most out of our new IT systems.

Role of Information Systems in Charlie's Custom Cuts

The main role of our new Information Systems is to make our company work in a much more efficient and customer interactive way.

Our IT systems will be responsible for a wide range of operations that will no longer require personal assistance such as giving certain information to the our customers.

Previously, customers had to get in touch via telephone unless they went directly to the store to request various types of information and just to look at our wide range of products. This could only be achieved in work hours of course.

Now with these IT systems we are able to attend our customers anytime any day, by simply getting online and accessing our web page, were we offer new services like providing

18 information of what is the company about, the products and services we offer, work hours, addresses and telephones and other operations such as:

Information Requests: Prices, Availability, Reservations etc. Schedule and appointment: Our clients can schedule an appointment in our web page and have the confidence that their car will enter our garage on time. Job status: The clients will be able to check the status and updates of the work being done to their cars and see pictures of it. Pre-ordered services and goods: Clients can pre order difficult to find and rare products they need, we receive the order via email and we get the product for them.

These services really do make a difference between the competition and us. These are few operations and tasks that we will implement with the use of IT looking to make more profit out of a more efficient service and customer approach.

Competitive Strategies

Our main competitive strategy is based on the use of a cutting edge web-based software application, which is really an amazing innovation that allows the customer a whole new level of interaction with our company, using of course the Internet as the main interface in between.

19 We are so confident that with the implementation of this new software our company will have no match, because besides the excellent quality of the work we do, with this internet based application we offer a new range of free services to our customers like no other Garage Shop has ever done it. We pretend to give our customer a whole new concept of Car customization and maintenance services plus a whole new interactive approach using the Internet. We are counting on this new technology tool to achieve a firm leadership in the local market but of course not limiting to it, since the internet based software alone gives access to our company webpage to anybody in the world using the internet. We will explain the details on the software and what is it about in the Application Software Section later on.

System Description

Our information system is made up of the following:

5 Desktop Computers Internet Wireless Connection 2 megabytes per second speed 3 Digital Panasonic Wireless Telephones 1 Digital Cashier 1 Super paper workstation: Fax, Copier, Printer, Scanner

20 5 Wireless Serial Number Scanners Headphones with Microphone for every computer Mac OSX Leopard Exclusive InnovaCar Web Based Software Application

Hardware

Type of computer system: 24 inch Apple iMac Central Processing Unit (CPU) speed: 2.8GHz Intel Core 2 Extreme Memory capacity: 2gbs Storage devices: 500 gbs internal hard drive Type(s) of output devices: USB 2.0 ports, DVI port, DVDRW, Firewire Port, Audio Output. Type(s) of peripheral devices: Canon Laser Printers: 5

Application Software

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The Application Software that we will use will consist of the basic application package included with the iMac computers, these package include some basic applications but do not include none of the elemental work applications such as the spreadsheet, the word processing and presentations suite. This is why we chose to use Microsofts Office for Mac Classic Edition to cover these elemental needs. We rely heavily on this software because it is software that has been around for years and has proved to be the best in its class.

For the web browsing tasks we will rely on the included software application Firefox, which is one of the fastest, and most secure web browsers available.

The Microsoft Office for Mac Suite includes:

Microsoft Word for Mac: Word Processing Tasks Microsoft Excel for Mac: Spreadsheet tasks Microsoft PowerPoint for Mac: Presentation Task

With this software application we intend to cover every data processing need we may came up with and do it in an efficient and secure way.

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Operating System

MAC OSX LEOPARD

We chose to buy Macs because we feel very comfortable working with these computers since they seem to make everything more easy than a common pc. Also because of the high end features available in these equipments. Let me describe in detail what the operating system called Leopard is all about:

64-Bit. Advanced precision in one OS.Leopard delivers 64-bit power in one, universal OS. Now the Cocoa application frameworks, as well as graphics, scripting, and the UNIX foundations of the Mac, are all 64-bit. And since you get full performance and compatibility for your 32-bit applications and drivers, you don't need to update everything on your system just to run a single 64-bit application.

Multicore. Fire on all cylinders. Todays Mac computers offer astounding performance with up to eight cores of processing power. So how do you take full advantage? Simple. With Leopard. A redesigned system, finely tuned key applications, and powerful new tools for developers make Leopard the perfect OS for your multicore Mac.

Security. Safer by design. Every Mac is secure right out of the box thanks to the

23 proven foundation of Mac OS X. Apple engineers have designed Leopard with more security to protect your personal data and make your online life safer.

