From 1916 to 1966, Studebaker automobiles were manufactured in South Bend Indiana. Vicky Roberts became owner of Roberts’s Auto Sales and Service (RASAS) when she inherited a Studebaker dealership. RASAS is a diversified business that includes three sales and service car dealerships, two auto parts stores, a large body shop, a car painting business and an auto salvage yard. Ms. Roberts is considering expanding the business to include vintage car restoration. She has just acquired a 1963 Avanti Studebaker. She would like to restore the car to mint condition and use the car as advertising for the new business in an upcoming Studebaker meet. The meet is in 45 days. Roberts has a total budget of $7000 and can only spend $1700 a week. Roberts has requested a report outlining the activities involved, while considering, cost and time using PERT/CPM. The report will provide insight into the feasibility of the proposed new business. If all activities are completed on time and within budget, Roberts will be confident that she can successfully undertake this new venture. (Ritzman et al, 2007).
There is a significant demand for vintage cars in the market. There are people who are interested in restoring their car but don’t have the time or expertise. Some people will be willing to pay a lot of money to have someone else restore the car for them. RASAS will cater to two groups of people. The first type of clientele will visit RASAS to secure the new old stock (NOS), new parts that were manufactured years ago and still in their original packaging. The second group of clientele will rely solely on RASAS to restore their vintage car. (Ritzman et al, 2007).
The restoration of the Avanti to mint condition will not only help in marketing the brand value of RASAS but will also help analyse certain traits of RASAS, which will help in making a decision about entering the car restoration business. A successful...