Royal Automotive Company's Management | Free Essay Example

Royal Automotive Company’s Management

Words: 4174
Topic: Business & Economics
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Introduction

Royal Automotive is an automotive company that transacts between new cars from the industries as well as used cars from the consumers. The management in the company ensures that customers obtain a used car by undertaking an uncomplicated process. In doing so, the company management has gained a high reputation concerning the services that the company offers with excellence. The company management principally concentrates on customer contentment and their experience upon carrying out a transaction with the company. The company obtains approximately 40% business repeats and referrals for all transactions carried out. The company carries its activities with comfort and without large showrooms, which are common features in most car dealing companies. Utilizing such an approach allows Royal Automotive to reduce expenditure substantially while still augmenting profits or monetary returns.

Excessive concentration on the customer requirements allows the firm to convert its policies into a joint venture with financial institutions, which offer credit to customers requiring any form of a loan. The company has dedicated itself to getting credit from these financial institutions to assist customers manage to buy cars from them even without the full amounts. Royal Automotive asserts that it enables its customers to obtain loans from banks such as Chase Bank with the least time possible. Additionally, the company happens to be an associate of Credit Union that grants credit applications. Therefore, Royal Automotive offers the purchasers of their products the console of managing their credit requirements devoid of their past credit account.

In Royal Automotive, certain factors are regarded as the principal contributor to the triumph of the company. These achievement factors with the automobile company are their capacity to gain knowledge and transform progressively the environment concerning its operations. Therefore, it has been made apparent that the company has managed to utilize the knowledge-oriented principles in making the company a triumphant venture. This has made apparent through the utilization of the learned ideas in transforming the firm. These transformations are mainly to enable its members to confront the challenges presented by other internal changes and ensure the customers obtain flawless services.

Supply chain and inventory management

Currently, there have emerged many different car industries, which produce mass cars for sale to consumers. As a result, many people who aim at getting a grip, at the newest car models, are selling their used cars. This has provided Royal Automotive with the chance of buying these vehicles and reselling them to customers who are not prepared to purchase the new models for one reason or another. The company’s supply chain and inventory management teams play principal roles in ensuring that customers obtain their cars with little disruptions. Supply chain and inventory management function effectively by utilizing a harmonizing supervision approach, in which they can coexist and apply concurrently depending on certain internal and external atmospheres of the company. The firm institutes transformations concerning systematizing and alleviating procedures of supervision and concentrate on work or occupational associations.

In supply chain management, all actions, which aim at realizing the demands of the purchaser as well as requests, are involved, thus contributing to customer contentment. These activities mainly concern the flow and makeover of goods from one point to the next until it reaches the end-user. In addition, the process involves the flow or stream of information and funds between the end-user and the purchasing party or parties.

SCM involves the utilization of harmonized decisions and actions that aim at effectively incorporating all parties that partake, in the flow of resources, to ensure that the intended commodity reaches the intended person as stipulated. Therefore, SCM aims at bringing contentment to customers by fulfilling their requirements in terms of delivery of the purchased commodities. SCM aims at realizing an excellent competitive advantage for the firm against other competing companies. This implies that SCM has to be resourceful and cost-effective by means of shared hard work across the whole structure. SCM serves to offer products that conform to customer needs in quality and other necessary attributes.

The conjectures and thoughts concerning the chain of command, fresh work models, and allotment of labor meticulous with stress on dimensions of outputs, management, and incentives have been pieces of the classical approach in an institutional blueprints and management. These thoughts have found congenial appliance in the motor industry, for instance, in companies such as Ford.

Management of the supply chain offers definite components of security for individuals and companies involved with the company. Therefore, the company offers security for the customers of Royal Automotive, as well as their suppliers. Royal Automotive ensures that the provided requirements are fulfilled in order to ensure the contentment of the customers. The requirements are usually attained in all areas that are form quality to the performance.