Core Animation. Drag-and-drop-dead gorgeous. The next level in computer animation. Core Animation is an API that makes it simple for Mac developers to add visually stunning graphics and animations to applications. Without any esoteric graphics and math techniques, you can create fluid, stutter-free effects and visualization.

Network Infrastructure

We chose Cisco as our main Network Infrastructure Provider since its wide experience in the subject and the new options they offer. Business applications are critical to the operation, productivity, and profitability of all organizations. Cisco Application Networking Services (ANS) solutions increase application performance, availability, and multilayer security, while simplifying your data center and branch infrastructure. This helps you lower total cost of ownership (TCO) and improve IT flexibility.

Solution benefits include:

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Performance: Ensures the best service to users in all network locations Security: Protects critical applications, infrastructure, and data Availability: Increases application availability Simplification: Minimizes cost and complexity, reduces TCO

We chose to install a basic High-speed Wireless Local Area Network for inside purposes and that is about it. There is no much complication to install the network since we are working in a single location.

E-commerce Plan
To develop our eCommerce we need to look close inside and outside the car maintenance and customization business. Every operational area should be well examined with detention, so we can then formulate these questions like 'how can I make this area more efficient, work faster, automated, cut-down paper work, share information, develop deeper and more informed customer relationships, beat the competition by being distinctive? If we can develop an eCommerce plan that can answer every one of these question then we have a good plan going on. A good eCommerce plan requires the manager to think laterally and not just in the obvious application that is marketing and selling products and services.

In our eCommerce plan we use our own secret weapon: A very innovative internet based software application that brings a whole new definition of internet based customer interaction. We will explain with detail this software at the end of these paper.

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First we have to mention some of the objectives we thought of when designing our eCommerce Plan. One of our first thoughts was the need we had to improve our supply chain. In a fast paced changing environment some products come out to the market just to last about no time. Others come out to stay. In the Car business this is pretty much the case. Every time a new car comes out, a wide range of products related to that car appear, those products are design either to enhance or to correct some aspects of the car. As a car maintenance and auto part and customization business we need to keep track of all the new products and features that come out the market so we can offer these to our clients in a convenient way. By expanding out supply chain we assure the availability of some products we need or products our clients need and that way we can always offer our service and then make a profit out of it. We plan to expand our stock and at the same time to keep as low prices as possible. At the same time thanks to IT systems we can reduce our operational costs by using technologies to make the process more fast and efficient. Communication is very rewarded thanks to the new technologies. Within our plan we also procure to optimize our administrative and logistics aspects of the company and that way facilitate pre and post sales customer service.

We always keep in mind customer satisfaction which is why we have integrated this specific need to our Internet based software, which is the main stone of our entire IT system.

26 Developing a web site because everybody else has one is not an eCommerce plan and could be a complete waste of time. This is why we at Charlie's Custom Cuts have taken the decision of acquiring at a very high cost, meaning a great initial investment by the company, a piece of amazing internet based software.

This Software, Called InnovaCar is used in combination with a common IP based web page to offer our customers a really unique customer experience like no one had ever done it before.

The software allows us, Charlie's Custom Cuts to pre-load our whole product inventory with a whole description and picture of each product plus price and availability at the moment the user is consulting in the web page. The software also allows to pre-load a series of vehicle profiles with a whole description and 360 degrees animated image, the software allows to load up to 1000 models for the moment. This way, we create a virtual garage right in the screen of the users computer and we allow him to load his exactly vehicle and see it in a 360 degree animated image.

This amazing feature allows further interaction, since having loaded a specific vehicle; an automated window pops up and shows the optional features and services available for the specific car along with product or service description, price and availability. This way, we allow the customer to previously visualize his or her car already with the product or service applied to it, and this way the customer gets a look of what can be done and at what

27 price here at our shop.

The software uses macromedia to develop the images and the quality is very good. This kind of access to the whole inventory of the shop settles a whole new edge in customer experience, specially because we are combining the access with a virtual image of how it may look when applied to the car. So customers can check out everything we have in stock at our web page and ask for anything we do not have in stock and get an answer in no time. It is a really amazing software, very interactive and creative almost looking like a car video game, that not only offers all these new customer interaction features but also does it in a very fun and attractive way.

Once the customer has selected a specific product or service and has made the decision of getting it done, he can get a budget online and even schedule an appointment right there in the web page. The security standards of the software are very well designed and allow the company to offer the service of the online transactions and electronic payment processes via Pay-Pal needed in order to offer all these services we have mentioned. We offer 100% secure transactions.

