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Car Wash

By | December 2010
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CRC ORGANISATIONAL CASE STUDY – AUTOMOTIVE EXAMPLE This case study provides an example of how the qualification rules for CRC apply to a franchise organisation in the automotive sector. Step 1- Identifying the Organisation Structure The first step in assessing qualification is to understand your organisation’s structure. Brand X is a private sector organisation, owned by an overseas company, with group members in the UK which consume electricity through half hourly electricity meters (HHMs). Brand X has two principal groups of subsidiaries in the UK: 1. Brand X Manufacturing UK Ltd • Production plant in Birmingham • Research & Development Centre in Coventry 2. Brand • • • • • X Europe Ltd Headquarters in London Port facility in Portsmouth Distribution Centre Retail arm (responsible for a dealer network) in Milton Keynes. (Note that as this uses more than 6,000MWh it is a Significant Group Undertaking and it may therefore participate in CRC as part of a larger group, or be disaggregated to participate on its own) Dealers: o 70 directly owned in various locations o a further 50 that are Brand X’s responsibility as they are defined under the CRC rules as a franchise o Other dealers which fall outside the Brand X franchise responsibility under CRC.

Brand X Europe Ltd owns a distribution company and also owns Brand X Retail Ltd which operates the retail arm of Brand X, i.e. the dealer network. For the purposes of this example there are six distinct dealer types, two of which are included in CRC under Brand X. One group of dealers has a franchise arrangement with Brand X. The six types of dealer are listed under Step 2.

Organogram of Brand X

BRAND X

BRAND X MANUFACTURING UK LTD 105,000 MWh

BRAND X EUROPE LIMITED

BRAND X EUROPE RETAIL LIMITED 6,500 MWh

BRAND X EUROPE HQ LIMITED 3,000 MWh

BRAND X EUROPE, PORTS LIMITED 4,000

BRAND X EUROPE DISTRIBUTION LIMITED 1,500 MWh

BRAND X DEALERSHIPS LIMITED 8,000 MWh

Key

franchisee...

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