Title

Recommendations for Change at McKay Family Buick Mitsubishi

Author

George R. Brooks, Concordia University, St. Paul

Date

1995

Document Type

Capstone

Degree

Bachelor of Arts

Project Coordinator (Advisor 1)

Eva Sova

Abstract

The objective of this project was to provide a blueprint for profitability for McKay Buick Mitsubishi. This project provides the most important first-step recommendations to help the McKay Buick Mitsubishi dealership move toward being a consistently profitable business.

Since 1988 the McKay Buick Mitsubishi dealership has been profitable in only two years. Those two years were record sales years for the automotive industry. When business returns to normal sales levels or below average sales levels, this dealership will return to unprofitability, unless they implement the necessary changes prior to the next cyclical downturn in vehicle sales.

Although numerous changes are required to turn a dealership from chronic losses to consistent profitability, and many recommendations are presented in this project, only the two most urgent changes needed are formed as recommendations. When the most important recommendations are in place and the dealership finances stabilize, the other necessary changes can be forwarded and implemented.

The two most important changes chosen as recommendations are first, to install an in-house sales training program for the sales staff, second, to increase used vehicle stock levels to a 60-day supply.

To test the two hypotheses, in-house sales training and increased used vehicle inventory levels, the researcher conducted in-depth interviews with the New Car and Used Car Managers as well as two experienced sales people. The interviews supported the hypotheses as drafted and helped to form the recommendations given.

If management implements these recommendations, they will preclude the inevitable losses they are now facing during the next vehicle sales downturn. The in- house sales training recommendation, when implemented, will insure that sales people handle the sales process with the customer as the owners prescribe and not like someone from an outside training company would prescribe. It will further insure consistent training in all areas of training as well as in-depth individual training as needed. The recommendation to increase used vehicle inventory to a 60-day supply will insure adequate choice for the customer and dramatically increase sales volume through higher closing ratios and increased customer traffic due to higher inventory levels.

Comments

Concordia School of Accelerated Learning

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