A pretty good designed and eye catching web page makes it very attractive for the customer to spend as many time as needed always keeping the interest in the customer, giving fast opening pop ups filled with complete descriptions and pictures.

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This great tool will help us offer the best service available and customer experience always under strict quality standards.

This is how I have designed my eCommerce strategy, almost only relying on the software that does both: marketing and selling at the same time. The web page has already been paid for in advance, and the software is ready to be applied. We hope for much success and customer satisfaction.

Business Organization and Human Resources

Organizational Structure

By organizational structure, we mean the framework around which a certain business is organized, or to pick other construction metaphors: the underpinnings, the wiring, and the girders, which keep the coalition of the workforce standing up. It's the operating manual that tells members how the organization is put together and how it works. More specifically, structure describes how members are accepted organized and divided in certain specific roles, how leadership is chosen, and how decisions are made in order to make a business organization work and achieve its goals.

While the need for organizational structure is clear for any business, the best structure for a particular type of business is a little more difficult to determine. This is because organizational structure is not one size fits all kind. Depending on the type of business

29 some structures are more complex than others.

To choose the best kind of organizational structure will depend on size and shape, specifically who its members are, what the installations and space available is and more importantly how far does the organization wants to rise and expand. In other words, the best organizational structure depends upon the effectiveness of the leaders and top managers, the experience they have and the goals they are striving for as a business organization. Some goals may change during the process of designing the organizational structure and that is fine. The best structure will evolve according to the different stages in a business organizations life. My task as a first line manager and founder of this project is to find the structure that best suits my needs and managing styles and capabilities as much as the time I have available to manage and supervise the business so I can achieve the greatest level of understanding and coexistence with my workforce.

Regardless of what type of structure the business may need and choose, there are 3 elements that will always matter:

Hierarchy: there is going to be a difference of importance between decisions made by every worker but that doesnt mean that they are not importance, it simply means some of the most important and crucial decisions are going to be made by the worker who is at the top of the hierarchy. Rules by which the workforce operates: some of these rules are going to be explicit and written down in paper or post around the garage and others are simply going to

30 be implicit and we all should respect them equally. Just like in a family. Distribution of the work: The distribution can be formal or informal, temporary or permanent, voluntary or coercitive, with many of few or no intermediate layers. But part of the definition of this organization is the way we distribute our tasks, this so that each effort contributes to other efforts made and all efforts contribute to the same goals.

These 3 elements are going to have a basic importance within the Charlie's Custom Cuts organization and the whole personnel should agree and respect them no matter what.

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Managing Diversity
Diversity is defined as the set of characteristics that every individual has and that that creates a difference when compared to others. Diversity means a wide range of differences and similarities between individuals or things. In our everyday life, we meet and see diversity in almost every aspect of life. We are able to choose from a wide range of options that are out there for us to take advantage.

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Diversity involves almost every aspect of life, since we are unique individuals, we have a set of characteristics that identify us as us and that nobody else has or at least not exactly like us. Diversity means difference. We have our own ways of doing things and our own ways of living life. In the world of business diversity has also its place. We know that we are living in an interconnected world that becomes more interdependent each day. People in Asia are interacting with people in America to make business of many kinds. We interact with each other in the world of business to take advantage of the diversity of options we nowadays can choose from.

Managing diversity involves valuing people as individuals, as employees, customers and of course clients, having in mind that everyone is different. Factors such as age, sex, background, race and abilities or disabilities should be taken into account when creating a productive and comprehensive environment where everyone can take their capabilities to the maximum and explode them in order to achieve greater success. This is making the best out of everyones talents and potential.

Charlie's Custom Cuts is a local car service and retail business planed since the beginning for a local reach, nevertheless we have plans of expanding in the first 2 years by opening new branches around town and after that maybe around the country, it all depends on the level of success we achieve and the income we produce each year. Having this stated, my interest is looking for a workforce that really is alike. That shares the same passion for automobiles, which shares the same ambition for being the best of the best in whatever they

33 do and then to be the best company available.

People that is eager to work and to grow professionally as the company grow and expands. People, which is hungry for success. These are the common ground my workforce should meet. Other factors previously mentioned are going to a second line of importance. If the case happens, where I should hire people from different races and backgrounds, we are going to be even gladder.

Target Markets
The garage repair business market as a whole is fragmented. There are a few major dealerships in each area, with a larger number of small garage repair shops, like Charlie's Custom Cuts. Dealers target customers who buy new and used cars from them. Small garages rely on word of mouth and get most new customers because of emergency car care needs.