Consequently, these elements have contributed to the unprecedented confidence that customers who buy cars from the company have obtained. The confidence has mainly arisen from the commitment that Royal Automotive has presented towards enhancement of supply of the used vehicles. In view of the existing management of activities in the company, the customers bear a prominent responsibility in influencing the supply considering various issues such as performance, excellence, scrutinizing, distributing, and providing prices for the cars within the company.

It has become evident that Royal Automotive is indeed an independent organization for individuals willing to gain more knowledge concerning the management of its stocks, as well as their supplies considering all these factors. In order to substantiate this, a lot has been offered to concern the ways in which the company obtains information, deduces ideas, and utilizes the information or feedback from customers to better their services. For that reason, Royal Automotive cannot make the supposition that the prospect supply management will depend on precedent experiences or rather consumer behavior since these are the principal determinant factors.

In Royal Automotive, the capacity to recognize potential or target markets, as well as financial transformations amongst customers coupled with action on the chances plays a chief role in supply and reserve management within the company. The members of the company are yet to present to the top management with favorable responses on the adoption of regular changes in supply management, principally because the company handles customers holding different requirements or specifications.

Since the company supplies numerous and most excellent selection of second hand cars, in addition to sale of new, cars it has to allow direction of the clientele on the quality and other specifications including the financial ranges. This presents the firm with the face up of having to provide the cars with the specification that the customer offer. The company ought to get ready to undertake any measures in its operations, in order to make certain that it persists to serve its loyal consumers.

A triumphant inventory management entails harmonizing the expenditure of inventory with advantages of inventory. Royal Automotive is a large company a fact that necessitates utilization of inventories for customers and suppliers. Inventory management is necessary for calculation of certain elements such as Inventory Turnover Ratio. It can also be utilized in purchase planning and other activities that involve the inventory.

Customer management

The company has customer oriented core values that profoundly contribute the success of Royal Automotive. The two core values, that center towards, the customer, assist in the management of the customer requirement. The company has developed a culture of outstanding customer service conveyance and management that endorses inventiveness and cultivates teamwork. These have facilitated progressive enhancement of the presented core values in making the operations more feasible than without these core values. Royal Automotive has managed to achieve success through utilization of this approach in its operation.

Over the years, Royal Automotive has gained positive feedback concerning its services to the customer. The companies have excellent consumer services and effectively handle all customer financial requirements giving the company a competitive advantage over the other automotive firms. This is what has seen the company obtain numerous referrals and repeat purchases from the customers. The referrals and repeat purchases have considerably contributed to the triumph of the company substantially augmenting the overall returns.

Exceptional customer services have increased customer confidence towards the company goods whether used or fresh from the company. The company concentration of its customer has seen the company take extra concern on the provision of credit to the customer willing to obtain cars with a loan. In addition to outstanding customer services, the loans have earned the company substantial acknowledgment form customers who have obtained cars through loans.

The company collaborates with various banks within the region to offer loans in the most effective and fastest manner to customers requiring these loans. The effectiveness in obtaining these loans can be attributed to the fact that Royal Automotive is an associate of Credit Union that grants or rather approves the people to obtain these loans. Therefore, there are little restrictions for customers within the company and certain factors such as their credit histories are not considered. This implies that almost all customers are legible to obtain these loans regardless of their credit histories.

However, certain factors are still considered in assessing customers to obtain these loans. The company manages all customer services in a manner that ensures excellence and a making the purchasing action the simplest undertaking by substantially reducing the process of purchasing. The process applied in obtaining mainly the used cars, has substantially reduced into a simple, uncomplicated process thus offering the company further credit.

Royal Automotive has simplified every aspect of their business to suit the requirements of its customers. The company has exploited the weakness of its competing firms to beat them in customer services conveyance thus offering it an edge or rather a competitive advantage. As stipulated, the company members observe open learning that utilizes feedback to ensure contentment of its customers. The feedback is often obtained processed, interpreted and the results obtained are utilized to form excellent strategies that assist in obtaining competitive advantage.

