Q1) Read the followng and write a brief analysis and inroduction on the followng
ID: 2814183 • Letter: Q
Question
Q1) Read the followng and write a brief analysis and inroduction on the followng text and give Options regarding any changes pete should make to the range of cars Pete focuses on in the caryard.
‘Pete’s Cheap Car Sales’ is a small second-hand car yard situated in Melbourne, Victoria. Peter and Alan Moffet own the business and lease the car yard. There motto is ‘We sell great cars at a cheap price’
Peter selects and buys cars at auction and organises road worthy certificates, cleaning and repairs. Alan is responsible for managing the accounts, HR and marketing. They employ four sales staff to handle sales and assist with administration. Cars are sold to both private and fleet customers.
Over the past few months Peter has become concerned about stagnating profits. He notices that, whilst some cars sell quickly, others sit in the car yard for long periods of time. He realises that having cars sitting idle in the car yard is costing them money. He can find no pattern to sales trends. Is it the newer cars that sell well or perhaps smaller cars are more marketable? Should they be focusing on fleet buyers? Perhaps customers prefer Japanese cars? He is becoming extremely confused and frustrated. The one thing he knows for certain is that the car yard is small and the vehicle stock is overflowing. He clearly needs to reduce stock levels. His overall goal is to increase profits and he realises that he needs to focus on selling the most profitable vehicles.
Peter has employed you, a business analyst to help solve his dilemma. He has given you a copy of his ‘sales’ details for the past six months and hopes you can use this data to recommend how he can achieve his goals of increased profits and reduced vehicle turnover time.
In addition, Peter is presently conducting a review of sales staff. Julia Robert, Peter’s senior salesperson, has announced her retirement and Peter hopes to promote a junior sales person to a senior position. You have been asked to conduct a financial review of the profitability and earnings of sales staff and make recommendations re possible promotions. As part of this review you should discuss at least two other factors that Peter might need to consider before he makes a final decision in this regard.
Explanation / Answer
Recommendation regarding increasing profits and reduce vehicle turnover time.
1) First of all, he should instead of looking at his own sales trends and financials, visit the market and do research regarding the taste of customers for cars, at what price they wish to purchase the cars and which model of cars people want to purchase. Doing so, he will surely come to know about the market and people's choice because for 80% people their choice do not change. It remains constant. He should keep car of the that taste only.
2) He should target both individual as well fleet. He should keep stock for individual cars only in his yard. And when he gets customer who is asking for fleet of cars, he should make outright sale. He should not bring such cars in his yard. This will save a lot of his cost and his yard will not be overstocked.
Recommendation to promote junior sales person
1) First of all, he should ask his senior salesperson to continue working for the company for next 3-4 months and train the junior staff. He should announe to his junior staff that he will be promoted once he will learn all the traits like his senior salesperson. He should guarantee a promotion and increment to junior staff once senior salesperon retires. This will motivate the junior staff to work hard and learn the tricks and ways used by the senior salesperson to sell the car. By this way, he will not be in a loss atleast on sales front.
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