Strategic Management and Machine Shop

Topics: Strategic management, Management, Debt Pages: 6 (1504 words) Published: January 9, 2011
Case Study:

Bennett's Machine Shop, Inc

DATE: 09th December 2010

Introduction to the case:

His entrepreneurial spirit drove him to leave a stable career and convert his part-time engine reconditioning business into a full-time endeavor. He moved from a shack next to his trailer home to a small hut that he rented for one month. After renting the hut he moved to a stall in a service station. With neither a business name nor a business license, Pat had little control over parts and profit. When the opportunity came to rent a larger space from a garage owner Pat took it. Here his business continued to grow and there was a need for him to hire a helper. Although he was in the business of engine reconditioning, he hired a premed student. Finally in 1977, Pats business got a name. He incorporated it as Bennetts Machine Shop, Inc. During that same time he moved the business to a rented building that only he occupied. 

Analysis of the case.

The case analysis will be done using the SWOT analysis and all the aspects will be analyzed strategically.

Vision & Mission Statement:

Bennett’s Machine Shop, Inc. has the vision of achieving diversification in the field of engine business and makes the company a profitable organization. The main intension is to keep on finding new ways of repairing and renewing mechanical equipments and operating systems of all kinds especially auto engines with regard to quality of products and services and trying to achieve top position in international competition.

Current Evaluation:

Need to fill in some stuff from the case like the business that the company is currently doing and the undertaken loan.

Strategic SWOT Analysis:

Strategic SWOT Analysis


Some of the major strength of Bennett’s Machine Shop Inc can be highlighted as

• Having service/product diversity in the field of engine making and rebuilding has given them a competitive advantage in the industry.

• Mr. Pat Bennett is continuously looking for expansion as he first expanded his services from engine rebuilding to installations, and then again by undertaking the tool sharpening and modifications contract with Boeing.

• Recognizing the value of services and market share, the organization is actively interested market research and invest in advertising.

• Complete Engine service is available at the shop which is a very distinctive feature market wise.

• Customer friendly price structure


The company’s strength challenged by several weaknesses that currently exists. The vast and growing list of weakness suggests that the company has to do a complete overhauling of its business in order to succeed the competitive environment. Some of the important ones are mentioned below:

• There is a lack of a clear plan of action as the company is currently headed by just one person having an individual idea for the business.

• It can be inferred that Pat Bennett possesses the technical skills to perform the job, but does not have a functional business plan in place to operate the business.

• In addition to other elements, having a plan would have required developing a mission, establishing goals, conducting research for the services provided, researching financing options, and having a clear marketing plan.

• There is no evidence that Pat did any research work before beginning his business. Because of this poor planning, his organizations structure is weak and the organizational culture is dysfunctional. 

• Bennetts weak organizational structure has lead to poor materials management. There appears to be an absence of direction and control of inventory and tools. The facility has piles of used engines scattered inside and out.

• Pat also allows customers to drop...
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