Over the years, Royal Automotive has developed or gained unparallel status desirable attributes that make certain that the customer obtain outstanding services. Some factors that contributed to the outstanding repute of the company from its customers are quality and excellence in all its undertakings. As evident, outstanding reputation is often directly proportional to the triumph of the company while lousy reputation leads to poor sales and may even lead to close down.

Royal Automotive always seeks to improve its reputation, which serves as an assurance of better sales in the prospect. The focus on the customer substantially assists in obtaining unimpeachable status for the company since utilization of the feedback information seeks to ensure contentment of the customer. Reducing effectiveness in services delivery leads poor feedback and thus leads to loss of reputation for a number of customers. Royal Automotive aims at maintaining its reputation and perfection all the services that it offers to the customer always assume a rising trend in reputation and eventually in its sales.

Unlike other automotive firms, Royal Automotive does not own large and elegant showrooms since these have little to do with the sales. The company’s choice of the customer-oriented system serves its purpose efficiently even better than the big companies that neglect customers and utilize the showrooms’ approach. Large and elegant showrooms serve a little purpose for customers since the customers want the firm to show responsibility and convince the customer that they offer the best. The outstanding care for the company’s customers serves the purpose of convincing the customer that it is the exception in its services.

Royal Automotive makes certain that the customer has a smile of contentment on the offered services and they always get of the company premises wearing white gloves. This is often considered the sole reason why the customers always want to trade with the company in the prospect or invite their friends to experience the excellence in service delivery. However, it has not been made clear, reason for the recommendation and repeat purchases that the firm obtains.

Nevertheless, there have been citations that the firm excellent workability and other factors contribute substantially to the competition that the firm offers to its competing sides. The firm’s website contains a feedback section for testimonials on the services delivered. This section enables the firm to assess it performance on either the new or used car sales although these are the most common brands that the company bears. The assessments mainly portray the thoughts of most customers who think they had exceptional experience with the firm. In case, a customer feel dissatisfied with the services offered, they have the opportunity to communicate their queries, which are addressed instantly. This implies that the company is dedicated to resolving all customer grievances with immediate effect. This adds to the factors that contribute to the triumph of the firm.

The company bears an excellent communication system concerning customer requirements, as well as, the market environment thus enabling quick response of the senior management towards any changes that occur in these areas. The information received concerning customer requirements, and the market environment is later utilized in developing appropriate strategies to address the changes. The strategies can also be developed from personal contributions, as well as, teamwork.

Royal Automotive has presents management strategy that allows its staff or teams to dispute existing customs through the utilization of customer-related information. In doing so, the company encourages personal knowledge gain and participation in bettering the functioning of the organization. Allowing other members and teams of the company to challenge the customs of the organization serves as a prerequisite action, to ensure that the company manages to face up, new challenges.

The company has made it evident that it dominates in sales around Denver and its environs through it retail section. The retail section seems to lead to sales, as well as, the overall returns. It has recognized the uniqueness in every retail customer thus bears several brands of used and new cars from divergent manufacturing companies. The company deals with serious purchasers, as well as, serious shoppers.

Serious purchasers are considered customers who require their vehicles within a short period and can be recognized for their interest in worth and the price. In most cases, serious purchasers agree on the vehicle attributes to ensure that the customer obtains the car of choice. Serious purchasers often acquire the cars of their choice within the shortest period, and it may even take less than a day.

Serious purchasers are often considered the people who enter the showroom with a sole aim of getting out with a car. The company facilitates this through its fast process of acquiring new or used cars from its suppliers to the customers. Royal Automotive provided assistance in various ways. Firstly, it possesses immense inventories of diverse cars that can be either used or new. Secondly, it offers excellent credit agreements concerning the anticipated transaction or fund transfer.

