North Country Auto Case - 1188 Words

Chapter 5 Profit Centers 201 Country Auto, Inc. {Liddy, part owner of North Country Auto, Inc., was feeling pretty the new control systems recently put in place for his five departtiers (new and used car sales, service, body, and parts departments) . .escrioes eacn aepartment. Mr. Liddy strongly believed in the concept geach department individually as a profit center. But he also recoghl3.llengeof getting his managers to buy in to the system by work ::.:ffotthe good of the dealership. Untty Auto, Inc., was a franchised dealer and factory-authorized llter for Ford, Saab, and Volkswagen. Multiple franchises were beore common in the 1980s. But the value of multiple franchises. did f guidebook, published monthly, was, at best, a†¦show more content†¦Given underutilized capacity in service, I do not understand why 1 am charged full price. It doesn t make sense for the service department to mark up on projects undertaken for new and used car departments within our own dealership. 1 can t see how we can make profits when one part of our company sells to another. Robbins added, When I am unsure of the actual retail value, 1 tend to wholesale rather than take a risk of a negative margin at retail. However, when I do this, we may be losing as an organization as a whole. I agree with Amy on this, stated Walker, and I have the same problem with dealer-installed options. When 1 am charged full price for options, I have no incentive to try to sell these items. . Hold o n, said the service department manager. 1 make my profit by selling service, and these are the prices I would charge for outside work. To sell service for a lower price inside defeats the purpose of this profit center idea. But 1 do have a problem with getting full price for parts. The demand for parts is derived almost completely from service, and we are dependent on parts for quick delivery forShow MoreRelatedCase 5-2: North Country Auto- Teaching Notes3256 Words   |  14 PagesCase 5-2: North Country Auto- teaching notes (case facts in red) Internal Environment – key facts about the Company †¢ North Country Auto is a: Franchised dealer factory authorized service centre– 3 manufacturers (SAAB, Ford, VW) o Began operations in 1968 o 5 departments (new car sales, used car sales, service, body, and parts) o Situated in upstate NY- pop. 20,000, served two nearby towns of 4,000 people as well as rural areas covering a 20 mile radius †¢ George Liddy Andrew Jones –Read MoreAutomobile Production Of The Automobile Industry Essay1415 Words   |  6 PagesCurrently, automobile production sits atop the pillars of the worlds industrial areas. Auto producers occupy four of the five biggest manufacturing organizations in the globe. 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