Case Study: Midas Broadening Horizons
Running head: Broadening Horizons
Midas Broadening Horizons
Kenneth Stotelmyre
BUS644: Operations Management
Michael Snell
9/30/2013
Abstract Midas has always been a simple company that offers simple automotive services. It has been in business for more than 50 years in the United States. It can be invested in as a franchise opportunity. The company is looking into expanding their service beyond their normal range and the new service will include a tune-up. This will include somewhat of an update to their operating system they are now accustomed to. This paper will take a deeper look into the potential expanding market of Midas for a, hopefully, more profitable future. …show more content…
The first factor is obtaining the number of tune-ups in all areas where they have a Midas shop. Secondly I would look into the cost of the tools and equipment needed for this specific job. Then I would generate figures of the amount of tune-ups we could do if we could grab just 5% of market share among competitors. Then we would have to implement the tune-up by training employees, letting the public know through advertisements, preparing facilities and setting franchising tune-up standards. This in effect would give Midas a reasonable shot at getting tune-up customers. The idea has to be, perhaps, at first to get the customer interested in a tune-up while they are receiving some other form or service. Then word of mouth will travel when Midas does the quality job that they will do in this service along with all other …show more content…
If they want to enter a new market that is much safer to keep customer satisfaction and guarantee high they should service for oil changes. The common oil change is very easy to do in a particular time parameter. I would imagine it all depend the angle that Midas is going for. I do know that they have a great operating system with an easy to understand manual. This makes the business easy to operate from a franchise standpoint. Midas is a good company and if they want to expand profits by offering tune-ups then they will achieve it at an operations level. They have made it this far in the economy for a reason and seem to be seeking broadening their horizons.
References:
Vonderembse, M., & White, G. (2013). Operations Management. San Diego, CA: Bridgepoint Education, Inc.
Colovic, A. & Mayrhofer, U. (2011). Optimizing the Location of R&D and Production Activities: Trends in the Automotive Industry, European Planning Studies. Vol. 19 Issue 8, p1481-1498. 18p. 6 Charts. Retrieved at Business Source Elite.
Website. All Franchises > Automotive Franchises, Midas. Retrieved September 30, 2013 from www.franchiseclique.com.
Vong, C. M. Huang, H. & Wong, P. K. (2010). Case-based Reasoning for Automotive Engine Performance Tune-up, AIP Conference Proceedings. Vol. 1233 Issue 1, p185-190. 6p. 2 Color
Midas Broadening Horizons
Kenneth Stotelmyre
BUS644: Operations Management
Michael Snell
9/30/2013
Abstract Midas has always been a simple company that offers simple automotive services. It has been in business for more than 50 years in the United States. It can be invested in as a franchise opportunity. The company is looking into expanding their service beyond their normal range and the new service will include a tune-up. This will include somewhat of an update to their operating system they are now accustomed to. This paper will take a deeper look into the potential expanding market of Midas for a, hopefully, more profitable future. …show more content…
The first factor is obtaining the number of tune-ups in all areas where they have a Midas shop. Secondly I would look into the cost of the tools and equipment needed for this specific job. Then I would generate figures of the amount of tune-ups we could do if we could grab just 5% of market share among competitors. Then we would have to implement the tune-up by training employees, letting the public know through advertisements, preparing facilities and setting franchising tune-up standards. This in effect would give Midas a reasonable shot at getting tune-up customers. The idea has to be, perhaps, at first to get the customer interested in a tune-up while they are receiving some other form or service. Then word of mouth will travel when Midas does the quality job that they will do in this service along with all other …show more content…
If they want to enter a new market that is much safer to keep customer satisfaction and guarantee high they should service for oil changes. The common oil change is very easy to do in a particular time parameter. I would imagine it all depend the angle that Midas is going for. I do know that they have a great operating system with an easy to understand manual. This makes the business easy to operate from a franchise standpoint. Midas is a good company and if they want to expand profits by offering tune-ups then they will achieve it at an operations level. They have made it this far in the economy for a reason and seem to be seeking broadening their horizons.
References:
Vonderembse, M., & White, G. (2013). Operations Management. San Diego, CA: Bridgepoint Education, Inc.
Colovic, A. & Mayrhofer, U. (2011). Optimizing the Location of R&D and Production Activities: Trends in the Automotive Industry, European Planning Studies. Vol. 19 Issue 8, p1481-1498. 18p. 6 Charts. Retrieved at Business Source Elite.
Website. All Franchises > Automotive Franchises, Midas. Retrieved September 30, 2013 from www.franchiseclique.com.
Vong, C. M. Huang, H. & Wong, P. K. (2010). Case-based Reasoning for Automotive Engine Performance Tune-up, AIP Conference Proceedings. Vol. 1233 Issue 1, p185-190. 6p. 2 Color