Word of mouth is important in the car repair business, since people are very wary of garages, due to their lack of knowledge of cars and engines. Charlie's Custom Cuts leads the local competition in regards to word of mouth, having been in business for over three decades under the same ownership. Competition from dealerships is becoming stiffer. Car design is becoming more and more specialized, as car manufacturers aim to encourage owners of their vehicles to have services carried out at their franchised dealerships. However, small garages like Charlie's

34 Custom Cuts have a price advantage over dealership, usually charging 50-70% less per hour for repair work.

We face around 100 auto repair and auto parts competitors in the local area. Only a quarter of these competitors offer both auto repair services and auto parts inventories. Among these, only a few are major national chains. The remainders are small privately owned establishments. Charlie's Custom Cuts will compete well in the local market by focusing on convenience and offering a high level of customer service. Additionally, its honest reputation will be a major factor in repeat business and building a large base of regular, loyal customers. Primary competitors are engaged principally in the retail sale of automotive parts, tires and accessories, automotive maintenance and service and the installation of parts. Larger competitors have adopted the "supercenter" store model, a freestanding, "one-stop" shopping automotive warehouse that features state-of-the-art service bays. These "supercenters" carry thousands of stock-keeping units and serve the automotive aftermarket needs of the "do-it-yourself," the "do-it-for-me" or automotive service, tire and "buy-forresale" customer sectors. Large competitors' stores typically carry the same basic product line, with variations based on the number and type of cars registered in the different markets. A full complement of inventory at a typical supercenter includes an average of approximately 25,000 items. Automotive product lines usually include: Tires.

35 Batteries. New and remanufactured parts for domestic and imported cars, including:

Suspension parts. Ignition parts. Exhaust systems. Engines and engine parts. Oil and air filters, belts, hoses, and air conditioning parts. Lighting. Wiper blades. Brake parts. Chemicals, including oil, antifreeze, polishes, additives, cleansers and paints. Mobile electronics, including sound systems, alarms, and remote vehicle starters. Car accessories, including seat covers, floor mats, and exterior accessories. Hand tools, including sockets, wrenches, ratchets, paint and body tools, jacks and lift equipment, automotive specialty tools and test gauges. A selection of truck, van, and sport utility vehicle accessories.

Many competitors have adopted point-of-sale systems in their stores, which gathers sales and gross profit data by a stock-keeping unit from each store on a daily basis. This information is then used to help formulate pricing, marketing and merchandising strategies.

36 Electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Additionally, a number of competitors have electronic work order systems available amongst their various service centers. This type of system creates a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service center to maintain a service customer database.

Charlie's Custom Cuts will have all these qualities and still remain an independent privately owned garage. Customers will still prefer our services because of quality and cost advantages known since the opening of the first garage.

Developing the Strategic Market Program

Charlie's Custom Cuts will provide the market with a premium, luxury, sports and high-end car repair and customization services for the Cancun community. We seek to fulfill the following benefits that are important to the customers:

Exemplary customer service: The target customers have money and are used to having excellent customer service. They will not regularly attend Charlie's Custom Cuts unless they receive excellent service. World-Class Top Quality Services: The target market value a higher quality repair

37 and finish jobs for their high-end cars.

Convenience: The hours of operation as well as the time needed to provide the service must be convenient and fast respectively, to gain and maintain market share.

Our approach to the market: We at Charlie's Custom Cuts know well how to approach our market; we focused on a very specific vision based on quality in all aspects of our company.

We are convinced that there is a definite need for a shop that can do everything we can do, and since we are one of the first ones to open we enjoy certain trust from the general public that we can and will deliver results. We know that by getting the right message out we will make people doubt themselves when they use other shops and garages, they will ask themselves whether they have done the best for their interest by using other services and not the ones of our shop, our brand, which is synonym of quality and guaranty. And by reading constantly our message out there in the streets in the radio, in the newspaper, on billboards, they will have a great picture of what Charlie's Custom Cuts means and that we are the best value in the industry.

Indeed we know there is a need in the market for such a company like ours. We believe that with some smart real-world marketing, which is more industry based than textbook based we could win the market permanently, even if someone already has such a business

38 alike in other part of the city or even the country. In Charlie's Custom Cuts we are never be afraid of competition. By concentrating on the niche we are set, and considering there are around 556,000 vehicles in the whole state competition should not be a problem if we keep delivering quality results.