The company has many serious purchasers who often undertake studies on the cars they anticipate purchasing after which they enquire on price and specifications. These customers may even carry out studies on their prospect car models outside the organization, prior to going for the actual purchase in Royal Automotive. Subsequently, these purchasers provide their specifications to Royal Automotive either for purchase in case the model is available or for enquiries to its suppliers on the availability of the models.

However, some of the enquired models may not be available implying that new selections ought to be made for used cars. In most cases, the serious purchasers are people experiencing their first times of owning a car thus are eager to obtain the best. In case the company offers the unintended or faulty cars, these individuals will never want to trade with the company in the prospect.

However, if the customers are contented, they will aspire for to transact with the company in the prospect. Therefore, Royal Automotive ensures that such purchasers are fully satisfied by offering the best services concerning car specifications, delivery and transaction. This serves to encourage such buyers to come in the future for a similar purchase or to refer a friend. This ensures that the company obtains numerous recommendations and repeats purchases from earlier buyers. This is what has maintained the triumphant nature of Royal Automotive and ensured continued customer concern.

Given that the company has managed to maintain its transactions with its customers for a long time with excellent success, this serves as a proof of its dedication towards satisfying customer needs. The company management of the serious shoppers and buyers shows that it has excellent customer services, since this group of purchasers is demanding and requires certain properties. The company has the capability to offer advices on the concerning the car models to purchase as well as the credit facilities to utilize and ways to obtain these credits.

Royal automobile utilizes lead operation methodology that finds its appliance mostly in Japanese automobile dealership. Scrutiny to the management of all activities in the company indicates that it utilizes the lean operation tactics that are most prominent among Japanese companies. The approach entails the knowledge gain by partaking in business and the change that have transpired due to the elevating competition with the automobile commerce. Overproduction in the automobile industry has occurred due to cheap cars that emanate from Japan. Therefore, the lean operation approach serves the purpose of ensuring improved sales for Royal Automobile.

The lean operation technique concentrates on production organization, advanced quality and efficiency of the secondhand vehicles with customer specifications directing the assortment of cars to be utilized for sale. Over the years, the approach has not been in appliance, in the car industry although, after some time, Japan commenced utilizing it in its sales. This can be considered the reason to why Royal Automotive utilized the approach since it proved successful in the sale of automotive.

Financial management

Royal Automotive possesses specialized individuals in credit and these are the principal handlers of the monetary requirements of the customers. According to the company management, a customer requiring any amount of credit can obtain it within a period of five minutes.

Over the years, global automobile industry has undergone quick and profound transformations over some period thus making the market leaders to become innovative throughout their management operations. The market leaders have reinvented new approaches to the operations management mainly the financial aspects that ensure that the customer obtain ready credit facilities. The re-inventions have also included steps that the firm takes in ensuring that the company gains more benefits such as mergers, globalization approaches.

The Asian countries have presented several organizational and management traditions that have not existed within the western markets. These cultures have profoundly transformed the management of the automotive industry in the western world and brought numerous returns to companies utilizing them. Therefore, the manufacturers of the Asian descent have turned out to be the largest producers of cars in the globe.

Consequently, they have generated successful markets for their quality secondhand vehicles in different continents around the globe. This has led to significant transformations in the motor industry contributed to financial management. Royal Automotive has investigated the current monetary circumstances in United States that have generated less confidence for current customers, and integrated it into management practices.

The company manages to present the excellent assortments of quality secondhand cars, in an affordable manner where it can be offered on credits, in case the customer cannot offer full amount on purchase. The same can apply for cars fresh from the manufacturer and other cars that attract high prices that the customer cannot provide the required purchasing amounts. The latter applies to customers due to reduced demands for the new and highly priced cars.

. In order to confront the challenge offered by offering only the new car brands, Royal Automotive has shifted into offering their customers with quality secondhand vehicles that are cheaper and easily find market than new ones. The company management synchronize activities to ensure that the customers to obtain monetary resources through the associate financial establishments such as banks.