Product Decisions
Car repairs are services that are required or necessary when something on a vehicle is not working properly or may have worn to the point where a replacement is required to maintain the performance of the vehicle.

Maintenance is the routinely scheduled services, inspections and part replacements that your vehicle manufacturer recommends based on the age or mileage of your vehicle. We have selected a wide range of services according to the most common car necessities we have detected in our market. We will specialize in these services:

Mechanical Service - Electrical & Computer Diagnostic

Engine & Drivetrain Exhaust Steering & Suspension

39 Brakes & Bearings Belts & Cooling System Fuel & Emissions System Heating & Air Conditioning Four-Wheel Alignments

Performance - Turbo Upgrades

Superchargers Intakes & Exhausts Fuel System Upgrades Fuel Management Systems Tuners & Programmers HID Headlights & Foglights Big Brake Upgrades

Paint & Body - Collision Repair

Full or Partial Paint Jobs Custom Paint Computer Color Matching

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Pricing Strategies
Charlie's Custom Cuts will be developed in a strong competitive environment where each firm must set a competitive price. In other words, tour business has no ability to affect the market price of its services, regardless of how many automobiles it repairs. Therefore, profit and revenue is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, Charlie's Custom Cuts can service automobiles at total capacity without affecting the price.

This means that the business must seek to charge its clients at the general market price or lower if possible. Research has shown that the average price is approximately $400 per vehicle service. As long as marginal costs do not exceed revenues, the method to maximize short-run profits is to service automobiles at maximum capacity.

Distribution Channels

At Charlie's Custom Cuts we are are highly dependent on auto components, some of national
produce and some of international produce. We like to stock typical maintenance and repair

service items such as brake and suspension components, rubber, fluids and filters at our

41 bodegas this means we have certain buildings used specifically for this operation.

For the more complicated services such as diagnostics on fuel, emissions, electrical and drivability, we do our best to schedule this work during the daytime hours to allow us to diagnose when our supply warehouses are open.

We believe that the best way of entering the international automobile parts market is by
contracting representatives specialized in the sector that have experience in supplying to the American continent. Nowadays, there are commercial agents out there that offer a full range of services for their customers. Some of these agents even own distribution warehouses and they take care of everything from importing the product to selling it. We might find us one of these agent to make a long-term contract.

Depending on the vehicle needs, sometimes we will need to hold a vehicle over whether diagnosed day or night just because parts are not available from our warehouses.

Our Warehouse/Stock department team are highly involved with our stock suppliers, and our service and retail managers meet with local suppliers every 2 weeks to make sure that we have everything what we need to meet our client's needs and to keep in touch with changes that may be coming down the road in matter of stock supply.

Promotional Mix
We have designed a simple promotional mix where we have integrated these 4 areas: Personal Selling:

42 Advertising: Sales Promotions: Email Propaganda The company has a modest program of marketing its services that include the following: Flyers. Direct mailers. Discounts. Newspaper ads. Yellow pages. Referrals through other local businesses.

Each of these marketing approaches has the advantage of being low cost and creating service awareness. The company's long-term marketing goals are to use local radio and TV ads similar to Wal-Mart marketing spots. The company is also investigating the possibility of having a grand opening program that would feature discounts, 2x1 promotions and other promotional ideas. We plan on investing the lowest amount possible in this area. We estimate to use a modest 8% of the whole initial budget.

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REFERENCES
Pugel, T.A. (2009). International economics (14th ed.). New York: McGraw-Hill. Eun, C.S. (2009). International Financial Management (5th ed.). New York: McGrawHill/Irwin. Thompson (2010). Crafting and Executing Strategy (17th ed.). New York: McGraw-Hill. Jones, G. R., & George, J. M. (2007). Essentials of contemporary management (2nd ed.). New York: McGraw-Hill. Kinicki, A. (2008). Organizational behavior key concepts, skills and best practices.
Mullins, J.W,. Walker, Jr., O.C. & Boyd, Jr., H. W. (2008). Marketing Management: a strategic decision-making approach. New York: McGraw-Hill/Irwin. (6th ed).

WEB: http://www.apple.com/ http://www.bitpipe.com http://www.cisco.com/ http://www.opportunitywales.co.uk http://www.wikipedia.org/ http://www.cipd.co.uk/NR/rdonlyres/493588D2-1BB3-43A8-9D343916C5FC868C/0/mandivers0305.pdf http://hrweb.berkeley.edu/guide/diversity.htm http://www.npd-solutions.com/orgstructure.html http://www.entrepreneur.com/businessideas/984.html

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