Marketing Management

In marketing management, decision-making is a vital component concerning different aspects of product sale. These weighty decisions may be concerned with the prices of commodities, target markets, marketing budget, market segmentation, positioning and other fundamental concepts.

The organization carries out market research concerning their product of interest to determine the available opportunities and weaknesses. The market research mainly concentrates on customer needs, a concept that plays a chief role in ensuring that customers get contented on the offered services. Once the marketing opportunities are presented through market research, market segmentation follows. Market segmentation is the fragmentation of the market into segments that bear customers with similar needs and behaviors.

Development of a marketing blend is the next step in market management where the 4Ps are integrated into marketing for effective marketing process. The firm has to have marketing strategies in order to maintain sales and effect the business process. Additionally, certain publicizing aspects such as advertising and promotion serve to improve sales by creating awareness concerning the presented commodities.

Royal Automotive has been able to manage its markets through various activities to ensure continued growth of the corporation. The firm has created marketing strategies and arrangements that solely serve to ensure that their market is managed in the best manner. The marketing strategies include provision of credits to its customer, which offers the company a competitive advantage over the existing firms. The credit facilities attract many customers within the niche, to carry out their transaction on a loan that is readily provided by the company, through financial institutions such the banks.

The company marketing management department is ever updated on the market insights through its suppliers concerning different car models that are most common, their prices and other relevant information. Updating information concerning the area of specialization helps in maintaining familiarity in case customer requests certain models. Royal Automotive utilizes the market insights in cases of serious purchaser and shoppers. The serious purchasers require the cars with certain specialization for their cars meaning that the management ought to have information concerning different models.

Royal Automotive connect with its customer in a different process, a factor that help out in managing the market. In circumstances where customers and company officials maintains goo relations during the transactions, the highest possibility is that the customer will refer friends or even carry out repeat purchases. In this area, the company is excellent and always maintains smiles for customers who visit for actual purchases or enquiries. In addition, the company offers white gloves to its customers as an appreciation for purchases made.

Over some few years, Royal Automotive has specialized on used cars since they are cheaper for the people within its niche. Therefore, this has led to the development of strong brands that substantially assists in managing the markets by progressively ensuring that more customers visit the company than before. T

The company continuously transforms its market offerings to incorporate a diverse number of customers. It includes diverse models for customers who have different preferences concerning the car models. In addition, the company launches fresh products for customers from different market niches. Segmentation and market research assist in determining the market offerings to include in market management.

Delivering quality products substantially assists in maintaining the market since the customers are contented concerning the products offered and other services such as credit issuance. Delivering quality has aided Royal Automotive in building long-term growth. Delivering quality assists in long-term growth through return purchases, and referrals that emanate from the contented customers. Promotion through the internet and other advertising agents assists in creating awareness on the products on offer for Royal Automotive.

Conclusion

Royal Automotive utilizes different aspects of business for effective and successful business undertakings. The company has instituted different approaches to its operations in order to ensure the customer obtain the best services. These approaches appreciably contribute to the triumph of the company leading to constant referrals and return purchases. These return purchases and referrals have immensely contributed to the progressive growth of the firm. Efficient SCM has substantially assisted in ensuring that customers get contented through proper delivery of cars as per the customer’s specifications. Inventory management assists in making purchases for cars in case either they are out of stock or certain customers require them urgently.

Introduction of quick loans for the customers has earned the company a lot of publicity thus promoting its sales. The business utilizes different marketing strategies that assist in improving the management and sales within the company. Royal Automotive core values contribute to the success of the firm since the act as the foundation for offering excellent services to customers. Concentrating on the customers has helped the company to attain its status though utilization of the feedback offered, by customers, to make more pronounced strategies and plans. Financial management assists the customers to obtain loans from financial institutions allied to the company. Therefore, all the process that transpires within the company is taken care of by management to ensure efficiency.